Full text of Federal Reserve Bulletin : May 1916
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON MAY, 1916 WASHINGTON GOYEKNMENT PRINTING OFFICE 1916 FEDERAL RESERVE BOARD. EX OFFICIO MEMBERS. WILLIAM G. MCADOO, Secretary of the Treasury, Chairman. JOHN SKELTON WILLIAMS, Comptroller of the Currency. CHARLES S. HAMLIN, Governor. FREDERIC A. DELANO, Vice Governor. PAUL M. WARBURG. W. P. G. HARDING. ADOLPH 0. MILLER. H. PARKER WILLIS, Secretary. (On leave of absence.) SHERMAN ALLEN, Assistant Secretary and Fiscal Agent. M. 0. ELLIOTT, Counsel. SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. HI TABLE OF CONTENTS, Work of the board ....... .... Meeting of governors Opinion of Attorney General rechanging location of Federal Reserve Banks Acceptances not subject to stamp tax Federal Reserve note issues ..... , Cost of b a n k examinations.. .• : Acceptances to 100 per cent ....... .... i . . . . . . Withdrawal of bonds securing circulation Commercial failures in 1916 ...., Discount rates in effect .. Earnings and expenses of Federal Reserve Banks * Gold settlement fund . Individual and b a n k deposits of national banks . Informal rulings of the Federal Reserve Board , Fiduciary powers granted Additions to and withdrawals from the intradistrict clearing system. Law department Business conditions throughout the 12 Federal Reserve districts Distribution of discounts Acceptances •'. Federal reserve bank statements ..'. Gold imports and exports Interdistrict movement of Federal Reserve notes IV r... «.• .• . , , .>,-.. ^ ... . ' 205 206 207 211 212 "213 215 215 216 216 217 220 222 224 225 225 226 228 244 249 252 256 258 FEDERAL RESERVE BULLETIN VOL. 2 No. 5 MAY 1, 1916 This bill has been reported favorably to the House of Representatives from the Committee During the month of April the Federal Reon Banking and Currency with this amendserve Board has been occupied largely with ment suggested by the Board: matters of current administration. Two topics, 1 'Consent of the Federal Reserve Board may however, of general public interest have been be procured before the person applying theregiven much time and thought: for has been elected as a class A director of a (1) Statements to committees of Congress Federal Reserve Bank or as a director of any in connection with proposed amendments to member bank.77 the Federal Reserve Act pending in Congress, Slight increases in rates have, with the apboth those suggested by the Board and those proval of the Federal Reserve Board, been coming from other sources. made by two Federal Reserve Banks during (2) Work in connection with a proposed April. On April 12 the Federal Reserve Bank country-wide clearing and collection plan. of Kansas City increased its rates for commerThe Board has come to a substantial agree- cial paper by one-half of 1 per cent, fixing the ment--as to the principles of a clearing and col- rate for 10 days at 4 per cent and that from 10 lection plan, which shall include not only the to 90 days at 4J per cent. The rate for comhandling of checks drawn against member modity paper at the Federal Reserve Bank of banks, but also those drawn on nonmember Richmond was on April 22 increased from 3 per banks when presented by member banks. cent to 3J per cent, and the rate of 3 | per'cent As there is an immense amount of detail work for acceptances, which had before covered a to be done in connection with this matter, it is period of 60 days, made to cover this class of expected that the following month will be de- paper maturing in 90 days. voted to the working out of these details. To F. O. Watts, president of the Third National better accomplish this, a committee of the Bank of St. Louis, has been elected a member Board will work in conjunction with a com- of the Federal Advisory Council for the Federal mittee of governors and transit managers of the Reserve Bank of St. Louis. Filling the vacancy Federal Reserve Banks. caused by the death of Felix Martinex, of El The Kern bill amending the Clayton Act was Paso, Tex., tfie Federal Reserve Board on April passed by the Senate in the following lan- 17 elected H. O: Wooten, of Abilene, Tex., a guage: class C director of the Federal Reserve Bank of 11 And provided • further, That nothing in thisDallas. Mr. Wooten's term will expire on Act shall prohibit any officer, director, or em- December 31, 1916. He is president of the ployee of any member bank, or class A director H. O. Wooten Grocery Co. at Abilene. of a Federal Reserve Bank who shall first proThe Federal Reserve Bank of Richmond on cure the consent of the Federal Reserve Board, which Board is hereby authorized, at its discre- April 1 made payment of 1 per cent dividend tion, to grant, withhold, or revoke such con- for the period ending December 31, 1915, sent, from being an officer, director, or em- amounting to $30,387.65. This is in addition ployee of not more than two other banks, to the 5 per cent dividend declared and paid at banking associations, or trust companies, whether organized under the laws of the United the end of the calendar year. Taking up a request from one of the banks States or any State, if such other bank, banking association, or trust company is not in sub- in the panhandle district pf Texas to be transstantial competition with such member bank." ferred from the Federal Reserve Bank of Dallas WORK OF THE BOARD. 205 206 FEDEEAL RESERVE BULLETIN. to the Federal Reserve Bank of Kansas City, the Board, after making a canvass of the banks located in that section, voted on April 10 that no change be made in the district lines at this point and that this decision be communicated to the banks interested. The transfers of stock, made necessary by the separation of banks located in Fairfield County, Conn., from the Federal Reserve Bank of Boston and their being attached to the Federal Reserve Bank of New York, and certain banks in Louisiana being separated from the Federal Reserve Bank of Dallas and attached to the New Orleans Branch of the Federal Reserve Bank of Atlanta, have been in due course completed. Believing that the directors of Federal Reserve Banks should be given every inducement and facility for making themselves familiar with the details of the conduct and condition of their banks, the Board has suggested that each director be requested to read and initial the semiannual report of examination of his Federal Reserve Bank and that the chairman of each board of directors advise the Federal Reserve Board when the report has been read by the directors and had their full consideration. The Board several months ago adopted the practice of furnishing each Federal Reserve Bank examined with a copy of the report of the examination. MAY 1,1916. settlement fund held by the Federal Reserve Board for the Federal Reserve Banks and Federal Reserve Agents, the receipt from collectors of customs and internal revenue of checks carrying exchange charges, the method of calculating dividends for Federal Reserve Banks, the conversion and disposition of United States bonds and notes, "no protest" items, amendments to the Federal Reserve Act, the replenishing of 5 per cent redemption funds for member banks and collection and clearance. The chief attention of the Governors was devoted to the discussion of a plan for countrywide collection and clearance of checks. Frequent conferences have been held with a subcommittee of the Federal Reserve Board on. this subject. At the time the meeting adjourned the fundamental principles and general features of a collection and clearance plan had been determined. The further development of the machinery to make effective the plan was left to a subcommittee which was authorized to remain in Washington and assist in working out the details of the proposed plan. This committee consists of Messrs. Rhoads, Seay, McKay, Hendricks, Talley, and Attebery. State Bank Admissions. The First State Bank of De Kalb, Tex., was admitted to the Federal Reserve System during the month of April, the number of State inMeeting of Governors. stitutions which have now joined the system The governors of the Federal Reserve Banks, being 34. called in conference by the Federal Reserve Meeting of Federal Reserve Agents. Board, held a meeting in Washington during the week of April 17. There were present at the The Federal Reserve Agents of the twelve meeting Messrs. Aiken, Strong, Rhoads, Federal Reserve Banks, who are also chairmen Fancher, Seay, McCord, McDougal, Miller of the boards of directors, have been requested Wold, Van Zandt, Calkins, and McKay; also by the Federal Reserve Board to meet in Mr. Tupper, Deputy Federal Reserve Agent, of Washington on Monday, May 29, 1916. St. Louis, and Mr. Hendricks, Mr. Talley, and This meeting is called in accordance with an Mr. Attebery, in charge of the transit depart- understanding reached when the Federal Bements of the banks of New York, Dallas, and serve Agents held their last conference. It St. Louis, respectively. will take up many matters having to do with The topics considered by the meeting in- the work of the Board and the operation of cluded the question of the handling of the gold- the banks. MAY 1, 1910. FEDERAL KESBRVE BULLETIN. 207 tion required of each Federal Reserve Bank as a condition precedent to the commencement It is held, in an opinion of the Attorney of business ? General of April 14, that the Federal Reserve I. Board does not posses the power to change In my opinion of November 22, 1915, I the present location of any Federal Reserve expressed the view that the Federal Reserve Bank, and that the minimum capitalization of Act does not confer on the Federal Reserve $4,000,000 required by the Federal Reserve Board the power to abolish any of the existing Act for Federal Reserve Banks as a condi- Federal Reserve Banks or Federal Reserve tion precedent to commencing business is not districts. I believe that the reasoning of that a continuing requirement. The conclusions opinion is equally applicable to both branches reached by the Attorney General in response to of the first question now submitted. Section 2 of the Federal Reserve Act proan inquiry submitted by the Federal Reserve vides: Board to the President of the United States "As soon as practicable, the Federal Reare contained in the following paragraphs: serve Bank Organization Committee shall designate not less than eight nor more than twelve "To sum up my conclusion on the question cities to be known as Federal Reserve cities, of whether the Federal Reserve Board can and shall divide the continental United States legally change the present location of any * * * into districts, each district to conFederal Reserve Bank, I am of opinion that tain only one of such Federal Reserve cities. the Board has no such power, and that such The determination of said organization compower is lacking whether there has been mittee shall not be subject to review except by alteration or readjustment in the district the Federal Reserve Board when organized: lines or not." Provided, That the districts shall be appor"My conclusion as to the second question tioned with due regard to the convenience and submitted is that the Federal Reserve Act, customary course of business and shall not in prescribing a minimum capitalization of necessarily be coterminous with any State or $4,000,000 for Federal Reserve Banks as a States. The districts thus created may be condition precedent to commencing business, readjusted and new districts may from time to does not require that such minimum capitali- time be created by the Federal Reserve Board, zation shall be preserved under the circum- not to exceed twelve in all. Such districts stances." shall be known as Federal Reserve districts and may be designated by number. *• •*' * The text of the opinion follows: "Said organization committee shall be auDEPARTMENT OF JUSTICE, thorized * * * to make such investigation Washington, April 14,1916. as may be deemed necessary by the said comSIR: At the request of the Federal Reserve mittee in determining the reserve districts and Board, you have submitted the following in designating the cities within such districts questions for my opinion: where such Federal Reserve Banks shall be I. Can the Federal Reserve Board legally severally located." change the present location of any Federal The same section further provides: Reserve Bank: "The said committee shall supervise the or(a) In the case where there has been no anization, in each of the cities designated, of a alteration in the district lines; and 'ederal Reserve Bank, which shall include in (fr) In the case where there has been such its title the name of the city in which it is situreadjustment of district lines as in the opinion ated, as 'Federal Reserve Bank of Chicago.' " of the Board necessitates the designation of Since the Act thus provides that each city a new Federal Reserve city in order that due designated as a Federal Reserve city is to be the regard may be given to the convenience and location of a Federal Reserve Bank, it follows customary course of business as required by that a change in the location of a Federal section 2 of the Federal Reserve Act? Reserve Bank would in effect be the designaII. Must the Federal Reserve Board, in tion of a new Federal Reserve city and the exercising its admitted power to readjust abandonment of one previously designated. preserve the $4,000,000 minimum capitaliza- I find no more warrant in the Act for the Location of Federal Reserve Banks. f 208 FEDERAL BESEBVE BULLETIN. abandonment of one Federal Reserve city and the designation of a new one than I do for the abolition of a Federal Reserve district when once established. The power to designate a new Federal Reserve city (12 cities having been named by the Organization Committee) or to phange the location of a Federal Reserve Bank is not expressly conferred by the Act on the Federal Reserve Board. If the Board possesses such power, it is only by implication from the provision that— "The determination of said organization committe shall not be subject to review except by the Federal Reserve Board when organized: Providedi That the districts shall be apportioned with due regard to the convenience and customary course of business and shall not necessarily be coterminous with any State or States. The districts thus created may be readjusted and new districts may from time to time be created by the Federal Reserve Board, not to exceed twelve in all.77 In my opinion there is no clear indication, either in the provision just quoted or elsewhere in. the Act, of an intent.to confer on the Federal Reserve Board the power to change the location of Federal Reserve Banks by the designation of new Federal Reserve cities. On the contrary, there are indications of an opposite intent. As stated in my opinion of November 22, 1915, above referred to, "the merely negative statement that the determination of the Organization Committee shall not be subject to review except by the Federal Reserve Board when organized clearly can not be enlarged into an affirmative grant of power to the Board to review and set aside everything done by the Organization Committee. The reasonable view is that by that language Congress meant that the determination of the Organization Committee should not be subject to review at all, except in so far as the subsequent provisions specifically authorize a review by the Federal Reserve Board. The only subsequent provision authorizing a review of the determination of the Organization Committee by the Federal Reserve Board is contained in the sentence, 'The districts thus created may be readjusted and new districts may from time to time be created by the Federal Reserve Board, not to exceed 12 in all/ " Again, as stated in that opinioji, " a reading of the Act shows at once that the Organization Committee was created not merely for the purpose of attending to the formalities of organization or to serve as a stop-gap until MAY 1,1916. the Federal Reserve Board should come into existence, but that it had an independent function to perform and to that end was invested with wide powers. That is to say, its function was to organize the system as contradistinguished from the function of the Federal Reserve Board, which was primarily to administer the system." The duty of designating Federal Reserve cities belonged to the Reserve Bank Organization Committee as a part of the organization of the system, and the committee was required by the Act to designate not less than 8 ndr more than 12 cities. This duty is named first among those imposed upon the Organization Committee, and it is imposed by the same provision of section 2 which required the committee to divide the United States info Federal Reserve districts. The same considerations that indicate an intention that the several districts should be permanent would also indicate that the designation of the cities was not to be made for temporary purposes, but was intended to be permanent, subject; of course, to change by Congress. The designation was to be made only after thorough investigation, and the same machinery was provided to facilitate both the determination of the districts and the designation of the cities. Thus, section 2 provides: "Said Organization Committee shall be authorized to employ counsel and expert aid, to take testimony, * * * a n ( j £O m a k e such investigation as may be deemed necessary * * * in determining the reserve districts and in designating the cities within such districts where such Federal Reserve Banks shall be severally located." In my opinion, this coupling of the duty of determining the districts with the duty of designating the Federal Reserve cities within the several districts shows an intention on the part of Congress that the cities so designated are to constitute the fixed centers in the scheme or system of division, the duty of designating the cities being coordinate with the duty of forming districts around them. It was left to the discretion of the Organization Committee whether it should designate the full number of Federal Reserve cities and establish the full number of Federal Reserve districts permitted by the Act. The committee elected to designate and establish the full number authorized, thereby practically suspending the operation of the provision of the Act that "new districts may from time to time be created by the Fed- MAY 1, 1916. FEDEBAL KESEEVE BULLETIN. eral Reserve Board not to exceed 12 in all." The primary if not. the only purpose of that provision must have been to take care of the situation in the event that the Organization Committee had designated less than 12 Federal Reserve cities. The fact that the Federal Eeserve Board, aside from the provision relating to the creation of new districts from time to time, was merely given the power to readjust districts suggests that there was to be some permanent characteristic or element in the districts created by the Organization Committee. If, however, in addition to the power which the Federal Reserve Board has of readjusting districts by changing their boundary lines, it also possessed the power to change the location of the respective Federal Reserve cities within such districts, then the Board could, by successive changes of cities and boundaries, entirely obliterate existing districts and substitute in their place new districts totally different from those created by the Organization Committee. I do not thinK that Congress intended to confer such a power. The Act provides that each Federal Reserve Bank is to include the name of the city in which the bank is located. By section 4 it is provided that the organization certificate of each bank shall state specifically— "The name of such Federal Reserve Bank, the territorial extent of the district over which the operations of such Federal Reserve Bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock, and the number of shares into which the same is divided * *" *." Upon the filing of such certificate with the Comptroller of the Currency in the manner prescribed such Federal Reserve Bank— "Shall become a body corporate and as such, and in the name designated in such organization certificate, shall have power * * * to have succession for a period of 20 years from its organization unless it is sooner dissolved by an act of Congress, or unless its franchise becomes forfeited by some violation of law." (Sec. 4.) It is to be noted that there is no provision in the Act by which the Federal Reserve Board may change the name of a Federal Reserve Bank or amend its certificate in this respect. The whole tenor suggests permanency. The omission of Congress to grant, by express language the pwer to change Federal Reserve cities is significant, especially in 38288—16 2 209 view of the language of section 11 (e) of the Act, which comers the power— "To add to the number of cities classified as reserve and central reserve cities * * • * • . or to reclassify existing reserve and central reserve cities, or to terminate their designation as such." It would have been equally easy had Congress desired to grant the authority to designate ne^7 Federal Reserve cities to have said so in express terms. (Tillson v. United States, 100 U. S., 43, 46, quoted in my opinion of Nov. 22, 1915, supra.) It may be suggested that changes in the "customary course of business" or other changes not foreseen by the Organization Committee may result in inconveniences which the Federal Reserve Board can not remedy if its power to change the location of Federal Reserve cities is denied. The answer is that the remedy is with Congress, in so far as i t may not already be supplied by section 3, which authorizes the establishment of as many branch banks in any district as may be found expedient. To sum up my conclusion on the question of whether the Federal Reserve Board can legally change the present location of any Federal Reserve Bank, I am of opinion that the Board has no such power, and that such power is lacking whether there has been an alteration or readjustment in the district lines or not. II. Coming now to the consideration of the second question submitted, namely, whether the Federal Reserve Board, in exercising its admitted power to readjust, must preserve the $4,000,000 minimum capitalization required of each Federal Reserve Bank as a condition precedent to the commencement of business, I am of opinion that this question is to be answered in the negative. The Federal Reserve Act provides in section 2: "No Federal Reserve Bank shall commence business with a subscribed capital less than $4,000,000." The same section also contains a provision requiring subscriptions to the capital stock to be paid— " One-sixth * * * on call of the Organization Committee or of the Federal Reserve Board, one-sixth within three months and one-sixth within six months thereafter 210 FEDERAL RESERVE BULLETIN. MAY 1, 1916. and the remainder of the subscription, or any liquidation or insolvency of such bank, the part thereof, shall be subject to call when board of directors shall cause to be executed a deemed necessary by the Federal Reserve certificate to the Comptroller of the Currency Board * * * / \ I showing such reduction of capital stock and Section 4 contains the following provision: I the amount repaid to such bank." "When the minimum amount of capital In section 9 it is provided: stock prescribed by this Act for the organiza"If at any time * * * a member bank tion of any Federal Reserve Bank shall have has failed to comply with * * * the regubeen subscribed and allotted, the Organiza- lations of the Federal Reserve Board, it shall tion Committee shall designate any five be within the power of the said Board, after banks * * * to execute a certificate of hearing, to require such bank to surrender its organization. * * * stock in the Federal Reserve Bank; *' * * "Upon the filing of such certificate with the and said Federal Reserve Bank shall, upon Comptroller of the Currency, the said Federal notice from the Federal Reserve Board, be reReserve Bank shall become a body corporate.'7 quired to suspend said bank from further The decrease of capital stock is authorized privileges of membership, and shall within thirty days of such notice cancel and retire its by the following provision of section 5:. therefor in the manner "The outstanding capital stock shall be stock and make payment }) increased from time tp time as member banks herein provided. increase their capital stock and surplus, or as It will be observed from the foregoing quoadditional banks become members, and may tations that the Federal Reserve Act expressly be decreased as member banks reduce their provides that no Federal Reserve Bank shall capital stock or surplus or Cease to be mem- commence business with a subscribed capital bers/ 7 of less than $4,000,000. (Sec. 2.) They were Additional provisions relating to the de- each to be organized when the minimum amount crease of capital stock are found in sections of capital stock had been subscribed. (Sec. 4.) Only three-sixths of the capital subscribed 5 and 6, as follows: "SEC. 5. * * * When a member bank is required to be paid in, the remainder being reduces its capital stock it shall surrender a left "subject to call when deemed necessary by proportionate amount of its holdings in the the Federal Reserve Board." (Sec. 2.) capital of said Federal Reserve Bank, and The Act specifically provides for the decrease when a member bank voluntarily liquidates, of capital stock (1) as member banks reduce it shall surrender all of its holdings of the their capital stock; and (2) as they cease to be capital stock of said Federal Reserve Bank members. (Sec. 5.) and be released from its stock subscription not Member banks may cease to be members for previously called. In either case the shares any of four causes— surrendered shall be canceled and the member (a) Voluntary liquidation (sec. 5); bank shall receive in payment therefor * * * (b) Insolvency (sec. 6); a sum equal to its cash-paid subscriptions on (c) Violation of regulations of Federal Rethe shares surrendered *• * *' less any serve Board (sec. 9); liability of such member bank to the Federal (d) Transfer from one Federal district to Reserve Bank. another through readjustment of districts "SEC. 6. If any member bank shall be de- (sec. 2). clared insolvent * * * the stock held by The Act specifically requires the cancellation it in said Federal Reserve Bank shall be can- of capital stock where membership ceases celed * * * and all cash-paid subscrip- under (a), (6), or (c). (Sees. 5, 6, and 9.) tions on said stock, with one-half of one per No specific provision is made for cancellation cent per month from the period of last dividend, of capital stock where membership ceases not to exceed the book value thereof, shall be under (d). first applied to all debts of the insolvent memWhile the minimum capital had to be subber bank to the Federal Reserve Bank, and scribed in order to commence business, the the balance, if any, shall be paid to the re- maintenance of that minimum is nowhere preceiver of the insolvent bank. Whenever the scribed by the Act. The fact, that the Board capital stock of a Federal Reserve Bank is re- is to determine whether more than half the duced, either on account of a reduction in subscription is to be paid in seems to indicate capital stock of any member bank or of the that the minimum to be subscribed was fixed MAY 1, 1916. as a precaution to make sure that ample credit should be pledged to insure the success of the system. Not only is the maintenance of the minimum not prescribed, but express provision is made for reducing the capital stock as, or whenever, member banks cease to be members. This language is general and includes in its terms all cases in which member banks cease to be members. It is coupled with no expressed condition that the minimum capitalization be preserved; and since the Federal Reserve Act required the organization of the Federal Reserve Banks upon the subscription of the minimum, it is obvious that any reduction whatever made after commencing business might reduce the capital below the minimum. It is plain that a member bank can be a member only of the Federal Reserve Bank of the district in which both are located. This is obvious from the nature of the Federal Reserve districts and is assumed in sections 2, 4, and 9. Of necessity, therefore, when the Federal Reserve Board, in the exercise of its power to readjust, transfers a member bank from one district to another, such transferred bank must cease to be a member of the Federal Reserve Bank of the district from which it is transferred. When it thus ceases to be a member, the capital of the Federal Reserve Bank may be reduced; and there is nothing in the Act requiring the reduction to be made subject to the maintenance of a minimum capital. It is to be noted that section 5 provides that the capital stock shall be increased and may be decreased under the conditions therein mentioned. Succeeding provisions of sections 5, 6, and 9, however, make it clear that may is here used in the sense of shall, as applied to cases arising under (a), (5), and (c). It seems reasonable to infer that it is used in the same sense as. .applied to (d). But whether so used or used in its more literal sense is here immaterial, for so far as the answer to the question submitted is concerned, the result is the same whether the Board is required or merely authorized to reduce the capital when member banks cease to be members. Nor can any significance be attached to the fact that specific provision is made for reducing the capital stock of a Federal Reserve Bank in eases arising under (a), (6), and (c), while the Act is silent as to cases arising under (d). The cases specifically provided tor include cases where tne member banks cease to be members as the direct result of their own acts or conduct. Cases under {d) arise where banks cease to be 211 FEDERAL RESERVE BULLETIN. members as an incident of the exercise of the power of the Federal Reserve Board to readjust districts. The grant of the specific power to readjust carries with it, as fully as if expressed in the Act, the power to do what is necessarily incidental. (Broom's Maxims, 7th ed., 505; 199 U. S., 12.) My conclusion as to the second question submitted is that the Federal Reserve Act, in prescribing a minimum capitalization of $4,000,000' for Federal Reserve Banks as a condition precedent to commencing business, does not require that such minimum capitalization shall be preserved under the circumstances. Very respectfully, T. W. GREGORY, Attorney General, The PRESIDENT, The White House. Acceptances Not Subject to Stamp Tax, The following ruling as to revenue stamps on acceptances has been made by the Acting Commissioner of Internal Revenue^ Treasury Department, and no stamps need be used: APRIL 3,1916. Hon. CHARLES S. HAMLIN, Governor Federal Reserve Board, Washington, D. G SIR: In response to your communication of the 27th ultimo, inclosing copy of a letter received, you are advised that drafts, acceptances, overdrafts, and post-dated checks are not taxable under the act of October 22, 1914, as promissory notes: i our attention is invited to paragraph 1 of T. D. 2170, as follows: (1) In view of the decision made by the Supreme Court of the United States in the case of the United States v. Isham (17 Wall., 496), that "the, liability of an instrument to a stamp duty, as well as the amount of such duty, is determined by the form and face of the instrument, and can not be affected by proof of facts outside of the instrument itselt/' this office is of the opinion that drafts, acceptances, overdrafts, and post-dated checks are not taxable under the above act as promissory notes, even though they are used, in such a way as to perform some of the functions of a promissory note. Respectfully, DAVID A. GATES, Acting Commissioner. 212 Federal Reserve Issues. Careless reading of the monthly statement issued by the Treasury Department, showing the total amount of money and currency in circulation, is responsible for certain mistaken inferences with respect to the status of Federal Reserve note issues in the country's circulation. That there has been a marked increase in the amount of money in circulation is made clear by the figures compiled by the Treasury Department, but careful analysis shows that the increase is represented almost exclusively by the increase in the amount of gold certificates in circulation, representing gold held in the Treasury, the net addition to the total volume of currency made by the Federal Reserve notes being an insignificant fraction. The statement issued on April 1 indicates that the general stock of money in the United States increased between April 1, 1915, and April 1, 1916, by $455,205,000, of which $440,622,000 represents the increase in the amount of gold coin and bullion held in the Treasury. The increase of money in circulation during the same period was about $433,003,000, of which $365,900,000 represents the increase in the circulation of gold certificates. Included in the total stock of money is the amount of Federal Reserve notes issued by the Government to the Federal Reserve Banks. The statement indicates an increase by $148,647,000 in the amount of such notes issued during the year, and an increase of $147,091,000 in the amount of such notes in circulation. The latter amount is arrived at by deducting from the amount of notes issued to the banks the amount held in the Treasury among the assets of the Government. The circulation statement also shows in a separate column the amount of gold held by the Federal Reserve Banks and the Government against Federal Reserve notes issued. This amount increased during the last 12 months from $35,151,000 to $173,558,000, i. e., by $138,407,000 It may be seen, therefore, that while the circulation statement indicates an increase of $147,091,000 in the circulation MAY 1, 1916. FEDEBAL RESERVE -BULLETIN. of Federal Reserve notes, it also indicates that of this total no less than $138,407,000 merely took the place of gold or gold certificates, which were withdrawn from circulation and impounded in the vaults of the Federal Reserve Banks and of the Government. If it is desired to determine the share of Federal Reserve notes in the total increase of circulation, the only proper method is to offset the increase in the circulation of these notes by the increase in the amounts of gold in the hands of the Federal Reserve Banks and the Government and held as security against the Federal Reserve notes issued. This is shown in the following exhibit: Apr. 1, 1916. Apr. 1,1915. Federal Reserve notes in circulation... $187,728,000 Gold impounded against Federal Reserve notes issued... 173,558,000 Net addition to total money in circulation. 14,170,000 Increase. $40,637,000 $147,091,000 35,151,000 138,407,000 5,486,000 8,684,000 It is seen that the net expansion in circulation which may be properly imputed to Federal Reserve notes is $8,684,000 for the 12 months between April 1, 1915, and April 1, 1916. Additional light upon this question of "inflation" is thrown by an analysis of the Federal Reserve Board's bank statement for April 14, 1916, from which the following pertinent data are gleaned: Federal Reserve notes issued to Federal Reserve Banks.. $186, 761,000 Of this amount there are secured by 100per cent deposit of gold 176,883,000 The remainder........ is secured by 100 per cent of commercial paper and $3,951,000 of gold, which is 40 per cent of the paper-secured notes. The Federal Reserve Banks have on hand $22,526,000 of Federal Reserve notes. The amount of Federal Reserve notes in actual circulation is thus less b y . . . . than the $176,883,000 of gold withdrawn from circulation, and held by the Government against Federal Reserve notes outstanding. The Federal Reserve Banks have bought up to and including Apr; 14, 1916, United States bonds, most of which have the circulation privilege, amounting to . 9,878,000 12,648,000 48,158,000 MAY 1, 19.16. FEDERAL BESEHVE- BULLETIN. Practically all of these bonds were sold by national banks which formerly had circulation out against them, which circulation has now been retired. The Federal Reserve Banks have taken down Federal Reserve bank-note circulation against a portion of these bonds, but in some cases this has been done simply for emergency purposes, and the Federal Reserve bank notes not actually issued. The actual amount of Federal Reserve bank notes in circulation as of the 14th day of April was $1,423,000. The reason why the circulation statement shows more than this is because Federal Reserve bank notes, when issued by the Treasury to the banks, are treated ".as issued" even though held in the vaults of the bank. 218 but the Comptroller of the Currency has pointed out to your committee that under the old system certain, national banks in; reserve and central reserve cities, having assets of $1,000,000 or less and capital from $300,000 to $400,000, paid a fee for examination ranging from $56 to $70, according to the amount of their capital stock and resources, while under the operation of the Federal Reserve Act the same banks are paying a fee ranging from $36.50 to $44.50. Banks having resources of from $1,500,000 to $10,000,000 in reserve and central reserve cities, paid for their examinations under the old system a fee ranging from $75 to $230, according to capital axid resources, but these banks are now paying from $54.50 to. $224.50. The comptroller informs your committee that only 38 per cent of the national banks in reCost of Bank Examinations. serve and central reserve cities have resources In the March issue of the Federal Reserve in- excess of $10,000,000, and that, therefore, Bulletin (p. 122) there was published a brief 62 per cent of the banks in reserve and central statement on the cost of national-bank; exam- reserve cities are now, according to this scale, inations, accompanied by a table showing in paying for their examinations less than they parallel columns the relative cost of examina- paid under the old plan, although examinations tion under both the old and the new systems.' are now more thorough and efficient than they The -Federal Reserve ' Board's committee on were before. audit and examination has recently submitted A bank with assets of $25,000,000, having a report to the Board containing the following capital of, say, $5,000,000, in reserve and cenfurther information on this subject. tral reserve cities formerly paid a fee of $410; now the assessment against such a bank is As explained in the above-mentioned state$524.50, the increase being, warranted by the ment, under the present system the examiners additional time devoted to the work by the are no longer compensated by fees, but receive' examiners and the greater thoroughness of their fixed salaries out of a fund provided by assessexaminations. ments levied, upon the banks. Under the old A bank in reserve and central reserve cities system payments made by banks amounted in j with resources of $50,000,000 and a capital of many cases to much less than cost of the examI $10,000,000 paid under the old system a fee of ination. Assessments upon banks were made, ! $710; under the new arrangement such a bai)k as far as "country banks" were concerned, | pays $1,024.50, but it can not reasonably be upon a basis of capital stock alone, without contended that approximate^ $1,000 is an exreference to total assets. In reserve and central cessive charge for a thorough examination of reserve cities higher assessments were levied, | a bank having assets of $50,000,000. which more nearly approximated the cost of making the examinations. As a result there | Assessments against banks having assets of were gross inequalities, which have been recti- more than $50,000,000 are also greater under fied under the operation of the new law. It the present plan than formerly. The Compis true that some banks now pay considerably troller states to your committee, however, more for examinations than they formerly did, that of about 7,600 national banks in the 214 FEDERAL RESERVE BULLETIN. United States, only 32 banks, or less than onehalf of 1 per cent of the total number, at the time of the December 31,1915, call, had assets in excess of $50,000,000, and of these 32 banks 31 were located in reserve and central reserve cities. Under the old system fees for the examination of "country banks 7 ' (that is, banks not in reserve and central reserve cities) having assets of less than $3,000,000 and capital in proportion, or, say, $25,000 to $750,000, ranged from $20 to $75; under the present system these banks pay from $25.50 to $84.50, being an increase of from $5.50 to $9.50 per bank, according to the capital and assets. These figures apply to 6,939 banks, or,96 per cent of the total of 7,238 country banks. There can be no question, however, that under the old system the statutory fee was in many cases wholly inadequate to provide fair compensation for efficient service. The Comptroller states that those country banks which have resources in excess of $3,000,000 and capital of $600,000 or more constitute about 4 per cent of all Country banks, and that under the old system with the standard regulations they were charged a fixed fee of $75, irrespective of resources. The charge now imposed upon them is in proportion to their resources, so that a country bank with $5,000,000 of resources and capital of, say, $750,000, which formerly paid $75, now pays $124.50, or an increase of $49.50. Experience under the old system showed that it was impossible to make a thorough examination of the larger country banks for $75. A fe6 of $224.50 for a thorough examination of a bank having $10,000,000 of assets is therefore not to be regarded excessive. There is a basis for the statement that in a few isolated cases banks have been charged under the new system five to ten times as much as they were under the old system, but this only occurs in those cases where a very large bank is located in a nonreserve city. A specific instance has been dited where a bank of this kind with resources of approximately $50,000,000 paid, under the old plan, only $75, due to its MAY 1, 1916. rating as a country bank, whereas this bank now pays $1,024.50. Surely it can not be contended that this is an unreasonable charge for examining so large a bank. On December 31, 1915, there were only 23 country banks (one-third of 1 per cent), in the United States which had resources in excess of $10,000,000. All country banks are now charged for examinations a fixed fee of $25, plus 2 cents per $1,000 of assets in excess of $25,000. Under the old system, examiners were required to pay traveling expenses and hotel bills out of the statutory fees received. As the earnings of the examiner depended upon the number of examinations made, there was a constant temptation to speed up the work of examination at the expense of thoroughness with superficiality as the inevitable result. These conditions no longer exist, and an examiner is now free to devote as much time to each bank as may be necessary for a thorough and efficient examination. Partly because of the superficial character of national-bank examinations as formerly made, and for the additional reason that examiners7 reports were sent to the Comptroller, without copies being given to the directors of the banks examined for their information, many banks felt the necessity of providing for additional and more thorough examinations by special auditors, involving a considerable expense. The Comptroller of the Currency has notified the Board that it is his intention to inaugurate the custom of furnishing the board of directors of each national bank examined with a report by the examiner, after each examination, from which the directors will have an opportunity of informing themselves of actual conditions in their banks and of passing judgment upon the character of the examination. It is, therefore, believed that in most cases banks will find that independent examinations will hereafter be a useless duplication and will discontinue them, so that the result will be a substantial saving in the expense incurred for examinations. MAY 1, 1916.. FEDERAL RESERVE BULLETIN. Acceptances up to 100 Per Cent. The following member banks of the Federal Reserve System have requested and have to this date been granted authority by the Federal Reserve Boa^d to accept, up to 100 per cent of their capital and surplus, drafts or bills of exchange growing out of transactions involving the importation or exportation of goods: 215 to 100 per cent. Such banks therefore do not need to avail themselves of the 100 per cent privilege, The list, above printed, of banks given special permission to accept up to 100 per cent does not include these latter banks. Withdrawal' of Bonds Securing Circulation. Under the construction placed upon the National Bank Act by the office of the CompFirst National Bank, Boston, Mass. j troller of the Currency, an amount not to exceed Merchants' National Bank. Boston, Mass. | $9,000,000 of lawful money may be deposited in National Shawmut Bank, Boston, Mass. I any one month for the purpose of retiring Second National Bank, Boston, Mass. national-bank circulation, and withdrawing American Exchange National Bank, New York City. United States bonds on deposit to secure circuBank of New York N. B. A., New York City. Atlantic National Bank, New York City. lation. The limit for April was reached on the Irving National Bank, New York City. first day of the month. Applications for withMechanics and Metals National Bank, New York City. drawals are listed in the office of the CompFourth Street National Bank, Philadelphia, Pa. troller in the order of their receipt and acted Tradesmen's National Bank, Philadelphia, Pa. Philadelphia National Bank, Philadelphia, Pa. uponin the order of the deposits of lawful money. First National Bank, Baltimore, Md. The $9,000,000 limit applies only to deposits Merchants-Mechanics' National Bank, Baltimore, Md. of lawful money. Any national bank, therefore, Bank of Charleston N. B. A., Charleston, S. 0. having on hand its own notes, signed or unMerchants National Bank, Hampton, Va. signed, may return them to the department Merchants National Bank, Richmond, Va. National Bank of Danville, Danville, Va. for cancellation, and thus obtain the release of Whitney-Central National Bank, New Orleans, La. a corresponding amount of United States Commercial National Bank, New Orleans, La. bonds, provided the amount remaining with First National Bank, Chicago, 111. the Treasurer is equal to the minimum bond National Bank of the Republic, Chicago, 111. requirement provided by the National Bank Act. First National Bank, Hutchinson, Kans. First National Bank, St. Joseph, Mo. Crocker National Bank, San Francisco, Oal. Anglo and London-Paris National Bank, San Francisco, Cal. First National Bank, San Francisco, Cal, Wells-Fargo Nevada National Bank, San Francisco, Cal. Bank of California N. A., San Francisco, Cal. First National Bank, Portland, Oreg. All member "banks are authorized under section 13 of the Federal Reserve Act to accept in transactions based upon foreign trade up to an amount not exceeding 50 per cent of their paid-in capital and surplus. A number of national banks and State banks and trust companies which have joined the Federal Reserve System have such large capital and surplus that they can accept to a much greater amount, based on 50 per cent of their capital and surplus, than can other member banks which have received special permission from the Federal Reserve Board to accept up Sale of 8 Per Cent Bonds. Advice has been received by the Federal Reserve Board from one of the Federal Reserve Banks of the sale of the new Government 3 per cent 30-year bonds, provided for in section 18 of the Federal Reserve Act, at 103f, when issued, and the sale of $100,000 of one-year notes at 100}. The market for these conversion bonds and notes seems to be established at about these figures. January Bulletin Exhausted, No copies of the January issue of the Federal Reserve Bulletin remain for distribution. It is suggested that those who have copies of this number preserve them for binding, as the Federal Reserve Board can not supply additional copies. 216 Commercial Failures in 1916. There are given below statistics of commercial failures in the United States for the first quarter of 1916, compiled from the records of R. G. Dun & Co. These show for each Federal Reserve district the total number of commercial failures, the amount of assets, and the District. 1—Boston 2—New York 3—Philadelphia... 4—Cleveland 5—Richmond 6—Atlanta 7-Chicago... 8 - S t . Louis 9—Minneapolis 10—Kansas City... 11—Dallas 12—San Francisco. 1915 1914 1913 United S t a t e s . . . .. Number. Assets. 32,232,370 64,600,535 54,543,553 51,764,096 Trading. Other commercial, Banks. NumNumNumLiabilities. Num-i ber. Liabilities. ber. Liabilities. ber. Liabilities. ber. Liabilities. 160 $1,630,732 332 8,997,340 75 1,322,727 815,532 101 791,212 70 57 2,137,721 130 2,626,646 653,112 65 918,027 43 33 340,421 27 1,200,761 150 2,372,979 $4,120,019 16,768,121 3,280,424 3,194,279 3,456,399 6,907,150 7,077,544 3,189,366 1,992,283 1,814,695 3,309,130 6,383,336 490 $1,768,330 945 5,276,521 361 2,425,346 416 2,503,716 423 2,265,118 510 3,659,430 587 4,732,317 392 2,202,761 180 1,768,533 209 861,370 289 1,613,216 5.85 3,155,712 5,387 7,216 4,826 4,458 amount of liabilities, and in a subdivision of the table this same information as to the failures in manufacturing, trading, and other commercial lines. In addition, the bank failures are given, and, with the totals for the entire United States for the three months, the figures for the corresponding period in the three preceding years. Manufacturing. Total. No. No. No. No. No. No. No. No. No. No. No. No. MAY 1,1916. FEDERAL EESERVE BULLETIN. 61,492,746 105,703,335 83,221,826 76,832,277 1,243 1,580 1,147 1,052 23,807,210 46,211,855 34,644,880 30,634,667 548 273 286 343 442 427 310 130, 164 252 $1,998,478 5,740,264 1,571,217 2,164,026 2,619,574 3,954,708 3,353,520 2,448,712 1,018,942 903.641 1,938,264 3,336,815 3,860 5,348 3,489 3,233 31,048,161 48,712,139 36,500,570 36,590,109 284 190 173 $490,809 2,030,517 386,480 214,721 45,613 814,721 1,097,378 87,542 55,314 570,633 170,105 673,542 $480,000 2,525,000 25,000 880,000 6,637,375 10,779,341 12,076,376 9,607,501 4,220,000 17,128,839 10,020,579 2,180,871 160,000 150,000 DISCOUNT KATES, Discount rates of each Federal Reserve Banhin effect Apt. 27, 1916. Maturities of 10 days and less. Maturities of over 10 to 30 days, inclusive. Boston... New York Philadelphia,.... Cleveland Richmond Atlanta.. Atlanta (New Orleans branch).. Chicago St. Louis....... Minneapolis. Kansas City Dallas... San Francisco..-...-. 1 2 Bate for commodity paper maturing within 90 days. 8 Rate for bills of exchange in open market operations. Maturities of over 30 to 60 days, inclusive. Trade acceptances. AgriculMaturities tural and of over 60 live-stock to 90 days, paper over To 60 days, Over 60 to inclusive. 90 days. inclusive. 90 days, inclusive. Commodity paper. Paper bought in open market. *3f-4 I 3-5 Rate for trade acceptances bought in open market without member bank indorsement. *& A rate of 2 to 4 per cent for bills with or without member bank indorsement has been authorized. Rate for commodity paper maturing within 30 days, 3J per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4£ per cent; over 90 days, percent. MA? 1, 1916. FEDERAL RESEBVE BULLETIN. EARNINGS AND EXPENSES OF FEDERAL RESERVE BANKS DURING QUARTER ENDING MARCH 31, 1916. There are presented below detailed figures of earnings and expenses of each of the Federal Reserve Banks for the first three months of the the current year, in continuation of similarfigures published in the Bulletin for previous quarters. The combined earnings of all the Federal Reserve Banks for the first quarter of the present year are given as $755,707.11, and the total current expenses as $498,039.48. Expenses of operation were $415,861.39 for the quarter, while the cost of Federal Reserve notes issued by the banks, expenses caused by the exchange of Federal Reserve notes between banks, and by the shipment of notes to Washington for destruction, also amounts written off to provide for the gradual amortization of the cost of notes issued by certain banks prior to July 1, 1915, other amortization charges, and depreciation on furniture and equipment account for the additional quarterly expense of $82,178.09. The excess of total earnings over total current expenses for the quarter was $257,667.63, or at the yearly rate of about 1.9 per cent on an average paid-in capital of $54,904,000. The most favorable financial results are reported by the southern banks. Thus, Richmond shows an excess for the quarter of earnings over current expenses of $43,948.51, or at an annual rate of 5.25 per cent on a calculated average capital of $3,350,000; Atlanta, including its branch at New Orleans, a like: excess of $24,273.63, or at an annual rate of 4.01 per cent on an average capital of $2,419,000, and Dallas an excess of $29,805.54, or at an annual rate of 4.34 per cent on an average capital of $2,749,000. The Boston bank's excess of quarterly earnings over current expenses was $41,792.18, or at the annual rate of 3.24 per cent on an average capital of $5,158,000. This excess is more than sufficient to wipe out the deficit of $34,603 for the period ending December 31 1915. Kansas City reports an excess of $25,628.70, or at the rate of 3.4 percent on an average capital of $3,011,000. Chicago 38288—16—3 217 earned net $51,246.16, or at the rate of 3.08 per cent per annum on an average capital of $6,650,000. The St. Louis and San Francisco banks show excesses of current expenses over earnings for the quarter, though the latter bank had a surplus of earnings over operating expenses. Of the total earnings for the quarter, 34.2 per cent was from bills discounted, 20.5 per cent from municipal warrants, 20.2 per cent from bills purchased in the open market, 19.6 per cent from United States bonds, and the remainder from sundry operations, largely exchange and commissions received. These percentages vary according to banks and groups of banks. Thus, 58.5 per cent of the Boston Federal Reserve Bank's earnings came from bills bought, almost exclusively bankers7 acceptances, and nearly 28 per cent from municipal warrants. The New York bank reports about 48 per cent of its earnings under the head of " Bills bought in open market" and 42.4 per cent under the head of " Warrants/ 7 while the per cent share of earnings from discounted paper was less than 3 per cent for the Boston bank and less than 2 per cent for the New York bank. In the case of the three southern banks the earnings from discounts account for 88 per cent of their total earnings for the quarter. Chicago derived almost one-third of its quarterly earnings from United States bonds and about 30 per cent from discounts, while Cleveland7s largest share of earnings came from " municipal warrants.77 Of the total expenses of operation, about 28 per cent went as compensation to bank officers arid about 25 per cent as salaries to the clerical staff of the banks. The amount contributed by the banks for the support of the Federal Reserve Board was the next largest item and constituted over 13 per cent of the total expenses of operation, while the item of "rent" represents 9.4 per cent of these expenses. The total current expenses shown are exclusive of $16,839.68 expended in the purchase of additional furniture and equipment and of $12,211.03, the cost of printing and shipping Federal Reserve notes. Earnings and expenses of each Federal Reserve Bank and of the system as a whole for the quarter ending Mar. -31, 1916. to M 00 EARNINGS. Boston. Bills discounted—members.. Bills bought in open market. Investments: United States bonds Warrants...... Commissions received Amortization of discount on United States b o n d s . . . . . . . Sundry profits.. Total New York. Philadelphia. Cleveland. Richmond. Atlanta (including . New Orleans branch). Chicago. St. Louis. Minneapolis. Kansas City. Dallas. San Francisco. Total. $1,720.44 44,520.52 $2,324.47. $2,179.81 61,584.43 13,440.61 $3,558.43 $63,900.19 $46,985.64 $30,929.69 4,939.35 2,269.74 10,425.83 1,093.60 $9,785.00 $12,154.54 $29,218.35 149,996.31 4,139.92 2,874.64 62.50 2,716.88 $5,594.87 $258,347.74 4,802.05 152}870.07 4,999.45 21,328:03 906.94 2,292.16 54,615.65 7,791.71 16,727.16 16,741.16 21,290.45 23,108.99 2,649.58 239.93 609.27 107.41 76,124.96 128,848.35 49,, 698.01 53,004.63 3,576.02 830.42 69,400.23 1,465.77 869.37 17.58 33,217.47 14,598.99 12,843.55 4,332.43 2,708.73 11,501.06 54,316.83 100,673.04 9,811.45 8,143.18 22,194.79 3,422.84 6,732.02 189.01 13,137.78 6,401.32 148,288.07 154,581.39 8,716.23 3,047.86 1,121.68 8,367.48 316.65 1,037.69 1,196.27 8,367.48 24,536.13 34,148.76 34,105.49 66,236.99 58,017.53 31,132.29 755,707.11 * CURRENT E X P E N S E S . Expenses of operation: Assessment account of expenses of Federal Reserve Board Federal Advisory Council Governors' conferences.. Federal Reserve Agents' conferences. Salaries:— Bank officers Clerical staff.. Special officers and watchmen Another Directors'— Fees Per diem allowance.. Traveling expenses.. Officers' and clerks' traveling expenses (less amounts included in Governors' and Federal Reserve Agents' conferences) Legal fees Rent Telephone Telegraph Postage Expressage Insurance and premiums on fidelity bonds.. Light, heat, and power.. Printing and stationery.. Repairs and alterations.. All other expenses, n..s.. Total expenses of operation $5,158.15 $11,055.20 .9.40 $5,938.14 $3,353.80 $2,422.40 $6,655.70 $2,782.50 $2,546. 55 $3,037.80 $2,772.60 $3,942.75 $54,934.99 82.25 316.03 147.13 497. 79 150.00 381.69 88.92 400.53 302.20 426.34 150.00 377.78 276. 75 486.41 221.45 452.73 150.00 168.30 150.00 727.43 1,832.20 4,889.89 19,699.92 22,369.40 9,499.98 8,680.78 9,687.48 6,642.03 6,728.12 6,825.27 7,666.64 8,537.22 12,750.00 12,385.99 11,675.00 8,399.08 6,499.98 4,962.42 6,124.91 9,^11.33 8,229.15 6,600.97 9,900.00 5,350.85 116,836.13 104,539.46 1,547.50 693.34 1,497.07 96.00 14.40 150. 00 410.65 799.20 1,320.00 853.12 405.00 300.00 233.75 428.68 466.00 30.00 6,507.20 2,737.51 810.00 230.00 164. 70 1,200.00 360.00 445.00 770.00 220.00 198.37 420.00 230.00 238.25 780.00 480.00 660.99 720.00 484.00 646.16 520.00 230.00 357.50 1,190.00 210.00 226.50 610.00 180.00 269.60 1,140.00 745.00 1,194.83 360.00 250.00 494.20 600.00 130.00 9,120.00 3,749.00 4,896.10 263.35 400.00 3,125.01 221.23 7.40 490.84 1.52 10,300.00 356.66 69.60 2,214.52 30.28 1,000.00 2,124.99 279.89 8.20 793.14 487.20 172.16 500.06 1,513.08 233.99 53.04 620.72 3.40 i -17.71 725.00 1,000.00 100.60 55.34 1,090. 70 418.51 280.56 150.00 3,004.00 82.02 108.84 854.11 100.50 645.16 6,643.75 313.10 70.60 1,479.27 166.42 40.39 375.00 1,250.01 142.29 37.93 1,175.62 38.31 140.53 150.00 2,124.99 156.89 104.13 2,516.83 483.93 307.40 622.40 4,180.57 184.81 53.99 1,304.38 356.85 245.78 159.69 629.53 1,339.57 i -18.40 .1,508.67 3,690.00 123. 70 84.87 429.95 38.00 1,570.28 6,076.29 38, &56.40 2,440.96 813.63 13,599.61 3,363.99 861.82 403.50 754.31 8.70 778.32 583.35 1 -5.25 372.00 1,007.43 11.75 772.83 417.74 65.18 669.63 161.50 1,190.12 1,256.95 420.28 i, 030.64 58.67 1,440.69 556.54 1,016.10 715.16 19.77 170.84 1,112.75 122.91 962.03 286.10 22.10 486.80 411.35 322.50 1,226.64 104.29 1,614.37 105.00 497.78 777.78 6.50 2,574.99 919.01 92.40 1,135.37 331.24 722.00 6,960.92 2,438.09 12,178.39 887.37 16,276.25 34,033.95 28,572.79 25,451.72 28,748.77 49,426.88 34,550.69 20,936.11 31,484.50 27,312.42 29,887.84 415,861.39 113.50 255.61 399.25 8,374.95 4,574.12 54.63 76.00 301.50 383.48 264.45 429.97 39.94 1,616.73 454.83 *3,*946."53" 26,924.95 78,530.77 3,032.61 256.73 126.10 Cost of Federal Reserve notes issued by bank (including expressage, insurance, etc.).. 2 1,582.40 Miscellaneous charges account Federal Reserve notes Amortization charges: Federal Reserve notes All other organization expenses 4,325.43 Premiums on United States bonds Depreciation on furniture 1,500.00 and equipment Total current expenses. Excess of earnings over current expenses. % 040.00 765.07 4,999.98 901.56 5,845.09 78.50 100.67 283.15 1,212.00 2,400.00 1,380.54 727.38 11,621.46 10,631.16 1,800.00 6,621.36 5,635.62 47,840.14 899.57 182.48 9,041.85 3,939.63 1,349.01 924.57 914.1§ 34,332.78 102,961.61 38,898.15 37,181.15 25,451.72 30,043.20 49,426.88 41,792.18 25,886. 74 10,799.86 15,823.48 43,948.51 24,273.63 654.12 13,453.15 394.44 39.05 143.39 143.39 8,836.80 793.68 1,200.00 900.00 47,187.53 26,730.55 40,608.29 28,211.99 37,005.63 498,039.48 51,246.16 3-13,038.77 7,374.94 25,628.70 29,805.54 » -5,873.34 257,667.63 1,255.38 COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS. Balance as reported on Jan. 1,1916 . Additional purchases during quarter. $9,595.24 $26,980.36 $6,228.92 $23,000.00 $20,346.13 $54,159.64 $41,828.85 $33,255.41 $6,422.59 $269,995.50 $18,491.31 $20,187.08 $9,500.00 157.69 193.30 382.50 950.00 7,744.77 126.25 626.25 758.89 20,344.77 9,693.30 6,611.42 23,950.00 28,090.90 54,285.89 42,455.10 34,014.30 6,422.59 286,835.21 793.68 1,200.00 900.00 23,950.00 27,297.22 53,085.89 41,555.10 34,014.30 6,422.59 277,998.41 2,882.44 3,017.59 Total Depreciation charged during quarter 12,477.68 29,997.95 1,500.00 1,349.01 924.57 914.16 Balance Apr. 1,1916 10,977.68 28,648.94 17,566-. 74 19,430.61 18,491.31 1,255.38 9,693.30 5,356.04 16,839.68 8,836.80 COST OF UNISSUED FEDERAL RESERVE NOTES. Balance as reported Jan. 1, 1916.... $38,633.35 $232,086.79 $43,172.04 $42,757.61 $17,368.34 Additional cost of Federal Reserve notes during quarter.... 3,883.58 414.32 299.65 187.60 I 151.20 Total Cost of Federal Reserve notes issued and charged to current expenses during quarter <2,082.40 Balance Apr. 1,1916 36,965.27 | 223,346.44 39,047.67 232,386.44 43,359.64 42,908.81 43,359.64 42,143.74 9,040.00 $9,502.36 9,502.36 21,251.92 9,463.31 $19,932.85 $11,252.52 $9,924.60 $34,914.91 $542,288.89 240.00 930.47 11.50 4,065.00 12,211.03 2,407.77 22,363 46 20,172.85 12,182.99 9,936.10 38,979.91 554,499.92 394.44 78.50 9.57 654;12 13,953.15 62,407.77 22,363.46 19,778.41 12,104.49 9,036.53 38,325.79 540,546.77 2,027.71 21,251.92 765.07 $60,380.06 $22,363.46 39.05 3 1 Credit. 2 Exclusive of $500, cost of Federal Reserve bank-note plates charged to "Expenses of operation" (all other expenses n. s.). a Deficit. *Includes $500 cost of Federal Reserve bank-note plates charged to expenses of operation. to 220 FEDERAL BESEBVE BULLETIN. GOLD SETTLEMENT FUND. MAY 1, 1916. Amount of clearings and transfers, Federal Reserve Banks, from Mar. 24, 1916, to Apr, 20, 1916^ inclusive. Obligations settled through the gold settlement fund for the four weeks ending April 20 amounted to $213,222,000 with a change in ownership of the gold held in the fund, during the period, of $21,911,000, or 10.27 per cent of the obligations settled, a proportion much, higher than usual. Some of the changes, however, operated to offset those previously made, so that the percentage of net changes of ownership to total obligations settled since the establishment of the fund declined to 6.01 per cent. Total clearings. Balances. Settlement of— Mar. 30,1916..... Apr. 6,1916 Apr. 13,1916 Apr. 20,1916 $46,875,000 51,726,000 51,684,000 55,930,000 $4,355,000 8,235,000 4,419,000 5,075,000 $529,000 2,491,000 3,168,000 819,000 Previously reported 206,215,000 588,895,000 22,084,000 68,032,000 7,007,000 22,850,000 795,110,000 90,116,000 29,857,000 Total since Jan. 1, 1916.. Total for 1915 1,052,649,000 Grand total 1,847,759,000 Transfers. Changes in oiunership of gold. Federal Eeserve Bank of— Decrease. Boston. New York. Philadelphia Cleveland Richmond Atlanta *. Chicago St. Louis . . . Minneapolis* Kansas City Dallas San Francisco. Total Increase. $4,287,000 87,413,000 . 9,601,000 ^ . . . 101,301,000 Balance to credit Mar* 23,1916, plus Balance net deposits Apr. 20,1916. of gold since that date. 7,427,000 6,198,000 9,418,000 12,696,000 18,988,000 $1,443,000 20,587,000 1,180,000 9,935,000 12,522,000 3,007,000 6,519,000 2,807,000 4,598,000 4,315,500 7,228,500 2,368,000 $9,617,000 3,427,000 6,240,000 8,159,000 10,679,000 2,489,000 9,659,000 5,039,000 4,643,000 3,701,500 9,715,500 3,141,000 101,301,000 76,510,000 76,510,000 $12,970,000 7,935,000 13,052,000 12,617,000 Total change from Hay 20, 1915, to Apr. 20,1916.2 From Mar. 24,1916, to Apr. 20,1916.1 To Mar. 23,1916. Decrease. Decrease. Increase. $17,160,000 1,776,000 1,843,000 518,000 614,000 21,911,000 $8,174,000 5,060,000 $164,573,666 3,140,000 2,232,000 45,000 6,451,000 2,487,000 773,000 21,911,000 111;024,000 Increase. $3,887,000 18,030,000 6,159,000 11,209,000 12,099,000 9,659,000 6,243,000 8,804,000 15,183,000 19,751,000 111,024,000 1 Changes in ownership of gold during period Mar. 24,1916, to Apr. 20,1916, equal 10.27 per cent of obligations settled. 2 Total changes in ownership of gold equal 6.01 per cent of obligations settled. Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas'City Dallas . . San Francisco Total Balance last statement, Mar. 23, 1916. Gold. Withdrawn. $3,443,000 $1,000,000 10,587,000 6,440,000 10,025,000 50,000 11,952,000 5,177,000 "i*666,666* 6,519,000 2, £47,000 4,598,000 3,878,000 10,036.000 226,666 4,368,000 2,000,000 79,670,000 4,270,000 Settlement of Mar. 30,1916. Transfers. Deposited. Debit. Credit. $500,000 $60,000 30,000 $500,000 29,000 29 000 90,000 529,000 529,000 Net • debits. Total debits. Total credits. $4,360,000 $4,542,000 13,389,000 10,131,000 6,863,000 8,069,000 965,000 186,000 1,151,000 5,965,000 6,744,000 779,000 1,516,000 1,391,000 125,000 6,599,000 7,547,000 5,790,000 4,940,000 111,000 118,000 7,000 806,000 723,000 994,000 278,000 564,000 194,000 *$3*258,"666' 4,355,000 46,875,000 46,875,000 Net credits. Mar. 30, 1916, balance in fund after clearing. 716,000 370,000 $3,125,000 7,329,000 7,646,000 9,789,000 10,733,000 4,111,000 7,467,000 3,497,000 4,591,000 3,961,000 10,503,000 2,738,000 4,355,000 75,490,000 $182,000 1,206,000 948,000 850,000 83,666 MAY 1, 1916. 221 FEDERAL RESERVE BULLETIN. Summary of transactions, Mar. 24, 1916, to Apr. 20, 1916—Continued. Federal Reserve Bank of— Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis . Kansas City.. Dallas San Francisco Total Federal Reserve Bank of— Boston . . New York Philadelphia Cleveland. Richmond Atlanta Chicago St. Louis. AfjjnriP!ap(VHs Kansas City Dallas San Francisco Total Federal Reserve Bank of— Balance last statement, Mar. 30, 1916. Withdrawn. Deposited. Debit. $3,125,000 7 329 000 $10,000,000 11,000,000 7 646 000 $2,500,000 120,000 9 789 000 40,000 10 733 000 5oo 666 4 111 000 1,200,000 300,000 7,467,000 3,497,000 20,000 100,000 4,591,000 3 961,000 50,000 i62,500 756,666 10,503,000 621,000 2,157,500 50,000 2 738,000 75,490,000 Balance last statement, Apr. 6, 1916. 6,160,000 10,920,000 Gold. Withdrawn. 80,250,000 Balance last statement, Apr. 13, 1916. 75,820,000 $160,000 160,000 Gold. $500,000 20,666 1,350,000 621,000 2,491,000 Net debits. Debit. 3,168,000 Deposited. $120,000 Debit. $200,000 566,666" 260,000 si2o,666 810,000 Total cerdits. Net credits. $4,940,000 $6,393,000 $1,453,000 17,751,000 9,528,000 6,977,000 9,091,000 2,114,000 840,000 1,043,000 203,000 5,635,000 6,736,000 1,101,000 1,431,000 1,571,000 140,000 7,250,000 7,959,000 709,000 5.135,000 5,123,000 12,000 79,000 176,00b 97,000 1,115,000 1,485,000 370,000 468,000 2,080,000 1,612,000 105,000 541,000 436,000 8,235,000 51,726,000 51,726,000 8,235,000 Settlement of Apr. 13,1916. Credit. Net debits. $1,400,000 500,000 $2,264,000 *" iiio 666 1,000,000 1 000 000 Total debits. $8,223,000 Total debits. "YIi3,"666" 34,000 1,040,000 228,000 576,000 58,000 310,000 64,000 3,168,000 4,419,000 Transfers. ""*43O,'666" 120,000 Credit. 50,000 228 000 750,000 4,590,000 Withdrawn. 2,491,000 Settlement of Apr. 6,1916. Transfers. Deposited. $5,078,000 11,000,000 8,106,000 7,380,000 3,000,000 9,972,000 11,334,000 80,000 2,751,000 9,526,000 .. 3,986,000 4 688 000 4,868,500 150,000 9,386,500 360,000 3,174,000 Boston $6,054,000 New York 6,342,000 Philadelphia . . 5,804,000 Cleveland. 8,719,000 Richmond 10,380,000 Atlanta. ...'. . 2,631,000 Chicago 9 990,000 St. Louis 5,055,000 Minneapolis . . . . . . 4,630,000 Kansas City 4,358,500 Dallas . . . 9,496,500 San Francisco 2,360,000 Total Transfers. Gold. Total credits. $5,678,000 $6,254,000 15,127,000 12,863,000 6,325,000 7,749,000 1,761,000 648,000 6,837,000 6,803,000 1,523,000 2,403,000 7,393,000 6,817,000 5,370,000 6,211,000 147,000 89,000 1,252,000 942,000 197,000 895,000 74,000 10,000 51,684,000 51,684,000 Net credits. $576,000 1,424,000 880,000 841,000 698,000 4,419,000 Settlement of Apr. 20,1916. Credit. $521,000 88," 666" 200,000 109,000 10 000 10,000 819,000 819,000 Net debits. $2,915,000 205,000 360,000 131,000 531,000 276,000 657,000 Total debits. Total credits. Net credits. Apr. 6) 1916, balance in fund after clearing. $5,078,000 8,106,000 7,380,000 9,972,000 11,334,000 2,751,000 9,526,000 3,986,000 4,688,000 4,868,500 9,386,500 3,174,000 80,250,000 Apr. 13, 1916, balance m fund after clearing. $6,054,000 6/342,000 5,804,000 8,719,000 10,380,000 2,631,000 9,990,000 5,055,000 4,630,000 4,358,500 8,496,500 2,360,000 75,820,000 Apr. 20, 1916, balance in fund after clearing. $5,414,000 $8,977,000 15,678,000 12,763,000 9,002,000 8,797,000 1,412,000 1,052,000 7,392,000 7,261,000 1,868,000 2,138,000 7,885,000 7,354,000 5,507,000 5,231,000 127,000 114,000 682,000 1,339,000 644,000 206,000 904,000 113,000 $3,563,000 438,000 791,000 $9,617,000 3,427,000 6,240,000 8,159,000 10,679,000 2,489,000 9,659,000 5,039,000 4,643,000 3,701,500 9,715,500 3,141,000 55,930,000 5,075,000 76,510,000 5,075,000 55,930,000 270,000 13,000 222 MAY 1,1916. FEDERAL RESERVE BULLETIN. of transactions Mar. 24 , 1916, to Apr. 20, 1916. Federal Reserve Agents' Fund—Summary Week ending Apr. 6,1916. Week ending Mar. 30,1916. Mar. 23, 1916, balance. Federal Reserve Agent at— Philadelphia Richniond. Atlanta ....... Chicago . 4 . St Louis ... . Minneapolis...- i Kansas City... ±. Dallas San Francisco Total .. .*....-. $3,480,000 6,530,000 11,950,000 3,410,000 4,440 000 2,350,000 4,100,000 540 000 10 570 000 . .. . . . . . .» . -.. . .. 47,370,000 Withdrawn. Deposited. Balance. Withdrawn. 70,000 $120,000 110,000 600,000 1,200,000 48,500,000 280,000 1,600,000 Philadelphia. Richmond Atlanta Chicago -•••... . . Withdrawn. . . . . . $100,000 * . . . . . St Louis Minneai) ol is Dallas Sail Francisco Total.. . ^00,000 70,000 . 370,000 . . Deposited. Balance. S3,360.000 6,430,000 13,950,000 3,410,000 4,390,000 2,350,000 3,900,000 $310,000 1,400000 10 570 000 310,000 $3,360,000 6,530,000 13,950,000 3,410,000 4,390,000 2,350,000 4,100,000 1,160,000 10,570,000 $1,000,000 50,000 Week ending Apr. 13,1916. Federal Reserve Agent at— Balance. $3,480,000 6,530,000 12,950,000 3,410,000 4,440,000 2,350.000 4,100 000 200,000 670,000 10,570,000 $1,000,000 $70,000 Deposited. 49,820,000 Week ending Apr. 20,1916. Withdrawn. Deposited. $120,000 430,000 49,760.000 | 260,000 50,000 $100,000 860,000 100,000 Balance. $3,240,000 6,000,000 13,950,000 3,410,000 4,130.000 2,350,000 3,900,000 1,450,000 10,570,000 49,000,000 Gross Individual and Bank Deposits, The subjoined chart illustrates graphically the fluctuation in individual and bank deposits in the three groups of national banks, to wit, country, reserve city, and central reserve city banks, as disclosed by the various calls of the Comptroller of the Currency, beginning with June 30, 1914, and ending with December 31, 1915. The chart also illus- trates the small ratio which bank deposits bear to individual deposits in country banks, and the increasing ratio of bank deposits to individual deposits in reserve city banks, and, finally, the very high ratio in the case of central reserve .city banks where the amount of bank deposits almost equals the individual deposits. The figures are also given herewith. Gross individual and bank deposits of national hanhs. Held by country banks. Held by reserve city banks. Held by central reserve city banks. Pate of Comptroller's call. Individual deposits. 1914. June 30... Sept. 12 Oct. 31 Dec. 31 Mar.4 May 1.. June 23 Sept.2 Nov. 10. Dec. 31 1915. $3,666,828,850 3,609,368.840 3:577,813,620 3,586,723,612 3,644,546,338 3,644,397,137 3,653,961,172 3,725.438,771 3,913'481,802 3 988 7S6J353 Bank deposits. Individual deposits. Bank deposits. Individual deposits. Bank deposits.. $250,731,058 $1,557,876,365 241,713,201 1,547,161,962 228,286,090 1,520,882,734 236,026,436 1,586,527,270 $888,079,318 811,087,853 797,149,933 755,368.045 $1,153,143,079 1,081,139,571 1,085,517,142 1,193,445,839 $1,047,092,253 897,097,572 866,293,005 878,377,169 1,578,966,280 1,656,857,872 1,693,932,700 1,710,632,538 1,876,114,617 1,896,708,187 847,503,986 S43,440,977 815,263,079 869,980,357 972,338,868 987,557,975 1,126,710,428 1,364,258,529 1,265,341,766 1,327,389,310 1,658,202,888 1,778,449,538 1,136,863,718 1,144,814,983 1,167,385,754 1,360,250,526 1,467,833,679 1,466,397,020 259,377,030 238,278,237 225,357,283 235;824,787 269,500,836 284,476,679 MAY l, 1916. FEDERAL RESERVE BULLETIN". Gross individual and bank deposits of national hanks. 223 224 FEDEKAL RESERVE BULLETIN. MAY 1,1916. INFORMAL RULINGS OF THE BOARD. Below are reproduced letters sent out from time to time over the signatures of the officers of the Federal Reserve Board which contain information believed to be of general interest to Federal Reserve Banks and member banks of the system: Clayton Act and State Banks. You are advised that section 8 of the Clayton Act prohibits a person who is a director of a' State bank with resources aggregating more than $5,000,000 from serviiig at the same time as a director of any national bank, regardless of the size or location of that national bank. That section, however, does not prohibit a person who is a director of a State bank with resources aggregating more than $5,000,000 from serving at the same time as an officer or employee of any national bank, unless both institutions are located in the same city of more than 200,000 inhabitants or unless the State bank in question is a member of the Federal Reserve System. You are advised, therefore, that under the facts as presented in your letter there is no prohibition against a director in the trust company you name from serving at the same time as an officer or employee of the consolidated bank referred to. MARCH 4, 1916. Foreign Bank Branches In United States. In reply to your letter of March 30, 1916, you are advised that there is no provision in the laws of the United States relating to the right of a foreign bank to establish branches in this country. A proper determination of that question, therefore, depends upon the laws of the various States in which it is intended to operate such branches. A foreign bank, like a corporation of any other State of the Union, which intends to establish a branch in any particular State of the United States, would nave to conform to the laws of that State, not only as to the conditions of its admission, but also as to the manner and extent of its operations after receiving permission to commence business. AJPBIL 4, 1916. Bonds Securing Circulating Notes. Under the provisions of the National Bank Act any national bank desiring to withdraw its circulating notes in whole or in part may, upon the deposit of lawful money with the Treasurer, take up the bonds deposited with the Treasurer for the security of such notes, provided, however, that the amount of bonds on deposit shall not be reduced below $50,000 in the case of a bank having a capital of more than $150,000, nor below one-fourth the amount of the capital in the case of a bank whose capital is $150,000 or less. Section 18 of the Federal Reserve Act provides in part that—"Any member bank desiring to retire the whole or any part of its circulating notes may file with the Treasurer of the United States an application to sell for its account, at par and accrued interest, United States bonds securing circulation to be retired.7' One of the purposes of this section, as its title indicates, was to provide for the refunding of bonds deposited by national banks to secure circulation. It will he observed that, while a limit is placed on the amount which the Federal Reserve Banks may purchase in any one year, no limitation or restriction was incorporated in this section on the amount that any national bank may sell. You are accordingly advised that under the interpretation of this section, which has been adopted by the Treasury Department, national banks are not required to maintain a minimum amount of bonds on deposit with the Treasurer, provided such bonds are sold through the Treasurer under the provisions of section 18. APRIL 8, 1916. Rediscounts of Member Banks. In answer to your letter of April 8, I would state that our counsel advises us as follows: (1) Section 5202 of the Revised Statutes of the United States, providing that no national banking association shall be indebted or liable to an amount exceeding the amount of its capital stock actually paid in and remaining undiminished by losses or otherwise, was amended by the Federal Reserve Act, by inserting another exception, namely, liabilities incurred under the Federal Reserve Act You li 1916. would not, therefore, under section 5202, as amended, have to take into account, in determining the total amount of your liability, paper rediscounted with the Federal Reserve Bank. (2) There is no limitation in the law as to the total amount of rediscounts which a member bank may take from the Federal Reserve Bank. There is, however, a provision in section 13 of the Federal Reserve Act providing that the aggregate of notes bearing the signature or indorsement of any one person, corporation, etc., rediscounted by the Federal Reserve Bank for any one bank shall at no time exceed 10 per cent of the unimpaired capital and surplus of said bank. This clause of the Act contains an exception as to the discount of bills of exchange, but no exception is made as to the discount of promissory notes. If, therefore, any particular paper which you present for rediscount to the Federal Reserve Bank, either singly or added to the paper of the same makers or indorsers which •tji.e Federal Reserve Bank has already rediscounted for you, amounts to a total of more than 10 per cent of the unimpaired capital and surplus of your bank, the Federal Reserve Bank, under the clause above quoted, has no authority to rediscount. APRIL 17, 225 FEDERAL EESEH^E BULLETIN. 1916. DISTRICT NO. 8. Trustee, execiitpr, administrator, and registrar of stocks and bonds: First National Bank, Mount Vernon, Ind. Central State National Bank, Memphis, Tenn, DISTRICT NO. 11. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Beaumont, Tex. Trustee: First National Bank, Troup, Tex. Intradistrict Clearing System, Additions to and withdrawals from the intra- • district clearing system since the publication of lists in previous issues of the Bulletin are as follows: DISTRICT NO. 1. Withdrawals: First Bridgeport National Bank, Bridgeport, Conn. Danbury National Bank, Danbury, Conn. Greenwich National Bank, Greenwich, Conn. DISTRICT NO. 2. Additions: Connecticut National Bank, Bridgeport, Conn, Danbury National Bank, Danbury, Conn. Greenwich National Bank, Greenwich, Conn, National City Bank, Troy, N. Y. DISTRICT NO. 3. Fiduciary Powers. Withdrawal: Firat National Bank, Altoona, Pa. Applications from the following banks for DISTRICT No. 4. permission to act under section 11 (k) of the Withdrawal: Farmers National Bank, Arcanum, Ohio. Federal Reserve Act have been approved by the Board since the issue of the April Bulletin, DISTRICT NO. 5, Withdrawals: as follows: DISTRICT No. 1. Registrar of stocks and bonds: Ansonia National Bank, Ansonia, Conn. DISTRICT NO. 3. Trustee, executor, administrator, and registrar of stocks and bonds: Union National Bank, Atlantic City, N. J. DISTRICT NO. 4. Trustee: Citizens National Bank, Sidney, Ohio. DISTRICT NO. 7. Trustee, executor, administrator, and registrar of stocks and bonds: First National Bank, Clarence, Iowa. Farmers National Bank, Sheridan, Ind. 38288—16—4 First National Bank, Oxford, N. 0. First National Bank, Wilson, N. C. Peoples National Bank, Charleston, S. C. Edisto National Bank, Orangeburg, S. C. National Union Bank, Kock Hill, S. C. DISTRICT No. 6. Addition: Farmers National Bank, Shelbyville, Tenn. DISTRICT No. 8. Withdrawals: First National Bank, Siloam Springs, Ark. Lynnville National Bank, Lynville, Ind. Farmers National Bank, Mayfield, Ky, DISTRICT NO. 11. Withdrawals: Calcasieu National Bank, Lake Charles, La. First National Bank, Alpine, Tex. First National Bank, Clyde, Tex. 226 FEDERAL KESEEVE BULEETIH. Mm 1, LAW DEPARTMENT. The following opinions of counsel have been also that the various stipulations contained authorized for publication by the Board since therein do not affect its negotiability. If drawn on the purchaser of goods by the seller of such the last edition of the Bulletin: goods, as certified in the margin of the bill, it Negotiability of Bills of Exchange. would when accepted become a trade acceptNegotiability of & ' bill of exchange Is not affected by pro- ance within the definition fixed by the Federal visions which waive demand, notice, and protest; wMch Reserve Board in Regulation P, series of 1915, waive homestead exemption rights; and which provide for and would be eligible for rediscount by the the costs of collection and attorney's fees. Federal Reserve Bank of Atlanta at the rate APRIL 13, 1916. established for trade acceptances. SIR: The attached form of acceptance has Respectfully, been referred to this office for an opinion as to M. C. ELLIOTT, Counsel. whether it is in form a negotiable draft or bill To Hon. C. S. HAMLIN, of exchange. Governor Federal Reserve Board. The instrument in question is undoubtedly in the form of a bill of exchange and not a note. Maturity of Farm Land Loans. It is an unconditional order addressed by one A national bank may discount or purchase a note secured person to another requiring the person to by improved and unencumbered farm land, even though whom it is addressed to pay on demand or at a such note is payable more than five years after its date, fixed or determinable future time a sum certain provided it will mature within five years from the date on in money to order. (See sec. 126, Negotiable which is is acquired by such national bank. Instruments Law.) A P R I L 8, 1916. The only question to be determined, thereSIR: The following question has been refore, is whether certain stipulations contained ferred to this office for an opinion: in the bill relating to the payment of fees, Can a national bank, under section 24 of the waiver of protest^ etc., render it nonnegotiable. Act, discount or purchase a note secured by Section 5, subsection 3, of the Negotiable improved and unencumbered farm land, which is payable more than five years after the date Instruments Law provides that: note was made but which will mature "Negotiability is iiot affected by a provision such within five years from the date of acquisition which waives the benefit of any law intended by a national bank ? for the advantage or protection of the obligor." Section 24 of the Federal Reserve Act proIt is certain, therefore, that the waiver of vides in part: homestead and exemption rights does not Any national banking association not situdestroy the negotiability of the bill. ated in reserve city may make loans So, also, a provision to pay the costs of col- secured abycentral improved and unencumbered farm lection and attorney's fees does not invalidate knd, situated within its Federal Reserve disthe instrument. (See Negotiable Instruments trict, but no such loan shall be made for Law, sec. 2, subsec. 5; First National Bank of a longer time than five years. Shawana v. Miller, 139 Wise, 126.) The fact In an opinion of this office published on page that the drawer and indorsers waive demand, 120 of the March, 1916, issue of the Federal notice, and protest does not in any way affect Reserve Bulletin, the conclusion was reached negotiability. (See Norton on Bills and Notes, that the power to "make loans" included the 4th ed., chap. 9, sec. 148 (b).) power to purchase or discount loans already It seems, therefore, not only that the attached made as well as to make such loans in the instrument is in form a bill of exchange but first instance. 1, 1916. FEDERAL RESERVE BULLETIN". Prior to the passage of the Federal Reserve Act national banks were not permitted to accept real estate as security for loans except where this became necessary to prevent losses on debts previously contracted. It is generally understood that this class of loan was not authorized because of its nonliquid character. The purpose of section 24 seems clearly to have been to authorize a national bank to invest a limited amount of its resources in farm loans, provided it invests no part of its funds in any one loan for a longer period than five years. In this view the date of the note is immaterial, in the opinion of this office, if the obligation matures within five years from the date that the national bank makes the loan. Respectfully, M. 0. ELLIOTT, Counsel. To Hon. JOHN SKELTON WILLIAMS, Comptroller of the Currency. Bills of Exchange Under Section 5200, Revised Statutes. An obligation in the form of a bill of exchange which exempts the drawer from liability is not a bill of exchange coming within the exception to the limitations of section 5200 of the Revised Statutes. MARCH 22, 1916. SIR: The attached letter in substance raises the question whether a draft or Mil on which the drawer is exempted from liability by a statement to the effect that it "is taken without liability on part of drawer" is a bill of exchange, coming within the exception to the limitations of section 5200 of the Revised Statutes. An obligation which is in the form of a bill of exchange, but which, in fact, does not hold anyone but the acceptor liable, is, in substance, a promissory note, and not a bill of exchange. It is, therefore, not entitled to the exemption afforded under the provisions of section 5200, because it is not a a bill of exchange drawn in good faith against actually existing values." Respectfully, M. C. ELLIOTT, Counsel. To Hon. C. S. HAMLIN, Governor Federal Reserve Board. Rediscount of the Assignment of Open Accounts. The assignment of an open account is not negotiable paper and is not eligible for rediscount.by a Federal Re- 227 serve Bank under the terms of section 13 of the Federal Reserve Act. APBIL 17, 1916. SIR: The attached, letter raises the question whether a valid assignment of an open book account is rediscountable by a Federal Reserve Bank. It appears that certain national banks located in Pennsylvania desiring to accommodate some of their customers, who are coal operators, have purchased written assignments of the open accounts due to such customers from various railroads. The question submitted is whether such assignments can be discounted by the Federal Reserve Bank of Cleveland. Section 13 of the Federal Reserve Act authorizes any Federal Reserve Bank to discount for its member banks "notes, drafts, and bills of exchange arising out of actual commercial transactions.77 The obligation in question is not a note, draft, or bill of exchange, and therefore does not come within the express terms of that section. This omission was evidently not an oversight on the part of Congress. An assignment in the form under consideration is not negotiable paper and has none of the elements of negotiable paper. It does nothing more than grant to the assignee the rights which the coal operator has against the purchaser; that is, rights which are subject to ail the equities and offsets which the purchaser or obligor may have against such coal operators. Furthermore, the assignee bank may be disbarred as against the original debtor by a bona fide payment by such debtor to the coal operator without any notice whatever to ! the bank. These facts in themselves would seem to be sufficient to indicate that the paper in question not only is not expressly authorized by the Act, but also does not come within the intent or spirit of the Act. It is not bankable paper, and should not, therefore, be considered as a proper discount for a Federal Reserve Bank. Respectfully, M. C. ELLIOTT, Counsel. To Hon. C. S. HAMLIK, Governor Federal Reserve Board. 228 FEDERAL RESERVE BULLETIN. GENERAL BUSINESS CONDITIONS. General business and banking conditions are described in reports made by Federal Reserve Agents for the 12 Federal Reserve Districts, as of approximately April 24, substantially as follows: DISTRICT NO. 1—BOSTON. Business continues to improve, and a comparison of conditions to-day with those prevailing a year ago shows that the improvement in many cases has been extreme, although from month to month it is not so noticeable. Reports from various lines of trade do not indicate that any slowing up of the demand is in sight and in practically every business the present prosperity is expected to last for a good while to come, barring some unforeseen deterrent happening. In some lines the increasing cost of raw materials and the unsettled labor conditions are causing considerable uneasiness, but conditions, for the most part, are favorable, and manufacturers and merchants generally are making money. The freight situation on the New England railroads has greatly improved and unless the lines again become overtaxed this should not cause much further inconvenience. There is no change in the money market. Although the excess reserves of the Boston Clearing House banks show a very substantial decrease from the high point of last fall, rates remain low and money comparatively easy. Call money is 3 per cent; commercial paper, 3 to 3J per cent for short dates; 3 per cent upward for six months; 4 to 4J per cent for a year; town notes, fall maturities, 2f to 3 per cent; bankers7 acceptances, 90 days, 2 per cent upward. Loans and discounts of the Boston Clearing House banks show an increase of $1,684,000 over a month ago, while demand deposits show a decrease of $2,343,000 in the same time. The amount "Due to other banks" on April 15, 1916, was $144,477,000, an increase of $6,639,000 over last month. The excess reserve of these banks has decreased from MAY 1, 1916. $57,825,000 on March 18, 1916, to $56,950,000 on April 15, 1916. Exchanges of the Boston Clearing House for the week ending April 15, 1916, were $219,284,696 as compared with $177,808,372 for the corresponding week last year and $219,789,796 for the week ending March 18, 1916. Building and engineering operations in New England from January 1 to April 12, 1916, amounted to $47,982,000, being a high record for many years. The nearest approach to these figures was in 1912 when operations for the similar period amounted to $45,860,000. Exports from the port of Boston for March, 1916, amounted to $11,506,025, a decrease of $290,669 as compared with February, 1916, and a decrease of $1,193,553 from March, 1915. Imports for March, 1916, showed a very decided decrease from February, 1916, only totaling $21,451,229 in March, as compared with $28,581,611 in February. Imports for March, 1915, were $18,794,312. Receipts of the Boston Post Office for March, 1916, show an increase of $31,662, or about A\ per cent, over March, 1915. Receipts for the first 15 days of April, 1916, show an increase of $48,869, or about 14 per cent over the same period last year. The Boston & Maine Railroad reports net operating income, after taxes, for February, 1916, as $884,693, as compared with $491,868 the corresponding month of 1915. The New York, New Haven & Hartford Railroad reports net operating income, after taxes, for February, 1916, as $1,198,373, as compared with $1,289,683 the same month last year. Manufacturers of boots and shoes report exceptionally good business at advancing prices, with fall orders coming in well. The high and increasing cost of leather is forcing manufacturers to advance their prices, and many retailers anticipating still higher prices are placing their fall orders early. Cotton mills are sold far enough ahead to insure running at capacity for many months to come. In many fabrics this is a betweenseasons period, and buyers, therefore, are not in MAY 1, 1916. FEDERAL RESERVE BULLETIN. the market to so large an extent as last month. Mills, however, are so amply provided with orders that the fluctuations in the volume of buying from week to week receive little attention. Lack of certain classes of skilled labor and unrest among employees is receiving more consideration than additional orders. Conditions in the woolen and worsted industry remain about the same. There is a good volume of buying and prices are firm. Mills have all the business they can take care of and are running as full as possible, in most cases being sold ahead well into the fall. The market for securities remains quiet, without any particular features, due to a large extent to the unsettled international situation. DISTRICT NO. 2—NEW YORK. A late spring is delaying the opening of navigation on the Great Lakes and heavy snowfalls have held up plowing and farm work. Shipping interests on the Lakes foresee an unusually heavy movement of ore, coal, grain, and general freight, and are prepared for a busy season. It is proposed to establish at New York regular auctions of vessels similar to those held at English and continental ports. The first ship auction sales were made here on April 10. The volume of goods produced and sold last month was probably greater than in any March on record. The business activity and the prevailing high prices are being reflected in earnings and cash balances shown in published statements of corporations. Country merchants are reported to be buying more goods than at any time since 1907. In view of the extraordinary conditions and prices not a few are inclined to question the wisdom of heavy commitments in these times. Certain concerns in various lines of business have been questioned on conditions and have reported directly as follows: Steel.—Practically sold up with orders for six months ahead. Deliveries are difficult owing to transportation conditions. Unfilled orders of the United States Steel Corporation 229 on March 31 were 9,331,001 tons, against 4,225,749 tons a year ago. Leather.—Not many military orders now, but a heavy domestic demand. Prices are high and will probably continue so for some time. Collections are good. Boots and sTioes.—Prices advancing and business brisk. Prints and colored goods.—In strong demand and prices advancing. Lumber.—Trade improving; prices increasing. Building and materials.—Business less active; larger jobs about completed and new work does not offer sufficient margin of profit. Department stores.—Larger sales of better grade wearing apparel. More money seen in circulation. Jewelry.—Sales of diamonds five times larger than for several months past; pearls in good demand. Large silver pieces called for notwithstanding advance in price of the metal. Platinum lines paralyzed by the high price of the metal. The clock industry worked to capacity. Strikes have occurred among jewelry workers and railroad construction employees. Silk weavers in Paterson, N. J., demanded and were granted a 9-hour instead of a 10-hour working day. New York Clearing House members on April 15, 1916, reported loans, etc., $3,378,106,000; deposits, $3,551,993,000; and excess reserves, $102,744,000. Since March 4, 1916, loans, etc., increased $15,927,000, deposits decreased $23,235,000. and excess reserves decreased $34,776,000. Excess reserves were $224,122,990 on September 11 last. New York City offered on April 19, $40,000,000 41 per cent corporate stock payable April 1, 1966, and $15,000,000 bearing the same rate of interest but maturing serially from April 1, 1917, to April 1,1931. The average price realized on the 50-year stock was 102.618 and for the 15-year issues 101.432. The Canadian Government loan of $75,000,000, maturing in 5, 10, and 15 years, 280 3EDEBAL BESEBVE BIIIXETIH. yielding 5.37J to 5£- per cent, was oversubscribed in New York and allotted on 'March. 24. Silver bullion quoted at 64$ cents represents an advance of 18•§• cents from the low price of 1915. The average price last year was 49.69 cents, and in 1914, 54.81 cents. Sterling exchange has been steady at 4.76 to 4.76$. Paris checks gradually reacted froin 5.87J, and on April 14 dropped to 6.08$, but recovered 12 points within the next few days. German sight bills declined to 71J on March 21, but have since strengthened to 74$. Holland exchange continued at a premium of 5 to 6 per cent. Italian bills since March 1 have advanced from 6.71| to 6.48. The high rate for call money in March was 2$ per cent, the low rate If per cent, and renewals 2 per cent. Time loans on collateral were slightly firmer, with a range from 2$ to 4 per cent. No changes occurred in rates for bankers' acceptances, viz, 2 to 2f per cent. Commercial paper rates were stronger at 3 to 3$ per cent. During the latter part of the month sales at rates below 3 per cent prac~. tically ceased. DISTRICT NO. 3—PHILADELPHIA. The outstanding feature of the business situation in this district is the rise in prices which continues in most lines. Trade is brisk, and energy is concentrated more on methods of production and questions of delivery than on discussions of prices. Manufacturing plants are working to capacity, and many have sufficient orders on hand to keep busy for considerable periods. The emergency orders are bringing profit to the small shops, as the overflow work has been parceled out to a large number of them. Farmers particularly are feeling the scarcity of labor. Some of the railroad shops have been operating on short time because of inability to obtain raw materials. There is a good demand for equipment. The loaded freight car movement of the largest railroad in the district shows an increase of 33 per cent during the first 14 days of April over the same month of 1915. MAY 1,1916. According to the report of the Commissioners of Navigation, exports at this port during the month of March showed an approximate value of $21,000,000, an. increase of about $14,000,000 over March, 1915. The value of the imports was about $9,600,000, compared with $7,600,000 for the corresponding month of last year. The importation of wool and cane sugar has increased greatly. Sugar worth $3,907,584 was imported in March, which represents a gain of $912,052 over the same period of 1915. Wool increased during the same period $838,440 to $1,168,138. During the first three months of 1916, merchandise valued at about $46,000,000 was shipped abroad from Philadelphia, being an increase of $22,000,000 over the first quarter of 1915. A falling off is noted in the coastwise trade. Heavy shipments of war supplies, flour, and refined sugar were made. Building operations,—In the smaller cities and towns, new building has not been very extensive, but in the larger cities, the reverse is generally the case, and a good deal of work is contemplated, especially in the erection of homes and houses. Carpets, rugs, etc.—Carpet wool has gone up 100 per cent since last year, and local concerns have sharply advanced their prices of stock goods. The plush business is thriving. Cement,—During the summer and latter months of 1915 the condition of the cement industry was very satisfactory. Indications are more favorable this spring than last year. Consumers buy very little during the winter-months, but the past winter has been better than for many years. Car shortage has interfered with shipments, but has lately improved. Contracts for 1916 delivery are very good and at better prices than last year. The mills are running at about 80 per cent capacity, due not to lack of orders, but to scarcity of labor. The price of labor is going up steadily, and if it does not advance above the point anticipated the outlook will be very good for profitable business. Unfavorable weather conditions have greatly hampered \ work during the past six weeks, 211 FEDERAL RESEBVB BULJLETXH. Chemicals.—Because of the dyestuff scarcity Leather and shoes.—There is a strong demand manufacturers have been compelled to with- for shoes; jobbers and wholesalers find diffidraw some lines. Experiments to manufacture culty in keeping up stocks, and prices incline colors coijttinue with some success. The de- upward. There is a great scarcity of tanning mand for paints, oils, and varnishes in general materials and dyes. Glazed kid is very active, far exceeds the production, and plants are and the demand is close to the supply. Shipworking to capacity trying to keep up with ping conditions retard the importation of skins. orders. Ingredients of paints have advanced Lumber and building materials.—Lumber tremendously. Glass has been in good demand dealers report conditions better than for a numwith high prices. Drugs continue high. ber of years. Orders are large and prices are $5 Goal.—-The shortage of cars continues to be and $6 per thousand feet higher than a year ago. an obstacle in the way of transportation. The Building materials are advancing in price. business,.however, is normal. Paper.—Sometime ago many manufacturers Cotton and cotton goods.—Conditions in the withdrew all quotations and have since been cotton yarn market continue to show an active making their prices from day to day only, demand, with hardening of prices. Most niills owing to difficulty and uncertainty in securing making cotton goods are well sold up, and or- chemicals, dyes, and other items heretofore obders taken are naturally for future delivery. tained abroad, and the tremendous price inDry goods, notions, millinery.—Wholesalers creases resulting therefrom. Paper mills have and jobbers report a very satisfactory season, business enough on their books to keep them with an increase of business over the previous going for several months, and from special reyear. Sales of millinery are well up to expecta- ports, we learn that the demand for paper is the tions, and the outlook for the future is con- biggest ever known. The selling price seems sidered extremely encouraging. to be no longer based upon the cost of producHardware and electrical supplies.—-Manufac- tion, and is influenced almost entirely by the turers and jobbers report increased sales. The demand. In a way, paper is a barometer of hardware trade generally has felt the effects of general conditions, for the amount of paper the prosperity wave for some months, and re- used is governed to a large extent by the amount ports show no decrease in the world demand for of advertising in newspapers and magazines, hardware, and especially for mill supplies, and by the number of packages sent out by the The situation in electrical supplies is decidedly stores. The lack of sufficient raw materials is favorable, notably in those Hues used in connec- rapidly becoming a serious factor, and for this tion with building. reason the outlook is only a guess. Collections Iron and steel.—The domestic steel consump- are very good, as customers are anxious to.take tion is a very important factor in the present advantage of discounts. highly satisfactory condition of this industry. Silk.—The silk industry is working to the Not only railroads, but other consumers have limit of capacity. Fall business is being taken come into the market and placed orders for at high prices. Western interests are reported large tonnages of steel. The placing of large to be placing large orders on the assumption orders for rails to be delivered in 1917 is a nota- that prices may go higher .rather than lower. ble feature of the market. Orders for cars and Many mills have made additions to their plants. locomotives during the first quarter aggregate Textiles.—Conditions in hosiery and under766 and 540 per cent more than for the first wear show little change. There has been some quarter of 1915. There is a more conservative falling off in retail buying. Mills have caught spirit shown in prices for steel products, and it up somewhat on deliveries, and am generally is believed that the end has come to headlong sold up to the limit. There are predictions of advances. Pig iron is very strong and a tiigher a slump, due to abnormal purchasing of goods. market is expected, Labor is restless, but tiie situation is not acute. «/ XT O »/ 282 FEDERAL BESBBVE BULLETIN. purchases by the warring nations have increased tobacco prices, and continued buying tends toward further increases. Growers report that on account of unfavorable weather conditions very few seed beds have been made, and there will be little planting done before early June, which is late. Wearing, apparel.—The demand for all classes of wearing apparel is well maintained, and except for the difficulty in obtaining some krpds of fabrics, the outlook is very bright, especially as the probability of serious labor troubles is becoming more remote. Competent help is hard to secure. Wool and woolen goods.—There has been a lull in the buying of wool and woolen goods. Manufacturers are expected to become more liberal buyers as soon as present supplies are absorbed. The money market continues easy and featureless. Rates are quoted at 3 to 3-J per cent for call money, 3 to 4 per cent for time loans, and 3 to 3J per cent for choice commercial paper. Clearings continue to run high throughout the entire district. Our member banks report that the latter part of 1915 was profitable to most of their customers, and they are now doing very well. The smaller concerns, however, apparently did not meet with the phenomenal gains generally reported. ' DISTRICT.;NO. 4~~CLEVELAND, * There has been no substantial slowing down in the business prosperity of district No. 4. The earnings of steel companies and concerns in kindred lines are continuing at an unprecedented rate. Official figures and unofficial estimates from leading corporations in this district, if continued during the balance of the year, will assure profits which certainly will stand as the apex of industrial earnings for some years to come. A straw showing the enormous volume of domestic business now being booked is the order of the Pennsylvania Railroad Co. for the largest quantity of rails ever placed at one time. The announced advance rate of $5 a ton in the price of steel rails MAT!, 1916. is effective the beginning of May, and is the first change in 15 years. If there is a new feature in the iron and steel situation, it is the growing feeling among some of the largest concerns that output and shipments of finished products have probably reached the maximum on this movement. This feeling grows out of the fact that there is a shortage of raw and semifinished materials. For instance, some nut and bolt factories are now operating only about 70 per cent because of inability to obtain bars from which bolts and nuts are made. An inadequate supply of sheets and plates reduces the output of shops and factories using semifinished products. Two other factors enter into the feeling that output has reached its peak. The first is a continued shortage of shipping facilities, and the second is the shortage of labor. Newspapers are carrying columns of advertising which offer positions at good wages for skilled and unskilled mechanics. Railroads claim that they have experienced no shortage of men for train service, but are short of shopmen and particularly of common labor. Strenuous efforts are being made to open the navigation season on the lakes. It has already definitely begun on the lower half of the lakes. Vesselmen believe the Soo will not be navigable before April 25, so navigation, will not have been in full swing until that date. The estimated volume of ore shipments for this season is between 53,000,000 and *55,000,000 tons, which is several million tons in excess of the largest year. The production of coal continues large, although prices have not been quite so firm owing to consumers now using stocks accumulated in anticipation of a miners7 strike which, up to April 22, was thought to have been averted. Plate and window glass has now reached a new maximum output. The increased output finds a ready market at the highest price ever quoted. The oil industry is active. Demands for drilling are beyond the supply of oil well materials. Many producers who have been holding their oil are taking advantage of the present MAI 1, 1916. price and are selling, which has resulted in the accumulation of a large surplus of loanable funds in banks located in petroleum-producing districts. Reports from the garment industryshow an unexcelled season. Conditions in the mercantile trade are satisfactory. Post-office receipts in the six largest cities of the district for the month of March, 1916, show an increase of 11.1 per cent, the totals for the month being $1,273,237, as against $1,146,178.87 for the same month last year. Collections in ail lines are reported good, complaints being fewer this month. Payments, however, are not being made in many cases at to-day's prices, as many concerns are still working on material sold at prices lower than those now prevailing. As these contracts expire and the new rates obtain the less will be ^he purchasing power of the dollar, which will be immediately reflected in credit. Therefore the effect of the higher level of' values upon collection and credit-can not be determined yet. There were in March, 1916,; 126 failures in this district, with liabilities of $856,829, against 97 failures for the same month last year,•with liabilities of $1,272,900. There is a pressing demand in industrial districts for more and better housing facilities. The movement to supply this demand is in evidence but is being retarded by the high cost of building material as well as of labor. In the six largest cities of the district there were fewer building permits issued in March, 1916, than during the same month in 1915. Since May, 1915, this is the first report that did not show an increase in the number of permits issued over the same month of the previous year. The figures are given below: Number of permits issued. , March, March, 1915. 1916. Valuation. March, 1916. March, 1915. Per cent Increase of inor crease decrease. or decrease. Cincinnati Cleveland..-.. Columbus. Pittsburgh.... Toledo .... Youngstown.. 1,466 1,123 340 332 340 100 1,652 1,483 335 438 288 90 $984,500 $1,356,124 i 371,624 1,838,465 4,022,035 i 2,183,570 349,735 868,935 519,200 760,615 1,767,612 1.006,997 259,237 1,022,495 763,258 2,723 176,313 173,590 127.4 154.3 67.3 75.5 33.9 1.5 Total.... 3,701 4,286 6,658,320 7,841,204 i 1,182,884 U5.1 238 FEDERAL RESERVE BULLETIN, 1 Decrease. Kecord figures are being made in clearings. Money rates remain unchanged, and banks are plentifully supplied with loanable funds. Clearing figures in the same cities for the first 15 days in April are as follows: Apr. 1-15, 1918. Apr. 1-15, 1915. Increase. Percentage of increase. Cincinnati Cleveland Columbus........ Pittsburgh Toledo Youngstown. $73,099,600.00 $58,i, 785,400.00 $14, :, 314,200.00 94,889,457.40 68,209,928.04 26,679,529.36 23,183,800.00 14,912,200.00 8,271,600.00 .13,489,693.82 29,176,266.29 142,665,960.11113. 19,840,915.83 13,713,337.00 6,127.578.83 9,712,252.69 3,359,294.49 6,352,958.20 24.3 39.1 55.5 25.7 44.7 189.1 Total 363,391,986.03 272,469,853.35 90,922,132.68 33.4 The ^wheat crop in the district looks good. A great deal of tobacco probably will be put in. The price of this commodity is advancing rapidly. DISTRICT NO. 5—RICHMOND. Business continues to show improvement, jobbers reporting a fair volume of sales and good collections. Agricultural conditions on the whole are favorable. In some trucking sections along the coast, they are below normal, due to low prices of potatoes, but prospects are considered brighter for the coming crops. Farmers have done well during the past season and are in better financial condition than for some time past. Bad weather delayed crop preparations for a time, but on the whole lands are in good condition for the next crops. There has been more diversification than before. Food supplies have been more varied and abundant than heretofore, more attention being given to the care of live stock. The present cotton crop was Economically raised. Prices have been good and this has contributed materially to improved conditions and the prosperity of the agricultural sections. The tobacco crop was also raised without unusual costs, but there has been some complaint as to price. Owing to the scarcity and high prices of fertilizing materials, a reduction in volume is expected in the fertilizer trade. Manufacturers are doing well, and on the whole anticipate a satisfactory season. 284 tEDEEAL BESERVE BULLETIN. Conditions in the cotton-spinning industry, wMch have been seriously depressed for several years, show a marked improvement. Many of the mills which have failed to earn enough to take care of even the wear and tear on their plants are now finding a ready market for their goods at satisfactory prices. This increased demand has developed both in Europe and South American trade, but is hampered by the scarcity of freight room. Men in the timber and coal business in the interior report satisfactory conditions and earnings. West Virginia reports the location of a new and extensive steel plant and a new glass plant. The lumber trade has continued to improve from its recent depression. Jobbers' stocks are limited, and the mills are now moving a fair portion of their accumulated stocks at improved prices. This has been interfered with to some extent by congestion in the railroad traffic, particularly in New England and at the seaports. One point in the district reports 15,000 bales of cotton held in the county, which if sold would furnish more money than could be profitably used. Investors, even in the smaller cities, are reported to be looking for safe short-time investments, but not venturing far as to the future. Banks in large cities are offering money at low rates, resulting in decreased demands on the local banks. This has created an abundant supply of funds, resulting in decreased earnings for the local banks. DISTRICT NO. 6—ATLANTA. General conditions in the Sixth District since our April report are unchanged to any great extent and the outlook for the future continues to be favorable. Sugar, rice, and lumber are in active demand. There is a gradual selling of the cotton crop, which influences all lines of business endeavor. Manufacturers are working full time and many are behind on orders. The transportation problem continues a handicap, though deliveries are now effected somewhat more promptly, MAT 1.1916, The late frost did some damage to the early fruit crops of the South, but with the favorable weather of the past few weeks, all farm work is well advanced. A good deal of planting has b&en done in the lower Mississippi Valley, but in lower Alabama a good deal of land will go into corn, oats, and potatoes. Georgia fertilizertag sales show an increase over last year and the area in cotton and corn will be large. The supply of loanable funds in the banks remains at high level and is being steadily augmented, Interest rates are low, first-class commercial paper being in demand. Money being easy in this district the cotton holding situation is still strong, there being no disposition among the banks to force the farmers and merchants to dispose of their cotton now stored in the warehouses. DISTRICT NO. 7—CHICAGO. The business activity previously reported continues to manifest itself without evidence of strain upon the financial structure. Banking funds seeking legitimate investment are in excess of requirements, but there is more discrimination on the part of the paper-buying banks, with the smaller names paying a premium over the general minimum of 3 per cent, which has existed for some time. While there does not seem to be any lack of money in this district, some authorities are looking for better rates within the next few months. Banks in agricultural communities find this a dull season, as the farmer is engaged in spring work and can not give his attention to marketing operations, Bond houses report a strong demand for high-class municipal securities, and public-service issues are popular, with railroad and industrial bonds receiving some attention from investors. The present outlook for this line is satisfactory, with the demand frequently in excess of the supply. Bankers, manufacturers, and merchants are generally united in their favorable views on the business existing and in prospect, but some call attention to the danger from heavy purchases FEDEBAL BESBEVB BULLETIN. at high prices, as such commitments are somewhat speculative, their successful termination depending upon uncertain and uncontrollable external conditions. Cold weather delayed spring work in this section about two weeks, but present reports indicate favorable progress. The condition of fall wheat is unsatisfactory in many localities, and this has resulted in some additional acreage of oats. Illinois reports considerable damage to winter wheat, although some improvement in the situation has been noted since warm weather. Corn and oats are going into the plowed-up wheat land. Indiana is in a similar position, and the decreased wheat prospects mean increased acreage for oats and corn. In Iowa fall grain suffered in some sections, but the general condition of the soil is excellent, and the spring planting of corn and oats is making good progress. A larger acreage than usual of oats seems in prospect. Michigan looks forward to a good fruit crop, and other crops are reported as satisfactory for this season of the year. Wisconsin has an excellent outlook for winter wheat in certain localities, but all of the ground assigned to this crop was not so fortunate and some plowing under is probable, particularly in the southwestern part of the State. Agricultural implements.—This line of industry is handicapped by the advances in material and the difficulty in securing deliveries. Sales of acceptable volume are reported, a,nd the manufacturers anticipate general improving conditions™ Collateral sources corroborate the activity in the implement business. - Automobiles,—No decrease in the demand lias put in an appearance and the manufacturers claim that- their product is sold up for several months ahead with difficulty in securing materials with which to produce the machines. Building and building material.—Construction throughout this district is quite active, particularly in the manufacturing centers, and this will probably continue as long as the underlying causes operate. Business is reported as considerably greater in brick than last year at the same season, with good pros- 285 pects for the future. While there is no abnormal demand for cement, a reasonably satisfactory prospect is evidenced and collections are said to be good. Coal.—Unsettled conditions prevail in coal owing to the poor demand caused by the supply accumulated in anticipation of the April 1 strike, which did not materialize. Consumers, however, are to some extent contracting for their requirements for the ensuing year at what are said to be fair prices. Dry goods.—Wholesalers still enjoy a heavy demand and are booking considerable future business. Certain lines of merchandise are difficult to obtain, and a feeling exists that some of the purchases for fall delivery are of more or less speculative character. The largest business is said to come from the manufacturing centers where labor is well eniploiz-ed at increasing wages. The consumer, according to one authority, is purchasing a better grade of merchandise than heretofore, and up to date no unfavorable comment with regard to collections has been noted. Furniture.—Grand Rapids and Kenosha factories apparently are enjoying a satisfactory volume of business with some difficulty reported in connection with raw materials and railroad shipping facilities, The crop prospects have had considerable effect upon the grain markets during the past 30 days and scarcity of railroad equipment is said to have interfered considerably with the handling of grain.. Another factor in the situation is the prospect of an immense amount of Canadian wheat moving east on the opening of navigation in the Great Lakes. In the city of Chicago the grocery business is said to be of satisfactory volume, but throughout the smaller centers the retailers are not purchasing to any extent although the orders for future delivery are better than a year ago. A satisfactory trade is reported in the territory tributary to Des Homes, with collections unusually good. Hardware.—The higher prices necessitated by the difficulty in procuring steel products has not to date decreased sales.. The retailers and 286 FEDERAL RESERVE BULLETIN. the public appear to be taking an increased quantity of merchandise, but the collections are only fair. Leather,—The advances in hides and tanning materials caused by their scarcity indicate a considerable demand, which is confirmed by the reports from manufacturers in this line, who also advise they are finding it increasingly difficult to get sufficient labor. There is good prospect for a continuance of this activity. Sales of leather belting are said to show considerable increase over last year. Liquor.—Tax payments for the fiscal year are said to be at the rate of 34,000,000 to 35,000,000 gallons, with a prospective production of 1916 Kentucky whisky at between 20,000,000 and 22,000,000 gallons. Prices are reported firmer and a number of distilleries are working capacity, due to alcohol contracts. The situation with the breweries appears unchanged, although there is some slight prospect of improvement. Live stock.—The packing industry reports an exceptionally strong foreign demand, with an increased scarcity of bottoms for export. Byproducts^ such as wool, hides, glue, and fertilizer, a-j*e in excellent demand, which would show that the manufacturers using these products are fully employed. Live-stock prices are holding firm, and the indications are that the supply of live stock throughout this district is not as large as usual. An interesting comment is to the effect that hogs fed on Iowa soft corn have been figured to yield as high as $1 per bushel for the corn fed, based on present selling price of hogs and the increased weight per bushel of corn fed. The improvement formerly reported in lumber seems to continue, and there has been a strong demand for all kinds of lumber, which has firmed up the prices, with advances in values recorded in some of the products. Collec tions are not yet satisfactory, but some improvement is noted. The local mail-order houses show increases in their sales through this district, with marked MAY 1,191$. activity in automobile supplies, groceries, sporting goods> and textiles. The paper industry is having difficulty in procuring raw material, prices have gone up, and at the present time there is a tendency toward inactivity, owing to the disposition of the buyers to take on only limited supplies. Steel and wire goods, which enter into the construction of pianos, have considerably increased the expense of the finished article. Sales are showing some hesitancy at this time and collections are fair. The steel companies in this territory are accepting some orders for 1917 delivery. The present demand continues in excess of capacity, and prices have been fully maintained. Watches.—Watch factories continue to enjoy the increased activity reported last month, <and there is good prospect for a continuation of this condition for some time to come. April is expected to show a very satisfactory increase in business over the same month a year ago. Wool and woolens.—The situation in the wool market is quite similar to last month, with mills well covered on raw material. Supplies, however, are not excessive and the activity in this line is expected to bring about an increased der mand within the next few months. Manufacturers are feeling the shortage of raw materials and dyestuffs without prospect for immediate relief. Collections are said to be good. Clearings in Chicago for the first 20 days of April were $1,049,000,000, being $178,000,000 more than for the corresponding 20 days in April, 1915. Clearings reported by 18 cities in the district outside of Chicago amounted to $220,000,000 for the first 15 days of April, 1916, as compared with $164,000,000 for the first 15 days of April, 1915, and $225,000,000 for the first 15 days of March, 1916. Deposits in the eight Central Reserve City member banks in Chicago were $645,000,000 on April 18, 1916, and loans were $434,000,000. The deposits show a decrease during the past month of $3,000,000, and the loans a decrease of $4,000,000. MAT 1, 1916. FEDERAL RESERVE BULLETIN. DISTRICT NO. 8—ST. LOUIS. This district is in excellent business condition. Producers and manufacturers are operating to their capacity, shipments of merchandise show large increases, and the buying power of the general public has increased. This bank has obtained reports' from a large number of wholesale firms located in nine of the principal cities in this district. The list comprises wholesale and jobbing firms of the highest rating, who de^l in the necessities of life. Reports from these companies covering the first quarter of 1916 have been carefully analyzed. Business for the first three months of 1916 was compared to the average of these three months for 1915, 1914, and 1913. It was deemed essential to make a comparison with the approximate normal of three years, instead of any one year, thus eliminating at least to a degree temporary or other depression or expansion. From, an examination of the reports it appears that these firms show an average increase in shipments of 16 per cent for the period noted. The volume of unfilled orders on hand April 1 was 26 per cent larger than the three-year average. Their collections received during this same period were 10 per cent above the average collections of these three months for 1915, 1914, and 1913, and the amount of past-due accounts on hand April 1 approximately 15 per cent smaller than the average for April 1 of the three previous years. The present prosperity of the district is indicated by the increase in shipments and by an almost corresponding increase in collections, the complement of which is a smaller volume of pastdue accounts. The faith in the future is indicated by the marked increase in orders for future delivery. Only four of all the companies reporting showed a decrease in shipments for the first quarter of 1916 as compared to the average of the same months for the three previous years, and this loss was so slight as to be of no importance. It appears that the grocery and grocery commission business show smaller gains 237 than other branches of industry. In all inquiries merchants were requested to give us their opinions of business and agricultural conditions. The answers were almost without exception optimistic. Comments such as these appear in the reports: St. Louis. Business and agricultural conditions both very good. Business and agricultural conditions are very favorable. Retail business appears to be active. Reports received from our traveling men are most encouraging. We think business conditions are considerably better than they were in the years mentioned. Memphis, Tenn. Planting delayed on account of bad weather. Conditions very good. Good, and splendid prospects for its continuance. Louisville, Ky. Business and agricultural conditions good. Conditions fair. Western Kentucky affected by tobacco situation. Paducah, Ky. Only fair. Evansville, Ind. Generally good. Little - Rock. On the whole business and agricultural conditions are as good as we have ever had in this State. Business conditions are much better than last year. Agricultural conditions good up to the present, but cotton planting retarded account of late season. Fort Smith, Ark. Business very good. Healthiest business conditions for years. Agriculture not sufficiently advanced to warrant prediction. Springfield, Mo. Business hampered only by failure of mills to deliver. Agricultural conditions very favorable. The total of failures for the first three months of 1916 as compared to the same period of 1915 show a marked decrease both in number of failures and total of liabilities, while comparing 1916 to 1914 the number of failures is approximately the same, but the total liabilities of 1916 is only a little more than half that of 1914. State officers who have charge of issuing licenses for automobiles in this district have furnished figures from which a comparison of the number of licensed automobiles in opera- 238 tion April 1 for 1914, 1915, and 1916 has been compiled. From these figures it appears that the number of automobiles in operation on April 1 has more than doubled in the two years from April 1, 1914, to April 1, 1916, and this would seem to indicate prosperity in this and allied industries. From reports it would seem that agricultural conditions are in the main favorable. Cotton planting in the southern parts of the district has been somewhat retarded by the late spring and the wheat crop in the central portions of the district has been damaged to a considerable extent. Winter wheat acreage in this district has been reported to be smaller than in 1915 or 1914 and estimates of condition as of April 1 confirm previous reports of damage to this crop. Condition of wheat Apr. 1. 1916 Arkansas... Illinois Indiana Kentucky.. Mississippi. Missouri Tennessee.. I 10-year average. 1915 Dec. 1, 1915. 90 This report shows what appears to be serious damage to the wheat in the large wheat-producing States of this district. Estimates of final production based on reports of condition at this time must not, however, be considered as necessarily conclusive. The cotton acreage in the southern parts of this district is larger than last year and the favorable conditions should produce correspondingly large crops. Merchants, however, are making an earnest effort to persuade southern planters to continue the diversification of crops or to plant at least enough foodstuffs and grain to supply the needs of their respective communities. Reports from the Arkansas strawberry district are favorable. It is expected that the crop will move to market the latter part of April or early in May. A report from strawberry producers in Kentucky reads as MAY 1,1916. FEDEBAL BESEBVE BULLETIN. follows: "This year bids fair to be the largest of any we have yet had." The egg market in St. Louis is active. Current prices are approximately 19J^ cents as compared to 18J^ cents a year ago. Stocks in storage were of course exhausted in March, and while the supply of eggs is normal for this season of the year, the demand for storage purposes seems to have resulted in the increase in price. The somewhat late spring has retarded the production of truck-farm products. Homegrown fresh vegetables are just beginning to appear on the market. There has been little change in banking conditions since the last report. Indications are, however, that excess reserves are not as large as they were 30 days ago, and this should in course of time have its effect on rates for discount. There was a tendency noted a month ago for higher rates, but it can not be said that they have gone up in any marked degree. Commercial paper is still quoted at 3 to 3^ per cent and the rate for commercial loans in the large cities is still approximately 4J per cent. The bond market does not seem to be as active as it was a month or six weeks ago. It seems probable that anxiety due to possible complications with foreign Governments may have its effect on the market in general. Below is a statement of the clearings of the principal centers in this district for March, 1916, compared to March, 1915, and for the first quarter of 1916 as compared to the first quarter of 1915, with the percentage of increase or decrease for each city. The increases are substantial in every case except one and this is so slight &s to be of no significance. March clearings. 1916 1915 Per cent increase or decrease. Evansville.. Paducah.. St. L o u i s . . . Louisville.. Memphis... Little Rock. $8,350,877 3,524,562 407,980,696 80,314,341 33,610,798 11,104,781 $5,255,606 2,238,997 336,424,843 54,112,850 34,410,605 9,155,897 58.9 8.8 21.3 48.4 - 2.3 21.3 Total. 544,886,055 442,598,798 23.1 1, 1916. FEDERAL BESEEVE BTJLEETIlSr. Cleanmgs forfirst quarter^-January, February, and March. 1916 Evansville .. Paduean... St. L o u i s . . . . . . . . . . . . . Louisville. MempMs.... LittleBoek Total 1915 Per cent increase or decrease. $23,801,346 11,247,137 1,194,236,437 245,131,432 107,673,968 31,993,786 $14,731,482 10,176,855 988,433,173 165,522,152 99,917,427 27,527,823 61.6 10.5 20.8 48.1 7.8 16.2 1,614,084,106 1,306,308,912 23.5 In March, 1916, this bank cleared 204,922 items, or a total of $90,667,565.72, the largest clearings both in number of items and amount cleared of any month since the bank has been in operation, and shows a really important gain as compared to the figures of March, 1915, which were: Number of items, 154,630; total amount, $51,190,674.05. DISTRICT NO 9—MINNEAPOLIS. Interest is centered upon early spring conditions to the exclusion of practically all other developments in business. It is conceded that the grain territory, which embraces two-thirds of this district, will show a reduction in wheat acreage for 1916, at present estimated at 10 per cent, due to the shortage of fall plowing last year and the lateness of the season this year. Planting will be two weeks late, but this is not regarded as serious a disadvantage as the fact that the lateness of the season is cutting down the amount of spring plowing that would otherwise have been done. Seeding is general in central South Dakota and southern Minnesota, and is in progress at other points. With favorable weather a good crop is looked for, even if planting is not completed over the territory as a whole before the first week in May. It is pointed out that while the seed was in the ground by mid-April last year, the planting was followed by many weeks of cold, raw weather, and that the seed was slow in germinating, and the crop made no substantial progress until toward June 1. Damage has been done to winter wheat in Montana, and a proportion of the acreage is 239 being reseeded with marquis wheat. Over the district as a whole a considerable amount of wheat will be disked in on the stubble, and such planting will require favorable weather to produce the best yield. Farmers are rushing their spring operations as fast as the fields dry up sufficiently to permit spring work, and have been buying the light type of tractors freely in an effort to increase the amount of spring plowing, and overcome the handicap of. shortage of fall work last year and the late season. Moisture conditions over the district are excellent. Floods have done some damage in isolated localities and will hurt spring operations on a considerable amount of low land. Moisture in the ground, however, is sufficient to give the crop a good start. The wholesale and retail trade are both prosperous. Wholesale trade is showing an increased volume of business over a year ago, in the face of advancing prices and some difficulty in obtaining deliveries from eastern manufacturers. Collections have been active. Trade at local points is brisk, and is improving as the roads dry up. Industrial conditions are excellent over the entire district. Labor is fully employed at good wages, and the production of all manufacturing concerns, if maintained, will create new records for 1916. The iron mines of northern Minnesota will produce heavily, and advance estimates are that 40,000,000 tons of ore will be shipped down the Lakes during the season. This will be considerably in excess of previous years. Similar conditions prevail in the copper districts of northern Michigan, the iron districts, and the copper districts of Montana. Construction is responding to the favorable conditions in business, and a very large amount of building is in progress. DISTRICT NO. 10—KANSAS CITY. During the past month this district has experienced an unusual variety of weather conditions. Central Kansas reports not only a maximum temperature as high as the pre- 240 FEDERAL RESERVE BULLETIN. vious record, but one degree lower than recorded during the past 28 years. The spring opened early, but there was a serious retarding of activity by reason of a general snowfall and freezing temperature which, however, was of short duration and little resultant damage. While precipitation has been below normal over the entire district, crop conditions have seldom been better at this season of the year. .The faE wheat has passed through the winter in good condition and is beginning to make rapid growth. Prospects are favorable for an unusually large corn acreage. In the western portion of the district the season is about 10 days later than last year. The car shortage has been somewhat relieved by the daily receipt of cars formerly tied up on eastern lines. Railroad earnings show material improvement. There are no labor disturbances of importance in thi district. Increased business in all lines and the generally prosperous condition of the district gives every indication of increased real-estate activity and an unusual amount of immigration, The prices of cattle, hogs, and sheep continue satisfactory. The excellent prices being maintained on hogs is especially interesting, since the hog has been called the "mortgage lifter." Price records continue to be broken at all the stock markets of the district. Stock hogs can now be shipped from Kansas City stockyards to the Kansas farms, an order to that effect having just been issued by the State sanitary live-stock commissioners. For years the only shipments allowed out of this hog market were to other stockyards for immediate slaughter, because of the danger of the spreading of cholera which has now been practically eliminated by the system of inoculation. Oil production and drilling continues on an extensive scale, with prices commonly quoted at $1.55, base. There are more than 1,700 welldrilling rigs up in the Kansas-Oklahoma district. New fields are being opened up in nearly every State in the district and develop- MAY 1, 1916. ment operations are believed to have reached their greatest height. There were 1,200 wells completed last month. The deliveries of the Mid-Continent field by all pipe-line companies in January have been given out as 8,376,000 barrels. The general decline in the oil production in the eastern fields has greatly increased the demand for production from this field. There appears to be no cessation in the volume of business being handled by wholesalers and retailers. Practically without exception shops and factories are working to full capacity and much overtime work is in effect. Business is somewhat hampered by the scarcity of raw materials and of skilled laborers. Collections are reported unusually good. Spring trade in agricultural implements is unusually large. Dry goods sales have exceeded all former records by a large margin. In footwear business is averaging 50 per cent better than last year, and millinery shops report a flourishing business. The lumber and timber business has shown a healthy vitality during the first quarter, which has made both business and collections much better than in the corresponding period in 1915. The highest price paid for silver since 1912 is aiding the industry and is a notable development of an abnormal financial situation. The increasing price of this metal is reopening old mines. With tungsten selling at $90 a unit, Colorado has a mining fever like the days of Creede and Cripple Creek strikes. Smelter bins are practically clear of surplus blende and lead ore in the Missouri-KansasOklahoma district. Lead ore has gone to a record level, $102.50 being paid by some companies for choice ores. Pig lead has reached $8, the highest point on record, while fine zinc blende sells for $120 a ton. The production continues large in this district and has seldom been surpassed in its history. Heavy rains in Oklahoma have made it impossible for many of the newer plants to load their ore, but all mills are running to capacity. Indications are for a broadening demand for money. However, the usual spring demand MAY 1, 1916. FEDERAL RESERVE BULLETIN. for funds has not made itself felt. Neither do commercial-paper offerings show any material increase. Omaha bank clearings have registered a gain every week so far this year, while banks in Oklahoma City, made in March a new high record. The total clearings exceeded the aggregate for March-, 1915, by about 40 per cent, and similar increases are commonly reported from all parts of the district. DISTRICT NO. 11—DALLAS. Rains over most of the district have revived business, which up to one month ago was inclined to be sluggish on account of the drouth which had prevailed since early February over practically this entire section. The rains were especially heavy in central and north Texas and southern Oklahoma, and as a result the crop outlook has been materially changed. If weather conditions now continue favorable up to midsummer the 1916 crop, especially in Texas, will not be lessened in yield or value. Most of the acreage on which the grain was killed by the cold weather of the late winter has now been replanted in oats or corn. The early potato crop is now being marketed at good prices. It is estimated the crop comprises about 20,000 acres, which is a material increase over last year. The freeze of April 8 does not seem to have materially damaged the fruit and berry crop. Young garden vegetables were injured. The tomato plants were still in cold frames and no serious injury is reported. Reports from the largest fruit and truck growing fields in the district are very encouraging. A large crop of strawberries is now being marketed, and prices are very satisfactory. Unfavorable reports come from the southwestern part of the district, which did not have the benefit of the fine rains over the northern portion. No rain has fallen in the extreme southwest for over three months, and stock water is becoming very scarce. Some cattle are dying, and unless rains soon come conditions will be quite serious. 241 The onion crop from the Laredo section was below the normal yield, owing to the ravages of the thrip in the growing sections. The total yield this season is estimated at 1,800 cars, as against 2,600 cars last year. Prices obtaining have been only fair, and the average has been around $400 per car. Cotton is about all marketed. There are a few scattering lots over the district, but it is as a rule of such quality that buying has practically ceased. Conditions at this time, on account of the rains, are more favorable for a reduction in acreage than a month ago, but that there will be a considerable increase there is no doubt. The agitation of better warehouses and the gradual marketing of the crop it is thought will have a good effect; in fact, much good has already resulted from this movement, and the campaign now being carried on will be reflected in the handling of the 1916 crop. Demand with banks is getting rather active as the season advances, and another 30 days should develop the seasonal requirements. There is no indication of any contraction, and rates remain unchanged. Offerings with this bank are coming in strong, and our loans and discounts show an increase of some $250,000 over a month ago. Of the paper being offered probably 75 per cent consists of that of cattlemen and farmers. Member banks are in good condition to meet their customers1 needs. Unless conditions materially change there should be no occasion for outside assistance other than in normal years. With the assistance of this bank the requirements of the district should be taken care of without inconvenience. Building operations show a healthy improvement, which is reflected in the demand for material. Lumber is very active, at good prices; mills continue to run on full time. The cement industry is likewise enjoying a good business, and shipments over the district indicate a continuance of this condition. Local factories report their mills running continuously and a ready demand for their output. Reports from the oil fields indicate that 80 per cent more work is being done than a year 242 FEDERAL RESERVE BULLETIN. ago, with prices of $1.55 to $1,75 per barrel, as against 45 cents a barrel last year. Old fields are being extended, and 80 per cent more laborers are employed in tills industry than in 1-915. A heavy snow in the western part of the district the early part of this month put the ground in excellent condition. This will bring up early grass, and the condition^ of the cattle industry is quite satisfactory. Cattle wintered well. Wholesale grocers report a substantial improvement in business over 1915, with collections good. A 40 per cent increase in orders is reported by the large mail-order houses, with uniform demand for all classes of goods. An increase in freight traffic is reported by the railroads, amounting to approximately 10 per cent. A serious car shortage is reported, on account of congestion in equipment in the North. This has resulted in the railroads doubling their charge for demurrage. Passenger traffic shows a slight increase over 1915. Business with retailers is reported as good for this season, and spring trade is active. Collections are fair. A comparative statement of the exports from the port of Galveston for the month of March, 1915 and 1916, proves interesting. The value of the exports for March, 1916, was $13,363,000, which is a decrease over 1915. This is explained largely by the decrease in shipments of cotton and cottonseed products, the value of which commodities alone amounted to some $17,000,000 in March, 1915. These commodities are consigned principally to France, Germany, Italy, Spain, Sweden, and England. Quite a substantial increase in exports of rice, hay, and spelter is shown over 1915, shipments of the latter commodity alone amounting to 6,670,000 pounds and valued at $1,268,000. Labor seems to be well employed throughout this district. There is an especially active demand for workers in the agricultural sections. MAY 1,1916. DISTRICT NO. 12—SAN FRANCISCO. The West Coast Lumbermen's Association, composed of a majority of mills operating in Washington and Oregon, reports March orders 34 per cent and shipments 30 per cent over production, mostly for domestic use, exports being restricted by lack of ships. There is general activity, and prices are up $3 to $5 per thousand. Acute shortage has caused unparalleled activity in shipbuilding. Seattle reports contracts aggregating $11,000,000, nearly four times the total at this time last year. The principal builder at San Francisco is said to have contracts in excess of $20,000,000, with no diminution of demand even with important advances in price because of increased prices for material and labor. Despite dearth of bottoms, Seattle reports for January and February of this year, as compared with same months last year, imports $35,693,042, increase $21,172,927; exports $15,885,204, increase $4,73.2,108. San Francisco reports for same period imports $21,198,558, increase $8, 857,186; exports $15,735,910, decrease $57,906. Although the Panama Canal opened April 15, few ships are scheduled for immediate service between the Atlantic and- Pacific coasts, both because now otherwise engaged and because extraordinary charter rates for exports influence strongly to that service as against coastwise service. The Pacific Mail Steamship Co. has announced three steamers of moderate size for San Francisco and China service. California petroleum production averaged in March 242,656 barrels per day as against 223,495 in February. Daily shipments from fields were 276,378 and 258,264 for the respective months, reducing the amount in storage 1,045,388 barrels, approximately 6,000,000 barrels reduction since May, 1915. Eastern dealers are reported as insistent buyers of all available MAY 1, 1916, FEDERAL RESERVE BULLETIN gasoline and distillate on this coast. Activity in drilling, greater than at any time for half p, dozen years, is reported chiefly in the proven oil land of the State, which aggregates 80,702 acres. In March 34 new wells were brought in with an initial daily production of 6,790 barrels. Extraordinary output and 'unusual prices give copper precedence in metal mining, but there is also great activity in mining gold, silver, lead, zinc, and other less well known metals such as tungsten, antimony, magnesite, and molybdenite, valuable deposits of which are reported as being discovered. Agricultural prospects are generally favorable, with especial benefit assured for many crops from unusual precipitation during the rainy months. Grain acreage will be less than last year both because of necessity for summer fallowing and because of unfavorable weather during seeding time. Considerable stocks of both wheat and barley are still on hand, more than at the corresponding time in either of the two preceding years. The 1915 rice crop in California is reported as 80,000,000 pounds, with 250,000,000 pounds estimated for 1916. From Calexico, Cal.,. in the Imperial Vajjley, comes the report that cotton acreage on the American side will be increased from 12,000 acres last year to 40,000 this year; on the Mexican side from 30,000 acres last year to 65,000 acres this year. Yuma, Ariz., reports 4,000 acres in cotton this year, and a normal production of 2j bales per acre. Cotton seed is said to be used extensively for fattening cattle. Alfalfa cutting began early in April. This crop and good pasture, because of much 243 precipitation, contribute especial advantage because of high prices for all live stock. Prunes and apricots in certain sections have been reported damaged by frost. It is too early, however, to predict with certainty regarding these crops. Efforts* are making for better organization in marketing fresh and dried fruits, which should result in increased returns to growers. Dried-fruit shipments from California in 1915 aggregated $36,924,000, an increase of $8,056,000 over 1914. Navel oranges bring much better prices than last year, and prospects for Valencias, which ripen about midsummer, are reported excellent. Lemons are yielding fair prices. Raisin crop, 35 per cent over 1914, aggregated 124,000 tons, valued at $10,000,000. Acreage of Thompson seedless raisins is increasing. Nine thousand five hundred and sixty-four cars of table grapes were shipped out of California in 1915, and 1,000 carloads consumed in the State, yielding growers $9,514,000. Sweet-wine production for 1915 in California was 4,000,000 gallons, against 16,600,000 in 1914, dry-wine production declining from 25,000,000 gallons to 21,000,000. Heavy shipments of vegetables are now going forward. Oanners are busy with asparagus, of which about 1,000 carloads will be packed. Merchants generally report good distribution and good collections. Bank clearings for March in 18 cities of this district increased 19 per cent over March, 1915; building permits 11 percent. Credit conditions are easy. The situation as a whole in this district is favorable. There seems prospect of large production and important increase in wealth during the current year. 244 FEDERAL RESERVE BULLETIN. MAY 1, 1916. DISTRIBUTION OF DISCOUNTS BY SIZES February and 6,342 in January of the present year. The average size of the paper disAND MATURITIES. The total discounts of commercial paper made by the Federal Reserve Banks during the month of March, 1916, were $9,387,300, or 22.5 per cent in excess of the total for the preceding month, though over 30 per cent below the discounts in March, 1915. About 68 per cent of the month's discounts, as compared with 79 per cent in February, is credited to the three southern banks, Kansas City and Chicago together reporting an additional 15 per cent of the total discounts for the month. The aggregate discounts the first quarter of the year were $28,166,800, compared with $36,642,800 for the corresponding quarter in 1915. It is notable that whereas the discounts for the quarter of 30-and 60-day paper show large decreases as compared with corresponding 1915 figures, the amounts of 90-day, and especially 6-month paper discounted during the present year are larger than for the first quarter of the past year. Commodity paper, mostly secured by cotton, was discounted by 5 banks and totaled $1,718,987, constituting 18.3 per eent of the total discounts for the month, compared with 23.4 per cent for February and 16.8 per cent for January of the present year. Over 96 per cent of this class of paper was handled by the Richmond and Atlanta banks, of whose total discounts for the month commodity paper constituted about 25 and 50 per cent, respectively. Trade acceptances discounted during the month by 7 banks aggregated $298,733, of which nearly one-half is reported by the Richmond bank. This total is exclusive of $514,677 of trade acceptances, based upon foreign-commerce transactions, and purchased during the month by the 3 banks on the Eastern Seaboard and the San Francisco bank; also of $9,695 of domestic-trade acceptances bought in the open market during the month by the Atlanta Federal Reserve Bank. The total number of bills discounted during the month was 6,209, compared with 5,086 in counted during the month was about $1,512, compared with $1,507 for the preceding month, $1,753 for January, 1916, and about $1,800 for the last quarter in 1915. This average varies between about $2,570 for the Boston district (where, however, the total number of bills discounted during the month was only 83), $1,952 for the Atlanta-New Orleans district, and $815 for the Philadelphia district. Over one-third of the number and 53 per cent of the entire amount of the paper discounted during the month was medium-sized paper in denominations of $1,000 to $5,000. Small bills (in amounts up to $250) represent over 20 per cent of the total number, though less than 2 per cent of the aggregate amount of paper discounted during the month. Of the total number of such bills, 1,259, about 30 per cent was handled by Richmond, about 22 per cent by Atlanta, over 15 per cent by Kansas City, and less than 14 per cent by Dallas. About one-half of 1 per cent of the paper discounted during March was 10-day paper; 12.3 per cent 30-day; 33.9 per cent 60-day; and 40.5 per cent 90-day paper. About 1.2 millions, or 12.8 per cent of the total discounts for the month, was' agricultural and live-stock paper, maturing after 90 days at the time of rediscount. Over 75 per cent of this class of paper was handled by the Dallas, Kansas City, and Chicago banks. Of the 7,639 member banks reported at the close of the month 535, or about 7 per cent, were accommodated during the month through the discount of paper, as against 451 in February, 1916, and 570 in March of the past year. Richmond reports the largest number of banks accommodated during the month, 116, or about 23 per cent of the entire number of member banks in the reserve district. Member banks in Texas to the number of 83 secured about 1.3 millions of rediscounts, 43 banks in South Carolina over 1.2 millions, 29 banks in • MAY !, 1916. 245 FEDERAL EESEBVE BULLETIN. North. Carolina over 1 million, 34 banks in these five States is about 55 per cent of the Georgia over 0.9 million, and 30 banks in total discounts reported to the Board for the Virginia over 0.6 million. The combined month. share of rediscounts secured by 219 banks in Commercial paper, exclusive of bankers1 ^acceptances, discounted^ by each of the Federal Reserve Banks during the month of March, 1916, distributed by sizes. NUMBER OF PIECES AND AMOUNTS. [In thousands of dollars.] $100 Over $250 To $100. Over to 1250. to $500. Over $1,000 Over $2,500 Over $5,000 Over to $2,500. to $5,000. to $10,000. $10,000. Over $500 to $1,000. Total. Per cent. Banks, Boston New York Philadelphia Cleveland Eichmond Atlanta (including New Orleans branch). Chicago .. St. L o u i s . . . . Minneapolis Kansas City Dallas San Francisco Total... 20 3.8 41 7.8 65 11.2 11 1.8 51.4 25 16 16 131 137 24.7 5.2 3.0 2.3 22,7 23.0 1.9 19.2 28.2 5.8 453181.6 43 32.1 47 37. 18 12.7 476 386.3 15 28.8 50 83.4 47 79.0 52 98.8 460 797.7 142 87 28 21 188 144 14 130 103.4 120 93.6 38 27.5 36 25.2 190 134.8 202 149.4 33 22.8 157 163 48 39 154 196 47 55.7 34.9 11.6 8.0 69.5 56.4 5.4 262.3 276.8 81.6 56.9 240.8 314.7 81.8 373.3 166.1 18 71.0 53.3 13.4 19.6 499.7 1.3 2.3 4.0 3.2 4.2 2.3 2.1 2.9 25.0 232.2 2,116 3,240.9 34.1 34.5 390.9 41.3 42.7 6.0 117.9 239.7 26.9 484.7 25.2 38.1 18 326.3 30.2 247 260 213.3 304.6 212.0 8731,704,1 14.1 18.1 447; 618.0 7.2 6.6 157 234.1 2.5 2,5 117 111.4 1.9 1.2 794 795.9 12.8 8.5 8581,445.5 13.8 15.4 124 238.7 2.0 2.5 35728.0 902 157.5 1,224 478.21,3411,032.5 1,428 2,402.6 673 2.604.4 2181,522.4| 66U61.7 6,209 9,387.3100.0100.0 P E E C E N T A G E S OF AMOUNTS OF EACH CLASS TO TOTAL. Bank. Boston . . . New York Philadelphia Cleveland Eichrnond Atlanta (including New Orleans branch) Chicago . St. Louis Minneapolis. KansasCity . . . . . Dallas San Francisco Total Over $100 to $250. Over $250 to $500. 0.2 .5 .6 .1 .2 1.8 2.6 5.3 .7 1.6 0.9 6.3 13.3 2.2 5.6 3.2 10.5 17.9 4.7 11.9 13.5 27.4 37.2 36.7 24.6 47.1 26.9 19.4 39.0 33.5 33.3 17.5 6.3 7.3 15.4 .5 .6 .2 .1 1.5 .8 1.3 2.0 2.9 1.6 .2 3.3 5.7 5.0 7.2 8.7 3.9 2.3 6.1' 15.1 11.7 22.6 16.9 10.3 9.5 15.4 44.8 34.9 51.1 30.3 21.7 34.3 21.9 26.9 28.9 11.7 21.0 23.1 29.6 22.9 6.7 18.2 5.4 14.8 16.6 11.3 4.8 22.6 12.7 100.0 100.0 100.0 100.0 100.0 100.0 100.0 .3 1.7 5.1 11.0 25.6 27.7 16.2 12.4 100.0 To $100. Over $500 Over $1,000 Over $2,500 Over $5,000 to $1,000. to $2,500. to $5,000. to $10,000. • Over $10,000. 8.3 9.3 7.2 28.4 Total. 100.0 100.0 100.0 100.0 100.0 246 MAY 1,1916. FEDERAL RESERVE BULLETIN. Commercial paper, exclusive of bankers' acceptances, discounted during January by each of the Federal Reserve distributed by States and maturities as of date of discount. [In thousands of dollars.] Number Number of banks of member accommobanks. dated. Districts and States. District No. 1—Boston: Connecticut Maine Massachusetts i.. New Hampshire Rhode Island Vermont.. .. Total ... District No. 2—New York: New Jersey . New York. Connecticut. i... ^ Total . District No. 3—Philadelphia: Delaware. New Jersey.... ^.... .-. : Total District No. 4—Cleveland: Kentucky..... Ohio. Pennsylvania West Virginia . ......... . Total . . . District No. 5—Richmond: District of Columbia Maryland ... North Carolina South Carolina Virginia West Virginia . . . Total Dsitrict No. 6.—Atlanta: Alabama Florida Georgia Louisiana Mississippi Tennessee . .. Total District No. 7.—Chicago: Illinois......... Indiana Iowa Michigan Wisconsin -. ...... Total District No. 8.—St. Louis: Arkansas Illinois Indiana Kentucky Mississippi Missouri Tennessee Total District No. 9.—Minneapolis: Michigan.. Minnesota Montana. North Dakota South Dakota.. Wisconsin : Total . Paper maturing within 10 days. Paper maturing after 60 days but within 90 days. Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. 6.0 120.0 1.0 2.0 4.8 7.0 10.1 Banks, Paper Total maturing commerafter 90 cial paper days. discounted. 72 70 168 56 17 48 2 2 2 3 36.0 8.4 18.0 62.4 431 9 163.0 17.4 32.9 213.3 132 482 15 2 12 6.1 5.0 5.5 5.2 107.2 11.0 164.1 0.5 21.2 283.4 629 14 6.1 10.5 112.4 175.1 .5 304.6 24 70 533 1 4 8 23.2 85.7 2.0 6.5 27.4 10.3 25.5 26.9 4.5 6.5 161.8 43.7 627 13 23.2 87.7. 44.2 52.4 4.5 212.0 72 375 299 14 2 7 3 1 2.1 65.7 1.9 3.9 132.9 4.9 10.6 1.3 26.3 12.5 6.7 5.2 233.7 19.3 10.6 760 13 2.1 67.6 152.3 40.1 6.7 268.8 14 97 79 76 138 104 1 9 29 43 30 4 .3 5.2 146.3 136.5 70.7 3.3 72.8 357.0 460.1 232.2 9.5 79.2 106.1 514.2 620.6 327.8 17.6. 2.4 12.7 38.1 .21.4 79.2 186.5 1,037.1 1,255.3 652.1 30.7 508 116 7.2 362.0 1,131.6 1,665.5 74.6 3,240.9 94 55 112 5 18 95 20 12 34. 2 0 12 .9 1.0 13.5 38.2 67.2 38.4 88.0 77.0 417.9 170.0 242.1 27.5 386.7 2.7 32.3 343.6 146.3 905.1 208.4 14.6 24.6 55.7 5.8 100. 7 379 80 1.9 171.9 777.5 712.0 40.8 1,704.1 317 196 349 77 51 16 9 28 1 2 1.0 24.5 11.0 11.9 61.8 25.1 49.0 48.2 36.0 126.4 2.0 79.0 39.7 89.5 2.5 2.5 6.2 3.7 211.5 112.8 276.8 2.5 14.4 990 56 1.0 49.4 213.2 142.1 212.3 618.0 65 157 61 68 18 81 20 5 9 2 1 3 7 3 4.2 .8 9.8 22.3 15.0 23.0 27.4 2.3 9.6 12.7 .5 7.3 2.0 10.3 .2 22.0 5.5 2.0 26.2 10.8 .9 18.8 .5 23.8 57.8 6.0 17.0 56.5 59.0 14.0 470 30 24.6 67.6 99.8 42.1 234.1 31 280 68 154 120 88 0 7 0 2 8 1 .7 8.2 4.9 23.9 40.7 .9 12.5 5.2 38.3 .8 6.1 62.9 1.7 741 18 18.3 71.2 111.4 6.9 12.1 .9 .7 21.2 12.8 120.0 18.1 MAY 1, 1916. 247 FEDERAL RESERVE BULLETIN. Commercial paper, exclusive q/* banker's\ acceptances, discounted during January byeach of the Federal Reserve distributed by States and maturities as of date of discount—Continued. Banks, [In thousands of dollars.] Number Number of banks of member accommobanks. dated. Districts and States. District No. 10—Kansas City: Colorado Kansas Missouri Nebraska New Mexico . Oklahoma Wyoming . . . . Total District No. il—Dallas: Arizona... Louisiana New Mexico Oklahoma Texas . . . . Total District No. 12—San Francisco: Alaska . Arizona. California. Idaho ... Nevada Oregon. . Utah Washington . . Total Paper maturing within 10 days. Paper maturing after 10 davs but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing Paper after 60 maturing days but after 90 within 90 < days. days. 30.8 17.7 .1 2.0 51.0 14.8 48.0 6.6 25.5 3.6 105.4 11.2 54.9 30.5 20.9 59 94.7 114.4 20.9 16.1 9.0 107.8 56.8 239.1 58.1 64.5 18.5 358.9 101,6 203.9. 218.1 268.2 795.9 .5 6.3 3.7 1.5 5.9 7.4 519. 4 20.0 33.4 14.0 375.6 35.3 10 7 47.6 40.3 1,311.6 Total commercial paper discounted. 120 220 53 202 9 306 33 2 21 5 0 1 31 943 69 6 25 28 36 539 1 1 4 5 83 4.6 66.3 11.1 2.9 8.3 14.3 350.3 634 94 77.7 386.9 537.9 443.0 1,445.5 18 1 39.8 45.4 79.6 1.3 35.1 1.7 199.9 3.0 3.1 30.4 2.3 35.8 39.8 48.5 111.3 39.1 238.7 Paper maturing after 10 days, but within 30 days. Paper maturing after 30 days, but within 60 days. Paper maturing after 60 days, but within 90 days. Paper maturing after 90 days. Total commercial paper discounted. 163.0 10.5 87.7 67.6 362.0 171.9 49.4 24.6 .7 101.6 77.7 39.8 17.4 112.4 44.2 152.3 1,131.6 777.5 213.2 67.6 21.2 203.9 386.9 48.5 32.9 175.1 52.4 40.1 1,665.5 712.0 142.1 99.8 18.3 218.1 537.9 111.3 0.5 4.5 6.7 74.6 40.8 212.3 42.1 71.2 268.2 443.0 39.1 213.3 304. 6 212.0 268.8 3,240.9 1,704.1 618.0 234.1 111.4 795.9 1,445.5 238.7 2.3 3.2 2.3 2.9 34.5 18.1 6.6 2.5 1.2 8.5 15.4 2.5 1,156.5 12.3 3,176.7 33.9 3,805.5 40.5 1,203.0 12.8 9,387.3 100.0 100.0 1,040.3 64.0 1,855.4 263.3 4,052.2 372.9 8,865.4 2,558.4 3,350.2 9,094.3 14,306.1 2,995.8 4,121.6 10,922.9 10,793.9 1,006.1 1,515.4 3,724.5 2,677.4 7,664,6 11,114.9 28,166.8 36,642.8 1 7 266 58 10 84 23 78 527 , 4.1 4.1 4 23 RECAPITULATION. [In thousands of dollars.] Districts and cities. No. 1—Boston No. 2—New York . No. 3—Philadelphia. No. 4—Cleveland. . No 5—Richmond No. 6—Atlanta No. 7—Chicago No. 8—St. Louis No. 9—Minneapolis. No. 10—Kansas City.... No. 11—Dallas No. 12—San Francisco Total for March Per cent Total for February, 1916 Total for January, 1916 Total for Jan.-Mar., 1916... Total for Jan.-Mar., 1915 of Number of Number banks acmember commobanks. dated. 431 629 627 760 508 379 990 470 741 943 634 527 9 14 13 13 116 80 56 30 18 69 94 23 7,639 535 7.0 i 7,643 7,649 451 614 Paper maturing within 10 days. 6.i 23.2 2.1 7.2 1.9 1.0 4.1 45.6 .5 i Corrected figures. Percent. 248 FEDERAL RESERVE BULLETIN. MAY 1,1916. Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, date of first discount, to Dec. SI, 1915, and for the months of January, February, and March, 1916. Total to Dec. 31, • 1915. Federal Reserve Bank. Cleveland Richmond Atlanta (including New Orleans branch) Chicago.. St. Louis EZansas City . . . . Dallas.. •. San Francisco . . . $5,700 4,900 450,500 1,007,100 -. - . . . 167,800 87,800 160,800 74,200 $137,300 202,000 8,200 32,600 47,300 11,700 5,300 1,958,800 444,400 . Total 1 January, 1916. February, k1916. March, 1916. $5,594 49,572 144,934 53,972 $700 135,800 95,500 3,500 $5,594 50,272 418,034 351,472 8,200 69,254 49,611 31,496 5,300 33,154 2,311 9,196 10,600 246,100 Total January, February, March. 1916. 1 989,233 298,733 Included in total of commercial paper shown above. Commodity paper discounted by each Federal Reserve Bank from Sept. 8, date of first discount, to Dec. SI, 1915, and for the months of January, February, and March, 1916. Total to Dec. 31, 1915. Federal Reserve Bank. January, 1916. February, 1916. $2,881,400 $1,010,600 $1,092,200 7,032'300 745,800 622,700 99,800 1,300 25,300 9,100 81,900 239,100 57,600 24,000 13,100 37,200 Richmond Atlanta (including New Orleans branch). St. Louis . Minneapolis Dallas........: San Francisco Total. 10,315,100 1 1,863,600 March, 1916. Total January, February, March, 1916. $802,500 853,800 $2,905,300 2,222,300 900 55,000 6,800 11,300 194,500 43,900 1,794,700 11,719,000 5,377,300 Included in total of commercial paper shown above. Commodity paper discounted by each Federal Reserve Bank during January, February, and March, 1916, distributed by Atlanta Richmond. (including New Orleans). Class. Cotton Peanuts. Wheat. Maize Flax Hops Hav . Beans Miscellaneous - - — . . . $2,865,333 \m 37,414 Minneapolis. $2,218,445 900 1 021 M .. Total Dallas. I $187,576 $9,735 1,605 2,500 2,905,247 2,222,286 11,340 $256 24,003 43,870 5,377,263 19,611 194,520 Total. $5,271,610 38,314 9,735 7,965 1,605 19,611 400 480 27,543 >w& 6 944 '« %> 4 0 0 480 1,040 San Francisco. Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on Mar. 31, 1916, distributed by maturities. Federal Reserve Bank. Paper maturing within 10 days. Paper maturing after 10 days but within 30 days. Paper maturing after 30 days but within 60 days. Paper maturing after 60 days but within 90 days. Boston New York Philadelphia Cleveland Richmond Atlanta (including New Orleans branch) Chicago St. Louis.. Minneapolis — Kansas City Dallas San Francisco $43,100 42,000 75,400 62,600 1,131,900 673,900 188,800 87,400 102,300 234,800 542,000 59,600 $113,000 79,300 84,300 101,300 1,515,700 1,012,900 337,100 181,400 116,400 545,200 713,300 120,700 $12,600 176,800 76,400 145,100 2,281,600 1,660,900 531,100 156,200 270,400 477,400 1,559,600 104,500 $28,600 98,100 25,300 15,800 1,133,700 541,200 322,500 111,200 156,000 350,900 769,700 133,400 Total Per cent 3,243,800 15.3 4,920,600 23.1 7,452,600 35.1 3,686,400 17.3 Paper maturing after 90 days. Total. Per cent. $197,300 396,700 265,900 338,200 6,165,000 3,963,100 1,645,600 601,200 765,500 1,961,000 4,478,500 492,400 0.9 1.9 1.3 1.6 29.0 18.6 7.7 2.8 3.6 9.2 21.1 2.3 1,965,000 21,268,400 9.2 100.0 100.0 $500 4,500 11,400 102,100 74,200 266,100 65,000 120,400 352,700 893,900 74,200 MAT 1, 1916. 249 FEDERAL KESEKVE BULLETIN. ACCEPTANCES. Acceptances held by Federal Reserve Banks as per schedules on file on dates specified.—Total bankers1 acceptances by classes. [In thousands of dollars.] Nonmember bsinks. Date. Feb. 22 Apr. 5 May3 June 7 July3 Aug. 2 Sept. 6 Oct. 4 Nov. 1 Dec. 6 Jan. .3 Jan. 10 Jan. 17 Member banks. Nonmember banks. 1916, , 1916. 93 Jan.24 11,593 J a n . 3 1 . . . 13,347 F e b . 7 9,960 Feb. 14 9 770 Feb.21 11,129 Feb. 28 12,'884 Mar. 6 14,373 Mar. 13 13,265 Mar. 20.' 18,154 Mar. 2 7 . . Apr. 3 Apr. 1 0 . . . . . . . . 23,838 Apr.17 25,857 Apr. 24 25,998 16,348 15,834 15,681 17,581 .17,661 17,436 17,182 20,323 20,563 21,128 21,000 22,239 22,135 23,566 Total. Trust State Private compa- banks. banks. nies. 1915, 93 Date. Member banks. 3,653 5,038 5,242 4,342 5,350 6,087 9,000 8,477 12,311 7,820 8,189 4,516 5,267 5,407 6,305 4,898 4,331 5,172 20 20 132 253 275 110 110 192 161 352 472 343 204 396 15,494 16,492 16,908 7,160 8,057 7,655 362 370 425 1,010 10 10 10 822 938 Total. Trust State Private compa- banks. banks. nies. -8,070 8,174 7,876 7,985 8,194 8, 755 8,670 10,032 11,280 12,864 13,573 14,864 15,028 15,196 363 356 336 347 392 408 408 470 408 411 473 476 564 584 1,441 26,222 25,874 1,510 25,349 1,456 27, 764 1,851 28,088 1,841 28,440 1,841 28,041 1,781 32,456 1,631 ,2,467 34,718 .37,481 3,078 38,308 3,262 40,984 3,405 41,169 3,442 142.850 3,504 i Acceptances indorsed by member banks: State banks, $9,000; private banks, $1,993,000; total, 82,002,000. Amounts of acceptances held by the several Federal Reserve Banks at close of business on Fridays. Mar. 24 to Apr. 21, 1916. [In thousands of dollars.] Acceptances maturing—- Within 10 days: Mar. 24 Mar. 31 Apr. 7 . . . . Apr. 1 4 . . . . . Apr. 21.-. From 11 to 30 days: Mar. 24 Mar.31 Apr.7 Apr. 14 Apr. 21 From 31 to 60 days: Mar.24 Mar.31 Apr.7 Apr.14 Apr. 2.1.. From 61 days to 3 months: Mar.24 Mar.31.. Apr.7 Apr.14. .. Apr.21 Total acceptances held: Mar.24 Mar.31... Apr.7..... Apr.14. Apr.21 Boston. New York. Philadel- Cleve- Richphia. land. mond. San Total AtSt. Minne- Kanfor sas Dallas, Franlanta. Chicago. Louis. cisco. system. City. $252 271 171 135 200 1118 279 130 5 122 $26 106 44 30 20 $40 79 33 45 96 §135 138 18 35 77 $4,534 3,883 3,672 3,729 4,902 24 332 175 232 364 596 245 87 149 158 178 123 64 172 137 239 93 91 124 162 281 144 75 160 446 533 6,260 6,551 6,638 9,201 8,087 78 95 214 368 551 795 957 1,145 1,278 1,120 196 298 367 479 510 259 238 276 470 460 296 371 496 519 375 638 626 595 577 13,521 13,942 15,348 17,098 19,484 310 522 591 553 459 238 175 302 170 175 786 624 610 818 844 290 449 518 443 267 365 362 405 350 258 239 180 257 261 226 291 405 832 14,930 15,548 16,458 14>079 11,764 1,025 1,278 1,346 1,639 1,691 574 270 766 788 750 2,165 2,027 2,158 2,595 2,760 687 675 843 780 773 954 833 854 1,095 983 1,160 1,042 1,253 1,069 1,013 1,108 1,142 1,209 1,908 2,052 39,245 39,924 42,116 44,107 44.237 779 •1,318 1,132 1,649 $2,942 1,494 1,216 1,041 1,589 $334 596 444 970 1,059 $15 141 1,786 2,175 2,034 3,274 2,271 2,102 2,235 2,388 3,695 2,847 933 1,522 1,207 **50' 741 763 252 112 107 224 355 3,959 4,352 4,197 5,176 5,853 4,974 5,080 5,414 5,100 6,992 1,913 1,410 2,063 2,337 2,259 448 503 550 776 787 5,893 4,933 4,615 1,968 965 4,707 6,384 7,054 6,996 5,436 12,236 12,239 12,164 11,550 10,738 14,725 15,193 16,072 16,832 16,864 1,961 1,725 1,890 1,562 1,966 5,141 5,253 5,604 5,610 6,047 S66 200 250 90 250 250 FEDERAL RESERVE Amounts BULLETIN. MAY 1, 19X6. of acceptances (in the foreign and domestic trades) purchased by each Federal Reserve Bank during the calendar year 1915, and for the months of January, February, and March, 1916. [In thousands of dollars.] Boston. Acceptances maturing— New Philadel- Cleve- EichYork. . phia. land. mond. Atlanta. $ Within 30 days: Calendar vear 1915 January, 1916. February 1916 March, 1916 11 1,246 587 909 680 695 Total...... 545 3,422 1,713 215 2,137 102 41 98 2,377 621 313 520 1,464 43 36 1,835 2,378 3,831 11,471 2,681 3,686 5,913 After 30 but within 60 days: Calendar year 1915 January 1916 Febnia rv 1916 March, 1916 Total After 60 days but within 3 months: Calendar vear 1915 January, 1916 ... February 1916 March, 1916 Total - Total acceptances bought: Calendar vear 1915 January 1916 February, 1916 March, 1916..... Total Distribution - 277 741 101 64 50 7 41 15 San Total St. Minne- KanChicago. Louis. sas Dallas. Franfor apolis. City. cisco. system. 156 103 18 45 20 1 69 9 50 61 6 125 2,980 734 1,453 1,454 50 192 6,621 7 174 103 66 78 746 42 30 70 19 18 816 279 116 150 374 43 50 146 191 6 33 44 183 55 22 151 750 13 13 107 9,057 1,204 654 3,139 3,378 888 37 1,361 613 274 411 883 14,054 22,211 2,686 4,157 6,978 5,406 151 396 2,183 2,116 267 395 579 250 46 300 65 421 4,810 1,324 489 357 656 143 787 355 1,219 200 194 365 1,536 151 197 285 2,419 304 420 459 52,808 7,586 10,309 18,325 23,751 36,032 8,136 3,357 250 832 6,742 2,179 1,978 2,169 3,602 89,028 14,105 2,831 3.727 6,011 25,834 3,894 5,379 8,178 . 7,565 194 709 4,759 2,963 373 475 649 250 41 15 72 300 65 439 5,782 768 772 955 1,801 400 193 501 1.455 226 228 409 1,788 215 219 436 50 3,230 323 558 566 64,845 9,524 12,416 22,918 26,674 43,285 13,227 4,460 306 876 8,277 2,895 2,318 2,658 50 4,677 109,703 56 of Mils bought in open market by all Federal Reserve Banks during the month of March, 1916, by classes of acceptors and sizes. To $5,000. Over $5,000 to $10,000. II Total bankers 1 acceptTrade acceptances . Total bills bought i n open m a r k e t . . . . . . . Per cent 265 Over $25,000 to $50,000. Over $50,000 to $100,000. Over $100,000. II 134 $490,007 112 $955,965 283,406 739,614 90,625 32,443 40,402 69,299 Member b a n k s . . . Trust companies. State banks Private b a n k s . . . . Over $10,000 to $25,000. 904,440 37,468 1,797,321 186,233 $3,276,115 2,265,183 301,595 494,146 $2,480,573 1,310,734 30,000 668,364 17 39 $3,209,925 1,237,377 6,337,039 241,393 4,489,671 61 5,035,985 59,278 941,908 234 1,983,554 356 6,578,432 108 4,489,671 8.7 4.1 19.6 28.8 a < $2,144,046 1,635,127 Total. r 544 $12,556,681 54.9 345 7,471,441 32.7 47 454,663 2.0 75 1,860,894 8.1 22 3,779,223 1,011 122,343,679 S 59 524,372 62 5,095,263 22 3,779,223 1,070 22.3 16.5 Total for Jan.-Mar... 749 2,278,542 613 5,012,301 769 14,240,484 204 8,177,999 100 7,993,470 97.7 2.3 22,868,051 100.0 100.0 37 7,105,598 2,472 44*808,394 *2 Of the above total of bankers' acceptances, $22,014,084 was based on imports or exports and $329,595 on domestic trade transactions. Of the above total, $514,677 was drawn abroad on importers in the United States and indorsed by foreign banks, while $9,695 represents the amount of domestic trade acceptances bought during the month in the open mar Vet. 251 .FEDERAL BESEKVE BULLETIN. MAY 1,1916. Total investment operations of each Federal Reserve Bank during the month of March, 1916 and 1915. [In thousands of dollars.] Bank. Boston . ... New Y o r k . . . . . . . . .. Philadelphia Cleveland. .„ Richmond Atlanta Chicago St. Louis Minneapolis . Kansas City Dallas . . . . San Francisco. Bills bought J n open market Bills discounted for Bank- Trade memers' acber accept- Total. banks. cept- ances. ances. 213.3 5,996 304.6 7,794 212 0 4'744 '649 268.8 15 3,240.9 1,704.1 429 955 618.0 501 234.1 . 111. 4 409 759.4 436 1.445.5 466 238.7 Totals: March 9,350.8 22,394 February 7,664.6 11,894 January. li.114.9 9,375 3 months ending Mar. 31, 1916.... 28,130.3 43,663 3 months ending Mar. 31, 1915 35,642.8 15 384 15 io 100 Municipal warrants. City. State. All Total. other. 6.011 1,071.1 8,178 3,582.6 4 759 852.6 649 1.407.7 15 10.0 31 955 1,221.0 6.1 501 409 436 578. 7 632.3 593.7 566 458.3 United States bonds. 2 per cent. 1,071.1 3,582.6 3,202.6 855.7 716 0 5.6 1,413.3 356.0 10.0 1,236.6 3.1 1,230.2 29.0 578.7 632.3 337.6 593.7 1,492.25 32 0 458.3 3 per cent. 440.0 • 5.0 321.0 4 per cent. Total. Total investment operations. 1916 7,295.4 15,267.2 6,542.7 2,854.1 3.621,9 3,384.7 3,153.2 1,313.8 337.0 1'. 489. 7 1/492.25 3,281.35 32.0 1,477.5 1,263.0 3,202.0 716.0 83.0 523.0 356.0 1,241.6 350.0 19.15 1,515.9 4.314.7 2,356.4 1,886.7 4,266.1 2,890.1 3,372.5 1,128.0 809.0 . 842.2 2,230.0 1,223.3 524 522 149 22,918 10,408.0 9.2 12,416 10,393.3 20.4 9,507.8 236.0 8.7 10,425.9 7.400.85 766.0 83.0 8,249.85 50,944.55 26,834.9 11.2 10,424.9 !6J82.25 1,739.5 975.0 19,496.75 40,002.25 20,345.8 62.5 9,806.3 4,393.80 1 403.38 1,830.0 16,627.18 37.072.38 23,450.3 1,195 44,858 30,309.1 265.6 82.4 30,657.1 18,576.90 2,908.88 2.888.0 24,373.78128.055.68 16.409.4 5,486.8 1,070.0 1 Corrected figures. 6,556.8 70,631.0 252 M i l l , 1916. FEDERAL RESERVE BULLETIN. FEDERAL RESERVE BANK STATEMENTS. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. 31 to Apr. 21, 1916. RESOURCES. [In thousands of dollars.] Boston. Gold coin and certificates in vault: Mar.31 Apr.7.. Apr. 14 Apr.20-21.... Gold settlement fund: Mar.31.... Apr.7... Apr. 14 Apr.20-21 Gold redemption fund: Mar.31 -Apr.7 Apr.14 Apr.20-21... Legal-tender notes, silver, etc.: Mar.31 Apr.7 Apr.14 Apr.20-21 Total reserve: Mar.31 Apr.7 Apr.14 Apr.20-21 Bills discounted—Members: Mar.31 Apr.7... Apr.14 Apr.20-21 Bills bought in open market: Mar.31 Apr.7 Apr.14... Apr. 20-21 One-year Treasury notes: Apr.7 Apr.14 Apr.20-21 United States bonds: Mar 31 Apr.7 Apr. 14 Apr.20-21 Municipal warrants: Mar 31. • Apr.7 •.. Apr.14 Apr. 20-21 Federal reserve notes, net assets: Mar 31 Apr.7 Apr.14 Apr.20-21.... Due from other Federal Reserve Banks, net: Mar.31 Apr.7 Apr.14 Apr.20-21 All other resources: Mar.31 Apr.7.... Apr.14 ..*.. Apr.20-21 Total resources: Mar.31 Apr.7 Apr.14 Apr.20-21 1 New York. Philadelphia. Cleve- Richland. mond. Atlanta. St. MinneChicago. Louis. apolis. City. San Dallas. Francisco. Total for system. 161,707 156,763 156,890 152,544 5,883 5,667 8,013 4,946 11,630 11,666 11,708 11,806 4,768 4,798 4,815 4,850 5,764 5,563 5,696 5,862 33,986 31,780 29,342 31,853 4,957 4,997 4,885 4,671 3,654 3,569 3,579 3,582 4,675 4,066 4,216 4,390 4,020 3,905 3,807 3,809 7,040 6,641 6,748 5,713 258,052 245,778 245,714 239,882 6,329 8,106 6,342 4,927 7,766 7,380 5,923 5,740 9,749 9,972 8,519 8,109 10,733 11,424 10,430 10,289 4,111 2,751 2,631 2,489 8,467 9,526 9,990 8,159 3,497 3,986 5,055 5,039 4,591 4,688 4,630 4,643 4,161 4,769 4,359 3,702 10,373 9,157 9,397 9,730 2,738 2,974 2,360 2,341 75,640 80,011 75,690 74,785 5 5 5 5 250 250 250 250 50 50 50 50 313 274 262 235 320 291 318 291 200 200 200 200 10 82 60 43 30 30 30 30 65 76 66 82 242 248 227 232 10 10 10 10 1,548 1,549 1,495 1,473 35 7 87 19 1,855 4,499 4,553 1,637 3,057 2,488 2,186 1,790 1,085 957 946 956 127 79 83 109 240 275 244 299 1,149 1,080 1,135 2,380 822 818 482 483 501 502 185 193 194 169 702 746 813 12 13 7 13 11,600 11,504 9,505 13,223 11,653 12,161 15,497 170,141 169,618 168,035 159,358 16,756 15,585 16,172 12,526 22,517 22,628 21,190 20,916 43,802 9,355 42,586 9,889 40,667 10,822 42,592 10,571 8,757 8,770 8,740 8,757 9,086 9,104 8,835 8,343 15,455 14,012 14,177 14,584 9,800 9,638 9,125 8,077 345,178 338,938 334,403 325,645 198 283 319 312 396 439 415 266 317 537 545 336 507 577 461 4,478 4,665 4,735 4,845 492 519 470 436 21,267 22,268 22,162 22,067 12,239 12,164 11,549 10,738 15,193 16,072 16,832 16,864 5,253 5,604 5,610 6,047 1,278 1,346 1,639 1,691 1,142 1,209 1,909 2,052 40,408 42,116 44,108 44,237 250 1,532 1,532 1,532 '3,288 3,288 3,048 3,202 2,449 2,549 2,550 4,206 4,490 3,528 3,528 4,224 3,849 4,094 4,134 1,676 1,676 1,751 1,295 2,603 2,578 2,483 2,481 14,993 14,824 15,165 15,156 3,330 3,308 3,350 3,291 2,950 4,950 4,991 4,969 91 60 60 60 1,111 719 1,137 1,000 14,325 10,384 10,480 9,888 116 172 138 203 352 375 2,628 3,173 3,008 5,429 625 279 431 1,137 10,058 6,015 5,856 3,125 5,278 6,054 9,617 2,043 3,456 2,416 15,941 10,345 16,575 15,590 15,483 8,941 3,963 3,712 3,755 3,761 1,645 2,407 2,061 1,723 601 600 578 560 766 706 702 694 1,961 1,935 1,902 1,851 754 766 788 750 2,027 2,158 2,595 2,760 954 1,096 1,160 1,253 773 854 1,043 1,069 780 832 983 1,013 380 350 350 350 410 410 6,682 8,338 8,338 8,423 3,339 3,339 2,959 2,959 2,214 1,864 2,114 2,114 7,978 8,090 7,974 8,711 3,620 3,711 3,776 4,061 1,241 1,257 1,257 1,237 1,356 1,381 1,406 1,418 231 1,083 1,062 1,161 1,537 ,1,557 1,587 1,611 1,025 869 919 1,170 1,128 1,178 1,127 1,719 1,080 1,699 1,276 1,352 791 786 7,994 5,786 7,318 4,597 1,324 688 1,850 2,276 2,981 3,192 2,774 2,645 1,816 1,238 2,026 2,306 339 622 247 6,165 6,228 6,087 6,464 50 100 456 354 1,400 1,990 2,069 2,069 1,932 3,234 3,840 1,333 2,818 2,840 2,841 •1,010 43 15 59 24 318 3,810 306 277 137 96 76 70 105 35 136 108 1,487 1,019 978 937 443 572 448 374 885 714 595 292 141 110 126 116 522 403 375 466 324 310 321 319 32,446 34,156 33,412 33,350 218,568 219,078 215,338 206,040 32,692 32,745 32,881 32,101 32,644 34,294 33,741 33,981 25,712 25,669 25,323 25,142 18,180 18,802 18,338 18,411 67,750 67,115 66,790 66,141 18,679 18,608 20,470 20,447 18,158 18,355 18,433 18,290 23,142 22,601 23,504 24,110 3,035 3,035 3,420 3,532 40,275 45,226 44,924 45,204 1,832 2,188 2,213 2,203 33,015 35,256 35,706 35,892 5,296 5,318 5,3,10 5,468 25,118 21,761 22,159 21,731 1,709 1,498 1,690 2,833 i13,128 1 11,161 i 16,825 1 17,515 397 194 211 196 4,975 7,587 4,023 3,576 21,929 22,426 22,391 22,667 23,514 23,599 24,348 24,797 523,364 526,245 527,544 519,707 Items in transit, i. e., total amounts due from, less total amounts due to, other Federal Reserve Banks. 253 FEDEKAL BESEKVE BULLETIN. MAY 1,1916. Resources and liabilities of each of the Federal Reserve Banks and of the Federal Reserve System at close of business on Fridays, Mar. SI to Apr. 21,1916—Continued. LIABILITIES. [In thousands of dollars.] Boston. Capital paid in: Mar. 31 Apr. 7i.» .. Apr 14 Apr. 20-21 Government deposits: Mar.31 Apr 7 Apr. 14 .. . . Apr. 20-21............ Reserve deposits, net: Mar.31....... Apr. 7 Apr.14...... Apr. 20-21... Federal Reserve notes, net liability: Mar.31 Apr. 7.. Apr. 14 Apr. 20-21 Federal Reserve bank notes in circulation: Mar.31. , Apr. 7.... Apr.14.. Apr. 20-21 Due to other Federal Reserve Banks, net: Mar.31.... Apr. 7 Apr.14 Apr. 20-21 All other liabilities: Mar.31 . . . Apr. 7.. Apr. 14 Apr. 20-21 Total liabilities: Mar.31 Apr. 7 Apr.14 Apr.20-21 New York. Philadelphia. Cleve- RichAtland. mond. lanta. San Minne- Kansas Dallas. FranSt. Chicago. Louis. apolis. City. cisco. Total for system. 5,146 5,140 4,974 4,950 11,122 11,123 11,291 11,297 5,215 5,215 5,215 5,215 5,948 5,948 5,948 5,948 3,345 3,345 .3,345 3,345 2,414 2,383 2,382 2,405 6,666 6,667 6,669 6,670 2,788 2,788 2,788 2,788 2,561 2,563 2,563 2,563 3,006 3,006 3,006 3,002 2,733 2,734 2,733 2,734 3,944 3,931 3,931 3,926 54,888 54,843 54,845 54,843 363 549 1,398 1,224 10,560 8,327 6,024 6,248 340 1,111 790 876 892 936 1,017 1,094 7,027 6,836 6,244 6,117 7,049 7,468 7,066 6,897 2,173 1,209 987 327 1,504 1,737 1,986 2,395 497 521 457 363 5,613 5,695 5,853 6,108 1,429 1,585 1,784 2,068 38,469 37,016 34,732 35,291 26,937 28,467 27,040 26,177 186,895 188,425 190,598 183,773 27,137 26,419 26,876 26,010 25,804 27,410 26,776 26,939 11,352 11,372 11,594 11,468 8,554 8,843 8,782 9,001 58,911 59,239 59,134 59,144 14,387 14,083 15,696 15,264 15,100 15,271 15,413 15,364 1,022 1,042 1,126 1,574 16,978 16,229 16,810 16,365 9,791 9,656 9,540 9,538 18,141 18,083 18,248 18,306 419,987 423,497 426,507 417,349 1,172 1,073 1,139 1 205 3,792 4,341 4,265 4,238 3,939 4,086 4,107 4 174 8,903 9,500 9,511 9,617 964 1,251 1,423 1,964 964 1,251 1,423 1,964 999 9,991 11,203 7,425 4,722 59 49 49 30 33 38 32,446 34,156 33,412 33,350 218,568 219,078 215,338 206,040 32,692 32,745 32,881 32,101 32,644 34,294 33,741 33,981 104 108 108 108 25,712 18,180 25,669 18,802 25,323 18,338 25,142 18,411 67,750 67,115 66,790 66,141 18,679 18,608 20,470 20,447 18,158 18,355 18,433 18,290 385 497 153 138 526 643 23,142 21,929 23,514 22,601 22,426 23,599 23,504 22,391 24,348 24,110 22,667 24,797 523,364 526,245 527,544 519,707 254 MAY 1, 1916. FEDERAL RESERVE BULLETIN. Circulation of Federal Reserve notes at close of business on Fridays, Mar. 31 to Apr. 21, 1916. [In thousands of dollars.] Boston. Federal Reserve notes issued to the bank: Mar. 31 Apr.7.... Apr.14 Apr. 20-21. Federal Reserve notes in hands of bank: Mar. 31.. Apr.7 Apr.14 Apr. 20-21 Federal Reserve notes in circulation: Mar.31 Apr.7..... Apr.14 Apr. 20-21 Gold and lawful money deposited with or to the credit of the Federal Reserve Agent: Mar.31. Apr.7 Apr.14 Apr. 20-21........... Carried to net assets: Mar.31 Apr.7 Apr.14 Apr. 20-21 Carried to net liabilities: Mar.31... Apr.7 Apr.14 Apr. 20-21 New York. San St. Minne- Kansas Dallas, i| FranChicago. Louis. apolis. City. | cisco. Total for system. Phila- Cleve- Richdelphia. land. mond. Atlanta. 11,726 11,153 11,024 10,913 14,944 14,944 14,.81O 14,755 3,819 3 814 3,807 3,803 7,641 7,628 7,608 7,335 13,065 13,144 13,130 13,130 9,909 9,849 9,899 9,462 14,869 16,009 16,159 16,179 10,842 10,835 10,829 11,618 190,232 190,536 186,761 186,643 931 284 446 1,231 1,083 1,062 1,161 1,537 1,557 1,587 1,611 980 1,025 869 919 1,170 1,128 1,178 1,127 58 157 91 25 17 13 122 5,318 5,310 5,468 27,166 22,219 22,526 22,324 9>851 14,810 9,692 15,992 9,608 16,126 9,437 16,057 5,546 5,517 5,519 6,150 163,066 168,317 164,235 164,319 10,842 10,835 10,829 11,618 179,281 180,578 176,883 176,433 5,296 5,318 5,310 25,118 21,761 22,159 21,731 10,446 10,418 10,873 10,846 75,125 74,959 71,249 71,056 7,178 7,154 6,999 6,973 1,111 719 1,137 1,000 14,325 10,384 10,480 9,888 116 172 138 203 9,335 9,699 9,736 9,846 60,800 64,575 60,769 61,168 7,062 6,982 6,861 6,770 10,316 10,254 10,196 10,219 10,795 10,869 10,761 10,467 13,713 13,861 13,748 13,594 2,282 2,257 2,220 2,192 6,661 " -~ 6,739 6,416 11,895 12,016 11,952 12,003 10,446 10,418 10,873 10,846 75,125 74,959 71,249 71,056 7,178 10,668 7,154 10,629 6,999 10,594 6,973 10,573 6,856 6,783 6,654 6,293 13,944 14,944 14,810 14,755 3,819 3,814 3,807 7,641 7,608 7,335 13,065 13,144 13,130 13,130 1,111 719 1,137 1,000 14,325 10,384 10,480 9,888 1,537 i 980 1,557 1,025 1,587 869 1,611 I 919 1,170 1,128 1,178 1,127 116 172 138 203 10,668 10,629 10,594 10,573 352 375 398 354 I 352 375 398 354 231 1,083 1,062 1,161 ;,679 !,619 !,469 L232 1,172 1,073 1,139 1,205 3,939 4 4',107 4,174 11,018 11,651 11,861 11,819 3,792 4,341 4,265 4,238 8,903 9,500 9,511 9,617 Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr. .1916. , [In thousands of dollars.] Boston. Federal Reserve notes: Received from Comptroller— Mar.31 Apr.7 Apr.14 Apr. 20-21 Returned to Comptroller— Mar.31 ,. Apr.7..... Apr.14 Apr. 20-21... Chargeable to Federal Reserve Agent— Mar.31 Apr.7.. Apr.14. Apr. 20-21 In hands of Federal Reserve AgentMar. 31: Apr.7 '. Apr.14 Apr.2L Issued to Federal Reserve Bank, net— Mar.31 Apr.7 Apr.14 Apr.20-21 New York. Philadelphia. Cleve- Richland. mond. Atlanta. San St. Minne-1 Kansas Chicago. Louis. apolis. j City. Dallas. Francisco. Total for system. 17,000 20,400 17,000 20,400 17,000 20,400 17,000 20,400 9,380 9,380 9,380 9,380 9,600 9,600 9,600 9,600 19,000 19>000 19,000 19,000 13,000 13,000 13,000 13,000 20,780 20,780 20,780 22,140 11,360 11,360 11,360 12,160 277,980 278,980 278,980 281,140 2,374 2,447 2,576 2,687 1,360 1,360 1,494 1,549 685 692 197 210 230 135 146 160 160 418 478 478 545 1,121 1,188 l',278 1,320 518 525 531 542 32,633 33,276 37,621 38,451 12,368 12,329 12,294 12,273 14,626 14,553 14,424 14,313 19,040 19,040 18,906 18,851 8,700 8,695 8,688 8,684 9,403 9,390 9,370 9,097 18,885 18,854 18,840 18,840 12,582 19,659 12,522 19,592 12,522 19,502 12,455 20,820 10,842 10,835 10,829 11,618 245,347 245,704 241,359 242,689 1,700 1,700 1,700 1,700 2,900 3.400 3,400 3,400 4,096 4,096 4,096 4,096 4,881 4; 881 4,881 4,881 1,762 1,762 1,762 1,762 5,800 5,710 5,710 5,710 2,673 2,673, 2,823 2,993 7,178 10,668 7,154 10,629 6,999 10,594 6,973 10,573 11,726 11,153 11,024 10,913 14,944 14,944 14,810 14,755 3,819 3,814 3,807 3,803 7,641 7,628 7,608 7,335 13,065 13,144 13,130 13,130 i I 9,849 ! 9,699 ! 9,462 19,380 20,380 20,380 20,380. 109,240 109,240 109,240 109,240 15,480 15,480 15,480 15,480 13,360 13,360 13,360 13,360 1,514 1,692 1,737 1,764 21,115 21,281 24,991 25,184 2,209 2,233 2,388 2,414 992 1,031 1,066 1,087 17,866 18,688 18,643 18,616 88,125 87,959 84,249 84,056 13,271 13,247 13,092 13,066 7,420 8,270 7,770 7,770 13,000 13,000 13,000 13,000 6,093 10,446 10,418 10,873 10,846 75,125 74,959 71,249 71,056 6,093 4,790 3,583 3,363 4,841 14,869 10,842 16,009 10,835 16,139 10,829 16,179 11,618 55,115 55,168 54,598 56,046 190,232 190,536 186,761 186,643 MAY 1, 1916. 255 FEDERAL RESERVE BULLETIN. Statement of Federal Reserve Agents' accounts at close of business on Fridays, Mar. 31 to Apr, 21, 1916-— Continued. [In thousands of dollars.) Boston. Amounts held by Federal Reserve Agent: In reduction of liability on outstanding notesGold coin and eert i f i c a t e s on hand— Mar. 31 Apr. 7.. Apr. 14 Apr. 20-21.... Credit balances in gold redemption f u n d Mar. 31 ; Apr. 7 Apr. 14 Apr. 20-21... Credit balances , with Fed- ! e r a l Reserve BoardMar. 31 Apr. 7 Apr. 14 Apr. 20-21... As security for outstanding n o t e s Commercial paperMar. 31 Apr. 7 Apr. 14 Apr. 20-21... TotalMar. 31 Apr. 7. Apr. 14 Apr. 20-21... Memorandum: Total amount of commercial paper delivered to Federal Reserve AgentMar. 3 1 . . . Apr. 7. Apr. 14 Apr. 20-21 New York. San Minne- Kansas •St. Chicago. Louis. Franapolis. City. Dallas. cisco. Philadelphia. 9,885 9,865 10,365 10,365 71,398 71,398 67,918 67,917 3,360 3,360 3,360 3,360 9,720 9,700 9,700 9,700 581 553 508 481 3,727 3,561 3,331 3,139 458 434 399 373 948 929 894 873 3,360 3,360 3,240 3, 240 10,446 10,418 10,873 10,846 75,125 74,959 71,249 71,056 7/178 10,668 7,154 10', 629 6.999 10', 594 6,973 io; 573 326 353 354 493 6,530 6,430 6,300 5,800 4,870 .4.370 4,370 4,620 11,726 11,153 11,024 10,913 5,008 5,151 5,161 994 994 860 1,305 12,950 i. 13,950 13,950 13,450 409 404 393 3,410 3,410 3,410 Z, 410. 2,850 2,850 2,850 2,850 10,050 10,140 10,140 10,140 4,100 4,100 3,950 3,780 9,5^0 9,540 9,540 9,540 351 388 355 665 654 640 640 479 619 619 552 708 751 751 779 272 265 259 248 9,918 9,905 9,380 9,631 4,440 4,390 4,390 4,130 2,350 2,350 2,350 2; 350 4,100 3,900 3,900 3,900 770 1,360 1,570 1,500 10,570' 10,576 10,570 11,370 48,480 49,720 49,680 49,150 1,230 1,230 1,230 1,230 3,851 4,358 4,278 4,360 9,909 9,849 9.699 9'. 462 14,869 16,009 16,139 16,179 1,245 1,237 1,242 1)239 3,927 4,382 4,352 4,487 1,000 14,944 14,944 14,810 14,755 1,000 3,819 3,814 3,807 3,803 Total for system. 7,641 7,628 7,608 7,335 13,065 13,144 13,130 13,130 120,883 120,953 117,823 117,652 10,951 9,958 9/878 10,210 10,842 10,835 10,829 11,618 190,232 190,536 186,761 186,643 11,180 10,770 10,765 10,725 256 MAT 1,1916. FEDERAL RESERVE BULLETIN. GOLD IMPORTS AND EXPORTS. Imports of gold, by customs districts, Jan. 1 to Apr. 21, 1916. Total. St. Lawrence. Michigan. Dakota. Buffalo. Washington. Southern California. San Francisco. Alaska. Laredo. El Paso. Arizona. New Orleans. Florida. New York. Maine and New Hampshire. [In thousands of dollars.] Week ending Mar. %!+• Ore and base bullion United States mint or assay office bars Bullion refined United States coin Foreign coin Total 11 67 27 4 28 8 65 61 3 308 34 89 15 11 270 20 89 337 23 605 20 1,362 40 1 3 605 11 942 38 4 43 8 1 68 190 3 34 24 49 162 3 12 165 1,269 1 2,433 211 3 12 3,868 7 49 227 Week ending Mar. 81. Ore and base bullion. Bullion refined United States coin Foreign coin Total 23 183 20 206 25 14 1 20 919 2,433 . 14 1 3,372 24 3 58 47 Week ending Apr. 7. Ore and base bullion United States mint or assay office bars Bullion, refined Foreign coin Total 15 33 8 7 2 350 1,328 1 711 15 10 7 58 3 12 466 1,328 2 57 12 55 2 104 67 7 49 2,033 41 3 58 408 Week ending Apr. 14. Ore and base bullion United States mint or assay office bars ; Bullion, refined United States coin Foreign coin Total 6 114 99 87 144 1 390 3 530 144 416 9 530 25 6 1 037 6 99 21 40 1 93 210 3 58 1,507 8 30 421 Week ending April 21. Ore and base bullio n United States mint or assay office bars Bullion, refined United States coin.... Foreign coin Total Jan. 1 to Apr. 21. Ore and base bullion United States mint or assay office bars Bullion, refined United States coin Foreign coin Total 12 296 1 868 ....... 12 30 725 . . . . . . 111 195 5,350 99 20,206 33 5 9 26,380 33 125 72 14 40 63 422 . . . . . . 73 27 1 2,425 4,867 267 94 324 87 170 94 9 315 87 170 1 14 90 73 1 7,714 4 942 343 50 94 8 30 1,096 290 86 571 3,479 1,115 27 11 1,115 8,784 215 25,093 «38 38,686 563 4 1,335 1,968 86 571 257 FEDERAL RESERVE BULLETIN". MAY 1, 1916. Exports of gold, by customs districts, Jan. 1 to Apr. 21, 1916. [In thousand of dollars.] Maine and New New Hamp- York. shire. San Wash- BufPorto Alas- Hawaii. FranRico. ka. cisco. ington. falo. Da- Michkota. igan. MonSt. tana LawVerand rence. mont. Total. Idaho, Week ending Mar. 24. United States mint or assay office bars Bullion, refined domestic United States coin Foreign coin Total 93 300 12 2,929 1 393 12 2,929 1 5 16 5 1 5 1 6 27 3,035 300 21 5 6 1 ' 3,368 Week ending Mar. SI. Ore and base bullion . ... United States mint or assay office bars Bullion, refined domestic United States coin Foreign coin .. Total . 6 206 300 506 13 7 500 6 393 3 893 10 1 10 501 10 602 300 11 1,426 Week ending Apr. 7. Bullion refined domestic United States coin Foreign coin .. . Total 537 131 375 29 1,043 29 8 1 2 546 162 375 8 3 1,083 Week ending Apr. 14. Ore and base bullion United States mint or assay office bars . Bullion, refined, domestic. United States coin Foreign coin .. . Total.. . . 2 2 31 1 50 32 169 500 1 753 50 88 500 81 588 131 33 50 2 10 Week ending Apr. 21. Ore and base bullion „ United States mint or assay office bars Bullion, refined, domestic United States coin... Foreign coin Total Jan. 1 to Apr. 21. Ore and base bullion United States mint or assay office bars Bullion, refined: Domestic Foreign United States coin. Foreign coin Total 2 2 1 2 175 1,010 5 33 1,186 5 83 2 11 2,702 1,438 7,925 11,961 2 24,784 15 12 63 1 11 1,290 506 3,383 137 61 68 701 1 98 1 75. 7,044 7 9 2 75 9,796 71 236 3 13 7 1 1,012 1,381 750 1 2,912 757 12 3 15 1 1 2,051 758 1 52 12 214 1,010 15 3,535 1,438 16,840 13,345 38,678 INTERDISTRIGT MOVEMENT OF FEDERAL RESERVE NOTES, JANUARY 1 TO MARCH 31, 1916. to 00 Boston. Eeceived from. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis.. Minneapolis Kansas City... Dallas. San Francisco. Total. Philadelphia. New York. Returned to. Received from. Returned to. Received from. Richmond. Cleveland. Returned to. Received from. Returned to. Received from. Returned to. Received from. 908,500 $36,000 305,960 58,280 $2,785 79,015 7,670 $49,000 1,556,420 175,715 11,945 $3,340 64,670 16,455 3,945 $22,000 ,196,930 59,620 3,825 48,610 $6,905 151,010 10,870 21,280 164,930 . 105,000 141,980 4,940 7,065 74,525 6,740 3,385 22,430 8,865 17,740 461,870 2,960 $712,000 $360,100 $365,950 33,380 2,785 3,340 6,905 12,500 2,900 1,440 1,035 715 2,975 1682,000 43,000 36,000 49,000 22,000 5,000 5,000 15,000 10,000 19,000 7,000 924,500 79,015 64,670 151,010 287,500 65,325 31,655 12,660 19,965 37,730 545,000 299,700 1,537,450 1,187,510 49,450 118,400 185,200 194,700 417,450 257,800 7,<670 16,-455 10,!870 22,1000 4,:285 1, 140 035 V 970 155 58,280 188,190 59,620 4,970 6,175 11,690 10,910 20,280 6,480 3,945 21,280 101,000 18,205 7,935 3,600 3,805 5,690 11,945 3,825 3,730 2,510 6,060 4,225 5,515 780 164,930 69,000 18,495 4,200 3,265 5,960 4,870 48,610 410 535 675 980 5,095 195 433,925 893,000 2,386,030 5,152,760 659,560 1,308,475 565,700 128,070 2,063,800 144,910 Chicago. St. Louis. $43, 549, Minneapolis. Atlanta. Kansas City. San Francisco. Dallas. 1,671,235 $5,000 50,210 4,970 3,730 410 3,385 $12,500' 287,500 22,000 101,000 69,000 105,000 $5,000 121,290 6,175 2,510 535 22,430 71,500 $2,900 65,325 4,285 18,205 18,495 141,980 17,840 17,840 14,380 2,145 1,190 2,760 71,500 430,500 298> 500 214,500 64,500 115,000 185,200 11,690 6,060 675 8,865 430, 500 36,195 $1,440 31,655 1,140 7,935 4,200 4,940 14,380 4,290 4,290 24,185 32,270 2,670 36,195 320,145 385,020 8,530 $10,000 203,900 10,910 4,225 980 17,740 298,500 320,145 22,530 $1,055 11,660 1,035 3,570 3,705 7,065 2,145 24,185 15,595 15,595 4,705 16,060 22,530 11,065 21,000 $19,000 411,000 20,280 5,515 5,095 419,480 214,500 385,020 11,065 50,675 $500 17,965 800 3,415 4,650 59,525 1,190 30,280 4,705 60,700 65,700 11,775 50,595 4,150 15,670 2,610 Total.... 106,020 1,676,500 292,855 1,018,920 730,545 124,575 966,405 124,760 1,557,300 872,245 Total. Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned Received from. from. from. from. to. from. from. to. to. to. from. to. to. Boston New York Philadelphia.. Cleveland..... Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas SarfjFrancisco. Returned to. Returned to. $7,000 246,140 6,480 790 195 2,960 64,500 8,530 21,000 3,395 2,930 $2,975 37,730 2,155 5,690 4,870 6,740 2,760 2,670 16,060 11,775 14,670 $923,000 5,192,980 1,312,000 128,070 144,910 829,855 1,676,500 1,018> 920 124,575 124,655 212,735 109,095 $427,880 2,337,030 654,410 559,020 2,056,435 1,646,815 105,260 287,975 730,545 952,205 1,605,060 376,015 363,920 108,095 11,797,295 11,738,650 MAT 1, 1916. PEDBBAL RESERVE BULLETIN. 25$ CIRCULARS AND REGULATIONS. The Federal Reserve Board has issued the will be taken to afford these facilities as rapidly as possible. The Federal Reserve Banks will prepare a par list of all following circular on check clearing and col- nonmember banks, to be revised from time to time, which lection: will be furnished to member banks. CIRCULAR NO 1, SERIES OF 1916. WASHINGTON, May 1,1916. CHECK CLEARING AND COLIvEC.TJQN\ To Member Banks: The Federal Reserve Board is empowered, under section 16 of the Federal Reserve Act, to require each Federal 3 Reserve Bank to— " Exercise the function of a clearing house for its member banks." After very thorough investigation and many conferences with the Governors of the Federal Reserve Banks on this subject, the Federal Reserve Board has determined to exercise its authority and to offer to the member banks, and through them to the public, the machinery of the Federal Reserve Banks for the operation of a check collection and clearing system which it is believed, with the cooperation of member banks, will afford a direct, expeditious, and economical system of check collecting and settlement of balances. The date for the inauguration of this system is expected to be June 15, 1916, or as soon thereafter as the Federal Reserve Banks can complete preparations for undertaking this work. Member banks in each district will in due course receive from their Federal Reserve Bank full information as to the terms and all necessary details of the arrangement, but for the information of all concerned the general terms may be stated to be as follows: (1) In order that no inconvenience may be experienced, the plan will follow as closely as practicable the practice which long experience has developed between country banks and their reserve city correspondents. Each Federal Reserve Bank will receive at par from its member banks checks drawn on all member banks, whether in its own district or other districts. It is also proposed to accept at par all checks drawn upon nonmember banks when such checks can be collected by the Federal Reserve Banks at par. , Each Federal Reserve Bank will receive at par from other Federal Reserve Banks checks drawn upon all member banks of its district and upon all nonmember banks whose checks can be collected at par by the Federal Reserve Bank. It is the purpose of the Federal Reserve Board to have the collection system developed so as to embrace the collection of all checks on nonmember banks and private banks, and while this can not be done immediately, steps Immediate credit entry upon receipt subject to final payment will be made for all such items upon the books of the Federal Reserve Bank at full, face value, but the proceeds will not be counted as reserve nor become available to meet checks drawn until actually collected, in accordance with the best practice now prevailing. (2) Checks received by a Federal Reserve Bank on its member banks will be forwarded direct to such member banks and will not be charged to their accounts until advice of payment has been received or until sufficient time has elapsed within which to receive advice of payment. (3) In the selection of collecting agents for handlingchecks on nonmember banks member banks will be given the preference. (4) Under this plan Federal Reserve Banks will receive at par from their member banks checks on all member banks, and on nonmember banks whose checks can be collected at par by any Federal Reserve Bank. Member banks will be required by the Federal Reserve Board to provide funds to cover at par all checks received from, or for the account of, their Federal Reserve Banks: Provided, however, That a member bank may ship lawful money or Federal Reserve notes from its own vaults at the expense of its Federal Reserve Bank to cover any deficiency which may arise because of and only in the case of inability to provide items to offset checks received from or for the account of its Federal Reserve Bank. (5) Section 19 of the Federal Reserve Act provides that— "The reserve carried by a member bank with a Federal Reserve Bank may, under the regulations, and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any dividends unless and until the total reserve required by law is fully restored." It is manifest that items in process of collection can not lawfully be counted as reserve either by a member bank or by a Federal Reserve Bank. Therefore, should a member bank draw against such items the draft would be charged against its reserve if such reserve were sufficient in amount to pay it; but any resulting impairment of reserves would be subject to all the penalties provided by the Act. Inasmuch as it is essential that the law in respect to the maintenance of required reserves by member banks shall be strictly complied with, the Federal Reserve Board will fix a penalty to be imposed upon member banks for encroaching upon their reserves. 260 FEDERAL RESERVE BULLETIN. Member banks can at all times arrange to keep their reserves intact by rediscounting with their Federal Reserve Bank. (6) Each Federal Reserve Bank will determine by analysis the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the Federal Reserve Bank for each member bank and will enable it to apply the penalty for impairment of reserve. A schedule of the time required within which to collect checks will be furnished to each member bank to enable it to determine the time at which any item sent to its Federal Reserve Bank will be counted as reserve and become available to meet any checks drawn. (7) In handling items for member banks, *a Federal Reserve Bank will act as agent only. It will require that each member bank authorize it to send checks for collection to banks on which checks are drawn, and, except for negligence, will assume no liability. Any further requirements that the Board may deem necessary will be set forth by the Federal Reserve Banks in their letters of instruction to their member banks. (8) The cost of collecting and clearing checks must necessarily be borne by the banks receiving the benefit and in proportion to the service rendered. An accurate account will be kept by each reserve bank of the cost of performing this service and the Federal Reserve Board will, by rule, fix the charge, at so much per item, which may be imposed for the service of clearing or collection rendered by the reserve banks, as provided in section 16 of the Federal Reserve Act, CHAELES S. HAMLIN, Governor. SHERMAN ALLEN, Assistant Secretary. Statement for the Press. In connection with the distribution of the circular on clearing, the Board gaye out ; April 29, 1916, the following statement to the press: The Federal Reserve Board mailed this morning to the Federal Reserve Banks for distribution to all their member banks its circular announcing a plan for country wide check clearing and collection. The salient points of the circular are: The Federal Reserve Board, acting under the authority of the Federal Reserve Act, has designated the Federal Reserve Banks to act MAY i, 1916. as clearing houses for the clearing and collection of checks for their members. In doing this the Federal Reserve Board has laid down certain general principles, but has left it for the executive officers of the Federal Reserve Banks to work out the details. The Board evidently recognizes the immense amount of detail work that must be done in order to put such a vast machinery into smooth operation, and has set the time for beginning the operation of the system as June 15. The important features of the plan are: (1) The Federal Reserve Banks will accept at par all checks from member banks, w;hether drawn against other member banks, nonmember banks, or private banks. An exception is made at the outset in the case of checks drawn against nonmember banks which can not be collected at par. (2) All checks thus received from member banks will be given immediate credit entry, although amounts thus credited will- not be counted as reserves nor become available until collected. (3) In order to enable member banks to know how soon checks sent in for collection will be available either as reserves or for payment of checks drawn against them, time schedules, giving the minimum time for collection, will be furnished by each Federal Reserve Bank to its member banks. (4) The actual cost, without profit, of the clearing and collection of checks will be paid by the Federal Reserve Banks and assessed against the member banks in proportion to their sendings. (5) The whole plan is based on generally accepted principles under which clearing and collection plans have long been operated. A Federal Reserve Bank will not debit a member bank's reserve account with items forwarded to it for collection until the remittance of the member bank, in payment of such items, shall have had time to reach the Federal Reserve Bank. INDEX. Acceptances, distribution of, by sizes, maturities, etc 249-251 Acceptances not subject to stamp tax 211 Attorney General, opinion of, re changing location of Federal Keserve Banks 207-211 Bank examinations, cost of 213,214 Business conditions throughout Federal Reserve districts 228-243 Check clearing and collection, circular on 259 Commercial failures in 1916. 216 Commissioner of Internal Revenue, rujing as to revenue stamps on acceptances ' 211 Discount rates in effect- .•-....-. 216 Discounts, distribution of 244-248 Earnings and expenses of Federal Reserve Banks. 217-219 Federal Reserve Agents' accounts, statement of— 255 Federal Reserve Agents, meeting of 206 Federal Reserve Bunk statements 252-254 Federal Reserve note issues 212 Federal Reserve notes, intradistrict movement of.. 258 Fiduciary powers granted to member banks 225 Gold imports and exports 256, 257 Gold settlement fund.. 220-222 Governors of Federal Reserve Banks, meeting of... 206 Individual and bank deposits of national banks.... 222 Chart showing 223 Informal rulings of the Board: Clayton Act, interpretation of.... 224 Informal rulings of the Board—Continued. Foreign bank branches in United States........ 224 Bonds securing circulating notes 224 Rediscounts of member banks 224 Intradistrict clearing system, additions to and withdrawals from. 225 Law department: Negotiability of bills of exchange 226 Maturity of farm-land loans 226 Bills of exchange under section 5200, Revised Statutes..... 227 Rediscount of the assignment of open accounts. 227 Location of Federal Reserve Banks, opinion of Attorney General re changing. 207-211 Meeting of governors of Federal Reserve Banks... 206 Member banks granted authority to accept up to 100 per cent 215 National banks, individual and bank deposits of. 222,223 Resources and liabilities of Federal Reserve Banks. 251-252 State bank admissions to system 206 Three per cent bonds, sale of 215 Trustee, executor, etc., applications to act as, approved 225 "United States bonds to secure circulation, withdrawal of 215 Work of the Board. 205 o