Full text of Federal Reserve Bulletin : May 1921
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FEDERAL RESERVE
BULLETIN
(FINAL EDITION)
ISSUED BY
FEDERAL RESERVE BOARD
AT WASHINGTON
MAY, 1921
WASHINGTON
GOVERNMENT PRINTING OFFICE
1921
FEDERAL RESERVE BOARD.
EX OPFICIO MEMBERS.
A. W. MELLON,
Secretary of the Treasury, Chairman.
D. R. CRISSINGER,
Comptroller of the Currency.
W. W. HOXTON, Secretary.
W. L. EDDY, Assistant
Secretary.
W. P. G. HARDING, Governor.
EDMUND PLATT, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
WALTER S. LOGAN, General Counsel.
R. G. EMERSON, Assistant to Governor.
W. M. IMLAY, Fiscal Agent.
H. PARKER WILLIS,
J. F. HERSON,
Chief, Division of Examination and Chief Federal
Reserve Examiner.
M. JACOBSON,
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
E. L. SMEAD,
Chief, Division of Reports and Statistics.
II
Director, Division of Analysis and Research.
Statistician.
E. A. GOLDENWEISER, Associate
Statistician.
OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—
Chairman.
C. C. Bullen
W. W. Paddock
J. H. Case
L. F. Sailer
G.L.Harrison
E. R. Kenzel
Boston
New York.
Frederic H. Curtiss
Pierre Jay
Chas. A. Morss.
Philadelphia.
Cleveland
R.L.Austin....
D.C.Wills
George W. Norris.
E. R. Fancher
Richmond.
Caldwell Hardy.
George J. Seay
Atlanta.
Joseph A. McCord.
M. B. Wellborn.
Chicago.
Wm. A. Heath
J. B.McDougal.
St. Louis
Minneapolis.
Kansas City...
Dallas
San Francisco.
Wm. McC. Martin.
JohnH. Rich
Asa E. Ramsay
Wm. F. Ramsey
John Perrin
D. C.
R. A. Young
J. Z. Miller, jr
R. L. VanZandt.
J. U. Calkins
Benj. Strong...
2
i Controller.
Cashier.
Deputy governor.
Governor.
W. Willett.
L. H. Hendricks.i
J. D. Higgins.i
A. W. GUbart.*
Leslie R. Rounds.*
J. W. Jones.i
W. A. Dyer.
H. G. Davis.
Wm. H. Hutt, jr....
M. J. Fleming
Frank J. Zurlinden..
C. A. Peple
R. H. Broaddus
A. S. Johnstone 2
JohnS.Waldena...
L. C. Adelson.
J. L. Campbell.
C. R. McKay...
S.B.Cramer...
Geo. H. Keesee.
M. W. Bell.
W. C. Bachman.i
F. J. Carr.i
K. C. Childs.i
J. H. Dillard.i
D. A. Jones.1
O. J. Netterstrom.i
A. H. Vogt.
Clark Washburne.1
J. W. White.
Frank C. Dunlop.i
B. V. Moore.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.
O. M. Attebery...
W. B. Geery
S. S. Cook
C. A. Worthington
LynnP.Talley...
Wm. A. Day
Ira Clerk»
L. C. Pontious 8 ...
Assistant to governor.
3 Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Manager.
Federal Reserve Bank of—
New York:
Buffalo branch
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Atlanta:
;\. < 'New Orleans branch
Jacksonville branch
P 1 Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Ray M. Gidney.
L. W. Manning.
^Geo. De Camp.
y
Morton M. Prentis.
J
Marcus Walker.
,Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
R. B. Locke.
W.J.P.
Kincheloe.
J.
Heflin.
A. F. Bailey.
Federal Reserve Bank of—
Minneapolis:
Helena branch
!
Omaha branch
Denver branch
! Oklahoma City branch
Dallas:
El Paso branch
Houston branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch
Spokane branch
Manager.
0. A. Carlson.
L. H. Earhart.
C. A. Burkhardt.
C. E. Daniel.
W. C. Weiss.
E. F. Gossett.
C. J. Shepherd.
^Frederick Greenwood.
R. B. Motherwell.
C. R. Shaw.
W. L. Partner.
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN is the Board's medium of communicationfwith
member banks of the Federal Reserve System and is the only official organ or periodical
publication of the Board. It is printed in two editions, of which the first contains the
regular official announcements, the national review of business conditions, and other
general matter, and is distributed without charge to the member banks of the Federal
Reserve System. Additional copies may be had at a subscription price of $1.50 per
annum.
The second edition contains detailed analyses of business conditions, special articles,
review of foreign banking, and complete statistics showing the condition of Federal
Reserve Banks. For this second edition the Board has fixed a subscription price of
$4 per annum to cover the cost of paper and printing. Single copies will be sold at
40 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board.
No complete sets of the BULLETIN for 1915, 1916, 1917, or 1918 are available.
TABLE OF CONTENTS.
General summary:
Page.
Review of the month
503
Business, industry, and finance, April, 1921
514
Condition of the acceptance market
534
Changes in wages
526
Methods followed by city banks in granting accommodation to correspondents
536
Official:
Rulings of the Federal Reserve Board
545
Law department
547
State banks admitted to system
'.
551
Fiduciary powers granted to national banks
551
Banks granted authority to accept up to 100 per cent of capital and surplus
551
Charters issued to national banks
551
Business and financial conditions abroad:
England, France, Italy, Germany, Sweden
552-563
British finance during the war
563
Recent economic developments in South America
572
Price movement and volume of trade:
Domestic—
Wholesale prices in the United States
579
Foreign trade
583
Physical volume of trade
585
Retail trade
598
Wholesale trade
600
Commercial failures
550
Foreign—
Comparative wholesale prices in principal countries
601
Comparative retail prices in principal countries
605
Foreign trade—United Kingdom, France, Italy, Sweden, and Japan
606
Financial and banking statistics:
Foreign—
England, France, Italy, Germany, Sweden, and Japan
608
Condition of principal European banks of issue
611
Domestic—
Discount and open-market operations of Federal Reserve Banks
613
Condition of Federal Reserve Banks
620
Federal Reserve note account
626
Interdistrict movement of Federal Reserve notes
627
Condition of member banks in leading cities
628
Bank debits
634
Operations of the Federal Reserve clearing system
639
Gold settlement fund
640
Gold and silver imports and exports
641
Money outside the Treasury and Federal Reserve System
644
Discount and interest rates in various centers
643
Discount rates approved by the Federal Reserve Board
644
Charts:
Quarterly receipts by British treasury, 1914-1920
566
Deposits and securities at Bank of England, also bank and currency notes, 1914-1920
570
Rate at Bank of England and on three months' treasury bills
568
Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes of international comparisons
580
Physical volume of trade
586
Movement of principal assets and liabilities of Federal Reserve Banks
622
Movement of principal assets and liabilities of member banks
628
Debits to individual accounts
634
IV
FEDERAL RESERVE BULLETIN
VOL. 7
REVIEW OF THE MONTH.
During the recent period of economic readjustment the important relaReadjustment tionships existing between pubsituation,
lie finance and banking have
been apparent, as well as between business and banking. The former
phase of the subject has now become of distinctly less significance than for some time
past. Business readjustment, on the other
hand, has continued to absorb a greater proportion of public attention. It had been supposed that before this time very decided
progress toward the completion of such readjustment would have been attained. The
facts which have come to light during the
past month or more have, however, made it
apparent that the process will be slower than
had been expected. The attention of the
public and of the banking community particularly has therefore been closely concentrated upon the elements or factors which are
of chief importance in the situation with a
view to determining which of them are distinctly responsible for the slowing down of
progress toward normal conditions. A review
of the existing situation shows that the outstanding features of the present problem
include wages, prices, transportation rates,
and costs of raw materials, as well as the
relationship of banking and credit to each
of these fields of economic organization.
Business conditions during the month of
April reflect the varying changes in these
different elements, and suggest that the
significant feature in the present outlook
is the unevehness with which relationships
between the chief factors have been adapted
to one another. Recovery in business, when
viewed at any particular moment, is in fact
distinctly irregular and uneven.
No. 5
MAY, 1921.
This state of things is of fundamental importance to banking and credit
Relation to prospects because of the fact
credit prospects, that complete restoration of
soundness of banking institutions can occur only in proportion as a wellrounded and well-planned system of credit
is again brought into existence. Failure to
restore such a condition in credit necessarily
implies the existence of discrepancies in business progress as between different centers,
while it also involves the continued existence of " frozen" credit in those lines in which
readjustment has been slow and halting
or in which the absence of demand from
other quarters, due to incomplete readjustment and reorganization, has sufficed to hold
back complete adaptation to new conditions.
While it has been customary in many quarters
to regard the slowness of economic readjustment as in large measure due to the curtailment of export demand, the fact remains that a
situation very closely parallel to our own exists
in numerous foreign countries. In fact, the
conditions in some of these countries are
more pronounced and more seriously retarded
than they are in the United States.
While due weight must, of course, be given to
the destruction of wealth resulting from the
war, the* continued and burdensome tax systems which prevail in almost all countries, and
to the general disorganization and uncertainty
resulting in part from disturbed currency and
exchange conditions, it remains true that
these .factors taken by themselves do not
fully explain the state of things in any one
country. If all have been similarly affected,
it is evidently unsatisfactory to attribute
the condition of any one of them to reduction
of export demand. The retardation of the
readjustment process and the fact that it has
503
504
FEDEKAL BESERVE BULLETIN.
MAT,
1921.
proceeded more rapidly in some fields than in associations of middlemen and of retailers who
others evidently calls for additional analysis and by agreement among themselves succeeded in
explanation. The importance of such consid- sustaining prices, not perhaps at their original
erations from the credit standpoint has al- level but at a level considerably above that
ready been made evident. I t would seem to which was warranted by changes in wholesale
be true that in nearly all countries failure to prices. A third element of considerable imbring about a steady and moderate return to portance is seen in the fact that certain elenormal conditions has been in part due to the ments of cost, such as wages, had become
fact that the receding power both of capital and thoroughly stereotyped as the result of law or
labor, and, in fact, of all elements of cost, agreement or by decisions of semigovernhas been different in different industries and mental bodies. Perhaps the best example of
to some extent in different portions of the conditions of this kind is offered by the situasame industry, or in different parts of the tion on our railways and by conditions in
country. Irregularity and uncertainty in some basic lines of industry where positive
the process of readjustment inflicts serious contracts or agreements extending over a
hardship upon those who find their output series of years had been entered into, as, for
falling in price while their expenses are example, coal mining. The effect of the
but little, or not at all, changed. Particu- various retarding factors, at any rate, has been
larly is the hardship of falling return and that of preventing at all times a close correfixed cost felt by the wage earner who is spondence between changes in wholesale and
either partly or wholly unemployed or who changes in retail prices. The progress of the
finds his income reduced at the same time situation may be best illustrated by comparathat he is able to lower but little his actual tive index numbers reflecting wholesale and
cost of living.
retail prices during the past year or more.
These in lex numbers differ materially among
From some standpoints the fundamental
factor, perhaps the foremost
themselves. Wholesale price
Uneven price
i ., .
Showing of in- indexes are far more sensitive
r d cti ns
cause oi this unevenness m
readjustment, is seen in the dex numbers. a n ( j respond far more quickly
irregular movement of prices of commodities
to changes in costs or conditions
that normally move in concert. Such lack of of production than do retail price indexes.
adjustment is seen at practically every stage The field covered by wholesale price indexes
of the productive process, in that a fall in the has also been much more carefully studied
price of raw materials is not adequately re- than has that of retail prices. Retail prices
flected in the price of the manufactured vary considerably as between different localities
article, nor do reductions in retail prices cor- and respond to differences in buying power
respond with those in wholesale. When among consumers, differences in cost of disthe decline of wholesale prices began, several tribution, and other elements. Satisfactory
factors operated to retard the parallel reduc- retail price indexes are in fact not available.
tion of charges made by retailers. One of The Bureau of Labor Statistics publishes such
these was the indisposition on the part of an index including only the prices of foodstuffs,
retailers to sell below their original cost, an but no index numbers are available to show
attitude in which they were supported by the movement of prices of clothing and other
many wholesalers and manufacturers who important elements in the retail price field. As
recognized that the collection of the amounts things stand, the purchaser of commodities at
owing to them would depend upon recovery retail is in a peculiarly difficult situation, beby the retailer from the public of at least a cause of his lack of a standard by which to
substantial percentage of the original cost to judge the fairness of the price which he is exhim of his goods. Another element in the pected to pay for the necessaries of life. He can
situation was undoubtedly the influence of not be expected to be closely acquainted with
MAT, 1921.
FEDEKAL RESERVE BULLETIN.
changes in wholesale prices from day to day,
nor can he in any adequate way allow for the
various factors which prevent such changes
from being immediately reflected in the charges
which are made to him by dealers in consumable commodities. The following table, however, exhibits the movement of prices as shown
by the wholesale price indexes of the Federal
Reserve Board and the Bureau of Labor Statistics and compares with them the index of
the retail prices of foods as published by the
Bureau of Labor Statistics.
Prices in the United States.
[Average price for 1913=100.]
Wholesale Wholesale
price
price
index,
index,
Bureau of
Federal
Labor
Reserve
Statistics.
Board.
January
February
March
April
M»y
June
July
August
September
October
November
December
1920.
Average price for the year...
January
February
March
1921.
Retail
prices of
food,
Bureau of
Labor
Statistics.
242
242
248
263
264
258
250
234
226
208
190
173
248
249
253
265
272
269
262
250
242
225
207
189
201
200
200
211
215
219
219
207
203
198
193
178
233
243
203
163
154
150
178
. 167
162
172
158
156
Special interest attaches to the irregularity
and unevenness with which changes in prices
have progressed in varying groups of commodities since the peak of the price movement was
reached. The figures regularly published by
the Federal Reserve Board for this class of
goods exhibit this situation clearly in contrast
with the figures for the price level of 1913 taken
as a base. Such a comparative showing is
furnished in the following brief tabulation:
Index numbers of wholesale prices in the United States for
principal classes of commodities—Bureau of Labor Statistics—regrouped by Federal Reserve Board.
[Average price for 1913=100.]
Raw materials.
Year and month.
January, 1921
February, 1921
March, 1921
Fan m Animal Forest Mineral Total
proc1- prod- prod- prod- raw mauct 5 .
ucts.
ucts.
ucts. terials.
155
145
136
119
114
116
245
227
213
220
207
197
175
165
158
505
The effect of this price irregularity has been
„„
to inflict serious hardshipr upon
m
Effect of price
,
. ,,
.,
irregularity.
some classes m the community.
Such hardship is especially felt
by the farming class, since the decline in prices
of agricultural products has proceeded much
more rapidly than the fall in prices of those
articles which the farmer needs in the course of
his operations. Whereas certain grains and
cotton have gone back to prewar figures, the
prices of fertilizer, agricultural machinery,
wire, tools, and others have undergone no such
reduction, or in other cases have been maintained at or near their high levels of cost. This
situation has necessarily tended to bring about
an artificial distribution of the load of readjustment among different classes of the community. Those classes which are not organized
for the purpose of keeping up charges to the
other members of the community and which,
therefore, are obliged to absorb their losses
must carry the largest proportion of the load.
In thus specializing and localizing the effects
of readjustment a number of factors have
cooperated. Among them are the wage agreements to which reference has already been
made and which have resulted in putting some
classes of workers upon an entirely different
basis than others; also associations of business
men whose object is that of maintaining prices
by tacit agreement or perhaps of raising them.
Finally may be cited the cases where certain
classes of payments are practically fixed in
amount, as, for example, railroad rates. Suffering resulting from this unevenness in the
movement of prices both in different parts of
the country, as between different products, and
in the retail as compared with the wholesale
field, has been the moving factor in the demand
which has made itself felt in various quarters
for more extensive credit for the purpose of
carrying commodities pending the establishment of the market upon a firmer basis. It has
also been responsible for much of the complaint
about excessive railroad rates and for a large
part of the demand for the immediate enactment of tariff duties designed to protect specified industries against the undue competition of
foreign products in those lines in which prices
have most sharply fallen. So important is the
influence of this price irregularity as to demand
506
FEDERAL RESERVE BULLETIN.
MAY,
1921.
careful discrimination and analysis of the highly organized groups in standard basic infactors which have tended to promote it.
dustries, however, have not as yet experienced
During the past month the Federal Reserve the general reductions that have occurred in
Board has instituted a survey other lines. A wage cut announced by the
e wage si ^ ^ e i a b o r field for the pur- United States Steel Corporation on May 4,
pose of ascertaining to what represents a step toward adjustment.
extent the readjustment process has affected
This condition of things naturally suggests a
wages. The results of this inquiry are reviewed
close connection between high
elsewhere in this issue, but it may be stated
Effect of high w a g e s a n c [ high prices in not a
here that a general survey of plants which a
few classes of business, while it
year ago employed over 1,700,000 workers also throws a bright light upon the effect of
shows a general decline in the numbers em- such high wages and high prices as one eleployed of 25 per cent; the reduction in the ment in retarding completion of the process of
amount of the weekly pay roll has, however, adapting the relationship between the indusbeen even greater, i. e., 29.8 per cent, indicat- tries in which they exist and the rank and file
ing that wage rates have on the average been of other industries. Such retardation takes
somewhat cut. It should be said, however, place through the lessening of demand in other
that as many of these plants were working a industries for the products or services turned
greater number of hours per week, often over- out by the high-price industries, or may result
time, a year ago, some part of the pay-roll from the fact that in those cases where the
reduction is undoubtedly to be attributed to products of high-price industries are ranked
this fact and may have taken place without as "necessities" they exact from the other
reductions in wage rates. But supplementary industries which consume their output an
information indicates that ih& actual rates paid undue share of the product of the latter. The
have been reduced, this being especially true President in his opening message to Congress
in the case of unskilled labor and to a certain on April 12 referred to this situation as reported
extent in the case of unorganized skilled labor. to him by the Federal Trade Commission, and
In some instances, especially in the southeast- said:
ern portion of the United States, ordinary un"One condition in the business world may
skilled labor has sustained reductions of fully well receive your inquiry. Deflation has been
50 per cent. The great group of textile work- in progress but has failed to reach the mark
ers has been affected also by wage reductions, where it can be proclaimed to the great mass
as have iron and steel workers in the independ- of consumers. Keduced cost of basic production has been recorded, but high cost of living
ent mills.
has not yielded in like proportion. For
According to information published by the example, the prices on grains and live stock
Bureau of Labor Statistics, the increase in have been deflated, but the cost of bread and
weekly full-time rates of wages of workers in meats is not adequately reflected therein. It
to be expected that nonperishable staples
certain well-organized groups, such as the is
will be slow in yielding to lowered prices, but
building, printing, trucking, and metal trades, the maintained retail costs in perishable foods
was 89 per cent between 1913 and May, 1920. can not be justified.
" I have asked the Federal Trade Commission
Such statistics of course do not take account
either of increases in earnings due to overtime for a report of its observations, and it attriin the main, the failure to adjust conor reductions in earnings due to unemploy- butes,
sumers' costs to basic production costs to the
ment However it seems likely that during exchange of information by 'open-price assothe past year, i. e., since May, 1920, weekly ciations, ' which operate, evidently, within the
rates of wages of these particular classes of law, to the very great advantage of their
workers have not been materially changed, members and equal disadvantage to the conpublic. Without the spirit of hostility
although earnings have been very generally suming
or haste in accusation of profiteering, some
reduced as a result of lack of employment. suitable inquiry by Congress might speed the
Railroad workers and coal miners and other price readjustment to normal relationship,
MAT,
1921.
FEDERAL RESERVE BULLETIN'.
with helpfulness to both producer and consumer. A measuring rod of fair prices will
satisfy the country and give us a business reyival to end all depression and unemployment."
The report from which the President quoted
in this message, after reviewing the situation
and discussing conditions in the price field,
stated the following view with respect to the
question of readjustment as such:
" I t should be said in conclusion that following the disordered condition of the world's
affairs, a shrinkage in values is inevitable and
that normal conditions will be the more quickly
restored if the producer, the laborer, the manufacturer, the jobber, and the retailer will each
share at once in the unavoidable loss, and
further that any effort by any element to
place its share of the common loss on the
shoulders of others, and particularly of the
consumer, can but result in a continuation of
the conditions under which the country is now
suffering."
A phase of the readjustment situation which
will necessarily receive very
rate problem.0* careful attention as an element
in the restoration of business to
a satisfactory condition is the problem presented by railroad rates. The advance of
prices and costs during the war necessitated an
increase of rates during the period when the
roads were under Government control, which
amounted to between 25 and 40 per cent of
their previous level. This amount did not
prove sufficient to furnish the roads with a revenue adequate to their expenses. Railroad
wages were several times advanced during the
war, the aggregate increase amounting to 150
per cent of prewar wages. The increase in
wages and in the number of men employed is
estimated to have added probably about
$2,400,000,000 to the gross wage bill of the
roads as compared with the amount disbursed
on that account in 1914. The fact that rates,
even with the heavy traffic which developed
during the war, were not sufficient to meet
expenses is shown by the necessity the Government was under of appropriating from March
21, 1918, when the "revolving fund" was
created, down to and through the Transportation Act, about $2,682,000,000 for the purpose of making up to the roads the amounts
whieh were necessary to enable them to meet
507
operating expenses and provide for capital expenditures. Provision was thus made to pay
their security holders the same dividends and
interest which had been disbursed to the latter
during the period before the war and for continuing guaranties for a six months' period after
the close of Government operation. When the
reaction in business set in there was a large curtailment of the volume of traffic, with the result
that although railroads were able to reduce their
wage bills by reducing their staffs of employees
the loss of operating revenue went so far as to
wipe out in many cases their net earnings and
in many cases a deficit resulted. Rates had
again been raised to the extent of 25-40 per cent
of their then existing level by the action of the
Interstate Commerce Commission in August,
1920, but these advances, like those which were
made under Government control during the
war, were not adjusted to the necessities of the
different kinds of traffic, with the result that
some classes of rates were raised to a point
that was unproductive of additional revenue.
Since that time considerable reductions have
been made in selling prices, while freight rates
have remained the same. The most general
way of measuring changes in freight rates is
by calculating the revenue per ton per mile.
Such calculations show that before the increase
in rates which occurred last summer prewar
rates had been advanced by approximately 35
per cent. Since then there has been on the
average for the country as a whole the further
increase of 25 to 40 per cent. While in the
eastern district rates have been increased by 40
per cent, in the southern and western districts
the increases have been less. On the average,
present freight rates are approximately 72 per
cent above prewar. The view is frequently
expressed that a readjustment of rates will
probably result beneficially both to the roads
and to shippers. As things stand, the effect
of the present level of rates is undoubtedly
that of tending to interfere with the normal
movement of products and the well-developed
relationship of markets and industries. The
Secretary of Commerce in some recent remarksspoke of present rates on agricultural products
as being so high that their continued maintenance would necessitate a rewriting of the
508
commercial geography of the country, meaning
thereby that with rates at their present level
or basis of adjustment various classes of producers were unable to put their products successfully into competitive markets. In this
state of affairs it would seem that the result of
existing conditions in the railroad rate structure is twofold, (1) railroad charges and costs
are at present retained upon a basis which has
undergone no readjustment such as has
occurred in other branches of industry, so that
they exact too large a proportion of the selling
price of commodities, while (2) the lack of satisfactory adaptation of the rates to the various
types of freight has resulted in preventing the
movement of some classes of commodities to
competitive markets. Moreover, increased expenses of delivery render it difficult or impossible for consumers to purchase freely so long as
they are not able to get higher prices for their
own products than are now prevalent.
The condition of business is illustrated by
Domesticbusi- the index numbers of producness indexes.
tion and trade regularly computed by the Board, notwithstanding that they
are, as heretofore remarked, necessarily about
30 days behind the date of publication. The
latest figures for these indexes are, however,
presented herewith:
[000 omitted.]
February,
1921.
March, 1921. March, 1920.
Rela- Total. Rela- Total. RelaTotal. tive.
tive.
tive.
Receipts of live stock at 15
western markets (head)
4,738
Receipts of grain at 17interior
66,515
centers (bushels)
Sight receipts of cotton (bales)
745
Shipments of lumber reported by three associations (million feet)
538
Bituminous coal production
30,851
(short tons)
Anthracite coal production
7,845
(short tons)
Crude petroleum production
35,348
(barrels)
Pig-iron production (long
1,937
tons)
Steel-ingot production (long
tons)
1,749
396
Cotton consumption (bales)..
94.7
5,004
100
97.9 78,899 116.1 67,920
554
93.5
.5
797
100
100
4,700
664
93.9
910
100
64.8 46,832
100
7,857
100
98.6 40,802 113.8 35,831
100
57.4
1,596
47.3
3,376
100
53.0
68.7
1,571
47.6
76.0
3,299
576
100
100
59.1
65.9 30,328
99.8
7,603
72.9
96.8
As shown by an analysis of these figures, but
little reduction in volume or activity is revealed in some classes of business, while in
others the reaction has been very pronounced.
MAT, 1921.
FEDERAL RESERVE BULLETIN.
The business situation thus parallels quite
closely the status of things in regard to wages
as already illustrated by the Board's wage
investigation. In some branches of industry
and business the volume of production remains nearly normal and the flow of commodities from producer to consumer at least reasonably so, while in others the reduction has been
marked and decisive, just as in some branches
of employment considerable decline in wages is
noted notwithstanding that in others the level
of pay remains practically unaffected. Altogether, therefore, business restoration may be
said to be progressing as fast as the conditions
of readjustment, the modification of rates,
wages, profits, and the like, and the economic
pressure of organizations of producers and
employees will permit.
The conditions which have tended to retard
readjustment in the United
Foreign business position.
gtates have in near
l yJ a H
cases
operated in a similar way in
foreign countries. There has been the same
difficulty in bringing about a parallel change
in retail and wholesale prices abroad that has
been experienced in the United States, while
the difficulties growing out of the fact that
some industries adapted themselves to the new
conditions much more rapidly than others have
given rise to the same one-sidedness in the new
development that has been witnessed here.
Added to these general—not to say universal—
obstacles to the restoration of a harmonious
price and cost situation has been the difficulty
of foreign trade growing out of fluctuations in
exchange. The past few weeks have seen but
little improvement in this regard and the general outlook has been if anything impaired as a
result of the delay in effecting a satisfactory
settlement of the German reparations question.
Lack of such settlement has seriously interrupted trade between the central empires and
other countries, while it has left producers and
exporters throughout the allied nations in a
condition of doubt with reference to the date
at which the return of less uncertain conditions
mightbe expected. Labor controversies in some
of the allied countries also have tended to check,
or even have stopped, the production of essential commodities such as coal and have thereby
limited the scope of actual foreign trade.
MAT,
1921.
FEDERAL RESERVE BULLETIN.
509
The movement of exchange rates has been as 407,000,000 pounds a year ago. Exports of
follows:
wheat, corn, and barley, however, continue to
Foreign exchange rates.
move in larger volume than in the same
month of 1920. In the nine months ending
Week ended—
March, 1921, wheat was exported to the
Apr. 2.
Apr. 9.
amount of 224,000,000 bushels, compared with
95,000,000 bushels in the similar period of
High.
High.
Low.
Low.
1919-20. These official trade statistics indi3.9288
3.8788 cate that our foreign trade is at last returning
3.9350
3.9038
England
.0715
.0698
.0705
.0691
France
.0442
.0413 to a more normal balance between exports and
.0419
.0400
Italy
.1400
.1382 imports, and if there is anything unexpected
.1405
.1395
Spam
.0164
.0161
.0161
.0158
Germany
.1734
.1722 in the latest returns it is that the readjustment
.1743
.1722
Switzerland
.2370
.2335
.2370
.2315
Sweden (Stockholm)
.3470
.3442
.3463
.3435
Holland
The unfortunate
.0745
.0727 has been so long delayed.
.0736
.0722
Belgium
.3321
.3188 feature of the present trade situation is in the
.3369
.3333
Argentina
.4938
.4788
.4888
.4788
China (Hongkong)
.6563
.6338 inability of many foreign countries to meet
.6513
.6288
China (Shanghai)
.4825
.4825
.4825
.4825
Japan (Yokohama)
.8950
.8863 their obligations, with an accompanying cur.8875
.8813
Canada
.5900
.5725
.5825
.5638
Bar silver in New York
tailment of export credits extended by us in
this country. Under these circumstances the
Week ended—
improvement of our export trade on a scale at
Apr. 16.
Apr. 23.
all commensurate with our agricultural and
industrial
capacity therefore presents an imHigh.
High.
Low.
Low.
portant commercial and financial problem.
3.9250
3.8863
3.9438
3.9200 Figures for European countries, while not yet
England
.0715
.0707
.0736
.0712
France
.0494
.0444
.0488
.0465 available in detail, are likewise reported to
Italy
.1401
.1380
.1390
.1381
Spain
.0163
.0157
.0161
.0138 show a very material slowing down in the
Germany
.1736
.1727
.1733
.1729
Switzerland
.2385
.2355
.2380
.2359 movement toward recovery, due to the diffiSweden (Stockholm)
.3468
.3450
.3484
.3460
Holland
.0745
.0734
.0755
.0731 culties which have already been sketched and
Belgium
.3259
.3177
.3179
.3154
Argentina
.5138
.4938
.5188
.5038 which have been generally
reflected in a
China (Hongkong)
.6688
.6538
.6738
.6588
China (Shanghai)
.4825
.4825
.4825
.4825 decline of buying power in most of the counJapan (Yokohama)
.8925
.8825
.8925
Canada
.6375
.5863
.6200
tries of the world. In those countries, like
Bar silver in New York
some of the South American States where
In so far as relates to our own trade with moratoria have been declared, further importaforeign countries, the tenden- tion, particularly from the United States, has
Foreign trade. ^
^ ^ w e p e n o t e d ft m ( m t h
been brought almost to a standstill because
ago have become increasingly plain with the of the difficulty of absorbing and paying for
publication of the official figures for March. goods which were already on hand.
The value of exports declined to $387,000,000,
Eeflection of the unevenness of readjustas compared with $489,000,000 in February and
ment can be seen in the bank$820,000,000 for March, 1920. Imports, on the
in
situation in various
Parts
other hand, which are reported at $252,000,000, suUs^oVunevIn §
readjustment.
of the country. It is illusshow somewhat of an increase over the low
trated by the rapid growth of
figures recorded in January and February, reserves and lending power in some of the
although remaining at only about one-half the reserve districts as compared with a much
level of imports in March of last year. The slower development under these heads in
drop in exports is due partly to price declines, other districts. As has been shown in an
but the fact remains that exports of many lines earlier number of the BULLETIN, it has been
of goods, more especially manufactures, are at true throughout the readjustment process that
a standstill. Among raw materials the most certain of the Federal Reserve Banks were connoticeable reduction in the quantities exported tinuous and steady lenders while other Federal
occurs in the case of cotton, the exports of which Reserve Banks were and have since continued
in March were 195,000,000 pounds as against to be during much of the past winter and
510
FEDERAL RESERVE BULLETIN.
spring borrowers or rediscounters at other
Federal Reserve Banks. The growth of reserve resources in some of the Federal Reserve
Banks which have been steady lenders to others
has resulted in some unusually high reserve
percentages within the past few weeks. At
the Federal Reserve Bank of Boston, for example, there has been a steady accumulation
of reserve funds which has brought the cash
reserve of the bank as high as about 74 per
cent of its outstanding liabilities. On April 15
the Federal Reserve Bank of Boston accordingly announced a 6 per cent rate on 90-day
commercial paper, at the same time, however,
raising its rate on notes secured by Government
obligations from 5J per cent to 6 per cent, and
thus putting into effect a uniform 6 per cent
rate applicable to all classes of paper offered to
it for rediscount by its member banks. A reduction to 6J per cent on all classes of commercial paper was announced by the Federal
Reserve Bank of New York on May 4. No other
changes were announced prior to that time.
During the autumn and winter of 1920-1921,
the development of interreserve bank accommodation reached a high point. But in recent
weeks there has been a steady reduction in the
amount of such interbank indebtedness produced by the gradual liquidation of interbank
accommodations. The amount thus advanced
had been cut to $17,437,000 by April 22. The
following table shows the reserve position of
the several Federal Reserve Banks, both with
and without the adjustment which is due to
consideration of the advances made to them by
others.
Reserve ratio of 12 Federal Reserve districts, Apr. 22, 1921.
District.
No.l Boston)
No. 2 New York)....
No. 3 Philadelphia).
No. 4 Cleveland)
No. 5 Richmond)...
No.6 Atlanta)
No. 7 (Chicago).
No. 8 (St. Louis)
No. 9 (Minneapolis) —
No. 10 (KansasCity)...
No. 11 (Dallas)
No. 12 (San Francisco).
System.
Actual.
Adjusted.*
Per cent. Per cent.
71.9
72.4
53.9
54.6
54.8
54.8
67.0
68.3
42.7
37.6
45.7
45.7
48.1
48.1
57.0
57.0
39.8
39.8
42.3
42.3
40.6
33.5
56.2
56.2
54.1
i Adjusted to eliminate the effect of rediscount operations.
54.1
MAY, 1921.
Parallel information is obtained when attention is given to the position of the member
banks in the several districts. Figures on that
subject show that the extent of accommodation required by member banks in some parts
of the country and the duration of the period
for which they require funds is very much
greater relatively speaking than elsewhere.
One of the best indications of the character
of the business situation is
Credit activity. afforded by the debits to individual deposit account which
the Board has gathered on a weekly basis for
nearly three years past. Reference has
already been made on a former occasion to the
showing afforded by these indexes. In recent
months the credit activity index points to a
very sharp reduction in the use of bank deposit
accounts. The latest figure computed upon a
monthly basis is $34,160,000,000 for March,
1921, while the general course of events in connection with these indexes may be observed in
the following table:
Volume of business as shown by debits to individual accounts.
[In millions of dollars.]
April, 1920
May, 1920
June, 1920
July, 1920
August, 1920
September, 1920
October, 1920
November, 1920
December, 1920
January, 1921
February, 1921
March, 1921
April, 1921
41,598
41,375
39,779
39,910
36, 334
37,195
40,503
39,877
41,834
38,310
29,915
34,160
32,470
As shown by these figures, a falling off in the
activity of credit during recent months is
observable, although an upward movement in
March is noted. With this should be compared the situation revealed in the recent
report of the Comptroller of the Currency,
which shows a decline of about $1,500,000,000
in the total deposit accounts of all national
banks since a date approximately a year ago.
This falling off of about 10 per cent in the gross
outstanding amount of national-bank deposits
is the result of the lessened activity of credit.
Borrowers who find the activity of their
credit reduced naturally endeavor to cur-
MAT,
1921.
tail the amount of balances upon which they
are paying interest at the banks, so that, a
decline in the total volume of credit outstanding may be expected to follow a corresponding decline in the activity of credit itself. A survey of the returns from +,he several
districts shows a considerable amount of
variation in the relative degrees of credit
activity, the falling off seeming most noteworthy in those regions where the reduction of
industrial operations has resulted in a smaller
turnover for wages and being less marked in
those portions of the country where large
disbursements are steadily made for consumptive purposes, as in centers of population,
where distributive industry has been less
sharply affected than manufacturing.
Treasury finance operations during the past
month have included further issues
°^ certificates and the settlement of interest due on the
fourth Liberty loan. Total ordinary receipts
for the month have been $296,170,666, and
ordinary disbursements $494,091,190, resulting
in a deficit on ordinary account of $197,920,524.
The March 31 daily statement of the United
States Treasury shows that the total receipts
from income and excess-profits taxes had
amounted to about $727,000,000 as compared
with approximately $918,000,000 on the corresponding date a year ago. This shows a decline of less than $200,000,000 in the total receipts from income and excess-profits taxes
and is a much more favorable outcome than
had been expected. Most predictions had
placed the income and excess-profits taxes returned at a decidedly lower level. The total
of Treasury certificates offered during the
month was $150,000,000 and the amount
allotted $190,511,500. Transactions have proceeded with comparatively little disturbance
to banking and financial conditions during the
month, the withdrawals from banks being well
distributed and at no time of sufficient amount
to cause serious disturbance. In consequence
there has been neither stringency nor plethora
in the financial markets which could be directly
traced to Government operations whether in
connection with taxation, sale of certificates,
or disbursement of interest.
511
FEDERAL RESERVE BULLETIN.
During the month ending April 10 the net
inward movement of gold was
ver impo^safd W W O O O , as compared with
a ne
exports.
^ inward movement of
$61,768,000 for the month ending March 10. Net imports of gold since
August 1, 1914, were $1,067,032,000, as may
be seen from the following exhibit:
[In thousands of dollars.]
Imports.
Aug. 1 to Dec,.31,1914.
Jan. 1 to Dec. 31,1915..
Jan. 1 to Dec. 31,1916..
Jan. 1 to Dec. 31,1917..
Jan. 1 to Dec. 31,1918..
Jan. 1 to Dec. 31,1919..
Jan. 1 to Dec. 31,1920..
Jan. 1 to Apr. 10,1921..
Total.
1
Exports.
Excess of
imports
over
exports.
23,253
451,955
685,745
553,713
61,950
76,534
417,181
196,707
104,972
31,426
155,793
372,171
40,848
368,185
322,091
4,520
181,719
420,529
529,952
181,542
21,102
1291,651
95,090
192,187
2,467,038
1,400,006
1,067,032
Excess of exports over imports.
France furnished $44,652,000 and England
$18,471,000, or about 48 and 20 per cent,
respectively, of the $92,403,000 of gold imported during the monthly period ending
April 10, Canada, Sweden, Netherlands, China,
British India, and South American countries
furnishing most of the remainder. Of the
gold exports, amounting to $508,000, over
two-fifths, or $244,000, was consigned to
Mexico and the remainder to Canada and
Hongkong. Since the removal of the gold
embargo, on June 7, 1919, total gold exports
have amounted to approximately $680,407,000,
the net exports amounting to $29,422,000. Of
the total exports, $195,414,000 was consigned
to Japan, $146,555,000 to Argentina, $72,038,000 to Hongkong, $67,396,000 to China,
$41,052,000 to British India, $29,778,000 to
Spain, and the remainder principally to
Mexico, Uruguay, the Dutch East Indies,
Canada, the Straits Settlements, and Venezuela.
During the same monthly period the net
inward movement of silver was $860,000, as
compared with a net inward movement of
$1,275,000 for the month ending March 10.
Net exports of silver since August 1, 1914,
were $455,600,000, as may be seen from the
following exhibit.
512
FEDERAL RESERVE BULLETIN.
[In thousands of dollars.]
Imports.
Aug. 1 to Dec. 31,1914
Jan. 1 to Dec. 31,1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31,1917
Jan. 1 to Dec. 31,1918
Jan. 1 to Dec. 31,1919
Jan. 1 to Dec. 31,1920
Jan. 1 to Apr. 10,1921
Total
Exports.
Excess of
exports
over
imports.
12,129
34,484
32,263
53,340
71,376
89,410
88,060
14,414
22,182
53,599
70,595
84,131
252,846
239,021
113,616
15,086
10,053
19,115
38,332
30,791
181,470
149,611
25,556
672
395,476
851,076
455,600
MAT, 1921.
at the close of the period shows a decline of only
one-half per cent from the March 25 total.
A larger relative reduction is seen in the
total figures of accommodation of the reporting
member banks at the Federal Reserve Banks.
Total borrowings from the Reserve Banks declined almost steadily from $1,764,000,000 to
$1,583,000,000, or from 11 to about 10.1 per
cent of the banks' aggregate loans and investments. For the member banks in New York
City, a reduction of accommodation at the
local Reserve Bank from $605,000,000 to $542,000,000, and a decline in the ratio of accommodation from 11.7 to 10.8 per cent, are noted.
In the following table are shown figures of
principal items in the weekly statement of
reporting member banks:
Mexico furnished over 58 per cent, or
$2,035,000, of the $3,509,000 of silver imported during the monthly period ending
April 10, the remainder coming principally
from Peru, Canada, Honduras, and Chile.
Silver exports, amounting to $2,649,000, were
consigned principally to England, British
Reporting member banks.
India, Japan, China, Hongkong) and Canada.
[In millions of dollars.]
Loan liquidation by member banks conRedistinued during the month in
counts
Num- Loans and1 and
The banking
bills Ratio of Net deber of discounts payable
m o ( j e r a t e volume and is resituation.
reportand
accommo- mand
with
deDate.
flected in reduction of dein
investdation
Federal
(3-*-2).
ments.
Reserve
posits and of borrowings from the Federal
Banks.
Reserve Banks. Government operations were
3.
not sufficiently heavy to neutralize the effect
Per cent.
of commercial loan liquidation, with the conse823
15,983
Mar. 25.
1,764
11.0 10,186
822
15,903
1..
1,685
10.6 10,271
quence that the reserve ratio of the Federal Apr.
821
15,777
Apr. 8..
1,630
10.3 10,204
820
15,756
15.
10.0 10,263
1,581
Reserve Banks shows a rise of more than 3 Apr.
821
15,629
Apr. 22.
10.1 10,127
1,583
per cent during the four weeks between March
i Including rediscounts with Federal Reserve Banks.
25 and April 22. During this period total loans
and discounts of reporting member banks
For the four weeks between March 25 and
show a continuous decline by about $354,- April 22, the Federal Reserve Banks report
000,000, all classes of loans sharing in the further liquidation of $172,800,000 of disgeneral decline—loans secured by Govern- counted bills, of $18,600,000 of purchased acment obligations to the extent of $22,000,000; ceptances, and of $10,200,000 of Treasury cerloans secured by corporate obligations to the tificates, largely "Pittman" certificates held
extent of $54,000,000, and other loans and on deposit with the Treasurer of the United
discounts, composed largely of commercial States to secure Federal Reserve Bank note
loans proper, to the extent of $233,000,000. circulation. On March 31 and April 15 the
Changes in the investment block were less Government redeemed $3,500,000 of these
uniform. Thus the banks report an increase of certificates from the New York and Chicago
about $7,000,000 in their holdings of United banks upon deposit by these banks of equivStates bonds and notes, and liquidation of about alent amounts of lawful money to reduce
$36,000,000 of Treasury certificates, notwith- their liabilities upon Federal Reserve Bank
standing an increase in holdings of $69,000,000 notes, while on March 29 and April 19 it
reported on April 15, in consequence of the al- redeemed $10,000,000 of Pittman certificates
lotment on that date of $190,511,500 of loan held as excess collateral by the Boston, New
certificates. Considerable fluctuations are York, Philadelphia, Atlanta, Chicago, and
shown in net demand deposits, though the total Dallas banks. An increase of $3,300,000 is
MAT,
1921.
FEDERAL RESERVE BULLETIN.
513
shown in the holdings of other certificates,
Some of the principal changes in the status
composed largely of certificates taken over of the Federal Reserve Banks are brought out
from nonmember banks under short-term re- in the following exhibit:
purchase agreements. In consequence of the
Federal Reserve Banks.
[In millions of dollars.]
above changes, total earning assets of the
Federal Reserve Banks show a continuous
Bills discounted.
decline for the four weeks of $201,700,000, and
Federal
Reserve
Secured by
on April 22 stood at $2,490,700,000, or 27 per
ReTotal
notes
in serve
United
Date.
States
deposits. actual
cent below the figure reported on October 15,
ratio.
All
circuGovernother.
lation.
ment
1920, and about 22 per cent below the total
obligations.
shown on the corresponding date last year.
Rediscounting operations are reported by Mar. 25
1,841
2,931
1,276
50.8
1,010
1,789
2,908
pr.l.
1,264
52.4
951
the Richmond and Dallas Reserve Banks. On AApr.
2,894
8.
1,219
1,745
53.5
936
2,869
15
1,175
53.7
929
1,755
April 22 these two banks had outstanding with Apr.
Apr. 22
1,171
54.1
943
2,857
1,749
the Boston, New York, and Cleveland banks
a total of $17,400,000, of which $10,000,000
The Federal Reserve Board on April 13-15
represented the amount rediscounted by the
held conferences with the govRichmond bank with the Federal Reserve Meetings and
e r n o r s a n ( j certain of the direcBank of New York.
tors of the several Reserve
Total deposits show a decline for the period Banks in Washington. A portion of the session
of $91,500,000, all classes of deposits, but was devoted to a general review of credit conlargely those on Government account, sharing ditions throughout the country and to discusin the decline. Federal Reserve note circula- sion of current rates of interest and discount.
tion continued its decline from $2,930,700,000 The situation of the member banks and the
to $2,856,700,000, or at an average weekly rate extent to which they are required to get addiof $18,500,000. Between December 23, 1920, tional accommodation was also taken under
and April 22 of the present year the decline in careful advisement.
Federal Reserve note circulation amounts to
$548,200,000, or to 16 per cent, while as com- Index-Digest of Federal Reserve Bulletin.
pared with the total reported on the correThe Federal Reserve Board will publish
sponding Friday last year, the decline is
shortly,
primarily for its use and that of Fed$211,600,000, or 7 per cent. There is also
eral
Reserve
Banks, an index-digest of the
noted a reduction during the four weeks under
FEDERAL RESERVE BULLETIN, prepared by Mr.
review of $15,900,000 in the Reserve Banks'
net liabilities on Federal Reserve Bank notes, C. S. Hamlin, one of its members. The digest
as against a reduction of $13,500,000 in the covers the first six volumes of the BULLETIN,
amount of Pittman certificates held by the from the years 1914 to 1920, inclusive, and
contains an abstract of all published decisions
banks.
and rulings of the Federal Reserve Board and
A further gain for the period of $87,300,000
of the other matter contained in the BULLETIN.
is shown in gold reserves, as against a loss of
The Board will print a sufficient number of
$16,500,000 in other reserves. Since the becopies to supply the demand of banks and
ginning of the year gold holdings of the Federal
Reserve Banks, largely through purchase of others who may desire to purchase it.
The price will be $2 per volume, bound in
imported gold, have increased by $235,300,000.
cloth
in the same manner as the BULLETIN.
7
During the four weeks the banks reserve ratio,
Subscriptions
should be addressed to the Fedowing to the substantial reductions in note and
eral
Reserve
Board,
Washington. As the edideposit liabilities and the simultaneous gains in
tion
is
to
be
a
limited
one, those desiring copies
cash reserves, shows a steady rise from 50.8
should
send
in
their
orders
promptly.
to 54.1 per cent
514
FEDERAL RESERVE BULLETIN*.
MAT, 1921.
BUSINESS, INDUSTRY, AND FINANCE, APRIL, 1921.
Complete business recovery is proving to be slower than was predicted by many observers
at the close of the year 1920. The expectations of many that the spring of 1921 would see
economic and business readjustment fairly completed have not been realized. The month of
April has, however, given evidence of the development of an improved feeling in many sections
of the country with regard to the business situation and outlook. While there is still much
uncertainty as to when the readjustment now in process may be expected to reach its end,
and while the business situation in some sections of the country and in some fields of industry
is still beset with difficulties, some of the recent factors of uncertainty are either being
eliminated or are of diminishing importance. Moreover, increasing appreciation of the nature
of the readjustment process in business circles and in the community at large is focusing
attention upon the factors that are delaying business recovery and is promoting discussion with
a view to removing obstacles and expediting the return to normal conditions.
The point upon which the business situation has pivoted since the recession movement
began last autumn has been prices. The fall of wholesale prices, which has been continuous
and at times precipitate in recent months (especially for the agricultural raw materials
group), appears to be in process of arrest. At any rate, many wholesale prices have shown a
greater degree of stability during the month of April. Prices of many basic commodities
have shown, both by general index numbers and by reports from the several Federal Reserve
districts, less sensitiveness than during the preceding month. This fact is being recognized by
buyers, who are showing an increasing disposition to regard present price levels as a satisfactory
basis for dealings.
Among the factors that are retarding readjustment are retail prices, high transportation
charges, wages, and the relatively high prices of such highly important requisites of production
as coal and steel. The most important immediate point at which the readjustment process
appears to be "sticking" is the retail price situation.
Wage and employment conditions were recently made the subject of a special inquiry by
the Federal Reserve Board, the results of which are given in this issue of the BULLETIN. While
the inquiry shows that labor is participating in the process of readjustment, the participation has been uneven as between different sections of the country, as between different
lines of industry, and as between different groups of labor. Wage readjustment has been
greater among unskilled workers and those not possessed of a strong trade organization,
and especially in sections of the country whose industries have felt in a peculiarly high degree
the effects of readjustment.
So far as the various industries themselves are concerned, the outlook continues good in
nearly all branches of agriculture, with favorable crop prospects and a substantial acreage.
Conditions in the iron and steel industry, despite the fact that the United States Steel
Corporation has made a moderate reduction in prices, show little change. No improvement
in condition has been noted in connection with the nonferrous metals, and most of the principal copper mines have suspended mining operations. The textile industry has continued to
show a seasonal increase in productive activity and this has extended to the knit goods and
other allied branches of the trade. In the retail field demand has been well sustained in the
eastern sections of the country. Wholesale trade has shown an upward tendency, due, no
doubt, to the depletion of the stocks of retail dealers which were already low and have been
further reduced by the seasonal spring demand. Financially the month has been quiet, with
indications of betterment in condition. There still remain large unliquidated loans in certain
parts of the country representing commodities which are being carried over from last year and
which the banks have had to provide for. In some parts of the country building activity has
shown distinct improvement. Export demand continues to be light and declining, while the
increase in idle tonnage is marked. About 46 per cent of the vessels owned by the United States
Shipping Board are now laid up.
MAT,
AGRICULTURE.
The agricultural situation during the month
may be characterized as generally favorable.
The unseasonable cold wave whicn swept over
the country about April 1 did some injury to
the spring wheat, but had very little effect upon
the winter wheat. Thus, in district No. 11
(Dallas) it is stated that "reports from the
wheat belt are generally satisfactory, and indicate that the crop is in excellent condition,"
and in district No. 8 (St. Louis) " little damage
was done to winter wheat by the recent low
temperature." However, the cold wave
checked the ravages from the pests which had
been prominent because of the especially mild
winter and very little further trouble is contemplated. The condition of winter wheat on
April 1, as reported by the Bureau of Crop
Estimates of the United States Department of
Agriculture, was 91 per cent, as compared with
75.6 per cent on the same date of 1920. On the
basis of this report, it is estimated that there
will be a very large production, nearing a banner
year in winter wheat. The estimated production is 621,000,000 bushels as of April 1, 1921,
against 577,763,000 bushels on April 1, 1920,
wnile the acreage for 1921 is 40,605,000 acres, as
against 41,757,000 acres on April 1, 1920. The
seeding of spring oats has been practically completed in most sections and a considerable
amount is already up and in good condition.
Corn planting has made good progress, especially in some of the southern sections, although
it has been delayed in others by the wet and
cold weather. In most sections the germination of the seed has been retarded either by
the cold weather or lack of moisture.
FRUIT.
The fruit throughout the fruit-growing sections suffered from the cold wave which was
followed by frost. District No. 12 (San Francisco) states that "some damage is reported
from practically every fruit and grape growing
area but reports indicate no serious reduction
of prospective crops from this cause/ 7 and district No. 10 (Kansas City) reports that "all
fruits were injured more or less by the belated
cold weather.'* The injury appears more serious in district No. 11 (Dallas), where "it is believed fruit has been damaged at least 25 per
cent and in some sections even more."
COTTON.
Good progress has been made in the planting
of cotton and in South Carolina, Georgia,
Alabama, and Mississippi a considerable
amount is up to a good stand. While the
515
FEDERAL RESERVE BULLETIN.
1921.
earlier reports indicated a very large reduction
in acreage, it is now generally understood that
the reduction will not be as great as was previously indicated. In district No. 11 (Dallas)
it is reported that the decrease will be at least
25 per cent and as much as 50 per cent in some
sections. District No. 12 (San Francisco)
states that "the acreage this season will be
reduced approximately 50 per cent, and much
of it will be ' volunteer' cotton grown from last
year's plantings." However, district No. 6
(Atlanta) reports that "conservative estimates
place the reduction in acreage compared with
last year at from 10 to 20 per cent." The use
of fertilizer has been considerably less than
during previous years, being estimated at
about one-fourth to one-third the amount used
a year ago.
TOBACCO.
Although the leaf tobacco market has been
dull throughout the past month, the warehouse
sales have been in a larger volume than is usual
at this season of the year. This was probably
due to the fact that sales during the previous
months have not been as large as in normal
times. However, the demand has been for
better grade tobacco rather than for the cheaper
grades. District No. 8 (St. Louis) reports that
receipts of tobacco have been fairly heavy
and prices for the better grades well maintained." District No. 3 (Philadelphia) states
that "manufacturers are purchasing only such
stocks as they actually need, and most of them
have sufficient supplies on hand for present
purposes." The demand for high-grade cigars
has been in limited proportions, while the
demand for cheaper cigars of a reasonably
ood quality has been more pronounced..
Reports from this district indicate that although the industry as a whole is still operating
considerably below normal, "firms which are
manufacturing the cheaper products have
increased production materially and are preparing to operate on a full-time basis."
f
GRAIN MOVEMENTS.
The March movement of grains has on the
whole been in larger amounts than last month
and the same month a year ago. Receipts of
all grains at Minneapolis were 9 per cent
greater than February receipts and 18.5 per
cent greater than for March, 1920. While the
March receipts at Duluth were less than
February receipts by 10.6 per cent, they were
greater than receipts of March a year ago by
59.9 per cent. The receipts for the two centers
combined were 4.9 per cent greater than for
February and 24.8 per cent greater than for
516
FEDERAL RESERVE BULLETIN.
March, 1920. Combined receipts of wheat at
Minneapolis and Duluth were 5.6 per cent
smaller than February and 17.6 per cent
greater than March, 1920. The same tendency
is noted in the case of the four principal markets
of district No. 10 (Kansas City), where receipts
of wheat were 2.9 per cent less than for February and 18.4 per cent greater than for March,
1920. Receipts of corn at Minneapolis, Duluth, and the four principal markets of district
No. 10 (Kansas City) showed increases over the
previous month and the same month a year
ago. Stocks of grain at the Minneapolis and
Duluth terminals at the close of March were
2 per cent greater than at the close of February
and 8.9 per cent greater than a year ago.
Prices of grains during the month of March
exhibited mixed tendencies, but there were
more decreases than advances. The median
price of cash wheat No. 1 Dark Northern at
Minneapolis was $1.72 as against $1.75f for
February.
FLOUR.
Little new domestic demand for flour is reported, and buyers have shown hesitancy as a
result of the continued fall in the price of wheat.
Flour prices in general have declined similarly,
although it is stated from district No. 12 (San
Francisco) that millers who have stocks of
wheat bought at higher prices and who hold
flour milled from this higher priced wheat have
shown reluctance to revise flour prices to correspond with present wheat prices. Some export
demand is indicated. The export trade in district No. 10 (Kansas City) "is reported fairly
satisfactory,
with the demand becoming more
general/7 Domestic trade in that district in
the first week of April, however, was less encouraging, and mills which had been working
on contracts had about caught up with the
business on hand. Export trade in district No.
12 (San Francisco) has increased slightly, but
the domestic demand on the whole has remained stationary, although improvements are
noted in some local areas. Millers in district
No. 8 (St. Louis) report some export demand,
centering principally upon clears. Production
of mills representing about 75 per cent of the
total output in district No. 9 (Minneapolis) was
1,793,505 barrels during the 4 weeks ending
March 26, a decrease of 3.1 per cent from the
figure of 1,854,209 barrels during the 4 weeks
ending February 26, but an increase of 19.9 per
cent over the figure of 1,497,060 barrels during
the 4 weeks ending March 27, 1920. March
shipments of flour from Minneapolis and Duluth
combined were 8 per cent larger than in February and 15 per cent larger than in March,
1920. March production of Kansas City mills
MAT,
1921.
was 30.4 per cent greater than in March, 1920,
but figures for all reporting mills in the district
showed an increase of only 1.3 per cent, from
1,203,651 barrels in March, 1920, to 1,220,039
barrels in March, 1921, due to the falling off in
the output of the 82 interior mills. No appreciable increase in activity is reported in district
No. 12 (San Francisco), and mills continue to
operate at approximately 45 per cent of capacity, as compared with 80 per cent during
March, 1920. Output of 76 mills during March,
1921, was 627,417 barrels, as compared with
573,420 barrels during February reported by
80 mills. Plant operations in district No. 8
(St. Louis) have been at from 40 to 50 per cent
of capacity during the 30-day period ending
April 15.
LIVE STOCK.
The condition of live stock on farms and
ranges continues excellent, although in certain
sections, such as Arizona, rainfall has been deficietit and stockmen have suffered heavy
losses. The stocker and feeder movement of
cattle and calves at 34 markets was 233,477
head during March, as compared with 164,504
head during February and 239,363 head during
March, 1920. The large surplus of corn, it is
stated, has given a new impetus to the swine
industry in Kansas and Nebraska. The demand for stockers in March at Fort Worth,
however, was " quite light, and few shipments
were secured for return to the country." Reports from the principal markets uin district No.
12 (San Francisco) state that inquiries are
few and stockmen are not buying to increase
their herds." The season has been favorable
for lambing in New Mexico and the "crop of
lambs in that section and7 in the Panhandle is
estimated at 85 per cent. ' A good lamb crop
is reported to be in prospect in district No. 10
(Kansas City). Movement to market of the
various classes of live stock differs somewhat.
Receipts of cattle and calves at 15 western
markets during March were 1,119,548 head, as
compared with 835,686 head during February
and 1,195,622 head during March, 1920. The
respective index numbers were 111, 89, and 119.
Receipts of hogs, however, showed a decrease
from 2,902,107 head during February, corresponding to an index number of 141, to
2,390,480 head during March, corresponding
to an index number of 109, as compared with
2,852,171 head during March, 1920, corresponding to an index number of 130. Receipts of
sheep were greater during March than receipts
for either February, 1921, or March, 1920.
The March, 1921,figurewas 1,161,549 head, the
February figure was 972,647 head, and the
March, 1920, figure was 899,760 head, while
MAT,
1921.
FEDERAL RESERVE BULLETIN.
the respective index numbers were 85, 76, and
66. Oh the Fort Worth market "the heavy
increase in receipts of hogs was easily the most
outstanding feature/' but nevertheless there
was a keen demand and the market was well
maintained. The supply of meat animals at
the six markets of district No. 10 (Kansas
City) in the first three months of 1921 is
stated to have been fully up to meat consumption requirements. March is said to have
been one of the poorest months in the history
of the industry in that district. The abundant
supplies of beef in packers' coolers, it is reported from district No. 8 (St. Louis), has a
tendency to hold down prices. Hog prices
have continued to decline steadily and this
is ascribed chiefly to diminished consumption of pork products, due to adverse industrial
conditions. The fresh-pork market, however,
remains exceptionally active in the Pacific
Northwest and heavy shipments continue to
be received from Middle Western points.
NONFERROUS METALS.
517
only for immediate needs, while industrial demand is retarded by the general business situation. From several districts it is reported
that there is no desire to contract for deliveries
for next fall at present prices. Little change in
prices, however, is reported, although in some
districts it is stated that there is a slight downward trend. Railroads in district No. 10
(Kansas City) are relying on storage piles for
a good part of their present requirements, and
are buying little coal in the market. One of
the principal producers in district No. 4
(Cleveland), however, states that more inquiries were received during the first half of
April than during the first three months of
the present year. Production shows some
falling off, from 30,851,000 tons during February to 30,328,000 tons during March, as
compared with 46,832,000 tons during March,
1920. The respective index numbers are
89, 82, and 126. Production of anthracite coal
likewise declined in March, being 7,603,000
tons, corresponding to an index number of
103, as compared with 7,845,000 tons during
February, corresponding to an index number
of 114, and 7,857,000 tons during March, 1920,
corresponding to an index number of 106.
The customary spring reductions of 50 cents
per ton on prepared sizes have been announced
by all railroad coal companies but one, and
retail prices in district No. 3 (Philadelphia) are
from 75 cents to $1.50 lower than winter prices.
Some quickening of demand is reported from
that district as a result of the slight reductions
in retail prices effective April 1, but "on the
whole the result has been disappointing to the
dealers." Probably the larger part of March
deliveries are stated to remain stored in the
yards of dealers. The lack of retail demand
is ascribed in part to the fact that the remarkably mild winter has left many consumers
with a large part of last winter's supply on
hand, as well as to the expectation of further
decreases before fall, in view of the initial price
reductions. Demand is least for the steam
sizes. Further price declines are reported in
coke, together with a decrease in production.
It is stated from district No. 3 (Philadelphia)
that "it is doubtful if more than one-fifth of
the Nation's productive capacity is being
utilized."
On March 29 seven of the largest copper
companies of the United States ceased their
mining operations. Several other companies
stopped producing during April, and it is estimated that the production of the mines which
continue to operate is less than 30 per cent of
the normal total American production of copper. The cessation of operations by most of
the larger producers was due to the large
stocks of copper in the country and the present
unremunerative copper prices. As a result of
the announcement of this curtailment of mining operations the price of copper (New York,
net refinery) rose from 12 cents to 12.50 cents
in the latter part of March, but there has been
some shading of the latter price in sales made
since April 15. There was a slight increase in
the price of zinc during April, which presumably
resulted from the severe restriction in output.
March production of zinc amounted to 15,741
tons, as compared with 17,769 tons produced
in February. Lead production is also at a low
level, although stocks of lead in the United
States are believed to be much less in proportion to consumption than is the case for either
copper or zinc. There has been little change
in the price of lead since the increase to 4.25
cents (New York and St. Louis bases) on
PETROLEUM.
March 31, but demand continues slack. District No. 10 (Kansas City) reports that there
Production of petroleum showed a slight
are only 36 lead and zinc mines working at gain during March. There has been a conpresent out of a total of 208 mines.
tinuous increase in the production of the Kansas-Oklahoma fields since January 1, 1921, and
COAL.
the average daily production for four weeks
Little demand for bituminous coal is re- ending April 18 was 370,500 barrels, as comported. Consumers are stated to be buying pared with an average daily production of
518
FEDEKAL, RESERVE BULLETIN.
361,250 barrels for the four weeks ending
March 11. In California the average daily output during March was 337,683 barrels, as compared with 327,864 barrels in February.
These increases were partly offset by a decrease
in average daily production of district No. 11
(Dallas) from 403,243 barrels in February
to 394,174 barrels in March. There was a
further decline in drilling operations during
March. Most of this decrease occurred in district No. 11 (Dallas), where there were only 395
new wells completed in March, as compared
with 491 wells in February. In district No. 10
(Kansas City) only 768 new wells were completed in March as compared with 771 in February, but new production amounted to 71,460
barrels daily as compared with 65,664 barrels
in February. Sixty-six new wells were completed in the California fields during March, as
compared with 60 in February. There was a
distinct slowing down in the price recessions of
petroleum products during March, and this was
reflected by the maintenance throughout the
month of a crude oil price of $1.75 per barrel
in most of the Texas fields. Refinery runs in
Kansas and Oklahoma were materially increased on April 1 by the resumption of 13
refineries which were not operated in March.
IRON AND STEEL.
The outstanding event during the month in
the iron and steel industry was the reduction
by the United States Steel Corporation on April
12 of its schedule of prices on various standard
products to figures 6 to 15 per cent below the
prices of the Industrial Board. Prior to the
cut, several of the larger independent producers announced advances of $2 per ton on bars,
plates, and structural steel shapes, while subsequently further reductions were announced
by steel corporation mills. Prices of the two
groups of producers are now, in general, at the
same levels. The exact influence which these
price changes will exert is as yet uncertain.
It is stated from district No. 4 that " a dragging
market in general has continued." Some betterment in that district, however, has been reported with respect to the automobile and
building industries. " Suspensions of orders
for steel with the mills have been lifted in an
increasing
way" by the former industry, and
11
some new buying has also resulted." The demand is stated from district No. 3 (Philadelphia), however, to have been far below expectations, and the total consumption of automobile and truck manufacturers is given as only
5 per cent of the total product of the iron and
steel industry. This district also reports little
demand from the building industry. It is
MAT,
1921.
stated in the various reports that buyers, in
general, apparently lack confidence in the present situation. These conditions are reflected
in the statistics showing the scale of operations
in the industry. At the close of March only
103 blast furnaces in the country were active,
a decline of 52 during the month, as compared
with 317 active at the close of September, the
peak for last year. Pig-iron production during March was 1,595,522 tons, as compared
with 1,937,257 tons during February. The respective index numbers were 69 and 90. Production of steel ingots declined from 1,749,477
tons during February to 1,570,978 tons during
March. The respective index numbers were
80 and 67. A further decrease in the unfilled
orders of the United States Steel Corporation
is reported, from 6,933,867 tons at the close of
February, corresponding to an index number
of 132, to 6,284,765 tons at the close of March,
corresponding to an index number of 119. Reports m district No. 3 (Philadelphia) indicate
that production is less than 30 per cent of capacity, and, even with this output, stocks are
accumulating in the hands of producers. Some
resumption of activity in pig-iron production
is reported in district No. 6 (Atlanta) since the
beginning of April. Owing to large stocks of
ore on dock and in furnace yards, there is a
slow opening of the shipping season on the
Great Lakes.
AUTOMOBILES.
A considerable increase in the demand for
standard makes of automobiles is reported
from district No. 7 (Chicago). The more conservative dealers in district No. 3 (Philadelphia), however, feel that the natural seasonal
improvement appears larger than the facts
warrant, as conditions in the trade were exceptionally dull last winter. A trend toward
lower prices was reported in district No. 7
(Chicago), while in district No. 3 (Philadelphia)
there was rather a tendency on the part of the
dealer to give extra parts or accessories in
place of reducing the price on standard models.
Stocks of cars in the hands of retailers have
been reduced below January figures. I t is
noted from district No. 7 (Chicago), however,
that caution prevails and that there is still
some disposition on the part of buyers to wait
for lower prices, while other factors, which
retard buying, are the lack of capital to finance
large operations and the curtailed buying
power of the agricultural sections. Carload
shipments of manufacturers producing twothirds of the country's output are reported by
district No. 7 (Chicago) to have been 16,500
during March as compared with 9,920 during
MAY,
FEDERAL RESERVE BULLETIN.
1921.
February and 29,326 during March, 1920,
while 10,000 machines were driven away
under their own power in March, 1921, as
compared with 7,491 during February and
57,273 during March, 1920. In some instances manufacturers show a marked increase
in operations. From district No. 3 (Philadelphia) it is stated that operations in the fall
and winter were not over 25 per cent of normal,
many plants being entirely closed, while operations in general are now at about 60 per cent
of normal. The improvement in business
commencing in March reported by dealers
in district No. 8 (St. Louis)
has continued but
"is fitful and irregular/ 7 and is found rather in
the large cities than in the country.
COTTON TEXTILES.
Cotton consumption during March for the
country as a whole amounted to 437,933 bales,
which was 25 per cent below the totals for March
of the preceding year. There was greater
stabilization in the price of raw cotton during
the month, and the price of gray goods, after
declining to 6 | cents a yard for the standard
38£-inch width, advanced slightly. Nevertheless, district No. 1 (Boston) reports that at
present prices the spread between a pound of
cloth and a pound of raw cotton is only 22J
cents, whereas a year ago it was approximately
$1. Fall River sales of print cloths are of
moderate proportions. Brown sheetings and
standard brown drills can be purchased about
one-half cent a yard below last month's levels.
The demand for pillow tubings is such that
three well-known brands, sold ahead for
months, are withdrawn from the market.
The demand for ginghams has been good and
some mills have sold their entire output from
May to August. There seem to be no pronounced general tendencies, as the activity of
certain mills manufacturing fabrics that happen to be in demand at the moment is offset by the relative inactivity in the gray goods
mills. District No. 3 (Philadelphia) reports
that the demand for heavy cotton fabrics such
as are used in the manufacture of tires is
slight, and mills manufacturing goods of this
sort have largely curtailed operations. There
has been little change in yarn prices during
the month. Sales of low-priced cotton goods
and low-priced hosiery were reported to have
improved somewhat, but the demand has been
largely met from stocks, as yarn mills have
recently been curtailing their operations. In
the South textile mills are reported to be
running approximately full time in district No.
5 (Richmond). Some orders are being received
for goods used for print cloth, and orders for
519
future delivery are also being taken by knitting
mills in the district. Wage cuts in the southern
mills have been more drastic than in other
sections, and it is said that "many people in
the trade claim that the reductions have been
in keeping with the lowered prices for raw
material.
In district No. 6 (Atlanta) a number of reporting mills show an increase in
yardage of 4.5 per cent during March as compared with February, although there was a
decrease of 22.1 per cent as compared with a
year ago. The increase in orders on hand
during the month was negligible, but much
greater than a year ago when new orders were
not acceptable because of the press of work.
It is said that few mills are as yet working at
full capacity, although a number indicate orders
on hand which will require full running time
for several weeks for their completion. The
increase in yarn output (by pounds) of reporting yarn mills increased 8 per cent during the
month, although totals were 26.2 per cent
below figures for March, 1920. There was a
slight decrease of 1.1 per cent in orders on hand
as compared with February, and the time
required running full to complete orders on
hand averages about one month for all reporting mills. There has been a recent increase in
export sales of cotton goods, amounting to
between 10,000 to 12,000 bales and consisting
principally of drills and sheetings, to China,
India, and the Levant.
FINISHING OF COTTON FABRICS.
Thirty-four of the 58 members of the
National Association of Finishers of Cotton
Fabrics reported total finished yards billed
during the month at 86,732,621 yards, as compared with 55,436,871 yards in February.
The total average percentage of capacity
operated was 67 per cent for all reporting districts, as compared with 51 per cent during
the preceding month. The total gray yardage
of finishing orders received amounted to
88,342,599, as compared with 76,201,806 in
February. The total average work ahead at
the end of the month amounted to 8.4 days
for all reporting districts, as compared with 8.5
days during the preceding month.
WOOLEN TEXTILES.
The Boston wool market has experienced
little change during the past month. Not
much wool is being sold but prices have nevertheless strengthened somewhat. A lot of the
South American medium grade wool has been
taken from the market. Receipts of foreign
wool are considerably larger than a year ago,
520
FEDERAL RESERVE BULLETIN.
it is stated, and competent wool men estimate
that there has already been more wool imported into this country since the beginning of
1921 than has been consumed by our mills in
that period. In all districts woolen and
worsted mills are showing greater activity,
and in district No. 1 (Boston) several mills are
reported to have booked as many orders as
they care to accept at the present time. Top
manufacturers are well booked up and production is not far from capacity. In district
No. 3 (Philadelphia) many cloth mills are
operating at capacity, while others are running from 50 per cent to 75 per cent. In the
Philadelphia market the increased activity is
not reflected in the demand for yarn. Some
yarn manufacturers are running at full capacity, but orders are being placed for current
use almost entirely. Manufacturers of medium
and lower counts of yarn have not done as
active business as producers of the fine counts.
The operations of the former are reported to
be from one-third to two-thirds of normal.
The latest figures available prepared by the
Department of Commerce giving percentages
of idle hours to the total reported on March 1,
showed that 37.9 per cent of the worsted
spindles and 50.5 per cent of the woolen
spindles were idle, whereas on April 1 the percentages had fallen to 25.7 per cent and 34.1
per cent, respectively.
SILK TEXTILES.
There has been a continued increase in the
manufacturing activity of the silk mills during
the month, and one encouraging factor tending
to sustain the improvement that has already
taken place is the relative stability of the
prices of raw silk. Demand for the raw material for immediate delivery is active but as yet
confidence as to market developments is not
great enough to have resulted in the placing of
large orders for future delivery. The silk
warehoused in New York at the end of the
month amounted to 16,386 bales, as compared
with 27,928 bales in February, while 14,043
bales were imported in March, as compared
with 14,361 bales in February. The mills in
Paterson and near-by towns are now reported
to be operating at about 60 per cent of maximum capacity as compared with 49 per cent
during the preceding month.
HOSIERY.
It is stated in the report from district No. 3
(Philadelphia) that there has been a general
improvement in the hosiery industry during
the past month, and that the demand for
MAY,
1921.
lines has been especially marked. A strike
is still in progress in the majority of the Philadelphia full-fashioned hosiery mills, and the
result has been that mills in the Reading district have had more orders than they could
accept, although the demand is for immediate
delivery. The inability to secure deliveries
on full-fashioned hosiery has increased the call
for other lines, and mills are now working on
orders. The demand for mercerized and lisle
hosiery has shown improvement during the
month, but it is estimated that it is only about
50 per cent that of a normal year. Twentyfive firms selling to the wholesale trade report
an increase of 15.8 per cent in the product manufactured during March as compared with
February, 1921. Orders booked during March
showed a decrease of 30.6 per cent, but unfilled orders at the end of the month increased
17.4 per cent. Eight firms selling to the
retail trade had a product 66.5 per cent in
excess of February; orders booted during
March were 5.5 per cent greater than in February, while unfilled orders on hand at the end
of the month were 48.1 per cent in excess of
the preceding month. The output as compared with a year ago was nevertheless negligible, being 93.3 per cent below those totals.
UNDERWEAR.
The majority of underwear mills in district
No. 3 (Philadelphia) are booked to capacity
until the end of the light-weight season. Normally orders are placed and largely made up
for shipment by the middle of January, but
this year buying was late and in limited quantities. Duplicate orders, placed in March as a
result of the unexpectedly heavy public demand, have increased the volume of business
beyond the present capacity of the industry.
On the other hand, forward orders for heavyweight underwear have been few, although
some mills have booked sufficient orders to
maintain total capacity until the end of August. The uncertainty regarding price trends
and the lack of definite information as to stocks
carried over from last winter make buyers
hesitant to adopt a policy for the future.
Twenty firms in district No. 3 (Philadelphia)
which make monthly reports to the Federal
Reserve Bank had an increase of 85.8 per cent
in their output in March as compared with
February, although it was still 29.5 per cent
below the totals for the same month of the
preceding year. Orders booked were 13.5 per
cent below those for February and unfilled
orders on hand at the end of tne month were
10 per cent greater than at the end of February.
MAT,
1921.
521
FEDERAL RESERVE BULLETIN.
The 62 mills which make reports to the Knit
Goods Manufacturers7 Association of America
had an output in March of 102,415 dozens of
winter underwear, which was 31 per cent of
normal. The production of summer underwear amounted to 318,725 dozens, or 62.5 per
cent of normal. Thirty-eight mills which
furnish data for both February and March had
a production of 261,934 dozens during the
latter month as compared with 147,822 dozens
in February. Unfilled orders on the 1st of
March dropped, however, from 588,127 dozens
to 269,104 dozens. New orders received during the month of March rose from 205,260
dozens in February to 284,712 dozens in
March. There was a slight increase in cancellations, which rose from 1,619 dozens to
5,173 dozens.
mediate shipment. District No. 8 (St. Louis)
reports that shoe factory operation is larger
than at any time this year, averaging from 80
to 90 per cent of capacity. Many plants turning out women's and children's footwear are
operating at full time. " Prices show a further
decline, except on goods in seasonal demand
and the fancy grades of women's wear."
Orders for summer goods are being obtained in
some quantity by salesmen in district No. 7
(Chicago). Good qualities are wanted and the
demand for novelty lines is stronger than for
staple goods. "The retailers have brought
prices down recently until they are more in
line with replacement cost, but these prices
have not kept pace with wholesale reductions."
SHOES AND LEATHER.
Demand for lumber increased somewhat
during March, but only as a result of a further
reduction in prices. District No. 12 (San
Francisco) reports that "the volume of buying
is increasing, although it is still conservative and
purchases are only to meet current needs."
Orders received during the four weeks ending
March 26 by the four lumber manufacturers'
associations of that district showed an increase
of 30.2 per cent over the preceding four weeks.
Production during the same period increased
17.1 per cent and shipments 68.1 per cent.
Uncertainty as to the volume of this season's
operations in the canned-fruit and salmon-packing industries has resulted in a curtailment of
operations of box shook mills to 50 per cent of
capacity. One hundred and eighteen mills
belonging to the West Coast Lumbermen's
Association reported for the four weeks ending
March 26 a cut of 187,917,000 board feet, shipments of 209,970,000 feet, and orders of 213,431,000 feet. Corresponding figures for the
preceding four weeks, with the same number
of mills reporting, were as follows: 162,648,000
feet, 157,970,000 feet, and 167,483,000 feet.
In district No. 11 (Dallas) prices were practically stationary throughout March. Production of 29 southern pine mills during March was
equal to 60 per cent of normal. Orders booked
by these 29 mills were equivalent to 61 per cent
of their normal production, whereas the 30
mills which reported during February booked
orders equivalent to 56 per cent of their normal production. Prices of pine have sagged
slightly in district No. 6 (Atlanta). Production of 134 mills belonging to the Southern
Pine Association was 29.5 per cent below
normal during the week ending April 1, while
shipments were 25.8 per cent below normal
production. Orders received during that week
were larger thar in any week since January, but
Prices for hides and skins showed little change
during March and the volume of trading has not
increased perceptibly. Demand for sole leather
and staple grades of upper leather continues to
be slacK, but demand for colored glazed kid,
suede calf, ooze, and certain other kinds of
calf leather continues to exceed the available
supply. There was some increase in the demand for belting leather, harness leather, and
upholstery leather during March. The volume
of leather exports continues to be very small.
District No. 1 (Boston) reports that " prices on
the whole are showing a slight strengthening,
but the very large supplies of leathers in the
country act as a deadening influence on any
general upward movement/' There has been
some slackening in the demand for women's
shoes since Easter, but this has been largely
counterbalanced by an improvement in demand
for men's shoes. Both retail and wholesale
sales of shoes are reported to be exceeding production at the present time. The net result of
March operations in district No. 1 (Boston) was
a reduction in the size of stocks of shoes on
hand in factories and factory warehouses.
Shipments of shoes from the factories of New
England were considerably larger in March than
in February, yet orders on hand April 1 showed
an increase over those on the books March 1.
" Production was apparently at a rate slightly
below 50 per cent oi capacity." In contrast to
this, district No. 3 (Philadelphia) reports " that
the shoe manufacturing industry at the present
time is operating close to capacity and that
business for the spring and summer seasons is
approaching normal." However, buyers in
that district still refrain from ordering for future
delivery and the business in the hands of the
manufacturers is practically entirely for im-
LUMBER.
522
FEDERAL RESERVE BULLETIN.
were 23.9 per cent below normal production.
Production in the Tennessee hardwood mills
for the first three months of 1921 is reported to
be 75 per cent lower than in the same period of
1920, and many of the mills are being closed.
District No. 8 (St. Louis) reports that industrial buying has increased somewhat in both
softwoods and hardwoods. "Railroads are
virtually out of the market, and in consequence
the prices of heavy timber, crossties, and car
stock have declined more heavily than in any
recent month." Price reductions were made
during March by a majority of the retailers and
about half the manufacturers reporting in
district No. 9 (Minneapolis). The March cut
of 12 manufacturers was 7 per cent greater than
in February, and shipments were 20 per cent
greater, while stocks at the close of the month
had increased 5 per cent. As compared with
March, 1920, cut was 26 per cent less, shipments
66 per cent less, and stocks at the close of the
month 51 per cent greater. The demand for
lumber has improved somewhat in district No.
3 (Philadelphia), but the price trend has continued downward and 80 per cent of the orders
are being filled from stock on hand.
BUILDING OPERATIONS.
Building operations shcn
showed increased activity during March, which is a normal condition
for this season of the year. Number of buildpermits, value of building permits, and
lue of contracts awarded all registered
marked increases as compared with February.
This increase is particularly large in the case
of number of permits, as a result of the continued increase in the building of residences.
Contracts awarded in the New England States
amounted to $13,262,000 during March, an
increase of 84 per cent over February. District
No. 2 (New York) reports contracts amounting
to $29,846,000, an increase of 40 per cent over
the February figure. Of this total 59 per cent
were for residential buildings as compared
with 48 per cent in February and 40 j>er cent
in January. "The increase in residential
construction has been confined almost entirely
to the least expensive apartments and small
homes." In district No. 3 (Philadelphia)
there has been a large increase in the value of
building permits issued during March in comparison with the February figures. Funds for
mortgages have been difficult to obtain, but
there has been a steady increase in number of
houses bought through the building and loan
associations. District No. 4 (Cleveland) shows
an increase in value of building permits
issued during March, but there still seems to
be $ tendency to wait for lower costs before
MAT,
1921.
commencing construction. Reports from 23
cities in district No. 5 (Richmond) show 1,718
permits issued for new construction during
March, in comparison with 894 permits issued
in February. This number was greater than
that for any month since February, 1920.
Value of building permits in district No. 6
(Atlanta) increasecf about 50 per cent for
March in comparison with February figures.
Noteworthy increases in activity occurred in
Atlanta, Birmingham, and Tampa. In district No. 7 (Chicago) there was an increase in
value both for building permits and contracts
awarded during March, as compared with
February figures. District No. 8 (St. Louis)
shows an increase in value of building permits
for three leading cities in March, as compared
with February, but these figures are very much
below those for March, 1920. In district No.
9 (Minneapolis) 1,847 permits, valued at
$2,647,666, were issued in the reporting
centers in March, as compared with 783 permits, valued at $2,179,784, in February.
This increase is due to a substantial gain in
the number of permits issued for repairs and
alterations. Seventeen cities in district No.
10 (Kansas City) issued 2,778 permits in
March, an increase of about 100 per cent over
the February figure and an increase of about
18 per cent over the total of March, 1920.
District No. 11 (Dallas) reports that both the
number and value of building permits issued
in March was the largest monthly total since
October, 1920. The value of building permits
for 20 cities of district No. 12 (San Francisco)
amounted to $18,542,835, an increase of 57
per cent over February, 1921, and 27 per cent
over March, 1920. Number of permits in
those cities increased 47 per cent over February, 1921, and 38 per cent over March, 1920.
" Declining prices of building materials and
some reduction in labor costs have reduced
the number of factors which have been retarding building operations.7'
EMPLOYMENT.
The Federal Reserve Banks have just completed a special inquiry into changes in employment conditions and in rates of wages occurring
during the year ending April 1. The results
of this inquiry are presented in considerable
detail elsewhere in this issue of the BULLETIN
and need not therefore be summarized again.
In addition to presenting facts concerning
wages and employment as compared with a
year ago, however, several districts present
comparative data for the months of February
and March. In district No. 3 (Philadelphia),
for example; the estimates qf the local offi
MAT,
1921.
of the Pennsylvania Bureau of Employment
indicated that on April 15 unemployment was
still increasing in the cities of Philadelphia,
Altoona, Harrisburg, Johnstown, and Scranton taken as a group, since the total number
of unemployed was reported at 177,645 on
April 15, as compared with 147,115 on March
15. In district No. 7 (Chicago) questionnaires
are sent regularly to representative manufacturing concerns and for the month of March
returns were received from 61 firms then
employing 41,000 persons, and statistics showed
a reduction of 6.5 per cent in numbers employed
as compared with February. The greatest
reductions in volume of employment were in
the metal and machinery trades and among
the workers in railroad equipment shops. On
the other hand, the automotive industry has
shown a steady increase since December, on
the basis of returns made by 79 firms to the
Employers7 Association of Detroit. In December only 14 per cent as many men were
employed as in September, the time of greatest
activity, when 176,000 were on the pay rolls.
On April 12 the number had risen to 100,347
from the December minimum, or to 57 per cent
of the September total. From district No. 8
(St. Louis) it is reported that " Federal
and State labor commissioners and employment agencies show a further increase in unemployment, * * * with most acute conditions in the metal industries and transportation
and common labor most affected.'7 In textiles, boots and shoes, clothing, and furniture,
however, the number of unemployed was considerably decreased during the month of March
by resumption of plant operations.
It was likewise true that unemployment
increased in district No. 9 (Minneapolis) during
March. According to reports from the Federal
employment agencies in Minneapolis, St. Paul,
and Duluth, requests for help wanted were
73.4 per cent of those for February in the case
of men while 83.5 per cent as many men were
placed in March as in February. For women,
however, there was an 8.4 per cent increase in
requests for help wanted and a 5.2 per cent
increase in numbers placed as compared with
February. Reports of mining companies indicated no substantial change in numbers employed in March. As a matter of fact, the
largest Montana and Michigan mines were
closed on April 1. Lumber companies employing 1,762 men in March had reduced their
forces 17 per cent as compared with the preceding month. District No. 12 (San Francisco) stated that unemployment in that territory was less than a month ago, excepting in
the sections of Arizona and Utah in which the
large copper mines, now closed, §v$ located,
523
FEDERAL RESERVE BULLETIN.
Outside of mining, the lumber industry reported the greatest amount of unemployment,
but work was in process of resumption. Portland reported a decided decrease in unemployment as did Seattle, while conditions in Spokane were practically unchanged. Industrial
concerns in California were employing more
men than they were a month ago.
Although a large amount of surplus labor in
the industrial centers has been absorbed by
the seasonal increase in demand for farm labor,
it is very generally commented upon that
farmers are endeavoring to economize by doing
more work themselves and depending less upon
hired help. Consequently, the relief to the
unemployed with the opening up of spring
farming activities is not likely to be so great
as was anticipated. In view of the unusual
supply of farm labor and the restricted demand,
it is inevitable that wages should show a sharp
decline. District No. 4 (Cleveland) reports
that in the State of Ohio wages for farm hands
now average $40 a month with board, as compared with $52 last year. In district No. 6
(Atlanta) it is said that many farmers are
without money to hire labor and are cultivating only so much land as can be managed
with the help of their families. In district
No. 9 (Minneapolis) economies in expenditures
for hired help are likewise being practised.
Farm laborers in consequence are receiving
from $35 to $45 per month with board, as
compared with $70 to $80 a year ago. A
similar situation prevails in district No. 10
(Kansas City) and it is said that laborers are
reluctant to work at the reduced rates of
wages now prevalent.
WHOLESALE TRADE.
Although the sales of reporting wholesale
firms are much below the totals given for a year
ago, as would be expected in view of the heavy
declines that have taken place in wholesale
prices, a number of districts which present
month to month comparisons for leading lines,
such as groceries, dry goods, boots and shoes,
and hardware, report decided increases inMarch sales as compared with February. In
district No. 3 (Philadelphia) the hardware
sales of 25 reporting firms increased 30.2 per
cent during the month, although the volume of
business was still 19.2 per cent below the totals
for last year. It was stated that current sales
largely represent small orders of goods wanted
for immediate use, the result of a seasonal
demand for such articles as farm implements,
garden tools, wire fencing, and netting. In
the wholesale grocery trade increased sales had
also occurred and could be partially attributed
524
FEDERAL RESERVE BULLETIN.
to a seasonal increase in demand. The net
sales of 50 reporting stores were 18.6 per cent
larger in March than in February, but 27.9 per
cent below the figures for Marcn, 1920. Purchases were said to be for immediate needs and
business confined largely to staples. In district No. 4 (Cleveland) the net sales of 14
reporting grocery firms and 7 hardware firms
showed declines as compared with a year ago,
somewhat analogous to those of district No. 3
(Philadelphia), being 16.3 per cent lower for
hardware and 33.1 per cent lower for groceries.
Dry goods sales (6 firms reporting) were 14.9 per
cent below last year. In district No. 5 (Richmond) sales of groceries (9 firms reporting),
dry goods (8 firms), hardware (8 firms) and
boots and shoes (8 firms) show increases over
February ranging from 8.6 per cent in the case
of groceries to 53.4 per cent in the case of
boots and shoes. The Easter demand probably explains the heavy increase in March
sales of boots and shoes. Decreases for these
four lines as compared with March, 1920,
ranged from 23.9 per cent in the case of
groceries to 38.3 per cent in the case of dry
goods. In all these cases the drop in the value
of sales is probably entirely accounted for by
lower prices and in some cases the amount of
sales, if measured in physical units, would
undeniably be greater. In district No. 6
(Atlanta) the four reporting lines, groceries (10
firms), dry goods (13 firms), hardware (8 firms),
and boots and shoes (7 firms), all reported
increases in March sales as compared with
February ranging from 6 per cent in hardware
to 72.6 per cent m the case of boots and shoes.
The last named heavy increase was no doubt in
great part seasonal. Decreases in sales as
compared with a year ago varied from 33.6 per
cent in the case of groceries to 45.6 per cent
in the case of hardware. Wholesalers in district No. 7 (Chicago) report very cautious
buying. Grocery sales were 25 per cent below
the level of a year ago, with 22 firms reporting,
a drop very close to the percentage reduction in
sales of the 50 concerns reporting in district
No. 3 (Philadelphia). The dry goods trade (13
firms) reported a decrease of 35.9 per cent for
March as compared with a year ago, while the
sales of 10 shoe wholesalers were 31.6 per cent
below March, 1920, but 20 per cent above sales
for the preceding month. Grocery sales in
district No. 10 (Kansas City), with 4 firms
reporting, increased 19.5 per cent during the
month, while they were 22.7 per cent below the
totals of a year ago. The very heavy increase
in hardware sales of 65.5 per cent (3 firms) as
compared with February is no doubt attributable to the seasonal demand of a largely
agricultural district. Sales were 34.3 per cent
MAT,
1921.
below those of March, 1920. District No. 11
(Dallas), in contradistinction to other sections,
does not show the same tendency toward a
revival of wholesale trade. Returns from 2
concerns selling hardware and 2 selling farm
implements record declines of 29.3 per cent and
18.4 per cent, respectively, in sales as compared with the preceding month. Grocery
sales (4 firms) which elsewhere show a decided
increase are 0.7 per cent below February
volume and dry goods sales (4 firms), although
16.1 per cent greater in March than in February,
have not advanced as greatly as in most of
the other districts. All dealers, it is said,
report that the buying demand is light, conservatism is the outstanding feature with the
trade, and dealers are reluctant to place orders
in very large amounts for future delivery. In
district No. 12 (San Francisco) all reporting
lines have increased sales as compared with the
month of February. As in other districts, the
increase in shoe sales has been very heavy,
averaging 68.4 per cent for 15 firms. Grocery
sales (30 firms), dry goods (11 firms), and hardware (23 firms) increased 20.9 per cent, 28.5 per
cent, and 33.9 per cent, respectively, over the
preceding month. The declines as compared
with a year ago were 16 per cent for shoes, 7.3
per cent for groceries, 29.1 per cent for dry
goods, and 33.6 per cent for hardware. Given
the decreases in wholesale prices, the declines
probably do not indicate any shrinkage in the
physical volume of trade in any of these
reporting lines.
RETAIL TRADE.
The irregularity which has been noted in
the retail trade situation for the past few
months is still evident. Discrimination in
favor of better quality of goods characterizes
the attitude of the buying public. A representative view of the situation is stated by
district No. 3 (Philadelphia): "Purchasers are
exceptionally careful in their shopping and
retailers have found that sales to a certain
class of trade can be effected more easily by
stressing the quality factor rather than the
prices/' There has been a seasonal increase
in sales, due to the opening of spring and the
pre-Easter shopping, but the increase has not
been greater than a year ago. This is illustrated by the fact that the increase in net
sales when compared with a year ago was less
in March than in February. Thus in district
No. 1 (Boston) the increase in net sales over
the same month a year ago was 1.5 per cent,
in district No. 3 (Philadelphia) 1.8 per cent,
and in district No. 5 (Richmond) 2.7 per cent.
In the middle western districts decreases in
MAT,
1921.
FEDERAL. RESERVE BULLETIN.
net sales were prominent. In district No. 8
(St. Louis) there was a decrease of 0.7 per cent,
in district No. 9 (Minneapolis) 11.2 per cent,
and in district No. 11 (Dallas) 16 per cent.
There was the usual seasonal increase in stocks
but the amount on hand was considerably
smaller in every district than a year ago.
The rapidity of stock turnover has been increasing. The outstanding orders at the close
of March remained practically constant, which
indicated that the merchants are not placing
orders to any great extent. District No. 3
(Philadelphia) states that " retail store managers continue to keep close watch of their
buyers, limiting them to practically hand to
mouth purchases/'
PRICES.
Extreme unevenness as regards price reductions is one of the striking features of the present industrial situation. Prewar prices or
something approaching them exist in many
important lines of wholesale trade, while at
the same time in other lines commodities are
being sold at twice or even more than twice
1913 values. The same unevenness exists
in some cases between the prices of raw materials and finished goods in the same industry. In the case of raw cotton, for instance, both Egyptian and American, the
present level is lower than the average for the
year 1913. Although certain grades of South
American wool are below the 1913 average,
wool prices as a whole appear to be still about
a third higher than before the war. Finished
materials in these two lines, however, have
not been reduced as much as the raw materials.
An average of three leading grades of cotton
goods shows present prices to be at least 20
per cent higher than before the war, and a
woolen cloth of a standard type is now selling
at approximately twice as much as in 1913.
The discrepancy between the prices of raw
and manufactured goods in the hide and leather
industry is even more extreme than in the
cotton and wool industries. An average of
leading grades of domestic and foreign skins
shows the present level of prices to be approximately one-third under the prewar level.
Shoe prices, on the other hand, would seem
to be about twice as high as in 1913.
Except in the case of wheat and rye, prices of
leading cereals closely approach prewar levels.
In spite of this, however, the trend of the market nas recently been continually downward.
Prices of live stock and meats, on the other hand,
although at a level at least 10 per cent above
525
prewar prices (and in some cases more), have
been showing considerable strength during recent months. There has, however, recently been
a downward movement in some of the meat products. Another group of commodities which are
at or below prewar price levels are the leading
nonferrous metals, such as copper, zinc, lead,
and tin. In 1913 electrolytic copper sold at an
average of 15J cents a pound. Recent quotations are at 12 to 12^ cents a pound. Zinc
and tin are also below the prewar price, and
lead is at approximately the same point as in
1913. Nevertheless, this group of industries
is in a highly disorganized condition and
production has been heavily curtailed.
In a large group of important industries, on
the other hand, prices are still from 50 to 100
per cent above prewar levels. This is true in
spite of the fact that in a considerable number
of cases price reductions have been made which
appear sufficient to make a possible basis for
trading. Most noteworthy in this group are
the fuels and building materials. Bituminous
coal in spite of considerable reductions now
averages around 100 per cent above the prewar figure, and anthracite is at a similar
ratio as compared with the 1913 level. Coke
also appears to be about twice as high as before
the war, while iron and steel prices (taking into
consideration the United States Steel Corporation reductions) are between 50 and 75 per cent
above the 1913 average. Crude petroleum
and petroleum products are still more than
twice the prewar price in spite of recent drastic
reductions in the mid-continent fields.
In the same way lumber, brick, and cement
are far above prewar levels. An average of
three leading grades of lumber shows present
prices at least 50 per cent higher than before
the war, while brick and cement are between
two and three times the 1913 level.
Although a study of the component parts of
the price structure is essential to an understanding of the difficulties of the present
situation, the movement of prices in general is
of value also. The wide variations in the
different parts of the system are thus eliminated in the average for prices as a whole. It
should be remembered, however, where use is
made of such an average, that it consists of
widely diverse elements.
The all commodities index number, constructed by the board, shows a reduction of 3
per cent during March, while the rate of decline
in January and February was 6 per cent, and
that of December 9 per cent. During recent
months the raw materials index number has
526
FEDERAL RESERVE BULLETIN.
declined more rapidly than that for manufactured goods, the reduction since January
amounting to 11 per cent in raw materials
as
compared with 5 per cent in consumers7 goods.
The all commodities index number now stands
at 50 per cent above the 1913 average.
Retail prices of 43 articles of food were
reduced only 1 per cent during March according
to the index number of the Bureau of Labor
Statistics. No statistics are available showing
the reduction in the price of clothing or
miscellaneous articles at retail.
SHIPPING.
More optimism regarding the outlook prevailed in shipping circles than for some months
past. This was due more to the expectations
aroused by a number of developments than to
any change in the underlying situation. Among
the events of the month was the continuance
of the British coal strike, with a moderate expansion of the demand for charters of American
coal-carrying ships for prompt delivery. Another encouraging feature of the freight market
was the firmer tendency of rates in certain
directions. The settlement of the rate war
between the North Atlantic-United Kingdom
Conference and the French Line, which had
been waged since last fall, helped to give tone
to the ocean freight market. The decision of
the Shipping Board to charter its vessels in
future on the bare-boat plan was regarded by
operators as opening up possibilities for cheaper
operation of vessels. The wage situation remains unsettled, the calling of a strike by the
marine engineers at New York for the 1st of
May being the outstanding development toward the end of April. The Division of
Operations of the Shipping Board stated that,
on April 5, 653 steel snips of 4,279,581 deadweight tons were either already idle or had
been ordered withdrawn from service until
conditions improve. That number constitutes 46 per cent of the Government-owned
steel merchant ships. The shipbuilding situation remains unchanged, with yards merely
completing orders already on hand, no new
tonnage of any size having been booked by
American yards so far this year. The recent
cut in steel prices has not been sufficient to
affect shipbuilding favorably. Of the Shipping Board's building program, 44 steel vessels
of 489,150 deadweight tons remain to be delivered, all of which are now under construction. According to present plans, the last of
these will be completed and delivered about
April, 1922.
MAX,
1921.
CHANGES IN WAGES.
The Federal Reserve Board, in connection
with its usual monthly business survey, has
undertaken to secure information throwing
light upon wage conditions. With a view to
ascertaining the extent to which the fall in general prices has been accompanied by reductions
in rates of wages, the 12 Federal Reserve Banks
at the request of the Board addressed inquiries to representative employers engaged in
typical industries within the several districts,
asking for data concerning
changes in wages
and employment.1 Returns have been secured
relating to the number of workers and the
amounts of the weekly pay rolls on dates
nearest April 1, 1920, ana April 1, 1921, respectively. An endeavor has also been made
to obtain reliable estimates of average percentage reductions in wage rates by industries, to
find out whether such reductions have been
made uniformly applicable to all employees of
reporting establishments, and if not, what have
been the variations in the percentages of reduction and how different groups or classes of
workers have been affected. The fact that the
inquiry has been conducted by each Federal
Reserve Bank for its own district will also
throw light on the varying extent to which
workers in different sections of the country
have been affected by the reductions that have
been instituted.
It should be noted that the results presented
in this survey are not such as can be subjected
to detailed analysis or precise comparisons. It
is difficult and often impossible to secure a
grouping or classification of industries that will
serve for all districts. In some parts of the
country it is practicable and desirable to present returns by highly specialized sub-divisions
of an industry, while in other sections more
comprehensive groupings are necessary. Moreover, the replies concerning the amount and
the extent of wage decreases do not lend themselves readily to a systematic summary, and
any attempt to differentiate between skilled
and unskilled labor or to define the terms in a
way that would be acceptable for all industries
would be a fruitless task leading to endless
controversial discussion. The terms have
therefore been used uncritically on the assumption that they have a fairly definite connotation when applied to specific industries. Despite these strictures, it is believed that the
1
It should be noted that the data which have been assembled show
only changes in employment in establishments which have reported;
they should not be taken as indicating the general state of unemployment.
MAT,
1921.
527
FEDERAL RESERVE BULLETIN.
scope of the inquiry and the amount of the
detailed information obtained from the questionnaires sent out present abundant evidence
to support the generalizations which follow.
The inquiry covers establishments reporting
1,303,792 employees on the pay roll on date
nearest April 1, 1921, with a total weekly pay
roll of $36,726,380.
The table given below shows for all reporting
establishments, by districts, the number of
employees covered by the inquiry and the total
amounts of the weekly payroll for specified
dates in 1920 and 1921, respectively. In
every district the reporting establishments
record decreases in numbers employed as compared with the preceding year, ranging from
6.2 per cent in district No. 12 (San Francisco)
to 52.5 per cent in district No. 10 (Kansas
City). In all but three districts the shrinkage
in the amount of the pay roll has been percentually even greater than the reduction in
numbers employed. In district No. 12 (San
Francisco), however, the amount of the pay
roll increased 5.3 per cent and in districts No. 2
(New York) and No. 11 (Dallas) the decreases
have been less than the percentage drop in
numbers of employees. The percentage reduction in numbers employed for the country
as a whole was 25 per cent and the reduction
in the amounts of the weekly pay roll was 29.8
per cent. It is fairly apparent, therefore, that
very general reductions in rates of wages have
occurred, although the sharper percentual drop
in the amount of the pay roll would be partially accounted for by the fact that some establishments have curtailed working hours.
NUMBER OF EMPLOYEES AND AMOUNT OF PAY ROLL FOR REPRESENTATIVE ESTABLISHMENTS IN 1920 AND 1921.
Federal Reserve district.
No. 1.—Boston
No. 2.—New Y o r k . . . .
No. 3.—Philadelphia..
No. 4.—Cleveland
No. 5.—Richmond
No. 6.—Atlanta
No. 7.—Chicago
No. 8.—St. Louis
No. 9.—Minneapolis...
No. 10.—Kansas City...
No. 11.—Dallas..*
No. 12.—San Francisco.
Total
cent of
Number of Number of Per
employees employees decrease
number
on pay roll. on pay roll, in of
emdate nearest date nearest ployees
Apr. 1,1920. Apr. 1,1921. reported.
386,850
372,416
140,101
203,061
61,284
20,075
343,544
47,563
33,917
31,347
7,582
89,977
318,973
305,152
107,625
114,078
47,784
12,907
230,681
37,140
23,846
14,887
6,307
84,412
1,737,717
1,303,792
Amount of
pay roll for
week ending on date
nearest
Apr. 1,1920.
Amount of
cent of Per cent of
pay roll for Per
week end- decrease
in
total
in average
ing on date amount
of
pay per
nearest
pay
roll.
employee.
Apr. 1,1921.
17.5 $11,037,818 $8,539,997
18.1 10,824,000 8,912,400
23.2 4,069,574 2,675,494
43.8 6,994,400 3,213,877
22.0 1,588,993 1,019,434
35.7
497,472
242,913
32.9 11,558,620 7,339,275
21.9 1,049,195
675,142
29.7
976,971
646,981
52.5
641,565
279,243
16.8
170,839
151,210
6.2 2,877,016 3,030,414
22.6
17.7
34.3
54.1
35.8
51.2
36.5
35.6
33.8
56.5
11.5
15.3
6.2
»0.5
14.4
18.2
17.7
24.1
5.5
17.6
5.8
8.4
16.4
U2.3
25.0
29.8
6.4
52,286,463 36,726,380
1
Increase.
NOTE.—The totals given in the table will not in all cases correspond with those published for the several Federal Reserve districts, as in some
cases supplementary returns were received too late to be incorporated in the general report. In one instance, returns received directly have been
added to totals obtained from the district. A certain amount of reclassification of industrial groups has also been undertaken for the purpose of
securing greater uniformity in the general report.
The last column in the table indicates the
percentage reduction in average weekly pay
per employee for the establishments included
in the study. It will be seen that in districts
No. 11 (Dallas) and No. 12 (San Francisco)
there has been an increase in the average compensation of employees—in the former of 6.4
per cent and in the latter of 12.3 per cent,
buch increases are not inconsistent with the
decreases in employment of 16.8 and 6.2 per
cent, respectively, even though no increases in
rates of pay may have occurred. They may
merely represent the higher average earning
capacity of those retained in service. In district No. 2 (New York) also there was a slight
increase in the average pay per employee. In
all other districts material reductions are noted,
ranging from 5.5 per cent in district No. 7
(Chicago) to 24.1 per cent in district No. 6
(Atlanta).
Another table showing the changes in employment and in amount of pay roll, by the
principal industries, follows.
528
FEDEKAL KESEEVE BULLETIN.
MAT, 1921.
NUMBER OF EMPLOYEES AND AMOUNT OP PAY ROLL IN REPRESENTATIVE
IN APRIL, 1920 AND 1921.
ESTABLISHMENTS, BY INDUSTRIES,
Number of employees on pay roll.
Industry.
Cotton textiles
Woolen textiles
Silk textiles
Clothing
Boots and shoes
Lumber
Building materials
Building construction
Paper
Meat packing
Iron and steel
Automobiles
Farm machinery
Electrical goods
Copper
Oil..
Rubber
Printing
Chemicals
Shipbuilding
Tobacco manufacture.
Public utilities
1
1920
1921
108,770
26,727
13,026
43,208
59,103
20,870
21,052
21,305
26,889
83,166
168,751
84,845
21,586
50,588
26,980
22,643
57,711
14,202
12,813
32,453
29,849
320,820
88,884
23,784
11,683
33,417
45,950
15,063
14,028
8,456
24,261
64,532
98,785
38,027
13,555
37,164
16,640
23,331
20,798
12,590
9,200
28,564
24,282
300,360
Per cent of
decrease.
18.2
11.0
10.4
22.6
22.3
27.8
33.4
60.4
9.8
22.4
41.5
55.2
37.2
26.5
38.3
13.0
64.0
11.4
28.2
12.0
18.6
6.4
Amount of pay roll.
1920
Per cent
of decrease
in average
Per cent of pay per
decrease. employee.
1921
$2,699,798 $1,819,749
772,745
609,972
317,697
268,117
1,462,219
975,287
1,644,093 1,248,072
638,977
371,381
697,185
416,665
471,246
211,481
705,259
550,120
2,280,350 1,774,035
6,019,819 2,714,773
3,085,754 1,135,616
858,958
477,969
1,557,510 1,062,521
888,378
453,047
803,384
975,518
1,646,346
355,982
479,738
441,762
465,055
238,081
1,005,161 1,038,729
531,629
313,789
10,551,038 10,646,294
32.6
21.1
15.6
33.4
24.1
41.9
40.2
55.1
22.0
22.2
54.9
63.2
44.4
31.7
49.0
121.5
78.4
7.9
48.8
13.3
41.0
»0.9
17.5
11.3
5.9
13.7
2.4
19.5
10.3
1 13.1
13.5
10.3
23.0
17.9
11.4
7.1
17.3
1 17.8
40.0
13.8
28.7
i 17.4
27.5
17.8
Increase.
Reductions in the number on the payroll were
made in all the industries included in the tabulation, except oil, the reduction being smallest
(6.4 per cent) for public utilities and largest
(64 per cent) for the rubber industry. Among
the highest percentages of reduction in employment shown are those for the automobile industry (55.2 per cent), for building construction
(60.4 per cent), and for iron and steel (41.5 per
cent.) Even larger reductions are shown in the
aggregate amount of pay roll for all industries,
with the exception of building construction,
printing, shipbuilding, meat packing, and public
utilities. The percentage of decrease in average
earnings per employee varies from 2.4 per cent
in the boot and shoe industry to 40 per cent in
the rubber industry. Iron and steel, with a 23
per cent reduction, tobacco manufacturing
with a 27.5 per cent reduction, and chemicals
with a 28.7 per cent reduction, are among the
industries showing the largest cuts in average
weekly earnings. Six industries, on the other
hand, show increases in average earnings per
employee, which varies from 0.3 per cent for
meat packing to 17.8 per cent for oil.
The general tables given above throw no light
on the extent of the rate reductions that have
occurred, nor on variations in the percentages
of those reductions. For this reason a more
detailed presentation of the returns for certain
principal industries within the 12 Federal
Reserve districts is offered below. This review does not, however, cover all the material
available, which will be presented with a greater
degree of elaboration in the reports of the
individual Federal Reserve Banks.
DISTRICT NO. 1—BOSTON.
Data for important industries in district No. 1
(Boston) follow:
Number of
employees.
Weekly pay roll.
Industry.
Apr. 1, Apr. 1,
1921.
1920.
Cotton textiles 90,041
Textiles:
Miscellaneous... 10,940
Finishing. 10,578
Woolen goods. 12,707
B o o t s and
shoes
23,093
Electrical
19,883
goods
Machines and
18,581
tools
Pulp and pa15,911
per
Public utilities 119,305
Apr. 1,
1920.
Apr. 1,
1921.
Percentage
of decrease
in number employed.
Percentage
of decrease
in pay
roll.
76,649 $2,292,648 $1,541,457
14.9
32.8
8,208
11,470
11,857
256,018
244,793
422,647
139,909
224,333
324,715
25.0
18.4
6.7
45.4
8.4
23.2
15,128
634,715
445,620
34.5
29.8
15,177
579,557
384,430
23.7
33.7
10,979
567,686
264,125
40.9
53.5
395,924
14,519
107,253 3,935,824
305,744
3,829,763
8.7
10.1
22.8
2.7
i Increase; strike conditions prevailed a year ago.
In the textile industry there has been a
practically uniform reduction of 22.5 per cent
in wages within recent months, but in some
cases this decrease had been preceded by an
increase of about 15 per cent granted last
June, so that for some establishments the
net reduction for the year is slightly less than
11 per cent. In the boot and shoe industry
there has been no change in rates of wages
during the year.
MAY,
1921.
529
FEDERAL RESERVE BULLETIN.
With the exception of the cases alreadynoted, it is difficult to make any generalizations concerning the character of the wage
cuts which have been put into effect by the
various reporting industries. There has been
very little uniformity in these reductions, but
it is safe to say that with few exceptions it
is generally true throughout the country that
the heaviest decreases in wage rates have been
experienced by unskilled or ^common" laborers.
shown in the general table does not decline
as sharply as numbers employed.
Thirty-seven of the 48 miscellaneous metal
manufacturing concerns stated that there had
been reductions in wage rates and in 22 cases
these reductions were uniform. The average
amount of the cut was 13 per cent for all 37
concerns. Two of the four automobile concerns reported a uniform reduction in wage
rates averaging 11 per cent. Three of the
seven reporting silk manufacturers had also
made uniform reductions amounting to 12
DISTRICT NO. 2—NEW YORK.
per cent in rates of wages. Four of the six
In district No. 2 (New York) the following concerns in the group shipbuilding and repairs
reporting industries have been selected for said that there had been uniform reductions
especial comment:
averaging 11 per cent. In only one of the
six printing and publishing firms had there
Number of
Perbeen a reduction averaging about 12 per cent.
Weekly pay roll.
Peremployees.
centage centage
In general the decreases reported appear not
of de- of deIndustry.
crease crease
to have been so extreme as in other sections
in
numApr. 1, Apr. 1, Apr. 1,
Apr. 1, ber em- in pay of the country.
1921.
1920. 1921.
1920.
roll.
ployed.
Clothing
Silk
Automobiles
Boots and shoes..
P r i n t i n g and
publishing
Miscellaneous
metal manufacturers
Shipbuilding and
repairs
Public utilities...
11,926 10,154
8,906 7,989
11,519 7,694
30,885 26,105
6,592
5,997
$289,700
212,600
326,100
864,800
$248,700
176,200
248,700
678,300
14.9
10.3
33.2
15.5
14.1
17.1
23.7
21.6
241,000
232,800
9.0
3.4
67,560 64,200 2,091,200 2,053,000
5.0
1.8
12,982 6,645 412,900 220,700
108,334 99,160 3,565,000 3,447,000
48.8
8.4
46.5
3.3
DISTRICT NO. 3—PHILADELPHIA.
In district No. 3 (Philadelphia) returns have
been tabulated for the following important
industries:
Number of
employees.
Industry.
Per
centage
of deincrease
numbers
Apr. 1,
em1921.
ployed.
Weekly pay roll.
Percentage
of decrease
in pay
roll.
Apr. 1, Apr. 1, Apr. 1,
Returns were received from 137 establish1920. 1921.
1920.
ments, and of this number 55 per cent had made
reductions in wages since April 1, 1920, and Iron and steel
32.4
48.6
58,531 39,558 $1,798,999 $924,581
10.3
textiles
7.9
nearly 80 per cent of those reporting said that Cotton
5,613 5,170
141,063 126,545
17.1
Woolen textiles... 6,310 5,386
14.6
153,604 127,372
reductions had been made on a uniform basis. Silk textiles
12.5
10.3
4,120 3,694
105,097 91,917
goods
52.8
42.6
1,858 1,067
47,703 22,506
When this was not the case, unskilled workers LKnit
e a t h e r and
42.2
leather goods . . . 7,409 4,285
51.3
208,876 101,690
had generally been the group subjected to the Boots
and shoes... 3,785 3,533
6.7
92,123 84,595
8.2
greatest decrease. As in district No. 1 (Bos- Printing
and pub179,705 150,776
14,7
6,329 5,401
16.1
lishing
ton) no reductions have been made in the Public
3.2
utilities.... 10,576 10,708
383,284 370,851
11.2
wages of the boot and shoe operatives employed by the nine reporting manufacturers. i Increase.
Four railroad and transportation companies
Of the 96 reporting iron and steel companies,
similarly report no reduction in wage rates
and only one of seven other public utility 91 stated that there had been reductions in
corporations reported reductions. In the last- rates of wages. The average reduction both
named case the average decrease was about for skilled and unskilled workers ranged from
9 per cent. But two of the 11 reporting cloth- about 5 to 25 or 26 per cent. In cotton textiles
ing manufacturers stated that wage rates had the wage reductions have affected skilled and
been reduced, the average decrease being unskilled workers in about the same degree,
about 9 per cent. As employees within the the per cent of reductions ranging from about
groups just mentioned have scarcely been 16 to 21 per cent. This was true m the case of
affected by wage, reductions (while increases woolen textiles also, but the reductions were
have occurred in wages of railway and trans- somewhat less in the case of skilled workers.
port workers) and as these groups constitute In silk textiles the reduction ranged from about
a very large percentage of the total number of 12 to 15 per cent and there has been slight
workers covered by the inquiry in district No. 2 differentiation between the treatment of the
(New York), it is not surprising that the per- skilled and unskilled workers. Six out of
centage of reduction in weekly pay rolls as eight reporting knit goods establishments
530
FEDERAL RESERVE BUIJLETIF.
stated that there had been reductions of 15 per
cent applicable to both skilled and unskilled
workers. Only four of the 23 reporting shoe
firms had put into effect reduced rates for unskilled workers ranging from 9 to 11 per cent.
Three of these had reduced the wages of
skilled workers 14 to 16 per cent. Of the 22
leather firms five reported no reduction in the
wages of unskilled workers and six reported no
reduction in the wages of skilled workers. In
the other cases average reductions for both
skilled and unskilled workers ranged from 10
to 25 per cent. The 21 printing and publishing establishments without exception reported
that there had been no change in wage rates to
date. Ten of the 36 reporting public utility companies had reduced the wages of unskilled labor
about 18 per cent, but only three companies announced reductions in the rates paid to skilled
workers.
MAT,
1921.
business, the classes of workers affected, or
localities. The only generalization that can
safely be made is that " common" labor has
as elsewhere had its wages reduced in greater
degree than skilled labor. In the case of six
rubber companies, whose records show a drop
of 71.3 per cent, in number employed, general
wage reductions have taken place in practically
all shops, running from 7.5 to 50 per cent and
averaging around 24 to 26 per cent. Practice
has been by no means uniform, however, in the
case of the five reporting automobile factories.
Reductions of wage schedules ranging from 10
to 30 per cent have occurred in some factories,
while in other cases no changes have been
made. Contrary to the usual policy, the
least reduction had been made in the pay of
"common" labor.
The reductions in wages paid by reporting
establishments in the southern districts have
been decidedly more far-reaching than in
DISTRICT NO. 4—CLEVELAND.
other parts of the country,
and the cuts in the
77
rates
paid
to
"common
For district No. 4 (Cleveland) the following have been especially severe.or unskilled labor
are the principal industries for which reports
have been received:
DISTRICT NO. 5—RICHMOND.
Number of
Industry.
Apr. 1, Apr. 1, Apr. 1,
i
1920.
Ann
Coal and coke
Iron and steel
Electrical machinery
Rubber
Automobiles
Pottery
Public utilities
i
1921.
noi
Percentage
of decrease
in numApr. 1, ber em1921.
ployed.
Weekly pay roll.
1920.
14,071 16,391 $436,796 $366,015
31,557 13,614 1,568,007 523,773
868,321
27,686 20,821
47,245 13,542 1,362,264
861,385
125,323 1,085
148,850
5,532
362,000
12,652 13,043
647,991
293,268
204,632
161,947
391,876
Percentage
of decrease
in pay
roll.
116.4
56.9
16.2
66.6
24.8
71.3
64.1
2.4
13.1
25.3
78.5
76.3
18.8
18.3
i Increase.
There was a very general reduction in wage
rates made by independent steel mills during
February and March, which amounted to
about 20 per cent and affected all classes of
workers. The Steel Corporation, however,
made no changes in wage scales in its plants.
The report from district No. 4 (Cleveland)
states that, among the lines covered by the
survey, pay rolls in four reporting lines—
namely, manufacturers of women's clothing,
pottery, public utilities and construction companies—show increases in rates of pay. This
is due to the fact that these industries are
working under wage agreements negotiated
during the spring and summer months and
generally covering a period of a year. Otherwise decreases in rates of wages have been
quite general, although there has been no
uniformity either as regards the nature of the
The industries selected for detailed examination in district No. 5 (Richmond) are given
below:
Number of
employees.
Industry.
Cotton textiles
Building and construction
Fertilizer manufacturers
Lumber manufacturers
Glass factories
Boots and shoes
Coal companies
Weekly pay
roll.
Per
centage of
decrease
in
A p r . l , A p r . l , Apr. 1, Apr. 1, number
1921.
1921.
1920.
1920.
employed.
Percentage of
decrease
ta
roT
6,091
5,267 $120,816 $68,433
13.6
43.4
4,201
1,880
77,358
32,766
55.2
57.7
3,035
2,212
63,301
28,776
27.1
54.6
2,002
2,270
1,340
4,986
1,755
1,818
1,184
4,274
43,035 24,056
65,092 53,146
52,455 39,557
253,412 215,146
12.3
19.9
11.6
14.3
44.1
18.4
24.6
15.1
The fall in rates paid by four reporting cotton mills has been general and has averaged
about 37.4 per cent, rising to 45 per cent for
some workers in one establishment. All but
one of eight building and construction companies reported decreases ranging from 10 to
50 per cent. In two cases extreme cuts of 50
per cent
were stated to apply to " common
labor.'7 The returns from the seven fertilizer
manufacturers show drastic cuts in the wages of
the unskilled workers who form the bulk of
the employees. The reductions were approximately 41 per cent, while the wages of skilled
MAT, 1921.
531
FEDERAL RESERVE BULLETIN.
employees had not been reduced more than 16 the report from district No. 7 (Chicago) is
to 20 per cent. Five lumber manufacturers included in the following table:
reported that the rates of wages paid to skilled
workers had been reduced 10 to 15 per cent,
Number of
PerWeekly pay roll.
while the unskilled workers had dropped about
Peremployees.
centage centage
40 per cent and in extreme cases 50 per cent.
of de- of decrease crease
Industry.
Of the six glass factories three reported no renum- in pay
Apr. 1,
Apr. 1, in
Apr.l,
emduction; one a 10 per cent reduction for un1920.
1921. ber
1920.
ployed. roll.
skilled labor; another, 15 per cent for young
people; another, 20 per cent for unskilled and Automobiles and
10 per cent for skilled workers. No reduc- accessories
48,003 21,248 $1,898,269 $682,284
64.1
55.7
hemicals,
tions are reported by three coal companies, and C paints,
299,095 142,855
44.
52.2
and soap 9,934 5,499
795,059 540,673
32.0
21,251 15,781
Clothing
two boot and shoe manufacturers have like- Coalmining
25.7
202,484 160,706
20.6
4,r~~ 3,918
wise maintained the same scale of wages.
Contractors and
10.7
DISTRICT NO. 6—ATLANTA.
The selected list of reporting industries for
district No. 6 (Atlanta) follows:
Per
PerWeekly pay
centage centage
roll.
of de- of decrease crease
in num- in
Apr. 1, Apr. 1, Apr. 1, Apr. 1, ber emPay
1921. ployed.
1921.
1920.
1920.
roll.
Number of
employees.
Industry.
Cotton textiles.
Lumber
Public utilities
4,110
1,197
3,622
3,491 $76,971 $46,014
1,279 21,0261 15,544
3,535 94,877 97,920
15.0
16.9
2.4
40.2
26.1
13.2
i Increase.
As in district No. 5 (Richmond), reductions
in wage rates by cotton mills have been extensive, amounting in one case to 34 per cent
as a result of three recent reductions. In
another instance, a uniform reduction of 37.5
per cent has been put into effect; in two other
cases reductions of 20 per cent have been
made; and in a third instance one of 25 per
cent. These changes applied to all classes of
help except in one mill, which stated that
skilled hands had been reduced only 10 per
cent. New wage schedules recently instituted
by reporting lumber companies provide for
reductions of 30 to 40 per cent for unskilled
labor. Six street railway and electrical companies stated that there had been some reduction made in wages of trackmen and unskilled labor.
DISTRICT NO. 7—CHICAGO.
A compilation of the data relating to some
of the more important industries covered by
builders
Iron, steel, and
brass
Lumber and mill
workers
Farm implements
and equipment.
Packers
Public u t i l i t y . . . .
11,962
3,580
18,202
10,117
7,396
19,872 12,222
78,874 61,516
30,651 29,201
261,354
96,691
722,572
355,775
328,036
196,922
814,701 449,390
2,172,257 1,706,298
1,082,340 1,201,916
63.0
70.1
45.7
26.9
38.5
22.0
4.7
50.8
40.0
44.8
21.5
U6.4
i Increase.
In the case of the concerns manufacturing
automobiles and accessories a majority of the
establishments report that all grades of workers
have been equally affected by percentage reductions, which range from 7 to 25 per cent, according to establishments. Sixteen of the 19 clothing
concerns making reports state that there has
been no decrease in the rates of wages paid.
In a limited number of other instances decreases have ranged from 5 to 20 per cent. Of
the 61 concerns manufacturing iron and steel
and brass, 19 report no decrease in wage rates.
The others record decreases ranging from 5 to
20 per cent. No generalization regarding the
class of workers affected is possible, as in some
cases reductions have been confined to the
skilled and in other instances applied to the
unskilled. Manufacturers of farm implements
and equipment report no decrease in wage
rates in 16 out of 84 cases. In other instances
decreases range from 5 to 25 per cent. As a
rule reductions have been uniform within
establishments. Where differences exist, however, the reduction in the rates paid to common
laborers has been greater. Three of the 17
reporting packers state that there have been no
decreases in wage rates. In the other cases
reductions have varied from 8 to 15 per cent.
Contractors and builders report decreases for
21 out of 31 reporting firms, the decreases
varying from 10 to 25 per cent. Sixteen of the
26 reporting public utility companies state that
532
MAT, 1021.
FEDERAL RESERVE BULLETIN.
there has been no reduction in wage rates. In
the other instances decreases have varied from
17 to 30 per cent. Reductions have been
largely confined to trackmen and ^common"
laborers.
Number of
employees.
Industry.
Weekly pay
roll.
Percentage
of decrease
numApr. 1, Apr. 1, Apr. 1, Apr. 1, in
ber
em1921. ployed.
1921.
1920.
1920.
Percentage
of decrease
in pay
roll.
DISTRICT NO. 8—ST. LOUIS.
A table showing changes in numbers employed and in pay roll for specified industries
in district No. 8 (St. Louis) follows:
Number of
employees.
Industry.
Wholesale hardware.
Stove manufacturing
Building materials..
Chemicals,paints,etc
Clothing and dry
goods...... .
Printing
Iron and steel products. . . . . .
Public utilities
PerPercentage centage
of de- of decrease crease
num- in pay
Apr. 1, Apr. 1, Apr. 1, Apr. 1, in
ber
em1920.
1921.
1921.
1920.
ployed. roll.
Knit goods...
Mining
Public utility
1
3,520 3,229 $59,285 $54,104
14,828 8,607 501,632 229,296
6,058 5,864 202,115 220,198
8.3
41.9
3.2
8.7
54.3
19.0
Increase.
3,094
2,712
2,350
1,695
2,553 $117,051 $111,229
88,322 24,589
1,211
63,421 28,886
1,208
36,293 27,522
1,154
17.5
55.3
48.6
31.9
5.0
72.2
54.5
24.2
The greatest reduction in wage rates occurred
in the case of construction companies, which
showed reductions of 20 to 30 per cent. Reductions varying from 15 to 20 per cent were made
by mining and milling companies. Two out of
three public utility companies reported increases in wage rates, in one case amounting to
10 per cent.
4,084
1,524
3,320
1,181
94,447
50,338
81,013
39,422
18.7
22.5
14.2
21.7
DISTRICT NO. 10—KANSAS CITY.
5,971
7,417
4,295
7,590
150,726 94,070
261,611 296,222
28.1
12.3
37.6
U3.2
Weekly pay roll.
The table which follows gives returns in some
detail for the principal mining industries of
Increase.
district No. 10 (Kansas City) and for the
packing
industry:
On the whole, reductions in wages have not
been so numerous nor so great in district No. 8
(St. Louis) as in the sections to the south and
Number of
Weekly pay
Peremployees.
roll.
east, and where reductions have occurred the
centPerage of centskilled labor has not been affected in very
deage of
many instances. Only "common" labor was
crease deIndustry.
in
crease
affected by reduction in wage rates made by six
Apr. 1, Apr. 1, Apr. 1, Apr. 1, numin
1921.
ber
1920.
1921.
1920.
of the seven reporting concerns engaged in the
emSL
production of building materials. Cuts varied
ployed.
irom 10 to 50 per cent, covering all workers.
Only one of six reporting stove manufacturing Lead and zinc
8,900 2,780 $267,000 $58,380
68.7
78.1
6,413 3,591 210,827 107,458
concerns reported a reduction in rates. For Smelting
44.0
49.0
Meatpacking
4,292 3,016 108,093 67,737
29.7
37.3
wholesale hardware establishments no reduction in wage rates are recorded, although one
is in prospect. Of the 14 establishments enThe decreases in rates of wages paid to lead
gaged in the manufacture of iron and steel and zinc miners have been especially severe,
products nine report no changes in wage rates, being approximately 33J per cent to date.
while, in the case of the others, decreases range Wage reductions nave been uniform, but
from 8 to 25 per cent. About two-thirds of where outside labor enters, as carpenters,
the workers covered by reports from clothing bricklayers, and machinists, the extent of the
and dry goods houses had had their rates of reduction is not shown in the reports. In the
wages decreased 10 per cent. In the other Colorado metal mines, for which more specific
cases no change had been made. Manufac- data are not obtainable, it is estimated that
turers of chemicals and paint announce no only about 4,000 men are employed, as comreduction except in one instance, where a 10 pared with a normal number of 10,000. No
per cent drop was made.
exact figures as to the number of men employed in the smelters are available at this
DISTRICT NO. 9—MINNEAPOLIS.
time, but it is known that the smelters are
Details for a group of the leading reporting running at a very much reduced capacity and
industries in district No. 9 (Minneapolis) are a number are shut down entirely. The minimum wage per day at the mines is now as
given in the accompanying table:
1
MAT, 1921.
follows: Leadville, $4; Cripple Creek, $3.50;
Silverton, $4.25; Teluride, $4.
The wages for more skilled men run up to $1
and $1.50 more than the minimum. These figures represent a flat 50-cent reduction since the
first of the year. In the smelters the minimum
wage is $3 and the maximum $5.55. It represents a cut of 10 to 15 per cent since the first
of the year. It is stated that efforts to readjust the situation in meat-packing houses at
packing centers of this district have resulted
in a reduction of approximately 30 per cent
in the number of employees at these plants
within the year. There are probably now
about 35,000 employees at the larger plants
in the six packing cities of Kansas City, Oklahoma City, Omaha, St. Joseph, Denver, and
Wichita, compared with approximately 50,000
employees on April 1, 1920. On March 14 of
this year there was inaugurated a reduction
of 8 cents per hour for all hourly workers and
12J per cent on piece work. The scale is now
in force, although the employees have made an
appeal to the United States Labor Department.
In the bituminous coal field there has been
no reduction of wages, as the contract between
the United Mine Workers' Organization and
the Southwest Interstate Coal Operators'
Association does not expire until April 1, 1921.
On April 1, 1920, the number of men employed in the four States was approximately
32,000, and it is assumed that the number on
the pay rolls on April 1, 1921, closely approximates this number, although the mines are
being operated at less than one-half capacity
this year, whereas a year ago they were operated at more than three-fourths full capacity.
DISTRICT NO. 11—DALLAS.
Twenty-eight replies to questionnaires sent
to different counties in the State of Texas making inquiry concerning changes which had been
made in the wages of farm labor were received.
Of these, 17 report reductions of 50 per cent in
rates; 7 report a 35 per cent reduction, and 4 a
reduction of 25 per cent. Twelve building
contractors reported that there had been a
reduction in the wages of nonunion skilled
mechanics of about 10 per cent, while the wages
of unskilled workers had fallen about 25 per
cent. There had been no reduction in the scale
of wages paid to union labor.
533
FEDEKAL RESERVE BULLETIN.
DISTRICT NO. 12—SAN FRANCISCO.
Returns from district No. 12 (San Francisco)
are as follows for leading lines:
Number of
employees.
Weekly pay roll.
Industry.
April 1, April 1, April 1,
1921.
1920.
1920.
Percentage of
Percentage of
decrease
crease
in
in
April 1, | num1921. } ber
pay
emroll.
ployed.
Copper mining
Lumber
Oil producing and
refinin
Shipbuilding
Public utilities....
12,152
7,554
22,428
19,571
22,205
8,033 $386,745 $223,751
4,633 246,880 134,859
23,096
21, 919
24,006
784,549
592,261
663, 988
954, 826
818,029
790,548
33.9
38.7
13.0
U2.0
18.1
42.1
45.4
121.7
138.1
U9.1
i Increase.
In district No. 12 (San Francisco) the situation is different from that prevailing in other
parts of the country. Keporting establishments were employing 6.2 per cent fewer men
than a year ago, as the number on the pay roll
dropped from 89,977 to 84,412, but pay roll
totals increased 5.3 per cent. The public utility
companies report no reduction in the wages of
regular employees. On the contrary, increases
in rates have occurred during the year. Two
companies state that lower rates are being paid
for common labor. Similarly, steamship companies state that there has been no decrease in
rates of wages paid to any class or grade of
employees, and one firm employing 3,800 men
had made an increase of $2.50 per man per
week due to premium rates. There was likewise no reduction in rates of wages paid by oil
producers and refiners. As these groups of
establishments represent a very large percentage of total returns, it is not surprisinn that the
total weekly pay rolls should show an increase.
The lumber companies have all reduced
wages in varying degrees, and as a rule the
cuts have been considerable, rising to 35 or 40
per cent in some cases. Seven milling concerns also report reductions effective since
January varying from 10 to 12.5 per cent and
applicable to all employees. A number of
miscellaneous unclassified establishments also
stated that there had been reductions. Reports on wage schedules for ten copper mines
show decreases of from 14.8 per cent to 22.1 per
cent for miners, of from 8.3 per cent to 23.1 per
cent for mechanics, and of from 10.5 per cent to
534
27 per cent for muckers (common labor).
There have been decreases in all mines and for
all classes of labor, but for common labor there
have been greater percentage reductions in
most cases than for skilled labor.
Acceptance Market.
The Federal Eeserve Banks have furnished
the following reports on the condition of the
acceptance market in their respective districts
for the period prior to April 23:
District No. 2 (New YorTc).—Ninety-day
bills of the large New York banks held firmly
at 5f to 6 per cent during the last 10 days of
March and until after the completion of April
1 payments. At that time there was a further
easing of call money rates, which was reflected
in the increased demand for bills. Some dealers reduced their offering rate for the best 90day bills to 5J per cent, while others quoted 5f
or 5f. During the first three weeks of April
the ruling rate fluctuated between these figures,
with a tendency toward the end of the period
to center on 5f.
Fluctuations in the volume of sales followed in the main the movements of money
rates. During the second week of April, when
rates were lower and there
was a particularly
active demand, dealers7 portfolios were reduced sharply. But in later weeks sales were
somewhat smaller and portfolios were built
up to about the same amount as at the beginning of the month. Evidence of the further
broadening of this market is found in a report
by two dealers7 of the addition of 45 new puyers of bankers acceptances to their lists within
three weeks. This bank continues to add two
or three members each week to the list of
member banks for whom bills are purchased.
While bills drawn for the purpose of furnishing dollar exchange continue to predominate
in the local market, there has been an increased proportion of both metal, grain, and
packers' bills recently. The volume of sugar
bills offered has fluctuated rather widely, but
these, also, are in heavier volume now than a
month ago.
The minimum buying rate of the Federal Reserve Bank has remained unchanged at 5£ to 6
per cent, according to maturity, for indorsed
prime bills.
District No. S (Philadelphia).—Sales of
bankers7 acceptances in the Third Federal Reserve District during the first few weeks of
April did not keep pace with the earlier months
of the year. This is due in part* to the fact that
many institutions preferred to invest in United
MAT, 1921.
FEDEKAL RESERVE BULLETIN.
States certificates of indebtedness. As compared to last year, sales have been much
larger.
The supply of bills has decreased, but is
ample for the requirements of the market.
Factors in reducing the supply are the disposition of business firms to liquidate acceptances
covering goods in warehouses and the lessening in import and export business. Latest reports of the Department of Commerce show
that March exports totaled $387,000,000 as
compared to $820,000,000 in the previous year,
and imports totaled $252,000,000 against
$524,000,000 last year.
Commercial banking institutions are the
largest purchasers of acceptances, but it is
stated that industrial and business corporations have purchased considerable amounts
with the funds released by curtailment of their
operations. Acceptance dealers complain of
the State laws restricting investments of savings banks and insurance companies, as they
feel that this class of paper furnishes an investment combining security and liquidity in
a high degree. The purchases of the Federal
Reserve Bank of Philadelphia have averaged
$2,741,000 weekly thus far in 1921, as compared to a weekly average of $1,469,000 in
1920 and $270,000 in 1919.
Inquiries among accepting banking institutions in Philadelphia show that during the
month ending A.pril 10, 11 of these institutions accepted bills aggregating $4,561,000 as
compared to $5,321,000 in the previous month,
a decline of 14 per cent. The total amount of
their acceptances outstanding on April 10 was
$13,150,000; on March 10 the amount was
$14,095,000. Cotton, woo], silk, leather, and
oil figure largely among the commodities covered by these acceptances.
Selling rates quoted by dealers operating in
the district are given below, with comparative
rates a month ago and a year ago:
Eligible members'
bills.
Eligible nonmembers'
bills.
April, March, April,
1921.
1921.
1920.
April, March, April,
1921.
1920.
5§-5f
5f-5|
51-6
5f-6
5£-6£
Maturity.
30 days.
60 days.
90 days.
51-6
os-6j
District No. 4 (Cleveland).—The acceptance
market for the month was spotty and the
rates fluctuating. Brokers were unable to
maintain uniformity in rates and purchasers
shopped wide for prime bills. The easing off
and wide range of call money rates in New
MAT,
1921.
York and the zealousness of certain brokers in
the open market to permanently force acceptance rates under the 6 per cent mark brought
about a variance in selling rates of prime
paper. Brokers differed in opinion as to
whether the acceptance market should change
with each indication of better money rates and
conditions throughout the country and offered
their bills accordingly.
A good variety of prime paper was offered in
the market, in addition to the usual amount
of corporation bills and other less-known
paper, but was not absorbed as readily as last
month. Many purchasers took less-known
names as the rates for prime paper declined.
The demand for corporation bills continued
sluggish. Bills created against foreign transactions fell off, but there was a corresponding
increase in domestic paper, due to seasonal
demands. The banks remained the principal
purchasers but there was also an increased
demand by corporations and individuals.
There was considerable increase in the turnover of paper over the previous month. The
present rates for prime 90-day bills vary between 5 | per cent and 5J per cent.
District No. 6 (Atlanta),—The acceptance
market in the Sixth Federal Reserve District
has been very inactive during the early months
of this year. This is attributed to the inactive
movement of commodities, particularly foreign
shipments of cotton. Nowhere in the district
have acceptances been executed to any great
extent, except at New Orleans, which is the
principal export city of the district, and there
each succeeding month since December, 1920,
has shown a decline.
The amount of acceptances rediscounted by
the Federal Reserve Bank of Atlanta for its
member banks during March was slightly less
than the amount for the month of February,
and only approximately 30 per cent of the
sum discounted during the month of January
of this year. The total amount of acceptances
discounted by the Federal Reserve Bank for
its member banks during the first three months
of 1921 was approximately 11 per cent of the
amount rediscounted during the same months
of 1920.
Export movements of cotton financed by
the War Finance Corporation and the Federal
International Banking Co. should materially
strengthen the acceptance market in this
district when cotton commences to move from
interior points to port cities.
Acceptances have never been used in this
Federal Reserve district to any very great
extent, although there is a growing tendency
for their use during periods of crop movement.
535
FEDERAL RESERVE BULLETIN.
District No. 7 (Chicago).—Improvement in
the demand for acceptances is noted. Statistics for March over February showed increased
sales. Most of this demand has been from the
surburban and country banks. One of the
largest dealers reported 80 per cent of the bills
sold to be of 90-day maturity and the remainder
divided between 30 and 60 day maturities.
The acceptances sold by one bank showed 25
per cent of the acceptances drawn against
grain, 25 per cent drawn against sugar, and the
remainder against oil, machinery, tobacco,
coffee, and cotton.
The March returns from three banks and one
dealer show increase over February as follows:
26 per cent in amount of sales, 2 per cent in
amount of purchases, and 9 per cent in amount
held at the close of month. The figures for
these precentages are given below:
March.
Total bankers' acceptances bought during
$18,980,377
month
Total bankers' acceptances sold during month 21,667,561
Total bankers' acceptances held at close of
3,704,819
month
March.
February.
$18,558,189
17,182,243
3,393,617
February.
High. Low. High. Low.
Selling rates for prime bills:
30-day maturity
60-day maturity
90-day maturity
The selling rates show a slight increase for
March over February.
District No. 8 (St. Louis).—The demand for
bankers' acceptances was more active in this
district during the period from March 15 to
April 15 than for some previous time. This
demand came in the main from large mercantile
interests who found themselves with surplus
funds for investment. There has also been a
spotty demand for bankers' acceptances from
several of the larger banks in the principal cities
of the district. Rates during this time have
been more or less unsettled, and recently
brokers were offering unindorsed prime bills at
a flat rate of 5J per cent for all maturities.
From reports it does not appear that this offering has been either attractive or a true measure
of the market for such investments. There is
evidence that some of the smaller banks in the
district are using bankers' acceptances as a
secondary reserve.
The high, low, and customary rates prevailing in St. Louis and Louisville, as reported by
536
FEDERAL RESERVE BUI^ETIN.
MAT,
1921.
banks in those cities, were as follows between tions will result, although their general use may
March 15 and April 15:
be slow of accomplishment.
District No. 12 (San Francisco).—Bankers'
acceptances
purchased in the open market deBankers' acceptances
clined by $16,200,000 during the last two weeks
(unindorsed), 60 to 90 days.
of March and on April 8 stood at $14,030,000,
Customcompared with a maximum holding of this class
Low.
High.
ary.
of paper of $119,000,000 on January 30, 1920.
During this same period bills discounted for
6
St. Louis
6 member banks increased $81,000,000, indicatLouisville
?
ing that funds previously invested in outside
paper were diverted to meeting the demands of
District No. 9 (Minneapolis).—Interest rates member banks for funds to lend their customers
in the Minneapolis money market on April 15 in this district.
as compared with March7 15 were unchanged at
7 per cent for customers loans at banks and 8
per cent for commercial paper. There were re- Methods Followed by City Banks in Granting
Accommodation to Correspondents.
cessions, however, of five-eighths to threefourths per cent in bankers' acceptances, and
This is the third and final article giving the
over one-half per cent on collateral-secured
loans and cattle paper. The prevailing rate on results of a study made by the Division of
April 15 was 5 | per cent on bankers' accept- Analysis and Research of the Federal Reserve
ances and 8 per cent on collateral notes and Board of the methods pursued by reserve city
banks in granting
accommodation to their
cattle loans.
1
District No. 10 (Kansas City).—Bankers are correspondents. In the two preceding articles
devoting their resources and energies to the were considered data from New York and
situation at home and for the present are put- from the West and Southwest. The present
ting little of their surplus into acceptances or article is based upon information obtained
from banks in Boston, Philadelphia, Richother forms of investment.
District No. 11 (Dallas).—The local accept- mond, Baltimore, and Atlanta. For comparaance market has been very dull during the past tive purposes, reference will be made at certain
30 days, and offerings have been in limited points to the practices relative to specific points
amounts only. On March 31 this bank held ac- adopted in centers previously considered, and
ceptances aggregating $20,906, as compared these will be contrasted with practices in the
centers to which major consideration is given
with $1,186,210 on March 31, 1920.
A recent inquiry of 64 banks engaged in ex- herein.
To indicate more clearly the relative imtending acceptance credits in this district
elicited replies from 10, showing that those portance with respect to this type of business
institutions had acceptances outstanding aggre- of the centers included in the present article,
gating $1,745,000, of which $706,000 was based the following table has been prepared, showing
on import and export transactions, and $939,000 loans, both direct and indirect, made by
on domestic shipments, or commodities in national banks in these cities to other banks
storage. The average maturity of the accept- and trust companies.
ances outstanding was 90 days.
[In thousands of dollars.]
No activity is anticipated in the acceptance
market in this district until the financial situaNumber
of banks. Loans.
tion materially improves. In past seasons,
especially in the fall when the banks of the dis...
11
13,975
trict were in surplus funds, acceptances and Boston
29
28,156
commercial paper have been sought as an in- Philadelphia
Richmond
7
5,593
13
2,084
vestment, and have proven an attractive outlet Baltimore
Atlanta
5
5,585
for idle funds. For the past several months,
Total
55, 393
however, there has been little demand for acTotal for all reserve cities having a population of over 50,000
474, 393
ceptances, and purchases by the banks in this
district have been negligible. There have been
no new accepting banks within the month.
The figures are taken from the annual report
The attractiveness of acceptance credits as a of the Comptroller of the Currency for 1919,
method of finance is fully appreciated, and with
the large agricultural interests of the Eleventh 1 The two former articles appeared respectively in the FEDERAL
RESERVE£BULLETIN,
June, 1920 issue, pp. 583-592, and in the'January.
District a large increase in acceptance transac- 1921
issue, pp,r33-41.
"
*
3
MAT, 1921.
FEDERAL RESERVE BULLETIN.
volume I, pages 78-81, and relate to December
31, 1918.
The following figures, taken from pages 46
and 47, show loans by national banks in these
cities to other banks and trust companies in
the form of bills payable and rediscounts
separate from loans on certificates of deposit,
as of March 4, 1919:
[In thousands of dollars.]
Bills pay- Certifiable and cates of
rediscounts. deposit.
Boston
Philadelphia.
Richmond
Baltimore....
Atlanta
12,693
25,115
6,326
2,155
Total.
1,502
20
14,195
25,135
6,326
2,155
6,880
6,854
26
Total
53,143
Total for all central reserve and
reserve cities
\ 234,050
1,548
54,691
17,310
251, 360
In the report of the Comptroller of the
Currency for 1920, Volume I, pages 210-213,
a somewhat different classification is followed.
The figures for January 31, 1920, as given
there, are as follows:
[In thousands of dollars.]
Direct and
Number
indirect
of banks. loans made
to banks.
12
«
Boston
Philadelphia
Richmond
Baltimore
Bills receivable
purchased
from or
discounted
for banks.
10,225
22,715
3, 201
5,101
858
12,460
2,340
1,310
721
471
358
241
625
42,100
17,302
1,224
595
268, 201
147,450
164,310
600
232, 455
115,015
126,924
13
4
Total
Total for all cities
having a population of over
50,000
Total, Dec. 31,
1918
Rediscounts
made to
banks.
I. SOURCES OF INFORMATION.
CONTENTS OF THE FILE.
The banks in the centers included in the
present survey differ greatly with respect to
the elaborateness of the files which they maintain. As indicated previously, practice varies
with the relative importance placed upon
maintaining the impressions on the subject
bank in the mind, instead of having them
recorded in writing and filed away, as well
as with the size of the institution and the
number of borrowing accounts. No pronounced tendencies are found in any one center.
Two of the Boston banks have no special records
537
at all for their credit information, but, on the
other hand, several banks in that center have
files which are among the most highly developed
of any reported by the banks included in the
present survey. One bank divides its file into
six sections, as follows:
(1) General information regarding institutions, memoranda on line of credit granted and
terms, and memoranda on collection arrangements and terms.
(2) Correspondence.
(3) Inquiries.
(4) Interviews.
(5) Miscellaneous data.
(6) Record of banks to whom credit information was furnished on this subject.
The information from statements is recorded
on cards by this bank and statements are filed
elsewhere. On the other hand, some institutions merely have two sections to the folder, one
for correspondence and one for statements.
Annual revision of credit information is the
general policy. That is to say, there is then a
complete rechecking of information, and not
mere addition of data that comes to attention
from time to time, and is placed in the file as it
appears. The Richmond and Atlanta banks
make revision at least once a year, with the
exception of one Richmond bank which makes
revision every six months or oftener at times,
and another which makes a revision when application for loans is made, and one Atlanta
bank which does it "as frequently as necessary." Three Boston banks have no regular
time of revision, but, on the other hand, two
other Boston banks revise at least annually.
Several banks in the other centers also have no
regular time of revision, but the majority of
banks revise their data annually or at least
annually,
EXPERIENCE OF OTHER INSTITUTIONS.
In all the centers included in the present survey, considerable stress appears to be placed
upon the experience of other institutions with
the subject. One Philadelphia institution
states that "information as to standing of
banks is derived chiefly from checkings received
from other institutions." This parallels the
practice of New York City banks, rather than
that of the western institutions included in the
previous article. Certain Boston banks, however, obtain no data of this description, and one
does this only in the case of new banks, or banks
hard pressed for funds. One Richmond bank
states that when extending credit to a "small
bank" it writes to "banks and business men in
the vicinity in which the bank is located," while
where an "old bank" is under consideration it
538
FEDERAL RESERVE BULLETIN.
" checks it up with its correspondents and with
banks and business men in its vicinity." A
Boston bank distinguishes between banks
located in and outside New England. In the
former case, communication is generally had
with mutual correspondents, while in the case
of New England member banks the Federal
Reserve Bank furnishes the best source of
information, supplemented by reports from
New York banks dealing with the subject.
Occasional use is made of the Federal Reserve
Bank by one Atlanta bank, which also frequently consults the State banking department.
The latter is the only case reported in the entire
survey of such consultation, with the exception
of one New York bank. As indicated above,
mutual correspondents are supplemented in
certain cases by banks or more rarely individuals in the vicinity, perhaps in the community
where the subject bank is located. One bank
inquires at the time the account is opened of
all correspondents of the subject bank which
are listed in one of the standard directories.
The correspondents communicated with are
frequently varied from time to time. One
Philadelphia institution states that telephonic
inquiry to other correspondents is frequently
made.
The information requested may be summarized under the heads of (1) integrity of management; (2) condition of the bank; (3) borrowing
aspects; (4) past relations, including size of
account and whether or not it was profitable;
and (5) whether any adverse information has
come to their attention. The extent to which
detailed data under the third and fourth heads
in particular are requested varies considerably.
STATEMENTS OF THE SUBJECT BANK.
There appears to be a more general tendency
among the centers considered in the present
survey to require detailed statements of the
subject than was found among banks covered
in either of the two preceding articles. While
the majority of banks in the centers considered
in the present article also regard the brief
statement as satisfactory, a considerable number of institutions require detailed statements.
One institution in Atlanta reports that it "files
regular published statements of its banks, and
from those to whom it extends credit asks for
detailed statements annually."
Comparative statement forms are employed
by a considerable number of the banks. The
data included by certain institutions are given
in the following table. Form 5 is in process of
revision. This is the only one which is arranged horizontally, the remainder being arranged vertically. Forms 4 and 5 are contained on cards, while the others are on sheets.
I.
Bills discounted, not due.
Time loans against collateral.
Demand loans against collateral.
Overdrafts, secured and unsecured.
IJ. S. bonds to secure circulation
(par value), — per cent.
U.S. bonds to secure U.S. deposits (par value), — per cent.
Other U. S. bonds (par value), —
per cent.
Premiums on U. S. bonds.
Stocks, securities, etc.
Banking house, furniture, and fixtures.
Other real estate owned.
Mortgages owned.
Due from banks and bankers.
Due from approved reserve agents.
Exchanges for clearing house.
Checks and other cash items.
Cash on hand.
Five per cent redemption fund.
Due from Treasurer U. S.
MAY,
1921.
2.
Cash.
Due from banks.
Due from Treas. U. S. and 5 per
centredem. fund.
Total cash due from banks
and Treas. U. S.
Loans and discounts.
Overdrafts.
Stocks and bonds.
Banking house, furniture, and fixtures.
Other real estate.
Customers' liability a/c acceptances.
Interest earned but not collected.
Other assets.
Miscellaneous resources.
Total assets.
Capital.
Surplus and undivided profits.
Unearned discount.
Reserved for interest and taxes.
Circulation.
Bank deposits.
Total assets.
Other deposits.
Total deposits.
Capital stock.
Bond account.
Surplus fund.
Undivided profits, less current ex- Acceptances.
Bills payable and rediscounts.
penses and taxes paid.
Other liabilities.
Dividends unpaid.
Due to banks and bankers (not
Total liabilities.
approved reserve agents).
Due to approved reserve agents.
Correspondents.
Ind. deposits subject to check.
Time certificates of deposit.
Demand certificates of deposit.
Cashier's checks outstanding.
3.
Certified checks.
U. S. deposits.
Loans
and
discounts.
Circulation.
Overdrafts.
Notes and bills rediscounted.
U. S. bonds—Cir.,U. S. dep.,postal
Bills payable.
savings.
Certificates of deposit representing
Stocks, bonds, securities, etc.
money borrowed.
Liabilities other than those above Banking house and furniture.
Other real estate.
stated.
Due from other banks.
Bonds borrowed.
Due
from reserve banks.
Reserved for
.
Checks, cash items, exch. for clearance.
Total liabilities.
Cash in vault and with Federal
Reserve Bank.
Red. fund and due from U. S.
Treas.
Customers' liability under L/C and
accept.
Interest earned but not collected.
Other assets.
Total assets.
Capital stock.
Surplus.
Undivided profits.
National bank notes.
Due to banks.
Individual deposits.
Bank deposits.
Savings and time deposits.
U.S. bonds borrowed.
Bills payable.
4.
Taxes.
L/C and acceptances.
Loans and discounts.
Miscellaneous liabilities.
Cust.—Liab. a/c acceptances.
Stocks and bonds.
Total liabilities.
Real estate.
Overdrafts.
Sales of stock.
Cash and in banks.
Sundries.
Total assets.
Capital.
Surplus and profits.
Deposits.
Bills payable and rediscounts.
Circulation.
Sundries.
Total liabilities.
Our account loans.
Balance.
Capital.
Surplus and profits.
Bank deposits.
Individual deposits.
Rediscounts and bills payable.
Bonds borrowed.
Loans.
Overdrafts.
Stocks and bonds.
Other real estate.
Federal reserve stock.
MAT,
1921.
Various special records analyzing the condition of the account are also kept. Among these
may be mentioned an analysis card showing
high, low, and average loans each month;
amount of net balance and book balance and
per cent of net balance to loans; income on the
net balance, transit overhead cost, and net
profit after deducting such cost. Another bank
records on one side of a card average book
balance and average amount outstanding,
amount of exchange (cost and collected),
amount of interest (cost and allowance), and
net profit or loss; as well as volume, items handled, and their exchange, and on the other side
monthly discounts in hundreds, showing maximum and minimum amounts and rate, divided
into maker, indorser, United States securities,
and interest. One bank keeps a book record
of lines, existing loans, and collection arrangements on the loan officer's desk.
REPRESENTATIVES7 VISITS AND AGENCY
REPORTS.
Practice differs greatly as to the maintenance
of men in the field to visit correspondents, but
the use of such representatives is the exception,
and most of the banks instead have correspondents visited by an officer, generally once
a year. One Baltimore bank experimented
several years ago with a representative, but
" thought that it did not yield results/' while
another has had but one occasion in recent
years to have a representative make a report
on conditions, where a correspondent had failed
to make the proper curtailment in its indebtedness. Philadelphia banks reporting have no
regular representatives, while in Atlanta use is
made of them by several banks, as is also the
case with one bank in Richmond and one bank
in Boston, the latter having several men who
travel a greater portion of the time. The
Richmond bank states:
Such a representative makes a detailed report covering
his observations as to the character and caliber of the men
running the bank, appearance of the bank, class of customers, and conversations of the officers; also impressions
gained by him from inquiries made in the bank's town
and neighboring towns.
Less use is apparently made of the mercantile agency reports in the centers under consideration than in either New York or in the
western centers included in the previous
article. None of the reporting Philadelphia
banks employs them, while the same is true
in Boston, with the7 exception of one bank
which "seldom ever' does, and in Richmond,
with the exception of one bank which frequently uses them. One Baltimore bank
uses them; another, however, only rarely; while
539
FEDERAL RESERVE BULLETIN.
a third has no occasion, as data obtained from
other sources are sufficient. Two Atlanta
banks obtain reports, another only on small
country banks, while another seldom uses
them, a fifth has found them "inadequate,"
and valuable only in so far as light is occasionally thrown on the connections of the officers,
and a sixth does not use them.
II. RELATION OF AMOUNT OF ACCOMMODATION
TO BALANCE MAINTAINED—"CLEAN-UP"
REQUIREMENTS .
BALANCES.
A considerable number of institutions in the
centers under consideration require a minimum average balance. In general this is
20 per cent, although in certain cases from
10 to 20 per cent, or from 15 to 20 per cent,
may be specified instead. One Richmond
institution has more fully explained its requirements as follows:
Our general policy is to extend credit to banks on a
basis of five times their average balance for the previous
six months, and under present conditions we expect them
to maintain an average of not less than 20 per cent of the
loan. All of our correspondents are not complying with
this requirement at this time, but it will have a considerable bearing on future credit extended.
Similarly, one Atlanta bank states that
after accommodation is extended, "we expect
collected balances of at least7 20 per cent of
the loan to be maintained.' Several other
banks in that center apparently have similar
requirements, but one bank states that it
has waived its requirements during the past
six months owing to the unusual conditions
prevailing, and another specifically offsets
balances during the off season against those
during borrowing periods. A Philadelphia
bank which usually grants accommodation
to five times the average daily balance generally restricts credit on later applications if
inadequate balances are maintained, but states
that many institutions first use up their
balance and then borrow to restore it. A
Baltimore bank has made exception in the
past in the case of institutions with which
they have arrangements whereby the other
banks "collected certain items free of exchange, charged direct to their accounts, with
the result that the actual balances as shown
on its books were considerably less than would
otherwise have been the case, in addition to a
saving in exchange." This then provided a
satisfactory profit on the account, but the
condition has been materially affected by the
exchange facilities of the Federal Reserve
System. A Richmond bank states that it
540
FEDERAL RESERVE BULLETIN.
endeavors to make a net profit of — per cent
or better on the account, and on this basis
figures the average balance necessary to
justify the loan. A Philadelphia institution
states in this connection that "the value of
proportionate balances makes itself felt more
keenly at a time like the present when it is
necessary to apportion accommodation according to balances. We also give consideration
to collections and other services rendered us."
One Eichmond institution which does not
require a minimum balance states that although
under present conditions average balances will
exceed 10 per cent, there are quite a number
of bank borrowers who maintain balances of
10 per cent or less.
No minimum dollar amounts are required in
any case, although one bank states that it pays
no interest on average available balances less
than $1,000. Smaller banks are reported by a
number of institutions to maintain proportionately smaller balances, while one Atlanta bank
observes that " balances have usually been lean
with country banks for the last few months.77
A Baltimore institution has " found the tendency to run the line of credit out of proportion
to the compensating balance, to apply in the
case of points where there is but a single small
bank or two rather than in the case of larger
banks in larger towns."
MAT,
1921.
borrowing banks of an Atlanta institution " are
off the books longer periods than they are on,
generally speaking." Speaking of the adaptation of loans to time of liquidation of commodities which the borrowing bank chiefly finances,
a Philadelphia institution instances that cotton
loans should liquidate not later than spring,
and wool loans during the fall. Similarly,
another Philadelphia bank reports that its
southern accounts usually borrow in the fall
and early winter and its Pennsylvania and New
Jersey accounts in the early spring. In the
event that conditions are not propitious for
complete liquidation, reasonable curtailment is
generally expected, as is noted by a Baltimore
institution.
If the clean up does not occur, and it is believed that it should reasonably be made, it is
in general directly requested by personal visit
or by letter. The clean up may be made a
condition of the loan; or the credit extended to
banks that show by chronic or continuous borrowing a tendency to expansion even in normal
times, may be restricted; or the plea of conservative banking may be made. A Boston
bank states that "wherever we believe it is
possible for a bank to reduce its loans by disposing of investments at not too great a sacrifice, we insist that this be done. Furthermore,
we have had occasion to insist that the bank
force its customers to reduce loans through sale
CHARACTER OF BORROWING.
of commodities." A Baltimore bank in certain cases slightly raises the rate, say, one-half
The great majority of loans are for seasonal per cent, on unscheduled renewals.
needs. Two Philadelphia banks, however,
make mention that Government financing is
III. FORMS OF ACCOMMODATION.
increasing loans for other than seasonal needs.
One Boston bank, however, makes seasonal
SECURITY OF THE LOAN.
loans only in the Connecticut Valley on account
As in the case of all the other centers inof the tobacco crop, while another has about
one-third of its loans for nonseasonal needs. cluded in the two previous surveys, the great
One Baltimore bank does not " encourage loans majority of loans are secured. In fact, in all
of this character" (other than for seasonal centers except Boston every reporting bank
needs), as it feels that "it breeds expansion be- states that it either has no unsecured loans, or
yond the safety point." Very little borrowing that the proportion is very small. In Boston,
of a nonseasonal character is in general reported however, one bank reports that 50 per cent,
in the southern centers.
another 40 per cent, and a third 20 per cent
In spite of these differences the general prac- of its accommodation is unsecured. Another
tice is to expect a periodical clean up, if not to Boston bank, on the other hand, has only one
require it, as the large majority of banks do. unsecured loan at present, while a second states
Clean up annually is the general practice. One that "only a small portion of loans to correRichmond institution states that, " as a general spondents are made on an unsecured basis,
proposition, in this section it is not necessary and in such cases only to banks who have been
to require a periodical clean up, as this is done for a long time on our books, with whose
automatically from the marketing of agricul- affairs we are quite conversant, and in whose
tural products." Another, however, has had officials we have entire confidence."
to extend a great many of its loans this year,
The relative proportions of bills receivable
and the same is reported by several other banks, and of securities employed as collateral vary
due naturally to the conditions prevailing in considerably from bank to bank. Certain
the cotton and tobacco sections. Most of the significant differences, however, are found be-
MAT,
1921.
FEDERAL RESERVE
tween the several centers. In both Richmond
and Atlanta the great majority of loans are
against bills receivable. The great majority
of other securities offered consist of Liberty
bonds. In the case of three Richmond banks
giving estimated percentages, the figure for
Liberty bonds ranged from 20 to 25 per cent,
as against 80 to 75 per cent, respectively, for
bills receivable. While some banks in Atlanta
report only a small use of Liberty bonds (one
bank reporting 90 per cent and another 89 per
cent on bills receivable), several report extensive use of Liberty bonds by country banks
in the past few years, and one notes that many
such loans have been liquidated in the past
six months. Several Baltimore banks report
percentages of securities ranging from 25 per
cent to 50 per cent and 67 per cent. Several
banks report a large percentage of Liberty
bonds, but in the case of the others it is relatively small. The five reporting Philadelphia
banks are sharply divided. Two show percentages of 90 to 95 per cent against bills receivable, while the other three show 60 per
cent, 75 per cent, and 75 per cent against
bonds. One of the latter banks states that
" Liberty bonds are not used as collateral by
banks that are members of the Federal Reserve System, and only to a limited extent by
banks that are not members," while one of the
banks showing a high percentage of loans on
bills receivable states that they are usually
only used "in cases where such loans have been
carried since the time of original subscription.77
Reference to the statements of the several
Federal Reserve Banks clearly bears out the
tendency in Philadelphia to rely more largely on
the Federal Reserve Bank for accommodation
against Government obligations. Thus, in the
statement as of April 1 the Federal Reserve
Bank of Philadelphia shows over 60 per cent
of its total bills on hand secured by United
States Government obligations. Only one other
bank, namely, New York, shows over half its
total bills on hand secured in this manner, and
in its case the figure is slightly over 50 per
cent. Practice in Boston differs somewhat
among the various banks. One institution
states:
Our preference for bills receivable or securities as collateral depends considerably on the individual bank.
We have found that oftentimes loans in the form of rediscounts and notes secured by receivables are paid more
promptly than loans collateraled by other securities
where the borrowing banks are inclined to be dilatory in
paying loans. Generally speaking, the larger and stronger
banks borrow on bonds as collateral and retire their obligations promptly.
This bank states that Liberty bonds, although used extensively in 1918 and 1919, are
now employed to a limited extent, and that
541
it "has even brought pressure to bear to have
bonds sold where there was no prospect of the
note being otherwise paid."
Certain banks prefer to lend against bills
receivable; others, however, prefer securities.
Liberty bonds when offered, however, in general receive preference. The latter is often
coupled with a secondary preference for bills
receivable. One Richmond bank remarks that
it shows its preference only when the bank's
assets indicate the possession of Liberty
bonds. As indicated in previous articles,
when there is preference for listed securities
this is ascribed to greater ease in handling
(as checkings and substitutions are avoided),
and the possibility of liquidating more promptly and to better advantage. Hence one
Baltimore bank states that "in ordinary
times we would be glad to reflect our preference in a slightly lowered rate on the loan."
Considerable dinerence is found as to margins between Boston, Philadelphia, and Baltimore on the one hand and Richmond and
Atlanta on the other hand. In particular
this is true of loans with bills receivable as
collateral. In the first two centers 20 per
cent is most frequently specified. In some
cases this applies on all classes, while in other
cases 10 per cent only will be specified on
Liberty bonds. One Philadelphia bank states
that a margin of 20 per cent has been customary, but that recently there has been a
tendency to increase it to 30 per cent, although loans secured by Liberty bonds or
basic commodities carry margins smaller than
20 per cent. Margins in Baltimore vary
from 15 to 30 per cent, several banks distinguishing between bills receivable and securities, and requiring in the latter case 10 or 15
to 25 per cent, as against 15 or 20 to 25 per
cent on bills receivable. The majority of the
Richmond and Atlanta banks refer to the
maximum requirements which they make on
bills receivable. While one Boston bank
stated that many times it had collateral
much in excess of its usual 20 per cent margin, in Richmond the ranges given are from
20 to 25 or 30 per cent to 100 per cent, with
the exception of one bank, which merely gives
25 per cent as its usual margin requirement.
In Atlanta one bank with little business of
this character specifies 25 per cent; another
up to 25 per cent; a third 20 to 100 per cent;
and a fourth in normal times 25 per cent, and
under present conditions 50 to 100 per cent.
The latter is also specified by two other banks,
one of which in recent months has increased
the margin from 50 per cent to 100 per cent.
Several banks in these two centers refer to
lower margins on securities. One Richmond
542
FEDERAL RESERVE BULLETIN.
bank requires 10 to 15 per cent of the market
value against Liberty bonds and Victory
notes, while an Atlanta bank requires 20 per
cent, but in certain cases notes that it has
varied this.
USE OF BILLS RECEIVABLE.
In scattered instances fairly high percentages of rediscounts to total accommodation
extended are reported. Thus 35 per cent is
reported by one Richmond bank, 30 per cent
by one institution in Philadelphia, and by one
in Baltimore. The percentages given in the
other cases range from 8 to 15 per cent, but
the majority of banks, however, merely specify
that the proportion is very small. The Comptroller's figures for Boston national banks as
of January 31, 1920, indicate an amount of
rediscounts in excess of the amount of direct
and indirect loans made, but in all the other
centers the proportion is much smaller. The
general practice is to rediscount only well-rated
names and for strong institutions. Thus, one
bank in Richmond states that it does so only
"for banks in which we have the utmost confidence as to their integrity, management, and
ability, and then only on paper which would
stand on its own merits, in so far as collection
is concerned, without the indorsement of the
banks." The margin which loans against the
bills receivable as collateral carry, and the fact
that in event of failure the balance in the de
posit account can be offset against the loan,
account for the preference for collateral loans
instead of rediscounts. A Baltimore bank
states that it will rediscount " where the correspondents have paper
of a grade equal to collateral securities/7 while an Atlanta bank "requests paper that is eligible for rediscount
with the Federal Reserve Bank. One Philadelphia bank, however, which has by far the
greater part of its loans collateraled by bonds,
states that it "would prefer rediscounting wellrated commercial paper for corresponding
banks instead of making loans on collateral, as
same is invariably paid when due." This view
is similar to that of the Boston bank noted
above in considering the security of the loan.
The majority of banks, on the whole, have
noted no change since 1914 in the methods
whereby accommodation is extended. Certain
suggestions, however, have been made in the
various centers. One Boston bank states that
"since 1914 borrowing has been done in the
shape of time loans to a greater extent than
formerly, when the usual form of borrowing on
the part of New England banks was against
MAT,
1921.
certificates of deposit, usually secured by bonds
and occasionally by bills receivable." (This
method is discussed at greater length below.)
Another bank in that center also reports
an increase in collateral loans. Philadelphia
banks refer to changes brought about by Government financing, and one states that "borrowings have been much less since the Federal
Reserve System started, practically all the
banks in this district securing their accommodation from that source." A Baltimore institution states that "prior to two years ago
practically all loans were made in the form of
a collateral note secured by either bills receivable or securities, the rediscount custom having
been to a great extent copied from the Federal
Reserve Banks."
MATURITY OF LOANS.
The centers included in the present survey
fall naturally into two classes with respect
to the maturity of their loans to correspondents. In Richmond and Atlanta, on the one
hand, loans are largely made on time for
fixed periods. Thus one Richmond bank
states that "it is contrary to our policy to
make demand loans to banks. This is done
only in the rarest cases and only when the
bank assures us the money will be needed for
just a few days. We endeavor to make only
such loans to banks as their seasonal needs
require." Another bank in that center, which,
however, has practically all its loans on time,
notes that it endeavors to put its demand loans
on a time basis if they run longer than six
months, while a third Kichmond bank usually
makes its loans for about 90 days, but at
present is making no loans for a longer period
than 30 days. In Atlanta exceptions are reported only in infrequent cases, one bank
stating that they usually represent commodity
loans. In the other three centers a larger
proportion of demand loans is reported. One
Philadelphia and one Baltimore bank state
that loans on bonds are generally on demand,
while loans on bills receivable are usually on
time. Several Baltimore banks report that
their loans are largely for fixed periods, while
others report loans of both kinds. Philadelphia banks report both kinds of loans, and
likewise in Boston, where one bank, however,
reports that its loans are generally on demand,
and another has about one-third of its loans on
demand. Another Boston institution states
that local or suburban banks usually borrow on
demand, but loans against Liberty bonds
usually run for fixed periods.
MAT,
1921.
FEDERAL RESERVE BULLETIN*.
HOLDING OF COLLATERAL.
Very little holding of collateral by banks
other than the lending institution is reported.
One Boston bank reports an occasional exception in the case of western banks. Several
institutions in Philadelphia and Richmond
report an exception in a few cases for cotton
paper, in order to facilitate substitution or
permit removal and sale. In such cases, the
paper will be returned to the borrowing bank
under trust receipt, in general shortly prior to
maturity. Substitution of other paper is
generally permitted. This depends of course
upon the acceptability of the new paper
offered, and thus one bank notes that inquiry
would be made if the same names were continually offered. Some banks state that they
expect liquidation at harvest time, and others
endeavor to investigate the necessity of the
substitutions proposed.
SPECIAL FORMS OF ACCOMMODATION.
In all the centers, with the single exception
of Boston, very little use of certificate of
deposit borrowing is reported, the great
majority of banks stating that they do not
make such loans, and the others that they are
"not customary" or occur "very seldom."
Although several Boston institutions report
little use of the method, one bank states that
"New England banks are accustomed to borrow on a certificate of deposit secured by bonds
when borrowing temporarily," and, as noted
above, that there has been a decrease in such
borrowing since 1914. That this method is
still employed to some extent is indicated by
the figures given at the opening of this article,
showing the amount of loans in the form of
bills payable and rediscounts, as compared
with the amount of loans on certificates of
deposit, on March 4, 1919. Boston is the only
center included in the present survey which
shows a substantial amount of this special
form of loan, although the proportion (somewhat over one-tenth) is smaller than in either
Dallas, Kansas City, Minneapolis, or San
Francisco, in the last two of which the proportion for national banks was somewhat less
than half the total accommodation granted.
Very few of the banks from whom data were
obtained report the use of other special forms
of accommodation. Securities are stated by
several banks to be sometimes taken from correspondents under a repurchase agreement.
IV.
543
SPECIAL PARTS OF THE ANALYSIS.
ANALYSIS OF BILLS RECEIVABLE OFFERED AS
COLLATERAL.
Practice differs considerably as to the extent
to which scrutiny is made of the receivables
offered as collateral for loans. Several Boston
banks report that no analysis is made. In
general, however, certain features are desired.
Aside from the diversification of the paper,
these are indicated by one Atlanta bank in
the following words: "Bills receivable are generally analyzed as to denomination of the
various notes, sections in which makers are
located, and a scrutiny made for notes of
officers and directors, and a general examination (although no special individual outside
investigation) is made." If the names of
makers are unfamiliar, one Boston bank endeavors to obtain statements. A Philadelphia
institution states that it analyzes "bills receivable as carefully as possible, but in many
cases, where dealing with comparatively small
institutions, we have to depend to some extent
(as to a general assortment of names, many of
which are not rated) upon the financial
strength of the institution under consideration." Another Philadelphia bank obtains
from the borrowing institution data relative to
the financial responsibility of makers and
indorsers in case the ratings are not satisfactory.
Several Richmond and Atlanta banks usually
accept the expression of opinion by the borrowing banks as to the net worth of makers
and indorsers. One institution in the latter
center advises that it "finds it useful" to have
corresponding banks send in the estimated net
worth of the makers "as it makes the officer
making the report in a certain sense morally
responsible for the rating given." The information obtained and the analysis made
depends, it is stated by certain banks, upon
the size of the notes. One Richmond bank
thus states that while it scrutinizes the bills
receivable as to technicalities and requires the
borrowing bank to give it as full information
as it can on each note, " on all notes of any size
we make independent checking through banks
and business men in the same town or vicinity
of the bank, and also secure mercantile agency
reports." One Philadelphia bank, similarly,
while accepting agency reports on small receivables, obtains checkings on receivables in
larger amounts and in most such cases requires
statements. Practice also naturally differs
544
FEDERAL RESERVE BULLETIN".
according to the familiarity of the officers of
the lending bank with the management and
status of the borrowing institution. Several
institutions check names with local friends
where the borrowing bank is not well known.
A Baltimore bank states in this connection
that if the " report in our credit file indicates
that the ability and integrity of the officers in
the case of a given bank are of the highest
order and statements indicate good conservative management, a passing examination of
the receivables offered would serve our purposes, as in such a case the direct note of the
institution could be handled with a very small
risk. However, in the case of banks not showing such strength we would require well-rated
paper such as we handle for depositors."
THE BORROWING BANK'S STATEMENT.
The extent to which the statement of the
borrowing institution is analyzed also differs
considerably between the various banks. A
considerable number of institutions rely more
largely upon their general knowledge of the
borrowing bank rather than upon statement
analysis. Other institutions consider the statement merely in a general way. One Boston
institution states that it only analyzes the
statement in detail when the bank is in difficulty. Certain banks, however, have indicated in some detail the particular points
which are ascertained in their scrutiny. In a
general way the points which will be considered
may be summarized as follows: (1) Relation
of the deposits to the capital investment. In
this connection, one Baltimore and one Atlanta
bank consider the proper ratio between five
and ten times, the bank otherwise being over
or under capitalized; (2) growth of deposits,
which will afford an indication of increase in
earning power; (3) relation of surplus to capital;
(4) relation of loans to deposits; (5) investment in building; (6) investment in stocks and
bonds. In this connection, one Boston institution cites " the heavy depreciation
of bonds
during the last few years'7 as the reason why
it does not like to have heavy bond investment;
(7) relation of borrowings to deposits or to
loans. In addition, one Richmond and one
Atlanta bank refer to seasonal fluctuations in
loans, deposits, and borrowings. An Atlanta
institution also refers to excessive loans to
officers, nature of security and proportion of
" frozen" loans to capital, excessive loans to
customers (in particular on real estate), and
slow or long outstanding loans. Another
Atlanta institution reports that it requires a
capitalization of $25,000 on the part of its
borrowing banks.
MAT,
1921.
Certain institutions limit borrowings to the
capital investment, which is qualified in certain
cases by the statement that tnis prevails under
ordinary circumstances. But few institutions,
however, have such a limit. The great majority have no formal rule. Similarly, almost
all institutions consider each application separately, and do not attempt to fix a line of credit
in advance. Thus in Boston only one institution attempts to fix a line, and this is done only
on such of its borrowing banks as are located
in crop sections, in particular
cotton, while the
New England banks7 applications are considered separately. Similarly, only one Philadelphia bank reports that it fixes a definite line,
ana this it does only in a minority of cases.
All reporting Richmond banks consider each
application separately, although one institution states that it is planning m future to fix
definite lines. Several of the Baltimore banks
report that they fix a definite line, and one
Atlanta bank usually does so, while another
institution in the latter center in some instances
fixes the line at the opening of the season.
The consideration of " charge-offs" requires
intimate knowledge of the affairs of the borrowing institution. Thus the great majority
of institutions from whom data were obtained
made no comment on this point. One Boston
institution, however, states that charge-offs
frequently are discussed in person with officers
of the borrowing banks when the latter visit it.
Several institutions consider charge-offs in connection with dividends, in an endeavor to
ascertain the extent to which losses are written
off and the amount of net earnings which then
remain for surplus or for dividends. One
Philadelphia institution states that if the
profits do not show a normal increase it inquires as to the proportion of earnings to
dividends and charge-offs. One Baltimore
bank observes that "under ordinary circumstances we are of the opinion that a bank with
conservative management should earn not less
than 6 per cent of its invested capital with a
proper ratio of deposits, this allowing for
average loss but not including the dividends.77
EXPERIENCE OF OTHER INSTITUTIONS.
Several institutions included in the present
survey merely have country bank accounts and
borrowers therefore do not obtain accommodation from other sources. The total loans
from all sources, of course, are considered in
determining what the individual institution
will loan. This will naturally include as far as
possible consideration of the conditions under
which these borrowings are made, including
amount, rate, maturity, and nature of the
security pledged.
MAT, 1921.
545
FBDEEAL KESEKVE
RULINGS OF THE FEDERAL RESERVE BOARD.
Amendment to Regulation B authorizing open-market
purchases of six months acceptances growing out of
foreign transactions.
REGULATION B, SERIES OF 1921.
(Superseding Regulation B of 1920.)
On May 6, 1921, the Federal Reserve Board OPEN MARKET PURCHASES OF BILLS OP EXCHANGE, TRADE
AND BANKERS* ACCEPTANCES, UNDER
transmitted to Federal Reserve Banks its Regu- ACCEPTANCES,
SECTION 14.
lation B, Series of 1921, superseding Regulation B, Series of 1920. The Board's letter of
I. General statutory provisions.
transmittal and the amended regulation are
Section 14 of the Federal Reserve Act provides that
set forth below:
Federal Reserve Banks under rules and regulations to be
WASHINGTON, May 6,
1921,
The Federal Reserve Board transmits herewith its
Regulation B, Series of 1921, superseding Regulation B,
Series of 1920, relating to open-market purchases by
Federal Reserve Banks of bills of exchange, trade acceptances, and bankers' acceptances under section 14 of the
Federal Reserve Act. The new regulation is issued primarily for the purpose of permitting Federal Reserve Banks
until further notice to purchase in the open market bankers'
acceptances with maturities not in excess of six months,
which grow out of transactions involving the importation or
exportation of goods. Heretofore three months has been the
maximum maturity of acceptances eligible for purchase
by the Federal Reserve Banks. This amendment to the
Board's regulation was recommended by the Federal
Advisory Council at its conference in February, 1921, and
by the Governors of the Federal Reserve Banks at their
conference in April, 1921.
Two considerations have led the Board to take this
action: (1) The desire to widen the acceptance market by
meeting the wants of savings banks and similar purchasers
of bankers' acceptances who are now deterred from investing in acceptances of longer than three months'
maturity, because of the lack of authority of Federal
Reserve Banks to purchase longer maturities up to six
months; (2) to provide more ample facilities for financing
import and export trade with countries where either
normal conditions or present abnormal conditions indicate
the desirability of rendering assistance by making acceptances of maturities not exceeding six months eligible for
purchase by Federal Reserve Banks. While the Federal
Reserve Banks would, under ordinary conditions, prefer
to confine their investments to paper of short maturity,
that is, not exceeding three months, it is believed that the
present emergency in the foreign trade situation would
be relieved by a more liberal practice. Vigilant care,
however, should be exercised by Federal Reserve Banks
in purchasing acceptances of long maturities, in order that
the liquidity of the aggregate investment in acceptances
held by them should not be affected. In amending its
regulation in the manner described, the Board looks to the
good banking judgment and discretion of the accepting
banks and of the Federal Reserve Banks to avoid any
untoward results. To avoid misunderstanding, the Board
desires to add that the results of this widening of the
investment powers of the Federal Reserve Banks will be
followed closely, with a view to such modification of its
rules or amendment of its regulations as future developments may indicate to be necessary.
The Board has also taken this occasion to make another
slight amendment to Regulation B so that its terms will more
clearly indicate the Board's purpose in permitting Federal
Reserve Banks to purchase in the open market bankers'
acceptances growing out of the domestic storage of goods
other than readily marketable staples.
prescribed by the Federal Reserve Board may purchase
and sell in the open market, at home or abroad, from or
to domestic or foreign banks, firms, corporations, or individuals, bankers' acceptances, and bills of exchange of the
kinds and maturities made eligible by the act for rediscount, with or without the indorsement of a member bank.
I I . General character of bills and acceptances eligible.
The Federal Reserve Board, exercising its statutory
right to regulate the purchase of bills of exchange and
acceptances, has determined that a bill of exchange or
acceptance, to be eligible for purchase by Federal Reserve
Banks under this provision of section 14, must have been
accepted by the drawee prior to such purchase unless
it is either accompanied or secured by shipping documents or by warehouse, terminal, or other similar receipt
conveying security title or bears a satisfactory banking
indorsement, and must conform to the relative requirements of Regulation A, except that—
(a) A banker's acceptance growing out of a transaction
involving the importation or exportation of goods may be
purchased if it has a maturity not in excess of six months,
exclusive of days of grace, provided that it conforms in
other respects to the relative requirements of Regulation
A, and
(b) A banker's acceptance growing out of a transaction
involving the storage within the United States of goods
actually under contract for sale and not yet delivered
or paid for may be purchased, provided that the acceptor
is secured by the pledge of such goods; and provided
further that the acceptance conforms in other respects
to the relative requirements of Regulation A.
III. Statements.
A bill of exchange, unless indorsed by a member bank,
is not eligible for purchase until a satisfactory statement
has been furnished of the financial condition of one or
more of the parties thereto.
A banker's acceptance, unless accepted or indorsed
by a member bank, is not eligible for purchase until the
acceptor has furnished a satisfactory statement of its
financial condition in form to be approved by the Federal
Reserve Bank and has agreed in writing with a Federal
Reserve Bank to inform it upon request concerning the
transaction underlying the acceptance.
National banks as transfer agents.
The Board has received a number of inquiries as to whether national banks may act
as transfer agents under the provisions of section 11 (k) of the Federal Reserve Act. After
546
FEDERAL RESERVE BULLETIN".
'ving the matter careful consideration, the
oard is of the opinion that the capacity of
ftransfer
agent is a fiduciary capacity within
the meaning of section 11 (k), and that, therefore, any national bank which has obtained
permission from the Federal Reserve Board to
act "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" may act as transfer agent, provided that competing State corporations are
permitted to act in that capacity under the
laws of the State in which the national bank
is located.
Demand loans on real estate.
MAT,
1921.
reasonable length of time after its issue would
be subject to any defenses which the maker
had against the former holder.
There may be other practical considerations
of importance in determining whether a demand note is a proper instrument under the
circumstances of the particular case. Such
practical considerations do not, however, affect
the general proposition of law that a national
bank may under the terms of section 24 of the
Federal Reserve Act, and subject to the conditions, restrictions, and limitations therein prescribed, make real estate loans by taking direct
from their customers demand notes executed
by those customers, when the notes are properly secured by mortgages covering real estate
and comply in other respects with the terms
of the law.
The Federal Reserve Board has received a
number of inquiries as to whether national
of quick assets to current liabilities as bearing
banks may make loans on real estate payable Ratio
upon eligibility and acceptability.
on demand under the provisions of section 24
The Federal Reserve Board has been asked
of the Federal Reserve Act.
whether its ruling, published on page 73 of the
Section 24 provides, in part, that—
FEDERAL RESERVE BULLETIN for June, 1915,
* * * no loan made upon the security of such farm is still in effect or has been modified or reversed.
land shall be made for a longer time than five years, and
no loan made upon the security of such real estate as dis- The ruling referred to is to the effect that a
tinguished from farm land shall be made for a longer time note made by a cotton mill may be redisthan one year.
counted by a Federal Reserve Bank although
It is believed that the purpose of this pro- the statement of the mill fails to show an
vision is to prohibit a national bank from tying excess of quick assets over current liabilities,
up its funds for a longer period than five years provided that the general financial condition of
in the case of loans upon the security of farm the mill is satisfactory and the statement of
lands, or one year in the case of loans secured the mill shows that the plant is not mortgaged
by real estate other than farm lands. Inas- and that the deficiency between capital and
much as the bona fide holder of a demand note plant account does not amount to more than
secured by real estate has the right at any $5 per spindle.
It is not the present policy of the Federal
time to demand immediate payment and to
proceed against the property if such payment Reserve Board to lay down definite tests for
is not made, the Federal Reserve Board is of determining whether paper which is eligible for
the opinion that under the terms of the law rediscount by Federal Reserve Banks as a
national banks may make demand loans matter of law should be considered acceptable
secured by real estate, provided, of course, that for rediscount from a credit standpoint. The
the loans comply in other respects with the test prescribed in the ruling for determining
the acceptability of paper of the character
provisions of the law.
It is well to point out, however, that under referred to should not, therefore, be regarded
some circumstances the discount or purchase as binding upon Federal Reserve Banks.
of demand notes may be subject to certain
It can not really be said, however, that the
practical objections. For one thing, if a de- ruling has been reversed, for under the terms
mand note is indorsed, the indorser may be of the law and the regulations of the Federal
relieved of his secondary liability if payment Reserve Board a Federal Reserve Bank may,
is not made within a reasonable time. Fur- if it so desires, rediscount a note made by a
thermore, section 53 of the uniform negotiable borrower whose statement fails to show an
instruments law provides that " where an excess of quick assets over current liabilities.
instrument payable on demand is negotiated Regulation A of the Board's Regulations, Series
an unreasonable length of time after its issue, of 1920, provides that one of the prerequisites
the holder is not deemed a holder in due of the eligibility of a promissory note is that
course." Under this section a bank purchasing " It must not be a note * * * the proceeds
a demand note from a former holder an un- of which have been used or are to be used for
MAY,
1921.
FEDERAL RESERVE BULLETIN.
permanent or fixed investments of any kind,
such as land, buildings, or
machinery, or for
any other capital purpose,77 and the regulation
further provides that compliance with this
prerequisite "may be evidenced by a statement of the borrower showing a reasonable
excess of quick assets over current liabilities.77
Such a statement is not the only evidence by
which a Federal Reserve Bank may satisfy
itself that the proceeds of a note have not been
used and are not to be used for permanent or
fixed investments. The Board has ruled that
547
it is a question of policy to be determined by
the Federal Reserve Bank in each case whether
that bank will rediscount a particular note
offered to it in spite of the fact that the
borrowers statement fails to show a reasonable excess of quick assets over current liabilities. Undoubtedly, as a general rule, sound
banking policy requires that the borrower's
statement shall show such an excess, but it is
for the Federal Reserve Bank to determine
whether, and under what circumstances, exceptions may properly be made to this general rule.
LAW DEPARTMENT.
Authority of national bank to guarantee letters of credit
and acceptances, and to appoint correspondent bank
as agent to issue letters of credit and acceptances.
It recently has been brought to the attention
of the Federal Reserve Board that national
banks for some time have been accustomed to
guarantee letters of credit issued at their request by correspondent banks in7 large centers
on behalf of the national bank s customers.
For instance, it appears that where the customer of an interior national bank desires to
obtain a letter of credit in connection with his
foreign business, the national bank, instead of
issuing the letter itself, will get one of its large
city correspondents to issue a letter for the customer^ account, which the national bank
guarantees; that is, the national bank agrees
that in the event the customer for whose
account the letter is issued fails to put the
issuing bank in funds to meet the acceptances,
the guaranteeing bank will do so. The transaction does not always involve the issuance of
a letter of credit, for the correspondent bank
sometimes simply accepts a draft drawn upon
it by the national bank's customer, and the
national bank, in a collateral agreement with
the correspondent bank, guarantees the customer's obligation to put the correspondent
bank in funds to meet the acceptance. Under
the latter arrangement, the national bank's
liability is the same as the ultimate liability
which arises out of guaranteeing a letter of
credit, so that the two transactions will be considered as one and the same for the purposes of
this discussion. It also appears that some
national banks, in consideration of a fee or
commission, are accustomed to indorse acceptances for the accommodation of their customers
or bill brokers. In connection with such practices, the question has arisen as to whether a
national bank has authority to make such
guaranties or accommodation indorsements, or
whether such acts are beyond the powers
which national banks lawfully may exercise.
Whether or not a national bank has authority
to guarantee a letter of credit or to indorse an
acceptance for accommodation is a question of
law which in the last analysis must be determined by the courts. So far as the Board is
aware, there are no decisions directly involving
this point, and in view of the importance of the
matters involved, it seems advisable for the
Board to state in some detail its views as to the
legal aspects of the situation.
There is no express authority of law which
authorizes a national bank to lend its credit
by indorsing an acceptance or by guaranteeing
or acting as surety on a letter of credit. The
national bank act authorizes national banks
to discount and negotiate notes, drafts, and
bills of exchange, and to make loans on personal security, while section 13 of the Federal
Reserve Act more recently has conferred upon
national banks the power to accept drafts
growing out of certain specified transactions.
It is settled, however, that a national bank7s
power to discount negotiable paper and to
loan money does not carry witn it the power
to guarantee, or act as surety upon, the obligation of another, nor is such a power incidental
to the business of banking. (Commercial
National Bank v. Pirie, 82 Fed., 799; Bowen v.
Needles National Bank, 94 Fed., 925 (cited
with approval in Sponge Exchange Bank v.
Commercial Co., 263 Fed., 20, 26); Bank of
Valdosta v. Baird, 160 Fed., 642.)
In Bowen v. Needles National Bank, supra,
p. 927, the court said in part:
" I t may be stated in general that no banking corporation
has the power to become a guarantor of the obligation of
another, or to lend its credit to any person or corporation,
unless its charter or governing statute expressly permits it.
(Farmers & Mechanics Bank v. Butchers & Drovers Bank,
16 N. Y., 125; Morford v. Bank, 26 Barb., 568; Thomp.
Corp., sec. 5721.) Under section 5136 of the Revised
Statutes, national banking associations are given the power
to 'make contracts' and '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
548
FEDERAL, RESERVE BULLETIN.
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 trie provisions of this title.' There
is in these provisions no grant of power to guaranty the
debt of another, nor can such guaranty be said to be incidental to the business of banking. It has been BO held
in Seligman v. Bank, 3 Hughes, 647; Fed. Cas., No. 12642;
Norton v. Bank, 61 N. I]. 589; and Bank r. Pirie, 27 0. C. A.
171; 82 Fed. 799."
Similarly, although the power conferred
upon national banks to accept drafts carries
with it the power to issue letters of credit as
incidental thereto, it would seem that such
powers do not carry with them the power to
guarantee, or act as surety upon, acceptances
or letters of credit issued by other banks.
In view of these considerations, the Federal
Reserve Board is of the opinion that a national
bank has no authority to guarantee or act as
surety upon a letter of credit, or to indorse an
acceptance for accommodation; that such acts
are ultra vires; and that if the directors of a
national bank enter into such contracts of
guaranty or suretyship, they assume in their
personal capacities the risk of any loss that may
occur.
However, while a national bank can not
guarantee an acceptance which it does not
own, a national bank may purchase an acceptance and immediately resell it with its indorsement, since the power to indorse acceptances
is incidental to the power to negotiate acceptances. (Bowen v. Needles National Bank,
supra; Bank of Valdosta v. Baird, supra.)
There appears to be no authority of law, however, which permits a national bank to lend
its credit by indorsing an acceptance where the
transaction does not involve an actual transfer
of title to and from the national bank.
As to the practice of guaranteeing letters of
credit, it is contended that if, as stated above,
a national bank has no authority to guarantee
or act as surety upon such letters, many national banks will be compelled to forego a
business which is very desirable both from the
standpoint of the banks themselves and from
the standpoint of their customers. The result
will be, it is alleged, that the customer himself
must necessarily go to a large city bank and,
as his financial standing perhaps is not generally known, his request for credit in many
instances will be refused and he will be compelled to seek other and less desirable means
for financing his business.
Realizing the practical force of these considerations, the Board desires to suggest an
alternative method of financing the business
heretofore financed by means of letters of
credit guaranteed by the national banks at
whose request the letters are issued. The
MAY,
1921.
Board is of the opinion that this course, if
adopted, will enable a national bank, with
only slight modifications as to the manner of
handling the business, to continue to carry it
on without entering into an ultra vires transaction. Take the case of a national bank in an
interior community, whose customer wishes
to obtain a letter of credit which will be satisfactory to his foreign dealer. The national
bank, having no international standing, or
being without any department capable of
handling foreign business, does not wish to
issue the letter itself but is willing to extend
its credit to its customer. Under these circumstances, it enters into an arrangement
with, say, its New York correspondent, whereby the New York correspondent agrees as
agent of the interior bank to issue a letter of
credit for the account of the interior bank's
customer, the letter to be issued in the name
of the New York correspondent, but in issuing the letter the New York correspondent
is to act as agent for an undisclosed principal, namely, the interior bank. The interior bank's name will not appear on the letter
of credit, but its New York correspondent
may look to it for reimbursement under the
collateral agency agreement, not conditionally
upon the failure of the customer to put the
issuing bank in funds but directly and unconditionally as the real issuer of the letter. The
beneficiary of the letter and the holders of the
acceptances drawn thereunder will look to and
rely on the credit of the New York bank, for
its name alone will appear on the letter and
the acceptances, but the interior bank will in
fact be the real acceptor and the customer
will be under obligation to put the interior
bank, not the New York bank, in funds to
meet the acceptances as they mature. The
only change necessary in the present method
is that the interior bank, instead of guaranteeing the letter of credit, will execute a separate
contract appointing its New York correspondent its agent, and agreeing unconditionally to
reimburse the agent as such for any moneys
paid out, or, if desired, to put the agent in
funds to meet the acceptances as they mature.
It would seem that this procedure will meet
the practical requirements of the situation and
at the same time avoid the necessity of any
contract of guaranty.
After careful consideration, the Board considers that national banks may properly
finance the business in question in the manner
suggested without exceeding their statutory
powers. A national bank unquestionably may
legitimately finance its customer's business
by issuing a letter of credit in its own name.
If a national bank may issue a letter itself, it
MAT,
1921.
FEDERAL RESERVE BULLETIN.
would seem that a national bank may issue a
letter through an agent, provided that the
national bank has authority to appoint an
agent for that purpose. It is true that, in a
ruling appearing on page 835 of the 1920
BULLETIN, the Comptroller of the Currency
ruled that a national bank can not appoint an
agent at a place other than its place of business
to accept drafts in the name of his principal
bank and to pay such drafts as they mature.
This ruling was based on the construction of
section 5190 of the Revised Statutes which
provides in part:
The usual business of each national banking association
shall be transacted at an office or banking house located
in the place specified in its organization certificate.
The Comptroller said that the acceptance and
payment oi drafts is part of the usual business
of a national bank within the meaning of this
section, and therefore ruled generally that such
business may be transacted only at the national
bank's principal office or banking house and
not in another place through an agent.
The Board is of the opinion, however, that
the provisions of section 5190 do not necessarily
prevent a national bank from appointing
another bank or banker as its agent to issue a
letter of credit in the agent's name. It is well
recognized that, while a national bank may
not transact any part of its "usual business77
at another place through an agent, nevertheless it may appoint an agent for specific purposes
or to transact particular kinds of business.
Under these circumstances, it would seem that a
national bank, for the purpose of financing its
customer's business in the manner herein suggested, may appoint a domestic or foreign
bank or banker as its agent to issue in the
agent's own name a letter of credit and to
accept drafts drawn thereunder, provided, that
the authority conferred is specifically limited
to the particular transaction involved and
that a definite limitation is imposed upon the
amount of each letter of credit.
In case the course suggested should be adopted, the agent bank, which issues the letter and
which is primarily and unconditionally liable
upon the acceptances made thereunder, must
include the liability on such acceptances, as
and when incurred, among its general acceptance liabilities subject to the limitations on
the acceptance power prescribed by law; and,
inasmuch as the interior bank is by hypothesis
the real acceptor and is directly and unconditionally liable to the agent bank for any
monies paid out to meet the acceptances as
they mature or to put the accepting bank in
funds to meet such acceptances, the principal
bank also must in&lude the amount of the
549
acceptances, as and when made, amongfjits
general acceptance liabilities subject to the
Smitations oi law.
It should be remembered that the foregoing
merely represents the Board's opinion as to the
legality of the proposed plan, and as to the
requirements which must be complied with if
national banks see fit to adopt the plan. In
the last analysis, the question whether a
national bank legally may appoint a correspondent as its agent in particular transactions
to issue a letter of credit and to accept drafts
drawn thereunder, and whether in other respects a national bank legally may transact the
business in the manner suggested, is a question
for the determination of the courts. It seems
advisable, however, for the Board to set forth
its views with regard to the matter under discussion in order that its position may be clearly
understood.
This opinion has been submitted to the
Comptroller of the Currency and he concurs
in the views expressed therein.
Qualifications of directors of national banks.
On March 1, 1921, House bill 11307, in relation to the qualifications of directors of
national banks, became a law through the
signature of the President. The text of the
new measure is as follows :
[PUBLIC—No. 349—66TH CONGRESS.]
[H. R. 11307.]
AN ACT To amend section 5146 of the Revised Statutes of the United
States in relation to the qualifications of directors of the National Banking Association.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, That
section 5146 of the Revised Statutes of the United States
be so amended as to read as follows:
"SEC. 5146. Every director must, during his whole term
of service, be a citizen of the United States, and at least
three-fourths of the directors must have resided in the State,
Territory, or District in which the association is located,
or within fifty miles of the location of the office of the
association, for at least one year immediately preceding
their election, and must be residents of such State or
within a fifty-mile territory of the location of the association during their continuance in office. Every director
must own in his own right at least ten shares of the capital
stock of the association of which he is a director, unless the
capital of the bank shall not exceed $25,000, in which case
he must own in his own right at least five shares of such
capital stock. Any director who ceases to be the owner of
the required number of shares of the stock, or who becomes in any other manner disqualified, shall thereby
vacate his place."
Approved, March 1, 1921.
Amendments to State banking laws.
The following recent enactments by State
legislatures, whiah amend the State banking
550
MAY, 1921.
PEDEKAL RESERVE BULLETIN.
laws, are published for the information of the Federal Reserve Banks, or examiner, any information
with reference to the condition or affairs of State banks
Federal Reserve Banks and member banks:
or trust companies organized under the laws of this State
OKLAHOMA.
which become members of a Federal Reserve Bank, or
which apply for membership in a Federal Reserve Bank.
SEC. 6. Any bank or trust company incorporated under
the laws of this State which is or which becomes a member
of the Federal Reserve Bank shall not be limited in its
borrowing or re discounting with the Federal Reserve
Bank of which it is a member.
SEC. 7. All acts and the parts of acts inconsistent
herewith are hereby repealed.
House bill No. 393, recently enacted by the
Oklahoma Legislature, is substantially the
same as the act recommended by the Federal7
Reserve Board and the American Bankers
Association to bring about greater coordination
in the powers of State and national banks and
INDIANA.
to promote uniformity in State and Federal
banking laws. The Oklahoma act reads as
House bill No. 40, recently enacted by the
follows:
Indiana Legislature, amended the laws of
that State relating to loan, trust, and safe
Be it enacted by the people of the State of Oklahoma:
SECTION 1. The words "Federal Reserve Act" herein deposit companies so as expressly to authorize
used shall be held to mean and to include the act of such companies—
Congress of the United States approved December 23,
1913, as heretofore and hereafter amended.
The words "Federal Reserve Board" shall be held to
mean the Federal Reserve Board created and described
in the Federal Reserve Act.
The words "Federal Reserve Bank" shall be held to
mean the Federal Reserve Banks created and organized
under authority of the Federal Reserve Act.
The words "member bank" shall be held to mean any
national bank, State bank, or banking and trust company
which has become or which becomes a member of one of
the Federal Reserve Banks created by the Federal Reserve Act.
SEC. 2. That any bank or trust company incorporated
under the laws of this State shall have the power to subscribe to the capital stock and become a member of a
Federal Reserve Bank.
SEC. 3. Any bank or trust company incorporated under
the laws of the State of Oklahoma which is, or which
becomes a member of a Federal Reserve Bank, is by this
act vested with all powers conferred upon member banks
of the Federal Reserve Banks by the terms of the Federal
Reserve Act as fully and completely as if such powers
were specifically enumerated and described herein, and
all such powers shall be exercised subject to all restrictions and limitations imposed by the Federal Reserve
Act, or by regulations of the Federal Reserve Board made
pursuant thereto: Provided, however, That this section
shall not limit the duties and powers of the bank commissioner and the banking board to supervise, regulate,
administer all State banks and trust companies nor limit
the power of the bank commissioner to declare such bank
or trust company to be an insolvent institution, and to
take charge thereof for the purpose of winding up its
affairs as may now or hereafter be provided by law.
SEC. 4. A compliance on the part of any such bank or
trust company with the reserve requirements of the
Federal Reserve Act shall be held to be a full compliance
with those provisions of the laws of this State which
require banks or trust companies to carry or maintain
reserve other than such as is required under the terms of
the Federal Reserve Act.
SEC. 5. Any such bank or trust company shall be subject to the examinations required under the terms of the
Federal Reserve Act, and the authorities of this State
having supervision over such bank may, in their discretion, accept such examination in lieu of the examination
required under the laws of this State. Such authorities, their agents and employees, may furnish to the
Federal Reserve Board, the Federal Reserve Banks, or to
examiners duly appointed by the Federal Reserve Board,
or the Federal Reserve Banks, copies of all examinations
made, and may disclose to such Federal Reserve Board,
to purchase and hold, for the purpose of becoming a
member of a Federal Reserve Bank, so much of the capital stock thereof as will qualify it for membership in
such reserve bank, pursuant to an act of Congress approved December 23, 1913, entitled the "Federal Reserve Act;" to become a member of such Federal Reserve
Bank, and to have and exercise all powers, not in conflict
with the laws of this State, which are conferred upon
any such member by the Federal Reserve Act.
Commercial Failures Reported.
The wide margin of increase in commercial failures in
the United States, as compared with the exceptionally low
mortality of 1920, continues in evidence, 1,043 defaults
being reported to R. G. Dun & Co. during three weeks of
April, as against only 337 in the corresponding period of
last year. For the month of March, the latest month for
which complete statistics are available, the returns disclose 1,336 insolvencies for $67,408,909 of liabilities. These
figures are not only greatly in excess of the 566 defaults
for $12,699,325 in March, 1920, but the number is the
largest for that particular month since 1916, while the
indebtedness is the heaviest on record for any one month
whatever. Separated according to Federal Reserve districts, the March statement discloses numerical increases
in all instances in comparison with that of March of last
year, the differences being marked in practically all cases.
'The liabilities are, moreover, larger in every district, this
exhibit being especially unfavorable.
Failures during March.
Number.
Liabilities.
District.
1921
First.
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth.
Ninth
Tenth
Eleventh
Twelfth
Total
1920
1921
1920
88
248
63
88
123
152
138
108
27
66
98
137
54 $8,259,999
139 30,836.832
33 1,082,410
63 2,767,384
36 2,918,460
34 2,397,390
64 3,438,805
31 5,273,193
18
703,571
11 4,189,798
19 2,702,583
64 2,838,475
$866,304
6,213,228
644,375
553,082
464,017
382,988
1,420,313
524,242
209,558
42,557
203,445
1,175,216
1,336
566 67,408,909
12,699,325
MAT,
1921.
551
FEDERAL RESERVE BULLETIN.
State Banks and Trust Companies Admitted.
Fiduciary Powers Granted to National Banks.
The following list shows the State banks and trust comThe applications of the following banks for permission
panies which have been admitted to membership in the to act under section 11 (k) of the Federal Reserve Act
Federal Reserve System during the month of April, 1921. have been approved by the Board during the month of
One thousand five hundred and fifty-three State insti- April 1921:
tutions are now members of the system, having a total
DISTRICT N O . 2.
capital of $550,847,840, total surplus of $526,228,748, and Trustee, executor, administrator, registrar of stocks and bonds, guardian
total resources of $10,201,999,550.
of estates, assignee, receiver, and committee of estates of lunatics:
The National Bank of Cohoes, Cohoes, N. Y.
Capital.
Surplus.
Total
DISTRICT NO. 4.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank of New Kensington, New Kensington, Pa.
District No. 4.
DISTRICT NO. 5.
The Midland Bank, Cleveland, Ohio. $2,000,000 $400, 000 $2,400,913
East Pittsburgh Savings & Trust Co.,
East Pittsburgh, Pa
125,000 175,000 3,837,606
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The Planters National Bank of Fredericksburg, Va.
District No. 5.
DISTRICT NO. 7.
Bank of Edenton, Edenton, N. C
Carolina Bank & Trust Co., Henderson, N. C
Farmers Bank & Trust Co., WinstonSalem, N. C
66, 900
66, 900
897,550
100,000
417,276
250,000
1,108,876
District No. 6.
Citizens Bank of Lake Wales, Lake
Wales, Fla
Douglasville Banking Co., Douglasvifle, Ga
Peoples Bank, Greenville, Ga
The Bank of Soperton, Soperton, Ga.
50,000
5,000
55,000
65,000
30,000
25, 000
45, 000
27,608
25,000
560,960
187, 585
319,666
150,000
30,000
902,479
District No. 8.
DISTRICT NO. 9.
Trustee, executor, administrator, guardian of estates, assignee, receiver,
and committee of estates of lunatics:
The First National Bank of Eveleth, Eveleth, Minn.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The Northern National Bank of Duluth, Duluth, Minn.
Acceptances to 100 Per Cent.
Bank of Commerce, Earle, Ark
District No. 9.
Moccasin State Bank,Moccasin, Mont.
Security Savings Bank, Rapid
City, S. Dak
District No. 11.
25, 000
6,000
196,684
50,000
15,000
524,620
Security State Bank of Decatur,
Decatur, Tex
State Bank of Commerce, Commerce, Tex
First State Bank of Perrin, Perrin,
Tex
First State Bank of Quinlan, Quinlan, Tex
60,000
137,457
50,000 ..
273,111
25,000
12,500
184,722
25,000
5,000
141,361
300,000
32,100
2,867,161
50,000
15,000
753,002
25,000
10,000
203,738
50,000
10,000
299,265
District No. 12.
Citizens Savings Bank of Pasadena,
Pasadena, Calif
E. G. Young & Company Bank,
Oakland, Oreg
The Bank of Stanfield, Stanfield,
Oreg
Eastern Oregon Banking Co.,
Shaniko, Oreg
WITHDRAWALS.
Kilgore State Bank, Kilgore, Nebr.
The Farmers State Bank, Allen, Nebr.
LIQUIDATIONS.
Union Trust & Savings Bank, Sioux City, Iowa.
Farmers Guaranty State Bank, Jacksonville, Tex.
First State Bank of Henderson, Henderson, Tex.
Mountainair State Bank, Mountainair, N. Mex.
Marine Bank of Norfolk, Norfolk, Va.
CONVERSION.
The Commercial Exchange Bank, New York, N. Y., has converted
into the Commercial Exchange National Bank.
CHANGE OF NAME.
Long Beach Savings Bank & Trust Co., Long Beach, Calif., to Long
Beach Trust & Savings Bank.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Merchants & Illinois National Bank of Peoria, 111.
Since the issuance of the April BULLETIN the following
banks have been authorized by the Federal Reserve
Board to accept drafts and bills of exchange up to 100
per cent of their capital and surplus:
The Riddell National Bank of Brazil, Ind.
The First National Bank of Ittabena, Ittabena, Miss,
New
National Bank Charters.
The Comptroller of the Currency reports the following
increases and reductions in the number and capital of
national banks during the period from March 26 to April
29, 1921, inclusive:
Banks. Amount.
New charters issued to
With capital of
Increase of capital approved for
With new capital of
Aggregate number of new charters and banks increasing capital
With aggregate of new capital authorized
Number of banks liquidating
Capital of same banks
Number of banks reducing capital
Reduction of capital
Total number of banks going into voluntary or involuntary liquidation or reducing capital
Aggregate capital reduction
Consolidation of national banks under the act of
Nov. 7,1918
Capital
The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement
Against this there was a reduction of capital owing
to liquidations, etc
Net increase
$1,650,000
5,700,000
7,350,000
""960,'666
0
960,000
"ioo'ooo
',350,000
960,000
6,390,000
552
FEDERAL RESERVE BULLETIN.
MAY,
1921.
BUSINESS AND FINANCIAL CONDITIONS ABROAD.
ENGLAND.1
The strike of something like a million miners
in England on April 1 has been the fact of outstanding importance there during the month.
This strike did not come as an unexpected or
unnatural development, but rather is the latest
incident in a long series of unfortunate circumstances which have disorganized the industry
during recent years. In the last issue of the
BULLETIN reference was made to the present
condition of the industry and a brief description
given of recent developments such as the abnormal profits obtained from export coal during
the first part of 1920, the application of these
profits to the subsidizing of the domestic price,
the decline in export demand with the resultant
deficit in industrial revenues in the last quarter
of 1920, and finally decontrol or the removal of
Government support from the industry on
April 1. According to the coal mines emergency act, decontrol was not to occur until
August 31, 1921; the Government, therefore, in
removing its support of the industry on April 1,
or five months earlier than the date set, laid
itself open to attack from both miners and
owners, since the latter groups were guaranteed
a fixed rate of wages and profits under Government control. This precipitated, fixed the
date, and furnished one of the ostensible causes
for the strike, although the underlying reasons
for it must be sought elsewhere.
The conditions of coal mining in England
are such that the rate of return both as to production and profits varies greatly from district
to district. The high-cost mines, however,
have been in operation during the war and
during the period of heavy foreign post-war
demand. The miners in demanding a national
wage agreement and a national pool of profits
to make possible the payment of uniform
wages, raised the question whether these
high-cost mines are to continue in operation, and if so, whether wages paid for work
in them are to be subsidized from surplus
returns from the more valuable mines, from
Government subsidy, or by some other means.
Fundamental economic conditions in England
make the question of operation of high-cost
mines a more pertinent one than it would be in
a country like the United States. In the first
place, coal is a so-called key or indispensable
industry. By its export England provides
cargo for outgoing vessels which otherwise
1
British price, trade, and financial statistics Tvill be found on pp.
601, 602, 605, 606, 608 of this issue of the BULLETIN
would have to charge excessive freight rates on
incoming foodstuffs and raw materials. In
addition, a country engaged in industry on the
scale that Great Britain is needs large quantities of fuel easily available. The contention of
the miners is that these high-cost mines should
not be operated at the expense of labor but
that instead some method should be found for
equalizing wage rates throughout the industry.
Before the strike was called the miners,
mine owners, and Government had been in consultation over the question of the readjustment
that was to occur in the industry with the removal of control. The owners had made the
following offer:
(1) That the wages prevailing in July, 1914,
in each colliery be the point below which wages
should not be automatically reduced; that
wages be computed on the basis of percentage
increases, not flat rate advances from the base
wage.
(2) That owners' profit in each district be
17 per cent of the aggregate wages paid.
(3) That in case of surplus profits, the workmen receive 80 per cent and the operators 20
per cent.
These propositions obviously were not in
harmony with the proposals of the miners for
a national wage agreement, providing as they
do for a solution of the problem along district
lines. They were, however,
referred by the
executives of the Miners7 Federation to the different producing districts for a ballot; with a
result entirely unfavorable to the proposals.
The reason for the unwillingness of the miners
to meet the owners on these or later proposals
was apparently due in the main to a determination on the part of the miners to obtain a permanent settlement of the coal-mining problem
without further delay. The result was a strike
order, effective April 1, followed about a week
later by the threat of a sympathetic strike on
the part of the other members of the triple
alliance, namely, the railway men and the
transport workers.
During the course of April and early May
negotiations have continued between the
miners, owners, and the Government, with the
result that concessions have been made on all
sides. Although at the time of writing no
definite agreement has been reached, the Government has offered a temporary subsidy to
prevent wages from declining below a certain
point, and the mine owners have suggested
that wage agreements be made on the basis of
MAY, 1921.
the "area"—a
larger unit than the so-called
" district/ 7 but not on a national basis.
Meanwhile the statistics which have been
published in the course of the negotiations
further emphasize the difficulties in the way
of obtaining a satisfactory adjustment of the
industry along conventional lines. The wages
offered by the mine owners on April 1 show
extreme variations from district to district
for the same work, the reductions amounting
to from 40 to 50 per cent in the case of the
South Wales district and to not much more
than 15 per cent in Yorkshire. The reductions would seem, however, to average closer
to 30 than to 20 per cent. With the decrease
in the cost of living not more than 20 per cent,
according to official figures, it is not surprising
that a strong organization like the Miners'
Federation will not submit to wage reductions
of these dimensions. On the other hand, the
latest figures showing the deficits in the finances
of the coal industry make clear the problem
of the owners and the Government. The deficit
for January and February amounted to
£9,426,000, or about £1,178,000 a week, while
the deficit for March was £5,259,000. These
deficits are not entirely due to the decline in
the price of coal but are also due in part to a
diminished output per man.
The problem presented by the present condition of the coal industry is somewhat more
extreme than that existing in most industries,
but in essentials it is not different from one
of the most pressing general economic problems
of the present time—namely, the adjustment
of wages to the downward trend of prices.
In England, a fairly large number of wage
agreements are based upon the adjustment of
wages to the cost of living. In these cases
reductions have already been made in accordance with the lower level of retail prices.
Among the largest groups to be affected in
this fashion are railway workers, woolen and
worsted operatives and workers in the hosiery
trades. Others who have suffered reductions
either under sliding scale agreements or outright are certain classes of workers in the iron
and steel industry and silk operatives. In
May, 500,000 cotton operatives will be affected
by revisions in wages in that industry.
Meanwhile wholesale and retail prices have
continued to decline, although at a somewhat
slower rate than earlier in the year. The
Statist index shows a reduction of 3 per cent
in the price level as a whole for the month of
March while the Board of Trade shows a reduction of 7 per cent. The greatest reductions
occurred in the mineral and textile groups
according to both index numbers. In spite of
553
FEDEEAL RESERVE BULLETIN.
a reduction of 33 per cent in the Statist index
since last April when it reached its peak, prices
are still approximately 108 per cent above prewar. The index number of the cost of living
constructed by the Ministry of Labor shows a
reduction of 6 per cent during March.
Unemployment has continued to increase
during the month. The figures published by
the Ministry of Labor show 10 per cent of
trade-union members unemployed at the end
of March, while those out of work who are
insured against unemployment reached the
high total of 1,355,206.
Per cent of trade-union members unemployed
1,528,001 at end of March) }
(membership
1920.
End of—
March
April
May
June
July
August
September
October
November
December
End of—
January
February
March
1.1
9
1.1
1.2
1. 4
1.6
2.2
5.3
3. 7
6.0
1921.
6.9
8.5
10.0
1
Short time and broken time are not reflected in the figures. In the
mining and textile industries a contraction in the demand for labor is
generally met by short-time working.
A study of the movement of prices of individual commodities shows that in England, as
in the United States, the reductions in commodity prices have been very uneven, both
comparing them from industry to industry and
from one branch of a given industry to another.
On the whole the prices of the group of commodities which feed into the clothing trades
and nonferrous metals appear to be nearer prewar levels than any other groups. For instance, certain grades of wool and hides are
below prewar levels, while cotton is only
slightly above it. Typical grades of worsted
yarn and finished shoes, on the other hand, are
still 100 per cent above the 1913 level, and cotton yarn and dloth are at least 50 per cent
higher than before the war. At the same time
coal prices—both bituminous and anthracite—
in March were twice as high as in 1913, and
typical grades of pig iron and finished and semifinished steel products about three times the
prewar level. In the same way cereals and
meats are still far higher than before the war.
It is such maladjustments as these, as well as
the maladjustment between prices at various
stages of the distributive process, that is retarding business operations at the present time.
554
FEDERAL RESERVE BULLETIN.
The following figures show the changes
which have occurred during recent months in
the volume of production in certain leading
industries:
MAY, 1921.
less than the estimate. The new budget for the
year 1921-22 was introduced on April 25, and
provides for expenditures of £1,040,000,000
and revenue of £1,216,500,000. As had been
announced at an earlier date, the excess profits
duty was not retained in the budget and no subProduction (metric tons).
Ship
stitute for it was suggested. Certain indirect
tonnage
under
taxes were likewise reduced. At the same time
Steel in- construcPig iron. gots and1 tion (gross that the budget was introduced the chancellor
Coal.
castings.
tons).
of the exchequer proposed a new scheme for
handling the floating and semifloating debt.
000's.
000's.
OGO's.
Holders of 5 per cent national war bonds ma24,336
Monthly average, 1913
649
2 2,002,6
turing before 1925 are to be offered the oppor1920.
840
19,505
710
3,394,425 tunity to convert their holdings into 3£ per
March
794
17,131
655
April
cent bonds maturing in 1961. This offer is ap846
s 22,131
738
May
845
19,048
726
3,578,000 parently preliminary to some further funding
June
790
3 22,926
750
July
operations in connection with the floating debt.
709
16,970
752
August
885
18,885
741
September
3,731,000
Foreign trade during the month of March
544
533
14,044
October
505
404
15,920
showed
a further decline in value. Imports
November
747
675
20,230
December
3,709,000 were valued
at £93,742,000, as compared
1921.
with £96,974,000 in February, exports at
642
3 21,805
493 !
January
£66,809,000, as compared with £68,222,000
17,369
463
484 !
February
16,437
4 358 5 3,799,000
March
and reexports at £8,888,000, as compared
with
£8,004,000.^ The commodities in the
12 Revised figures.
export group which suffered the greatest deAverage of 4 quarterly estimates.
3 5 weeks.
cline were iron and steel manufactures, cotton
* Provisional.
& Work suspended on all but 2,952,000 tons.
yarns and cloth, and wearing apparel. Imports of foodstuffs remained approximately
Announcement was made on April 28 of a the same as last month, but imports of raw
reduction in the discount rate at the Bank materials, such as cotton, wool, and nonferrous
of England from 7 to 6J per cent. This metals, were considerably reduced.
is the first change in the rate since April, 1920,
Two' bills came up for consideration durthe 7 per cent rate having been effective for
ing
the month which may have a material
the unprecedentedly long period of a year
effect
upon England's import trade. The
and two weeks. Prior to this change in the
German
reparations recovery act, which was
rate at the Bank of England, the rate of interest
made
effective
March 31, provides that imon treasury bills was reduced for the second
porters
of
German
goods are to pay to the
time within a period of six weeks. Treasury
bills had been offered at 6J per cent since April, customs officials up to 50 per cent of the total
1920, when the rate was reduced to 6 per cent on value of the goods imported. The bill also
March 11. On April 27 the rate was further re- provides that goods partially manufactured
duced to 5f per cent. Meanwhile on April 11 outside of Germany but 75 per cent of whose
the chancellor of the exchequer announced that value is due to German production are likethe method of selling treasury bills would be wise subject to tax. This measure is a device
changed from the continuous day to day "over for obtaining reparations payments from Gerthe counter" system to the method of sale by many, and it is possible that if reparations are
tender, which was customary before the war. otherwise provided for the bill may be repealed.
Government control has been exercised over the Its execution will undoubtedly hamper free
money market by the continuous unlimited sale movement of commodities, not only between
of treasury bills, with only temporary interrup- Germany and Great Britain, but also between
tions, since April, 1915. With the return to the Great Britain and other European countries.
prewar method of sale of a fixed quantity of The second measure referred to above is the sobills at a specified date, this continuous control called antidumping bill, providing for the protection of certain key industries and for the
is lifted.
imposition of a duty of 33J per cent on any
Receipts ancl expenditures for the fiscal year articles which are being offered for sale in
closing March 31, balanced remarkably well so England under the following conditions:
far as the national accounts were concerned.
(a) At prices below the cost of production thereof; or
The net surplus for the year 1920-21 had been
(b) at prices which, by reason of depreciation in the value
estimated at £234,000,000, and the actual sur- in
relation to sterling of the currency of the country^ in
plus reached £230,000,000, or only £4,000,000 which the goods are manufactured, are below the prices
3
MAY,
1921.
555
FEDEKAL RESERVE BULLETIN.
at which similar goods can be profitably manufactured in
the United Kingdom; and that by reason thereof employment in any industry in the United Kingdom is being or
is likely to be seriously affected * * *
If this bill is actually applied, it will serve
as a very material barrier against foreign importations.
Developments in the foreign exchange market
during the month have been largely dependent
upon the labor situation. Sterling exchange
on the New York market advanced until the
end of March, reaching at that time the highest
point since last July. At the commencement
of the coal strike there was a reaction which
was not again overcome until the strike order
of the triple alliance was rescinded. The New
York rate stood at $3,935 on April 23.
penditure submitted by the various departments, and the Chamber did not finish its work
on the budget until well into 1921. By that
time it had become evident that the new taxes
enacted last June were not producing as much
revenue as had been expected of them. Receipts from the tax on total business turnover,
in particular, have been disappointing, having
fallen 1,906,000,000 francs below budget estimates. The following table shows receipts
from this tax by months since its enactment, as
compared with the receipts expected:
RECEIPTS F R O M THE T A X ON TOTAL B U S I N E S S
OVER SINCE ITS ENACTMENT.
TURN-
[In thousands of francs.]
1
FRANCE.
On March 19 M. Henry Cheron, the new reporter general of the French Senate's commission on finance, presented his report on the
budget for 1921. In the course of his review of
French finances, M. Cheron emphasized the
necessity for reducing the Government's floating debt, and particularly that part of the debt
which consists of advances from the Bank of
France. France's total debt as of March 1,
1921, is, according to this latest report, made
up of the following items:
FRENCH PUBLIC DEBT, MAR. 1,
1921.
[In millions of francs.]
Interior debt, perpetual and term
Floating debt
Advances of the
Bank of France
Foreign debt l
Total
1
133,000
60, 890
25, 600
83, 245
302, 735
Calculated at the exchange rates of Feb. 28,1921.
M. Cheron added that claims for war pensions, soon to be presented, will necessitate a
great increase in the debt.
Despite the request of the finance minister
and the pressure of public opinion, the Senate's
examination of the budget was not concluded
by the end of the month, and it was necessary
to pass a provisional credit for April. When
the 1921 budget was presented to the Chamber
of Deputies last October it was generally
considered so much like the budget for 1920
as to insure its quick enactment into law. The
Chamber was desirous, however, of making current receipts balance all current expenditures,
except those for which Germany is eventually
responsible. A great deal of time was consumed
in attempting to reduce the estimates for exi French price, trade, and financial statistics will be found on pp.
601, 603, 605, 607, 608 of this issue of the BULLETIN.
Compared
Receipts. with budget
estimates.
July
August
September
October
November
December
January
February
March
Total
1920.
1921.
2,608
3,687
292, 792
234,434
205,492
203,175
+ 1,608
+ 2,687
-407,209
-225, 566
-254, 508
-259,158
183,683
151, 571
147,628
-231,984
-264,096
-288,039
1,425, 070 -1,905,265
This disappointing result is evidently due to
the fact that the revenue from the tax was estimated on the basis of the high price level which
prevailed in France last spring (1920), no allowance being made for the decline in prices
which has occurred since that time. In April,
1920, the wholesale price index of the Bureau
de la Statistique Generale stood at 588 (using
1913 prices as 100), while in March, 1921, it had
fallen to 356, or almost 40 per cent.
In 1920 some of the other indirect taxes
yielded more revenue than had been expected
of them, so that total receipts from indirect
taxes and Government monopolies for the year
exceeded budget estimates. In the first three
months of 1921, however, there has been a
deficit not only in receipts from the total business turnover tax but also in total receipts
from indirect taxes and Government monopolies, which amounts to about 671,000,000 francs.
In March the difference was the result of deficits
in the customs, post-office, and sugar tax receipts, as well as in the tax on business turnover.
The great change which has been taking
place in French industrial life during the last
six months is illustrated by foreign-trade figures
recently published for the first quarter of 1921.
556
FEDERAL RESERVE BULLETIN.
Instead of the usual excess of imports (an excess which amounted to 35,799,000,000 francs
in 1919 and 12,970,000,000 francs in 1920), there
was an excess of exports for the first quarter of
1921 which amounted to 129,000,000 francs.
However, as the following table indicates, this
surplus was all achieved in one month of the
quarter, and during the other two months (January and March) there was a small excess of
imports.
FRENCH
(In millions of francs.]
1921.
In thousands of
quintals.
Excess of
Exports. imports (+),
exports ( — ).
i
j
!
1,982
1,614
1,743
1,883
1,899
1,686
+ 99
-285
+ 57
!
5,339
5,468
-129
;
January
February
March. / .
Total
1
Calculated in 1919 values.
The surplus of exports during February and
the very small surplus of imports during January and March is due as much to the decline of imports of food and raw materials into
France as to the increase in French exports.
Exports for the first quarter of 1921 are larger
than those for the same period in 1920 by
about 1,000,000,000 francs, but exports for
March, 1921, are smaller than those for August,
1920 (when last year's peak was reached according to all the figures now available), by
about 700,000,000 francs. The decline in imports is even more marked. Total imports for
March, 1921, are valued at 1,988,000,000 francs
less than imports for March, 1920, which
marked the high point in the import trade of
last year.
This decline in imports is partly due to the
fact that France is now more nearly able to
support herself than she was during and immediately after the war, but it is also due to the
slackening of industrial production which has
taken place in France as in the rest of the
world in the last six or eight months.
Before this slowing down began, however,
France had given convincing evidence of the
extent to which her industries had readjusted
themselves to peace-time conditions. An examination of detailed foreign trade figures for
1920 shows how prosperous the export trade in
certain commodities became during that year.
The amount of wines, semifinished iron and
1921.
steel products, broad silks, clothes of all kinds,
leather and leather manufactures, machinery
and machines, other metal manufactures, automobiles, and rubber manufactures, exported
during 1920, exceeded, in some cases, by a
wide margin, the amount exported in 1913.
The following table gives a brief survey of the
quantity and value of France's chief exports in
1920:
EXPORTS FROM FRANCE, CALENDAR YEAR
FOREIGN TRADE.1
Imports.
MAY,
1920
Wines
1,357 2,136
Raw wool
109 I 418
Pig iron, iron, and steel
3,666 13,594
Chemical products (except
nitrate of soda)
11,126 4,019 9,193
505
148
246
Yarns
554
350 j 469
Cotton clotii
234
55
143
Woolen cloth
67
62
77
Broad silk
78
32
100
Clothes of all kinds
154
101
188
Leather
46
36
101
Leather manufactures
541
905
823
Machinery and machines...
356 1,527
1,492
Metal manufactures
59
502
258
Automobiles
69
112
Rubber manufactures
188
1
1920.
m minions
francs.
1913
1919
19201
203
310
87
365
241
181
531
964
710
211
212
385
220
429
253
145
89
123
137
227
100
326
269
782
249
1,472
809
323
304
270
153
125
274
1,119
559
1,262
629
1,867
1,657
517
662
?29
548
1,188
462
Expressed in 1919 value units.
The distribution of France's foreign trade
during the year 1920 furnishes an interesting
commentary on the condition of her exchanges.
The countries from which she imported most
are the United States, England, Germany, Belgium, and Argentina. (Imports from Germany
include imports of coal and coke, valued at
1,365,000,000 francs, and of other materials
imported on reparations account, which have,
of course, no effect on the exchange situation.)
France exported most during 1920 to Belgium,
England, Algeria, the United States, Switzerland, and Germany. The excess of her imports
over her exports (although it was smaller than
it had been since before the war) amounted to
12,970,000,000 francs, of which 5,291,000,000
francs represent the excess of imports from the
United States over exports to the United States.
England, Belgium, and Argentina are the other
countries with which the trade figures show this
same inequality, and they partly explain the
unfavorable state of French exchanges during
the year.
The following table sets forth French foreign
trade by countries in 1920 as it has been recently published by the ministry of finance:
MAY,
1921.
FOREIGN
T R A D E OF F R A N C E , 1 CALENDAR Y E A R 1920.
[In millions of francs.]
! Excess of
,__ fo ! imports
Exports.,
Imports. WvT
( + £ ex _
|ports(—).
England
Germany
Belgium
Switzerland
Spain
Italy
United States
Brazil
Argentina
Other foreign countries.
A
l i
Algeria
Tunis. . .
Morocco
Other French colonies and protectorates.
Total
1
6,747
2,658
2,569
803
849
892
7,062
653
2,054
7,893
3,512 !
1,180 i
3,914 ,
1,442 :
960
219
TV*
1, 894
1,926
318
494
647
35, 405
22,435 I
3,235
1,478
1,345
639
35
170
5,291
349
1,675
3,291
884
1,062 I
1,771
304 ;
379 :
4,602
:
i
'
!
966
99
34?
+ 1, 247
-
+ 12, 97C
Expressed in 1919 value units.
There have been several slight changes in the
situation of the Bank of France in March.
The increase in the amount of gold reserve
held in France amounted to about 1,000,000
francs during the month and the increase in the
silver reserve to about 3,000,000 francs. The
note circulation also increased, the difference
between the notes in circulation in the last
week of February and in the last week in March
being about 627,000,000 francs. Deposits,
however, declined to the extent of about
189,000,000 francs.
The wholesale price index of the Bureau de
la Statistique Generale declined 20 points, or
5 per cent, during March, as compared with a
decline of 31 points, or almost 8 per cent, in
February. All the group indexes except those
for vegetable foods and for sugar, coffee, and
cocoa declined, the greatest decrease occurring
in the indexes for animal foods and for sundries.
The nonferrous metal market displayed
greater firmness during March than in the
month previous. Aluminum prices declined,
but lead and zinc rose slightly, and tin prices
fluctuated, closing the month not far from
their end of February level.
The price of metallurgical coke (which is
still regulated by the Government) was again
reduced and fixed at 125 francs as of March 20,
1921. The effect of this decrease upon steel
prices is not yet clear, as other factors have
557
FEDERAL RESERVE BULLETIN.
also contributed to the continued decline of
prices in that industry.
Textile prices were irregular during March.
Japanese raw silk rose in price because of a
shortage at the end of month; Canton, Italian,
and French raw silk prices remained practically
unchanged. Contract prices for cotton at
Havre were also firmer, but Buenos Aires fine
wool in the same market fell sharply.
French retail prices also declined in March.
According to the Paris index number of the
Bureau de la Statistique Generale the decline
amounted to about 6 per cent. As a result of
the decline in retail prices the mechanical industries of the Paris region have decreased the
cost of living bonuses which they have been
granting to their employees.
The Bureau de la Statistique Generale has
recently made public its retail price indexes
for the various regions of France. These
figures show that at present, as before the war,
retail prices in the west are lower than in any
other part of France, while prices in the north
are higher than in any other section. The following table summarizes the figures given out
on this subject:
RETAIL PRICES IN FRANCE 1 BY DISTRICTS.
CenFrance. North. East. Southter.
east.
1913,1st quarter.
1914, 3d quarter..
West.
1,020
1,004
1 043
1, 089
1,030
1,018
1
038
988
Q85
988
3,204
3,802
3,898
4,519
4,303
3, 299
3» 959
4, 117
4, 693
4, 450
3, 155
3, 800
3, 859
4, 456
4, 218
3,228
3,876
3,884
4,522
4,266
3
3
3
4
4,
223
744
3 085
3 533
3 648
4 345
4, 180
942
AlsaceLorraine.
1 084
1 QOft*
1st nuarter..
2d quarter...
3d quarter... .
4th quarter..
1921, 1st quarter.
1
777
423
203
3
3
3
4
4,
092
853
992
530
424
Based on the prices of eleven foods, kerosene, and alcohol.
ITALY.1
Italian foreign trade figures for the entire
year 1920 are now available, valued on the
basis of 1919 prices. Comparison can therefore be made of the volume of trade in the
two years. The table below contains the
figures showing the situation in 1919 and 1920
on a monthly basis.
1
Italian price, trade, and financial statistics will be found on pp.601,
603, 007, 609 of this issue of the Bulletin.
558
MAY, 1921.
FEDERAL RESERVE BULLETIN.
ITALY'S FOREIGN TRADE IN 1919 AND IN 1920.
[Precious metals not included. In millions of lire, based on 1919 value units.]
Imports.
1919
January
February..
March
April
May
June
July
August
Sentember.
October
November..
December..
1,061
1,368
1,656
1, 651
1, 364
1,431
1. 555
'872
1,529
1,190
1, 283
1,663
Total.
16,623
1920
Difference.
-59
-227
-225
-288
+ 37
+ 645
-515
+ 377
-327
-65
-43
-72
1,002
1,141
1, 431
1,363
1,401
2, 076
1,040
1,249
1, 202
1,126
1,240
1,591
-761
15, 862
Italian imports during 1920, as shown by
customshouse statistics, had a value of 15,862,000,000 lire, as compared with 1919 imports
valued at 16,623,000,000 lire, thus showing a
decrease of 761,000,000 lire for the year.
This shows a decrease in actual volume of imports, since in both cases the figures are based
upon 1919 prices. Exports in 1920, valued on
the same basis, totaled 7,804,000,000 lire, exceeding those of 1919 by 1,738,000,000 lire.
Although the excess of imports over exports
remains very large, aggregating 8,058,000,000
lire, it is considerably lower than the excess of
imports in 1919, which was valued at 10,557,000,000 lire. This improvement of nearly
2,500,000,000 lire shows the relative increase in
the physical volume of aggregate exports as
compared with aggregate imports during the
year. In the following table the ratios of exports to imports in recent years are presented:
RATIO OF THE VALUE OF EXPORTS TO IMPORTS, 1900-1920.
Average 1900-1913
1914
1915
1916
1917
1918
1919
1920
72 8
75. 6
53. 9
36. 8
21. 6
20. 9
36. 5
49. 2
It is apparent from the first table above
that neither the decrease of imports nor the
increase of exports were uniform throughout
the year. During the first four months of
1920 the imports showed a decrease of 799,000,000 lire as compared with the same period
in 1919. This decrease is greater than the
total for the entire year. In May and June,
however, an increase of imports set in, which
was mainly due to the heavy demand for
foreign grains, cotton, woolens, alcohols, and
Excess of imports over exports
at end of month—i. e., cumulative.
Exports.
1919
260
301
367
350
358
484
432
548
662
755
717
832
1920
Difference.
1919
1920
Difference.
497
616
683
679
662
752
521
532
571
707
731
853
+237
+315
+316
+ 329
+ 304
+268
+ 89
-16
— 92
-48
+ 14
+21
801
1.868
3^157
4,458
5,464
6,411
7,534
7, 858
8,725
9,160
9,726
10, 557
505
1, 030
1,778
2,462
3,201
4, 525
5,044
5,761
6,392
6, 811
7, 320
8, 058
-296
-838
-1,379
-1,996
- 2 , 263
- 1 , 886
-2.490
-2,097
-2,333
-2,349
— 2,408
-2,499
7,804
+ 1,738
10, 557
8,058
-2,499
oils. In August there was another large increase in imports, which may be accounted
for by the heavy importation of metals and
metal goods.
Exports during the first six months of 1920,
on the other hand, exceeded those of the corresponding period of 1919 by 1,769,000,000
lire, which again is more than the total increase in exports for the year. In the second
half of the year the export trade slackened as
a result of industrial depression in foreign
countries, and figures for August, September,
and October are lower than those for the
corresponding months in 1919. The export
trade in cotton goods and silk were particularly seriously affected. In fact, 1920 exports
of silk up to the end of November were valued
at 90,000,000 lire less than those of a similar
period in the preceding year, while at the end
of June they had exceeded those of the first
six months of 1919 by 459,000,000 lire.
It would seem that the reduction in imports
occurred in those commodities which are usually imported in the greatest quantity; in other
words, raw food materials and metals. Thus
during the first 11 months of 1920, the latest
period for which detailed figures are available,
imports of animals and animal products
amounted to 780,000,000 lire as compared with
1,855,000,000 lire in the same period of 1919;
imports of cereals, fruits, and vegetables
showed for the same period a decrease of about
360,000,000 lire; while imports of metals and
minerals and their products decreased similarly. These and other decreases were compensated to a certain extent by the increase in
imports of other classes of goods of which
cotton, wool, bristles and furs and their products, silk, timber, alcohol and oils, paints and
dyes are the most important.
MAY, 1921.
The commodities in which the greatest improvement was shown in the export trade
between the years 1919 and 1920 are chemical
goods, including medical and toilet supplies,
hemp, flax and their products, cotton and cotton goods, vehicles, and vegetable foods. The
export trade in silk decreased during the year.
The chief source from which Italy draws her
imports is the United States. During 1920 she
imported cotton to the value of 1,097,000,000
lire, grain to the value of 981,000,000 lire,
mineral oils valued at 345,000,000 lire, and coal
at 307,000,000 lire. Great Britain ranks second
as the source from which she obtains her imports. Coal constitutes almost one-third of the
value of her total imports from there. Argentina, France, and Germanv rank next in order
of importance as sources of Italian importation.
France, Switzerland, Great Britain, and
United States are the chief countries to which
Italy sends her commodities. I n the case of
France and Switzerland silk constitutes the
largest proportion of the exports.
GERMANY.1
Because of the Government's decision to
allow an increase in coal and coke prices in
Germany, the downward movement of the
wholesale price index of the Frankfurter
Zeitung was arrested during March. The " all
commodities index," published by that newspaper, which had declined 14 per cent from December 1,1920, to March 5,1921, decreased only
eight-tenths of 1 per ceat from March 5 to April 2.
Although the increase in coal prices was the
determining factor in retarding the decline of
the index number, the prices of cement, zinc,
lead, nickel, and hides also increased during the
month. Among the foodstuffs, the price of
milk increased greatly in March, but other
important foods, including eggs, corn, condensed milk, rice, wine, cocoa, coffee, peas, and
beans, declined in price. There were also sharp
price decreases among the textiles, but raw
cotton rose slightly.
As the wholesale price index number of the
Frankfurter Zeitung now stands, it contains the
prices of 77 important commodities. The
original computation is based upon prices in
January, 1920, equal to 100, and on this basis
9.10 is the index number for the middle of
1914 and 130 for April 2, 1921. I t is evident
that if the index is recomputed, using 1914 as
100, the index number for January 1, 1920,
will be 1,099 and for April 2, 1921, 1,429.
I t seems clear from the various indexes prepared on the subject of retail prices in Germany
1
German price, trade, and nnancial statistics will be found on pp.
601, 603, 605, 609 of this issue of the BULLETIN.
559
FEDERAL RESERVE BULLETIN.
that there has been, since the first of the year, a
slight decline in the prices paid by the consumer. Beside its general wholesale price
index, the Frankfurter Zeitung compiles a
wholesale and a retail price index for 10 foods
in Frankfurt, using January, 1920, as 100. On
March 1 the wholesale price index registered
105 and the retail price index 122. During the
month both indexes declined, the decrease
being almost 8 per cent in the case of the wholesale prices and almost 6 per cent in the case of
retail prices. This index does not include any
meat prices, however.
The most recent figures on the cost of subsistence prepared by the Berlin statistical
office also show a slight decline in retail prices.
The minimum cost of food for a growing
person was estimated by that office to be 58.09
marks in February as compared with 61.23
marks in January, a decline of about 5 per cent.
The index number of total living costs in
Germany, prepared by Dr. Elsas and published
at intervals in the Frankfurter Zeitung, uses
April, 1919, as 100, and stands at 297 on the
first of March, 1921, a decline of 14 points, or
4.5 per cent, from the January 1 figure. On
this basis the cost of living index on January
1, 1914, was 26.5. The following table shows
the distribution of the different elements
which go to make up Dr. Elsas's index:
COST OF LIVING IN FRANKFURT AM MAIN.
Apr. 1,
1919.
Nov. 1,
1920.
Jan. 1,
1921.
Mar. 1,
1921.
Food
Clothing
Rent
Heat and. light
Miscellaneous ..
60
17
8
5
10
230. 33
27.97
9.60
17.95
29.86
225.65
26.21
9.60
18.10
31.35
212.92
24.59
10.00
18.10
31.35
Total
100
315. 71
310. 91
296.96
The comparative stability of rent costs
shown in the above table is due to the fact
that rents are regulated by the Government.
The increase recorded from January 1 to
March 1 is the result of a new regulation which
requires tenants to make all necessary repairs.
Along with the decline in wholesale prices in
Germany since December there has been an increase in the number of bankruptcies. During
the war period, when the Government so largely
controlled industry and prices were continually
rising, the number of commercial failures was
reduced almost to a minimum. During 1920
there was a slight increase in their number,
but the increase in the first quarter of 1921 is
much more marked, although it is still far
below the prewar average. The number of
bankruptcies from January to March, 1921,
560
FEDERAL RESERVE BULLETIN.
was 728, as compared with 207 in the first
quarter of 1920, and 2,428 in the first quarter
of 1914.
What seems to be another consequence of
the shift in the trend of business conditions is
the comparatively small number of corporations which increased their capital stock during
March. During 1920 and January and February, 1921, there was a general movement
among German corporations to increase the
amount of their capital issues in order to bring
them more into accord with the present price
level. However, the amount of the capital
issues placed upon the German market in
March was much smaller than in the first
two months of the year. The increases in
capital during the month amounted to only
531,000,000 marks, as compared with increases
of 1,373,000,000 marks in February and
1,092,000,000 marks in January.
There seems to have been little change in the
labor situation in Germany from February 1 to
March 1 (the latest date for which figures are
available). The German trade-unions report
that of their membership of over 6,000,000 on
the last of February, 4.7 per cent were out of
employment as compared with 4.5 per cent the
last of January and 4.1 per cent the last of
December. On the other hand, the Government announces that the number of people receiving State aid on account of unemployment
fell from 433,204 on February 1 to 428,033 on
March 1, a decrease of a little more than 1 per
cent, and the public employment agencies note
a similar improvement. During January there
were 210 applicants for every 100 positions
available at these agencies, while during February there were only 206 applicants for every
100 positions open.
The public employment agencies tabulate
applicants for positions and positions available
by industries and thus furnish an interesting
index as to the activity of the various industries in the country. During February there
were more applicants for positions in relation
to positions open in the textile industry than in
any other, but the leather industry, the metal
and machine trades, commerce, and the
building trades also furnished a great many
unemployed. It is interesting to note that the
number of women applicants for every 100 positions open amounted to only 133 during February, wnile the number of men for every 100
positions reached 251. In the case of a few
industries, inquiries for workers exceeded applicants for positions. In mining there were
only 92 men applying for each 100 positions;
in agriculture only 46 women applying for each
100 openings; and in domestic service only 83
women responded to each 100 inquiries. The
MAT,
1921.
States where the greatest amount of unemployment occurred during February were Saxony,
Hamburg, and Lubeck, although unemployment was also very great in Prussia. The following table gives a survey of the work of the
public employment agencies during February:
ACTIVITY OF PUBLIC EMPLOYMENT AGENCIES IN GERMANY, FEBRUARY, 1921.
Men.
By industries.
Agriculture.
Mining, etc
Stone and earth industry
Metal and machine
industry ...
Chemical industry..
Textile industry
Paper industry
Leather industry
Woodworking
Food industries
Clothing and cleaning trades
Building
Transformation industries
Industries involving
artistic work
Machinists, etc., industries not specified
Commerce
Entertainment
Miscellaneous wage
work and household service
Casual labor.
Apprentices in all
industries
Without professional
groupings
Total
Men and women together
Women.
Number of
Num- appliNumNumber ber of cants ber
seeking posi- each seekwork.
tions
ing
100
open. posi- work.
tions
open.
47 713
15,084
30 594
16,344
156
92
Number of
Num- appli
ber of cants
positions each
100
open. positions
open.
46
8 843
110
•
6,960
3,273
213
101,649
2, 255
10,758
3,168
8,189
22,274
27, 842
28 491
1,184
2,138
950
1,685
7,929
8,366
357
190
503
333
486
281
333
13 031
1,111
18,466
3,921
1,141
1,122
5,846
4 239
475.
4,958
2,192
598
506
3,537
307
234
372
179
191
222
165
22 385
64,849
8 671
19,105
258
339
18 101
9 621
18S
9,224
4,512
204
1,732
1,481
117
1,446
192
65 655
24,195
39,314
18 855
6,148
28,042
348
394
140
46 939
12 660
16,660
9 991
5 625
16,420
47G
225
101
237,018
41,507
79,868
26,558
297
156
87,669 105,471
2,431
4, 748
83
195
20,627
14,597
141
11 092
4 271
260
824
31
1,171
502
772,936 307,533
1,027,239 499,039
251 254,303 191,506
133
206
It is quite generally admitted that one reason unemployment in Germany is not more
widespread at the present time is that the
Government continues to carry so large a
number of employees on its pay rolls. The
Reichstag commissioner, who was appointed to
eliminate extravagance in Government departments, has resigned his position, and a new
method for reducing the number of people
employed by the Government has now been
inaugurated. However, it remains to be seen
how the new scheme will work, and the new
budget contemplates an increase rather than a
decrease in so-called " ordinary expenditure."
The budget for the year ending March 31,
1922, is now in the hands of the Reichstag.
It compares as follows with the estimated
MAY,
1921.
FEDEKAL, RESERVE BULLETIN.
561
expenditures for the year ending March 31, cent to France, 3.1 per cent to Belgium, and
1921:
2.9 per cent to Italy. The article in question
does not quote figures on imports for this same
period, nor does it state whether exports
ESTIMATED G E R M A N GOVERNMENT E X P E N D I T U R E S .
shipped on reparations account are included
[In millions of marks.]
in the export figures just quoted. For this
reason it is impossible to draw any conclusion
Fiscal
Fiscal
year 1920. year 1921. as to Germany's balance of trade from this
statement.
The March 31 statement of the Reichsbank
47,000
Ordinary budget
I 41,600
40,500 shows an increase of 1,990,000,000 marks in
Extraordinary budget
| 62,300
11,700
Railway deficit
;\ 1Q Onn
2,000 the note circulation of the bank as compared
Postal deficit
1/ i y >^ u u
101,200 with the end of February, and a decrease of
Total
123,000
587,000,000 marks in the Darlehnskassenscheine
in circulation. There was practically no
It is expected that taxes already in force change in the gold reserve held by the bank.
will produce 43,800,000,000 marks this year
SWEDEN.1
and that new taxes will be enacted and old
taxes increased to meet the remaining 3,200,Reports from Sweden indicate that depres000,000 marks of the ordinary budget. sion
in industry there is as serious as in other
Theoretically the budget will balance before the countries
whose development is more excluyear is over. Of the 40,500,000,000 marks to be sively industrial.
of manufacspent on the extraordinary budget 10,600,- tured commodities inProduction
all lines has been heavily
000,000 marks will be met by revenue (includ- reduced, unemployment
is growing, prices are
ing 7,800,000,000 marks from the Reichsnotop- on the decline, and the export
trade has fallen
fer, which was originally designed to reduce the to one-third of its value six months
ago.
outstanding debt) and 29,900,000,000 marks
Although
there
was
a
slight
slackening
the
by 77loans. Assuming that the "ordinary bud- rapidity of recession, wholesale prices ofconget receipts and expenditures will balance tinued to decline in March. The all combefore the year is over, the estimated deficit modities
index number of the Svensk Handelsfor the fiscal year 1921 amounts to 43,600,- tidning, computed
the basis of prices in
000,000 marks, which is smaller than the 1913 = 100, dropped on
from
in February to
deficit for the fiscal year 1920 by about 237 in March, a decrease of250
5 per cent as com38,000,000,000 marks.
pared with a decrease of 6 per cent in the preThe Leipzig spring fair opened on March|6, ceding month. Practically no change occurred
and by the 7th the attendance was placed at in the wood-pulp index, which stands at the
90,000, including buyers from England, Amer- high figure of 510 and still far exceeds the
ica, Sweden, Czecho-Slovakia, Bulgaria, and index numbers for other commodity groups.
Roumania. The textile display and the exhib- Appreciable declines were registered in the
its of mechanical apparatus and electrical index numbers for building materials, coal, and
machines attracted the greatest number of oils. A notable feature was the drop in the
visitors. In general, however, German foreign price of hides and leather to 15 per cent below
trade was in a choatic condition during March. the prewar level. The retail price index, comThe imposition of the 50 per cent import duty puted on the basis of prices in July, 1914 =
on German goods by England, France, and 100, declined from 262 in February to 253 in
Belgium caused the cancellation of contracts March, a fall of approximately 3 per cent.
with individuals in those countries by German
The paper-pulp industry, second only to
merchants and further contracts were withheld lumber in importance in Sweden's national
until the reparations question should be economy, is affected by the worst depression
settled.
in its history. In February only 6,300 dryIt is impossible to form any very definite weight tons of pulp were exported as compared
ideas in regard to German foreign trade in with 210,000 tons in 1913. The pulp market
1920. A recent number of the Frankfurter continues absolutely stagnant. To prevent
Zeitung quotes figures of the German Govern- accumulation of stocks, the Norwegian Mement's statistical office on the total value of chanical Wood Pulp Association approached
German exports, January through September, the Swedish producers with a proposal for a
1920. This total value amounts to 47,170,- joint stoppage of all mills for a period of five
000,000 marks, of which 20.9 per cent went
to the Netherlands, 9 per cent to Switzer- 1 Swedish price, trade, and financial statistics will be found on pp.
land, 5.7 per cent to Great Britian, 3.1 per 601, 603, 605, 607, 610 of this issue of the BULLETIN.
562
FEDERAL RESERVE BULLETIN.
weeks, to be followed by a 50 per cent curtailment in production, until the paper factories
again enter the market. Although the Norwegian grinding mills have already decided
upon a complete shutdown from April 9 to
May 15, no similar action has yet been taken
by the Swedish producers.
The strike in the chemical wood-pulp industry, which began early in February, was officially settled at the end of March by the workers
accepting a 15 per cent reduction in wages.
It is estimated by Affdrsvdrlden that the reduction in pulp output up to April 6, on account of the strike and the voluntary closing
of seven other plants lacking orders, amounted
to 77,000 tons of sulphite and 23,000 tons of
sulphate pulp, or together 100,000 tons.
A survey of 79 representative industrial
enterprises just completed by the Skandinaviska Kreditaktiebolaget discloses the fact that
only about one-fourth of the reporting establishments are operating at full capacity or at a
capacity reduced by 25 per cent or less.
Among those continuing full operations are
special enterprises whose products are protected entirely or in part by State monopoly.
One-fourth of the total returns show a reduction in operations of between 25 and 50 per
cent. Of the reporting mills, 28 per cent have
retrenched between 50 and 75 per cent of normal
capacity, while the operations of the remaining
24 per cent of the mills have been reduced
more than 75 per cent. In addition there is a
general paucity of orders among the reporting
industries. Only about 23 per cent have their
order lists filled for three months in advance,
while 40 per cent are on a hand-to-mouth basis
of operation, with orders booked ahead for a
maximum of only two weeks. Moreover, 40
per cent of the mills covered in the inquiry
report a reduction of working schedule to sixhour shifts and less.
According to the labor department the
Orebro shoe factories are running only 30 to 35
hours a week, while the mechanical and electrical shops have shortened their schedules 12
per cent.
Unemployment, as a result of the unprecedented industrial depression, has become
critical. An official labor census taken in
February by the Swedish labor exchange
registers between 55,000 and 60,000 unemployed. For labor as a whole there were 301
applications per 100 vacancies, as compared
with 133 in February, 1913. The increase
over the number for January of this year was
approximately 22 per cent. Only in domestic
service, agriculture, and the special municipal
and State enterprises of an emergency nature
was the labor demand greater or nearly equal
MAT,
1921.
to the supply. In industrial lines the depression was greatest in the metal and mechanical trades, which had no less than 6,998
applicants for every 100 occupational openings.
In the garment trades the unemployed numbered 1,426 per 100 vacancies. The building
trade was the only industrial line showing any
appreciable labor demand, the ratio being
about 250 applicants per 100 openings.
Among the organized trade-unions reporting
a total enrollment of 154,707 members, 20.2
per cent were unemployed on January 31, 1921.
The gravity of the unemployment problem
led the Government labor commission to submit
a bill to the Riksdag in March for an additional
grant of 11,000,000 kronor, to be increased
eventually to 28,000,000 kronor. The object
of this subvention is to provide special emergency employment on State railroads and public works and to alleviate suffering by means of
rent allowances and per diem subsidies to the
unemployed. It is expected that 10,000 of the
unemployed will be engaged for work on State
and municipal enterprises from April 1 to the
end of the year.
The depression is reflected in a falling off of
both railroad and maritime freight traffic. According to a recent report of the State railways,
freight traffic in January declined to 608,000
tons, which compares with a monthly freight
average in 1913 of 830,000 tons. Idle ocean
tonnage increased over 178 per cent in January.
On December 31, 1920, there were 63 idle
Swedish vessels, aggregating a total of 56,000
gross tons. At the end of January 151 vessels,
with a combined gross tonnage of 156;000 tons,
were laid up.
Exports in February were valued at 88,700,000
kronor and imports at 116,200,000 kronor, a decline from the preceding month of about 3 and
5 per cent, respectively. Compared with the
precipitous fall in January of 47 per cent for
exports and 38 per cent for imports, the February percentage of decline shows a slowing up
in the rate of recession.
The volume of wood-pulp exports declined in
February almost 50 per cent and that of unplaned boards, planks, etc., about 37 per cent.
Iron ore showed a quantitative gain of about 18
per cent.
Imports of coal, mineral oils, cotton, and
wheat still continue far below the amount imported in the corresponding month in 1913.
In March, the note circulation of the Riksbank reached approximately 717,000,000 kronor, an increase of 29,300,000 kronor, or slightly
more than 4 per cent compared with the February figure. Gold holdings amounted to
281,700,000 kronor, showing only a nominal
decline from the figures for the two preceding
MAT, 1921.
FEDERAL
months. As the special parliamentary enactment allowing the Kiksbank a temporary suspension of its gold redeeming obligation expired
on March 31, a new proposition was introduced
into the Riksdag for a continuation of the
measure until March 1,1922. The bill proposed
(1) a suspension for a fixed period of the Riksbank's obligation to purchase gold in bulk; (2)
a temporary discontinuation of the obligation
of the mint to pay gold coin for gold bars tendered; (3) formal authorization for the Riksbank to issue notes to an amount of 125,000,000 kronor above the amount stipulated by the
State banking laws.
563
1920 as compared with an unfavorable balance
of £149,000,000 during the preceding year.
With regard to short-term indebtedness, on
the other hand, conditions appear to be less
favorable than a year ago or two years ago.
Treasury bills outstanding at the end of 1920
were slightly less than at the end of 1919, but
the total floating debt was some £59,000,000
greater. This increase is in the form of temporary advances from the Bank of England
and from public departments, and as these
advances result in an increase in the balances
of the joint stock banks at the Bank of England, they may be used as the basis for further
credit expansion on the part of the private
banks. Comparing the situation at the end of
BRITISH FINANCE DURING THE WAR.1 1920 and the end of 1919, statistically, we find
that the foreign debt has been decreased
In the following article an effort has been £193,000,000, treasury bills outstanding £5,made to present statistically some of the 000,000, and the total debt £247,000,000.
salient facts regarding British war finance; Temporary advances have increased £63,the methods used by the treasury in raising 000,000.
Most of this article is concerned with the
money; the effect of these methods upon the
Bank of England and the joint-stock banks; borrowing methods of the British treasury, and
and the present financial situation of the the effect of these measures upon the Bank of
Government. The basis for the study is the England and the discount market. The taxstatistics published by the treasury each ation policy of the Government is of primary
quarter regarding Government receipts and importance in this connection not only as formexpenditures, those of the Bank of England ing the basis upon which estimates of borrowpublished each week showing the condition of ing are made, but also because receipts from
the bank, and similar statements of the joint- revenue are an important item in moneystock banks published semiannually. The market considerations, influencing treasury-bill
figures compiled by the Economist each week sales especially. For that reason a brief reshowing the outstanding debt have also been sume is given of the more important taxation
used. The literature on the subject has been provisions of the war period and since.
covered, but the conclusions reached are based
REVENUE FROM TAXATION.
in the main upon the statistical showing of the
different items.
Revenue from taxation has been constantly
increasing since the beginning of the war,
PRESENT CONDITIONS.
partly because of increasingly lieavy rates in
Before tracing in some detail financial con- the case of both direct and indirect taxes and
ditions in England during the war, it may be partly because of increases in the size of the
worth while to give a brief summary of present taxable bases. In the fall of 1914 income tax
conditions as regards public debt. By the end rates were increased and in 1915 practically
of 1920, England had made very considerable doubled. At the same time the duty on
strides away from war-time conditions. The excess-profits was imposed at the rate of 50 per
foreign debt had been reduced by £193,000,000, cent. In 1916 both of these taxes were again
leaving, however, £1,164,000,000 in foreign ob- increased and indirect tax rates also became
ligations still outstanding. These obligations much heavier. In 1917 the income tax was
are held for the most part in the United States, not changed, but the duty on excess war
approximately 75 per cent by the United profits became 80 per cent. No further
States Government. Of importance in this increase was made in the excess-profits duty
same connection is the fact that British for- during the war, and in 1919 it was cut to
eign trade position has improved in a remarka- 40 per cent. In 1920 it was again increased,
ble fashion, the board of trade estimating the however, this time to 60 per cent, but it is to
favorable balance (taking into account in- be entirely eliminated in the next fiscal year.
visible exports) as £165,000,000 for the year Revenue from these two types of taxes are
presented in the following table in their ratio
1
Prepared under the direction of K. H. Snodgrass, Division of Anal- to total revenue.
ysis and Research.
564
FEDERAL ftESEEVE BULLETIN.
Revenue from property and income tax and from excess
profits duty.
[Expressed in millions of pounds sterling.]
Year e n d i n g -
Mar. 31:
1915
1916 . . .
1917
1918
1919
1920
9 months ending
Dec. 31,1920
Property
and
income
Excess Per cent
Total
cent profits,
tax (in- Per
cluding of total. duty, etc. of total. revenue.
super
tax).
69
128
205
240
291
359
30
38
36
34
33
27
140
220
285
290
24
31
32
22
227
337
573
707
889
1,340
157
18
156
18
889
FINANCING IMPORTS.
Between July, 1914, and the spring of 1917,
when the United States entered the war, the
two leading problems in British finance were
(1) the financing of imports and (2) the raising
of domestic funds in the form of long and
short term obligations. As is well known, a
large proportion of war supplies, munitions,
food, and clothing were procured from the
United States and other foreign countries.
The problem of arranging for the payment of
these goods was, therefore, a matter oi primary
importance, especially in the case of England
because upon her devolved the responsibility of
providing credits for the other Allies as well,
rayment theoretically could be effected by
means of four main channels—(1) export of
goods, (2) export of gold, (3) sale of foreign
securities, (4) foreign loans—and as a matter
of fact all four of these channels were used.
During this period the British domestic industrial plant was so completely occupied with
war orders that there was very little capacity
for production of goods for export. For this
reason exports were materially reduced from
prewar levels, and this method of paying for
imports had to be very largely supplemented
by other means. The shipment of gold was
not feasible as an exclusive method of supplementing exports of goods, partly because the
reserve held in England would have been
insufficient for this purpose, partly because it
was needed as a banking reserve, and also
because of the dangers of transportation arising
from submarine attacks. It was therefore
necessary to make payments also by the sale
abroad of foreign securities or properties held
by British investors, and bv direct loans from
foreigners, collateraled by foreign securities or
else uncollateraled.
It was not necessary to resort to the sale of
foreign securities immediately upon the dec-
MAY, 1921.
laration of war, as unusually large balances
were held abroad by British houses at that
time. In fact, throughout the latter half of
1914 the American exchange was favorable to
England, and it was not until 1915 that sterling
began seriously to depreciate. Payments were
then made in the United States by the transfer
of gold held in Canada (approximately £18,000,000 were paid to the United States by
England during 1915), but purchases were of
such magnitude that this source soon became
insufficient, and by the end of 1915 it became
necessary for the British treasury definitely to
"peg" the rate of exchange. As early as July,
1915, the Bank of England had begun to purchase American securities and sell them in
New York with a view to supporting the
exchanges, and in December tne treasury
began to purchase and borrow securities for the
same purpose. In the meantime the AngloFrench loan had been floated in the fall of 1915
with a view to providing funds in the United
States for American purchases and transfers of
gold continued to be made. Throughout the
first half of 1916 the sterling rate was kept very
steady at about $4.76 by the sale of securities,
but by the middle of the year the supply of
foreign securities held by the treasury had been
heavily drawn upon. In order, therefore, to
force all those who held American securities to
place them at the disposal of the treasury, a special tax was placed on such securities, with the result that a considerable number of them which
formerly had been withheld came into the
possession of the Government. By the end of
1916 foreign securities to the value of £466,000,000 had been obtained by the British treasury, £118,000,000 by purchase and £348,000,000 on deposit. In order that payments might
be made in foreign countries other than the
United States, similar operations were undertaken with other foreign securities, but not on
the same scale as in the case of the United
States. The latter half of 1916 was a period
of distinct strain, the effort to keep the pound
at approximately $4.76 necessitating direct
loans in the United States uncollateraled by
American securities as well as collateraled
loans. With the entrance of the United States
into the war this phase of the problem was
somewhat relieved, since direct loans were
made by the United States Treasury to the
British Government.
With the end of the war Government purchases abroad ceased for the most part, and
consequently support of the exchanges was discontinued in March, 1919. By this time holdings of American securities by private investors
had been heavily depleted (the treasury had
purchased securities to the value of £178,-
MAt, 1921.
FEDERAL RESERVE BULLETIN.
000,000 for re-sale in New York); gold was
needed for the domestic reserve and its export
therefore prohibited; exports of merchandise
were still far below normal; and American shipping had curtailed the demand here for British
tonnage. As a natural result of these factors,
with the removal of the support furnished the
exchanges by Government loans, sterling depreciated heavily in the New York market.
Although the rate of exchange on New York is
far more favorable to England at the present
time than it has been during a large part of
1920, it still shows (in April, 1921) a depreciation of about 20 per cent from par.
As has been pointed out already, after the
entry of the United States into the war,
purchases here of munitions and other supplies were paid for by advances of the United
States Government to the various foreign
Governments. In the case of England receipts from foreign loans reached very large
totals, especially in 1917, 1918, and 1919.
Receipts from " other debt/ 7 the item in the
treasury statement referring to foreign loans,
amounted to the following between 1916 and
1920. Expenditures for the repayment of
"other debt' 7 are also included.
*' Other " or foreign debt.
Fiscal year ending—
Mar. 31:
1916.
1917
1918
1919
1920
| Created dur- Reduced during year.
I ing year.
£9,000.000
! 328,000,000
i 709,000.000
539,000; 000
196.000;000
£21,000,000
82,000,000
242,000,000
256,000,000
Source: Finance Accounts—Great Britain.
During the same time, as was mentioned
above, England was making large advances
both to her allies and to the dominions. By
1918 the dominions had begun to pay these
back, but in the case of the Allies the amount
repaid up to the present time is practically
negligible.
Advances to allies and dominions.
Allies.
£88,000,000
£288,000,000
59,000,000
539,000,000
505,000,000
47,000,000
236,000,000 1-23,000,000
163,000,000 1-52,000,000
August, 1914-Mar. 31,1916.
Fiscal year 1916-17
Fiscal year 1917-18
Fiscal year 1918-19
Fiscal year 1919-20
Dominions.
i Repayments.
565
LONG-TERM BORROWING.
Prior to the war Government funds had been
borrowed by three methods—the funded debt,
the fairly short-term exchequer bond, and the
treasury bill. The funded debt carried with
it no obligation for repayment—was in fact a
permanent annuity; the exchequer bond was
usually of 5 years7 duration, and treasury bills
ran from 3 to 12 months and were used to provide for temporary Government deficiencies.
Since 1914 the first form of borrowing mentioned above has been entirely eliminated; the
exchequer bond (both 3 and 5 year) has been
used and supplemented 7by the national war
bond of 5, 7, and 10 years duration. Treasury
bills have assumed a r6le of enormous importance, those outstanding at one time frequently
exceeding the billion pound mark, while before
the war they seldom exceeded £20,000,000.
Prior to the entrance of the United States
into the war three large war loans were placed,
the 3^ per cent loan of November, 1914, the
4J per cent of June, 1915, and the 4 per cent
and 5 per cent of January, 1917. The last
three of these were long-term bonds running
up to 25 and 30 years, the first ran from 11 to
14 years. In the intervals between the placing
of these long-term loans, relatively short-term
exchequer bonds were offered to the public
first in March, 1915, with the offering of 3 per
cent bonds maturing in 1920, then in December
of the same year when they were put on continuous day-to-day; sale until December, 1916,
when they were withdrawn to make room for
the placing of the big loan of January, 1917.
After this drive was over exchequer bonds
were again placed on the market but were
soon susperseded by the national war bond.
After the entrance of the United States into
the war, and since then, the British Government has continued to place its long-term war
bonds in the hands of private investors; but
returns to the Government from this source
have been in a diminishing proportion to total
receipts. At the same time the raising of
funds by the sale of the short-term treasury
bills and by advances on ways and means
has increased markedly. In October, 1917,
a new form of borrowing was introduced
with the day-to-day unlimited sale of the
first series of national war bonds. Four
series of these were placed between October,
1917, and June, 1919, running for 5, 7, and 10
years. Great care was taken to make these
bonds attractive to the investor; they might
be used in payment for excess profits duties,
death duties, etc.; and provisions were made
566
FEDERAL RESERVE BULLETIN-.
MAX,
1921.
QUARTERLYRECEIPTSBY BRITISH TREASURY,&I4-I920.
IN MILLIONS OFPOUTiDS.
800
soo
600
600
J
400
200
\
mat
0
400
200
/
- ^
FRC
0
EVtl sue
1000
KW
800
800
600
600
A
400
ZOO
/
/\
A\\
A
400
\A
7
200
FROM DOMESTIC LONG TERV UOAHS.
WAR LOANS.
1200
1200
WO
600
(
600
1
400
ZOO
r
—'
1 1914
N
/
w
yv
J
1000
\
800
f
600
r
rJ
V
400
V
200
V
FROM TREASURY DILLS FOR SUPPLY
FROM TEMPORARY ADVANCES TOTHE GOVERNMENT
1915
1916
1917
1918
1919
—
1920
MAY,
1921.
567
FEDERAL RESERVE BULLETIN.
for their conversion into earlier issues. These
bonds were on sale continuously from day to
day and altogether brought into the treasury
£1,669,000,000. In June, 1919, seven months
after the war was over, the funding and victory
loans were offered to the public on very attractive terms. The returns from these loans
were disappointing, however, totaling • only
£476,000,000.
Receipts from the sale of long-term, exchequer, and national war bonds during the
entire war period, and since, are summarized
in the following table, according to issues:
Receipts from loans.1
Issue.
3J per cent war loan, 1925-1928...
3 per cent exchequer bonds, 1920.
4 | per cent war loan, 1925-1945...
5 per cent exchequer bonds, 1920.
5 per cent exchequer bonds, 1919.
5 per cent exchequer bonds, 1921.
6 per cent exchequer bonds, 1920.
5f per cent exchequer bonds, 1925
5 per cent war loan, 1929-1947
4 per cent war loan, 1929-1942
5 per cent exchequer bonds, 1922.
National war bonds:
First series
Second series
Third series
Fourth series
4 per cent funding loan, 1960-1990
4 per cent victory bonds
5 per cent treasury bonds, 1935..
Date of issue.
Cash credited
to the
exchequer.
Nov., 1914
£332,000,000
48,000,000
Mar., 1915
592,000,000
June-July, 1915
238,000,000
Dec, 1915-June, 1916.
34,000,000
June, 1916-Sept., 1916
62,000,000
June, 1916-Oct., 1916.
161,000,000
Oct., 1916-Dec, 1916.
67,000,000
Mar., 1920
Jan.-Feb., 1917
• 941,000,000
do
Apr.-Sept., 1917
82,000,000
Oct., 1917-Mar., 1918..
Apr.-Sept., 1918
Oct., 1918-Jan., 1919..
Feb.-May, 1919
June-July, 1919
do
June, 1920
616,000,000
483,000,000
494,000,000
76,000,000
231,000,000
245,000,000
18,000,000
periods later they were sold in fixed amounts
at specified dates.
An examination of the charts will make clear
the function of the treasury bill in war-time
finance. When funds were being used for the
payment of taxes or in the purchase of longterm bonds, sales of treasury bills were apt to
fall off. If temporary funds were needed at
such periods in addition to those received from
taxes and bonds the Government was forced
to borrow from the bank or other departments. Thus in the first quarter of 1917
£782,000,000 were received by the treasury by
the sale of war bonds. At this time a large
portion of the treasury bills outstanding were
converted into long-term bonds, and the dayto-day sale of the bills was suspended, resulting in a great reduction in this item. In
order to obtain temporary funds it was necessary, therefore, to borrow heavily on ways and
means. This in spite of the fact that revenue
from taxes was coming in more rapidly than
at any other time of. the year.
Due to the fact that the funding and victory
loans of June, 1919, provided only £476,000,000
cash and that no alternative funding operation
has been put forward by the Government, the
quantity of treasury bills outstanding has not
been materially2 reduced at any time during the
last 18 months.
DISCOUNT RATES.
Temporary borrowing was of some importance in the early years of the war, but was
not utilized on anything like the same scale
at that time as in more recent years. The
total funds obtained from long-term borrowing
prior to the spring of 1917 were only a little
less than those obtained since. The reverse
is the case with the short-term Government
paper, of which there was issued between
four and five times as much after the entry
of the United States into the war as before.
Short-term borrowing in England takes two
forms—(1) the sale of treasury bills and (2)
direct advances to the
treasury on so-called
"ways and means/ 7 Advances are made
either by the Bank of England or by other
departments. These latter advances are reported unofficially as probably drawn largely
from the currency notes fund. Treasury bills
are mainly of 3 months' duration, although
they have been issued for 6, 9, and 12 months
also. During the greater part of the war
they were on continuous sale "over the
counter;" prior to April, 1915, and for brief
The placing of the various types of long and
short term loans had a very important effect
upon discount rates and banking conditions in
general. In fact, the rate on treasury bills
may be said to have been the controlling factor
in the money market after April, 1915. The
Bank of England rate was kept in harmony
with the treasury bill rate.
The first long-term loan was placed in November, 1914, at 3J per cent (issue price
95), when the plethora of money resulting
from the rediscounting of premoratorium bills
at the Bank of England began to be felt.
The Bank of England discount rate at that
time was 5 per cent, but for loans collateraled by these war bonds it was 1 per cent
lower. Banks are reported to have subscribed for approximately £100,000,000 of the
bonds. The second big loan, that of June,
1915, was placed at par, interest 4£ per cent,
subject to tax. This loan was placed just
after a period of very low rates, when effort
was being made to obtain control of the
market by the fixing of the treasury bill rate
at a high enough point to attract funds; 4^
per cent furnished, therefore, a very good offer.
1
Based on report of chief cashier's office, Bank of England, Dec. 15,
1919, and quarterly treasury statements since then.
2
See p. 554 for Government's offer of Apr. 25, for funding national
war bonds.
SHORT-TERM BORROWING.
568
FEDEKAL RESERVE BULLETIN.
Bank of England rate for loans collateraled by
this issue was one-half per cent below the
official rate. Of the £592,000,000 raised by this
loan £150,000,000-£200,000,000 are reported
to have been taken by the banks. At about
the time when the third big loan was placed in
January, 1917, the bank rate was lowered from
6 to 5^ per cent and the joint stock banks
made loans to subscribers at 5 per cent.
There were five changes in the rate of discount
at the Bank of England in the course of a few
weeks at the* time of the outbreak of war, three
changes between that time and the entrance
of the United States into the war, but no
changes whatever between April, 1917, and
November 1919. The traditional policy of
MAT,
1921.
August 4, and in September was authorized
to provide funds for acceptors to meet their
bills when they fell due. This privilege of
rediscount was very generally utilized by the
accepting houses, but the funds so obtained
were not reinvested in bills. At the same
time the immediate effect of the outbreak of
war was to slacken trade, and payment for
transactions between the Allies did not take
the form of commercial bills. Taken together, these factors made for a surplus of
funds and a dearth of bills, with the result
that rates on 3 months' bank bills were as
low as If per cent in February, 1915, while
the rate at the Bank of England, as mentioned above, was 5 per cent. In March,
RATEATBANK0FEN6IAMDAND ON THREE MONTHS TREASURYBILLS
——• Jtanfc of England, State.
————State OTV
JfareeMbntfisJreasury\SiZls.
8%
6%
7%
6%
SX
4%
3%
A
rz
w
y...
s
k
Ir
9
o
I
4%
1
1
3%
J
2%
1
1914
/%
I91S
1916
191?
the Bank of England of raising discount rates
to attract foreign funds was followed in the
earlier years of the war. For the same purpose,
beginning in late 1917, a higher rate was
paid by the Bank of England for foreign
balances than for domestic. During July,
1914, the bank rate rose from 3 to 4 to 8 per
cent. On August 1 it was raised to 10 per
cent, but was quickly reduced to 6 and then
to 5 per cent, at which point it remained
until July, 1916. Especially during the
early months of 1915 this rate was entirely
ineffective for the control of domestic credits
and it was not until treasury bills were sold
day to day that the period of abnormal ease
was terminated. In August, 1914, the Bank
of England had been authorized to discount
all domestic and foreign bills accepted before
6Z
SX
I
a%
1%
7%
1918
1919
I9Z0
O
1915, in an effort to correct this condition,
the Bank of England began borrowing funds
from the joint-stock banks (thus limiting
their supply for other use) and the treasury
isisued more bills than it actually needed
(in order to furnish a form of investment for
surplus funds).
Thus, rates were again pretty well under
control. The next change in the bank's discount rate was in July, 1916, when the rate
was raised to 6 per cent. At the same time
rates on treasury bills were advanced and the
Bank of England offered 5 per cent to the
clearing banks for their surplus balances. The
latter policy is of importance as it marks a departure from custom, and by this means large
additional funds were obtained for the use of
the Government. The rate at the Bank of
MAT,
1921.
FEDERAL RESERVE BULLETIN.
England was then lowered to 5J per cent,
coincident with the placing of the third big
war loan (and the sale of treasury bills was
suspended), and upon the entry of the United
States into the war was again lowered to 5 per
cent, at which point it remained until November, 1919. During this period every effort was
made to keep rates low in order that domestic
funds might be raised as cheaply as possible.
Treasury bills were placed at 4J per cent during part of this period and later at 3 \ per cent,
and the rate on bank deposits was lowered to
3 per cent. Meanwhile (end of 1917) a preferential rate had been placed on foreign balances deposited with the Bank of England.
In November, 1919, following an increase in
the rate on treasury bills from Z\ to 4£ per
cent in the preceding month, the bank rate was
raised to 6 per cent and treasury bills to 5^
per cent. At about the same time the preferential rate on foreign balances was removed.
This may be said to mark the close of the
period of preferential rates to the Government. Since then bank rate has been raised
once and the treasury bill rate twice, so that
they now stand at 7 per cent and 6J per cent,
respectively.1
569
of gold was not considerable, and in the middle of 1918, the bank began to accumulate
gold, first, from the Cape, later from the jointstock banks and the Scottish banks and recently in small measure from abroad.
In" spite of the fact that the present gold
reserve of the bank is over three times as
large as that of July, 1914, the ratio of reserves
to liabilities is far less. This is due to the
very great expansion which has occurred in
the private deposits with the bank. The chart
on page 570 shows in some detail the movement of "other deposits" and "other securities" of the Bank of England since July, 1914,
as well as the fluctuations in " Government
securities" and "public deposits."
"Other deposits" are perhaps the best indication of the size of the balances carried by
the joint-stock banks at the Bank of England.
In normal times an increase in this item indicates ease in the money market, but in times
of crisis it is more apt to mean that the jointstock banks have called in their outside loans
and thus built up their balances at the Bank
of England. The item "other securities"
should move in more or less the same fashion
as "other deposits." The regular periodic
fluctuations which are to be expected in these
EFFECT OF WAR FINANCE ON THE BANK OF items are in the main an increase at the end
of each quarter when Government dividends
ENGLAND.
are disbursed, a decrease during the first three
months
of the year when Government receipts
Discussion up to the present point has been
for the most part concerned with the opera- are heaviest, an increase at the end of the
tions of the treasury. These operations are, year and the half-year providing for settlehowever, inextricably bound up with the ments at these dates.
During the war these normal fluctuations
operations of the Bank of England, which in
turn are closely related to those of the joint- were to some extent concealed by other more
stock banks. Since the policy of the treasury potent factors, but as a rule their influence can
was, however, the decisive factor in the situa- be traced. In general, also, the two items
tion during the war, and in a large measure ("other deposits" and "other securities")
continues to be so, there is logic in giving a fluctuate similarly, although the reverse was
fairly complete resum6 of treasury activities strikingly the case in March, 1915, and again
in January, 1917. The abnormal amount of
before approaching those of the bank
In ordinary times the direct concern of the "other securities" in 1914 and the first half of
Bank of England is the protection of its gold 1915 is accounted for by the fact, already
reserve, since this fund serves as a reserve for mentioned, that the Bank of England was
the entire English banking system. In 1914 forced to absorb enormous quantities of bills
H was not difficult to attract gold from which could not otherwise oe liquidated imabroad, because England was still the creditor mediately following the outbreak of war. At
of most of the nations of the world, but in the same time "other deposits" were being'
1915 the problem of protecting the gold re- lowered from the high level of the second ha
serve became more and more difficult because of 1914 as the financial strain of the period was
of the depreciation in exchange which accom- relieved and ordinary business requirements
panied the large purchases of war materials were being met. During the second half of
in foreign countries. In the one year the 1915 the abnormal supply of bills was elimiBank of England lost £18,000,000 in coin and nated; and, judging from the chart, approxibullion. During 1916 and 1917 the movement mately normal war conditions obtained by the
first of 1916. In January, 1917, however, all
* On March 11 the rate on treasury bills was lowered to 6 per cent and financial arrangements were again set askew by
on April 27 to 5f per cent. The discount rate at the Bank of England
the floating of a great war loan. Sales of
was lowered from 7 to 6§ per cent on April 28.
570
FEDERAL RESERVE BULLETIN.
MAT,
1921.
DEPOSITS AND SECURITIES AT BANK OFENGLAND,
ALSO BAFfKAND CURRENCY NOTES, I9I4-J920.
IN MILLIONS OF POUNDS.
200
ZOO
ISO
ISO
100
SO
-PUBLIC DEPOSITS
GOVERNMENT SECURITIES'
\200
aoo
/so
too
so
'OTHER'DEPOSITS
'OTHER" SECURITIES >
400
4
3SO
300
y
250
200
300
/
ZSO
ZOO
IT
ISO
/SO
r
•i
100
SO
•
—
-
1
—
•II1
•
*
>
100
so
I*1
o
COIN AND BULLION HELP Br BANK OF ENGLAND —
1914
1915
1916
1917
1918
1919
1920
MAY,
1921.
FEDERAL RESERVE BULLETIN.
571
treasury bills were suspended at that time, lately their Government holdings seem to have
thus releasing the funds normally invested been mainly in the form of treasury bills. In
there for investment in the war loan and com- the intervening years because of the interest
mercial bills. Deposits of the joint-stock paid on deposits the banks were encourged to
banks at the Bank of England were greatly place their surplus balances with the Bank of
increased
but "other securities" were re- England and to give considerable aid to
duced.1 Between 1917 and 1919 there were private investors rather than to subscribe
no extreme fluctuations in these items, but in themselves to large blocks of Government
1920 the month-to-month changes have been securities.
very large, end-of-year and half-year payments
The deposit accounts of the joint-stock banks
apparently causing more than usual disloca- increased most between 1916 and 1919; the
tion.
rate of increase during the earlier years of the
"Public securities" presumably include the war and in 1920 was far less rapid.
bank's holdings of Government bonds, treasury
Five great joint-stock banks.
bills, and advances on ways and means, while
the "public deposits" account, as the name
[In thousands of pounds sterling.]
implies, is the current account of the treasury.
In normal times the latter account may be
Cash i n British
hand and Govern- Current,
expected to fluctuate inversely to the private
deposit,
ment
with the
E n d of—
other
deposit account, since when funds are disbursed
Bank of securi- and
accounts.
ties.
England.
by the Government they eventually reach the
banks and are thus reflected in the private
52,544
626,37b
137, 750
deposit account. During the war, however, 19J4
1915
686,473
136,049 184,475
1916
198,376
819, 883
195,484
this relationship is not always apparent. The 1917
967, 981
183,159 216,606
increase in "Government securities" held by 1918 . .
237, 500 236, 042 1,304,811
1919
291,
669
1,548,813
285,
481
the bank in 1915 was due apparently to the 1.920
274,137 261, 732 1,628, 375
placing of treasury bills there. These must
have been repaid by the fall of the year and NOTE.—For table showing all items, see FEDERAL RESERVE BULLETIN,
since then, it would seem, have not been placed March, 1921, p. 295.
there in large blocks. The phenomenal increase in this item in January, 1917, wasINCREASE IN NOTE CIRCULATION DURING AND
SINCE THE WAR.
probably due to temporary borrowing by the
treasury on ways and means. As was the
The increase in the note circulation which
case with "other securities," between that
time and until well into 1919 there were no war conditions demanded was provided for in
excessive fluctuations in this item. In the last a unique fashion in England. Instead of in18 months, however, the fluctuations have creasing the circulation of bank notes, as was
been very great, probably because of temporary done in most countries, a new form of currency
borrowing on ways and means. During 1915 was issued by the treasury. These are known
notes, or more popularly as " Bradthe Government had large surplus funds on as currency
7
deposit at the bank, but since that time the bury's/ and were authorized by an act of Audeposits have been steadily on the decline and gust, 1914, to provide for the exceptional deat present are not much larger than before the mands occasioned by the outbreak of the war.
According to the regulations under the act,
war.
Information regarding the operations of the they were not to exceed in the case of any bank
joint-stock banks is too scanty to furnish a 20 per cent of its deposit and current accounts.
basis for a thoroughgoing study of the effect As the war progressed and deposits of the jointof war finance upon them. It is clear, how- stock banks were rapidly enlarged, the issue of
ever, from the semiannual statements issued currency notes likewise increased. According
by them, that their holdings of Government to the report of the Cunliffe Committee the
securities increased far more rapidly between banks originally received the notes as advances
1914 and 1916 and again in 1919 and 1920 from the Government on which they paid inthan in the intervening years. During the terest, but later they obtained them by transearly years of the war the banks apparently ferring portions of their balances at the Bank
took large blocks of long-term war bonds, while of England to the currency notes account.
These balances were then in turn borrowed by
1
The London Economist comments on this divergent movement of the Government and Government securities
"other deposits" and "other securities" in the following fashion: substituted for them.
"* * * it may be possible to trace in this movement the effect of
the Bank of England's borrowing from other bankers, though it was
This method was used to provide the necesmore usual in old times for the bank to pledge Government securities
sary additional currency in preference to the
when it borrowed."
572
FEDERAL RESERVE BULLETIN".
amendment of the bank act of 1844, which
provided that notes issued by the Bank of
England must be guaranteed pound for pound
by gold. With the increase in the gold holdings
of the bank, it has been possible to enlarge tne
bank-note issue appreciably, but not at the rate
at which currency notes have been increased.
With the close of the war it was generally conceded that the currency note issue should be
reduced as rapidly as conditions would allow.
Accordingly, the committee on currency and
the foreign exchanges in its interim report,
published toward the end of 1918, recommended that during the years following the war
the maximum fiduciary issue of currency notes
in any year should become the legal maximum
MAY,
1921.
issue for the following year. This recommendation was not put into effect as regards the
issue of 1919, but was applied in 1920, the
maximum issue of 1919 of £320,600,000 becoming the legal maximum for 1920. During the
latter year the maximum issue reached
£317,600,000, which thus became the legal
maximum for 1921.
At the end of December, 1920, the currency
notes redemption account consisted of £28,500,000 gold, £19,450,000 bank notes, and the
rest, £356,504,000, Government securities.
During 1920 there ha^ been a uniform policy
of transferring bank notes to the currency
notes account when the latter were approaching dangerously close to the legal limit.
RECENT ECONOMIC DEVELOPMENTS IN SOUTH AMERICA.
PRICE DECLINES.
South America suffered severely in 1920 from
the decline in the prices of raw materials and
from the decreased demand for these materials.
As has been explained in special studies of
economic and financial conditions in the
leading South American countries, each one of
them is dependent to a large extent on the
export of a few commodities to the production
of which1 the country is particularly well
adapted. These countries are in the stage of
economic development when they depend
on imports of foreign capital for the expansion
of domestic industry, and on the excess of
exports over imports for interest and amortization payments on these foreign investments.
i For Argentina, see Federal Reserve Bulletin, 1920, pp. 592-600; for
Brazil, pp. 813-824; for Chile, pp. 1052-1061.
It is therefore highly important for these
countries to have a favorable balance of merchandise trade. When the war broke out,
the inflow of foreign capital ceased, and the
South American countries were obliged to
adjust their economic life to this new condition. This adjustment was made easier by the
fact that the demand for their leading products after the first shock of war became unprecedentedly large and prices, except for conee,
were high. It was possible, therefore, for
these countries to have large favorable trade
balances and to take steps in the direction
of building up more diversified industries and
more modern systems of taxation. These
developments suffered a severe setback during
the past year. A table inserted at this point
shows prices of leading commodities exported
from each of the three principal South American countries in 1919 and 1920:
MAY,
1921.
573
FEDERAL RESERVE BULLETIN.
WHOLESALE PRICES IN THE UNITED STATES OF PRINCIPAL COMMODITIES PROMINENT IN THE EXPORT TRADE OF
ARGENTINA, BRAZIL AND CHILE, 1919-1920.1
Argentina.
Corn,
No. 3,
Chicago.
1919.
January
February
March
April
May
June
July
August
September
October
November
December
1920.
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
Ohio, Beef, carHides,
Wheat, Wool,
grades, cass, good packers',
Coffee,
No. 2, red H~
scoured,
native
heavy
na- Rio, No. 7,
winter,
New
York.
steers,
in
eastern
tive
steers,
Chicago.
Chicago.
markets.
Chicago.
$2.3788
2.3450
2.3575
2. 6300
2. 7800
2.3613
2.2580
2.2394
2.2385
2.2394
2.2881
2. 4490
$1.1200
1.0909
1.2000
1.0909
1.0727
1.1818
1.2364
1. 2364
1.2182
1. 2634
1.2545
1.2545
$0.2450
.2450
.2450
2450
.2430
.2025
. 2075
.2350
.2275
.2290
.2350
.2350
.4750
.. 4125
.5515
.. 6913
. 9825
.. 8390
.5388
.5310
1.2938
.8778
.8003
.7341
2.6338
2.4900
2.5000
2. 7725
2. 9750
2.8950
2.8050
2.4735
2.4919
2.2047
2.0570
2.0125
1.2364
1.2364
1.2364
1.2000
1.1636
1.0000
.9091
.8727
.8364
.7273
.6909
.5455
.2320
.2125
.2050
.2090
.1950
.2225
.2550
.2550
.2600
.2520
.2400
.2220
.6553
.6350
.6180
1.9613
1.9194
1.6798
.1738
.1600
.1625
$1.3750
1.2763
1.4588
1.5955
1.7613
1. 7563
1.9075
1.9213
1.5410
1.3888
1.4875
1.4485
Chile
Brazil.
Rubber,
Para
Island,
fine.
Low.
$4.425
4.425
4.075
4.075
4.075
4.075
2.90
2.90
2.90
2.90
2.90
2.90
High.
$4'. 45
4.45
4.45
4.075
4.075
4.075
4.075
2.90
2.90
2.90
2.90
3.00
.4625
.4322
.4120
.4113
. 4038
.3850
. 3534
.3030
.2531
.2169
.1920
.1800
3.00
3.40
3.70
3.85
3.85
3.85
3.85
3.85
3.65
3.15
2.90
2.75
3.05
3.70
3.85
3.85
3.85
3.85
3.85
3.85
3.85
3.26
3.26
3.00
.1931
.1906
.1858
.1919
.1906
.1900
.1900
.1900
.1869
. 1675
. 1455
.1369
.1731
.1681
.1800
2.70
2.80
2.60
2.85
2.85
2.85
.128?
.1288
.1223
$0.1547
.1544
.1602
.1695
.1931
.2114
.2303
. 2150
.1663
.1650
. 1697
.1518
$0.5250
.4913
.4819
. 4775
.4738
.4744
.4750
.4750
.4795
.4825
.4825
.4785
.4000
. 4025
.3640
.3613
.3538
.3410
. 2944
.2850
.2840
. 2550
.2325
.1900
.1628
. 1478
. 1500
.1514
.1559
.1498
. 1306
.0936
.0819
.0759
. 0746
.0656
.1675
.1362
. 1150
.0669
.0672
.0639
$0.2800
.2800
.2763
.2950
. 3513
. 4075
.4860
. 5200
.4638
.4100
Copper,
ingot,
electrolytic,
New York.
Nitrates.
$0.2038
.1731
.1509
.1530
.1600
.1756
.2150
.2281
.2220
.2172
.2038
.1873
1921.
. 5455
. 5455
.5273
i The figures in the above table for all commodities except nitrates are furnished by the Bureau of Labor Statistics and are average prices for
the month. The nitrate figures were furnished by the Chilean Nitrate Commission.
For the commodities constituting the bulk
of Argentina's exports, the following price
reductions may be noted. Wheat fell from a
maximum price of $2,975 per bushel in May,
1920, to $1.6798 in March, 1921; wool from a
maximum of $1.2634 per pound in October,
1919, to $0.5273 in March, 1921. For Brazil, a
similar trend of prices may be seen. Coffee
reached its maximum of $0.2303 in July, 1919,
and its minimum of $0.0639 in March, 1921.
Rubber fell from $0,525 in January, 1919, to
$0.1681 in February, 1921. In the case of
Chile, nitrates held a maximum of $4.45 during
the first three months of 1919, and a minimum
of $2.60 in March, 1921.
FOREIGN TRADE AND FOREIGN EXCHANGE.
Not only did the prices of these articles
suffer severe drops, but it became difficult to
dispose of many of them at any price. The
purchasing power of European countries, which
had been the principal takers of South American exports, was low, and in many cases goods
that had formerly gone to the European markets were sent to the United States, where a
large accumulation of raw materials and a consequent demoralization of the markets occurred. A table is here introduced showing
the imports into and exports from Argentina,
Brazil, and Chile for the years 1913 to 1920.
574
FEDERAL RESERVE BULLETIN.
MAY, 1921.
TOTAL IMPORTS AND EXPORTS OF ARGENTINA, BRAZIL, AND CHILE FOR THE YEARS 1913-1920.
Argentina.
Balance of
exports
over
imports.
Imports.
In thousand s of gold pesos.
496,227
22,929
519,156
322,530
80,602
403,132
305,489
276,690
582,179
368,131
206,869
573,000
380,321
169,849
550,170
500,603
300,863
S01,466
655,772
375,193
030,965
854,100
152,700
006,800
26,000
90,600
64,600
43,100
96,500
53,400
47,900
121,100
73,200
36,200
109,700
73,500
35,400
99,000
63,600
9,900
82,100
72,200
19,600
100,500
80,900
1,400
78, 400
77,000
-31,200
56,900
88,100
- 3,400
63,600
67,000
-21,800
48,600
70,400
-10,400
59, 800
70,200
— •"1,007,495
561,853
582,996
810, 759
837,738
989,405
1,334,258
2,078,046
89,338
118,087
101,671
114,550
162,963
141,733
173,815
220,408
223,746
273,497
227,214
231,024
Imports.
1913
1914
1915
1916
1917
1918
1919
1920
January...
February..
March
April
May
June
July
August
September
October...
November.
December.
Brazil.
Exports.
Exports.
Chile.
Balance of
exports
over
imports.
Imports.
In thousands of paper milreis.
172,731
750,980
1,022,634
1,136, 888
1,192,175
1,137,100
2,178,719
1,752,247
167,706
145,353
191,703
157,615
146,978
146,468
121,673
133,679
140,173
149,051
136,515
115,333
Exports.
In thousands
-
34,764
189,127
439,633
326,129
354,437
147,695
844,461
-325,799
78,368
27,266
90,032
43,065
- 15,985
4,735
- 52,142
- 86,729
- 83,573
-124,446
- 90,699
-115,691
329,518
269,757
153,212
222,521
355,077
436,074
401,324
350,000
Balance of
exports
over
imports.
of gold pesos.
396,310
299,675
327,479
513,585
712,289
799,625
316,977
765,000
66,792
29,918
174,267
291,064
357,212
363,551
- 84,347
415,000
decrease in Chile's imports, and still more to
the fact that the value of the exports of nitrate
for the entire year 1920 was practically double
that for 1919. Our trade with South and Central America is shown by months in the table
below. It brings out the fact that these countries have all materially increased their imports
from the United States.
It will be noted that the favorable balance
for Argentina was much smaller in 1920 than
in 1919, and that the last four months of 1920
showed excess imports; for Brazil a substantial excess of imports for the entire year is
reported, while in the case of Chile the figures
for the year show a comparatively large favorable balance. This is due partly to the
UNITED STATES IMPORTS FROM AND EXPORTS TO PRINCIPAL SOUTH AMERICAN COUNTRIES.
[In thousands of dollars.]
Argentine.
1919.
January
February
March
April
May
June
July
August
September
October
November
December
Total
1920.
January
February
March
April
May
June
July
August
September
October
November
December
Total
1921.
Jauary
February
March
Brazil.
Chile.
All other countries of South
America.
Total South
America.
Central American countries.
Total Central
and South
American
countries.
Imports.
Imports.
Exports.
Imports.
Exports.
Imports.
Exports.
Imports.
Exports.
Imports.
Exports.
Imports.
8,772
6,398
4,448
2,163
17,012
19,779
12,271
22, 861
38, 479
23, 773
26,189
17,014
22,253
11,367
11, 837
5,286
5,674
20,430
9,907
17, 283
13, 715
13, 874
13,281
10,993
6,699
8,059
23,198
17, 598
16, 590
10,426
23,346
23,190
31,676
24,172
30, 708
17,911
11, 798 10,491
14,439 5,942
9,919 12, 518
9,254 4,263
12,140 4,714
8,967 4,542
7,055 4,388
9,995 4,336
5,572 7,729
12,279 5,794
7,499 10, 549
5,780 7,202
5,680
6,817
4,173
7,972
4,416
4,877
2,335
4,066
3,166
3,449
3,351
3,071
10,057
12, 263
14,033
15, 566
12, 868
17,415
16,298
14, 823
16,202
14, 524
14,472
13,807
12,296
9,861
8,051
9,437
10,207
9,522
7,562
10,460
9,712
9,685
9,928
11,308
36,019
32,662
54,197
39, 590
51,184
52,162
56,303
65,210
94,086
68,263
81,916
55,934
52,027
42,484
33,980
31,949
32,437
43,796
26,859
41,804
32,165
39,287
34,059
31,152
3,417
4,416
4,498
3,338
4,217
4,413
5,681
3,319
2,937
3,093
1,627
2,194
3,373 172,328 118,029 687,526 441,999
43,150
199,159 155,900 233,571 114,697 82,468
21,344
15,104
19,190
21, 581
23,104
16, 853
18,502
16,734
22, 883
14,971
8,098
9,454
14,008
11,612
16, 927
14, 869
17, 094
13, 587
15,923
16, 817
21, 782
21, 858
26,045
23,207
25,069
17, 328
22, 778
28, 857
10,490
25, 719
23,123
22,013
15,637
14,498
12,673
9, 539
10, 583
10,462
12, 506
10,080
13, 545
9,683
8,741
14,520
15, 017
15,144
17,278
19,233
6,705
12,678
11, 530
7,983
14, 860
19,083
7, 524
8,430
9,405
7,807
6,777
7,830
2,610
3,708
4,725
4,832
4,240
4,774
5,235
3,305
3,878
4,868
5,808
7,363
24, 821
22, 797
19, 512
17, 593
14,950
19, 512
23,572
16,124
14, 575
10,093
12, 558
9,116
12,426
14,678
19,836
17,282
23, 341
18,261
14,970
12,001
13, 770
17, 958
16,155
17,492
77,939
67,907
73,010
76,014
63,404
81,167
72,721
63,301
62, 500
47, 369
40,106
35,939
39,627
40,460
53,994
47,063
58,220
46,305
44,869
46,643
54,447
59, 828
65,286
67,295
4,029
4,771
Exports.
4,085 39,436
37,078
3,429 58,695
4,996 42,928
4,303 55,401
4,973 56,575
3,720 61,984
3,835 68,529
5,663 97,023
4,624 71,356
4,808 83, 543
6,316 58,128
Exports.
56,112
47, 473
37,409
36,945
36, 740
30, 579
45,639
37,828
43,911
38, 867
37,468
55,741 730,676 497,740
7,310
6,809
7,421
7,816
7,395
7,504
6,403
6,042
7,237
6,974
7,805
7,775
81,968
72,678
81,901
83,905
70,714
88,616
81,490
71,067
65,868
49,812
42,548
37, 749
46,937
47,269
61,415
54, 879
65,615
53, 809
51,272
52,685
61,684
66,802
73,091
75,070
207,818 213,729 227,724 156,792 120,612 55,346 205,223 198,170 j761,377 624,037 66,939 86,491 828,316
710,528
5,730 24, 231
5,316 16,441
8,413 12,168
9,713
9,289
9,463
14,128
6,240
6,133
8,042
4,903
3,739
6,885 7,263 16,190 30, 748 61,434
4, 552 7,001 11,571 26, 509 38, 804
2, 954 11,070 7,368 32,685 28,623
7,891
7,310
7,449
8,769
7,766
3,368
2,443
2,442
1,810
1,667
2,353
3,679
8,733 32,415
6,927 28,862
4,644 36,364
70,167
45,731
33,267
MAT,
1&21.
575
FEDERAL RESERVE BULLETIN.
The United States dollar, which in Argentina tine exchange suffered no great decline, but
was worth only 1.016 pesos as late as February, when the fund was exhausted the peso began
1920, rose to 1.305 pesos in March, 1921, as to drop very rapidly in New York, and the
against 1.0365 par value. (See table below.) dollar rose correspondingly in Buenos Aires.
At the beginning of 1920 the Argentine Gov- Thus, during the first five months of 1920, while
ernment had with the Federal Reserve Banks a the fund was in use, the dollar rose only from
credit of about 79,000,000 pesos, established 1.018 pesos to 1.038 pesos. Between May 31
during the war when the gold embargo pre- and October 31, however, the gold in the fund
vented gold exports from the United States, held with the Federal Reserve Banks was used
and for a considerable time this credit was used up. Thereupon the dollar rose rapidly to the
to pay for Argentina's obligations in the United end of the year, when it stood at 1.305 pesos,
States. The method of operation was that the highest point being reached on January 3,
Argentine importers who wished to pay for 1921, when it stood at 1.32 pesos. At the
goods in New York, deposited gold or its same time, the stock of gold held by the banks
equivalent with the conversion office in Buenos in Buenos Aires was reduced from $114,014,000
Aires, and equivalent amounts were released to $46,179,000, while the gold in the Caja de
for payment to American creditors in New Conversion increased correspondingly from
York. So long as this fund held out, Argen- $399,421,000 to $466,477,000.
MONTHLY RANGE OF EXCHANGE RATES ON ENGLAND AND THE UNITED STATES AT BUENOS AIRES, RIO DE JANEIRO
AND VALPARAISO.
Valparaiso.
Rio de Janeiro.
England.
United States.
Low.
1920.
1 dollar.
1.016
1.009
1.014
1. 015
1. 036
1. 039
1. 052
1.130
1.155
1.185
1.283
1.245
January
February
March
April
May
June
July
August
September.
October...
November.
December
1 milreis.
18H
18.00
15&
14*
i
12*
lift
High.
Reis for 1 dollar.
3.780
3.637
3.978
3.909
3.915
3.740
3.900
3.790
4.000
3.860
4.300
4.030
4.680
4.343
5. 073
4.610
5.160
5. 725
5. 016
6.040
5. 829
6. 504
6.360
7.140
7.200
6.780
6.900
1
Exchange at par, 47.58.
Low.
2
England.
High.
United States.
Low.
Pence for 1 peso.
12
Tf
14«
13*
11|
HA
lOf
11.00
6.688
6.300
6. 386
12A
12-&
12A
111
ion
10A
9.00
High.
Low.
Chilean pesos for
1 dollar.
4.73f
5. 27$
4.73
4.94
4. 941
5.29i
5. 50*
5*. 25*
5.56|
4.99f
5.94
4.89f
5.881
5.63 J
6.42
5.73£
6.76^6.55f
7.37i
7.12
7.53^
7.12
7.44
7.44$
7.05f
7.16f
6.95|
6.82J
Exchange at par, 103.648.
The table above shows fluctuations of ex- of this, the currency is subject to violent flucchange rates on England and on the United tuations, which may vary 2 or 3 per cent from
States for the three South American countries. day to day and from 5 to 15 per cent in the
In Brazil, as a consequence of the unfavor- course of a single month. These fluctuations
able trade balance, the dollar rose from a low in value give rise to extensive speculation,
of 3.637 milreis in January, 1920, to a high of which in turn tends to aggravate still further
6.9 milreis in March, 1921. In Chile the dollar the exchange situation. The nitrate situation,
rose from 4.63| pesos in April, 1920, to 7.53^ which is the principal factor in Chile's foreign
pesos in December of the same year. In Chile trade and in the exchange market, looked very
the exchange situation is peculiar. There is a bright during the first half of 1920, before the
large gold reserve with which to redeem the world-wide depression began. It seemed probnotes in circulation, but the date for thus able that after five years of reduced food proredeeming 2 them has been again and again duction all countries, especially those of Eupostponed. Thus they are in theory redeem- rope, would demand large quantities of ferable in gold; in fact, irredeemable. Because tilizer. The nitrate consumption bade fair to
equal that of 1913; large quantities were be2 For a discussion of this matter see FEDERAL RESERVE BULLETIN,
ing
sold forward, and the best nitrate authorOctober, 1920, p. 1053.
FEDERAL RESERVE
ities were urging increased production. In August, however, came the reaction, due chiefly
to the fact that Europe was having ever
greater difficulty in paying for her imports.
Also the decrease in the demand for nitrates
in the manufacture of ammunition, together
with the development of the production of
ammonia from the air by Germany, continued, as in 1919, to exert a further depressing influence on the nitrate trade. The nitrate
market declined rapidly; the price fell below
the level at which the Nitrate Association
found it profitable to sell; production fell off,
resulting in widespread unemployment, and
toward the end of the year the country was
in a grave financial crisis.
Fluctuations in the value of the pound sterling in the South American countries were
similar to those in the dollar, though owing to
the depreciation of the pound its rise in terms
of South American currency was not so great
as the rise of the dollar. Other exchange
quotations reflect the movement of these two
leading currencies, the variations being due to
causes on which South American conditions
exerted but little influence.
A serious phase of the situation was that
large orders for imports of manufactured goods,
mostly from the United States, were placed by
South American concerns when times were
prosperous and before the decline in prices
occurred. Some of these goods were late in
delivery, because of the insufficient output and
the scarcity of shipping space, and thus arrived
after the selling price had fallen below the contract buying price. There were some farsighted merchants who deferred placing their
orders until after the fall in prices and yet
received their goods as soon as, or even sooner
than, did the merchants who had placed their
contracts at the higher prices. The latter,
realizing that their sales would thus result in
great loss, canceled their orders, refused to
receive the goods, or asked for repeated extensions of time on their payments. As a result
of this, goods accumulated at all the ports of
entry. In some cases the merchandise was
piled up on docks, piers, or in sheds, municipal
theaters, and other public buildings. Thus the
delays in delivery, the fall in prices, the increasingly unfavorable rate of exchange, and
the competition of those merchants who contracted at lower prices created great overstocking of goods and financial difficulties.
Widespread discussion of moratoria resulted
from these conditions, and in some of the
smaller countries legal or extralegal moratoria
were actually declared, although no such action
was taken in Argentina, Brazil, or Chile.
MAT,
1921.
CREDITS GRANTED AND RECEIVED.
In order to encourage the export trade
South American countries removed many of the
restrictions on exports which had been imposed
at the time when excessive exports of raw
materials resulted in undue advances in prices
in the home markets. Furthermore, several
of the countries arranged to grant credits to
some of the European countries for the purpose
of encouraging exports. Thus Italy was
granted a credit of 100,000,000 pesos by
Argentina, while Belgium was granted a credit
of 25,000,000 milreis by Brazil and one of
25,000,000 pesos by Chile. All of these credits
were to be utilized for payment of goods purchased in the creditor countries.
On the other hand, some of the South American countries obtained foreign credits for the
purpose of improving their exchange position.
Brazil, or rather the State of Sao raulo, succeeded in floating a £5,000,000 loan, of which
£2,000,000 were taken up in New York,
£2,000,000 in London, and £1,000,000 in the
Netherlands. The London bond issue matures in 30 years, the New York and Amsterdam issues in 15 years. The bonds are secured
by the proceeds of a special surtax on the
export of coffee grown or produced in the State
of Sao Paulo. A $24,000,000 loan to Chile
was recently (Feb. 16) floated in New York,
and has had a steadying effect on Chilean exchange. Argentina had a $50,000,000 loan
maturing in New York last fall, and not being
able to renew it there on satisfactory terms,
made arrangements by which England paid
the American loan and received credit for it
on her 100,000,000-peso loan contracted in
1918 and due on January 15 of this year. This
British loan has since been liquidated.
REMEDIAL MEASURES.
Various methods of remedying the situation
by legislative or administrative enactment
were undertaken by the South American countries. In Argentina the establishment of a
central bank of issue and rediscount has been
advocated. No final action, however, has
been taken up to date.
The question of releasing from the Argentine
conversion office the gold which has been impounded there since the beginning of the war,
was seriously agitated, the argument being
that it would improve the exchange rate and
that the flow of gold would discontinue as soon
as the exchange rate was rectified, while so
long as the gold embargo continued the peso
was bound to remain at a discount. The
MAT,
1921.
Argentine authorities, however, were fearful
that the exports of gold would result in a complete exhaustion of the gold reserves and a
consequent more serious depreciation of the
currency. Their argument was that, so long
as they were not able to receive cash payment
for their exports to Europe, they would not be
able to use European credits for payment of
American obligations and the unfavorable
balance as regards the United States would
result in serious inroads on their gold. Up to
the present time the gold embargo in Argentina
has been maintained, although recent dispatches indicate that efforts to release
100,000,000 gold pesos to stabilize exchange
are being made.
Ernesto Tornquist, the leading private
banker of Argentina, whose father was instrumental in the establishment of the conversion
office and in the stabilization of the peso at 44
centavos gold, in a recent interview discussed
the Argentine situation and proposed certain
remedies. He believes that the financial system of Argentina, as much as world conditions,
is responsible for the prevailing business depression. He suggests that the Banco de la Nacion
shall reduce its interest rate on tim.e deposits,
limit its foreign exchange activities, and reorganize its discount business somewhat on the
model of the Federal Reserve System in the
United States. He further recommends the
establishment of a central bank of issue and
rediscount, and the gradual conversion of the
Banco de la Nacion into an agricultural and
live-stock bank to extend long-term loans to
these industries. He would have the Government extend loans to foreign buyers of national
products like wool, hides, meats, and cereals.
He also advises authorizing the withdrawal of
gold from the Caja de Conversion to a limited
amount, settled in advance, and its export, this
exported gold to be used for the payment of
interest and amortization of the foreign debt
and for settling unfavorable merchandise trade
balances. As another remedial measure he
proposes to have the Banco de la Nacion undertake rediscounting, especially for seasonal
needs, such as crop moving or other emergencies. Unless some such measures are taken,
he fears that Argentina may lose the commercial gains which she has made during the past
five years.
In Brazil a bill for the establishment of a
bank of issue and rediscount was introduced,
and in the meantime a division of the Bank of
611
Brazil was established by executive decree,
with authority to rediscount commercial bills
and to issue Government paper money secured
by such bills. The main provisions of the
decree may be briefly summarized. The new
department is to be in charge of a director
nominated by the President of the Republic.
Its operation will be limited to 100,000,000
milreis, which can be exceeded only under
special conditions by order of the President of
the Republic. The department will discount
bills of exchange and drafts drawn in terms of
Brazilian currency, guaranteed by at least two
commercial banks in good standing. The
banks with which this department will do
business must be registered with it, and for
such registration a minimum paid-in capital of
5,000,000 milreis is required. The period of
rediscount will be four months at most; the
paper accepted will be agricultural or live-stock
paper. Against this paper the Bank of Brazil
will issue Government notes, strictly limited to
the amount of the rediscount operations.
Brazil also inaugurated a governmental
control of foreign exchanges by regulating and
supervising all banks and banking houses to
prevent their speculating in exchange. The
Government is also authorized to establish a
special fund in New York and London, of which
it may apply 50,000,000 milreis to buying
and selling bills of exchange, both to assist
legitimate commerce and to stabilize exchange.
In Chile, although the plan for the establishment of a central bank of issue and rediscount
continues to be agitated, no definite action has
yet been taken. The nitrate producers of the
country have strengthened their organization
so that they control about 98 per cent of the
industry and are in a position to refuse to sell
at prices below a figure which they consider
profitable. Practically no sales have taken
place in the spring of 1921, and are not expected before June. It is thought, however,
that with the wider use of nitrogen for agricultural purposes in America and with the improvement of the exchange situation in Germany, the nitrate market will improve, as under normal exchange conditions tne sale price
of natural nitrates in Germany would probably
be lower than the cost of production of artificial nitrates.
Tables showing the condition of the Banco de
la Nacion, the Banco* do Brazil, and of the
Banco de Chile, at the close of the last two
years, follow.
5*78
FEDERAL RESERVE
MAY,
1921.
ASSETS AND LIABILITIES OF THE BANCO DE LA NACION,
ARGENTINA, ON DEC. 31, 1919 AND 1920.
ASSETS AND LIABILITIES OF THE BANCO DE CHILE ON
DEC. 31, 1919, AND 1920.
[In thousands of pesos.]
[In thousands of pesos.]
1919
1920
Currency.
ASSETS.
Due from foreign correspondents
Advances in current accounts and on securities.
Bills receivable
Accounts for collection
Bills discounted and rediscounted
D oubtful debts
Real estate .
National bonds, series A
Other Federal securities
Mobilization of conversion fund, law 9479
Furniture and stationery..
Interest earned but not received
Due from the treasury, law 10251
Conversion account...
Due from branches
Cash on hand
Due, according to the agreement with England
and France
Total
25,286
314,905
2,139
22,026
361,099
2,055
25,586
43,296
4,194
312,680
2,107
15,241
491,167
2,388
23,213
42,738
46,144
45,455
468
72,000
342,970
72,000
265,538
356 506
461,926
289,496
266,436
1,903,508
2,005,551
138,551
43,652
68,182
342,970
45,455
1,249,730
4,118
10,850
144,925
50,028
68,182
265,538
45,455
1,412,351
7,149
11,923
1,903,508
2,005,551
Gold.
Currency.
Gold.
ASSETS.
Cash
Due from banks and bankers..
Short-term bills, foreign
Securities owned
Real estate.
Furniture and furnishings
Loans and advances
Treasury certificates
Due from agencies
Interest and discounts
Other assets
,
Total.,
32, 521
20,490
48,844
11,019
9, 409
1, 593
5,465
300,982 32,546
16,580
3,293
126
1,648
12,280 18,744
9,233
12,214
1,246
353,398
10,000
9,164
2,878
3,725
30,445
411,287
77, 446
461,721
71, 585
253,840
31,364
10,360
90
240, 536
32,467
2,515
716
170
12,913
3,334
3,000
5,581
1,200
9,912
12, 049
*5,"756
18, 863
LIABILITIES.
LIABILITIES.
Capital..
Surplus
Conversion fund, law 3871
Conversion account
Mobilization of the conversion fund
Deposits, time and demand
Discounts, interests unearned but collected —
Due to branches
Total .
1920
1919
Deposits in current accounts:
Demand and time
In London
Due to banks and bankers
Savings deposits
Interest and discounts
Capital paid in
Surplus
Due to stockholders
Dividends
Profit and loss
Other liabilities
Total.
2,178
1,857
39
60,000
34,000
3,111
138
5,478
50,685
411,287
30,632
100,000
58,000
3,606
179
9,002
47,167
25, 576
77, 446
461,721
71, 585
5,000
13**333
ASSETS AND LIABILITIES OF THE BANCO DO BRAZIL ON DEC. 31, 1919 AND 1920.
[In thousands of milreis.]
1919
1920
1919
1920
LIABILITIES.
Government securities in guaranty of reserve fund.
Loans in current accounts
Bills discounted
Bills receivable
Foreign and domestic credits
Due from agents in Brazil and in Europe
Bank stock
Other stock
Stock in liquidation
Various accounts
Cash in vault
Bank buildings and furnishings
Total.
123,146
113,779
96,550
86,701
125,446
10,490
2,704
5,463
182,526
69,152
2,307
826,530
9,694
138,375
139,158
281,371
155,608
11,888
10,346
2,505
223,129
106,526
2,872
1,081,472
Capital paid in
Surplus
Deposits, not interest bearing
Deposits, interest bearing
Deposits, time
Current accounts
Due to agents in Brazil and in Europ
Bills payable, interest bearing
Government deposits, judicial
Government exchange account
Dividends payable.
Dividends, undivided
Various accounts
Pension fund
Profit and loss
Total..
45,000
8,865
23,788
119,222
17,922
1,519
38,420
18,115
1,513
45,000
10,632
121,553
127,146
36,156
21,114
796
2,250
523,823
8,427
7,980
3, 843
8,889
850
2,250
686,121
9,627
8,291
826,530
1,081,472
MAY,
1921.
FEDERAL RESERVE BULLETIN.
579
PRICE MOVEMENT AND VOLUME OF TRADE.
WHOLESALE PRICES IN THE UNITED
STATES.
Wholesale prices declined 3 per cent in March
as compared with 6 per cent in February and 9
per cent in December, according to the index
numbers compiled by the Federal Reserve
Board and the Bureau of Labor Statistics.
Although both indexes agree as to the monthly
rate of decline, they differ somewhat as to the
present level of prices as compared with the
prewar level. According to the compilation of
the Federal Reserve Board (based upon 88
commodities), wholesale prices in March were
50 per cent above the prewar level, while according to that of the Bureau of Labor Statistics (based upon approximately 325 commodities) they were 62 per cent higher. In other
words, the value of the dollar at wholesale
might be estimated at 67 cents according to the
Federal Reserve Board index and at 62 cents according to that of the Bureau of Labor Statistics.
The more rapid decline in the prices of raw
materials than of manufactured goods, which
has been characteristic of the price situation in
recent months, is clearly indicated by the change
in the Federal Reserve Board index numbers
for raw materials and producers' and consumers' goods. The two latter groups consist of
commodities in a manufactured or semimanufactured condition, while the first one consists
exclusively of raw materials. In January the
index of raw materials stood at 164, in March at
146, a drop of 11 per cent. The index of consumers' goods, on the other hand, has declined
only 5 per cent during the same period and producers' goods 8 per cent. The reclassification
of the index number of the Bureau of Labor
Statistics to show the relative fluctuations in
raw materials and manufactured goods gives
similar results, showing a decline in the prices
of raw materials between January and March of
10 per cent; in producers' and consumers' goods
8 per cent.
The unusual stability which was noted last
month in the prices of goods imported continued in March. This index number is
nearer the prewar level than any other computed by the Board, showing a 54 per cent fall
from the peak of last May and now standing
at 114 as compared with 100 in 1913. Prices of
exports continued to decline in March, the index
shifting from 135 in February to 125 in March.
For detailed information regarding the makeup of the Federal Reserve Board index num-
ber, reference may be made to the
RESERVE BULLETIN for May, 1920, pages 499503. The commodities included in the different
groups are listed there with exact specifications and markets indicated. The "weights77
assigned to the different commodities in constructing the index numbers are also given
in detail.
The index of "goods produced" consists of
average prices of 72 commodities (30 raw ma-7
terials, 24 producers' and 18 consumers
goods). These include agricultural products
(such as grains, live stock, and textiles), minerals, and lumber, among the raw materials;
yarns, leather, semifinished steel products,
refined oils, chemicals, building materials,
etc., among the producers' goods; and vegetables, meats, flour, dairy products, cotton
and woolen cloth, boots and shoes, and kerosene among the consumers' goods.
The index of "goods imported" consists of
the prices of 18 commodities (9 raw materials,
7 producers' and 2 consumers' goods). It includes Egyptian cotton, Australian and South
American raw wool, Japanese and Chinese
silk, South American hides, Straits tin, and
Canadian lumber among the raw materials;
plantation and Para rubber, Chilean nitrate,
cane sugar, burlap, sisal, etc., among producers'
goods; and tea and coffee for consumers'
goods.
Leading American exports are included in
the index of prices of goods exported, which is
made up of 39 commodity prices (17 raw materials, 12 producers', and 10 consumers' goods).
Grains, tobacco, cotton, copper, coal, pig iron,
petroleum, and lumber make up the fist of raw
materials; vegetable oils, leather, semifinished
metal products, refined oils, and chemicals
the producers' goods; and wheat flour, refined sugar, pork products, coffee, cotton
cloth, boots and shoes and kerosene the consumers' goods.
The index numbers of "raw materials,"
"producers' goods" and "consumers' goods"
consist of the commodities mentioned above
which fall into these classes, whether they are
of domestic or foreign origin. The raw materials group includes 39 commodities, the
producers' goods 29 commodities, and consumers' goods 20 commodities.
The "all commodities" index is obtained by
combining the group indexes of domestic and
foreign goods. It consists of 88 different commodities.
580
MAY, 1921.
FEDEKAL EESEKVE BULLETIN.
INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR
THE PURPOSE OF INTERNATIONAL COMPARISON.
Average price for 1913=100.1
Date.
Average for the year
Average for the year
Goods
Raw
Producers' Consumers' All comgoods.
goods.
consumed. materials.
modities.
Goods
produced.
Goods
imported.
Goods
exported.
100
100
100
100
100
100
100
100
209
174
214
206
209
198
207
206
236
250
265
266
260
253
238
231
213
195
178
191
218
242
246
226
208
182
164
142
127
112
227
256
264
262
256
248
235
246
263
263
258
249
237
233
211
192
176
237
263
274
274
265
251
235
225
209
190
171
229
211
163
146
234
247
263
264
257
249
234
227
211
193
176
261
255
250
2?9
218
203
187
171
233
248
263
264
258
250
234
226
208
190
173
166
156
152
114
113
114
142
135
125
165
155
145
164
152
146
166
158
153
159
152
151
163
154
150
1913.
1919.
1920.
Average for the year . .
March..
April
May
June...
.
.
Julv
August
September
October
November
.
December
.
.
.
1921.
January..
February
March..".
INDEXNUMBERS OFWHOLESALE PRICES IN THE UNITED STATES, I9IH92I
AVERA6E PRICE LEVEL OF 1913 =-IOO
/ /T*SO
\
*\
\^
\ V
\
J
f
V\
\
\
\\ "*•X .
V
*****
\
\
1919
FEB.
APR.
i \
OCT.
X
1921
SEPT.
11
1920
JUNE
X
i
i
FEB.
% \
SEPT.
X
1919
FEB.
MAR.
•
6
\
%
|
§
X
1920
ocia:
1
X
1921
i
8
\NOV.
>
I onsam.ers 6ood&
JAN.
/
••*
JULY
300
280
260
240
220
200
180
160
140
120
100
SO
60
40
20
O
111Commodities.
Goods imported
(hods exported.
300
280
260
240
220
200
180
160
140
120
100
80
60
40
20
O
MAT, 1921.
581
FEDERAL RESERVE BULLETIN.
INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF C O M M O D I T I E S BUREAU OF LABOR STATISTICS.
[Average price for 1913=100.]
Raw materials.
Year and month.
Average for the year
All commodities.
Producers' Consumers' (Bureau of
Labor Stagoods.
goods.
Total raw
tistics index
materials.
number).
Agricultural
products.
Animal
products.
Forest
products.
Mineral
products.
100
100
100
100
100
100
100
100
288
304
314
301
287
259
232
191
170
155
200
196
179
186
184
181
186
172
159
132
348
367
367
363
359
351
344
339
289
278
197
224
234
245
256
265
277
272
246
224
247
260
260
261
258
251
248
230
205
186
246
263
271
262
251
238
224
209
193
175
263
280
285
279
272
250
240
224
214
196
253
265
272
269
262
250
242
225
207
189
155
145
136
119
114
116
245
227
213
220
207
197
175
165
158
169
161
155
182
171
168
17.8
167
162
1913.
1920.
March
April
May
June
July
August
September
October
November
December
1921.
January.
February.
March
In order to give a more concrete illustration
of actual price movements, there are also
presented in the following table monthly actual
and relative figures for certain commodities of
a basic character. The prices shown in the
table have been obtained from the records of
the United States Bureau of Labor Statistics,
except in the case of bituminous coal, prices
for which have been obtained from the Coal
Age.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES.
[Average price for 1913= 100.]
Corn, No. 3,
Chicago.
Wheat, No. 1,
Cotton, middlings northern
spring,
New Orleans.
Minneapolis.
Wheat, No. 2,
red winter,
Chicago.
Year and month.
1913
1919
March
April
May
June
July
August
September
October
November
December
Rela- Average
tive price per
price. pound.
Relative
price.
Relative
price.
Average
price per
bushel.
Relative
price.
100
251
$0.8735
2.5660
100
294
$0.9863
2.5370
100
239
$8.5072
17.4957
100
206
$0.1839
.3931
100
214
.4060
. 4144
.4038
.4030
.3950
.3380
.2706
.2088
.1780
.1444
320
326
318
317
311
266
213
164
140
114
2.7550
3.0063
3.0750
2.9000
2. 8313
2. 5500
2.4903
2.1063
1.7528
1.6809
315
344
352
332
324
292
285
241
201
192
2.5000
2.7725
2.9750
2.8950
2.8050
2.4735
2.4919
2.2047
2,0570
2.0125
253
281
302
294
284
251
253
224
209
204
14.4000
13.9063
12.6000
15.0313
15.3813
15.3500
15.2500
14.6875
14.5750
12.0938
169
163
148
177
181
180
179
173
171
142
.3640
.3613
.3538
.3410
.2944
.2850
.2840
.2550
.2325
.1900
198
196
192
185
160
155
154
139
126
103
.1450
.1322
.1105
114
104
87
1.7884
1.6713
1.6135
205
191
185
1.9613
1.9194
1.6798
199
195
170
9.8400
9.3125
9.5625
116
109
112
.1675
.1363
.1150
91
74
63
Relative
price.
Average
price per
pound.
$0.6155
1.5800
100
257
$0.1270
.3185
1.5515
1.6913
1.9825
1.8390
1.5388
1.5310
1.2938
.8778
.8003
.7341
252
275
322
299
250
249
210
143
130
119
. 6553
.6350
.6180
106
103
100
1921
January
February
March
Average
Hides, packers,
heavy native
steers, Chicago.
Rela- Average
tive price per
price. bushel.
Average
price per
bushel.
1920
Cattle, steers,
good to choice,
Chicago.
100
pounds.
582
FEDERAL RESERVE BULLETIN.
MAY,
1921.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES-Continued.
[Average price for 1913=100.]
Hogs, light,
Chicago.
Wool, Ohio, i-f
grades, scoured.
Hemlock, New
York.
Yellow pine,
flooring,
New York.
Coal, bituminous, Coal, bituminous,
runofmine,f.o.b. Pocahontas, f.o.b.
spot at mines,
spot at mines,
Pittsburgh.
Columbus.
Year and month.
1913..
1919..
March
April
May
June
July
August
September.
October
November..
December..
January..
February.
March
Average
price per
100
pounds.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
M feet.
$8.4541
18.3260
100
217
$0.4710
1.1894
100
248
$24.2273
39.7500
15.5000
15.7125
14.7550
15.3500
15.8875
15.7350
17.0688
14.7875
12.1400
9.6625
183
186
175
182
188
186
202
175
144
114
1.2364
1.2000
1.1636
1. 0000
.9091
. 8727
.8364
.7273
.6909
.5455
263
255
247
212
193
185
178
154
147
116
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
9.6700
9. 7063
10,3063
114
115
122
.5455
.5455
.5273
116
116
112
48.0000
48.0000
48.0000
Relative
price.
Average
price per
M feet.
Average Rela- Average RelaRela- price
per tive price per tive
tive
short
price. short
price.
price.
ton.
ton.
100 $44.5909
164 78.8333
100
177
$1.3200
100
i $1.5710
100
235
235
235
235
235
235
235
235
235
235
139.0000
160.0000
160.0000
160.0000
160.0000
157.0000
157.0000
152.0000
124. 5000
124. 5000
312
359
359
359
359
352
352
341
279
279
2.3500
3.5900
4.4200
8.6700
10.0000
10.6300
10. 4700
8. 7500
5.1900
3-7500
178
272
335
657
758
805
793
663
393
284
2.3500
4.0700
6.4700
7.0000
7.9000
8.6300
8.6600
8.3100
7.3800
5.2000
150
259
412
446
503
549
551
529
470
331
198
198
198
110.0000
95.0000
95.0000
247
213
213
2. 5300
2.4200
2.2900
192
183
173
4. 2500
3. 7300
3.4000
271
237
210
1920.
1921
Coal, anthracite,
stove, New York,
tidewater.
Coke, Connellsville.
Copper, ingot,
electrolytic,
New York.
Lead, pig,
desilverized,
New York.
Petroleum, crude,
Pennsylvania,
at wells.
Pig iron, basic.
Year and month.
Average Rela- Average Relaprice per tive price per tive
long ton. price. short ton. price.
1913
1919
March
April
May
June
July
August
September
October
November
December
January
February
March
1
$5. 0613
8.1639
100
161
$2.4396
4.7375
100
194
8.4109
8.4368
8. 9964
9.3672
9.4580
9.6087
10.4363
10.4732
10.5417
10. 5479
166
167
178
185
187
190
206
207
208
208
6.0000
10.5000
12.0000
14.3000
14. 3750
15. 5500
15.3125
14.3125
8. 8500
6. 2375
246
430
492
586
589
637
628
587
363
256
. 1858
.1919
.1906
.1900
.1900
.1900
.1869
. 1675
.1455
.1369
10.6373
10.6382
10.6382
210
210
210
5. 5313
5.1875
5.0000
227
213
205
.1288
.1288
.1223
1920.
,
§0.1573
.1911
100
122
118
122
121
121
121
121
119
106
92
87
Rela- Average Rela- Average Relative price per tive price per tive
price. barrel. price. long ton. price.
100
131
$2.4500
4.1346
.0923
.0896
.0856
.0848
.0860
.0898
.0816
.0731
. 0628
.0478
210
204
195
193
195
204
185
166
143
109
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
.0497
.0468
.0405
113
106
92
5.7750
4.1875
3.0000
$0.0440
.0578
100 $14.7058
169 27.6971
100
188
249
249
249
249
249
249
249
249
249
249
41.6000
42. 5000
43.2500
44.0000
45.7500
48.1000
48.5000
43.7500
36. 5000
33. 0000
283
289
294
299
311
327
330
298
248
224
236
171
122
30. 0000
27.5000
24.2000
204
187
165
1921.
On Toledo market, average for last six months of 1913.
Average Rela- Average
price per tive price per
pound. price. pound.
MAY, 1921.
583
FEDERAL RESERVE BULLETIN.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued.
[Average prices of 1913=100.]
Cotton yarns,
northern cones,
10/1.
Leather, sole,
hemlock, No. 1.
Steel billets,
Bessemer,
Pittsburgh.
Steel plates,
tank, Pittsburgh.
Steel rails,
open hearth,
Pittsburgh.
Worsted yarns,
2-32's crossbred.
Year and month.
! Average Rela- Average
; price per tive price per
j pound. price. p o u n d .
1913
1919
SO.2213
.5340
March
April
May
June
July
August
September
October
November
December
1920
1921
January
February
March
Year and month.
100 j $0. 2821
241 !
.5283
Rela- Average Rela- Average Rela- Average I Rela- Average Relative price per tive price per tive price per tive price per tive
price. long ton. price. pound. price. long ton. price. pound. price.
100
187
$25. 7892
40.5385
100
157
$0.0148
.0271
100
183
$30.0000
49.2642
100
164
$0. 7767
1.6274
100
210
. 7549
.7784
.7672
.7299
. 7009
.6310
.5429
.4343
.3695
.3108
341
352
347
330
317
285
245
196
167
140
.5700
. 5700
.5700
.5700
.5700
. 5500
.5100
.4900
.4700
.4100
202
202
202
202
202
195
181
174
167
145
60. 0000
60.0000
60.0000
60.0000
62.5000
61. 0000
58. 7500
55. 0000
49. 7000
43. 5000
233
233
233
233
242
237
228
213
193
169
.0365
. 0375
. 0375
. 0355
.0338
.0325
.0325
.0309
.0281
.0265
247
253
253
240
228
220
220
209
190
179
54. 5000
54. 5000
54. 5000
51. 5000
54. 5000
54. 5000
54.5000
54. 5000
54. 5000
50. 5000
182
182
182
182
182
182
182
182
182
168
2. 2000
2. 2000
2.0000
2.0000
1.7500
1. 7500
1.6000
1.5000
1.3000
1.1000
283
283
258
258
225
225
206
193
167
142
.2878
.2775
. 2447
130
125
111
. 4000
.3800
.3700
142
135
131
43.5000
42. 2500
38.4000
169
164
149
.0265
.0233
.0204
179
157
138
47.0000
47. 0000
47. 0000
157
157
157
1.1500
1.1500
1. 2000
148
148
155
Flour, wheat,
Beef, carcass,
oil,
standard patents
smoked, Illuminating
good native
150° fire test,
Coffee, Rio, No. 7. j (1918, standard Hams,
Chicago.
steers, Chicago.
New York.
I
war),
| Minneapolis.
Sugar,
granulated,
New York.
Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive
pound. price. pound. price. barrel. price. pound. price. gallon. price. pound. price.
$0.1295
.2333
1913.
1919.
March
April
May
June
July
August
September.
October
November..
December..
1920.
100
180
100
160
$4. 5837
11.9982
100
262
$0.1662
.3433
100
207
1.1233
.2004
100
163
$0.0427
.0894
. 2050
.2090
.1950
.2225
. 2550
. 2550
.2600
.2520
.2400
.2220
158
161
151
172
197
197
201
195
185
171
.1500
. 1514
.1559
.1498
.1306
.0936
.0819
.0759
. 0746
.0656
135
136
140
135
117
84
74
68
67
59
13.1650
14.2813
15. 0313
14.1600
13.6688
12.2350
12.5938
11.2063
9.2950
8. 9438
287
312
328
309
298
267
275
244
203
195
.3155
.3313
.3556
.3650
.3769
.3725
.3634
.3575
.3065
.2575
190
199
214
220
227
224
219
215
184
155
.2500
.2600
.2600
.2600
.2600
.2600
.2750
.2900
.2900
.2900
203
211
211
211
211
211
223
235
235
235
.1372
.1919
.2247
.2120
.1910
.1490
.1426
.1078
.0962
.0809
321
449
526
497
447
349
344
252
225
189
.1738
.1600
.1625
134
124
125
.0669
. 0672
. 0639
60
60
57
9.6250
9.1813
8. 7300
210
200
190
. 2488
.2600
.2725
150
156
164
.2900
.2750
. 2625
235 li
223
213 !
. 0757
.0709
.0784
177
166
184
1921.
January..
FebruaryMarch
$0.1113
.1785
FOREIGN TRADE INDEX.
There is presented below a series of indexes
designed to reflect movements in foreign trade
of the United States, with fluctuations due to
price changes eliminated. The commodities
chosen for these indexes are those for which
prices are compiled by the Federal Reserve
Board in the preparation of its international
price index. The list includes 25 of the most
important imports, the value of which in 1913
formed 47.7 per cent of the total import
values, and 29 of the most important exports,
the value of which in 1913 formed 56.3 per
cent of the total export values. The classification of the original list of commodities
used was given in the July, 1920, BULLETIN.
A classification of the 11 additional commodities of imports was given in the October, 1920,
BULLETIN.
Total exports continued their decline during
March, while imports again showed a considerable increase. The decline in exports took
place in both raw materials and producers7
goods, but there was a slight increase in the
exports of consumers' goods. The decrease
in the exports of raw materials was most
noticeable in the case of wheat, cotton, and
refined copper, while in the case of producers'
goods a decline was noted in the export of
584
FEDERAL RESERVE BULLETIN.
every commodity. The most noticeable increase in the exports of consumers' goods was
in the case of wheat flour. There was a considerable increase in every class of imports.
The outstanding increase in raw materials was
MAY, 1921.
in the case of wool, and in producers' goods it
was most noticeable in the case of cane sugar
and India rubber, while in consumers' goods
there was a considerable increase in imports of
every commodity.
VALUE OF EXPORTS AND IMPORTS OF SELECTED COMMODITIES AT 1913 PRICES.
[In thousands of dollars; i. e., 000 omitted.]
[Monthly average values, 1913=100.]
Exports.
Raw materials
(12 commodities).
Value.
1913.
January
February...
March
April
May
June
July
August
September..
October
November..
December..
1919.
January
February...
March
April.......
May
June
July
August
September..
October
November. .
December..
Index
Index
Index
num- Value. num- Value. number.
ber.
ber.
100.0 139,191
84,066 98.2 18,444
58,488 68.3 14,598
57,659 67.3 16,161
65,112 76.0 19,356
67,595 78.9 15,972
98,335 114.8 28,618
71,917 84.0 17,150
81,250 94.9 19,574
70,285 82.1 19,359
70,322 82.1 17,182
99,552 116.2 15,735
89,584 104.6 13,208
Year..
914,165
1920.
January
February...
March
April
May
June
July
August
September..
October
November..
December..
93,142
70,150
90,779
68,048
63,650
55,200
66,924
67,225
70,699
101,708
95,148
104,828
Year..
947,501
1921.
January
February...
March
90,063
77,922
65,680
Consumers'
Producers'
goods (10 com- goods (7 commodities).
modities).
100,027 116.8 11,762
71,074 83.0 12,266
61,681 72.0 11,836
71,446 83.0 14,128
68,856 80.4 11,661
46,963 54.8 11,612
51,325 59.9 11,109
74,869 87.4 11,547
103,614 120.9 10,622
137,772 160.9 12,608
126,836 148.1 9,987
113,326 132.3 10,053
Year.. 1,027,789
Imports.
88.9 215,357
108.7
81.9
106.0
79.4
74.3
64.5
78.1
78.5
82.5
118.7
111.1
122.4
30,715 100.9
30,790 101.2
28,698 94.3
28,708 94.3
29,923 98.3
28,242 92.8
27,686 91.0
29,370 96. 5
32,190 105.8
34,612 113. 8
31,246 102.7
33,089 108. 7
100.0 365,269
159.0
125.9
139.3
166.9
137.7
247.1
147.9
168.8
166.9
148.1
135.7
113.9
56,748
53,338
61,585
80,639
58,731
96,088
52,553
49,194
43,342
45,844
46,729
43,571
154.7 688,362
21,797
16,349
12,111
142.6 503,802
187.9
141.0
104.4
38,356
35,433
37,243
Value.
186.4
175.2
202.3
264.9
192.9
315.1
172.7
161.6
142.4
150.6
153.5
143.1
Raw materials Producers'
Consumers'
(10 commodi- goods (12 com- goods (3 comties).
modities).
modities).
Index
Index
Index
Index
num- Value. num- Value. num- Value. number.
ber.
ber.
ber.
142,504 111.6 61,347 121.9 40,107
114,130 89.4 55,332 110.0 41,060
102,215 80.1 55,555 110.4 45,753
114,282 89.5 52,271 103.9 42,346
110,440 83.5 50,089 99.5 38,409
86,817 68.0 40,822 81.1 38,606
90,120 70.6 40,298 80.1 35,990
115,786 90.7 42,470 84.4 37,385
146,426 114.7 52,659 104.6 41,184
184,992 144.9 44,407 88.2 22,721
168,069 131.6 48,107 95.6 28,788
156,468 122.5 60,904 121.0 31,929
100.0 1,532,249
100.0 604,261
159,258 124.7 44,552
126,424 99.0 47,774
135,405 106.1 54,947
165,107 129.3 63,385
142,298 111.4 81,274
223,041 174.7 85,256
141,620 110.9 86,443
150,018 117.5 85,571
132,986 104.1 123,524
133,348 104.4 99,114
162,016 126.9 98,690
146,363 114.6 79,965
188.5 1,817,884
15,647 134.9 35,377 116.2
14,201 122.4 41,645 136.8
17,259 148.8 56,612 186.0
17,063 147.1 51,689 169.8
17,546 151.3 62,457 205.2
14,663 126.4 46,113 151.5
19,138 165.0 43,325 142.4
15,708 135.4 28,594 94.0
13,883 119.7 28,599 94.0
17,649 152.2 37,859 124.4
14,123 121.8 33,996 111.7
21,577 188.0 37,536 123.3
92.2 198,457
105.2
91.0
177.4
101.4
105.8
102.1
121.8
100.6
100.1
95.8
99.5
91.6
108.7
86.1
86.7
Total (29 commodities).
118.6 951,495
108.3
110.9
123.6
114.4
103.7
104.3
97.2
101.0
111.2
61.4
77.8
86.2
107.7 816,909
126.0
116.4
122.4
117.6
101.6
91.1
150,216
129,704
116,126
37,523
59,514
80,926
Value.
Index
number.
115,673
110,727
114,686
105,513
96,216
87,810
85,986
90,933
109,726
83,057
91,954
114,279
115.1
110.1
114.1
104.9
95.7
87.3
85.4
90.4
109.2
82.6
91.5
113. 7
100.0 444,278
100.0 158,021 100.0 1,206,560
100.0
88.5
94.9
109.2
125.9
161.4
171.4
171.7
169.9
245.3
196.8
196.1
158.9
143. 3
180.2
223.0
237.7
242. 8
167.2
209.1
113.8
189.2
201.9
213. 9
194.2
53,071
66,708
82,546
88,017
89,890
61,888
77,401
42,132
70,033
74,736
79,198
71,886
157.5 857,504
14,434
14,230
25,223
18,869
24,881
18,512
29,492
20,953
25,240
20,385
21,254
21,521
111.4
128.0
161.8
169.3
195.0
165.7
192. 3
147.8
217.6
193.2
198.1
172.4
193.0 254,975 I 161.42,063,974
171.1
24,062
19,936
25,999
29,076
14,887
21,463
24,562
22,624
17,226
17,613
14,610
13,401
135.2 1,009,762 227.3 245,459
74.5
118.2
160.7
48,442
53,111
65,698
108.1
109.6
191.6
143.3
188.8
140.6
224.0
159.1
191.7
154.8
161.4
163.4
112,057
128,712
162,716
170,271
196,025
166,654
193,336
148,656
218,797
194,236
199,142
173,372
144,166 112.9 103,782 206.1 90,633 244. 8
125,996 98.7 87,210 173.2 107,162 289.5
164,513 128.9 97,011 192.7 125,496 339.0
136,800 107.1 87,588 174.0 97,187 262. 5
143,653 112.5 64,177 127.5 84,134 227.2
115,976 90.8 75,225 149.5 95,699 258.5
129,387 101.3 60,942 121.0 93,910 253. 7
111,527 87.3 61,321 121.8 94,856 256.2
113,181 88.6 51,388 102.1 61,163 165.2
157,216 123.1 44 866 89.1 48,683 131.5
143,267 112.2 43,436 85.3 61,590 166.4
163,941 128.4 39,963 79.4 49,239 133.0
137.9 1,649,760
14,219 108.0
14,335 108.9
13,378 101.6
10,896 82.7
7,718
58.6
8,382 63.7
9,698 73.6
11,078 84.1
15,883 120.6
15,929 121.0
15,059 114. 4
21,446 162.9
Total (25 commodities).
130.8
143.5
177.5
19,288
21,179
27,560
182.7
151.4
197.4
220.8
113.1
163.0
188.5
171.8
130.8
133.8
111.0
101.8
218,477
214,308
248,506
213,851
163,198
192,387
179,414
178,811
1,29,777
111,162
119,636
102,603
217.3
213.1
247.2
212.7
162.3
191.8
178.1
177.6
129.0
110.0
119.0
102.0
155.3 2,072,130
171.7
146. 5
160.8
209.3
104.7
133.1
173. 2
105,253
133,804
174,166
MAY,
1921.
FEDERAL RESERVE BULLETIN.
585
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the April, 1921,
there are presented in the following tables certain data
relative to the physical volume of trade. The
January, 1919, issue contains a description of
the methods employed in the compilation of
the data and the construction of the accompanying index numbers. Additional material
will be presented from time to time as reliable
figures are obtained.
The textile industry has continued its recovery and has shown the usual seasonal productive activity. Cotton consumption during
March increased slightly, but was considerably
lower than the consumption during March,
1920. However, the number of cotton spindles active during the month decreased slightly
from last month. The percentage of idle wool
machinery during the month of March to the
total reported continued to decline. The imports of raw silk, after a very large increase last
month, decreased slightly during March.
The production of bituminous coal during
March continued its decline and was considerably less than the production during March,
1920.* The production of anthracite coal also
continued to show a downward trend, being
slightly less than last month and somewhat
less than the same month a year ago. March
crude petroleum production showed a considerable increase over the production of last
month, as well as over the production for
March, 1920. Pig-iron production during April
made another record drop, reaching almost the
low production of June, 1908. The average
daily production during April was 39,768 tons,
as compared with 91,327 tons during April,
1920, and 51,468 tons during March, 1921.
Steel-ingot production likewise showed another
considerable drop, being considerably below the
production of last month and the same month a
year ago. The unfilled orders of the United
States Steel Corporation at the close of April also
continued to decline, reaching a new low point.
Receipts of live stock at 15 western markets
showed a further decrease during March and
were still below the figure for March, 1920.
There was an increase over the previous
month in the receipts of cattle and calves and
sheep, but a large drop occurred in the case
of hogs. Total shipments increased slightly
over February, but were practically the same
FEDERAL RESERVE BULLETIN
as during March a year ago. Stocker and
feeder shipments from 34 markets showed a
very large seasonal gain over February, but
were still smaller than shipments during
March, 1920. The number of animals slaughtered under Federal inspection during March
reflected the seasonal decrease and was considerably lower than during March, 1920.
Receipts of grain and flour at 17 interior
centers during March were in larger volume
than either last month or the same month a
year ago. Stocks of grain at 11 interior centers
at the close of March were much larger than in
February, 1921, or March a year ago. Wheat
flour production during March showed a marked
increase over February and was somewhat
larger then during March, 1920. Cotton sight
receipts continued their seasonal decrease, and
the American spinners' takings decreased to
about one-half of last month's takings.
Receipts and shipments of lumber at Chicago and St. Louis during April showed a
slight decrease from the March figure, but
were still considerably larger than receipts
and shipments during April, 1920. The production of lumber during March has shown a
considerable revival in each of the five associations, namely, southern pine, western pine,
Douglas fir, eastern white pine, and North
Carolina pine. The production increased considerably over February, but was still considerably less than the production during
March, 1920. Receipts and meltings of raw
sugar at the North Atlantic ports showed a
considerable increase over February, but in
both cases were smaller than during March,
1920. The raw stocks at the close of March
at these ports decreased from the February
figure, and were practically the same as raw
stocks at .the close of March, 1920. California shipments of citrus fruits during March
increased both when compared with last
month and the same month a year ago.
Shipments of deciduous fruits were the same
as last month and considerably smaller than
during March, 1920.
Tonnage of vessels cleared during March was
larger than in February, or in March a year
ago. The January railway net ton mileage
dropped to a very low figure, and was the
smallest figure since April, 1920, at which
time the railroad outlaw strike occurred.
586
FEDERAL RESERVE BULLETIN.
MOVEMENT Of
AGRICULTURAL PRODUCTS
1919-1921
MAY,
COAL AND PETROLEUM
1919-/92/
—
Jinthractte CbalJrvduction,
•
——— JSiCurninous GxdSrcdjuuctiori———
Crud6$ktroUum,$vdux£0Ti,
JWE/A'UMBERS. AVERA6E 1911-1613*100
•»
JCive StodC Receipts ——
Orturv and, Mxzrjfteceipts
—
•—Cotton Sight Receipts
INDEXNUMBERS. AVERA6E 1311-1913=100.
200
J
i—;
180
160
1
...
.....
V"
140
120
too \*
80
M
160
i—
|\
\\
\
if
\s
...
\—
100
80
if
60
MO
120
V
a
(
ISO
r
M
/
200
i
*
60
4o
40
1
20
ii
—
0
1919
IRONANDSTEEL
1919 -1921
1920
20
0
1921
TEXTILES
1913-1921.
MgIrowSroduction
— Steel IngotJfrodttctiow•-
Cotton Consumption,
Wool Consumption/
UTvfUMOrderSjUSSbetiLGrpcJtrfiori
INDEX NUMBERS. AYERA6Z1911-1913 =100.
\1
200
/f
180
160
140
V
i/
80
1J
•
M
180
\
•i
r-
V ~\
_l
140
\
120
\
\
100
\
80
40
40
20
20
1920
i
^
260
240
i
|
\
\ \
\ \
200
\
\
\
\
160
j
J
\
140
120
1921
0
80
60
40
20
0
Q/Y)
i
•
100
60
1919
L
180
\
60
0
260
240
160
A
120
100
200
*
MILLIONS OF POUNDS
300
j
V/
1919
•*\
1920
1921
200
ISO
160
140
120
100
80
60
40
FO
0
1921.
MAY, 1921.
587
FEDERAL RESERVE BULLETIN.
LIVE-STOCK MOVEMENTS.
[Bureau of Markets?.]
Receipts.
Shipments.
Cattle and
calves, 59
markets.
markets.
and
Sheep, 59 Horses
markets. mules, 43
Total, all
kinds.
Cattle and
calves, 54
markets.
Hogs, 54
markets.
Head.
1,643,816
Head.
3,903,804
Head.
1,254,951
T'llv
August
September
October
November
December
1,657,743
1,952,086
2,279,345
2,196,939
2,403,990
1,382,995
2,837,685
2,516,240
2,135,589
2,826.277
3,862' 243
4,1S6,261
1921.
January
February
March
1,629,994
1,174,611
1,548,061
4,654,560
3,951,971
3,338,483
Marc1!
1920.
Hogs, 59
markets.
and
Sheep, 54 Horses
markets. mules, 43
markets.
Head.
6,885,155
Head.
571,123
Head.
1,399,485
Head.
483,550
2,000,758
2,561,661
2,826,693
2,945,709
2,419,596
1,546,876
Head.
82,584
35,668
73,423
57,468
38,657
22,477
16,118
6,531,854
7,103,410
7,599,095
8; 007,582
8,708,306
7,132,250
721,328
869,849
1,079,170
1,159,459
1,148,861
647,801
1,095,470
953,088
931,261
1,064,175
1,394,347
1,516,893
1,769,155
1,501,902
1,731,653
34,712
41,212
41,951
8,088,421
6,669,696
6,660,148
602,320
456,471
587,898
1,637,902
1,346,092
1,229,105
Total, all
kinds.
Head.
2,542,054
1,015,612
1,459,150
1,581,680
1,932,083
1,474,299
704,780
Head.
87,896
37,152
69 971
60,414
37,994
22,963
17,030
2,869,562
3,352,058
3.652,525
4,193,711
4,040,470
2,886,484
681,987
590,487
688,072
34,572
40,611
42,602
2,956,781
2,433,661
2,547,977
RECEIPTS AND SHIPMENTS OF LIVE STOCK AT 15 WESTERN MARKETS.
[Chicago, Kansas City, Oklahoma City, Omaha, East St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth
Indianapolis, Louisville, Wichita. Monthly average, 1911-1913=100.]
RECEIPTS.
Sheep.
Cattle and calves.
Head.
March
1920.
Relative.
Head.
Head.
Horses and mules.
Relative.
Head.
Relative.
Total, all kinds.
Head.
Relative.
1,195,622
119
2,852,171
130
899,760
66
56,880
124
5,004,433
108
July
August
Pep timber.
October
November..
December..
1,188.019
1,459" 565
1,736,009
1,628,564
1,781,261
984,309
118
145
172
162
177
2,115,639
1.818,245
1,597 622
1,836,748
2,624,185
2,932,052
96
83
73
84
119
133
1,301,458
1,688,719
1,893,312
1,865,330
1,542,477
.942,858
95
124
139
136
113
26,257
55,371
38,950
24,716
12,149
57
120
85
54
26
20
4,631,373
5,021,900
5,265,893
5,355,358
5,960,072
4,868,509
100
109
114
116
129
105
1921.
January
February
March
1,191,^14
835,686
1,119,548
118
89
111
3 339,419
2,902,107
2,390,480
152
141
109
1,112,024
972,647
1,161,549
5,667,415
4,737,551
4,700,014
123
110
102
24,158
27,111
28,437
SHIPAIENTS.
March
1920.
418,310
103
923; 526
July
August
September...
October
November...
December...
508,199
640.205
819,371
866,327
810.284
472,748
125
157
202
213
1Q9
116
737,923
627,670
540,812
584,742
784,468
943,515
1921.
January
February
March
426,887
334,113
447,682
105
88
110
1,078,679
869,718
825,944
61,625
298,878
59
152
130
112
121
162
195
644,557
899,342
1,027,510
1,192,912
952,159
384,646
128
179
204
237
189
76
27,728
52,163
40,890
24,051
12,782
10,201
223
192
170
316,068
324,311
406,705
63
69
81
24,463
26,495
28,765
191
150
1,702,339
119
127
100
59
*,1
25
1,918,407
2,219,470
2,428,583
2,668,032
2,559,693
1,811,110
134
155
169
186
173
126
1,846,097
1,554,637
1,709,096
129
116
119
SHIPMENTS OF STOCKERS AND FEEDERS FROM 34 MARKETS.
Cattle and
calves.
March.
July
August
September
October
1920.
Head.
239.363
209,563
273,512
473 652
571,025
Hogs.
Sheep.
Total, all
kinds.
Head.
101,173
Head.
135,244
Head.
475,780
25,711 322 867
34,415 567.429
44,340
789\387
59,123 1,055,237
558,141
875,356
1,307,379
1,685,385
Cattle and
calves.
1920.
November
December
January
February
March
1921.
Total, all
kinds.
Hogs.
Sheep.
Head.
545,802
277,053
Head.
52,699
36,827
Head.
855,545
258,599
Head.
1,454,046
572,479
202,926
164,504
233,477
41,892
49;229
72,536
61,508
88,292
332,907
275,241
394,305
588
FEDERAL RESERVE BULLETIN.
1921.
MAT,
ANIMALS SLAUGHTERED UNDER FEDERAL INSPECTION.
[Bureau of Animal I n d u s t r y .
Cattle.
Hogs.
Calves.
"Relative.
Head.
Monthly average, 1911-1913=100.]
Relative.
Read.
Relative.
Head.
Total.
Sheep.
Head.
Relative.
Head.
Relative.
1920.
March
683,139
113
390,053
July
AllgllSt. - '
September
October
November
December
661,172
685,763
825,484
843,136
858,046
667,344
109
113
136
139
142
110
342,76S
332,349
347,578
314,789
315,971
244,573
689,506
522,71*
624,395
114
92
103
282,043
252,369
361,733
:
221
3,481,680
124
787,867
5,342,739
Ill
194
188
197
178
179
138
2,643,772
2.176,010
1^978,602
2,486,940
3,328,633
3,985,125
94
77
70
88
118
142
1,048,42*
1,041,580
1,150,776
1,067,821
968,235
932,417
4,696,137
4,235,702
4,302,440
4.712,686
5;471,785
5,829,459
98
88
90
98
114
121
160
153
205
4,347,306
3,770,974
3,075,137
154
143
109
1,068,346
957,751
1,075,481
6,387,201
5,503,812
5,136,746
133
123
107
1921.
January
February
March..".
EXPORTS OF CERTAIN MEAT PRODUCTS.
[Department of Commerce.
Beef, canned.
Beef, fresh.
RelaPounds. tive.
March
Pounds.
Monthly average, 1911-1913= 100.]
Beef, pickled,
Rela- Pounds.
tive.
Hams and
shoulders, cured.
Bacon.
and other cured.
Relative.
Pounds.
Relative.
Pounds.
Pickled pork.
Lard.
Relative. Pounds.
Relative.
Pounds.
Rela
tive
1920.
847,397
128
6,036,166
487
2,290,835
86
75,002,410
448
31,088,859
208
69,429,785
158
3,160,456
7i
July.
August
September
October
November
December
5,217,838
1,231,070
244,261
207,503
282,761
399,916
788
186
37
31
43
60
5,506,812
343,352
1,964,543
522,251
3,091,895
1,583,434
444
28
158
42
249
128
1,973,004
2,152,982
1,613,657
1,995,039
1,678,091
3,053,993
74
81
60
75
63
114
31,562,761
23,333,156
41,371,561
49,838,768
57,934,259
68,784,322
188
139
247
298
346
411
8,385,089
9,360,469
8,997,124
8,787,853
11,197,880
14,491,763
56
63
60
59
75
97
47,061,422
31,020,802
46,326,353
54,173,979
57,316,309
90,080,092
107
71
105
123
130
205
2,926,247
2,257,511
3,279,902
3,549,456
2,605,431
2,691,452
66
51
74
80
59
61
1921.
January
February
March...
548,227
1,733,678
504,356
83
280
76
6,078,550
979,081
508,230
490
85
41
1,725,625
1,750,756
2,246,547
65
70
84
43,202,486
31,612,140
35,350,774
258
202
211
16,869,841
15,847,799
19,102,633
113
114
128
76,185,237
91,840,951
82,616,583
173
224
188
3,089,094
3,150,452
2,024,334
70
76
46
RECEIPTS OF GRAIN AND FLOUR AT 17 INTERIOR
CENTERS.
Chicago, Cleveland, Detroit, D u l u t h , Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, O m a h a , Peoria,
St. Louis, Spokane, Toledo, Wichita; receipts of flour n o t available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo,
and Wichita. Compiled from reports of t r a d e organizations at these cities. Monthly average, 1911-1913= 100.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Flour.
Total grain a n d
flour, i
RelaRelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels tive. Bushels tive. Bushels. tive. Barrels. tivi
Bushels. tive.
1920.
March
18,007,798
66 24,304,946
10819,149,624
95 3,549,739
322 2,908,440
41 67,920,547
87 1,618,519
83 75,203,883
July
August
September.
October
November.
December..
29,714,399
43,039,021
46,181,275
45,403,825
39,272,827
32,758,773
110 824,268
159 ,840,320
170 20,696,955
,064,508
145 11,407,224
390,714
121
93 18,734,180
44 30,728,748
92 31,031,569
85
21,
""21,235,162
51 15,282,651
87 13','
'"1,777,300
93 3, 096,026
153 3, 191.103
154 5, 571,428
106 4, 455,979
76 3, 706,653
69 3, 482,685
281 653,921
289 3 007,508
50; 630,056
404 5; 795.028
336 6, 616:362
316 " 057,808
37 75,(
5,022,794
1,806,700
42 89,
ouu,0,111,283
92 110,111,^
8195,954,502
92 76,285,717
71 74,467,280
96 2 052,110
115 i; 949,339
1411, 843,954
123 2 137,639
98 2! 054,262
96 I, 570,822
105 84,257,2
100
;, 578,726
1921.
32,229,218
January
February... 22,922,667
22,848,939
March
119 422,036,812
7,565,779
9127;
84 344,165,324
1.8818,508,!
132112,553,913
15217,432,655
92 2,202,705
67l 1,397,832
871,343,498
203 3,753,837
136 2,074,908
1213,111,127
52 98,731,558
31i66,515,099
43 78,898,543|
127 1,430,904
91 1,659,009
101 2,096,C3l
1
Flour reduced to its equivalent in wheat on basis of 4| bushels to barrel.
94 118,409,076
1091105,573,878
105 85,529,896
80 81,535,979
97
114
137
122
99
94
73 105,170,626
121
91 i 73,980,640 91
107| 88,33), 678
102
MAT, 1921.
589
FEDERAL RESERVE BULLETIN.
SHIPMENTS OF GRAIN AND FLOUR AT 14 INTERIOR CENTERS.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita;
shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.
Corn.
Barley.
Rye.
Oats.
Total grain.
Total grain a n d
flour.i
Flour.
RelaRelaRelaRelaRelaRelaBushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels.
1920.
March
11,027,336
July
August
September..
October
November.
December..
19,002,099
24,934,816
28,700,593
26,258,795
24,950,771
22,253,030
1921.
J a n u a r y . . . . 20,187,379
February... 15,134,115
March
17,415,266
1
11,165,894
7814,243,957
94 3,063,530
433 1,572,887
40 41,073,604
83 2,960,175
9,100,527
6,260,144
6.284,075
10,336,378
7,890,500
7,898,979
64 11,345,429
44 12,814,067
44 12,690; 866
"^10,601,178
55 10,729,045
9,964,743
75 4,476,238
84 2,880,003
83 4,339,057
70 4,742, 380
71 2,998,524
68 3,171,616
632 2} 086,672
407 2,231,851
""3,556,180
613
3
670 44,529,091
4,247,954
448 3,082,249
53 46,010,965
""49,120,881
57
49.
91 55,570,771
116 56,467,822
109 50,816,794
79 46,370,617
93 3 767,678
99 3: 605,105
112 3 187,454
114 3 758,735
102 3 949,699
93 3 141,524
130 17,288,509
104 12,891,895
112 20,723,904
121 11,523,642
97 9,299,842
14512,435,26r
76 2,,380,797
66 1',041,424
821 ,116,943
336 21,874,359
1581L, 626,913
15811,685,989
:, 254,686
45 39'i, 994,189
43 53 ,377,364
109 2,678,257
86
^ 2 ,2:6 9 6 , 7 2 3
107 3,156,299
3:
122
160
184
169
160
143
Relative.
87 54,394,392
84
62,965,516
65,343,854
69,914,314
73,382,130
68,590,440
60,507,475
97
101
108
113
106
66,306,843
52,129,443
102
86
104
111
106
94
111
117
93
93 67,580,710
Flour reduced to its equivalent in wheat on basis of 4-| bushels to barrel.
STOCKS OF GRAIN AT 11 INTERIOR CENTERS AT CLOSE OF MONTH.
[Chicago, Detroit Duluth, Indianapolis, Kansas City, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, and Toledo..
1920.
March
July
August
September
October
November
December
Wheat.
Corn.
Oats.
Bushels.
Bushels.
Bushels.
Rye.
Total grain.
Barley.
Bushels.
32,743,697
4,423,249
7,525,112
2,016,046
61,099,699
5,492,026
5,460,879
9,134,621
14,627,524
16,058,407
15,525,114
4,959,314
1,414,708
5,669,580
7,823,807
3,461,911
4,793,299
2,059,842
7,447,762
23,322,910
28,941,148
28,697,974
27,358,948
670,563
338,600
1,303,475
668,084
1,082,195
1,007,591
1,336,553
709,469
2,114,369
2,096,517
1,874,366
2,378,548
14,518,298
15,371,418
41,544,955
54,157,080
51,174,853
51,063,500
14,414,231
12,883,444
11,277,724
11,596,518
17,294,569
24,465,117
29,435,153
30,039,057
31,570,022
478,125
600,585
562,754
2,057,434
1,800,604
1,673,037
57,981,461
62,618,259
69,548,654
1921.
January
February
March
RECEIPTS OF GRAIN AND FLOUR AT NINE SEABOARD CENTERS.
[Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available fo
Seattle and Tacoma. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913=100.]
Wheat.
Corn.
Rye.
Oats.
Barley
Total grain.
Total grain and
flour.!
Flour.
RelaRelaRelaRelaRelaRelaRelaBushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive.
L
1920.
March
July
August
September..
October.
November..
December..
6,486,745
18,710,633
28,098,022
31,693,246
29,028,202
24,410,356
29,551,950
1921.
January
12,717,255
February... 10,315, 852
9,064,534
March..'
1
1,203,649
149
223
252
230
194!
235
3,305,542
1, 576,842
1,456,958
1,844,753
2,401,181
854,138
101 6,228,175
88 7,845,915
7213,933,057
34 3,646,727
3, 499,101
2,671,365
3,069, 700
1,828, 515
1, 874,271
1, 911, 861
175 1,542,355
237 1,039, 537
392 1,433,069
74
56
65
38
39
40
5,048,019
3,407,799
4,133,465
5,436,354
3,329,710
3,490,405
74 1,752,860
144 1,660, 849
1681,390,077
1861,422,872
1791,463,830
153 3,683,380
168 4,367,180
159
133
136
140
353
418
40,135,198
44,299,166
48,571,520
47,283,335
51,312,048
57,752,303
146
162
177
173
187
211
111 1,174,815
1081,186,565
120|l,518,450
112 30,493,908
122 28,231,673
145 33,987,574
111
110
124
3,553 25,098,083
32 2, 748, 524 ., 934 L,
1. 970,931
23'2,059, 538 ., 553 1^i, 631,288
301,034,760
7281 ,689,129
Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.
168 24,645,848
78 16,757,978
126 32,661,378
2; 398 2,289,791 138 38,043,819
"
., 815,227 109 42,168, 596
!, 558,276 154 40,696,100
2; 344 2, 721,320 164 34,736, 838
2,457 2,291,639 138 38,099,993
77 4,119,986 2,9001,300,871
119 25,207,240
!2,892,130
102 27,154,549
90
590
FEDERAL RESERVE BULLETIN.
MAY, 1921.
STOCKS OF GRAIN AT EIGHT SEABOARD CENTERS AT CLOSE OF MONTH.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco. Compiled from reports of trade
organizations at these cities.]
1920.
March
July
August
September
October
November
December
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Bushels.
Bushels.
Bushels.
Bushels.
Bushels.
Bushels.
6,280,682
851,287
1,351,457
2,389,321
1,891,862
12,764,609
11,923,745
13,915,892
15,517,070
17,277,003
17,794,605
18,263,476
744,167
1,097,945
1,146, 514
1, 292,818
1,371,013
510,142
1,323, 940
1, 532,272
2,398,157
2,521,049
2,327,249
2,205,936
1,275,554
777,445
2,414,910
1, 742,178
1,906, 527
2,196,380
3,187,611
4,052,189
4,110,158
3, 577,450
3,097,922
3,322,050
18, 455,017
21,375,743
25,586, 809
26,410,498
26,497,316
26,497,984
15, 060, 423
12,032,772
6,782,584
2,524,700
3,982,316
6,353,250
1,
1,775) 563
1,286,275
1,602,358
1,332,441
1,069,220
2,105,450
1,909, 706
1,454,547
23, 273,196
21, 032, 798
16,945,876
1921.
January
February
March
NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.
WHEAT FLOUR PRODUCTION.
[January, 1918, to June, 1920, U. S. Grain Corporation; July, 1920, on, estimated by Russell's Commercial News (Inc.), New York.]
1920.
Barrels.
9,036,000
March
July
August
September
October
8,200,000
10,200,000
9,450,000
9,650,000
1920.
November
December
Barrels.
9,500,000
9,600,000
1921.
January
February
March
8,924,000
7,066,000
9,100,000
COTTON.
[New Orleans Cotton Exchange. Monthly average crop years, 1911-1913=100.]
Sight receipts.
Relative.
Bales.
Port receipts.
Bales.
Relative.
Overland movement.
Bales.
Relative.
American spinners' Stocks at ports and
interior towns at
takings.
close of month.
Bales.
Relative.
Bales.
Relative.
1920-21.
August
September
October
November
December
January
February
March
771,590
1,466,874
1,804,135
1,579, 751
1,153,825
744,682
553,518
25
62
117
144
126
92
64
44
159,586
443,149
971,334
1,075,803
797,350
446,399
401,464
17
48
106
117
87
69
52
44
25,322
17,324
87,215
117,139
134,455
157,012
206,554
134,085
24
16
83
111
128
149
210
127
251,841
254,460
395,165
425,089
672,477
526, 718
576,260
253,368
55
.56
87
94
148
116
136
56
1,365,397
1,607,602
2,101,839
2,597, 820
2,815,934
2,863,377
2, 820,403
2,757,715
116
136
178
220
239
243
239
234
COTTON SEED.
[Bureau of the Census.]
1920.
March
July
August
September
October
Received
at mills.
Crushed.
On hand at
mills (close
of month).
Tons.
Tons.
Tons.
178,145
316,393
215,872
7,259
24,979
244,382
13,219
20,317
145,519
607,628
30,084
36, 760
135,623
471,979
1920,
November
December
,
Received
at mills.
Crushed.
On hand at
mills (close
of month).
Tons.
Tons.
Tons.
829,282
557, 787
719,455
546,086
581,806
593,507
418, 846
431, 539
336,226
527,521
499,851
452,770
484,831'
416, 520
299,97*
1921,
January
February
March
,
MAY,
591
FEDERAL RESERVE BULLETIN.
1921.
SHIPMENTS OF CITRUS AND DECIDUOUS FRUITS FROM CALIFORNIA.
[March, 1921, on, Bureau of Markets and California Fruit News.2 Monthly average, 1911-1913=100.]
Oranges.
Carloads.
Relative.
Carloads.
Relative.
Carloads.
Relative.
4,715
193
651
161
5,366
188
155
2,822
1,707
1,409
752
1,602
3,774
115
70
58
31
664
751
464
925
164
185
115
228
122
86
66
59
66
377
93
3,486
2,458
1,873
1,677
1,979
i 4,167
146
3,179
7,239
9,021
11,880
2,792
368
140
627
155
143
98
153
203
610
936
161
231
155
207
81
81
1920.
March
July
August ..
September
October
November
December
..
.
1921.
January
February...
March
...
1
.
Total
deciduous
fruits.
Total citrus fruits.
Lemons.
154
3,429
3,484
4,955
.
2
Includes grapefruit.
91
368
Carloads.
69
i 4,077
14,123
5,891
For previous sources, see April, 1921, Bulletin.
SUGAR.
[Data for ports of New York, Boston, Philadelphia. Weekly Statistical Sugar Trade Journal. Tons of 2,240 pounds. Monthly average, 19111913=100.1
Relative.
Tons.
Raw stocks at
close of month.
Meltings.
Receipts.
Relative.
Tons.
Relative.
Tons.
Relative.
Tons.
Raw stocks at
close of month.
Meltings.
Receipts.
Relative.
Tons.
Relative.
Tons.
1920.
March
335,532
182
333,000
182
88,185
51
1920.
December
148,464
81
154,000
84
63,715
37
July
August
September
October
November
386,328
308,313
109,302
109,335
186,274
210
168
59
59
101
325,000
287,000
164,000
118,000
179,000
177
156
89
64
98
104,027
125,340
70,642
61,977
69,251
60
73
41
36
40
1921.
January
February
March
92,498
228,952
306,914
50
133
167
94,000
193,000
310,000
51
113
169
62,113
98,165
87,466
36
57
51
SALE OF REVENUE STAMPS FOR MANUFACTURES OF TOBACCO IN THE UNITED STATES (EXCLUDING PORTO RICO
AND PHILIPPINE ISLANDS).
[Commissioner of Internal Revenue.!
Cigarettes.
Cigars.
March
1920.
July
August
September
October
November
Large.
Small.
Small.
Manufactured
tobacco.
Number.
753,239,958
Number.
55,052,100
Number.
4,373,778,917
Pounds.
38,422,481
678,751,956
672,020,289
678,640,116
704,799,089
668,060,015
51,766,100
48,171,240
50,175,580
60,882,760
57,026,500
3,053,336,563
3,569,397,443
3,557,482,503
3,840,334,806
3,529,200,006
30,988,646
32,138,941
32,094,569
27,123,774
18,513,654
Cigars.
Cigarettes.
Manufactured
tobacco.
Large.
Small.
Small.
1920.
December
Number.
506,126,135
Number.
47,380,000
Number.
2,816,818,050
Pounds.
15,452,701
1921.
January
February
March
462,798,039
496,724,482
561,343,699
64,661,867
64,461,733
70,245,500
3,901,560,330
4,119,376,533
4,470,292,160
24,750,290
27,096,592
32,209,842
NAVAL STORES.
[Data for Savannah, Jacksonville, and Pensacola. Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
March
1920.
July
August
September
October
Rosin.
Spirits of turpentine.
Receipts.
Stocks at
close of
month.
Receipts.
Stocks at
close of
month.
Barrels.
1,876
Barrels.
4,819
Barrels.
14,660
Barrels.
103,443
39,158
33,997
32,162
30,260
30,906
27,963
44,336
49,885
117,088
111,497
97,797
88,766
135,979
144,109
176,612
195,837
Rosin.
Receipts.
Stocks at
close of
month.
Receipts.
Stocks at
close of
month.
1920.
November
December
Barrels.
23,893
21,174
Barrels.
49,209
53,356
Barrels.
83,177
76,848
Barrels.
247,253
300,315
1921.
January
February
March
9,419
7,404
7,995
51,563
41,755
28,838
36,333
26,736
18,906
310,905
316,440
319,347
FEDERAL RESERVE BULLETIN.
MAY,
1921.
LUMBER.
[From reports of manufacturers' associations.]
Southern pine.
Number of
mills.
Production.
205
Mfeet.
436,944
Western pine.
Ship- Numof
ments. ber
mills.
Production.
Douglas fir.
Ship- Numof
ments. ber
mills.
Production.
North Carolina pine.
Eastern white pine.
Ship- Numof
ments. ber
mills.
Ship- Numof
ments. ber
mills.
Production.
Production.
Shipments.
Mfeet.
424,775
Mfeet.
130,425
Mfeet.
156,211
123
Mfeet.
342,948
Mfeet.
329,012
Mfeet.
43,771
Mfeet.
61,620
Mfeet.
29,633
Mfeet
29,890
July
August
September.
October
November.
December..
207 385,842 331,273
204 383,540 337,677
204 376,566 378,195
206 344,427 329,751
203 315,343 320,756
199 264,504 281,326
177,262
171,143
164,312
146,424
107,846
45,578
103, 500
123, 344
98, 808
69, 936
60, 259
46,112
127
123
127
120
123
119
242,612 225,666
366,433 322,908
299,277 238,965
355,614 299,704
263,452 212,226
188,905 187,874
37,459
46,149
48,962
40,724
20,294
19,056
49,668
55,991
45,445
30,928
19,751
10,587
20,756
19,511
21,887
19,487
14,617
8,091
15,217
14,130
16,043
14,877
12,929
14,716
1921.
January
February..
March
193 289,824 311,977
189 330,680 335,876
195 387,959 390,300
24,698
22,128
35,983
42, 793
48 270
63, 126
24,319
23,722
26,396
10,602
13,615
15,298
7,123
10,673
12,778
7,880
10,045
8,915
March
1920.
116 153,157
114 159,646
118 192,188
170,821
153,649
210,842
RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO AND ST. LOUIS.
[Chicago Board of Trade and Merchants' Exchange of St. Louis. Monthly average, 1911-1913=100.]
Receipts.
M feet.
April
1920.
July
August
September
October
November
Shipments.
Relative.
M feet.
Receipts.
Realtive.
236,975
51
131,933
52
399,615
370,352
375,456
398,333
342,971
86
80
81
86
74
184,767
220,368
242,857
220,116
190,282
73
87
96
87
75
M feet.
1920.
December.
January
February
March
April
1921.
Shipments.
Relative.
M feet.
Relative.
351,695
76
192,072
7f
263,001
269,632
349,426
345,798
57
62
75
74
165,308
169,843
215,760
213,359
79
Rf
65
84
COAL AND COKE.
[U. S. Geological Survey. Monthly average, 1911-1913=100.]
Bituminous coal, estimated monthly production.
Short tons.
March
1920,
July
August
September
October
November
December
January
February
March
Relative.
Anthracite coal, estimated monthly production.
Short tons.
Relative.
Beehive coke, estimated
monthly production.
Short tons.
Relative.
46,832,000
126
7,857,000
105
2,025,000
77
45,009,000
48,910,000
49,172,000
52,144,000
51,457,000
52,123,000
121
132
133
141
139
141
8,261,000
8,025,000
4,646,000
8,069,000
7,453,000
8,321,000
112
108
63
109
101
112
1,693,000
1,776,000
1,757,667
1,742,333
1,622,000
1,515,000
65
68
67
67
62
58
40,270,000
30,851,000
30,328,000
109
9,419,000
7,845,000
7,603,000
127
114
103
1,074,833
863,834
587,333
41
35
22
1921.
593
FEDERAL RESERVE
M A T , 1921.
CRUDE PETROLEUM.
[U. S. Geological Survey. Barrels of 42 gallons each. Monthly average, 1911-1913=100.]
Production.
RelaEast of
tive. California.
Barrels.
1920.
March
July
August
September
October
Stocks at close of month
(barrels).
35,831,000
187
38,203,000
39,055,000
37,532,000
39,592,000
199
204
196
207
), 355,000
5,155,000
>, 584,000
Production.
California.
22,149,000
21,874,000
21,265,000
Barrels.
Stocks at close of month
(barrels).
RelaEast of
tive. California.
California.
1920.
November
December.,
38,699,000
38,961,000
202
203
92,015,000
94,919,000
21,272,000
20,930,000
1921.
January..
February.
March
37,853,000
35,348,000
40,802,000
197 95,838,000
198 100,147,000
213 105,797,000
21,261,000
21,566,000
22,896,000
TOTAL OUTPUT OF OIL REFINERIES AND STOCKS OF OIL.
[Bureau of Mines.]
OUTPUT, BY MONTHS.
Crude oil run
(barrels).
1920.
February
July
August
September
October
November
December
January
February
1921.
Gasoline
(gallons).
Kerosene
(gallons).
Gas and fuel Lubricating
(gallons).
(gallons).
29,208,723
322,588,697
194,523,334
589,684,857
74,243,073
37,024,052
39,757,770
40,549,316
40,687,250
39,458,945
40,485,409
423,419,770
444,141,422
453,881,096
465,787,745
452,642,125
464,393,356
172,213,511
189,010,459
199,140,024
213,742,156
214,804,177
210,668,109
751,193,898
834,322,503
836,700,086
823,114,603
822,638,305
859,131,359
92,369,504
91,078,569
86,230,371
93,229,723
91,180,007
90,894,798
39,637,382
34,588,096
460,432,439
388,188,252
205,374,611
163,081,918
836,684,040
732,542,415
85,908,641
72,432,219
STOCKS AT CLOSE OF MONTH.
1920.
Feb. 29..
13,500,599
562,996,489
330,120,942
590,322,125
132,759,244
July 31..
Aug. 31..
Sept. 30.
Oct. 31..
Nov. 30.
Dec. 31..
17,086,253
17,960,558
18,830,079
19,237,730
21,373,945
21,280,580
413,279,319
323,239,991
288,195,394
301,283,731
354,835,764
462,381,837
410,853,047
378,548,791
379,300,705
383,828,239
398,991,592
393,070,923
655,152,293
708,608,472
771,126,965
799,024,084
808,802,516
837,404,414
131,866,455
130,797,810
130,449,829
136,194,914
142,180,775
160,522,477
21,064,124
22,411,819
571,983,793
680,540,351
418,747,781
430,045,193
921,028,127
993,127,328
183,813,205
201,627,558
1921.
Jan. 31..
Feb. 28.
IRON AND STEEL.
[Pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute. Monthly average, 1911-1913=100.]
Pig-iron production.
Steel-ingot produc-
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative. Gross tons. Relative. Gross tons. Relative.
April
1920.
July
August
September
October
November
December
January
February
March
April
1921.
2,739,797
118
2,638,305
113 10,359,747
197
3,067,043
3,147,402
3,129,323
3,292,597
2,934,908
2,703,855
132
136
135
142
127
117
2,802,818
3,000,432
2,999,551
3,015,982
2,638,670
2,340,365
120 11,118,468
128 10,805,038
128 10,374,804
129 9,836,852
113 9,021,481
100 8,148,122
211
205
197
187
171
155
2,416,292
1,937,257
1,595,522
1,193,041
104
90
69
51
2,203,186
1,749,477
1,570,978
1,213,958
7,573,164
6,933,867
6,284,765
5,845,224
144
132
119
111
94
594
FEDEBAL BESEBVE BULLETIN.
MAY,
1921.
STRUCTURAL-STEEL ORDERS AND SHIPMENTS.
[Bridge Builders and Structural Society.]
Fabricated structural steel con- Structural-steel orders and shipments of
tracted
for
the membership of Bridge Builders
throughout
and Structural Society.
country.
Orders.
Per cent
shop
capacity.
Tonnage.
1920.
March
Per cent
shop
capacity.
Tonnage.
Tonnage.
Per cent
shop
capacity.
150,400
83.5
50,598
69.0
49,434
67.5
90,400
72,000
77,400
45,600
49,200
47,000
50.0
40.0
43.0
25. 5
27.5
26.0
33,213
36,843
26,755
14.161
41,531
14,521
47.0
50.0
37.0
20.0
16.0
20.0
49,096
51,381
53,526
47,200
41,268
42,767
69.0
70.0
74.0
66.0
57.5
60.0
32,000
25,600
52,300
18.0
14.0
29.0
12,194
12,013
26,398
18.0
18.5
38. 0
32,964
25,776
30,011
48. 5
40.0
43.0
July
August
September
October
November
December
1921.
January
February
March
Shipments.
IMPORTS OF P I G TIN.
[Department of Commerce. Monthly average, 1911-1913=100.]
Pounds.
March
1920,
July
August
September
October
Relative.
11,980,019
132
17,584,167
11,195,937
9,596,819
6,741,331
193
123
106
74
Pounds.
1920.
November.
December..
January...
February.
March
1921.
Relative.
9,550,535
5,893,627
105
65
2,584,347
5,269,969
3,028,356
62
33
RAW STOCKS OF HIDES AND SKINS.i
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
1920.
Mar. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31
1921.
Jan. 31
Feb. 28
Mar. 31
Cattle
hides.
Calfskins.
Kipskins.
Goat and
kid.
Cabretta.
Sheep and
lamb.
Pieces.
6,558,300
Pieces.
1,930,218
Pieces.
966,850
Pieces.
16,436,848
5,926,708
6,770,509
7,158,751
7,793,762
3,542,388
3,850,183
3,492,653
3,271,905
1,083,193
1,377,998
1,422,608
1,305,776
13,408,277
12,147,070
11,231,086
11,721,505
Pieces.
2,047,519
2,197,149
2,104,133
2,234,027
2,685,670
11,235,417
13,626,406
12,705,767
13,773,089
7,899,138
7,940,359
7,806,867
3,086,862
3,157,723
3,060,144
1,381,748
1,375,110
1,241,984
10,870,210
9,798,311
8,652,171
2,155,200
1,941,832
1,579,457
13,184,052
12,489,855
12,970,857
Pieces.
9,227,252
i Includes hides and skins in transit. The number of firms reporting increased in the autumn of 1920 as follows: Sept., 1,307; Oct., 1,915;
Nov., 2,027; Dec, 2,059.
TEXTILES—COTTON AND SILK.
[Cotton, Bureau of the Census; silk, Department of Commerce. Cotton, monthly average, crop years 1912-1914=100; silk, monthly average,
1911-1913=100.]
Cotton consumption.
Bales.
1920.
March
July
August
September
October
Relative.
Cotton
spindles
active
during
month.
Pounds.
Bales.
Relative.
575,789
128 34,697,812
2,491,651
122
525,489
483,193
457,647
399,837
117
107
102
89
2,581,920
2,690,690
1,968,801
1,531,850
126
132
96
75
34,666,794
34,471,515
34,040,806
33,669,804
Cotton consumption.
Imports of raw silk.
Relative.
Cotton
spindles
active
during
month.
Imports of raw silk.
Pounds.
Relative.
1920.
November
December
332,057
294,851
74
66
31,654,126
29,879,402
1,319,995
972,011
65
48
1921.
January
February
March
366,270
395,563
437,933
81 31,509,021
94 32,458,528
97 32,104,946
708,897
2,327,949
2,201,633
35
122
108
MAY, 1921.
595
FEDERAL RESERVE BULUETIN.
TEXTILES—WOOL.
[Wool consumption, Bureau of Markets; idle wool machinery, Bureau of the Census.]
Percentage of idle machinery on first of month to
total reported.
Looms.
Consumption
(pounds). 1
1920.
April
July
August
September
October
November
December
January
February
March..
April
. .
Percentage of idle hours on first of month to total
reported.
Spinning spindles.
Looms.
Spinning spindles.
Sets
Sets
Wider
Wider
Combs.
of
of
Combs.
than 50- 50-inch
than 50- 50-mch
reed
cards.
cards.
reed
inch
inch
Woolen.
Woolen. Worsted.
Worsted.
space
space
reed
reed
space. or less.
space. or less.
66,935,318
13.1
16.9
9.6
7.1
9.5
7.0
37,097,077
38,054,708
36,297,221
38,443,688
28,096,047
42.5
49.5
51.8
49.0
46.9
51.2
32.3
29.9
34.8
34.9
37.7
44.8
38.0
39.6
39.6
38.3
39.5
50.3
35.0
33.4
37.3
26.3
32.8
41.4
42.0
45.5
44.6
43.2
42.8
51.7
32.7
37.6
38.0
26.0
34.8
42.7
54.1
59.7
47.7
00.4
45.9
57.1
38.4
51.0
46.7
53.9
38.5
53.4
57.0
53.9
43.1
36.1
49.2
48.7
41.7
34.4
58.1
56.5
46.2
33.0
52.9
43.8
28.3
18.7
59.4
58.9
47.2
32.3
50.8
43.0
33.0
21.8
66.7
60.0
45.3
38.3
71.2
66.7
57.1
47.3
66.1
64.3
50.6
35.8
62.9
51.0
26.2
11.3
68.4
64.5
50.5
34.1
65.2
55.3
37.9
25.7
1921.
1
Converted to grease equivalent basis.
PRODUCTION OF WOOD PULP AND PAPEU.
[Federal Trade Commission.]
Wood
pulp.
1920.
March
July
August
,
September..
October
November..
News- Book.
print.
Net
Net
tons.
tons.
327,143 127,847
312,334
305,965
293,913
319,877
326,041
Paper Wrapboard. ping.
Fine.
Net
Net
Net
tons.
tons. tons.
95,851 207,863 68,403
Net
tons.
33,671
1920.
December...
Net
Net
tons.
tons.
302,527 124,857
Net
tons.
54,308
Net
tons,
27,233
73,487
75,226
70,917
73,100
65,920
34,078
33,122
34.207
34,526
31.208
1921.
January
February
March
275,353 123,830 64,382 105,806 44,620
243,797 103,040 56,687 123,832 46,352
~!62,332 107,532 59,832 139,723 49,879
22,756
19,242
19,058
129,853 95,526 218,771
128,818 94,424 215,633
121,005 94,142 218,743
124,818 93,849 196,604
122,993 89,564 133,818
Wood
Pulp-
News- Book.
print.
Paper Wrapboard. ping.
Net
Net
tons.
tons.
76,093 105,227
Fine.
OUTPUT OF LOCOMOTIVES AND CARS.
[Locomotives, reports from individual producers; cars, Railway Car Manufacturers' Association.]
Locomotives.
Domestic
shipped.
March
1920.
Foreign
completed.
Domestic.
Foreign.
Number. Number. Number. Number.
45
59
3,053
2,040
122
114
126
198
204
July
August
September
October
November
54
125
69
106
73
Locomotives.
Output of cars.
2,731
3,409
3,955
6,309
6,243
434
1,210
1,103
684
985
Domestic
shipped.
Total.
Number.
5,093
1920.
December
3,165
4,619
5,058
6,993
7,228
1921.
January
February
March.
Output of cars.
Foreign
completed.
Domestic.
Foreign.
Total.
Number. Number. Number.
7,551
198
93
Number.
1,420
Number.
8,971
843
518
705
8,012
7,000
6,746
154
108
112
71
70
49
7,169
6,482
6,041
VESSELS BUILT IN UNITED STATES, INCLUDING THOSE FOR FOREIGN NATIONS, AND OFFICIALLY NUMBERED BY
1 H E BUREAU OF NAVIGATION.
[Monthly average, 1911-1913-100.]
Gross
Number. tonnage.
Relative.
March
July.
August
September
October
November
Gross
Number. tonnage. Relative.
1920.
170
279,709
173
178
135
120
119
217,239
259,210
261,962
227,162
213,966
1,157
1,073
1,084
940
885
December
January
February
March
1920.
87
176,903
732
216,280
121,404
154,864
895
538
641
1921.
596
FEDERAL RESERVE BULLETIN.
MAY,
1921.
TONNAGE OF VESSELS CLEARED IN THE FOREIGN TRADE.
[Department of Commerce. Monthly average, 1911-1913=100.]
Net tonnage.
American. Foreign.
1920.
March
2,040,031
2,040,538
July
August
September
October
November
3,302,538
3,616,267
3,421,531
3,500,312
3,302,367
3,616,052
3,929,602
3,513,599
3,756,512
2,868,294
Total.
Net tonnage.
PercentRela- age Relative. Ameri- tive.
can to
total.
American. Foreign.
Total.
PercentRela- age Relative. Ameri- tive.
can to
total.
1920.
4,080,569
100
50.0
189
6,918,590
7,545,869
6,935,130
7,256,824
6,170,661
169
184
170
177
151
47.7
47.9
49.3
48.2
53.5
180
181
186
182
202
December
1921.
January
February
March
2,785,615
2,949,416
5,735,031
140
48.6
183
2,191,201
2,017,303
2,097,843
2,454,617
2,149,300
2,396,309
4,645,818
4,166,603
4,494,152
114
109
110
47.2
48.4
46.7
178
183
176
N E T T O N - M I L E S , REVENUE AND NONREVENUE.
[United States Railroad Administration; March, 1920, on Interstate Commerce Commission.]
1920.
February
32,958,000,000
July
August
September
October
40,450,094,000
42,706,838,000
40,999,843,000
42,562,687,000
November
December
January
February
1920.
37,458,630,000
34,722,365,000
1921.
29,817,000,000
24,915,000,000
Thirty-eight representative mills which reported for February and March furnish the
The total production of winter and summer lata for the following tables:
underwear for the 6 months ending March 31
[In dozens.]
was as follows:
REPORT OF KNIT-GOODS MANUFACTURES.
February March
(38 mills). (38 mills).
Actual Per cent
Number producof
of mills
tion
normal.
reporting. (dozens).
October
November..
December..
1920.
393,422
191,831
98,671
50.4
23.2
11.0
Unfilled orders 1st of month.. 588,127
New orders
205,260
Shipments
175,226
1,619
Cancellations
Production
147, 822
269,104
284,712
266,823
5,173
261,934
Gain.
Loss.
319,023
79,452
91, 597
3,554
114,112
FINISHED COTTON FABRICS.
The National Association of Finishers of
Cotton Fabrics, at the request of the Federal
Reserve Board, have arranged for a monthly
survey within the industry. The results of
the inquiries are herewith presented in tabular
form. The secretary of the association makes
Order and production report for month end- the following statement concerning the tabulaing March 31, 1921, follows. The number of tion:
mills reporting was 46.
The accompanying figures are compiled from statistics
1921.
January
February
March
Winter underwear (March)...
Summer underwear (March)..
148,023
248,431
421,140
102,415
318, 725
Unfilled orders 1st of month
New orders received during month
Total (A)
furnished by 34 out of 58 member firms of this association.
It is probably fair to state that in the absence of having
Per cent specific detail at hand, but according to our best estimate,
normal it is probably well within the fact that the figures given
Dozens. of
produc- for the various classes of work would cover approximately
tion.
the following percentages of the entire industry: White
goods, 72 per cent; dyed goods, 62 per cent; printed goods,
273,962
32 per cent. The figures given represent reports from
371,657
61.5 exactly the same finisher^ for the two months, both for the
totals and for the subdivisions and, therefore, are strictly
645,619
comparable.
285,537
47.3
NOTE.—Many plants were unable to give details under
5,389
0.89
the respective headings of white goods, dyed goods, and
290,926
printed goods, and reported their totals only; therefore
the column headed "Total" does not always represent
354,693
52.1 the total of the subdivisions, but is a correct total for the
315,159
district.
Shipments during month
Cancellations during month
Total (B)
Balance orders on hand Mar. 1 (A minus B)
Production
16.4
28.0
50.1
31.0
62.5
MAY,
1921.
597
FEDERAL RESERVE BULLETIN.
PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS.
February, 1921.
Total finished yards billed during month:
Districtl
2..
3
5
6
8
Total
Total finishing charges billed during m«nth:
Districtl
2
3
5
6
8
.
Total
Total average per cent of capacity operated:
Districtl.;.
.......
2..
3
5
6.. .
8
Average for all districts .
White
goods.
Dyed
goods.
9,201,380
5,553,700
4,520,032
4,698,536
126,265
12,009,687
1,070,187
3,231, 582
24,034
380,241
5,145,619 28,279,941 14,560,030 19,056,336
359,555 12,415,909 7,425,289 2,461,016
8,291,903 6,246,321 5,449,031
76,348
4, 722, 570 5,500,003
457,629
506,506
86,151
1,220,042
7,804,941
4,323,519
45,046,635
21,695,892
12,533,513
5,576,351
543, 780
1,336,450
24,099,913
16, 715, 731
5,505,174
55,436, 871 33,817, 794 27,500,360
12,128,460
86,732,621
$182,214
110,950
143,350
96,080
2,360
$502, 706
36,629
123, 713
347
16,973
$239,014 $1,015, 721
288,014
9,225
277,460
96,427
19,333
15,961
$276,003
119,672
188,596
106,373
1,808
$814,343
60,916
221,512
1,351
19, 829
$374,326
186,977
$1,654,083
553,920
425,235
107,724
21,637
20,307
$534,954
$680,368
$248,239
$1,712,916
$692,452
$1,117,951
$561,303
$2,782,906
50
73
66
73
57
34
41
30
54
46
58
51
73
34
46
63
77
87
96
68
49
62
44
85
59
79
71
96
39
57
61
50
34
51
75
64
50
67
12,517,785 18,675,645
7,302,473 3,970,174
7,115,387 5,122,275
6, 743,059
116,232
126, 760
408,843
8,453,394
6, 780,303
43,461,754
22,908,747
13,007,284
6,859,291
535,603
1,569,920
28,293,169
15,233,697
88,342,599
6,095
5,424
4,426
1,603
5,938
140
2,512
2,612
24,261
12,299
7,306
3,193
Total gray yardage of finishing orders received:
District 1
10, 745,070 16,816,715
2.
6, 396,320 2,976,397
3
7,365,939 5,036,959
5
4,689,469
45,178
6
65,706
328,072
8
Total
Number of cases of finished goods shipped to
customers (case equal approximately 3,000
yards):
District 1
2
3
5
6.
8
Total
Number of cases of finished goods held in storage at end of month:
Districtl.
2
3
5
6
8
Total
Total average work ahead at end of month
(expressed in days):
Districtl.
.
.
2
3
5
.. .
6.
...
.
8
Average for all districts
March, 1921.
29,262, 504 25,203,321
Printed
goods.
Total.
7,084,145 37,372,981
5,162, 723 19,212,796
13,205,870
4,734,647
393,778
1,281,734
12,246,868
White
goods.
76,201, 806 33,805,464
Dyed
goods.
Printed
goods.
Total.
4,662
4,079
3,576
1,464
3,399
94
1,956
1,818
16,650
9,455
5,777
2,685
13,781
5,449
1,818
34,943
17,548
8,590
2,612
47,457
3,879
2,309
216
457
3,198
145
310
3,196
18,506
6,354
5,059
1,560
3,581
1,968
189
433
3,102
214
278
2,323
16,829
6,029
4,824
1,346
6,861
3,653
3,196
32,788
6,171
3,594
2,323
30,324
7.3
12.0
11.0
6.1
6.8
6.8
6.3
7.8
16.0
7.2
13.0
8.4
6.1
2.2
8.1
5.8
16.0
16.0
8.2
7.0
8.5
8.1
7.0
17.0
6.5
12.0
11.0
8.2
2.1
6.0
8.8
6.7
9.1
8.5
10.0
7.5
8.6
8.4
376
398
i, 309
1,296
598
FEDERAL RESERVE BULLETIN.
RETAIL TRADE.
In the following tables is given a summary
of the data obtained from representative department stores in each Federal Reserve district, showing the activity of retail trade during
the past several months. In district Nqs. 1, 5,
6, 7, 9, 11, and 12 the data were received in
(and averages computed from) actual amounts
(dollars). In districts Nos. 2, 3, 4, 8, and 10 the
material was received in the form of percentages, the 1921 averages for the cities and districts computed from such percentages being
MAY, 1921.
weighted according to volume of business done
during the calendar year 1920, and the averages
for the several months in 1920 by similar
figures for the calendar year 1919. For the
month of March the tables are based on reports
from 24 stores in district No. 1, 37 in district
No. 2, 47 in district No. 3, 15 in district No. 4,
25 in district No. 5, 11 in district No. 6, 19 in
district No. 7, 11 in district No. 8, 19 in district
No. 9, 16 in district No. 10, 18 in district No.
11, and 28 in district No. 12. The number of
stores varies somewhat, due to the inclusion of
new stores from time to time in the reporting list.
CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS.
Percentage of increase in net sales as compared with corresponding period previous year.
District and city.
District No. 1:
July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
15.9
16.9
11.1
6.5
1.5
19.9
15.1
15.2
10.1
10.4
7.6 13.6 16.5 U . l
18.9 5.9 U.5 9.5
15.8
1.3
22.4
26.9
13.0 3.6
27.1 23.4
5.2
19.6
3.0
11.6 11.6 15.3
1.0
14.6
24.4
17.5
10.2
10.0
10.0
5.5
2.9
12.0
18.5
9.1
21.6
2.9
3.3
4.4
1.7
2.0
2.1
3.6
2.0
0.1
2.2
19.9
10.9
15.4
.6
11.4
10.9 13.2
26.4 16.9
1.7
15.4
15.9
3.6
6.2
1.7
8.5
8.5
Outside
District
24.1
18.1
16.0
14.7
15.0
9.1
District No. 3:
"District No 4
District No. 5:
16.3
27.2
11.6
24.4
5.4 10.8
1.4
16.4 U0.1 16.0
1.4
District No 6
District No 7
District No. 8
District No. 9
District No 10
District No. 11
District No. 12:
Los Angeles
San Francisco
Oakland
Seattle
Spokane
Salt Lake City
District
1
Decrease.
1.5
10.8
2.9
3.3
3.4
4.7
.9
4.6
1.8
23.8
22.6
15.2
15.8
8.5
6.1
3.1
3.8
29.9
25.7
24.6
20.8 26.1
14.7
3.6
6.4
5.9
14.2
9.7
11.0
9.0
8.5
5.4
7.7
5.0 110.1 19.1
7.7
2.7
3.2 16.5 14.6
14.3 U.5
1.6
14.5
.7
13.4
24.9
19.6
17.3
14.6
14.1
3.1
29.9
27.3 25.9
23.9
24.8
22.0
3.6
5.9
14.2
15.9
5.5
9.4
5.4
8.6
2.7
15.7
21.1
14.1
13.6
13.5
10.4
14.6 3.0 19.0 1.4
17.6 9.6 U0.5 15.4
10.8 5.3 13.8 13.1
2.9
.5 U2.3 17.0
9.2 15.1 U1.6 4.1
12.7 12.9 18.9 14.6
15.6
13.2
1.7
111.2
16.1
116.0
11.6
41.2
19.6
29.6
18.0
16.9
35.5
16.8
19.7
32.6
16.5
18.8
24.2
13.8
3.8
12.9
17.9
15.3
18.1
13.3
7.6
.7
10.5
35.1 48.9 29.1 19.3 31.2 13.7 17.1 14.6 9.9
21.0 18.6 10.4 11.5 9.9 13.8 U2.1
.4 13.1
.9
16.9 15.3
22.0 7.2
U0.4 8.2
16.2
9.9
20.1 3.1
*2.*3" U6.8
. 2 18.0 14.5 114.6 U4.6 U8.7 123.4 12.4 U4.6
4.6
22.7 12.7
4.6
5.6 11.5 110.1 12.2
8.9 14.7
9.1
20.6 11.6
1.6 15.2
1.7
35.1
21.0
16.9
20.1
15.7
20.9
11.6
41.2
27.6
33.2
20.8
"ii.*6* 8.8
14.1 9.9
25.9 25.6
21.2
21.7
7.5
12.4
12.6 25.1
28.6 8.3
11.8 10.5
.3 12.9
7.8
12.4 16*. 0
14.5
8.2
13.1
4.9
11.3 14.3 U4.3 12.4
.6
15.3 13.5
23.8
5.3 12.2
14.2 6.3
8.4
1.5
14.1 14.2
25.9 25.2
11.1 5.2
20.9 21.6
21.4
19.8
16.8
14.8
4.3
1.9
9.3
4.0
4.6
4.2
8.8
9.4
10.8
5.4
6.4
5.2
19.0
110.5
13.8
112.3
U1.6
18.9
42.4 37.9 33.9 33.7 28.5 17.1
19.6 17.3 15.4 11.7 8.7 112.1
14.7
21.3 18.2
U0.4
13.3
16.1
"*7."6" 116.8
. 2 14.4 14.2 17.3 19.2 U l . l 123.4
9.4
8.6 U0.1
22.7 16.8
8.4
14.0 12.2 14.6
1.6
20.6 16.1
21.2
5.5
16.2
3.5
9.3
4.0
Other cities
District
July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
2.1
1.9
16.3
27.2
District No. 2:
N. Y. City and Brooklyn. 22.4
26.9
District
Jan. 1,1921, to
close of—
J u l y l ,1920, to close of—
5.6
7.4
15.4 14.7
13.3
14.7
13.7 11.7
110.9 111.8
11.8 13.9
18.4 111.4
13.3
16.5
12.2
11.9
14.3
9.8
14.2
19.3 1 15.6
1.9
1.3
6.0
5.0 U4.3 15.9
1.6
MAT,
1921,
599
FEDERAL RESERVE BULLETIN.
CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS—Continued.
Percentage of increase in stocks at close of month compared with—
Same month previous year.
District and city.
Previous month.
July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar., July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921. 1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
District No. 1:
Boston
Outside
32.1
30.4
26.3
26.4
20.7
21.7
9.5
15.9
31.5
26.4
21.0
11.6
8.2
District No. 2:
N. Y. City and Brooklyn. 46.2
Outside
30.9
30.7
26.3
18.0
20.2
29.3
18.7
District
District
39.5
13.7 118.2
3.7 110.3
17.0
.2
4.9
3.2
9.0 118.2 114.5
9.5 14.2
3.0 12.0 120.5 18.2
9.7
15.5
15.4
16.6
15.7
110.7 11.6 116.0
14.7
4.3
9.5
118.9 112.7
15.5
16.4
17.2
15.6
5.1 12.3 19.5 116.5 123.2
3.8 112.7 120.0 123.0 U7.9
14.3
4.6
7.3
5.6
5.7
9.3
1.0 14.8 120.4 18.1
1.4 17.0 124.0 16.1
6.3
1.3
8.3
9.0
16.7
4.6
14.5 112.0 117.8 122.0
1.5
6.8
6.9
15.6 121.1 17.6
5.3
8.5
115.5 113.8
i4.'l 120.0 17.4
4.2
9.5
5.4
7.3
District No. 3:
Philadelphia
Outside
7.1 11.7 110.7
10.6 2.0 110.6
5.7
17.4
District
28.4
31.0
20.6
16.0
10.1
DistrictNo.4
48.3
40.4
34.0
34.9
22.5
1.7
1.9 111.7 !20.4
110.8 112.4 114.3
4.4
14.6 111.9 119.0
3.3
6.2
8.4
.9
14.7 117.3 111.5
5.6
5.9
11.6 14.0 113. 2 117.1
11.4
9.4
9.2
4.8
16.4 120.0 !14.6
3.1
7.9
115.2
118.7
132.1
7.7
6.9
9.8
8.8
7.8
7.1
13.9
10.1
17.7 125.5 116.2
8.9
8.4
6.0
1.4
1.8
4.4
9.2
9.6
J
19 7 124.0 128.2
116.6
19 8
128.6 129.9 !26.2
120.3 121.4 122.6
District
44.6
14.2 122.2 124.8 125.9
29.6
21.1
15.1
5.3
District No. 6
District No. 7
District No. 8
District No. 9
District No. 10
DistrictNo.il
39.8
64.1
24.2
12 6 17.7
43.6 39.1
69.5 59.5
37.2
55.5
35.4
22 6
29.1
52.8
30.1
51.7
30.5
12 0
25.0
42.3
16.3
39.7
17.0
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle ..
Spokane
Salt Lake City
47.5 31.2 33. 4 21.6 16.4 129.7
43 1 27 1 16 2 15 4 8 0 19 6 1 9 3
121.1
8.3
3.8
27.7 22.5
"i*3.*6*
11.4
17.5 1
l
112.3
2~lA
23*4* 18 4
. 5 4. 4
39
40.1 33.6 112.2 13.6
45.8 45.5
12.7
51.6
70.1
District
40.1
25.3
20.6
15.6
1.2
27.7
16.2
1
35
7.1
11.8 9.4
31.5 8.8
20.1
.3
18.3
115. 5
9.9
x
10 9
114.9
112. 9
.4
113.9
113.1
111.5
123.1
118.2
U5. 5
]
12.7
U4.3
19.8
!14. 8
120.9
117.7
District and city.
July 1 , 1920, to close of—
District
District No. 2:
New York City and
Brooklyn
Outside
District No. 3:
Phil ad pin hia
Outside
2.3
10.2
5.6
8.4
14.7
8.9
8.3
5.4
14.6
5.6
13.1
4.8
11.6
2.9
9.8
22.3
.8 16.7 130. 8
1.0 15.9 x24.0
1.8 14.3 118.8
. 5 14.2 118.7
6.9
4.6 11.9 15.0 123.9
6.6 13.0 19.3 128.8
1.2
10.1
5.0
6.2
6.4
9.3
6.2
3.1
7.7
6.8
3.1
17.6 121.6
13.4 114.3 14.1
4.5
Jan. 1, 1921, to
close of—
1.8
.7
4.9
1.2
2.2
Ratio of outstanding orders at close of month to total
purchases during previous calendar year (per cent).
Julv, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
419.2 447.1 412.7 388.4 368.4 329.9 270.2 325.3 300.7
436.4 472.1 485.9 482.6 456.6 452.0 392.9 473.7 445.8
18.5
13.7
14.2
11.4
14.7
7.5
5.4
9.1
10.8
10.4
5.1
4.5
7.4
8.6
11.2
425.1 455.1 433.5 415.6 398.6 357.9 297.2 358.1 332.5
12.0
14.0
13.1
9.1
7.7
4.8
8.1
6.4
390.0 489.3 613.7 479.4 464.1 361.1 315.8 323.3 310.1
485.8 50G.3 492.1 441.3 430.6 347.7 351.3 350.6 407.7
15.7
18.9
16.8
14.3
14.7
12.0
9.2
6.6
6.9
4.1
5.3
3.1
5.5
4.1
7.3
7.2
7.1
5.7
440.1 496.7 573.9 466.9 452.3 358.0 325.0 328.7 330.6
17.4
15.9
13.6
8.1
5.5
4.5
5.1
7.3
6.7
4.7
2.9
4.9
4.1
4.4
4.8
7.9
6.2
7.6
6.1
4.0
4.6
4.6
7.5
7.3
5.9
4.7
7.1
7.0
7.7
360.4 322.6 281.9 314.3 330.5
520.5 458.6 479.3 508.7 465.8
399.8 471.2 500.3 437.2 418.0 371.1 357.6 365.6 361.9
19.8
14.2
10.1
DistrictNo.4
403.6 412.7 468.8 466.8 452.1 398. 5 306.4 353.6 345.9
18.9
17.0
13.3
1.8
11.8
13.3
18.8
il.l
17.9
1.4
6.6
District
1 Decrease,
.1
14.2 145.4 3.6
.5
6.1
1.8 114.7 19.0
13.1
110.9 4.2
123.1
12.9* 122.5 iii.T ""6.*6*
2.1
4.4
14.2 13.6
122.4
July, Aug., Sent.. Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
...
2.5
.2112. 4 112. 8
1.8 12.5 13.7
1.4
7.4 15.4
116.5 121.9
1.5
.6
127.8 127.2 12.9 2.3
.3
130.3
9.8
127*5" 133.8 "14.2" !. 9 "*6.*3* 2.8
1 2.7
1.8
9.1
114.0 120.9
115.1
Ratio of average stocks at close of each month to average monthly sales for same period (per cent).
District
.5
4.9
2.2
8.0
District No. 5:
Baltimore
Richmond
Washington
Other cities
District No. 1:
Boston .
Outside
11.8
5.9
7.6
3.6
5.7
600
FEDEKAL, EESEBVE BULLETIN.
MAT,
1921.
CONDITION OF RETAIL TRADE IN THE 12 FEDERAL RESERVE DISTRICTS—Continued.
Ratio of average stocks at close of each month to average monthly sales for same period (per cent).
District and city.
Ratio of outstanding orders at close of month to total
purchases during previous calendar year (per cent).
Jan. 1, 1921, to
close of—
J u l y l , 1920, to close of—
July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., Mar.,
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
District No. 5:
Baltimore
Richmond
Washington.
Other cities
311.8
403.5
351.2
407.1
341.6
403.1
370.9
434.3
324.5
354.4
341.3
402.2
505.9 560.7 512.9 489.0 454.5 386.6 344.5 368.7 343.2
District
District No. 6
District No. 7 . . .
District No. 8...
District No. 9
District No. 10
DistrictNo.il
. . .
District No. 12:
Los Angeles
San Francisco
Oakland
Sacramento
Seattle
Spokane
Salt Lake City
District
July, Aug., Sept., Oct., Nov., Dec, Jan., Feb., MarM
1920. 1920. 1920. 1920. 1920. 1920. 1921. 1921. 1921.
7.2
5.4
3.9
5.4
16.1
8.4
7.1
17.4 15.6
19.3 23.2
17.2
9.1
"13.7
384.1 334.0 340.4 343.3 526.8 466.3 480.8 450.3 359.2 15.6 9.7
425.5 523.9 454.0 416.7 383.7 357.6 395.7 363.6 18.6 12.7
14.8
11.0
15.7
9.2
8.8
10.0
6.9
5.1
6.1
12.4
3.1
4.1
522.5 454.2 486.0 462.5
539.9 512.8 511.5 511.9
625.1 598.3
732.5
387.4
423.3
470.2 532.7 508.0 502.5
652.6 675.5
579.0
403.9 381.6 • 307.8 549.1 405.3 387.3
432.7 427.9 410.7 371.0 431.7 391.0 544.3 404.4 360.2
377.0
432.6
396.8 324.4 245.1 336.5 407.9 388.6
6.5
5.5
4.2
4.4
.2.7
6.0
6,6
5.4
5.8
6.5
3.9
11.9
1.9
3.2
4.9
5.6
3.8
18.7
2.3
2.7
3.1
10.8
3.4
4.2
22.1
7.0
6.1
11.0
8.9
5.5
11.8
6.5
6.4
12.7
4.1
5.2
6.4
5.1
10.6
4.3
6.9
4.4
11.5
8.2
10.2
6.9
1.6
2.7
6.0
5.2
5.6
6.3
5.8
5.4
8.6
7.8
3.0
353.2
401.5
455.3
22.8
25.9
15.5
21.1
12.0
10.8
9.3
13.6
7.6
9.6
438.6
621.6
16.3
29.9
18.7
12.2
8.6
6.4
7.0
536.5 489.6 504.0 467.3 488.5 490.7 502.4 448.2 404.7
22.3
14.2
9.5
9.8
7.0
478.0 432.5 354.1 355.6
515.8 434.3 424.2 444.6
567.4
427.2 467.1
490.5
454.5 413.7 463.0 468.1
544.3 458.5 620.5 610.9
601.4
7.9
6.1
4.8
6.9
.1
?, 6
WHOLESALE TRADE.
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN MARCH, 1921, AS COMPARED WITH THE PRECEDING
MONTH (FEBRUARY, 1921).
Groceries.
District.
No.3
No.5
No.6
No. 10
No. 11
No. 12
Dry goods.
Hardware.
Boots and
shoes.
Furniture.
Stationery.
Drugs.
Farm implements.
Auto tires.
NumNumNumNumNumNumNumPer NumPer Number of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of
ber of cent.
cent. firms.
firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
+18.6
+ 8.6
+ 7.2
+19.5
-0.7
+20.9
50
9
10
4
4
30
+14.7
+35.6
+ 16.1
+28.5
+30.2
8 +35.2
13 + 6.0
+65.5
4 -29.3
11 +33.9
25
8 +53.4
8 +72.6
3
2
23 +68.4
8 -22.4
7
15 + 19.7
4
+ 7.3
19 + 14.3
4
12 + 1.3
20
-i8.4
2
+46.7
14
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN MARCH, 1921, AS COMPARED WITH MARCH, 1920.
Groceries.
District.
Hardware.
Shoes.
Furniture.
Drugs.
Stationery.
Farm implements.
Auto tires.
NumNumNumNumNumNumNumPer NumPer Number of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of Per ber of
ber of cent.
cent. firms.
firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
No.3
-27.9
No. 4 . . . . - 3 3 . 1
N o . 5 . . . . •- -23.9
N o . 6 . . . . -33.6
No. 7 . . . . -25.0
No. 10... -22.7
-42.1
No. 1 1 . .
No. 12... - 7 . 3
Dry goods.
50
14
9
10
22
4
4
30
-14.9
-38.3
-41.7
-35.9
-34.0
-29.1
-19.2
6 -16.3
8 -24.1
13 -45.6
13
-34.3
4 -37.7
11 -33.6
25
7
8 -25.4
8 -37.6
-31.6
3
2
23 -16.0
8 -66.5
7
10
4
16 -30.6
19
-29.2
5
-29.1
10.4
4
12
-9.7
24
-88.0
2
-47.4
15
MAY,
1921.
601
FEDERAL, RESERVE BULLETIN.
COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES.
The foreign index numbers published below
are constructed by various statistical offices
according to methods described in most cases
in the BULLETIN for January, 1920. A description of the method used in the construction of
the Swedish index number appeared in the
BULLETIN for February, 1921, for the new
Italian index number in the April, 1921, issue
of the BULLETIN, and the method used by the
Frankfurter Zeitung in the case of the German
index number was described in the BULLETINS
for February and March, 1921. Complete
information regarding the computation of the
United States Bureau of Labor Statistics appears in the publications of that bureau, and a
description of the index number of the Federal
Reserve Board may be found in the BULLETIN
for May, 1920. The new British index number,
compiled by the Board of Trade, will be found
on p. 602 of this issue of the BULLETIN. It is
not included in the table below as it can not be
referred back to a definite prewar base. In the
case of the two American index numbers, 1913
is used as the basis in the original computations. In the other cases in which 1913 appears
as the basis for the computation the index
numbers have been shifted from their original
bases. The computations in these cases are,
therefore, only approximately correct. In a
few cases July, 1914, or the year immediately
preceding that, is used as the base. The figures
are for the most part received by cable, and the
latest ones are subject to revision. In cases
where the index numbers were available they
have been published for the war years in various
issues of the BULLETIN in 1920.
In the following table the all-commodities
index numbers for the whole series of countries
appear together to facilitate the study of
comparative price levels.
INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES).
United
States;
Federal
Reserve
Board
(88 commodities)^
1913
1914
1915
1916
1917
1918
1919
1920
United
United
States;
KingBureau of dom;
Labor
Statist
Statistics (45 com(328 quo- moditations).a ties). &
Italy;i
France;
Prof.
Bulletin
de la Sta- Bachi (38
tistique commodiGenerate ties until
(45 com- 1920, 76
theremodiafter).&
ties)^
206
233
100
100
101
124
176
196
212
243
100
101
126
159
206
228
242
291
100
101
137
187
262
339
357
510
100
95
133
202
299
409
364
624
248
263
264
258
250
234
226
208
190
173
253
265
272
269
262
250
242
225
207
189
307
313
305
300
299
298
292
282
263
243
555
588
550
493
496
501
526
502
461
435
602
664
660
632
604
625
655
659
670
655
163
154
150
178
167
162
154
232
215
208
199
407
377
360
344
642
613
604
100
Germany;
Frankfurter
Zeitung
(77 commodities)^
Australia;
Japan; CommonSweden; Bank
wealth
of
Svensk Japan for Bureau
Handels- Tokyo
Census
(56
tidning
and Sta(47 quota- commoditistics
(92
ties)."
tions)^
commodities).«
2
100
101
110
135
177
206
217
246
321
300
272
248
239
235
230
226
221
206
209
217
225
233
234
236
230
215
208
197
258
261
263
258
256
244
241
234
225
214
198
200
210
206
209
209
208
206
194
180
201
195
191
190
196
192
181
208
199
194
178
174
183
100
96
97
117
147
192
236
259
1 615
] find
L 714
L 473
L 495
L 547
'tt9
1 604
1,670
1 681
354
354
361
366
363
365
362
346
331
299
1 626
1,495
1 440
1,429
267
250
237
229
100
Calcutta,
India;
Department of
Statistics
(75 commodities)^
100
141
132
6155
170
180
218
100
116
145
185
244
339
330
347
6
Canada;
Department of
Labor
(272
quotations)^
3
4
100
204
1920.
March .
April
Mav
j une
July. .
August
September
October
November
December.
1921.
January . .
February
March
April
1
a Average for the month.
& End of month.
c Middle of month.
d Beginning of month but not always the first.
Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p . 465 of
this
BULLETIN.
2
July 1,1913, to June 30,1914=100.
3 j u i v ^ 1914=100.
4
End of July, 1914=100.
In the following tables the index numbers for
individual groups of commodities are given
for each country separately. Reference should
be made to the preceding table for the "all
commodities" indexes. In the case of the
Italian group index numbers, Prof. Bachi's
5 Middle of 1914=100.
<* Last six months of 1917.
new computations only are given. These can
not be referred back to the 1913 base and it is
therefore impossible to compare present levels
with prewar levels in these cases. No group
index numbers are compiled by the Bank of
Japan.
602
FEDERAL RESERVE BULLETIN.
M A Y , 1921.
GROUP INDEX NUMBERS—UNITED STATES, BUREAU OF LABOR STATISTICS.
[1913-100.]
Farm
products.
Date.
...
Cloths and
clothing.
Fuel and
lighting.
Metals and Lumber
and
metal
building
products. material.
House
Chemicals
and drugs. furnishing
goods.
Miscellaneous.
Illl
1913
1914
1915
1916
1917
1918
1919
1920
Food,
etc.
189
220
234
218
100
103
104
126
176
189
210
239
100
98
100
128
181
239
261
302
100
96
93
119
175
163
173
238
100
87
97
148
208
181
161
186
100
97
94
101
124
151
192
308
100
101
114
159
198
221
179
210
100
99
99
115
144
196
236
366
100
99
99
120
155
193
217
236
239
246
244
243
236
222
210
182
165
144
246
270
287
279
268
235
223
204
195
172
356
353
347
335
317
299
278
257
234
220
192
213
235
246
252
268
284
282
258
236
192
195
193
190
191
193
192
184
170
157
325
341
341
337
333
328
318
313
274
266
205
212
215
218
217
216
222
216
207
188
329
331
339
362
362
363
371
371
369
346
230
238
246
247
243
240
239
229
220
205
136
129
125
115
162
150
150
141
205
198
192
186
234
218
207
199
152
146
139
138
239
222
208
203
182
178
171
168
283
277
275
274
190
180
167
154
1920.
March
April
May
June
July
August
September
October
November
December
1921.
January..
February
March
April
ALL COMMODITIES AND GROUP INDEX NUMBERS—UNITED KINGDOM, BOARD OF TRADE.
[1920=100.]
Cereals.
Meat
and
fish.
Other
foods.
Total
food.
Iron
and
steel.
88.0
81.6
82.0
94.8
86.2
83.8
88.6
79.0
69.5
Other
metals
Other
and Cotton. texmintiles.
erals.
Other
articles.
Total
not
food.
80.4
78.6
74.7
73.1
67.3
61.4
All
articles.
1921.
January
February
March
...
90.5
78.4
75.5
108.0
100.8
95.5
85.5
80.7
77.2
46.7
40.6
36.1
61.1
55.6
49.3
80.1
73.4
68.6
GROUP INDEX NUMBERS—UNITED KINGDOM, STATIST.
[1913=100.]
1913
1914
1915
1916 . .
1917
1918
1919 . .
1920 . . .
Vege- Ani- Sugar,
cof- Food- Min- Tex- Sun- Matetable m a l fee,
foods. foods. tea. stuffs. erals. tiles. dries. rials.
100
110
155
193
252
248
252
321
100
100
125
152
192
210
215
264
100
107
130
161
213
238
275
366
100
105
137
169
218
229
238
301
100
90
109
140
152
167
190
269
300
97
111
152
228
265
271
299
100
105
131
163
212
243
268
290
100
98
119
153
198
225
243
285
342
346
351
359
237
265
244
244
393
392
473
496
300
315
318
325
263
263
273
269
360
354
308
308
318
321
311
282
312
311
298
285
1920.
March.
April
May
June...
Date.
Vege- Ani- Sugar, FoodcofMin- Tex- Sun- Matetable mal
fee, stuffs. erals. tiles. dried. rials.
foods. foods. tea.
1920.
July
August... .
September
October
November.
December
1921.
January
February
March.
April
343
317
319
334
308
257
278
295
291
290
293
262
425
404
334
257
238
212
325
319
308
302
291
253
276
281
283
276
265
254
298
298
286
261
212
205
277
278
279
268
253
248
283
285
282
266
245
237
234
206
214
212
283
270
262
249
192
187
182
180
251
234
232
225
225
200
179
176
198
179
171
172
230
224
221
199
193
184
S3 tO
Date.
MAT, 1921.
603
FEDERAL RESERVE BULLETIN".
GROUP INDEX NUMBERS—FRANCE, GENERAL STATISTICAL BUREAU.
[1913=100.]
Raw
Ani- Vege- Sugar,
Foods Min- Tex- Sun- matem a l table coffee,
and
(20).
tiles.
erals.
dries.
rials
foods. foods. cocoa.
(25).
Date.
1913
1914
1915.
1916
1917
1918
1919
1920
..
1920.
March
April .
Mav.
June...
. ..
100
103
100
103
126
162
126
170
151
164
215
286
392
503
243
298
313
427
500
516
522
480
511
480
482
100
106
400
100
104
100
98
131
167
164
232
201
231
253
422
225
281
336
459
271
283
272
449
439
498
460
447
424
506
472
392
434
100
109
132
180
100
99
100
101
145
199
145
206
303
460
444
737
302
420
405
524
291
387
373
550
884
548
600
507
459
953
841
428
734
598
601
653
614
517
540
Raw
Ani- Vege- Sugar,
Foods Min- Tex- Sun- matemal table coffee,
tiles.
and
erals.
dries.
rials
(20).
foods. foods. cocoa.
(25).
Date.
1920.
501
370
August
September
October
November
December
533
519
515
421
390
360
1921.
January
February
March
April
406
389
515
531
483
452
405
432
422
377
355
359
412
399
544
334
317
337
338
322
337
367
359
469
432
487
475
468
469
442
424
453
424
385
397
378
341
300
366
364
289
281
746
500
548
737
715
524
540
558
558
637
510
475
527
498
471
528
476
444
460
398
445
422
375
314
415
378
382
371
355
328
GROUP INDEX NUMBERS—GERMANY, FRANKFURTER
ZEITUNG.
GROUP INDEX N U M B E R S - I T A L Y , RICCARDO BACH1.
[1920=100.]
[Middle of 1914=100.]
MinOther
Vege- Ani- Chem- Tex- erals, Building vegetable Suntable mal icals. tiles. and matermet- ials. pro- dries.
foods. foods.
als.
ducts.
Agricul- Textiles,
MiscelMinerals. laneous.
tural
products. leather.
1920.
1920.
Average for
the year
March
April
May
June
July
August
September
October
November
December
100
93.1
102.7
102.2
100.2
96.8
100.7
104. 8
107.1
107.7
106.9
1921.
January
February
".
March
106.7 120.
103.4 119.5
107.8 117.4
100
82.7
83.6
92.9
101.1
100.3
103.4
108.8
108.0
124.1
126.4
100
96.8
110.4
122.6
112.8
100.0
102.
100.1
103.4
107.7
102.8
98.1
100
115.6
130.8
101.9
90.
88.3
94.9
99.6
97.9
94.0
81.9
77.4
65.4
63.5
100
104.8
115.8
113.2
99.1
95.5
96.6
103.7
106.
101.4
92.7
88.2
79.5
72.0
100
82.2
96.4
101.8
106.3
108.4
109.9
109.9
112.8
112.6
112.6
100
102.4
99.8
97.2
95.
90.2
91.
97.
100.5
108.7
121.8
100
92.8
104.2
107.8
105.7
104.9
101.4
102.1
105.4
105.2
106-8
113.3 123.4 107.1
117.0 127.3 106.7
112.9 123.2 103.9
Beginning of—
April
May
June
July
August
September
October
November
December
1,186
1,178
1,125
1,283
1,309
1,318
1,344
1,450
1,555
4,114
3,243
2,670
2,561
2,643
2,807
2,943
3,025
2,698
1,888
1,860
1,528
1,552
1,566
1,650
1,734
1,678
1,636
1,417
1,417
1,642
1,625
1,617
1,608
1,592
1,658
1,625
1,353
1,265
1,204
1,195
2,643
2,507
2,371
2,153
1,678
1,580
1,552
1,608
1,575
1,525
1,517
1,500
1921.
Beginning of—
January
February
March
April
GROUP INDEX NUMBERS—SWEDEN, SVENSK HANDELSTIDNING.
[July 1,1913-June 30,1914=100.]
Date.
1913-14
1914 l
1915
1916
1017
1918
191°
1920
Vegetable
food.
Animal
food.
100
136
351
100
101
140
152
181
182
205
221
261
Ravr materials for
agriculture.
Coal.
Metals.
Building
material.
100
114
161
1C0
123
177
100
109
166
100
104
118
180
198
266
551
272
405
165
215
419
409
304
340
262
296
312
270
265
269
250
252
304
284
283
273
277
318
320
320
311
312
1921.
February
Mflrco
April
271
273
258
264
247
307
312
306
290
283
116
233
267
Textiles.
Oils.
100
118
158
100
103
116
100
111
120
229
206
166
247
149
212
398
258
275
286
300
308
278
371
67£
215
324
294
960
291
283
324
318
293
367
367
367
381
388
682
767
788
778
767
268
263
252
212
202
388
388
390
387
362
756
753
740
609
598
191
180
166
161
156
380
368
374
368
336
275
275
275
303
303
1,008
1,069
1,252
1,252
1,117
1,085
1,026
910
602
286
273
256
253
247
195
211
328
310
250
233
206
322
340
340
332
328
244
266
281
371
230
320
520
131
169
328
231
238
232
241
229
231
248
240
236
362
279
291
204
185
178
319
298
236
511
510
108
85
84
147
134
125
31?
268
264
* Average for § monthg ending Dec. 31,1914,
310
S08
309
303
301
100
Hides and
leather.
856
804
1,007
1920.
March
April
Mav
June
j u ly
Aucust
September
October
November
December
Wood
pulp.
510
604
MAT, 1921.
FEDERAL RESERVE BULLETIN.
GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH, BUREAU OF CENSUS AND STATISTICS.
[July, 1914=100.1
July,1914
1915
1916
1917
191«
1919
1920
March
April
May
June
July
August
September
October
November
December
January
February
Textiles,
leather,
etc.
Metals and
coal.
Date.
1
Groceries
and
tobacco.
Building
materials. Chemicals.
100
93
131
207
232
217
243
100
202
113
110
135
186
229
100
127
124
116
121
137
1S4
100
110
127
131
138
147
186
100
150
155
155
147
145
201
100
116
136
194
245
261
295
100
149
172
243
315
282
277
205
205
214
214
211
209
211
222
222
216
281
277
265
260
252
251
222
2?0
ISO
156
226
234
252
261
244
238
231
208
206
193
162
169
177
187
188
189
209
214
212
210
160
192
197
195
193
193
196
196
195
198
126
160
170
208
261
284
273
226
211
193
298
298
307
307
307
312
295
289
281
271
28C
297
297
283
282
270
276
255
252
I
!
!
215
214
!
203
145
132
107
197
192
176
208
206
207
197
197
198
191
184
178
279
303
303
?44
234
.
March
Dairy
products.
100
117
154
213
220
193
209
1920.
1921.
Agricultural
products.
GROUP INDEX NUMBERS—CANADA, DEPARTMENT OF LABOR.*
[1913=100.]
Date.
Grains
and
fodder.
Animals
Dairy
and
meats. products.
Fruits
and
vegetables.
Other
foods.
Hides,
Textiles. leather,
etc.
Metals.
Imple- Building Fuel and
ments. materials,
lumber. lighting.
Drugs
and
chemicals.
1913,
1914
1915
1916
1917
1918
1919
1920
100
114
136
142
206
231
227
263
100
107
104
121
161
197
199
198
100
100
105
119
149
168
192
204
100
99
93
130
233
214
206
261
100
104
121
136
180
213
222
258
100
102
114
148
201
273
285
303
100
105
110
143
168
169
213
191
100
96
128
167
217
229
173
203
100
101
106
128
174
213
228
245
100
100
97
100
118
147
171
268
100
94
92
113
163
188
201
255
100
106
160
222
236
250
205
1920.
March
April
May
June
July
August
September...
October
November...
December...
280
291
301
302
292
271
254
229
201
190
198
200
207
211
211
204
202
194
184
179
206
196
189
183
194
198
202
207
209
221
295
316
358
338
295
216
190
177
203
189
254
264
275
274
283
277
261
249
236
223
322
328
323
314
305
300
296
292
273
251
222
239
210
182
178
173
161
156
153
141
210
214
213
207
209
209
207
203
195
178
237
237
237
238
242
243
259
259
259
259
268
268
294
294
282
285
273
265
265
252
215
245
257
279
294
298
296
295
270
269
194
201
203
206
218
218
217
211
205
201
1921.
January
February
March
186
171
168
175
171
171
216
185
174
184
163
175
212
205
203
228
204
198
131
126
112
174
167
158
257
257
243
248
239
231
247
234
233
196
188
181
i Unimportant groups omitted.
GROUP INDEX NUMBERS—CALCUTTA, INDIA, DEPARTMENT OF STATISTICS.
[End of July, 1914=100.
Date.
Build- ManuJute
Hides Cotton
manu- Raw manufacing
and
fac- cotton. facmate- tured Metals. skins.
tures.
rials. articles.
tures.
End of July, 1914...
100
100
1920.
Average for the year.
March
April
May
June
July
August
September
October
November
December
138
127
114
128
131
139
142
158
154
231
218
215
233
235
235
237
282
1921.
January
February.
March
161
201
246
100
100
100
100
100
100
100
100
149
150
170
142
147
151
163
163
136
162
159
128
135
161
116
238
222
147
211
354
351
153
179
219
209
357
158
248
244
249
257
245
245
243
242
161
229
158
147
147
238
247
226
242
255
243
160
116
100
99
105
96
89
Other Oils, Raw Oil
Other
tex- musTea. Sugar. Pulses. Cereals. foods.
tiles. tard. jute. seeds.
324
104
118
173
166
154
151
184
192
163
407
321
377
511
482
503
477
456
392
348
273
166
160
119
159
156
150
149
159
160
170
169
157
156
151
154
154
155
185
168
150
173
139
160
314
352
354
135
119
147
139
129
141
139
148
150
156
124
83
152
107
104
119
104
101
97
149
149
123
116
97
110
85
80
85
130
124
131
77
70
76
133
306
311
100
107
341
81
80
97
100
116
135
144
132
139
154
142
333
100
78
87
90
90
73
74
72
65
64
62
69
365
364
364
360
347
343
90
100
118
164
164
168
168
164
164
164
123
119
119
115
115
132
118
120
83
89
91
105
104
169
171
169
167
179
184
90
163
149
100
100
183
180
188
185
186
178
MAT, 1921.
605
FEDEKAL RESEEVE BULLETIN.
COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES.
In the following table are presented statistics
showing the trend of retail prices and the cost
of living in the United States and important
European countries. Three of these index
numbers—those for the United Kingdom,
Paris, and Sweden—are constructed on the
basis of prices in July, 1914 = 100. In the
case of tne United States, the original base,
that of the year 1913, has been shifted to the
July, 1914 base. The German index has not
been computed for the prewar period, the base
being July 15 to August 15, 1919.
The American index number, constructed by
the Bureau of Labor Statistics, was based upon
the retail prices of 22 articles of food, wdghted
according to family consumption, until January, 1921, when it was increased to 43 articles
reported by dealers in 51 important cities.
The method of weighting continues the same
for the larger number of commodities, although
the actual "weights" applied have been
changed.
The British index number of the cost of living
constructed by the Ministry of Labor consists
of the retail prices of not onljr foodstuffs but of
other articles as well. Retail clothing prices,
rents, and the cost of fuel, lighting, and miscellaneous household items are also taken into
consideration. The index number is weighted
according to the importance of the items in the
budgets of working-class families.
The retail price index for Paris, compiled by
the French General Statistical Office, consists
of retail prices of 13 different commodities,
weighted according to the average annual consumption of a working man's family of four
persons. Eleven of the commodities included
in this index are foods, and the other two are
kerosene and alcohol.
The Swedish index number consists of the
retail prices of foodstuffs, fuel, and lighting
and is based upon the prices of 51 articles in
44 towns (in 1920, 50 articles in 49 towns),
weighted according to the budget of a working
man's family which before the war had a yearly
income of 2,000 kroner.
The German index is that prepared by Dr.
Silbergleit, of the Berlin Statistical Office, and
is based upon the number of marks required
to purchase the minimum amount of food
needed by one growing person weekly.
RETAIL PRICES IN THE UNITED STATES, PARIS, AND
SWEDEN; COST OF LIVING IN UNITED KINGDOM.
[July, 1914=100.]
United
States,
retail
prices.1
1919
1920
1920
April
Mav
.
... -
JulyAugust
September
October
...
December
1921
January
March
April
1
Average for the month.
United
Paris,
Kingretail 1
dom, cost prices.
ofliving.2
Sweden,
retail
prices.
182
199
216
249
260
371
321
298
196
207
211
215
215
203
199
194
189
175
230
232
241
250
252
255
261
264
276
269
339
358
378
369
373
373
407
420
426
424
291
297
294
294
297
308
307
306
303
294
169
155
153
265
251
241
233
410
382
358
283
262
253
2
Beginning of month.
WEEKLY COST OF FOOD PER PERSON IN BERLIN.
[July 15-Aug. 15,1919-100.]
1920 (average)
February
March
April
May
June
July
August
September
October
November
December
1921:
January
February
239
237
255
269
264
255
235
215
217
226
227
232
231
219
606
FEDERAL, RESERVE BULLETIN.
MAT,
1921.
FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, AND JAPAN.
In the following table are presented figures
showing the monthly value of the foreign trade
of a group of important European countries
and Japan. Similar statistics for Germany are
not available. Currencies have not been converted to a common unit, nor are methods of
valuation the same in all countries. In England, imports are given current c. i. f. values
in England; exports and reexports, current
f. o. b. values. The same method is followed
in Japan and Sweden. In France and Italy,
on the other hand, the value of foreign trade
is estimated not in terms of current prices but
in terms of those of some earlier datej usually
the preceding year.
None of the figures presented below include
the import or export of gold and silver. In the
case of England and France, group figures are
given as well as total values, while in the case
of the other countries, total values only are
presented. This does not mean that group
figures are not obtainable, merely that they are
either delayed in publication or appear not to
be of such general interest as the French and
English material.
Japanese figures for recent months are received by cable and subject to revision.
FOREIGN TRADE OF UNITED KINGDOM.
[In thousands of pounds sterling.]
Imports.
Exports.
Raw
Articles MiscellaFood, materials
and
wholly or neous,
drink,
articles
mainly including
and
mainly
manuparcel
tobacco. unmanufactured.
post.
factured.
1913 monthly average.
1919 monthly average.
1920 monthly average.
March
April
May
June
July
August
September
October
November
December
January..
February.
March
April i . . . .
Total.
Raw
Articles MiscellaFood, materials
and
wholly or neous,
drink,
articles
mainly including
and
mainly
manuparcel
tobacco. unmanufactured.
factured.
24,184
59,927
63,948
61,808
57,387
64,993
67,566
69,571
61,785
67,269
69,168
61,499
59,378
23,485
50,565
59,292
76,540
71,587
60,509
57,919
51,899
51,268
44,557
44,299
46,560
48,613
16,134
24,663
37,902
38,156
38,050
40,580
44,681
41,923
40,016
40,573
36,267
35,955
34,553
259
358
254
144
131
252
325
450
185
293
156
246
241
64,061
135,513
161,395
176,648
167,154
166,334
170,491
163,842
153,255
152,692
149,889
144,260
142,785
2,716
2,814
4,241
4,280
3,959
4,020
4,313
4,515
3,503
4,311
4,678
4,723
3,842
5,825
9,274
12,138
14,482
12,194
13,211
11,447
12,551
10,467
9,515
9,632
9,399
12,277
49,158
47,750
50,888
37,005
25,504
17,739
30,467
23,394
24,930
420
326
184
117,051
96,974
93,742
89,996
3,852
3,075
2,897
7,668
5,881
5,832
1921.
i These figures are provisional.
Total.
Reexports.
100,727
99,081
118,954
99,645
102,216
95,701
103,694
78,819
949
1,008
1,528
1,551
1,410
1,361
1,512
1,432
1,288
1,415
2,285
1,548
1,694
43,770
66,553
111,297
103,699
106,252
119,319
116,352
137,452
114,903
117,456
112,295
119,365
96,631
9,131
13,729
18,701
27,031
20,407
20,260
20,124
17,848
13,368
13,351
16,134
13,115
12,699
79,746
58,177
56,969
1,491
1,089
1,111
92,756
68,222
66,809
59,868
9,955
8,004
8,888
8,524
34,281
53,457
93,394
83,287
M A T , 1921.
607
FEDERAL RESERVE BULLETIN".
FOREIGN TRADE OF FRANCE.!
[In thousands of francs.]
Exports.
Imports.
Food.
1913 monthly average 28 .
1919 monthly average .
1920 monthly average 3 .
March
April
May
June *
Julys 6
August ...
September.
October
November.
December..
January...
February.
March
1920.
ManuRaw
materials. factured
articles.
Raw
Food. materials.
Total.
Manufactured
articles.
Parcel
post.
Total.
151,465
892,040
718,179
412,144
1,229,434
1,400,046
138,169
861,797
832,187
701,778
2,983,272
2,950,413
99,201
184,277
154,841
203,691
397,677
301,420
615,630
1,187,742
47,182
71,444
99,867
573,351
989,966
1,869,563
871,857
675,799
547,825
558,951
1,478,987
1,398,592
1,193,960
1,302,867
772,007
813,216
644,911
726,856
3,122,851
2,887,607
2,386,696
2,588,674
114,223
125,678
103,355
216,849
349,521
353,344
348,361
421,735
834,031
844,901
726,654
1,100,931
52,987
31,658
69,862
1,337,659
1,376,910
1,210,028
1,809,377
723,749
608,822
667,709
549,834
672,861
1,171,091
1,294,160
1,243,294
1,389,928
1,548,681
905,613
724,894
684,442
732,416
726,715
2,800,453
2,627,876
2,595,445
2,672,178
2,948,257
210,888
229,892
262,808
200,388
218,626
440,482
446,131
337,464
405,858
366,981
1,631,883
1,363,469
1,597,808
1,136,356
929,222
116,255
112,081
134,472
140,996
146,067
2,399,508
2,151,573
2,332,552
1,883,598
1,660,896
346,703
386,169
455,545
1,101,267
803,231
786,352
534,498
424,531
501,011
1,982,468
1,613,931
1,742,908
188,546
172,992
162,901
436,069
478,561
379,281
1,142,398
1,162,817
1,035,826
115,605
85,074
108,418
1,882,618
1,899,444
1,686,426
1921.
1
2
8
4
Not including gold, silver, or the reexport trade.
Calculated in 1913 value units.
Calculated in 1919 value units.
February-June, 1920, figures are calculated in 1918 value units. French foreign trade figures are originally recorded in quantity units only,
and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly statements of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing
during that year. Because of the disturbed price conditions in France last year, however, it was not until July that the 1919 price units were
decided
upon and applied.
5
Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible
to give separate figures for that month.
e August, 1920, through March, 1921, figures calculated in 1919 value units.
FOREIGN TRADE OF ITALY, SWEDEN, AND JAPAN.
Italy.
(In millions of
lire.i)
Sweden.
(In millions of
kroner.)
Japan.
(In millions of
yen.)
Imports. Exports. Imports. Exports. Imports. Exports.
1913, monthly average
1919, monthly average
1920^ monthly average
January.
February
March
April
May
June
July
August
September
October
November . .
December
304
1,385
1,322
210
506
650
71
211
281
68
131
191
61
181
195
53
175
162
1,002
1,141
1,431
1,363
1,401
2,076
1,040
1,249
1,202
1,126
1,240
1,591
497
616
683
679
66?,
752
521
532
570
707
731
853
238
282
301
267
314
283
331
308
325
299
228
197
127
106
151
164
227
205
271
329
297
296
220
157
123
118
108
108
105
176
174
194
217
193
184
154
175
154
134
105
87
122
2 116
91
2 89
2 105
2 119
2 137
2 75
1920.
1921.
11920 figures based on 1919 prices.
2 Provisional.
268
230
?,33
218
177
171
2 94
608
FEDERAL RESERVE BULLETIN.
MAT,
1921.
FINANCIAL STATISTICS FOR ENGLAND, FRANCE, ITALY, GERMANY, SWEDEN, AND
JAPAN.
A summary of banking and financial conditions abroad is presented statistically in the
accompanying tables. Similar material will be published regularly each month in the
BULLETIN.
BRITISH FINANCIAL SITUATION.
[Amounts in millions of pounds sterling.]
Deposit and note accounts, Bank of
England and Treasury.
Bank
notes.1
1913, average of end
of month figures...
1920, end of—
March..
April
Mav
June
July
August
September
October
November
December
1921:
January
February
April
1
Currency
notes
and
certificates
outstanding.
Nine London clearing banks.8
Governmentfloatingdebt.
Discount rates.
DeMoney Disposits, Coin Treas- Tempo- Total
at call counts Invest6 months'
De- 3 months'
and
public
ury rary ad- floating and and
trade
bank
ad- ments. posits.
and bullions bills. vances. debt.
short vances.
bills.
bills.
other.
notice.
Per cent. Per cent.
29
57
38
4i
99
101
104
107
107
106
109
109
109
113
335
337
348
357
362
356
354
356
349
368
137
140
118
192
134
116
127
137
123
190
141
141
141
146
152
152
152
152
153
157
1,107
1,048
1,062
1,050
1,058
1,067
1,139
1,028
1,097
1,102
205
249
221
244
204
183
143
241
231
306
1,312
1,297
1,283
1,294
1,262
1,250
1,282
1,269
1,328
1,408
109
108
110
109
342
336
344
338
129
127
138
141
157
157
157
157
1,145
1,110
1,121
242
189
155
1,387
1,299
1,275
Less notes in currency note account.
2
5j
ft
ft
ft
66:
&l
61
99
88
83
1,207
1,172
1,145
317
340
336
Held by the Bank of England and by the treasury as note reserve.
1,810
1,754
1,715
3
6#
|
i
7
!
6i
I
Average weekly figures.
FRENCH FINANCIAL SITUATION.
[Amounts in millions of francs.]
Bank of France.
Gold.
Silver Deposreserves. its.i
Situation of the Government.
Advances
to the
Govern- GovernCircula- ment
for ment 8
tion. purposes
revenue.
of the2
Price of
Public 3 per cent
debt. perpetual
rente.
war.
1913, average..
1920, end of—
March
April
May
June
July
August
September.
October...
November.
December.
1921:
January...
February..
March
April
3,343
629
830
5,565
<3,606
^3,608
4
3,609
<3,610
* 3,611
<3,612
6 3,531
6
3,537
6
3,543
6 3,552
247
244
240
241
248
255
256
264
265
266
4,039
3,469
3,751
3,653
3,416
3,267
3,307
3,474
3,927
3,575
37,569
6
268
264
267
271
3,429
3,293
3,103
3,018
3,553
3,555
3,556
6 3,566
6
6
i Includes Treasury and individual deposits.
* Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917.
»From
indirect taxation and Government monopolies.
4
Not including about 1,978 million francs held abroad.
6
7•
35,000
320
37,915
37,544
37,696
37,905
39,208
39,084
38,807
37,902
26,300
25,300
26,050
26,000
25,550
25,800
26,600
26,600
26,600
26,600
859
1,057
857
908
1,109
882
1,120
1,332
1,088
1,168
37,913
37,808
38,435
38,211
25,600
25,600
26,200
26,000
1,204
921
972
5
285,836
^302,735
86.77
58. S^
57.40
59.35
57.25
58.90
56.30
54.15
56.20
55.40
57 95
59.16
58.15
58.17
56,92
Foreign debt calculated at the exchange rates of Sept. 30,1920.
Not including about 1,948 million francs held abroad.
Foreign debt calculated at the exchange rates of Feb. 28,1921.
MAT,
1921.
609
FEDERAL, RESERVE BTJIXETIN.
ITALIAN FINANCIAL SITUATION.
[In millions of lire.]
Leading private banks.1
Loans,
discounts,
and
Cash. correspondents'
debts.
End of December,1913
1920.
January
February
March
April
May
June
July
August
September
October
November
December
January
February
Banks of issue.
Government finances.
DeposDeposTreasCirculaits and Loans Gold Total its and Comury
mer- tion for State
cur- metalcorreand
decial
account
rerespond- dismand circu- of the rency lic reserve.
serve.
ents' counts.
liabili- lation. state. notes. serve.
credits.
ties.
129
2,007
1,674
857
1,375
1,661
318
2,284
499
117
825
749
818
850
813
874
864
872
942
1,035
1,097
1,297
1,184
1,012
13,054
13,571
14,421
14,884
15,240
14,996
14,924
15,177
15,653
15,700
16,003
16,538
17,113
16,842
12,094
12,629
13,397
14,045
14,044
14,060
14,131
14,457
14,824
14,909
15,315
15,801
16,392
15,961
4,173
4,671
5,322
5,804
5,782
6,784
6,576
6,233
6,628
7,083
6,397
7,074
6,931
7,158
1,038
1,038
1,028
1,038
1,038
1,039
1,039
1,039
1,039
1,058
1,058
1,058
1,058
1,059
2,021
2,047
2,053
2,035
2,065
2,110
2,113
2,172
2,217
2,082
2,069
2,077
2,376
2,224
2,296
2,377
2,264
2,379
2,196
2,276
2,494
2,337
2,589
2,559
2,635
2,221
4,920
4,848
5,478
6,029
6,459
7,484
7,615
7,413
8,231
8,361
8,577
8,988
(3)
2,345
338
2,538
343
*2~546
'34*9
2,546
Shortterm
treasury
bills.
9,300
9,800
10,200
10,300
10,700
11,700
13,200
Principal
revenues
from
Total taxapublic tion
and
debt.
monopolies
during
month.*
95,000
99,000
ioi,"666
561
878
461
1,268
563
1,222
822
1,210
* Banca Commerciale Italiana, Banca Italiana di Sconto, Credito Italiano, Banco di Roma.
2 Revenues from state railways; from post, telegraph, and telephones; from state domain; from import duties on grain; and from Government
sales of sugar are not included,
a Combined circulation, 19,264.
< Combined circulation, 18,926.
GERMAN FINANCIAL SITUATION.
[Amounts in millions of marks.]
Reichsbank statistics.
Situation of the Government.
Darlehnskassen- Receipts
scheine in from
Note
and
3 per cent 5 per cent
Reichs circula- Deposits, circula- taxes
Govern- Floating
war
tion.
und
debt. imperial
ment
lation.
loan.i
loan.i
Darlehnsmonopolies.
scheine.
Reserve.
Gold.
1913 average...
1920, end of—
March
April
May
June
July
August
September.
October...
November.
December.
1921, end of—
January...
February..
March
1
3 Quotations of the Berlin Bourse.
8 Calculated by the Frankfurter Zeitung
As of Apr. 5.
• As of May 3.
«As of June 1.
« As of July 1.
7 As of Aug. 2.
s As of Apr. 2.
1,068
32
1,958
668
1,091
1,092
1,092
1,092
1,092
1,092
1,092
1,092
1,092
1,092
13,972
15,193
15,907
17,252
17,874
18,686
19,861
21,341
20,363
23,417
45,170
47,940
50,017
53,975
55,969
58,401
61,735
63,596
64,284
18,498
16,499
17,024
23,414
17,282
15,772
20,054
17,945
17,340
22,327
13,731
13,776
13,567
13,633
13,328
13,266
13,348
13,024
12,370
12,033
1,092
1,092
1,092
22,810
21,982
23,836
66,621
67,427
69,417
15,834
17,357
28,043
11,341
10,755
10,168
with the prices of 10 bonds and 25 stocks.
265
75.90
2,072
2,599
3,227
3,739
3,635
4,126
5,121
6,130
9,103
77.00
74.50
67.50
62.90
60.64
60.80
62.25
66.25
68.60
65.75
97,20
98.75
98.70
67.00
67.25
67.60
99.50
99.75
99.70
141,987
148,750
156,825
161,920
165,918
8,721
Prices as of Jan. 1,1920=100.
98.50
98.70
99.90
99.00
98.75
98.90
Index •
number
of securities
prices.2
3 139
4 133
5 109
« 117
7 140
148
161
172
179
179
155
8 161
610
FEDERAL RESERVE BULLETIN.
MAY,
1921.
SWEDISH FINANCIAL SITUATION.
[In millions of kronor.]
Riksbank.
Joint stock banks.
Bills
discounted
with the
Riksbank.
Loans
and discounts.
234.5
155.2
2,286.9
741.6
718.3
708.3
736.5
724.8
742.2
779.8
507.4
497.7
473.5
531.1
514.2
567.8
547.0
5,877.4
5,969.4
5,998.6
5,982.9
6,028.9
6,007.4
6,068.7
Gold coin Note
and
circulabullion.
tion.
1913, end of December
1920, end of:
March
April
May
June
July
August
September
102.1
261.1
261.0
261.0
261.1
261.3
261.4
279.8
1
1920, end of—Continued:
October
November
December
1921—January
February
March
Aprin....,
Riksbank.
Joint stock banks.
Gold coin Note
and
circulabullion.
tion.
Bills
disLoans
counted and
diswith the counts.
Riksbank.
282.4
282.4
281.8
281.9
281.8
281.7
281.8
772.8
752.8
759.9
672.5
687.6
716.9
680.5
503.4
447.2
451.3
431.2
452.7
445.7
442.2
6,079.0
6,117.8
6,211.3
6,172.6
6,119. 2
6,093.6
6,065.3
Provisional.
JAPANESE FINANCIAL SITUATION.
[Amounts in millions of yen.]
Bank of Japan.
Private
Loans
and Gov- and
disernment counts.
deposits.
End of—1
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
1
2
Note
circulation.
Tokyo banks.
Tokyo
Tokyo
bank
Average
associated
clearings
discount
Specie 2 banks,
(total
rate
reserve.
total j within
(Tokyo
loans. I
the
market).
month).
1920.
1921.
8
,167
,146
,181
,261
,209
,165
,120
,202
,079
,048
,137
,040
305
336
364
432
445
381
273
278
180
164
128
158
1,375
1,360
1,368
1,367
1,328
1,349
1,202
1,217
1,170
1,192
1,180
1,439
944
937
921
917
930
979
1,011
1,040
1,078
1,117
1,152
1,247
1,929
2,022
1,982
1,982
2,089
2,036
2,029
2,014
2,076
2,133
2,134
2,137
3,063
3,532
4,135
3,168
2,922
2,524
2,109
2,139
2,032
1,922
2,302
2,841
Per cent.
9.38
9.67
10.15
10.62
10.95
10.99
10.95
10.80
10.59
10.48
10.44
10.26
1,071
1,126
1,159
115
103
3 92
1,235
1,141
3 1,056
1,235
1,141
2,171
2,188
4 1,852
2,013
2,143
2,502
10.33
9.71
In case of Tokyo banks, and note circulation and specie reserve of Bank of Japan, last day of month.
It is generally understood that in recent years a certain portion of the reserve has been held abroad. Specie reserve figures do not include
bank's own notes held in the bank.
a Mar. 5.
< Mar. 26.
MAY, 1921.
611
FEDEKAL BESERVE BULLETIN.
CONDITION OF PRINCIPAL EUROPEAN BANKS OF ISSUE.
BANK OF ITALY*
[From annual reports and weekly statements of the Bank of Italy.]
[In thousands of dollars.]
Dec. 31,
1914.
Dec. 31,
1915.
Dec. 31,
1916.
Dec. 31,
1917.
Dec. 31,
1918.
Dec. 31,
1919.
Dec. 31,
1920.
Gold
Silver
215,810
20,823
207,931
20,227
173,639
14,023
161,320
16,870
157,827
14,890
155,331
14,494
158,128
14,472
Total metallic reserve
Notes of Italian Government and of other, including I
foreign, banks of issue
I
Other cash and cash equivalents
Bills payable in Italy
Bills payable in foreign countries, including foreign treasury bills
Bills payable, received for collection
Advances, ordinary
Advances to the Government or for account of the Government
Securities
:
Debtors in current account:
In Italy
In foreign countries
Bank premises
In fiscal account with the Government and provincial
administration
Sundry assets
236,633
228,158
187,662
178,190
172,717
169,825
172,600
11,150
3,287
136,227
20,112
2,724
91,430
27,504
4,971
104,187
34,591
6,173
146,127
65,322
8,201
171,159
103,150
773
261,692
85,218
547
609,652
16,804
4,648
29,181
4,034
4,893
37,168
4,016
3,946
59,254
4,270
680
84,222
60,871
2,106
147,202
4,163
1,730
263,507
3,992
2,290
442,773
100,131
39,486
310,447
39,549
353,335
42,414
835,136
43,063
1,012,260
39,543
1,499,991
41,045
1,551,087
41,336
7,725
8,195
5,364
2,118
28,652
5,500
2,139
74,592
5,647
2,404
90,309
5,462
73,682
149,645
5,643
' 71,320
148,987
5,755
218,165
150,045
6,760
33,871
1,703
82,446
1,399
141,661
18,384
774,237
48,705
452,513
100,191
512,651
67,266
324,649
633,690
858,934
1,012,727
2,223,248
2,409,569
3,184,780
3,676,380
34,740
9,264
2,321
34,740
9,264
2,321
34,740
9,264
3,382
34,740
9,264
5,587
34,740
9,264
8,998
34,740
9,264
13,243
34,740
9,264
15,349
417,353
106,135
276,299
310,460
143,956
394,877
353,335
167,125
426,929
835,136
279,672
767,848
1,012,260
308,155
949,522
1,499,991
402,376
1,428,238
1,551,087
401,743
40,320
23,557
21,660
60,234
16,648
33,356
51,329
216,975
8,651
68,484
167,475
633,690
858,934
1,012,727
56,033
575,887
2,223,248
2,409,569
3,184,780
3,676,380
45.20
31.22
20.50
11.56
8.27
5.95
5.10
Total.
LIABILITIES.
Capital
Surplus
Extraordinary and special reserves
Circulation:
For account of commerce
For account of Government
Demand and time deposits
In fiscal account with the Government and provincial
administration
Sundry liabilities
Total
Ratio of metallic reserve to deposit and note liabilities
combined, per cent
BANK OF NORWAY.
[From the annual reports and monthly statements of the Bank of Norway.]
[In thousands of dollars.]
Dec. 31,
1914.
Dec. 31,
1915.
Dec. 31,
1916.
Dec. 31,
1917.
Dec. 31,
1918.
Dec. 31,
1919.
Dec. 31,
1920.
ASSETS.
Gold in vault
10,290
13,837
33,027
31,193
32,691
39,590
39,472
Total metallic reserve
Held with Scandinavian banks of issue
Held with other foreign agencies
Loans and discounts, domestic
Foreign bills
Real estate loans
Securities
Sundry assets
10,290
892
7,473
32,066
216
404
2,402
1,753
13,837
4,191
16,948
23,140
83
371
3,590
651
33,027
828
21,227
42,802
148
337
3,602
2,006
31,193
902
20,615
109,822
178
296
3,508
225
32,691
866
18,703
116,269
64
267
3,543
39,590
1,279
19,140
106,686
31
244
2,831
39,472
15,623
130,003
55,496
62,811
103,977
166,739
172,691
173,494
198, 881
Capital
Surplus
Notes in circulation
Deposits
Sundry liabilities
6,700
3,581
35,961
5,666
3,588
6,700
3,201
43,473
7,309
2,127
6,700
3,069
69,105
22,326
2,777
9,380
4,654
87,454
60,689
4,562
9,380
4,569
116,905
34,178
7,659
9,380
4,120
121,747
29,411
9,380
3,752
133,272
35,721
16,756
Total
Ratio of metallic reserve to deposit and note liabilities
combined—per cent
55,496
62,811
103,977
166,739
172,691
173,494
27.25
36.12
21.06
21.64
26.19
Total
219
2,433
11,120
LIABILITIES.
24.72
23.36
612
FEDERAL RESERVE BULLETIN.
MAT, 1921.
BANK OF COPENHAGEN (DENMARK).
[From monthly statements of the Bank of Denmark.]
[In thousands of dollars.]
Dec. 31,
1915.
Dec. 31,
1914.
Dec. 31,
1916.
D e c 31,
1917.
Dec. 31,
1918.
Dec. 31,
1919.
Dec. 31,
1920.
ASSETS.
Gold coin and bullion
Silver and other metallic reserve
Total metallic reserve . Foreign credits
Danish Government securities
Other Danish securities
Foreign Government securities
Notes of and credits with other banks of issue
Domestic bills
Foreign bills
Loans and discounts
Real estate .
Other assets
.
24,506
908
29,833
829
42,847
448
46,611
660
52,159
654
25,414
30,662
43,295
11,245
8,492
1,641
2,449
13
15,335
2,790
6,246
664
20,874
47,271
12,038
7,204
1,720
2,311
8
9,000
2,655
5,864
819
41,119
113,044
. . .
• • ; * • * ;
• ; • " : : " : : : :
I
Total
60,992
698
52,813
24,003
4,463
2,602
1,071
7,933
15,013
2,518
6,566
792
47,016
60,807
887
61,694
7,912
11,318
3,094
1,141
6,839
47,411
4,082
14,352
814
43,781
130,009
164,790
202,438
214,987
7,236
2,732
76 344
918
16,313
7,657
1,532
134
178
7,236
4,001
90,547
889
14,734
11,671
771
134
26
7,236
5,293
120,609
859
26,619
3,928
7,236
7,301
131,145
827
19,275
36,279
7,236
8,575
149,197
795
17,476
31,452
134
112
134
241
134
122
113,044
130,009
164,790
202,438
214,987
42.77
40.11
34.74
32.90
31.01
61,690
2,520
9,752
2,872
1,095
8,608
50,317
971
14,155
'828
62,179
LIABILITIES.
Capital
Surplus and special reserves
Notes in circulation
Government deposits
Current account deposits
Other deposits
Due to foreign central banks of issue
Profit and loss
Other liabilities
55,376
59,081
....
Total
Ratio of metallic reserve to deposit and note liabilities
combined—percent
I
BANK OF SWEDEN.
[From the Bank of Sweden's year book and weekly statements.]
[In thousands of dollars.]
Dec. 31,
1914.
Dec. 31,
1915.
Dec. 31,
1916.
Dec. 31,
1917.
Dec. 31,
1918.
Dec. 31,
1919.
Dec. 31,
1920.
ASSETS.
Gold coin and bullion
Silver and other metallic reserve
Total metallic reserve
Checks and sight drafts, including foreign
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
29,088
506
33,385
572
49,183
627
65,515
76,532
75,351
272
75,516
732
29,594
3,572
4,489
46,883
11,631
671
11,442
19,289
33,957
4,832
13,691
13,978
1,430
30,450
24,426
613
6,668
17,142
49,810
4,602
10,471
16,860
1,525
32,595
32,807
669
14,177
17,792
65,944
6,756
5,132
16,041
1,485
49,940
29,515
374
32,507
22,788
76,630
9,504
12,239
14,638
1,352
75,122
18,892
322
48,386
24,739
75,623
10,146
13,065
12,959
1,352
121,503
17,950
369
27,173
8,029
76,248
13,039
19,714
3,403
1,203
145,038
8,397
302
4,260
1,091
134,962
147,187
181,308
230,482
281,824
288,169
272,695
13,400
3,350
28,983
2,417
81,488
549
2,358
2,417
13,400
3,350
34,590
2,668
87,874
699
2,348
2,258
13,400
3,350
46,399
1,289
111, 895
964
2,176
1,835
13,400
3,350
52,916
518
153,490
2,364
13,400
3,350
37,902
85
218,027
3,076
13,400
3,350
57,278
1,344
200,347
2,774
13,400
3,350
45,967
1,312
203,647
1,437
4,444
5,984
9,676
3,582
181,308
230,482
281,824
288,169
272,695
31.47
31.95
29.94
29.35
30.55
LIABILITIES.
Capital
Surplus
Deposits
Due to foreign banks
Notes in circulation
Bank orders
Dividends due and payable to the Government
Sundry liabilities
Total
Ratio of metallic reserve to deposit and note liabilities
combined, per cent
134,962
26.77
147,187 |
27.73 I
MA?, 1921.
613
FEDEEAL RESEEVE BULLETIN.
DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS.
DISCOUNTS.
Discount operations of the Federal Reserve
Banks during March and February, 1921 and
1920, are shown in summary form for the entire
system in the table below. Detailed figures
for each Federal Reserve Bank for the most
recent month are given on pages 615 to 617.
VOLUME OF DISCOUNT OPERATIONS.
fin thousands of dollars.]
1920
1921
Total
March.
February.
March.
February.
7.368,268
8,120,849
6,970,331
6,517.439
Secured by Government
3,519,797 3,856,306 5,298,884 5,514,279
obligations
C therwise secured and un3,818,471 4,264,543 1,671,447
secured—Total
973,160
Commercial paper, n.
3,709,669 4,187,059 1,613,530
e s
933,557
59,129
46,263
Agricultural paper
26,451
Live-stock paper
11,808
Trade acceptances—
10,992
11,709
Total
13,256
23,383
11,620
Domestic
12,799
89
Foreign
457
Bankers'
acceptances—Total
34,534
28,611
11,513
6,159
domestic
4,809
2,907
6,704
Foreign
3,752
Average maturity (in
days)
12.38
13.77
12.26
9.53
Average rate (365-day
5.64
5.52
6.41
6.43
basis), per cen t
Discount operations during March aggregated $7,368,000,000, a decrease of $753,000,000 from the total of $8,121,000,000 reported
for February, but an increase of $398,000,000
over the amount shown for March, 1920.
Volume of discounts reduced to a daily basis
by the method explained in the BULLETIN for
April, 1921, page 466, together with average
maturity, is shown for each Federal Keserve
district for March and for February in the
table below:
It will be noted that, as a result of a large increase in average maturity, namely, from 9.53
to 12.38 days, volume of discounts on the daily
basis shows an increase of 6 per cent, in spite
of a decrease in the total volume of business of
10 per cent. The greatest increases in average
maturity are shown for the Cleveland and
Chicago banks, the average for the former having increased from 9.4 days in February to
14.74 days in March, and for the latter from
33.5 days to 41.13 days. Longer average maturities of discounted paper are shown for all
the districts, except the Richmond, St. Louis,
and San Francisco districts.
Decreases between February and March are
noted in the volume of discounts secured by
United States obligations, as well as in all other
discounts. Of this latter class of paper, commercial paper, n. e. s., shows a decline from
$4,187,000,000 to $3,710,000,000, while agricultural paper increased from $46,000,000 to
$59,000,000, and live-stock paper from $12,000,000 to $26,000,000. Discounted trade acceptances show a decline from $13,000,000 to
$12,000,000, while discounted bankers7 acceptances increased from $6,000,000 to $12,000,000.
The rate of discount charged in March was
slightly higher on the average than that for
February—6.43 per cent as compared with
6.41 per cent.
Following is a summary of holdings of discounted bills at the end of March and February, 1921 and 1920. Detailed figures for
each Federal Reserve Bank are shown on
page 618.
HOLDINGS OF DISCOUNTED BILLS.
[In thousands of dollars.]
1921
1920
VOLUME OF DISCOUNTS REDUCED TO DAILY BASIS.
Federal Reserve
Bank.
Volume of dis- Average matucounts (in
rity (in days).
millions).
daily basis
(in millions).
Feb- March. Feb- March. FebMarch. ruary.
ruary.
ruary.
All banks
Boston
New York
Philadelphia
Cleveland.
Richmond
\tlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
7,368
8,121
12.38
9.53
2,943
2,765
732
524
5,631
399
279
310
381
7.89
5.51
12.70
9.40
12.99
25.81
33.50
26.43
32.66
30.79
31.62
27.77
209
883
162
133
148
4,272
8.86
6.41
12.56
14.74
12.89
26.50
41.13
24.33
36.55
32.86
32.86
21.55
299
164
519
154
150
387
66
69
299
164
111
74
91
67
Mar. 31.
Feb. 28.
Mar. 26.
Feb. 27.
2,233,054
2,389,510
2,449,230
2,453,511
Volume on
1,109
78
140
128
105
138
463
115
81
118
78
100
76
124
140
689
121
208
162
Total
Secured by United States
Government obligations. 970,911
997,968 1,441,015 1,572,980
Otherwise secured and unsecured—Total
1,262,143 1,391,542 1,008,215
880,531
Commercial and industrial paper, n.e. s. 1,010,891 1,140,826
136,679
Agricultural paper
140,987
83,654
Live-stock paper
81,693
Trade acceptances16,962
15,520
Total
Foreign trade
Domestic trade
Bankers' acceptancesTotal
256
15,264
540
16,422
13,052
13,421
Foreign trade
Domestic trade
Dollar exchange...
8,787
4,183
82
10,335
3,086
861,848
29,321
45,344
755,750
30,125
37,070
20,813
18,508
50,889
39,078
614
FEDERAL RESERVE BULLETIN.
BANES ACCOMMODATED.
During the month of March 34 banks were
added to the membership of the system, the
total number of member banks increasing
from 9,681 to 9,715. The number of banks
accommodated in February was 5,107 and in
March 5,332, so that the percentage of banks
accommodated was 54.9 per cent in March,
as against 52.8 per cent in February, the
increases being general throughout the system.
The number of member banks in each district
at the end of March and of February, and the
number and percentage accommodated during
each of the two months are shown in the
following statement:
Federal Reserve
Bank.
OF OPEN-MARKET PURCHASES
DAILY BASIS.
Feb- March. FebMar. 31.1 Feb. 28 March. ruary.
ruary.
Federal Reserve
Bank.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco
436
788
701
875
612
484
1,425
578
1,011
1,094
855
856
439
788
701
874
611
472
1,425
575
1,005
1,093
851
847
257
349
330
261
347
355
922
306
589
585
570
461
225
316
318
237
335
340
908
299
589
561
550
429
58.9
44.3
47.1
29.8
56.7
73.3
64.7
52.9
58.3
53.5
66.7
53.9
51.3
40.6
45.4
27.1
54.8
72.0
63.7
52.0
58.6
51.4
64.6
50.6
Total...
9,715
9,681
5,332
5,107
54.9
52.8
ACCEPTANCES.
1921.
totals are shown for all classes of bills purchased, bankers' acceptances declining from
$167,000,000 to $149,000,000 and trade acceptances from $2,000,000 to a little over
$500,000. Of the bankers' acceptances purchased in March about two-thirds and of the
trade acceptances the entire amount were bills
drawn in the foreign trade. The average
maturity of acceptances declined from 36.98
days in February to 33.99 days in March,
while the average rate of interest remained
unchanged at 6.01 per cent.
The following table shows the volume of
acceptances purchased by each of the Federal
Reserve Banks, reduced to a daily basis:
VOLUME
Percentage
Member banks Member banks
accommodated. accommodated.
in district.
MAY,
Volume of purchases (in
millions).
Mar.
Average maturity
(in days).
Volume on
daily basis
(in millions).
Mar.
Feb.
Mar.
Feb.
149
169
33.99
36.98
164
224
24
78
9
11
3
C1)
15
2
C1)
23
58
11
27
2
1
16
1
19.57
29.89
40.13
44.65
39.78
70.05
57.27
21.27
39.29
19.46
25.31
49.80
49.50
37.88
47.14
58.01
32.28
15
75
12
16
4
1
28
1
16
52
20
49
2
1
34
2
c
30
82.90
50.60
45.54
12
48
All banks
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City.
Dallas
San Francisco
Feb.
REDUCED TO
\
A summary of open-market operations of
the Federal Keserve Banks in March and in i Less than $500,000.
February, 1921 and 1920, is shown in the folFollowing is a summary of the holdings of
lowing table:
purchased and discounted acceptances at the
end of March and of February, 1921:
OPEN-MARKET OPERATIONS.
[In thousands of dollars.]
1920
1921
Total-
[In thousands of dollars.]
February.
March.
149,255
169,456
303,360
300,308
i; 362
100,598
16, 738
557
167,362
37,074
115,638
14,650
2,094
15
2,079
294,301
57,350
236,951
4,158
4,901
812
4,089
49.33
296,959
65,918
228,091
2,950
3,349
29
3,320
50.50
6.01
5.80
5.53
22
5
18,879 1,496,388
304,296
March.
Bankers' acceptances—Total..
In the domestic trade
In the foreign trade
Dollar exchange
Trade acceptances—Total
In the domestic trade
In the foreign trade
Average maturity (in days)...
Average rate (365-day basis),
per cent
United States securities purchased:
Bonds.
Certificates of indebtedness
H O L D I N G S O P P U R C H A S E D AND D I S C O U N T E D A C C E P T ANCES.
557
33.99
6.01
448,487
February.
End of—
Bills purchased in March totaled $149,000,000, as against $169,000,000 the month before
and $303,000,000 in March, 1920. Decreased
March. February.
All classes
Purchased in open market
Discounted for member banks
Total, distributed by classes of acceptances:
Bankers' acceptances—Total
Foreign
Domestic
Dollar exchange
Trade acceptances—Total
Foreign
Domestic
Bankers' acceptances, distributed by classes of
accepting institutions:
Member banks—
National
Nonnational
Nonmember banks and banking corporations..
Private banks
Branches and agencies of foreign banks
147,913
199,804
119,341
28,572
169,420
30,384
132,106
93,782
28,224
10,100
15,807
543
15,264
182,469
134,885
37,072
10,512
17,335
46,304
28,745
23,736
16,015
17,306
64,652
40,330
37,561
18,729
21,197
1,222
16,113
MAT, 1921.
615
FEDERAL BESERVE BULLETIN.
It will be noted that the total holdings of
acceptances declined from about $200,000,000
to $148,000,000 during the month. Of the
$148,000,000 held at the end of March, $119,000,000 were purchased in open market and
$29,000,000 were discounted for member banks.
Of the total of $148,000,000 of acceptances
held, $132,000,000 were bankers'jacceptances
and $16,000,000 were trade acceptances. Of
the bankers' acceptances, about 71 per cent
were drawn in the foreign trade, while of the
trade acceptances all but $2,000,000 were
drawn in the domestic trade. Of the total of
$132,000,000 of bankers' acceptances held, 35
per cent were acceptances of national banks,
21.8 per cent of nonnational member banks,
18 per cent of nonmember banks and banking
corporations, 12.1 per cent of private banks,
and 13.1 per cent of branches and agencies of
foreign banks.
VOLUME OF OPERATIONS.
VOLUME OF DISCOUNT AND OPEN-MARKET OPERATIONS DURING MARCH, 1921.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
March, 1921
March. 1920
3 months ending Mar. 31,1921
3Amonths ending Mar. 31,1920
United States securities
purchased.
Bills disBills bought
counted for
in open
member banks. market.
Bonds and Certificates of
Victory- indebtedness.
notes.
$731,710,033
4,271,627,879
399,243,410
279,380,406
298,973,793
163,603,783
519,190,203
154,417,963
66,495,192
110,900,132
73,451,683
299,273,577
$23,787,794
78,089,389
9,022,991
11,155,289
2,665,401
470,519
15,022,539
1,599,984
7,:
6,970;330; 977
23,746,878,928
19,729,041,586
149,255,323
303,359,534
440,979,807
906,119,686
$17,384,500
281,578,557
26,939,000
71,030,500
6,000,000
March, 1921.
March, 1920.
$772,882,327
4,631,295,825
435,205,401
361,566,195
307,639,194
164,074,302
556,911,242
156,861,947
66,550,680
112,114,132
73,572,590
327,336,599
$493,475,209
4,574,324,471
544,618,766
484,519,424
351,353,026
163,917,786
911,114,648
288,699,660
145,259,885
178,502,098
210,928,153
423,386,935
448,487,057
7,966,010,434
1,496,387,500
741,538,557 '24,"929*409,'692
2,443,059,000
"23,"078,*464,"722
22,698,500
844,000
16,500
1,214,000
100,000
20,681,500
20,907
7,381,522
$22,050
11,800
244,450
Total.
8,770,100,061
VOLUME OF BILLS DISCOUNTED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURITIES.
Member
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total: March, 1921...
February, 1921
March, 1920...
February, 1920
Customer's
paper secured by
Government
obligations.
banks'
notes.
Secured by
Government
obligations.
$16,470,870
48,046,031
17,767,127
1,468,625
2,431,130
5,387,167
16,512,028
4,604,685
469,755
2,909,603
847,293
3,433,348
$417,741,200
1,514,553,505
234,020,402
218,453,307
254,805,468
120,347,662
128,787,544
189,512,507
199,299,992
3,429,449,782
3,727,518,681
5,109.371,143
5,344,979,056
243,338,073
84,453,877
30,685,083
73,893,339
49,593,677
209,542,901
collateral
Commercial
paper,
Otherwise
secured.
$187,000
538,000
845,300
6,404,200
128,887
9,737,992
58,607
2,420,900
29,730,819
22,571,562
11,451,320
7,148,484
Agricultural
paper.
$297,030,160
2,702,476,882
146,910,516
51,667,5? I
35,204,021
52,389,759
226,902,647
59,609,246
17,796,710
15,005,622
10,871,662
64,073,047
$97,703
581,356
240,814
225,380
4,881,691
5,438,061
21,518,787
4,064,234
5,147,620
6,840,246
4,666,356
5,427,138
3,679,937,806
4,164,487,425
59,129,386
46,262,837
1,602,079,269
926,408,815
Live-stock
paper.
$8,500
1,500
77,555
3,138,211
284,112
2,218,348
11,357,394
4,557,552
4,243,026
26,451,094
11,806,039
616
MAY, 1921.
FEDERAL RESERVE BULLETIN.
VOLUME OF BILLS DISCOUNTED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO AVERAGE RATES AND MATURITIES—Continued.
Trade acceptances.
Bankers' acceptances.
Total
all classes.
Federal Reserve Bank.
Domestic.
Foreign
$361,600
3,079,961
176,051
1,388,818
1,113,483
560,650
1,052,948
252,702
428,184
802,307
440,032
1,963,515 |
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
585,671
$731,710,033
4,271,627,879
399,243,410
279,380,406
298,973,793
163,603,783
519,190,203
154,417,963
66,495,192
110,900,132
73,451,683
299,273,577
4,808,525 6,703, 824
2,406,877 3,752,037
34,533,784
28,611,229
7,368,268,054
8,120,848,629
6,970,330,977
6,517,439,082
$881,250 $2,008,894
127,000
2,162,928 3,749,259
49,000
323,309
587,415
11,500
33,014
54,211
578, 898
16,100
88,905
11,620,251
456,920
1 12,798,707
23,382,954
10,991,506
Total: March, 1921
February, 1921
March, 1920....
February, 1920.
Foreign.
Domestic.
$72,805
Average
maturity.
360,000
Days.
6.41
12.56
14.74
12.89
26.50 i
41.13
24.33
36. 55
32.86
32.86
21.55
Average
rate
(365-day
basis).
Per cent.
6.57
6.52
5.67
6.00
6.00
6.39
6.72
5.90
6.78
6.50
6.68
6.00
12.38
9.53
13.77
12.26
6.43
6.41
5.64
5.52
VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING MARCH, 1921, BY CLASSES OF PAPER; ALSO
AVERAGE RATES AND MATURITIES.
Bankers' acceptances.
Federal Reserve
Bank.
Foreign.
Boston
New York
Philadelphia
Cleveland
Richmond
A tlatita,
Chicago
St. Louis
MinneaDolis
KansasCity
Dallas
San Francisco
$17,291,762
53,242,351
5,605,398
6,939,851
2,214, 501
194,919
9,473,473
568,207
38, 988
Total: March, 1921
February, 1921.
March, 1920
February, 1920.
Dollar
exchange
bills.
Domestic.
$4,526,032 $1,970,000
13,852,620 10,558,910
1,092,593 2, 325,000
3,689,674
525,764
450,900
275,600
4,754,066
795,000
1,031,777
::::::::::::
Trade acceptances.
Total.
$23, 787, 794
77,653,881
9,022,991
11,155,289
2,665,401
470, 519
15, 022,539
1, 599,984
38,988
Foreign. Domestic.
Total.
Average
Total bills Average
rate
purchased. rnatur(365-day
ity.
basis).
$23,787,794
78,089,389
9,022,991
11,155,289
2,665,401
470,519
15,022,539
1, 599, 984
38,988
Davs. Per cent.
19": 57
5.88
29.89
5.98
40.13
5.99
44.65
6.01
39.78
6.08
70. 05
7.10
hi.21
6.08
21.27
6.09
39.29
5.96
$435,508
$435,508
121, 347
20,907
7,381, 522
82.90
50.60
7.10
6.04
563,513
20, 907
7,260,175
121,347
100, 598, 340
115,637, 555
31,361, 941 16, 738,187
37, 074, 502 14,650,397
148,698, 468
167, 362,454
556,855
2,078, 542
$15,000
556,855
2,093,542
149,255, 323
169,455,996
33.99
36.98
6.01
6.01
236,951, 064
228, 091,255
57, 350,003
65,917,632
4,157,622
2,950,000
298, 458,689
296, 958, 887
4,089,335
3,319,569
811,510
29,312
4,900,845
3, 348, 881
303,359,534
300,307,768
49.33
50.50
5.80
5.53
20,907
5,007,983
1,688,679
VOLUME OF PAPER DISCOUNTED AND PURCHASED DURING THREE MONTHS ENDING MARCH 31, 1921, BY MATURITIES.
15-day maturities.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago..'
St. Louis
Minneapolis
Kansas Citv
Dallas
San Francisco
Total
30-day maturities.
Discounts.
Acceptances.
60-day maturities.
Acceptances.
Discounts.
Acceptances.
Total.
$1,593,139,556
15,116,124,528
982,330,713
944,948,301
652,734,594
377,778,004
725,812,811
283,745,571
140,213,092
211 243 683
166,726,201
506,256,772
$43,320,245
112,856,895
3,231,727
7,897,423
1,519,575
53,600
18,797,223
3,645,729
3,543,002
$1,636,459,801
15,228,981,423
985,562,440
952,845,724
654,254,169
377,831,604
744,610,034
287,391,300
140,213,092
211,243,683
166,726,201
509,799,774
$26,712,057 $7,621,412
71,673,683 32,858,523
6,284,239
15,071,092
8,791,205
15; 282,526
2,717,370
19,239,926
751,100
17,059,708
84,233,672 6,012,345
33,160,225
8,175,961
25,000
9,059,155
143,125
5,064,630
17,186,417 13,654,238
$34,333,469 $74,600,347 $5,469,656 $80,070,003
69,257,069 30,780,058 100,037,127
104,532,206
16,888,633
21,355,331
5,436,448 22,325,081
28,488,192 20,292,534
24,073,731
48,780,726
38,661,650
21,957,296
1,655,201 40,316,851
35,989,555
17,810,808
847,314 36,836,869
90,246,017 221,241,041 16,810,362 238,051,403
53,949,649
33,160,225
43,871 53,993,520
8,200,961 . 22,236,372
13,988 22,250,360
9,202,280 25,795,192
788,723 26,583,915
17,090,232
5,064,630
17,090,232
44,769,264 ii, 614,616 61,783,274
30,840,655
21,701,053,826
194,865,419
21,895,919,245
321,919,052
400,777,609
78,858,557
Total.
Discounts.
648,967,196
99,152,165
Total.
748,119,361
M A Y , 1921.
617
FEDERAL, RESERVE BULLETIN.
VOLUME OF PAPER DISCOUNTED AND PURCHASED DURING THREE MONTHS ENDING MARCH 31, 1921, BY MATURITIES—Continued.
90-day maturities.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Total.
Over 90-day maturities.
Discounts.
Acceptances.
$56,898,055
211,027,297
44,428,773
62,921,427
41,126,458
58,946,780
275,740,169
46,640,796
38,441,286
39,477,793
28,721,666
90,040,745
$1,664,439
19,762,380
11,743,980
12,307,205
1,400,900
921,204
7,258,813
791,126
400,860
222,500
20,907
11,609,352
$58,562,494
230,789,677
56,172,753
75,228,632
42,527,358
59,867,984
282,998,982
47,431,922
38,842,146
39,700,293
28,742,573
101,650,097
$25,716
87,746
37,141
28^2,649
1,307,104
4,015,524
22,088,518
2,812,178
8,308,314
15,854,782
14,966,628
10,741,309
$25,716
87,746
37,141
282,649
1,307,104
4,015,524
22,088,518
2,812,178
8,308,314
15,854,782
14,966,628
10,741,309
$1,751,375,731 $58,075,752
15,468,170,323 196,257,856
1,058,756,352 26,696,394
1,051,923,095 49,288,367
7,293,046
753,069,732
2,573,218
493,789,571
1,329,116,211 48,878,742
4,480,727
420,308,419
439,848
217,375,025
1,154,348
301,430,605
20,907
232,569,357
668,994,507 45,820,602
$1,809,451,483
15,664,428,179
1,085,452,746
1,101,211,462
760,362,778
496,362,789
1,377,994,953
424,789,146
217,814,873
302,584,953
232,590,264
714,815,109
994,411,245
68,103,666
1,062,514,911
80,527,609
80,527,609
23,746,878,928
24,187,858,735
Total.
Discounts.
Acceptances.
Total.
Discounts.
Acceptances.
440,979,807
Total.
VOLUME OF REDISCOUNTS AND SALES OF DISCOUNTED AND PURCHASED PAPER BETWEEN FEDERAL RESERVE BANKS
FROM JAN. 1 TO MAR. 31, 1921.
[In thousands of dollars.]
Rediscounted or sold by Federal Reserve Bank of—
Discounted or purchased by Federal
Reserve Bank of—
New York.
Richmond.
Atlanta.
Chicago.
Minneapolis.
Kansas
City.
January. February. January. January. February. January. February. January. February. January.
10,000
10,671
New York
Philadelphia
Cleveland .
St. Louis
San Francisco
25,094
6,823
6,550
2,000
4,000
11,400
1,000
15,058
Total
Purchased bills
Discounted bills
50,823
6,823
50,823
6,823
10,000
10,000
21,950
21,950
Rediscounted or sold by Federal
Reserve Bank of—
Discounted or purchased by Federal
Reserve Bank of—
3,500
315
2,000
2,000
315
1,000
315
1,000
i4,000
565
3,000
9,008
8,500
3,000
9,008
8,500
3,000
9,008
Rediscounted or sold by all Federal Reserve Banks during—
San Francisco.
Dallas.
January. February. March.
Total.
January. February. March. February.
New York
Philadelphia
Cleveland
25
.
49,000
34,500
33,000
49,000
34,500
33,000
Total
2,000
25
6,823
37,500
1,000
33,000
32,721
340
11,823
169,002
1,000
15,058
229,944
15,058
San Francisco
Purchased bills
Discounted bills
30,721
315
5,000
98,502
.
. ..
...
49,000
34,500
33,000
25
149,596
47,348
33,000
25
51,138
98,458
7,848
39,500
33,000
Purchased
bills.
10,671
340
6,823
25,094
1,000
15,058
58,986
Discounted
bills.
22,050
5,000
143,908
170,958
618
FEDERAL RESERVE BULLETIN.
MAY, 1921.
HOLDINGS, BY CLASSES.
AVERAGE DAILY H O L D I N G S O F EACH CLASS O F EARNING ASSETS, EARNINGS T H E R E O N , AND ANNUAL RATES O F
EARNINGS, DURING MARCH, 1921.
Average daily holdings of—
Federal Reserve
Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
..
San Francisco.
Earnings o n All
United
classes
States
of
securities. earning
assets.
Purchased
bills.
Discounted
bills.
Annual rate of earnings o n -
All
Pur- United
Pur- United
DisStates classes
States
chased securiof counted chased securibills.
bills.
bills.
ties. earning
ties.
assets.
All classes
of earning
assets.
Discounted
bills.
$177,753,391
884,540,680
200,396, 883
186, 339.615
127,059,014
140,156,266
442,293,989
105,686,223
78,614,500
118,919,247
77,910,037
190,114,266
$142,902,696 $12,424,595 $22,426,100 $890,123 $788,398 $62,214 $39,511
777,122,543 37,721,615 69,696,522 4,675,636 4,332,350 190,854 152,432
152,192,403 14,963,715 33,240,735
871,143 731,835 76,122 63,186
129,674,508 29,720,876 26,944,231
872,955 670,434 151,721 50,800
561,319
110,150,103 3,219,963 13,688,948
601,695
16,629 23, 747
16,782,146
653,828
122,357,549 1, 016.571
6,121 28,687
387,171,774 10,357,260 44, 764,955 2,326,280 2,192,179 53,387 80, 714
445,301
88,872,655 2,185,878 14,627,690
483,580
11,170 27,109
397,518
2,500 8,596, 000
70,016,000
412,247
13 14,716
519,289
311,969 19,341, 759 556,476
99,265, 519
1,880 35,307
343, 438
4,441 12,295,379| 365,624
65,610,217
23 22,163
156,292,592 26,467,837 13,353,837! 953,231 792,892 136,021 24,318
Per ct. Per ct. Per ct. Per ct.
5.90
6.50
5.90
2.07
6.22
6.56
5.96
2.58
5.11
5.66
5.98
2.23
5.52
6.08
6.01
2.22
5.58
6.00
6.08
2.04
5.79
6.29
7.09
2.01
6.19
6.67
6.07
2.12
5.39
5.90
6.02
2.18
6.17
6.68
5.92
2.02
5.51
6.16
7.10
2.15
5.53
6.16
6.24
2.12
5.72
5.97
6.05
2.15
Total, March, 1921... 2,735,784, 111 2,301,628,559 138,397,250 295,758,302 13,697,626 12,428,781 706,155 562,690
February, 1921 2,869,233,489 2,408,791,923 173,082,386 287,359,18013,022,15811,762,106 795,795 464,257
5.90
5.92
6.36
6.37
6.01
5.99
2.24
2.11
March, 1920... 3.211,935,980 2,386,536,669 481,238,308 344,161,003 13,906,325 11,065,472 2,231,078 609,775
February, 1920 3,154,053,873 2,298,976,613 546,457,974 308,619,286 12,210,019 9,487,201 2,191,536 631,282
5.11
4.88
5.47
5.20
5.4'
5.06
2.09
2.17
H O L D I N G S O N MAR. 3 1 , 1921, O F DISCOUNTED BILLS, BY CLASSES.
[In thousands of dollars .1
Federal Reserve
Bank.
Total.
Custom- Member banks' collateral notes.
ers'
paper
Commer- Agrisecured
cial paper cultural
by Gov- Secured
Otherpaper.
n. e. s.
ernment by Govwise
ernment secured.
obligations. obligations.
149,334
642,011
156,357
134,536
114,364
122, 890
427,569
89,021
70,768
100,096
63, 578
162,580
22,306
86,219
35,660
5,549
5,282
11,104
21,632
5,848
1,297
4,320
920
4,432
42,548
268,440
72,871
53,442
45,267
45,777
107,036
30,214
11,988
30,690
11,534
46,585
Total Mar.
31,1921... 2, 233,104
Feb. 28,
1921
2,389,510
204,569
224,607
March, 1920. 2,449,230
Feb., 1920.. 2,453,511
359,106
353,504
1,081,909
1,219,476
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
•.
Trade acceptances.
Livestock
paper.
Foreign.
Domestic.
120
169
492
400
480
8,838
11,902
53,375
7,033
19,761
9,914
16,221
12,402
607
15,361
29,190
18,936
15,683
110
1,600
4,357
83,953
276,713
47,208
71,085
52,744
50,657
238,510
43,630
16,815
24,774
13,646
75,367
26
349
1,855
213
1,760
1,825
1,091
2,895
449
449
1,170
667
2,541
766,392
15,789
995,102
140,987
81,693
256
773,361
13,031 1,127,795
136,679
83,654
540
29,321
30,125
45,344
37,070
20
100
383
372
3,941
114
4,897
6,248
3,744
855,600
752,006
9
5
199
25
1,678
20,813
18,508
Bankers' acceptances.
Foreign.
Dollar
Domestic. exchange.
6,938
1,334
988
933
89
100
180
926
90
200-
33
54
482
623
82
15,264
8,787
4,183
82
16,422
10,335
3,086
50,889
39,078
MAT, 1921.
619
FEDERAL RESERVE BULLETIN.
HOLDINGS ON MAR. 31, 1921, OF BANKERS' AND AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY
CLASSES OF ACCEPTANCES.
[In thousands of dollars.]
All classes.
Federal Reserve Bank.
Total.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
Mar. 31,1921
Feb. 28,1921
DisPurcounted
chased in for
memopen
ber
market. banks.
10,033
50,430
14,080
25,590
4,602
2,111
14,190
3,800
649
1,388
742
20,298
9,684
40,303
13,867
21,910
2,777
711
11,114
2,225
147,913
199,804
Purchased in open market:
Mar. 31,1921
Feb. 28,1921
Discounted for member banks:
Mar.31,1921
Feb. 28,1921
Trade acceptances.
Bankers' acceptances.
Total.
Dollar
Foreign. Domestic exchange
bills.
48,542
13,867
23,788
2,777
900
11,295
3,241
200
218
75
17,519
6,750
35,609
10,158
18,015
1,752
328
6,436
1,225
200
180
21
13,108
2,324
8,140
1,484
4,291
1,025
572
4,539
2,016
185
21
16,544
349
10,127
213
3,680
1,825
1,400
3,076
1,575
649
1,203
721
3,754
54
3,741
119,341
169,420
28,572
30,384
132,106
182,469
93,782
134,885
119,054
169,048
13,052
13,421
119,341
169,420
28,572
30,384
Total.
"120
670
1,211
2,895
559
449
1,170
667
2,779
238
349
1,855
213
1,760
1,825
1,091
2,895
449
449
1,170
667
2,541
28,224
37,072
10,100
10,512
15,807
17,335
543
1,222
15,264
16,113
84,995
124,550
24,041
33,986
10,018
10,512
287
372
287
347
25
8,787
10,335
4,183
3,086
82
15,520
16,963
256
875
15,264
16,088
610
4,793
2,225
1,482
320
349
1,888
213
1,802
Foreign. Domestic
33
42
"no
HOLDINGS ON MAR. 31, 1921, OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING
INSTITUTIONS.
[In thousands of dollars.]
Nonmember
Branches
banks
and
Private agencies
and
bankers.
banking
Nonof
foreign
National. national. corporabanks.
tions.
Member banks.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Sari'Franeisco
Total:
Mar.31,1921
Feb. 28,1921
Purchased in open market:
Mar.31,1921
Feb. 28,1921
Discounted for member banks:
Mar.31,1921
Feb. 28,1921
Total.
9,684
48,542
13,867
23,788
2,777
900
11,295
3,241
200
218
75
17,519
7,114
12,123
3,482
6,522
2,742
496
6,828
1,135
200
218
54
5,390
2,022
10,339
3,850
5,001
35
404
3,747
1,565
367
10,886
2,739
3,916
6,619
1,580
4,831
112
8,575
2,216
3,518
426
320
10
26
211
1,782
5,082
12
2,626
9
2,639
132,106
182,469
46,304
64,652
28,745
40,330
23,736
37,561
16,015
18,729
17,306
21,197
119,054
169,048
40,404
59,258
25,464
37,055
20,653
33,768
15,878
18,458
16,655
20,509
13,052
13,421
5,900
5,394
3,281
3,275
3,083
3,793
137
271
651
620
MAT, 1921.
FEDERAL RESERVE BULLETIN.
CHANGES IN CONDITION OF FEDERAL RESERVE BANKS.
Between March 25 and April 22 the Federal
Reserve Banks reduced their holdings of discounted paper from $2,286,700,000 to $2,113,900,000, all the banks, except those of Cleveland, Richmond, and Minneapolis, reporting
smaller discount holdings at the close of the
period than at its beginning. Decreases are
shown in practically equal proportions for bills
secured by United States Government obligations as well as for other discounted bills, with
the result
that the proportion of "Government
paper77 to total discounts held shows but slight
fluctuations between 43 per cent and a little
over 44 per cent, compared with about 60 per
cent the year before. Government credit
operations during the period included the
purchase in open market before maturity of
moderate amounts of Liberty bonds and Treasury certificates, also the redemption on April
15 of about $100,000,000 of loan certificates,
falling due on that date, and the issuance on the
same date of about $190,000,000 of loan certificates. These operations had but little effect
on the volume of member bank borrowings
from the Federal Reserve Banks, partly for
the reason that Reserve Bank rates on paper
secured by Treasury certificates in most cases
are at present in excess of the coupon rates of
the certificates, and thus no longer act as inducement for the discounting with the Reserve
Bank of this class of paper. To judge from
the volume of subscriptions received on the
more recent offerings and from the gradual
decline in the member bank holdings of certificates, the investment demand for these securities was sufficient to absorb the new issues with
a minimum amount of temporary assistance
of the Federal Reserve Banks. As a matter
of fact, Reserve Bank holdings of paper secured
by Treasury certificates fluctuated between
$94,500,000 on March 25 and $68,000,000 on
April 15, and following the most recent certificate issue, show an increase of but $10,300,000
for the last week under review. A reduction
for the four weeks of $51,400,000 in the holdings of paper secured by United States bonds
and notes is due largely to Government purchases of Liberty bonds in connection with
sinking fund operations.
In the following exhibit, there is given a
summary of the weekly changes in the principal
asset and liability items of the Federal Reserve
Banks for the four weeks under review:
MOVEMENT OP PBINCIPAL A S S E T S AND LIABILITIES OF THE T W E L V E F E D E R A L R E S E R V E B A N K S COMBINED.
[In millions of dollars.]
Mar. 25.
Reserves:
Total
Gold
Bills discounted:
Total
Secured by United States Government obligations
Allother
Bills bought in open market
Certificates of indebtedness
Total earning assets
Government deposits
Members' reserve deposits
Total deposits
Federal Reserve notes in circulation
Federal Reserve Bank notes in circulation—net liability..
Reserve percentage
Some changes are shown in the distribution
of discounted bills bjr maturities. Thus, 15day paper at the beginning of April declined
by over $75,000,000, or by slightly more than
the total decline in discounts shown on that
date, though the relative share of shortest-term
paper in the total discounts held shows but a
slight change from 60 to 59 per cent. A relatively large reduction is shown in the holdings
of 90-day paper, while the decline in 30-day
paper was merely proportionate to the total
Apr. 1.
Apr. 8.
Apr. 15.
Apr. 22.
2,422.0
2,210.8
2,461.2
2,246.4
2,481.8
2,264.0
2,485.1
2,286.9
2,492.8
2,298.1
2,286.7
1,010.4
1,276.3
123.1
256.9
2,214.6
950.7
1,263.9
122.5
250.4
2,154.7
936.0
1,218.7
103.6
253.7
2,104.6
929.2
1,175.4
119.6
253.7
2,113.9
942.7
1,171.2
104.5
246.7
2,692.4
2,613.2
2,537.6
2,503.8
2,490.7
114.7
1,674.5
1,840.9
2,930.7
175.5
50.8
82.1
1,672.4
1,789.2
2,908.2
169.7
52.4
48.1
1,661.9
1,745.3
2,894.0
167.2
53.5
31.1
1,685.5
1,754.9
2,868.5
163.2
53.7
67.5
1,648.9
1,749.4
2,856.7
159.6
54.1
decline in discounts. Only holdings of 60-day
paper show botn an absolute and relative gain,
the share of this class of paper increasing from
16 to almost 20 per cent of the total discounts
held. Six-month paper increased from about
$42,000,000 to $47,700,000.
A further decline from $123,000,000 to
$104,500,000 is shown in the holdings of acceptances purchased in open market. With the
lessened supply of these bills, the market,
apparently, was able to absorb the new offer-
MAT, 1921.
621
FEDERAL RESERVE BULLETIN.
ings without enlisting the assistance of the
Federal Reserve Banks. Reduction from
$254,400,000 to $240,900,000 in the total of socalled "Pittman" certificates held by the
banks with the Treasury of the United States
to secure Federal Reserve Bank note circulation
is due in part to the redemption by the Government of $10,000,000 of these certificates held
as excess collateral by the Boston, New York,
Philadelphia, Atlanta, Chicago, and Dallas
banks. A further reduction of $3,500,000 was
made in connection with the issuance of silver
certificates and the deposit with the Treasury
by the New York and Chicago banks of equivalent funds to cover the withdrawals of
Federal Reserve Bank note circulation. An
increase of $3,300,000 in other Treasury certificates represents largely the increase in the
amount held under repurchase agreements,
largely by the New York and Philadelphia
banks. As a consequence of the changes
shown, total earning assets show a decline of
$201,700,000 for the four weeks under review,
and on April 22 stood at $2,490,700,000, or
$931,200,000 below the peak figure reported on
October 15 of last year.
Rediscounting operations are reported by
the Richmond and Dallas Federal Reserve
Banks. On April 22 the Dallas bank reported
$7,400,000 of bills held under rediscount with
the Boston and Cleveland banks, compared
with $14,700,000 held under rediscount with
the Cleveland bank four weeks earlier. During
the last week under review the Richmond
bank rediscounted $10,000,000 of bills with the
New York bank, which no longer appears
among the borrowing Federal Reserve Banks.
Aggregate contingent liabilities of the Federal
Reserve Banks on bills purchased for foreign
correspondents continued unchanged at
$32,400,000.
Total deposits show a decline for the period
of $91,500,000, all classes of deposits, but
largely those on Government account, sharing
in the decline. Federal Reserve note circulation continued its decline from $2,930,700,000
to $2,856,700,000, or at an average weekly rate
of $18,500,000. Between December 23, 1920,
and April 22 of the present year, the reduction
in Federal Reserve note circulation amounted to
$548,200,000, or to 16 per cent, while as compared with the circulation figures for the corresponding Friday in 1920, a decline of $211,600,000, or of 7 per cent, is shown. There is
also noted a reduction during the period of
$15,900,000 in the Federal Reserve Banks' net
liabilities on Federal Reserve. Bank notes, corresponding to a reduction of i$13,500,000 in the
amount of Pittman certificates held by the
banks as cover for these notes.
Owing to the continued imports of gold from
Europe and the purchase of this gold by the
Federal Reserve Banks, gold reserves show a
further gain for the period of $87,300,000. This
gain is partially offset by a loss of $16,500,000
in other reserves, i. e., silver and legals. Since
the beginning of the year gold holdings of the
Federal Reserve Banks, largely through purchase
of imported gold, show a gain of $235,300,000,
while total cash reserves increased during the
same period by $239,100,000. The banks' reserve ratio, owing to the substantial reduction
in note and deposit liabilities and the simultaneous gain in cash reserves, shows a steady rise
during the review period from 50.8 to 54.1 per
cent.
CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR MARCH
AND APRIL, 1921.
[Daily averages. Amounts in thousands of dollars J
Total cash reserves.
Total deposits.
Federal Reserve notes
in circulation.
Reserve percentage.
Federal Reserve Bank.
April.
Boston
New York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago .. .
St Louis
Minneapolis
Kansas City..
Dallas
San Francisco
Total, 1921
1920.. .
1919
1
.
.
March.
April.
March.
April.
March.
April.
March.
257,249
778,936
192,534
286,271
82,173
90,542
337,832
102,009
48,367
73,171
41,448
194,547
228,977
661,950
192,265
308,282
95,992
89,847
351,637
101,513
55,826
82,306
44,141
190,734
112,520
671,799
106,546
143,834
58,054
48,436
245,052
67,133
46,050
76,644
48,681
124,619
114,174
678,428
109,383
153,948
62,004
54,161
258,126
69,555
48,234
83,599
53,998
122,919
257,916
762,884
235.260
283^200
139,854
155,675
474,999
113,397
66,748
91,155
57,512
232,045
263,028
789,258
247,776
296,596
149,234
159,336
487,105
119,181
70,073
97,446
62,931
237,522
69.4
54.3
56.3
67.0
41.5
44.4
46.9
56.5
42.9
43.6
39.0
54.5
60.7
45.1
53.8
68.4
45.4
42.1
47.2
53.8
47.2
45.5
37.8
52.9
2,485,079
2,084,077
2,224,948
2,403,470
2,058,293
2,202,368
1,749,568
1,998,732
1,878,879
1,808,529
2,032,787
1,951,752
2,870,645
3,071,754
2,547,535
2,979,486
3,040,440
2,503,350
53.8
i 43.0
152.0
50.2
*42.7
l
5i.e
Calculated on basis of net deposits and Federal Reserve notes in circulation.
622
MAY, 1921.
FEDERAL RESERVE BULLETIN.
MILLIONS
OF DOLLARS
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES
OF THE FEDERAL RESERVE BANKS
1920 -1921
I: U.S. SECURITIES.
4.- TOTAL DISCOUNTS.
2: PURCHASED ACCEPTANCES.
5.- TOTAL EARNING ASSETS.
3 : DISCOUNTS SECURED BY U.S. GOVERNMENT OBLIGATIONS.
eg
§3
d§
3500
3500
>
\5
V
3000
2500
/
V
V
^Y
y
3000
V
2500
2000
2000
~~—
"V
1500
f- —'
o
1000
500
0
——^»
^— -
1000
-»!••
... 1 ....
*——«_
500
I
^~
~
«I W »II.
JAN. FEB. MAR APR. MATJUNE JULT AUG. SEPT. OCT. NOV. DEC. JAN. FEB.
MAR APR MATJUNE JULT AU6. SEPT. OCT. NOV. VIC.
1921
1920
3 : CASH RESERVES.
4 : F.R.NOTE CIRCULATION.
I: RESERVE RATIO.
2: DEPOSITS.
MILLIONS
OFDOUARS
PER CENT
1500
3500
3500
—
^-^
•*
3000
-»—-
3000
>*—
I002S00
2500
.—<•>
2000
->1500
2
j
CfYY\
r
dJUU 80
s—
1500 60
„—
———
1000
1000 40
500
500
JAN. FEB. MAR APR. MAYJONE juur
I92Q
JJJ6. SEPT. OCT.
NO^ DEC. JAN. FEB. MAR. APR. MATJUNE JUUT AU6. 5EPT. OCT. NOV. PEC.
1921
20
0 0
MAT, 1921.
623
FEDERAL RESERVE BULLETIN.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921.
RESOURCES.
[In thousands of dollars.]
Total.
Gold and gold certificates:
Apr.l
Apr.8
Apr.15
Apr.22
Gold settlement
fund—Federal Reserve Board:
Apr.l
Apr.8
Apr.15
...
Apr.22
Gold with Federal
Reserve Agents:
Apr.l
Apr.8
Apr.15
Apr.22
Gold redemption
fund:
Apr.l
Apr. 8
Apr.15
Apr.22
Total gold reserves:
Apr.l
,
Apr. 8
,
Apr. 15.
Apr. 22.
Legal tender notes,
silver, etc.:
Apr.l
Apr.8
Apr.15
\pr.22
Total reserves:
Apr.l
Apr.8
Apr.15
Apr.22
Bills discounted:1
S e c u r e d by
United States
Government
obligationsApr. 1
Apr.8
Apr.15
Apr.22
All otherApr. 1
Apr.8
Apr. 15
Apr.22
Bills bout8
market:
Apr.l
Apr.8
Apr.15
Apr.22
United States Government bonds:
Apr.l
,
Apr.8
Apr.15
Apr.22
United States Victory notes:
Apr.l
Apr.8
Apr.15
Apr.22
United States certificates of indebtedness:
One year certificates (Pittman
Act)—
Apr.l
Apr.8
Apr.15
Apr.22
All otherApr. 1
Apr.8
Apr.15
Apr.22
Boston.
New
York.
Phila- Clevedelphia. land.
RichSt.
mond. Atlanta. Chicago. Louis.
299,485
313,322
327,637
339,432
7,428
7,506
7,598
7,649
214,187
226,697
240,265
251,345
3,216
3,275
3,294
3,324
6,628
6,710
6,759
6,646
3,422
3,405
3,419
3,403
497,790
504,061
466,241
477,229
36,499
52,963
53,218
53,467
131,932
56,688
61,704
59,899
59,039
55,231
41,478
48,813
73,442
84,000
66,957
72,105
20,192
20,228
,300,345
,306,949
1,346,558
1,321,816
135,988
157,459
164,784
172,172
300,115
299,594
299,077
298,524
120,395
128,495
129,555
115,592
148,819
139,678
146,443
159,594
29,279
17,176
19,260
21,211
36,000
36,000
36,000
36,000
8,454
11,837
10,397
15,150
1,246,439
1,264,010
2,286,879
2,298,071
209,194
235,104
244,860
254,499
682,234
618,979
637,046
645,768
214,792
217,824
198,198
194,733
14,790
15,038
15,328
15,907
151,207
151,272
130,428
122,972
2,461,231
~ 481,834
485,077
492,804
223,984
250,142
260,188
270,406
950,688
936,021
929,186
942,665
4,900
5,435
5,508
5,446
Minne- Kansas
Dallas.
apolis. City.
San
Francisco.
21,300
21,073
21,155
21,292
3,213
3,315
3,351
3,369
8,319
8,351
8,377
8,413
2,605
2,623
2,636
2,724
6,701
7,040
7,223
7,255
17,566
17,892
18,052
18,566
22,982
12,856 62,478
13,667 105,539
13,656 107,792
14,348 103,988
20,857
27,185
20,365
19,822
17,015
13,756
10,348
9.977
27,161
28,521
28,849
28,004
7,210
6,287
4,036
6.506
29,109
39,996
39,230
37,318
196,558
196,347
194,920
194,639
50,377
45,777
42,537
46,297
55,401
54,892
64,213
60,057
175,766
165,299
177,730
170,430
57,916
57,504
67,400
63,265
25,410
26,095
26,266
22,484
36,847
35,161
34,520
33,089
15,826
19,108
18,158
16,485
129,746
121,218
127,398
128,782
6,024
5,360
5,823
7,425
6,194
9,754
11,897
7,034
7,026
6,897
6,769
7,823
24,948
25,161
31,303
37,983
5,134
5,242
4,061
3,958
2,819
3,908
3,330
3,097
4,901
4,174
4,315
3,346
7,697
4,121
4,768
6,203
10,343
10,048
8,520
10,364
191,104
198,838 292.417
184,724 274,459
182,879 280,815
80,185
79,164
76,461
79,716
80,183
80,891
90,146
87,674
284,492
317,072
337,980
333,693
87,120
93,246
95,177
90,414
53,563
52,110
48,321
43,971
71,514
70,479
70,320
67,163
37,434
36,556
34,185
36,449
186,764
189,154
193,200
195.030
3,319
3,447
3,824
4,080
4,810
4,516
4,231
4,415
4,593
5,129
5,098
5,484
11,976
13,103
13,532
13,964
9,392
10,248
10,276
11,158
532
633
590
554
3,242
3,399
3,366
3,449
5,240
5,329
5,421
6,009
2,585
2,683
2,676
2,658
833,441
770,251
767,474
768,740
194,210 285,971
201,865 295,864
188,152 278,283
186,962
84,995
83,680
80,692
84,131
84,776
86,020
95,244
93,158
296,468 96,512
330,175 103,494
351,512 105,453
347,657 101,572
54,095
52,743
48,911
44,525
74,756
73,878
73,686
70,612
42,674
41,885
39,606
42,458
189,349
191,837
195,876
197,688
63,338
54,361
46,770
45,161
335,628
342,653
349,507
367,624
106,646
102,335
104,274
108,198
62,194
59,991
63,038
52,877
49,688
48,148
43,640
56,571 128,391
54,355 127,644
52,433 123,798
126,814
36,665
35,993
35,225
34,584
13,118
13,648
13,142
15,368
34,147
34, 738
33,450
32,804
12,774
11,365
9,243
12,645
49,250
50,158
46,045
L, 263,907 84,291
L, 218,731
[,175,368 60,754
L, 171,191 61,425
288,430
304,324
291,576
275,035
45,987
29,698
40,222
36,035
79,852
77,751
64,428
65,454
64,173
68,940
67,162
64,053
59,843
63,402
299,050
270,348
245,641
247,123
51,020
48,513
43,494
56, 718
58,548
58,516
59,166
64,253
64,895
62,439
64,302
49,366
51,887
52,537
52,187
113,350
113,889
109,308
109,301
122,491
103,607
119,582
104,452
9,431
6,405
7,—
42,185
34,492
50,849
42,085
14,57^
15, to)
16,856
14,018
21,596
19,161
19,184
17,520
2,798
2,243
1,724
1,825
711
727
742
718
12,049
9,298
9,950
8,991
2,225
1,380
1,453
784
25,720
25,547
25,914
25,691
550
550
550
550
1,255
1,255
1,255
1,005
1,434
1,434
1,434
1,434
833
834
833
1,233
1,233
1,233
1,233
113
114
481
621
4,490
4,489
4,490
4,490
1,153
1,153
1,153
1,153
116
116
116
116
247,375
247,375
245,875
240,875
20,436
20,436
20,436
20,436
56,276
56,276
55,276
55,276
28,280
28,280
28,280
28,280
23,799
23,799
23,799
23,799
12,260
12,260
12,260
12,260
16,664
16,664
16,664
15,564
38,612
38,612
38,112
38,112
13,068
13,068
13,068
13,068
8,480
8,480
1,424
5,000
5,934
926
735
874
21
7,1
5,827
174
352
479
305
2
1
1
1
1
1
1
1
77
19
45
108
256
30
45
628
3,106
3,027
3,428
4,083
125
125
185
170
16,718
14,030
11,497
11,595
25
8,480
8,867
3,979
3,979
3,979
3,979
1,697
1,523
1,523
1,409
10,320
10,320
10,320
10,320
8,300
8,300
8,300
4,400
10,880
10,880
10,880
10,880
100
2
165
190
142
8,867
100
624
FEDERAL, RESERVE
MAY, 1921.
BULLETIN.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921—Continued.
RESOURCES—Continued.
[In thousands of dollars.]
Total earning assets:
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Bank premises:
Apr. 1
Apr. 8
Apr. 15
Apr. 22
5 per cent redemption
fund against Federal
ReserveBanknotes:
Apr. 1
Apr.8
Apr. 15
Apr. 22
Uncollected items:
Apr. 1
Apr.8
Apr. 15
Apr. 22
All other resources:
Apr. 1
Apr.8
Apr. 15
Apr. 22
Total resources:
Apr. 1
Apr.8
Apr. 15
Apr. 22
i Includes bills discounted for other
Federal Reserve
Banks:
Apr. 1
Apr. 8
Apr. 15
Apr. 22
^Includes bankers'
acceptances bought
from other Federal
R e s e r v e Banks
without their indorsement:
Apr. 1
Apr.8
Apr. 15
Apr. 22
Phila- Clevedelphia. land.
RichSt.
Minne- Kansas
mond. Atlanta. Chicago. Louis. apolis. City. Dallas.
Total.
Boston.
New
York.
2,613,183
2,537,603
2,503,768
2,490,720
178,225
151,480
136,227
134,748
725,198
744,000
754,397
742,885
197,845
178,162
191,940
190,591
188,305
181,546
193,854
187,549
133,598
130,879
127,539
127,899
20,651
21,002
21,514
21,782
3,232
3,269
3,290
3,307
4,708
4,708
4,708
4,910
506
501
508
520
1,716
1,733
1,802
1,802
1,635
1,640
1,752
1,768
11,856
11,647
12,166
11,562
1,072
1,072
1,072
1,072
1,916
1,840
1,835
1,812
1,300
1,300
1,300
1,300
1,239
1,239
1,239
1,239
554,315
544,255
618,107
550,950
41,898
38,255
47,872
46,390
115,590
111,609
135,855
114,524
49,254
50,323
57,072
49,148
11,200
11,454
11,892
12,310
519
505
534
614
3,062
3,252
3,259
3,359
5,672,436
5,607,795
5,652,524
5,580,128
448,930
444,723
449,183
456,537
1,683,915
1,635,660
1,667,528
1,636,230
14,764
12,405
12,169
17,437
1,500
2,000
141,225 482,669
135,917 450,410
130,167 422,036
133,202 425,638
104,387
1001137
94,438
96,120
729
730
730
730
2,828
2,828
3,106
3,106
602
602
602
601
664
566
744
653
53,860
47,851
60,080
51,194
44,417
44,118
48,905
43,406
572
539
592
601
607
655
707
754
443,687
432,690
439,564
429,122
531,698
528,888
535,965
527,433
San
Francisco.
78,432
80,792
80,284
83,161
117,773
118,991
115,246
116,319
74,540
75.552
74,084
73,236
190,986
189,737
183,556
179,372
626
626
626
626
599
599
1,741
2,032
2,032
2,052
1,802
1,807
1,820
1,821
529
529
541
541
2,006
1,930
2,085
1,899
523
523
523
523
367
408
599
417
916
916
916
916
586
586
665
665
665
544
23,565
22,934
23,562
21,615
76,282
69,829
78,118
73,552
29,603
36,592
34,228
29,855
15,907
15,374
16,005
16,180
39,503
42,039
44,002
40,190
26,736
27,099
27,288
27,171
37,700
38,232
45,120
37,725
493
709
1,206
678
683
527
622
572
1,706
1,782
2,213
2,233
567
558
579
588
148
147
169
187
578
582
608
582
1,763
1,691
919
1,716
502
507
484
426
265,740
261,628
260,696
258,483
251,642
246,694
251,069
249,930
861,959
856,954
859,070
854,085
232,218
241,930
235,847
229,284
149,548
150,063
146,567
145,069
235,267 148,101 419,731
238,438 148,620 421,507
236,490 144,303 426,242
230,671 146,988 416,296
14,764
12,405
10,669
5,437
10,000
1,562
262
203
25
521
171
162
1,000
50
16
16
16
LIABILITIES.
Capital paid in:
7,838
101,137
Apr. 1
7,838
101,226
Apr. 8
7,838
101,274
Apr. 15
7,838
101,231
Apr. 22
Surplus:
15,711
202,036
Apr. 1
202,036
15,711
Apr. 8
202,036
15,711
Apr. 15
202,036
15,711
Apr. 22
Government deposits:
82,099
Apr. 1..
4,741
48,053
Apr.8
210
31,117
Apr. 15
7,445
67,483
Apr.22
Due to members—
reserve account:
1,672,402 105,677
Apr. 1
1,661,938 107,105
Apr. 8
1,685,503 107,289
Apr. 15
1,648,858 107,857
Apr.22
Other deposits, including foreign government credits:
34,732
910
Apr. 1
35,325
Apr.8
791
38,323
Apr. 15
1,203"
33,010
Apr.22
Total deposits:
Apr. 1
1,789,233 113,452
Apr. 8
1,745,316 112,637
Apr. 15
1,754,943 108,702
Apr.22
1,749,351 116,190
26,488
26,488
26,488
26,400
8,600
8,600
8,600
8,600
10,880
10,963
10,963
10,955
5,331
5,328
5,372
5,386
4,047
4,049
4,059
4,067
14,172
14,172
14,172
14,202
4,437
4,437
4,437
4,443
3,499
3,500
3,500
3,499
4,488
4,488
4,475
4,475
4,132
4,132
4,132
4,133
7,225
7,231
7,238
7,233
56,414
56,414
56,414
56,414
17,010
17,010
17,010
17,010
20,305
20,305
20,305
20,305
10,561
10,561
10,561
10,561
8,343
8,343
8,343
8,343
28,980
28,980
28,980
28,980
8,346
8,346
8,346
8,346
6,980
6,980
9,159
9,159
9,159
9,159
6,033
6,033
6,033
6,033
14,194
14,194
14,194
14,194
10,096
5,921
633
18,073
4,028
2,354
2,715
5.488
6,106
4,404
3,075
4,578
7,793
2,046
1,513
4,729
7,557
5,131
1,594
1,430
13,756
6,047
3,648
9,974
3,141
2,578
2,824
3,511
3,918
4,129
2,020
2,320
5,970
2,446
5,156
3,022
6,637
3,707
1,231
3,006
6,232
4,549
6,498
3,907
659,620
631,535
661,184
638,884
107,870
104,043
103,666
101,218
139,602
138,965
139,390
138,823
55,110
56,442
54,095
53,048
44,598
43,222
43,867
44,632
231,558
237,127
240,504
235,794
61,500
63,732
62,962
61,535
43,755
44,714
43,785
42,920
70,459
77,076
71,862
72,817
44,535
45,756
45,115
44,208
108,118
112,221
111,784
107,122
15,776
17,432
18,460
13,695
1,097
743
780
1,095
927
455
457
505
539
390
369
389
371
2,467
2,315
2,699
3,485
695
836
833
492
523
662
562
549
493
790
970
441
404
555
546
10.532
10,177
10,026
9,205
112,887 146,451
107,286 144,149
107,478 143,560
107,695 144,328
63,358
58,945
56,113
58,316
52,545
48,722
45,850
46,433
247,781
245,489
216,851
249,253
65,629
67,005
66,622
65,879
48,165
49,366
46,467
45,802
76,978
80,015
77,808
76.809
685,492
654,888
680,283
670,652
51,613 12 i, 882
49,867 126,947
46,901 128,308
47,760 120,234
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FRIDAYS, APR. 1 TO 22, 1921—Conti nue d.
LIABILITIES-Continued.
[In thousands of dollars.]
Total.
Federal Reserve notes
in actual circulation:
Apr. 1
Apr.8
Apr. 15
Apr. 22
Federal Reserve Bank
n o t e s in circulation—net liability:
Apr.l
Apr.8
Apr. 15
Apr.22
Deferred availability
items:
Apr.l
Apr.8
Apr.15
Apr.22
All other liabilities:
Apr.l
Apr.8
Apr.15
Apr.22
Total liabilities:
Apr.l
Apr.8
Apr.15
Apr.22
MEMORANDA.
Ratio of total reserves
to deposit and Federal Reserve note
liabilities combined, per cent:
Apr.l
Apr.8
Apr.15
Apr.22
Contingent liability
as indorser on discounted paper rediscounted
with
other Federal Reserve Banks:
Apr.l
Apr.8
Apr.15
Apr.22
Bankers' acceptances
sold to other Federal Reserve Banks
without indorsement:
Apr.l
Apr.8
Apr.15
Apr.22
Contingent liability
on bills purchased
for foreign correspondents:
Apr.l
Apr.8
Apr.15
Apr.22
Boston.
New
York.
Phila- Clevedelphia. land.
cisco.
476,592
478,326
473,559
473,814
116,103
115,111
113,756
112,183
68,017
67,360
66,545
66,096
93,325
92,460
90,849
90,019
8,658
8,580
8,489
8,300
13,488
13,537
13,311
13,059
28,412
27,516
26,475
25,406
7,037
7,081
7,140
7,055
7,043
7,062
6,985
6,939
11,458
11,316
11,083
11,028
5,496
5,839
5,639
5,594
8,172
8,546
8,379
8,131
44,755
42,264
53,123
46,598
33,032
35,215
38,415
34,887
17,314
17,096
18,279
17,907
56,809
53,095
59,483
52,501
28,899
38,109
33,667
14,066
13,898
14,130
13,704
37,387
38,422
40,519
36,448
19,982
22,414
22,377
24,816
30,078
29,796
34,315
31,213
2,767
2,908
3,184
3,345
3,053
3,233
3,458
3,609
1,847
1,983
2,068
2,201
2,351
2,494
2,579
2,737
9,213
9,376
9,550
9,929
1,767
1,841
1,879
1,980
1,778
1,897
1,960
2,049
2,472
2,578
2,597
2,733
1,630
1,728
1,760
1,808
3,327
3,527
3,583
3,759
1,683,915
1,635,660
1,667,528
1,636,230
443,687
432,690
439,564
429,122
531,698
535,965
527,433
265,740
261,628
260,696
258,483
251,642
246,694
251,069
249,930
861,959
856,954
859,070
854,085
23i 218
241,930
235,847
229,284
149,548
150,063
146,567
145,069
235,267
238,438
236,490
230,671
148,101
148,620
144,303
146,988
419,731
421,507
426,242
416,296
56.7
53.8
53.2
53.9
55.1
58.7
54.8
54.8
66.2
68.6
65.2
67.0
41.2
41.8
41.2
42.6
41.1
42.8
46.6
45.7
40.9
45.6
48.8
48.1
53.1
56.8
58.5
57.0
46.6
45.2
43.3
39.8
43.9
42.8
43.7
42.3
38.5
38.6
38.0
40.6
53.1
53.6
54.6
56.2
258,547
257,265
256,329
259,859
169,722
167,152
163,187
159,590
15,084
15,204
15,329
15,301
26,544
24,537
23,173
22,056
17,335
16,823
16,117
15,682
20,995
21,111
21,067
21,039
451,270
445,108
507,724
454,238
35,384
33,104
42,233
38,502
87,750
78,078
99,823
84,941
45,814
43,617
51,360
43,323
50,885
52,993
54,833
56,982
2,914
2,964
3,041
3,136
17,766
18,464
19,174
19,696
5,672,436
5,607,795 444,723
5,652,524 449,183
5,580,128 456,537
60.2
67.6
71.3
71.9
783,461 239,274 285,259 142,953
141,016
776,791 236,446
762,173 235,815 283,489 139,678
756,071 233,467 280,599 138,832
14,764
12,405
12,169
17,437
537
187
178
2,336
2,336
2,336
2,336
12,117
12,122
12,113
12,114
59,215 231,853
58,607 231,266
57,461 230,225
56,844 231,532
14,764
12,405
12,169
7,437
10,000
1,562
262
203
25
32,373
32,378
32,369
32,370
San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Fran-
153,554
152,453
158,648
157,384
5,908,153
5,893,964
2,868,527
2,856,700
52.4
53.5
53.7
54.1
Richmond. Atlanta. Chicago.
1,000
50
2,560
2,560
2,560
2,560
2,624
2,624
2,624
2,624
1,568
1,568
1,568
1,568
1,152
1,152
1,152
1,152
3,808
3,808
3,808
3,808
25
25
25
25
1,504
1,504
1,504
1,504
864
832
832
832
832
1,536
1,536
1,536
1,536
1,472
1,472
1,472
1,472
MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY ALL FEDERAL RESERVE BANKS
COMBINED.
[In thousands of dollars.]
Total.
Bills discounted:
Apr. 1
Apr.8
Apr.15
Apr.22
Bills bought in open market:
Apr. 1
Apr.8
Apr.15
Apr.22
United States certificates of indebtedness:
Apr.l
Apr.8
Apr.15
Apr.22
Within
15 days.
16 to SO
days.
31 to 60
days.
61 to 90
days.
2,214,595
2,154,752
2,104,554
2,114,256
1,287,221
1,246,667
1,231,807
1,243,261
224,009
217,566
208,163
211,712
393,659
402,366
410,801
412,075
269,649
248,446
207,684
199,475
122,491
103,607
119,582
104,451
42,852
35,245
57,335
50,389
32,125
28,108
24,860
22,921
34,510
31,135
28,626
24,743
13,004
9,119
8,761
6,398
250,358
253,678
253,699
246,702
6,959
6,425
14,758
4,000
4,500
2,052
1,772
5,108
4,563
10,625
7,097
7,722
8,945
9,125
7,604
Over 90
days.
40,057
39,707
46,099
47,733
226,569
229,245
217,139
223,369
625
626
MAY, 1921.
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE NOTES.
FEDERAL RESERVE AGENTS' ACCOUNTS ON FRIDAYS, APR. 1 TO 22, 1921.
[In thousands of dollars.]
Total.
Phila- Clevedelphia. land.
Boston.
New
York.
106,410
104,010
104,210
100,610
268,001
268,000
268,000
268,000
28,540
26,540
28,540
24,420
43,430
42,270
41,630
38,770
28,229
25,689
24,089
25,108
79,476
75,805
63,565
78,815
271,565
270,436
270,561
273,049
918,095
920,431
901,637
887,757
263,943
261,043
259,103
257,259
315,146
313,895
310,508
309,287
149,221
147,162
146,242
145,982
159,045
160,206
169,767
166,861
5,600
5,600
5,600
5,600
176,925
176,924
176,924
176,925
15,388
21,859
19,184
16,572
7,190
16,670
16,153
15,599
St.
Richmond. Atlanta. Chicago. Louis.
San
Minne- Kansas Dallas. Franapolis. City.
cisco.
RESOURCES.
Federal Reserve notes
on hand:
Apr.l
821,271
814,484
Apr.8
Apr. 15
Apr. 22
806,642
Federal Reserve notes
outstanding:
Apr.l
3,263,111
3,246,061
Apr.8
3 224,111
Apr. 15
3,198,002
Apr.22
Collateral security for
Federal Reserve
notes outstanding:
Gold and gold
certificatesApr. 1
233,853
Apr.8
333,852
Apr. 15
233,852
Apr.22
233,853
Gold redemption
fundApr. 1
106,157
Apr.8
120,988
Apr. 15
111, 570
Apr.22
104,409
Gold settlement
fund—Federal
ReserveBoard—
Apr.l
960,335
Apr.8
952,109
Apr. 15
1,001,136
Apr.22
983,554
Eligible paper—
Amount requiredApr. 1.... 1,962,766
Apr.8.... 1,939,112
Apr. 15... 1,877,553
Apr. 22... 1,876,186
Excessamount
held—
Apr.l.... 315,696
Apr.8.... 277,427
Apr. 15... 296,452
Apr.22... 289,299
Total resources:
7,663,189
Apr.l
7,584,033
Apr.8
7,547,497
Apr.15
7,491,945
Apr.22
148,441
153,200
154,540
155,060
520,640 139,099
514,014 138,509
513,745 136,904
511,845 134,669
3,500
3,500
3,500
3,500
23,775
23,775
23,775
23,775
26,840
28,320
28,320
27,520
12,765
11,890
12,130
11,700
4,400
4,600
3,740
4,600
29,439
28,859
28,759
28,339
45,300
45,301
45,300
43,700
70,336 102,204 63,847 289,970
69,896 101,318 62,709 286,442
68,827 100,536 61,859 284,422
68,275 100,006 60,606 282,406
6,110
6,110
6,110
6,110
13,052
13,052
13,052
13,052
4,891
4,891
13,006
13,106
12,166
11,203
17,783
17,572
16,145
15,864
3,877
2,277
2,037
1,797
2,401
3,392
4,713
3,557
15,121
14,655
14,085
14,786
2,475
4,164
4,559
3,524
2,158
2,843
3,014
3,232
3,487
3,801
2,160
2,729
4,701
4,983
4,033
4,360
18,570
15,666
13,321
11,186
115,000
130,000
140,000
150,000
116,000 107,389
106,000 115,389
106,000 117,389
106,000 104,389
155,000
155,000
155,000
155,000
46,500
43,500
40,500
44,500
49,500
48,000
56,000
53,000
160,645
150.644
163.645
155,644
49,331
47,230
56,731
53,631
10,200
10,200
10,200
6,200
33,360
31,360
32,360
30} 360
6,234
9,234
9,234
7,234
111, 176
105,552
114,077
117,596
135,577
112,977
105,777
100,877
617,980
620,837
602,560
589,233
143,548
132,548
129,548
141,667
118,588 98,844 103,644
117,548 101,385 105,314
115,588 103,705 105,554
114,648 99,685 106,804
344,874
348,715
336,015
341,415
81,183
81,005
69,504
71,404
44,926
43,801
42,561
45,791
65,357
66,157
66,016
66,917
48,021
43,601
43,701
44,121
160,224
165,224
157,024
153,624
21,483
17,160
18,953
12,575
57,792
61,933
2,324
5,040
19,332
4,296
44,448
39,012
52,991
47,745
17,037
15,149
7,909
11,065
20,790
13,805
7,455
10,196
94,328
58,569
43,234
41,372
4,869
10,660
9,817
23,727
27,467
28,167
27,810
33,187 13,741
33,571 19,169
29,926 17,611
30,150 20,317
17,012
10,668
12,395
12,023
671,023
662,042
654,312
659,283
2,123,144
2,141,810
2,129,066
2,105,447
558,750
553,666
566,078
543,234
718,170
709,072
715,637
705,089
343,708
335,162
324,482
328,137
418,356
410,022
410,554
422,733
1,284,049
1,239,797
1,225,264
1,220,122
4,084,382
4,060,545
4,026,934.
4,004,644
377,975
374,446
374,771
373,659
1,186,096
1,188,431
1,169,637
1,155,757
292,483
287,583
287,643
281,679
358,576
356,165
352,138
348,057
177,450
172,851
170,331
171,090
238,521
236,011
233,332
245,676
669,081
667,214
668,285
666,905
165,939
166,829
165,224
162,189
83,101
81,786
80,957
79,975
106,604
335,270
105,918 9i;568 331,743
| 104,276 90,618 329,722
326,106
104,606
1,300,345
1,306,949
1,346,558
1,321,816
135,988
157,459
164,784
172,172
300,115
299,594
299,077
298,524
120,395
128,495
129,555
115,592
196,558
196,347
194,920
194,639
50,377
45,777
42,537
46,297
55,401
54,892
64,213
60,057
175,766
165,299
177,730
170,430
57,916
57,504
67,400
63,265
25,410
26,095
26,266
22,484
36,847 15,826 129,746
35,161 19,108 121,218
34,520 18,158 127,398
33,089 16,485 128,782
2,278,462
2,216,539
2,174,005
2,165,485
157,060
130,137
114,757
113,452
636,933
653,785
660,352
651,166
145,872
137,588
148,880
145,963
163,036 115,881
156,560 116,534
168,579 111,614
162,393 110,750
124,434
119,119
113,009
117,000
439,202
407,284
379,249
382,787
89,849
85,874
80,164
81,221
68,653
71,268
70,728
73,601
98,544
99,728
95,942
97,067
61,762
62,770
61,312
64,438
177,236
175,892
169,419
165,647
7,663,189
7,584,033
7,547,497
7,491,945
671,023
662,042
654,312
659,283
2,123,144
2,141,810
2,129,066
2,105,447
558,750
553,666
566,078
543,234
718,170
709,072
715,637
705,089
418,356
410,022
410,554
422,733
1,284,049
1,239,797
1,225,264
1,220,122
313,704
310,207
312,788
306,675
177,164
179,149
177,951
176,060
241,995
240,807
234,738
234,762
170,874
173,446
170,088
169,868
642,252
628,853
626,539
620,535
313,704 177,164 241,995 170,874 642,252
310,207 179,149 240,807 173,446 628,853
312,788 177,951 234,738 170,088 626,539
306,675 176,060 234,762
620,535
LIABILITIES.
Net amount of Federal Reserve notes
received from
Comptroller of the
Currency:
Apr.l
Apr. 8
Apr.15
Apr.22
Collateral received
from Federal Reserve Bank:
GoldApr. 1
Apr.8
Apr.15
Apr.22
Eligible paper—
Apr. 1
Apr.8
Apr.15
Apr.22
Total liabilities:
Apr.l
Apr.8
Apr.15
Apr.22
343,708
335,162
324,482
328,137
MAY, 1921.
627
FEDERAL, RESERVE BULLETIN.
INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES DURING THREE MONTHS ENDING MAR. 31, 1921.
[In thousands of dollars.]
Boston.
New York.
Chicago.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Federal Reserve
Bank from which
received or to
ReReReReReReReReReReReReReRewhich returned. ceived.
turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned. ceived. turned.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total:
Jan. 1 to
31,1921
Jan. 1 to
31,1920
Jan. 1 to
31, 1919
Jan. 1 to
31,1918
1,700
23,647
1,757
14,281
5,308
3,631
1,314
1,512
540
114
259
264
660
4,234
3,451
1,008
1,734
265
129
437
388
328
115,105
38,952
77,681
29,113
59,635
62,S06
20,767
21,629
22,397
1,755
1,169
1,318
1,111
1,691
368
120
227
223
830
12,897
12,742
1,687 14,353
997 7,666
l,2iO 4,833
755 5,672
1,461 6,618
211 1,822
57*
150
305 1,085
398 1,460
383 3,577
31,209
20,329
60,557
20,080
17,731
54,912
11,816
22,275
3,619
5,281
23,791
24,809
17,286
8,988
9,678
17,496
2,197
1,607
2,254
2,181
4,818
945
5,378
3,531
2,694
2,748
7,104
2,505
310
3,3 f 2
965
1,226
8,453
3,376
4,719
1,341
4,827
3,618
2,713
8,727
1,458
3,462
1,551
6,705
1,616
7,033
1,112
1,497
679
552
1,247
5,770
666
298
568
374
358
2,7*2
1,101
566
76
208
2^0
405
3,413
3,954
233
719
2,429
521
10.763
3,903
3,916
1,569
4,693
4,326
4,633
3,287
943
2,361
28,012
41,051
22,195
22,080
25,923
15,684
21,703
24,624
57,990
35,094
15,921
19,868 45,941
17,071
26,909
22,779
31,055
23,430
12,995
15,745 34,432
28,435
6,734
10,628
6,357
3,000
4,456
772
8,478
1,024
1,389
3,926
1,089
5,543
1,311
2,670
2,742
3,920
1,467
397
100
916
660
199
1,449
2,024
103
422
1,413
703
23,152
20,188
17,762
17,366
17,649
18,773
2,443
5,309
Mar.
Mar.
Mar.
Mar.
St. Louis.
Federal Reserve Bank from
which received or to which
returned.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
Received.
Total:
Jan. 1 to Mar. 31,1921.
Jan. 1 to Mar. 31,1920..
Jan. 1 to Mar. 31,1919..
Jan. 1 to Mar. 31,1918..
374
1,795
532
2,362
555
1,941
10,550
215
2,050
1,382
17,063
15,743
12,071
3,063
Minneapolis.
Kansas City.
RoReReReReturned. ceived. turned. ceived. turned.
211
2,000
269
1,489
401
3,980
4,200
San Francisco.
1,012
17,893
4,307
152
1,616
129
419
98
235
4,640
462
115
588
107
307
73
97
4,223
227
461
3,019
1,890
714
842
221
1,467
24,193
23,667
17,087
7,684
10,281
11,184
9,926
3,455
Dallas.
6,721
San Francisco.
ReReReReceived, turned. ceived. turned.
1,922
437
771
926
731
3,266
3,037
593
229
1,063
26 \
671
208
425
3,777
1,974
842
667
96
1,451
451
1,935
393
539
645
2,293
951
1,892
100
1,775
220
1,424
257
501
278
1,461
1,462
1,367
188
2,078
2,259
2,326
1,782
1,722
1,189
1,675
7,951
6,737
5,733
523
16,577
13,975
13,700
12,425
12,957
12,467
6,675
2,526
12,163
8,595
5,892
3,124
10,911
6,725
5,017
2,832
407
4,391
325
512
194
528
2,337
729
1,293
1,720
2,314
14,750
12,802
7,426
2,696
849
3,551
655
1,259
418
717
4,316
781
1,529
2,327
1,213
1,480
16,234
1,785
8,653
8,715
Total.
ReReceived. turned.
20,617
108,966
28,153
32,708
20,127
24,816
34,929
24,708
7,401
13,183
11,937
17,903
32,261
57,897
38,417
40,033
22,437
22,464
55,669
16,365
10,170
16,577
12,354
14,530
17,615 345,448
14,575 271,951
10,988 226,516
1,688
80,658
339,174
265,636
242,749
73,670
628
FEDERAL RESERVE BULLETIN".
MAT,
1921.
CONDITION OF MEMBER BANKS IN LEADING CITIES.
Credit liquidation as indicated by reductions
in loans and discounts of the member banks in
leading cities reporting weekly to the Federal
Reserve Board, continued uninterruptedly for
the four weeks ending April 15. Total loans of
these banks were $12,365,000,000 on that
date, compared with $12,630,000,000 four
weeks earlier, indicating a reduction in loans
of $265,000,000 for the period. Commensurate decreases in deposit liabilities and in
accommodation at the Federal Eeserve Banks
are noted.
Following is a chart showing changes in the
principal assets and liabilities of member banks
for 1920 and 1921 to date. Also a tabular
summary for the most recent five weeks.
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES
OF REPORTING MEMBER BANKS
1920-1921
BILLIONS
OF DOLLARS
I:
2:
3:
4:
5:
ACCOMMODATION AT FEDERAL RESERVE BANKS .
U.S. OBLIGATIONS AND LOANS SECURED THEREBY.
NETDEr4ATiD DEPOSITS.
TOTAL LOANS AHD DISCOUNTS.
TOTAL LOANS AND INVESTMENTS.
ii
ia
i?
18
5
17
l£
ID
I
1$
15
14
4
13
12
3
II
10
9
8
7
6
5
4
3
2
———
9
V*"
I
0
i
- \
JAN. FEB. MAR APR. MAYJUKE JULY AUG. SEPT. OCT. NOV. DEC. JATt. FEB MAR. APR. MAY JUWE JUDT A U 6 . SEPT. OCT.
1920
1921
ncfv. DEC.
14
13
12
II
10
9
8
7
6
S
4
3
2
I
0
MAY, 1921.
629
FEDERAL RESERVE BULLETIN".
MOVEMENT OF PKINCIPAL ASSETS AND LIABILITIES OF REPORTING MEMBER BANKS.
[In millions of dollars.]
March 18. March 25. April 1.
Number of reporting 1banks
,
Loans and discounts:
Secured by United States Government obligations
,
Secured by stocks and bonds (other than United States Government obligations)
All other
Total loans and discounts1
United States bonds
United States Victory notes
United States certificates of indebtedness
Other bonds, stocks, and securities
,
,
Total loans and discounts, and investments1
Reserve balance with Federal Reserve Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
,
,
,
,
Bills payable and rediscounts with Federal Reserve Bank, total
Secured by United States Government obligations
Allother
Ratio of accommodation at Federal Reserve Banks to total loans and investments..,
1
821
820
752
2,982
8,731
740
2,961
8,664
12,559
871
190
231
2,052
12,465
872
191
218
2,031
12,365
874
191
287
2,039
15,983
15,903
348
1,260
315
10,186
2,932
329
1,263
300
10,271
2,925
328
15,777
1,252
317
10,204
2,923
304
15,756
1,270
308
10,263
2,924
329
1,719
769
950
10.7
1,764
772
992
11.0
1,685
709
976
10.6
1,630
696
934
10.3
1,581
694
887
10.0
824
823
761
3,015
8,854
760
3,011
8,828
12,630
866
192
339
2,049
12,599
875
192
275
2,042
16,076
1,252
321
10,376
2,926
Including bills rediscounted with Federal Reserve Bank.
Liquidation is shown for all classes of loans—
those secured by United States Government
obligations declined from $761,000,000 on
March 18 to $740,000,000 on April 15; those
secured by stocks and bonds declined from
$3,015,000,000 to $2,961,000,000, and all other
loans, representing largely commercial paper,
show a reduction from $8,854,000,000 to
$8,664,000,000. This reduction of $190,000,000
in commercial loans constitutes over 70 per cent
of the total loan liquidation for the four weeks.
Member bank holdings of United States
bonds fluctuated somewhat from week to week
and stood at $874,000,000 on April 15, compared with $866,000,000 four weeks earlier.
Holdings of Victory notes remained practically
constant throughout the period, while Treasury
certificates on hand followed the usual course
by showing reductions for the three weeks after
the allotment of the March 15 issue and an increase on April 15 when a new issue was floated.
For the period as a whole, Treasury certificates
show a reduction of $52,000,000. Comparatively slight fluctuations in holdings of other
bonds, stocks, and securities resulted in a reduction of $10,000,000 for the four weeks under
review. As a consequence of all these changes,
total loans and investments of all reporting
banks show an uninterrupted decline for each
week of the period under review and stood on
April 15 at $15,756,000,000, or $320,000,000
below the March 18 amount. For the six
months period since October 15, when reporting member bank loans and investments stood
at the peak figures of $17,284,000,000, the ag-
822
—
755
3,028
8,776.
April 8. April 15.
gregate reduction under this head amounts to
$1,528,000,000, or approximately at the rate
of $60,000,000 per week.
Accommodation of member banks at the
Federal Reserve Banks shows a decline for
the four-week period from $1,719,000,000 to
$1,581,000,000, and the ratio of accommodation declined from 10.7 to 10.0 per cent. For
the member banks in New York City a total
reduction of $155,000,000 in loans and investments is shown between March 18 and April
15. At the same time their accommodation
at Federal Reserve Banks declined from
$651,000,000 to $552,000,000, and the ratio
of accommodation declined from 12.4 to 10.8
per cent.
Government deposits, which amounted to
$348,000,000 on March 18, the first Friday
after the Treasury transactions in connection
with the March 15 income-tax payments, declined to $304,000,000 on April 8, but increased
to $329,000,000 by April 15, largely as a result
of the allotment on that date of a new issue
of Treasury certificates. Other demand deposits (net) showed considerable fluctuations for
the period, but stood on April 15 about
$113,000,000 below the March 18 amount.
A decrease of $2,000,000 in time deposits is
noted for the period. Reserve balances of
member banks with the Federal Reserve Banks
showed comparatively slight changes, the
April 15 amount being $18,000,000 in excess
of the figure for March 18. Cash in vault declined from $321,000,000 at the beginning to
$308,000,000 at the end of the review period.
630
FEDERAL RESERVE
MAT,
1921.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO
APR. 15, 1921.
1. ALL REPORTING MEMBER BANES IN EACH FEDERAL RESERVE DISTRICT.
[In thousands of dollars.]
Total.
NewBoston. York.
Number of reporting banks:
Mar.25
823
822
Apr.l
821
Apr.8
820
Apr.15
Loans and discounts, including bills rediscounted with
Federal Reserve Bank:
Secured by United States
Government
obligations759,917
Mar. 25
-755,451
Apr.l
752,056
Apr.8
740,055
Apr.15
Secured by stocks and
bonds (other
than
United States Government obligations)—
3,011,152
Mar.25
3,027,935
Apr.l
2,981,939
Apr.8
2,960,944
Apr.15
All other—
8,827,750
Mar.25
8,775,553
Apr.l
8,730,694
Apr.8
Apr.15
----- 8,663,590
Total loans and discounts, including bills
rediscounted with Federal Reserve Bank—
12,598,819
Mar.25
12,558,939
Apr.l
12,464,689
Apr. 8
12,364,589
Apr.15
United States bonds:
874,856
Mar.25
870,776
Apr.l
871,735
Apr. 8
874,117
Apr.15
United States Victory notes:
192,68^
Mar.25
190,199
Apr. 1
191,37'
Apr. 8
190,891
Apr.15
United States certificates of
indebtedness:
274, 846
Mar.25
231,381
Apr.l
218,334
Apr.8
286,526
Apr.15
Other bonds, stocks and
securities:
2,041,780
Mar.25
2,051,418
Apr.l
2,030,769
Apr.8
2,039,525
Apr.15
Total loans and discounts,
and investments, including
bills rediscounted with
Federal Reserve Bank:
15,982,988
Mar.25
15,902,713
Apr.l
15,776,904
Apr.8
15,755,648
Apr.15
Reserve
with
Federal
Reserve Bank:
1,259,573
Mar.25
1,263,106
Apr.l
1,251,801
Apr.8
1,269,570
Apr.15
Cash in vault:
314,764
Mar.25
300,469
Apr.l
316,684
Apr.8
307,943
Apr.15
Net demand deposits:
10,185,727
Mar.25
10,270,573
Apr.l
10,204,045
Apr.8
Apr. 15
10,263,390
Time deposits:
2,932,472
Mar.25
2,925,227
Apr.l
2,923,013
Apr.8
2,923,718
Apr.15
Philadelphia.
113
112
112
112
MinKanSan
St.
Cleve- Rich- Atlan- Chicasas
Dallas. FranLouis. neapoland. mond. ta.
go.
City.
lis.
cisco.
113
113
113
113
37
37
37
37
24,691
24,037
23,964
22,848
92,724
92,922
92,561
90,105
22,623
23,667
23,480
23,596
194,0861,222,797
194,1031,242,761
189,67411,233,643
186,8021,220,512
203,704 347,657 112,505 57,626
206,921 347,898 116,664 56,186
204,335 347,786 112,361 55,460
202,885 349,049 112,174 55,485
438,842
432,181
426,308
426,961
652,102 3,087,365
650,530^3,055,694
644,495J3,039,621
637,175 3,012,644
409,463
406,774
398,608
402,159
707,938
699,223
689,626
690,062
334,210
335,069
336,380
335,307
323,617 1,353,775
318,942 1 354,552
314:,322
~ ~ -1' 337,979
313,i, 285 1 321,327
335,175
330,417
328,774
322,528
220,141
222,453
239,764
236,762
399,334
398,804
398,047
396,823
222,707
221,141
221,995
217,919
781,923
781,954
781,083
777,599
891,1814,649,240
889,052 4,636,023
874,305J4,612,000
863,34114,566,640
685, 0331 ,118,029
682, 5241 ,110,286
671, 0561 ,100,916
673, 3841 ,102,590
474,584
480,310
477,158
474,471
405,934 1,885,341
3 9 9 ,1651
" " 1,879,655
393', 746 1,856,848
391,618 1,838,393
478,563
475,077
472,767
467,640
283,402
283,919
281,625
279,688
497,387
494,955
495,347
488,098
268,244
266,327
267,390
263,185
061,881
961,646
961,531
955,541
16,690 35,745 37,301
16,684 35,988 37,487
16,795 35,192 36,726
16,684 34,554 37,016
97,988
99,374
99,909
99,751
44,993
44,419
40,136
39,364
339,078
337,568
338,736
333,484
88
71,866
68,829
68,113
68,340
62,434
63,165
63,504
63,479
27,869
28,577
28,417
26,990
13,428
13,243
13,166
13,231
22,727
22,206
22,570
21,762
7,906
7,730
7,789
7,627
29,578
29,088
29,620
29,229
120,765 49,833 75,326 37,631 150,380
120,993 48,223 73,945 37,456 150,604
120,513 28,695 74,730 37,606 150,828
121,516 29,695 69,513 37,639 148,713
33,025 301,369
33,041 300,557
32,993! 304,606
33,183 305,293
43,716
44,068
44', 144
44,456
97,440
97,141
95,908
97,407
65,625
60,571
60,587
60,904
39,618
39,570
39,758
39,498
77,455
77,628
76,891
77,150
28,884
28,667
28,226
28,221
6,024
6,024
6,028
6,028
83,121
82,889
82,303
82,521
10,099
10,072
10,119
10,025
20,523
20,466
20,277
20,356
7,702
7,711
7,719
7,193
3,045
3,094
3,105
3,142
34,923
33,346
34,846
34,373
2,309
2,221
2,105
2,189
1,247
1,243
1,238
1,209
3,660
3,179
3,083
2,957
2,028
1,895
1,835
1,831
18,006
18,059
18.719
19,067
18,049
11,046
10,347
17,486
142,739
131,452
121,625
142,894
23,444
14,793
15,881
21,846
19,070
16,059
13,773
20,824
6,963
6,138
4,479
7,156
1,943
1,915
1,841
2,221
31,016
26,055
27,362
39,671
2,673
1,152
735
1,671
3,234
1,602
952
4,408
5,335
3,778
4,425
1,940
1,720
1,708
2,303
18,440
15,671
15,206
19,647
122,627
123,807
123,868
124,733
735,002
738, 506
729,029
738,008
156,058
156,322
155,665
156,172
285,022 48,717 33,704 339,070 65,877
281,663 52,100 36,395 341,921 65,519
281,946 48,941 36,123 339,950 65,690
35,831 340,432 66,775
280,857
54,218 10, 552
19,659 53,351 10,731
19,351 52, 771 10,965
19,374 46,460 9,099
171,450
171,444
166,470
172,791
1,070,906 5,911,471
1,062,970 5,889,427
1,047,541 5,849,563
.1,044,771 5,835,356
918,350
907,779
896,865
905,883
1,540,084 603,591 484,244 2,367,805 578,306
1,525,615 606,830 480,139 2,358,605 572,636
474,573 2,335,897 569, 523
1,512,820
1,522,034 598,717 472,310 2,330,019 566,496
324,056
323,107
319,961
321,363
596,345
591,251
590,818
578,468
43,403
39,885
46,942
40,474
63,648
69,713
65,061r
65,42,
97,035
93,169
94,215
93,695
32,072
33,348
35,035
32,227
29,430
27,516
25,190
26,657
175,695
169,572
175,433
177,934
40,232
40,138
42,323
40,838
19,14
19,475
20,384
18,786
21,904 104,255 16,834
21,256 98,068 15,770
21,846 105,236 15,953
20,874 104,734 15,931
29,403
28,626
29,508
28,563
14,834
14,049
14,479
15,515
10,983
10,780
11,962
10,224
52,520
51,401
54,471
51,486
8,847
8,473
9,019
8,428
7,372
6,508
7,101
6,576
73,128
72,211
74,080
73,450
586,301
606,488
577,214
606,053
320,0651,267,765
318,160 1,266,194
318,6241,261,835
313,4341,266,797
22,289
20,794
21,704
21,241
77,195
70,797
74,220
72,790
13,330 10,076 24,406
12,309 9,965 23,264
12,943 9,985 24,181
12,270 10,071 23,271
705,606
713,4471
714,821
727,492
4,545,463
4,663,402
4,569,574
4,607,862
623,764
631,704
644,358
632,188
854,366
845,926
840,537
832,766
317,251
316,352
316,313
312,329
229,905
231,423
228,159
231,598
1,257,524
1,229,868
1,249,808
1,279,796
308,782
311,837
314,376
315,677
185,240
182,673
180,502
179,512
384,085
379,199
380,871
378,529
168,464
168,432
168,934
167,685
459,604
452,560
460,233
452,130
38,951
39,620
39,409
40,950
432,936
433,368
424,659
425,754
117,509
118,486
119,500
119,002
143,189
142,355
141,761
142,285
658,010
657,258
656,424
653,115
143,336
143,138
143,190
143,450
69,778
69,513
69,432
69,293
101,240
101,201
100,608
103,598
202,611
198,721
200,003
200,299
571,130
566,021
564,723
565,342
59,868 539,587
60,040 539,256
60,223 538,640
60,570
MAT, 1921.
631
FEDERAL RESERVE BULLETIN.
PRINCIPAL RE3OURCE3 AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO
APR. 15, 1921—Continued.
1. ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE
DISTRICT-Continued.
[In thousands of dollars.]
Government deposits:
Mar. 25
Apr.l
Apr. 8
Apr. 15
Bills payable with Federal
Reserve Bank:
Secured by United States
Government
obligationsMar. 25
Apr.l....
Apr. 8
Apr. 15
All otherMar. 25
Apr. 1....
Apr. 8
Apr. 15
Bills rediscounted with Federal Reserve Bank:
Secured by United States
Government
obligationsMar. 25
Apr.l
Apr. 8
Apr. 15
All other—
Mar.25
Apr.l
Apr. 8
.. Apr. 15
MinSt.
Louis. neapolis.
Kansas
City.
San
Dallas. Francisco.
Total.
Boston.
New
York.
Philadelphia.
Cleveland.
328,613
325,765
304,287
329,192
24,750
24,749
23,324
26,442
170,639
170,639
162,094
167,211
36,560
35,935
34,123
36,725
29,851
29,938
28,169
28,030
8,214
8,147
7,768
8,343
2,323
2,060
1,961
2,943
26,125
25,010
18,707
25,635
6,437
6,527
6,200
4,156
4,156
3,949
7,086
4,091
4,091
3,740
4,088
1,835
1,835
1,784
2,464
13,632
12,678
12,468
12,145
573,124
526,021
499,317
503,256
30,289
25,026
20,898
14,173
256,003
224,015
213,357
223,120
45,662
44,101
40,440
42,207
33,473
35,121
33,538
37,062
25,531
28,014
24,566
24,736
27,110
26,628
24,831
25,346
69,098
66,523
66,124
63,556
19,226
17,165
16,557
16,079
5,180
4,551
4,563
4,248
19,552
17,993
18,515
16,880
9,537
9,288
8,182
6,119
32,463
27 596
27,'746
29,730
36
36
36
130
2,800
3,500
650
130
190
95
95
278
367
357
357
357
100
100
100
100
280
580
820
820
7,189
7,038
6,592
6,758
3,268
3,562
3,775
2,832
8,558
8,228
7,895
7,140
18,852
19,181
17,991
17,208
3,742
5,026
4,675
4,856
781
547
527
531
586
755
3,334
2,935
3,646
3,372
65,954 40,008 33,614 223,306
66,809 41,679 33,688 235,425
66,422 42,338 31,257 209,606
75,410 41,021 27,350 185,550
42,513
37,666
35,776
30,508
25,944
27,028
28,920
27,849
44,276 17,348
40,990 17,293
40,824 16,911
39,689 17,498
70,153
72,656
72,933
68,012
3,993
4,668
6,195
1,685
183,338
197,061
190,802
18,294
17,253
14,632
12,265
94,710
84,128
102,338
100,311
35,334
31,216
30,476
30,573
988,420
971,286
928,003
885,169
75,477
79,238
64,611
55,804
307,428
277,098
292,931
280,510
42,399
41,716
25,474
35,968
Rich- Atlanta.
mond.
Chicago.
4,137
4,001
3,469
3,625
4,093
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars.]
Number of reporting banks:
Mar.25
Apr.l
Apr.8
Apr. 15
Loans and discounts, including bills rediscounted, with
Federal Reserve Bank:
Secured by United States
Government
obligationsMar. 25
Apr.l
Apr. 8
Apr.15
Secured by stocks and
bonds (other
than
United States Government obligations)—
Mar.25
Apr.l
Apr.8
Apr.15
All other—
Mar.25
Apr.l
Apr.8
Apr.15
Total loans and discounts, including bills
rediscounted with Federal Reserve BankMar. 25
Apr.l
Apr.8
Apr.15
United States bonds:
Mar.25
Apr.l
Apr.8
Apr.15
15
15
15
15
26
285
285
284
558,372
553,228
550,745
540,881
313,365
312,000
313,065
308,055
68,719
65,687
64,962
65,203
2,098,604 149, 2831 ,062,760
2,112,481 149, 2821.,081,193
2,073,367 145, 6031,073,825
2,056,612 143, 1651,061,236
184,709
187,929
185,234
183,806
38,794
38,156
33,977
32,753
6,442
6,412
6,419
6,358
3,814
3,673
3,652
3,691
66,514
65,769
66,694
63,434
135,488 15,625
135,644 15,489
134,795 15,422
134,471 15,412
9,539
9,576
9,042
9,203
317,285
312,004
306,478
308,039
69,383
69,816
69,921
70,178
57,257
53,791
54,371
54,200
861,567
862,235
849,622
839,364
17,411
17,448
17,472
17,745
6,785
6,819
6,821
5,872
2,164
1,992
2,008
1,900
12,541
12,097
12,619
12,456
87,648 32,706 28,374
87,456 31,206 27,737
87,281 12,212 27,874
88,750 13,310 24,942
9,051
9,191
9,380
9,414
66,136
65,774
66,221
64,864
13,577
14,969
14,815
15,004
1,246
1,206
1,241
i,410
2,773,443 372,576
5,810,968 511, 769 2,
2,743,151 370,748
5,777,019 511, 893 2,
2,
363,009
5,751,077 506, 429 2,727,043
5,692,739 498; 568 2,700,146 366,703
278,617
279,690
277,008
275,555
211,904
207,608
207,059
201,028
96,216
96,896
114,797
113,673
139,410
141,059
142,432
140,933
58,564
58,442 381,690
58,662 380,724
54,441 377,950
8,467,944 699,846 4,149,568 626,004
8,442,728 699,33114,136,344 624,364
8,375,189 686,009 4,113,933 613,205
8,290,232 674,486:4,069,437* 615,712
431,516 91,450 70,6101,245,366 313,129
432,782 91,717 67,0401,240,008 310,033;
429,275 91,762 67,0651,222,794 309,155i
427,771 91,948 67,0941,210,837 304,782
137,168
136,308
135,250
135,393
174,569
175,615
177,127
171,747
69,779
69,625
70,050
65,755
458,939
459,561
459,564
455,270
4,441
4,420
4,433
4,413
12,205
12,511
11,774
11,286
8,084
8,111
7,686
9,593
55,528
57,477
58,231
58,307
434,371
435,479
436,991
440,733'
9,723
9,738
9,740
9,863!
258,0221
256,997
260,549
261,094'
32,314
32,268
32,339
32,548
8,789
8,831
7,618
8,730
7,264
7,263
7,263
7,260
19,867
19,899
19,812
20,192
13,713
13,602
13,184
13,087'
632
FEDERAL RESERVE BULLETIN.
MAT, 1921.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO
APR. 15, 1921—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Total.
United States Victory Notes:
Mar.25
Apr.l
Apr.8
Apr.15
United States certificates of
indebtedness:
Mar.25
Apr.l
Apr.8
Apr.15
Other bonds, stocks, and
securities:
Mar.25
Apr.l
Apr.8
Apr.15
Total loans and discounts,
and investments, including
bills rediscounted with
Federal Reserve Bank:
Mar.25
Apr.l
Apr.8
Apr.15
Reserve with Federal Reserve Bank:
Mar.25
Apr.l
Apr.8
Apr.15
Cash in vault:
Mar.25
Apr.l
Apr.8
Aror. 15
Net demand deposits:
Mar.25
Apr.l
Apr.8
Apr.15
Time deposits:
Mar.25
Apr.l
Apr.8
Apr.15
Government deposits:
Mar.25
Apr. 1
Apr.8
Apr.15
Bills payable with Federal
Reserve Bank:
Secured by United States
Government
obligations—
Mar.25
A;r.l
Apr.8
Apr.15
All other—
Mar.25
Apr.l
Apr.8
Apr.15
Bills rediscounted with Federal Reserve Bank:
Secured by United States
Government
obligations—
Mar.25
Apr.l
Apr.8
Apr.15
All other—
Mar.25
Apr.l
Apr.8
Apr.15
Boston.
106,926
105,742
106,533
106,778
533
532
536
536
197,238
162,694
154,289
198,487
8,573
2,823
3,289
9,369
1,121,154
1,127,186
1,110,003
1,119,868
New
York.
73,172
72,957
72,349
72,579
Philadelphia.
Cleveland.
Rich- Atlanmond.
ta.
Chicago.
MinSt.
Louis. neapolis.
Kansas
City.
San
Dallas. Francisco.
6,816
6,784
6,838
6,743
2,195
2,194
2,128
2,028
181
181
181
181
65
65
65
6i
12,877
12,219
13,010
12,909
431
416
413
499
461
473
473
473
1,195
750
668
534
136,580 21,587
125,810 12,991
116,412 14,188
136,537 19,773
1,492
967
802
2,800
288
287
287
413
225
225
225
225
12,182
9,121
9,551
14,911
2,106
758
390
913
482
2,339
1,506
768
634
1,141
1,170
1,005
995
1,361
9,724
7 441
7,034
8,705
47,910 559,099 125,895
49,437 564,161 126,014
49,453 555,555 125,518
50,238 565,417 126/""
67,956
67,163
67,385
66,709
4,101
4,022
4,114
4,125
3,196
3,220
3,221
3,226
146,613
146,622
143,963
145,378
41,845
41,799
41,432
42,069
18,414
8,452 17,895
8,299 16,968
8,284 11,074
4,232
4,429
4,447
2,405
93,525
93,972
89,648
94,757
5171 ,436,905
912 1 ,427,869
9381 ,409,130
9701 ,404,227
371,224
366,608
364,574
361,350
207,
207,539
207,171
195,792
83,296
83,201
83,209
79,135
626,685
627,591
624,318
627,239
8,584 15,189
8,917 14,206
10,733 18,563
13,587
5,
5,363
5,420
5,039
36,885
30,656
31,999
31,613
1/
1,795
1,819
1.840
9,492
9,158
9,334
8.942
139,732 55,424
138,265 54,27(i
137,905 54,625
136,329 55,029
259,218
256,312
253,214
253,496
8,969
9,140
9,841
10,200
10,327,633
10,273,829
10,183,005
10,156,098
766,585 5,176,441
761,861 5,156,269
749,027 5,118,798
744,492 5,105,064
812,616
802,421
792,088
800,962
511,948
511,937
507,208
508,038
103,284
103,470
103,607
103,927
915,112
930,502
910,951
929,071
58,756 539,619
57,032 563,146
58,589 533,576
58,523 558,668
57,824
62,601
59,670
59,110
26,842
28,591
26,737
26,192
5,672
5,737
5,824
5,995
3,633
3,945
4,025
3,699
126,402
121,119
125,199
127,796
30,038
29,189
30,616
30,029
181,909
172,604
181,457
178,875
13,321
12,771
13,187
12,761
13,690
13,084
12,952
13,147
6,909
7,153
7,30i
7,405
1,196
1,160
1,189
1,093
1,909
1,975
1,939
1,868
31,308
29,649
31,263
29,895
4,077
3,866
4,137
3,864
2,441
2,012
2,417
2,133
205,377 50,130
208,241 48,416
208,155 48,056
201,823 49,116
35,477
36,258
35,452
37,255
885,903
855,044
87o, 117
894,000
213,362
215,530
215,982
216,603
85,234
84,491
84,739
84,429
232,612 23,252 21,667 313,991 82,451
233,648 23,319 21,688 314,611 82,445
225,201 23,321 21,577 314,370 82,528
227,259 23,217 21,829 313,150 82,282
27,498
27,210
27,074
27,055
11,554
11,603
11,628
15,038
7,629
7,699
7,555
7,600
256,779
256,321
258,605
262,461
92,258
86,837
92,715
92,869
7,082,263
7,176,034
7,115,514
7,164,112
,
547,'. 168:,
4,063,690
541,548
t
550,835 4,178,
t, 178,969 549, 597
553,615''4,085,548 562,126
566,""
i. 194 4,, 118,470 551,368
1,365,683
1,360,168
1,358,670
1,361,704
64,025 297,158 27,067
64,027 289,931 27,666
6b,707 297,871 27,433
63,343 289,681 28,809
152,243
150,151
148,937
150,902
3,402
3,144
3,201
3,058
264,424
262,243
249,091
264,442
19,899
19,S98
18,904
21,288
165,208
165,208
156,940
162,875
35,402
34,777
33,024
35,600
5,168
5,207
4,968
3,543
1,297
1,227
1,227
950
251
240
2-il
247
14,157
13,098
12,445
16,357
5,002
5,002
4,751
6,424
2,139
2,159
2,053
3,450
3,352
3,352
3,041
3,305
1,459
1,459
1,427
1,923
11,090
10,636
10,100
8,502
382,197
336, 075
321,090
324,538
26,226
21,911
18,283
11,233
233,609 41,571
201,745 40,954
191,100 37,394
199,601 39,561
2,749
2,600
5,100
5,300
5,433
6,512
6,201
5,473
705
705
855
705
21,618
20,856
19,952
21,596
12,493
10,004
10,148
9,597
2,030
11,005
9,357
9991 10,227
887
8,818
1,600
1,250
1,350
980
23,158
19,180
19,481
20,787
2,800
3,500
650
130
4,137
11,135
11,087
10,314
9,393
1,770
3,380
3,161
3,176
1,113
1,212
1,335
1,149
93
105
112
105
1,890
1,194
2,130
2,012
146,447 26,618 19,044 20,528
158,487 21,520 18,991 19,721
150,263 20,856 21,090 18,622
113,847 16,460 20,213 18,422
5,298
5,336
5,651
5,830
43,911
45,170
45,778
41,950
2,800
3,50C
4,787
130
164,272
149,497
163,864
158,504
17,773
16,882
14,261
11,894
92,678
82,163
100,386
98,427
35,165
31,04'
30,307
30,404
1,189
657
854
721,541
70,5,275
662,975
629,993
75, II1
78,843
64,430
55,519
279,103 40,246
249,089 39,350
268,175 23,510
253,857 34,555
52,271
53,002
49,849
55,917
798
745
723
602
8,361i!
8,524
9,520
9,0851
4,597
5,242
5,2ol
4,338
999J
493
478
488
MAT, 1921.
633
FEDERAL RESERVE BULLETIN.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO
APR. 15, 1921—Continued.
3. MEMBER BANKS IN F E D E R A L RESERVE BRANCH CITIES.
[In thousands of dollars.]
Total.
Number of reporting banks:
Mar.25
Apr. 1
Apr. 8
Apr. 15
Loans and discounts, including bills
rediscounted with Federal Reserve
Bank:
Secured by United States Government obligations—
Mar.25
Apr.l
Apr.8
Apr.15
Secured by stocks and bonds (other
than United States Government
obligations)—
Mar.25
Apr.l
Apr.8
Apr.15
All other—
Mar.25
Apr.l
Apr.8
Apr.15
Total loans and discounts, including
bills rediscounted with Federal
Reserve Bank—
Mar.25
Apr.l
Apr.8
Apr.15
United States bonds:
Mar.25
Apr.l
Apr. 8
Apr.15
United States Victory notes:
Mar.25
Apr.l
Apr.8
Apr.15
United States certificates of indebtedness:
Mar.25
Apr.l
Apr. 8
Apr.15
Other bonds, stocks, and securities:
Mar. 25
Apr. 1
Apr.8
Apr. 15
Total loans and discounts, and investments, including bills rediscounted
with Federal Reserve Bank:
Mar.25
Apr. 1
Apr.8
Apr.15
Reserve with Federal Reserve Bank:
Mar.25
Apr. 1
Apr.8
Apr. 15
Cash in vault:
Mar.25
Apr. 1
Apr.8
Apr.15
Net demand deposits:
Mar.25
Apr.l
Apr. 8
Apr. 15
Time deposits:
Mar.25
Apr. 1
Apr. 8
Apr.15
Government deposits:
Mar.25
Apr. 1
Apr.8
Apr.15
New
York.i
Cleveland.*
216
216
216
216
Richmond. 8
Atlanta.*
Chicago.5
St.
Louis.6
45
45
45
45
18
•18
18
18
113,772
113,637
112,606
111,902
9,547
9,396
9,219
9,051
34,363
34,813
34,899
34,731
490,012
487,750
487,210
483,993
57,722
57,063
55,986
54,813
7^290
14,150
13,723
13,544
13,008
11,558
12,262
11,350
12,165
8,004
7,659
7,633
7,564
154,742
154,318
154,727
157,264
28,716
28,475
28,316
28,317
36,370
35,931
35,870
35,434
61,745
61,069
61,130
60,341
30,523
30,926
30,624
30,162
108,978
109,546 279,082
108,939 273,097
110,381 274,182
97,572
96,660
96,006
97,131
190,585
189,041
185,423
183,998
185,820
185,650
186,888
181,605
110,607
110,281
108,792
108,779
2,184,384 176,247 477,173
2,167,749 176,005 468,213
2,153,544 174,144 462,723
2,146,715 174,245 466,177
133,759
132,695
131,968
132,738
241,105
238,695
234,837
232,440
259,123
258,981
259,368
254, 111
149,134
148,866
147,049
146,505
1,580,600
1,566,362
1,553,728
1,550,820
San
Minne- Kansas
Fran-10
apolis.? City.s Dallas .9 cisco.
7,471
7,560
10,540
10,139
10,315
10,281
2,214
2,152
2,051
2,068
15,863
15,869
15,887
15,684
510
509
509
507
29,298
28,568
29,549
27,431
15,226
15,152
14,894
14,836
75,160
75,739
75,605
74,888
9,220
9,257
9,260
9,276
154,622
152,881
150,873
151,251
66,091
66,081
66,117
66,130
369,037
367,883
1,792 194,460
1,830 191,588
1,831 190,737
188,963
83,531
83,385
83,062
83,034
460,060
459,491
459,825
458,659
368,087
219,228
220,253
219,204
218,630
14,889
15,017
15,533
15,766
64,843
64,529
64,633
64,868
13,907
14,805
14,569
14,968
27,908
27,915
27,846
27,830
21,873
22,725
21,866
21,862
13,246
13,140
13,116
13,211
714
714
714
715
12,895
12,986
12,948
12,872
13,668
13,718
13,466
12,362
35,285
34,704
34,513
34,176
50,901
49,693
50,255
50,443
1,994
1,972
1,969
1,975
15,371
15,295
15,221
15,430
3,182
3,187
3,188
3,041
2,363
2,412
2,423
2,460
15,866
15,005
15,862
15,861
1,829
1,756
1,643
1,641
58
57
47
56
1,042
1,048
1,021
1,039
798
660
623
619
8,301
8,258
8,321
42,930
36,546
35,757
50,495
2,036
1,614
1,588
2,253
13,678
11,228
9,802
15,121
2,447
1,846
953
2,423
1,650
1,624
1,550
1,930
10,933
9,478
10,343
12,962
318
269
753
10
10
10
10
2,580
1,807
2,633
3,941
509
477
477
681
8,144
8,132
10,421
576,127
575,412
575,940
576,858
77,548
77,096
76,699
76,935
182,035
179,661
179,977
179,702
21,312
21,340
21,611
21,536
26,230
29,130
29,033
28,802
146,153
146,404
146,823
146,826
20,806
20,464
21,000
21,429
785
774
792
791
25,722
25,451
25,530
25,162
3,104
3,082
3,139
3,245
72,432
72,010
71,336
72,430
3,073,570
3,049,653
3.034,700
3,043,141
272,714
271,704
269,933
271,174
753,100
738,926
732,356
741,298
174,607
173,873
172,289
174,706
299,256
299,776
295,689
293,462
453,948
452,593
454,262
451,622
185,504
184,544
183,077
183,539
101,610
11,359
11,385 232,880 101,322
11,394 232,869 100,767
11,415 231,977 99,941
584,773
582,650
582,064
584,007
195,963
182,994
194,494
190,715
16,633
15,813
16,428
18,027
53,587
47,556
50,268
51,430
10,880
11,374
12,074
10,534
20,628
19,019
16,465
18,305
23,344
20,701
24,707
21,355
9,479
10,018
10,951
9,988
660
769
683
583
16,355
14,854
16,863
16,268
7,370
6,725
7,544
6,907
37,027
36,165
38,511
37,318
60,003
57,995
62,599
60,638
2,362
2,343
2,475
2,334
13,465
12,876
13,357
12,608
4,431
4,198
4,306
6,530
6,230
6,334
7,178
5,878
7,750
7,821
9,236
8,184
3,981
3,773
4,038
3,782
254
247
248
253
5,714
5,337
5,869
5,430
2,826
2,812
2,823
3,006
12,990
12,254
13,069
12,633
1,622,249
1,611,320
1,613,702
1,619,017
154,142
157,278
157,371
155,967
479,119 101,632 153,635 157,817
468,542 99,986 154,569 159,264
464,950 102,110 151,858 159,047
463,614 97,925 153,410 171,454
86,579
87,089
89,020
89,804
5,024
5,159
5,031
5,079
142,384
140,432
142,012
140,190
61,794
60,994
61,013
60,684
280,123
278,007
281,290
280,890
916,161
915,763
913,755
912,929
69,501
69,740
69,484
69,758
118,244
117,962
117,982
117,360
20,109
21,438
21,471
21,337
83,360
82,788
82,578
82,823
214,723
213,449
212,947
211,070
51,170
50,936
50,929
51,462
3,177
3,162
3,155
3,153
61.999
62,194
61,900
61,243
24,260
24,365
24,547
24,345
269,618
269,729
268,762
270,378
37,735
37,623
35,445
40,400
3,062
3,062
2,908
1,978
21,602
21,652
20,305
23,083
2,604
2,604
2,442
4,038
1,601
1,349
1,283
2,212
5,100
5,100
4,845
4,050
1,435
1,525
1,449
1,656
124
124
117
192
322
322
306
435
1,885
1,885
1,790
2,756
634
M A T , 1921.
FEDERAL. RESERVE BULLETIN.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES, ON FRIDAYS FROM MAR. 25 TO
APR. 15,1921—Continued.
3. M E M B E R B A N K S I N F E D E R A L R E S E R V E B R A N C H CITIES—Continued.
[In thousands of dollars.]
Total.
Bills payable with Federal
Bank:
Secured by United States
ment obligations—
Mar.25
Apr.l
Apr. 8
Apr. 15
All other—
Mar.25
Apr.l
Apr. 8
Apr. 15
Bills rediscounted with Federal
Bank:
Secured by United States
ment obligations—
Mar.25
Apr. 1
Apr. 8
Apr. 15
All other—
Mar.25
Apr. 1
Apr. 8
Apr. 15
New
York.i
Cleveland.2
Richmond. 8
Chicago.5
' St.
Louis/
Minneapolis.7
Kansas Dallas.9
City.s
San
Francisco.10
Reserve
Govern129,564
128,340
120,226
123,087
15,421
13,610
13,869
14;691
29,018
30,484
26,485
30,316
845
8,093
9,573
7,174
8,407
22,974
22,692
21,218
21,898
130
90
95
95
. 278
1,070
1,253
31,959
30,396
31,870
28,178
6,170
6,573
5,821
5,969
72
122
72
72
190
75
75
75
75
3,240
2,995
2,170
1,395
7,491
6,601
6,510
7,340
100
100
100
100
260
560
800
800
1,350
777
767
1,239
313
337
289
299
1,297
1,600
1,344
1,234
13,659
11,721
12,036
11,550
6,291
6,267
5,863
5,728
22,924
23,845
23,618
22,793
5,126
5,294
5,037
4,821
Reserve
Govern24,833
23,991
23,366
23,079
1,143
1,112
1,096
1,053
5,509
5,508
5,630
5,625
2,124
1,935
2,206
1,791
5,623
5,463
5,160
4,683
5,502
5,613
5,360
5,475
1,972
1,646
1,514
1,680
137,990
137,007
134,665
128,253
1*5,591
14,556
12,709
15,826
10,389
10,077
11,791
13,129
14,194
15,675
14,498
13,948
17,500
17,424
14,674
12,631
21,782
21,325
24,805
18,765
15,178
15,677
14,196
13,408
» Buffalo.
2 Cincinnati and Pittsburgh.
* Baltimore.
* New Orleans, Jacksonville, Nashville, and Birmingham.
6 Detroit.
BANK DEBITS.
Debits to individual accounts, as indicators
of the volume of the Nation's business, show
an upward tendency for the four-week period
ending April 20. The first of the four weeks
saw a material reduction in debits, namely,
from $7,538,000,000 to $6,393,000,000, but this
reduction was due in part to the observance of
Good Friday on March 25 as a holiday in some
of the Federal Reserve districts. The debits
rose for the following week to $7,696,000,000,
apparently as the consequence of end-of-month
and end-of-quarter payments. After a drop
to $7,106,000,000 for the week ending April 13,
debits rose again to $7,648,000,000 for the last
week of the period. Fluctuations of debits in
New York City were parallel to those in all
reporting centers, a 10 per cent increase for the
most recent week being attributable in part to
Atlanta.*
482
440
475
475
« Louisville, Memphis, and Little Rock.
' Helena.
s9 Omaha, Denver, and Oklahoma City.
El Paso and Houston.
10
Spokane, Portland, Seattle, Salt Lake City, and Los Angeles.
the larger volume of stock exchange transactions during that week.
Comparison of the movement of debits for
the four weeks under review with that for the
corresponding period of 1920 is vitiated by the
fact that March 31, with its heavy end-of-month
and end-of-quarter payments, was included in
1920 in the first week of the period, while in
the current year it is included in the second
week. Outside of this fortuitous difference,
the general trend for the period is similar for
the two years. It is noteworthy, however,
that for the last four weeks this year's totals
were below last year's by 25 per cent, on the
average, while for the immediately preceding
four weeks the difference between the two
years was 18 per cent, so that the indications
are that the relative volume of business this
year, as compared with last year, is smaller in
the more recent period than four weeks earlier.
MAY,
1921.
635
FEDEKAL RESERVE BULLETIN".
DEBITS TO INDIVIDUAL ACCOUNTS
AT BANKS IN REPORTING CLEARING HOUSE CENTERS
—
-DEBITS FOR !9ZO — — - — -
— _ _
1
—1—
M
R-|
-
°
1.000
i
0.000 9.000
4
V\
\"$
i
5.000
\
(
\
\\
/
-#-
V
1
!
J I
A
-
J
\1
_
I
V 'A / /
\
/
r
\
\
\
/
A
_-
1
/s 1 /
\
\
i
r
/ j
"TV"
/ \ ii
\
\
i
i
-
\
_^
~A|
V*
\ i n \Kl \
\
\
i
9.000
f4
8.000
7.000
1
i
6.000
j
\
s
10.000
j
1
2
1.000
i
/ N
\
N
is
1
II
—i
7.000
4.000
___
§2
1
i
-
—
1
i
1
\
8.000
6.000
PEBITS FOR 1921
\
i
]
/\ t"
k N /\ \ / X/
1
^«
i
i •
1
A[\
i
/
>
\
/i
5.000
4000
3.000
3.000
2.000
2.000
1.000
1.000
0
I AHD 2 : BANKS IN NEW YORK CITY.
[
3 AND 4 s BANKS IN ALL REPORTING CENTERS.
1
6.000
6.000
5000
\
4000
<*\
3000
N
»—"
\\
/
\
V \/
/
f
i
f \
V
•1 \
y
•
. - •
...
N
\
\
5.000
I
/
4.000
3.000
2.000
2.000
I
i.000
1.000
BANKS OUTSIDE OF NEW YORK CITY.
920
1 I 1 I I t 1 I MM | 1
7 14 21 28 4 II 18 25 3 10 17 2* 3! 7
S 12 19 26
JAN
1 1 11 11 i 1
|
1I 1
1 1j1 18i 25! I1
J 28 5 12 J9 26 2 9 16 Z3 30 7 14 2! ?B 4
i
1 1 1 11_L
L
3 \S 22 29 <3 13 20 27 3 10 17 24
1 3 151 22129 1 1920
!
192!
I
2 9 16 23 2 9 16 23 30 6 13 20 17 4 II 18 25 1 8 15 22 29 6 13 20 17 3 10 17 24 3! 7 14 2! 28 J 12 19 26 2 9 16 23 30 7 14 21 28
AUG . | SEPT.
DEC.
FEB. | MAR.
MAY
JULY
NOV.
| JUNE
APR
1 OCT.
1
636
FEDERAL, RESERVE BULLETIN.
MAY, 1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS.
SUMMARY BY FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.]
Federal Reserve district.
Number of
centers
included.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total...
153
1920
Week ending-
1921
Week endingMar. 30.
Apr. 6.
Apr. 13.
Apr. 20.
Mar. 31.
Apr. 7.
Apr. 14.
333,877
3,250,158
319,689
392,661
137,947
154,735
787,512
152,171
101,077
207,590
124,963
430,520
400,228
,116,027
404,289
432,208
160,439
194,975
828,870
171,541
136,323
249,706
135,654
465,948
357,480
3,657,732
354,470
440,795
142,707
166,696
863,310
177,110
127,901
228,681
125,638
463,230
373,078
4,037,761
366,353
419,867
155,472
182,766
935,028
187,447
130,211
234,850
132,469
493,087
467,392
5,196,609
420,302
502,297
172,583
258,038
1,162,838
227,260
154,446
323,191
152,700
505,325
448,994
4,534,986
425,577
516,029
185,544
265,557
1,144,788
252,450
160,427
311,283
158,108
532,800
542,868
5,036,351
432,958
585,948
186,362
274,054
1,100,768
247,343
177,597
303,195
156,589
553,114
538,772
5,599,701
454,879
551,119
194,823
267,001
1,224,250
258,752
171,787
299,812
149,099
572,328
6,392,900
7,696,208
7,105,750
7,648,389
9,542,781
;6,543
9,597,147
10,282,323
Apr. 21
NOTE.OTE.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for these
center:
rs not being available for each week under review: Harrisburg, Pa.; Johnstown, Pa.; Reading, Pa.; Cincinnati, Ohio; Greenville, S. C;
Huntiiington, W. Va.; Washington, D. C; Wilmington, N. C; Moline, 111.; East St. Louis and National Stock Yards, 111.; Springfield, 111.; Quincy.
pringfield, Mo.; Atchison, Kans.
^
*'
111.; Sp]
DATA FOR EACH REPORTING CENTER.
[In thousands of dollars.]
1921.
Week ending-
District No. 1—Boston:
Bangor
Boston
Do
Fall River.,
Hartford
Holyoke
Lowell
Manchester
New Bedford
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
District No. 2—New York:
Albany
Bmghamton
Buffalo
New York
Passaie
Rochester
Syracuse
District No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
PhiladclDhia
Reading
Scranton
Trenton
Wilkes-iiarre
Williamsport
Wilmington
York
District No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil City
,
1920.
Week ending-
Mar. 30.
Apr. 6.
Apr. 13.
Apr. 20.
3,327
i 216, 886
278,073
5,036
16,623
2,709
3,772
i 247,472
322, 534
6,431
27,209
3,347
4, 525
5,180
5,338
18,345
9,099
31,595
14.712
6,715
16,488
3,488
i 227,689
297,681
5,194
20,216
2,775
4,482
4,178
5,365
15,963
7,202
28,458
12,448
5,127
14,895
3, 514
1 236, 767
309,106
5,419
24,622
2, 843
4,158
4,290
5,319
17,422
6,217
31,816
11,398
5,311
13,982
3,611
305, 868
3,637
268,705
?,, 941
366, 899
9,778
22,178
3,625
5,429
5,123
8, 883
18,245
7, 520
37,815
14,806
6,732
17,979
10,135
27,891
4,020
5,854
9,283
20,381
8,421
38,576
18,022
8,316
19, 854
11.131
24, 084
3,770
6,061
4,947
10,672
19,401
7,790
41,185
15,814
7,502
19,671
28,106
4,287
62, 730
21,397
4,131
60, 527
3,900,096
5,149
31,971
14,490
18,309
4,211
64,718
5,060,233
5,313
28,165
15,660
22.647
4,831
"
72,388
4,370,408
5,739
36.648
22,325
25,511
4,840
64,994
4,885,191
5,741
33,752
16,322
26, 943
4,813
64,474
5,445, 815
5,207
33, 517
18.932
?,, 701
5,076
2,888
5,348
3,413
5,213
3,399
5,903
8,672
350,158
15,202
342, 739
7,553
363,227
8,030
384,934
15,907
11,385
8,002
4,837
8,240
5,181
13,642
12,000
8,494
4,268
8,987
5,222
4,006
4,740
13,027
6,929
27, 831
11,263
4,314
13,192
24,058
3,198
48, S97
3,133,090
4,014
24, 774
12,127
3,967; 755
4,511
33,121
15,517
22, 879
3,979
56,856
3,527, 728
4,592
28,104
13, 594
3,187
4,127
5,750
5,047
5,790
258, 762
5,979
14, 823
9,753
8,721
3,719
6,705
4,102
2,842
5,585
1,931
5,254
16,677
324, 790
8,393
14,376
11,290
8,702
4,611
8,921
6,495
3,124
4,220
6, 811
5,049
5, 946
290,116
8,755
16,310
10,555
8,070
4,369
7,235
4, 525
3,442
4,920
f>, 965
5,042
5,819
304, 044
8,108
12,184
11,512
8,958
3,763
7,615
4,096
12,365
54, 758
120; 419
25, 427
11,879
16,379
70,138
13S, 965
28,785
13, 532
6,752
3.825
5,221
2,604
15,008
72,842
146, 850
35,874
13,12S
6,267
3,865
4,181
2, 357
14,704
65,451
133, 617
31,635
12, 358
6,256
4,007
4,492
2,82?
3,949
5,101
1,995
Mar. 31.
» Debits of banks which submitted reports in 1920.
14,614
11,313
9,125
4,059
8,829
4,725
Apr. 7.
16,589
13,450
8,257
4, 752
9,605
6,747
Apr. 14
Apr. 21.
3,363
351,982
7,842
29; 655
3,941
5,093
5,918
10,763
20,763
46,953
17, 799
7,080
18,754
19,386
23, 018
33,735
34,136
173,856
26,370
187,312
29,311
13,582
6,596
3,643
6,154
3,467
220,7C7
35,181
12,863
7,795
4,624
5,783
2,800
181,603
29,426
•12,14*
8,575
4,843
5,687
3, 524
12,112
7,151
4,446
5,653
2,728
MAT,
1921.
637
FEDERAL RESERVE BULLETIN.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS-Continued.
DATA FOR EACH REPORTING CENTER-Continued.
[In thousands of dollars.]
1921.
Week e n d i n g Mar. 30.
District No. 4—Cleveland—Continued.
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
District No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Greenville, S. C
Huntington
Norfolk
Raleigh
Richmond
Washington
Wilmington
District No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacola
Savannah
T amp a
Vicksburg
District No. 7—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur
Des Moines
Detroit
Dubuque
Flint
Fort Wayne
Grand Rapids
Indianapolis
Jackson
Kalamazoo
Lansingg
uke
Milwaukee
Moline
Peoria
Rockford
Sioux City
South Bend
Springfield, 111
Waterloo
District No. 8—St. Louis:
East St. Louis and National Stock Yards.
Evansville
Little Rock
Louisville
Do
Memphis
Quincy
St. Louis
Do
Springfield, Mo
District No. 9—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St. Paul
Sioux Falls
Superior
Winona
Apr. 6.
Apr. 13.
1920.
Week e n d i n g Apr. 20.
Mar. 31.
Apr. 7.
Apr. 14.
Apr. 21.
158, 945
3,960
20, 852
8,140
10,731
161,736
4, 8S7
25,107
9,901
14, 514
159, 922
4,693
26, 273
8,150
14,217
162,134
4,101
25,160
8, 696
9,885
190,172
3,162
30,127
10,114
17, 020
179, ISO
3,185
34, 010
9,724
16, 847
189,366
4,158
37,419
11,104
20, 383
206,669
3,450
37,027
10,511
13,520
85,685
4,723
4,974
4,374
2,283
5,130
12,607
4,200
21,384
29,572
4,714
7,263
5,756
4,949
3,177
5,413
14,152
4,000
24,628
40,155
6,132
90,569
5,571
5,048
4,490
3,981
4,908
11,058
4,100
21,871
36,319
5,048
93,404
6,387
6,006
4,378
3,069
5,461
12,751
3,800
28,746
37,649
5,902
98,509
11,290
8,776
7,469
109,341
11,445
8,737
6,883
107,842
9,332
9,560
7,760
109,649
9,500
10,844
7,665
18,413
3,900
24,226
18,458
4,900
25,780
19,037
5,800
27,031
20,516
6,120
30,529
20,055
4,079
12,535
7,508
10,189
5,559
3,486
5,918
3,004
17,797
48,220
1 120
8,498
5,635
1,132
25,174
5,507
15,641
8,411
14,159
6,816
4,491
6,256
3,612
20,390
63,158
1,607
11,619
6,868
1,266
22,544
4,947
12,640
8,952
12,293
5,416
3,417
4,669
2,886
19,484
51,623
1,466
8,781
6,272
1,306
25,588
5,032
15,756
10,146
12,863
6,421
4,022
6,519
4,216
20,354
52,614
1,644
10,099
6,192
1,300
33,040
12,388
15,773
9,893
13,966
6,620
7,961
10,292
5,223
25,804
83,684
2,241
22,718
6,648
1,787
34,742
12,704
17,033
12,116
16,131
7,445
8,237
9,996
5,776
27,129
82,610
2,204
19,471
8,114
1,849
34,894
12,921
15,722
11,920
14,808
7,371
8,144
9,036
5,364
28,775
93,192
2,577
20,387
6,847
2,096
38,472
10,670
17,680
13,432
15,826
7,691
8,113
10,096
6,144
29,722
76,939
2,563
20,631
7,106
1,916
2,588
2,481
10,561
521,575
6,211
3,158
16,766
86,123
2,883
3,623
5,970
16,017
26,495
3,243
3,630
4,003
41,577
2,002
7,173
4,652
11,139
5,118
5,960
2,526
2,781
2,983
13,965
514,728
8,712
4,451
17, 887
101,273
3,410
4,210
7,273
15,346
30,632
3,125
4,354
4,801
51,313
2,540
8,676
6,034
13,249
6,481
7,108
3,186
2,328
3,203
11,034
553,907
6,665
3,043
19,173
103,257
2,826
4,509
7,206
18,252
30,905
3,195
4,094
5,236
50,404
2,478
7,982
5,468
11,332
5,890
5,737
3,401
2,308
2,564
10,520
593,607
6,215
3,388
19,753
128,265
3,163
5,426
7,699
18,756
31,708
3,549
4,289
5,415
56,265
2,211
8,477
5,124
9,586
6,155
5,867
2,796
3,707
3,775
9,580
766,881
8,339
5,094
24,039
146,054
3,146
10,476
7,516
18,867
36,414
2,707
5,627
6,982
59,882
4,094
4,253
12,141
720,501
12,157
4,693
28,402
141,422
3,015
14,198
7,461
25,553
36,529
3,231
5,427
5,678
69,387
4,020
3,681
9,683
679,290
8,779
3,990
27,495
149,304
4,152
7,719
8,866
19,617
40,488
4,138
5,454
7,518
70,630
3,839
2,922
10,553
737,506
8,887
4,322
25,772
206,456
3,595
12,868
8,218
24,820
39,653
5,579
5,730
6,937
74,045
11,683
6,817
17,696
2.984
11,432
7,522
19,163
3,129
10,773
6,667
19,702
3,739
10,805
6,639
16,181
3,987
4,372
5,400
5,063
4,936
030 i
8,535
4, 344
5,243
9,015
9,545
123, 513
1 21,718
31, 039
28,945
16, 247
20,808
3,546
2,474
1118. 422
i 119,796
134,832
389
3,102
239
8,914
5,343
10,489
i 24,472
31,271
20,858
2,447
i 126; 285
140,306
2,876
5,596
10,031
32,234
5,316
10,239
35,809
6,023
10,611
37,596
5,536
9,247
38,792
7,418
4.407
8,622
119,690
25,419
17,110
2,443
1102,342
113,525
2,435
34,988
38,042
37,263
*i44,"4ii'
"i63,"044"
' 155," 850
1,573
1,588
2,442
1,884
16,423
15.159
2,866
2,405
1,583
1,071
2,297
1,752
2,081
2,201
76,032
67,118
38,339
30.160
7,412
3,991
2,072
2,088
1,326
794 I
i Debits of banks which submitted reports in 1920.
1,892
2,521
15,120
3,391
2,109
1,893
2,741
81,474
37,995
7,616
2,135
1,540
1,861
2,515
20,346
4,103
2,113
2,017
2,449
94,960
36,627
6,808
2,425
1,373
1,456
1,400
11,109
2,042
997
1,457
1,467
54,499
20,453
3,719
1,458
1,020
1,374
1,965
14,453
2,788
1,269
1,723
2,483
72,067
30,115
4,817
1,997
1,272
1,000
1,632
15,266
2,511
1,236
1,647
1,922
68,831
26,903
3,961
1,913
1,079
38,771
*i66,*406
1,722
2 710
20,371
3,477
1,987
2,317
2,014
85,287
41,084
7,462
2,024
1,332
638
M A T , 1921.
FEDERAL, RESERVE BULLETIN.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING-HOUSE BANKS—Continued.
DATA FOR EACH REPORTING CENTER-Continued.
[In thousands of dollars.]
1921.
1920.
Week e n d i n g -
Week endingMar. 30.
District No. 10—Kansas City:
Atchison
Bartlesville
Cheyenne
Colorado Springs
,
Denver
Joplin
Kansas City, Kans
Kansas City, Mo
,
Muskogee
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
District No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana, Tex
Tucson
Waco
District No. 12—San Francisco:
Berkeley
Boise
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
,
San Francisco
San Jose
Seattle
,
Spokane
Stockton
Tacoma
,
Yakima
x\pr. 6.
Apr. 13.
Apr. 20.
Mar. 31.
Apr. 7.
Apr. 14.
Apr. 21.
1,200
2,021
1,686
2,131
28,413
1,824
3,325
59,107
3,892
17,621
38,877
4,335
14,486
2,537
19,467
7,868
1,240
2,589
1,821
2,580
36,000
2,259
3,137
75,666
4,402
22,060
42,867
5,651
15,350
4,639
21,134
9,551
1,300
2,774
1,912
2,552
29,106
2,198
3,357
67,872
3,599
19,989
40,395
4,812
15,631
2,983
21,266
10,235
2,480
1,727
2,182
31,073
2,173
3,223
69,148
3,486
20,365
44,029
4,356
13,990
4,098
22,238
10.282
4,011
2,430
3,191
51,021
4,037
4,537
85,050
6,013
19,769
66,459
4,823
23,088
5,571
31,281
11,910
3,541
2,433
3,570
47,583
3,719
3,907
86,146
6,336
21,718
57,801
5,055
21,815
6,499
26,856
14,304
3,953
1,672
3,775
44,005
4,846
4,436
73,934
5,861
21 322
59,116
5,771
21,674
6,918
31,460
14,452
3,370
1,720
3,378
38,461
4,478
3,866
71,394
5,655
23,048
66,248
3,213
24,679
6,021
29,434
14,847
801
2,465
2,848
29,621
7,405
20,410
17,674
26,822
5,910
5,840
1,023
1,269
2,872
1,788
2,900
3,322
32,838
7,444
19,120
21,570
26,065
6,879
7,270
1,490
1,302
3,666
1,599
3,039
2,350
29,936
7,795
21,800
17,090
22,620
7,144
5,940
1,839
1,471
3,015
1,145
2,480
3,600
33,779
7,534
19,400
16,451
28,566
7,007
6,275
1,652
1,385
3,195
1,763
2,815
4,339
39,172
9,467
23,198
7,935
38,819
7,779
9,874
1,818
1,596
4,125
1,968
3,387
5,859
42,146
9,538
24,422
9,546
33,441
8,875
10,951
1,942
1,563
4,470
1,752
4,060
5,478
42.887
9,660
25,004
8,413
32,563
8,397
9,612
3,090
1,773
3,900
2,359
3,077
4,594
41,337
9,584
22,533
7,785
32,600
7,152
8,981
3,062
1,684
4,351
2,252
1,862
8,738
5,204
92,979
18, 293
3,011
5,001
30, 882
2,180
10, 524
14,895
7,309
171,072
3,591
29,402
9,234
3,742
8,248
2,101
2,973
2,610
9,739
6,321
100,682
18,412
3,620
6,781
39,382
2,656
11,493
15,624
8,329
175,258
4,304
30. 720
10^ 341
4,753
9,657
2,293
2,750
3,195
9,401
5,389
94,970
18,069
3,076
5,942
43,505
2,566
11,826
18,059
8,911
167,823
4,533
33,520
12,497
6,434
8,773
1,991
2,838
2,644
9,838
6,088
103,232
18,643
2,995
5,727
37.283
2,745
12,681
16,513
8,726
198,664
5,180
33,407
10,856
4,629
8,182
2,216
2,194
2,975
9,205
5,167
89,409
19, 510
4,043
5,605
43,778
2,821
12,183
18,914
8,011
198,401
4,526
47,318
11,661
4,973
11,325
3,306
2,727
3,365
8,752
5,883
101,971
19,709
1,948
5,897
50,636
2,922
13,420
20,192
8,484
196,897
5,374
49,205
13,229
6,526
11,587
4,076
2,591
3,260
10,519
5,619
96,025
20,423
4,324
5,975
51,539
3,124
14,105
16,464
8,076
208,344
4,943
61.888
14,254
5,700
12,529
3,412
2,854
2,240
8,633
6,167
99,255
19,523
3,344
6,988
52,561
2,001
14,723
19,429
9,109
233,741
4,648
50,480
14,758
4,588
13,807
3,479
MAT,
1921.
639
FEDERAL KESERVE BULLETIN.
FEDERAL RESERVE CLEARING SYSTEM.
OPERATIONS FROM MAR. 16 TO APR. 15, 1921.
[All figures shown in thousands.]
Items drawn on banks located in
own district.
Federal Reserve
Bank or branch.
I n Federal Reserve Bank or
branch city.
NumNumNumber. Amount. ber. Amount. ber. Amount.
Boston
751
537,526
New York
1,531 1,750,426
Buffalo
204
88, 737
Philadelphia
1,792
766,885
Cleveland
413
217,342
201
Cincinnati
134,316
496
Pittsburgh...
292,669
118
Richmond
118,918
250
Baltimore
157,245
119
Atlanta
56,097
142
26,990
Birmingham..
58
23,051
Jacksonville..
53
29,625
Nashville
66
47,182
New Orleans1,081
642,427
Chicago
302
148,337
Detroit
304
228,547
St. Louis
48
23,889
Little Rock...
102
60,364
Louisville
71
25,674
Memphis
252
125,220
Minneapolis
41
9,430
Helena
251
261,535
Kansas City
76
45,510
Denver
68
55,429
OklahomaCity
109
57,477
Omaha
148
61,014
Dallas
45
10,373
El Paso
75
40,370
Houston
194
115,750
San Francisco
354
114,785
Los Angeles..
66
33, 559
Portland
45
22, 730
Salt LakeCity.
102
35,670
Seattle
39
17,100
Spokane
3,300
4,451
413
2,163
1,243
818
911
'675
336
143
166
198
113
3,722
408
1,383
287
429
1,451
188
2,495
341
947
609
1,570
135
325
528
903
217
366
216
175
144
380,428
966, 784 1,105
15
50,829
211
246,240
163,448
80
84, 064
60
lOt, 282
53
260,502
57
77, 899
62
43, 338
34
8,399
12
18,384
9
23, 021
17
13,721
36
352,689
451
44, 827
35
89,645
13S
17,098
8
25, 534
31
9,482
10
88,629
50
11,452
3
111,915
106
19, 985
21
77, 084
7
41,825
44
195,392
30
1.1, 030
18
35, 008
55
35,225
77
72, 540
33
12,601
18
28,138
12
17,562
24
10,158
9
Total:
Mar. 16 to
Apr. 15,
1921..., 9,967 6,382,199 33,701 3,746,158
Feb.16 to
Mar. 15,
19.21.
8,049 5,576,684 28,493 3,310,584
Mar. 16 to
Apr. 15,
1920.... 7,982 8,512,045 28,225 5, 055,423
Items forwarded Items forwarded
Total items
to other Federal to parent bank
Reserve Banks or to branch in handled, including
duplications.
and their
same district.
branches*
Total items
handled, exclusive of duplications.
Items drawn on
Treasurer of
Outside Federal United States.
Reserve Bank
or branch city.
28,838
190,580
2,846
43,125
7,330
7,829
9,426
8,382
17,274
6,333
1,296
1,638
2,053
7,420
65,557
4,375
15, 039
1,153
3, 057
2,103
5,930
547
9,983
3,037
1,022
3,158
3,980
2,654
3,052
89,104
19,380
8,273
3,318
11, 081
994
1
Number.
NumAmount. Num- Amount. Num- Amount. ber. Amount.
ber.
ber.
4,195
7,087
632
4,166
1,736
11,086
1,460
2,086
9S7
489
297
233
268
215
5,254
745
1,825
343
562
246
1, 753
232
2,852
438
11,022
1763
1,748
198
45?
799
1,290
301
423
342
223
946,792
2,907,790
142,412
1,056,250
388,120
i 227,582
406,377
387,802
252,418
105, 768
36,685
43, 073
54,699
68, 323
1,060,673
197, 539
333, 2?1
42,140
88,955
37,259
219, 779
21,429
383, 433
68, 532
133, 535
1102, 955
260, 386
24, 057
78,430
240,079
206,705
54,433
54,188
64,313
28,252
161
1,019
159
762
45
12
71
157
79
47
18
2
43
49
339
8
26
9
13
2
190
7
269
75
44
41
77
14
21
28
111
5
12
16
10
55,327
507,711
28, 398
184, 793
29,009
23,434
39,532
58, 708
29, 892
16,499
10,122
416
7,450
12,986
34, 266
7,699
4,260
1,706
1,872
682
36,679
2,041
51,329
18,310
8,263
6,281
18, 525
6,148
3,214
4,499
17, 569
1,653
11,586
4,889
2,094
4,356
8,130
836
4,928
12,991 1,819
3,711 1,110
6,364 1, 560
11,503 2,301
8,223 1,139
578
6,405
346
31,384
271
13,022
322
1,541
270
762
2,085 5,601
758
2,301
1,150 1,859
376
3,125
578
285
252
442
317 1,949
241
2,025
13,456 3,198
565
12,611
8,895 1,081
823
5,883
7,098 1,889
216
733
482
],350
870
6,846
13,456 1,457
335
3,880
448
7, 342
397
5,720
249
6,404
6,320
22,311
24
45
38
12
29
58
73
42
31
36
11
6
8
5
8
24
3
4
6
2
77
52
15
19
64
4
6
43
56
29
13
39
16
1,002,119
3,421,821
193,121
1,241,013
430,120
254,727
452,273
458,013
290,533
128,672
78,191
56, 511
63,690
82,071
1,097,024
207,539
338,641
46,971
91,112
38,383
256, 775
25,495
448,218
99,453
150,693
115,119
286,009
30,938
82,994
251,424
237,730
59,966
73,114
74,922
36,750
3,085
600,167
46,751 110,724,392
3,941 1,247,842
898
229,941 51,590 12,202,175
1,937
528,946 138,486 19,417,648
3,528 1,080, 836
789
200, 431 42,803 10,698,915
2,193
882,375 138,407 114,451,712
3,810 1,818,617
856
318,048 43,073 16,588,377
1
Includes items drawn in banks in other Federal Reserve districts forwarded direct to drawee bank.
NOTE.—Number of business days in period for Philadelphia, Pittsburgh, Baltimore, Jacksonville, Nashville, New Orleans, Detroit, St. Louis,
Little Rock, Louisville, Memphis, Minneapolis, and Salt Lake City was 26, for other Federal Reserve bank and branch cities, 27 days.
NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVE D I S T R I C T , APR. 15, 1921 AND 1920.
N onmemb er b anks.
Member bankst
On par list.
Federal Reserve district.
1921
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. .
Kansas City...
Dallas. . . .
San Francisco.
Total
1
1920
1921
1920
436
788
700
877
615
486
1,430
577
1,012
1,093
856
856
432
770
684
856
595
426
1,385
555
943
1,055
773
772
256
327
447
1,082
1,057
411
4,261
2,515
2,797
3,393
1,247
999
253
320
419
1,079
763
445
4,231
2,514
2,913
3,368
1,248
939
9,726
9,246
18,792
18,492
Incorporated banks other than mutual savings banks.
Not on par list.1
1921
1920
542
1,167
749
1,130
170
53
174
1,932
2,157
104
640
MAT, 1921.
FEDERAL RESERVE BULLETIN.
GOLD SETTLEMENT FUND.
INTER FEDERAL RESERVE BANK TRANSACTIONS FROM MAR. 18 TO APR. 21, 1921.
[In thousands of dollars.]
Transfers.
Daily settlements.
Federal Reserve Bank.
Debit.
Boston
New York
Philadelphia..
Cleveland
,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total, five weeks ending—
April 21,1921
Mar. 17,1921
Apr.22,1920
Mar.18,1920
34,500
23,001
11,000
70, 500
7,000
6,000
48,000
6,000
5,500
10,000
36,578
258, 079
148,380
661,270
416,266
Total
debits.
Total
credits.
2,499
125,000
4,001
36,079
24,000
3,000
7,000
3,000
1,000
2,000
40, 500
10,000
430,656
1,756,242
650,438
527,263
567,328
201,834
781,201
439,121
130,130
352,241
189, 096
234,448
502,374
1,695,534
639,871
537,021
541,600
213,571
819,188
438,837
119,813
349,939
186,138
216,112
258,079
148,380
661,270
416,266
6,259,998
6,323,085
8,584,231
8,503,649
6,259,998
6,323,085
8,584,231
8,503,649
Credit.
Changes in ownership
of gold through transfers#nd settlements. Balance in
banks'
fund at end
of period.
Decrease. Increase.
39,717
41,291
17,566
24,663
8,728
8,737
3,013
3,284
14,817
10, 302
964
8,336
90,709
90,709
50,104
62,739
46,909
72,715
22,614
15,221
107,506
18,971
7,738
23,663
5,101
35, 867
469,148
516,972
366,504
388, 384
641
FEDERAL RESERVE BULLETIN.
MAT, 1921.
GOLD AND SILVER IMPORTS AND EXPORTS.
GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Exports.
Imports.
Country.
During
10 days
ending
Mar. 20,
1921.
During
11 days
ending
Mar. 31,
1921.
During
month
of
March,
1921.
During
11 days
ending
Apr. 10,
1921.
$5,000
$5,000
Belgium
53,437
Denmark
$14,216,082 27,019,290 41,241,531 $3,416,747
France
2,629
3,532
Germany
903
168,035
Greece
158,499
Italy
Netherlands
188,046
938,752 4,165,177
558,774
Portugal
Russia in Europe
138,957
129,614
Spain
664,600
164,356 4,678,956 4,737,870
Sweden
Turkey in Europe —
17,488
17,488
United
KingdomEngland
6,526,179 7,575,282 24,075,538 4,369,040
From
Jan. 1
to
Apr. 10,
1921.
During
From
Jan. 1 to 10 days
Apr. 10, ending
Mar. 20,
1920.
1921.
DurFrom
During During ing 10
Jan. 1
11 days month days
to
of
nding
ending
Mar. 31, March, Apr. Apr. 10,
1921.
1921.
10,
1921.
1921.
$9,000
38,391
89,922
62,937,143
$19,804
3,593
956,211
11,265
40,000
5,722,306 1,161,428
7,691
7,317
85,000
413 915
9,416,826
238,488
From
J a n . 1 to
Apr. 10,
1920.
$10,000
201,339
55,532,348 48,348,362
13,235
Total Europe... 21,615,024 35.611.718 71,321,226 16,688,834 135,462,099 49,576,911
224,574
Bermuda
British Honduras
Costa Rica
Guatemala
Honduras
Nicaragua
Panama
Salvador
Mexico
Cuba
British West Indies.
Virgin Islands of the
United States
Dominican Republic
Dutch West Indies..
Total N o r t h
America
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Uruguay
Venezuela
Total S o u t h
America
China
British India
Straits Settlements..
Dutch East Indies...
Hongkong
Japan
Turkey in Asia
Total Asia
Australia
New Zealand
Tahiti
Philippine Islands...
Abyssinia
British West Africa...
British South Africa..
Portuguese Africa
600
600
22,550 10,264,511 19,825,753
8,949
37,963
490
13,000
13,000
22,942
35,123
597
69,860
9,824
25,854
362,838
37,164
231
82,776
31,008
445 388
129,424
122 930
278
278'
1,120
61,000
133,920
600
20
51,133 20,603,468 18,481,988 $137,902 $22,825 $247,341 $18,141 $653,489 1,864,394
172,254
84,292
2,036
158,106
21,000
131.194
19,000
10 377
54,788
12 7421
203.998
289,129
523,687
30,160
20,845
283,376
101,221
29,000
110 1Q9
1,556,428 1,143,741 173,417 42,040 300,187 28,402 3,126,387 11,534,429
*>' Am
3,058
200,000
50,000
9,553
;
1,374
165,708
600
10,000
16,000
269,726
226,067j
509,803
249,386
518,152 10,730,113 21,517,302
509,912
77,016j
71
6,062
229,891
46,880
58,393
1,517
342,743
162,016
finfi
732,569
1,596,727
346,614
571,994
81,856
137,611
428,470 2,306,332
1,216,625
""202*834
25,833,500 20,189,771
311,319
64,865
597,528 46,543 3,979,876 13,443,823
63,645,000
314,403
1,166
8,552
52,835
4,070,587
210,466
7,408
21,104
269,706
1,857,481
302,329
23,270
5,532
4,435
118,629
12,392
124,874
22,060
1,170
10,850,000
184,000
2,262,798 1,047,153
7,116,037
501,664
24,300 76,129,000
2,653,169
2,058,308
194,129
9,660,719
8,274,262
81,856
46,758
145,664
4,938,997
20 613
28 864
84,735! 1.122.867
12 553
468,471
69,710
2,025,128
Q9 924.
769,832
86,379
84,866
270,835
67,204
3,l04
618,317
2,827
24,300
189,302
26,700
55,900
111, 840
2,400
5,220
204,063 2,265,474
2,845,545
2,208,234
150,884
246,107
23,343,707 2,265,474
26,700
55,900
111, 840
2,400
1,216,625
202,834 """26,"90C
3,900,287
529,180
51,313
263
74,253
19,625
51,823
51,823
51,313
23,00C
800
15,833,895
2,716,713
6,116,454
60,000 5,542,149
18,009,422
455,120
6,762,067
515,120 54,980,700
346,398
300
38,581
19,625
220,666
400,000
700,000
130,000
282,996
20,425
300
220,370
26,038
51,823
166,328
37,727
•
Total, all countries
Excess of imports or
exports
24,230,533 49,635,652 101,656,796 18,536,706 U96,706,382 73,138,315
23,892,514 49,514,887 100,947,128 18,487,763 192,186,78C
338,019 120,765
709,668 48,943 24,519,596 144,804,135
71,665,820
1 Includes: Ore and base bullion, $15,325,000; United States mint or assay office bars, $428,000; other refined bullion, $154,470,000; United
States coin, $5,836,000; foreign coin, $20,648,000.
'Includes: Domestic exports—Ore and base bullion, $23,000; United States mint or assay office bars, $295,000; other refined bullion, $35,000;
coin, $3,888,000. Foreign exports—Coin, $279,000.
642
FEDERAL RESERVE
BULLETIN.
MAT, 1921.
SILVER IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Imports.
Country.
France.
Germany
Greece
Netherlands.- .
Portugal
Spain
United K i n g d o m England
Total, Europe..
British Honduras
Canada
Costa Rica
Guatemala
Honduras
Nicaragua
Panama
Salvador
Mexico
Cuba
British West Indies
Virgin I s l a n d s of
United States
Dominican Republic.
Dutch West Indies...
French West Indies..
Haiti
Total,North
America
Argentina
Bolivia
Brazil
Chile .
Colombia
Ecuador
Dutch Guiana
Peru
Venezuela
Total, South
America
China
British India
Dutch East Indies
French East Indies
Hongkong
Japan
Total, Asia
Australia
New Zealand-..
Philippine Islands
Abyssinia
British West Africa..
British South Africa..
Portuguese Africa
Total, all countries
Excess of imports or
exports
During
10 days
ending
Mar. 20,
1921.
$5,287
5,287
132,623
460
42,979
15,173
992
668,345
During
month
of
March,
1921.
During
11 days
ending
Mar. 31,
1921.
$8,200
10,369
6,179
$11,841
15,924
22,144
5,923
295
5,923
436
30,966
56,268
248,694
7
24,373
922
802,244
2,847
451,034
2,080
1
67,36*8
15,1911
9961
3,922
2,375,308
2,847
Exports.
During
10 days
ending
Apr. 10,
1921.
$102
From
Jan. 1
to
Apr. 10,
1921.
$74,364
39,072
209,799
805
9,830
15,270
936
25,326
1,038
374,466
37,229
173
78,946
17,878
48
|
564,262
83
During
From
10 days
Jan. 1 to ending
Apr. 10, Mar. 20,
1920.
1921.
DurDuring During ing 10
From
11 days month
days
Jan. 1
ending
ending
of
to
Mar. 31, March, Apr. Apr. 10,
1921.
10,
1921.
1921.
1921.
From
J a n . 1 to
Apr. 10,
1920.
$12,142
369
4,375
34,967 $333,384 $287,230 $765,413
51,853
30,220
1,341,725 1,298,100
10,496
6,363
19,980
15
739,155
383,480
83,423
278,655
5.120
28,252
6.081 3,358,361
9 567 60721 828 063
7,430
26,673
122
6,918
333,384 287,230
83,774
60,097
500
66,268
9,750
27,915
1,200
$3,742,028
$308,241
3,742,028
308,241
797,940
4,282,198
500
800
500
348,800
765,413
224,771 $79,087
500
50,000
112,677 37,378
9,750
1,200
390
I
226,000!
431,000
50,000' 784,786 1,511,607
169,917
298,771
14,585
88 840
10,000
128,000
98
276
178
154
720
20
4,000
2,919,022
860,670 1,079,265
997
74,296
39,850
145,6931
27,377
698,773
11,402,086 27,624,893
955
238,717
35!
539.115
66
65,264
54
7,326
8,941
125,442
639,535
40,271
270
977,471
745 392
57,247
59,539
12,544
15,400
42
1,402,158 3,138,058
400
278,164
341,371
827,394
75,485
2,395,970 4,832,064
552
541
2.107
38,419
21,572
59.991
40
68,836
11,974
3,689
40
212,288 1,628,686
997
58,716
91,863
1,554
184,747
42,154
752
6,008
3,204
192
1,650
|
38,971
77
31
22,113
62,098
68,876
45
3
131
569
31
33
500
3,280
3,280
3,254
159,792
89,712
398,898 116,855 2,247,637
450
6,900,607
450
891
803
239,500
624
10,000
450
12,318
239,950
266,864 55,525
408,086 145,000
322,389
553,086
121,647 179,167
462,650
3,525,672
4i5,639
3,4i3,970 11,911,750
462,650 22,882 1,574,477
2,351,843! 38,547,382
1,515 985
223 211
216,209 1,642,310 1,259,247 379,6921,753,764 22,882 8,856,275 54,208,015
1,860
164
4,951
31
1
3,463
6,789
3,080
3,254
1,186,454 1,477,043
3,872,047
720,409
953,522
3,760
14,251
7,604
844,705 U4,413,748 34,168,976 1,752,423 756,634 2,918,525 139,737 215,085,890 61,432,261
704,968
565,969
672,142 27,263,285
1 Includes: Ore and base bullion, $12,108,000; refined bullion, $1,636,000; United States coin, $252,000; foreign coin, $418,000.
2 Includes: Domestic exports—Ore and base bullion, $1,000; United States Mint or Assay Office bars, $152,000; other refined bullion, $8,522,000;
coin, $754,000. Foreign exports—Ore and base bullion, $2,000; refined bullion, $4,166,000; coin, $1,489,000.
DISCOUNT AND INTEREST RATES.
Comparison with rates prevailing during the period ending March 15, 1921,
shows no marked changes in rates. There is a tendency to decrease in the
rates for bankers' acceptances, both indorsed and unindorsed, but for other
types of paper such increases and decreases as have occurred are approximately equal in number. With the exception of bankers' acceptances,
present rates as a whole continue higher for all types of paper than those
prevailing during the same period of 1920.
In the following table are presented actual discount and interest rates
prevailing during the 30-day period ending April 15, 1921, in the various
cities in which the several Federal Reserve Banks and their branches are
located. A complete description of the several types of paper for which
quotations are given will be found in the September, 1918. and October,
1918,
FEDERAL RESERVE BULLETINS.
Quotations for new types of paper
will be added from time to time as deemed of interest.
DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING APR. 15, 1921.
Prime commercial paper.
Dis trict.
30 to 90
days.
No
No
1....
2....
No 3 . . . .
No 4
No.
5
No
6
Boston
New York *
V, uiTalo
Philadelphia
Cleveland.
Pittsburgh
Cincinnati
Richmond
Baltimore
Atlanta .
No.
Birmingham
Jacksonville .
New Orleans
Nashville
7 . . . . Chicago
Detroit
8 . . . . St. Louis
Louisville
Memphis 2
Little Rock
9 . . . . Minneapolis
No.
10...
No
No.
No.
No.
n...
12...
Open market.
4 to 6
H L. C.
7| 6J 7
8
H I
8
8 62 7
6
7
6
7
6
fi
8
6 6 6
ss
8
s
7
8
7
6 6
fi 7
6 6
6-61
6 6
fi 6
6 8
fi 7-8
6 7
7
6
7
7
7 7
2
6 6
2*
7
7*
Helena
7
Kansas City
6
Omaha
7
Denver
6
Oklahoma C i t y — 9 6
7 61
Dallas
10
El Paso.
Houston
8 6
7 6
San Francisco
8 6
Portland
8
Seattle
8 7
Spokane
Salt Lake City
8 71
8 6
Los Angeles
s
?
f
8
8
7
8
7
8
7
8
7
61
6
8
8
8
7
r>
6
7
6
6
8
8
8
8
8
7
7
8
7
6
6
6
6
6
6
7
7
6
61
7
61
6
6
6
6
8
7 -8
8
7
7
7
7
6
8 7 8
8
10 8 2 8 2
6
7 8
6
89 6 8
7 7 7
10 8 8
3
7^
8
8
8
8
8
6"*
7
7^ 7
7 7
8
62 7
H. L. C.
8
7
s 72 8
8 7i 11
?* 6J 6J
8 8 8
8 7 8
8
8 71 7 |
L. C.
7i 7*
7f 7f 7f
8 7J- S
7f 7 7f
8
7-1 7 7-|
7 6 61-7
8 8 8
8 7 8
8 7 7*
8
71 7f
7f
7$ 7f
72
6 7f
7f
6 7f
8
8
8
8
71
6
8
8
8
71 7 |
7|
8
8
8
7! 7 | 7 |
8
8
71 7f
8 4 6 7f
Interbank
loans.
4 to 6
months.
30 to 90
days.
months.
8:1 8
8
8 8 8
8 8 8
7-1
8
8
8
71 7f
71 1'i
n 8
51 7|
Ordinary
Collateral loans—stock exchange
or otner cnrre U.
30 t o yu d a y s .
Customers.
City.
Bankers' acceptances,
Indorsed.
H.
7
8
s
6
7
6
6
6
8
8
8
8
8
9
7
7
6
71
8
8
8
9
8
10
7
7
7
7
7
8
7
8
8
i.
6
51
0
6
fi
6
6
6
6
6
fi
6
7
6
7
6+
61
ff
C.
6*
7
G -7
6
6
6
6
6
6
7
6 -7
7
?
7
7
7
6
7 7
7 71
6 8
6 7
7 8
6
6
6
6
6
6
1
Unindorsed.
3 to 6
nmnths.
H. X. C.
8 61
8 6 6 -7
f,
6 6 6
8 6 7
6 6 6
H. L. C.
8 6J7J
7
a
6
8
5|
8
8
6
7
^
8
7
6
8
of
8
71
5|
5+
5|
6 6
GJ
2
5|
6 52
5f
•4
5*
5|
8
7
61 7
8~ 8
5 7
3 months.
H. X.
H. L. C.
6J 51 5 |
1 1 1
7 51 5I-6| 8 4 6 -7
f,
6
7 6 6
6 5f 6
6i
8 6 1
6°
6 6 6
5!
6
64
6 6 6
6 6 6
8 6 7
8 fi 7 8
8 8 8
8
8
8 6 6I-8J 8 61 71-8
<?.
78
51
5|
6
6
6
51 5f 5f
7
61
Demand.
61 71
7 7 7
61 6
5 | 61
7
51
6
7 6
61
7
7
7
7
51
5|
i Rates for demand paper secured by prime bankers' acceptances, high 7, low 5A.
7
7
8
7
8
8
10
8
8
8
10
8
8
8
7
8
8
8
8
8
s
7
7
?6
7 8
71 8
8
6 7
7 8
6 7
6 8
61 71
fvL
6
6
6
6+
7i
•»
8
7 8
71 8
6 7
6+ 7
6 6
6
6
6
6
8
88 r,
6
8 7
6
8
7 61
7 7
71
?
8
8
10
8
9
8
10
8
8
8
7
8
8
?*
?8 «
71-8
7
7
7
7
6
8
8
8
8
8
7
7
7
8
8 6i 8
8 8 8
8 6 7
?
6
6
Q
O
6
7 8
6 7
6 8
6
6
8
6
8
7
z*
8
8
10
8
9
8
10
8
8
8
7
8
8
8
6
6
6
6
Cattle
loans.
Secured by
warehouse
receipts,
etc.
L. C.
H. X. C.
7
6
7
6
6 6
6 6
6 7
6 7 -8
7 8
7 71-8
6 7
7
6* 7
7 7
6J 7
6 6
7
8
6
6
7
6
8
7
8
8
10
7
8
7
10
8
6*
7
6
6
7
7
71
71
7
7
8
8
6 7
6 6
6+
6 6 6
8
6
8
8
8
8
8
1 7
8
7 -8
8
71-8
61
7
7 6 6
10 8 9
8 7 7
71 8
10
8
8
7!
8 7 8
8 7 7
61 6^
8 6 7
7
f,
7
7
6
Z*
8
8
10
8
s
8
? 718
6
8 7
71
8 7
7
7
loans to
customers
secured b y
I Liberty
i bonds and
! certificates
of i n d e b t 1
edness.
. L. C.
6
6
7 64
6 6 6
7 6 7
6 6 6
6A 6 6
6 6 6
6 6 6
8 6 7
8 f\
8 7 8
8 61 71-8
7 6 6
7 5
7 fii
6
6 6 6
8
7-i
10
8
8
S
10
8
8
8
7
7
8
6
7
6
6
61
61
6'
6
8 6
8
8 7
8 8
8 6
d1
t-
8
8
6 -7
8
7
8
s
8
7
6|
8
8
2 No report.
Co
644
FEDERAL, RESERVE BULLETIN.
MAT, 1921.
MONEY HELD OUTSIDE THE UNITED STATES TREASURY AND THE FEDERAL RESERVE
SYSTEM, APR. 1, 1921.
General stock.
Gold coin (including bullion in Treasury).
Gold certificates
Standard silver dollars.
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve bank notes.
National bank notes
Total:
Apr. 1, 1921
Mar. 1, 1 9 2 1 . . . . . . . .
Feb. 1,1921
Jan. 1, 1921
July 1,1920
Jan. 1,1920
July 1, 1919
Jan. 1,1919
July 1,1918
Jan. 1,1918
,
July 1,1917
Held in the
United States
Treasury as
assets of the
Government. 1
$3,001,487,915
Held by or for
Federal Reserve
Banks and
agents.
$425,716,950
2*72,' ii 2,326'
28, 593, 704
2 $1,607,219,944
362,379,242
3
30,882,045
93,147,799
8,443,724
271, 111, 530
< 91,142,502
324,443,805
20,562,970
4,965,536
3,875,677
7,591,552
5,855,737 '
16,868,625
346,681,016
3,265,571,195
192,991,400
732,818,484
8,082, 773,866
8,084, 936,396
8,171, 237,897
8,372, 970,904
7,887, 181,586
7,961, 320,139
7,588, 473,771
7,780, 793,606
6,742, 225,784
6,256, 198,271
5,480, 009,884
496,945,969
493,976,120
499,358,809
494,296,257
485,057,472 |
604,888,833
578,848,043
454,948,160
356,124,750
277,043,358
253,671,614
2,534,743,843
2,385,101,578
2,438,773,422
2,377,972,494
2,021,271,614
2,044,422,303
2,167,280,313
2,220,705,767
2,018,361,825
1,723,570, 291
1,280,880,714
oucsiae
System.
Amount per
t
OUtSlde
System#
$395,577,262 :
210,594,517 I
47,199,256 !
70,699,174 I
262,667,806
1,590,348 I
251,662,837 i
2,933,535,838 ;
166,572,683 |
710,984,323 \
5,051,084,054
5,205,858,698
5,233,105,666
5,500,702,153
5,380,852, 500
5,312,009,003
4,842,345,415
5,105,139,679
4,367,739,209
4,255,584,622
3,945,457,556
$46. 91
48.41
48.73
51. 29
50.19
49.81
45.00
47.83
41.31
40. 53
37.88
1
Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of
national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the
redemption
of outstanding gold and silver certificates and Treasury notes of 1890.
2
Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Resen; e notes, and of gold held with foreign
agencies
but
inclusive of balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
3
Includes subsidiary silver.
4
Includes Treasury notes of 1890.
DISCOUNT RATES OF THE FEDERAL RESERVE BANKS.
DISCOUNT RATES APPROVED BY THE FEDERAL RESERVE BOARD UP TO MAY 1, 1921.
Paper maturing within 90 days.
Federal Reserve Bank.
Secured b y Treasury
certificates of
indebtedness.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. .
Kansas City..
Dallas
San Francisco.
1
Trade
acceptances.
Liberty bonds
and Victory
notes.
Commercial
paper 11. e. s.
Bankers'
acceptances
maturing
within
3 months.
Agricultural
and live-stock
paper maturing
after 90 days,
but within 6
months.
5*1
6
6
!
Discount rate corresponds to interest rate borne by certificates pledged as collateral.
NOTE.—Rates shown for St. Louis and Kansas City are normal rates, applying to discounts not in excess of a basic line fixed for each member
bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a £ per cent progressive increase for each 25 per
cent by which the amount of accommodation extended exceeds the basic line, except that the maximum rate charged by the Kansas City bank
does not exceed 12 per cent.
INDEX.
Acceptances:
Page.
Banks granted authority to accept up to 100 per cent of capital
and surplus
551
Condition of the acceptance market
534
Held by Federal Reserve Banks
619
Purchased by Federal Reserve Banks
616
Regulation B, amendment to
545
Accommodation granted to correspondents by city banks, methods
followed
536
Amendment to section 5146, Revised Statutes, relative to qualifications of national-bank directors
549
Amendments to Indiana and Oklahoma banking laws
550
Australia, index of wholesale prices in
604
Bank debits
510,634
Banking situation, discussion of
512
Borrower's statement as to quick assets over current liabilities... 546
British finance during the war
'563
Business and financial conditions:
England
552,608
France
555,608
Italy
557,609
Japan
610
Germany
559,609
Sweden
561,610
United States
514-526
Canada, index of wholesale prices in
604
Certificates of indebtedness issued
511
Charters issued to national banks
551
Charts:
Assets and liabilities of Federal Reserve Banks
622
Assets and liabilities of member banks
628
Debits to individual account
635
Deposits and securities at Bank of England
570
Physical volume of trade
586
Quarterly receipts by British treasury, 1914-1920
566
Rate at Bank of England on three months' treasury bills
568
Wholesale prices in the United States
580
City banks granting accommodations to correspondents, methods followed
536
Clearing and collection system, operations of
639
Clearing-house bank debits
510,634
Commercial failures
550
Condition statements:
Federal Reserve Banks
620-625
Member banks in leading cities
628-634
Principal foreign banks of issue
611,612
South American banks
578
Conference of governors of Federal Reserve Banks
513
Cotton fabrics, production and shipments
595
Credit situation, discussion of
503,510
Debits to individual account
510
Directors of national banks, qualifications of; amendment to section 5146, Revised Statutes
549
Discount and open-market operations of Federal Reserve Banks. 613-619
Acceptances held
619
Acceptances purchased
616
Bills discounted
615
Bills held
618
Earning assets held
618
Number of banks discounting during March
614
Rediscounts and sales of paper between Federal Reserve
Banks
617
Volume of, during March
615
Discount rates:
In effect May 1
644
Prevailing in various centers
643
Employment conditions in the United States
506, 526
England:
British finance during the war
563
Business and financial conditions
552,608
Wholesale price index
602
Failures, commercial, reported
[ 550
Federal Reserve Banks:
Condition of
620-625
Discount and open-market operations of
613-619
FEDERAL RESERVE BULLETIN, index-digest of
Federal Reserve notes:
Accounts of Federal Reserve agents
Interdistrict movement of
Fiduciary powers:
Granted to national banks
National banks acting as transfer agents
Foreign exchange rates:
Discussion of
South American countries
Foreign trade:
Discussion of
Index of
United Kingdom, France, 1 taly, Sweden, and Japan
France:
Business and financial conditions in
Wholesale price index
Germany:
Business and financial conditions in
Wholesale price index
Gold imports and exports
Gold settlement fund
Governors of Federal Reserve Banks, conference of
Imports and exports:
Gold
Silver
South American countries
Index-digest of FEDERAL RESERVE BULLETIN
Index numbers:
Foreign, trade
Physical volume of trade
513
626
627
551
545
509
57.
509
583
606
555,1
603
559,609
603
511,641
640
513
511,641
511,042
574
513
584
585-596
Index numbers—Continued.
Page.
Retail prices in principal countries
605
Retail trade
598-600
Wholesale prices abroad
601-604
Wholesale prices in the United States
505,581
India, index of wholesale prices in
604
Indiana, amendment to banking laws of
550
Interest rates prevailing in various centers
643
Italy:
Bank of Italy, condition of
611
Business and financial conditions in
557,609
Wholesale price index
603
Japan, financial statistics
610
Knit goods production
596
Law department:
Amendment to section 5146, Revised Statutes, relative to
qualifications of directors of national banks
549
Amendments to Oklahoma and Indiana banking laws
550
Authority of national banks to guarantee letters of credit
547
Letters of credit, authority of national banks to guarantee, and to
appoint agent'to issue
547
Loans by city banks to correspondents, methods followed in granting
536
Methods followed by city banks in granting accommodation to
correspondents
536
Member banks:
Condition of
628-634
Number discounting during March
614
Number in each district
614
State banks admitted to system
551
Money, stock of, in the United States
644
National banks:
Acting as transfer agents, ruling on
545
Authority of, to guarantee letters of credit and to appoint
agents to issue letters of credit
547
Charters issued to
551
Demand loans on real estate by, ruling 011
546
Directors, qualifications of, amendment to section 5146, Revised Statutes, relative to
549
Fiduciary powers granted to
551
Oklahoma, amendment to banking laws of
550
Par list, number of banks on
639
Physical volume of trade
585-596
Prices:
Discussion of
504
Retail, in principal countries
605
Wholesale—
Abroad
601-604
In the United States
579-583
Of leading commodities exported from South American
countries
573
Railroad rate problem
507
Rates:
DiscountIn effect May 1
644
Prevailing in various centers
643
Foreign exchange
509
Readjustment situation
503
Real estate, demand loans on, by national banks
546
Regulation B, amendmentto, authorizing open-market purchases
of six months' acceptances growing out of foreign transactions.. 545
Reserve ratio of the Federal Reserve Banks
513
Resources and liabilities:
Federal Reserve Banks
620-625
Member banks in leading cities
628-634
Retail prices in principal countries
605
Retail trade index
598-600
Review of the month
503
Revised Statutes, amendment to, relative to qualifications of
national bank directors
549
Rulings of the Federal Reserve Board:
Amendment to Regulation B, authorizing open-market purchases of six months acceptances growing out of foreign
transactions
545
Borrower's statement as to quick assets over current liabilities. 546
Demand loans on real estate by national banks
546
National banks as transfer agents
545
Silver, imports and exports of
511,642
South America, recent economic developments in
572-578
State banking laws, amendments to:
Indiana
550
Oklahoma
550
State banks and trust companies admitted to system
551
Sweden:
Bank of, condition of
612
Business and financial conditions in
561,610
Wholesale price index
603
Trade:
ForeignDiscussion of
509
Index of
583
United Kingdom, France, Italy, Sweden, and Japan
606
Physical volume of
585-596
Retail, index of
598-600
Wholesale, condition of
600
Transfer agents, national banks acting as, ruling on
545
Treasury certificates of indebtedness issued
511
Treasury, condition of
511
Wage conditions in the United States
506,526
Wholesale prices:
Abroad
In the United States
579
Of leading commodities exported from South American countries
573
Wholesale trade, condition of
600
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