Full text of Federal Reserve Bulletin : May 1918
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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. . | i I I I i I Treasury Department. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total. Treasury Department Boston New York Philadelphia Cleveland Richmond Atlanta Chicago i St. Louis Minneapolis Kansas City Dallas....." SanFraiMiseo Total Feb. 8 to May 9. Feb. 27 to May 28. 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. 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. e m l0 s Ol ii_ £ ® report an aggregate increase | During the period under review the hank's' 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 City 20,824 own notes and customers' paper secured by "Dallas 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 States long-term discounts on hand had increased to 902.2 mil- United securities 61,039 41,446 19,593 United States short-term lions, of which war-loan paper constituted 642.4 securities 37,407 226,036 188,629 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 „Collection „ .. system. , during the Apast ^ month by the 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 BostonYork I $33,000,000 839,731,000 175,000,000 215, 448,000 certificates of this series will not be accepted New Philadelphia 38,000,000 38, 000,000 000,000 Cleveland.. 46,000,000 in payment of taxes. Richmond 18,000,000 u;219,000 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 be made against the Federal Reserve Banks. of section 13 in its original form the only classes shall Italics mine.] 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. the clearing functions of the Federal Reserve I hope most sincerely that this matter may 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 organization and administration of Federal of the two offices are separate and distinct. Reserve Banks is suggested: (1) AdministraThe holder of these offices occupies, therefore, tive, supervisory, and advisory; (2) managea dual capacity in relation to the Federal rial 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. Denmark Netherlands Norway Spain Sweden Switzerland Total "Before the outbreak of the "war. Date. 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. Crowns. • 197,029,429 :. 190,177,652 279,522; 582 ! 216,700,000 239,150,000 1913 1914 1915.... 1916 i 19171 Duties. : 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. 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 Total. 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 102,133,021 5,202,537 11,043,100 30,457,529 30,900,881 157,268,004 69,803,570 3,303,033 19,576,830 608,176 105,429,805 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', 260 133,481 108,537, 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 85,031,323 430,296,681 389,594,809 503,590,054 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 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 8,820,717 430,296,681 29.83 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 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 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 23,018,349 503,590.054 549,204,292 676,523,168 860,008,394 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.. in eircuGold holdings. Notestion. 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, according to which all persons presenting gold at goldskontor (public debt office) may free (the 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 70.40 170.0 176.53 174.43 168.67 157.53 147.27 136.88 131.83 133.53 129.58 120.63 113.90 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!1 60.65 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 43.731 107.23 108.31 108.57 104.83 102.95 101.88 103.22 103.49 103.75 102.14 99.20 96.51 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 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 71.89 71.70 71.61 70.95 67.63 66.0 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 11 97.98! 97.98 95.88!1 95.88! 144.75! 96.50 48.18 66.92! 96.10 94.19 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 'ii if t r > 16 16 14 la K> 6 4 \ \ **- a ^_ V •^, *\ »1 \ \i vj \ \ a s r\ 1 \r — **z^h s. °% .-a V ViVI •-•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 1I1 1i 1 11I j AUGUST 1 1 1 1i 11 1i 11js 11I 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 LI4^ p r r [c5 *?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. 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)., * \ 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 Dec. 31,1914, 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. 00 162.00 164.00 158.00 i 154.00 i 152.50: 152.50 i 155.50 i 157.00 ! 157.50 ; 159.50 : 152.75 : 161.50 ! 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 = 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- ; Miseei- ; Interest :; nation of • 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. 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 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,014,548 448,345,361 |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. I 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. .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 : 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 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 57.50 142.00 144.00 165.00 158.00 156.00 152.50 152.50 157.00 157.00 159.00 160.00 153.00 i i 1 ! ! i ! i i : Vienna. | New York. 71.70 75.00 375.50 S8.00 68.00 67.00 65.00 60.00 57.00 56.00 54.00 56.00 57.00 54.00 51.00 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 orders Advances bill of the Paper Total. Bank of money. Netherlands. [ Between 1914 and the end of 1917 the pub- j lie debt of the Netherlands increased by | 13,624 17,1914 6,000 19,624 461,091,000 florins. The bulk of the present j Jan. 12,568 20,770 28,150 July 18,1914 61,488 14,130 9,868 198,046 30,1915 , 52,498 121,550 debt bears interest at 2\ and 3 per cent, the Jan. 13,494 4,801 172,401 110,080 Jan. 22,1916 1 44, 13,416 15,669 263,539 Jan. 20,1917 114,094 120,360 higher rates affecting recent loans only. The Nov. 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 Interon traor- Miscel- Total. services. est East Indies. The Dutch Government floated debt. dinary. laneous. 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 "' ~n' """j 76,348,212 667,100 ! 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 38J 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 2.200 2.260 2.453 44.0 44.55 45.0 46.35 47.75 48.80 48.70 48.85 49.15 49.525 50c 60 52.0 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.] 5 631 464 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 subscripof subscribed. subscribers. tion. 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.] Consolidated debt. Floating debt Total 1913 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 of Loan bank vaults 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). "' Berlin New York Petrograd | •»„„-« 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 82. U\ 219.05 217.'.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 „. 41 „ 104.39 55.30102.27 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; 86.75J 6.75!J 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; 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. 501 207.55 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! 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 62.90:59.90 217.20| 104.26 107.00:107.00! 149. OOi 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 f t H<i 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 \-. *^ • \V ^N ft •V // \J Sd \ ^/ ssVA L. \ f vs A \A u — 1 \ as j 32 \ ¥ allll r *\ v *> 1I 38fr 1 4042 V 1 S \ l \ i V x V \ 1j V i I 1 52 1 "1 \ 1 i I I9IS me / \/ Y /votr/vffi JULY /tU6(/ST FEBRUARY JUNE JULY 11 1I | j I 11 APRIL ! APRIL f ' 1 1 1| ! fGERMANY 44 11 46 w "48" £jJALY 1| % \ i BRITAIN mmnm \\ f 1 18 20 22 !&26 / > X \ fSWSPEN "'6'"' ^spA'm""" 4 2 jrNETHERLANDS lO 12 /-UNITED !4 f STATES \ Y •\ 12 10 Z 4 6 V k \ \ r \ / \ r \ Sit ''' ni\ k H i T • t \ J \SI V \ \ Y \ *** \ \ V -4 > 1 / / y \ \ \ \ MAY 1 1I 1 SEPTEMB. OCTOBER JULY XT h \/V y J T H >J >/ f /IV, 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 TV "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 setas. was 22,450,000 pesetas, as compared with a 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 1,273.73 70.00 1916 1915 1,202.70 620.79 1917 1.289.43 400.00 1,321.64 925.74 66.62 .89 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. 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 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. 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 ! ; ! ; ; i 1 i ! 1 1 j i j ; ' i 1 j i i Pound. ! High. 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 High. Low. 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. 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 one time the amount needed to coin an settlement in silver of trade balances adverse aggregate number of standard silver dollars equal to the 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 stock of gold in the United States, of facilitating signed by the President on April 23. As thus ! existing the settlement in silver of trade balances adverse to the 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 resumed, the amount of silver actually purbe executed at the mints. At the time neither chased being kept by each Secretary of the gold nor silver was in use as money in the Treasury practically at the minimum, $2,000,000 United States, where for more than a decade per month. The following table shows the depreciation of the paper currency had driven purchase of silver under this act in each fiscal specie out of circulation, while for 40 years the • year and the coinage of standard silver dollars silver dollar had been at a premium as comi therefrom: pared with gold, and even before the legaltender 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 of silver dollars had been coined, most of these Fiscal years. Fine ounces. price per Coinage Cost. silver 1 fine dollars. 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. Fiscal yoar July 1— 1891 1892 1893 1894 Total Average price per fine ounce. Amount of silver purchased. Cost. Fine ounces. 48,393,113.05 54,355,748.10 54,008,162.60 11,917,858.78 $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— 1891 1892 1893 1894 1895 1896 1897 18981 Total 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 §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 and by enforcing the most rigid Committee of tiie Federal Reserve Board economy in matters of public and private 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 21,346 217,190 230,164 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. 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. be removed One grade for food; Range from 0° F and .! Protect from doors and ..do Frozen eggs.... Should 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. t i . Egg not i 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. Storage period. 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. 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 27,863,596 33,000 40,000 30,000 5,000 63,000 j 45,000 100,000 | 50,000 300,000 | 60,000 200,000 j 10,000 600,000 "I 120,000 Delaware: WilmingtonWilmington Trust Co Security Trust & Safe Deposit Co Total District of Columbia: W a s h i n g t o n - Continental Trust Co 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 Surplus. 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 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. Mississippi: Laurel—Commercial Bank <fc Trust Co Summit—Union Bank of Pike 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. 1,162,835 30,000 50,000 2,685,461 19,452,965 16,200,000 Total. $177,494 650,000 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 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 <fe Savings Bank $5,000 100,000 125,000 Total. Total resources. Surplus. 2,600,000 100,000 25,000 Total. 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 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 236,313,514 791,749 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 1,160,000 | 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 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 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 Total. 8,609,578 100,000 200,000 250,000 Capital, j Surplus. 1,111,788 I 190,000 8 1,183,656 195,360 400,000 ! 13,144,250 44,840,733 6,500,000 10,000 724,321 39,500 2,465,844 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 ! 55543—18 411 FEDERAL RESERVE BULLETIN. 3,213,787 10,803,034 902,445 450,739 750,140 29,996,271 New York: Batavia—The Bank of GeneBinghamton—Peoples Trust Co : Total resources. $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 4,400,000 | 4,402,944 100,225,433 100,000 40,000 601,196 30,000 j 20,000 580,22c 25,000 | 5,000 154,488 155,000 ; 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 10 500,000 6,000,000; 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 .1 2,000,000 1,000,000 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 i ings & & Trust T C Co Philadelph lphiaC i Trust Co Commercial 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 1,425,000 $5,000 $857,648 5,000 202,037 10,000 1,000,000 936,954 19,770,083 1,060,000 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 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 4,000,000 70,512,352 3,500,000 57,503,575 7,500,000 128,015,927 = - . —: 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 ReRank, i ber of Rank. and Rank. sources. 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 The groups shall be designated by 3111mSenate and House of Representatives. The capitalization. ber 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 of the district. The chairman shall make lists of the are based upon recommendations of the Comp- bank district reserve electors thus named by banks in each of the 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 hundred and thirty serve cities which call for the maintenance of a, greater A BIX/L To amend nine. Revised Statutes of the United 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 assented to the same shall be held for that purpose by the Comptroller of the Currency, in liable in his personal 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« of the Secretary of the Treasury, is "a/ntliorized and liable in his personal and individual capacity for all dam- '• proval require the removal p y M "w & ^' -j to o requi emva of any &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 anyy pprovisi-cn off this actjj 4 tion. The Comptroller of the Currency, with the approval riMH*? and.and. to institute to institute in his in his name -name for the forbenefit the benefit of theof <w t of the Secretary of the Treasury, is authorized and em- aiweeMriMH*? sociation appropriate offii suiti or action i against i the th offending ffd powered, ia-feis-4iaefe4ieH7 to require the removal of any cers and directors, or any or either of them, either before or\hec 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, @SH&By> LEGALLY LJABLE, jhr losses sustained by the association 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&: of the association, and that the same is not hypoth*'SEC. 5147., That each director, when, appointed or books ecated or in any way pledged m security lor 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 17J 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 Representativesj $1,000, as may be required to supply the associations en1 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 icritten or engraved signatures of the president or vice direction of the Secretary of the Treasury, cause plates and the president and cashier; and shall bear such devices and 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-one of the united States." 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 off auch h pageBfr-baakfrbk h l l b i d i shall-be increased in Be it enacted by the Senate and House of Representatives amount equal t l t baak t h ^in ^thot place-where 4 f e i d tho-proposed 4 4 h i of the United States of America in Congress assembled, That of a national h i ? tto bbe lleeateeh t e h PProvided,^ i d d h hovjever, ThtThat i in no caseany person, firm, or corporation applying for or obtaining 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 ^acrai reserve association, shall be guilty of a misdemeanor, and upon 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, under this provision. 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, of the United States of America in Congress assembled, Thator shall purchase to secure debts due to it. "But no such association shall hold the possession of section fifty-one hundred and thirty-seven of the Revised any real estate under mortgage, or the title and possession 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 accommodation in the transaction of chase, hold, and convey real estate for the following pur- IN its business INCLUDING ALL BUILDINGS OE, 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. hundred and thirty-seven of the Revised Stat" Second. Such as shall be mortgaged to it in good faith fifty-one utes 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 associationUnited States and of this Act. who with like intent to defraud or injure, embezzles, abstracts, purloins, or •willfully misapplies any of the moneys, funds,i (c) It shall be the duty of the Comptroller of the Curor 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, and oftener if deemed necessary, showing which such action is brought be less than $250, and no i| in detail all the instances, if any, which 'have not been recovery shall be for a sum less than that amount. i1 previously reported wherein any national banking assoSEC. 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 and in^ behalf of the United States against any On this bill the Senate committee reports as name offending national bank for the recovery of a sum equal 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 is located, and if no newspaper is published in forthwith paid to said shareholder from said bank, and association the place, then in a paper 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 person, or of any company, corporation, or firm, for the following measure as a substitute for H. R. any money borrowed, including in the liabilities of a company 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, drawn7 payable "on or before 30 days after date/ "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 Bank. engaged in the export and domestic sale of the same 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 bank should require if the acceptance grows unless the dealer has in the meantime placed the bank in out of a transaction involving the export of funds to meet them at maturity, or has secured such acceptances 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 of goods to be exported his contract with the who have a large domestic business are under bank should provide (a) that he has entered contract to export food to the Allies. The into a contract for the export of the goods of question has arisen to what extent and under a fixed amount; (&) that the total amount of what circumstances member banks may accept drafts drawn by him under the credit opened drafts or bills of exchange drawn by such 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 doimport or export transactions contracted for mestic transaction, under section 13 they must and in process of execution; (c) that the probe accompanied by shipping documents or the ceeds of drafts drawn against the accepting bank must be secured at the time of acceptance bank under this credit are to be used in conby a warehouse receipt or other similar docunection with the export contracts referred to, ment conveying or securing title to the goods 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 Slightly quieter... i Active | Active; stronger | tone. ! Good Very fair I 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 i1 sets lull in city 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 .._. | checked demand, and orders for future delivery 82,387 794,386 216,068 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 confat cattle. Prices have advanced about $1.50 tinues very small and is far below normal for per hundred weight to the highest levels ever this time of year. Receipts, which for the past known at this time of year, although the remonth on the local market were only oneceipts have been liberal, those for March infourth of those a year ago, are insufficient to creasing one-third over the same month last keep mills running up to their orders for flour. 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 is about 20 pounds heavier than a year ago, for this time of year. Local receipts were four making a substantial increase in the supply of times greater and shipments more than double meats, but the demand has increased correthose of March a year ago. Prices have been spondingly anci reports of stocks of meat in cold maintained on an unusually high level, due to storage thow only moderate gains. Slaughterthe large demand for corn meal and corn flour ings at the chief district markets increased 22 as wheat substitutes. All grain used for this per cent for this month compared with a year purpose is selling higher than the government's ago. fixed prices for wheat. The visible supplies of 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. receipts were only 3 per cent less than for The general condition of wheat is greatly March, 1917, compared with a 30 per cent deimproved. Recent rains have greened up the crease as reported for February. Prices have crop in many sections. The present prospects advanced to new high levels. with continued favorable weather conditions, 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 probably continue to be, that of securing merwheat acreage abandoned, principally in westchandise. Prices during this period are a ern Kansas and Oklahoma, the wheat outlook matter of secondary importance. Retail busion a whole is much better than was expected ness is generally reported very good. Governfrom the unfavorable conditions last fall. ment demands are, of course, given the preferFields are being prepared for corn with spring j ence and filled first, and what remains of the plowing about two weeks ahead of normal and mill products is extended for civilian use. planting started in many sections. Although 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 I Tacoraa at a high tide of activity. Due, how- i 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 terials, and money as sparingly as possible. Washington (Seattle) 22,326,828 17,727,764 40,054,592 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 employ men in any municipal service or underMarch averaged 267,729 barrels a day, approx- ; j taking which is not vitally essential and which imately 5,000 barrels less than the "average can be deferred, is to be as unpatriotic as an daily output during February. March ship- j individual who would spend his entire income nients averaged 284,795 barrels daily. This j regardless.of his country's need. It is a time excess of consumption reduced stored stocks = for every curtailment possible of municipal exby 520,062 barrels, from 31,360,378 barrels on j pense with corresponding reduction of taxation, February 28, 1918, to 30,831,316 barrels on i in order that men and money may be more March 31, 1918.. ! available for the war. No city can justify On April 1 the Salt Lake City branch of this | levying taxes to provide money for undertakbank opened, for business, its territory being ail j of 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-; of clearings and transfers through the gold-settlement ment account. Total credit transfers to New Amounts fund by Federal Reserve Banks, from Mar. 22 to Apr. 18, 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 of— amounted to 3.08 per cent of the total obliga-: Settlement Mar. 28,19.18 Apr. 4, 1918 tioiis settled, as against 3.31 per cent for the i Apr. 11. 1918 preceding four-week period. The large ratio ! Apr. 18, 1918 218,944 ; 357.883 Total 3,027,929 for this period is caused by the gain of §77,- ; Previously 630,319 ! 803', 732 reported for 1918 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. 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 deposits of gold since that date. 38,813 648,401 Total Total changes from May 20,1915, to Apr. 18,1918. 648,401 648,401 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 Increase. Decrease, 19,650 77,914 570,487 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 of— 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 Total for withtransfers withbusiness 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 \ Secured by Agricultural \ Live-stock I bonds or j 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 4.0.1 168,416 : 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 1916. Jan. 3.. Apr. 3. JulyS. Oct. 2. 1917. Jan.1 Apr. 2 July 14-16. Sept. 2 9 . . . Dec. 3 1 . . . . 1918. Jan. 31.. Fob. 28. Mar. 31. Private banks. 87,820,000 I 5,267,000 i 4,898.000 i 810,000 132,000 6110,000 161.000 343^000 15,494,000 ! 21,000,000 i 32,989,000 : 37:798,000 ; 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 66,803,000 I 43,979,000 I 108,597,000 ! 131,997,000 ! 227,717.000 i 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 Nonmember | Nonmemtrust ! ber State companies. banks. Member banks. Foreign bank branches and agencies. 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 $93,000 ! 11,593,000 I 9,770,000 i 14,373,000 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 ! 24,896,909 : 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 Total. $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 March, 1918, dis- 30-day maturities. 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. 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. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis.... Kansas City... Dallas San Francisco. Tota-1. Percent 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 S2,182 39,030 2,498 899 •9,937 00,048 16 to 30 days. Municipal warrants. 791 1,930 2,924 i, 890 -.. 699 . 478 . 2,248 . 5,473 i. 34 Accepttances bought. Bills discounted. Total. 811,403 179,909 18,057 19,630 20,678 11,546 30,657 21,364 1,459 10,105 12,755 16,456 $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. $12,746 130,887 22,440 26,914 9,588 7,417 27,655 8,537 11,122 13,806 5,480 27,473 13,707 37,837 32,087 5,273 18,368 28,855 9,491 i 583,228 1304,065 LI i 9,490 : Percentages. Total. 529 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 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 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 13,120,363 9,000 13120363 || 13,129,363 99000 ,0 , 9 , 3 6 3 |. 45,486,087 16,689,727 2341 || 16,862,068 151,380,585 7,076,000 ! 172,341 '.....I 7,076,000 | 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*e n t 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 3 per cent 3 per & per cent | 4 per cent States 2 per cent cent Pa- j 3 per cent 4 per cent 3 converi-year Liberty | Liberty tificatescercent consols namas of: loan of 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 ! | I I i 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 60,329 924 959 1,074 1,082 703 391 147,522 151,129 151,488 151,709 142,947 164,813 172,790 162,930 165,567 178,449 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 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 2,459 170,493 1 471 183,626 1,471 76,408 1,471 4,427 1,421 2,319 75,801 74,743 72,719 66,172 73,195 1,310 4,056 1,356 6,463 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 37,407 165 124 145 158 133 746 709 583 430 143 130 376 459 291 589 510 511 377 301 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 25,743 366,075 356,954 384,824 387,655 388,845 115,890 135,718 126,624 j 128,370 I 148,741 8,441 9,494 26,893 561 10,349 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 .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 Total. 1,444 511 511 »511 511 1,582 j 1,123 1,345 j 3,365 306 276 296 249 356 San Francisco. 32,167 32.931 18,866 4,830 4,072 132 I 4,239 ; 3,461 852 7,393 ; Dallas. City. 4,670 3,240 3,051 2,166 1,226 66,899 | 92,220 62,052 | 90,713 4,054 j. 18 | | i ! i 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 i 31,489 67,846 ! 97,632 55'266 " 550,915 547,488 547,627 532,803 559,196 Minneapolis. Atlanta. 83 48 28 12 3 2,063 118,811 116,267 117,417 120,267 116,202 442,782 143,527 454,380 144,888 457,882 138,614 459,657 143,281 467,334 147,573 537 537 537 409 528 1,272 I 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 ' •4 notes in circulation—: 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 7,549| 5,946 5,452 j 14,357 4,265 ! 6,588 7,845 ' 11,577 12,858 8,448 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 j 688,218 j 639,016 ! 675,586 i 636,841 I 667.602 14,903 57,650 17,688 52,268 21,747 56,906 21,133 I 65,293 17,088 52.733 87 24,638 38,376 10,021 25,074 32,543 I 34,150 ; 36,709 : 34,682j 31,939 j 15,804 i 17,029 i 22,071 ! 22,817j 24,041 i 1,421 ! ; 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 20,294 25,144 22,132 24,811 22,638 3,168 467 '. 155 I 1,106 :. L 71,704 67,323 66,147 61,938 67,387 Dallas. 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 1,357,428 255,737 259,854 256,150 258,755 257,784 71 122 140 197 276,570 284,735 291,710 286,179 308,633 137,244 132,638 131,431 128,579 132,991 239,270 256,220 235,174 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 56,928 56,744 59,334 58,921 58,541 61,671 61,228 2,903 3,982 3,845 3,831 3,745 .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" 597 638 696 751 761 216,897 3 5 7 5 14 ! 61,592 I 61,307 61,248 | 62,536 | 61,580 ! 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 i 11,002 j 8,788 i 11,723 ! 6,476 ! 17,767 ' j j 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.] 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 delphia. 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 27,796 27796 I 13828 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. Atlanta. 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 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 70,000 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. Boston. Received. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 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 Cleveland. New York. 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 Rich- Atlanta.; A+in-,tn rhinnm phia. | Cleveland. : mond. Chicago. 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 23,368 ; 14,895 17,374 19,742 16,082 35,399 50,616 ! 12,981 j 43,014 j Apr. 19 ! 14,621 Other United States! i bonds, including j Liberty bonds: I j 18,377 10,205 ! 5,197 13,229 11,608 171,639 I 11,072 36,923 37,896 Mar. 22 j 11,320 9,985 '•14,322 167,324 | 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 10,362 ! 35,892 13,666 11,020 18,164 i 34,249 165,953 ; 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 2,632 3,756 2,793 ! 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 ! 28,845 4,704 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 !1 348,265 ! 278.560 il, 347,387 376,542 223,674 452,383 180,864 478,779 Apr. 12 748,703 4,014.234 ! 607; 958 ! 916; 513 349,084 !1 285; 008 |l, 349,987 358,789 233,253 448,321 167,303 j 481,860 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. 1 Cleveland. 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 14,796 217,141 216,609 210,425 211,747 225,745 ; ! 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. Cleveland. San Francisco. Richmond. Atlanta. Chicago. 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 12 Apr. 19 151,484 141,539 139,763 147,743 135,623 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 33340 33;340 33,254 33,008 34,029 I 1O 12,205 1oe !! 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 — "~ 5,124,868 570,440 589,621 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 New York. Philadelphia. 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 " O1° 9,316 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. Banks. Boston New York Philadelphia... Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco.. Total Bills discounted for members and Federal Reserve Banks. 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 §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 ©f goods 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