View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

MAY, 1918

WASHINGTON
GOVERNMENT PRINTING OFFICE
1918




FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.
WILLIAM G. MOADOO,
Secretary of the Treasury,
Chairman.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.

W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO,
ADOLPH 0. MILLER.
CHARLES 3. HAMLIN.

H. PARKER WILLIS, Secretary,
L. 0. ADELSON,
Assistant Secretary.

I. 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 ?xnnum. 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 officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 or 1916 are
available. Bound copies of the Bulletin for 1917 may be had at
$5 per copy.

TABLE OF CONTENTS.
.! r 'y.g>3.

Review of the month
Directors named for the El Paso and Salt Lake City branch banks
Assistant secretary of Federal Reserve Board appointed
Press statement issued by the War Trade Board
New issue of Treasury certificates of indebtedness
Opinion of the Attorney General re collection of checks
,
.Development of the check clearing and collection system
National banks and the Liberty loans
Outline of organization of Federal Reserve Banks
Chart showing
Financial and banking statistics, also exchange rates of neutral countries in Europe, 1914-1917
Silver coinage act
The United States purchases of silver
Statements issued by the Capital Issues Committee
fiduciary powers granted to national banks
Banks granted authority to accept up to 100 per cent of capital and surplus
Growth of the acceptance business
Commercial failures reported
Charters issued to national banks during the month
Statement by Department of Agriculture regarding storage conditions for perishable products
State banks and trust companies admitted to system up to and including April 30
Amendments to banking laws as reported by Senate and House committees
Informal rulings of the Federal Reserve Board
Law department
Business conditions throughout the Federal Reserve districts
Gold settlement fund transactions
Operation of the check clearing and collection system
Discount operations of the Federal Reserve Banks
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note accounts of Federal Reserve Banks and agents
Interdistrict movement of Federal Reserve notes
Member bank condition statement
Earnings on investments of Federal Reserve Banks
'Gold imports and exports
Discount rates in effect.




IV

359
365
365
385
365
367
371
372
.373
374
375
395
39 /
399
402
402
402
408
403
404
408
414
435
438
440
459
461
462
408
471
473
474
480
481
482

FEDERAL RESERVE BULLETIN
VOL.

4

REVIEW OF THE MONTH.
The third Liberty loan, offered by the Secretary of the Treasury at the
O pening of April, closed on
May 4 with a gross subscription reported to that date of $3,316,628,250.
The original minimum issue having been fixed
at $3,000,000,000, it is thus seen that oversubscriptions amounted to at least $316,628,250,
and probably to much more than this sum.
Organization for the purpose of placing the
bonds was much more perfect during this loan
than during either of its predecessors, and the
absorption of the loan proceeded steadily and
with increasing success up to the time of closing.
It is 3^et too early to give with any degree
of accuracy the distribution of the loan by
districts. Preliminary returns, however, show
that all districts oversubscribed their quotas
and that the total number of separate subscriptions was in the neighborhood of 17,000,000.
So great is the number of subscribers that it
will probably not be possible to give definite
figures before the middle of May. There has
been a much wider participation on the part
of the public, and the facts indicate that
general distribution of future loans may be
confidently relied upon. With only a part of
the last day's returns showing, the number of
subscribers in each Federal Reserve district
may be fairly indicated as follows:
New York, 4,000,000; Chicago, 2,498,000; Cleveland,
1,561,979; Philadelphia (estimated), 1,200,000; Boston
(estimated), 3,200,000; San Francisco, 1,000,000; Atlanta,
1,000,000; Minneapolis, 1,000,000; Kansas City (estimated),
900,000: Richmond (estimated), 900,000; St. Louis,
866,342: Dallas, 850,000; total, 16,976,321.

The Secretary of the Treasury, in a statement issued on May 6, says: " I earnestly hope
that everyone who has bought Liberty bonds
will try to keep them for the period of the war
at least. The slogan now should be 'Keep
your Liberty bond.7 No one does his share
fully if he merely buys a bond and then sells
it immediately below par on the market."




No. 5

MAY 1, 1918.

Preceding the third Liberty loan, as already
explained in previous numbers
c a t ™ °f certm"of' the Bulletin, has been a
series of certificate issues which
have been placed with the banks and whose
proceeds have been used for the purpose of
anticipating the sale of the new bonds, and
providing for the needs of the Government
meanwhile. These certificates have been taken
up by the banks under the plan announced
by the Secretary of the Treasury two months
ago, wherein it was suggested to the banks
that they set aside weekly 1 per cent of their
resources for a period of 10 weeks. The
aggregate of the certificates thus placed shows
the amount of the proceeds of the new loan
which it will be necessary to devote to the
funding of these outstanding obligations, $400,000,000 maturing April 22 having already been
redeemed. In the following table are presented
consolidated returns for the subscriptions to
certificates up to April 22:
Distribution of Treasury certificates of indebtedness in
anticipation of the third Liberty loan.
Jan. 22 to
Apr. 22.

Feb. 8 to
May 9.

Feb. 27 to
May 28.

I
I
i
I

Total.

Treasury Department
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
i St. Louis
Minneapolis
Kansas City
Dallas....."
SanFraiMiseo
Total

S3,119,000
520,025.000 I 29,134,000
209,685,000 ! 241,322,000
22,500,000 | 30,000,000
26,000,000 | 34,000,000
7,000,000 | 12,131,000
9,507,000 I 12,391,000
42,352,000
30,359,000
20,064,000
18,090,000
15,000,000
10,750,000
21,411,000
12,000,000
14,076,000
13,084,000
25,000,000
21,000,000

$3,389,000
35,369,000
172,666,500
33,000,000
44,500,000
18,148,000
14,814,000
59,168,000
25,709,000
17,000,000
23,736,500
19,000,000
33,500,000

400,000,000

500,000,000

500,000,000

Mar. 20 to
June 18.

.
|
i
I

Treasury Department.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Apr. 10 to ! Apr. 22 to
July 9. | July 18.

| 81,559,000
S3,828,000 j
!
53,690,000 j 839,731,000 ! 36,468,000
193,700,500 I 215,448,000! !222,486,000
38,000,000 | 38,000,000 35,000,000
48,400,000 i 46,000,000 39,133,500
11,219,000 11,097,000
16,234,500
17,095,000 11,209,000
14,557,000
65,850,000 I 63,212,000
64,414,000
21,181,000 25,698,500
22,842,000
15,600,000 15,000,000
16,000,000
25,000,000 20,260,500
26,116,500
! 15,000,000 | 16,602,500 13,162,500
!
30,250,000 j 39,500,000 23,540,500
: 543,032,500 | 551,226,500 517,826,500

359

880

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

For the five-weeks period March 22 to April assets increased from 1,163.3 to 1,286.2 mil. 26 the Federal Reserve Banks j lions.
ii_ £ e m l0®s -Ol report an aggregate _ . _ .__ !| During the period under review the hank's'
increase
the''Reserve Bazi&s. /
._f.to to.
of 332.6 millions i n t h e i r bill gold reserves increased from 1,802-8 to 1,827.0
holdings, the amount of discounted paper held millions, while their net deposits went up from
on the later date showing an increase of 359.1 1,505.8 to 1,556.3 millions, both Government
millions. As against this large increase, the deposits and member-bank reserve deposits
combined holdings of Government securities, showing larger totals at the later date. Fedmainly certificates of indebtedness, show a de- eral Reserve notes in circulation increased
crease of 208.2 millions. These changes fol- from 1,429.5 to 1,526.2 millions. The decline
lowed the enactment on April 5 of the War in the ratio of total reserves to aggregate net
Finance Corporation Bill whereby promissory deposit and Federal Reserve note liabilities
notes secured by United States war obligations was from 63.4 to 61.3 per cent.
are no longer subject to stamp taxes, and
In the following table are shown the changes
Federal Eeserve Banks instead of purchasing between March 22 and April 19, 1918, in the
these securities under "repurchase agreements'7 totals of discounted and purchased bills held
may accept from their members United States by each of the Federal Reserve Banks, also
war obligations again as collateral for promis- changes between the two dates in the total
sory notes, as was their practice prior to Decem- holdings of other classes of investments:
ber 1,1917. The shift is most noticeable in the
case of the New York bank, which thus in[In thousands of dollars, i. e., 000 omitted.)
creased its holdings of discounted paper by 185
millions and reduced its Government security
Net in- Net deApr. 26.
Federal Reserve Bank.
Mar. 22.
crease.
crease.
holdings by 153.5 millions. Like changes,
though on a much smaller sc#le, are reported Boston
$68,304
82,609
S70,913
New York
429,185
555,283 126,098
by the Cleveland and Chicago banks.
47,437
61,654
Philadelphia
14,217
54,033
78,840
24,807
. .
Of the total discounts on hand at the earlier Cleveland
39,915
52,510
12,595
Richmond
19,589
29,403
9,814
date, 543.1 millions, paper directly traceable to Atlanta... .
61,202
136 555
Chicago
75,353
33,026
55,037
St. Louis
22,011
Government operations, i. e., member banks' Minneapolis.
8,850
26,137
17,287
30,220
51,044
Kansas
20,824
own notes and customers' paper secured by "Dallas City
20,223
30,722
10 499
60,015
56,489
San Francisco
j
$3,526
Government war obligations, constituted 282.9
871,999 1,204,587 332,588 |
Total
millions, or 52.1 per cent. By April 26 total
discounts on hand had increased to 902.2 mil- United States long-term
securities
61,039
41,446
19,593
lions, of which war-loan paper constituted 642.4 United States short-term- 226,036
securities
37,407
188,629
2,722
4,240
1,518
millions, or 71 per cent. In addition, the Fed- OtheT: earning assets
Total investments
eral Reserve Banks held on the latter date
1,163,314 1,286,162 I 122,848
held
among their investments 4.2 millions of United
States war bonds and certificates under repurReports from member banks in about 100
chase agreements, as against 208.4 millions on
leading cities showing condiMarch 22. Of the total earning assets such
Condition of
holdings of bonds and certificates constituted member banks. tion each week between March
15 and April 19 indicate con42.2 per cent on March 22 and 50.3 per cent on
siderable investment by the banks in Treasury
April 26.
Acceptances on hand fluctuated within nar- certificates of indebtedness, the holdings of
row limits, the total holdings on the latter date these securities increasing from 999.8 to
302.4 millions, being 26.5 millions below the 1,497.7 millions. Circulation bonds show a
total shown on March 22. Total earning slight decrease, while other United States




MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

bonds, mainly Liberty bonds, on hand declined from 387.1 to 341.3 millions. In addition, the reporting banks increased their loans
secured by war bonds and Treasury certificates from 302.7 to 320.1 millions. Comparative figures for 120 banks in the three central
reserve cities indicate net purchases by these
banks during the 5 weeks of over 310 millions
of Treasury certificates, though a decline of
3,4 millions in loans secured by United States
war obligations. Circulation bonds standing
in the names of these banks show a slight increase, while Liberty bonds on hand show a
decline from 185.2 to 170.2 millions. For the
member banks in Greater New York an increase of 271.3 millions in certificates is shown
as against decreases of 7.7 millions in loans
secured by United States war obligations and
of 15.7 millions in other United States securities,
largely Liberty bonds.
The larger part taken in recent Government financing operations by the banks in the
interior is seen from the fact that while on
March 15 about 71.5 per cent of the Treasury
certificates then held by banks in the larger
cities were reported by the banks in Greater
New York, on April 19 only about 66 per cent
of reported certificate holdings are credited
to these banks. Of the reported circulation
bonds, the share of the New York banks increased from 13.3 to about 13.6 per cent, while
of the remaining Government securities, chiefly
Liberty bonds, reported on both dates, the
share of the New York banks remained practically unchanged at about 44 per centOther loans and investments of all reporting
banks remained practically unchanged at 9,986
millions, a decrease of 32.7 millions for the
banks in central reserve cities being offset by
gains under this head shown for the remaining
reporting banks.
Reserves of all reporting banks (all with the
Federal Reserve Banks) show
Reserves and a total increase of 14.9 millions,
the banks in both central and
other reserve cities reporting larger figures on
the more recent date. Cash in the vaults of




361

the central reserve city banks shows a gain of
about 5.9 millions, while the gain for all reporting banks is 9.8 millions.
An increase of 128.6 millions is indicated in
demand deposits, largely at the banks in the
central reserve cities, the New York and
Brooklyn banks alone reporting an increase
under this head of 78.6 millions. For the
banks in the other reserve cities this class of
deposits indicates an increase of 11.1 millions.
Time deposits show a slight increase, net withdrawals from central reserve city banks being
more than offset by gains reported for the
other reporting banks. Government deposits,
as the result of large issues of Treasury certificates, increased by about 115.1 millions. Of
the total of 633.6 millions held by all reporting
banks on April 19, about 52 per cent is credited
to the banks in Greater New York, 61 per cent
to the banks in the three central reserve cities,
and over 35 per cent to the banks in the other
reserve cities.
For all reporting banks the ratio of combined vault cash and reserve to total, including Government deposits, declined from 13.7
to 13.6 per cent. For the central reserve city
banks this rate shows a decrease from 14.9 to
14.8 per cent. Excess reserves, in the calculation of which no account is taken of Government deposits, from about 72 millions on March.
15 rose to 112.2 millions the following week.
Since then a gradual decline set in, the figure
for April 12 being 53.1 millions. At the end
of the following week excess reserves work out
at 61.6 millions. For the central reserve city
banks excess reserve figures, after an increase
from 38.1 millions on March 15 to 75.4 millions
on March 22, show a continuous decline to 26.9
millions on April 12, and an increase to 31.1
millions on April 19.
Operations incident to the rapid and wide
distribution of the Liberty
Equalizing re- i o a n s have again brought opporserves by redis- A ., x '° , Al ° •,
counts.
tumty to test the value and
practicability of the discount
machinery of the Federal Reserve system,
Equalization of reserves among the different

862

Federal Reserve Banks is accomplished by rediscounts among Federal Reserve Banks. As
announced in former numbers of the Federal
Reserve Bulletin this method of readjusting
holdings of paper and equalizing reserves has
already several times been employed. Payments are effected through the gold settlement fund, and arrangements have been made
to the effect that the paper sold may remain in trust with the Federal Reserve Bank
which disposes of it unless actual physical transfer is desired by the purchasing Federal Reserve
Bank. The desirability of such rediscounts may,
in some cases, be due to special requirements of
a given district, coinciding, as is ^kely to be the
case, with the pressure of Government demands
or the fact of very heavy subscriptions to public
loans made in some particular district by persons who find it necessary to obtain from the
banks assistance in carrying bonds until they
can be paid for out of private funds.
During the past month Federal Reserve
Banks have slightly increased
Rates of inter- their discount rates, a new
est.
schedule involving an advance
of about one-quarter of 1 per cent on paper of
the various maturities having been put into
effect on April 11. The action, taken makes
the rate on 90-day paper secured by Government obligations identical with the rate borne
by the third Liberty bonds, so that banks desiring to obtain accommodation for the carrying
of such obligations can do so without expense to
themselves. The advance, too, corresponds to
the general tendency toward an increase of
rates in the commercial-paper market, making
the Federal Reserve Banks' rediscount charge
for 90-day paper 4f-5 per cent. The general
increase in rates is thus distinctly moderate and
has been adjusted in such a way as to preserve
differentials in favor of acceptances and other
preferred classes of paper as heretofore. During
the past month the provision of the war finance
corporation act, eliminating the stamp tax from
notes secured by Government obligations, became effective, with the result that the practice
of Federal Reserve Banks in entering into pur-




MAY 1,1918.

FEDEKAL BESERVE BULLETIN.

chase and resale agreements intended to relieve
borrowers of this tax whenever they presented
short-term paper secured by Government obligations has been modified. Such paper will
henceforward be classified as notes of member
banks, secured by Government obligations.
This elimination of the tax creates a very
distinct differential in favor of paper secured
by Government obligations running for short
terms.
The proper development of public financing
upon the sound basis of the establishment of
equitable and reasonable rates of interest on
Government obligations plainly demands as
uniform a policy with respect to rates of interest on bank deposits throughout the country
and as great a degree of moderation in the
establishment of sucji rates as can be developed.
For this reason it is necessary that the banks
throughout the country should
Interest on deQ.,

-j

, , •,

n.

v

J • AT

adopt the policy applied m New
York of keeping the rate allowed
on deposits as stable as possible and of preventing it from being artificially advanced by competitive bidding in different places for deposits
which some banks might attempt to attract
by the offer of higher rates of interest. Such
competition between banks is an inheritance
from the older reserve city situation under
which, as is well known, it was to the advantage of country banks to maintain reserve balances in the various reserve cities. Since the
abolition of the practice of counting bank balances as reserves, the offer of higher rates of
interest remains the chief inducement to the
placing of these balances with the city banks instead of buyingliquid paper. Temptation to offer
unreasonably high interest rates for deposits
is thereby increased. Some evidences of the
sort have come to the Board's attention and in
communications addressed to Federal Reserve
Banks, as well as to others who have made
inquiry during the course of the month, the
Board has endeavored to make plain its feeling
that it would be a wise and conservative policy
on the part of banks everywhere to refrain from

MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

bidding up the rates of interest against one another. Special emphasis has been placed upon
the fact that such competitive bidding mayrender it impossible for any group of banks,
however strong and conservative, to adhere to
a policy which places them, at a disadvantage
as compared with more aggressive and less
public-spirited institutions. The Board therefore urges all banks to cooperate in making
effective the policies above outlined.
In order to protect the gold holdings of the
country while at the same time providing exchange for the purpose of paying
Sale of silver.
for necessary goods imported
from the Orient, and especially India, it has
been necessary to procure a larger volume of
silver. Accordingly, on April 22 the House of
Representatives passed a measure authorizing
the withdrawal of certificates and the sale of
the silver securing such certificates, the purpose being to provide bullion as a means of
remittance to foreign countries. The act as
adopted authorizes the Secretary of the Treasury to break up the silver dollars to the number
not to exceed 350,000,000 and to dispose of the
silver thus obtained at a minimum price of
$1 per fine ounce. At the same time the
Secretary of the Treasury is authorized to make
contracts with producers of silver for the purpose of restoring the bullion obtained through
the breaking up of the silver dollars and subsequently disposed of. The price at which
such purchases are to be made is identical with
that fixed for the silver to be sold, a maximum
of 31 per fine ounce. It thus appears that when
the operation has been carried out it will have
resulted in temporarily supplying silver for immediate use in large quantities, while the Treasury stock of silver will eventually be restored to
the same amount as before the transactions were
undertaken. One feature of the measure which
directly affects the Federal Reserve system is
found in the provision that, in order to take
the place of silver certificates which are withdrawn as the dollars securing them are melted
and sold, the Federal Reserve Banks may be
called upon to issue Federal Reserve bank




55543—18

2

863

notes. Up to date the amount of Federal Reserve bank notes issued has been very limited,
there being outstanding on April 27 only
$11,611,000 and in actual circulation outside
the Treasury and the issuing Federal Reserve
Banks $8,773,000. The Federal Reserve bank
notes will be secured by United States certificates of indebtedness to be acquired under the
provisions of the act, and one-year Treasury
notes, of which $19,150,000 are now owned by
the Federal Reserve Banks. The Secretary of
the Treasury is given authority from time to
time to extend the maturity of such certificates
as are actually pledged with the Treasury as
security for Federal Reserve bank notes. It is
not possible to state in advance what amount of
silver is likely to be sold under the provisions of
the law, but theoretically the measure would permit the substitution of $350,000,000 of Federal
Reserve bank notes for an equal amount of silver
certificates. The process of substitution will
necessarily be slow, depending upon the gradual
withdrawal of silver certificates from circulation and the printing and substitution therefor of the new bank notes, thus avoiding any
shrinkage in the denominations of $1 and $2.
In the same way there will be a later withdrawal of an equal amount of Federal Reserve
bank notes and a reissue of an equivalent sum
in silver certificates. It is worth noting that
the act contains provision for the maintenance
of the existing embargo on silver, if desired,
up to the date when the operation may have
been completely carried through to success,
and the necessary amount of silver restored to
the Treasury.
An important step forward has been taken
„ „ .. system. during > A
,
the past ^ month by the
Collection
j n
j • f
o
h ederal Reserve Board m transmitting to all Federal Reserve Banks a letter
instituting certain changes in the present system
of clearings and collections. These changes are
intended to render the system more serviceable
than in the past. Details are given on page 371
of the present issue, which furnishes correspondence on the subject. In brief, the new plan provides for a suspension of service charges on the
collection of cash items, and for the elimination

364

of charges on collection items under certain conditions. The mail transfer system is also modified, and provision is made for the revision of
time schedules. While under existing conditions
of mail and transportation the granting of credit
on items of all kinds is necessarily somewhat delayed, the effort of all Federal Reserve Banks
will be to shorten the deferring of credit on
their books as much as they reasonably can.
By eliminating the service charges, as they
are able to do in view of the present high
level of earnings, Federal Reserve Banks will
place their services much more broadly within
the reach of the banks of the country, besides
approaching closer to the ideal of free transfer
of funds.
The President on April 5 signed the
War Finance Corporation bill,
Warfinanceact. already printed in the April
issue of the Federal Reserve
Bulletin, pages 300-306. The measure as approved is identical with the form as published
in the Bulletin. On April 29 the President
sent to the Senate the names of nominees
for appointment as members of the Capital
Issues Committee and the War Finance Corporation, the two new bodies provided for
by the act in question. Under the terms of
the law there are required to be appointed four
directors who, with the Secretary of the Treasury, make up the board in charge of the
War Finance Corporation. The four directors
nominated by the President in this connection
are Messrs. W. P. G. Harding, now member
and governor of the Federal Reserve Board;
Allen B. Forbes, of New York; Eugene Meyer,
jr., of New York; and Angus W. McLean, of
North Carolina. Mr. Forbes having declined
appointment, the President nominated Mr.
C. M. Leonard, of Chicago. For the Capital
Issues Committee there have been named from
the Federal Reserve Board Messrs. Charles S.
Hamlin, member and former governor of the
Board; Mr. John Skelton Williams, member
of the Board and Comptroller of the Currency;
and Mr. Frederic A. Delano, member and
former vice governor of the Board. The four




MAY 1,1918.

FEDERAL RESERVE BULLETIN.

additional names transmitted! to the Senate
are those of Messrs. James B. Brown, of Louisville, Ky.; John S. Drum, of San Francisco,
Cal.; Frederick II. Goff, of Cleveland, Ohio; and
Henry C. Flower, of Kansas Cit3^ Mo. The
Federal Reserve Board's Capital Issues Committee, shortly to be superseded by the new
body, continues in existence and at work pending the actual confirmation of the new body
and the taking of the oath of office by?its
members. The War Finance Corporation will,
it is understood, be definitely organized as
soon as the directors nominated by the President have been confirmed and have taken the
oath of office.
For the five weeks ending April 19 the net
outward gold movement to„ IJ

taieci aoouD Jftyo* «U(JU as

com-

pared with $2,743,000 for the
preceding four weeks. Gold imports for the
five weeks totaling $2,564,000 came largely
from, the Dutch East Indies, Canada, Mexico,
Colombia, and Portuguese East Africa, while
gold exports totaling about $3,551,000 were
consigned chiefly to Mexico and the Dutch
East Indies.
The gain in the country's stock of gold since
August 1, 1914, was $1,047,180,000 as may
be seen from the following exhibit:
[000 omitted.]

Imports.

Aug. 1 to Dec. 311914
Jan. 1 to Dec. 31,1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31,1917
Jan. 1 to Apr. 19,1918
Total

Exports.

823,253
451,955
685,745
553,713
10,561

§104,972
31,426
155,793
372,171
13,685

1,725,227

678,047

Excess of
imports
over
exports.
1

S81,719
420,529
529,952
181,542
13,124

1,047,180

i Excess of exports over imports.

The work of the Board's gold export committee has continued to be governed by the
same principles as in the past, and during
the month few licenses for the shipment of
coin or bullion have been granted, those which
have received favorable consideration being

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

generally for shipments to Mexico or Canada,
and in a few cases to South American countries,
the principles involved being those which have
already been set forth. In one case during the
past month the Board has, however, granted a
license for the exportation of gold to Spain.
The personnel of the directorates of the
Salt Lake City and El Paso
Branches.
branches has been determined
and made known, the former on April 13 and
the latter March 28. Both branches have been
duly officered and made ready for business.
This makes a total of 13 branches of Federal
Reserve Banks now in active operation.

365

transferred to the division of audit and examination, where he served as examiner under the
direction of Chief Examiner Broderick for
about two years. When the Board's division
of foreign exchange was organized he was
transferred to duty in its New York office and
has continued there up to the present date.

Directors of Branch Banks.
The Federal Reserve Board on March 28 announced the following as directors of the El
Paso branch of the Federal Reserve Bank of
Dallas:
Appointed by the Federal Reserve Board:
W. W. Turney and A. P. Coles.
Appointed by the Federal Reserve Bank:
Sam R. Lawder, U. S. Stewart, and A. F. Kerr.
On April 13 the names of the directors for
the Salt Lake City branch of the Federal Reserve Bank of San Francisco were announced,
as follows:
Appointed by the Federal Reserve Board:
Joseph L. Rawlins, Salt Lake City; G. G.
Wright, Idaho Falls.
Appointed by the Federal Reserve Bank:
L. H. Farnsworth, Salt Lake City; R. T. Badger, Salt Lake City; W. A. Day, San Francisco.

License to Collect Securities of Alien Enemies
in France and Great Britain.
The War Trade Board on April 15 issued the
following statement to the press:
The War Trade Board has issued a general
license authorizing dealers in the United
States to collect securities or coupons held by
official custodians of the property of alien
enemies in France and Great Britain without
requiring, in connection with such collection,
the forms of declaration of no enemy interest
required by the President's Executive order of
January 26, 1918. In lieu of such declaration,
it is directed that there be filed a declaration to
the effect that the said securities are in the
official custody of the official custodians of
France or Great Britain; and this declaration
must be filed either by the collecting dealer
in the United States or by a correspondent in
France or Great Britain who has signed the
declaration of foreign correspondents required
by the Executive order of January 26, 1918, or
by the official custodian of the property of
alien enemies in said countries.
This action has been taken for the reason
that when securities are held by official custodians of the property of alien enemies, the collecting agencies are not in a position to make
the declaration of no enemy interest required
by the Executive order of January 26, 1918.

Assistant Secretaryship of the Board.

New Issue of Treasury Certificates.

The resignation of Mr. Sherman P. Allen,
effective April 1, has been accepted by the
Board with regret, and Mr. Louis C. Adelson
has been elected as his successor, effective
May 15. Mr. Allen has served as assistant
secretary of the Board since September, 1914.
Mr. Adelson came to Washington, as secretary
to Mr. W. P. G. Harding, at the time of the
Board's organization, and continued in that
capacity for eighteen months, being then

Secretary McAdoo on April 15 authorized
the following announcement:
"The Secretary of the Treasury, under
authority of the act approved September
24, 1917, as amended by the act approved
April 4, 1918, offers for subscription at par
and accrued, interest through Federal Reserve
Banks a minimum of $500,000,000 Treasury
certificates of indebtedness, payable July 18,
1918, with interest at the rate of 4J per cent
per annum from April 22, 1918. Applications




366

MAY 1, 1918.

FEDERAL RESERVE BULLETIN.

will be received at the Federal Reserve Banks. expected, will be the last offering of Treasury
Subscription books will close at the close of certificates of indebtedness in anticipation of
the third Liberty loan.
business April 25.
"As fiscal agents of the United States FedMINIMUM DENOMINATION $500.
eral Reserve Banks are authorized and requested to receive subscriptions up to an ag"Certificates will be in denominations of gregate in each district, as follows:
$500, $1,000, $5,000, $10,000, and $100,000. Boston
$35,000,000
Said certificates shall be exempt both as to New York
175,000,000
38,000,000
principal and interest from all taxation now Philadelphia.
Cleveland
46,000,000
or hereafter imposed by the United States, any Richmond
18, 000,000
State or any of the possessions of the United Atlanta
15,000.000
States or by any local taxing authority, except Chicago
62,000^ 000
23,000, 000
(a) estate or inheritance taxes and (jb) grad- St. Louis
15.000,000
uated additional income taxes, commonly Minneapolis
Kansas City
26, 000,000
known as surtaxes, and excess-profits and war- Dallas-...."
15,000,000
profits taxes, now or hereafter imposed by the San Francisco
33,000,000
United States upon the income or profits of
"Payment at par and accrued interest for
individuals, partnerships, associations, or cor- certificates allotted must be made on and
porations. The interest on an amount of after April 22 and on or before April 25.
bonds and certificates authorized by said act After allotment and upon payment Federal
approved September 24, 1917, or by said act as reserve banks will issue interim receipts pendamended by said act approved April 4, 1918, ing delivery of the definite certificates. Qualithe principal of which does not exceed, in the fied depositaries will be permitted to make
aggregate, $5,000 owned by any individual, payment by credit for certificates allotted to
partnership, association, or corporation, shall them for themselves and their customers up
be exempt from the taxes provided for in to an amount for which each shall have
clause (6) above.
qualified in excess of existing deposits when so
notified by Federal Reserve Banks. Payment
REDEEMABLE ON OR AFTER MAY 9.
for certificates allotted upon this offering may
"Upon 10 days' public notice, given in such be made at the holder's option in United
manner as may be determined by the Secre- States Treasury certificates of indebtedness
tary of the Treasury, this series of certificates dated January 22, 1918, and maturing April
may be redeemed as a whole at par and ac- 22, 1918, at par with adjustment of accrued
crued interest on or after May 9, 1918. The interest.
"The issue of a minimum of $500,000,000
certificates of this series, whether or not called
for redemption, will be accepted at par with an United States Treasury certificates of indebtadjustment of accrued interest to May 9, 1918, edness dated April 10, 1918, was oversubif tendered on May 4, 1918, in payment on the scribed. The Federal Reserve districts of
subscription price then payable of any bonds Richmond and St. Louis were the only disof the third Liberty loan subscribed for by tricts which did not equal or exceed their
and allotted to holders of such certificates. tentative cjuota. The following is a list of
The certificates of this series, unless called for the tentative quota by districts and a list of
previous redemption, will be accepted at par the subscriptions allotted:
with an adjustment of accrued interest if tenSubscripdered on July 18, 1918, in payment on the
Tentative
"District.
tions '
quota.
allotted.
subscription price 7 then payable of any bonds
of the third Libert} " loan subscribed for by and
allotted to holders of said certificates. The Boston
I $33,000,000 839,731,000
175,000,000 215, 448,000
certificates of this series will not be accepted New York
Philadelphia
38,000,000 38, 000,000
000,000
Cleveland..
46,000,000
in payment of taxes.
219,000
Richmond
18,000,000 u;
RIGHT RESERVED TO REJECT.

"Theright is reserved to reject any subscription and to allot less than the amount of certificates applied for and to close the subscriptions at any time without notice. This, it is




Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas..
San Francisco..
Ttnllnn

Total.

I
!
i
|
'

I t "

15,000,000
._,.__,_.._
62,000,000
25,000,000
15,000,000
25,000,000
15,000,000
33,000,000
l\IV\

M\t\

17, 095,000
65, 850,000
181,000
21, 600,000
15,
25 000,000
16, 602,500
500,000

500,000,000 I 551,226,500

MAY

1, 1918.

FEDEBAL EESERVE BULLETIN.

Collection and Payment of Cheeks.
The following opinion, relating to charges for
the collection and payment of checks cleared
through a Federal Reserve Bank, has been
rendered hj the Attorney General of the United
States:
MABOH 21,

1918.

Sm: YOU have requested my opinion as to
whether the limitations contained in section
13 of the Federal Reserve Act relating to
charges for the collection and payment of
checks can be held to apply to State banks
which are neither members of the Federal
Reserve system nor depositors in Federal
Reserve Banks.
As originally enacted, the first paragraph of
section 13 reads as follows:
Any Federal Reserve Bank may receive from
any of its member banks, and from the United
States, deposits of current funds in lawful
money, national-bank notes, Federal Reserve
notes, or checks and drafts upon solvent member banks, payable upon presentation, or,
solely for exchange purposes, may receive from
other Federal Reserve Banks deposits of current funds in lawful money, national-bank
notes, or checks and drafts upon solvent member or other Federal Reserve Banks, payable
upon presentation.

367

drawn upon member banks or upon other
Federal Reserve Banks.
The acts of September 7, 1916, and June 21,
1917, so amended the first paragraph of section 13 as to extend the clearing and collection
facilities of the Federal Reserve system to
include checks and drafts generally, to make
these facilities directly available to nonmember banks and to establish the limitations as to
charges referred to in the question submitted.
The paragraph as so amended reads as follows:

Any Federal Reserve Bank may receive from
any of its member banks, and from the United
States, deposits of current funds in lawful
money, national-bank notes, Federal Reserve
notes, or checks and drafts, payable upon
presentation, and also, for collection, maturing
notes and bills; or, solely for purposes of
exchange or of collection, may receive from
other Federal Reserve Banks deposits of
current funds in lawful money, national-bank
notes, or checks upon other Federal Reserve
Banks, and checks and drafts, payable upon
presentation within its district, and maturing notes and bills payable within its district; or. solely for the purposes of exchange
or of collection, may receive from any nonmember bank or trust company deposits of
current funds in lawful money, national-bank
notes, Federal Reserve notes, checks and
drafts payable upon presentation, or maturing notes and bills: Provided, Such nonIn section 16, apparently as the basis of a member bank or trust company maintains
system of check clearing or collection, it is with the Federal Reserve Bank of its district a
provided that Federal Reserve Banks shall balance sufficient to offset the items in transit
held for its account by the Federal Reserve
receive on deposit at par checks and drafts on Bank: Provided further, That nothing in this or
member and other Federal Reserve Banks; any other section of this act shall be construed as
and the Federal Reserve Board is authorized prohibiting a member or nonmember bank from
to fix by rule the charges to he collected by mem- making reasonable charges, to be determined and
ber banks from patrons whose checks are cleared regulated by the Federal Reserve Board, but in
no case to exceed 10 cents per $100, or fraction
through the Federal Reserve Bank and any thereof, based on the total of checks and drafts
charge for the service of clearing or collection presented at any one time, for collection or payment of checks and drafts and remission therefor
rendered by the Federal Reserve Bank.
It will be noted that under the first paragraph by exchange or otherwise; but no such charges
made
of section 13 in its original form the only classes shall bemine.] against the Federal Reserve Banks.
Italics
of banks which might be depositors in and thus
The limitations as to charges referred to in
clear through a Federal Reserve Bank were its
member banks and other Federal Reserve the question submitted are contained in the
Banks, and the only checks and drafts specified second proviso quoted above. This proviso,
as receivable on deposit were checks and drafts apparently recognizing an existing right of




368

FEDERAL RESERVE BULLETIN.

member and nonmember banks to make reasonable charges for the collection or payment
of checks and drafts and remission therefor by
exchange or otherwise, provides (1) that these
charges are " t o be determined and regulated
by the Federal Reserve Board, but in no case
to exceed 10 cents per $100," but (2) that "no
such charges shall be made against the Federal
Reserve Banks.
Cleariy these limitations apply to national
banks which are compelled to be member
banks, to such State banks as become member
banks by voluntarily accepting the terms and
provisions of the Federal Reserve Act, and to
such other State banks as do not become
member banks but by becoming depositors in
Federal Reserve Banks upon the conditions
specified avail themselves directly of the
facilities of the Federal Reserve clearing system.
The specific question to be determined is
whether these limitations apply to nonmember
State banks which do not become depositors
but checks upon which may pass through Federal Reserve Banks in process of clearing or
collection.
The theory and scheme of the Federal
reserve legislation seems inconsistent with the
purpose on the part of Congress to subject
State banks against their will to Federal control
or regulation. State banks are not compelled
to become members of the Federal Reserve
system or depositors therein. Those possessing
the necessary qualifications are, however, invited to become members. They are not only
free to accept or decline, but if they accept
remain at liberty to withdraw from the system.
(Sec. 9.) By section 13 as amended, State
banks not desiring to become members or too
small to be eligible for membership are likewise
invited to share in the clearing and collection
facilities of the system by becoming depositors
in Federal Reserve Banks. But they may
accept or reject the invitation, and if they
become depositors may close their accounts at
their pleasure.
It would accordingly seem that the limitations referred to ought not to be regarded as




MAY 1,1918.

intended to be imposed upon State banks notconnected with the Federal Reserve system as
members or depositors, against the will of such
banks, unless that intention clearly appears.
The term "nonmember bank" as used in the
proviso may reasonably be construed as referring to a nonmember bank that has become a
depositor as authorized in the preceding provisions of the paragraph. If this term is so
construed, obviously the provision requiring
charges "to be determined and regulated by
the Federal Reserve Board, but in no case to
exceed 10 cents per $100," will have no application to nonmember State banks which are
not depositors in a Federal Reserve Bank.
The broad language of the concluding clause,
"no such charges shall be made against the
Federal Reserve Banks," may be construed not
as directed against State banks which are not
depositors but merely as specifying a condition upon which checks may clear through the
Federal Reserve Banks—in effect a prohibition
against the payment of such charges by the
Federal Reserve Banks.
Under this construction, member banks and
nonmember banks which are depositors in the
Federal Reserve Banks will be subject to the
limitations in the proviso, but nonmember
banks which are not depositors will not be subject to the limitations. All, however, will
have to adjust their charges among themselves
and with their own depositors, the Federal
Reserve Banks being prohibited from paying
such charges.
This construction seems to be in harmony
with the intention of the framers of the amendment to section 13 embodying the abovementioned proviso.
The act of June 21, 1917, amending section
13 and other sections of the Federal Reserve
Act, as originally introduced in both the House
and Senate contained no part of the (second)
proviso, the section in the proposed amended
form ending with the preceding proviso. The
Senate, adopting an amendment offered by
Senator Hardwick, added the second proviso
in the following form:

MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

Provided further, That nothing in this or
any other section of this act shall be construed as prohibiting a member or nonmember
bank from making reasonable charges, but in
no case to exceed 10 cents per $100 or fraction
thereof, based on the total of checks and drafts
presented at any one time, for collection or
payment of checks and drafts and remission
therefor by exchange or otherwise. (55 Cong.
Rec, 1988.)
It was thought the effect of the Hardwick
amendment would be to recognize the right
of any bank upon which checks are drawn to
make charges against the Federal Reserve
Bank through which such checks might be
cleared or collected. The Hardwick amendment was opposed by the Federal Reserve
Board, as appears from letters from its governor to Senator Owen and Congressman Glass,
chairmen of the respective Committees on
Banking and Currency of the Senate and
House. (Pp. 1984, 3527.) The President also
called attention to the seeming effect of the
amendment in a letter to Senator Owen, reading as follows:

369

charges shall be made against the Federal
Reserve Banks."
In presenting the conference report to the
Senate, Senator Owen emphasized the importance of not interfering with the clearing functions of the Federal Reserve Banks, explained
that under the proviso as amended—
the banks can charge each other for making
these accommodations if they like, and they can
adjust that to their own, satisfaction with one
another, without troubling the reserve banks,
and apparently conceded that State banks
not connected as members or depositors with
the Federal Reserve system could not be subjected to Federal legislation. (P. 3761.)
Mr. Glass, in presenting the report to the
House, said:
The Congress has no control whatsoever
over nonmember banks. It can not regulate
their charges and will not regulate them if this
Hardwick amendment should prevail. * * *
This House has no control over the nonmember
bank in this matter. Even the Federal Reserve Board has no control over their operations unless they voluntarily join the volunI have been a good deal disturbed to learn tary collection system established by the Fedof the proposed amendment to the Federal eral Reserve Board. (P. 3526.)
Reserve Act which seems to contemplate
And, further—
charging the Federal Reserve Banksfor payment
of checks cleared hy them, or charging the payee No nonmember bank that does not volunof such checks passing through the reserve tarily join the collection system established by
banks with a commission. I should regard the Federal Reserve Board will be specifically
such a provision as most unfortunate and as affected. No law that we pass here can
almost destructive of the function of the Fed- directly affect them. The only way they can
eral Reserve Banks as a clearing house for be affected is incidental. (P. 3528.)
member banks, a function which they have
It thus seems clear that the proviso was
performed with so much benefit to the business
understood by Congress as designed to protect
of the country.
I hope most sincerely that this matter may the clearing functions of the Federal Reserve
be adjusted without interfering with this in- Banks and not directed at State banks which
dispensable clearing function of the banks. have no connection as members or depositors
(P. 3761.)
with the Federal Reserve system and upon
In conference, apparently as the result of which it was considered the effect of the proviso
the letters of the Governor of the Federal could be only incidental.
It may be argued and is probably true that
Reserve Board and the President, the proviso
took its present form, two changes being made the proviso will necessarily affect the practice
by the conferees: First, the charges which of State banks, though not members or deposmember or nonmember banks may make were itors, as to making charges for the payment of
made subject "to be determined and regulated checks drawn upon them. With the concenby the Federal Reserve Board"; and second, tration of reserve balances in Federal Reserve
the final clause was added, "but no such Banks, as required by the Federal Reserve Act,




370

FEDERAL RESERVE BULLETIN.

the Federal Reserve clearing system may offer
the only adequate and convenient facilities for
clearing or collecting checks drawn upon
banks at a distance, and depositors may find
it inadvisable to maintain accounts with banks
upon which checks can not be cleared or collected by the use of these facilities.
The Federal Eeserve Act, however, does not
command or compel these State banks to forego
any right they may have under the State laws
to make charges in connection with the payment of checks drawn upon them. The act
merely offers the clearing and collection facilities of the Federal Reserve Banks upon specified conditions. If the State banks refuse to
comply with the conditions by insisting upon
making charges against the Federal Reserve
Banks, the result will simply be, so far as the
Federal Reserve Act is concerned, that since
the Federal Reserve Banks can not pay these
charges they can not clear or collect checks on
banks demanding such payment from them.
From what has been said it follows that in my
opinion the limitations contained in section 13
relating to charges for the collection and payment of checks do not apply to State banks not
connected with the Federal Reserve system as
members or depositors. Checks on banks making such charges can not, however, be cleared
or collected through Federal Reserve Banks.
Respectfully,
T. W. GREGORY,

Attorney General.
The PRESIDENT,

The White House.
As this issue goes to press there is received
from the Attorney General under date of April
30 the following letter supplementary to the
foregoing opinion:
MY DEAR GOVERNOR : I acknowledge receipt
of your letter of the 19th instant with reference
to my opinion of March 21, 1918, holding that
Federal Reserve Banks are prohibited from
paying the charges for collection and payment
of checks and drafts mentioned in the first
paragraph of section 13 of the Federal Reserve
Act.
In a memorandum by the general counsel of
the American Bankers Association, which you
inclose, the point is raised that the prohibition




MAY 1,1918.

against the charges referred to must be confined to checks owned by the Federal Reserve
Bank as distinguished from checks deposited to
be cleared or collected for the account of a member or depositor.
You ask to be advised whether the Board
correctly interprets my opinion as implying that
no such distinction can be recognized and that
no member bank can under any circumstances
make any charge against its Federal Reserve
Bank in connection with the collection or payment of checks deposited with the Federal
Reserve Bank as provided in the paragraph
mentioned.
The reason for the suggested distinction is
not apparent. I do not understand why checks
deposited with a Federal Reserve Bank to be
cleared or collected can not be considered as
owned by the bank.
As the basis of the check clearing system contemplated by the Federal Reserve Act, the
Federal Reserve Banks are required by section
16 tolireceive on deposit at par" unconditionally,
the checks therein specified drawn on Federal
Reserve and member banks. If the phrase
"receive on deposit" is given its ordinary signification, it seems clear that the Federal Reserve Bank becomes the owner of the checks
so deposited, title to the checks passing to that
bank and the depositors receiving immediate
credit therefor. (Burton v. United States, 196
U. S., 283; Security National Bank v. Old
National Bank, 241 Fed., 1, and cases therein
cited at pages 10 to 12.)
The first paragraph of section 13, as amended
to extend the clearing facilities of the Federal
Reserve Banks to nonmember banks and to
include checks generally, requires each nonmember bank availing itself of these facilities
to maintain with the "Federal Reserve Bank
of its district a balance sufficient to offset the
items in transit held by the Federal Reserve
Bank." As so amended the paragraph may be
regarded as at least authorizing the Federal
Reserve Bank to receive on deposit from nonmember depositors as well as from member
banks all classes of checks to be cleared or collected, taking the title thereto and giving credit
therefor to the depositing banks.
As a Federal Reserve Bank may thus become
the owner of all the checks cleared or collected
through it, there appears to be no basis in the
act for drawing a distinction between checks
owned by the Federal Reserve Bank and checks
deposited with it to be cleared or collected.
But even if the checks received could be
classified on the basis suggested, the language

FEDERAL RESERVE BULLETIN,

, 1918.

371

Development of the Collection System.
of the paragraph seems to preclude the idea
of excluding checks deposited to be cleared or
The following letter, sent out by the Federal
collected from the checks as to which charges
Reserve Board under date of April 5 to Federal
are prohibited.
The charges which the Federal Reserve Reserve Banks, gives the substance of the
Banks are prohibited from paying by the final changes made by the Board in the existing
clause, "no such charges shall he made against practice as to collection at Federal Reserve
the Federal Reserve Banks" obviously include
the " charges * * * for collection or pay- Banks, and indicates some of the important
ment of checks and drafts and remission there- developments in the general collection system:
for by exchange or otherwise" mentioned in
The Federal Reserve Board has carefully
the preceding clause. The checks authorized considered the report submitted by the transit
by the paragraph to be deposited with the managers of the Federal Reserve Banks, inFederal Reserve Bank, upon being received dorsed by the governors of the banks, which
by that bank, are to be collected from and paid was discussed in conference in Washington
by the banks upon which they are drawn. To recently, and has reached the following consay that charges in connection with the pay- clusions:
ment of these checks made by the banks drawn
1. The Board approves the recommendation
upon and collected from the Federal Reserve to suspend, or eliminate for the time being,
Bank are not made against that bank seems service charges for the collection of cash
to do violence to the ordinary meaning of the items; this elimination of charges to apply to
words used, regardless of whether the charges checks received from member banks and from
are ultimately borne by it or subsequently other Federal Reserve Banks and to become
transferred to the banks by which the checks effective on and after June 15, 1918.
were deposited.
2. The Board approves the recommendation
Moreover, the legislative history of the that the 10-cent charge on collection items
amendment as referred to in the opinion shows between Federal Reserve Banks and their
clearly that the prohibition was directed member banks be eliminated for the present
primarily against the making of charges in and until further notice, but that a charge of
connection with the clearing of checks. It 15 cents per item be made on all such items
was a proposed amendment to the Federal returned unpaid, this rule to become effective
Reserve Act which apparently contemplated June 15, 1918.
"charging the Federal Reserve Banks for pay3. The Board approves the recommendation
ment of checks cleared by them" that the that telegraphic transfers be bought and sold
President opposed in his letter to Senator at par, each Federal Reserve Bank absorbing
Owen. And it was to prevent the possibility the telegraphic expense, but with the proviso
of such charges being made that the final that checks on other Federal Reserve cities or
clause was added, which, as explained by Federal Reserve branch cities be taken at par,
Senator Owen, prevented "troubling the re- subject only to deferred availability in accordserve banks" or "interfering with the clearing ance with regular time schedules,
of checks at par by the reserve banks." (55
4. The Board approves in principle the
Cong. Rec, p. 3761.)
recommendation that the discount rate on
I construe the first paragraph of section 13 mail transfers shall be based upon the 15-day
as prohibiting member banks under any rate, but, because it is desirable that the rate
circumstances from making the charges therein for such transfers shall remain as nearly unireferred to against Federal Reserve Banks.
form as possible and not vary too frequently,
You are accordingly advised that the inter- suggests that for the time being and until
pretation placed by the Board upon my further notice a charge of 10 cents per day per
opinion of March 21 is correct.
thousand, or at the rate of 3.65 per cent, be
Respectfully,
fixed as the rate for all mail transfers.
(Signed)
T. W. GREGORY,
5. The Board approves the recommendation
Attorney General.
of the transit managers, indorsed by the govHon. W. P. G. HARDING,
ernors, "that all mail transfers to banks in
Governor, Federal Reserve Board,
other Federal Reserve cities be made by draft
Washington, D. C.
on the Federal Reserve Bank and sent direct




55543—18

3

372

FEDilEAL BESEBVE BULLETIN.

to the bank to which the transfer is ordered,
rather than to the Federal Reserve Bank."
6. The Board approves the suggestion that
there shall be a general revision of all time
schedules, effective June 15, 1918, whioh shall
take into consideration recent changes in mail
train schedules, and the creation of new collection centers at branch bank cities.
7. The Board approves the recommendation
that " trade acceptances," wherever payable,
be handled as collection items, not as checks or
cash items, but suggests that "bankers7 acceptances" be treated as cash items.
The Board has under consideration and
expects to approve within a few days a plan
for linking together by private telegraph
system the 12 Federal Reserve Banks with its
office at Washington, and expects to have these
additional facilities available within a short
time.
A number of other recommendations relating
to details and standard accounting methods
have not been considered by the Board and
are left for your determination.

National Banks and the Liberty Loan,
The Comptroller of the Currency, on April 17}
authorized the following statement:
The opening of the third Liberty loan finds
the national banks of the country splendidly
prepared to play a big part in making this loan
a success.
The subscriptions which were sent in by the
national banks of the country to the first and
second Liberty loans for themselves and for
their customers aggregated the vast sum of
$4,175,000,000; and there were allotted to the
national banks on the subscriptions thus sent
in by them a total of $3,090,000,000 of bonds
of the first and second Liberty issues. These
huge subscriptions were practically paid in full
many weeks ago.
On March 5, 1917, the total deposits of the
national banks of the country amounted to
$12,957,000,000. Since that date the Secretary of the Treasury has sold and collected for
$5,808,000,000 of Liberty bonds, of which sum
nearly three-fifths were taken by the national
banks of the country and their customers.
And yet, after making settlements for these
huge investments, the reports of the national
banks for March 4, 1918, show that their
deposits were not only not diminished on




MAY 1,1918.

account of withdrawals to pay for Liberty
bonds, but the national banks show in the
period from March 5, 1917, to March 4, 1918,
an actual increase in deposits of $1,480,589,000.
The total resources "of the national banks
between March 5, 1917, and March 4, 1918,
increased $2,035,789,000, and amounted on
the latter date to $18,014,911,000.
The deposits of the national banks on
March 4, 1918, show very little change as compared with December 31, 1917, there being a
total reduction of $6,920,000 in deposits; but
loans and discounts in the same period show a
reduction of $251,611,000.
The national banks were never in a better
position to assist in the placing of a great Government loan than they are at this time. Their
total resources are now about $2,000,000,000
in excess of what they were when the firstLiberty loan was offered in the summer of 1917;
and the records show that the great bulk of
Liberty bonds which these banks placed have
passed on to permanent investors and to customers who have been able to pay for their
bonds and carry them without finding it necessary to borrow money upon them.
The national banks report that on March 4,
1918, the total amount of 3£ per cent Liberty
bonds held by them amounted to only $86,577,000. The total amount of 4 per cent Liberty bonds owned by them on the same date
was $347,161,000, making the total amount of
Liberty 3 J per cent and 4 per cent bonds owned
by national banks $433,738,000, which is only
about 7 per cent of the total of Liberty bonds
issued to date.
The amount of money loaned by national
banks on the 3 \ per cent and 4 per cent Liberty
bonds was reported on March 4, 1918, at
$299,684,000. The amount of Liberty bonds
owned by the national banks of the country
plus the money which they are lending on Liberty bonds is therefore only $733,422,000.
The Government has in the past 12 months
sold and collected for $5,880,000,000 of Liberty
bonds. We therefore find that the people of
the country have bought and paid for over
$5,000,000,000 of Liberty bonds exclusive of
all bonds owned by national banks or bonds
upon which national banks are lending money.
Except in so far as the holders of some of these
bonds may be borrowing on them from State
banks or trust companies or elsewhere, this
great sum may now be regarded as held for
investment.
It is a tribute to the solidity and a powerful
evidence of the success of our banking system

1018.

FEDERAL RESERVE BULLETIN.

873

that these gigantic transactions have been car- the board of directors; (b) to conduct elecried through without creating the slightest tions of directors; and (c) to transfer "public
flurry or derangement in the money market. stock," i. e. stock held by subscribers other
?
Despite the large withdrawals which were necessary in order to pay for the new Liberty bond than member banks.
These appear to be the only specific duties
issues, the deposits of the national banks actually increased,, as compared with their deposits and powers vested by the act in any officer conmade prior to the offering of the first Liberty nected with the bank. All other powers are
loan, about a billion and a half dollars, as conferred by the board of directors, which is
shown by their sworn reports of March 4, 1918, expressly authorized to appoint such officers
while total resources, as shown above, are
and employees as it deems necessary and to
nearly two billion dollars greater.
In addition to the investments by national define their duties.
banks in the 3 J per cent and 4 per cent Liberty
FEDERAL RESERVE AGENT.
bonds, these banks also held on March 4, 1918,
United States certificates of indebtedness aggre- | The duties of the Federal Reserve agent are
gating $876,917,000, which the banks can j
largely utilize, if they should care to do so, in j defined in detail by the statute. Under the
making subscriptions for themselves and their : terms of the act he is the official representative
customers to the third Libertv loan.
; of the Federal Reserve Board in the exercise
of its supervisory powers over the bank, and
Organization of Federal Reserve Banks.
: all of his duties are performed in the capacity
of a representative of the United States rather
On behalf of the Federal Reserve Board, than in the capacity of an officer of the bank.
Governor Harding on March 25 transmitted to It will be observed that the statute provides that
all Federal Reserve Banks an outline of organi- the duties of the Federal Reserve agent shall be
sation of Federal Reserve Banks, together with in addition to his duties as chairman of the
a typical chart, requesting that it be brought to board of directors of the Federal Reserve Bank.
the attention of the board of directors with the
The chairman of the board and Federal
request that it consider making any changes in Reserve agent is appointed by the Federal
by-laws necessary to carry into effect the plan Reserve Board, and the chief executive officer
of organization proposed.
or manager of the bank, who has been styled
"governor," is elected by the directors of the
OUTLINE OF ORGANIZATION OF FEDERAL
RESERVE BANKS.
; bank, two-thirds of whom are chosen by the
While the office of chairman of the board of j member banks, and he derives his authority
directors and that of the Federal Reserve agent from the board of directors.
In accordance with the evident intent of the
are by statute required to be held by one and
act, the following division of functions in the
the same person, the duties and responsibilities
of the two offices are separate and distinct. organization and administration of Federal
The holder of these offices occupies, therefore, Reserve Banks is suggested: (1) Administraa dual capacity in relation to the Federal tive, supervisory, and advisory; (2) managerial and executive.
Reserve Bank.
The first of these functions is governmental
CHAIRMAN OF THE BOARD.
in character and is performed by the chairman
Under the terms of the act the chairman of of the board and the Federal Reserve agent,
the board must be a person of " tested banking who acts as the official representative of the
experience," and it is evidently contemplated Federal Reserve Board and who is required by
that he should be qualified to judge intelligently law "to maintain * * * a local office of
as to the efficiency and orderly conduct of the said board on the premises of the Federal
management of the bank. In so far as his Reserve Bank/'
duties as chairman of the board are specifically
The second group of functions belong? to the
defined, they are (a) to preside at meetings of governor of the bank, subject to such limita-




-or

TYPICAL 0BQAIXZA.TI0H QB&SS BOB FEDSBAL BE^RVE
One or more Assistant Federal
Reserve % *

Glaairsaaa of the Board
of Diractors aM
Federal Beserve Agent

Board of Directors
Kxeoutlve Committee

L

±T

General
Auditor
Staff

(Law Work
(Surety Bonds
(insurance

Governo?
(a)

CasMer

P

1
Staff of
Examiners
and

Credits
and
Credit
Files

fiscal

Assistant
CasMer
Depart-




(a)

Transit
Boole-

nents
(o)

Notesi

Assistant

Money
Tellersf

Co)

of
Federal
Raserre

Etc.

Instead of malting tfte position of Secretary an independent one* i t raay be
combined as part of tbe Gb&lnDaa9? staff or with the Counsel's Staff*

[h] l^ie number of Deputy OoTeJmoi^ slxouicl be adjusted to tlie buslixess of tha
(o)

§p& or Kiore Assistant CasMers*

1, 2918.

FEDEBAL BESEBVE BULLETIN.

tions as may be prescribed by the board of
directors.
From the foregoing a chart of organization
has been developed, which is submitted herewith and which may be explained as follows:
EXPLANATION OF ORGANIZATION CHART.

I. The chairman and Federal Reserve agent,
in his dual capacity, as chairman of the board
of directors of his bank and representative of
the Federal Reserve Board, must have active
supervision of the bank through the auditor, who
will be elected by the board of directors of the
bank and will report to the board through him.
It will probably be found convenient for the
auditor to make his reports in duplicate or
triplicate, so that at least one copy may be
given to the chairman of the board and one
copy to the governor of the bank.
The chairman and Federal Reserve agent
will have on his staff one or more assistant
Federal Reserve agents to aid him in his work
as custodian of the notes of the bank and of
the collateral for which he is responsible.
He will also have on his staff such examiner
or examiners as may be required for the examination of member banks or of State banks desiring admission to the system, operating in
this "respect under direction of the Federal
Reserve" Board at Washington.
The credit files of the bank should be in the
joint custody of the Government's representative^ and the chief executive officer of the bank.
II. The governor, as the chief executive or
managerial officer of the bank, will have direct
charge of the various activities of the bank.
There will be one or more deputy governors, a
cashier, and one or more assistant cashiers who,
under direction of the governor, will have
charge of the various operating departments
of the bank.
III. The auditor of the bank may be styled
"general auditor," or, in the case of the larger
banks, "comptroller."
While this independent officer reports directly to the board of directors, by which he is
elected, and is not on the staff of the chairman
and Federal Reserve agent, he should transmit
his reports through the chairman as the representative of the Board of directors.
No changes in the personnel or salaries of
the auditing department should be made until
submitted for approval through the chairman
to the board of directors.
IV. It is assumed, though it is not mandatory under the law, that the counsel of the
bank should be elected by the board of direc-




375

! tors reporting directly to it as the legal adviser
j of the board, and that he be consulted as oc! casion requires, by the chairman as well as by
| the executive officers of the bank. Inasmuch
! as the Federal Reserve Board from time to
I time makes rulings on questions of law, or
j gives its interpretation of the law, it is obvious
I that the counsel of each Federal Reserve Bank
| should work in absolute harmony with the
; counsel of the Federal Reserve Board.
! V. The board of directors of the Federal
! Reserve Bank will require a secretary, to have
j charge of all its official minutes and records.
| The position may be elective by the board, its
; incumbent reporting directly to the board of
| directors, or it may very properly be merged
! with that of counsel or with that of some memi ber of the chairman's staff. The latter method,
j on the whole, is to be preferred.
Finance, Banking, and Foreign Exchange in
Neutral Countries, 1914-1917.
In continuation of similar figures for the belligerent countries shown in the April BULLETIN,
there are presented below principal financial
and banking data regarding the six neutral
countries in Europe. Data given on page 269
of the April BULLETIN indicate the large gains
between July, 1914, and the end of 1917 in the
metallic reserves of their central banks of issue,
which for all the six countries amount to about
145 per cent. During the same period the banknote circulation of these countries more than
doubled, while deposits at their central banks
of issue increased by over 160 per cent. On the
whole, the financial position of these countries,
notwithstanding the substantial increases in
their public debts and in national taxation,
shows considerable improvement since the outbreak of the war. As the result of the large
demand for their products and the severe restrictions on the supply of materials and merchandise formerly drawn from the belligerent
countries, large credit balances were built up in
the trade with most of the belligerent nations
which could not be liquidated by the shipments
of gold, partly for the reason that the central
banks in the neutral countries themselves very
soon began to discourage such imports. This
attitude was most emphatic in Sweden and
Spain, where gold is taken by the banks only

376

MAY 1,1913.

FEDERAL RESERVE BULLETIN.

at a substantial discount. Vicissitudes in the
foreign trade as well as in the military situation
are some of the factors, though not the only
ones, responsible for the remarkable changes
in the exchange rates, both on belligerent and
on other neutral countries, shown for each of
the countries comprised in the following discusssion.
Public debts of neutral European countries.
[In thousands of dollars.]

Country.

"Before the outbreak of
the "war.
Date.

Denmark
Netherlands
Norway
Spain
Sweden
Switzerland
Total

Amount..

Mar. 31,1914
Jan. 1,1914
June 30,1914
Jan. 1,1914
.....do
do

96,716
i 469,538
95,782
1.888,442
'166,846
23,230

At most recent date.
Date.
Mar.
Jan.
June
Jan.
June
Nov.

Amount.

31,1917 ! 157,875
1,1918 • 2752,527
30,1916 j 133,574
1,1918 i 1,987,454
30,1917 l y 260,120
30,1917 I 187,876
! 3,489,426

2,745,554

1 Inclusive of floating debt of 19,62-1,000 norins(87,888,848) on Jan. 17,1914.
2 Inclusive of floating debt of 287,362,000 florins ($115,519,524) on Nov.
17, 1917. This figure does not embrace borrowings that may have been
contracted during the last year or so.
3
Partial estimate by adding to the figure of Dee. 31, 1915, which was
812,608,666 crowns ($217,779,122), the anticipated receipts from loans as
estimated in the budgets for 1916 and 1917.

SWEDEN.
[Source: Statistisk Arsbok for Svorige, 1917.]

On December 31, 1913, the public debt of
Sweden stood at 622,560,572 crowns, or approximately $166,846,233. By December 31,
1915, it had risen to 812,608,666 crowns, or
approximately $217,779,122. If to the indebtedness on the latter date there are added
the estimated receipts from loans as contained
in the budgets for the financial years 1916 and
1917, the approximate debt on June 30, 1917,
was 950,000,000 crowns, or $255,000,000 in
round numbers.
On December 31, 1913, the assets of the
State were 1,476,447,878 crowns; at the end
of 1914, 1,541,760,670 crowns, and on December 31, 1915, they were 1,659,119,664 crowns.
The excess of assets over liabilities thus declined slightly, from 853,887,306 crowns at the
end of 1913 to 846,510,998 crowns at the end
of 1915.
Receipts and expenditures for the last five
years are given below:

Receipts.

Duties.

Crowns.

•

197,029,429 :.
190,177,652
279,522; 582 !
216,700,000
239,150,000

1913
1914
1915....
1916 i
19171

: Net income'
I from Gov- i Miscellai eminent j
neous.
• enterprises.!

Crowns.
6,804.646
7,932)977
9,132,499
7,568.600
7.471)300

• Crowns. \
! 52,998,427 |
57,415,824 I
! 70,647,126 \
: 62.375,000 I
! 65)663,000 i

Crowns.
7,405,720
5,875,193
5,585', 296
6,488) 600
8,075,000

Total revenue.

Receipts I Grand total
from loans, j of receipts,

Crowns. : Crowns.
264,238,222 \ 40,428,793
261,401,646 ; 37,704,500
364,887,453 ! 49,345,400
293,132,200 j 53,675,000
320,359,300 : 104,314,300

Crowns,
305,910,179
299,980,932
415,357,962
400,682,400
446,995,100

Expenditures.
Juno 30—

1913
1914
1915
19161
19171




War Depart- Navy De- Other department.
partnient.
ments.
Crovms.
Crowns.
61,044,161 25,716,752 \
55,380,179 31,803,718 |
73,095,100 I 35,425,581 I
104,123,700 I 40,470,600 !
112,234,500 | 45,230,200 I
i Budget estimates.

Crowns.
122,495,272
135,622,279
182.944,707
191,635,100
193,338,200

Total ordinary expenditures.
Crowns.
209,856,185
222,806,176
291,465,388
336,229,400
350,852,900

i Grand tota:

Crowns.
56,373,134
54,275,920
132,785,750
84,453,000
96,142,200

Crowns,
266,229.319
277,082,096
424,251,138
400,682,400
446,995,100

MAY

1, 1918.

377

FEDERAL RESERVE BULLETIN.

an excess of 125 millions. Against the portion
j not covered by gold the bank must hold—
Between June 30, 1914, and the end of 1917 i (a) Easily marketable public securities.
the Kiksbank increased its gold reserve from ; (6) Mortgage bonds and like securities quoted
105.4 to 244.5 million crowns (1 crown = 26.8 I on foreign exchanges.
cents nominal). Its note circulation went up I (c) Gold coin or bullion held abroad or in
from 239 to 572.2 millions, while the ratio of j transit, when insured against maritime risk.
gold to aggregate deposit and note liabilities ! (d) Bills payable within the country or
decreased from 35 to 32 per cent. Changes in | abroad.
the principal assets and liabilities appear from | (e) Net balances due from foreign banks and
the following statement of condition of the | bankers.
bank on June 30, 1914, and at the end of the ! (/) Loans secured by public securities and
last five years.
I mortgage bonds.
CONDITION OF THE SWEDISH RIKSBANK.

Balance sheet of the Bank of Sweden 1913-1917.
[In kroner of 28.8 cents.]
Dec. 31,1913. Juno 30,1914. Dec. 31,1914.1 Dec. 31,1915. Dec. 30,1916. Dec. 31,1917.
ASSETS.

102,133,021
5,202,537
11,043,100
30,457,529
30,900,881
157,268,004
69,803,570
3,303,033
19,576,830
608,176

Capital
Surplus
Deposits
Due to foreign banks
Notes in circulation
Bank orders.
Dividends due and payable to the Government..
Sundry liabilities
Total
Ratio of gold holdings to combined note and deposit liabilities (per cent)

GOLD POLICY

OF THE

SWEDISH

108,537,
1,888,
13,327,
16,750,
27,575,
174,938,
43,400,
2,505,
12,694,
71,972,

183,519,645
2,338,949
17,170,610
39,070,349
62,969,709
5,691,975
121,622,711
122,413,249
2,497,692
52,898,405
66,389,874

244,457,273
1,600,453
25,209,787
19,149,534
59,855,663
5,538,550
186,344,734
110,128,803
1,396,129
121,296,145
85,031,323

389,594,809

503,590,054 I 549,204,292 I 676,523,168

860,008,394

50.000,000
i 12; 500,000
i 107,899,760
!
5,917,462
I 234,471,580
1,972,323
7,058,000
10,477,556

Total.

105,429,805
5,975,157
7,141,657
54,748,417
28,020,198
2,631.422
98,923; 426
67,486,211
4,128.865
14,976', 260
133,481

430,296,681

Gold coin a n a bullion
Subsidiary coin
Checks and sight drafts
Current account deposits held abroad..
Government securities
Securities of domestic corporations
Bills payable in Sweden
Bills payable abroad
Advances in current account
Other advances
Sundry assets

50,000,000
12,500,000
62,182,250
8,295,272
238,971,258
1 414,459
12,301,084
3,930,576

50,000,000
12,500,000
107,024,388
9,019,331
304,057,554
2,049,208
8,800,000
10,139,573

50,000,000
12,500,000
191,012,726
1,933,608
572,722,994
8,820,717

BANK.

[Sources: Annual Reports of the Swedish IHksbank, 1914-1916. G. M.
Etude sur la depreciation do Tor dans les pays Scandinaves (Itevue
d'Economie politique, 1918, p. 297-303). Wicksell, Prof. X.—The
Scandinavian Gold Policy (Economic Journal, Sept., 1916, pp. 313-318).
Hahn, Albert.—Die Goldpolitik der Bank von Schweden wahrend
des Krieges (Schmoller's Jahrbuch, 1917, N. 2, pp. 53-66).]

According to the bank act of May 12, 1897,
and amendments thereto, the Swedish Kiksbank, an institution owned by the National
Parliament, at the outbreak of the war had
authority to issue notes up to double amount
of its gold holdings, which must not be less than
100 million kronor (1 krona = 26.8 cents), plus




I 50,000,000 ! 50,000,000
I 12,500,000
12,500,000
\ 126,575,286 148,420,420
! 9,954,639
4,810,458
327,885,943 417,517,403
3,597,679
2,608,145
8,120.000
8,760,000
10,920,279
31,557; 208

23,018,349

503,590.054

430,296,681
29.83

124,571,534
2,134,372
18,029,959
51,084,129
52,156,410
5,334,422
113,620,242
91,141,106
2,288,898
24,879,780
63,963,440

549,204,292

676,523,168

860,008,394

26.40

27.41

32.43

32.01

35.01

j As in other countries, the outbreak of the
I war£ caused substantial withdrawals of gold
j from the bank and even larger increases in
I notejissues, as may be seen from the following
I figures taken from the weekly and monthly
I statements of the bank:
Date.

July 25, 1914.
July 31,1914.
Aug. 1,1914..

Gold holdings. Notes in eircution.
Kronor.
\
105,814,100 I
103,974,500 !
102,921,700 I

Kronor.
206,214,200
228,432,700
24.1,777,500

378

FEDERAL EESEEVE BULLETIN.

MAY 1,1918.

According to the act the maximum note The latter procedure, while not causing an
issue permissible on August 1, was 2X102.9 undesirable increase in circulation, would,
millions -f125 millions = 330.8 millions, as however, have seriously affected the earning
against an actual note circulation of 241.8 power of the bank.
millions. Since July 25, when the gold reserve
In view of this peculiar situation the Govshowed a normal total, the loss was about 3 ernment presented to the Chambers a bill
millions, with the demand for gold by depositors amending the existing bank and mint acts,
on the increase.
whereby the Riksbank no longer was obliged
On August 2, 1914, the management of the to buy gold tendered to it and providing also
Riksbank suspended the redemption of notes as a necessary corrollary for the suspension by
in gold and in addition submitted to the legis- royal order of the free and unlimited coinage of
lature an amendment to the bank act, which gold. The bill, which became law on Februbecame law on April 15, 1915, and reads as | ary 8, 1916, reads as follows: 2
follows (sec. 72, par. 3):
In case extraordinary circumstances due to
The Riksbank has the exclusive right to war make it appear imperative, the King, at
issue notes, which are to be legal tender within the proposal of the bank commissioner and
the Kingdom ("som for mynt i riket ma after consultation with the public debt comerkannas")- These notes shall be redeemed missioner, may suspend for a fixed period the
upon demand in gold at their nominal amounts. obligation of the Riksbank imposed by paraHowever, in case of necessity caused by war or graph 10-11 of the bank act of May 12, 1897,
danger of war or serious money crisis, the King of purchasing gold in bars for the purpose of
and the Riksdag together, or when the Riksdag having it coined for its own account. Furis not in session, the King alone, at the proposal thermore, the King may also declare inapplicaof the Riksbank commissioner, and after con- ble for a definite period the provision of parasultation with the commissioner of the Riks- graph 9 of the mint act of May 30, 1873, acgoldskontor (public debt office) may free (the cording to which all persons presenting gold at
the mint shall receive gold com therefor.
bank) of this obligation for a fixed period.1
Suspension of gold payments Jt>y the bank
The law was to remain in force until Februwas sanctioned by royal order of May 11, 1915, ary 4, 1917. The royal order suspending the
to October 1 of the same year, and on that gold purchases by the bank was issued on
date to February 4, 1916. However, gold February 8, 1916, and the order suspending
purchases were resumed by the bank as early the free coinage of gold on April 28, after the
as January 3, 1916.
governments of Denmark and Norway had
Early in 1916 the gold holdings of the bank been induced to adopt the same policy. This
showed substantial and continuous increases. was essential, since the free coinage of gold
These holdings averaged about 113 million could be suspended only by a common underkronor in 1915, but were about 160 millions in standing between the three countries, because
February, 1916. According to paragraph 10 Danish and Norwegian gold coins are legal
of the bank act the Riksbank had to purchase tender in Sweden.
If the purpose of the 1916 amendment was
any amount of gold at the fixed price of 2,480
kronor per kilo fine, paying therefor in gold to stop the importation of gold and to force the
coin and, since gold does not circulate in Swe- shipments by the Allies of larger quantities of
den, practically in its own notes. With the raw materials needed by Swedish industry,
growing influx of gold the bank had therefore the success of the measure seems doubtful.
the alternative of either increasing its note Gold continued to flow into the country in inissues indefinitely or else of obtaining notes creasing volume and the amount of bank
through the liquidation of productive assets. notes outstanding shows a more than cor-




i Sveriges Riksbank, 1915 Arsbok,. p . 4 *

* Sveriges Riksbank Arsbok, ]916, p . 5*-6*.

FEDERAL EESBRVE BULLETIN.

MAY 1,

379

responding increase, as may be seen from the | British pound sterling, which in July, 1914, was
following comparative figures taken from the I quoted at 18.25 kronor or 0.5 per cent above
: par, was worth in December, 1917, only 13.97
bank's monthly condition reports:
! kronor, or 76.93 per cent of the par rate of
[In thousands of kronor.]
: exchange, having therefore depreciated over
; 23 per cent to the end of the past year. The
'Maximum
Actual noto
Gold in vault.
permissible note
I American dollar, which in July, 1914, stood
circulation.
issue.
Month.
: 0.8 per cent above par, was quoted below par
s
1917
I for the first time in October, 1915. By the
1916
1916
1916
1917
end of 1917 the rate of depreciation on the
January
.142,278 186,582 408,425 492,557 ! 293,597
376,133
February
160/308 191,374 419,814 479,173 ! 303,587
393,468 dollar was 21.4 per cent, or 2.6 per cent less
160,813 ! 193,173 435,146 511,346 ! 331,606
438,826
March
164,991 ' 194,281 447,422 513,562 I 322,392
434,333 than on the British pound and 7.84 per cent
April
166,311 202,941 435,518 530,883 I 328,812
433,338
May
The German
160.131 202,701 451,480 530,402 i 352,475
466,021 less than on the French franc.
June
165; 918 204,638 449,476 534,276 324,793
442,413
July
mark, which by October, 1917, had fallen to
165,758 204,501 456,516 534,002 345,547
467,083
August
170,947 214,554 466,894 554,109 386,885
520,962 41.78 per cent of its par value, showed a notable
September
177,952 223,494 480,904 571,988 375,984
522; 632
October
182,380 226,399 489,761 577,798 380,745
535,001 recovery during the late part of the year, the
November
183,520 244,457 492,039 613,915 417,517
572,723
December
December average being 60.65 per cent of par,
an improvement of 18.87 per cent over the
FOREIGN EXCHANGE RATES IN SWEDEN.
October quotation. It may also be noted that
In the following table and diagram is shown the Swedish crown has been for some time at
the course of foreign exchange rates quoted in a premium in exchange with the currencies of
Stockholm between July, 1914, and December, the other two Scandinavian countries, whose
1917. All rates are quoted in terms of Swedish gold coins are legal tender in Sweden, the rate
crowns and the relative depreciation of the of depreciation of the Norwegian crown averforeign currency is measured in percentages of aging 4.1 per cent and that of the Danish crown
the par of exchange, Thus, for example, the 6.89 per cent for December, 1917.




55543—18

4

380

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Average monthly rates of exchange of the Bank of Sweden on principal financial centers during period from, July, 1914t to
December, 1917.
(From Kommersiella Meddelanden Jan. 15,1918.]
B. Bates on markets in neutral
countries.

A. Rates on markets in belligerent countries.
Vienna
Petrograd \ New York
(75.60=100). (192=100). ! (3.73=100).

(18.16=100). i (72=100).

100.13
100.30
100.41
98.57
95.59
98.34

18.25
18.36
18.63
18.85
18.99
19.19
19.28
19.41
19.43
18.72
18.42
18.13
18.34
18.25
18.11
17.88
17.22
16.97
1916,
Tan
Feb
Mar
Apr
May...
June..,
July...
Aug...
Sept...
Oct
Nov...
Dec

17.27
17.02
17.70
16.09
15.66
16.17
16.73
16.68
16.88!
16.79!
16.82'
16.38'

1917.

Jan
Feb
Mar
Apr
May...
June..
July...
Aug...
Sept...
Oct
Nov...
Dec

! 15.89|
]
15.76j
15.20
14.28!
14.041
12.72!
12.02!
13.97




106.17
106.88
108.99
103.08
101.43
99.83
100.99
100.50J
.72;
98.46'
94.82
93.45

77.49
77.
77.
73.7oi
72.22!

.821
96.65!
94.02j
90.72j
89.04!
87.49!
88.31
89.11
88.14
83.92
78.11
86.17
84.35
82.24
78.56
77.10
79.89
82.75
82.47
84.18
84.24
84.31
82.031
80.94
80.79
80.53
80.79
SO. 90
80.38
77.35
72.44
70.92
64.33

75.73 100.17
73.80 97.62
74.0 97.88
70.77 93.61
91.71
92.51
69.97
67.70
63.63
60.85
59.44
57.94
58.35
.21
58.00!
55.75!
53.22

92.55
89.55
84.17
80.49
78.62
76.64
77.18
77.0
76.72
73.74
70.40

71.89
71.70
71.61
70.95
67.63
66.0
170.0
176.53
174.43
168.67
157.53
147.27
136.88
131.83
133.53
129.58
120.63
113.90
56.58 3.63 I
58.19 3.565)
58.23 3.517!
55.3013.40
53.12J3.312
54.55 !3.415!
56.60J3.541;
56.2o|3.521
60.16 3.561
57.98 3.547
55.35 3.557j

69.42
70.36
71.49
70.65
70.14i
69.56!
68.59!
64.06!
57.01!
56.87 i
54.47;
52.05'
51.48
47.
45.56
42.61!
41.17!
37.14!
38.05!
53.91

64,14
63.98 :
61.28!
58.56:
57; 91.
53.23|
51.25,
47.941
46.32!
41- 78i
42.81!
60.651

107.23
108.31
108.57
104.83
102.95
101.88
103.22
103.49
103.75
102.14
99.20
96.51

36.31!
86.0 i
34.70!
32.71,
31.50:
30.66!
29.ll!
27.57;
26.2023.52;
23.91;
32.23;

48.03]
47.62 i
45.90!
43.271
41.67!
40.56!
38.511
36.47!
34.66|
31.111
31.63 i
42.63!

100.20
97.88
95.65
94.87!
83.50i
79.0 I
71.181
64.70
47.90
40.15
35.0
43.731

97.32
95.58
94.29
91.15
88.79
91.55
94.93
94.40
95.47
95.09
95.36
93.14

52.19 3.414!
50.98 3.403:
49.82 3.301 i
49.413.341!
43.49 3.348|
41.15 3.328:
37.07 3.2091
33.70 3.013 j
24.95 2.959!
20.91 2.681
18.23 2.548
22.7812.969

91.53
91.23
90.91
89.57
89.76
89.22
86.03
80.78
79.33
71.88
68.31
79.60

99.86! 100.0; 100.0

66.0
67.95
66.90!
65.151
62.05!
57.
55.
54.48
55.37j
55.971

100.0
100.0
100.0
100.0
100.0
100.0
100.0!
100.0!
100.0!
100.0
100.0
.17

98.54J 100.0i 100.0
93.93 100.0 100.0 100.0!
91.67 100.0 100.0! 100.0i

91.67
94.38
92.92
90.49
86.17|
79.70
77.401
75.67!
76.90|
77.74
53.24J 73.94
50.76! 70.50

100. Oi 100.0!
100.0; 100. Oi
100.0! 100.0!
100. Oi 100.01
100.0; 100.0!
lOO.Oj 100.0!
100.0: 100.0;
100.0! 100.0!
100.01 100.0)
99.62! 99.62j
99.08! 99.08)
98.10! 98.10

58 109.
162.20 108.13
155.18103.45
152.56101.71
151.85101.23
154.41102.94
93103.95
156.66104.44
156.87104.58
155.18103.45
153.85 102.57

50.32
99.56 99.46 99.46 159.99106.66
51.65|
99.9? 99.93 99.93 151.66 101.11
51.48;| 71.50100.0 100.0 100.0 100.0 149.01 99.40
49.59 | 68.88 100.13 100.13 100.0 100.0 144.43 96.29
j 65.71100.41100.41100.0 100.0 136.44 90.96
67.71100.0 100.0 100.0 100.0 141.55 94.37
50.6S| 70.39100.0 100.0 100.0 jlOO.O i 146.09 97.39
50.58i 70.25 99.95 99.95 99.02' 99.02) 145.01 96.67
53.70 74.58 99.15 >. loi 97.47: 97.47l 145.62! 97.08
52.26 72.58 98.26 98.26' Q6.6G! 96.60; 144.85! 96.57
50.18
1 97.98! 97.98 95.88! 95.88! 144.75! 96.50
1
48.18 66.92! 96.10
94.191 94.19! 140.591 03.73
i
i
47.62 66.14! 95.15 95.15 93.28! 93. 281 138.56! 92.37
46.98 65.25 95.05 95.05 93.47 93.47! 137.72: 91.81
90.95
98.52 96.45 96.451
46.60 64.72
i3.75 98.07 98.07 95.57J 95.57! 136.17, 90.78
45.
46.46 64.53 98.04 98.04 G5.83I 95.83! 137.27i 91.51
47.77 66.35 97.60 97.60 96.18 96.18! 136.66! 91.11
51.23 71.15 94.93 94.93 93.69 93.69! 132.35: 88.23
45.77 63.57 92.01 92.01 91.71 91.71! 126.12; 84.08
82.60
42.53 59.07 91.32 91.32 91.06 91.06|
35.24 48.94 86.19 86.19 86.13 86.13! lis!49! 76.98
31.29 43.46 86.95 86.95 86.43 86.43! 111.32! 74.21
57.47 95.90 95.90 93.11 93.11! 127. 481 84.99
41.

MAY 1, 1018.

_
.

3a
30

as
ae

4

a
a
4
6
S
10

"VTV

>*
ft*8
•c\

AMM

\

W

V. V

\

4

\
i

X

im
m
ao

/

es

AM

i
'i

if

t

r

>

16
16
14
la
K>
6
4

\

\

**-

a

^_

V

•^,

*\
»1
\ \i

vj
\
\

a

s
r\

1

\r

—h
**^
z

s.

°%

.-a

V
V
i
VI

•-•if'

/ •

•4Q3

s is

so

ik
%
\

i ss

h

! 40
4Z
I 44
! 40
SB
&f

.^

»v

L

\

.....
1 ,

M

f * h. 1

5a.
\

1

.„

.

\

s

i

$

\X

h
t

K

i

i

?e

1
i

(

8j

1314-




ISIS

%

1916

k
\

SS
Sf
Sf ^AUSTRIA

1 60
I 62

191?

HUH6ARY

U
Pi

-

/-RUSSIA

/

j i i 11 1i 1 1I j
I
1
AUGUST

j 1
1 1 1 1i 11 1i 11s 1I

1

30' 'KjFRANGfT
X
34

£W4£

•

-

BRITAIN

f

1 \

\

?? t JttStTES
£4 KjSREAT

1

-

\

jCnCTHEFi"LANDS
18
sTUNITED

t

k !

j

64
06
&

w

1

V

m

% ?$

/

\\ \ \
I
\

i ss

i

10

VX

i
1

{-NORWAY

la

VJ
Ah

1

X

34
3$

'"\

L

K
/

--

M

Hi

SSSES

m

\

>\

re

/-PAR LINE

6

k

/

taH

as

as
as
aa
ao

M

Ok,

V

EL

1
J
|
|

r

Ik

/ /

£ 71r L r

V // 4
LI
[c54^ p r r

?J
*

h

24

s
e

•

(j

aa
ao

IS
16
14
la
10

381

FEDERAL RESEBVE BULLETIN.

382

FEDERAL BESBBVE BULLETIN,

, 1IM.8.

NORWAY.
(Source: StatisMsk Aarbokfor Kongorifcot Norgo, l

{In crowns*]
j
;
:iuternaldebt. Foreign debt.! Tota) debt. ;

Jun-? 30—

1913
1914
1915

Nominal
of state
assets.

bllMes over
current value
ofassots.

I
5,743,499 ;
840,790,701 |
'804 462 388,445,000! 206,661,000! 150,783,462
836 472 534 I
854,003,800 ! 421,823,752 : 389,020,000 , 200,828,000 } 220,995,752
357/230; 045!
42^ 975) 440 ; 420,441! 000

* 21,952,
21,952,795
92198
: 20 921928
67,229,862
1 67229862
!
65,744,795

228 152 000*

194 823,440

Receipts mid expenditures.
•

1014
1M5
1
19H\

M

5

i

Total

' Kx)

! 175,961,915
! 175,961,915
i 197,888,596
197888596
240,382 678

Interest.

27,317,006 !
27,700,981 I
30 381,001 ;

67,760,232 I
72,987,941 i
79 413 827 j

21,404,592
24,504,236
22 787179

Totai expeodituresT
166,716,823
208,294,894
218 389 078

!
Bank of Norway.
(In crowBis.)
Dec. 31,1913.

Dec. 31,1914,

* \ 31. i

53,630,856
15,638,464
«3 239,580
81,209,410

79 200 308
152,380,338

6870340

88,394,269
3,826,656
27,888,819
119,649,504
808 897
1,512,329
8,962,725
0,511 100

1,885,327
13 3941353
5,808,910

13'439;907
8,832,080

165,858,454

207,074,230

232,806,400

3SJ,573.287

25,000,000
13,609,182
107,612,078

25,000,000
13,361,878
184,181,896
21,140,216
4,018,381
9,371911

25,000,000
11,944,212
102,210 585
24,914,582

25,000,000
11,453,230
25l!452 881
81,045,833
5,089 005
6982238

44,374,830

Hold with 8candana\ian banks of issue.
Held with other foreign agencies
Bills, domestic
Collateral
ftit
ftteurities..
Sundry assvts...

(apitai

Surplus
Notos in circulation
Deptjsits
Profit and loss account.
Sundry liabilities
Total
Ratio of gold In vault to combined note and deposit liabilities (per cent).,




3558 847
26,269,180
713819G0
3,458,109
1022 048
8 823 0^1

12^004
3,680,593
3 374,052

165,858.454
3k 92

4,079,433
232,306,400
«A59

1VL',Y 3, 1918.

888

FEDERAL RESERVE BULLETIN.

Foreign rates of exchange at Chisluvma,

1914-1917.

[Source: Aftenpostan and Norges OJIiciolo Statistic.]
Paris.
.Tune 30
Sept. 28
Oct. 31
Nov. 30-Doc. 1
Doc. 28

; 18.24-18.25 |
18.32-18. 75 i
! 18. 9&-18.05 I
I
19.20 !
i
19.33 !

!
!
• Amsterdam, j Now York.

72.45-72.50
73.00-74. 50
74.00-75.50
77.00
77.50

150.50-150.60
155.00-156.00
157.50-159.50
162.00
162.00.

3.81-3.87
3. 82-3.88
4.00
4.00

1015.

Jan. 30..
Feb. 27..
Mar. 29..
Apr. 30..
May 29..
Jnric 30..
July 29...
Aug. 30..
Sept. 29..
Oct.. 28..
Nov. 30..
Dec. 30..

19.30
19. 60
19.10
18.55
18.30
18.15
18.35
18.17
18. 13
17.70
17.05
17.35
1910.

Jan. 3 1 . .
Feb. 29..
Mar. 31..
Apr. 29..
May 31 .
June 30..
July 31..
Aug. 31.
Sept. 30.
Oct. 31..
Nov. 30.
3>ee. 30..

17.50
16.97
16.47
15.75
16.05
10.40
16. 60
17.05
17.20
17.15
17.24
17.25

77.10 i
78.00!
75.00 ;
73.00 i
71.50 !
69.00
69. 00
66.5(5
66. 25
65.00
62.50
03. 00

4.1C
4.00
3.90
3.88
3.87
3.90
3.95
3.89
3.85
3.69
3.71

67. 50 ,
(54.40
62.25
63.50
63.00 i
03.50 I
63.50 !
63.00 |
63.75
63.25
00.75
63.25

i
62. 00
60.60
58.00
55.75
57.00
58.25
59.00
60.75 i
62.00 '•
62.00 !
02.25
61.75

157.00
151.75
148.50
140.00
140.00
143.50
145.25
148.00
148.25
147. 75
.148.25
14:7. 00

3.70
3.57
3.50
3.30
3.32
3.47
3.52
3. 62
3. 64
3.64
3. 67
3.61

60. 65
58. 75
53.50
53.00
51.40
49.00
47.00
44.75 :
45.00 !
41.50 I
40.50 =
01.00 =

!

162.00
164.00
158.00 i
154.00 i
152.50:
152.50 i
155.50 i
157.00 !
157.50 ;
159.50 :
152.75 :
161.50 !

61.40
60.75
57.75
60.00
59.60 !
59. 25 I
57. 00 ;
56.00 ;
55.00 !
49.50 .
52.50
53.25 :

146.00
143.50
137.00
140.00
140. 40
140.00
137.50
137.00
134.50
128.00
131.00
131.75

3.60
3.56
3.37
3.43
3.41
3.41
3.30
3.25
3.21
2.85
3.00
3.05

1917.

Jan. 3 1 . .
Feb. 28..
Mar. 30..
Apr. 30..
May 31..
Time 30..
July 31..
Aug. 31..
Sept. 30.
Oct. 3 1 . .
Nov. 30.,
Dec. 3 1 . .

17.04
16.90
10. 03
Iff. 26
10.19
16.16
15.55
15.43
15.15
13.50

14.20
14.45

-EXPENDITURES.

DENMARK.
[Source: Statistisk AarboR, 1917.]

National
defense.

./;.--PUBLIC D E B T A N D ASSETS.
fin thousands of crowns.]

Mar. 31 —

• Assets of I Public
the

Mar. 31—

debt.

State.

Excess
of
assets.

1
1913
— '
.. 812.753 ! 356,639 '•• 456,114 • 1915
:
.• 846', G94 j 360,880 ' 485,814 1916
. i 844) 506 I 392,636 | 451,870 : 1917
. 867,706
460,955 ! 406.751 i
..1,084,174
589,086 \ 495', 088 :

1913.
1914.
1915.
1916.
3017.

B.— R E C E I P T S .

Mar.'SI—

1913
1914..
1.915
1916
1917




"
:

Total
receipts.

i Ordi- I Receipts !
! nary re- j from j
I ccipts. i loaus. I
i
i
;
i
i
i

114,176! 70.864 1
123,875 i
2)817 !
121,781 i 32,548 '
142,634 ! 80,585 !
255,288 ; 153.624 i
•

'

i

9,478
1,392
2.346
1)766
87.858

224,196 !
162)347 i
195,432 i
242,428 i
521,461 •

Ordinary.

Anicrti;
Interest : nation of ;• Miseei- ; Total.
Ex- or. debt. ; debt. I laneous. |
traordi-i
r.ary.

i 23,908 4,840
24,509
4.621
!
24,175 44; 705
'' 24,687 62,015
1 "25.787 82,410
'

11,386 " 71,114 ; 112, 948 : 224,196
•
12.401 !
1,731 ! 119. 085 i 162,347
12,780 !
3,063 i 110)709 ' 195,432
14,761 I 14,699 | 126, 266 ! 242,428
16,778 : 29,369 ! 367, 1 1 7 i 521,461

384

FEDERAL RESERVE

MAY 1,1918.

BULLETIN,

National Bank, Copenhagen,

Denmark,

fin crowns.]
July 31, ! July 31,
1915.

I

1916.

July 31,
1917.

;i61,454,958
I 3,910,922
59,914,874
27,467,795
8,892,298
173,525
33,133,204
10,951,909
; 22,066,879
I 2,347,644
i 74,700,540

195,113,002
2,732,266
41,774,543
31,777,784
8,647.057
15', 207
36,664,637
10,116,799
18,055,797
2,806,413
100,641,856

269,093,009 |405,014,548

448,345,361

27, 000,000 I 27,000,000
I 8,320,144
245,013,124
'\ 3,426,358
i 87,898,269
i 22,006,304
i 5,723,556
1
3,805,163
i 1,821,630

27,000,000
8,442,602
289,308,095
3,316,944
97,421,738
9,515,329
1,769,257
9,722,000
1 8 ' " ~~"

269,093,009 |40o,014,548

Gold coin and bullion
Subsidiary coin
Foreign credits
Danish Government securities
Foreign government securitie . ,
Notes of other Scandinavian banks of issue
Domestic bills
Foreign bills
Loans and discounts
Real estate
Other assets

448,345,361

|107,028,802
I 5,413,416
I 37,575,487
I 19,599,027
j 8,989,820
314,913
35,598,622
1,125,019
17,324,361
I 2,030,527
! 34,093,012

Total.
LIABILITIES.

Capital.

Surplus
Notes in circulation
Government deposits
Current account deposits
Other deposits.
Due to foreign central banks of issue .
Profit and loss
,
Other liabilities

197,950
\
i204> 325,210
j 3, 532,146
4, 091,614
11, 722,721
4. 838,752
3; 771,886
1, 612,730

Total
Ratio of gold holdings to combined note and deposit Liabilities

per cent.,

Foreign rates oj exchange at Copenhagen,

47.85 !

45.06

1914-19IS,

[Source: Kiobenhavn Politiken.]
Hamburg.

London.

Paris,

j

j£?*er"

"Petrograd. Heisingfors.

Vienna. | New York.

71.70
.15
83.90
82.25
79.75
78.20
77.10.
79.00
78.70
79.50
77.50
73.00
69.50

19.30
18.50
18.95
13.50
18.20
18.12
18.30
18.20
18.20
17.60
17.15
17.30 |

77.50 :
78.50 j
76.00 ;
73.50
71.00 I
69.25 i
89.50 I
67.00 j
66.50 i
65.25 I
62.25 i
63.00 !

163.00 •

lei.oo :

07.10
64.50
62.00
61.60
62.25
615.00
63. 70
63.70
64.00
64.25
61.00
61.50

17.47 !
16.95
16.48
15.75
16.00
16.35
16.80
17.37
17.47
17.48
17.63
17.40

63.00
61.25
58.50
56.00
57.00
59.00
60.25
82.25
63.00
63.25
63.75
62.75

158.00
153.50 !
149.00;
141.25 :
140.00
145.00:
147.00
150.50
150.00
151.50
152.00
150.00

114.00
116.00
113.00
105.00
105.00
109.00
111.00
120.00
119.00
114.00
113.00
113.00

61.50
59.35
55.00
•54.20
52.25
50.50
47.75
46.00
44.75
41.75
51.00
84.00

17.34
17.17 j
16.46 I
16.70 :
16.52 :
16.32:
15.95 i
15.62 :
15.30 :
13. 70 .
14.60 i
15.40 j

62.75
62.00
59.60
62.00
61.25
60.50
58.50
57.00
56.00
51.75
54.50
57.50

149.25
147.00
141.00
144.00
143.75
143.00
140.50
138.25
136.00

106.00
104.00
99.00
100.00
94.50
79.00
74.00
62.00
53.00
40 00
45! 00
50.00

60.25
62.75

15.40 i
15.45 !

57.50
57.50

142.00
144.00

i
i
1
!
!
i
!
i
i
:

375.50

S8.00
68.00
67.00
65.00
60.00
57.00
56.00
54.00
56.00
57.00
54.00
51.00

172.00
178.00
177.00
lf>6.00
153.00
149.00
134.00
137.00
136.00
132.00
121.00
115.00

165.00
158.00
156.00
152.50
152.50
157.00
157.00
159.00
160.00
153.00

75.00
70.50
68.00
62.00
60.50
58.50
58.00
59.50
59.00
58.00
56.00
52.00
49.00

405.00
412.00
404.00
396.00
386.00
384.00
392.00
395.00
391.00
390.00
371.00
374.00

51.50
52.50
51.50
50.00
48.00
50.00 i
51.00
52.50
54.50
54,00
52.00
51.00

46.50
46.00
43.00
44.00
44.00
44.50
45.00
44.50
44.50
44.00
40.50
38.50

373.00
360.00
352.00
337.00
341.00
350.00
357.00
368.00
369.00
370.00
373.00
388.00

51.00
51.00
50.00
48.50
48.00
51.50
50.50
50.00
46.50
40.00
40.00
56.00

39.50
37.00
35.75
34.50
34.00
32.00
30.50
30.00
28.50
27.00
32.00
40.00

366.00
362.00
348.00
352.00
350.00
347.00
337.00
329.00
324.00
293.00
310.00
328.00

48.00

39.50
42.50

326.00
328.00

1916.
Jan. 3 1 . . .
Feb. 2 9 . .
Mar. 3 1 . .
Apr. 29..
May 3 1 . .
June 30..
July 3 1 . .
Aug. 3 1 . .
Sept.30.
Oct. 3 1 . .
Nov. 30..
Dec. 3 0 . .

i
!
;
!

:
:

:
!
i
i
!
I

1917,
Jan. 3 1 . . .
Feb. 2 8 . .
Mar. 3 1 . .
Apr. 3 0 . .
May 3 1 . .
June 29..
July 3 1 . .
Aug. 3 1 . .
Sept.29.
Oct. 3 1 . .
Nov. 30.,
Dec. 3 1 . .

135.00
139.50

1918.
Jan. 30..
Feb. 18.




MAY 1,1918,

385

FEDERAL RESERVE BULLETIN,
NETHERLANDS.

[Source: Jaarcijfers voor net Kaninkrijk der Nederiandsn, 1916.]
PUBLIC FINANCE.

[In thousands of florins.]

j
I
|

Treasury- Treasury Advances
orders
bill
of the
Paper
Bank of money. Total.
Netherlands.

[

Between 1914 and the end of 1917 the pub- j
lie debt of the Netherlands increased by |
13,624
6,000
19,624
461,091,000 florins. The bulk of the present j Jan. 17,1914
12,568
20,770
28,150
July 18,1914
61,488
14,130 9,868 198,046
, 52,498 121,550
debt bears interest at 2\ and 3 per cent, the Jan. 30,1915
13,494 4,801 172,401
110,080
Jan. 22,1916
1 44,
13,416 15,669 263,539
Jan.
114,094 120,360
higher rates affecting recent loans only. The Nov.20,1917
5,982 26,712
147,370
17,1917
107.187
following table shows the distribution by interest rates of public indebtedness for the more
Receipts and expenditures for the last four
recent years:
financial years for which information is availFunded debt (nominal).

able follows:

[In thousands of florins.]*
Jan. 1—

5 per
cent.

4|per
cent.

4 per
cent.

3* per
cent.

3 per
cent.

Receipts.
2J per
cent.

(In thousands of florins.}
Total
i

Ordinary.
1913
1914 . .
1915
1916
1917
1918

:.;
275,000 i25,000
261,250 124,687j 125,000
247,500

51,918
51,311
50,681
49,952
49,212
48,449

516,636
511,720
506,657
500,760
495,027
489,017

587,704
585,349
582,934
580,279
577,593
574,818

1,156,258
1,148,380
1,140,272 1913
1,405,991
1,508,082 1914
1,609,471 1915
1916

Extraor- Miscel- j m_foi
dinary. laneous. 1 T o t a 1 '
i
i

223,507
224,910
244,031
317,893

3,715
20,261
41,225
13,063

201
400
600
17,169

i
i
I
|

227,423
245,571
285,856
348,125

Four loans were floated in the first three
years of the European war, two on behalf of
the Dutch Government and two for the Dutch
ExGeneral Inter- traor- Miscelservices. est on dinary. laneous. Total.
East Indies. The Dutch Government floated
debt.
a 5 per cent loan in 1914 and a 4 per cent loan
181,324 32,101 19,382 5,920 238,727
in 1916, calling for 275,000,000 florins and 1913
286,518 34,051 32,582 6,122 359,273
1914
408,797 41,822 70,966 6,347 527,932
1915
125,000,000 florins, respectively. The over- 1916 . .
458,969 52,932 34,081 20,335 566,317
. . . .
subscription was 135,000,000 florins in the
first case and 18,000,000 florins in the second, j
BANK OF THE NETHERLANDS.
The Dutch East Indies loan of 1915 was issued
Since the outbreak of the great war the
at 97, for the nominal amount of 62,500,000
florins, and in 1916 another loan was floated at Bank of the Netherlands reports a gain in its
99J in the Netherlands proper and at 101J in gold reserve of over 500,000,000 florins. This
the Dutch East Indies, to the amount of gain would undoubtedly have been larger if
80,000,000 florins. The interest rate of the extensive credit arrangements had not been
latter two loans was 5 per cent and the over- made with foreign countries, including the
subscriptions were 68,100,000 and 65,000,000 United States. Under arrangements with the
New York banks the bank undertook the payflorins, respectively.
In addition to the funded debt, there is out- ment of dividends to Dutch holders of American
standing a comparatively large floating debt, shares of stock, besides taking over a number
which is shown for various dates in the fol- of dollar balances which arose from ordinary
commercial transactionsjfdating before the delowing table:




386

MAI 1,1918.

FEDERAL RESERVE BULLETIN.

preciation of the dollar rate, both against the show on the whole the same development as
deposit of gold in the United States for the ! the tables and diagrams of Swedish and Swiss
bank's account. The increase of the item | rates, though the premium on the Dutch florin
"sundry assets" in the bank's balance sheet j appeared somewhat later and is at present
chiefly arises from payments in foreign countries | considerably lower than the premium on the
for Dutch account.1
Scandinavian currency and the Spanish peseta.
The condition of the Bank of Netherlands Between April 1, 1916 and 19177 the Swedish
before the outbreak of the war and at the end crown appreciated in the Dutch markets by
of the last five years is presented in the fol- over 10 per cent and on October 31, 1917, stood
lowing table:
at about 43 per cent above parity (66.67
Bank of Netherlands.
[Sources: De Nederlandsche Financier.]
|Doc. 27, 1913. jJuly 25,1914. JDec. 24, 1914. "iDoc. 31.. 1915. Dec. 30,1916. j Dec. 29, 1917.
ASSETS.

Gold
Silver
Advances
Bills, domestic
Bills, foreign
Securities
Bank building, furniture, etc
Sundry assets

587,602,462
6,984,902
85,505,222
66,685,017
8,024,184
9,096,143
1,400,000
82,663,366

698,232,602
7,027,844
107,448,386
81,819,459
8,039,342
9,078,132
1,465,000
65,312,726

526,173,975 i 643,146,787 | 847,961,296

978,423,491

20,000,000 i 20,000,000
5,003,039 i
5,000,000
473,106,585 : 577,056,380
1,599,286 '
3,469,362

20,000,000
5,234,534
890,272,715
3,568,735

} 160,506,072 j{ " f j g ' g g j} 211,611,508 ;{429,181,626
6,194,793
86,025,836
67,504,474
—
14,300,258 !
8,968,220 :
2,000,000 :
10,430,533

61,685,883 j
67,947,052
20,188,148 !
8 985,271 |
1,800,000 |
12,953,451 I
349,735,393 I 343,901,492

,

Total.

133,353,220
93,579,272
154,784,717 j 76,348,212
"' ~n' """
667,100 ! 2,505,911
8,998,761 "
8,924,812
1,800,000
1,600,000
14,958,669
24,812,161

LIABIIJTIES.

Capital
Surplus
Notes in circulation
Bank orders in circulation
Current accounts:
Government
All others
Sundry liabilities

20,000,000 : 20,000,000
!
5,000,000
5,003,039
j 312,695,155 \ 310,437,275
1,522,285;
1,460,545
,

::

4,332,735
6,185,218

4,737,223
2,263,410

Total
! 349,735,393 ; 343,901,492
Ratio of gold and silver holdings to combined note and !
deposit liabilities (per cent)
;
50.63 :
54.05

.'•. 5,481,910
17,454,889 : 24,288,562
9,010,176 j
7,850,573

20,000,000
5,155;091
758,379,115
3,738,961
I
54,577,360 (
6,110,769 I

21,583,624
32,048,137
5,715,746

:

643,146,787

847,961,290

978,423,491

43.14 .

71.75

73.14

74.72

526,173,975

florins). Since then the premium on Swedish
currency has gone down considerably, the FebOfficial exchange quotations on principal ruary 13 quotation indicating a premium of
European bank places and New York City less than 13 per cent. The Spanish peseta befor the last of each month since July, 1914, gan to appreciate in the Dutch market about
i Report of the Netherlands Bank, 1916-17; pp. 13-14.
the middle of 1916, and by March 31 had reached
a rate of appreciation of 10.4 per cent above
par, the upward movement continuing during
the year 1917.




RATES OF FOREIGN

EXCHANGE.

MAY 1, 1918.

387

FEDERAL RESERVE BULLETIN".
Foreign exchange quotations at Amsterdam.
[Source: Nedorlandsche Financier.]
i
|

London
(par £ =
12.1075 fl.).

Paris
Berlin
j Vienna i Stockholm Copenhagen ; Switzerland New York ; Madrid
(100 francs= (100 marks= | (100 crowns== i (100 kroner= (100 kroner— I (100 francs=
(cables | (100 posetas*48 fl.).
59.2611.). i 50.41 fl.). • 66.67 fl.). 66.67 fl.). 48.011.).
S=2.4875fl.). I 48 fl.).

1914.
June 30
July 31
Aug. 29
Sept. 30
Oct. 31
Nov. 30
Dec. 31

i
|12.12J-12.475 48.18 -47.825
!
12.10
49.40
i
12.32
112.02 -12.07
111. 92 -11.02 i47.35 -45.85
111.99 -12.09 148.00 -48. 50
|ll. 94 -12.04 j47.60 -18.10

1915.
Jan. 30
Fel). 27
Mar. 31...
Apr. 30...
May 31..
Juno 30..
July 30..
Aug. 30..
Sept. 30.
Oct. 30..
Nov. 30..
Dec. 31...

I
12.025-12.075
12.01 -12.06
12.145- .195
12.105- .155
11.99 -12.04
11.905-12.005
11.661- .861
11.57- .67
"
11.48 - .58
11.10 - .20
11.20 - .30
10.745-10. 84

59.105-59.425 150.075-4S. 475 j 66.35-66.50 ' 66.30-05.375 48.095^7.025 2.48^-2.45^59.15 !
47.00
66.25
66.20
2.45
2.44.5
50.60 -54.10
2.39?
53.65 -54.15
2.445
54.45 -52.95
2.455
54.00 -54.50
2.46-2

!47. 85 -48.05 54.025-54.225
147.30 - .50 51.05 - .55
147.60 - .80 51.725-52.225 38.60 -39.10
|47.50 - . 070 50.70 -52.20
3J
8
147.975-46.5 51.35 - .85 37.95 -38.45
37§
•44.35 - . 85 50.45 - .95
144.55 - . 05 50.175- . 675
37*
;41. 85 -42.35 50.175- . 675 36.90 -37.40
i42.0 - .50 .50.40 - .90
36 -36J
140.15 - . 65 48.675-49.175 34.30 -80
140.675-41.175 ;46.80 -47.30
33i
|38.50 -39.00 :42.10 - . 60
28i

j

1916.
Jan. 3 1 . . . .
Feb. 29....
Mar. 3 1 . . . .
Apr. 29....
May 3 1 . . . .
June 30....
July 3 1 . . . .
Aug. 3 0 . . .
Sept. 3 0 . . .
Oct. 3 1 . . . .
Nov. 3 0 . . .
Dec. 30....

11.26
11.215 ;
11.18 j
11.38 !
11.495 |
11.49
|
11.5125 i
11.6175
11.665
11.6275
11.6725 |
11.68375;

40.20 I
40.05 j
39.29 ;
40.25 i
40. 825 i
40. 85 !
40.95 :
41.45 !
41. 875 I
41. 85 !
42.0 ;
42.10 i

1917.
Jan. 3 1 . . . .
Feb. 28....
Mar. 31....
Apr. 30....
May 3 1 . . . .
June 30
July 3 1 . . . .
Aug. 3 0 . . .
Sept. 29...
Oct. 3 1 . . . .
Nov. 3 0 . . .
Dec. 29....

11.701
11.80V
11.675
11.64
11.59
11. 575
11.445
11.335
11.315
10.195
11.0
11.0

42.10
42.40
42.35
42.825
42.65
42.35
41.80
41.25
40.925
39,75
40.55
40. 75

1918.
Jan.31
Feb. 13

10.905
10. 78

10. 25
39.90

!
'
1
i
'
1
!
!
i
1
!

64.20
65.90
67.65
72.45
71.85
69.775
68.175
67.00
66.45
66. 25
66.05
67.00

45.25
44.75
44.925
46.00
45.95
45.60
45.625
45.90
46.05
46.575
47.50
48. 575

41.375
40.55
38.925
37.60
36.475
34.75
33.75
33.175
32.80
32.55
36.10
45.30

26.675
25.25
24.525
23.60
23.45
21.90
21.60
21.15
20.85
20.65
22.20
27.325

72.55
73.225
74.425
73.65
73.15
74.15
80.25
79.85
82.35
95.25
86.90
77.50

67.35
68.95
71.35
69. 85
70.125
70.70
71.40
72.45
73.90
79.25
76.50
72.75

48.925
49.375
49.05 1
47.45
48.30
50.30
53.075
52.15
50.45
50.50
54.20
52.85

2.47H
2.47
2.445
2.43
2.4225
2.395
2.3675
2.367
2.174
2.247
2.273

42.10
43.625

27.15
28.60

77.20
75.95

71.00
76.00

50.90
50.95

44.0
44.55
45.0
46.35
47.75
48.80
48.70
48.85
49.15
49.525
50c 60
52.0

2.200
2.260

2.453

52.50
52.25-50
53

New York cables on Amsterdam.

FINANCE.

Upon the outbreak of the European war,
Switzerland like other neutral countries was
compelled to mobilize its army to preserve
its neutrality in the conflict. Surrounded on
all sides by belligerent countries, Switzerland
necessarily had to maintain a large force, and
this policy entailed heavy expenditures. From
August, 1914, to the end of November, 1917,




2.34|
2.355
2.341
2.38V
2.41 -2.41+
2.41V
2.41-1-2.42
2.44-2.44}
2. 443-9 44-7.
2.44
2.45
2.45J-

64.85
66.10
67.65
72.45
72.00
69.80
69.15
69.20
69.05
69.25
69.60
71.80

\Source: Revue eonomique et flnanciere Suisse, 1)14-1917, Soci<5te de
Banquo Suisse.]

5

61
3

464
44$

29.30
29.75
28.85
30.60
31.15
30.45
29.95
29.40
29.0
27.60
25.15
25.75

SWITZERLAND.

55543—18

64H

63.90-64.40
64
63.40-63.90
67 -68

46.95 -47.45
63£
47.55 -47.75
::::::::::: 47.30 -47.80
46.00 -46.50
46.05 -46. 55
46.10 -46.60
63§
45.90 -46.40
62.55-63.05 44.60 -45.10
66 -66}
44.30-44.80
624
43.20 -43.70

43.15
43.325
41.70
44.20
44.625
43.775
43.175
42.60
42.525
42.50
40.15
41.20

1

A.

65|
65.85-66.35
66

the expenses of mobilization totaled 762.253,000 francs, a sum equivalent to approximately eight times the annual budget of the
Confederation before the war. From August,
1914, to the end of the year, monthfy expenditures were 21,778,327 francs; during 1915?
owing to the partial demobilization of its army,
they were reduced to 15,240,501 francs. During the calendar year 1916, monthly mobilization expenses rose to 17,162,562 francs and
during the 11 months ending November 30,
1917, they exceeded the level reached in the
first five months of the war, amounting to

388

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

22,043,717 francs. Higher prices undoubtedly
contributed appreciably to this marked increase.
To meet the extraordinary expense the Confederation floated eight domestic loans and one
foreign loan in the United States. The details
of these borrowings are given in the following
table.

tax on property, of every description, modeled
after the German' l Kriegsteuer." It was levied
once for all time and was estimated to yield
80 million francs, a fifth of which was to revert
to the cantons. To the end of November, 1917,
the actual yield had been 76,243,000 francs.
In addition, excess profit taxes, import and
export license duties, and miscellaneous fees

Details of Swiss loans,
A. DOMESTIC LOANS.

Payable.

Amount
offered.

Feb. 26,1917
1919-1934
1926-1955
1921
1926
1926-1932
1926-1934
1928-1948

Million
francs.
30
50
100
100
100
100
100
150

Rate of
interest.

Date of issue.

Per cent.
5
5

Aug. 20,1914
Nov. 2-9,1914
July 16-23,1915
Feb. 1-9,1916
June 24-July 4,1916.
Jan. 22-30,1917
June2G-July4,1917.
Jan. 7-16,1918
Total.

Issue price
to bankers.

98.75
95.25-95.50
96.25
95.75
94.75
94.75
98.75

730

Issue
price to
public.

100
96.5
97.5
97
96

96
100

Average
Number
Amount
of
subscribed. subscribers. subscription.
Million
francs.
41.9
179.1
190.6
148.7
151.6
161.3
150.4
151.5

16,662
28,295

C1)
24,496
21,283
25,968
23,681
31,601

1.175.1

Francs.
2,509
6,330
6,070
7,123
6,211
6,351
4,790

B . FOREIGN LOAN.
[
\
I

March, 1915 (gold notes).

1916
1918
1920
1

)
}
I

Data unavailable.

The public debt of the Federation rose from
146,270,000 francs at the end of 1913 to
973,450,000 francs on November 30, 1917. In
January, 1918, an additional loan of 150 million
francs was issued, carrying the present indebtedness of the Federation to approximately
1,125 million francs. The figures of the debt
at the close of the last five years follow.
[In thousands of francs.]
1913
Consolidated debt.
Floating debt
Total

1914

1915

1916

146,270

224,810
56,000

405,520
105,500

576,600
222,500

603,750
369,700

146,270

280,810

511,020

799,100

973,450

1

19171

[In thousands of francs.]

Receipts.

November 30.

In order to provide for the increased expenditures of the civil budget, particularly the
heavier debt charges, new taxes became necessary. In 1915 a popular referendum permitted
the Federal Government to levy a special war




yielded an extraordinary revenue of 169,222,000
francs for the war period up to November 30,
1917. These receipts covered approximately
22 per cent of the mobilization expenses.
Ordinary receipts fell off considerably during the first two years of the war and ordinary
expenditures likewise show a decline, though
not equally marked. In 1916 both sides of the
budget showed an increase, with expenditures
outdistancing receipts by 22,853 francs, causing the largest deficit in the ordinary budget
in the history of the Federation.

1910
1911
1912
1913
1914. . .
1915
1916

96,018
98,044
102,339
99,957
78,311
77,626
86,773

Expenditures.

90,482
98,296
100,933
105,311
100,844
99,178
109,627

Excess of receipts ( + ) or
expenditures

+ 5,536
252
+ 1,406
- 5,354
-22,533
-21,552
-22,853

MAY 1,1918.

B. BANKING.

The Federal Council established loan banks
by the act of September 9, 1914. The latter
did not commence operations until the following month. By the end of October loans
amounted to 5,706,091 francs and loan bank
notes were issued to the extent of 5,640,925
francs, all of which were held in the vaults of
the Banque Nationale Suisse * and were not
put into circulation until some time in November. Loans and loan bank certificates
rose steadily thereafter until the end of Slarch,
1917, when they were 58,069,858 and 55,107,950
francs, respectively. The amount of notes in
circulation, however, reached their maximum
somewhat earlier, in October, 1915, when they
totaled 36,396,925 francs. Since that date the
circulation of these certificates has steadily
decreased.
End of month.

December, 1914
December, 1915
December, 1916
December, 1917
January, 1918

389

FEDERAL RESERVE BULLETIN.

Loans.

Francs.
37,980,506
55,286,791
31,389,717
25,590,500
31,079,399

In the
Loan bank vaults of Amount in
the
certificates
Banque circulation.
issued.
Nationale
Suisse.
Francs.
37,608,300
52,970,225
27,256,025
20,464,575
25,784,950

Francs.
29,345,025
17,103,150
2,483,575
12,673,950
18,963,975

Francs.
8,263,275
35,867,075
24,772,450
7,790,625
6,820,975

i Majority of the bank's paid-in capital is held by the cantons.

The net profits of the loan banks of the Swiss
Confederation amounted to 850,144 francs in
the year ending June 30, 1915, to 2,285,850
francs in 1916, and to 1,381,920 francs in 1917.
The character of the loans during the first
three years of the banks' operations may be
learned from the following table:
Per cent of the total.
Character of security.
1915
Mortgages
Savings bank books, bonds, etc
Stock
Raw materials and manufacture
Life insurance policies

63.05
23.36
11.68
1.63
.28

1916
64.30
24.42
9.52
1.32
.44

1917
72.18
18.19
6.89
2.29
.45

In addition to the certificates of the loan
banks there are also in circulation notes of the
Banque Nationale Suisse, secured by a minimum of 40 per cent of metallic reserve, according to article 20 of the bank act. From 313.8
million francs at the end of 1913, notes in circulation rose to 536.5 millions at the end of
1917 and 638.3 millions on March 15, 1918.
The balance sheet of the bank for selected
dates during the last five years appears
below.

Banque Nationale Suisse.
[In francs.]
July 23,1914. Dec. 31,1914. Dec. 31,1915. Dec. 31,1916. Dec. 31,1917. Mar. 23,1918

237,935,862
24,913,230
29,345,025
215,748,845
9,887,726
36,221,678
12,614,674

250,132,404
51,237,635
17,103,150
210,838,580
8,670,003
35,296,477
12,630,922

344,997,787
52,453,850
2,483,575
244,276,844
6,782,953
45,265,200
16,475,336

357,644,161
51,830,320
12,673,950
406,702,519
7,526,964
36,404,933
15,104,417

370,177,090
56,396,180
20,618 325
252,068,137
10,032,273
60,935,071
10,841,725

348,429,722| 566,667,040

585,909,171

712,735,545

887,887,264

795,068,801

Capital paid in
Reserve
Notes in circulation
Deposits and general accounts.
Sundry liabilities

25,000,000
1,495,620
267,919,750
50,655,888
3,358,464

25,000,000
1,495,620
455,888,905
70,930,449
13,352,066

25,000,000
1,995,620
465,608,600
81,689,308
11,615 643

25,000,000
2,440,858
536,517,955
128,915,761
19,860,971

25,000,000
2,940,858
702,302,710
137,304,071
20,339,625

25,000,000
2,940,858
646,421,900
103,738,331
16,967,712

Total
Katio of gold and silver holdings to combined note and
deposit liabilities (per cent)

348,429,722

566,667,040

585,909,171

712,735,545

887,887,264

795,068,801

62.47

49.89

55.07

59.73

48.77

56.86

Gold
Silver
Loan bank certificates
Loans and discounts
Government securities
Due from correspondents, also postal checks on hand.
Sundry assets
Total.

180,065,465
18,945,350
107,763,681
12,670,560
19,282,581
9,702,085

LIABILITIES.




890

FEDEBAL RESERVE BULLETIN.

MAY I, 191S.

j also on the leading neutral countries. Quota[ tions of the American dollar to November,
Owing to its central geographic position, for- 1916, are all above par; since then, particularly
eign exchange rates quoted in Switzerland have I since April, 1917, the rates of depreciation
come to be regarded as on the whole the most • shown for the dollar have been following pracreliable basis for international comparisons. j tically the same course as for the British and
In the following table and accompanying dia- ; French currencies, though the relative depregram are shown the fluctuations of rates quoted ! ciation on the dollar has been less than for the
on principal European belligerent countries, ; pound sterling.
FOREIGN EXCHANGE RATES.

Rates of exchange in Switzerland on principal financial centers during the period July, 1914, to December, 1917.a
[From the Swiss Bankvcrcins' Revue Economique et Financiere, 1914-1917.]
i
I

A. Rates on centers in belligerent countries.
.Date.

Month.

London
(25.2215=
100).

New York Petrograd | •»„„-« "' Berlin
Paris
m
(100=100). (5.1826-100). (266.67= ! n f £ l S , x i (123.457=
ioo).

! cioo-ioo). ,

100)

Vienna
(105.01=
100).

B. Rates on centers in neutral
countries.

j Amsterdam
(208.3193=
100).

Madrid
Stockholm
(100=100). (138.89=100).

I

Per
Per
cent, Rates. cent. Rates.

Per
Per
Per
Hates. cent. Rates. cent. Rates. cent. Rates.

Per

Rates.
1-

1914.
July....
Aug....
.Sept;
•Get
Nov
Dec

25.17 99.
25.10 99.52
25.251100.11
25.30100.55
25.49 101.06
25.47 100. 99

100.03100.03!
100.00100.00|
100.50 100.50
100.75 100.75
102.00 102.00
101.65 101.65!

1915.
Jan
Fob
Mar
Apr
May....
•June
Tulv....
Aug
Sept
Oct
Nov....
Dec

25.65 101.70
26.3610-i.51
25.80:102.29
25.521101. IS
25.331100.43
25.90!102.69
25. 03'] 01. 62
25.11 1.56
24.97 99.00
24.84 98.49
25.26 100.15
24.91 98.76

1916.
Jan
Feb...
Mar...
Apr...
May...
June...
July...
Aug...
Sept...
Oct....
Nov...
Dec...

24.80 5.33
25.02 ).2O
24.86 t. 57
24. 77 98.21
24.99 99.08
25.22 99.99
25.24 100.07
25.27 100.19
25.36100.55
25.01 v J. 16!
«,.,™
24.60 97.54|
24.11 95.59i

1917.
Jan—
Feb...
Mar...
Ai>r...
May...
June...
July...
Aug...
Sept...
Oct....
Nov...




23.93
23.88
23.98
24.57
23.98
23.00
21.65
21.80
22.35
21.50
20.6'
208

5.14 99.18
5.00) 96.48
5.071 97.83
5.171 99.76
5.20ll00.34
5.23 100.91

250.59 93.97;
Norn
(
200.93 77.60i
05
219.05 82. U\
217.'.00 SI. 37i
217.50 81.56=

99.45 99.4598.50198.50i!
95.00195.00
97.85197.85!
97.75197.75i

122.67 99.36
121.00 98.01
116.00133.96
115.12|93.25
111. 25190.12

103.92 98.96
92.00 87.61!
91.00 86.661
92.50 88.09!
89.00 84.75;
91.00 86.661

102.15J102.1,,
104.25ilO4.25
101.40 101.401
100.10 100. lOj
97.55 97.55
96.85 96.85
95.00 95.00
„„. „„.
90.80 90.80|
91.75 91.75!
90.15 90.15J
91.50 91.50
89.65; 89.65

5.29102.07
5.49105.93
5.37 103.62
5.311102.46
5.29J102.07
5.391104.00
5.37J103.62
„. „
5- 41 104.39
5.30102.27
5.37 103.62
5.3: 103.62
5.25101.30

222.50 83.44!
225.00 84.371
228.00 85.50i
i
210.00 78.75!
210.00 78.75!
190.00 71.25j
190.00 71.25
190.00 71.25
190.00 71.25
175.00 65.62!
160.00 60.00:

97.55197.55
93.50!93.50;
92.50192.50
91.12;91.12j
90.0090.00;
88.87J88.87!
85.00 85.001

115.22 93.33
111. 62190.41
110.22(89.28
108.80l88.lS
108.25-87.68
109.4088.61
109.00 88.29
108.75 88.09!
109.55 88. 74!
309.0088.29J
105.85 85.74
98.75 79.99i

90.00 85.71
84.00 79.99
82.00 78.09
81.50 77.61
80.25 76.42
81.00J77.14
80.50]76.66
80.35176.52
78. 75 74.991
77.40J73.7l!
74.37i 70.82;
67.00!63.80j

88.85!! 88.85
89.40:: 89.40
87.35! 87.351
87.6o! 87.65!
88.85!! 88.85|
89.65!! 89.65|
89. 75| 9.75!
90.0711 90.07J
91. lo11 91.15!
;
90.05;! 90.051
88.48! 88.48i
86.75; 86.75JJ
6.75!

5.20100.34
5.24 101. I t
5.22100.72
5.19100.14
5.24 101.11
5.29102.07;
5.30102.27;
5.31102.46
5.331102.84"
5.26 101.49
5.16 99.56!
5.07 97.83

155.00 58.12i
166.50 62.44:
164.50 61.69:
161.50 60.561
160.50 60.19;
162.50 60.94!
162.00 80. 75!
173.50 65.06i
171.00164.12161.00 80.37i
153.00 57.37i
151.50 56.811

5.03
5.01
5.03
5.16
5.03
4.83
4.58
4.59
4.70
4.53
4.35
4.371

144.25 54.09:
142.75 53.53!
143.00 53.621
146.00 54.751
135.00 50.62
110.00 41.25
99.00 37.12
93.50 35.06!
78.00 29.24!
65.00 24.37:
55.00 20.62:
70.00 28.25

86.101
85.90:
86.45
90.40
88.20
84.20
79.00
79.25
81-20
85.24i 78.80
81- 95 75.80
S2 75 76. 70
94.88
94.68
95.08
97.42
95.08
91.19J!
85.8"

86.10!
85.90|
86.45i
90.40!
88.20!
84.20!
79.001
79.25i
81.201
78.80!
75.80
76. 70

97.06;
96.67!
97.06
99.56
97.06
93.20
88.37
88.57
90.69
87.41
83.93
84.32;

207.55 99.63 9G.49J 96.49
212.00101.77 Nom. iNom.
211.001101.29 100.00ll09.00
213.001102. 25 96.00| 98.00
212.001101.77 98.00! 98.00
212.501102.01 99.00| 99.00

138.02; 99.37
Nom. iNom.
135.55- 97.60
13-l.OOi 96.48
133.00; 95.76
132.00! 95.04

102.001102.00
106.50H06.50
106.00106.00
106.00106.00
100.50 100.50
100.00-100.00
101.50jl01.50
101.00:101.00
100.50; 100.50
101.00:101.00
100.00:100. ooj
99.00, 99.00:

132.25; 95.22
134.50! 96.84
135.0©' 97.20
136.00' 97.92
139.00i 100. OS
142.001102.24
139.00! 100.08
138. OOi 99.36
138. OOi 99.36
140.00! 100.80
147.00:105.84
144.45! 104.00

212.75102.13
220.00105.61
211.75101.65
210.00100.81
209.87100.74
215.50103.45
216.00i 103.69
215.50103.45
216.50 103. 93
222.75106.93
223.75107.41
229.50110.17

95.37 77.25i
94.65 76.67|
92.80 75.17j
95.95 77.721
97.00 78.57J
95.55 77.48i
94.57 76.60!
'2.50 74.92;
92. 40 74.84'.
90.90 73.63!
84.60 68.53!
84.62 68.54!
69.80:69.80i
67.00" 67.00|
65.00j65.00l
73.25J73.25!
71.60I7U
67.00j67.(

62.90162.901
61.25J61.25!!
60.65160.6556.00 56. OOi
51.00! 51.00!
52.50!52. 501

63.85*60.80: 222.00 106.5' 99.001 99.00: 142.50! 102.60
65.00i 61.90i 223.50| 107.29 99.75: 99.75; 147.00! 105.84
64.10; 61.04: 223.00! 107.05 101.25.101.25! 15O.50tfO8.36
68.35:53.18 218.001104.65 101.751101. 75! 157.25113.22
67. GO'64.37! 217.50|l04.41 104.50 104.501 157.00; 113.04
68.50163.33^ 219.501105.37 107.50'107.50; 153.50; 110.52
65.65:62.52: 219.37 105.30 106. 751106. 75; 151.501109.08
63. 7560.71; 218.00104.65 107.00107. (XV 1.50-.25J108.18
O
62.90:59.90 217.20| 104.26 107.00:107.00! 149. O i 107.28
59.35:56.52: 214. 501102.97 107.00107.00: 149.00! 107.28
52.75 50.23 210.50J101.05 106. 75106. 75: 146.00J105.12
53.3750.82; 205.871 98.82 107.75107.75-. 147.50105.20

84.60 68.531
82.25 66.62i
79.25 64.19
79.25 64.19
75.10 60.83
68.50 55.48
63.50 51.43
63.75 51.64i
64.80 52.49;
63.00 51.03!
65.00 52.65i
85. 75 69.46.

54.40.51.80:
51.25148.80:
50.10 47.71
49.60 47.23
48.40 46.09j
43.50 41.42!
40. 75 38.8H
40.80 38.85'
41.50 39.52!
39.75 37.85!
40.25 38.33|
52.5()!50.00!

a Average of offer and demand quotations at the Basle bourse.

204.60 98.21
202.501 97.21
204.00! 97.93
211.00:101.29
206.90; 99.32
199.00; 95.53
189.00! 90.73
192.50' 92.41
198.50: 95.29
200.00! 96.01
188.00! 90.25
189.50 90.97

107.60,107.60 148.00106.60
106.00 106.00! 148.50I10S.92
108. 75 108.75f.
112.50 112.50
114.50114.50
114.00114.00
105.50105.50
102.25102.25
111.00111.00
106,75106.75
103.50103.50
105.25106.25

MAY 1, 1918.

Jf

?V

<i
f t H ti *A

;/

7
£

7

L

/

\
\

V

i

V
A uSi i
»/ 4
* i

ma,

1

i
I
i

1

Tr /

-

i
A

1

(IK

k "
"
\ s/
r
dx

\J9I4




\
V

A.
\

i*^

K

t

#

•55

y

\-. *^

•

ft

•V

Sd

\

^/

ss A
V
L.

\

f

—

/
>

X

\
\

\

1
\

as
j 32

\

¥

allll

r

*\
>
v *

V

x

V

\
1j

V

i

I

1

52

|
1%

1

"
1
i

\
\

1

1 44
1 46
w "48" £jJALY

mmnm

\\

f

i

I

I9IS

me

/

\/
Y
/votr/vffi

JULY
/tU6(/ST

FEBRUARY

JUNE
JULY

11 1| j I 11
I
APRIL

!

APRIL

f '

|
1 11!

fGERMANY

1

l

\

i

BRITAIN

I fr
138
1 40
42

S

\

V

1

18
20
22
!&26

Y

k

vs

A
\A
u
V

•\

Sit

fSWSPEN
"'6'"'
^spA'm"""
4
2

jrNETHERLANDS
lO
12 /-UNITED
!4 f STATES

\

r

\

12
10

Z
4
6

nk
i\

H

i

\

/

\

\

J

\SI
V

'''

r

/
/ \J

t

\

Y

\
**
*

\

T
•

\V

^N

\

\

V

-4

>

1

/
/

y
\

\

\
\

MAY

1 1I 1
SEPTEMB.
OCTOBER

JULY

XT h
\/ y J
V
T

H

>J

>/

f

/ V,
I
rs

X

A

ft

n

MARCH
APRIL

2
4
6
*%
"
8
/O \
12
/
14
Vs"
16
18
BO
22
24
26
28
30
32
3436
38
40
4Z
44
46
48
5O
52
54
56
58
60
62
64
66
68
7O
72
74
76
78
80

X

.i

JULY

A

T
V
"7
\ -•'
Iv

JANUARY
FEBRUARY

12
lO
8
€

34
32
30
28
26
24
22
20
18
J6

DECEMBER

•a

fill

OCTOBER

34
32
30
28
26
24
22.
BO
18
16

2

391

FEDERAL RESERVE BULLETIN.

58
60
62
64
66
68
70
72

76
78
80

^HUSNHRY

/RUSSIA

392

FEDEEAL RESERVE BULLETIN.

MAY 1,1918.

For the fiscal year 1918 the ordinary revenue is estimated at 1,281.04 million pesetas
and the ordinary expenditure at 1,511.25 millions, leaving a deficit of 230.21 million peFor the fiscal year 1917 the nominal deficit
was 22,450,000 pesetas, as compared with a setas.
The consolidated debt of Spain shows but a
nominal surplus of 76,900,000 pesetas of the
preceding year. Inasmuch as the total re- moderate increase for the more recent years.
ceipts includefproceeds from loans and the sale On January 1, 1914, it amounted to 9,784,of Treasury bills, the actual deficit for 1917 674,117 pesetas and by December 31, 1917, it
was 948,190,000 pesetas and the nominal sur- had increased to 10,297,687,205 pesetas, being
plus of 1916 is also changed to an actual de- composed as follows:
ficit of 323,100,000 pesetas. The following -^
, . .
Nominal capital
table shows receipts and expenditures for the last Four per cent exterior debt:
(pesetas).
1
four years.
Sealed
504,310,310
SPAIN.

{Sources, Anuario Estadistico de Espana, 1916; Espana EconGmica y
Financiera, Jan. 5 and Feb. 9,1918; 45th Annual Report of the Council*of the Corporation^ Foreign Bondholders, 1917.]

[In millions of pesetas.]
1914
Ordinary budgetary receipts
Proceeds of loans, e t c . . .
Receipts from sale of
food
Miscellaneous
•-

Total revenue
T o t a l expenditures

1916

1915

1917

1.289.43
400.00

1,202.70
620.79

1,321.64
925.74

66.62
.89

1,273.73
70.00

Domiciled in Spain
Four per cent internal debt, 1908
Five per cent redeemable debt, 1900
Four per (Jent redeemable debt, 1908
Five per cent redeemable debt, 1917

11.85
2.86

1,343.73

1,916.73

1,756.94

2,262.09

1,437.35

1,953.03

1,680.04

2,284.54

i Official Gazette, Feb. 5,1918.

Total

408,676,200
6,701,533,805
1,508,065,000
148,727,500
1,026,375,000
10, 297,687,805

The condition of the Bank of Spain before
the outbreak of the war and at the end of the
last five years is shown in the subjoined table.

Bank of Spain.
[In pesetas.]
Dec. 27, 1913. July 24, 1914.
ASSETS.

Doc. 26, 1914.

Dec. 31, 1915.

Dec. 30, 1916.

Dec. 29, 1917.

150,000,000
100,000,000
347,780,923
431,233,349
24,263,164
314,431,519
10,500,000
1,154,625
16,352,203

543,497,535
174,818.316
729,797; 592
3,272,338
3,101,765
150,000,000
100,000,000
335,939,895
344,777,352
15,460,267
344,431,519
10,500,000
1,154,625
14,615,030

572,257,273 j
147,534,145 ,
!
707,020,392 |
3,073,735 i
3,683,144
150,000,000 !
100,000,000 j
418,209,375 j
380,286,954 j
25,940,564
314,431,519
10,500,000
1,154,625
15,081,370

867,226,030
103,195,052
752,905,046
3,625,384
5,215,506
150,000,000
100,000,000
368,407,514
293,742,283
18,583,645
344,431,519
10,500,000
1,154,625
13,088,451

1,250,895,501
90,170,409
741,041,508
3,324,369
3,113,570
150,000,000
100,000,000
336,374,786
331,572,701
13,911,335
344,437,469
10,500,000
1,154,625
14,249,501

1,966,815,762
89,391,569
710,538,464
3,436,920
3,139,812
150,000,000
100,000,000
329,965,662
398,322,097
14,034,185
344,437,469
10,500,000
1,154,625
14,275,833

40,136,027
2,267,405

36,925,532
2,083,400

94,312,922
30,945,172

112,939,400
2,488,927

87,429,533

1,473,560
41,090,864
1,473,570

2,866,861,615

2,810,375,166

2,974,431,190

3,147,463,362

3,478,175,307

4,178,576,832

Capital
Surplus
Notes in circulation
Government deposits
Other deposits
Profit and loss
1
Sundry liabilities

150,000,000
20,000,000
1,924,273,725
192,369,691
476,833,879
26,557,448
76,826,872

150,000,000
20,000,000
1,919,016,650
163,077,911
497,939,579
11,362,232
48,978,794

150,000,000
20,000,000
1,965,067,625
145,507,587
610,530,807
30,523,926
52,801,245

150,000,000
24,000,000
2,100,173,900
94,415,382
710,457,846
23,367,288
45,048,946

150,000,000
26,000,000
2,360,083,500
89,832,948
760,859,207
23,519,041
67,880,611

150,000,000
26,000,000
2,782,839,400
90,020,658
959,758,445
56,939; 266
113,019,063

Total
Ratio of gold and silver holdings in vault to combined note and deposit liabilities (per cent)...

2,866,861,615

2,810,375,166

2,974,431,190

3,147,463,362

3,478,175,307

4,178,576,832

46.22

47.87

47.01

55.77

62.04

Gold in vault
With foreign correspondents and agencies..
biiver
Copper account of treasury
Bills receivable on date of report
Advances to the treasury
Treasury bills
Discou nts
Other bills and drafts
Due irom domestic correspondents
Government 4 per cent bonds
Stocks of the Tobacco Monopoly Corporation...
Stocks of the State Bank of Morocco
Heal estate
Profits from foreign operations for account of
treasury
Current account of treasury (silver)
Sunday assets
Total.
LIABILITIES.




479,220,483
193,650,084
719,454,503
6,417,330

MAY 1, 1918.

FOREIGN EXCHANGE RATES.

Regular weekly quotations for the period
since the outbreak of the war are available for
rates on London and Paris only. These are
given in the subjoined table. In order to
complete somewhat the general information, a
table has been added showing the course of
rates for cable transfers to Madrid as quoted in
New York and London about the end of each
month during 1915 to 1918.

Rates of exchange at Madrid on principal financial centers
during the period July, 1914, to February, 1918—Contd.

1915.
July 17-23
July 24-30
July 31 to Aug. 6..
Aug. 7-13
Aug. 14-20
Aug. 21-27
Aug. 28 to Sept. 3 .
Sept. 4-10
Sept. 11-17
Bates of exchange at Madrid on principal financial centers Sept. 18-24
Sept. 25 to Oct. 1..
during the period July, 1914, to February, 1918.
Oct. 2-8
Oct. 9-15
[From Espana Economica y Financiera.]
Oct. 16-22
Oct. 23-29
Oct. 30 to Nov. 5..
Franc.
Nov. 6-12
Nov. 13-19
Nov.20-26
Nov. 27 to Dec. 3..
Low.
High.
Dec. 4-10
Dec. 11-17
Dec. 18-24
1914.
Dec. 2,5-31
25.90
26.26
June 27 to July 3 . .
102.90
104.60
1916.
26.16
26.63
July 4-10
103.50
104.65
26.01
26.13
July 11-17
103.40
103.80 Jan. 1-7
26.13
26.11
July 20-26
103.65
103.85 Jan. 8-14
26.07
25.60
July 27-31
103.20
103.65 Jan. 15-21
25.50
25.00
Aug. 1-7
100.00
100.00 Jan. 22-28
25.00
25.00
89.50 | 100.00 Jan. 29 to Feb. 4 . .
Aug. 8-14
25.00
25.00
95.00
Aug. 15-21
100.00 Feb. 5-11
25.00
96.00
Aug. 22-28
25.00
99.00 Feb. 11-18
25.00
97.50
Aug. 29 to Sept. 4.
24.90
98.00 Feb. 19-25
24.85
95.00
Sept. 5-11
24.75
97.00 Feb. 26 to Mar. 3 . .
25.08
96.00
Sept. 12-18
24.85
100.00 Mar. 4-10
26.00
99.00
101.00 Mar. 11-17
Sept. 19-25
25.08
25.90
99.50
100.00 Mar. 18-24
Sept. 26 to Oct. 2..
25.35
25.90
100.00
101.25 Mar. 25-31
Oct. 3-9
25.70
26.04
102.00
102.25 Apr. 1-7
Oct. 10-16
25.90 !
26.67
104.00
105.75 Apr. 8-14
26.30 i
Oct. 17-23
26.22
103.75
104.50 Apr. 15-21
25.97 i
Oct. 30 to Nov. 6..
26.14
103.80
104.25 Apr. 22-28
26.01
Nov. 7-13
25.97
103.80
104.10 Apr. 29 to May 5 . .
25.87
Nov. 21-27
25.96
103.70
104.00 May&-12
25.80
Nov. 28 to Dec. 4..
26.00
104.00
104.20 May 13-19
Dec. 5-11
25.90
26.00
103.40
104.10 May 20-26
Dec. 12-18
25.88
25.91 i 102.75
103.25 May 27 to June 2 . .
Dec. 19-25
June 3-9
1915.
June 10-16
i
June 17-23
Dec. 26 to Jan 1 . . .
25.10
26.00
100.40
104.10 Juno 24-30
Jan. 2-8
25.15
25.35
100.15
101.25 July 1-7
Jan. 9-15
25.15
25.30
100. 20
100.75 July 8-14
Jan. 16-22
25.20
25.70
100.40
101.20 July 15-21
Jan. 23-29
25.13
25.21 I 100.15
100.60 July 22-28
Jan. 30 to Feb. 5...
25.00
25.20 I 100.05
100.20 July 29 to Aug. 4 . .
Feb. 6-12
25.07
25.13 j
99.80
100.10 Aug. 5-11
Feb. 13-19
21.65
25.02
98.00
99.65 Aug. 12-18
Feb. 20-26
24.64
24.72 '
97.50
98.35 Aug. 19-25
Feb. 27. to Mar. 5.
24.46
24.70 !
96.20
97.50 Aug. 26 to Sept. 1 Mar. 6-12
24.15
24.43 |
95.20
96.65 Sept. 2-8
Mar. 20-26
24.18
24.35 j
94.95
95.70 Sept. 9-15
Mar. 27 to Apr. 2..
24.00
24.20 i
94.20
95.05 Sept. 16-22
Apr. 3-9
23.90
24.11 ! I 93.75
94.60 Sept. 23-29
Apr. 17-23
24.04
24.14
94.05
94.75 Sept. 30 to Oct. 6..
Apr. 24-30
24.00
24.22
94.30
95.00 Oct. 7-13
May 1-7
24.45
24.70
95.00
97.10 Oct. 14-20
May 8-14
24.48
24.76
96.00
97.50 Oct. 21-27
May 15-21
24.80
25.25
97.00
98.00 Oct. 28 to Nov. 3 . .
May 22-28
24.89
25.33
96.15
97.75 Nov. 4-10
May 29 to June 4..
24.96
25.11
96.25
97.00 Nov. 11-17
25.05
June 5-11
25.24
96.40
97.00 Nov. 18-24
25.17
June 12-18
25.52
96.50
98.25 Nov. 25 to Dec. 1..
25.40
June 19-25
25.70
97.90
98.75 Dec. 2-8
25.52
June 26 to July 2...
26.00
94.40
97.40 Dec. 9-15..
25.39
July 3-9
25.90
94.25
95.75 Dec. 16-22
25.00
25.35
Julv 10-16
93.25
94.50 Dec. 23-29




393

FEDEEAL RESERVE BULLETIN.

25.00
25.06
24.81
24.85
25.00
24.70
24.88
24.87
24.80
24.76
24.69
24.67
24.74
24.80
24.79
24.90
24.91
25.00
25.05
24.97
25.05
25.13
25.07
25.00

25.14
25.13;
25.07
24.93
25.20
24.90
24.96
24.94
24.95
24.86
24.85 |
24.75
24.89
24.87
25.00
24.95
25.03
25.10 I
25.17 1
25.17 i
25.14 !
25.20 |
25.14 !
25.10 I

93.50
92.60
91.00
90.00
89.50
89.75
89.60
88.80
89.90
89.90
90.25
90.40
90.00
90.00
90.10
89.75
89.80
90.25
90.30
90.75
90.85
90.70
90.00

95. 25
93.75
92.75
92.00
91.00
90.95
90.30
90.20
90.50
90.75
90.90
90.90
90.90
90.75
91.00
90.50
90.50
90.80
90.70
91.55
91.20
91.05
91.20
90.50

24.97
25.02
25.02
25.07
25.06
25.05
25.07
25.07
25.04
24.97 j
24.92
24.84
24.60
24.66
24.61
24.51
24.22
24.04
24.05
24.22
23.88
23.40
22.40
23.36
23.25
23.43
23.41
23.43
23.12
23.44
23.44
23.51
23.49
23.55
23.54
23.60
23.74
23.70
23.69
23.50
23.61
23.50
23.40
23.30
23.15
23.08
22.95
22.89
22.00
21.98 ,
22.05
22.32 !

25.06 !
25.10 j
25.12
25.13 i
25.14 |
25.14
25.10
25.10
25.11
25.08
25.04
25.03
24.82
24.78
24.70 |
24.66 :
24.50 i
24.20 i
24.49 !
24.47 :
24.17 !
23.99 !
23.58 |
23. 76 i
23.55 !
23.60 i
24.54 !
23.08 |
23.70
23.60
23.75
23.75
23.75
23.65
23.08
23.74
23. 84
23. 82
23. 80
23.76
23.72
23.03 |
23.50
23.50
23.35
23.34
23.28
23.10
22.60
23.10
22.80
22.45

89.60
89.70
89.50
89.85
89.10
89.15
89.35
89.40
89.40
88.75
88.00
87.25
86.00
86.30
84.85
84.85
85.65
85.00
85.20
85.75
84.65
83.50
8.1. 50
S2.90
82. 50
83.15
83.00
83.25
83.00
83.70
83.50
83.75
83.50
83.60
83.85
84.20
85.00
85.10
85.10
84.55
84.90
84.65
84.15
84.05
83.50
83.00
82.00
82.40
79.00
78.80
78.00
80.25

90.10
90.00
90.00
90.00
89. 85
89.49
89.60
89.75
89.90
89.40
88.40
88.00
87.30
87.00
86.30
86.40
86.10
85.55
87.00
86.90
85. 55
85.00
83. 50
84. 50
83.75
83.70
83.75
84. GO
S4.15
ft 4.00
84.50
84.50
84.50
84.05
84.35
84.90
So. 50
85.50
85.40
85.70
85.40
85.05
84.75
84.70
84.05
84.10
83.80
83.25
83.25
83.00
81.00
81.25

394

MAY 1,1918.

FEDERAL EESERVE BULLETIN.

Rates of exchange at Madrid on principal financial centers Rates of exchange at Madrid on principal financial centers
during the period July, 1915, to February, 1918—Contd.
during the period July, 1914, to February, 1918—Contd.
Franc.

Pound.
i Low.
1917.

!
;

! High.

!
;
;
i
1
i
!

1
1
j
i
j
;
'
i
1
j
i
i

22.16 !
22.28 j
22.32 !
22.30
22.33
22.37
22.40
22.45
22.43
22.40
22.26

22.28
21.92 j
21.87
21.55
21.80
21.78
21.47
21.50
21.45
21.32
20.70 .
20.64 ;
19.98 !
20.10 !
20.00 !
20.27 :i

20.28
20.48 !
20.53 i
20.57 i
20.82 i
20.87 j

22.36
22.50
22.45
22.37
22.39
22.68
22.73
22.54
22.58
22.54
•22.43
22.31
22.25
21.98
22.20
22.21
21.90
21.75
21.62
21.59
21.50
21.32
20.89
20.65
20.52
20.52
20.58
20.52
20.81
20.75
21.03
20.97
21.02 :

79.90
80.50
80.40
80.40
80.25
80.50
80.50
80.70
80.60
80.55
SO. 25 j

80.00 I
78.60
78.80
78.80
80.30
80.35
79.00
79.05
78.75
78.00
76.15
75.60
73.00
73.20
73.20 j
74.00

74.10
75.00

74.90
75.00
75.60

75.95

80.60
81.10
80.80
80.70
80.70
81.75
81.90
81.10
81.25
80.90
80.70
80.25
80.00
79.10
81.75
82.10
80.65
80.40
79.75
79.30
78.80
78.20
76.75
75.60
71.90
74.90
74.75
75.10
76.75
75.75
76.75
76.50
76.40

1917.
Aug. 18-24
Aug. 25-31
Sept. 1-7
Sept. 8-14...
Sept. 15-21
Sept. 22-28
Sept. 29 to Oct. 5 .
Oct. 6-12
Oct. 13-19
Oct. 20-26
Oct. 27 to Nov. 2 .
Nov. 3-9,
Nov. 10-16
Nov. 17-23
Nov. 24-30
Dec. 1-7
Dec. 8-14
Dec. 15-21
Dec. 22-28
1918.
Dec. 29 to Jan. 4
Jan.5-11
Jan. 12-18
J a n . 19-25
Jan.26 toFeb. 1
F e b . 2-8
F e b . 9-15
F e b . 16-22
F e b . 23 to Mar. 1

Franc.

High.

Low.

i

Dec. 30 to J a n . 5
J a n . 6-12
J a n . 13-19
J a n . 20-26...1
J a n . 27 to F e b . 2
F e b . 3-9
F e b . 10-16
F e b . 17-23
F e b . 24 to Mar. 2
Mar.3-9
Mar. 10-16
Mar.17-23
Mar.24-30
Mar. 31 to Apr. 6
Apr. 7 - 1 3 . . .
A p r . 14-20
Apr.21-27
A p r . 28 to May 4
May 5 - 1 1 . . . . . .
May 12-18
May 19-25
May 26 to J a n e 1
June 2-8
June 9-15
June 16-22
June 23-29
June 30 to Julv 6
July 7-13....."
July 14-20
July 21-27
July 28 to A u g . 3
Aug. 4-10
Aug. 11-17

Pound.

20.91
21.48
21.00
21.15
20.70
20.15
20.32
20.25
20.30
20.35
20.20
20.22
20.25
20.08
20.09
19.61
19.64
19.64
19.61

21.90
21.62
21.75
21.43
21.36
20.72
20.88
20.70
20.90
20.57
20.48
20.37
20.40
20.22
20.26
20.10
20.20
19.86
19.70

19.49

19.65

ft

C1)
19.79
19.64
19.62
19.67

20.00 i
19.75 i
19. 70 !
19.73 !

76.00
78.00 |
76.50
76.95
75.15
73.30
73.75
73.40
74.00
74.10
73.40
73.80
74.00
73.40
73.75
71.75
72.40
72.15
72.15

1.75
79.30
[79.00
"78.50
77.80
75.40
76.00
75.00
75.75
74.90
75.2o
74.30
74.60
74.00
74.30
73.80
74.00
73.20
72.60

71.50

72.20

'72.* 45*

r 72.60

73.00
72.40
72.30 I
71.70 I

75.50
72.60
72.45

1 Nominal.

Comparative rates for cable transfers to Madrid as quoted in New York and London, 1915-1917.
[Source: Daily quotation sheets of the National City Bank of New York City and the London Economist.]
New York
(par=5.18).

Jan. 26...
Feb. 2 3 . .
Mar. 3 0 . .
Apr. 2 7 . .
May 25...
June 2 9 . .
July 27...
Aug. 24..
Sept. 28.
Oct. 26...
Nov. 30..
Dec. 28...
Jan. 25
Feb. 29
Mar. 28
Apr. 27
May 23
June 27
July 25
Aug. 29
Sept. 26
Oct. 31
Nov. 28
Dec. 28

1915.

Per cent.

I

5.263
;). 23
5.23
5.23
5.23

101.60
100.97
102.90
100.97
100.97

25.23
24.75
24.20
24.25
25.20
25.80
25.15
24.90
24.85
24.87
25.15
25.10

5.249
5.163
5.195
5.063
5.025
4.926
4.926
4.938
4.963
4.914
4.843
4.678

101.33
99.67
100.29
97.74
97.01
95.10
95.10
95.33
95.81
94.86
93.50
90.31

25.12
25.11
24.80
24.28
24.00
23.55
23.55
23.68
23.83
23.50
23.10
22.35

1916.

Per cent.
100.02
98.12
95.94
96.13
99.90
102.28
99.70
98.71
98.51
98.59
99.70
99.50

Jan. 30
F e b . 27
Mar. 29
Apr. 24
May 31
June 26
July 26
Aug. 30
Sept. 27
Oct. 25
Nov. 27
Dec. 27

09.58
99.54
•98.31
96.25
95.14

Jan. 29
Feb. 28
Mar. 26
Apr. 11

1917.

London
(par=25.225).

4.673
4.728
4.587
4.587
4.385
4.211
4.367
4.505
4.124
4.264
4.219
4.082

Per cent.
90.21
91.27
88.55
88.55
84.65
81.29
84.31
86.97
79.61
82.32
81.45
78.80

22.43
22.58
22.15
21.83
21.00
20.20
20.80
21.50
20.15
20.48
20.22
19.68

Per cent.
;88.92
89.52
' 87.81
86.54
83.25
80.08
82.46
85.23
79.88
81.19
80.16
78.02

4.124
4.107
3.922
3.731

79.61
79.29
75.71
72.03

19.70
19.58
18.66
17.55

78.10
77.62
73.97
69.57

1918.

93.36
93.88
94.47
93.16
91.58
88.60

The premium on the peseta, as measured by
the depreciation of the dollar, appears for the
first time in the early part of 1916. By the
end of 1916 dollar exchange on Madrid had
declined 10 per cent below par and on April




New York
(par=5.18).

London
(par =25.225).

11, 1918, was quoted at a discount of about
28 per cent, following practically the same
downward course as sterling exchange, the
latter, as a rule, showing a slightly larger rate
of depreciation than dollar exchange.

MAY

FEDERAL RESERVE BULLETIN.

1, 1918.

395

over and above the requirements for such purposes shall
be coined into standard silver dollars or held for the purOn April 18 the Senate adopted Senate bill pose of such coinage, and silver certificates shall be issued
4292, entitled "A bill to conserve the gold to the amount of such coinage. The net amount of silver
supply of the United States; to permit the so purchased, after making allowance for all resales, shall
not exceed at any
time the amount needed to
an
settlement in silver of trade balances adverse aggregate number onestandard silver dollars equalcointhe
of
to
to the United States; to provide silver for sub- aggregate number of standard silver dollars theretofore
sidiary coinage and for commercial use; to melted or broken up and sold as bullion under the proviassist foreign Governments at war with the sions of this act, but such purchases of silver shall continue
enemies of the United States; and for the until the net amount of silver so purchased, after making
allowance for all resales, shall be sufficient to coin thereabove purposes to stabilize the price and en- from an aggregate number of standard silver dollars equal
77
courage the production of silver.
The meas- to the aggregate number of standard silver dollars theretoure was sent to the House Committee on Bank- fore so melted or broken up and sold as bullion.
ing and Currency and discussed on April 19, SEC. 3. That sales of silver bullion under authority of
being adopted by the House on April 20, and this Act may be made for the purpose of conserving the
gold in
United States, of facilitating
signed by the President on April 23. As thus ! existing stock ofin silver thetrade balances adverse to the
the settlement
of
adopted, the measure reads as follows:
United States, of providing silver for subsidiary coinage,
[S.4292.J
and for commercial use, and of assisting foreign governA BILL To conserve the gold supply of th*» United States; to permit ments at war with the enemies of the United States. The
the settlement in silver of trade balances adverse to the united
States; to provide silver for subsidiary coinage and for commercial allocation of any silver to the Director of the Mint for subuse; to assist foreign governments at war with the enemies of the
United States; and for the above purposes to stabilize the price sidiary coinage shall, for the purposes of this Act, be reand encourage the production of silver.
garded as a sale or resale.
Be it enacted by the Senate and House of Representatives
SEC. 4. That the Secretary of the Treasury is authorized,
of the United States of America in Congress assembled, That from any moneys, in the Treasury not otherwise approthe Secretary of the Treasury is hereby authorized from priated, to reimburse the Treasurer of the United States
time to time to melt or break up and to sell as bullion for the difference between the nominal or face value of all
not in excess of three hundred and fifty million standard standard silver dollars so melted or broken up and the value
silver dollars now or hereafter held in the Treasury of the of the silver bullion, at $1 per ounce of silver one thousand
United States. Any silver certificates which may be out- fine, resulting from the melting or breaking up of such
standing against such standard silver dollars so melted or standard silver dollars.
broken up shall be retired at the rate of $1 face amount of
SEC. 5. That in order to prevent contraction of the cursuch certificates for each standard silver dollar so melted rency, the Federal reserve banks may be either permitted
or broken up. Sales of such bullion shall be made at or required by the Federal Reserve Board, at the request
such prices not less than §1 per ounce of silver one thou- of the Secretary of the Treasury, to issue Federal reserve
sand fine and upon such terms as shall be established from bank notes, in any denominations (including denominatime to time by the Secretary of the Treasury.
tions of $1 and $2) authorized by the Federal Reserve
SEC. 2. That upon every such sale of bullion from time Board, in an aggregate amount not exceeding the amount
to time the Secretary of the Treasury shall immediately of standard silver dollars melted or broken up and sold as
direct the Director of the Mint to purchase in the United bullion under authority of this Act, upon deposit as proStates, of the product of mines situated in the United vided by law with the Treasurer of the United States as
States and of reduction works so located, an amount of security therefor, of United. States certificates of indebtedsilver equal to three hundred and seventy-one and twenty- ness, or of United States one-year gold notes. The Secrefive hundredths grains of pure silver in respect of every tary of the Treasury may, at his option, extend the time of
standard silver dollar so melted or broken up and sold as payment of any maturing United States certificates of inbullion. Such purchases shall be made in accordance debtedness deposited as security for such Federal reserve
with the then existing regulations of the Mint and at the bank notes for any period not exceeding one year at any
fixed price of $1 per ounce of silver one thousand fine, de- one extension and may, at his option, pay such certificates
livered at the option of the Director of the Mint at New of indebtedness prior to maturity, whether or not so exYork, Philadelphia, Denver, or San Francisco. Such tended. The deposit of United States certificates of insilver so purchased may be resold for any of the purposes debtedness by Federal reserve banks as security for Federal
hereinafter specified in section three of this act, under reserve bank notes under authority of this Act shall be
rules and regulations to be established by the Secretary deemed to constitute an agreement on the part of the Fedof the Treasury, and any excess of such silver so purchased eral reserve bank making such deposit that the Secretary
55543—18
6




Silver Coinage.

396

FEDERAL RESERVE BULLETIN.

of the Treasury may so extend the time of payment of such
certificates of indebtedness beyond the original maturity
date or beyond any maturity date to which such certificates of indebtedness may have been extended, and that
the Secretary of the Treasury may pay such certificates in
advance of maturity, whether or not so extended.
SEC. 6. That as and when standard silver dollars shall
be coined out of bullion purchased under authority of this
Act, the Federal reserve banks shall be required by the
Federal Reserve Board to retire Federal reserve bank notes
issued under authority of section five of this Act, if then
outstanding, in an amount equal to the amount of standard silver dollars so coined, and the Secretary of the Treasury shall pay off and cancel any United States certificates
of indebtedness deposited as security for Federal reserve
bank notes so retired.
SEC. 7. That the tax on any Federal reserve bank notes
issued under authority of this Act, secured by the deposit
of United States certificates of indebtedness or United
States one-year gold notes, shall be so adjusted that the
net return on such certificates of indebtedness, or such
one-year gold notes, calculated on the face value thereof,
shall be equal to the net return on United States two per
cent bonds, used to secure Federal reserve bank notes,
after deducting the amount of the tax upon such Federal
reserve bank notes so secured.
SEC. 8. That except as herein provided, Federal reserve
bank notes issued under authority of this Act shall be subject to all existing provisions of law relating to Federal
reserve bank notes.
SEC. 9. That the provisions of Title VII of an Act approved June fifteenth, nineteen hundred and seventeen,
entitled "An Act to punish acts of interference with the
foreign relations, the neutrality, and the foreign commerce
of the United States, to punish espionage, and better to
enforce the criminal laws of the United States, and for
other purposes," and the powers conferred upon the President by subsection (b) of section five of an Act approved
October sixth, nineteen hundred and seventeen, known
as the "Trading with the Enemy Act," shall, in so far as
applicable to the exportation from or shipment from or
taking out of the United States of silver coin or silver
bullion, continue until the net amount of silver required
by section two of this Act shall have been purchased as
therein provided.
COMMITTEE REPORT.

The report submitted by the Senate Committee on Banking and Currency in behalf of
the bill was as follows:
The Committee on Banking and Currency, to which was
referred the bill (S. 4292) to conserve the gold supply of
the United States; to permit the settlement in silver of
trade balances adverse to the United States; to provide
silver for subsidiary coinage and for commercial use; to




MAY 1,1918.

assist foreign governments at war with the enemies of the
United States; and for the above purposes to stabilize the
price and encourage the production of silver, having considered the same, report favorably thereon with certain
amendments.
The bill authorizes the Secretary of the Treasury to
melt 250,000,000 standard silver dollars and use the same
as a means of settling our trade balance adverse to the
United States, and thereby conserve the gold supply of
the United States, and for the purposes otherwise named.
The silver so used is to be valued at not less than SI per
ounce, upon terms to be established by the Treasury
Department. It authorizes the Treasury Department to
buy silver at $1 per ounce to restore the amount of silver
dollars melted up.
Section 3*of the act authorizes the silver bullion obtained
from melting the dollars to be used for the purpose of the
act, and to set apart any portion of such silver required to
the use of the Director of the Mint for subsidiary coinage.
Section 4 authorizes the Secretary of the Treasury to
reimburse the Treasurer of the United States for the difference between the face value of the silver dollars taken and
the bullion value of such dollars. In other words, to
balance the accounts of the Treasurer of the United States
as to the seniorage on such dollars which would reappear
when hereafter such silver is reminted.
Section 5 authorizes the Reserve Board to require the
reserve banks to issue bank notes of small denominations
to take the place of silver certificates, basing such bank
notes on United States certificates of indebtedness or on
one-year gold notes, and permitting the extension of such
notes or certificates for the convenience of the transaction
of this business.
Section 6 requires the retirement of the Federal Reserve
bank notes so issued when the new silver certificates shall
have been issued against silver dollars so coined.
Section 7 allows the Federal Reserve Bank the same
earning upon the issuance of these bank notes which are
otherwise provided in the national-bank act.
Section 9 is added in order to enable the United States
to acquire the silver necessary to restore that which is
temporarily withdrawn for the purposes of the act. If the
war should suddenly terminate, it would be necessary to
continue the President's power to issue licenses on the
export of silver until the Government is safeguarded.
This bill has been prepared with great care by the
officials of the Treasury Department and meets with the
approval of your committee, who recommend its immediate passage, as there is at present a very urgent demand
for the use of this metallic silver.
Under the espionage bill, title 7, as approved June 15,
1917, the President was authorized to control exports
under section 1. But this was only during the war and not
after the war.
The act to punish trading with the enemy,' approved
October 6, 1917, under section 5, paragraph B, authorized

MAY 1, 1918.

FEDERAL RESERVE BULLETIN.

the President to control by license the exporting or earmarking of gold or silver, but this also was an act which
contemplated its exercise during the war. For these
reasons section 9 is justified.

397

month not less than $2,000,000 and not more
than S4,000,000 worth of silver bullion. The
standard silver dollars coined therefrom were
to be full legal tender for all debts public and
private, "except where otherwise expressly
The United States Purchases of Silver.
stipulated in the contract." Certificates of
Herewith is printed a brief statement adapted denominations not less than $10 were authorfrom the Report of the Monetary Commission, ized to be issued, against deposits of the coined
1898, setting forth the course of legislation dollars. The act passed the Senate on Februwhich determines the volume of silver pur- ary 15, 1878, by a vote of 48 to 21, but was
chased and held by the Treasury of the United returned by President Hayes on February 28
States against silver certificates outstanding, with a veto message expressing his objections.
the status of which has been temporarily On the same day the House passed it over his
veto by a vote of 196 to 73, and the Senate by
changed by the act of April 23, 1898:
By the coinage revision act of February 12, a vote of 46 to 19.
Under this act the purchase of silver bullion
1873, the silver dollar of 412J grains of standand the coinage of silver dollars were at once
ard silver was dropped from the list of coins to
be executed at the mints. At the time neither resumed, the amount of silver actually purgold nor silver was in use as money in the chased being kept by each Secretary of the
United States, where for more than a decade Treasury practically at the minimum, $2,000,000
depreciation of the paper currency had driven per month. The following table shows the
specie out of circulation, while for 40 years the purchase of silver under this act in each fiscal
silver dollar had been at a premium as com- • year and the coinage of standard silver dollars
pared with gold, and even before the legal- i therefrom:
tender paper had displaced both metals the : Amount, cost, and average price of silver purchased under
silver dollar had long been too valuable to cir- ! the act of Feb. 28, 1878, and coinage of silver dollars thereculate as money. In the 81 years since the \ from.
establishment of the mint only 8,031,238
Average
silver dollars had been coined, most of these Fiscal years. Fine ounces.
price per Coinage of
Cost.
silver
fine
dollars.1
for use by jewelers or for exportation.
ounce.
Numerous bills for the coinage of silver were
1878
10,809,350.58 313,023,268.96 SI. 0248 88,573,500
introduced into Congress and discussed.
1879
1.1218 27,227,500
21,593,642.99
19,248,086.09
1880
1.1140 27,933,750
22,057,862.64 25,235,081.53
A bill providing for the free coinage of the 18S1
1.1328 27,637,955
19,709,227.11 22,327,874.75
1882
1.1351 27,772,075
21,190,200.87 24,054,480.47
old silver dollar of 412J grains of standard 1883
1.1174 28,111,119
25,577,327.5S
22,889,241.24
1884
1.1120 28,099,930
21,922,951.52 24,378,383.91
silver (371J grains of fine silver) was passed by 1885
1.0897 28,528,552
21,791,171.61 23,747,460.25
1886
1.0334 29,838,905
22,690,652.91 23,44.8,960.0'
the House of Representatives December 13, 1887
.9810 33,266,831
26,490,008.04 25,988,620.46
1888
.9547 32,718,673
25,386,125.32 24,237,553.20
. 9338 33,793,860
26,468,861.03 24,717,853.81
1876, by a vote of 167 to 53, but was not acted 1889
1890
. 9668 35,923,816
27,820,900.05 26,899,326.33
3,049,426.46
1.0901
2,797,379.52
8,740,327
upon by the Senate. A similar measure intro- 1891
duced by Mr. Bland, of Missouri, was again
291,272,018.56 308,279,260.71
Total
1.0583 378,166,793
passed by the House on November 5, 1877, by
i "At the date of the passage of the act of Fob. 28,1878, there was some
a vote of 163 to 34. In the Senate the bill was 3,000,000 ounces of silver bullion on hand that had been purchased to
provide a bullion fund, as required by sec. 3545 of the Revised Statutes.
reported from the Committee on Finance by There was also a balance of bullion purchased under the act of Jan. 14,
1875 (the resumption act), for the subsidiary silver coinage. A part of
Senator Allison with important amendments, this bullion was used in the manufacture of silver dollars, which will
account for the number coined in excess of what the quantity of silver
the chief of which was the abandonment of the bought under the act of Feb. 28,1S78, would Droduce."—Letter of Director
of ike Mint, Feb. 8,1898.
free coinage provision and the substitution
In spite of the steady purchases of silver
therefor of a section requiring the Secretary
of the Treasury to purchase and coin each by the United States, the price of silver con-




398

tinned to fall. The bullion value of the silver
dollar, which was about 90 cents when the act
was passed, fell to 88 cents in 1881, to 82.3
cents in 1885, and to 72.3 cents in 1889.
It was soon found that there was no demand
for more than 30,000,000 or 35,000,000 of silver
dollar pieces in circulation as coins. But the
provision for the issue of certificates made it
possible for some time to force this stream of
silver into the channels of circulation without
serious difficulty, because, owing to the price
of bonds, the national bank circulation began
about this time to contract.
Legislation in 1882 made it impossible for the
banks thereafter to formally refuse to accept
the silver or certificates for clearing-house
balances, while as a matter of fact in the
larger clearing houses silver has not been used.
As the first certificates were not issued in
denominations below $10, the Treasury soon
found it difficult to force into the channels
of circulation paper representing the $2,000,000
of $2,500,000 which were being coined each
month. Consequently, silver and paper representing it began to accumulate in the Treasury
in spite of efforts to force it out, involving the
payment of express charges on large sums in the
years 1882-1886. In 1885 the Treasury
inaugurated the policy of retiring the $1 and $2
United States notes in order to make a vacuum
in the circulation to be filled by silver dollars.
During the fiscal year 1886, the amount of
United States notes of $1 and $2 outstanding
was reduced by $14,439,000. In the same
period the silver dollars in circulation increased
$13,998,000. Meanwhile the accumulation of
silver in the Treasury had grown from $39,000,000 in 1884 to $64,000,000 in 1885, and to
$93,000,000 in 1886, at which time over half
of the large available cash reserve in the
Treasury was in silver dollars.
In 1886 the Treasury secured the enactment
of legislation1 permitting the issue of silver




MAY 1,1918.

FEDERAL RESERVE BULLETIN.

1

Act of Aug. 4, 1886.

certificates in denominations of $1, $2, and $5.
By the use of these certificates it has since
been possible to keep in actual circulation,
irrespective of ^the bank reserves, the larger
part of the silver coinage. There were on
November 1, 1897, $372,838,919 of silver
certificates outside of the Treasury. Of these
only $31,593,302 were held (Oct. 5,1897) by the
national banks, leaving $341,245,617 in circulation in other channels. From this temporary
settlement in 1886 of the vexatious question
of the disposition of the silver coinage, matters
moved more smoothly until 1890. As -the
larger certificates were replaced by others of
smaller denominations which were more easily
absorbed into circulation, less silver dollars
and certificates were forced on the government
through payment for customs, and the troublesome accumulation in the Treasury melted
away.
In 1890, however, the act of July 14, 1890,
commonly known as "the Sherman Act7' was
adopted. This directed the Secretary of the
Treasury to purchase monthly 4,500,000 ounces
of silver bullion, to be paid for in Treasury notes
redeemable in coin. Until July 1, 1891,
2,000,000 ounces per month were to be coined
into standard silver dollars; after that date,
only so much " as may be necessary to provide
for the redemption of the Treasury notes"
was to be coined. Under this act the amount
of silver bullion purchased, the cost of the same,
and the amount of silver dollars coined therefrom, are shown in the following table:
Purchases of silver bullion under the act of July 14, 1890.
Average
price
per fine
ounce.

1891
1892
1893
1894
Total

Amount of
silver
purchased.

Cost.

Fine ounces.
48,393,113.05
54,355,748.10
54,008,162.60
11,917,858.78

Fiscal yoar July 1—

$50,577,498.44
51,106,607.96
45,531,374.53
8,715,521.32

SI.0451
.9402
.8430
.7312

168,674,682.53

155,931,002.25

.9244

MAY 1,1918.

399

FEDERAL RESERVE BULLETIN.

been coined into 72,572,857 silver dollars. The
difference, $18,347,816.10, being the seigniorage,
has gone into the Treasury as revenue—being
accounted for as a "miscellaneous receipt."
Down to July 1, 1897, the coinage of the silAmount of
Treasury
notes out- ver dollar had resulted in a seigniorage of
standing.
$69,887,532.29, on account of the silver purchased under the act of 1878, and $17,216,§50,228,417 322.87 on account of that purchased under the
101,712,071
147,190,227 act of 1890—a total of $87,103,855.16.
That
152,584,417
146,088,400 is to say, the silver dollars coined to July 1,
129,683,280
114,867,280 j 1897, from bullion purchased under these two
106,348,280
acts exceed by $87,103,855.16 the cost of the
silver from which they have been coined.

Treasury notes of 1890 issued in payment for silver purchased,
coinage of silver dollars from bullion purchased under act
of 1890, and amount of Treasury notes canceled and
retired.

Fiscal year
July 1—

Silver dollars coined
Treasury
from bulnotes issued. lion of act
of 1890.

Amount of
Treasury
notes redeemed in
silver and
canceled.

850,577,498
51,106,608
45,531,375
8,715,521

1891
1892
1893
1894
1895
1896
1897
18981
Total

§27,292,475
3,450,995
5,343,715
758
3,956,011
7,500,822
21,203,701
3,824,380

$3,346,585
6,496,017
16,405,120
14,816,000
8,519,000

155,931,002

72,572,857

49,582,922

i First six months only, from July 1 to Dec. 31, 1897.

The notes issued under this act were made
by law redeemable on demand, in coin, at the
Treasury or at the office of any assistant treasurer and when so redeemed might be reissued.
The act further provided that upon demand
of the holder the Secretary shall, under such
regulations as he may prescribe, redeem such
notes in gold or silver coin, at his discretion, it
being the established policy of the United
States to maintain the two metals on a parity
with each other upon the present legal ratio, or
such ratio as may be provided by law.
This imposed upon the Secretary the legal
duty of maintaining all the silver currency of
the United States on a parity with gold. Under it each Secretary of the Treasury has pursued the policy of refusing to discriminate
against coins of either metal. When the holder
of any coin obligation of the Government—
whether United States note, Treasury note, or
draft on the Treasury—has preferred silver, he
has been given it; and where, on the other
hand, he has preferred gold, the Treasury Department has not refused to furnish it.
By the act of November 1, 1893:, the purchasing clause of the act of July 14, 1890, was
repealed. Since that date, the coinage of the
silver bullion has been going on more or less
steadily and some $50,000,000 of the coin notes
have been paid in silver dollars and canceled
and retired. Prior to January 1, 1898, 56,194,139.46 ounces of fine silver purchased under the
act of 1890 (which had cost $54,225,040.90) had




Capital Issues Committee Statements.
Following are statements for the press issued
during April by the Capital Issues Committee
of the Federal Reserve Board:
APRIL 3,

1918.

It is expected that the provision in the War
Finance Act reducing to $100,000 the minimum of issues of all classes to be dealt with by
the Capital Issues Committee will result in a
very material increase in the number of applicants. In anticipation of this expected increase, the Capital Issues Committee stated
to-day that those intending to submit issues
would greatly facilitate the disposition of their
applications if they would prepare them in
accordance with the detailed instructions to
applicants issued by the Capital Issues Committee of the Federal Reserve Board. Copies
of these instructions can be obtained from the
subcommittees on capital issues located at
the Federal Reserve Bank in each district.
APRIL 4,

1918.

Coordinating its work with that of the
Treasury Department in connection with the
approaching campaign for the third Liberty
loan, the Capital Issues Committee announced
to-day that it had adopted the following resolution:
Voted to recommend the postponement wherever possible of the issue or public offering of securities of every
kind during the pending campaign for the liberty loan;
this recommendation not applying to cases where securities must be sold or offered to provide for maturities. In
case of issues already passed upon by the Capital Issues
Committee but not as yet made or offered for sale, it is
hoped that such issues, wherever practicable, may also be
postponed and that the subcommittees will use their
influence to that end.

400

FEDERAL RESERVE BULLETIN.

APRIL 8,

1918.

The problem of making available to the Government to the greatest possible degree, capital,
labor, material, and transportation means creating a surplus of each of these elements so
vital to our national needs at this time. The
creation of a surplus of labor necessarily involves the creation of a short period of temporary unemployment, during which labor disengaged from unessential industry may be diverted to essential industry.
To minimize any hardship upon labor arising
from the creation of this unavoidable hiatus is
the chief concern of all. The Capital Issues
Committee is closely studying the problem
from this point of view as it is anxious that its
operations should not create idleness any faster
than the demand for labor can counteract.
For this purpose a conference took place this
week between the Capital Issues Committee,
Mr. John B. Densmore, director of the United
States Employment Service, and Mr. Frank
Morrison, of the American Federation of Labor.
A plan was adopted under which the committee, before acting upon any application for the
issue of securities the approval or disapproval
of which would affect seriously labor conditions,
will seek the advice of the United States Employment Service, whose successful efforts to secure
a scientific distribution of labor fitted to prevailing conditions are heartily supported by
the American Federation of Labor.
The committee announced that during the
week ended April 4 it gave final disposition to
20 applications, aggregating $17,339,000, of
which $1,051,000 were disapproved and $16,287,000 were approved. As the latter figure
included $2,581,000 of approved issues representing refunding obligations, the aggregate of
new issues approved was $13,706,000, as against
$66,736,000 of new issues for the same period
last year.
APRIL 15,

1918.

MAY 1,1918.

During the week just passed the committee disposed of 28 applications, aggregating
$54,936,000, of which $21,049,000 were dis^
approved. The 333,887,000 approved included
$864,000 of refunding obligations, so that the
new issues approved aggregated $33,023,000.
New issues for the corresponding period last year
amounted to SI8,894,000. The increase of
this year over last year is readily accounted for
by the approval this week of a single issue of
$25,000,000 of common stock. While the total
issues approved is large, it should be borne in
mind that such approvals have been given with
the understanding that no offering of Securities
will be made during the pending Liberty loan
campaign unless such issues are for the special
purpose of meeting maturing obligations or are
otherwise vitally urgent.
The committee will be guided in its future
operations as nearly as possible by the provisions of the War Finance Corporation Act so
that the operations of the subsequent committee and the present committee will be as consistent as possible. For the time being, however, the committee has not yet decided to
reduce the minimum for public utility and
industrial issues considered by it from five to
one hundred thousand dollars.
APRIL 237

1918.

The Capital Issues Committee of the Federal
Reserve Board stated to-day that it was in
receipt of a letter from Mr. Thomas E. Finnegan, of the New York State Department of
Education, supporting the work of the committee. In his letter, Mr. Finnegan said in
part:
We are advising school authorities in all parts of the
State that no new construction should be planned, under
existing conditions, except in those cases where the needs
are absolutely imperative. There are two reasons why
localities should not undertake new construction for school
purposes if it may well be deferred until a later period.
The funds of the country should be made available to the
fullest extent for financing the war. Nothing that will
divert in any way whatever from this one purpose should
be done which may be avoided. The cost of construction
is also abnormally high and where new construction for
school purposes may be deferred until there is a better
adjustment of prices, that course should be pursued.

In answer to questions raised from several
quarters, the Capital Issues Committee of the
Federal Reserve Board made it clear to-day
that, pending the appointment by the President of the new committee, the work of the old
committee would proceed on the same lines as
APRIL 22, 1918.
heretofore, and that applications for the issue
Very naturally security issues of municiof securities should be addressed to it.
The Chicago Stock Exchange has sent to the palities comprise the major portion of the
committee a copy of its resolution as follows: work of the Capital Issues Committee. Capital
expenditures by municipalities generally may
Resolved, That the Committee on Stock List will require be divided into the following classes: Road
as a condition to the listing of any new capital issues, the
presentation of the approval of the Capital Issues Com- improvements, school buildings, public buildings, and sanitary improvements (water works
mittee of the Federal Reserve Board.




MAY

1, 1918.

401

FEDERAL RESERVE BULLETIN.

and sewer plants). The committee has heretofore announced its policy with respect to its
method of cooperating, with existing government departments and bureaus with respect to
the three classes first named. It now announces that Surgeon General Blue, of the
United States Public Health Service, has
placed his organization at the disposal of the
committee for use in connection with the consideration of capital expenditures for sanitary
improvements. In his letter to the committee, the Surgeon General states:
It is one of the functions and purposes of this bureau to
collect information of this character and it will be a
pleasure to furnish you with such information in any
specific case which may come before the committee. Considerable information is already available in this office
about this matter, and in cases where this has not already
been done the desired data may be obtained by sending
out a questionnaire which maybe prepared by this Bureau.

During the week just past the committee
disposed of 25 applications, aggregating
$10,105,000, of which $762,000 were disapproved. The $9,343,000 approved included
$300,000 of refunding obligations, so that the
new issues approved aggregated $9,043,000.
New issues for the corresponding period last
year amounted to $14,547,000, so that a comparative saving of 37.8 per cent was effected.
In addition to this saving, postponement was
secured informally of issues aggregating
$5,560,000.

APRIL 29,

1918.

The Capital Issues Committee stated to-day
that it was in receipt of the following letter from
Hon. Louis L. Emerson, Secretary of State of
Illinois:
In administering the Illinois Blue Sky Law, we have a
good many applications pending in this department, asking for permits to sell securities in this State under this law.
We desire to cooperate with the Capital Issues Committee
in every way possible.
Thus far we have not authorized any companies to sell
securities in excess of $100,000 since this law went into
effect.
We would like to have a copy of any rulings that you
have made and would appreciate the direct information
as to whether or not we should authorize companies and
state to them that after we have authorized them it will be
necessary for them to procure your permit, or should we
require the permit first.

to which the committee has replied, in part, as
follows :

The purpose of the rules and regulations adopted by the
committee may be summarized in a general way by the
statement that the committee's approval should be withheld from all issues not necessary for the preservation of
public health or essential for the successful prosecution of
the war.
The present committee, which is known as the Capital
Issues Committee of the Federal Reserve Board, will
shortly be superseded by a committee to be appointed by
the President under authority conferred by the War
Finance Corporation Act, which provides no penalty for
offering securities which have not received the committee's approval. It would be very helpful if your department could withhold its approval of, issues of $100,000 or
more until application has been submitted and passed upon
APRIL 24, 1918.
by the Capital Issues Committee.
At its meeting yesterday the Capital Issues It is only hj subordinating local and personal interests
to the public welfare
enforcing
Committee of tiie Federal Reserve Board economy in matters of and by and privatethe most rigid
public
enterprise, as
adopted the following resolution:
well as in matters of personal expenditure, that the United
Resolved, That, effective immediately, this committee States can hope to bear its part of the financial burden of
reduce from $500,000 and over to $100,000 and over the the war and to release su/ficiont labor and material for war
minimum of security issues of industrial and public-utility purposes. Every resource of the Nation must be carefully husbanded and used with the utmost intelligence.
corporations that it will consider.

This action is taken by the committee in
furtherance of its policy heretofore expressed
of adapting its methods to those prescribed
for the guidance of the Capital Issues Committee created by the War Finance Corporation Act which, in section 203, provides that
the committee may consider applications of
$100,000 and over.
The committee has heretofore observed the
$100,000 minimum only with respect to municipal issues. Its action to-d^j will tend to
relieve the embarrassment of those desiring to
issue at this time securities the aggregate of
which is above the minimum prescribed by the
statute and yet below the minimum heretofore
considered by the existing committee.




The committee expresses the hope that other
States may emulate the patriotic example set
by Illinois.
The Liberty loan campaign overshadowed
financial activities during the week just passed.
However, the committee disposed of 10 applications, aggregating $3,404,000, of which
$1,361,000 were refunding obligations. New
issues approved, therefore, aggregated $2,043,000. New issues foL" the corresponding period
last year amounted to $22,270,000, so that a
comparative saying of 90.8 per cent was effected. In addition to this saving, postponement was secured informally of issues aggregating $340,000.

402

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Fiduciary Powers,

DISTRICT NO. 12.

The applications of the following banks for Trustee, executor, administrator, and registrar of stocks
and bonds:
permission to act under Section ll(k) of the
First National Bank, Prineville, Oreg.
Federal Reserve Act have been approved since
National City Bank of Seattle, Seattle, Wash.
the issue of the April BULLETIN:
DISTRICT No. 1.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Reading, Mass.
Trustee and registrar of stocks and bonds:
Springfield National Bank, Springfield, Mass.
Phoenix National Bank, Hartford, Conn.
DISTRICT No. 3.

Trustee, executor, administrator, and registrar of stocks
and bonds:
National Bank of Boyertown, Boyertown, Pa.
DISTRICT NO. 4.

Registrar of stocks and bonds:
Union Commerce National Bank, Cleveland, Ohio.
DISTRICT No.

5.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Peoples National Bank, Rocky mount, Va.
Trustee, executor, and administrator:
Commonwealth National Bank, Reedville, Va.
DISTRICT NO. 6.

Acceptances to 100 Per Cent.

Since the issue of the April BULLETIN the
following banks have been authorized to accept
drafts and bills of exchange up to 100 per cent
of their capital and surplus:
Fourth-Atlantic National Bank, Boston, Mass.
Merchants National Bank, New York City.
Scandinavian Trust Co., New York City.
Dedham National Bank, Dedham, Mass.
Union National Bank, Houston, Tex.
Macon National Bank, Macon, Ga.
Merchants National Bank, Vicksburg, Miss.
Corn Exchange National Bank, Chicago, 111.
First National Bank, Pittsburgh, Pa.
Union & Planters Bank & Trust Co., Memphis, Tenn.

Growth of the Acceptance Business.

In continuation of similar figures shown on
page 11 of the January, 1918, BULLETIN there
are presented below summary data of acceptance liabilities of national banks in principal
cities, supplemented by like data for State
banks and trust companies in New York,
Boston, St. Louis, Baltimore, and certain
DISTRICT No. 7.
Trustee, executor, administrator, and registrar of stocks States. Between November 20, 1917, and
March 4 of the present year acceptance liaand bonds:
Washington National Bank, Washington, Iowa.
bilities of the national banks increased from
153.6 to 230.2 millions, or about 50 per cent.
DISTRICT NO. 10.
For a slightly shorter period the trust comTrustee, executor, administrator, and registrar of stocks
panies in Greater New York report an increase
and bonds:
First National Bank, Englewood, Colo.
in their acceptance liabilities from 98.3 to
Wyoming National Bank, Casper, Wyo.
104.9 millions, or of less than 7 per cent.
American National Bank, St. Joseph, Mo.
Acceptances held by the Federal Reserve Banks
DISTRICT NO. 11.
on dates nearest the dates of the Comptroller's
Trustee, executor, administrator, and registrar of stocks calls likewise show a substantial increase from
and bonds:
209.9 on November 23, 1917, to 317.9 millions
Fort Worth National Bank, Fort Worth, Tex.
on March 8 of the present year. Since then
National Bank of Commerce, Wichita Falls, Tex.
these holdings have slightly decreased, the
Trustee, executor, and administrator:
total for April 26 being 302.4 millions.
First National Bank, Roswell, N. Mex.

Trustee, executor, administrator, and registrar of stocks
and bonds:
City National Bank, Selma, Ala.
First National Bank, De Funiak Springs, Fla.
Trustee and registrar:
National Bank of Commerce, Pensacola, Fla.




MAT 1, 1918.

403

FEDERAL RESERVE BULLETIN.

Acceptance liabilities of national banks in principal cities of ceed
the United States on specified dates.
[In thousands of dollars; i. e., 000's omitted.]
Nov. 20, Dec. 31,
1917.
1917.
New York
Boston
Philadelphia...
Pittsburgh
Cleveland
Cincinnati
Richmond
Baltimore
New Orleans...
Charleston, S. C
Chicago
Minneapolis
St. Louis
Dallas
San Francisco..
Allother

67,769
37,191
7,462
456
2,040
788
1,550
2,105
2,421
1 517
7,526
953
1,078
1,725
3,625
15,439
153,645

Total

,
i
I
!
I
i

Mar. 4,
1918.

100,382
42,740
14,125
1,917
5,198
1,278
2,772
2,641
2.674
1)274
10,122
808
2,953
1,775
5,708
20,823

96,234
45,134
14,694
2,502
7,936
980
4,402
2,492
2,663
1,474
15,764
595
3,913
2,850
7,185
21,346

217,190

those of March, 1917, and are also somewhat above those of March, 1916, they are the
lightest for the month, with the exceptions
noted, back to 1910, and the number is the
smallest since 1911. Comparing with March,
last year, the statement shows fewer failures
in the fifth, sixth, eighth, ninth, tenth, eleventh,
and twelfth districts, while in the fourth and
seventh districts no change at all appears.
The liabilities, moreover, are less than in
March, 1917, in the majority of instances,
although the increases in the flrst? third,
fourth, ninth, and twelfth districts more than
offset the reductions elsewhere.

230,164
Failures during March.

Available data regarding acceptance liabilities of other American banking institutions in
leading cities and certain States on or about
dates of the last three calls made by the Comptroller of the Currency are as follows:
7

[In thousands of dollars; i.e., 000 s omitted.]
Nov. 20,
1917.

Dec. 31,
1917.

All national banks
153,645
Trust companies in Greater New York.. 198,268
State banks in Greater New York
5,783
Trust companies and State banks in—
Boston
17,604
3
1 867
St. Louis
Baltimore
70
State of Ohio
State of California
551
State of New Jersey

217,190
100,196
5,586
No call.
1 094
137

Mar. 4,
1918.
230,164
2 104,920
7,345
18,673
5,122
470
981
<951
293

i

Number.

Liabilities.

District.
1918
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh...
Twelfth

159
185
99
93
54
93
194
49
46
34
31
105

Total.

1,142

1917

1918

1917

102 $2,527,494
175 5,598,986
54 1 420,861
93 1,754,144
98
522,255
138
789,201
194 1,800,141
80
347,297
56
718,231
42
218,624
80
192,997
120 1,782,100

81,729,943
5,801,781
398,014
1,307,390
916,299
1,315,107
2,609,431
462,190
430,678
392,014
310,418
1,732,831

17,672,331

17,406,098

1,232

New National Bank Charters.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of
Commercial Failures Reported.
national banks during the period from March
The reduction in the business mortality con- 23, 1918, to April 26, 1918, inclusive:
tinues a conspicuous and gratifying feature as
Banks.
the country enters on its second year of war, New charters issued to
9
$1,190,000
and commercial failures reported to R. G. With capital of
11
Dun & Co. for three weeks of April number Increase of capital approved for
675,000
836, against 771 in the same period of 1917, With new capital of
when the insolvencies were comparatively Aggregate number of new charters and
20
moderate. The returns for March, the latest banks increasing capital
With aggregate of new capital authorized
1,865,000
month for which complete statistics are availNumber of banks liquidating (other than
able, disclose 1,142 defaults for $17,672,331, as those consolidating with other national
compared with 1,232 in March, last year, for banks)
7
SI7,406,096. While the liabilities slightly ex- Capital of same banks
1,500,000
i Nov. 14.




2 Mar. 14.

55543—18

7

3

Nov. 29.

* Feb. 2.

404

FEDERAL RESERVE BULLETIN.

Banks.
Number of banks reducing capital
0
Reduction of capital
0
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks). 7
Aggregate capital reduction
The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
Against this there was a reduction of capital
owing to liquidation (other than for consolidation with other national banks) and
reductions of capital of

1,500,000

1,865,000

1,500,000

Net increase.

365,000

Farm Products as Bank Security.
On September 5, 1917, a committee representing the Department of Agriculture met informally with the Federal Reserve Board to
discuss the advisability of extending to certain
agricultural products, not previously included
as eligible for the special commodity rate of
rediscount, the advantages of that rate. At
that meeting the Department was asked to
furnish the Board with information as to proper

MAY 1, 1918.

storage conditions, length of storage, and percentage of shrinkage in storage for each of several perishable commodities which might be
considered sufficiently staple to warrant recognition in this connection. The accompanying chart contains this information for apples, potatoes, sweet potatoes, onions, cabbage, eggs, frozen eggs, poultry, butter, and fish.
It represents the results of investigations and
observations made by several department
specialists in handling and storing fruits and
vegetables. Since the conference referred to,
the Board has, in the process of revising the
rates of rediscount, found it necessary to suspend for the present the commodity rate.
There is, of course, nothing to prevent Federal Reserve Banks from rediscounting eligible
paper protected by agricultural security just
as in the past, as commercial agricultural
paper, although the technical "commodity
rate77 no longer exists. The Board therefore
furnishes the attached information for the
benefit of bankers who are making loans protected by staple commodities, as well as for the
information of those who contemplate offering such commodities as collateral.

UNJTBP STATES DEPARTMENT OP AGRICULTURE.

Suitable storage conditions for certain perishable products.

Commodity.

Apples.




Warehouse requirements.

Prestorage handling
and condition
when placed in
storage.

Varieties.
A—Construction. ! B—Temperature. ; C—Humidity.
;

D—Stowing.

The apples should Varieties
only Cold storage houses Cold storage tem- 80 to 90 percent..; Stowed with sufficient
, conform t o th c ' which have a
should be so conperature " r a n g e
spacing to permit of
specifications o f , recognized stors t r u c t e d and
should be 31° F.
free air circulation,
the U. S. standard : age period of 3
equipped as to
to 32° F. for the
and to render each
grades established ; months or more
maintain practistorage of apples.
lot readily accessible
by an act of Con- ; should be concally uniform tem- Common storage
for inspection and.
g'resSj approved i sidered.
perature and hu- t e m p e r a t u r e
v.ithdrawal.
Aug. 3,1912 (Pub- !
midity conditions
should be mainlie—No. 252), or i
required for suctained at from 31°
any grades that !
cessful s t o r a g e
F. to 36° F. after
may hereafter be j
throughout t h e
the initial cooling
establishedfovau- j
storage s e a s o n .
of the fruit.
thority of Con- I
Common storage
houses should be
sufficiently insui
lated to prevent
freezing and
should be provided with the
necessary i n l e t
and outlet vents
to permit an adequate ventilation
and temperature
regulation.

MAY 1, 1918.

FEDERAL BESERVE BULLETIN.

Suitable storage conditions for certain perishable

Commodity.

Frostorage handling
and condition
when placed in
storage.

(sweet.)

j
• A—Construction.

Sweet p o t a t o e s I All varieties grown Should be so constructed that all
should be well de- ! on a commercial
light is excluded,
veloped, carefully
scale,
and moderate
handled to avoid
changes in outside
b r u i s i n g , and
temperature will
should be pracnot quickly affect
tically free from
inside temperadamage caused by
tures. Wood'condisease, insect or
struction if prefermechanical injury.
able, and ample
They should not
means for ventilabe allowed to botion control should
come chilled or
be provided.
frosted, and when
placed in storage
the surface should
be dry and practically clean.

Onions.

The onions should All common va- The building should
be well ripened,
be so constructed
rieties of onions,
dry, and thorand. insulated as
except those of
oughly air cured
to prevent fluctuthe B e r m u d a
when stored. Any
ations in temperatype.
lot of onions
- ture and means for
should be practiample ventilation
cally free from
should be prodamage caused by
vided.
disease, insects, or
mechanical injury,
and from other
stock c o m m e r cially known as
culls.

Cabbage.

Solid heads, prac- Danish Ball Head, Well-vent H a t e d ,
frost-proof
root
tically free from
or sorts with
injuries due to incellar or waresimilar form and
sects and diseases.
house typo of contexture.
Heads should be ;
struction w i t h
cut with but few if |
ample intake and
any loose loaves j
outlet vents for
adhering and care- !
quick cooling and
fully handled from j
ventilation, and
field to storage |
equipped w i t n
house.
slatted s h e l v e s
supported on staging, so that the
heads may be
stored one" layer
deep, with at least
15 to 18 inches
clear space around
the walls of the
b u i l d i n g . The
ceiling should be
so constructed as
to prevent drip on
the product.




products—Continued.
Warehouse requirements.

Varieties.

Table stock should All varieties keep The building should
be so constructed
be well matured
well in storage
and graded to
provided they
and insulated as
conform to the
are harvested in
to prevent fluctuations in tempera>ecifications of
the autumn,
ture, means for
the U. S. standard
grades. Seed stock
ample ventilation
should be certified
should be proby a competent
vided, and all uninspector.
necessary l i g h t
should be excluded.
Potatoes

405

B—Temperature. ; C—Humidity.

I)—Stowing.

T
Rangefrom35° F. to j 80 to 85 per cent.!When stowed in '
boxes, or crates, they
should be so piled as
to permit free air circulation. Bulk potatoes should not be
stored to a greater
depth than 0 feet, nor
more than 60,000
pounds in a single
compartment. They
should bo carefully
handled to avoid unnecessary injuries.
While the potatoes The percentage When stored in bins,
the potatoes should
are being stored,
of humidity
be carefully poured
and for a period of
should not be
from basket or crate
10 days to 2 weeks so high that
moisture is de- into the bin. To althereafter, or until
posited on the
low free circulation of
the potatoes are
air, the bins should
cured, a tempera- I walls of the
have slatted sides
ture of from 80° F. j storage house.
and floor, and at
to 90° F. should be I
least 4 inches of air
maintained.
space on all sides*
Thereafter a uniThe bin floor should
form temperature
be raised 2 inches or
of as nearly 55° F.
more above the house
as is practicable
floor. When stowed
should "be mainin crates, baskets, or
tained. Ventilahampers,they should,
tion and artificial
be stacked so as to
allow circulation of
to control temper- i
air, and to prevent
ature and mois- i
the crushing or
ture.
!
breaking of the packages or bruising their
contents.
In cold storage the j 80 to 85 per cent.: They should be stowed
temperature range j
.
| in suitable recepshould be from 30° i
! tacles, as indicated,
F. to 36° F. In !
! under "Containers,"
common storage
j and
should
be
the same range of i
stacked in such a
temperature I
! way as to permit of
should be main- !
! free air circulation
tained as nearly j
j throughout the lot.
as possible, but ;
j
with the better j
ventilation usual- |
\
lysecuredineom- I
j
mon storage build- !
ings, onions will
keep well at
higher temperatures.
Range, 32° F. to 36° The humidity On slat shelves in single l a y e r s . T h e
F.
s h o u l d be
height of the staging
maintained as
and the number of
high as possishelves will be deterble without
mined by convenactual dispoience and dimensions
sition of moisof tho building.
ture on the
product.

406

Suitable storage conditions for certain perishable

Commodity.

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Prestorage handling j
and con d i t i o n ;
when placed in j
storage.
j

products—Continued,
Warehouse requirements.

Varieties.
A—Construction.

C—Humidity.

B—Temperature.

D—Stowing.

should be The grades should Cold-storage houses Range from 29° F. 82 to 85 per cent. Egg cases should be
conform to those
stowed with £inch to
to 32° F.
should be so conmoved quickly
generally
1 inch dunnage bes t r u c t e d and
from the producer
adopted by the
tween to insure space
equipped as to
to the warehouse.
wholesale trade
for a free air circulamaintain practiThey should be
until U n i t e d
tion and so that sepacally u n i f o r m
carefully sorted
States standards
rate lots may be easily
temperature and
and candled, so
inspected.
humidity condi- j
that none showing ! a r e p r o m u l tions required for j
mechanical defects j gated.
successful storage i
or noticeable de- !
throughout t h e !
terioration is in- i
storage season.
eluded in the storage s t o c k s . No
w a s h e d eggs
should be stored.
Range from 0° F and
.! Protect from doors and
..do
Frozen eggs.... Should be removed One grade for food;
from shell in
one grade for
below to 10° F.
I elevator shafts.
chilled, sanitary
manufacturing
surroundings, and
Durposes.
Poultry.,

Butter..

Fish.

ly on fish-shelf
sharp freezers.
Poultry should be The classes and
do.
grades should
dry picked, dry
cooled, and dry
conform to those
packed at tempergenerally
atures r a n g i n g
adopted by the
from 30° F. to 35°
wholesale trade,
F. for from 18 to
until U. S. stand24 hours, then froz- ards are promulen at 6° F. or below.
Butter should be The grades should ....do.
placed in cold stor- conform to those
age w i t h i n 10
generally
days after it is
adopted by the
manufactured.
wholesale trade,
When storage
u n t i l U. S.
facilities are not
standardsare
available during
promulgated.
this period the
product should be
held in a temperature below 50° F.
Fish s h o u l d b e P r a c t i c a l l y all
do.
placed in storage
food varieties.
in a fresh condition, as indicated
by their physical
appearance.

Preferred, 0° F. to
10° F.; admissible,
12° F, to 14° F.

P o u l t r y should be
stowed so that separate lots may be easily inspected, and protected from injury by
heat leakage at doors
and elevator shafts.

Range from 2° F and
below.

Packages should be so
stowed as to permit a
free air circulation
beneath the pile, and
so stacked that separate lots may be easily
inspected. Cube and
box packages should
be separated by 1
inch dunnage*

Hard frozen and
glazed at temperature of 0° F. or below and stored at
0* F. or below to
5° F., depending
on variety. For
holding less than 6
months it is admissible to store at
12° F.

I

Warehouse requirements.
Commodity.

Storage period.
E—Containers.

Apples




Shrinkage.

Remarks.

F—Inspection.

Containers shall be I All lots should be inspect- The usual cold-storage r In cold storage, 2 to 5 Attention is directed to
period for winter vaclean, strongly built I ed when received for
per cent; in common
the fact that a delay of
rieties is from 3 to 6
barrels, boxes, or ! storage by a qualified instorage, variable.
1 or more weeks bespector. Subsequent inmonths, depending
crates, and when
tween the picking and
spections of representaupon the variety
packed for market
storing of apples greattive packages of all lots
and the condition of
shall be plainly
storage and results in
should be made at interthe fruit when
marked with the
e a r l y deterioration.
vals of 15 to 30 days, de- stored.
grade, variety, and the
The successful storage
pending on the variety
grower's or packer's
of apples is as much deand condition of the
name.
pendent upon the
fruit as indicated by pretreatment they receive
!
vious inspections.
before being placed in
cold storage as the conditions under which
they are held in storage. See Department
Builotin No. 587. k]

MAY 1,1918.

407

FEDERAL RESERVE BULLETIN.

Suitable storage conditious for certain perishable products—Continued.
Warehouse requirements.
Commodity. |

E—Containers.

Potatoes

Potatoes
(Sweet.)

Onions

Cabbage

Poultry.




F—-Inspection.

j
| storage period.
|

~r

Shrinkage.

They may be stored in Potatoes should be in- The usual storage peri- When potatoes are
od is from 3 to 6
stored, in containers
spected by a qualified
! asceptic burlap bags,
months, depending
or in bulk, as speciinspector when received
| barrels, boxes, crates,
upon the section o!"
fied in column 6, the
for storage, and again
i or bins when in bulk.
the country in which shrinkage is approxiwithin 30 days. The
the storage is lomately 7 per cent.
frequency of the inspeccated, the type of
tions thereafter will dethe storage house
depend upon the conand the condition of
dition of the potatoes as
the stock.
determined by previous
inspections.
\
j Sweet potatoes are usu- The potatoes should be j The safe storage peri- | The shrinkage from i
thoroughly inspected by I od is about 4 months.! loss of moisture is !
j ally stored in bins, but
a qualified inspector at ! Under the most fa- ; from 8 to 10 per cent
! may be stored satisthe time they are put in ! vorable conditions ; in bins, and somei factorily in substanand good manage- I what higher in packthe storage house, withtial crates, baskets, or
ment they may be j ages. An additional
in 15 days after the behampers, which perkept 6 months.
i shrinkage of 5 per
ginning of the storage
mit of a free air circucent should be alperiod, and from 15 to 30
lation.
lowed for decay.
days thereafter.
i The best containers are Thorough i n s p e c t i o n The storage period Should not exceed 10
with thorough venshould be made when
I slatted crates, alor 12 per cent.
tilation is 6 months.
the onions are placed in
i though baskets, hamstorage, and at intervals
i pexs, and bags are
not exceeding 30 days.
I used successfully.
The frequency of the
inspections thereafte r
will depend upon the j
condition at the previ- i
inspections.
I
! None
, Inspection should be at The storage period exintervals of from 15 to 30 tends from Novemdays, and the storage
ber to April, 5 or 6
houses should have
months.
daily attention from a
competent warehouseman skilled in the handling of such structures
and commodities.

Remarks.

Potatoes are stored in
both common storages
and in artificially
cooled warehouses.
See Farmers Bulletin
No. 847.

it is recommended that
sweet potatoes be not
considered properly
stored until they have
passed through the
curing period. See
Farmers Bulletin No.
548.
See Farmers Bulletin
No. 354.

Vents should be closed
except during periods
when the ouside ternperature is the same or
lower than the contents
of the storage. Stoves
should be provided to
prevent freezing in cold
periods. See Farmers*
Bulletin No. 433.

Eggs should be packed i Inspection should be at Not exceeding 12 Shrinkage depends i Rooms must be clean and
in clean
odorless- ! intervals of from 15 to 30 months.
upon the percentage j odorless. See Bureau
wood cases. Fillers j days, and the storage
of humidity a n d | of Chemistry Circular
should be new dry j house should have daily
should not be more j No. 64.
No. 1 or medium , attention from a compethan 5.5 per cent, j
strawboard with flats i tent warehouseman
Shrinkage should be j
or excelsior cushion \ skilled in the handling
calculated from net |
filler over top and • of such structures and
'
weight of products. I
under bottom. Pad- j commodities.
ding must be kiln- !
!
dried excelsior, cork ,
shavings, or corru- |
gated strawboard, on I
top and bottom of i
each case. No pine ex- .
celsior should be used. •
The cases should be i
plainly marked with j
the grade.
•
30-pound tin buckets • Every 30 days or at longer No change in composi- None.
See Department, Bullemost common. Small-! periods.
tion up to 24 months. |
tins Nos. 51 and 225.
er tin cans now in- I
After 12 months egg i
creasing, due to wider i
thickens slightly, j
use o f this product. J
Whites near top of j
can may become
pink due to iron
under tin. Egg not i
ti.
injured as foodstuff |
thereby.
All poultry should be All lots should be inspect- Not exceeding 12 Shrinkage varies from j Water-cooled or icemonths.
packed in clean,
ed by a qualified inspecpacked poultry should
1 to 3 per cent.
strongly built, odortor when received for
not be stored for long
less boxes, lined with
storage, and at intervals
periods. Scalded birds
parchment or other
of 30 days or longer, dedeteriorate more rapidsuitable paper, and
pending upon the conly than dry-picked.
should be . plainly
ditions found at the preDrawn poultry should
marked to indicate the vious inspections.
never be stored. See
grades and classes.
Bureau of Chemistry
Barrels are still adCircular No. 64.
missible, especially for
turkeys, but are less
desirable than boxes.

408

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Suitable storage conditions for certain perishable

products—Continued.

Warehouse requirements.
Commodity.

Packages should con- All lots should be inspected by a qualified
form to the regular
inspector when received
commercial styles, infor storage, and at including 63-pound tubs,
tervals of 30 days or
63 to 78 pound cubes,
more, depending upon
and standard boxes of
the quality and condi1-pound prints.
tion of the lots at previous inspection.
Inspection should be made
at intervals of 30 days or
more by a qualified inspector.

Butter

Fish

Shrinkage.

Remarks.

In general, the shrinkage will run from £
to 1 per cent.

Storage period.

See Bureau of Animal
IndustryBulletins Nos,
84 and 148.

F—Inspection.

E—Containers.

do

do

Reglazing of boxed fish
required in from 3 to 6
months. Stacked fish
should be spray glazed
every 3 months or more
frequently. See Department Bulletin No.

State Banks and Trust Companies Admitted.
Capital.

The following list shows the State banks and
trust companies which have been admitted to
membership in the Federal Reserve system up
to and including April 30, 1918, together with
a statement showing rank by States, as to
number of banks, capital and surplus, and
resources. Four hundred and forty-four State
institutions are now members of the system,
having a total capital of $265,612,800, total
surplus of $344,601,745, and total resources of
$5,872,851,587.
Capital.
Alabama:
Athens—Citizens Bank &
Trust Co
Birmingham—
American Trust & Savings Bank
Birmingham Trust &
Savings Co
—
Eufaula—Bank of Eufaula
Marion—Marion Central Bank
Mobile—Peoples Bank of
Mobile
Montgomery—Sullivan Bank
& Trust Co
Total.
Arizona:
Safford—Bank of Safford
Tombstone—Cochise County
State Bank
Total.
Helena—Security Bank &
Trust Co
Little Rock—Mercantile Trust
Co
Texarkana—Merchants &
Planters Bank
Total.




Surplus.

Total
resources.

California:
San Fernando—San Fernando Valley Savings Bank
Santa Monica—Bank of Santa
Monica
Stockton—Farmers & Merchants.
Total
Colorado:
Denver—The American Bank
& Trust Company
Denver—International Trust
Co .
Total
Connecticut:
Bridgeport—Bridgeport Trust
Co
New Haven—Union & New
Haven Trust Co
Waterbury—Colonial Trust
Co
Total

330,000

1518,000

500,000

250,000

7,712,235

500,000
100,000
50,000

650,000
14,000
100,000

12,836,371
612,542
530,054

200,000

200,000

5,264,438

$292,674

250,000

25,750

615,282

1,630,000

1,257,750
40,000

30,000

5,000

Total
District of Columbia:
W a s h i n g t o n - Continental
Trust Co

Total
resources.

$25,000

82,500

$100,456

110,000

4R onn

1,569,713

640,000 |

195,000

4,488,260

775,000 ;

245,500

6,158,429

500,000

185,000

5,822,311

500,000

500,000

15,796,222

1,000,000

685,000

21,618,533

500,000

300,000

8,039,172

650,000

500,000

4,106,252

400,000

500,000

8,015,132

1,550,000

1,300,000

20,160,556

1,000,000

?°0,000

13,595,249

600,000

00,000

5,909,691

1,600,000

1,200,000

19,504,940

1,000,000

100,000

4,905,415

100,000

100,000

1,250,571

30,000

10,000

323,095

250,000

500,000

4,170,955

380,000

610,000

5,744,621

20,000

607,778

300,000
1,000,000

11,213,586
4,050,113

72,000
50,000

1,203,184
634,828

27,863,596

33,000

Delaware:
WilmingtonWilmington Trust Co
Security Trust & Safe Deposit Co

Surplus.

63,000 j

45,000

100,000 |

50,000

300,000 |

60,000

200,000 j

10,000

600,000 "
I

120,000

Florida:
Deland—Volusia C o u n t y
Bank
Leesburg—Leesburg
State
609,619
Bank
Tampa—Citizens Bank &
224,695
Trust Co
834,314
Total

Georgia:
100,000
Athens-American State Bank.
1,317,528
AtlantaCentral Bank & Trust
1,864,691
1,000,000
Corporation
Trust Company of Georgia 1,000,000
1,130,085
Brunswick—Brunswick Bank
&Trust
100,000
4,312,304
Camilla—Bank of Camilla....
50,000

Capital.

Surplus.

Total.

3,930,000

Idaho:
I
Filer—Farmers & Merchants !
Bank
j
Genesee—Genesee Exchange
Bank
Kimberly—Bank of Kimberly.
Parma—Parma State Bank...
Rexburg—Farmers & Merchants Bank
St. Anthony—State Anthony
Bank & t r u s t Co
"..|
j

9,778,762
238,056
48,979,412

25,000
35,000
100,000

12,500 !
10,250 i
25,000

524,127
373,934
711,810

50,000

5,000 i

292,921

30,000

10,000 '

328,839

265,000

j 3,000,000

Noel State Bank
! 300,000
North Side" State Savings j
Bank
• 200,000
Standard Trust & Savings
Bank
1,000,000
State Bank of Chicago.... 1,500,000
Union Trust Co
1,500,000
United State Bank of
Chicago
200,000
Cicero—Kirchman State Bank! 100,000
East St. Louis—Illinois State j
Bank
j 400,000
Edwardsville—Citizens State
& Trust Bank
60,000
Efnngham—Effingham State
Bank
50,000
Elmhurst—Elmhurst State
Bank
60,000
Evanston—State Bank of
^iEvanston
150,000
Toliet—
Commercial Trust & Sav- I
'
ings Bank
100,000
Joliet Trust & Savings
Bank & Trust Co
100,000
Kewanee—Union State Savings Bank & Trust Co
100,000
Magnolia—First State B a n k . .
25,000
Martinsville—M a r t i n s v i 11 e
State Bank
50,000
Mattoon — Central Illinois
Trust & Savings Bank
100,000
MolineMoline Trust & Savings
Bank
225,000
Peoples Savings Bank &
TrustCo
250,000
State Savings Bank &
TrustCo
300,000




821,253,105

Illinois—Continued.
Mount Carroll—Carroll County'
State Bank
$50,000
Oak Park—Oak Park Trust & !
Savings Bank
200,000
Oak Park—Suburban Trust
& Savings Bank
100,000
Quincy—State Savings Loan
& Trust Co
1.000,000
St. Charles—Stewart State ! '
Bank
j 100,000

62,750

2,268,891

65,000

3,183,520

1,000,000

57,945,427

200,000

12,682,509

5,500,000

82,924,234

500,000

20,497,263

2,000,000
75,000
50,000
300,000

33,408,526
2,428,522
1,827,958
6,474,909

50,000

1,463,651

50,000

1,920,040

8,000,000
100,000

117,563,441
2,754,077
1,663,131

500,000
3,000,000
1,700,000

9,600,045
37 047,188
36,963,945

30,000
25,000

897,753
593,414
3,149^355

33,000

25,000

728,525
780,061

200,000

4,164,200

5,000

770,513

25,000

742,828

25,000
25,000

1,254,291
180,345

17,000

382,123

50,000

870,583

85,000

3,316,953

150,000

4,325,468

100,000

Indiana:
Elkhart—St. Joseph Valley
Bank
Kentland—Discount & Deposit State Bank
Paoli—Paoli State Bank
Terre Haute—Terre Haute i
TrustCo
!
Tipton—Farmers Loan & :
p
a
TrustCo
Total

200,000

10,000

28,470,000

3,990,447

|

Iowa:
I
Brighton—Brighton S t a t e
Bank
Cedar Falls—Security Trust
& Savings Bank
!
j
Clinton—Peoples T r u s t & j
Savings Bank
Des Moines—Iowa Loan &
TrustCo
Gilman—Citizens S a v i n g s |
Bank
j
Mason City—Commercial Sav-1
ings Bank
I
Ottumwa—Ottumwa Savings;
Bank
Royal—Home State Bank
Sioux City—Bankers Loan &
TrustCo
Sutherland—First S a v i n g s
Bank
Thompson—State B a n k of
Thompson
Vail—Farmers State Bank
j
Wapello—Wapello State Sav- I
ings Bank
I
Total

§953,872

50,000

2,687,734

10,000

Total.

TotalLouisiana:
Baton Rouge—Union Bank
&TrastCo
Gretna—Jefferson Trust &
Savings Bank
Iota—Bank of Iota

436,689
8,379,352

40,000

153,605

24,220,000 I 469,795,482

50,000

2,631,394

70,000
25,000

40,000 j
750 I

582,119
218,596

350,000

200,000 I

6,468,674

50,000

45,000 !

719,866

595,000

335,750 1

10,620,649

50,000

10,000 ;

672,810

50,000

8,000 |

276,691

300,000

300,000 !

5,216,714

500,000

100,000 j

7,631,625

25,000

11,000

379,681

100,000

17,000 i

1,115,756

100,000
25,000

30,000 I
500 j
8,000 i
i
1
i
8,000 i
8,000 |

1,270,976
175,463

8,000 |

396,391

100,000 i
i
50,000 |
I
30,000 I
50,000 j
I
30,000

j 1,410,000

Kansas:
j
Fairview—Fairview S t a t e
Bank
Fort Scott—Fort Scott State
Bank
Hiawatha—Morrill & Janes
Bank
Topeka—The Kansas R e serve State Bank
Wichita—Southwest S t a t e
Bank
Winfield—The State Bank....
Kentucky:
Louisville—German I n s u r ance Bank
Mays ville—First S t a n d a r d
Bank & TrustCo
Mount Sterling—E x c h a n g e
Bank of Kentucky

100,000

Total
resources.

$25,000 ]

37,260

25,000

Illinois:
j
Bloomington—State Bank of '
Bloomington
! 150,000
Chicago—
j
Austin State Bank
\ 200; 000
Central Trust Co. of Illi- I
nois
! 6,000,000
Chicago Savings Bank & I
Trust Co
1,000,000
First Trust & Savings
Bank
5,000,000
Foreman Bros. Banking
Co
1,500,000
Harris Trust & Savings
Bank
2,000,000
Home Bank & Trust Co..; 300,000
Hyde Park State Bank...! 200,000
Kaspar State Bank
j 500,000
Madison & Kedzie State !
Bank
i 200,000
Mechanics & Traders '
State Bank
j 200,000
Merchants Loan & Trust '
Co

3,012,000

!
Capital. | Surplus.

Total
resources.

i

Georgia—Continued.
SavannahCitizens & Southern Bank. ,000,000 11,000,000
Savannah Bank & Trust
Co
I 630,000
570,000
50,000
West Point—Citizens ~ *
Bank...!

Total

409

FEDEKAL BESERVE BULLETIN.

MAY 1,1918.

30,000
100,000

431,785
326,237
251,762
271,552

508,500 i 18,417,443

15,000 j

287,887

28,000

1,549,310
1,109,620

100,000

50,000

200,000

50,000

1,879,233

200,000
100,000

9,000
50,000

2,781,811
1,282,448

730,000 j

202,000

8,890,309

250,000

500,000

8,035,578

175,000

60,000

1,505,358

50,000

25,000

506,049

475,000

585,000

10,046,985

2,760

635,818
227,786

150,000 i
50,000
25,000

150,000

410

FEDERAL RESERVE BULLETIN.

Capital.

Surplus.

Louisiana—Continued.
I
New Orleans—
j
Citizens Bank & Trust Co.'
8400,000 j $100,000
of Louisiana
100,000
200,000
City Bank & Trust Co
500,000
Canal Bank & Trust Co... 2,000,000!
Hibernia Bank & Trust
Co
1,500,000 j 2,000,000
Interstate Trust & Bank500,000
ing Co
750,000:
400,000 ! 100,000
Marine Bank & Trust Co..
200,000
400,000
Metropolitan Bank
Total

85,922,717
4,161,096
32,431,111
40,253,115
10,190,046
506,207

j 5,875,000

3,502,760

99,341,542

300,000
400,000

400,000
400,000

5,453,820
13,397,469

700,000

800,000

18,851,289

Maine:
Bangor—Merrill Trust Co
Portland—Fidelity Trust Co..
Total

Total
resources.

|

Maryland:
BaltimoreBaltimore
Commercial j
j
100,000
Bank
' 500,000
Baltimore Trust Co
1,000,000 2,000,000
1,000,000
Maryland Trust Co
300,000 ""'i66,"666'
The American Bank

2,710,605
15,914,361
8,251,780
2,547,310

2,200,000

29,424,056

Total.
Massachusetts:
BostonAmerican Trust C o . . .
Beacon Trust Co
Commonwealth Trust Co
International Trust Co..
Liberty Trust Co
Metropolitan Trust Co...
Old Colony Trust Co
State Street Trust Co
United States Trust Co..
CambridgeCharles River Trust Co...
Harvard Trust Co
Fitchburg—Fitchburg Bank
& Trust Co
Holyoke—Hadley Falls Trust
Co
Lawrence—Merchants Trust
Co
Newton—Newton Trust Co...
Norwood—Norwood Trust Co.
Winchester — Winchester
Trust Co
Worcester—Worcester Bank
& Trust Co
Total.

2,800,000

1,000,000
600,000
1,000,000
1,500,000
200,000
300,000
6,000,000
1,000,000
l,000;000
200,000
200,000

200,000
100,000

2,391,175
3,963,641

500,000

250,000

5,514,116

500,000

250,000

6,283,988

300,000
400,000
200,000

150,000
400,000

5,648,227
4,695,323
3,025,434

100,000

2,000

1,250,000

25,000

16,250,000

Michigan:
AdrianAdrian State Savings
Bank
120,000
Commercial Savings Bank
110,000
Lenawee County Savings
Bank
150,000
Albion—Commercial and Savings Bank
75,000
Ann A r b o r Farmers and Mechanics
Bank
150,000
State Savings Bank
150,000
Charlotte—Eaton C o u n t y
100,000
Savings Bank
Chelsea—Farmers and Mer25,000
chants Bank...
Coloma—State Bank of Coloma
25,000
Dearborn—Dearborn
State
Bank
100,000
Detroit500,000
First State Bank
Peninsular State B a n k . . . 2,500,000
2,500,000
Peoples State Bank
The Dime Savings Bank . 1,000,000
Wayne County and Home
3,000,000




2,000,000
28,641,959
1000 000
18,200,452
500,000
1,500,000
25,178,564
300,000
4,853,405
300,000
5,504,379
7,000,000 I 144,908,866
36,288,917
1,500,000
14,126,910
1,000,000

793,723
24,157,737

500,000
16,977,000

55,000
30,000

1,975,276
1,139,850

50,000

2,194,213

40,000

829,776

75,000
150,000

1,941,323
2,976,070

20,000

1,076,437

MAT 1,1918.

Capital.
Michigan—Continued.
Detroit—Continued.
$750,000
Detroit Savings Bank
500,000
Central Savings Bank
500,000
American State Bank
Highland Park State
Bank
500,000
FlintCitizens Commercial Ond
150,000
Savings Bank
Union Trust and Savings
Bank
100,000
Industrial Savings Bank .
250,000
Fremont—Old State Bank....
Gladstone—State S a v i n g s
50,000
Bank
Grand Haven—Grand Haven
50,000
State Bank
Grand R a p i d s 75,000
Grand Rapids Savings
Bank
400,009
500,000
Kent State Bank
Hart—Oceana County Savings Bank
40,000
Highland Park—Highland
1,000,000
Park State Bank
HudsonBoies State Savings Bank.
75,000
Thompson Savings Bank.
100,000
Imlay City—The Peoples
State Bank
50,000
JacksonCentral State Bank
100,000
Jackson State Savings
100,000
Bank
Union Bank of Jackson...
400,000
Lansing—Lansing State Savings Bank
150,000
Lapeer—Lapeer Savings Bank
50,000
Manistee—Manistee County
Savings B a n k . . . ,
100,000
Marcellus—G. W. Jones Exchange Bank
40, COO
Monroe—B. Dansard & Sons7
State Bank
100,000
Mount Pleasant—Exchange
Savings Bank
50,000
Niles-Niles City Bank
100,000
Petersburg—H. C. McLachlin & Co. State Bank
25,000
Petoskey—First State Bank
of Petoskey
60,000
Port Huron—St. Clair County
Savings Bank
100,000
Rochester—Rochester Savings Bank
50,000
Rogers City—Presque Isle
35,000
County Savings Bank
50,000
« Romeo—Romeo Savings Bank
>
Royal Oak—First Commer25,000
cial State Bank
Royal Oak—Royal Oak Sav40,000
ings Bank
500,000
Saginaw—Bank of Saginaw...
25,000
Saline—Saline Savings Bank.
Saugatuck—Fruit
Growers
50,000
State B ank
Sault Ste. Marie—Sault Sav100,000
ings Bank
St. Clair—Commercial & Sav60,000
ings Bank
Warren—The State Savings
25,000
Bank of Warren
Total..

17,910,000

Surplus.

Total

$750,000
100,000
190,000

$19,468,463
11,811,264
6,841,40J

100,000

9,725,519

175,000

3,660,01©

135,000
250,000
25,000

3,

605
273

15,000

597,053

75,000

1,594,975

350,000
500,000

8,107,373
10,132,463

13,000

405,034

500,000

21,253,238

25,000
50,000

737,600
1,362,837

10,000

619,337

26,000

1,308,914

100,000
100,000

2,037,539
4,812,228

100,000
10,000

2,755,673
602,232

100,000

2,069,897

16,000

562,145

20,000

1,696,240

30,000
20,000

885,968
736,935

5,000
10,000

76,337

50,000

1,426,569

10,000

643,153

12,000
30,000

709,133
1,199,287

5,000

362,624

10,000
700,000
20,000

798,961
13,018,,340
387,725

12,500

545,287

35,000

1,303,569

10,000

784,982

15,000
13,914,500

360,340,434

25,000

552,569

10,000

688,705

200,000
200,000
60,000
20,000
50,000

2,903,572
4,555,369
3,717,967
612,406
2,396,587

25,000
10,000

434,221

100,000

1.478,614

150,000
1,000,000
3,500,000
1,000,000

7,939,861
26,837,148
76,416,547
33,920,264

Minnesota:
Luveme—Rock County Bank
25,000
Madelia—State
Bank
of
Madelia v
50,000
Minneapolis—
Bankers Trust & Savings
Bank*
1,000,000
German American Bank.
200,000
St. Anthony Falls Bank..
300,000
Wells-Dickey Trust C o . . .
500,000
St. Paul—Peoples Bank
300,000

3,000,000 j 55,410,226
i Converted into a national bank.

MAY

1, 1918.

Capital.
Minnesota—Continued.
pring Valley—Fanners State
Virginia — American
Exchange Bank
Winona—Merchants Bank of
Winona...

$25,000
100,000

Total
resources.

Surplus.

$5,000

$177,494
1,162,835

30,000

100,000

Mississippi:
Laurel—Commercial Bank <c
f
Trust Co
Summit—Union Bank of Pike

50,000

2,685,461

2,600,000

Total.

650,000

19,452,965

100,000
25,000

Total.

125,000

Missouri:
Jefferson City — Exchange
Bank of Jefferson City
| 100,000 j
Kansas City-—
j
Commerce Trust Co
1,000,000
Fidelity Trust Co
| 1,000,000
St. Louis—
j
Franklin Bank
I 600,000
German American
1,000,000
American Trust Co
1,000,000
German Savings Institution
1,500,000
International Bank of...
500,000
Lafayette South Side
Bank
800,000
3,000,000
Mercantile Trust Co
Mississippi Valley Trust
3,000,000
Co
St. Louis Union Bank....! 2,500,000
Macon—State Exchange !
j
BankofMacon
I 100,000
Marshall-Wood & Huston !
Bank
100,000
Total.

16,200,000

Montana:
Billings—Security Trust &
Savings Bank
Dillon—Beaverhead State
Bank
Helena—
|
Conrad Trust & Savings I
Bank
Union Bank & Trust Co.. j
Hingham—Hingham State i
Bank
j
Lewistown—
j
Bank of Fergus County...
Lewistown State Bank...
Opheim—First State Bank...
Sidney—Yellowstone Valley !
Bank & Trust Co
Bozeman—Gallatin Trust <e
f
Savings Bank

25,000 i
4,000 !
29,000 |

20,000 i
1,000,000 !
1,000,000 ;
800,000
700,000
115,000
1,000,000 I
500,000 i

Nebraska:
Elgin—Elgin State Bank
Lewellcn—Bank of Lewellen.
Neligh—Security State Bank.
Pender—Pender State Bank..
W a y n e — S t a t e B a n k of
Wayne
Total.

1,379,016

31,610,039
15,323,215
9,897,608
9,561,289
7,557,092

3,500,000
2,500,000

32,116,053
39,553,674

20,000

817,544

150,000

1,485,071

18,205,000 i 236,313,514

100,000

791,749

50,000

153,873
80,000
150,000

2,856,460

35,000
250,000
50,000
25,000

250,000
15,000
5,000

3,294,317
401,133
286,217

100,000

5,000

761,882

100,000

25,000

1,046,919

530,000

16,517,926

10,000
10,000
5.000
4,500

759,334
257,814
260,122
464,253

=1=
50,000
25,000
25,000
50,000
40,000
190,000

8

New Jersey—Continued.
Montclair—Bank of Montclair. $100,000
Montclair—Montclair Trust
Co
300,000
Passaic—
Passaic Trust & Safe Deposit Co
200,000
Peoples Bank & Trust Co.
200,000
Plainfield—Plainfield Trust
Co
300,000
100,000
Rahway—Rahway Trust Co..
Rutherford—Rutherford
Trust Co
100,000
Westfield—Peoples Bank &
Trust Co
100,000
Hobolcen—Hudson Trust Co.
of West Hoboken
1,000,000

10,000

724,321

39,500

2,465,844

3,213,787
10,803,034
902,445
450,739
750,140
29,996,271

$80,000

12,585,732

100,000

3,790,241

100,000
300,000

7,416,701
6,825,277

200,000
25,000

8,392,346
501,895

25,000

1,125,016

80,000

2,005,718

1,000,000

21,466,09L
100,225,433

New York:
Batavia—The Bank of GeneBinghamton—Peoples Trust
:

40,000

601,196

30,000 j

20,000

580,22c

25,000 |

5,000

154,488

155,000 ;

Total.

Co

Total
resources.

4,400,000 | 4,402,944

Total.
New Mexico:
A l b u q u e r q u e—American
Trust & Savings Bank
Lovingfcon—First Territorial
Bank
Mountainair—Mount a i n a i r
State Bank

8,609,578

I

200,000
250,000

Capital, j Surplus.

1,111,788

400,000 ! 13,144,250
44,840,733
6,500,000

New Jersey:
Bloomfleld—Bloomfield Trust
100,000
200,000
Co
Camden—Camden Safe De800,000
500,000
posit & Trust Co
Glen Ridge—Glen Ridge
20,000 j
100,000
Trust Co
Gloucester City—Gloucester
22,944 j
100,000
City Trust Co
Hackensack—Peoples Trust
50,000 j
100,000 I
& Guaranty Co.
Jersey
City — Commercial
Trust Co. o'f New Jersey.... 1,000,000 I 1,500,000 !




1,183,656
195,360

1,160,000 |

Total.

55543—18

411

FEDERAL RESERVE BULLETIN.

100,000

65,000

1.335,909

100,000

100,000

1,388,021

500,000

100,000

4,787,550

Brooklyn1,500,000 2,898,481
Brooklyn Trust Co
1,000,000 1,000,000
Franklyn Trust Co
1,000,000
300,000
Manufacturers Trust Co..
1,000,000 1,000,000
Peoples Trust Co
Buffalo500,000
500,000
Buffalo Trust Co
Citizens C o m m e r c i a l
1,250,000 1,250,000 |
Trust Co
Elmira—Chemung C a n al
600,000
400,000
Trust Co
Gloversville—Trust Co of Ful200,000
100,000
ton County
Hammondsport—The Bank
50,000
50,000
of Hammondsport
200,000
100,000
Ithaca—Ithaca Trust Co
J o h n s o n City—Workers
100,000
25,000
Trust Co
Mineola—Nassau C o u n t y
100,000
75,000 j
Trust Co
New Y o r k 11,250,000 : 11,250,000
Bankers Trust Co
1,500,000 6,000,000
Bank of America
5,000,000 :15,000,000
Central Trust Co
5,000,000 : 5,000,000
Columbia Trust Co
Commonwealth Bank (formerly Germania Bank
400,000 ; 600,000
of)..:
3,500,000 : 6,991,165
Corn Exchange Bank
6,000,000; 10 500,000
Equitable Trust Co
Farmers Loan & Trust Co. 5,000,000 •10,000,000
1,000,000 • 1,000,000
Fidelity Trust Co
750,000 ! 250,000
German American Bank..
25,000,000 ! 25,000,000
Guaranty Trust Co
Irving Trust Co. (formerly Broadway Trust
1,500,000 : 750,000
Co.)
500,000
1,000,000
Lincoln Trust Co
| 2,050,000 4,500,000
Manhattan Co
Mercantile Trust & De500,000
11,000,000!
posit Co
. 2,000,000 1,000,000
1
Metropolitan Bank
I 2,000,000 4,000,000
Metropolitan Trust Co
| 3,000,000 10,000,000
New York Trust Co
500,000
500,000
Pacific Bank
Scandinavian Trust Co... 1,000,000 1,500,000
3,000,000 4,500,000
Union Trust Co
U.S.Mortgage & Trust Co. 2,000,000 4,000,000
2,000,000 12,000,000
U.S. Trust Co 7
500,000
500,000
W. R. Grace & Co, s Bank
Niagara Falls—Power City
300,000 i 300,000
Bank

37,218,377
25,952,855
16,960,680
27,612,814
10,422,125
22,139,025
8,068,435
355,669
1,041,166
3,202,068
2,410,922
1,981,862
355,365,397
71,998,358
197,145,628
110,081,046
8.246,864
184; 615,059
258,340,510
196,061,446
15,773,846
15,416,545
849,214,495
32, 780,842
16.675,933
102; 157,332
8,136,009
29,373,029
63,311,315
91,093,264
16,653,727
18,020,231
84,482,476
90,919,986
78,095,755
7,308,521
6,625,442

412

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Capital.
New York—Continued.
Ogdensburg—St. Lawrence
Trust Co
Oneida—Madison C o u n t y
Trust & Deposit Co
Rome—Rome Trust Co
Schenectady—Schenec t a d y
Trust Co
Syracuse—City Bank
Utica—
Citizens Trust Co
Oneida County Trust Co..
"Utica Trust & Deposit Co.
Watertown—Northern New
York Trust Co
Warsaw—Trust Co. of Wyoming County
Total.
North Carolina:
Asheville—Battery P a r k
Bank
Newbern—New Bern Banking & Trust Co
Total.
North Dakota:
Enderlin—Enderlin S t a t e
Bank
Fargo—Northern S a v i n g s
Bank
Hettinger—Hettinger S t a t e
Bank
Williston—Bank of Williston.
Total.
Ohio:
AkronCentral Savings & Trust
Co
Depositors Savings &
Trust Co
CincinnatiUnion Savings Bank &
Trust Co
Western Bank & Trust Co.
ClevelandCitizens Savings & Trust
Co
Cleveland Trust Co
Guardian Savings & Trust
Co
Superior Savings & Trust
Co
Columbus—Citizens Trust &
Savings Bank
Hillsboro—Hillsboro Bank &
Savings Co
Llassillon—Ohio Banking &
Trust Co
Newark—Newark Trust Co...
Steuben v i 11 e —Steubenville
Bank & Trust Co
Toledo—Guardian Trust &
Savings Bank
Wellington—First Wellington
Bank
Youngstown—City Trust &
Savings Bank
Total.
Oklahoma:
Fort Towson—First State
Bank
Oklahoma City—Tradesmens
State Bank
Total
Oregon:
Enterprise—Enterprise State
Bank
Hood River—Butler Banking
Co
Joseph—First State Bank of. „.




Surplus.

Total
resources.

$100,000

$25,000

$849,960

164,000
300,000

94,870
60,000

2,495,257
4,309,232

300,000
500,000

62,500
148,000

6,529,021
8,728,502

500,000
250,060
600,000

400,000
250,000
300,000

10,473,157
2,687,247
15,325,279

400,000

400,000

9,156,932

100,000

20,000

780,057

97,564,100 145,800,016 2,931,067,269

100,000

100,000

738,684

100,000
200,000

2,648,586

100,000

3,387,270

50,000

10,000

506,854

100,000

15,000

1,460,424

25,000
50,000

3,500

269,812
180,818

225,000

28,500

2,417,908

500,000 |

500,000

10,719,917

300,000 !

250,000

4,242,085

1,000,000
375,000

2,000,000
500,000

21,933,612
11,218,621

4,000,000
2,500,000

4,000,000
2,500,000

72,591,046
64,167,458

3,000,000

3,000,000

53,250,039

500,000

1,000,000

17,327,461

700,000
50,000 |

150,000
12,000

5,295,498
646,624

150,000 j
200,000 i

37,500
125,000

1,405,496
2,655,417

125,000 |

50,000

1,7.13,784

200,000 |

200,000

4,375,300

85,000 j

70,000

1,269,928

150,000

4,596,414

14,544,500

277,408,700

50.000 I

5,000

504,629

200,000 I

10,000

5,077,520

250,000

15,000

5,582,149

50,000

10,000

259,637

100,000
50,000

20,000
10,000

940,922

200,000 '
13,885,000

Surplus.
Oregon—Continued.
Marshfield—
Bank of Southwestern
$100,000
Oregon
Scandinavian American
25,000
Bank
North Portland—Live Stock
100,000
State Bank.
Portland—Ladd & TiltonBnk. 1,000,000
Total.
Pennsylvania:
Chester—CambridgeTrust Co.
Erie—Security Savings &
Trust Co
Harrisburg—Dauphin Deposit
Trust Co
Hazleton—Markle Banking &
Trust Co
Lykens—Miners Deposit
Bank
Meadville—Crawford County
Trust Co
New Castle—Lawrence SavastleLawr
ings & Trust C
i
& T
Co
Philadelph i a lph
C
i
Commercial Trust Co
Fidelity Trust Co..
Girard Trust Co.
Philadelphia Trust Co
Penna. Co. for Insurances
on Lives and Granting
Annuities
Rittenhouse Trust Co
PittsburghAllegheny Trust Co
Colonial Trust Co
Oakland Savings & Trust
Co.
Pittsburgh Trust Co
Union Trust Co
Wilkes-Barre—Dime Deposit
Bank
f....
Williamstown—Williams Valley Bank

$5,000

202,037

10,000
1,000,000

936,954
19,770,083

1,060,000

1,425,000

$857,648

5,000

23,235,619

250,000

125,000

4,391,352

200,000

300,000

3,989,336

300,000

300,000

3,938,601

100,000

500,000

4,180,919

50,000

110,000

701,42?

125,000

10,000

1,581,825

300,000

300,000

3,641,541

1,000,000 1,750,000
5,000,000 16,000,000
2,500,000 7,500,000
1,000,000 4,000,000

26,081,322
55,061,462
55,384,424
25,699,976

2,000,000
250,000

5,000,000
50,000

41,113,055
2,000,231

700,000
2,600,000

500,000
2,600,000

4,873,630
20,204,199

200,000
2,000,000
1,500,000

200,000
1,000,000

4,185,658
20,457,097

34,500,000

136,991,403

150,000

1,954,742

44,000
74,939,000

429,815
416,861,994

200,000
50,000

20,325,000
Total.
Rhode Island:
ProvidenceIndustrial Trust Co
3,000,000
Rhode Island H o s p i t a l
3,000,000
Trust Co

4,000,000

70,512,352

3,500,000

57,503,575

7,500,000

6,000,000
Total
South Carolina:
Cheraw—Bank of Cheraw
110,000
Cheraw—Merchants & Farmers Bank
100,000
Hartsville—Bank of Hartsville
50,000
Sumtcr—Peoples Bank of
100,000
Sumter
Westminster—W estminster
Bank
100,000
Woodruff—Bank of Woodruff.
40,700

128,015,927
= - . —:

50,000
3,000
50,000
19,400

555,308
374,671
610,373

25,000
10,500

499,267
599,280
398,502
3,037,401

Total
South Dakota:
?••
Belle Fourche—Butte County
Bank
Brookings—-The Bank of
Brookings
Sioux Falls—Sioux Falls Savings Bank
Webster—Security Bank of
Webster

500,700

157,900

Total.
Tennessee:
MemphisGuaranty Bank & Trust
Co
Union & Planters Bank
& Trust Co
Total.

Total
resources.

25,000

45,000

810,482

100,000

20,000

2,435,609

200,000

23,000

4,092,562

40,000

12,000

1,135,717

365,000

100,000

8,474,376

1,400,000 |

200,000

19,184,323

1,900,000 I

200,000

19,804,323

i

500,000 |
.

620,000

MAY 1,1918.

Capital.
Texas:
Anson—Anson State B a n k . . .
A very—A very State Bank
Ballinger — Ballinger
State
Bank & Trust Co
Beaumont—Guaranty Bank
& Trust Co
Beeville—Beeville Bank &
Trust Company
Bonham—First State Bank...
Bremond—First State Bank..
Canyon—First State Bank
Childress—Farmers & Mechanics State Bank
Cuero—First State Bank &
Trust Co
DallasCentral State Bank
First State Bank
DeKalb—First State Bank...
Sdgewood—Farmers & Merchants State Bank
Ennis—The First Guaranty
State Bank & Trust Co
Flatonia—Flatonia S t a t e
Bank
Franklin—First State B a n k . .
Galveston—South T e x a s
State Bank
Hamlin—First State Bank....
Hansford—Guaranty
State
Bank
Hereford—First State Bank
&TrustCo
Italy—The Farmers State
Bank
Jacksonville—Farmers Guaranty State Bank
Lamesa—First State B a n k . . .
Lubbock—
Lubbock State Bank
Security State Bank &
Trust Co
Memphis—C i t i z e n s State
Bank & Trust Co
Mt. Calm—The First State
Bank
ParisFirst State Bank
Lamar State Bank &
Trust Co
;
Rockwall—The
Guaranty .
State Bank
;
Rusk—Farmers & Merchants !
State Bank
;
Savoy—First State Bank
Shamrock—Farmers & Merchants State Bank
Weatherford—First S t a t e
Bank
Wolfe City—First State Bank.
Normangee—First State Bank.
Tata!

Total
resources.

Surplus.

335,000
25,000

810,000 !
5,000 !

60,000

$270,110
139,693

12,000

229,544

100,000

10,000

1,239,951

50,000
100,000
50,000
25,000

25,000
14,000
25,000
2,500

300,256
1,173,985
328,639

50,000

25,000

235,702

100,000

35,000

561,737

200,000
250,000
25,000

5,000
28,000
25,000

651,531

35,000 I
100,000

2,307,680
4,020,863

7,000

510,272

20,000 I

40,000 I
30,000 |
100,000 j .
25,000 i

25,000 j

I

1,250 !
7,500!
1,750
,

316,519
536,420
435,559
213,996
1,322,217
176,056
74,245

50,000 |

25,000

25,000 '

12,500

50,000 i
30,000 ;

7,500
20,000

367,988
373,455
259,771

100,000 I

13,000

961,398

668,611

100,000 !.

169,769

75,000 !

26,400 j

25,000 !

7,000 I

150,000 j

75,000 j

1,572,099

150,000 j

12,500 |

1,482,314

i

610,809
129,785

35,000 |

1,350 |

2&5,970

25,000 !
25,000 !

15,000 I
3,500

352,747
269,051

25,000 |

25,000

4.30,844

I
15,000 i
20,000 !
25,000 !

740,944
457,464
171,082

125,000 !
50,000 :
25.000 |

! 2,490,000 |

Utah:
}
Salt Lake C i t y — W a l k e r i
Bros., Bankers
I

562,750 j

i

!

500,000 i

100,000 i

24,3-19,0

8,720,163

!

Virginia:
"Chase City—Peoples Bank & |
Trust Co
i
Harrison-burg—Peoples Bank :
of
|




413

FEDEBAL BEBBBYE BULLETIN.

!
100,000 :

10,000 I

321,933

150,000 !

20,000

640,804

Capital.
Vi rginia—Continued.
NorfolkCitizens Bank of Norfolk..
Marine Bank of Norfolk..
Richmond—Savings Bank of.

Surplus.

Total
resources.

$600,000
220,000
200,000

S500,000
110,000
200,000

16,042,258
1,464,609
2,295,309

Total.
1,270,000
-^— :• - r r —
Washington:
Centralia—Centralia S t a t e
100,000
Bank
Chehalis — Coffman - Dobson
150,000
Bank & Trust Co
Colfax—First Savings & Trust
50,000
Co
Farmington—Bank of Farm25,000
ingtqn
Hoquiam—Lumbermen s
100,000
Bank
60,000
La Crosse—:First State Bank..
North Yakima—Yakima Val100,000
ley Bank
Odessa—Farmers & Mer25,000
chants Bank
Port Townsend—Merchants
75,000
Bank
Reardon—Farmers S t a t e
25,000
Bank
25,000
Rosalia—Bank of Rosalia
Seattle200,000
Metropolitan liank
Dexter Horton Trust &
400,000
Savings Co
South
Beilingham—North3.00,000
western State Bank
Spokane—Spokane & Eastern
1,000,000
Trust Co
25,000
St. John—Farmers State Bank
500,000
Tacoma—Fidelity Trust Co...
30,000
Tekoa—Tekoa State Bank.
50,000
Wilbur—State Bank of Wilbur

840,000

10,764,913

2,000

478,511

100,000

1,824,087

15, GOO

387,297

5,000

254,214

13,000
8,000

752,338
586,604

15,000

1,269,710

2,500

247,374

25,000

744,277

7,500
5,000

661,296
319,780

100.000

3,604,249

100,000

8,100,480

45,000

1,452,119

200,000
3,125
300,000
12,000
5,000

17,726,241
'262,910
7,010,679
435,848
824,104

3,040,000
Total.
West Virginia:
Charleston—Kanawha Valley \
Bank
..j 400,000
Grafton—Graf ton Banking & I
Trust Co
! 100,000

963,125

46,942,118

Total
| 500,000
Wisconsin:
Balsam Lake—Polk County
25,000
Bank
Boyceville—Bank of Boyoo30,000
ville
50,000
Clinton—Citizens Bank
50,000
Ellsworth—Bank of Ellsworth
Grantsburg—First Bank of
50,000
Grants burg
300,000
Madison—Bank of Wisconsin.
Milwaukee200,000
Badger State Bank
Marshall & His icy B a n t . . 1,000,000
American Exchange Bank
Mosinec—State Bank of Mosi500,000
neo
Wausau—Ma rath on County
30,000
Bank..
..'...
100,000
Total
2,335,000

900,000

7,619,935

30,000

1,065,316

930,000

8,6S5,251

5,000

252,609

5,000
i0,000
15,000

275,728
493,753
914,576

2,000
60,000

547,155
2,218,116

2,000
700,000
100,000

1,498,757
17,976,437

17,000

5,004,220
433,658

40,000
956,000

824,151
30,259,240

NOTE.—Total resources of member State institutions as shown in
March BULLETIN should be 85,509,026,566.

414

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

Statement showing membership of State banks in the Federal Reserve systera tip to and including Apr. 30, 1918, classified
in accordance with rank by States as to number of banks, capital and surplus, and resources.
[In thousands of dollars, i. c , 000's omitted.]
Num-i
Capital
Reber of Rank. and Rank. sources. Rank, i
surplus.
banks.

State.

i;

j

New York -.
Illinois
Pennsylvania
Michigan
Massachu so tts
Ohio .
Missouri
Rhode Island.
New Jersc v
Louisiana
Georgia.
Washington
Wisconsin
Maryland
Alabama
Texas...
Oregon
Colorado
Connecticut
Tonnesee
I^elaware
Minnesota....
Maine
Iowa..
Montana

!
!
i
. . .i
i

i
. . .
i
i

. . .
. .
...

49
39
20
56
18
16
14
2
15
10
8
19
11
4
7
37
7
2
3
2
2
10
2
13
10

2 1243,364 i
" 52,690 !
95,264 |
31,824 !
33,227 !
28,429 !
34,405 :
13, .500 j
8,805 !
9,378 i
6,942 !
4,003 j
3,291 i
5,000 !
2,888 i
3,053 j
2,485
1 685 i
2.850 :

1 2, 931.067 j
3
469,795 I
416,862
2
360,340 |
6

2; ioo I
2,800
3,250
1,500
1,918
1,690

I
!
!
I
i

24

State.

358.068 i
277,409 !
236,314 i
128,016 !
100,225: !
99,342
48,979
46,942
30,259
29,424 i
27,864 I
24,349 i
23,236 !
21,619 I
20,161 i
19,804
19,505
19,453:
18,851
IS)417
16,518

National Banking Legislation.

NumCapital j
ber of Rank, and I Rank,
banks.
surplus.)

Re-

iRank.

!
Virginia
Indiana
Kentucky*
Kansas.'...
Utah
West Virginia
South 3Dakota
California
Florida
Oklahoma
District of Columbia
Arkansas
North Carolina
South Carolina
Nebraska
North Dakota
Idaho
Mississippi
New Mexico
Arizona
Nevada
New Hampshire
Vermont
Wyoming

1

2,110
931
1,060
932
800
1,430
465
1,020
990
265

1,100
720
300
659
229
264
328
154
220
108 !

21
33
29
32
35
27
37
30
31
40
28
34

10,765
10,621
10,047
8,890
8,720
8,685
8,474
6,158
5,745
5,582
4,905
4,313
3,387
3,037
2,466
2,418
2,269
1,379
1,336
834

26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45

ganization committee shall classify the member banks of
the district into three general groups or divisions. Each
Herewith are printed, for ttie information of group shall contain as nearly as may be one-third of the
member banks, bills reported by the respective aggregate number of the member banks of the district,
committees on banking and currency of the and shall consist, as nearly as may be, of banks of similar
Senate and House of Representatives. The capitalization. The groups shall be designated by 3111mber by the chairman.
action taken on H. R. 11283, an amendment to
"At a regularly called meeting of the board of directors
the Federal Reserve Act, is based upon recom- of each member bank in the district it shall elect by ballot
mendations of the Federal Reserve Board. a district reserve elector and shall certify his name to the
The bills relating to national banking legislation chairman of the board of directors of the Federal reserve
the district. The chairman shall make lists the
are based upon recommendations of the Comp- bank of reserve electors thus named by banks in each of the
district
of
troller of the Currency.
aforesaid three groups and shall transmit one list to each
elector in each group.
" Each member bank shall be permitted to nominate to
[H. R. IL283.]
the chairman one candidate for director of Class A and
A BILL To amend and reenact sections four, eleven, sixteen, nineteen,
and twenty-two of the Act approved December twenty-third, nine- one candidate for director of Class B. The candidates so
teen hundred and thirteen, and known as the Federal reserve Act, nominated shall be listed by the chairman, indicating by
and sections fifty-two hundred and eight and fifty4wo hundred and whom nominated, and a copy of said list shall, within
nine, Revised Statutes.
fifteen days after its completion, be furnished by the chairBe it enacted by the Senate and House of Representatives of man to each elector.
the United States of America in Congress assembled, That "Every director shall, within fifteen days after the resection four of the Act approved December twenty-third, ceipt of the said list, certify to the chairman his first,
nineteen hundred and thirteen, known as the Federal second, and other choices of a director of Class A and
reserve Act, be amended and reenacted by striking out Class B, respectively, upon a preferential ballot, on a
form furnished by the chairman of the board of directors
that part of such section which reads as follows:
"Directors of Class A and Class B shall be chosen in the of the Federal reserve bank of the district. Each elector
shall make a cross opposite the name of the first, second,
following manner:
"The chairman of the board of directors of the Federal and other choices for a director of Class A and for a director
reserve bank of the district in which the bank is situated of Class B, but shall not vote more than one choice for any
or, pending the appointment of such chairman, the or- one candidate,'' and by substituting therefor the following:




MAT

1, 1918.

FEDERAL RESERVE BULLETIN.

" Directors of Class A and Class B shall be chosen in
the following manner:
"The Federal Reserve Board shall classify the member
banks of the district into three general groups or divisions,
designating each group by number. Each group shall consist as nearly as may be of banks of similar capitalization.
Each member bank shall be permitted to nominate to the
chairman of the board of directors of the Federal reserve
bank of the district one candidate for director of Class A
and one candidate for director of Class B. The candidates
so nominated shall be listed by the chairman, indicating by
whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each member bank. Each member bank by a
resolution of the board or by an amendment to its by-laws
shall authorize its president, cashier, or some other officer
to cast the vote of the member bank in the elections of
Class A and Class B directors.
"Within fifteen days after receipt of the list of candidates the duly authorized officer of a member bank shall
certify to the chairman his first, second, and other choices
for director of Class A and Class B, respectively, upon a
preferential ballot upon a form furnished by the chairman
of the board of directors of the Federal reserve bank of the
district. Each such officer shall make a cross opposite
the name of the first, second, and other choices for a director of Class A and for a director of Class B, but shall not
vote more than one choice for any one candidate. No
officer or director of a member bank shall be eligible to
serve as a Class A director unless nominated and elected
by banks which are members of the same group as the
member bank of which he is an officer or director.
Any person who is an onicer or director of more than
one member bank shall not be eligible for nomination as a
Class A director except by banks in the same group as the
bank having the largest aggregate resources of any of those
of which such person is an officer or director.
SEC. 2. That section eleven (k) of the Federal reserve
Act be amended and reenacted to read as follows:
"(k) To grant by special permit to national banks applying therefor, when not in contravention of State or
local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates,
assignee, receiver, committee of estates of lunatics, or in
any other fiduciary capacity in which State banks, trust
companies, or other corporations which come into competition with national banks are permitted to act under the
laws of the State in which the national bank is located.
"Whenever the laws of such State authorize or permit
the exercise of any or ail of the foregoing powers by State
banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise
of such powers by national banks shall not be deemed to
be in contravention of State or local law within the meaning of this Act.
"National banks exercising any or all of the powers
enumerated in this subsection shall segregate all assets




415

held in any fiduciary capacity from the general assets of
the bank and shall keep a separate set of books and records
showing in proper detail all transactions engaged in under
authority of this subsection. Such books and records shall
be open to inspection by the State authorities to the same
extent as the books and records of corporations organized
under State law which exercise fiduciary powers, but
nothing in this Act shall be construed as authorizing the
State authorities to examine the books, records, and assets
of the national bank which are not held in trust under
authority of this subsection.
"No national bank shall receive in its trust department
deposits of current funds subject to check or the deposit of
checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds deposited or held
in trust by the bank awaiting investment shall be carried
in a separate account and shall not be used by the bank in
the conduct of its business unless it shall first set aside in
, the trust department United States bonds or other securi*
ties approved by the Federal Reserve Board.
" I n the event of the failure of such bank the owners of
the funds held in trust for investment shall have a lien on
the bonds or other securities so set apart in addition to
their claim against the estate of the bank.
"Whenever the laws of a State require corporations
acting in a fiduciary capacity, to deposit securities with
the State authorities for the protection of private or court
trusts, national banks so acting shall be required to make
similar deposits and securities so deposited shall be held
for the protection of private or court trusts, as provided by
the State law.
"National banks in such cases shall not be required to
execute the bond usually required of individuals if State
corporations under similar circumstances are exempt from
this requirement.
"National banks shall have power to execute such
bond when so required by the laws of the State.
" I n any case in which the laws of a State require that
a corporation acting as trustee, executor, administrator,
or in any capacity specified in this section, shall take an
oath or make an affidavit, the president, vice president,
cashier, or trust officer of such national bank may take the
necessary oath or execute the necessary affidavit.
1
' It shall be unlawful for any national banking association to lend any officer, director, or employee any funds
held in trust under the powers conferred by this section.
Any officer, director, or employee making such loan, or to
whom such loan is made, may be fined not more than
85.000, or imprisoned not more than five years, or may be
both fined and imprisoned, in the discretion of the court.
" I n passing upon applications for permission to exercise the powers enumerated in this subsection, the Federal
Reserve Board may take into consideration the amount
of capital and surplus of the applying bank, whether or
not such capital and surplus is sufficient under the circumstances of the case, the needs oi the community to be
served, and any other facts and circumstances that seem

416

FEDERAL ItESEKYE BULLETIN.

MAT 1,1918.

"(a) No member bank and no officer, director, or emto it proper, and may grant or refuse the application
accordingly: Provided, That no permit shall be issued to ployee thereof shall hereafter make any loan or grant any
any national banking association having a capital and sur- gratuity to any bank examiner. Any bank officer, director,
plus less than the capital and surplus required by State or employee violating this provision shall be deemed
law of State banks, trust companies, and corporations guilty of a misdemeanor and shall be imprisoned not exceeding one year or fined not more than $5,000, or both;
exercising such powers.7'
SEC. 3. That the ninth paragraph of section sixteen of and may be fined a further sum equal to the money so
the Federal reserve Act, as amended by the Acts approved loaned or gratuity given.
'"Any examiner accepting a loan or gratuity from any
September seventh, nineteen hundred and sixteen, and
June twenty-first, nineteen hundred and seventeen, be bank examined by him or from an officer, director, or
employee thereof shall be deemed guilty of a misdefurther amended and reenacted so as to read as follows:
" I n order to furnish suitable notes for circulation as meanor and shall be imprisoned one year or fined not more
Federal reserve notes, the Comptroller of the Currency than $5,000, or both, and may be fined a further sum equal
shall, under the direction of the Secretary of the Treasury, to the money so loaned or gratuity given, and shall forever
cause plates and dies to be engraved in the best manner to thereafter be disqualified from holding office as a national
guard against counterfeits and fraudulent alterations, and bank examiner.
"(b) No national bank examiner shall perform any
shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, other service for compensation while holding such office
|50, $100, $500. $1,000, $5,000, $10,000 as may be required for any bank or officer, director, or employee thereof.
"No examiner, public or private, shall disclose the
to supply the Federal reserve banks. Such notes shall be
in form and tenor as directed by the Secretary of the names of borrowers or the collateral for loans of a member
Treasury under the provisions of this Act and shall bear bank to other than the proper officers of such bank without
the distinctive numbers of the several Federal reserve first having obtained the express permission in writing
from the Comptroller of the Currency, or from the board of
banks through which they are issued."
directors of such bank, except when ordered to do so by a
SEC. 4. That paragraphs (b) and (c) of section nineteen of the Federal reserve Act, as amended by the Acts court of competent jurisdiction, or by direction of the
approved August fifteenth, nineteen hundred and four- Congress of the United States, or of either House thereof,
teen, and June twenty-first, nineteen hundred and seven- or any committee of Congress, or of either House duly
teen, be further amended and reenacted to read as follows: authorized. Any bank examiner violating the provisions
of this subsection shall be imprisoned not more than one
"(b) If in a reserve city, as now or hereafter defined,
year or fined not more than $5,000, or both.
it shall hold and maintain with the Federal reserve bank of
"(c) Except as herein provided, any officer, director,
its district an actual net balance equal to not less than ten
employee, or attorney of a member bank who stipulates for
per centum of the aggregate amount of its demand deposits
or receives or consents or agrees to receive any fee, commisand three per centum of its time deposits: Provided, howsion, gift, or thing of value from any person, firm, or corpoever, That if located in the outlying districts of a reserve
ration, for procuring or endeavoring to procure for such percity or in terriotry added to such a city by the extension
son, firm, or corporation, or for any other person, firm, or
of its corporate charter, it may, upon the affirmative vote corporation, any loan from or the purchase or discount of
of five members of the Federal Reserve Board, hold and any paper, note, draft, check, or bill of exchange by such
maintain the reserve balances specified in paragraph (a) member bank shall be deemed guilty of a misdemeanor and
hereof.
shall be imprisoned not more than one year or fined not
"(c) If in a central reserve city, as now or hereafter more than $5,000, or both.
defined, it shall hold and maintain with the Federal reserve
" (d) Any member bank may contract for, or purchase
bank of its district an actual net balance equal to not less from, any of its directors or from any firm of which any of
than thirteen per centum of the aggregate amount of its its directors is a member, any securities or other property,
demand deposits and three per centum of its time deposits: when (and not otherwise) such purchase is made in the
Provided, however, That if located in the outlyingldistricts regular course of business upon terms not less favorable to
of a central reserve city or in territory added to such city the bank than those offered to others, or when such purby the extension of its corporate charter, it may, upon the chase is authorized by a majority of the board of directors
affirmative vote of five members of the Federal Reserve not interested in the sale of such securities or property,
Board, hold and maintain the reserve balances specified in such authority to be evidenced by the affirmative vote or
paragraphs (a) or (b) thereof."
written assent of such directors: Provided, however, That
SEC. 5. That section twenty-two of the Federal Reserve when any director, or firm of which any director is a memAct, as amended by the Act of June twenty-first, nineteen ber, acting for or on behalf of others, sells securities or other
hundred and seventeen, be further amended and reenacted property to a member bank, the Federal Reserve Board
to read as follows:
by regulation may, in any or all cases, require a full dis-




MAY 1,1918.

FEDERAL BESERVE BULLETIN.

417

closure to be made, on forms to be prescribed by it, of all by section eleven, subsection (h), of the Federal reserve
commissions or other considerations received, and when- Act, and shall subject such member bank if a national
ever such director or firm, acting in his or its own behalf, | bank to the liabilities and proceedings on the part of the
sells securities or other property to the bank the Federal I Comptroller of the Currency provided for in section fiftyReserve Board, by regulation, may require a full dis- two hundred and thirty-four, Revised Statutes, and shall,
in the discretion of the Federal Reserve Board, subject
closure of all profits realized from such sale.
4
'Any member bank may sell securities or other prop- any other member bank to the penalties imposed by secerty to any of its directors, or to a firm of which any of its tion nine of said Federal reserve Act for the violation of
directors is a member, in the regular course of business on any of the provisions of said Act. Any officer, director,
terms not more favorable to such director or firm than those agent, or employee of any Federal reserve bank or memoffered to others, or when such sale is authorized by a ber bank who shall willfully violate the provisions of this
majority of the board of directors of a member bank to be section, or who shall resort to any device, or receive any
evidenced by their affirmative vote or written assent: Pro- fictitious obligation, directly or collaterally, in order to
vided, hoivever, That nothing in this subsection contained evade the provisions thereof, or who shall certify a check
shall be construed as authorizing member banks to pur- before the amount thereof shall have been regularly
chase or sell securities or other property which such banks entered to the credit of the drawer upon the books of the
bank, shall be deemed guilty of a misdemeanor and shall,
are not otherwise authorized by law to purchase or sell.
"(e) No member bank shall pay to any director, officer, on conviction thereof in any district court of the United
attorney, or employee a greater rate of interest on the de- States, be fined not more than $5,000, or shall be imposits of such director, officer, attorney, or employee than prisoned for not more than five years, or both, in the
that paid to other depositors on similar deposits with such discretion of the court.
member bank.
"SEC. 5209. Any officer, director, agent, or employee
" (f) If the directors or officers of any member bank shall of any Federal reserve bank, or of any member bank as
knowingly violate or permit any of the agents, officers, or defined in the Act of December twenty-third, nineteen
directors of any member bank to violate any of the provis- hundred and thirteen, known as the Federal reserve Act,
ions of this section or regulations of the board made under who embezzles, abstracts, or willfully misapplies any o!
authority thereof, every director and officer participating the moneys, funds, or credits of such Federal reserve bank
in or assenting to such violation shall be held liable in his or member bank, or who, without authority from the
personal and individual capacity for all damages which directors of such Federal reserve bank or member bank,
the member bank, its shareholders, or any other persons issues or puts in circulation any of the notes of such Fedshall have sustained in consequence of such violation.''
eral reserve bank or member bank, or who, without such
SEC. 7. That section fifty-two hundred and eight of the authority, issues or puts forth any certificate of deposit,
Revised Statutes as amended by the Act of July twelfth, draws any order or bill of exchange, makes any acceptance,
eighteen hundred and eighty-two, and section fifty-two assigns any note, bond, draft, bill of exchange, mortgage,
hundred and nine of the Revised Statutes as amended by judgment, or decree, or who makes any false entry in any
the Acts of April sixth, eighteen hundred and sixty-nine, book, report, or statement of such Federal reserve bank or
and July eighth, eighteen hundred and seventy, be, and member bank, with intent in any case to injure or defraud
the same are hereby, amended and reenacted to read as such Federal reserve bank or member bank, or any other
company, body politic or corporate, or any individual perfollows:
"SEC. 5208. It shall be unlawful for any officer, director, son, or to deceive any officer of such Federal reserve bank
agent, or employee of any Federal reserve bank, or of any or member bank, or the Comptroller of the Currency, or
member bank as defined in the Act of December twenty- any agent or examiner appointed to examine the affairs of
third, nineteen hundred and thirteen, known as the Fed- such Federal reserve bank or member bank, or the Federal
eral reserve Act, to certify any check drawn upon such lleserve Board; and every receiver of a national banking
Federal reserve bank or member bank unless the person, association who, with like intent to defraud or injure,
firm, or corporation drawing the check has on deposit with embezzles, abstracts, purloins, or willfully misapplies any
such Federal reserve bank or member bank, at the times of the moneys, funds, or assets of his trust, and every persuch check is certified, an amount of money not less than son who, with like intent, aids or abets any officer, director,
the amount specified in such check. Any check so certi- agent, employee, or receiver in any violation of this secfied by a duly authorized officer, director, agent, or em- tion shall be deemed guilty of a misdemeanor, and upon
ployee shall be a good and valid obligation against such conviction thereof in any district court of the United
Federal reserve bank or member bank; but the act of any States shall be fined not more than $5,000 or shall be
officer, director, agent, or employee of any such Federal imprisoned for not more than five years, or both, in the
reserve bank or member bank in violation of this section discretion of the court.
shall, in the discretion of the Federal Reserve Board, sub"Any Federal reserve agent, or any agent or employee
ject such Federal reserve bank to the penalties imposed of such Federal reserve agent, or of the Federal Reserve




418

FEDEKAL RESERVE BULLETIN.

MAY 1,1918.

Board, who embezzles, abstracts, or willfully misapplies
Section 1 furthermore contains an additional provision
any moneys, funds, or securities intrusted to his care, or that no officer or director of a member bank shall be
without complying with or in violation of the provisions eligible to serve as a class A director unless nominated and
of the Federal reserve Act, issues or puts in circulation any elected by banks which are members of the same group as
Federal reserve notes shall be guilty of a "misdemeanor the member bank of which he is an officer or director and
and upon conviction in any district court of the United that no person who is an officer or director of more than
States shall be fined not more than $5,000 or imprisoned one member bank shall be eligible for nomination as a
for not more than five years, or both, in the discretion of class A director except by banks in the same group as the
the court."
bank having the largest aggregate resources of any of
those of which such person is an officer or director.
On this bill the House committee reports as
The purpose of this provision is still further to safeguard
follows:
the proper and equal representation for each group of
The Committee on Banking and Currency, to which was banks and to have such representation genuine.
referred the bill (E. E. 11283) to amend sections 4, 11,
Section 2 amends section 11 (k) of the act under which
16, 19, and 22 of the Federal Reserve Act and sections permits may be granted to national banks when not in
5208 and 5209 of the Ilevised Statutes, having had the contravention of State or local law, to act in various
same under consideration, report the bill favorably to the fiduciary capacities. The amendment extends the
House with the recommendation that it do pass.
various fiduciary capacities permitted so as to include
Section 1 of the bill amends section 4 of the Federal 1 "guardian of estates, assignee, receiver, committed of
Reserve Act which relates to the election of Federal Re- estates of lunatics," and such other fiduciary capacities
serve Bank directors. It modifies the present law by as are permitted to State banks, trust companies, or other
leaving to the discretion of the Federal IReserve Board the corporations which come into competition with national
grouping of the member banks of each district into three banks under the laws of the State in which the particular
general groups or divisions without the present require- national bank making application is located. The purpose
ment that each group shall contain as nearly as may be of this extension is evident from the text.
one-third of the aggregate number of the banks of the disSection 2 moreover sets forth that it shall not be deemed
trict. The purpose of this modification is to make as to be "in contravention of State or local law" to permit
secure as possible a fair and equal representation on the the exercise of such powers by national banks whenever
directorate of the Federal "Reserve Banks for each group the laws of the particular State authorize or permit the
of banks, the large, the medium sized, and the small. i exercise of such powers by State banks, trust companies,
The desirability of such representation is too manifest to | or other corporations competing with national banks.
need comment. It was undoubtedly the purpose of the Under a recent decision of the United States Supreme
Federal Reserve Act to secure such representation. It Court it is clearly settled that Congress has the power to
has been found practically impossible, however, to group confer authority upon national banks to act in these
banks under these three designations and yet have the fiduciary capacities, where such powers are exercised by
banks in each group anything like numerically equal. trust companies, State banks, or other _ competing corThe modification will enable the Federal 'Reserve Board porations, even though the State law discriminates against
to group the member banks in a way to carry out better national banks in this regard. The terms of section 11 (k)
the plain intent of the Federal Reserve Act.
are extended, therefore, to permit such powers to be
Section 1 further amends section 4 of the Federal granted to national banks in those States in which the
Reserve Act by replacing the present method of electing, State law discriminates against national banks in this
by ballot, a district reserve elector, at a regularly called respect.
Under this amendment, furthermore, it is prescribed
meeting of the board of directors of each member bank in
the district to cast its vote in an election of Federal reserve that all assets held in any fiduciary capacity shall be
bank directors by a provision permitting each member segregated from the general assets of the bank; that a
bank, by a resolution of its board of directors or by an separate set of books and records shall be kept; that such
amendment to its by-laws, to authorize its president, books and records shall be open to the inspection of State
cashier, or some other officer to cast its vote in such elec- authorities; that national banks shall not receive in their
tions. The purpose of this amendment is to obtain wider trust departments deposits of current funds subject to
participation by the banks in the election of Federal check or the deposit of checks, drafts, or similar instruReserve Bank directors. Since the first election of ments; that trust funds deposited with the general assets
directors under the act the member banks have failed to of the bank shall be properly secured; that the owners of
a surprisingly great degree to participate in these elections. such funds shall have a lien on the securities set apart to
The committee is recommending that the manner of protect these funds; that national banks acting as fiduselecting representatives to vote at elections be simplified ciaries shall comply with State requirements as to the deas suggested, in order to bring about a greater participa- posit of securities with the State authorities; that national
banks shall not be required to execute bonds if State
tion by the member banks in the elections.




MAY

1, 1918.

FEDERAL. .RESERVE BTJLLETIK.

419

corporations under similar circumstances are exempt from (c), (d), (e), and (f). The purpose of these changes is to
such requirement: that national banks shall have the clarify and modify the existing provisions of the law.
power to execute such bonds; that oaths or affidavits re- Great uncertainty has existed as to the proper interpretaquired may bo executed by a national bank officer; and tion of various parts of section 22 and., in the absence of
that it shall be unlawful for a national bank to lend trust any construction by the courts., it has not been possible
funds to any bank officer, director, or employee. The to state authoritatively what is permitted and what is
Federal Reserve Board, moreover, in passing upon appli- prohibited by the section. The committee feels assured
cations is required to take into consideration the amount that the new subsections clearly and. definitely set forth
of capital and surplus of the applying bank and. other the limitations imposed and that the intent oi the law is
material facts, and is prohibited from granting such per- plainly evident.
mits to national banks of smaller capitalization and surplus
Subsection (c) is designed to prohibit the practice
than is required of State banking institutions under State whereby any officer, director, employee, or attorney of a
law, These provisions are intended to impose safeguards I bank stipulates for or receives a commission or some other
upon the exercise of those fiduciary powers by national I thing of 'value for procuring for someone else a loan or the
banks, and to have national banks in the exorcise of these I purchase or discount of paper or similar obligation.
powers conform aa fully as is practicable with State .reThe text itself, 'however, is a more accurate statement.
quirements.
of the purpose than any brie! paraphrase.
Section 3 amends the present law hj permitting the
Subsection (d) imposes the conditions under which a
issue of Federal Reserve notes in denominations of §500, member bank may contract for or purchase or sell securities
SI. 000, §5,000. and $10,000, In addition to the denomi- or other property 'where the other party in interest in the
nations now permitted under section 16 of the Federal transaction is a director in such 'bank.
Reserve Act. the largest of which Is only $10(1 The
Subsection (e) prohibits the payment of a greater rate
committee believes that the adoption of such an amend- oi interest to any director, officer, attorney, or employee
ment will tend to increase the gold holdings of the Fed- than to any other depositor.
eral Reserve Banks, particularly in the larger llnancial
Subsection (f) Imposes liability for damages upon direccenters,, Notes of large denominations are constantly tors or officers violating the provisions of this section.
desired, especially by banks. As a result, there are daily
Section 6 amends sections 5208 and 5209 of the Revised
withdrawals of gold certificates from the Federal Reserve Statutes. These are penal, sections relating to the over*
Banks. In practically every instance Federal Reserve certification of cheeks, to embezzlement, abstraction, or
notes of large denominations would serve the purpose as willful 'misapplication of moneys, funds, or credits of nawell as gold certificates. If Federal Reserve notes of these tional banks by officers, directors, agents, or employees
larger denominations are issued.. Federal Reserve Banks can of national banks, and to false entries in books, reports,
pay out such Federal Eeserve Notes and by holding their or statements of national banks, with. Intent to injure or
gold certificates conserve their all-important gold supply. defraud on the part of any officer, director, agent, or emSection 4 amends section 19 of the Federal .Reserve ployee of a national bank. By section 6 of this bill these
Act by permitting the Federal Reserve Board, upon the sections are made applicable to similar acts committed by
affirmative vote of five members, to require national banks officers, directors, agents, or employees of Federal reserve
located in outlying districts oi a. reserve city or in territory banks. There are no provisions in existing law relating
added to such city by an. extension of its corporate charter to such acts committed by officers, directors, agents, or
to maintain only such reserves as are required to be main- employees of Federal reserve banks. The necessity for
tained by country banks; and to require national banks this amendment is therefore apparent.
similarly located in central reserve cities or in territory
similarly added to such cities to maintain only such re- REMOVAL OF BANK DIRECTORS AND OFFICERS
serves as are required to be maintained by country banks
FOR VIOLATION OF BANKING LAWS,
or by banks in reserve cities. The business of such banks
S. 3893.
may be, and very often is. local in its character,, The conditions applying to large banks in reserve and central reand rccnact section fifty-two
serve cities which call for the maintenance of a, greater A BIX/L To amendRevised Statutes of the United hundred and thirty nine.
States,
reserve do not apply to such banks. It is often a disadBe it enacted by the Senate and House of Representatives
vantage, if not a hardship, to require such banks to maintain these larger reserves. The committee feels, therefore, j of the United States of America in Congress assembled,
that the board should have authority to modify the reserve | That section fifty-two hundred and thirty-nine of the Re| vied Statutes of the United States be amended asal-fee-i*requirements of these banks.
Section 5 amends section 22 of the Federal Reserve Act | aebe4-86-&8 to read as follows:
"SEC. 5239., If the directors of any banking association
by reenacting subsections (a) and (b) of the section and by
substituting for the remainder of section 22, subsections shall knowingly violate, or knowingly permit any of the
55543—18
9




420

FEDERAL RESEKTO BUIXETO'.

1MB-.

officers, agents, or servants of the association to violate privileges, and franchises of the association sfefeii may be
any of the provisions of this title, all the rights, privileges, ikefeb-y declared forfeited. Such, violation shall, however,
be determined and adjudged by a proper circuit, district,,
and franchises of the association shall may be thereby or Territorial court of the United States, in a suit brought
declared forfeited. Such, violation shall, however,, be de-for that, purpose by the Comptroller of the Currency,"in
termined and adjudged by a proper circuit, district, or i his own name, before the association shall be declared
Territorial court oil the United States, in a suit brought j dissolved. And in cases of such violation, every director
who participated ID. or
for that purpose by the Comptroller of the Currency, in liable in his personal assented to the same shall be held
and Individual capacity for all
his own name, before the association shall be declared damages which' the association, its shareholders, or any
dissolved. A-nd in cases of such violation, every director j other person shall have sustained in consequence of suck
who participated in or assented to the same shall be held j violation, the Comptroller of the Currency, with the ap«
the Secretary of the Treasury, is "a/ntliorized and
liable in his personal and individual capacity for all dam- '• provaly of M "
p
w & ^' -j to requi the removal of any
o require
emva
&ges which the association, its shareholders, or any other officer or director of an association who km B E E N FOUND BY
person, shall have sustained in consequence of such viola- THE COURT TO HAVE violated any p
y provisi-cn of this actjf
j
4
tion. The Comptroller of the Currency, with the approval
riMH*? to to institute in namefor for the benefit <w
of the Secretary of the Treasury, is authorized and em- aiweeMriMH*? and.and.institute in his his -namethe benefit of theof t
sociation appropriate suit or action against the offending\hec
offii
i
i
i
th
ffd
powered, ia-feis-4iaefe4ieH7 to require the removal of any cers and directors, or any or either of them, either before or after
officer or director of an association who has been found by their removal from office, AND ANY OR ALL OTHET* PERSONS
the court to have violated any provision of this Act, @H B> LEGALLY LJABLE, jhr losses sustained by the association
S &y

f

through the violation of any provision or 'provisions of this
title or of the Federal reserve act. Such suitor action shall bt
r and to institute in his name for the benefit instituted and prosecuted hy the United States district attornx/
of the association appropriate suit or action against the in the United States district court for the district in which the
offending officers and directors, or any or either of them, association is located."
Amend t h e title so ae lo read: *'A bill to amend section

either before or utiei their removal from office, ®.nd any fiffcv-two hundred and thirty-nine of the Revised Statute*

•or all oiler persons legally liable for losses sustained hy t h e of the United States/'

association through, the violation of any provision or provisions of this title or of the Federal Reserve Act,. Such
suit or action shall be instituted and prosecuted by the
United States district attorney in the "United States district court for the district in which the association is
located."
Amend the title so as to read: "A bill to amend section
fifty-two hundred and thirty-nine of the Revised Statutes
of the United. States. n

On this bill the Senate committee reports as
follows.
The Committee on Backing and Currency,, to which was
referred the bill (So 3393) to amend and reenact section
5239, Revised Statutes of the United States, having considered the same, report favorably thereon with, certain
amendments.
Appended hereto is a print, of the bill showing in italic
the changes in existing law proposed by the bill referred
to the committee. Amendments recommended by your
committee are shown in small capi.ta.Is and stricken-through
type.,
IS. 3893, Sixty-ftfih. Compress, &3C(mti sossion.j:
A BJIsh Toamenri. and recnact section fifty-two hnndrod andfcfcirtv-mm?.
Revised Statutes of lae United States.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled. That,

section fifty-two hundred and thirty-Bine of the Revised
Statutes of* the United States be amended ftBd-^eefiaeted
wefts to read as follows:
"SEC. 5239. If the directors of any nations! banking
association shall knowingly violate, or knowingly permit
any of the officers, agents, or servants of the association
to Violate, any of the provisions of this title, all the rights,




The purpose of this a-ct is to permit an action to be
brought against any officer or director 'who shall, have been
found guilty by the court of -violating the provisions of
the banking act, and hold him. personally responsible
for any losses due to his improper official conduct without
necessarily forfeiting the charter. There is Inserted herewith the view of the Comptroller of the Currency in regard
to this measure.
In the comptroller's report a year a.ge 1 said:
''Banks have often sustained large losses as a result of
the willful and persistent disregard" by its directors of the
clear provisions ^ of the national-bank act. These losses,
resulting from violation of the law by directors, fall upon
the stockholders. The directors Who have occasioned
these losses by involving the bank in unlawful, transactions
to facilitate or promote schemes or enterprises in which the
directors may be concerned are found sometimes to be
holders or owners of but a iew shares of the stock of the
bank, the affairs of which they are directing and the funds
of which they frequently have tied up in the promotion of
their own private schemes. Very' often stockholders
never are Informed of the losses the bank has suffered
through these irregular transactions. It is the practice
of some banks to keep their transactions from shareholders,
especially those transactions which have resulted in losses'
Thousands of banks give stockholders, at the close of each
fiscal year, Httle or no information of the sources of the
earnings and the deatils of the disbursements and losses.
"Even when shareholders have knowledge of the losses
Incurred through violations of the law h~y officers or directors of the bank, should they proceed to'bring suit against
the unfaithful directors for the benefit of themselves and
their fellow shareholders, such action might precipitate a
run upon the bank said result in suspension or unnecessary
loss. Experience has shown that'losses occurring from
faults or improprieties of directors sometimes are charged
to "profit and loss" account hy the guilty directors themselves, and the stockholders 'never' are apprised of the

MAY 1, 1918.

FEDERAL

results of the mismun&gemeiii Th.e evil.. effects of the
wrongdoing fall upon the Innocent stockholders and the
•wrongdoers escape?:J
I recommend in the same report that, the 0<.»mpt-?GHev of
the Currency should be empowered—
''with the approval oi the Secretary of the Treasury, to
require the removal of a director ov directors or any officer
of a, bank guiky of the viokiion oi any of 'the more important provisions of the act, and. to direct that suit be brought
is. the name of the bank against s-ich director or directory
after tbey cease to be connected, with the bank. Cor Josserf?
ed by the malfeasance or misfeasance id oftice."

421
to the committee. Amendments reeomm ended by youi
committee are showu in small capitals and stricken*
through type..
A. BILL T<» nfUQiHX and reenact section fjiiy-orio hmndrftOL a^'i 'fc?iy"
s»e'-"(nij Bevised Ste.?.uiGs oifcbi*UBiiod States,

Be it enacted hy the Senate mid House of Representative* of
the United States of America in Congress assembled, That

section City-one hundred and forty-seven of the Revised
Statutes of the United States be amended. a«t4-Fee»ae*efi38-as to read as follows:
iJ
SEc. 5147. That each director,, when appointed or
elected, shall take an oath BEFORE &. NOTARY PUBLIC

% 3894.1

BILL fv» ti,r/»w>.-;i and. rennet section ^ y - o n *
.rt"VfiE., Revised Sio':»i£es cit-lie United - lates.

OR OTHER OFFICER- AUTKORSZED TO ADMINISTER OATH-**
BY TB!E LAWS OF THE UNITED STATES Oil OF THE STAIE
IN WIIICH TF(E DIRECTOR RESIDES OR IK WHICH THE BANE:

is LOCATED, tliat he Anil, so far as the duty devolves on
him. diligently and honestly administer tlievaf£airs of such
association, ®.n(l will not knowingly violate, or willingly
permit to be violated, any of tlie provisions of this title,
section, fifty-one hundred, and forty-seven ot the 'Revised and that lie is the owner in good faith and in his own
Statutes of the United Staxes be amended r ^ r ^ e e ^ e t e d right of the number of shares of stock required by this
title, subscribed by him or standing in his name on the
se-as to read as folio w&:
the same is
*'SEC. 5147., That each director, when, appointed or books of the association, and that security lor not hypothecated or in any way pledged m
any loan OT
elected, shall take an oath before a notary public or other debt. Such oaxh, Bubscribed hy the director making it
officer .autlwrized to administer oauts hy the ia&s of ike United and certified by the officer before 'whom it is taken, shall
States or of the Slate m which the director resides or in whidi be immediately transmitted to the Compfroiler of the
the hank is located, that be wilL so far as the duty devolves Currencys and shall be filed and preserved in Ills office
FOR A PERIOD OF TEN YEARS, AFTEll WHICH ET MAY BE
on hinij diligently and honestly administer the affairs of DESTROYED. If n*v$ director shall fail to qualify and forward
such association, and "will not; knowingly vioiiaie> or fds oath to the"Comptroller- of the Currency within ithi*(%
willingly permit to be violated; a-ay of the provisions of SIXTY days after Ids election* a vacancy sJiidl be immedithis title, and that he Is the owner in good faith and in bis ately declared 'arid the 'party so elected and failing to qualify
shall he mdigihU for "reelection as director for that year."
own right of the number of shares of stock mqxdmd by this
Amend the title so as to read: "A bill to amend section
title, subscribed by Mm or standing in his name on the fifty-one hundred &nd forty-seven of the Revised Statutes
books of the association, and tliat the same is not hy poth.e- of the United States,,"
cated or in. any way pledged as security for any loan or
The purpose of this bill k to prevent banks rising the
•debt. Such oath, subscribed by the director making It name oi directors who never qualify but whose samee ax#
and certified by the officer before whom it is taken, shall used for advertising purposes.
be immediately transmitted to the Comptroller ol the
Currency, and shall be filed and preserved in his office
OYEBBBAFT8,
/?« *i enoded bv the Senate and IIOUM of Represenialivfi&
of the United. Sto'tes of America m Congres? asserrfrfed, That

for a perwd of ten years, •after which it may be destroyed. If

any director shall fail to qualify and forward his oath, to
the Comptroller oi the Currency within tiaipty sixty days I A BILL To regulate t,ho allorranco of overdrafts fay national tanking
after Ms election, a vacancy shall be immediately declared ; associations, arid, to provide penalties for its violation.
and the party so elected and failing to qualify shall be
Be -it zuatied by the Senate and House of Re
ineligible lor reelection, as director for that year.1"'
of the United Stale? of America in Congress aseembled* That
;;;
Amend the title so as to read: A bill to amend section the officers of national banking associations shall preseni
Sifty-one hundred and. forty-sevan of the Revised Statutes In writing &z each, meeting of the board of directors a list
oi the United States.57
of all overdrafts made or allowed since the last meeting
On this bill the Senate eomuilttee reports of the board, which list shall be noted en the minutes oi
the meeting and. filed as a record of the association.
ns follows;
SEC. 2, That national banking associations doing busiYour Committee on Banking &ml Currency, to which ness hi a State, the Jaws of which prohibit overdrafts &D.d
•was referred the bill (8,, 3894} to amend and reenact sec- impose penalties therefor, aluul be subject to the same retion 51.47. Revised Statutes of the United States, having strictions and penalties that are prescribed by such Slate
considered the same, report 'favorably thereon with cer- kws fox State banks Mid trust companies.
S.30. 3. Thai nothing i» this Act shall be co&suvied U:
tain amendments,
Appended hereto is & print; of the bill shoeing in. italic release any associaticu, or the Oiiicers and. directors of any
k iiom ike liabilities impcEfed by section fiftythe changes in existing law proposed by the bill referred




422
two hundred and thirty-nine
the United. States.

1,1918.

FEDERAL R3ESEBVE BULLETIN,

the Revised Statuses of

On. this bill the Senate committee reports as
follows:

CIECULATIKG- NOTES OF RECHARTERED BANKS,
[8. 3809J
4. BILL To repeal the sixth section oi' an Act approved July twelfth,
eighteen hundred and eighty-two, entitled "An Act to enable na*
tiona] banking associations to extend their corporate existence, and
for other purposes."

Your Committee on Banking &nd Currency; to 1 J
7
wag referred the bill (S. 3895} to regulate the allowance of j Be it enacted by the Senate and House of Representatives of
overdrafts by national banking associations, and to pro- j {he United Stales of America in Congress assembled, T h a t the
vide for its violation, having considered the same respect- j sixth section of an Act approved. July twelfth, eighteen
fully report the bill favorably without amendment,
| hundred and eighty-two, entitled "An Act to enable na«
This bill becomes a new part of the national bank act [ tional hanking associations to extend their corporate exmt.id prevents the abuse of overdrafts.
j istence, and for other purposes." which reads as follows:
i "That the circulating notes of any association so extendBONDS OF OFFICERS AND EMPLOYEES OF
j ing the period of its succession which shall have been
issued to it prior to such extension shall be redeemed at
NATIONAL BANKS.
the Treasury of the United States, as provided in section
•\S. 3893=]
three of the Act of June twentieth, eighteen hundred and
A BILL To require cashiers and other officers oi a nationa! banking seventy-four, entitled i An Act fixing the amount of United
association handling Us Kinds to give bond and to prevent its officers States notes, providing for the redistribution of national
and employee* from making erasures on tlio books of the association. bank currency, and for other purposes,1 and such notes
Be U enacted by the Senate and House of Representatives when redeemed shall be forwarded to the Comptroller of
of the United Stales of America in Congress aMemhled, That the Currency, and destroyed as now provided by law:
ail cashiers, assistant cashiers, tellers, and. other officers and at the end of three years from the date of the extension
and employees of national banking associations who handle of the corporate existence of each bank the association BO
or who have the custody or control of the funds ov assets extended shall deposit lawful money with the Treasurer
of such associations, shall be required to execute bond, of the United States sufficient to redeem the remainder of
•with good and sufficient security, in. such, penal sum not the circulation which was outstanding at the date of its
less than $1,000 as the board, of directors shall prescribe, extension, as provided in sections fifty-two hundred and
conditioned on the faithful performance of their respective twenty-two, fifty-two hundred and twenty-four, and fiftyduties and the proper accounting for all funds and assets two hundred and twenty-five of the Revised Statutes;
placed in their hands or coming under their control which and any gain that may arise from the failure to present
belong to or are in the custody of the association..
such circulating notes for redemption shall inure to the
SEC. 2. That no officer or employee shall erase or cause benefit of the United States: and from time to time, as
to be erased or removed; either by acid or abrasion, any such notes are redeemed or lawful money deposited thereentries on the books of an association,. Where entries have for as provided herein, new circulating notes shall be
been erroneously made and it. is desired to correct them issued as provided by this Act, bearing such devices, to
they shall be canceled in. ink in such manner as to Indicate be approved by the Secretary of the Treasury, as shall
me cancellation but leave the ori.giB.aJ entry so that it can make them readily distinguishable from the circulating
be read or deciphered.
notes heretofore issued: Provided, however, That each banking association which shall obtain the benefit of this Act
On this bill, the Senate committee .reports as shall reimburse to the Treasury the cost of preparing the
plate or plates for such new circulating notes as shall be
follows:
issued to it." be and the same is hereby repealed.
The Committee on Banking and Currency, to which
was referred the bill (S. 3898) to require cashiers and
On this bill the Senate committee reports as
other officers of a national banking association handling
follows:
its funds to give bond and to prevent its officers and employees from making erasures on the books of the associaThe Committee OB Banking and Currency, to which
tion, having considered the same, recommend that the was referred the bill (S. 3899) to repeal the sixth section
bill pass without amendment.
of an act approved. July 12, 1882, entitled "An act to
This bill requires cashiers and other officers of national enable national banking associations to extend their corbanking associations to give bond. It also seeks to pre- porate existence, and for other purposes," having convent erasures being made on the books of national banks sidered the same, recommend that the bill pass without
except under safeguards. The necessity for this bill has amendment.
become apparent from the experience of the office of the
This bill permits rechartered banks to use the bank-note
Comptroller of the Currency;
plates of the original bank by repealing a portion of section




MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

6 of the act of July 12, 1882. The enforcement of the
existing law merely has the effect of subjecting the banks
and the Government to needless expense in the matter of
the preparation of bank plates. Because of this law about
$5,500,000 of unissued currency belonging to banks whose
charters were renewed have been destroyed in the two
years ending October 31, 1917.
ENGRAVED

SIGNATURES ON
CURRENCY.
[S. 3900.]

NATIONAL BANK

423

[S. 3900, Sixty-fifth Congress, second session.]
A BILL To amend and reenact section fifty-one hundred and seventy*
two of the Revised Statutes of the United States.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
section fifty-one hundred and seventy-two of the Revised
Statutes of the United States be amended to read as follows:
"SEC. 5172. In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the
direction of the Secretary of the Treasury, cause plates
and dies to be engraved, in the best manner to guard
against counterfeiting and fraudulent alterations, and shall
have printed therefrom, and numbered, such quantity of

A BILL To amend and reenact section fifty-one hundred and seventy- I circulating notes in blank, OR BEARING ENGRAVED SIGtwo of Vne Revised Statutes of the United States.
| NATURES OF OFFICERS AS HEREIN PROVIDED, of the de! nominations of fa, $2, $5, $10, $20, $50, S100, $500, and
,

Be it enacted by the Senate and House of Representatives $1,000, as may be required to supply the associations enj
1
of the United States of America in Congress assembled. Thattitled to receive the same. Such notes shall express upon
section fifty-one hundred and seventy-two of the Revised j their face that they are secured by United States bonds,
deposited with the Treasurer of the United States, by the
Statutes of the United States be amended aa^HPeefiaetec-r I written or engraved signatures of the Treasurer and Regisi to read as follows:
I ter, and by the imprint of the seal of the Treasury; and
"SEC. 5172. In order to furnish suitable notes for circu- shall also express upon their face the promise of the assolation, the Comptroller of the Currency shall, under the ciation receiving the same to pay on demand, attested by
signatures of the president or vice
direction of the Secretary of the Treasury, cause plates and the icritten or engraved and shall bear such devices and
president and cashier;
dies to be engraved, in the best manner to guard against such other statements, and shall be in such form as the Seccounterfeiting and fraudulent alterations, and shall have retary of the Treasury shall, by regulation, direct."
Amend the title so as to read: " A bill to amend section
printed therefrom, and numbered, such quantity of circuhundred and seventy-two of the Revised Statutes
lating notes in blank, or bearing engraved signatures of fifty-oneunited States."
of the
officers as herein provided, of the denominations of §1, S2,
$5. $10, $20, $50, $100, $500. and $1,000, as may be re- This amendment to the national banking law saves
quired to supply the associations entitled to receive the officers of banks the necessity of personally signing their
same. Such notes shall express upon their face that they names to national-bank notes and avoids the expense
are secured by United States bonds, deposited with the incident thereto. The national-bank note in circulation
Treasurer of the United States, by the written or engraved is valid even with no signature, and there is no reason why
signatures of the Treasurer and Register, and by the the signature should not be engraved on the bills.
imprint of the seal of the Treasury; and shall also express
upon their face the promise of the association receiving
BRANCHES OF NATIONAL BANKS.
the same to pay on demand, attested by the written or
engraved signatures of the president or vice president and
[S. 3901.)
cashier; and shall bear such devices and such other
statements, and shall be in such form as the Secretary of A BILL To authorize national banking associations to establish and
maintain branches.
the Treasury shall, by regulation, direct."
Amend the title so as to read: "A bill to amend section
Be it enacted by the Senate and House of Representatives of
fifty-one hundred and seventy-two of the Revised Statutes the United States of America in Congress assembled, That any
of the United States."
national banking association located in any city having a
On this bill the Senate committee reports population of not less than one hundred thousand may, with
the approval of the Comptroller of the Currency, establish
as follows:
and maintain branches in the eovtB^j city7-©*4ewft in
The Committee on Banking and Currency, to which which it is located.
The capital of the parent bank shall be increased with
was referred the bill (S. 3900) to amend and reenact section 5172 of the Revised Statutes oi the United States, the establishment of each branch within the city ej?4ewa
having considered the same, report favorably thereon in which the bank is located in an amount equal to not less
than fifty per centum of the minimum capital which, would
with certain amendments.
Appended hereto is a print of the bill showing in italic be required under then existing law for the organization of
the changes in existing law proposed by the bill referred a national bank in such city ef-£awn; -and fer each branch
to the committee. Amendments recommended by your egfcaklwhod wi&eut the oity-eanfeewn in which-tho-pages*
committee are shown in small capitals and strickenbe- inegeasedrHfr-aii
through type.




424

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

-then reffiKa?e4-J6g-#*e organization of-a PENALTY FOR FALSE STATEMENTS IN OBTAINING
branch-is
LOANS.
: Provided, however, That in no case shall a
national hanking association establish or maintain more
[S. 3902.1
than twleve branches under the provisions of this Act-;

A BILL To provide a penalty for obtaining loans or credit from a national
banking association based on false statements.

On this bill the Senate committee reports as
follows:
The Committee on Banking and Currency, to which
was referred the bill (S. 3901) to authorize national banking associations to establish and maintain branches, having considered the same, report it with certain amendments, and as amended recommend that it pass.
Appended hereto is a print of the bill showing the
committee amendments in italics and stricken-through
type.
[S. 3901, 65th Cong., 2d sess.]
A BILL To authorize national banking associations to establish and
maintain branches.

Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That
any person, firm, or corporation applying for or obtaining
a loan or credit from a national banking association on a
false statement, willfully made, of the financial condition
of the borrower with intent to injure or defraud such
association, shall be guilty of a misdemeanor, and upon
conviction thereof shall be fined not exceeding $5,000, or
imprisoned not more than five years, or by both fine and
imprisonment, as the court may direct. Any previous
trial by a State court for defrauding an association by a false
statement, willfully made, shall operate as a bar to indictment under this provision.

On this bill the Senate committee reports as
follows:

Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That The Committee on Banking and Currency, to which was
any national banking association located in any city having referred the bill (S. 3902) to provide a penalty for obtaining
a population of not less than one hundred thousand may, with
the approval of the Comptroller of the Currency, establish loans or credit from a national banking association based
and maintain branches in the ee*m#fr city e£46WR in on false statements, having considered the same, recomwhich it is located.
mend its passage with an amendment.
The capital of the parent bank shall be increased with
Appended hereto is a print of the bill showing in italic
the establishment of each branch within the city eHews the amendment recommended by your committee.
in which the bank is located in an amount equal to not
less than fifty per centum of the minimum capital which
[S. 3902, Sixty-fifth Congress, second session.]
would be required under then existing law for the organization of a national bank in such city or town; a&4jeg
;
A BILL To provide a penalty for obtaining loans or credit from a national
each branch eetakM8ke4^4fe&H4#teei£y6^
y
banking association based on false statements.
parent ba&k is located,, but within tho game -ooanty-,
i^l of auch pageBfr-baak- shall-be increased in
f
h
frbk
hllb i d
i
Be it enacted by the Senate and House of Representatives
amount equal t
lt
t h in tho 4 f e i d 4 4 h i
of a national baak ^ ^ t place-where tho-proposed of the United States of America in Congress assembled, That
any
h i ? t b lleeateeh P i d d h hovjever, That in no case person, firm, or corporation applying for or obtaining
to be t e h Provided,^
Tht i
shall a national banking association establish or maintain a loan or credit from a national banking association on a
more than twelve branches under the provisions of this false statement, willfully made, of the financial condition
&ct i-And-grovidcdrfurther, Tha^-Re-bmaeh shaiHr-ke-esfeark- of the borrower with intent to injure or defraud such
.
.. wilihettt the Federal-reserve association, shall be guilty of a misdemeanor, and upon
. ... .
^acrai reserve
conviction thereof shall be fined not exceeding $5,000, or
district m-wfeieh4he-pa¥eBt-%aink ia looatoehimprisoned not more than five years, or by both fine and
This bill authorizes national banks in cities having not ! imprisonment, as the court may direct. Any previous
less than 100,000 inhabitants to maintain branches in such | trial by a State court for defrauding an association by a false
willfully made, shall operate as a bar to indictment
city and requires the parent bank to increase its capital statement, provision.
under this
correspondingly with such branches at not less than 50
per cent of the minimum capital which would be required
This bill provides a penalty for obtaining loans or credit
under existing law for the organisation of an independent from a national banking association based on false statenational bank in such city, and limits the number of ments. The banks are entitled to this Federal protection.
branches to 12.
Your committee recommends an amendment that any
This provision is intended to put the national banks on previous trial by a State court for this offense shall
a par with the State banks in certain States where State operate as a bar to further indictment under this provibanks are permitted to have branches.
sion.




MAY

i, 1918.

425

FEDERAL, RESERVE BULLETIN.

"First. Such as shall be necessary for its immediate
accommodation in the transaction of its business.
"Second. Such as shall be mortgaged to it in good faith
by way of security for debts previously contracted.
[S. 3903.]
"Third. Such as shall be conveyed to it in satisfaction
A BILL To amend and roenact section fifty-one hundred and thirty- of debts previously contracted in" the course of its dealings.
soven. Revised Statutes of the United States.
"Fourth. Such as it shall purchase at sales under
Be it enacted by the Senate and House of Representatives judgments, decrees, or mortgages held by the association,
or
of the United States of America in Congress assembled, That shall purchase to secure debts due to it.
"But
hold the possession of
section fifty-one hundred and thirty-seven of the Revised any real no such association shall the title and possession
estate under mortgage, or
Statutes of the United States be amended a&dHeeeHae-ted of any real estate purchased to secure any debts due to it,
se-aa to read, as follows:
for longer period than five years; nor shall any such asso^ ^ k ^ r i l ^ S ^ i M k
"SEC. 5137. A national banking association may pur- ciation invest
REAL ESTATE for its
in
chase, hold, and convey real estate for the following pur- IN business INCLUDING accommodation OE,the transaction of
its
ALL BUILDINGS
IMPROVEMENTS
poses, and for no others:
THEREON, an amount in excess of its paid-in and unimpaired
"First. Such as shall be necessary for its immediate capital stochy
Amend the title so as to read: "A bill to amend section
accommodation in the transaction of its business.
" Second. Such as shall be mortgaged to it in good faith fifty-one hundred and thirty-seven of the Revised Statutes of the United States."
by way of security for debts previously contracted.
This bill proposes to prohibit a national bank from in"Third. Such as shall be conveyed to it in satisfaction
vesting in real estate for its own accommodation in the
of debts previously contracted in the course of its dealings.
"Fourth. Such as it shall purchase at sales under judg- transaction of its business, including all buildings or
ments, decrees, or mortgages held by the association, or improvements thereon, an amount in excess of its paid-in
and unimpaired capital stock.
shall purchase to secure debts due to it.
A number of banks have been seriously embarrassed by
"But no such association shall hold the possession of
any real estate under mortgage, or the title and possession false pride in building ostentatious banking houses when
of any real estate purchased to secure any debts due to it, their capital did not justify such an expenditure.
The Comptroller of the Currency advises that the expefor a longer period than five years; nor shall any such assorience of his office demonstrates the importance of the
ciation investo^^7-ia-a4>aak -building
passage of this measure.
in real estate for its accommodation in the transaction of its
business, including all buildings or improvements thereon, SALE OF BONDS TO REDEEM CIRCULATION OF A
an amount in excess of its paid-in and unimpaired capital
BANK IN VOLUNTARY LIQUIDATION.
stock."
PURCHASE OF REAL ESTATE BY A .NATIONAL
BANK FOR TRANSACTION OF ITS BUSINESS,

[S. 3904.]

On this bill the Senate committee reports as
follows:
The Committee on Banking and Currency, to which was
referred the bill (S. 3903) to amend and reenact section
5137, Revised Statutes of the United States, having considered the same reports favorably thereon with, certain
amendments.
Appended hereto is a print of the bill showing in italic
the changes in existing law proposed by the bill referred
to the committee. Amendments recommended by your
committee are shown in small capitals and strickenthrough type.

A BILL to amend and reenact sectionsfifty-twohundred and twentytwo and fifty-two hundred and thirty, Revised Statutes of the
United States.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
sections fifty-two hundred and twenty-two and fifty-two
hundred and thirty of the Revised Statutes of the United
States be amended a»dH?eeHtaete4-se-fts to read as follows:
"SEC. 5222. Within thirty days from the date of the vote
to go into liquidation, the association shall deposit with
the Treasurer of the United States lawful money of the
United States sufficient to redeem all its outstanding circulation. The Treasurer shall execute duplicate receipts
[S. 3903, Sixty-fifth Congress, second session.]
for the money thus deposited and deliver one to the assoA BILL To amend and reenact section fifty-one hundred and thirty- ciation and the other to the Comptroller of the Currency,
seven, Revised Statutes of the United States.
stating the amount received by him and the purpose for
Be it enacted by the Senate and House of Representatives of which it has been received, and the money shall be paid
the United States of America in Congress assembled, That into the Treasury of the United States and placed to the
section fifty-one hundred and thirty-seven of the Revised credit of such association upon redemption account.
Statutes of the United States be amended afidn?ee=ftae*e4
"SEC. 5230. Whenever the comptroller has become
se-as to read as follows:
satisfied, by the protest or the waiver and admission
"SEC. 5137. A national banking association may purchase, hold, and convey real estate for the following pur- specified in section fifty-two hundred and twenty-six or
by the report provided for in section fifty-two hundred
poses, and for no others:




426

PEDBEAL EESEEVE BULLETIN".

MAY 1,1918.

and twenty-seven or by a declaration of insolvency, that
any association has refused or is unable to pay its circulating notes or when any association in voluntary liquidation has failed to deposit lawful money with the Treasurer of the United States sufficient to redeem its outstanding circulation as provided by section fifty-two hundred
and twenty-two of the Revised Statutes of the United
States, he may, instead of canceling its bonds, cause so
much of them as may be necessary to redeem its outstanding notes to be sold at public auction in the city of
New York, after giving thirty days' notice of such sale to
the association. For any deficiency in the proceeds of
all the bonds of an association when thus sold to reimburse to the United States the amount expended in paying the circulating notes of the association of the United
States shall have a paramount lien upon all its assets; and
such deficiency shall be made good out of such, assets in
preference to any and all other claims whatsoever, except
the necessary costs and expenses of administering the
same."
Amend the title so as to read: "A bill to amend sections
fifty-two hundred and twenty-two and fifty-two hundred
and thirty of the Revised Statutes of the United States."

| association has refused or is unable to pay its circulating
j notes or when any association in voluntary liquidation has
I failed to deposit lawful money with the Treasurer of the United
• States sufficient to redeem its outstanding circulation as pro| vided by section fifty-two hundred and twenty-two of the
j Revised Statutes of the United States, he may, instead of
I canceling its bonds, cause so much of them as may be
I necessary to redeem its outstanding notes to be sold at
; public auction in the city of New York, after giving thirty
!
days' notice of such sale to the association. For any defi!
cie'ney in the proceeds of all the bonds of an association
| when thus sold to reimburse to the United States the
j amount expended in paying the circulating notes of the
| association the United States shall have a paramount lien
upon all its assets; and such deficiency shall be made good
out of such assets in preference to any and all other claims
whatsoever, except the necessary costs and expenses of
administering the same."
Amend the title so as to read: "A bill to amend sections
fifty-two hundred and twenty-two and fifty-two hundred
and thirty of the Revised Statutes of the United States."
| This bill authorizes the Treasurer of the United States to
| sell bonds securing circulation 30 days after a bank has
entered into liquidation. There is no provision of law by
which a bank in liquidation can be forced to maintain its
5 per cent redemption fund, and, as the Treasurer is required by law to redeem the bank notes as presented, it is
On this bill the Senate committee reports as obvious that the Treasurer should be allowed to sell the
bonds securing its circulation at any time after the expirafollows:
tion of 30 days from the time the bank has gone into volunThe Committee on Banking and Currency, to which was tary liquidation where the bank fails to deposit sufficient
referred the bill (S. 3904) to amend and reenact sections funds to redeem its outstanding circulation.
5222 and 5230. Revised Statutes of the United States,
having considered the same, report favorably thereon with AMENDMENT TO SECTION 5209, REVISED STATan amendment in the enacting clause.
UTES, RELATING TO EMBEZZLEMENT, FALSE
Appended hereto is a print of the bill showing in italic
ENTRIES, ETC.
and stricken-through type the changes proposed to the
[S. 3905.]
existing law.
A 73 ILL To amend and reenaet section fifty-two hundred and nine of
[S. 3904, Sixty-ufth Congress, second session.]

A BILL To amend and reenaet sectionsfifty-twohundred and twentytwo and fifty-two hundred and thirty, Revised Statutes of the United
States.

the Revised Statutes of the United States.

Be it enacted by the Senate and Rouse of Representatives of
the United States of America in Congress assembled, That
l section fifty-two hundred and nine of the Rerised Statutes
Be it enacted by the Senate and Rouse of Representatives of
|
the United States of America in Congress assembled, That of the United States be amended aa4-fee^a;eted- so-as to
sections fifty-two hundred and twenty-two and fifty- i read as follows:
:>
two hundred and thirty of the Revised Statutes of the
'SEG. 5209. Every president, vice president, director,
United States be amended aft€fc-a?eeHaefee4-s©-ae to read as cashier, teller, clerk, e¥ agent, or other employee of any
follows:
"SEC. 5222. Within sis B&ea4ke thirty days from the date association, who embezzles, abstracts, or willfully misof the vote to go into liquidation, the association shall applies any of the moneys, funds, or credits of the associadeposit with the Treasurer of the United States lawful tion, or who, without authority from the directors, issues
money of the United States sufficient to redeem all its or puts in circulation any of the notes of the association;
outstanding circulation. The Treasurer shall ^ execute
duplicate receipts for the money thus deposited and or who, without such authority, issues or puts forth any
deliver one to the association and the other to the Comp- certificate of deposit, draws any order or bill of exchange,
troller of the Currency, stating the amount received by makes any acceptance, assigns any note, bond, draft, bill
him and the purpose for which it has been received, and of exchange, mortgage, judgment, or decree; or who makes
the money shall be paid into the Treasury of the United any false entry in any book, report, or statement of the
States anil placed to the credit of such association upon
association, with intent, in either case, to injure or defraud
redemption account.
"SEC. 5230. Whenever the Comptroller has become the association or any other company, body politic or corsatisfied by the protest or the waiver and admission speci- porate, or any individual person, or to deceive any officer
fied in section fifty-two hundred and twenty-six or by the of the association, or any agent appointed to examine the
report provided for in section fifty-two hundred" and
twenty-seven or by a declaration of insolvency, that any affairs of any such association; and every receiver of an




MAY 1,1918.

427

FEDERAL RESERVE BULLETIN.

association who with like intent to defraud or injure,
embezzles, abstracts, purloins, or willfully misapplies any
of the moneys, funds, or assets of his trust; and every
person who with like intent aids or abets any officer, receiver, clerk, er agent, or other employee in any violation
of this section shall be deemed guilty of a misdemeanor,
and shall be imprisoned not less than five ycaro nor more
than ten years."
Amend the title so as to read: "A bill to amend section
fifty-two hundred and nine of the Revised Statutes of the
United States."

USURIOUS RATES OF INTEREST.
[S.3910.]
A BILL To prevent usury, provide penalties for its violation, and for
other purposes.

Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled, That
any national banking association which shall hereafter
charge, receive, reserve, or collect a rate of interest,
directly or indirectly, in any transaction, in excess of the
rate authorized and allowed by section fifty-one hundred
and ninety-seven of the Revised Statutes of the United
On this bill the Senate committee reports as States, shall, in addition to the penalties and forfeitures
follows:
prescribed in section fifty-one hundred and ninety-eight
The Committee on Banking and Currency, to which was of the Revised Statutes of the United States, be liable to
referred the bill (S. 3905) to amend and reenact section the United States in damages in a sum equal to the amount
5209 of the Revised Statutes of the United States, having on which such illegal rate of interest was taken, received,
considered the same, recommend that it pass with amend- reserved, or charged, and all interest paid or charged
thereon: Provided. That in no case shall such penalty be
ments.
Appended hereto is a print of the bill showing in italic less than $250, irrespective of the amount of the principal
the changes in existing law proposed by the bill referred and interest involved: Provided further, That a charge not
to the committee. Amendments recommended by the to exceed 3& 50 cents may be reserved or taken by a
committee are shown by stricken-through type and small national bank in any such, transaction, under such conditions and regulations as may be prescribed by the Compcapitals.
troller of the Currency, without incurring the penalties of
[S. 3905, Sixty-fifth Congress, second session.]
A BILL To amend and reenact section fifty-two hundred and nine of this Act.
the Revised Statutes of the United States.
SEC. 2. That every national banking association organBe it enacted by the Senate and House of Representatives ofized under the laws of the United States shall keep a
the United States of America in Congress assembled, Thatschedule in such form and under such rules and regulasection fifty-two hundred and nine of the Revised Statutes
of the United States be amended androenactcd- so as to tions as the Comptroller of the Currency may prescribe,,
showing the rate and amount of interest taken, received,
read as follows.
"SEC. 5209. Every president, vice president, director, reserved, or charged on any loan or discount, or on any
cashier, teller, clerk, &F agent or other employee of any as-note, bill of exchange, or other evidences of debt, in pursociation, who embezzles, abstracts, or willfully misapplies any of the moneys, funds, or credits of the association, suance of section fifty-one hundred and ninety-seven of
or who, without authority from the directors, issues or puts the Revised Statutes of the United States.
in circulation any of the notes of the association; or who,
(b) It shall be the duty of every national-bank examwithout such authority, issues or puts forth any certificate iner to report in detail to the Comptroller of the Currency
of deposit, draws any order or bill of exchange, makes any
acceptance, assigns any note, bond, draft, bill of exchange, each and every instance disclosed by such schedule, or
mortgage, judgment, or decree; or who makes any false otherwise, wherein any national banking association has
entry in any book, report, or statement of the association, taken, received, reserved, or charged, directly or inwith intent, in either case, to injure or defraud the asso- directly, in any transaction a rate of interest in excess of
ciation or any other company, body politic or corporate,
or any individual person, or to deceive any officer of the the rate authorized and allowed by section fifty-one
association, or any agent appointed to examine the affairs hundred and ninety-seven of the Revised Statutes of the
of any such association; and every receiver of an association
United States and of this Act.
who with like intent to defraud or injure, embezzles, abstracts, (c) It shall be the duty of the Comptroller of the Curpurloins, or •willfully misapplies any of the moneys, funds,i
or assets of Ms trust; and every person who with like intent rency to submit a report to the Attorney General of the
aids or abets any officer, receiver, clerk, e* agent OR OTHETC United States quarterly, and oftener if deemed necessary,
EMPLOYEE in any violation of this section shall be deemed showing in detail all the instances, if any, which have not
guilty of a misdemeanor, and shall be imprioned not less
been previously reported wherein any national banking
than five years nor more than ten YEARS."
Amend the title to read: "A bill to amend section fifty- association shall have taken, received, reserved, or
two hundred and nine of the Revised Statutes of the charged, directly or indirectly, a rate of interest in excess
United States."
of the rate authorized and allowed by law.
This bill as amended makes subject to the law a vice
(d) The Attorney General of the United States shall
president or other employee who embezzles the funds of have the power and it shall be his duty to institute or cause
the institution, also every receiver. The reason for this to be instituted, through the United States district court
is obvious. These cases roust have been inadvertently for tho judicial district in which such offending bank is
situated 8g4eeatee-9r oth-eawisey an action at law in the
omitted in the existing law.




428

FEDEEAL RESERVE BULLETIN.

MAY 1,1918,

name and in behalf of the United States against any ! taken, received, reserved, or charged, directly or inoffending national bank for the recovery of a sum equal \ directly, in any transaction a rate of interest in excess of
! the rate authorized and allowed by section fifty-one hunto the amount on which the illegal rate of interest was I dred and ninety-seven of the "Revised Statutes of the
taken, received, reserved, or charged, including in addi- i United States and of this act.
tion thereto an amount equal to the interest paid or I (c) It shall be the duty of the Comptroller of the Currency
charged: Provided, That in no case shall the amount for | to submit a report to the Attorney General of the United
States quarterly,
if deemed necessary, showing
which such action is brought be less than $250, and no i in detail all the and oftener if any, which 'have not been
|
instances,
recovery shall be for a sum less than that amount.
i previously reported wherein any national banking asso1
SEC. 3. That the Comptroller of the Currency, with the ciation shall have taken, received, reserved, or charged.
approval of the Secretary of the Treasury, shall have directly or indirectly, a rate of interest in excess of the
rate authorized and allowed by law.
power to make suitable regulations to carry the provisions
(d) The Attorney General of the United States shall
of this Act into effect.
| have the power and it shall be his duty to institute or cause
SEC. 4, That all Acts or parts of Acts in conflict here- to be instituted, through the United States district court
for the judicial district in which such offending bank is
with are hereby repealed.
situated e¥4©eate4-e?-e&ke¥wiee7 an action at law in the
in^ behalf of the United States
any
On this bill the Senate committee reports as name andnational bank for the recovery of aagainstequal
offending
sum
follows:
to the amount on which the legal rate of interest was
taken, received, reserved, or charged, including in addiThe Committee on Banking and Currency, to which was tion thereto an amount equal to the interest paid or
referred the bill (S. 3910) to prevent usury, provide pen- charged: Provided, That in no case shall the amount for
which such action is brought be less than $250, and no
alties for its violation, and for other purposes, having con- recovery shall be for a sum less than that amount.
sidered the same, report thereon with the recommendation
SEC. 3. That the Comptroller of the Currency, with the
that the bill do pass with certain amendments.
approval of the Secretary of the Treasury, shall have
Appended hereto is a print of the bill showingan italic i power to make suitable regulations to carry the provisions
and stricken-through type the amendments recommended j of this act into effect.
! SEC. 4. That all acts or parts of acts in conflict herewith
by your committee.
are hereby repealed.
[S. 3910, Sixty-fifth Congress^secondjisession.]
This bill is intended to further prevent usury and provides for its violation a penalty adequate to the wrong.
A BILLyTo prevent usury, provide penalties for its violation, and for
It permits a service charge of 50 cents for clerical work in
other purposes.
cases involving amall amounts.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That any The bill further provides for the keeping of a schedule
national banking association which shall hereafter charge, so that usury may be disclosed and reported. It provides
receive, reserve, or collect a rate of interest, directly or also a method for submitting to the Attorney General
indirectly, in any transaction, in excess of the rate author- cases of usury for proper action by that department.
ized and allowed by section fifty-one hundred and ninetyseven of the "Revised Statutes of the United States, shall, AUTHORIZING NATIONAL BANKS TO SUBSCRIBE
in addition to the penalties and forfeitures prescribed in
section fifty-one hundred and ninety-eight of the "Revised
TO RED CROSS.
Statutes of the United States, be liable to the United
fS.3911.]
States in damages in a sum equal to the amount on which
such illegal rate of interest was taken, received, reserved^
A BILL Authorizing national banks to subscribe to the, American
or charged, and all interest paid or charged thereon:
National Red Cross.
Provided, That in no case shall such penalty'be less than
$250, irrespective of the amount of the principal and interBe it enacted by the Senate and House of Representatives of
est involved: Provided further, That a charge not to
exceed S5 50 cents may be reserved or taken by a national the United Stales of America in Congress assembled, That
bank in any such transaction, under such conditions and during the continuance of the state of war now existing it
regulations as may be prescribed by the Comptroller of shall be lav^ful for any national banking association to conthe Currency, without incurring the penalties of this act.
SEC. 2. That every national banking association or- tribute to the American National Bed Cross, out of any
ganized under the laws of the United States shall keep a net profits otherwise available under the law for the
schedule in such form and under such rules and regula- declaration of dividends, such sum or sums as the directors
tions as the Comptroller of the Currency may prescribe, of said association shall deem expedient. Each associashowing the rate and amount of interest taken, received,
reserved, or charged on any loan or discount; or on any tion shall report to the Comptroller of the Currency within
note, bill of exchange, or' other evidences of debt, in ten days after the making of any such contribution the
pursuance of section fifty-one hundred and ninety-seven amount of such contribution and the amount of net earnof the Kevised Statutes of the United States.
ings in excess of such contribution. Such report shall be
(b) It shall be the duty of every national-bank examiner attested by the president or cashier of the association in
to report in detail to the Comptroller of the Currency each
and every instance disclosed by such schedule, or other- like manner as the report of the declaration of any
wise, wherein any national banking association has dividend.




MAT 1,1918.

FEDEBAL KBSEBVE BULLETIN.

429

SEC. 2. That all sums so contributed shall be utilized tate of the bank have been paid or satisfied, shall be used
by the American National Red Cross in furnishing volun- to reimburse the Treasury for advances made as provided
teer aid to the sick and wounded of the combatant armies, in said section fifty-two hundred and thirty-five as herein
the voluntary relief of the Army and Navy of the United amended, and the balance, if any, shall be paid over to
States, and the relief and mitigation of the suffering caused the shareholders of such shares, or their legal representaby the war to the people of the United States and their tives, in proportion to the stock by them, respectivelyy
allied nations.
held. In order to indemnify the United States against
[Passed the Senate April 6.]
loss on account of advances made as herein provided and
to provide funds for the purpose of making such advances,
GUARANTY FUND FOR BANK DEPOSITS.
there shall be levied and collected yearly from each
national bank a tax not in excess of one-tenth of one per
[S. 4426.)
centum of the aggregate of all deposits averaging $5,000
A BILL To amend and reenact section fifty-two hundred and thirtyfive and fifty-two hundred and thirty-six of the Revised Statutes of or less, and a tax not in excess of one-tenth of one per
the United States by providing for a guaranty fund for payment of centum on $5,000 of the aggregate of each of the other decertain deposits, and for other purposes.
posits averaging more than $5,000.
Be it enacted by the Senate and House of Representatives of "No deposit bearing over four per centum interest per
the United States of America in Congress assembled, That annum shall be the beneficiary of this Act."
section fifty-two hundred and thirty-five and fifty-two
On this bill the Senate committee reports as
hundred and thirty-six of the Revised Statutes of the
United States be, and they are hereby, amended and re- follows:
enacted to read as follows:
The Committee on Banking and Currency favorably
"SEC. 5235. That the comptroller shall, upon appoint- reports S. 4426, providing for the liquidation of banks
ing a receiver, cause [notice to [be given, by advertisement passing into the hands of a receiver, and providing for a
in such newspapers as he may direct, for three consecutive guaranty fund to meet the payment of deposits of $5,000
months, calling on all persons who may have claims against or less, and providing a means of raising the guaranty
such association to present the same and to make legal fund by tax, not to exceed one-tenth of 1 per cent of the
proof thereof. At the expiration of thirty days after such deposits averaging $5,000 or less.
notice has been first published the comptroller shall pay
This bill is recommended by the Comptroller of the
in full the claim of each depositor which has been proven Currency and its purpose is to attract into the banks of
to his satisfaction, or which has been adjudicated in a court the United States the funds of citizens who now do not
of competent jurisdiction and which does not exceed the have any bank accounts and who keep their money in
sum of $5,000, and shall pay the sum of 35,000 to each de- hoarding. It is estimated that there is a very large
positor whose claim has been established as herein pro- amount of currency in hiding by persons who do not deal
vided and which is in excess of that amount. Such pay- with the banks at all, and that these funds if attracted to
ments shall be made by the comptroller out of moneys the banks of the country will add to the volume of the
deposited to his credit by the receiver and by the Secretary banking power of the United States in a very substantial
of the Treasury as hereinafter provided. The Secretary way, and that the largest banks will be beneficiaries quite
of the Treasury shall advance to the comptroller, out of as much as the smaller banks, for the reason that the
funds in the Treasury not otherwise appropriated, such system of reeleposits is carried on throughout the United
sum or sums as may be necessary to enable him to make the States.
payments herein provided for.
This bill will have the effect of stabilizing the banking
"SEC. 5236. From time to time, after full provision has system of the United States and will make it impossible
been first made for refunding to the United States any de- for a bank to have a run of frightened depositors, because
ficiency in redeeming the notes of such association, the no citizen will make a run on a bank when he knows
comptroller shall make a ratable dividend of the money there is an adequate guaranty fund to safeguard his deposit.
paid over to him by such receiver on all such claims as It is believed by the Comptroller of the Currency that
may have been proved to his satisfaction or adjudicated in one-fortieth part of 1 per cent will be abundantly suffia court of competent jurisdiction, which have not been cient to provide a guaranty fund adequate to the needs
paid in full as provided in section fifty-two hundred and of the banking system, and that this small tax will be
thirty-five of the Revised Statutes as herein amended, and much more than compensated by the volume of additional
as the proceeds of the assets of such association are paid deposits attracted to the bank.
over to him he shall make further dividends on all unpaid
Then, in addition to the foregoing, the folclaims previously proved or adjudicated, and the remainlowing bill was reported by the House Banking
der of the proceeds, if any, after all claims against the es-




430

FEDERAL RESERVE BULLETIN",

MAY 1,1918,

and Currency Committee and passed by the the shares so paid shall be surrendered and after due
notice sold at public auction within thirty days after the
House on April 3.

final appraisement provided for in this Act.
SEC. 2. That associations consolidating with another asCONSOLIDATION OF NATIONAL BANKING
sociation under the provisions of this Act shall not be
ASSOCIATIONS.
required to deposit lawful money for their outstanding
circulation, but their assets and liabilities shall be re[IT. R. 10205.]
AN ACT To provide for the consolidation of national banking asso- ported by the association with which they have consolidated. And all the rights, franchises, and interests of the
ciations.
said national bank so consolidated in and to every species
Be it enacted by the Senate and House of Representatives
of property, real, personal, and mixetl, and choses in action
of the United States of America in Congress assembled, That
thereto belonging, shall be deemed to be transferred to
any two or more national banking associations located
| and vested in such national bank into which it is conwithin the same county, city, town, or village may, with
| solidated without any deed or other transfer, and the said
the approval of the Comptroller of the Currency, consoli| consolidated national bank shall hold and enjoy the same
date into one association under the charter of either of the
| and all rights of property, franchises, and interests in the
existing banks, on such terms and conditions as may be
same manner and to the same extent as was held and
lawfully agreed upon by a majority of the board of direcenjoyed by the national bank so consolidated therewith.
tors of each association proposing to consolidate, and be
ratified and confirmed by the affirmative vote of the
This bill, on April 8, was reported by the
shareholders of each such association owning at least two- Senate committee as follows:
thirds of its capital stock outstanding, at a meeting to be |
held on the call of the directors after publishing notice of ! The Committee on Banking and Currency, to which was
the time, place, and object of [the meeting for four con- I referred the bill (H. V,. 10205) to provide for the consolisecutive weeks in some newspaper published in the place dation of national banking associations, having considered
where the said association is located, and if no newspaper the same, report favorably thereon with amendments as
is published in the place, then in a pape* newspaper pub- follows:
On page 1, line 8, after the word "either" insert the
lished nearest thereto, and after sending such notice to
each shareholder of record by registered mail at least ten words "of the".
On page 2, line 1. strike out the word "paper" and indays prior to said meeting and after posting such notice in
at least three public places in the town: Provided, That the sert in lieu thereof the word "newspaper".
On page 2, line 4, after the word "meeting" and before
capital stock of such consolidated association shall not be
less than that required under existing law for the organi- the colon insert the following: "and after posting such
zation of a national bank in the place in which it is located: notice in at least three public places in the town''.
On page 2, lines 10 and 11, strike out the words "who
And provided further, That when such consolidation shall
have been effected and approved by the comptroller any has not voted for such consolidation''.
Appended hereto is a print of the bill showing in italic
shareholder of either of the associations so consolidated
who-has-not voted for such-consolidation may give notice to and stricken-through type the amendments recommended
the directors of the association in which he is interested by your committee.
within twenty days from the date of the certificate of ap[H. R. 10205, Sixty-fifth Congress, second session.]
proval of the comptroller that he dissents from the plan of
AN ACT To provide for the consolidation of national banking
consolidation as adopted and approved, whereupon he shall
associations.
be entitled to receive the value of the shares so held by
Be it enacted by the Senate and House of Representatives of
him, to be ascertained by an appraisal made by a committee the United States of America in Congress assembled, That any
of three persons, one to be selected by the shareholder, two or more national banking associations located within
one by the directors, and the third by the two so chosen; the same county, city, town, or village may, with the
and in case the value so fixed shall not be satisfactory to approval of the Comptroller of the Currency, consolidate
into one association under the charter of either of the
the shareholder he may within five days after being noti- existing banks, on such terms and conditions as may be
fied of the appraisal appeal to the Comptroller of the Cur- lawfully agreed upon by a majority of the board of directors
rency, who shall cause a reappraisal to be made, which of each association proposing to consolidate and be ratified
shall be final and binding; and if said reappraisal shall and confirmed by the affirmative vote of the shareholders
of each such association owning at least two-thirds of its
exceed the value fixed by said committee, the bank shall capital stock outstanding, at a meeting to be held on the
pay the expenses of the reappraisal; otherwise the appel- call of the directors after publishing notice of the time,
lant shall pay said expenses, and the value so ascertained place, and object of the meeting for four consecutive weeks
and determined shall be deemed to be a debt due and be in some newspaper published in the place where the said
and if
forthwith paid to said shareholder from said bank, and association is located, paper no newspaper is published in
the place, then in a
newspaper published nearest




MAY 1,1918.

FEDEEAL RESERVE BULLETIN.

thereto, and after sending such notice to each shareholder
of record by registered mail at least ten days prior to said

431

Revised Statutes of the United States, as amended, having
considered the same, report thereon with the recommendameeting and after posting such notice in at least three public
places in the town: Provided, That the capital stock of such tion that the bill do pass with an amendment in the nature
consolidated association shall not be less than that required of a substitute.
under existing law for the organization of a national bank
Appended hereto is a print of the bill as passed by the
in the place in which it is located: And provided further, House of Representatives, showing in italic and strickenThat when such consolidation shall have been effected
and approved by the comptroller any shareholder of either | through type the changes proposed by the House to existof the associations so consolidated who- hao not voted for | ing law.
ouch oongo&dation may give notice to the directors of the
[H. R. 10691, Sixty-fifth Congress, second session.]
association in v\Thich he is interested within twenty days
AN ACT To amend section fifty-two hundred of the Revised Statutes,
from the date of the certificate of approval of the compas amended.
troller that he dissents from the plan of consolidation as
adopted and approved, whereupon he shall be entitled
Be it enacted by the Senate and House of Representatives of
to receive the value of the shares so held by him, to be
ascertained by an appraisal made by a committee of three the United Skites of America in Congress assembled, That
persons, one to be selected by the shareholder, one by the section fifty-two hundred of the Revised Statutes, as
directors, and the third by the two so chosen; and in case amended, be, and the same is hereby, amended to read
the value so fixed shall not be satisfactory to the share- as follows:
holder he may within five days after being" notified of the
•'SEC. 5200. The total liabilities to any association, of
appraisal appeal to the Comptroller of the Currency, who
shall cause a reappraisal to be made, which shall be final any person, or of any company, corporation, or firm for
and binding; and if said reappraisal shall exceed the value money borrowed, including in the liabilities of a company
fixed by said committee, the bank shall pay the expenses or firm the liabilities of the several members thereof, shall
of the reappraisal; otherwise the appellant shall pay said
expenses, and the value so ascertained and determined at no time exceed one-tenth part of the amount of the
shall be deemed to be a debt due and be forthwith paid to capital stock of such associations, actually paid in and
said shareholder from said bank, and the shares sopaid shall unimpaired and one-tenth part of its unimpaired surplus
be surrendered and after due notice sold at public auction fund: Provided, however, That the total of such liabilities
within thirty days after the final appraisement provided
ohall in no ovont -oxeood thirty per oontum of tho capital
for in this Act.
That (1) the discount of bills
SEC. 2. That associations consolidating with another atock of the association-.
association under the provisions of this act shall not be of exchange drawn in good faith against actually existing
required to deposit lawful money for their outstanding values, (2) aft4 the discount of commercial or business
circulation, but their assets and liabilities shall be re- paper actually owned by the person negotiating the same,
ported by the association with which they have consoli- and (3) the purchase or discount of any note or notes secured
dated. And all the rights, franchises, and interests of the
said national bank so consolidated in and to every species by not less than a like face amount of bonds of the United
of property, real, personal, and mixed, and choses in States issued since April twenty-fourth, nineteen hundred and
action thereto belonging, shall be deemed to be trans- seventeen, or certificates of indebtedness of the United States,
ferred to and vested in such national bank into which it is shall not be considered as money borrowed within the
consolidated without any deed or other transfer, and the
said consolidated national bank shall hold and enjoy the meaning of this section, but the total liabilities to any assosame and all rights of property, franchises, and interests ciation of any person or of any company, corporation, or firm,
in the same manner and to the same extent as was held upon any note or notes secured by such bonds or certificates of
and enjoyed by the national bank so consolidated there- indebtedness, purchased or discounted by such association,
with.
shall not exceed ten per centum of the capital and surplus of
This bill provides for the consolidation of national such association, except subject to such general rules, regulabanking associations with each other by an easier method tions, and limitations as may be established from time to time
than that which has heretofore existed. There is no pro- by the Comptroller of the Currency, with the approval of the
vision in law at the present for such consolidation. It has Secretary of the Treasury."
heretofore been necessary for one to absorb the other, and
Your committee attaches hereto a print of the substitute
it has happened that banks which might be advantageously
brought together are kept apart from pride or unwilling- amendment showing in italic the changes to present law
ness of one or the other to be absorbed. Consolidation on contained in the amendment reported by the committee.
terms of equality is regarded differently and there seems
Be it enacted by the Senate and House of Representatives of
to be no reason why this should not be permitted as pro- the United States of America in Congress assembled, T h a t
section fifty-two hundred, of the Revised Statutes of the
posed in the bill.
United States, be amended to read as follows:
The Senate committee has further reported
"SEC. 5200. The total liabilities to any association, of
any company,
firm, for
the following measure as a substitute for H. R. any person, or of including in thecorporation, or company
money borrowed,
liabilities of a
or firm the liabilities of the several members thereof, shall
10691 passed by the House on April 3:
at no time exceed one-tenth part of the amount of the
The Committee on Banking and Currency, to whom was capital stock of such association, actually paid in and unreferred the bill (H. II. 10691) to amend section 5200, impaired, and one-tenth part of its unimpaired surplus




432

FEDEKAL RESERVE BULLETIN.

MAT

l, 1918.

fund: Provided, however, That the total of such liabilities national banks, and that improper loans to its own officers
[
shall in no event exceed thirty per centum of the capital I have often interfered with the banks serving customers
stock of the association. But the discount of bills of ex- better entitled.
change drawn in good faith against existing values, the
purchase or discount of any note or notes secured by not less
HOUSE BILLS.
than a like face amount of bonds or certificates of indebtedness I
of the United States and the discount of commercial or |
[H. R. 11020.]
business paper actually owned by the person negotiating
the same which may be eligible for rediscount with Federal j A BILL To amend and reenact sectionsfifty-onehundred and thirty-six,
reserve banks shall not be considered as money borrowed, • fifty-one hundred and thirty-seven, fifty-one hundred and thirtyand may be discounted for such person to an amount not | nine,fifty-onehundred and forty-seven,fifty-onehundred and seventyexceeding twenty-five per centum of the capital and surplus of i two,fifty-twohundred and twenty-two, and fifty-two hundred and
the association: And provided further, That no note, draft, i thirty of the Revised Statutes of the United States.
bill of exchange, or other evidence of debt, executed or indorsed
Be it enacted by the Senate and House of Representatives
by the president, cashier, or other officer of an association, shall
be discounted by the bank in which such officer is employed, of the United States of America in Congress assembled,
except by the written assent of three fourths of the directors, That sections fifty-one hundred and thirty-six and fiftyand no note, draft, bill of exchange, or other evidence of debt one hundred and thirty-nine of the Revised Statutes of
executed or indorsed by any attorney or director of an association, or by any firm of which a director is a partner, shall be the United States be amended and reenacted so as to
discounted by such association, except by the affirmative vote read:
or written assent of at least a majority of the members of the
"SEC. 5136. Upon duly making and filing articles of
board of directors.
association and an organization certificate, the associa"Any person violating any provision of this section shall,
in addition to any civil liability thereby incurred, be punished tion shall become, as from the date of the execution of its
by a fine not exceeding -$5,000, or by imprisonment not organization certificate, a body corporate, and as such, and
exceeding one year, or both."
in the name designated in the organization certificate, it

The House bill and the proposed substitute both reenact
existing law limiting the amount of loans to any one
person, company, etc., to one-tenth of the bank's capital
and surplus. The substitute also reenacts existing law
placing a further limitation on such loans that they shall
not exceed 30 per cent of the bank's capital stock.
Both bills amend existing law so as to permit national
banks to make loans on United States bonds and certificates of indebtedness in an amount in excess of the 10 per
cent limitation. In the House bill the limitation is left
"to such general rules, regulations, and limitations as may
be established from time to time by the Comptroller of the
Currency, with the approval of the Secretary of the Treasury "; in your committee's proposed substitute the limitation is placed at 25 per cent of the bank's capital and
surplus.
Under existing law no limitation is placed upon the
amount which may be loaned to any person, etc., in the
discount of bills of exchange drawn against actually existing values, and the discount of paper actually owned by
the person seeking to negotiate it. The House bill follows
existing law in this respect; the proposed substitute places
a limitation upon such loans to an amount not exceeding
25 per cent of the bank's capital stock and surplus.
The proposed substitute also limits the right of officers
and directors to make loans to officers of their own banks
except by the written assent of three-fourths of the directors or of a majority of the directors in case a director
wishes to borrow. The reason for this is that it gives a
safeguard against improvident loans to officers and directors from the banks in which they have authority.
The Comptroller of the Currency advises your committee
that the abuse of such powers by officers and directors has
been a fruitful cause of failures on the part of certain




shall have power—
"First. To adopt and use a corporate seal.
"Second. To have succession for the period of twenty
years from its organization, unless it is sooner dissolved
according to the provisions of its articles of association, or
by the act of its shareholders owning two-thirds of its stock,
or unless its franchise becomes forfeited by some violation of law.
"Third. To make contracts.
"Fourth. To sue and be sued, complain and defend, in
any court of law and equity as fully as natural persons.
"Fifth. To elect or appoint directors, and by its board
of directors to appoint a president, vice president, cashier,
and other officers, define their duties, require bonds of
them, and fix the penalty thereof, dismiss such officers
or any of them at pleasure, and appoint others to fill their
places.
"Sixth. To prescribe, by its board of directors, bylaws not inconsistent with law, regulating the manner in
which its directors shall be elected or appointed, its
officers appointed, its property transferred, its general
business conducted, and the privileges granted to it by
law exercised and enjoyed.
" Seventh. To exercise, by its board of directors or duly
authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences
of debt; by receiving deposits; by buying and selling
exchange, coin, and bullion; by loaning money on personal
security; and by obtaining, issuing, and circulating notes
according to the provisions of this title.
"But no association shall transact any business except
such as is incidental and necessarily preliminary to its

MAY 1,1918.

FEDEBA.L BESEBVE BULLETIN.

organization, until it has been authorized by the Comptroller of the Currency to commence the business of banking.
"SEC. 5139. The capital stock of each association shall
be divided into shares of $100 each and be deemed personal
property. There shall be kept by each association a
book to be known as a stock ledger, in which shall be
entered the name of the person or persons, firm, company,
or corporation to whom each share of stock is issued, the
date of issue, the number or numbers of the certificates
issued, and the number of shares represented by each
certificate.
"Any stock transferred as hereinafter provided shall
be entered upon the stock ledger by entering after the
original entry of the issuance thereof the date upon which
the same is canceled and the number or numbers of the
new certificate or certificates issued therefor. The entry
of such original issue or such transfer upon the stock
ledger shall be prima facie evidence of the ownership of
the stock. Every person becoming a shareholder by such
transfer shall, in proportion to his shares, succeed to all
the rights and liabilities of the prior holder of such shares;
and no change shall be made in the articles of association
by which the rights, remedies, or security of the existing
creditors of the association shall be impaired.
" Transfer of stock in any association shall be made
only upon the surrender of the duly issued certificate therefor properly and duly indorsed and by the issuance of a new
certificate or certificates, records of which transfer shall be
kept in the stock ledger in the same manner as the record
of the original issue of stock with the addition that a record
shall be made therein of the number of the certificate surrendered and canceled. In the event of loss or destruction of a certificate and upon satisfactory proof of such loss
or destruction being made to the board of directors, the
board may cause to be issued to the lawful owner a new
certificate."
SEC. 2. That section fifty-one hundred and thirtyseven of the Revised Statutes of the United States be
amended and reenacted so as to read as follows:
4
'SEC. 5137. A national banking association may purchase, hold, and convey real estate for the following purposes, and for no others:
"First. Such as shall be necessary for its immediate
accommodation in the transaction of its business.
"Second. Such as shall be mortgaged to it in good
faith by way of security for debts previously contracted.
"Third. Such as shall be conveyed to it in satisfaction
of debts previously contracted in the course of its dealings.
"Fourth. Such as it shall purchase at sales under judgments, decrees, or mortgages held by the association, or
shall purchase to secure debts due to it.
"But no such association shall hold the possession of
any real estate under mortgage, or the title and possession
of any real estate purchased to secure any debts due to it,
for a longer period than five years; nor shall any such association hereafter invest in a site and bank building or bank




433

and office building an amount in excess of its paid-in and
unimpaired capital stock."
SEC. 3. That section fifty-one hundred and forty-seven
of the Revised Statutes of the United States be amended
and reenacted so as to read as follows:
"SEC. 5147. Each director, when appointed or elected,
shall take an oath that he will, so far as the duty devolves
on him, diligently and honestly administer the affairs of
such association, and will not knowingly violate, or
willingly permit to be violated, any of the provisions of
this title, and that he is the owner in good faith and in his
own right of the number of shares of stock required by
this title, subscribed by him, or standing in his name on
the books of the association, and that the same is not
hypothecated, or in any way pledged, as security for any
loan or debt. Such, oath, subscribed by the director
making it and certified by the officer before whom it is
taken, shall be immediately transmitted to the Comptroller of the Currency, and shall be filed and preserved in
his office. If any director shall fail to qualify and forward
his oath to the Comptroller of the Currency within sixty
days after his election, unless on account of illness,
absence, or other good cause approved by the Comptroller
of the Currency, a vacancy shall be immediately declared
and the party so elected and failing to qualify shall be
ineligible for reelection as director for that year."
SEC. 4. That section fifty-one hundred and seventytwo of the Revised Statutes of the United States be
amended and reenacted so as to read as follows:
"SEC. 5172. In order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the
direction of the Secretary of the Treasury, cause plates and
dies to be engraved, in the best manner to guard against
counterfeiting and fraudulent alterations, and shall have
printed therefrom, and numbered, such quantity of circulating notes in blank or bearing engraved signatures of
officers as herein provided of the denominations of $1, $2,
$5, $10, $20, §50, $100, $500, and $1,000, as may be required
to supply the associations entitled to receive the same.
Such notes shall express upon their face that they are
secured by United States bonds, deposited with the
Treasurer of the United States, by the written or engraved
signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express
upon their face the promise of the association receiving
the same to pay on demand, attested by the written or
engraved signatures of the president or vice president and
cashier; and shall bear such devices and such other statements, and shall be in such form as the Secretary of the
Treasury shall, by regulation, direct."
SEC. 5. That sections fifty-two hundred and twentytwo and fifty-two hundred and thirty of the Revised
Statutes of the United States be amended and reenacted
so as to read as follows:
•'SEC. 5222. Within ninety days from the date of the
vote to go into liquidation the association shall deposit
with the Treasurer of the United States lawful money of

434

FEDERAL RESERVE BULLETIN.

the United States sufficient to redeem all its outstanding
circulation. The Treasurer shall execute duplicate receipts for the money thus deposited and deliver one to the
association and the other to the Comptroller of the Currency, stating the amount received by him and the purpose
for which it has been received, and the money shall be
paid into the Treasury of the United States and placed to
the credit of such association upon redemption account."
"SEC. 5230. Whenever the comptroller has become
satisfied, by the protest of the waiver and admission
specified in section fifty-two hundred and twenty-six, or
by the report provided for in section fifty-two hundred and
twenty-seven, or by a declaration of insolvency, that any
association has refused or is unable to pay its circulating
notes, or when any association in voluntary liquidation
has failed to deposit lawful money with the Treasurer of
the United States sufficient to redeem its outstanding
circulation, as provided by section fifty-two hundred and
twenty-two of the Revised Statutes of the United States,
he may, instead of canceling its bonds, cause so much of
them as may be necessary to redeem its outstanding notes
to be sold at public auction in the city of New York after
giving thirty days' notice of such sale to the association.
For any deficiency in the proceeds of all the bonds of an
association, when thus sold to reimburse to the United
States the amount expended in paying the circulating
notes of the association, the United States shall have a
paramount lien upon all its assets: and such deficiency
shall be made good out of such assets in preference to any
and all other claims whatsoever, except the necessary costs
and expenses of administering the same."

On this bill the House committee made the
following report:
The Committee on Banking and Currency, to which was
referred the bill (H. R. 11020) to amend and reenact
sections 5136, 5137, 5139, 5147, 5172, 5222, and 5230 of the
Revised Statutes of the United States, having had the
same under consideration, report it back to the House
with the recommendation that the bill do pass.




MAY 1,1918.

The amendment to section 5136 simply strikes from the
existing statute the words which authorize national banking associations to prescribe in their by-laws the manner
in which stock shall be transferred and incorporates the
same authority in section 5139 of the Revised Statutes by
requiring such associations to keep a stock ledger, in
which shall be entered the names of persons, firms, companies, or corporations to which stock is issued and provides statutory regulations as to the manner in which this
stock ledger must be kept and in which stock transfers
shall be made and lost certificates replaced.
The amendment to section 5137 puts a limitation upon
| the amount of money that a national banking association
! may hereafter invest in a bank or office building and site,
I the requirement being that the amount so invested shall
j not exceed the paid-in and unimpaired capital stock of
I the association.
! The amendment to section 5147 requires a director of a
I national banking association to qualify within 60 days
! after election unless prevented on account of illness,
I absence, or other good cause approved by the comptroller,
| under penalty of having his position as director vacated
! and himself rendered ineligible for reelection for the
current year.
Section 5172 is amended so as to authorize the signatures
of bank officers to notes of issue to be engraved as well as
written, and also omits the denomination of three dollar
bills from the notes authorized to be issued under this
section.
The amendment to section 5222 requires a national
banking association which goes into liquidation to deposit
within 90 days, instead of 6 months as at present, with the
Treasurer of the United States lawful money sufficient to
redeem all its outstanding circulation.
The amendment to section 5230 authorizes the Comptroller of the Currency, upon the failure of such association
to make such deposit, to sell a sufficient amount of its
bonds after the prescribed time limit to redeem its outstanding notes.

MAY 1,1918.

FEDERAL EESEBVE BULLETIN.

435

INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from
time to time over the signatures of the officers
or members of the Federal Reserve Board
which contain information believed to be of
general interest to Federal Reserve Banks and
member banks of the system:
Eligibility of Trade Acceptance for Gas Sold.
(To an individual.)

In each of the cases submitted by you it
appears that the contract between the seller
of the goods who draws the draft and the purchaser is entirely independent of the contract
for the export of the goods. This being true,
the draft would have to be treated as drawn in
a domestic transaction, and the drafts should
be accompanied by shipping documents or
secured by warehouse receipts or other similar
documents conveying and securing title when
accepted by the drawee bank.
A different situation would, of course, be
presented if the drawee bank accepted the
drafts at the instance of the purchaser of the
goods, the purchaser having a contract to
export such goods. In such case, the drafts
would grow out of a transaction involving the
export of the goods and could be accepted by
the drawee bank under authority of section 13
of the Federal Reserve Act.

Your letter of April 19, with reference to the
eligibility of a trade acceptance given by a gas
distributing company to a gas producing company in payment for gas sold, has been received and considered by the Federal Reserve
Board.
The question presented for determination is
whether natural gas actually sold and delivered
by a distributing company is "goods sold"
within the meaning of the Federal Reserve
APRIL 10, 1918.
Board's regulations defining a trade acceptance.
The Board is of the opinion that an acceptance
drawn by a gas producing company on a gas
distributing company, and accepted by the { Payment of Interest Coupons on Bonds of Federal Land
Banks and Joint Stock Land Banks.
latter in payment for the gas sold and delivered I
is a trade acceptance, and that it is eligible for i
(To Federal Reserve Banks.)
rediscount by a Federal Reserve Bank, pro- I
vided, of course, it also conforms to the other i Arrangements have been made with the
Federal Farm Loan Board for the payment
requirements of the Board's regulations.
through Federal Reserve Banks of coupons of
APRIL 23, 1918.
Federal farm loan bonds issued by Federal
Land Banks.
Under this arrangement it is contemplated
Acceptances in Domestic or Foreign Transactions.
that the Federal Land Bank will deposit with
(To a Federal Reserve Bank.)
the Federal Reserve Bank of New York a
Receipt is acknowledged of your letter of sufficient sum to pay maturing coupons on
April 9, inclosing copy of letter addressed bonds issued by it. The Federal Reserve
Bank of New "fork will arrange with other
to
Federal Reserve Banks to receive such coupons
It appears from this letter that the
certifies that a draft drawn by it against the on deposit or to pay them when presented and
was drawn for the purpose of financing to charge same to its account.
All such bonds should be forwarded to the
the sale to the Allied Purchasing Commissions
of packing-house products contracted for ex- Federal Reserve Bank of New York and will
port to Europe. You ask whether this can be be charged to the account of the Federal Land
treated as a banker's acceptance against goods Bank. In the adjustment of the accounts as
for export. It is assumed that the firm of- between the Federal Reserve Banks these
has no contract to export and that its coupons may be treated as checks or drafts on
transaction is completed when its sale is made the Federal Reserve Bank of New York.
The Board has approved this arrangement.
to the Allied Purchasing Commission.
This case appears to be covered by opinion of The Federal Reserve Bank of New York will
counsel approved by the Board and published arrange any necessary details with the other
in the September, 1915, issue of the Federal Federal Reserve Banks.
Reserve Bulletin, page 276, volume 1.
APRIL 1, 1918.




436

FEDERAL RESERVE BULLETIN.

(To a Federal Reserve Bank.)

MAY 1,1918.

Board is of the opinion that the law does not
authorize any Federal Reserve Bank to receive
such drafts on deposit for collection and immediate credit even though they majr be
charged back to the account of the depositing
bank if returned unpaid.
It is true that section 13 permits Federal
Reserve Banks to receive on deposit " checks
and drafts payable upon presentation," but
this language is not construed by the Board
as including bill-of-lading drafts payable upon
demand, or at sight, when drawn against individuals, firms, or corporations other than banks.
This question was discussed in circular letter to
all Federal Reserve Banks dated August 11,1917.
While the Board desires the Federal Reserve
Banks to extend every reasonable accommodation to the member banks, and to encourage
in every way the use by member banks of
Federal Reserve Banks as collecting agents, it
is necessary, nevertheless, that the operations
of the Federal Reserve Banks shall be conducted in accordance with the restrictions
imposed by the Federal Reserve Act. Federal
Reserve Banks which have issued circulars
APRIL 10, 1918.
contrary to the principles discussed in this
letter are, therefore, requested to withdraw
Collection by Federal Reserve Banks of BUS of Lading or to amend such circulars in accordance with
Drafts.
the suggestions herein contained,
APRIL 17, 1917.
The attention of the Federal Reserve Board
has been called to the fact that several of the
Federal Reserve Banks have sent circulars to ! The following telegram and letter pertaining
their member banks announcing that they are ; to the above were sent out under date of
prepared to receive on deposit for immediate
credit, subject to final payment, bill-of-lading |i April 22:
[Telegram.]
drafts drawn on demand, or at sight, or upon
arrival of car. The custom appears to be to | Board recognizes importance of having Fedcharge the current rate of interest for the | eral Reserve Banks provide facilities for hanperiod between the date upon which credit is i dling bill of lading drafts for member banks and
given and the date upon which advice is re- | regrets that legal considerations made it necesceived that the draft has been paid. In case I sary to interfere with established practice of
it is not paid the amount of the draft is charged I some of the Federal Reserve Banks respecting
back to the member bank's account and the I drafts of this character. Some of the banks
draft is returned to the member bank or is | have been taking drafts from members payable
entered for collection on the books of the I at sight with instructions to hold until arrival
| of car, thus making drafts in effect payable
Federal Reserve Bank.
There is grave doubt as to the legality of I upon arrival of car, at the same time taking
this practice. Bill-of-lading drafts of this I from member bank a written order authorizing
character are obviously not eligible for redis- !-any drafts outstanding and unpaid after period
count by a Federal Reserve Bank under the ; of 60 days from date of receipt by Federal
provisions of section 13 of the Federal Reserve I Reserve Bank to be charged to account of
Act since they are not necessarily payable | member bank. Board has consulted counsel
within 90 days as required by that section.
• and wishes to advise you that no objection will
While these drafts may be received by a • be made to your discounting for member banks
Federal Reserve Bank for collection, and credit j drafts with bill of lading attached, drawn payawhen payment is received, the Federal Reserve j ble on or before 30, 60, or 90 days after date,

Receipt is acknowledged of yours of April 9,
1918, in which you inclose copy of letter from
Secretary of the Joint Stock Land Bank of
, stating that that bank desires to make
arrangements to have interest coupons on
farm loan bonds issued by it paid at the
Federal Reserve Bank of New York.
You state that you have completed similar
arrangements for payment of coupons issued
by the several Federal land banks and ask for
a ruling of the Board as to the payment of
coupons issued by joint stock land banks.
In reply, you are advised that the Board
has heretofore ruled that inasmuch as the
bonds issued through the joint stock land
banks are issued on substantially the same
terms and conditions as those issued through
Federal land banks, there is no objection to
the Federal Reserve Banks making the same
arrangements with the joint stock land banks
that have been made with the Federal land
banks for the payment of coupons on farm
land bonds*




MAY 1,1918.

FEDEEAL BESERVE BULLETIN.

437

"Under the terms of section 13 of the Federal
and any arrangement made by you to charge
interest for actual time drafts are outstanding Reserve Act national banks are permitted to
accept drafts in a domestic transaction only
will be approved by Board.
when shipping documents conveying or securAPRIL 22, 1918.
ing, title are attached at the time of accept[Letter.]
ance, or when such drafts are secured at the
Referring to circular letter of April 17, time of acceptance by warehouse receipt or
relating to drafts drawn with bill ox lading other such document conveying or securing
attached, payable at sight or upon arrival of title covering readily marketable staples. In
car, the Board wishes it understood that it the case under consideration no shipping
recognizes the importance of having Federal documents are attached, and in the opinion of
Reserve Banks provide facilities for handling this office a chattel mortgage on cattle is not
bill of lading drafts for member banks, and a document similar to a warehouse receipt
that it regrets that legal considerations made conveying or securing title to readily marketit necessary to interfere with the established able staples. In the case of a chattel mortgage
practice of some of the Federal Reserve Banks the borrower retains possession of the goods
respecting drafts of this character.
and merely vests the legal title as security for
The Board is informed that some of the the debt."
Federal Reserve Banks have been taking
MARCH 25, 1918.
drafts from members payable at sight with
instructions to hold until arrival of car, thus
making drafts in effect payable upon arrival of Trade Acceptances in Connection with Sales on Installment Plan.
car, at the same time taking from the member
(To an individual.)
bank a written order authorizing any drafts
outstanding and unpaid after a period of 60
Referring further to your letter of March 21,
days from date of receipt by the Federal inclosing a copy of a letter from
, in
Reserve Bank to be charged to the account which they inquire about the use of trade
of the member bank.
acceptances in connection with the sale of
After consulting with counsel I wish to coffee mills, etc., on an installment plan, 1
advise you that no objection will be made to am instructed to say that the counsel of the
your discounting for member banks drafts Board reports as follows:
"If the purchaser is willing to accept the
with bill of lading attached, drawn payable
"on or before 30 days after date/ 7 "on or draft in advance of the delivery of the goods,
before 60 days after date," or "on or before there would seem to be no reason why such an
90 days after date," and any arrangement acceptance should not be treated on the same
made by you to charge interest for the actual basis as a bill drawn and accepted after delivery
time the drafts are outstanding will be of such goods."
approved by the Board.
A memorandum presented to the Board on
the same subject contains the following paragraph, which is herewith transmitted to you
as the expression of the Board's views on this
Acceptances Secured by Chattel Mortgages on Cattle.
question.
(To a Federal Reserve Bank.)
"After the machines have been made and
The Board has had before it your letter of delivered to the customer, and after the seller
has been notified by the customer of the
March 18, in which you state that the
National Bank of
has asked for a ruling delivery, then the seller fills in his name on
the acceptances as drawer, and also fills in the
on the following proposition:
"May arrangements be made for banks to date of maturity, * * * the total installment
accept or make acceptances based on chattel acceptances amounting to the agreed price.
mortgages, or so-called cattle loans, with the None of these acceptances could be negotiated,
agreement to renew these acceptances for 90 nor, in fact is an acceptance at all until after
the machine has been delivered and accepted
days two or three times."
I am instructed to advise you that in the by the purchaser. It would seem * * * that
opinion of the Board national banks are not this is clearly a case of a trade acceptance and
authorized by law to accept drafts or bills that should be entitled to preferential rates as
are secured by chattel mortgages on cattle. such."
The Board's counsel says:
APRIL 15, 1918.




438

PEDEKAL RESERVE BULLETIN.

MAT 1,1918.

LAW DEPARTMENT.
The following opinions of counsel have been wise that it is eligible for rediscount. Satisauthorized for publication by the Board since factory evidence of the eligibility may consist
the last edition of the Bulletin:
of a stamp or certificate affixed by the acceptor
in form satisfactory to the Federal Reserve
Acceptances by member banks of drafts drawn by dealers
engaged in the export and domestic sale of the same Bank.
character and class of goods.
In the case under consideration it is assumed
that the dealer is engaged in the purchase of
Where a dealer who is engaged in the purchase of the
same character and class of goods for export and for domes- goods for export and is purchasing the same
tic use desires to finance the purchase and sale of goods to character and class of goods for domestic use.
be exported, his agreement with a member bank accepting Some difficulty may be encountered, therefore,
such drafts should show that he has a contract for the
export of the goods; that the total amount of drafts drawn in ascertaining whether the goods purchased
under such credit will not exceed the aggregate amount in any particular transaction are to be used for
involved in the export transaction; that the proceeds of the export or for domestic consumption.
drafts are to be used in connection with the export transYou have asked that consideration be given
action ; and that the proceeds of the sale of the goods exto the question of what evidence the accepting
ported will be applied in payment of the acceptances
unless the dealer has in the meantime placed the bank in bank should require if the acceptance grows
funds to meet them at maturity, or has secured such accep- out of a transaction involving the export of
tances in the manner required of domestic acceptances.
goods and what form this evidence should take.
It is respectfully suggested that where the
APRIL 1, 1918.
dealer desires to finance the purchase and sale
SIR : It appears that certain dealers in staples
who have a large domestic business are under of goods to be exported his contract with the
contract to export food to the Allies. The bank should provide (a) that he has entered
question has arisen to what extent and under into a contract for the export of the goods of
what circumstances member banks may accept a fixed amount; (&) that the total amount of
drafts or bills of exchange drawn by such drafts drawn by him under the credit opened
to finance the export of such goods shall at no
dealers.
time exceed the aggregate amount of the
(1) Where the drafts are drawn in a domestic transaction, under section 13 they must import or export transactions contracted for
be accompanied by shipping documents or the and in process of execution; (c) that the probank must be secured at the time of acceptance ceeds of drafts drawn against the accepting
by a warehouse receipt or other similar docu- bank under this credit are to be used in conment conveying or securing title to the goods nection with the export contracts referred to,
and that the proceeds of the sale of the goods
involved.
(2) Where the draft grows out of a particular exported will be applied in payment of the
transaction involving the export of goods the acceptances unless the dealer has in the meanregulations of the Board require that the bill time placed the bank in funds to meet them
must have been drawn under a credit opened at maturity or has secured such acceptances
for the purpose of conducting or settling by shipping documents, warehouse receipt, or
accounts resulting from such transaction.
other similar document conveying or securing
In other words, it must appear that the bill title to readily marketable staples.
Unless the dealer can and mil assure the
is drawn and the proceeds are used in connection with the export transaction. The bank that the proceeds of the credit are to be
Federal .Reserve Bank must be satisfied either used in an export transaction and that the
by reference to the acceptance itself or other- proceeds of the goods exported are to be used




MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

to liquidate the acceptances, the dealer should
be required to treat the bills as drawn in
domestic transactions and the bank should
require security provided by section 13.
Respectfully,
M. C. ELLIOTT, Counsel.
To HON. W. P. G. HARDING,

Governor Federal Reserve Board.
Acceptance by member banks of drafts drawn in transactions involving export of goods.
A dealer having drawn drafts accepted by a member
bank in an export transaction should be given the option,
with the consent of the accepting bank, to secure such
drafts in the manner required of those drawn in domestic
transactions if he wishes to use the proceeds derived from
the sale of the goods exported for purposes other than the
payment of such acceptances.
APRIL 11,

1918.

439

ance by shipping documents, warehouse receipt,
or other similar document conveying or securing title to readily marketable staples/ 7
The purpose of this suggestion has apparently been misunderstood by some of the banks
and bankers and seems to call for a further
explanation from this office.
If a draft is drawn in a transaction involving
the export of goods, it is not necessary that it
should be secured by shipping documents,
warehouse receipts, or other similar document
conveying or securing title to readily marketable staples. This is necessary, however, where
a draft is drawn in a domestic transaction.
Assuming that the dealer is drawing drafts
in both foreign and domestic transactions, this
suggestion was intended to give him the option
either to place the bank in funds to meet an
acceptance drawn in a transaction involving
the export of goods, or else to place such an
acceptance on the basis of one drawn in a domestic transaction by delivering to the bank
shipping documents, warehouse receipts, or
other similar documents conveying and securing title to readily marketable staples located
in this country.
Respectfully,
M. C. ELLIOTT, Counsel.

SIR: In an opinion of this office, dated April
1, 1918, which dealt with the subject of drafts
drawn by dealers engaged in the export and
in the domestic sale of the same character of
goods, it was suggested that where such a
dealer desires to finance the purchase and sale
of goods to be exported, his contract with the
bank should provide, among other things,
'' that the proceeds of drafts drawn against the
accepting bank * * * are to be used in To Hon. W. P. G. HARDING,
connection with the export contracts referred
Governor Federal Reserve Board.
to, and that the proceeds of the sale of the
goods exported will be applied in payment of
the acceptance, unless the dealer has in the
[For opinion of the Attorney General of the
meantime placed the bank in funds to meet United States on the subject of collection and
them at maturity, or has secured such accept- payment of checks, see pages 367-371.]




440

MAT 1,1918.

FEDERAL RESERVE BULLETIN.

SUMMARY OF BUSINESS CONDITIONS, APR. 23, 1918.
District No. 2— j District No. 3—
New York.
j Philadelphia.

District No. 1—
Boston.

District No. 4— j
Cleveland.
I

District No. 5—
Richmond.

i
General business

| Active; stronger
| tone.
! Good

Very fair

I

Slightly quieter... i Active

Favorable

Good

Crops:
Condition
Outlook.

Prospects good for
large acreage.

Good

Industries of the district.

Busy..

Construction, "building, and engineering.

Subnormal

Very busy, with All industries pro- Active
''
G o v e r n m e n t j ducing e s s entials are very
work receiving
busy.
preference.
Decreasing.
Decreasing
Dull

V e r y m u c h re- Not as large as last
stricted.
year.
Increase
Increase
Firm
Very firm

Foreign trade
Increase
Bank clearings
Decreased
Money r a t e s . . . . .
d eRailroad, post office, Railroad,
creased; post ofand other receipts.
fice, increased.
Labor conditions
Outlook
Remarks..

Post office, telegraph, and railroad receipts in-

Crops:
Condition
Outlook
Industries of the district.
Construction, building, and engineering.

Decrease.

Scarco and well L a b o r scarce; V e r y
scarce;
paid.
wages increasing.
wages high.
For increased pro- Good
j Good
duction on war
requirements.
Business in nonessentials quieter
and manufacturer s devoting
themselves t o
war work.

i

District No. 7Chicago.
General business

do

District No. 8—
St. Louis.

District No. 9—
Minneapolis.

On sound basis; j Good
little specula- \
tion.
!
Excellent
i
do
....do
i Favorable
Generally at ca- i Active
pacity.
|
Stagnant
I Rather quiet.

Good..

: Very favorable.
Active
Slow

Foreign trade
i

Bank clearings.
Increase
Money rates.
Quite
firm
Railroad, post-office, Increase
and other receipts.
Labor conditions
Outlook

Remarks..




Labor scarce, consequently independent.
Good

I

i Increase
! Little change..
I Firm
; Steady
i Increase in postal j No change
receipts.
Still rather unset- j Fair to good..
tied, but im- j
proving.
j
Promising
i Favorable

Firmer.
Increase

!

District No. 6—
Atlanta.

:
Very satisfactory

Satisfactory.

I
Do.
j Prosperous; well ad- j
i variced.
Good.
! Satisfactory, except
! labor.'
Active; profitably Fully employed.
j employed.
Private building, I Inactive.
negligible; Gov-!
eminent work ac- i
tive.
j
Limited by freight I
Do.
room.
|
Increase
J Steady.
Good demand, 6 per j Slight increase.
cent; increasing.
! Railroad, irregular; Steady.
post office, volume
large.

Scarce and exact- Inadequate; unsat- j Fair.
ing.
is factory.
j
Promising
Satisfactory and en- j Good.
couraging.
Crop preparations i
well advanced.
|

District No. 10—
Kansas City.
Good

: Generally good
' Improved
| Active

District No. 11—
Dallas.
j Good

Much improved
Fair to good
Generally active

| Farm building off- Building activity improved, and good
i sets lull in city
1
prospects normal
building.
spring activity.
Satisfactory, only
hampered by export space.
Large increase
Increase.
Firm
, Steady; no change...
Railroad
receipts
above last year;
post-office
increase.
.! Adjusted and set- Scarcity i n a l l
branches; wages
! tied.
advancing.
As satisfactory as
Good
i
could be expected
under war conditions.
The general im- Rains in drought
provement o f
sections
have
the crop prosmade
improvepects has elTectment, and r e ed the betterports are encourment of all busiaging; b u s i n e s s
ness conditions.
good; o u t l o o k
promising.

District No. 12San Francisco.
Active.

Excellent.
Do.
Active.
Reduced.
Increasing.
Do.
Firm.
Increasing.

Improving.
Favorable.

MAT 1,1918.

FEDERAL RESERVE BULLETIN.

441

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a sum- ; well sold up, and prices are firm. The shortage
mary of business conditions in the United : of labor has resulted in the employment of a
States by Federal Reserve districts. These j poorer grade of operatives, thus reducing the
reports are furnished by the Federal Reserve j general efficiency.
agents, who are the chairmen of the boards of ! The Fall River print-cloth market has been
directors for the Federal Reserve Banks of the jduller than for weeks. However, prices are
several districts. Below are the detailed re- j firm, and mills with 30 per cent to 40 per cent
ports as of approximately April 23:
of their equipment working on Government
orders have all the business they can handle.
DISTRICT NO. 1—BOSTON.
Retail shoe trade is better, and there is an
Reports from Bangor, Me., indicate that j increased civilian demand, especially for
weather conditions are such that farmers can women's shoes. Retailers are buying more
start their operations earlier than usual, and freely, and manufacturers are receiving fall
are determined to produce more. Men em- j orders, which, taken in conjunction with Govployed in industries around Bangor are earn- ! ernment requirements, will keep them as busy
ing more than ever before, but are not spending | as labor conditions will permit.
their money as freely for unnecessary things j Leather continues in better demand, with
as has been their custom in past years. It is Iprices firm, especially in the grades required
the general sentiment that business in that j for Army shoes.
locality is duller than for some time past.
! Wool trade is quiet, and will probably reIn Bridgeport, Conn., as in other communi- j main so until the Government's needs are
ties having large war orders, the housing prob- j known. In accordance with the wishes of the
lem is serious and especially so as savings j Government, no attempts arc being made to
banks are not in a position to loan money freely purchase western wool until clipped.
on real estate mortgages, and Government aid
The crop situation in general is more hopeful
will probably be necessan'. Factories in that! than earlier, and prospects are for substantial
vicinity are extremely busy, especially those j acreage increases, with the possible exception
engaged on Government orders, many having j of potatoes. Snow is practically all gone, and
contracts that will tax their capacity for j spring operations are beginning.
months. Retail business is good owing to the ; The money market is easier than a month
distribution of large pay rolls.
j ago, with some decline in rates. Call money,
Small merchants in Lowell, Mass., have never j 5 per cent to 6 per cent, generally 5-J per cent.
had so successful a year, owing to the large j Time money, 5-J- per cent to 6 per cent, with 5^wages paid in munition factories and textile to 5f per cent being named to large borrowers
mills. The textile industries are all very busy, for short maturities. There is a small amount
and pay rolls in many cases are double what of paper moving at 6 per cent to out-of-town
they were in 1916.
points.
Reports from Springfield, Mass., state that
The exchanges of the Boston Clearing House
general business is good, although in nonessen- for the week ending April 20, 1918 (five days),
tials there is some hesitation. Labor is well were $277,613,994, compared with $241,021,employed, and in general is well satisfied.
923 for the corresponding week last year (five
Fine cloth manufacturers in New Bedford, days), and $266,933,306 for the week ending
Mass., have found the demand smaller since April 13, 1918.
the recent decline in cotton, but inquiries are
Building and engineering operations in New
still being received in fair volume. Mills are England from January 1 to April 18, 1918,




442

FEDEKAL RESERVE BULLETIN.

MAY 1,1918.

amounted to $35,800,000, as compared with
I Per
Per
! cent of
cent of
$52,659,000 for the corresponding period of
Industry.
Industry.
| indei crease.
1917. This is a smaller amount than in any
of the last 10 years.
Firearms, tools, and cut- |
Lime, cement, and plaster. 34.2
! 65.2 Brick, tile, and pottery....
21.8
The receipts of the Boston post office for lcry
Boat and ship building
| 43.8 Brass, copper, aluminum,
20.2
etc
j 21.0
March, 1918, show an increase of §133,845.74, Groceries
18.6
Water, light, and power...; 16.6 Wool manufactures
Gold, silver, and precious
or about 16 per cent more than March, 1917. Confectionery and ice j
18.5
cream
."
! 16.2
stones
Pianos, organs, and other
For the first 15 days of April, 1918, receipts Automobiles, carriages, !
and carts
j 15.7
musical instruments
13.3
! 13.9 Paints, dyes, and colors...j 13.0
were about 16 per cent, or $64,782.23, more Machinery
Structural and architect- i
Mens' shirts and furnish- i
12.9
! 13.8
than for the corresponding period of last ural iron work
Miscellaneous leather and j
Saw mill and planing mill
products
year.
canvas goods
\ 13.2
12.6
Slaughtering, meat pack- j
Paper boxes and tubes....
12.4
The Boston & Maine Railroad reports a loss ing and dairy products..\ 10.8 Laundering, cleaning, dyeDrugs and chemicals
; 10.0
ing, etc
11.6
from operation, after taxes, for February, 1918,
Furniture and cabinet
w ork
11.3
of $399,355, as compared with net operating
Paper
10.2
income, after taxes, of $242,648 for the corresponding month of 1917.
This shifting between industries does not,
Loans and discounts of the Boston Clearing however, fully measure the extent of the adHouse banks on April 20, 1918, amounted to justment which has taken place, for within
$491,471,000, as compared with $475,039,000 many of the industries themselves a similar
last month, and $464,284,000 on April 21, and even more extensive transition has oc1917. Demand deposits on April 20, 1918, curred. In steel and the machinery lines the
amounted to $430,780,000, as compared with pressure of Government requirements is be$400,246,000 on March 16, 1918, and $377,- coming greater, and while there is very sub014,000 on April 21, 1917. Time deposits on stantial demand for usual lines, the tendency
April 20,1918, totaled $19,755,000, as compared to subordinate all operations to Government
with $20,745,000 on March 16, 1918, and $34,- work is growing. So also in the chemical in461,000 on April 21, 1917. The amount "Due dustry, where the necessity of turning raw mato banks" on April 20, 1918, was $140,747,000 terials into the things needed by the Governas compared with $125,296,000 on March 16, ment has resulted in curtailment of other lines,
1918.
the enormous demands for heavy chemicals
being likely to keep the industry running at
DISTRICT NO. 2-—NEW YORK.
full capacity for the duration of the war.
A constantly increasing proportion of the
A large carpet manufacturing company has
capacitjr of manufacturing plants in this dis- turned about 90 per cent of its capacity to protrict is being utilized, directly or indirectly, for ducing duck for the Government. Under a
Government work and production of war sup- \recent order the woolen mills are to hold their
plies. Tangible evidence of the shifting of looms at the service of the Government until
activity among the various industries in New July 1, in order to insure adequate supplies of
York State is found in the report of the New cloth for uniforms, and even before this order
York State Industrial Commission, showing was issued the demand for civilian goods exthe changes in the number of employees in ceeded the available supply. Similar condicertain industries between February, 1917, and tions obtain at the cotton mills. In short, the
February, 1918, from which the following conditions outlined are general and the business situation may be characterized as one of
figures are taken:




MAY 1,1918.

FEDERAL RESERVE BULLETIN.

intense activity with war needs receiving first
consideration. Kailroad embargoes still constitute a retarding factor in production and
distribution. Collections are reported as being
very good.
Foreign trade through this port, aside from
Government shipments, is in decreased volume
because of extreme scarcity of available ship
tonnage as well as because of Government
restrictions on imports and exports. Imports
at New York for March, 1918, were only $98,344,252, as against $147,901,883 for the same
month last year, while exports were $251,325,182, as against $260,666,494 a year ago.
An agricultural census recently taken covering a large portion of the farms of New York
State, forecasts increased planting of wheat,
corn, barley, and alfalfa, about the same
acreage of cabbages and potatoes as last year,
and less planting of beans, hay, root crops for
stock, canning factory crops, hops, nursery
stock, and flowers. Reports from farming
sections are optimistic, though bearing frequent
reference to the probability of labor shortage
on the farms this season. In the dairy industry, one of the most important agricultural
activities in this section, distinctly unsatisfactory conditions are reported. Friction with
distributors, shortage of satisfactory labor,
high cost of feed and other factors, have narrowed the margin of profit to such an extent
that many dairymen have sold part or even all
of their herds. Keports from agricultural sections in northern New Jersey indicate increased
use of farm tractors as an offset to decreased
labor supply; grain conditions are not very
good, but prospects of a large acreage of potatoes.
Stock market transactions have been very
light, though the tone of the market has been
quite firm. Bond transactions have been extremely light except in the Liberty bond
issues which have been dealt in actively.
Prices have been fairly well maintained. Call
money has shown somewhat easier tendencies
with a stimulating effect upon the discount mar-




443

ket. Commercial paper has continued to sell
around 6 per cent and in good volume. New
capital issues have been much restricted, the
total output of railroad and industrial stocks,
bonds, and notes during the month of March,
as tabulated by the New York Journal of Commerce, amounting to only $74,874,000, compared with $312,115,000 in the same month
last year. Municipal financing has also been
restricted in volume.
DISTRICT NO. 3—PHILADELPHIA.

More and more of the industrial capacity of
the district is being devoted to the production
of materials essential to the conduct of the war.
This has been accomplished through the
extension of the system of Government priority
orders which control the distribution of raw
materials. Many concerns which have been
engaged in the production of nonessentials
have diverted their plants to the manufacture
of some kind of war material and supplies.
The gradual drawing away of labor into the
more essential war industries, in addition to
the difficulties in the way of obtaining supplies,
has reduced the output of goods not essential
to the conduct of the war.
Although buyers are displaying conservatism, the volume of sales in retail lines continues to be of very satisfactory proportions.
Business during the first part of April was
slightly behind last year, because of an early
Easter and bad weather. Since then, however, the quantity of goods sold has been running ahead of last year. Difficulty is experienced in obtaining goods of the better grade.
On account of their high wages, wage earners
now seem to be the principal purchasers of
goods, being able to buy goods which heretofore they have been unable to purchase. It is
reported that a number of proprietors of small
stores in one of the large cities in the district
have closed their stores and have taken employment in the shipyards and other places
where they can earn more money. Confidence
in the continued activity at the shipyards,

444

FEDEEAL RESERVE BULLETIN.

steel textile, munition and other manufacturing
plants, which have orders on hand that will
absorb the entire product for a considerable
time, is the basis for the belief that the present
demand for all kinds of commodities will be
sustained.
The anthracite coal situation has improved
somewhat. During March, production totaled
7,276,777 tons, the greatest recorded in the
histore of the industry, representing an increase
of 1,464,695 tons over February and 287,702
tons over March, 1917. On the other hand,
production of bituminous coal lias declined, car
shortage being the principal cause. There is
some improvement noted, however, since the
early part of April.
The production of iron and steel has increased considerably from the low point of
January, but shipments, except for the Government, are being made with difficulty. There is
some improvement in the coke situation.
Stocks of pig iron at steel mills are still at a low
ebb. The demand for steel for other than war
purposes has greatly diminished.
Cotton yarns are scarce and in good demand.
Prices continue high. Raw cotton has declined very sharply and the amount offered has
increased.
The wool market continues very strong, with
only small quantities of wool offered, which are
readily taken at advancing prices.
The advent of seasonable weather has been
accompanied by more spirited buying and continuation of the hardening tendency in prices
of textiles. It is stated that mills engaged in
the production of lightweight underwear are
booked ahead for 85 to 90 per cent of capacity
until November, this percentage covering both
Government and civilian business.
There has been very little building in this
district and little is contemplated. The necessity of conserving goods and labor to the utmost is being recognized, and there are very
few nonessential building enterprises in process
of construction.
Building permits during
March show a decrease of 60 per cent compared
with March, 1917.




MAY 1,1918.

Plowing is well underway. The condition of
wheat is reported as fair to good. The general
outlook for increased acreage is very poor; the
farmers can not secure nor keep help except at
exorbitant wages, which they can not afford to
pay. They are doing their utmost to overcome the labor shortage by the purchase of
labor-saving machinery. More than ever before, farms are financing themselves by cash
payments, due, apparently, to the prosperity
brought about by high prices during the last
few years. The use of bank loans or notes to
implement dealers to finance such transactions
has fallen off to a very noticeable extent. It
is estimated that there will be a 30 per cent
increase in the tobacco acreage in the district.
Bank clearings continue to run high, a reflection of the well-maintained business activity, although allowance must still be made
for the abnormal advance in commodity prices,
which naturally tends to enlarge bank clearings.
Banks and note brokers report that statements of their customers for 1917 almost
unanimously showed good profits, and that
assets in the form of accounts receivable and
merchandise on hand were larger than for the
previous year. The statements indicate that
business is being conducted on a more conservative basis than might have been expected
under war conditions.
Money rates in Philadelphia have continued
firm during the past month, the prevailing rate
for commercial paper being 6 per cent.
Rediscounts and loans to member banks by
the Federal Reserve Bank amounted to
$40,432,000 in March, compared with $37,898,000 in February, $45,987,000 in January,
and $3,009,000 in March, 1917. Acceptances
purchased by the bank amounted to $11,016,000 in March, compared with $6,030,000
in February, $9,786,000 in January, and
$4,610,000 in March, 1917. The greater part
of the borrowing has been in the form of
member banks' 15-day notes, secured by
Liberty Loan bonds or certificates of indebtedness.

MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

DISTRICT NO. 4—CLEVELAND.

The Government, in its conduct of the war,
of necessity exerts a directing influence on all
lines of finance, commerce, and manufacture.
The transition is being accomplished with little
loss of momentum, and business generally may
be said to be broadening and settling on a
satisfactory basis.
Manufacturing.—As a rule, steel and iron
industries are busy and on a more nearly
normal basis than they have been for months.
The major part of the output is supplied to
the Government, and customers7 needs are
allowed to wait. Cut off from their supply,
allied lines show a disposition to arrange their
business to secure Government contracts.
A scarcity of pig iron has resulted in the
resumption of production by a number of blast
furnaces. The demand for wire, nails, rails,
and steel bars is very strong. While steel
mills are not running at capacity, it must be
borne in mind that the productive capacity
has been greatly enlarged and the tonnage
output probably equals, if it does not exceed,
previous records.
Manufacturers of face brick, by reason of the
nonessential character of their products, say
that the immediate future of this industry is
somewhat uncertain. In the meantime, manufacturers are making various other burned
clay products.
Orders for pottery ware arc in fair volume
for domestic use. Inquiries are reported for
foreign shipments. Less trouble is experienced
in getting supplies, and business in this line is
considered fair.
Coal production is not believed to equal the
production for the same period last year. The
demand for coal is strong. While the price is
thought too low by some of the operators, it is
believed that all are doing their best to produce as largely as possible. Scarcity of cars
continues to handicap production.
Agriculture.—The scarcity of corn fit for
seed has been the occasion of much concern to
farmers, but, the shortage having been so
widely advertised, it is believed that great




445

care is being exercised and there will probably
be a sufficient amount of healthy seed to take
care of planting requirements. The corn
acreage promises to exceed previous records,
and the prospects for a good wheat crop are
reported very bright except in a few localities.
Farmers are purchasing improved farm
machinery and tractors, which will tend to put
larger areas under cultivation and will help
solve the farm labor problem, which is still
causing some uneasiness. Increased purchases
of fertilizer are reported, agricultural societies
are very busy, and it is expected that farming
will be carried on more intensively this year
than ever before.
Labor.—The opening of spring with its increased activities in all lines has tended to
make the labor situation more acute. The
demand of farmers for spring planting has
increased the shortage in this field of labor.
The construction and enlargement of munition
plants and increased outputs by manufacturers
generally has done the same in industrial
centers.
The exactions of labor are more pronounced
than formerly, and many increases in pay are
reported. After a labor supply has been
secured it is often difficult to hold, and a disposition to change is shown on very slight
provocation.
Mercantile lines.—Orders are reported in
large volume and a strong demand is apparent.
Some trouble is evidenced in getting goods
from the mills and in getting them delivered to
customers. This condition is said to have
shown some betterment recently.
In the retail line increased sales are generally
reported, distributed fairly evenly throughout
the line, except home furnishings, which do
not show proportionate gains. Merchants express surprise at large sales of pianos, victrolas,
and other luxuries, probably due to the increased wages of the purchasers and the increased number of women employed in gainful
pursuits.
Collections.—In a number of instances collections for the past month are said to be the

446

FEDEBAL RESERVE BULLETIN,

MAY 1,1918.

largest in the history of the concerns reporting, j of money and purchasing freely, the result
Considerable paper is offered in some quarters, | being that many stores are doing a full volume
but not in sufficient quantities to cause con- of business but dealing with a totally different
cern. On the whole, collections may be said class of customers. The volume in dollars and
to be very satisfactory.
j cents has increased total sales, but people are
Transportation.—Inadequate transportation | not getting as much for their money, and busifacilities continue to retard all lines of business \ ness is being done at a considerable increase in
and to attract the greatest attention. Some overhead expenses. One line of retail stores
improvement is discerned, and it is thought in in the district reports a falling off in the last
some quarters to have kept pace with increased i few months of $1,000,000 in sales of sugar
production. Eailroads are believed to have j alone. Stocks of goods are not large and are
not fully recovered from the strains of the being promptly distributed.
winter months, and to be handicapped by
Industrial lines are in especially thriving
scarcity of competent labor to make necessary condition, production only limited by the
repairs. Steamers on the lakes are ready, scarcity of hands.
awaiting the opening of navigation, which will
Agricultural preparations are in full swing
probably be about May 1.
| and crop preparations are well advanced. An
Money and investments.—Money is scarce | interesting hangover from last season is a
but not to an extent to be oppressive to the report that delayed picking of cotton in South
borrower. Concern as to the payments for Carolina was made as late as February and
the third Liberty loan apparently is allayed, March and the inferior cotton resulting from it
but payment of the forthcoming income taxes was sold at 20 cents a pound. The supply of
is giving considerable uneasiness to many. It j fertilizers is not equal to the demand; agriis thought that when the War Finance Corpora- j cultural implements, including plows, are in
tion is in operation the investment market will j demand; some manufacturers report they are
be strengthened.
j sold six months ahead. They find it difficult
Holders of securities and investment dealers j to secure the necessary material, owing parsay that they are pleased with the extent to | ticularly to large requisitions of the latter by
which the security market has withstood the ! the Government.
adverse conditions of the past month, and that | The United States Department of Agriculit shows a strong underlying foundation
j ture is appointing agents in all districts to assist
Building.—Building operations, as shown by | in furnishing and organizing farm labor where
reports of permits and valuations, continue to Ineeded. In this connection, reports are made
decrease both in number and amount. The j that wages are so high and living so easy that
line is unusually dull for the season, and little j it is encouraging loafing.
Weather conditions have been favorable
work is said to be in prospect.
until the last 10 days, when rather too much
rain has been reported, and rather severe cold
DISTRICT NO. 5—RICHMOND.
threatened damage particularly to fruit crops.
Reports of trade and general business show This, however, does not appear to have been
some divergence and fluctuations. Reports j serious. Cotton and corn planting are up to
from dry goods and department stores, dealers the average. Large and early crops of vegein jewelry and silverware, manufacturers of tables seem reasonably assured, and it is repianos and furniture indicate almost unani- ported that 6,000 carloads of truck are exmously that wealthier people are apparently pected from the Charleston district of South
economizing and cutting off luxuries, but there Carolina. From preparations being made, it
has arisen a large class of people, heretofore of is anticipated that under normal conditions
small means, who are now making a great deal crops in this section may eclipse all other years.




AY

1, 1918.

FEDERAL RESERVE BULLETIN.

447

Financial conditions in tlie district are satis- j usually active, and as a result they have already
factory. The volume of contemplated ex- j accomplished more and better farm work at
penditures in this district, even including re- i this date than in any previous year.
The tobacco market was easier on lugs, but
financing and refunding operations, has "been
good tobacco, which was very limited, was still
comparatively limited.
The banks of the district are holding or in demand at stiff prices. A great deal of the
carrying a relatively large volume of Govern- tobacco is still in the country barns, due to
ment securities, and while there is now some lack of season sufficient to handle it, the
indication of a moderately normal decline in weather being too dry.
Lumber prices still hold firm, with the dedeposits, the volume of deposits is considerably
above normal, and offerings from the district mand good, particularly for the larger sizes of
indicate that many banks are still holding timber. The greater part of the demand is,
outside purchased paper. This is now being of course, for Government use. Production
rediscounted to supply home demands. Agri- remains considerably below normal, while the
cultural demands are now developing and the volume of orders is in excess of production.
high cost of everything is doubling or trebling Labor conditions and equipments for shipping
these demands, but they are being well taken are handicapping the mills to probably 50 per
cent of the normal output. The outlook is
care of.
Strong appeals are being made in this dis- that the crop of hardwood for 1918 will fall
trict for the privilege of paying excess profit short 33J per cent due to labor conditions.
While the supply of cars has not been
taxes in installments. As the provision for
these payments by means of United States plentiful, the coal industry has not suffered to
certificates of indebtedness (available for the any great extent recently. There has been a
payment of such taxes) has been made only to | local shortage at various points. Labor cona limited extent, the privilege of payment in ditions in the coal district show little improveinstallments would greatly facilitate such pay- ment, and there is some dissatisfaction on
account of wages. A movement is on foot on
ments with a minimum financial strain.
The summary of conditions in the district is the part of some of the iron and steel companies
very satisfactory and the general outlook operating their own coal mines for their own
use to advance wages again, which is particuencouraging.
larly disturbing to the commercial coal-proDISTRICT NO. 6—ATLANTA.
ducing companies. The commercial mines sell
Farmers are planting sufficient food and feed- their raw product; that is, coal. The iron and
stuff to make them independent of all pur- steel companies use their coal in the operation
chases and furnish a surplus for Army use. of their plants and finished products, giving
Notwithstanding a shortage of labor, there has them a better margin of profit than the combeen an increased acreage in food stuffs, as mercial coal operators. The coal output, eswell as cotton. The farm work made prog- pecially since the 1st of April, has been disress during the first half of the month, but the appointing. The production of coal has been
cold spell toward the middle of the month less than half of that of the month of March,
checked the growth of plants and germination with no indications of improvement.
of seed. The damage from frost was rather
Business with the brick manufacturers is
small, except in Florida, where replanting of very unsatisfactory. The demand has fallen
cotton and corn may be necessary in some sec- off considerably, and labor and fuel conditions
tions. Cotton is up in the southern and central have so seriously affected the industry that
portions of the district, and corn is to a good there is only a 30 to 40 per cent of production
stand in some sections. The farmers are un- of normal capacity.




448

FEDEEAL RESERVE BULLETIN.

Hosiery mills report heavy demands, with
the year's output already sold. Overall manufacturers have booked more than a full average year's business for delivery to July 1, and
could easily double it if cotton mills could
deliver contracts under September and October. Consumption seems to keep pace with
purchases, regardless of heavy advances.
Wholesalers and jobbers report retail merchants eager and anxious to place orders for
fall merchandise. Business is extraordinarily
good for this season of the year, and collections
are highly satisfactory, with possible exception
of merchants in the turpentine country. The
turpentine operators are slow in meeting their
bills on account of inability to market their
product. Considerable difficulty is experienced
in obtaining merchandise, and wholesalers and
jobbers fear a shortage unless conditions improve considerably.
Report of business failures during March,
1918, as compared with March, 1917, is very
gratifying, the mercantile agencies reporting
but 93 failures during 1918, with 138 in 1917.
DISTRICT NO. 7—CHICAGO.

Reports from all over the district show that
the third Liberty loan is now being placed with
excellent prospects for an oversubscription.
Reports are that considerably more people are
subscribing to this loan than to either of the
other two.
The wheat outlook is very bright. To quote
the statement of one of the foremost grain men
in the United States, " There is no scarcity of
wheat the world over, but there is a scarcity
of transportation which has prevented those
countries having a large exportable surplus
from getting it to those countries which needed
it most. If the prospects of the American crop
are maintained at anywhere near present
promise, an eight or nine hundred million
bushel crop of wheat is not at all unlikely, with
the possibility of it reaching one billion or more.
If the latter figure should be realized and
Canada have above an average crop, therewill be ample supplies for our Allies and our-




MAY 1,1918,

selves for the next 12 months with a liberal
surplus to be carried over.77
General business conditions throughout the
district show a material improvement in many
respects over those of a month ago. There is
a decidedly better movement of cars, which
has had the effect of easing up country banks
who were compelled to carry their customers
on account of the inability of the latter to
market their products, and has effected a freer
movement of raw material, manufactured
products, grain, and live stock. Collections
have likewise improved. Weather has been
excellent, the recent rains having supplied
much needed moisture. Farmers throughout
the district are engaged in spring work. Corn
will probably go into the ground early in May
if not sooner. Planting of spring wheat and
oats is about completed. Acreage is probably
the largest ever known.
Money rates remain quite firm, with a disposition on the part of banks to discriminate.
Banking opinion is that the shock of the large
tax payments and installments on Liberty loan
subscriptions has been anticipated and absorbed by the certificates of indebtedness and
that no severe strain will be imposed upon the
banks through these payments.
Dealing in bonds and other investments is
practically at a standstill for the period of the
Liberty loan campaign. There is some investment money seeking short-term investments,
but new borrowers and long-term investments
are not much in demand.
The increase in agricultural operations and
acreage under cultivation has produced a very
strong inquiry for implements, which it is expected will tax manufacturers to the limit.
The difficulties confronted in the agricultural
implement line are those that confront ail
manufacturers to a degree, namely, scarcity of
labor, material, and transportation. Collections are good.
Auto concerns quite generally have been able
to adapt part of their plants to war work.
They are experiencing a sharp demand for automobiles, which, on account of restrictions, they

MA* 1,1918.

FEDERAL RESERVE BULLETIN.

449

Furniture manufacturers report difficulty
are unable to adequately supply. Second-hand
cars never enjoyed a readier sale. Credit con- and uncertainty about the railroad situation
and that the Government has in some cases
ditions are said to be excellent.
Building and construction work, save where relieved factories of lumber necessary in war
of direct aid to the Government in the prose- work. The draft has operated to lower retail
cution of the war, are being discouraged. It is volume. Married men of draft age hesitate
necessary in the Government scheme that all to replace worn-out furniture, and those marryavailable money, labor, fuel, and material be ing at this time as a rule do not go housekeepused to one end, and that operations of less ing.
pressing need be put aside. Direct efforts I There is good export demand for oats but
along these lines are seen in the recent order I little or none for corn, although it is expected
of the fuel administration curtailing the manu- that our allies will want large supplies of our
facture of ten principal clay products, among corn in the future. Domestic demand for
them brick and tile.
corn and oats is exceedingly poor, distributors
High-grade coal is being mined at a rate having bought freely during winter months in
which is limited only by transportation facili- excess of their requirements. Owing to conties. Railroad coal which central Illinois and gestion, their purchases were greatly delayed
Indiana furnish is not being produced at the and in consequence they are now, at the lightnormal rate, due to the reluctance of the roads est feeding season of the year, receiving great
to meet price increases recently granted by the quantities of grain which they are unable to
fuel administrator. A zone system has been dispose of. In consequence, a demoralized
established by the administrator which con- situation prevails in many localities and parfines movement of Illinois coal to a prescribed ticularly throughout New England.
territory which will do away with long haulDespite limitations on wheat and sugar
ing and should affect coal distribution favorably. distribution, wholesale grocers report a volume
Excessive demand maintains candy manu- of business in excess of last year. This is not
facture at the 80 per cent sugar allowance. so much due to increased tonnage as to increase
These concerns are in the enviable position, as in price. Wheat substitutes are in great
are not a few in other lines, of being able to demand. There is no particular tendency to
discriminate against slow-paying customers. speculate in foodstuffs as regulation of profits
Collections, therefore, are in excellent shape.
by the Government precludes the necessity
In the whisky business liquidation continues of anticipating advances. Collections vary
at very high prices. Stocks are diminishing from fair to good.
rapidly, and it is reported to us that in a short
Hardware houses dependent on building
time all distillers7 stocks will be in the hands and constructional lines for their business
of the retailer or consumer. Maltsters have are suffering from the present stagnation, and
large volume of malt on hand for which con- concerns doing a diversified business reporttracts were made during the embargo period. decreased volume in their building trade
They are now proceeding to make deliveries by department. In other branches, volume has
means of a limited daily allowance of cars.
increased to high proportions. Country colDry goods are scarce and prices continue to lections lag somewhat but city collections are
advance with no abatement in buying. Cotton reported excellent.
goods particularly have advanced to prices
There is greater activity looked for in the
ranging from three to four times the average leather market. Prices will probably not go
established in past years. Wholesalers look lower and when this fact is realized civilian
for some Government action toward stabiliza- j shoe manufacturers will no doubt put forth
tion of prices. Credit is having very close ' inquiries. Government shoe orders are being
scrutiny.
turned out as rapidly as possible. Some




450

FEDEKAL RESERVE BULLETIN.

MAY 1,1918.

the demand. Jewelry houses report large
sales of precious stones, a significant fact in
these times of heavy taxation. The same condition is reported in the other warring countries,
precious stones being constant in value and
easily concealed.
Government requests that looms and wool
stocks not at present used for military purposes
be placed at service of the Government until
urgent needs are provided for have effected a
further shortage in civilian clothing as well as
price increases all along the line. Pending
extent of Government requisition of wool, sales
and quotations are not being made in the
Hogs, j Sheep.
Cattle. | Calves.
principal markets. Climbing prices have not
.._.
|
82,387 794,386 216,068 checked demand, and orders for future delivery
1918.
274,025
74,837 496,512 I 309,860 promise a tight situation in the woolen in1917.,
190,430
dustry into the indefinite future.
Degree of volume in lumber business conClearings in Chicago for the first 17 business
tinues to be sectional and based on local con- days of April were $1,563,000,000, being
ditions. Some lumber is being used for repair $51,000,000 more than for the corresponding
and rebuilding, but requirements on account of i 17 business days in April, 1917. Clearings renew building are negligible. In general, vol- ported by 21 cities in the district outside of
ume is subnormal.
Chicago amounted to $323,000,000 for the first
Mail-order houses report a volume which is 15 da3^s of April, 1918, as compared with
about holding its own with past years. Taking $265,000,000 for the first 15 days of April, 1917.
into consideration the increase in price of all Deposits in the 12 central reserve city member
products, it is evident that there has been banks in Chicago were $864,000,000 at the close
some reduction in tonnage.
of business April 19, 1918, and loans were
Though piano and musical instruments are $601,000,000. Deposits show a decrease of
not in normal demand, the orders received are approximately $33,000,000 over last month,
sufficient to overwhelm the factories with their and loans an increase of approximately
restricted output. There is a shortage of $19,000,000.
veneer owing to the Government's action in
requisitioning this material. Labor is in short DISTRICT NO. 8—ST. LOUIS.
Conditions in this district continue to imsupply.
Government pressure on steel companies is j prove with the development of spring, and,
constantly increasing. The German drive has ! on the whole, the outlook is favorable.
stimulated demand for tonnage from this ' Manufacturing industries, as a rule, are busy,
source. Though domestic needs are great, | especially those working on war orders. The
demand is not strong, no doubt because such needs of the Government are being given first
customers realize the futility of placing orders. consideration, and manufacturers are more and
Collections are good and frequent wage ad- more adjusting their plants to take care of
Government contracts. Some plants which
justments keep labor satisfied.
Military wrist watches and ladies' bracelet heretofore were manufacturing "nonessentials"
watches continue to absorb the attention of are now engaged in the manufacture of those
watch manufacturers. It is impossible to meet things necessary for the prosecution of the war.

difficulty is found in the scarcity of labor.
Export trade finds ocean bottoms scarce. As
collections are having careful attention, they
are in fair condition.
Exporting of packing-house products continues to form the basis of an excellent business
in the live-stock industry. Domestic demand
is subnormal. Beef cattle has advanced in
price. We are told the greater portion of
hogs has been marketed and that the coming
pig crop will be large. The receipts of live
stock at Chicago for the four weeks ending
April 20, were:




MAY

1, 1918.

F3DEKAL SESEUVE BULLETIN.

451

Manufacturers, jobbers, and merchants gon- \dition for cultivation, and the planting of corn,
erally report a greater volume of business than cotton, etc., is proceeding rapidly. Some apat this time last year. However, in some lines prehension is felt in regard to farm labor, but
business is hampered by the extraordinarily steps are being taken to help out this situation.
high prices and the scarcity of merchandise.
The report of the St. Louis National Stock
Merchants in many instances are buying for Yards for March indicates increases in the sales
the future, apparently anticipating higher of cattle, hogs, sheep, horses, and mules, in
prices or increasing inability to get supplies. comparison with the same month last year,
Collections are reported to be good.
and increases in the receipts of all such live
The transportation situation has been im- stock, except sheep, in which there was a perproved during the past -month, but there are ceptible decrease. The supply of sheep is
still delays in the shipment of goods, both by j small in this district, and the price of them is
freight and express, and this is having a deter- correspondingly high. In comparison with
rent effect on business.
i the month of February this year, the report
There has been a decided improvement in ; indicates decreases in both the receipt and
the labor situation in this district, brought \ sales of practically all kinds of live stock.
about in great measure through the assistance j Reports from the leading cities in this disof representatives of the Government. Most j trict for March show some revival in building
of the strikers have gone back to work, and ] operations over the previous month this year,
there seems to be a patriotic disposition to j but in comparison with March last year perrefrain from disturbances during the war. ! ceptible decreases are shown.
Labor is well employed. Dae to good wages, I The postal receipts for March in St. Louis,
the lower cost of living, and satisfactory housing j Louisville, Memphis, and Little Rock all show
conditions, it seems easy to attract adequate j substantial increases over the previous month
labor for all demands in the district. It is j this year and also the corresponding month last
stated that St. Louis alone could take care of j year.
20,000 additional operatives without creating i As this report is written, attention is cena housing problem such as some of the other! tered on the flotation of the third Liberty loan.
cities have experienced.
This district has already reached and overExtensive precipitation throughout the dis- jsubscribed its minimum of $130,000,000, it
ferict during April has greatly helped agricul- !
being the first to do so.
tural conditions. Winter wheat, especially, j The demand for money has continued good
was greatly benefitted. and the outlook is for during the past month. The bank rate to
a yield considerably in excess of last year. The j
customers continues at 6 per cent in the centers
condition of winter wheat in the States within I
and slightly higher in the outlying districts.
this district on April 1, according to Govern- j
ment reports, was 92.3 per cent. This is 9.3 j Very few of the banks in the large centers are
per cent better than the 10-year average for ! in the market for commercial paper, though
that date. The condition of rye in this dis- jsome of the country banks are buying. The
trict on that date was 93.2, which is 7.4 per i rate now is generally 6 per cent for all maturicent better than the 10-year average. There ! ties.
was an unusually cold spell during the middle | On April 22 the Government withdrew apof the month, and it was thought that this \ proximately $20,000,000 of Government funds
would injure the fruit crop and early garden | from the banks in this district. This was acstuff, but apparently little damage has oc- complished with no disturbance to business,
curred. The ground generally is in good con-: due to the Federal Reserve Bank.




452

FEDERAL KESEBVE BULLETIN.

DISTRICT NO. 9—MINNEAPOLIS.

An unusually favorable spring has permitted
small grain farmers throughout the ninth district to accomplish an exceptionally large
amount of spring work. The acreage of wheat
has been substantially increased in Montana,
North Dakota, South Dakota, and Minnesota.
Especially in southern Minnesota and Wisconsin, farms that have not produced wheat for
many years will show varying acreages, which
as a whole will make an important contribution to the total production of the district.
As a matter of patriotic duty, farmers
throughout all of the Northwestern States have
been bending every energy toward putting in
a record planting and have been giving especial
attention to wheat in view of the peculiar importance to the Government of this grain.
Unusually favorable weather during March
permitted the farmers to go into the fields from
15 to 30 days earlier than in an average season. This enabled them to accomplish a very
large amount of spring plowing, and the wheat
went into the ground very early and under
good conditions as to preparatory tillage and
moisture.
The acreages of oats, barley, and rye will be
increased, as a general rule. Corn planting
will be less than in an average year on account
of the difficulty of obtaining seed, but will at
the same time be larger than was anticipated
earlier in the year. Recent rains in western
North Dakota and a timely snowstorm, which
extended over a large part of the central and
eastern portion of Montana have provided
additional moisture where it was needed.
The crop outlook, as a whole, is very encouraging, and if weather conditions are favorable
there is a prospect of very unusual crop production.
Practically all of the small grain has been
seeded in South Dakota and southern Minnesota.
In Montana and North Dakota more than half
of the seeding is completed, while in some localities the farmers are practically through with
their work except for the planting of corn.




MAY 1,1918.

Live stock in western North Dakota and
Montana wintered well and the outlook is for
a very profitable season. The sheep industry
in particular is enjoying great prosperity, and
at the present high prices the spring wool clip
will produce heavy returns.
Banking and merchandising conditions show
little change. Trade continues in satisfactory
volume, and the demand upon country banks
has been very active in consequence of spring
agricultural operations. Substantial assistance in meeting the problem of financing the
farmers in sections of Montana and western
North Dakota that suffered crop failures last
year has been afforded by numerous issues of
county seed grain bonds, the proceeds of which
have been employed in providing seed and feed
where required. It is improbable that any
farmer requiring assistance in his spring
financing will fail to obtain the funds needed
to put in such a crop as he can properly handle;.
Construction is limited in volume and is
chiefly confined to structures that are urgently
needed to take care of the current demands of
business. The subcommittee on capital issues
for this district is meeting with a hearty response in its effort to secure the postponement
of public financing that can be deferred, and as
a result the construction of a considerable number of proposed school and other public buildings that will make demands upon the labor
and material supply have been put off for the
present.
The third Liberty loan has met a hearty
response from people of all classes. Every
county in Montana oversubscribed its allotment, and the other States of the district made
a splendid record. While the figures are not
yet complete, it is probable that the distribution of bonds has been very much wider than
was the case with either the first or second
issues, while the totals for the district have not
only exceeded the allotment made by the
Treasury Department but have considerably
overrun the estimates made by those in
charge.

MAY 1,1918.

DISTRICT NO. 10—KANSAS CITY.

FEDERAL KESERVE BULLETIN.

453

Live stock.—A very strong demand has developed during the first half of this month for
Agriculture.—The wheat movement continues very small and is far below normal for fat cattle. Prices have advanced about $1.50
this time of year. Receipts, which for the past per hundred weight to the highest levels ever
month on the local market were only one- known at this time of year, although the refourth of those a year ago, are insufficient to ceipts have been liberal, those for March inkeep mills running up to their orders for flour. creasing one-third over the same month last
Also, local market shipments were but one- year. Normal supplies of thin cattle are going
fifth of those for March, 1917. Data obtained | back to the country, indicating that feeders
for 65 mills in this district shows they were ! generally have confidence in the future of the
running at but 56 per cent of capacity for the market, notwithstanding very high prices of
past month, because of the great difficulty in feed. The annual movement of cattle from
securing wheat. Their output, which de- Texas and New Mexico to the pastures of Kancreased one-fifth under the corresponding sas and Oklahoma began the early part of this
month last year, was largely taken over by the month.
Prices of hogs are well maintained at high
Government for the army and navy, or for
export to the Allies. Wheat stocks on the record levels for this time of year. Receipts
flour district markets decreased three-fifths at the six principal district markets for the
past month gained one-fourth over last year.
during the month.
The average weight of hogs on the local market
The movement of corn has been very large
for this time of year. Local receipts were four is about 20 pounds heavier than a year ago,
times greater and shipments more than double making a substantial increase in the supply of
those of March a year ago. Prices have been meats, but the demand has increased corremaintained on an unusually high level, due to spondingly anci reports of stocks of meat in cold
the large demand for corn meal and corn flour storage thow only moderate gains. Slaughteras wheat substitutes. All grain used for this ings at the chief district markets increased 22
purpose is selling higher than the government's per cent for this month compared with a year
fixed prices for wheat. The visible supplies of ago.
The movement of sheep to market continues
corn on district markets increased over onesmaller than last year, but for the past month
half during March.
The general condition of wheat is greatly receipts were only 3 per cent less than for
improved. Recent rains have greened up the March, 1917, compared with a 30 per cent decrop in many sections. The present prospects crease as reported for February. Prices have
with continued favorable weather conditions, advanced to new high levels.
Mercantile.—The matter of supreme imporare for a crop more than double last year's
tance in the dry-goods trade remains, and will
short yield. Although reports show a large
wheat acreage abandoned, principally in west- probably continue to be, that of securing merern Kansas and Oklahoma, the wheat outlook chandise. Prices during this period are a
on a whole is much better than was expected matter of secondary importance. Retail busifrom the unfavorable conditions last fall. ness is generally reported very good. GovernFields are being prepared for corn with spring j ment demands are, of course, given the preferplowing about two weeks ahead of normal and ence and filled first, and what remains of the
planting started in many sections. Although mill products is extended for civilian use.
some difficulty is experienced in securing seed Prices on all kinds of fabrics, wools, and staple
corn, indications are that the acreage will be cotton goods continue to advance. Manufacturing is active and collections are good.
at least as large as last year's.




454

FEDERAL RESERVE BULLETIN.

MAY 1,1018.

Purchasing in all the states wholly or par- producers. Wyoming operations took a drop
tially within this district during March was in March, due chiefly to severe weather condiover 3 per cent greater than during the same tions, which caused the general curtailment of
month last year, indebtedness decreased 2 per field operations.
cent, and payment activity was the same as for
Mining.—The zinc ore production of the
March, 1917. The number of business failures Missouri-Kansas-Oklahoma district for the first
for the first three months of this year, com- quarter of this year compared with the same
pared with the corresponding period last year, period last year, showed a decrease of nearly
decreased nearly 18 per cent, but the assets of 7 per cent, while the value of this output desuch failures were only 53 per cent of the liabili- creased about 40 per cent. The average price
ties involved, as against 55 per cent a year ago. for the metal as quoted on the market April 1
Lumber and construction.—There has been a was but $45 per ton as compared with $77.50
marked improvement in the demand for lum- on the same date last year. Zinc production
ber, and conditions on the market are reported has already surpassed the consumption. Thereas better. The general situation is a demand fore, selling prices have dropped $10 to $15
greater than the supply, which effects the j lower than the cost of production, a fact which
maintenance of high prices. The large volume manifests a radical change in working condiof building on the farms is great enough to tions, with a probable shutdown of many mines,
offset the lull in city building activities, where or the cutting of wages which seems impracticable in present war times.
operations continue far below normal.
Reports of the number of building permits
The output of lead ore for the first quarter
issued in 11 cities in this district for March was 28 per cent below last year's, and the
show a decrease of one-third under the same value showed a decline of nearly one-sixth.
month last year, with a cost estimated at a The top price quoted on lead the 1st of April
little over $2,000,000 compared with $4,000,000 was $85 per ton as compared with $115 a
for March last year. The actual percentage year ago.
decrease was 45 as against 55 for the entire
The mining situation in Colorado has shown
United States.
no tendency to improve during the past month.
Oil.—There was a large increase in the num- The three large plants now handling molybber of wells completed in both Oklahoma and denum ores are running at capacity and are
Kansas during the past month, attributed to reported to be doing excellent work. This state
the sudden end of the winter, thus allowing is now said to lead the world in the production
renewed activities and the finishing of many of this metal.
wells which had been held up by the weather
A reduction in coal prices has been effected,
conditions and needed but little drilling. which is usual at this time of year. The public
Kansas completions increased two-thirds and is being strongly urged to buy now and relieve
now production 162 per cent over February, a threatened condition during next winter, as
while Oklahoma showed a gain of three-fifths prevailed with the shortage of coal last winter.
in completions and 35 per cent in new proLabor.—The strike of local union labor, in
duction. Kansas7 new production was nearly sympathy with the laundry drivers who have
70 per cent larger than Oklahoma's. The total been out for two months, was brought about
monthly production for Kansas in March nearly as predicted last month. Thousands of union
doubled that of the same month last year, but men were out, including bakers, brewers, streetOklahoma's total production decreased about railwaymen, and the culinary and building
one-tenth. The long expected advance in the crafts, and business throughout the city was
price of Mid-Continent crude oil has finally greatly curtailed during the six-day period of
materialized, the price now quoted at $2.25 duration. A mutually satisfactory agreement
per barrel, with a further advance predicted by was finally reached and all strikers returned to




MAY

1, 1918.

FEDERAL RESERVE BULLETIN.

455

too much rain and warm weather is now needed
for growing crops. During the latter part of
April unseasonably cold weather has prevailed
and affected some linos, particularly retailers
of summer merchandise. For the most part,
however, dealers report the best spring trade
in their history, and reports received indicate
that business in leading lines continues active
and the outlook is encouraging. Mail-order
houses are receiving all the orders they can
handle, automobile dealers report an active
trade with the opening of spring, and all manufacturers of the district have in hand heavy
orders, and their operations are restricted only
by scarcity of labor and raw material. Except
in those sections of the West where there is
little trading in cattle and sheep, on account
of the drouth, collections are good.
The Liberty loan campaign in the district
started in a whirlwind fashion, and it is gratifying to report that the district has raised
over 50 per cent of its quota. The task of the
organization is less arduous than in the first
and second campaigns and the response to the
third issue is quite generous. The number of
DISTRICT NO. 11—DALLAS.
| subscribers will largely exceed the previous
Since our March letter the change of most issues, and indicates that our people are thorimportance in business conditions in the dis- oughly aroused to the situation.
trict, and certainly one of the most encouragMember banks report a good demand for
ing features, is the greatly improved agricul- funds. The recent rains have created an
tural conditions, as the result of good rains especially active call upon the banks in the
over practically all of the farming bolt. Our drouth sections for funds to finance crop prepcorrespondents advise that the drouth has arations for a new season and purchase of seed
been effectually broken in many localities pre- and supplies. The deposit of Government
viously suffering, and in fact good rains have funds for drouth relief purposes will be made
fallen in all sections, with possibly the excep- within the next few days and will unquestiontion of border points of Texas and New Mex- ably relieve conditions. Deposits show the
ico. While the moisture was too light to help seasonable slump, with loans and discounts a
the grain crops in the Panhandle and central proportionate increase. Banks are meeting
west Texas, it has been of much benefit in pro- the present heavy demands without disturbviding grass and stock water in the range ance to the financial situation, but new credcountry and started vegetation all over the its are closely scrutinized, and wherever posdistrict. It will be especially helpful in the sible accommodations are restricted to cuspreparation of ground for late feed crops, such tomers. The demand with this bank for the
as milo maize, sorghum cane, etc. As this is past 30 days has been quite heavy and our
written many localities in what is known as bills discounted for members show an increase
the black-land belt of north and northeast of some $4,000,000 within the month. Rates
Texas and southern Oklahoma have really had are steadv.
work under practically the same conditions
that existed before the strike. A small number
of additional disturbances were reported in the
district, which were of little consequence and,
therefore, quickly settled.
Organizations in the different States generally
report that the feared shortage of farm labor
will be successfully met. In some sections boys
are being urged to work on the farms in face of
the lack of men laborers. Wages are generally
higher than paid to the hands last year.
Financial.—Financial conditions continue
very satisfactory. Local clearings for March
were over $900,000,000, a gain of 66.5 per cent
over the same month a year ago. All of the
17 cities reporting in this district show an
increase in clearings over March, 1917. These
cities gained 60 per cent for the past month and
50 per cent for the first three months of the year
over the same periods last year, compared with
increases of only 5 and 4 per cent, respectively,
for the entire United States. Hates have remained firm and demands for essentials have
been satisfactorily taken care of by the banks.




456

Bank clearings, as reported by the principal
cities for March, show an increase of 20.2 per
cent over the same month last year.
There is little improvement in the building
industry, and while some recovery is noted
from the dullness of the winter and early
spring months, operations are still comparatively light, a condition unquestionably attributable to high prices and scarcity of labor
and inability to secure suitable construction
material. Building permits show an increase
in number of 46 and a decrease in valuation of
$931,656, or 48.3 per cent decrease over March
last year.
The recent rains have created an unusual
demand for farm help. There is also a good
demand for skilled labor, and capable men are
well employed. Except in the wages of farm
hands, the scale is unquestionably higher for
all other classes than ever before. The shortage of labor is especially felt in the lumber industry, and while mills report an adequate car
supply and lifting of embargoes, manufacturers are seriously handicapped by the labor
shortage. While the price of lumber is probably the highest in the history of manufacturers in this section, it is also true that the
cost of production is unusually high and has
more than kept pace with the increased prices,
so that mills are to-day operating on a smaller
margin than during the two previous years.
Post-office receipts at the principal cities of
the district for March show an increase of 48.8
per cent over March of last year.
Improved range conditions are reflected in
the live-stock situation, and it is anticipated
that there will be some trading in cattle as the
season advances. The dry weather has probably affected the live-stock situation more
than any other industry in the district, and in
large areas of the West ranchmen have sold
out their herds, or materially reduced the
same, on account of the high price of feed.
At the present time the commercial situation,
considering all factors and elements entering
the same, is quite normal and we believe good
business will obtain for some time. Of course,
the outcome of the season's crop, on which so




MAY 1,1918.

FEDERAL RESERVE BULLETIN.

much depends from a business standpoint in
this^district,|is problematical and any forecast
as to the yield at this time would be merely
guesswork. It is a fact, however, that the
recent rains have greatly improved conditions
and, in our opinion, the situation at the present time is good.
DISTRICT NO. 12—SAN FRANCISCO.

According to a recent jreport of the United
Stated FoodfAdministrator the retail prices of
16 leading commodities are lower in San Francisco than in any of the largest 7 cities of the
Unites States. Comparative prices given are
as follows:
Food.
Wheat flour (1/8 bbl.).
Rice(lb.)
Potatoes (peck)
Beans (lb.)
Onions (lb.)
Prunes (Ib.)
Tomatoes (No. 2 cans)
Peas (No. 2 cans)
Corn (No. 2 cans)
Salmon (No. 1 cans)...
Teaflb.)
Steak, round (lb.)
Milk(qt.)
Butter(lb.)
Cheese(lb.)
Eggs(doz.)
Food.
Wheat flour (1/8 bbl.).
Rice(lb.)
Potatoes (peck)
Beans (lb.)
Onions (lb.)
Prunes (lb.)
Tomatoes (No. 2 cans)
Peas (No. 2 cans)
Corn (No. 2 cans)
Salmon (No. 1 cans)...
Tea(lb.)
Steak round (lb.)
Milk(qt.)
Butter(lb.)
Cheese (lb.

San Francisco.
$1,470
.085
.337
.157
.027
.145
.130
.137
.137 |
.175'
.500
.263
.120
.550
.325
.400

New
York.
$1,760
.111
.652
.184
.058
.181
.165
.181
.184
.360
.135
.568
.340

Chicago. Philadelphia.
$1,620
.118
.411
.191
.055
.171
.167
.171
.173,
.2611
.555 I
.302
.123
.558
.388
.524

$1,670
.121
.567
.185
.053
.165
.170
.180
.187
.253
.595
.368
.133
.599
.370
.588
Washington.

St. Louis.! Boston. !
$1,640
.115
.547
.190
.051
.193
.158
.185
.185
.280
.650
.325
.137
.588
.363
.577

$1,680
.111
.500
.177
.047
.157
.161
.177
.165
.285
.667
.370
.142
.597

Much the same price conditions prevail
throughout this district as a natural result of
mild climate and productive soil.
The unprecedented drought throughout California and the southern part of this district
which continued until February gave cause for
serious apprehension lest food production should
be seriously curtailed. Since early in Febru-

MAY

457

FEDERAL RESERVE BULLETIN.

1, 1938.

ary, however, there have been numerous gentle
Building permits in 19 cities of this district
rains, bringing the precipitation in many places during March were $5,327,000, compared with
up to the seasonal normal. There is now excel- $6,468,000 for the same month a year ago.
lent promise for heavy crops quite generally This apparently indicates some disposition to
throughout this district.
postpone for the time being both new conCrop and live-stock conditions in the north- struction and repairs, in line with the views
ern part of the district, Oregon, Washington, expressed by Secretary McAdoo and the
and Idaho, have been and continue especially I Capital Issues Committee of the Federal Refavorable. What is said to be a world record serve Board, that only such building should
price for a carload of sheep was an auction sale i be undertaken at this time as is essential for
at 42 cents a pound at a recent fat-stock show health or reasonable comfort, or which would
at Salt Lake City.
contribute directly or indirectly to the proseThe Government report of April 1 as to wheat i cution of the war.
and rye. showing the percentage of normal, j Bank clearings for 20 principal cities in this
gives a good suggestion of general crop condi- I district show a considerable increase, $957,079,tions in the seven states of this district:
I 000 for the month of March compared with
! $839,064,000 a year ago.
10-year
• Statements as of March 4 show that deposits
1918.
average.
i and loans of national banks in reserve cities of
WHEAT.
i this district have made important increases
94 j over a year ago, the percentage of increase
92
93
88
Calif ornia
96 | at Seattle having been especially large.
97
Idaho
100
97
90
93

Nevada........
Oregon
Utah
Washington

98
95
95
92

EYE.

City.
96
97
96
96 San Francisco
Los Angeles
Oakland
i Portland
! Seattle
lumber industry of this district was re- I Spokane
at a high tide of activity. Due, how- Ii Tacoraa
Ogden
to an embargo against shipments to i Salt Lake City

Tdaho.
...
Oregon....
Utah
Washington....

97
100
90
94

The
cently
ever,
points east of Chicago and St. Louis and to
shortage of cars, the present situation is unfavorable and the outlook unsatisfactory.
Some shingle mills of Washington are reported
to be receiving only 17 per cent of their normal car requirements and lumber mills generally not over 40 per cent.
One important shipment from the Northwest
was 60,000,000 feet of large timber for Government ships to be built at eastern ports. This
went forward in solid trains, each carrying
1,000,000 feet, and reaching Philadelphia in
from 7 to 10 days, which compares with the
usual time of from 3 to 6 weeks.




Total

Mar. 4,1918. j Mar. 5,1917.

Increase.

18251,215,000 §228,697,000 $22,518,000
| 106,283,000 89,680,000 16,603,000
I 16,234,000 15,031,000 1,203,000
I 58,423,000 55,798,000 2,625,000
! 71,813,000 54,940,000 16,873,000
1255,000
| 29,053,000 29,308,000
8,747,000 4,386,000
13,133,000
j 8,140,000
9,108,000
1968,000
I 26,227,000 28,381,000 12,151,000
! 530,521,000

519,690,000

60,831,000

Per cent
increase.
9.3
18.5
8.0
4.7
30.7
1.8
50.1
110.6
17.5
11.7

i Decrease.

Loans and discounts.
City.
San Francisco
Los Angeles
Oakland
Portland
Seattle
Spokane
Tacoma
Ogdei.
Salt Lake City
Total

Mar. 4,1918. Mar. 5,1917.

Increase.

15179,293,000 5159,684,000 819,609,000
68,643,000 63,839,000 4,804,000
11,324,000 11,212,000
112,000
34,537,000 32,704,000
1,833,000
36,626,000 26,945,000 9,681,000
17,582,000 17,634,000
152,000
4,875,000
6,420,000
1,545,000
5,870,000
5,593,000
177,000
18,151,000 18,139,000
12,000
378,169,000

340,702,000

i Decrease.

37,467,000

Per cent
increase.
12.2
7.5
.9
5.6
35.9
3L6
11.3
.06
10.96

458

FEDERAL BESEEVE BULLETIN.

I, I9IS.

Imports and exports at Pacific-coast ports \ The service of the Federal Reserve Bank has
during March compared with the same month ; thus been extended widely throughout this dislast vear were as follows:
I trict, so that the member banks of all sections
and the customers relying upon them have
March, 1918.
benefit and protection. This is particularly
Combined
fortunate in view of the financial uncertainties
Imports.
Exports, .imports and
exports.
incident to a time of war. This service facilitates the processes of production and handling
San Francisco
828,372,487 IS15,312,702 $43,685,219
Southern California (Los Angeles)
885,291 I
501,884
I)387,175 of food stuffs and other work contributing to
Oregon (Portland)
153,700 !
71,782
225,482
Washington (Seattle)
21,740,504 ! 19,719,209
41,459,713 war preparation.
Total.
51,151,982 ; 35,605,637 86,757,619
There is some clearer evidence of individual
saving to help the Government. To forego
March, 1917.
the unnecessary expenditure of income in order
to lend to the Government for prosecution of
Combined
Imports.
Exports. imports and:
the war is now the duty, of all.
exports.
Obligation rests upon municipalities quite
San Francisco
813,012,021 89,635,809 $22,647,830
the same as upon individuals to use labor, maSouthern California (Los Angeles).
640,359
743,354
1.389,713
Oregon (Portland)
1'.
113,550
146,392
' 259,942
Washington (Seattle)
22,326,828 17,727,764 40,054,592 terials, and money as sparingly as possible.
Total
| 36,131,600 28,220,477
6-1,352,077 For a city to newly pave a street or to resurface
an old pavement at this time when the Nation's need of men and money is so great, or to
Petroleum production in California during I
March averaged 267,729 barrels a day, approx- ; employ men in any municipal service or underimately 5,000 barrels less than the "average j taking which is not vitally essential and which
daily output during February. March ship- j can be deferred, is to be as unpatriotic as an
nients averaged 284,795 barrels daily. This j individual who would spend his entire income
excess of consumption reduced stored stocks =regardless.of his country's need. It is a time
by 520,062 barrels, from 31,360,378 barrels on j for every curtailment possible of municipal exFebruary 28, 1918, to 30,831,316 barrels on i pense with corresponding reduction of taxation,
March 31, 1918..
! in order that men and money may be more
On April 1 the Salt Lake City branch of this | available for the war. No city can justify
bank opened, for business, its territory being ail j levying taxes to provide money for undertakof Utah, southern Idaho, and the eastern j ings when the Capital Issues Committee has
counties of Nevada.
: withheld its approval for an application to
The local board of directors is composed of I issue bonds for the purpose. To spend tax
William. A. Day, assistant deputy governor of j money in such undertakings instead of bond
head office, acting manager; L. H. Farnsworth, ! money would none the less consume labor and
E. T. Badger, G. G. Wright, and J. L. Rawlins. j materials. Municipal projects may well be
Other branches have previously been estab- •resumed when peace comes and when thouslished at Spokane, Seattle, and Portland in the i ands of discharged soldiers will be temporarily
order named.
\ without employment.




MYY 1, 2!>l5.

FEDERAL EESERVE BULLETIN,

459

largest gains through the shifting of credits in
the fund, while Chicago, Kansas City, St.
Total clearings and transfers through the Louis, Dallas, and Richmond show heavy degold settlement fund for the four-week period : creases,
from March 22 to April 18, 1918, were
Net deposits of gold in the banks' fund,
$3,385,792,000, averaging $846,448,000 per : principally by the Chicago, New York, Dallas,
week against a like average of $721,321,500 for and Philadelphia banks, amounted to $39,the preceding period, Operations during the ; 800,000, and net withdrawals from the agents7
last week of the period were the heaviest since ; fund to 13,000,000, resulting in a net aggrethe week ending January 24, 1918, which'was \ gate gain in the two funds of $36,800,000.
immediately following the final installment pay- • The combined banks' and agents' balances on
.
ment on the second Liberty loan. The in- i April 18 totaled $974,987,400, compared with
creased volume of transactions is due mainly j a like total of $808,247,000 on January 1, 1918,
to payment in New York exchange for both j a gain of 23 per cent since the first of the year.
Treasury certificates of indebtedness and Lib- | Below are given figures showing changes in
erfcy loan bonds purchased through Federal j the fund between March 22 and April 18, both
Reserve Banks outside of New York; also to !inclusive:
transfers of funds to New York for Govern-;
clearings and transfers through the gold-settlement
ment account. Total credit transfers to New Amounts ofFederal Reserve Banks, from Mar. 22 to Apr. 18,
fund by
York for the period amounted to $298,000,000, j 1918, both inclusive.
of which $130,500,000, or 43 per cent, were |
[In thousands of dollars.]
transferred during the final week.
|
I
Changes in the ownership of gold in the \
banks5 fund through transfers and settlement j
amounted to 3.08 per cent of the total obliga-: Settlement of—
Mar. 28,19.18
4,
tioiis settled, as against 3.31 per cent for the i Apr. 11.1918
Apr.
1918
Apr. 18, 1918
preceding four-week period. The large ratio !
218,944 ; 357.883
Total
3,027,929
for this period is caused by the gain of §77,- ; Previously reported for 1918
630,319 ! 803', 732
7,994,025
900, 000 in. ownership of gold by the New York •
849,263 i 1,161,595
Total since Jan. 1, 1918
! 11,021,954
Total for 1917
! 24,319,200 2,154,721 i 2,835,504.5
bank resulting from net increases through
transfers of $243,000,000 against net losses •
Clearings and
transfers.
through settlements of 8165,100,000. Net
changes in the ownership of gold since the com- i
Total for 1918 to date
. .
12,183,549
27,154,704.5
omencenieiu of the operation of the fund, May • Total for 1917
5,533,966
Total for 1916
1,052,649
20, 1915, to April 18, 1918, amounted to 1.25 : Total for 1915
Total clearings ami transfers from May 20,1915, to
per cent of the total obligations settled during .
Apr. 18 1S18
. ..
45,924,868. c
the period. New York and Boston show the 1




GOLD SETTLEMENT FUND,

460

FEDERAL RESERVE BULLETIN.

1918.

Changes in ownership of gold.
[In thousands of dollars.]
From Mar. 22,1918. to Apr. 18,1918, both
inclusive.

ilTotal to Mar. 21, 1918.

Balance to !
credit Mar. j

Federal Reserve Bank of—
Decrease.

Boston
New York....
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas.
San Francisco..

Increase.

648,401

648,401

Increase.

47,340
10,756
49,238
46,899.5
21,842.9
12,459
84,273
36,215.4
11,714
50,372.8
23,672.7
10,836

111,267
9,953
48,803
98,431
43,449
21,356
71,656.
33,136.
83,204

•I|

pluS

66,990
88,670
51,164
41,289.5
7,501.9
12,635
59,093
18,368.4
7,480
29,975.8
6,918.7
15,533

I 405,619.3 ; 405,619.3

Decrease,

19,650
77,914

deposits of
gold since
that date.

38,813

648,401

Total

Total changes from May
20,1915, to Apr. 18,1918.

570,487

5,610
14,341

Increase.

90,258
105,657
48,979
73,251
25,602
17,122
51,259.5
16,382.5
87,901

176

25,180
17,847
4,234
20,397
16,754
104,363

104,363

574,875 J

574,875

Gold settlement fund—Summary of transactions from Mar. 22, 1918, to Apr. 18, 1918, both inclusive.
[In thousands of dollars.]

Balance
last
state-

Federal Reserve
Bank o—
f

Gold
with-

Gold

1918.
44,544
24,824
51,270
500
44,564.5 2,265
18,965.7 1,004.8
12,099
74,895
""*406""
33,169.9 1,200
4,114
38,643.4 "*248."9"
11,432
440.3
21,683
120

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total.,

10,204.5 I 6,179

2,796
5,932
5,568
4,600
3,882
1,310
9,259
236.5
600
1,978.3
6,081
3,773
| 46,015.8

Federal Reserve agents' fund—Summary

i Weekly settlements, Mar. 28, 1918, to Balance
Aggre- Aggregate
Transfers.
!
Apr. 18,1918, both inclusive.
gate with- deposits
in fund
drawals
and
and
transfers
of
transfers
from
Net
Total
Total I Net
to agent's agent's
April 18,
Debit. C r e d i t - debits.
debits.
credits. \ credits.
fund.
fund.
1918.

20,000
11,000
2,265
1,004.8
3,750
41,280
1,200
"*"248."9'
1,440.3
14,620
96,809

2,796
5,932
8,988
4,600
3,882
4, U0
50,658
4,245.5
7,600
11,978.3
13,681.
3,773

1,238
298,000

500
55,000
43,963
20,000
10,000

500 i
2,000
4,125
25,000 i

103,000
400
3,500
54,500
9,000
58,000

27,000 i

2,148
165,086
1,538
9.252
5', 023 ,
6,104 I
17,447
4,592 I
7,754 ;

218,439
1,022,821
308,281
248,814
145,234
95,831
414,847
207,182
109.508
111,973
67,739
77,260

237,351 i
857,735 !
354,170 :
262,704
138,893
91,882 ;
467,687 ;
189,735 i
108.774 !
146; 076 i
59,985 !
112,957 I

21,060
45,889
15,428
2,911
1,074
58,924
3,858
34,103
35,697

66,990
88,670
51,164
41,289.5
7,501.9
12,635
59,093
18,368.4
7,480
29.975.8
6,918.7
15,533

I 122,223.8 I 357,863 357,863 ! 218,944 ! 3,027,929 j 3,027,929 i 218,944 j 405,619.3

of transactions from Mar. 22, 1918, to Apr. 18, 1918, both inclusive,
[In thousands of dollars.]

Federal Reserve agent at—

Boston
New York
Philadelphia
Cleveland
Ridim.oTi(1
Atlanta...
Chicago
St Louis
Kansas City
Dallas
San Francisco
Total




.

...

Balance
last
statement
Mar. 21,
1918.
11,500
5,000
75,019
70,000
29,000
36,720
161,934.5
38,912.6
31,500
52,360
5,184
40,896
558,026.1

With- Deposits
: Balance
Gold
through
Total
at close of
Gold de- drawals transfers
Total
for
withwithbusiness
drawals. posits. transfer
from
drawals. deposits. Apr. 18,
to bank. bank.
1918.

3,900

1,666
2,000
1,000

1,000
5,000

2,000
2,000

20,666

;

10,500 :
•

2,800
41,499
4,009
7,000
10,000
7,600

""i'666"

76,808

14,500
90,630

3,750
40,880

4,900
2,000
2,800
42,499
4,009
7,000
10,000
7,600
1,000
81,808

20,000
10,500
3,750
40; 880

3,"666"
14,500
92,630

11,500
25,000
80,619
70,000
27,000
37,670
160,315.5
34,903.6
24,500
42,360
584
54,396
568,848.2

MAI 1,1918.

461

FEDERAL BESEBVE BTJLI«ETIN.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, MAR. 16 TO APR. 15,1918.
Items drawn on banks
in Federal reserve city
(daily average).

Items drawn on banks Items drawn on banks
in district outside Fedin other districts (daily
eral reserve city (daily
average).
average).

Number. ; Amount.

Number. < Amount.

Boston
New York
Philadelphia..,
Cleveland
Richmond
Atanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

4,488 ! $14,286,586
7,285 ! 64,702,885
17,711,567
14,208 !
4,727,406
2,342 !
4,618,269
1,361 i
2,951,870
1,865 !
9,955 ! 22,064,000
2,614 j
2,668 I
6,177,887
2,412 |
8,417,087
1 824 !
1,774,046
4,022 I
4,400,959

Totals:
Mar. 16 to Apr. 15,1918
Feb. 18 to Mar. 15,1918
Jan. 16 to Feb. 15,1918
Dec. 16,1917, to Jan. 15,1918.
Nov. 16 to Dec. 15,1917
Oct. 16 to Nov. 15,1917
Sept. 16 to Oct. 15,1917
Aug. 16 to Sept. 15,1917
July 16 to Aug. 15,1917
June 16 to July 15,1917
May 16 to June 15,1917
Apr. 16 to May 15,1917
Mar. 16 to Apr. 15,1917

55,034
51,408 i
46,207
48,549
47,678
47,574
40,591
36.306
36,727
38,476
37,898
33,767
31,162

Items handled by both i
bank and branches :
(daily average).
Number. ! Amount.

Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas.
San Francisco
Totals:
Mar. 16 to Apr. 15,1918
Feb. 16 to Mar. 15,1918
Jan. 16 to Feb. 15,1918
Dec. 16,1917, to Jan. 15,1818.
Nov. 16 to Dec. 15, 1917
Oct. 16 to Nov. 15; 1917
Sept. 16 to Oct. 15, 1017
Aug. 16 to Sept. 15, 1917
July 16 to Aug. 15, 1917
June 16 to July 15,1917
May 16 to June 15,1917
Apr. 16 to May 15,1917
Mar. 16 to Apr. 15,1917




356 j
549 =
556 ;

159,441,188
153,701,375
153,847,568
148,033,108
171,723,439
166,552,773
128,271,466
100,331.694
98,075,919
109,722,256
97,322,883
87,370,859
60.288,002

average).

I Number. I Amount.

Boston
New York
54,366,982 j
233,394 I
439,000 :
32,119 i

"2^438"|

2," 973," 9*18" j

3,888 |

897,563

7,793 I
7,700 !
7,128 I
7,718 I

8,042,076
6,413,071
5,836,958
3,402,035

49,989
78,799
48,101
29,475
29,495
16,011
36,444
15,309
17,644
24,470
16,850
24,571
388,058
369,898
325,301
359,067
334,787
325,690
293,742
251,061
243,625
255,039
250,241
238,288
231,777

41,036 I
46,427 !
22,395 i
23,339 |
26,017 j
12,651
23,898
12,544
14,033
18,595
14,389
16,182
271,506
259,531
227,312
253,458
240,756
232,723
212;935
182,191 j
175,625 I
182,622
179,193 I
171,093 j
168,607

Number.

85,637,561
37,066,805
3,417,008
13,598,701
7,858,588
2,535,466
5,601.000
3,646,692
1,354,074 i
9,896,576 !
4,973,631 I
2,615,860 I

98,201,962
113,134,162
80,248,466
89,065,135
84,440,761
64,296,210
47,476,204
41,323,621
40,353,278
41,004,720
38,599,461
36,473,163
32,666,959

j
!
!
i
i
j

Amount.

4,465
25,087
11,498
3,438
2,117
1,846
2,035
145
943
1,025
647
479
53,725
51,259
44,654
49,342
46,353
45,393
40,216
32,564
31,273
33,941
33,150
33,428
32,008

$6,039,750
14,898,788
12,202,826
3,581,127
4,243,958
2,972,045
1,210,000
1,415,823
1,751,302
3,245,046
1,161,795
669,231

i
!
I
I
i
i

Items drawn on Treasurer of United States Number
(daily average).
of member
banks in
district.
Number. I Amount.

825,903,897
116,668,478
33,331,401
26,274,216
16,720,815
8,692,775
29,314,000
12,703.260 j
9,283', 263 !
24,532,627 i
7,909,472 I
8,583,613

319,977,817:
321,805,317 !
282,785,364
292,r>85,856
314,623,152
283,938,810
220,732,251
182,303,483
176,410,219
197,489,674 !
174,236,737 !
160,680,956 i
127,648,503 i

53,391,691
48,556,709
42,852,372
52,175,578
58,458,952
53,089,827
44,984,581
40,648,168
37,981,022
46,762,698
38,314,393
36,836,934
34,693,542

i

j Number of
inonmember
' banks on
• par list.

I

27,540
3.577
'920
1,108
1,762
7.088
3; 101
443
I.o22
1,457
1,531

35,027,634
14,032,198
1,848,994
826,336
294,985
909,871
2,451,000
855,498
78,241
313,800
291,515
4,833,603 I

771 j
540 i
396 I
1,151 I
482 [
803 I
967 I
651 i
578 I

249
398
317
626
259
322
2,260
1,004
1,077
1,537
275
1,128

59,228
58,991
48,224.
38,130
33,806
30,426
26,797
23,402
19,533
19,100
16,344
15,925
12,582

31,503,675 !
25,827,757 :
21,316,033
21,116,293 i
27,179,053 i
17,406,074
13,518,566 !
11,006,515 i
9,701,569 !
11,637,800 !
4,414,508 I
3,597,865 i
2,643,408 !

8,059
8,013
7,972
7,909
7,823
7,826
7,747
7,718
7.683
7', 666
7.651
7; 634
7,625

9,525
9,425
9,319
9,268
9,321
9,210
9,052
8,934
8,837
8,805
8,789
8,926
8.607

413 I
680 I
6 2 7

•••

462

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANES.
During the month of March discount operations of the Federal Reserve Banks aggregated
$759,112,515, compared with a total of
$782,439,698 for February and an average of
$796,677,895 for the first three months of the
present year. The March total does not include the amounts of Liberty bonds and Treasury certificates purchased by the banks for the
temporary accommodation of their members
under so-called repurchase agreements. These
purchases totaled $1,022,717,880, of which the
New York bank alone reports $882,893,000.
Of the total discounts during the month
under review, $307,620,540, or over 40 per
cent, was represented by paper secured by
Government war-loan obligations. Discounts
of member banks7 collateral notes secured by
eligible paper amounted to $66,367,592, the
New York and Chicago banks accounting for
$61,685,646, or over 92.9 per cent of the total.
Acceptances discounted during the month aggregated $18,727,018, trade acceptances in the
domestic trade amounting to §12,312,565 and
like acceptances in the foreign trade to
. $3,419,482.
Discounts of customers' paper not secured
by Government war obligations aggregated
$369,392,336, the New York and Richmond
banks alone discounting about 223 millions of
this class of paper. About 42 per cent of the
total paper discounted during the month was
handled by (he New York bank, and about 20
per cent by Richmond. Fifteen-day paper, i. e.9
paper maturing within 15 days from date of
discount with the Federal Reserve Banks,
aggregated 597.7 millions and constituted over
78 per cent of the total, while agricultural
and live stock paper maturing after 90 days




amounted to 7.7 millions, or slightly over 1
per cent of the total discounts for the month.
Discounted bills held by the Federal Reserve
Banks on the last Friday of the month aggregated 583.2 millions, as compared with 509,5
millions on the last Friday in February and
20.1 -millions at the end of March, 1917. Of
the total discounts on hand bills, including
member banks7 collateral notes, secured by
Government war obligations, constituted 303.9
millions, or over 52 per cent. About twothirds of the discounts held by the New York
bank was paper directly traceable to war loan
transactions, this share being as high as 82 per
cent in the case of the Boston bank. The
totals given are exclusive of about 233 millions
of 15-day advances on Treasury certificates
and Liberty bonds, reported to the Board as
temporary investments in Government war
securities and accordingly included with other
more permanent holdings of Government
securities. Trade acceptances on hand aggregated 21.8 millions, of which 17.2 millions
represented domestic and 4.8 millions foreign
trade transactions. Agricultural and live
stock paper, nearly one-half of which was held
by the Kansas City bank, amounted to only
31.7 millions and constituted less than 8 per
cent of discounted bills on hand.
During the month the number of member
banks increased from 8,031 to 8,083, all the
Federal Reserve Banks, except Kansas City,
showing an increase in membership of State
banks and trust companies.
The total number of banks accommodated
during March was 1,568, or 19.3 per cent of the
total, as compared with 315, or slightly over 4 per
cent, for the corresponding period a year ago,

MAY 1,1918.

468

FEDEBAL BESERVE BULLETIN.

Bills discounted during the month of March, 1918, distributed by classes.

Customers' I
paper secured;
by Liberty |
bonds or

Federal Reserve Banks.

Member banks' collateral
notes.
Trade

•
•

United States,
certificates of

c e r | ^ s o
[indebtedness.

i
896,879 i
"I 19', 088,300
!
j 2\ 694,060
! 4, 889,879
! 23, 458,038 ;
30,000
I
I 2. 273,457 :
1,276,568 :
5.050
io;ooo
135,509
38,009

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total

I

62,795,749

;

Otherwise
secured.

Total.

I

$8, 132,600
i4s; 688,220
745,100
828,000
14, 959,600
980,400
149,588
498,983
20, 70,000
2, 205,900
11',795,800
12, 770.GOO

$735,000 l
37,308,906

244,824,791

66,367,592

k

All other
discounts.

30,000
20,000 i
1,171,500
24,376,940 j
50,000 i
326,960 :
1,379,186 :
969,100

$10,610,840
111,533,024
17,020,113
29,964,795
111,946,677
8,402,594
10,225,451
16,369,571
1,934,704
27,448,224
7,341,483
16,594,860

$29,816,321
321,342,092
29,416,927
45,486,087
151,386,585
16,984,180
39,566,446
40,403,410
2,346,072
31,903,838
20,436,654
30,023,903

115,732,047 ; 2 369,392,336

759,112,515

$1,441,002
4,723,642 ;
957,654 ;
1,773,41.3
1,002,270 :
1,399,686 ••
541,010 .
2,208,288
9,358 :
860,528
194,762
620,434

1
2

Including §3,419,482 in the foreign trade.
Includes 82,995,971 of bankers' acceptances, and $607,200 of nonmember banks' paper rediscounted for member banks, but excludes $5,258,670
oi bill of lading drafts.
Amounts

of discounted -paper, including member banks' collateral notes, held by each Federal Reserve Bank
Friday in March, 1918, distributed by classes.

on the last

fin thousands of dollars; i. c , 000 omitted.]

Banks.

Member banks' collateral
notes.
: Customers' |
. paper se- !
cured by |
;
Liberty \
Agricultural \ Live-stock I bonds or j Secured by
Liberty
paper.
paper.
United Sates! bonds or
i certificates I United States Otherwise
secured.
! of indebted- j certincatcs
ness.
I of indebted-

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.

682 !
105 j
3,179
56
1.099
'426
815
974

65 i
1,781 i
14,477 I
4,397 !
3,433 !

Total.
Percent

7,376
1.3

24,300
4.2




-I36 i
5
21
121

"- Includes S2S6.831 in the foreign trade.

44,736 i
86,319 !
14,322
6,431 1
6,486 !
1,131 ;
6', 364 •
1,971
136 :
367 !

132
401
..
168,416 :
28.9 i

4,368
76,649
7,507
4,215
7,819
3,704
11.590
25
5,743
8,283
5,580
1B5,483 j
23.2 I
2

555 i
15,292

8.007 I
45 !
848
287

25,064
4.3

Trade acceptances.

1

All other
discounts.

Total.

2 5,400
1,171
3,856
1,490
898
526
2.973
' 28
1.630
15
1,823

8,114
64,257
8,383
* 24,664
19,983
7,748
18,961
15,367
2.204
9; 047
4,439
16,644

21,778 i
3.7 j

200,811 !
34.4 I

1,968

Includes ^4,35? ,468 in the foreign trade.

i
.;
I
!
i
I
j

59,741
247,917
31,419
39,225
36,481
13,707
37,837
32,067
5,273
32,338
18,368
28,855
583,228
100.0

464

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board,
or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions.
Bankers' acceptances.
Date.

1915.

Feb. 22.
Apr. 5 . .
July 3 . .
Oct. 4 . .

393,000
3,653,000
A,342,000
9,000,000

1918.

Jan. 31..
Fob. 28.
Mar. 31.

87,820,000 I
5,267,000 i
4,898.000 i

810,000
132,000

7,160,000
13,572,000
18,921,000
21,782.000

362,000
473,000
471,000
712.000

822,000
3,262,000
11,830,000
9,944,000

34,625,000
20.328,000
30;390,000
14,987,000
8.163,000

2A0,259.000 :
252,747)000 i
275,144,000
1

Amounts

i
I
I
i
!

18,224,000
1,502,000
16,830;000
689,000
3,333,000 I 38,082,000
2,193,000 | 21,708,000
3,179,000 I 20,137,000

5,547,000 ! 3,522,000
1,648,000 S 3,856,000
1,360,000 I 1,884,000

22,099,000
28,419,000
31,779,000

8722,000
3,422,000
2,306,000

23,838,000
39,030,000
67,633,000
72,542,000

121,154,000
82,026,000
184,785,000
173,171,000
266,853,000

4,585,000
1,144,000
4,660,000
6,942,000
6,383,000

125,739,000
83,170;000
189,445,000
180,113,000
273,236,000

6,947,000 i 278,374,000 6,363,000
7,097,000 . 293,767,000 ! 5,456,000
8,562,000 318,729.000 118,015,000

284,737,000
299,223,000
326,744,000

3200,000
3,805,000
2,286,000
7,657,000

of bills discounted and acceptances and warrants bought 63/ each Federal Reserve Bank during
tributed by maturities.

Boston
Now York...
Philadelphia..
Cleveland
Richmond
Atlanta..
Chicago
«
-r !
•_
St. Louis
Minneapolis..
Kansas~City - Dallas
San Francisco
J

Total
Pe r cent

.•

$15,523,870
268,804,421
23,716,864 I
30,690,938 !
144,532,407 j
12,312,152
.1 27',128;891
'
on
i,«o
rn^?
30,148,597
413.879
11,346', 374
13,029,562
20,036,866
: 597,684,821
•

Acceptances.' Warrants, j
$186,455 ;
450,295
168,000 i
:
258,682 .
161,000
260,755 :
26,434

Total.

;

Discounts.

815,710,325 • $1,817,825
269,254,716 !
7,230,279
23,884,864 i
1,190,150
30,690,938
2,911,096
144,791,089 ;
1,946,053
12.476,152 •
954,161
27,389,646 ;
1,847,126
30,175,031 i
1,691,306
413,879 :
270,221
11,346,374
2.549,903
13,229,562 I
l'581,394
20,059,822 '
907,395

200,000 .
22,956 i.

599,422,398 !
61.8
i

1,737,577

I Discounts.
!
j

Acceptances, j Warrants.

!
j

84,233,977
16,584,421
2.060,439
4', 453,636
2,355.067
2.073; 700
5,706,150
4,204,190
1,040,431
7.554,587
2,575,439
2,361', 907

83,573,832! !
13,145,333
5,257', 612 =
8,639,457 j
2,554,819 !
4,238,441 !
7,538,997 '
3,208.322:
7,514,712 :
6,721,614
2,325,000 •
3,713,606

;
i

55,204,004 |
i

.8,431,755 I

!

:

;

i
!
:

March, 1918, dis-

30-day maturities.

24,896,909

60-day maturities.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

S93,000
11,593,000
9,770,000
14,373,000

Includes $7,992,000 of acceptances in the foreign trade.

Discounts.




,
,
,

Total acceptances.

23,838,000
38,308.000
64,21i; 000
70,236,000

15-day maturities.

Total
Per cent

Total.

Trade acceptances
bought in
open
market.

$93,000 !
11,593,000 I
9,770,000 i
14,373,000

6110,000
161.000
343^000

66,803,000 I
43,979,000 I
108,597,000 !
131,997,000 !
227,717.000 i

1917.

Jan.1
Apr. 2
July 14-16.
Sept. 2 9 . . .
Dec. 3 1 . . . .

Private
banks.

15,494,000 !
21,000,000 i
32,989,000 :
37:798,000 ;

1916.

Jan. 3..
Apr. 3.
JulyS.
Oct. 2.

Nonmember | Nonmemtrust
! ber State
companies.
banks.

Member
banks.

Foreign
bank
branches
and agencies.

Acceptances. Warrants.
$479,228
5,292,766 \
159,000
192,793
1,403,500
764,254
5,241,893
261,184 i
100,000 1
4,077,820 •!
1,025.000 I
538;994 j
19,536,432

$63,000

$2,297,053
12,523,045
1,349,150
3,103,889
3,349,553
1,781,415
7,089,019
1,952,490
370,221
6,627,723
2,606,394
1,4

63,000

44,496,341
4.6

90-day maturities.
Total.

Discounts.

Acceptances. Warrants.

37,807,809
29,729,754
7,318,051
13,093,103
4,909,886
6,324,826
13,245,147
7,412,512
8,555,143
14,276,201
4,900,439
6,075,513

§7,882,753
28,710,462
2,440,739
7,112.448
2,437; 356
1,615,624
4.374,888
3,680,650
330,321
7,149,168
1,849,818
6,060,373

86,834,640
56,962,448
6.988,531
7; 887,880
2,415,499
1,241,471
19,922,732
3,431,740
2,575,368
1,898,912

12,625 j 123,648,384
12.7

73,344,800

115,382,895

812,625

Total.

5,223,676

317,916
17,916

Total.
314,717,393
85,672,908
9,429,270
15,000,328
4,852,855
2,857,095
24,297,620
7,112,390
2,905,689
9,048,080
1,867,734
11,284,049
189,045,411
19.5

465

FEDERAL RESERVE BULLETIN".

M A Y ! , If I P.

AmouvAs of bills discounted

mid acceptances and warrants bought by each Federal Reserve Bank during March, 1918, distributed by
maturities—Continued.

Over 90-day maturities.
Dis- ! Acceptcounts. ; ances.

Per cent.

Total.

Warrants.

Total.

!
! 51,000
;

5787,
12,509
564,955
459,897
559,202
206,596
3,709,391
991,287
291,220
3,303,806
1.400,441
I!007,362

War- j
rants. ;

! Discounts.;

Dis- Accept- Warcounts. ances. rants. : Total.

Total.

Boston
New York
Philadelphi t
Cleveland
Richmond.
Atlanta
Chicago
St. Louis..
Minneapolis
Kansas Cit^
Dallas
*
San ITranciscG

! 3357,896 i 8429,932
! 12,509
i 8,735 556,220
: 317,969 ! 141,928
115,702 443,500
28,483 • 177,113
i 509,391 3,200,000
i 678,667! 312,620
: 291,220
i3,303,806
11,400,441 !
! 657,362 ; 350,000

341,320,408
321 1811,504,087
1321,342, 092 ' 75,850,840
397,192,932
j 29,416 — 13,129,363
42,546,290
16,862,068
! 45,486,
62,348,155
7,076,000
1151,386,
158,462,585
! 16,984, 180 ! 6,5S5,279 576,625 ! 23,646,084
! 39,566,446 ! 36,164,377
75,730,823
! 40,403,410 ! 7,240,300
47,643,710
i 2,346, 072 I 10,190,080
12,536,152
i 31,903, 838 12,698,346
44,602,184
I 20,436, 654 3,550,000 17,916
24,004,570
! 30,023, 903 9,849,232
39,873,135

72.2
80.9
69.1
73.0
95.5
71.8
52.2
84.8
18.7
71.5
85.1
75.3

27.8
19.1
30.9
27.0

Total.
Par cent

.7,682,181 :5,611,313 : 1,000 13,294,494 1759,112,515 210,699,972 : 94,541 969,907,028
1.4
:

78.3

21.7

j

;.

Mulur-iila vf discounts, acceptances, and municipal

4.5

0.3

27.9
47.8
15.2
81.3
28.5
14.8
24.7

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

warrants held by each Federal Reserve Bank on Friday, Mar. 29, 1918.

[In thousands of dollars; i. e., 000 omitted.]
1 to 15 days.
Bills
discounted.

Accept-

39,221 i
140,873 I
15,559
18,731 ;
25,887
9,582
27,733
20,474
7(50 !
9,627 j
10,507
10,983

Tota-1.
Percent

Municipal
warrants.

S2,182
39,030
2,498
899

•9,937

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis....
Kansas City...
Dallas
San Francisco.

16 to 30 days.

00,048

811,403
179,909
18,057
19,630
20,678
11,546
30,657
21,364
1,459
10,105
12,755
16,456

791

1,930
2,924 i,
890 -.
.
699 .
478 .
2,248 .
5,473 i.
34

Accepttances
bought.

Bills discounted.

Total.

$7,023
27,236
2,464

380,019 j
40.5 !.

60,646

8,098
3,141
1,733
2,073
650
969 ,
2,019 I
1 607

4,381
2,780
1,166
324
3,991
927
4,702
1,183
4,469

Boston
"Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Eansas'Citv
Dallas
".
San Francisco
Total
Percent




j
j
|
j
I
!
j

Bills
discounted.

60) 638
10,905
l0;770
6,065
2,173 I
2,076 :
4,776 ;
1,907 •
10,333 :
3,240
8,351
157,110 i

Accept-

S3,976
20,897 !
9,759 I
18,100
3,810
2,749
11,500
3,479
9,314
10,979
1.625
110,157

Municipal
warrants.

Total.

$7,709
59,875
7,232
12,479
5,921
2,899
2,397
4,641
1,896
6,721
2,790
12,505

32,639
4,768

127,065
14,3

66,419

31 to 00 days.
i

Municipal
warrants.

61 to 90 days.

Total.

Bills
discounted.

$39,852
87,535
20,684
26,870
9,875
4,924
13,581
8,255
11,221
21,312
4,865
18,320

57,621 !
19,157 |

267,274 i
30.1

56,045 i

2,490
5,343
1.706
'730
4,524
2,799
903
4,892
1,847
4,033

!
I
'
i
i
j
'.
!

Acceptances
bought.

Municipal I
warrants, i

85,902
32,315
5,415
1,817 j
1,846
1,005
11,158
3,518
140
330

$13,523
51,472
7,905
7,160
3,552
1,736
15,682
6,317
1,043
5,222
2.333
8,028

3,995
67,441

Total.

487

123,973
14,0

466

MAY 1 , 1 9 1 8 .

FEDERAL RESERVE BULLETIN.

Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, Mar. 29,
1918—Continued.
Over 90 days.
Acceptances
bought.

Bills
discounted.
Boston
NewYork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Municipal warrants.

$13
1
J.
$1

56 !
.
3,]80 i.
27 j.
776 L
2,784 I.
1,591 j.
1,019 !
.

Total..
Percent

i Bills
AcceptTotal. ! disances
i counted. bought.

118 ;
1j
43 !
57 !
3,180 !
27 !
776 i
2,784 !
1,591 i
1.019 !

859.741
247; 917
31,419
39,225

Municipal warrants.

Total.

13,707
37,837
32,087

5,273
18,368
28,855

Bills Accept-iMunicidisances ipal war- TotaT.
counted bought. ! rants.

$72,487
378.804
53;859
66,139
46,069
21,162
65,497
40,604
16,395
46,144
24,334
56,328
529

82.4
65.4
58.3
59.3
79.2
64.8
57.8
79.0
32.2
70.1
75.5
51.2

17.6
34.6
41.7
40.7
20.8
35.0
42.2
21.0
67.8 I
29.9
22.5
48.8

887,822
100.0

$12,746
130,887
22,440
26,914
9,588
7,417
27,655
8,537
11,122
13,806
5,480
27,473

9,491 i 583,228 1304,065
LI i

9,490 :

Percentages.

Total.

65.7

34.2 I

0.2

2.0

100.0
100. C
100. C
100.0
100. G
100, e
100.6
100. G
100.G
100.0
100. e
100. G
100. c

Liberty loan bonds and United States certificates of indebtedness purchased under repurchase agreements durivsi the month cf
March, 1918.
[Figures included with United States Securities in table showing total investment operations.)
Boston.
Liberty bonds
Certificates of indebtedness

;

Total

I

$165,000
305,000

Philadelphia.

New York.

8882,893,000

Cleveland.

Atlanta.

Chicago.

81,045,000
; $6,911,900
8,299,500 §23,728,000 5,483,000 1887,283,360

470,000 j 882,893,000

9,344,500

23,728,000

12,394,900

87,283,360

Minne- I
apolis. i

Total.

$1,576,600 !
S9,698,50G
5,027,500 I 1 1,013,038,366
6,604,100 1 1,022,717,866

1 Includes Liberty bonds purchased by the Chicago bank under repurchase agreements.

Total investment operations of each Federal reserve bank during the months of March, 1918 and 1917.

Federal reserve bank.

Boston
NewYork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, March, 1918
Total, March, 1917




Bills discounted
for members and
Federal
reserve
banks.

Bills bought in open market.
Bankers'
acceptances.

Trade
acceptances.

Total.

$29,816,321 §11,126,488
$377,599 $11,504,087 i
.
321,342,092 74,845,368 ' 1,005,472 75,850,840 |
.
29,416,927 13120363 |
9,000 13,129,363 |
13,120,363 |
9000
9,0
,9,363 .
45,486,087 16,689,727
2341 | 16,862,068
151,380,585
7,076,000 ! 172,341 | 7,076,000 |
'.....I
16,984,180
6,585,279
6,585,279 j
39,566,446 36,138,360 ;
26,017 36,164,377 !.
40,403,410
7,240,300
7,240,300 |.
2,346,072
10,190,080 ,
10,190,080 '.
31,903,838 12,698,346 j
12,698,346 i.
20,436,654
3,550,000 i
3,550,000 i
30,023,903
9,849,232 ..
6,895,845 i 2,953,387
! 759,112,515
i 26,706,266

:

20(3,156,156 14,543,816
27,474,820 .
676,818

Municipal warrants.

City.

$14,000

Allother. !

862,625

17,916 ;

210,699,972
31,916 i
28,151,638 : 1,021,383 !

i Includes $982,715 in the foreign trade.

State.

Tola),

876,625

17,916
62,625

94,541
1,031,028

Mir 1, 19?. 8.

467

FEDERAL RESERVE BULLETIN.

Total investment operations of each Federal reserve bank during the months of March, 1918 and 1917—Continued.
Total investment
operations.

United States securities.
Fodera. reserve bank.
3 per

p
c* n t
e

cent.

Boston
No w Yor k
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St.
L
o
M
Minneapolis.
Kansas City
Dallas....
San Francisco

!

u

i

Total March, 1918
Total', March, 1917

I
;
!
!
!

s

:
I
|
I

i

,
!
J
i
j
I
!

;

•

i

!

United
States
certificates
of indebtedness.

1-year
Treasurynotes.

$155,000

Total.

8330,000

939,130,000
9,971,000
23,833,500

-

! 5105,000
940,009
|
j
50
i 1,047,000 5,896,100
83,050
!!
j 175,600 1,411,000 ;
I
|
!

:
i 1,327,850
• 88,565,510 : 550,000 |
1
3

4 per
cent.

5,521,500
187,388,380
22,854,500
313,000
741,000
1,000,000

8,495,750

25,000 j SI, 882,000

March,
1918.

March,
1917.

$485,000
41,805,408 $11,313,775
939,130,000 1,336,322,932
8,847,997
53,562,290
8,720,424
11,016,000
88,181,655
6,078,665
23,833,500
158.462,635
8,557,926
50
36;110,684
4,043,195
12,464,600
6,932,296
163,201,233
87,471,410
2,439,062
47,643,710
2,951,062
36,977,252
24,441,100
1,577,659
44,915,184
313,000
1,638,073
24,745,570
741,000
3,311,309
40,884", 275
1,010,600

1,091,082,860 1,100,906,260 2,070,813,288
| 10,522,510

66,411,437

Includes United States Bonds purchased under repurchase agreements.
Exclusive of purchases of U. S. certificates of indebtedness.

Vrviled States securities held by each Federal reserve bank on Mir. 30, 1918, distributed by maturities.
|
;
Federal reserve
banks.

Boston.
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

United States bonds with circulation
privilege.

United States securities without circulation privilege.

2 per j
United
per cent
per cent per cent
2 per cent cent Pa- j 3 per cent 4 per cent 3 conver- 3 per cent 3 per &Liberty || 4Liberty States ceri-year
cent
consols namas of: loan of
tificates of
loan of sion bonds Treasury loan of loan of I loan of
of 1930.
1936- j 1918.
1925.
of 1946-47.
notes.
1961.
1947. I 1942-1947. indebtedness.
j
$750
S529,000
|
50
$50, 000
1,255,400
;
549,200
$100
!
'2,'653,"666 82,378,200
414,800
' 915,100 i 237,000
: 640,600 j 21,000
10,300
! 1,862,500 367,300 2,581,
1,768,000
427,400
!
100
1,080,
1,153,300
i 323,050 16,260 1,199,
114,800
""2Q6,"25o'
!
838,500
7,155,850
22,240
825,000
i 2,450,900 281,500
1,233,600
; 2,428,750
|lo,777,650
1

:

945,400

7,563,840 ! 5,177,450

194,000
013,000
548,000
221,000
969,000
491,000
378,000
444,000
340,000
784,000
430,000
500,000

:
i
:
;
!

6,526,300 27,312,000 :

Total.

$3,320,772
189,010,500
14,896,350
26,080,110
3,226,800
7,652,850
46,697,400
3,677,400
6,937,490
2,835,500
13,040,690
2,394,500
1,693,500
7,093,100
398,500
4,366,000

$265,000
360,000 i $272,022
17,750 182,380,000
294,300
131,850 4,863,700 6,803,500
1,966,900
374,550 15,071,000
42,950
25,000
37,750
247,150 j 1,964,300 3,278,500
i 83,050 236,229,750
500 I

179,300
7,500
1,100 |
28,250 !

722,650
13,100
2,500
10,500

900 \ 2,959,300 | 8,361,872 251,374,750

325,999,462

Includes unpaid portion of Liberty loan bonds sold to individual subscribers.
Includes United States bonds purchased from banks under 15-day repurchase agreements.
Total t.-.u:tei States bonds with circulation privilege, $29,484,340. Total United States securities without circulation privilege, $296,535,122.




2

468

FEDERAL RESERVE BTJIXETIN.

MAY 1,1918.

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays,
March 29 to April 26, 1918.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]
New
York.

Boston.

Philadelphia.

Clcveland.

Atlanta.

Richmond.

San
Francisco.

Total.

6,635
4,757
4,867
4,958

28,727
29,885
31,570
30,056
31,100

489,948
483,780
488,762
488,829
486.820

9,855
25,366 i 11,749
25,625 ! 8,448
9,797
13,764 | 18; 337 :• 10,336
7,480 i 30,291 j 8,922
13,180 i 33,507 I 10,345

16,570
19,431
15,679
19,533
17.277

399,66F
381,163
407,971
413; 819
439.477

St.
Louis.

Minneapolis.

15,877
15,948
16,025
16,533
16.423

Kansas
City.

Dallas.

Ji
Gold coin and certificates in vault:
March 29..«
April 5
April 12
April 19
April 26
Gold settlement fund—Federal
Reserve
Board:
Mar. 29
,
Apr. 5
April 12
,
April 19
,
April 26
Gold with foreign
March 29
Aprils
April 12
April 19
April 26
Gold with Federal Reservo agents:
f
March 29
|
April 5
|
April 12
[
April 19
i
April 26
-i
Gold redemption fund:(
March 29
1
Aprils
!
Abrill2
j
April 19
|
April 26
j
Total gold reserves: |
Maxch 29
'
April 5
April 12
April 19
April 26
Legal tender notes,
silver, etc.:
Mar. 29....
Apr. 5
Apr. 12....
Apr. 19
Apr. 26
Total cash reserves:
Mar. 29
Apr. 5
Apr. 12
Apr.19
Apr.26
Bills discounted for
members and Federal Reserve Banks:
Mar. 29
Apr. 5
Apr. 12
Apr.19
Apr.26
Bills bought in open
market:
Mar. 29
Apr.5
Apr. 12
Apr.19
Apr.26
United States Government long-term securities:
Mar.29
Apr.5
Apr. 12
Apr.19
Apr.26




10,914
10,554
10,153
10,586
9,833

337,572
332,095
339,808
340,401
340,841

9,543 I 32,610
9,884
32,864
10,284
32,247
9,325
32,804
9,185 | 30,539
j

50,518
49,370
56,376
66,990
69,868

81,467
81,189
120,698
87,170
85, 774

50,985
48,731
46,853
50,754
43.393

37,628
44,513
34,739
36,662
49,733

3,675
3,675
3,675
3,675
3,675

.18,112
18,112
18,112
18,112
18,112

3,675
3,675
3,675
3,675
3,675

4,725
4,725
4,725
4,725
4,725

48,385
48,318
48,257
48,211

196,319
215,711
209,419
209,210
208,827

79,751
85,187
87,101
84,549
82,744

2,000
2,000
1,986
2,000
1,997

10,000
10,000
10,000
9,918
10,000

115,560
113,984
120,508
131,508
133,584

643,470
657,107

3,177
2,253
2,429
2,088
2,074

40,862
46,157
46,791
46,845
47,484

118,737
116,237
122,937
133,596
135,658

684,332
703,264
744,828
711,656
711,038

59,741
58,828
56,912
49,573
54,307
12,746
13,589
13,475
14,267
16,606

855
855
861
861
861

664,811
663,554

2,000
2,500 !
2,500
2,482
2,500

90,102
92,292
246
393
242
192
397

145,954 ! 163,889
149,977 j 171,831
150,413 161,856
150,785 164,485
141,497 177,683

6,227 i
6,265 !
6,361 i
6,290 !
6.435 '

6,585
6,609
6,726
6,746
(-.833

29,558
29,093
28,951
28,676

3,222
3,180
1,325
2,125
1.7G2

16,242 j 15,765
18,220 i 15,217
12,368 ' 10,519
13,682
17,695
11,156
16,680

53,937
36,841
43,738
56,272
71,325

29,486
23, 781
24,534
18,3(58
17,179

7,350
7,350
7,350
7,350
7,350

2,100
2,100
2,100
2,100
2.100

2,100 :
2,100 :
2,100
2,100
2,100

2,625
2,625
2,625
2,625
2,625

1,838
1,838
1,838
1,838
1,838

2,888
2.888
2', 888
2,888
2,888

52,500
52,50C
52,500
52,500
52,50C

41,047
40,613
37,577
36,941
33,408

39,536 ;
39,419 i
39,302 |
39,187 !
35,089 I

55,384
55,323
55,272
45,220
45,158

17,363
16,336
14,313
14,286
14,261

51,567
54,510
55,878
59,190
62,084

852,192
873,077
857,492
854,822
824,218

1,285
1,313
1,424
1,506
1,571

1,380
1,568
1,558
1,550
1,542

1,030 !
1,106 j
1,180
1,243
1,311

871
859
845
827
813

1,202
1,244
1,239
1,255
1,263

63
14
23
20
154

21,496
23,404
23,546
23,179
23,985

257,381
233,811
230,049
255,920
247,354

77,235
71,242
67,094
61,084
55,991

84,395
68,370
84,735
72,371
77,492
66,543 . 79,108
68,103

41,088
34,501
32,483
31,168
32,665

99,815
106,728
106,038
111,687
113,503

1,815,704
1,813,924
1,830,271
1,833,146
1,827,000

1,954
2,038
1,306
1,453
1,102

4,464
5,462
6,284
6,631
5,069

1,575
1 717
1,893
1,782
1,888

66,485
66,932
64,439
64,641
61,431

261,845
239 273
236,333
262,551
252,423

13,707
12,953
13,504
20,284
20,851

1, S37
1,837
1,837
1,837
1,837

1,575
1,575
1,575
1,575
1,575

29,374
29,204
29,093
29,976

39,495 165,223
40,304 158,749
42,902 148,414
36,063 ! 161,841
33,832 I 138,432

i,m i

308
1,218
1,138
1,077
1,028

1,189 '
1,411
1,109
1,409

53,988 i 64,531
56,744
64,894
50,797 ! 63,133
52,862 I 63,188
50,336
60,329

391

147,522
151,129
151,488
151,709
142,947

164,813
172,790
162,930
165,567
178,449

54,379
57,093
51,168
53,249
50,729

247,917
234,513
346,507
409,372
434,256

31,419
26,997
26,925
26,612
35,351

39,225
39,066
51,471
50,785
58.212

36,481
37,631
39.741
40,791
47,333

130,887
127,743
123,108
117,406
121,027

!
|
I
I
i

924
959
1,074
1,082
703

22,440
21,898
21,290
27,440
26,303

26,914
27,202
26,692
24,527
20,628

9,588
11,371
12,701
4,191!
5,177 1

1.618
1,606
1,604
1,598
1,594

5,539
5,514
4,907
2 939
2^029

1,568 I
1,152 j
1,075 |
924 i
1,450 j

7,788
7,788
7,788
7,788
7,788 i

371
387

1,233
1,233
1 233
1,233
1,233

I
i
|
I
|
!

j
j
i
!
i

j

!
|
!
|

149
303
413
145
235

!
;
!
!

629 !
619 I
361 !

81
63
69
319
392

2,361
2,451
2,500
2,624
2,709

392
301
303
404
360

58,358
63,508
64,724
65,158
63,945

78,810
72,959
68,987
62,866
57,879

69,008
68,977
73,000 i
67,162 |
68,464 j

84,476
84,798
77,561
79,427
82,690

43,449
36,952
34,983
33,792
35,374

100,207
107,029
106', 341
112,091
113,863

1,874,063
1,877,433
1,894,995
1,898,307
1,890,945

37,837
35,499
46,141
63,717
88,553

32,067
35,083
30,665
39,158
43,656

5,273 j
5,963 I
8,411 I
11,623 I
14,591 !

32,338
35,219
36,668
39,077
43,912

18,368
22,335
24,409
25,289
26,167

28.855
29' 796
31,453
31,764
34,999

583,228
573,883
712,807
808,045
902,188

7,417
27,655
47,024
10,275
46,446
9,756
9,709 j 48,103
8,552
48,0G2

8,537
11,150
10,793
11,090
11,381

11,122
11,133
10,523 I
12,515 i
11,546 !

5,480
13,806
13,470 ! 5,256
13,223
5,927
10,391
4,980
7,132
4,555

27,473
26,392
24,923
23,658
21,490

304,065
326,503
318,857
SOS,277
302,399

17,532
19,518
14,462
11,137
7,684

2,233
2,233
2,233
2,233
2,233

2,808
2,720
2,704 ,
2,566 i
2,005 |

3,284
3,648
! 3,157
i 1,032
i
727

610 !

607 I

8,862
8,862
8,862
8,862
8,862

3,970
3,970 !
3,970 I
3,970 i

2,468
2,456
2,456
2,456 i
2,461 j

58,19C
60,403
54,237
46,67£
41,440

469

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at close of business on Fridays,
March 29 to April 26, 1918—Continued.
RESOURCES—Continued.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

United States Government short-term
securities:
Mar.29
Apr.5
Apr. 12
Apr. 19
Apr.26
All other earning
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
Total earning assets:
Mar.29
Apr. 5
Apr. 12
Apr. 19
Apr.2G
Due from other Federal Reserve Banksnet:
Mar. 29
Apr. 5
'.'..
Apr. 12
Apr. 19
Apr.26
Unconnected items:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
Total deductions from
gross deposits:
Mar.29
Apr. 5
Apr. 12
Apr. 19
Apr.26
5 per cant redemption
fund against Federal
Reserve bank notes:
Mar. 29
Apr. 5
Apr. 12
Apr.19
Apr. 26
All other resources:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
Total resources:
Mar.29
Apr. 5
Apr. 12
Apr. 19
Apr.26

New
York.

Philadelphia.

Cleveland.

Richmond.

7,501
7,643
9,421
5,073
4,163

18,293
16,657
15,194
11 250
11,004

1,994
1,538
1,538
1,538
1,523

Minneapolis.

Atlanta.

Dallas.

City.

San
Francisco.

Total.

75,801
74,743
72,719
66,172
73,195

1,310
4,056
1,356

|
|
i
!
i

32,167
32.931
18,866
4,830
4,072

1,444
511
511
»511
511

4,316
4,039
4,156
2,521
1.934

4,194
3,719
3,566
4,503
4,645

3,124
3,131
3,142
3,142
2,632

1,924
1,894
4,819
4,863
1,957

252,579
260,400
142,143
46,295
37,407

746
709
583
430

143
130
376
459
291

589
510
511
377
301

37
195
299
236
121

1,736
1,386
1,601
1,372
1,349

154
131
130
108
97

3,523
3,222
3,771
3,293
2,722

44,424
49,107
44,578
53; 451
58,072

24,108
24,365
26,305
29,602
30,377

59,237
61,465
62,618
63,069
64,672

32,678
36,078
39,049
38,753
38,672

60,874
60,669
63,781
62,849
61,004

1,201,585
1,224,411
1,231,815
1,212,585
1,286,162

3,460
5,435
6,795
4.602
8', 573

128,945
19,957
U,815
1479
110,314

11,991
10,252
14,209
17,051
17,170

339,130
346,997
383.009
38?; 176
378,531

15,451
15,687
21,004
21,653
25,743

366,075
356,954
384,824
387,655
388,845

49,296 ! 29,243
51,773 ! 30,240
62,543 I 101,145 I 55,213 i 29,613
62,064 94,350 j 47,753 ' 33,349
67,846 ! 97,632 55'266 i 31,489
"

550,915
547,488
547,627
532,803
559,196

66,899 | 92,220
62,052 | 90,713

4,054 j.
6,463

18

4,670
3,240
3,051
2,166
1,226

165
124
145
158
133

2,459 170,493
1 471 183,626
1,471
76,408
1,471
4,427
1,421
2,319

115,890
135,718
126,624
j 128,370
I 148,741

132 I 4,239 ; 3,461
852

8,441
9,494
26,893
561
10,349

1,582 j 1,123
1,345 j 3,365

7,393 ;

6,294

1,474

Si 872 ! 4,665
....„
5,933 j 5,759 i
3,931 I 3,148 j
I 20,496 19,496
i 25,676 18,670
! 22,505 20,615
! 23,814 I 16.956
' 25,371 ' 20;711

17,878
20,945
24,867
25,253
21,446

71,383
66,194
81,723
83,944
87,194

I 41,010
; 39,934
I 41,823
i 44,733
! 39,242

19,405
21,232
26,337
26,262
32,552

29,330
23,772
25,050
25,995
25,631

! 19,539
! 18,195
| 23,337
! 21,142
I 19,974

58,606
69,895
68,029
68,175
49,821

18,230
21,346
22,017
28,964
31, G22

13,766
10,886
12,497
6,887
7,797

19,188
25,001
26,223
25,253
21,464

75,437 j 41,010
66,194 i 46,397
81,723 !j 41,823
83,944 44,733
87,194 ! 40,635

19,537
21,232
27,635
26,262
32,552

33,569
23,772
25,050
27,577
26,976

! 23,000
| 18.047
i 23,337
| 22,265
! 23.339

65,047
79,389
94,925
68,736
66,170

18,230
22,820
25,049
2C,964
31,622

14,926: 26,790
16,758 ; 30,341
12,497 : 29,093
12,820 ! 29,573
11,728 i 28,519

I 19,496
j 18,670
j 20,615
I 16,956
! 20,711

137
137
137
137
137

400 i
400 "
400
272
306
276
296
249
356

442,782 143,527
454,380 144,888
457,882 138,614
459,657 143,281
467,334 147,573

1,272 I

2,063

118,811
116,267
117,417
120,267
116,202

.
j

213,726 1,310,684 1 255,737 276,570 137,244
215,981 1,316,946 1 259,854 284,735 132:638
221,879 1,374,178! 256,150 291,710 131,431
225,021 1,328,403 j 258,755 286,179 128,579
230,317 1,357,428! 257,784 308,633 132,971

83
48
28
12
3

537
537
537
409
528

108,042
110,100
111,802
109,584
110,569

!170,903
I 177,004
169,672
172,341
176,272

3,724
324
324
261
359

95,760 177,804 3,445,984
91,837 183,385 3,459,659
94,784 191,126 3,512,495
89,638 196,593 3,499,217
94,894 200,610 3,560,839

LIABILITIES.
Capital paid in:
Mar.29
Apr.5
Apr. 12
Apr.19
Apr.26
Surplus:
Mar.29
Apr.5
Apr. 12
Apr.19
Apr.26




6, 351
«, 357
6, 444
6, 444
6, 444

6,873 !
6,873 I
6 885
6,903 i
6,909 I

8,363
8,379
8,468
8,504
8,504

3,761
3,770
3,780
3,792
3,792

2,943
2,946
2,964
2,964
2,964

116 I

9,431
9,597
9,610
9,655
9,711

3,476 I
3,509 !
3,509 ;
3,509
3,509 :

2,738
2,760
2,764
2,764
2,765

3,450 i
3,446 i
3,447 ?
3,447 !
3,444 ;

2,
2,
2,
2,
2.

38
216 !
j
38
216
38
216 j
216 !
38
216 I
75
Difference between net amounts due from and net amounts due to other Federal Reserve Banks.
75
75
75
75

1

19,711
19 711
19 727
19 691
19, 699
649
649
649
649
649

116
116
116
116

j
j
i
I

40
40
40
40
40

830
843
845
851
917

4,296
4,303
4,305
4,305
4.305

74,223
74,494
74,748
74,829
74,983
1,134
1,134
1,134
1,134
1,134

470

MAY 1,1918,

FEDERAL RESERVE BULLETIN.

Resources and liabilities of each Federal Reserve Banh and of the Federal Reserve System at close of business on Fridays,
March 29 to April 26, 1918—Continued.
LIABILITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

New
York.

Phila- | Cleve- | Richdelphia. j land, j mond.
i

Government deposits:
$ Mar. 29.....*
Apr. 5
Apr.12
Apr. 19
Apr. 26
Dae to members—reserve account:
Mar. 29
Apr.5
Apr. 12
Apr. 19
Apr. 26
Collection items:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 20
Due to other Federal
Reserve banks—net:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 28
Other deposits, including foreign Government credits:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Total gross deposits:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Federal Reserve notes
in actual circulation:
Mar. 29
Apr. 5
!
Apr. 12
i
Apr. 19
|
Apr. 26
:
Federal Reserve bank '
• notes in circulation—:
4
net liability:
j
Mar. 29
'
Apr. 5
!
Apr. 12
,
Apr. 19
i
Apr. 26
1
All other liabilities:
'
Mar. 29..
!
Apr. 5
!
Apr. 12
Apr. 19
Apr. 26
Total liabilities:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 2 6 . . .




j

Atlanta.

!Chicag0-

St.
Louis.

Kansas
City.

5,410
9,520
9,969
4,822
11,273

6,687
6,802
5,686
4,723
6,037

5,769
7,939
6,099
7,244
10,459

7,476 i
9,060
5,827 i
9,887
10,391 ! 14,328
5,105 i 10,997
3,605 ! 20,198 .

70,834 1,499,400
37,437 i 70,590 1,473,294
36,956 i 69,672 1,494,537
36,470
74,637 1,469,860
39,518 ; 67,545 11,497,416

16,996
9,585
5,644
3,864
9,408

13,269 I
14,567 j
16,499 :
8,181 !
19.050 i

6,066
6,311
5,641
436
7,069

91,216
89.520
90,292
89,202
91,586

83,642
92,368
88,133
93,428
88,452

i 106,850!
|108,524 !
;107,020!
!108,692 |
!112;321 ;

45,154
44,994
43,241
43,492
12,(580 j

39,060 i 187,288
38,727 185*861
37,840 188,264
39,002 i 186,891
37,802 I 186,812

53,517
49,526
46,131
50,901
51,105

40,581
42,144
41,519
41,290
41,235

74,984
74,587
69,883
69,014
70,758

20,484 i
15,551 !
17,110
18,010 !
17,638 !

10,981
12,022
12,436
15,106
12,405

14,301
18,298
16,708
17,670
19,316

4,295
4,246
4,809
5,913

9,647
13,111
11,258
13,040
11,526

14,903
57,650
17,688
52,268
21,747
56,906
21,133 I 65,293
17,088
52.733

15,804 i
17,029 i
22,071 !
22,817j
24,041 i

1,421 !
87

32,543 I
34,150 ;
36,709 :
34,682j
31,939 j

24,638
38,376
10,021
25,074

;
3,017 i
'
964 I
3.542 '

600 •
697 !
i

75,775
75,520
78,556
81,160
75,815

8,856
5,783
3,690
4,229
4,496

807,589
805,799
856,012
804,892
829,672

134,602
136,103
131,086
132,671
129,799

92,789
95,978
98,138
99,437
101,467

477,598
485,233
491,776
496,636
5=30,640

114,262
116,878
118,179
119,181
121.076

136.131
143:461
145,784
140,777
159,132
|
i 131,479
j 132,257
| 136,762
| 136,147
I 140,236

i 11,002
j 8,788
i 11,723
! 6,476
! 17,767 '
j
j

20,294
25,144
22,132
24,811
22,638

3,168
467 '.
.
155 I 1,106 :

L

6,120
9,875
5,779
10,853
5,921 i 11,463
5,950 j 11,795
11,510

213,726
215,981
221,879
225,021
230,317

1,310,68-1
1,316,946
1,374,178
1,328,403
1,357,428

71,704
67,323
66,147
61,938
67,387

239,270
256,220
235,174

2,037
2,000
1,562
3,048
2,077

97
198
134
114
39

17
19
4
31
22

I 58,900
56,537
I 55,879
j 58,342
; 54,717

220,621
221,793
223,681
221,226
229,294

76,493
77,542
72,942
78,031
82,694

51,580
53,211
54,330
51,957
52,802

90,419
95,656
87,259
89,308
92,743

92,672 1,901,442
52,669
95,312 1,886,318
49,275
54,869, 99,308 1,918,651
50,313 101,260 1,889,901
56,156 103,028 1,945,148

211,770
221,851
223,405
227,620
227,155

63,558

53,538
53,918
54,469
54,619
54,731

69,314
70,222
70,913
71,330

40,096
39,525
36,850
36,227
35,622

!
61,592 I
61,307
61,248 |
62,536 |
61,580 !

56,928
56,744
59,334
58,921
58,541

61,671
61,228

2,903
3,982
3,845
3,831
3,745

71
122
140
197

276,570
284,735
291,710
286,179
308,633

137,244
132,638
131,431
128,579
132,991

.
1
.
|
J
!
118,811
116,267
117,417
120,267
116,262

81,059
82,067
84,321
88,322
81,890

80,836 1,452,838
83,566 1,479,920
1,499,377
90,822 1,514,287
92,987 1,526,232

7,978
7,860
8,000
7,896
7,875

8,000
7,895

T
""
I
597
638
696
751
761

255,737
259,854
256,150
258,755
257,784

216,897

3
5
7
5
14

I
5,137
5,554
6,014
6,535
6, 768

104,086
104,818
100,523
75,499
130,668

1,601
2,788
4.231

4,524
961

7,978

843
911
918
798
799

Total.

1,017
2,312

i
.

208
324
194
123
178

113,668
112,660
116,304
118,267
121,532

Dallas.

,_

7,549| 5,946
5,452 j 14,357
4,265 ! 6,588
7,845 ' 11,577
12,858
8,448
j 688,218
j 639,016
! 675,586
i 636,841
I 667.602

San
Fran. Cisco.

Minneapolis.

744
923
970
940
958

492
513
503

. 148
173
201
206
233

664
728
744
778

165
194
220
247
199

204
190
206
290

8,369
9,933
10,585
11.171
11,467

442,782
454,380
457,882
459,657
467,334

143,527
144,886
138,614
143,281
147,573

108,042
110,100
111,802
109,584
110,569

170,903
177,004
169,672
172,341
176,272

95,760
91,837
94,784
89,638
94,894

177,804
183,385
191,126
196,593
200,610

3,445,984
3,459,659
3,512,495
3,499,217
3,566,839

MAY 1,1918.

471

FEDERAL RESERVE BULLETIN.

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve bank at close of business on Fridays, Mar. 29 to Apr. 26, 1918.
[In thousands of dollars; i. e., 000 omitted.]

delphia.

Boston.

Federal Reserve notes
received from a g e n t net:
Mar. 29
Apr. 5
,
Apr. 12
Apr. 19
Apr. 20
Federal Reserve notes
held by banks:
Mar. 29
Apr. 5
Aur. 12
Apr. 19
Apr. 26
Federal Reserve notes
in actual circulation:
Mar. 29
Apr. 5
Apr. 12
Apr. J9
Apr. 26
Gold deposited with
or to credit of Federal Reserve agent:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Paper delivered to
Federal
Reserve
agent:
Mar.29
.....
Apr. 5
Apr. 12
Apr. 19
Apr. 26

Cleveland.

mond. Atlanta. Chicago.

Louis.

Minneapolis.

Kansas
City.

Dallas.

San
Francisco.

Total.

95,453
98,385
101,318
102,257
104,211

528,659
540,851
514,559
546;350
546,107

121,671
129,807
129,721
129,669
127,864

137,340
141,096
143,703
146,402
146,492

68,502
70,239
71,048
72,901
72,620

58,376
58,184
60,913
60,554
60,173

224,399
235,924
237,589
241,015
242,607

68,009
68,655
68,619
67,983
67,950

54,582
54,965
55,548
56,032
55,935

73,620
74,622
75,130
76.123
77; 085

40,345
39,925
37,008
36,516
36,464

93,031
94,974
100; 542
103,254
103,148

1,563,987
1,607,627
1,625,698
1,639,056
1,640,056

2,664
2,407
3,180
2.820
2,744

51,061
55,618
52,783
49,714
45,467

7,409
12,929
11,542
10,488
6, 788

5,861
8,839
6,941
10,255
6,256

6,910
8,932
9,800
10,365
11,040

1,448
1,440
1,579
1,633
1,632

12,629
14,073
14,184
13,395
15,452

4,451
5,306
6,948
6,755
7,083

1,044
1.047
1 079
1^413
1,204

5,228
5,308
4,908
5,210
5,755

219
400
158
289
842

12,195
11,4.08
13,219
12,432
10,161

111,149
127,707
126,321
124,769
114,424

92,7KI)
95,978
98,138
99,437
10i;407

477,598
485,233
491,776
496.636
500; 640

114,262
116,878
118,179
119,181
121,076

131,479
132,257
136,762
136,147
140,236

61,592
61,307
61,248
62,536
61,580

56,928 211,770
56,744 221,851
59,334 223,405
58,921 227,620
58,541 227,155

63,558
63,349
61,671
61,228
60,867

53,538
53,918
54,469
54,619
54,731

68,392
69,314
70,222
70,913
71,330

40,096
39,525
36,850
36,227
35,622

80,836
83,566
87,323
90.822
92', 987

1,452,838
1,479.920
1,499', 377
1,514,287
1,526,232

48,453 196,319
4.8.385 215,711
4S;318 209,419
48,257 209,210
48,211 208,827

79,751
85,187
87,101
84,5-19
82,744

88,680
89,336
89,903
00,102
92,292

29,374
29,204
29,093
29,976
29.880

39,495
40.304
42; 902
36,063
33,832

165,223
158,719
148,414
161,841
138,432

41,047
40,613
37,577
36,911
33,408

39,536
39,419
39,302
39,187
35,089

55,384
55,323
55,272
45,220
45,158

17,363
16,336
14,313
14,286
14,261

51,567
54,510
55,878
59,190
62,084

852,192
873,077
857,492
854,822
824,218

72,487 378,803
72,417 362.255
70,387 469', 614
63,810 526,778
70,913 555,283

47,532
45,386
42,781
51.960
57; 638

66,139
66,268
78,163
'75,312
78,840

44,663 .
! 48,447
51,855
43,324 !
50,859

19,227 64,769
18,801 82,107
19,310 92,171
24,81-2 102,510
26,608 133,445

34,818
42,232
38,187
44,325
49,885

15,937
16,377
17,784
22,266
23,603

45,140
45,571
46,131
46,256
47.244

23,848
27,591
30,336
30,269
30,722

50,108 863,471
49,408 876,860
49,972 1,006,691
45,910 1,077,622
45,319 1,170", 359

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Mar. 29 to Apr. 26, 1918.
[In thousands of dollars; i. e., 000 omitted.]

St.
Louis.

Cleveland.

Boston.

Minne- Kansas
apolis.
City.

Dallas.

San
Francisco.

Total,

FEDERAL BESERVE
NOTES.

Received from Comptroller:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Returned to Comptroll er:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 16
Chargeable to Federal
Reserve agent:
Mar. 29
Apr. 5
Anr. 12
Apr. 19
Apr. 26
In hands of Federal
Reserve agent:
Mar. 291"
Apr. 5
Apr. 12
Apr. 19
Apr. 26




128,080
131,080
132,760
140,1C0
145,160
j

;
i
23,907 j
24,475 '
24,542
25,503
25,909

802,280
815,480
828,280
.834,880

153,600
168,760
175,400
175,4.00
187,200

158,421 i 25,
12,440 !
159,029 ""
25,853 12,784 i
165,321 25,939 1??17 i
165,530 25,991 j 13^518!!I
172,973 27796 I 13828
27,796 13,828

104,173 643,859 127.911
106,605 643,251 142;907
108,218 650;159 149,461
114; 657 662,750 149,409
119,251 661,907 154,404

i
i
1
i

8,720
8,220
6,900
12,400
15s040

163,540
164,340
170,280
174,160
178,780

115,200
102,400
105,600
116,400
115,800

6,240
13,100
19,740
19,740
26,540

151,100
151,556
157,063
160,642
164,932
13,760
10,460
13,360
14,240
18,440 i

83,500
85,500
86,900
86,900
86,900

71,980
71,980
71,980
71,980
73,980

96,700
97,700
97,700
98,700
100,700

68,500
68,500
68,500
68,500
68,500

101,260
103,260
108,980
111,860
111,860

2,130,860
12,168,400
2,211,560
12,243,360
|2,276,700

10,731
11,1(55
11,201
11,837
11.870

11,903
12,020
12,137
12,453
12,550

14,920
15,118
15,310
15,517
15.855

14,320
14,395
14,647
14,774
14,826

8,229
8,286
8,418
8,606
8,712

324,263
328,008
336,527
340.814
352j 604

j 75,38] 268,879
75,189 27K.004
! 77,038 283', 249
j 76,699 284,475
I 76,508 290.087

72,769
74,335
75,699
75.063
75', 030

60,077
59,960
59,843
59,527
61,430

81,780
82,582
82.390
83;183
84,845

54,180 93, 031
54,105 94, 974
53,853 100,542
53,726 103, 254
53,674 103; 148

1,806,597
1,840,392
1.875.033
i; 902.546
1,924', 096

44,480
42,080
45,660
43,460
47.480

4,760
5.6S0
7', 080
7,080
7.080

5,495
4 995
4,295
3,495

8,160
7,960
7,260
7,060
7,760

91,440
95,340
96,140
98,140
98,140

89, 620
89, 620
91, 620
91, 620
91, 620

17,983 !
18,416 j
18,622 !
18,979 '
19.320

14,239 11,481 !
14.431
12,036 j
14;582 I 12,591 i
14,921 i 13,185 I
15,052 i 13,913 I

73,457
76,924
77,518
79,161
78,820

4.955 I 17,005
6', 685 ! 17,005
6:470! 16,125
6,260 I 16,145
6,200 i 16,395

280,360
290, 040
295, 840
297, 660
304, 000

5.495

13,835
14,180
16,845
17,210
17,210

212,610
232,765
249,335
263,490
283;440

472

MAY 1,19ia

FEDERAL RESERVE BULLETIN.

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Mar. 29, to Apr.
6, 1918—Con.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

New
York.

Philadelphia.

Cleveland.

Richmond.

137,340
141,096
143,703
146,402
146,492

68,502
70,239
71,048
72,901
72,620

58,376
58,184
60,913
60,554
60,173

Minneapolis.

Kansas
City.

Dallas.

San
Francisco.

Total.

68,009 i 54,582
68,655 i 54,965
68,619 55,548
67,983 56,032
67,950 | 55,935

75,130
76,123
77,085

40,345
39,925
37,008
36,516
36,464

93,031
94,974
100,542
103.254
103,148

1,563,987
1,607.627
1,625,698
1,639,056
1,640,656

Atlanta.

FEDERAL RESERVE

NOTES—contd.
Issued to Federal Reserve bank, less
amount returned to
F e d e r a l Reserve
agent for redemption:
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
Collateral held as security for outstanding notes:
Gold coin and cert i f i c a t e s on
hand—
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
In gold redemption fund—
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 26
Gold settlement
fund, Federal
Reserve Board—
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr.26
Eligible paper req u i r e d "(minimum) *—
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Apr. 2G
TotalMar. 29
Apr.5
Apr. 12
Apr. 19
Apr.26




95,453
98,385
101,318
102,257
104,211

528, &59 j 121,671
540,851 i 129,807
544,559 | 129,721
546,350 j 129,669
546,107 127,864

32,109
32,110
32,110
31,000
31,000

179,152
179,151
173,251
173,251
173,251

4,844
4,775
4,708
5,757
5,711

12,167
11,560
11,168
10,959
10,576

11,500
11,500
11,500
11,500
11,500

5,000
25,000
25,000
25,000
25,000

47,000
50,000
53,000
54,000
56,000

332,340
325,140
335,140
337,140
337,280

2,504
2,504
2,504
2,504
2,503

12,077
11,943
12,703
12,092
14,517
6,232
6,568
6,482
6,930 ,
6,785 i

6,603
7,393
7,200
8,010
7,775

! 224,399
i 235,924
! 237,589
! 241,015
| 242,607

2,374
2,204
2,093
1,976
1,880

2,071
2,880
2,728
2,389
2,259

13,102
13,102
13,102
13,102
13.102

253,524
252,391
245,251
243,530
245,954

14,580
13,581
11,581
11,581
11.581

173
493
315
625
456

2,134
2,100
2,068
2,037
2,010

1,934
1,817
1,700
1,585
2,487

3,024
2,963
2,912
2,860
2,798

2,199
2,171
2,148
2,121
2,096

5,171
5,114
4,982
4,794
5, G88

48,926
50,038
48,504
50,043
50,521

73,519 j 70,000
78,619 i 70,000
"
"•"•'•
80,619 I 7 0 , 0 0 0
77,619 ] 70,000
75,959 ! 70,000

27,000 ! 34,920 165,050
27,000 j 34,920 158,256
27,000! I 37,670 148,099
28,000 31,170 161,216
28,000 I 29,070 137,976

38>913
38,513
35,509
34,904
31,398

24,500
24,500
24,500
24,500
19,500

52,360
52,360
52,360
42,360
42,360

584
584
584
584
584

46,396
49,396
50,896
54,396
50.396

549,742
570,648
563,737
561,249
527,743

41,920
44,620
42,620
45,120
45,120

48,660
51,760
53,800
56,300
54,800

39,128
41,035
41,955
42,925
42,740

18,881
17,880
18,011
24,491
26,341

59,176
77,175
89,175
79,174
101,175

26,962
28,042
31,042
31,042
34,542

15,046
15,546
16,246
16,845
20,840

18,236
19,299
19,858
30,903
31,927

22,982
23,589
22,695
22,230
22,203

41,464
40,464
44,664
44,064
41,064

711,795
734,550
768,206
784,234
816,438

95,453 528,659 121,671 137,340
98,385 540,851 129,807 141,096
101,318 544,559 129,721 143,703
102,257 546,350 129,669 146,402
104,211 546,107 127,864 146,492

68,502
70,239
71,048
72,901
72,620

58,376
58,184
60,913
60,554
60,173

224,399
235,924
237,589
241,015
242,607

68,009
68,655
68,619
67,983
67,950

54,582
54,965
55,548
56,032
55,935

73,620
74,622
75,130
76,123
77,085

40,345
39,925

93,031
94,974
100,542
103,254
103,148

1,563,987
1,607,627
1,625,698
1,639,056
1,640,656

i

* For actual amounts see item "Paper delivered to Federal Reserve agent," on p. 471.

36,516
36,461

MAY 1, 1918.

Amounts

473

FEDERAL RESERVE BULLETIN.

of Federal reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during
the period Jan. 1 to Mar. 31, 1918.

Received.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Cleveland.

New York.

Boston.
Returned.

Philadelphia.

ReReceived. I turned.

ReReceived. | turned.

S4,288,500;S2,508,450
i$2,588,650 S3,938,500
000 322,500
321,—
970 193,700
41, 000 157,300
68,700
163,350
000 313,910
470
57,100
000
65,100
69,700
15, 100!
32,400
124,600
64,400
35 555

7,595,000; 4, 509,250
1,4.65,900 2, 724,850J
1,429,250 3, 172,2001
2,189,550 2, 465,850!
1,797,000! 2, 694,000'
789,245; 592,750;
72,000i 616,700
238,750: 547,200
574,000! 433,150
330,215i 364,850!

Received.

Richmond.

ReReturned, i ceived.

Returned.

S322,500| 8321,000 8193,700 $41,000! §157,300 $36,000
4,666,940; 7,702,000 2,743,450 1,274,400:3,210,550 1,433,500
884,000 437,000: 551,000 473,750
437,0001 919,000
96,000
502,750
473,750! 551,000 491,750
93,500
254,230! 211,000 640,250
33,500 770,800
70,500
268,000! 494,000 748,000 413,000i 177,000 416,250
128,695
91,000 329,855
41,OOOl 124,385
5,750
13,000
7,000 101,000
47,000:
37,250
5,000
38,400
90,000
18,250
18,250i
27,500
11,350
58,000 188,900
2,500
120,900!
18,500 58,700
87,485
92,000
3,000
16,500 146,765
38,455!

§163,350
2,189,550
254,150
640,250
770,800
378,000
868,020
9,000
46,050
354,800
31,145

726,300
844,200
163,300
364,350
739,300
65,200

3,618,895 5,281,310 20,767,410-21,629,250 6,733,72010,628,000 6,356,790! 2,442,900:5,308,850 '2,999,500

Total.

i
Chicago.
Received.

St. Louis.

Minneapolis.

Kansas City.

Re! Re- ; ReReI Returned. ! ceived. ! turned. ceived, i turned.

S313,900|! $198,000i
Boston
New Y o r k . . 2,799, 8501,797,000;
Philadelphia 494, 000' 286,000
Cleveland... 426
733,000;
Richmond.. 405,
164,000]
726j
Atlanta
403,000!
Chicago
St. Liiois.... 2,044,9301,057,"6o6.'
Minneapolis.!1 203, 0001,657,000;
~~
Kansas City.j 265, 40011,347,000!
Dallas
I 391, 600! 40S,000i!
San Franciscoj 581, 975! 685,100

§57,100 ij$93,790! 865,100
571,000i 861,670; 611,700!
91,000 134,395! 101,000
41,000' 356,005! 47,000|
5,7501 131,135 37,250!
644,2001 913,485 163,300
007,000 2,238,61O'l, 657,0001
i 280,705!
20,500: 280,705'
284,650J1,418,025! 132,650.
288,3001,112,715i 55,800!
52,510; 143,565: 303,695!

§8,000 $196,300
72,0001,501,750
7,000! 219,000
13,000! 9(5,240
5,000; 52,490
9,000! 576,900
203,00014,054,500
20,500 3,624,975
294,000
69,500
13,000:1,234,920
103,000: 574,165

Returned.

Dallas.
Received.

San Francisco.

Re- I Re- | ReReturned. : ceived. 'turned.! ceived.

$29,900 S163,500 S59,700: §39,42085,750, 700 $3,596,425
421,700 624,7501, 255,750! 368,405|22,763,040 20|,626,275
56,000 120,900 92,000! 44,56510,615,000 6,599,860
21,500 188,900 25,500! 93,175! 2,731,610 6,428,030
3,250' 69,200
4,000! 167,785! 3,003,490 5.316,260
739,300 354,800 100,550 42,625! 6,968,730 4,687.460
417,000 391,600 764,100 335,31511,461,600 8,646;935
4 9 5 , | 1,046,365 288,300 134,215! 50,850! 9,457,860 3,344y250
13,000 55,800 115,000! 150,260^ 759,500 3,440,165
266,050
285,350! 496,100 67,100 281,150: 1,403,050 4,728,775
~"66
77,900i 114,945 3,470,420 3,526,810
! 2,273,135 2,738,715
123,200! 91J170! 77,900;.
S23,915
366,500
30,350
63,400
34,-"
115,
410

Total..|8,652,705 8,715,1003,063,010 7,684,lOOS,455,200; 523,00012,425,240 2,525,805;3,124,535;2,831,750 2,695,8151,688,495 80,658,135 73,679,960




474

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

MEMBER BANK CONDITION STATEMENT.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays from Mar. 22 to Apr. 19, 1918.
[In thousands of dollars; i. e., 000 omitted.]
1. TOTAL FOR ALL REPORTING BANKS.
Boston.

i"

New
York.

Philadel-i| Cleve- : mond. Atlanta.; rhinnm
Rich- A+in-,tn ! Chicago.
phia.
land.

Minne- I Kansas
apolis. | City.

Fran- j Total,
cisco. I

"

N u m b e r of reporting j
banks:
i
32
47 j
79
66 ;
Mar. 22
i
38
33
47 I
79 i
67 I
Mar. 29
1
38
33
67 I
47 :
79 i
Apr. 5
i
38
32
78|
97 !
67 |
48 i
Apr. 12..
!
39
67 j
32
70
48 !
80 ]
Apr. 19
!
39
98 i
United States bonds i
I
to secure circula- j
I
!
tion:
5,532
13,938
50,571 | 12,981 ! 42,932 ! 22,892 ! 15,150 |
17,370
18,317
17,569
35,399
Mar.22
• 14,621
13,938
17,370
50,531 ! 12,981 I 42.922 j 24,766 ! 15,150 j
19,517
17,569
35,099
Mar. 29
1 14.622
5,692
13,938
17,370
50,581 ! 12,981 ! 42;923 • 24,117 j 14,500 |
19,476
16,094
35,399
Apr. 5
! 14,621
5,642
13,938
24,063 ! 14,900
17,374
50,596 ! 12,981 : 41,934
19,667
16,094
35,399
Apr. 12
i 14,622
§I*8 14,005 16,082 35,399
17,374
19,742
50,616 ! 12,981 j 43,014 j 23,368 ; 14,895
Apr. 19
! 14,621
Other United States!
i
bonds, including j
Liberty bonds:
I
18,377
10,205 ! 9,985 '•14,322
5,197
13,229
11,608
171,639 I 11,072 j 36,923
37,896
Mar. 22
j 11,320
167,324 | 10,657 j 35,928
10,692
6,008
19,634
12,797
10,954
39,021
13,933
9,817
Mar. 29
1 11,025
10,037
5,981
11,020
18,164 i 13,666
34,249
165,953 ; 10,362 ! 35,892
12,128
15,380
Apr. 5
10,518
10,090
6,076
10,347
36,836
165,246 : 10,340 ! 35,560
18,198 i 12,622
11,780
16,374
Apr. 12
10,648
10,109
6,154
11,584
35,399
162,065 ! 11,031 j 36,565
10,178
18,408 ! 13,020
16,083
Apr. 19
10,702
United States certificates of indebt!
edness:
31,839 ! 13,684
13,968
52,311 : 62,544 ! 17,696 ! 20,358 !
822,173
73,010
37,269
32,709
Mar. 22
39,991
30,987 ! 13,870
15,088
51,182 i 61,764 j 18,136 ; 20,330 ! 68,772
812,362
36,696
31,978
Mar. 29
26,340
19,644 |
29,772 i 13,373
13,792
47,611 ! 42,387 ! 17,657 i
770.905
67,173
36,181
30,447
Apr.5
22,196
37,674 i 17,477 50,855
17,979
63,658 i 67,322 i 21,770 I 27,850
955;126
89,835
39,619
Apr. 12
1 45,984
37,091 I 20,372 50,511
17,518
72,124 ! 71,608 i 21,985 j 28,388 i 93,393
37,781
Apr. 19
i 40,786 1,006,120
Total United States
1
securities owned:
|
55,982 i 41,238
76,364 142,399
48,737 I 129,223
24,697
58,965
61,687
Mar. 22
65,932 11,044,383
55,617 ! 41,256
74,820 140,614
48,277 | 127,310
26,788
62,536
85,728
60,302
Mar. 29
51,987 jl.030,217
70,954 121,202
48,810
25,415
59,938
53,747 j 4i,oyo
120,898
58,837
Apr. 5
i 47,335 1 987,439
86,979 144,816
55,372
29,803
64,031
61,702 : 45,351 102,628
146,338
67,340
Apr. 12
71,254 11,170,968
96,136 151,187
50,303
29,370
63, 761
61,205 i 46,632 101,993
148,534
66,739
Apr. 19
66,109 11,218,801
Loans secured by |
i
[
United States \
i
bonds and certifi- j
•
i
cates:
i
;
|
!
1,934
2,642 ! 2,641
3,372 I 4,697
28,432
8,671
Mar.22
1 35,402
171,919 j 21,770 i 19,939 13,009
1,900
2,961 ! 2,741
>
3,068 ! 4,791
34,684
9,138
Mar. 29
1 35,576
161,781 : 21,488 ! 20,249 : 13,126
3,756
2,793 ! 2,632
21,144 ! 31,163 ! 13,003
"' '""
3,047 |
' —
8,015
Apr.o
| 34,528
159,588!
5,074
30,094
2,542 j 2,723
3,350 i
10,861
5,133
8,782
Apr. 12
| 34,949
167,506 j 21,290 ! 38,783
2,955
2,495 I
21,271 ; 37,230
12,737
5,147
8,609
4,276 ! 4,704
28,845
Apr.19
; 38,050 • 153,849;
Other loans and in- i
,
j
:
vestments:
!
!
Mar. 22
i 732,623 3,994,444 | 597,077 929,196 j 337,642 291,432 1,365,807 373,685 229,994 450,634 184,364 j 476,109
Mar. 29
! 729,365 3,995,473 ; 600,504 i 928,927 | 357,037 i 291,713 ll, 366,284 372,715 235,872 452,469 182,742 464,107
Apr. 5
1 728,383 3,973,508 i 596.160 I 922.233 ! 348,265 ! 278.560 il, 347,387 376,542 223,674 452,383 180,864 478,779
1
Apr. 12
748,703 4,014.234 ! 607; 958 ! 916; 513 349,084 ! 285; 008 |l, 349,987 358,789 233,253 448,321 167,303 j 481,860
1
Apr. 19
722,683 14,028', 915 i 609,547| 935,886 344,825 291,716 II, 344,247 371,630 228,292 450,999 176,929 ! 480,065
!
Loans' and investi
!
ments:
I
Mar. 22
| 833,957 5,210,746 659,211 •L.091,534 ! 409,616 I 312,103 1,523,462 444,043 257,333 509,257 228,974 567,796
Mar. 29
i 816,928 5,187,471 696,812 i;089,790 ! 432,699 341,890 il, 528,278 442,155 265,621 510,741 227,066 554,626
!
Apr. 5
810,246 J5,120,535 688,258 1,074,598 ! 421,206 i 330,126 1,502,217 443,394 251,882 508,848 225,506 570,440
Apr. 12
854,906 15,352,708 • 716,227 11,100,112 I 423,976 I 345.454 1,526,419 434.911 265,598 512,746 216,004 589,621
Apr. 19
826,842 .5,401,565 ; 726,954 '1,124,303 421,323 ! 353j166 l52i; 626 446;978 260,157 515,159 227,837 586,762
Reserve with Federal
•
j
Reserve Banks:
;
;
i
141,726
38,626
18.213 ! 41,732
44,837
17,154
Mar.22
• 60,025! 630,580 j 61,890 I 85.352 i 27,351 ! 25,553
142,792
37,322
19; 810 I 43,641
44,308
17,612
Mar. 29
i 63,158 I 631,537 I 53,502 i 80'. 038 ! 28,630: i 26,136
44,043
28,022
141,730
33,239
20,273
43,631
18,371
Apr.5
i 61,727; 609,509! 61,717 ! 79,093 I 28,435
141,941
31,235
20,211 I 40,040 18,975 43,847
Apr.12
61,995 : 597,375! 58,176 ! 79,687 i 28,465 ; 26,114
112,709
36,405
19,667 I 41,746 16,587 49,136
Apr. 19
i 60,897 | 603,777 I 59,744 I 82,647 I 27,824 j 26,036
Cash in vault:
j
I
:
14,963 I 15,153
62,509
13,842
8,597 ! 16,469
11,366
21,066
Mar.22
| 23,682 ! 130,492 | 19,509 : 34,360
16.672 j 14,695
64,249
13,967
Mar. 29
i 22,700 ! 124.570
19,771 i 31,067
9,397
17,198
11,600
19,870
16,253 1 14,557
63,881
13,445
Apr.o
| 23,805! 124;311
20;015 i 34,334
9,133
16,640
10,713 1 19,925
Apr. 12
1 25,846 ! 125,594
65,617
12,718
19,601 i 30,259 ! 15.678 I 14,620
9,285
16,940
14,111 i 21,166
62,322
13,943 ! 9,561
20,917 j 35,656 j 15;688 ! 14,328
16,557
10,579 ! 20,175
Apr. 19
| 24,488 ) 126,150




682
679
685

267,272
270,157
267,642
267,316
267,795

351,773
' 347,790
343,350
344,117
341,298

1,217,552
1,187,505
1,111,138
1,435,149
1,497,677

I

1,8 ,
1,805,452
1,722,130
2,046,582
2,106,770

314,428
311,503
318,302
331,087
320,168
9,963,007
9,977,122
19,906,824
i9,96i;013
19,985,734
12,114,032
12,094,077
11,947,256
12,338,682
.12,412,672
1,193,039
1,188,546
1,169,790
1,148,061
1,167,175
372,008
365,756
367,012
371,435
370,364

MAY 1, 1918.

475

FEDERAL BESEBVE BULLETIN.

Principal resources and liabilities of member banks located in central reserve, reserve, and other
business on Fridays from Mar. 22 to Apr. 19, 1918—Continued.

ities, as at close of

[In thousands of dollars, i..e., 000 omitted.]
1. TOTAL FOR ALL R E P O R T I N G BANKS—Continued.

Boston.

York.

602,939
606,218
611,766
632,359
631,738

14,342,553
4,396,899
4,391.736
4,407', 852
4,392,772

75,910
79,808
81,003
78,545
79.476

288,024
I 284,824
i 291,632
! 289,747
! 294,823

632,048
636,519
642,415
662,269
661,928

A,415,255
14,468,928
;4,465,389
14,481,104
14,467,198

Net demand deposits on which reserve is computed:
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Time deposits:
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Total net deposits
on which reserve
is computed:
Mar. 22...
Mar. 29...
Apr. 5....
Apr. 12....
Apr. 19
Government deposits:
Mar. 22.
Mar. 29.
Apr. 5..
Apr. 12.
Apr. 19.

74,961 ! 394,579
58,310 | 345,486
287,854
45,501
~"~ ' " '
63,267
428,077

348,759

46,041

Philadelphia.

Richmond.

Atlanta.

a
569,591
560,712
562,572
569,902
596,066

! 705,005
i 696,697
! 690,012
: 681,145
696,436

273,246
282,343
277,424
278,335
273,308

214,
4,932 1,037,775
.7,755 1,050,004
217
213; 331 |i; 048'. 175
214,390 il,063; 058
212,714 jl, 062,040

15,417
15,578
14,684
14,586
14,796

1

Cleveland.

217,141
216,609
210,425
211,747
225,745

;
!
j
i

47,891 79,728
51,692 78,467
50,010 80,658
60,212 82,724
44,655 ! 83,307

apolig<

355,015
348,255
338,829
348,328
346,241

Dallas. J !Franj cisco.

Total.

287,605 i
287.281 i
28O',899 !
268,400 I
273,602 i
I
.,
71,927 !
: 77,148 !
i 77,796 I
; 73,747 !
j 77,167 j

172,136
182,550
187,010
189,901
184,508

! 397,435
i 397,014
:
387,604
i 389,684
| 392,522

160,182
154,311
159,709
156,743
153,618

365,736
363,604
371,276
372,513
378,103

9,129,135
'9,201,388
'9,181.517
'9,224', 282
;9,247,487

45,307
50,817
44,142
48,361
47,038

! 52,701
i 53,263
, 53,835
i 52,677
I

24,536
22,219
24,692
24,674
24,684

106,219
100,451
102,984
105,598
103,686

11,379,816
jl, 378,131
il, 370,690
i 1,390,946
11,397,596

188,063
200,815
202,707
207.405
201,535

413,245 i 168,183
412,993 ! 161,334
403; 755 ! 167,762
405,487 ! 164,775
409,315 i 161,549

397,602
393,739
402,171
404;192
409.209

19,533.501
|9,605', 915
19,582,952
19,632,820
9,657,203

4
426

762,124
631,258
500,829
774,036
633,621

575,009 772,399
571,882 763,887
567,775 755,300
575,082 746,868
601, r " i 786;243
|

289,393
299,808
294,395
298,639
288,642

I 240,708
243,162
i 239,369
j 241.030
I 239.570

1,135,312
1,145; 608
1,140,860
1,158,634
11,157,025

306,344
307,240
301,048
287,335
293.581

61,540
50,84-4
49,992
77,820
69,951

12,308
10,077
7,054
9,532
7,201

11,496
10,650
6,625
14,508
5,432

75,478
54.224
51/775
63,915
52,337

32,536
26,464
17,300
27,732
20,462

47,865
34,863
29,263
46,673
46,207

Kansas
City.

St.

!
!
'
:
i

15,769 i
11,946
7,682 :
10,848 |
11,035 !

22,012:

17,228!
10,518:
19,403
15,147 •

13.580 !
Ii;i66 :
7,265.
12,257'
10,620

[In thousands of dollars; i. e., 000 omitted.]
2. MEMBER BANKS IN CENTRAL RESERVE CITIES.
CENTRAL RESERVE
CITIES.

Number of reporting
banks:
Mar. 22
Mar 29
Apr. 5
Apr. 12
Apr. 19
United States bonds
to secure circulation:
Mar 22
Mar 29
Apr. 5 .
Apr 12
Apr. 19
Other"United States
bonds, including
Liberty bonds:
Mar 22
MPT 29
Apr. 5
. .
Apr 12
Apr. 19
United States certificates of indebtedness:
Mar. 22.
Mar 29
Apr. 12
Apr. 19... .
Total United States
securities owned:
War 22
Mar. 29
.. i
Apr 5
\ p r 12
Apr. 19
|




*

40
39
40
40
40

14
14
14
14
14

120
119
120
120
120

1,393
1,343
1,393
1,393
1,443

10,370
10,370
10,370
10,374
10,374

47,920
47,900
48,000
48,019
48,089

MS* 227

13,129
14,076
13,658
14 433
14,386

0,600
6,672
6,808
6 724
7,571

170,195
172,827
171,690
172,040
170,184

807,674
797 958
7R7 141
935! 082
986.024

45,113
41,823
42,071
55,789
58,908

26,787
26,405
24,776
32,973
31.330

879,574
866,186
823,988
1,023.844
1,074; 268

1 000,237
986,224
944 602
1,122,217
1,170,523

59,035
57,242
57,122
71,615
72,737

43,817
43,447
41,954
50;071
49.281

66
66
66
66
66

36,157
36 187
36,237
36,252
36,272

j

!
!

152)079
151,224
ISO RfiS

!

:

"

1 " "

!

.

.

.!

1,103,689
1,086,913
1,043,678
1,243,903
1,292,541

476

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays from Mar. 22 to Apr. 19, 1918—Continued.
[In thousands of dollars, i. e., 000 omitted.]
2. MEMBER BANKS IN CENTRAL RESERVE CITIES—Continued.

CENTRAL

Philadelphia.

New
York.

Boston.

San
Francisco.

Richmond. Atlanta. Chicago.

Cleveland.

St.
Louis.

15,975
22,202
22,089
18,089
17,757

6,988
7,075
6,353
6,806
6,621

174,447
170,816
168,205
172,638
160,001

827,702 275,145
828,090 272,516
825,846 265,477
818,717 270,336
816,627 264,425

4,757,970
4,750,703
4,729,304
4,761,970
4,753,940

Minne- Kansas
apolis.
City.

Dallas.

Total.

RESERVE

CITIES—contd.
Loans secured by
United States
bonds and certificates:
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19
Other loans and investments:
Mar. 22
Mar 29
Apr. 5
Anr. 12
Apr. 19. . . .
Loans and investments:
Mar. 22
Mar. 29
Apr. 5
Apr 12
Apr. 19
Reserve with Federal Reserve banks:
Mar 22
Mar. 29 .
Apr 5
Apr. 12.
Apr. 19
Cash in vault:
Mar. 22
Mar. 29.
Apr 5.
Apr. 12
Apr 19
Net demand deposits on which
reserve is computed:
Mar. 22...
Mar 29
Apr. 5
Apr. 12
Apr 19
Time deposits:
|
Mar 22
1
Mar 29
:
Apr. 5
'.
Apr. 12
'
Apr 19
Total net deposits
on which reserve
is computed:
Mar. 22
Mar 29
Apr 5
Apr 12
Apr. 19
Government
deposits:
Mar. 22
Mar. 29
Apr. 5
Apr. 19
Apr 12




151,484
141,539
139,763
147,743
135,623 1

i

3,655,123
3,650,097
3,637,981
3,672,917
3,672,888

i

.

j

:

!

4,806,844
4,777,860
4,722,346
4,942,877
4,979,034

903,312
907,534
905,057
908,421
907,121

325,950
323,038
313,784
327,213
320,327

6,036,106
6,008,432
5,941,187
6,178,511
6,206,482

602,432
603,827
580 932
567,416
574,197

97,963
99,460
98,900
98,725
99,974

29,186
27; 744
24,005
23,944
27,279

729,581
731,031
703,837
690,085
701,450

110,587
112,061
111,461
112,514
113,283

40,124
40,495
41,377
41,213
38,593

7,978
7,850
7,239
7,893
7,652

158,689
160,406
160,077
161,620
159,528

4,037,513
4,087,465
4,084,426
4,097,815
4 086.319

696,883
700,077
705,330
706,298
713 469

203,093
203,682
197,350
195,633
193,190

4,937,489
4,991,224
4,987,106
4,999,746
4,992,978

245,279
241,750
247,940
245 797
250 934

137,769
136,350
137,664
137,192
136 460

52,104
57,072
57,283
57,139
56,858

435,152
435,172
442,887
440,128
444,252

4,094,116
4,143,253
4 141 643
4,154,537
4,144,227

728,675
731,542
737,098
737,957
744,960

215,117
216,852
210,569
208,819
206,311

5,037,908
5,091,647
5,089,310
5,101,313
5,095,498

58,967
42,182
42,122
50,875
39,145

28,954
22,758
14,879
23,810
17,328

458,368
390,836

370.447
i 32o',m
i

!

ZOO. /OO

404 710 '
329,934 '•

1

I
;

|

i

: " • ;

:::::::::

479,395
386,407

MAT 1,1918.

477

FEDERAL RESERVE BULLETIN.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays from Mar. 22 to Apr. 19, 1918—Continued.
[In thousands of dollars; i. e., 000 omitted.]
3. MEMBER BANKS IN RESERVE CITIES.
Kansas
City.

Cleveland.

Boston.

San
Francisco.

Dallas.

Total.

OTHER KESEEVH
CITIES.

Number of reporting
banks:
Mar. 22
Mar. 29
Apr.5
Apr. 12
Apr. 19
United States bonds
to secure circulation:
Mar.22
Mar.29
Apr.5
Apr.12
Apr. 19
Other United States
bonds, including
Libertv bonds:
Mar.'22
Mar.29....,
At>r.5
Apr. 12
Apr. 19
United States certificates of indebtedness:
Mar.22
Mar.29
Apr.5
Apr.12
Apr. 19
Total United States
securities owned:
Mar.22
Mar.29
Apr. 5
Apr.12
Apr. 19
Loans secured by
United States
bonds and certifiMar.22
Mar.29
Apr.5
Apr.12
Apr. 19
Other loans and investments:
Mar.22
Mar.29
Apr. 5
Apr. 12
Apr. 19
Loans and investments:
Mar.22
Mar.29
Apr.5
Apr.12
Apr. 19
Reserve with Federal Reserve
Banks:
Mar.22
Mar.29
Apr. 5
Apr. 12
Apr. 19
Cash in vault:
Mar.22
Mar.29
Apr.5
Apr.12
Apr. 19




12
12
12
11
12

4,498
4,499
4,498

7,796
7,796
7,796
7,796
7,796

8,970
8,970
8,970
8,970
8,970

6,528
6,244
6,204
6 137
6,133

6,830
6,562
6,534
6,254
5,608

32,586
18,995
14.945
36 966
31,712

6,748
6,506
6,498
8,861
8,861

43,612
29,738
25,647
47,592
42,343

21,374
20,864
20,828
22;9il
22,265

29,589
29,811
28,916
29,369
28,391

415
412

15
15
15
15
15

416
416

70

35,368
35,358
35,358
35,358
35,358

13,544
14,472
13,744
13,690
13,694

11,920
11,920
11,970
11,970
12,065

16,174
17,424
17,333
17,524
17,549

5,330
5,330
5,330
5,330
5,330

3,125 !
3,135
3,135
3,241
3,241

13,938
13,938
13,938
13,938
14,005

15,166
15,166
15,166
15,666
13,654 |

35,399
35,099
35,399
35,399
35,399

171.228
173; 107
171,137
170,381
171,559

8,574
8,122
7,842
7,654
8,324

33,944
33;340
33340
33,254
33,008
34,029

I 1O 1oe
12,205
! 13,135
!
| 11,626
: 11,811
! 12,052

11,863
11,445
12,468
11,398
11,739

23,238
23,339
19,008
20,709
19,377

3,222
3,168
2,657
3,040

3,652
4,163
4,264
4,302
4,544

10,205
10,692
10,037
10,090
10,109

8,582
8,630
10,863
10,552

14,322
13,933
15,380
16,374
16,083

143,812
142,827
140,648
140,946
139,961

48,873
47,784
44,758
59,200
66,781 j

57,027
56,249
37,586
61,323
65,477

13,998
13,994
13,728
17,214
17,437

17.313
17,202
17,043
23,8S5
24,730

27,351
26,405
24,558
33 292
35,711

4,668
4,369
4,286
5,154
5,083

10,696
10,536
10,218
10,467
12,206

31,839
30,987
29,772
37,674
37,091

11,931
12,239
11,571
14,961
17,858

37,269
36,696
36,181
50,855
50,511

300,299
281,962
251,144
361,482
373,458

66,417
64,876
61,570
75,824
84,075

126,339
124,947
106,198
128,689
134,864

39,747
41,601
39,098
42,715
43,183

41,096
40,567
41,481
47,253
48,534

66,763
67,168
60,899
71,525
72,637

13,867
12,921
12,784
13,141
13,453

17,473
17,834
17,617
20,010
19,991

55,982
55,617
53,747
61,702
61,205

35,679 86,990
36 035 85,728
36,100 86,960
39,179 102,628
40,435 101,993

615,339

10,486
10,524
10,353
10,421
9; 109

21,230
20,934
20;478
20,522
20,491

19,108
19,414
30,364
37,945
36,411

11,358
11,092
10,903
8,742
10,720

1,668
1,625
3,495
4,80S
4,835

12,025
12,066
11,431
11,545
10,692

1,289
1,311
1,310
1,188
1,301

2,537
2,810
2,685
2,394
2,374

2,641
2,741
2,632
2,723
2,955

552,654
560,561
549,049
571,094
549,526

150,596
155,581
150,221
151,671
147,286

536,990
540,819
530,099
539,594
541,163

857,503
856,729
853,611
844,704
803,725

243,666
256,195
246,180
246,873
246,494

253,298
253,349
246,297
249,680
258,338

576,799
526,784
509,986
51P,839
516,797

1 74,861
| 75,736
I 85,501
! 66,820
i 83,389

180,712
173,547
171,835
172,516
170,149

625,855
610,110
603,012
648,055
620,260

182,456
180,969
181,402
185,003
178,640

624,637
626,629
618,147
635,940
615,729

1,002,950
1,001,090
990,173
1,011,338
1,035,000

294,771 296,062
308,888 295,541
296,181 291,273
301,741
300,397 311,707

605,587
606,018
582,316
602,909
600,126

49,210
52,451
51,073
51,332
49,869

14,583
15,088
15,215
16,511
16,053

57,415
49,182
57,673
53,376
53,987

80,328
74,808
73,947
74,468
77,232

21,252
22,118
21,929
21,962
22,049

22,924
23,592
25,926
23,704
23,992

42,912
42,493
41,726
42,297
41,934

8,054
8,123
7,528
5,924
7,662

15,149
15,960
16,978
16,182

41,732
43,641
44,043
40,040
41,746

15,149
15,427
16,441
17,123
14 669

44,837
44,308
43,631
43,847
49,136

413,545
407,191
416,11C
406,766
414,325

17,353
16,430
16,954
18,804
17^544

5,088
5,247
5,288
5,552
5,16(3

16,924
10,724
16,301
16,719

30,251
26,917
29,902
26,247
31.540

11,217
12,339
11,725
11,347
11,687

13,071
12,529
12,841
12,709
12,594

21,988
23,392
22,108
24,049
23,267

4,544
4,897
4,895
3,594
4,952

6,070
6,120
6,067
6,105
6,581

16,469
17,198
16,640
16,940
16,557

9,809 !
10,092 I
9 289 1
12,707 i
9,246 I

21,066
19,870
19,925
21,166
20,175

173,741
171,955
172,521
175.035
176,028

!

450,634
452,383
452,469
! 448,321
I 450,999

562,929
673,169
684,978

3,272
2,919
2,901
3,195
4,112

4,697
4,791
4,701
5,133
4,704

119,900
120,039
130,168
137,985
136,095

155,245
153,321
151,743
138,415
149,284

476,109
464,107
478,779
481,860
480,065

4,459,067
4,459,112
4,431,770
4,431,387
4,457,195

90,017 200,722 509,257 194,196
89,968 194,191 510,741 192,275
99,595 192,137 508,848 190,744
81,149 194,920 512,746 180,789
98,143 192,514 515,159 193,831

! 567,796 5,194,306
554,626 5,177,046
— "~
570,440 5,124,868
589,621 5,242,541
586,762 5,278,268
!

478

FEDERAL RESERVE BULLETIN.

MAY 1,1918.

Principal resources and liabilities of-member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays from Mar. 22 to Apr. 19, 1918—Continued.
[In thousands of dollars, i. e., 000 omitted.]
3. MEMBER BANKS IN R E S E R V E CITIES—Continued.

Boston.

OTHER RESERVE
CITIES—conNet demand deposits on which reserve is computed:
Mar.22
.Mar. 29
Apr. 5
Apr. 12
Apr. 19
Time deposits:
Mar. 22
Mar. 29
Apr. 5
Apr.12
Apr. 19
Total net deposits on
which roserve is
computed:
Mar.22
Mar. 29
Apr. 5
Apr.12
Apr.19
Government deposits:
Mar.22
Mar. 29
Apr. 5
Apr.12
Apr.19

Philadelphia.

New
York.

Cloveland.

Richmond.

198,545 188,783
203,084 191,042
195,976 192,553
198,727 188,966
200.619 j190,138
S
34,050 ! 65,282
36,469
63,952
34,706
66,372
42,792
68,544
29,592 j

475,360
478,955
483,801
501,720
500,757

130,247
135,236
133,230
134,765
131,112

511,636
! 508,688
! 503,522
i 501,249
{ 526,413

639,360
632,301
626,014
617,256
631,272

26,628
30.352
31,633
29,189
30,109

17,270
17,265
17,823
17,932

9,253
8,386
8386
8,480
8,332
8,553

199,624
199,439
199439
193,568
194,640
209,532

135,428
140,416
138,579
140,145
136,458

514,412
511,204
506,066
503,749
529,009

488,061
493,291
510,477
509,790
66,764
52,419
41,298
58,142
42,295

11,231 I 45,620
9,316
" O1°
32,916
7,123
27,753
9,663
44,487
7,790
44,755

! 699,247
! 692,133
j 684,084
! 675,648
! 694,131

208,760
214,025
206,388
211,565
209.527
9,417
7,506
5,122
7,375
5,474

60,384
49,774
49,209
77,029
69,086

Chicago.

St.
Louis.

66,164
65,725
55,158
62,870

137,073
138,735
148,621
144,691
142,895

212,800
207,488
196,745
206,664
205,425

13,844
14,117
14,471
10,641
14,356

27,147
27,330
25,054
25,063
24,829

208,368 | 395,494
403,063
210,228
392,206
212,465
209, 529 409,233
401,336
210,781

71,138
70,399
70,066
58,350
67,177

145,217
146,934
156,137
152,210
150,344

2,220
2,667
1,785
3,155
2,614

13,635
9,385
5,700
8,801
9,696

16,277
11,832
9,487
12,704
12,935

Total.

397,435 135,959
397,014 • 133,950
!
387,604 135,479
389,684 133,332
392,522 |131,431

365,736
363,604
371,276
372,513
378,103

3,578,773
3,589,590
3,576,984
3,585,295
3,627,901

19,556
19,442
19,672
19,773
19,814

106,219
100,451
102,984
105,598
103,086

784,374
777,954
765,343
781,845
788,504

!
413,245 I 141,826
;
412,993 139,783
""
403,755 141,381
405,487 139,264
409.315 137,375

397,602
393,739
402,171
404,192
409,209

3,814,085
13,822,978
3,806,589
13,819,849
3,864,452

4
426

271,110
213,211
170,224
265,329
224,404

Kansas
City.

331,654
340,817
333,183
347,234
339,709

10,724
9,650
5,275
13,209
4,315

San
Francisco.

Minneapolis.

52,701
53,263
53,835
52,677
55.978

22,012
17,228
10,518
19,403
15,147

Dallas.

12,826
10,518
6,954
11,357
9,871

[In thousands of dollars; i. e., 000 omitted.]
4. MEMBER BANKS OUTSIDE R E S E R V E CITIES.

COUNTRY BANKS.
Number of reporting
banks:
'
Mar.22
Mar. 29
Apr. 5
Apr.12
Apr.19
United States bonds
to secure circulation:
Mar.22
Mar. 29
Apr. 5
Apr. 12
Apr.19
Other United States
bonds, including
Li bert3'- bonds:
Mar.22
Mar. 29
Apr. 5
Apr. 12
Apr.19
United States certificates of indebtedness:
Mar.22
Mar. 29
Apr. 5
Apr.12
Apr.19
Total United States
securities owned:
Mar.22
Mar. 29
Apr. 5
,
Apr. 12
Apr.19




24
25
25
24
25!

12
12
12
13
13

147
151
150
147
149

21
21
21
21
21

6,618
6,548
6,548
6,548
6,548

4,011
4,011
4,011
4,011
4,011

7,564 i 9,348
7,564 j 10,294
10,373
7,565
7,576
10,373
7,656
9,674

3,230
3,230 I
2,530
2,930
2,830

4,792
4,781
4,314
4,511
4,569

8,403 I
8,683
8,195
8,109 !
8,230 j

2,498
2,535
2,520
2,686
2,707

2,979 •
2,588 '
2,638 !
2,552 j.
2,536 |

6,172
6,499
6,538
6,387
6,356

1,366
1,352
1,198
1,224
1,281

7,405
7,345
7,251
9.028
9 , 074
'

7,751

3,438
3,398
2,853
4,458
5,343

5,517
5,515
4,801
5,999
6,131

4,142
3,929
4,556
4,548

9,947
9,944
9,384
11.155
12,061

16,060
15,667
15,004
16,127
16,323

19,218
20,935
20,840
21,316
20,578

10,123
10,123
10,123
10,123
10,123

7,266
11,183
11,235

i

1,670
1,670
1,670
1,670
1,670

2,407
2,557
2,507
2,507
2,457

2,403
2,403
2^428 i
2,428 ;
2,428!

1,529
1,606
1,583
1,694
1,636

1,079
1,060
1,044
966
973

1,545
1,845
1,717
1,774
1,610

1,403
1,187
1,265
1,228
1,255

31,766
32,136
31,012
31,131
31,153

3,045
3,128
2,601
3,965
3,658

546
544
544
754
774

1,254
1,204
1,385
1,492
1,362

3,272
4,552
3,574
5,512
5,312

1,753
1 ""
1,802
2,516
2,514

37,679
39,357
36,006
49,463
49.951

7,641
7,710
6,329
8,119
7,769

2,825
2,900
2,877
3,198
3,160

4,003
3,934
4,099
4,128
4,005

7,224
8,954
7,798
9,793
9,379

5,559
5,221
5,495
6,172
6,197

750
750
750
750
750

...J 48,124
....' 49,150
I 48,505
48.916
:
48',147

i
22,320
22,249
21,688
23,662
23,766

22,772
23,129
22,009
26,013

i
!
I
j
!

j
I
i
!
j

117,569
120,643
115,523
129,510
129,251

MAY

I, 1918.

479

FEDERAL RESERVE BULLETIN.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays from Mar. 22 to Apr, 19, 1918—Continued.
Lin thousands of dollars, i. e_, 000 omitted.]
4. MEMBER BANKS OUTSIDE RESERVE CITIES-Continued.
New
York.

| Boston.

Phiia- jCicvedelphia.! land.

TctaJ.

COUNTliY BANKS—
continued.
!
Loans secured by j
United S t a t e s |
"bonds and eertifi- I
cates:
|
Mar. 22
j
Mar. 29
!
Apr. 5
;
Apr. 12
1
Apr. 19
'
O ther loans and in- !
!
vestments:
Mar. 22
Mar. 29
Apr. 5
.
Apr. 12
i
Apr. 19
;
Loans and invest- !
merits:
i
Mar. 22
i
Mar. 29
!
Apr. 5
i
Apr. 12
|
Apr. 19.
!
Reserve with Fed- i
ei':il ileserve Bank:;
Mar. 22
!
Mar. 29
Apr. 5
|
Apr. 12
Apr. 19
!
Cash in vault:
!
Mar. 22
1
Mar. 29
j
Apr. 5
!
Apr. 12
i
Apr. 19
|
Net d e m a n d de- J
posits on which \
reserve is com- i
puted:
!
Mar. 22
1
Mar. 29
\
Apr. 5
i
Apr. 12
!
Apr. 19
Time deposits:
Mar/22
j
Mar. 29
!
Apr. 5
!
Apr. 12
i
Apr. 19
!
Total' not deposits I
on which reserve |
is computed:
j
Mar. 22
!
Mar. 29
'\

Apr. 5
i
Apr. 12
j
Apr. 19
G o v e r n m e n t de-1
Dosits:
i
Mar.
Mar.
Apr.
Apr.
Apr.

22
29
5
12
19




j
i
!
!
i

9,948 |
9,718 I
9,472
9,342 j
9,117 i

5,813
5) 765
5,612
5,580
9.659

179,969 ; 188,725 I
178,804 i 189,795 !
179,334 j 185,306 '
177,609 j 189,646 |
173,157 ! 208,761 j

20,081
20,649
19,928
20,464
24,072
60,087 !
59,685 |
60,061 j
68,364 !
68,381 '

93,976
100,842
102,085
102,211
98,331

221,446
222,642
216,787
224,828
213,891

70,574
70,183
70, H i
80,287
81,225

88,584
88,700
84,425
88,774
89,303

114,845
123,811
125,025
125.646
120; 926

13,565
12,622
13,362
13,448
13,527

4,475
4,380
4,044
4,800
5,757

5,024
5,230
5,146
5,219
5,415

i 14,837 |
! 7,262 i
| 7.562 i
7; 528 j
i
! 7,701 I

2,674
2,847 I
3,291 '
3,300
4,198

745,970
767,307
745,750
767,656
774,599
46,0-il
46,349 j
38,853 j
43,713 i
41.459 !

14,563
14,726
14,844
15.089
14;379

28,076
29,149
30,015
26,549
28,508

56,611
71,430
59,745
70,678
67.643

34,762
35,215
34,006

883,620
908,599
881,201
917,630
927,922

6,099
6,512
6.506
6; 503
5,775

2,629
2,544
2,096
2,410
2,044

851
839
1,104
919
801

1,386
1,455
1,706
1,367
1,464

3,064
3,850
3,295
4,029
3,671

2,005
2,185
1,930
1,852
1,918

49,913
50,324
49,843
51,210
51,400

4,109
4,150
4,433
4,012
4,116

3,746
4,333
4,528
4,331
4,001

2,082
2,166
1,716
1,911
1.734

397
362
396
355
462

1,320
1,220
1,311
1,231
1)339

2.527
3,277
3,066
3,180
2,980

1,557
1,508
1,424
1,404
1,333

39,578
33,395
34,577
34,294
34,808

127,579 j 174,793 I 57,955
65,645
174,198 I 58,024 I 64,396
127,263
174,080 j 59,050
127,965
175,272 ! 68,653
130,639
175,341 I 69,623 65,164
130J981

74,701
79,259
81,448
79,608
72,659

9,238
9,110
9,662
9,526

17.527
17;435
17,824
17,609
17,542

35,063
43,815
38,389
45,210
41,673

24,223
20,361
24,230
23,411
22,187

612,873
620,574
617,427
639,241
626,60S

4,446
4,417
4,420
4.472
4; 356

5,979
5,959
6,042
5,967
5,953

18,160
23,487
19,028
23,298
22,209

4,980
2,777
5,020
4,901
4.870

160,290
165,00o
160,460
168,973
164.840

26,357
21,551
26,381
25,511
24,274

681.568
691;290
687,053
711,658
697,253

754
648
311
900
749

32,646
27,211
19,849
29,312
22,810

208,102
206,818
206,63<J
200,851
206,582

i
i
i
I
!

10,815 :
10,707 :
1 0 , 6 5 4 ••
10,663 i
11,028 |
6,329
6,270
6,851
7,042
6,944

49,282
49,456
49,370
49,356
49,367

17,517
17,170
16,857
17,107
16.213

13,841
15,223
15,304
17,420
15,063

26,149 j
26,713
20,781
25,424
22,576
I
14,446 I
14,515
It! 286
14'. 180 i
U, 498

73,152
71,754
71,222
71,220
72,112

80,633
85,783
88,007
87,074
79,115

32,340
32,934
26,904
31,501
28,789

11,143
11,003
11,556
11,444
10,729

20,089
19,989
20,413
20,166
20,093

42,846 i
53,881
46,570
55,195
51,191

2,245 i 1,156
1 947 J 1,070
1,510 i
783
2,186 i
791
1,452 I
865

2,891
2,571
1,932
2,157
1,730

772
1,000
1,350
1,299
1 117

234
210
166
336
257

1, 362
1, 039
636
767
520

2,134
2,561
1,982
2,047
1,339

6,164
25,475
6,192
25,809
25,869 I 6,204
26,018 I 6,254
26,068 i 6,243

148,700
148,458
149,124
151,792
152,138

185,711
185,259
185,167
186,422
186,513

60,597
60,678
61,709
71,333
72,299

i
8,197 !
5,891
4,203
5,125
3,746

12,901
10,274
6,976
13,704
11,035

480

MAY 1,1918.

FEDERAL RESERVE BULLETIN.

EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANES.
Average amount of earning assets held by each Federal Reserve Bank during March, 1918, earnings from each class of earning
assets, and annual rates of earnings on basis of March, 1918, returns.
Average balances for the month of the several classes of earning assets.
Bills discounted for
members
and Federal
Reserve
Banks.

Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total

Bills bought
in open
market.

115,578
334,406
466,273
33, 212,956
31,263,141
11, 243,288
68, 949,988
764,519
009,000
23,318,739
13,422,041
33,375,003

Banks.

§12,186,820
167,343,910
19,578,914
22,704,742
6,898,743
7,448,816
25,567,244
7,320,197
4,890,000
6,910,890
8,084,221
29,843,333

567,474,9S2 j 318,777,830
'!

Boston
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
Total...




Bills discounted for
Bills
members bought
and Fed- in open
eral Remarket.
serve
Banks.

United

Municipal
securi- warrants.
ties.

Total.

$42,229
567,832
63,175
79,119
24,890
24,494
72,940
24,428
15,381
19,021
27,858
99,708

$8,205
463,622
39,660
70,435
7,317
24,126
26,324
8,601
20,178
26,912
17,029
7,897

!
i
1,620 ;
;

1,900,718 1,061,075

720,306

1,836

$194,661
763,202
91,247
116,791
108,879
38,560
230,637
88,605
26,189
73,915
45,785
122,247

Municipal
warrants.

83,186,417 ,
139,879,986 '
12,150,505 !
24,618,786 !
3,227,161 j
8,040,288 !
10,829,273 !
3,677,400 '
5,968,000
13,037,948
7,014,903
4,330,702
235,961,369

Total.

$73,488,815
543,558,302
58,196,660
80,536,484
41,389,045
26,789,440
105,346,505
36,762,116
16,867,000
43,267,577
28,991,648
67,549,038

470,483
528,499

1,122,692,630

Calculated annual rates of earnings from—

Earnings from—

Banks.

United
States
securities.

,
84 l
i
i
212 :
I

:

§245, 095
1,794, 656
194, 086
266, 345
141, 086
87, 392 !
3 2 9 , 901
121, 634
61, 748
119, 848
92, 292
229, 852
3,683,935

Bills discounted
Bills
for mem- bought
bers and in open
Federal market.
Reserve
Banks.
Per cent. Per cent.
4.08
4.22
3.80
4.00
4.05
3.79
4.14
4.10
4.10
4.25
4.17
4.00
4.07
3.47
4.05
3.93
5.13
3.70
3.73
3.24
4.02
4.06
4.31
3.91
3.94

3.92

United
States Municipal
securi- warrants.
ties.

Total. {

cent. Per cent. Per cent.
3.13
3.81
3.90
3.89
3.84
3.92
4.56
3.37
3.89
2.70
4.01
3.65
3.97
4.51
2.96
3.81
? 7ft
3.90
4.31
3.98
3.22
? 43
3.75
2.86
4.05
4.01
2.19
3.59 !

4.09

3.86

MAX 1,1918.

481

FEDERAL EESEEVE BULLETIN,

GOLD IMPORTS AND EXPORTS.
Gold imports and exports into and from the United States.
[In thousands of dollars; i. e., 000 omitted.]
Week ending—
Mar. 22,
1918.

Mar. 29,
1918.

Apr. 5,
1918.

Apr. 12,
1918.

Apr. 19,
1918.

Total for
correTotal since sponding
Jan. 1,1918. period
during
1917.'

IMPORTS.

Qrejand base bullion
United States mint or assav office bars
Bullion refined
United States coin
Foreign coin
Total
EXPORTS.

Domestic:
Ore and base bullion
United States mint or assay office bars ,
Bullion refined
Coin
Total
Foreign:

142

346

144

558

271

3,500

155
19

384

277
15 .

126

120
7

4,439
2,490
132

4,795
7
219,259
51,019
55,985

316

730

436

684

398

10,561

331,065

26

4
414

6
312

3
987

2
804

2
878

3,270
10,C85

72
9,926
1,289
59,809

418

318

1,000

806

880

13,381

71,096

10

4

304

31
4,507

10

4

304

4,538

1,010

810

13,685

75,634

j

10

Tallinn rftfir.ari

Coin
Total
Total exports

115
i

115
533

318

880

Excess of gold exports over imports since Jan. 1,1918, §3,124; excess of gold Imports over exports since Aug. 1,1914, §1,047,180.




482

MAY 1,1918.

FEDERAL BESEKVE BULLETIN.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Apr. 30, 1918.
Maturities.
Discounts.

Federal Reserve Bank.

Within 15
days,
including
member
banks'
collateral
notes.

16 to 60
days.

61 to 90
days.

Agricultural and
live-stock
paper
over 90
days.

Trade acceptances.
Secured by U. S. certificates of indebtedness or Liberty loan
bonds.
Within 15
days, including
member
banks'
collateral
notes.

Boston
New York i . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
1

Rate of 3 to 4£ per cent for 1-day discounts in connection with the loan operations of the Government.
NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent.
NOTE 2.—Rates for commodity paper have been merged with those for commercial paper of corresponding maturities.
NOTE 3.—In case the 60-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be
taken at the lower rate.
NOTE 4.—Whenever apr>lieation is made by member banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not
exceeding that for 90-day paper of the same class.




INDEX.
Page.

Acceptances:
Banks granted authority to accept up to 100 per
cent of capital and surplus
402
Distribution of, statement showing
464
Growth of the acceptance business
402
Acts:
Amendments to banking laws
414-434
Silver coinage
395-397
Assistant secretary of the Board named
365
Attorney General, opinion of, regarding collection
and payment of checks
367-371
Branch banks at El Paso and Salt Lake City, directors of
365
Business conditions throughout the Federal Reserve
districts
440-458
Capital Issues Committee, press statements issued
by
:
399-401
Certificates of indebtedness, new issue of
365
Charts:
Outline of organization of Federal Reserve
Banks
374
Movement of foreign exchange rates in Sweden
and Switzerland
381,391
Charters issued to national banks during the month. 403
Check clearing and collection system:
Development of
371
Operation of
461
Opinion of Attorney General regarding collection and payment of checks
367-371
Commercial failures reported
403
Department of Agriculture, statement of, regarding
storage conditions for perishable products
404-408
Directors named for El Paso and Salt Lake City
branch banks
365
Discount operations of the Federal Reserve Banks. 462-467
Discount rates in effect
482
Earnings on investments of Federal Reserve Banks. 480
Exchange rates of neutral countries in Europe, 19141917
376-394
Federal Reserve agents' fund, transactions through. 460
Federal Reserve Banks:
Earnings on investments of
480
Outline ot organization of
373
Chart showing
374
Resources and liabilities of
468-470
Federal Reserve notes:
Accounts of Federal Reserve agents and
Federal Reserve Banks
471-472
Interdistrict movement of
473
Fiduciary powers granted to national banks
402
Foreign countries, public debt of
376-394




Foreign exchange rates of neutral countries in
Europe, 1914-1917
376-394
Gold imports and exports
481
Gold settlement fund, transactions through
459-460
Informal rulings of the Federal Reserve Board: •
Eligibility of trade acceptance for gas sold
435
Acceptances in domestic or foreign transactions. 435
Payment of interest coupons on bonds of Federal
land banks and joint stock land banks
435
Collection by Federal Reserve Banks of bill of
lading drafts
436
Acceptances secured by chattel mortgages on
cattle
437
Trade acceptances in connection with sales on
the installment plan
437
Law department:
Acceptance by member banks of drafts drawn
by dealers engaged in the export and domestic
sale © goods
f
438
Acceptance by member banks of drafts drawn in
transactions involving export of goods
439
Liberty loans, subscriptions to, by national banks.. 372
Member banks, statement showing condition of.. 474-479
Monetary Commission, statement regarding volume
of silver, from report of
397-399
National banking legislation
414-434
National banks:
Charters issued to, during the month
403
Subscriptions to Liberty bonds by
372
Resources and liabilities of Federal Reserve Banks. 468-470
Review of the month:
The third Liberty loan
359
Issues of Treasury certificates
359
Operations of the Federal Reserve Banks
360
Condition of member banks
360
Equalizing reserves by rediscounts
361
Rates of interest
262
Sale of silver
363
Check dealing and collection
363
War finance corporation
364
Movement of gold
364
Silver coinage act
395-397
Silver, statement adapted from Report of Monetary
Commission, 1898, regarding volume of
397-399
State banks and trust companies admitted to the
system up to and including April 30, 1918
408-413
Storage conditions for perishable products
404-408
Treasury certificates of indebtedness, new issue of.
365
War Trade Board*; statement of, regarding license
to collect securities of alien enemies in France and
Great Britain
365

o


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102