Full text of Federal Reserve Bulletin : May 1930
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FEDERAL RESERVE
BULLETIN
MAY, 1930
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
Bank Credit and the Capital Market
Annual Reports of Central Banks: Belgium,
Germany, Japan, and Switzerland
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1930
FEDERAL RESERVE BOARD
Ex officio members:
ROT A. YOUNG, Governor.
EDMUND PLATT, VicemGovernor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
GEORGE R. JAMES.
EDWARD H. CUNNINGHAM.
A. W. MELLON,
Secretary of the Treasury, Chairman,
J. W. POLE,
Comptroller of the Currency.
WALTER WYATT, General Counsel.
WALTER L. EDDY, Secretary.
E. M. MCCLELLAND, Assistant Secretary.
J. C. NOELL, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
E. A. GOLDENWEISER, Director, Division of Research
and Statistics.
CARL E. PARRY, Assistant Director, Division of Research
and Statistics.
Chief, Division of Examination, and Chief Federal
E. L. SMEAD, Chief, Division of Bank Operations.
Reserve Examiner.
FEDERAL ADVISORY COUNCIL
District
District
District
District
District
District
District
District
District
District
District
District
No. 1 (BOSTON)
No. 2 ( N E W YORK)
No. 3 (PHILADELPHIA)
No. 4 (CLEVELAND)
No. 5 (RICHMOND)..No. 6 (ATLANTA)
No. 7 (CHICAGO)
No. 8 (ST. LOUIS)
No. 9 (MINNEAPOLIS)
No. 10 (KANSAS CITY)
No. 11 (DALLAS)
No. 12 (SAN FRANCISCO).—-.-_
.__
HERBERT K. HALLETT.
WM. C. POTTER.
HOWARD A. LOEB.
HARRIS CREECH.
JOHN POOLE.
J. P. BUTLER, Jr.
FRANK O. WETMORE, President.
W. W. SMITH.
GEO. H. PRINCE.
W. S. MCLUCAS.
. _ B. A. MCKINNEY, Vice President.
F. L. LIPMAN.
WALTER LICHTENSTEIN, Secretary.
II
OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
Chairman
Governor
Boston
___
New York
Frederic H. Curtiss
j H Case
Geo. L. Harrison
Philadelphia..
R. L. Austin
George DeCamp
Wm W Hoxton
Geo. W. Norris
E. R. Fancher
George J. Seay
Cleveland
Richmond
Atlanta
Chicago
Oscar Newton
Wm. A. Heath
St. Louis.
Rolla Wells
Minneapolis...
Dallas
John R. Mitchell
M. L. McClure
C. C. Walsh
W. B. Geery
W. J. Bailey...
_ Lynn P. Talley
San Francisco.
Isaac B. Newton
Jno. U. Calkins
Kansas City...
Deputy governor
Cashier
W. W. Paddock
_ _ L. F, Sailer .
E. R. Kenzel
A. W. Gilbart
L. R. Rounds
J. E. Crane
Walter S. Logan
Wm. H. Hutt
M. J. Fleming
Frank J. Zurlinden
C. A. Peple
R. H. Broaddus
Hugh Foster
Creed Taylor...
C. R. McKay
John H. Blair
Eugene R. Black
_ J. B. McDougal
Wm. McC. Martin
W. Willett.
C. H. Coe *
Ray M. Gidney.i
J. W. Jones.i
W. B. Matteson.i
J. M. Rice.*
Allan SprouU
C. A. Mcllhenny.
W. G. McCreedy.*
H. F. Strater.
Geo. H. Keesee.
John S. Walden, jr.»
M. W. Bell.
W. C. Bachman.1
K. C. Childs.*
J. H. Dillard.i
D. A. Jones.'
0. J. Netterstrom.»
S. F. Gilmore.i
A. H. HailU
F. N. HalU
G. 0. Hollocher.»
C. A. Schacht.*
_. Gray Warren.
Frank C. Dunlop.1
J. W. Helm.
Fred Harris.
W. 0. Ford.i
Wm. M. Hale.
0. M. Attebery
Harry Yaeger
H, I. Ziemer>_
C. A. Worthington
T W
TTAI m
R. R. Gilbert
R. B. Coleman
Wm. A. Day
Ira Clerk
i Assistant deputy governor.
» Controller.
MANAGING DIRECTORS OF BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
j New York:
i
Buffalo branch
_
i Cleveland:
I
Cincinnati branch
j
Pittsburgh branch..
| Richmond:
Baltimore branch
Charlotte branch__
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch....
Memphis branch
Little Rock branch.
Managing director
_ R. M. O'Hara.
C. F. McCombs.
J. C. Nevin.
A. H. Dudley.
Hugh Leach.
Marcus Walker.
W. S. McLarin, jr.
A. E. Walker.
J. B. Fort, jr.
_| W. R. Cation.
W. P. Kincheloe.
W. H. Glasgow.
A. F. Bailey.
Federal Reserve Bank of—
Minneapolis:
Helena branch
Kansas City:
Omaha branch.
Denver branch
Oklahoma City branch.
Dallas:
El Paso branch
Houston branch
San Antonio branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch..
Seattle branch _
Spokane branch
Managing director
R. E. Towle.
L. H. Earhart.
J. E. Olson.
C. E. Daniel.
J. L. Hermann.
W. D. Gentry.
M. Crump.
W. N. Ambrose.
R. B. West.
W. L. Partner.
C. R. Shaw.
D. L. Davis.
SUBSCRIPTION PRICE OF BULLETIN
The FEDERAL RESERVE BULLETIN is the board's medium of communication
with member banks of the Federal reserve system and is the only official organ
or periodical publication of the board. The BULLETIN will be sent to all member
banks without charge. To others the subscription price, which covers the cost of
paper and printing, is $2. Single copies will be sold at 20 cents. Outside of the
United States, Canada, Mexico, and the insular possessions, $2.60; single copies,
25 cents.
in
|
TABLE OF CONTENTS
Page
Review of the month—Bank credit and the capital market
275
The credit situation—Decrease of commercial loans—Growth of bank investments—Growth of
brokers' loans—The capital market.
Annual report of the Bank of Belgium
294
Annual report of the German Reichsbank
298
Annual report of the Bank of Japan
302
Annual report of the National Bank of Switzerland
305
Recent currency legislation in Switzerland
312
National summary of business conditions
278
Financial, industrial, and commercial statistics:
Reserve bank credit and factors in changes (chart and table)
279, 280
Analysis of changes in monetary gold stock
280
Gold movements to and from United States.,
280
Member bank borrowings at Federal reserve banks
281
Discount rates and money rates
281,282
Member bank credit
283
Bankers' acceptances and commercial paper outstanding
283
Brokers' loans
283
Security prices, security issues, and building contracts awarded
284
Production, employment, car loadings, and commodity prices
285
Industrial production
286
Factory employment and pay rolls
287
Banking and business conditions in Federal reserve districts:
Federal reserve banks—
Discounts (chart and tables)
288, 289
Reserves, deposits, note circulation, and reserve percentages
289
All member banks—Deposits subject to reserve, reserves held, and indebtedness at reserve banks. _ 289
Member banks in leading cities—Principal resources and liabilities
290
Bank debits
290
Building
293
Department stores—Indexes of sales and stocks
293
Commercial failures
293
Bank suspensions
293
Financial statistics for foreign countries:
Gold holdings of central banks and governments
314
Gold exports and imports
314
Condition of central banks
.
315, 316
Condition of commercial banks
317
Discount rates of central banks
318
Money rates
318
Foreign exchange rates
319
Price movements
320, 321
Law department:
Passage of trust powers upon consolidation of a national bank and a State trust company—Opinion
of the Supreme Court of Tennessee
322
Authority of Congress for erection of Pittsburgh branch building
324
Amendments to Federal reserve act
325
Detailed Federal reserve statistics, etc.:
Resources and liabilities of Federal reserve banks in detail and Federal reserve note statement
327
Condition of each Federal reserve bank at end of month
328-330
Maturity distribution of bills and short-term securities held by Federal reserve banks
331
Membership in par collection system
331
Changes in national and State bank membership
332
Fiduciary powers granted to national banks
333
IV
FEDERAL RESERVE BULLETIN
VOL.
16
MAY, 1930
REVIEW OF THE MONTH
The credit situation has continued to be
relatively easy in recent weeks. Demand for
credit from commercial sources
The credit
has
declined further, while desituation
mand from the securities markets has increased. During the last two months
increased activity in the securities markets, a
large volume of bond issues, and—until the
middle of April—a rising level of stock prices
have been accompanied by an increase of more
than $785,000,000 in brokers' loans at New
York City. Loans and investments of member
banks in leading cities, after reaching a'low
point at the end of February, increased in
March and April by about $750,000,000, reflecting growth in their security loans and in their
investments, while "all other" loans continuously declined. Indebtedness of member banks
at the reserve banks decreased further in the
two months by about $135,000,000, chiefly
on account of liquidation made possible to the
member banks by gold imports from the Orient
and South America and a further inflow of currency from circulation. As compared with a
year ago, the volume of credit extended by the
member banks is larger by about $450,000,000,
but the volume of their rediscounts with the
Federal reserve banks has declined from nearly
$1,000,000,000 to about $200,000,000, the
lowest level since 1917. The funds for the
reduction of these rediscounts have been derived from the addition of $200,000,000 to the
country's stock of monetary gold, largely
through imports from abroad, and an inflow of
$150,000,000 of money from circulation, caused
by decreased activity of trade and industry
and a decline in the price level, the funds from
both of these sources having tended to decrease
the total volume of reserve-bank credit, as
well as the volume of rediscounts by member
banks; in addition, the Federal reserve banks
have increased their holdings of United States
No. 5
Government securities by $350,000,000 and
their holdings of acceptances by $100,000,000,
these open-market operations having tended
to reduce member-ba.nk rediscounts without
changing the total volume of reserve-bank
credit in use. Easier conditions prevailing in
the money market, therefore, which accord
with the lower level of member bank indebtedness at the reserve banks, reflect gold imports
from abroad, a reduced domestic demand for
currency, and a more liberal open-market
policy by the Federal reserve system.
The recent increase in member bank loans
has been altogether in the form of loans on
securities to brokers and dealers
Decrease of
^ New York Q t
Avaiiable
commercial
J
information lor member banks
in leading cities indicates that
other borrowers have been paying off their
loans, both secured and unsecured, at a rapid
rate since the end of last October and that
during this period they have liquidated about
$2,000,000,000 of such loans. This decrease
has reflected in part diminution in the demand
for credit by trade and industry, owing to the
prevailing recession in activity,1 but has also
reflected a shift by borrowers on securities and
otherwise from seeking direct accommodation
at their own banks to borrowing indirectly
through brokers. Such a shift is indicated by
the fact that loans on securities by banks in
leading cities to borrowers other than brokers
have decreased considerably; it is also suggested
by the fact that in recent months the decrease
in "all other" loans, that is, loans not secured
by stocks and bonds, has been largely at banks
in New York City. It would appear, therefore,
that borrowers on securities and on regular
lines of credit, who had used the proceeds of
their loans for the purpose of carrying or trading in securities, have been influenced by the
prevalence in the open market of lower rates
Ioans
i The Board's current summary of business conditions in the United
States appears on page 278.
275
276
FEDERAL RESERVE BULLETIN
than at their banks, to transfer their borrowings from these banks to their brokers, who can
borrow at the open-market rate. This shift
represents a reversal of the movement that
took place in 1929 during the period of extremely high rates on stock-exchange loans,
when borrowings for the financing of security
operations were transferred in considerable
volume from the brokers to the banks. This
shift from other loans to brokers' loans has been
a factor in the large increase in stock-exchange
loans that has characterized the period.
Liquidation of loans to others than brokers
in recent months has taken place in all Federal
reserve districts, and funds
Growth of bank placed in the New York money
investments
market have come from banks
throughout the country. Member bank holdings of investments, as measured by the
figures for reporting member banks, after
showing little change from the first of the
year, increased in the last half of March and
less rapidly throughout April in the amount
altogether of about $260,000,000. Excepting
the period of the October-November break in
the securities markets this is the most rapid
increase in the banks' investment portfolio
since November, 1927. This increase in the
investments of member banks is another indication of the fact that these banks do not encounter a demand for all their funds from their
commercial customers, and seek to employ the
surplus in the purchase of investments as well
as in making loans on the stock exchange.
Growth of brokers' loans in the past has
usually accompanied an advance in security
prices, and this has been the
Growth of
case in recent months, but
brokers' loans
since early in April the advance
in brokers' loans has continued, while security
prices have tended to recede. Between the
end of December and the first week in April
prices of common stocks advanced by 20 per
cent, but later in April they showed a downward tendency. The advance in stock prices
had been almost continuous for more than
three months, becoming especially rapid after a
period of pronounced ease in the money market
for a few days in the early part of March. A
M A Y , 1930
factor in the recent growth of brokers' loans,
which include loans to issuing houses, has been
the large volume of bonds issued and in process
of distribution.
• The course of brokers' loans, showing a distribution between loans by banks and loans by
other lenders, is presented in the chart for the
period since the end of 1927. During December, 1929, and the first two months of 1930
there was relatively little change in the aggregate of brokers' loans, funds withdrawn by
nonbanking lenders being replaced by funds
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
7000
7000
6000
6000
5000
5000
4000
4000
3000
3000
2000
2000
1000
1000
1928
1929
1930
Loans by reporting member banks in New York City (1) for own
account and account of out-of-town banks and (2) for account of
others
loaned by the banks themselves. Further
withdrawals by nonbanking lenders were made
in March, but from the end of February the
money placed in the call market by the banks
exceeded these withdrawals. The growth of
brokers' loans in April represented not only
a further increase in lending by banks, but also
an increase of $120,000,000 of loans for other
lenders, the first growth in this class of loans
since last October. At their present level of
$1,400,000,000 loans for nonbanking lenders
placed by reporting New York banks, notwithstanding the recent increase, are lower than
at any time during the two years between the
spring of 1928 and the end of March, 1930.
MAY,
1930
FEDERAL RESERVE BULLETIN
Loans to brokers by banks, on the other hand,
which total $2,900,000,000 at the present time,
are close to the highest levels that they have ever
reached, and brokers' loans by banks in New York
City for their own account are larger than at any
previous time, excepting only the week following the break in the stock market last October.'
With greater activity in recent months in the
markets for securities, the volume of new
securities issued has been ine capi a
creasing and in the first quarter
maF e
of 1930, at $2,140,000,000, was
much larger than in the final quarter of last
year, but continued to be below the exceptional levels of the late months of 1928 and the
first three quarters of 1929. More than half
of the new issues during the last six months
have been in the form of bonds, for the first
time in more than a year, and from January
through March bonds represented more than
75 per cent of the new issues. New foreign
securities issued in the American market during
the quarter in the amount of $300,000,000 represented about one-sixth of all bond issues. Preliminary figures for April indicate that as in
previous months most of the new financing in
the American market was accomplished through
the issue of bonds.
Bond prices advanced in February andMarch
to the highest level in nearly two years, but after
the third week in March they receded. In the
secondand third weeks of March, when exceptionally easy credit conditions accompanied
the quarterly Treasury financing, bond prices
advanced by 1.5 per cent, but in subsequent
weeks they declined by more than one-half of this
amount. A factor in this decline, in addition to
the passing of the temporary period of exceptional ease in the money market, was the continued
issue of new bonds in substantial volume. Furthermore, the preference of in vestors for stocks
has continued in recent months, as for several
years past, and has been a factor in making the
revival of the bond market slow and irregular.
277
cent at the Federal Reserve Bank of Dallas,
effective April 8; at the Federal Reserve Bank
of Richmond, effective April 11; at the Federal
Reserve Bank of Atlanta and the Federal Reserve Bank of St. Louis, effective April 12; and
at the Federal Reserve Bank of Minneapolis,
effective April 15.
The discount rate at the Federal Reserve
Bank of New York was reduced from 3% to 3
per cent, effective May 2. The buying rate on
bills with maturities from 1 to 120 days was
reduced from 3 to 2% per cent, effective May 1,
and to 2% per cent, effective May 2. Rates
on bills with maturities of 4 to 6 months were
reduced from Sji to 3 per cent, effective May 2.
Changes in Foreign Central Bank Discount Rates
The following changes have been made since
the 1st of April in the discount rates of central
banks in foreign countries: April 3, Bank of
Sweden, from 4 to 3% per cent; Imperial Bank
of India, from 7 to 6 per cent; National Bank
of Switzerland, from 3^ to 3 per cent; April
24, Bank of Italy, from 6K to 6 per cent;
April 28, Bank of Finland, from 7 to 6%
per cent; May 1, Bank of England, from 3% to
3 per cent, and National Bank of Belgium, from
3K to 3 per cent; May 2, Bank of France, from
3 to 2}i per cent, and Bank of Danzig from 5% to
5 per cent; May 3 ; Bank of Denmark, from 02
to 4 per cent.
Revision of Member Bank Reporting Service
Beginning with the statement for April 23,
1930, the statistics for weekly reporting member banks in leading cities have included
figures of a number of selected banks in the Chicago district—but outside the city of Chicago—
in the place of figures for one large bank in
Chicago. This change was necessitated by the
withdrawal of this bank from the Federal reserve system through merger with a nonmember bank; the merger occurred in 1929 but by
special arrangement it did not affect the reporting service until recently. Adjustment of
the reporting service has been made in such
manner as to preserve as nearly as possible
the comparability of the series for the Chicago
district and for the country as a whole. For
the city of Chicago, however, since the new
series must be at a level considerably lower
than the old one, comparable figures have been
Changes in Discount Rates and Bill Rates
prepared back to the beginning of 1929; these
The discount rate on all classes and maturi- are given by months on page 283, and recent
ties of paper was reduced from 4% to 4 per weekly^figures are given on page 290.
278
FEDERAL RESERVE BULLETIN
Annnal Report of the Federal Reserve Board
The text of the annual report of the Federal
Reserve Board, covering operations for 1929,
was presented to Congress on April 24 and released for publication April 25.
The complete edition of the report is now in
press and is expected to appear in May. It contains, in addition to the text of the report,
MAY,
1930
tables giving all the items of the so-called " elements analysis"—reserve bank credit, gold
stock, money in circulation, member bank reserve balances, etc.—and statistics relating to
discount rates and money rates and to banking
and business conditions generally. It also gives
the recommendations made by the Federal
Advisory Council during 1929 and court decisions relating to the Federal reserve system.
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled April 21 and released for publication April 24]
Industrial production declined in March,
while factory employment and pay rolls showed
little change, and wholesale prices continued
to decline. There was an increase in construction, as is usual a,t this season. Interest rates
continued to decline in the first three weeks of
March, but later became somewhat firmer.
Production.—Production in basic industries
declined in March, contrary to the usual
seasonal trend. Average daily output of steel,
coal, and copper decreased substantially, while
output of cotton and wool textiles declined at
about the usual seasonal rate. Production of
automobiles and lumber increased.
For the first quarter of the year, taken as a
whole, output of basic industries was considerably smaller than in the unusually active
first quarter of 1929 and smaller than in any
other first quarter since 1925. In the steel and
automobile industries output for the first three
months, though smaller than in 1929, was about
the same as in the corresponding months in
1928, while in most of the other major industries it was smaller than in either of the two
preceding years.
Building contracts awarded increased substantially in March as is usual at this season,
according to reports of the F. W. Dodge Corporation. In comparison with a year ago, a
large increase in contracts for public works and
utilities was more than offset by a decrease in
residential building. Average daily awards in
the first half of April were somewhat larger
than in March, but continued smaller than a
year ago.
Employment.—Factory employment and
pay rolls, which usually increase during March,
changed little from February and continued to
be considerably smaller than in other recent
years. The number of workers employed in
the automobile industry increased somewhat
less than is usual at this season, and reductions
in employment and in earnings were reported
in the iron and steel, machinery, and carbuilding industries.
Distribution.—Freight carloadings, which
have been at low levels in recent months, did
not show the usual seasonal increase during
March. Department-store sales continued in
smaller volume than a year ago.
Wholesale prices.—Wholesale prices, which
began to decline last summer, continued to
move downward in March to the lowest level
since 1916, the decline reflecting chiefly sharp
decreases in prices of agricultural products.
Prices of imported raw materials, such as
sugar, coffee, and silk, fluctuated around the
low levels reached in February. The price of
silver advanced slightly from the low point
reached early in March.
In the last week in March and the first'week
in April there were advances in prices of agricultural products, especially grains and cotton,
while the price of steel declined. On April 15
the price of copper was sharply reduced, and in
the same week prices of a number of other important commodities also declined.
Bank credit.—At member banks in leading
cities total loans and investments increased in
the 4-week period ending April 16, reflecting a
growth of $184,000,000 in loans on securities
and of $80,000,000 in investments, offset in
part by a further decrease of $186,000,000 in
"all other" loans.
Member-bank indebtedness at the reserve
banks and total reserve-bank credit declined
further between the weeks ending March 15
and April 12, reflecting primarily additional
imports of gold from the Orient.
In the third week of March money rates in
the open market reached the lowest levels since
1924, but in the next three weeks were somewhat firmer. Rates on commercial paper
declined to a range of 3%-4 per cent on March
24 and remained steady at that level; rates on
60-90 day bankers' acceptances were reduced to
2K per cent on March 20 but later advanced to
3 per cent. Bond yields, after declining during
most of March, increased gradually in the first
half of April.
MAT,
279
FEDERAL RESERVE BULLETIN
1930
FEDERAL RESERVE BANK CREDIT
RESERVE BANK CREDIT OUTSTANDING AND PRINCIPAL FACTORS IN CHANGES
MILLIONS OF DOLLARS
MILLIONS OF DOLLARS
1926
1927
1928
1929
Based on weekly averages of daily figures; latest figures are for week ending April 26
109492—30
2
1930
280
FEDERAL RESERVE BULLETIN
MAY,
1930
RESERVE BANE CREDIT OUTSTANDING AND FACTORS IN CHANGES
[Averages of daily figures. In millions of dollars]
Reserve bank credit outstanding
Month or week
Bills discounted
1929—January
February
March
April
May
June
July
August
September
October
November
December
1930—January
February
March
April
!
Week ending (Saturday)— i
Apr.
Apr.
Apr.
Apr.
5.
12
19
26
!
i
!
!
Bills
bought
Other
United
reserve
States
bank
securities credit»
Factors of decrease *
Total
Factors of increase i
NonMonetary Treasury
Money Member
currency in
member
bank
gold
circu- reserve
outstandclearing
stock
lation
ing
balances balances
Unexpended
capital
funds
184
197
165
153
179
147
155
165
154
315
446
485
480
540
530
62
44
50
52
49
61
62
54
64
74
67
74
67
38
35
45
1,613
1,502
1,481
1,377
1,303
1,317
1,380
1,376
1,427
1,450
1,631
1,643
1,357
1,181
1,095
1,072
4,115
4,143
4,166
4,226
4,292
4,311
4,335
4,351
4,368
4,381
4,374
4,324
4,283
4,319
4,395
4,443
1,789
1,784
1,791
1,785
1,787
1,779
1,790
1,781
1,766
1,785
1,789
1,797
1,784
1,781
1,797
1,781
4,748
4,686
4,709
4,679
4,684
4,687
4,764
4,777
4,811
4,810
4,845
4,943
4,652
4,556 i
4,533 |
4,518
2,387
2,357
2,337
2,308
2,296
2,314
2,334
2,322
2,335
2,386
2,521
2,395
2,349
2,305
2,330
2,350
351
357
361
366
370
376
376
382
387
392
601
378
274
231
473
385
265
156
145
99
75
124
229
337
296
320
314
285
246
266
249
242
220
228
292
271
285
251
532
528
533
528
44
33
57
47
1,117
1,074
1,095
1,054 I
4,427
4,435
4,439
4,449
1,772
1,781
1,786
1,780
4,540
4,529
4, 531
4,500
2,350
2,337 ,
2,358
2,354
399
859
1,004
956
978
1,096
1,043
885
953
397
400
400
400
i For explanation see BULLETIN for July, 1929, pp. 432-438.
a Includes "other securities," amounts due from foreign banks, and reserve bank float; for explanation see BULLETIN for July, 1929.
GOLD MOVEMENTS TO AND FROM UNITED STATES
[In thousands of dollars]
ANALYSIS OF CHANGES IN MONETARY GOLD STOCK
[End of month basis. In millions of dollars]
Month
Gold
stock
at end
of
month
1928—July
August
September
OctoberNovember
December
4,113
4,123
4,125
4,142
4,128
4,141
Total (12 mos.)..
1929—January
February
March
April
May
June
July
August
September
October.
November
December
4,127
4 153
4,188
4,260
4,301
4,324
4,341
4,360
4,372
4,386
4,366
4, 284
Total (12mos.)._
1930—January
February
IVTarch
April v
4,293
4,355
4 423
4,491
Increase or decrease (—) during
month
Total
3.4
10.3
2.1
17.3
-14.0
13.2
Through Through Through
net gold
ear- domestic
import marking producor
tion,
operaetc.*
tions
export
-63.9
60.9
0.7
5.9
0.5
13.3
6.7
23.3
-25.0
-15.7
2.8
2.8
4.3
5.6
L2
-392. 0
119.6
34.5
-14.4
26 4
34.4
72.4
40.6
23.4
16.3
18.9
12.1
14.4
-19.8
-82.3
47.2
25 5
24.8
23.1
23.6
30.2
34.7
18.4
17.6
17.5
-23.2
-64.4
-65.0
3.4
.9
2.1
0.7
0.9
142.4
175.1
-55.4
22.7
2.5
2.3
1.9
—0 3
5.4
8.8
4.0
60.0
55 5
62.2
7.5
48.6
16.1
-7.5
-22.0
-1.0
-6.6
-4.5
1.0
-22.0
0.0
13 0
0.5
0.7
3.6
1.5
1.1
1.4
2.4
4.1
i For explanation of this figure, which is derived from preceding columns, see BULLETIN for December, 1928, p. 831.
J» Preliminary.
From or to—
April (preliminary)
Imports
6.4
3.7
! -237.9
61.9
68 2
68.1
1930
England
France.
Germany
2,396
21,583
2 62,332
4
7
2
3,100
59
4 249
28
5,425
39
1,155 i
226
212
44
36,738
New Zealand
All other countries.. 11,605
1
1
Imports
*
. .
Netherlands
Canada
Central America
Mexico
Argentina
Brazil
Chile
Colombia
Ecuador.
Peru_
Venezuela
British India
China and Hong
Kong
Dutch East Indips
Japan
Total
Exports
2 410
139
38, 314
9Q7
15 1
190
90
JanuaryMarch
March
42
55,768 1
Exports
Imports
195
7
27
25
20
24
1
50
8,886
572
6 728
325
22,678
84
2 440
482
660
129
3 250
380
79, 222
764
54
2,163
290 128,874
Exports
195
8,497
156
70
415
99
KCi
40
9,445
Includes all movements of unreported origin or destination.
At New York—imports, $40,739,000; exports, $90,000. Elsewhere—
imports, $21,593,000.
281
FEDERAL RESERVE BULLETIN
MAT, 1930
MEMBER BANK BORROWINGS AT FEDERAL RESERVE BANKS
[Monthly averages of weekly figures. In millions of dollars]
Reporting member banks in leading cities
Month or date
New York City
Total
Tc >tal
1929
1930 i
1929
462 i
371 1
247 i
891
893
978
991
951
972
1 100
1,013
974
885
944
755
January
February..
March
April
May
June
July
August
September
October
November
December
Member banks
outside leading
cities i
C)ther leading cities
Total 1
663
659
740
725
661
670
801
717
706
634
655
490
I
i
1929
1930
247
174
81
i
1
!
1929
1930
190
131
166
162
145
165
319
196
166
74
60
80
39
21
1
Chicago
1930
1929
473
208
528
153
574
80
563
516
505
...
482
521
540 : : : .
560
595 . . . . . .
410
69
93
121
46
36
64
47
32
18
38
28
37
1929
1930
7
1
228
234
238
266
290
302
299
296
268
251
289
265
1930
215
197
166
i Includes (in small amounts) discounts by Federal reserve banks for nonmembers: (1) bills discounted for intermediate credit banks and (2)
notes secured by adjusted service certificates discounted for nonmember banks.
FEDERAL RESERVE BANK RATES
OPEN-MARKET RATES
DISCOUNT RATES
RATES IN NEW YORK CITY
[Rates on all classes and maturities of eligible paper]
Date
established
Rate in
effect on
May 3
Federal reserve bank
Boston
New York
Philadelphia. __
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
4
3
4
4
4
4
4
4
4
4
4
4
Prevailing rate o n -
Previous
rate
Feb. 13
May 2
Mar. 20
Mar. 15
Apr. 11
Apr. 12
Feb. 8
Apr. 12
Apr. 15
Feb. 15
Apr. 8
Mar. 21
1-15 days
16-30 days
31-45 days
46-60 days
61-90 days
91-120 days
121-180 days
_
\
j
j
j
j
j
j
90
months! days
434
4H
434
4H
4H
Previous
rate
2%| May 2
2%...do
2M'—do
2%'~.do
2%'—do
2%|—do.__.
3 j Mar. 20
i Reduced from 3 to 2% per cent, effective May 1.
NOTE.—Rates on prime bankers' acceptances. Higher rates may
be charged for other classes of bills.
Prime Prime
com- bankers'
merical accept-
434
BUYING RATES C N ACCEPTANCES
Rate in j Date
effect on J estabM a y 3 j lished
Average yield
on—
Call loans *
Month or week
(Buying rates at the Federal Reserve Bank of New York]
Maturity
Average rate
on—
1929
April
_
May
_
June
July
August
6 -6H
September
6H
October
6H
November
_ 5H-6H
5
December...
1930
January
FebruaryMarch
April
Weekending—
Apr. 5
Apr. 12
Apr. 19
Apr. 26
!
j
| ZH-A
j
|
-4
!
|
i
m
Time
loans,
90
days3
9.46
8.79
7.83
9.41
8.15
8.62
6.10
5.40
4.88
8.91
7.70
9.23
8.23
8.50
6.43
5.44
4.83
4.80
5.09
•4.80
4.55
4.70
«4.58
4.37
3.47
<3.03
3.67
3.67
3.71
3.68
3.72
3.70
3.67
3.45
3.46
4.31
434-5
4.28
ZH-AH 3.56
4 -AH 3.79
4.64
4.32
3.69
4.00
3.36
<2.95
3.00
3.51
3.50
3.40
3.46
4 4.00
4H 3.67
4HJ 3.83
4 -4J4: 3.56
4.40
2.90
2.97
3.06
3.06
3.45
3.46
3.48
3.46
8 -834
734-8
7 -9
3^-4
2JS-3
3
U. S.
Treasury
notes Treasand
ury
Re- certifi- bonds 1
New
cates,
newal
3 to 6
months
4.00
4.00
4.00
1 Stock exchange call loans; new and renewal rates.
»1 Stock exchange 90-day time loans.
3 issues—394, 4, and 4H per cent; yields calculated on basis of last
redemption dates—1956,1954, and 1952.
* Change of issues on which yield is computed.
282
FEDERAL RESERVE BULLETIN
M A Y , 1930
PREVAILING RATES CHARGED CUSTOMERS BY BANKS IN PRINCIPAL CITIES
WEIGHTED AVERAGES
Eight other northern and
eastern cfties
New York City
Twenty-seven southern and
western cities
Month
1927
January
February...
March
April
May
June
July
August
SeptemberOctober
November_.
1928
4.66
4.56
4.56
4.44
4.56
4.59
4.63
4.72
4.63
4.97
4.60
5.09
4.56
5.38
4.41
5.56
4.44
5.63
4.49 ; 5.63
5.56
4.35
December
1930
1929
4.50 ; 5. 63
1927
5.64
5.35
5.22
4.91
5.74
5.73
5.81
5.85
5.88
5.93
5.88
6.05
6.06
6.08
5.86
5. 74
1928
4.99
4.98
4.88
4.90
4.95
4.93
4.90
4.87
4.77
4.79
4.82
4.76
1929
1930
5.87
5.86
5.91
6.00
6.09
6.02
6.08
6.11
6.24
6.25
6.12
5.94
4.73
4.76
4.81
4.91
5.04
5.36
5.57
5.59
5.80
5.80
5.82
5.91
1927
5.88
5.66
5.47
5.22
1928 1 1929 | 1930
5.72 i 5.53
5.71 I! 5.53
5.65
5.54
5.57
5.54
5.59
5.56
5.54 i 5.67
5.52 ! 5.77
5.53
5.80
5.61 : 5.82
5.56
5.87
5.56
5.90
5.60 ! 5.91
5.94
5.96
6.04
6.07
6.10
6.16
6.17
6.22
6.27
6.29
6.29
6.20
I
6.12
6.04
5.98
5.84
NOTE.—Figures relate to rates charged by reporting banks to their own customers as distinguished from open-market rates (which are given
on preceding page). All averages are based on rates reported for three types of customer loans—commercial loans, and demand and time loans
on securities. The method of computing the averages takes into account (a) the relative importance of each of these three types of loans and (6)
the relative importance of each reporting bank, as measured by total loans. In the two group averages the average rate for each city included is
weighted according to the importance of that city in the group, as measured by the loans of all banks.
PREVAILING QUOTATIONS
Loans secured by prime stock- Loans secured by warehouse
exchange collateral
receipts
Prime commercial loans
Federal reserve
bank or branch city
New York City
Febru- M a r c h ,
ary, 1930
1930
5 -5M
February, 1930
April,
1930
March,
1930
April,
1930
5 -6
4>MH
534-6
5 2 -6
5 -SU
6
5)
6
5 -6
434-5
5}4-6
fi
fi -fiU
5H-6
6 -7
5}
5 -634
6
5U-6
534 6
6
51<S-fi
6 -7
February, 1930
March,
1930
5^-6
5
6 4 -634
6
6
6
April,
1930
5
Interbank loans
February, 1930
5
March,
1930
April,
1930
4H-5H
Northern and Eastern Cities
5 -6
5
6
6
534-6
6 2 -8 2
6
6 -7
534-6
6 -634
6
6
5)4-6
6
5
5
6
6
6
8*
6 2
6
-534
-7
-8
6
-6H
^8
534-534
6
5 -534
534-6
6 -8
6
6 -634
5 -6
6 2
6
fi
6
6
2
6 -7
51
6
6
534-6 v2
8
5^-6
6 -7
8
6 -634
6 -8
6 -8
6 -7
6 -8
6
6
6
4%-6
6
6
6>i-i"
-fiU
6
6 -7
6 -7
6 -7
534-6
6 -7
6
6
8
5M-6
6 -634
8
6 -6M
6 -7
6 -8
6
6 -8
6
1
$*?6
534-6
8
5M6
6 -78
6 -7
6 -8
6 -8
6 -7
6 -8
2
6 -7 "
6 —634
1
6 -634
6 -634
6 -%y2
6 -7
6M-7
fii
fi
5}i-6
6
6
6
6 -634
6 -7
6 -7
6 -634
6 -8
6 -8
534-6
6 -7
6
4
6 -84
2
6' -8
6 -8
6 -634
6
8
6 sy2
6 -8
6
6 2 -7
7
7
6
6
6
5}
6 -8
6 -8
53^ 6
6 -634
534-6
6 -8
6
5'
6 8
53>i-6
2
fi -8
-8
6
-634
8
6
-8
6
-7
-7
7
fi1^-7
6
6
6 -7
6 -8
5M-6
5
6
5>^-6
6
2
6
5}i-6
5 1 f-fi
51
6
fi
6
6
51 -4-fi
£-6H
2
6 -8
6
6 2-8
534-6
6 -8
6 -8
6
534-6
8
6
6 -8
6
6H-7
6 - 77
634-7
7
fi
6
5^
fi
COCC
8
6
-7
-7
6
4-G
6
6
6 -7
6 -634
5 -6
5 -5V}
COCO
4
fi
6
fi
6 -634
CO
5 -6
6 -6l/2
6
6 -8
5 -6
6
5 -6
434-534
5 -6
5^-634
534-634
5 -5H
2
6
6 -634
6
6
5>i-6
6
5
6 -6y2
6
6
6
5% 4
6
5^-6
534-7
6
5)|-6
6
6
CO COCC
5H-6H
5 -6
5V{-fi
5^
6 -flU
6 -8
534-6
6
534-634
5 -51/26 -fiV£
6
CC
6
6
5 -534
CO
5H-6H
6 -8
i
fi
514-fi
OS
6
1-6
5 2 -6 2
4H-534
OS
534 "*6
4%-5
534-6
5 -5M
53^-6
OS
5 -6
2
OSOS
4
COCO
Richmond
Baltimore
Charlotte
Atlanta
Birmingham
Jacksonville
.
Nashville New Orleans
St. Louis
Little Rock - Louisville
Minneapolis
Helena
. .
Kansas City
Denver
-Oklahoma City
Omaha
Dallas
El Paso
Houston
San Antonio.... >
San Francisco . Los Angeles. . ._
Portland..
Salt Lake City
Seattle
Spokane
5 -5K
OS OS
Boston
Buffalo
_ .
Philadelphia
Pittsburgh . . Cleveland
Cincinnati
Detroit
Chicago
Southern and Western Cities
534-6
5^-6
6 -7
6
6
6 -8
534-6 i
6
6 -634
534-6
534-6
6
5 -5H
6 -634
6
6
6
6
434-534
6
5 -&A
5 -6
534-6
5^
5 -6
5 -6
6
6
534-6
6
534-6
5 -6
5 -6
6
5 -6
534-6
6 -8
534-6
6 -634
6
6
6
6
5 -5H
6
6
6
6
6
NOTE.—Rates shown are those at which the bulk of the loans of each class were made by representative banks during week ending 15th of
month. Rates from about 200 banks with loans exceeding $8,000,000,000; reporting banks are usually the larger banks in their respective eities.
Revised.
MAY,
283
FEDERAL RESERVE BULLETIN
1930
BROKERS' LOANS
MEMBER BANK CREDIT
REPORTING MEMBER BANKS
[In millions of dollars. Monthly data are averages of weekly figures]
REPORTED BY THE NEW YORK STOCK EXCHANGE
[Net borrowings on demand and on time. In millions of dollars]
Loans and investments
Loans
Month or date
Total !i
Total:
1929—Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
1930—Jan
Feb
Mar
Onse-i All
Total icurities!
other
22,472 I 16, 491
BorDue rowing
to
Total banks F .atR.
investbanks
ments
7,716
7, 578!
7, 654!
8,098|
8, 249!
7, 968
7, 794|
7,671
7,964
8,911 5,981
9,073 5,924
9, 059 5,836
9,149 5,751
9,234 5,529
9,390 5,496
9,543 5,449
9,608 5,418
9,792 5,623
9,476 5,567
9,027 5,548
8,871 5,541
8,781 5,607
2,861
2,709
2,545
2,532
2,738
2,604
2,718
2, 916
3, 008
2,886
2,828
2,818
2,898
740
725
661
670
801
717
706
634
655
490
247
174
81
7, 580
7,392
7,218
7,332
22,388 j |
22,113!
22, 231
22,479
22,465j
22, 646!
23,124
23, 663i
23,012'
22,368!:
22, 083
22, 352;
16,464
16, 277
16,480!
16, 950!
16, 969
17,197
17, 706!
18, 0411
17, 4441
16,821!
16, 542;
16, 746!
Mar. 26..
Apr. 2_._
Apr. 9 —
Apr. 16..
Apr. 23..
Apr. 3 0 -
22,563;
22, 633!!
22,560!
22, 592
22,746:
22,755!
16,885;
16,9131
16,829'
16, 845
16,955!
16,964.1
8,183
8,244
8,163
8,238
8, 326
8,381
8,702
8,609
8, 666
8, 607
8, 629
8,583
5,6'
5, 719
5,731
5, 74'
5,791
5,791
2,922
3,061
2, 954
2, 961
2,797
2, 930
47
82
75
65
58
74
New York City:
1929—June
July
Aug
Sept
Oct
Nov
Dec
1930—Jan
Feb
_
Mar
7, 2811
7,496 !
7,407
7,507
7,837
8, 349 :
8,001h
7, 664 i
7,493!
7,649
5,468
5,804
5, 688
5,803
6,108;
6, 380i
6,02ll|
5, 705 i
5, 584 I
5, 720; I
2,749|
3,045
2,845
2,892
3,191
3, 340;
3,U2l
2, 9451
2,909;
3,115
2,719
2,758
2,843
2,911
2,916
3,040
2,9091
2, 760
2,675
2, 605
1,812
1,692
1,720
1,704
1,729
1,969
1,981
1,959
1,909
1,929
796
935
827
887
1,023
1,132
980
931
902
952
165
319
196
166
74
60
80
39
21
1
7,756
5,810:
5,894i
5,780;
5,785,
5,912
5, 969;
3,280
3,393
3,284
3, 316!
3,409!
2, 530
2,501
2,496
2,468
2,503
2,458
1,946
1,956
1,944
1,953
1,973
1,977
983
1,039
975
975
891
1,030
15
31
16
10
12
M a r . 26...I
Apr.
Apr.
Apr.
Apr.
Apr.
2.-_J
9
|
16—i
23 I
30.._
7,850
7,724
7,738
7,885
7,94"
O t h e r leading
cities:
1929—June
I 14,950 11,012,
July
14,983 11,146|
Aug.
I 15,058 11, 281j
Sept
_j 15,139 11,3941
1 is"
15, 288 11, 598!
Oct..
Nov
! 15,314 11, 661
!
Dec
15,011 11,424
1930—Jan
, 14,705 11,115
Feb
14,590 10, 9581
Mar
14,703, 11,026
Mar. 26—
Apr. 2
Apr. 9
Apr. 16—
Apr. 23—
Apr. 30..
Chicago: 1
1929—Jan
Feb
Mar
Apr
May
June
July___
Aug...
Sept—
Oct
Nov
Dec___.
1930—Jan
Feb..-.
Mar
1
14,807
14, 783
14,836
14,854
14,861;
14,809
11,075;
11,019!
11,049!
11,060!
11, 044:
10, 995
1,934
1,953
1,984
1,904
1,879
1,898
1,881
1,932
1,920
1,986
1,977
1,909
1,829
1,801
1,850
1,527
1,553!
1, 582:
1, 512!
1, 4991
1, 518
1, 503
1, 559;
1, 558'
1,628
1, 614
1, 545
1,461:
1,442!
1,487
3,511
4,582! 6,430
4, 670! 6,476
4,734| 6,547
4, 762! 6,632|
4,906i 6,692|
4,909 : 6,752
4,856 6,568
4,849: 6,267
4, 762 6,196.
4,850; 6,176 i
3,938
3,83^
3,776
3,745
3,690
3,654
3,587
3,589
3,632
3,677
1,736
1, 803i
1, 777j
1,830
1,893|
1,8751
1,906
1, 897
1,916
1,'946
482
521
540
561
594
410
208
152
80
6,172 ;
6,168
6,171
6,139
6,126
6,125
3,732
3,763
3,787
3,794
3,817
3,814
1,938
2,021
1,979|
1,986;
1,905
1,900
47
67
45
49
49
62
407
400
402
392
380
381
378
373
362
358
363
364
367
359
363
329
323
342
3201
307!
314!
310'
308!
313
309
3031
310!
306
311
334
93
121
46
36
64
47
32
18
38
28
37
7
1
4,903!
4,851
4,878 1
4,921:
4,918;
4,870j
817j
843,
883|
837i
825i
837
833
872
859
923i
922
885
851
710
710
700
676
675
681
670
687
699
705
693
660
610
593
New series; for explanation see note on page 277.
From New
From private
York banks banks, brokers,
and trust com- foreign banking
agencies, etc.
panies
Total
End of month
January
February
March
April
May
June
July
August.
September
October
November
December
1929
1930
1929
1930
6,735
6,679
6,804
6,775
6,665
7,071
7,474
7,882
8,549
6,109
4,017
3,990
3,985
4,168
4,656
5,664
5,619
5,713
5,580
5,482
5,797
6,154
6,492
7,077
5,313
3,432
3,370
3,368
3,529
4,026
1 5,063
1930
1929
4,409
616
1,071
1,060
1,091
1,194
1,183
' 1,275
-1,320
1,390
1,472
796
585
620
631
654
1 Call loans, $4,363,000,000; time loans, $700,000,000. • Corrected.
MADE BY REPORTING MEMBER BANKS IN N. Y. CITY
[In millions of dollars. Monthly data are averages of weekly figures]
]For banks
Month or date
1929—January
February. _.
March
April
May
June__
July
August
September..
October
November..
December..
1930—January
February—.
March
Apr. 2.
Apr. 9_
Apr
Apr
Apr.
For
others
Total
Total
5,408
5,555
5,679
5,477
5,491
5,383
5,841
6,069
6,540
6,498
4,023
3,391
3,351
3,459
3 3, 741
3,968
3,994
4,124
4,217
4,274 1
2,974
2,899
2,800
2,583
2,526
2,443
2,849
2,778
2,898
2,896
1,869
1,601
1,706
1,913
2,310
2,434
2,656
2,879
2,893
2,965
2,940
2,992
3,290
3,642
3,602
2,154
1,790
1,644
1,546
1,430
2,651
2,655 :
2,733
2,781
2,878
1,316
1,339
1,392
1,436
1, 397
1 Weekly reporting member banks in New York City.
1 Member and nonmember banks outside New York City (domestio
banks only); includes unknown amount for customers of these banks.
3 Call loans, $3,300,000,000; time loans, $440,000,000.
ACCEPTANCES AND COMMERCIAL PAPER
[In millions of dollars]
End of month
Bankers' acceptances outstanding
Commercial paper outstanding
1927
774
January
785
February _ _
809
March
811
April
775
May
751
June
741
July
782
August
864
September
October
975
November
1,029
December
_ 1,081
1928
1929
1930
1927
1928
1929
1,058
1,056
1,085
1,071
1,041
1,026
978
952
1,004
1,123
1,200
1,284
j.279
L, 228
,205
,111
1L, 107
,113
L, 127
1,201
L, 272
1,541
L.658
1,732
1,693
1,624
1,539
551
577
606
599
582
579
569
591
600
611
603
555
577
567
570
571
541
503
483
458
430
427
421
383
407
411
387
351
304
274
265
267
265
285
316
334
1930
404
457
529
Figures for acceptances as compiled by American Acceptance Council;
for commercial paper as reported by about 25 dealers.
284
FEDERAL RESERVE BULLETIN
MAY,
1930
SECURITY PRICES, SECURITY ISSUES, AND BUILDING CONTRACTS
SECURITY PRICES
[Index numbers of Standard Statistics Co. Monthly data are averages of weekly figures]
Common stocks (1926=100)
Selected groups of industrial issues
PreBonds* ferred 2
Indus- Rail- Public
Cop- Elec- MaBuildstocks Total trial
Auto- ing Chain Chem- per trical chinissues roads utility mobile
Oil
and equipequip- store ical
brass ment ery
ment
Month or date
Number of issues.
1929—-January
February. _.
March
April
May
-_.
June
July.
August
A
September
October
November
December
1930—January
February
March
April
Apr.3
Apr. 10
Apr. 17
Apr. 24
Apr. 30
60
...
|
j
!
!
i
!
!
!
337
193
192
196
193
193
191
203
210
216
194
145
147
149
156
163
171
170
174
173
170
167
20
129.2
128.8
128.7
128.6
128.6
127.7
127.0
126.3
126.8
126.4
123.9
126.4
126.5
126.9
127.8
128.2
128.3
128.5
128.0
128.1
128.0
97.0
96.3
95.8
95.8
95.7
95.3
95.2
95.0
94.8
95.1
95.7
96.5
96.5
96.4
97.8
97.9
98.2
97.9
97.8
97.6
97.8
33
142"
142
140
138
139
145
160
165
168
157
135
136
137
143
143
142
146
144
142
141
136
34
193
202
204
201
212
233
273
304
321
277
195
201
209
231
242
264
258
267
266
264
263
281
277
284
278
261
242
241
241
241
196
134
134
135
145
155
162
162
174
166
158
151
13
164
163
160
157
158
158
169
165
172
152
114
113
117
125
125
127
130
132
129
126
120
17
159
153
150
149
148
145
148
149
155
139
104
106
102
100
100
101
101
101
102
101
100
240
254
266
282
281
288
293
278
268
2
i Average price of 60 high-grade bonds adjusted for differences in coupon rate and maturity.
DOMESTIC CAPITAL ISSUES
[In millions of dollars. Source: Commercial and Financial Chronicle]
4_
257
258
257
255
282
308
360
405
399
345
227
241
265
307
323
359
349
370
373
356
347
262
286
329
294
280
271
281
289
294
259
204
196
193
193
193
174
198
185
177
161
151
223
231
232
235
248
270
315
320
338
305
214
228
10
168
174
167
163
161
159
172
177
191
172
135
143
146
154
161
173
166
171
176
179
173
Class of issue
New
Total
. ..
Corporate issues
Bonds and notes—
Long term
Short term
Stocks
Fftrm-lnftn issues
Municipal issues
Total new and refunding
Refunding
1930
New
15.5 1,514.4
515.9
10.5 1,028.1
87.4
4.6
.4 398.9
22.0
2.7 303.7
367.9
25.0
123.0
20.0
122.1
676.1
98.3 2,227.3
76.0 625.2
37.6
21.0
1.3 1,564.5
5.5
March, 1930
Government
325.8
321.2
185.0
8.0
128.2
4.6
Total
New issues
Europe.
_.
Total Government and
corporate
Gov- Cor- Gov- Corernernment porate ment porate
42.8
107.6
107.9
201.4
53.8
198.5
38 8
22.9
107 6
58.9
22.9
201.4
34.3
47.2
23.6
196.5
20.8
2 8
16.1
8.5
1.5
10.0
49.0
22.4
1.8
20.4
1.5
32.7
2.2
6.5
134.4
2.0
Canada and Newfound29
land
3.0
Latin America .
U. S. insular possessions.
10.0
Miscellaneous
4.0
Refunding issues
2/7158.9
1929
1930
Class of issue
235.8
1,943.8
188 :
212
238 ;
244 :
217 !
169
170
177
188
192
197
200
201
200
195
189
January-March
18.2 1,840.1 103.8 2,463.1
658.0
179 i
187 ,
191
185 ;
20 high-grade industrials; average price.
Refunding
New
30
144
138
136
132
127
122
120
118
114
103
78
77
78
85
85
83
85
85
84
82
80
174 i
[In millions of dollars]
1929
Refunding
16
137
133
141
148
146
144
149
158
167
161
131
132
129
128
141
156
152
156
153
158
159
FOREIGN CAPITAL ISSUES
Jranuary-March l
March, 1930
Textile
Steel
104.8
150.4
144.8
252.3
309.3
BUILDING CONTRACTS AWARDED, BY TYPES OF BUILDING
[Value of contracts in millions of dollars]
Total
1929
January
.
February
March
Year to date
April
May
_
June
July
August
September
October
November
December
1930
324.0
410.0
361.3
317.1
484.8
456.1
1,256.1 1,097.1
642.1
587.8
545.9
652.4
488.9
445.4
445.6
391.0
316.4
Residential
Industrial
Commercial
1929
1930
1929
1930
1929
138.1
129.5
197.2
464.7
256.8
192.0
189.8
199.9
146.1
118.4
137. 7
113.5
114.0
66.6
74.8
101.5
242.9
63.1
56.1
55.8
175.0
68.2
80.8
70.0
66.6
75.3
52.6
60.9
39.7
67.4
38.3
33.5
74.3
146.1
100.4
54.1
68.3
72.9
75.6
77.0
204.0
244.2
78.0
86.5
80.9 ._
91.3
72.0
70.9
67.7
101.8
33.4
1930
Public works and
public utilities
1929
1930
66.5
57.6
71.5
195.6
152.1
139.4
120.8
194.5
119.3
117.2
85.1
72.4
51.8
112.1
85.8
105.3
303.2
Educational
1929
17.7
22.6
37.5
77.8
29.9
38 2
43.4
48.0
32.3
29.8
36 9
25.7
19.8
1930
19.0
21.2
35.4
75.6
All other
1929
24.1
27.3
47.2
98.6
57.1
50 9
40.9
52.0
43 9
50.4
57 3
38 0
29.9
Figures for building contracts awarded are fer 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation.
1930
34.0
28.8
62.6
125.4
MAY,
285
FEDEEAL RESERVE BULLETIN
1930
PRODUCTION, EMPLOYMENT, CAR LOADINGS, AND PRICES
[Index numbers; 1923-1925 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variations]
Industrial production*
I
Year and month
Total
Manufactures
Minerals
UnadAd- j Unad- : Adjusted justed I justed justed
1919
1920
1921
1922
1923
1921
1925
192G
1927
1928
1929
!
!
i
I
i
;
:
j
1926
January
February..
March
April
May
June
July
August
September
October
November
December
I!
1927
|
January
February
March
April
May
June
July
August
September
October
November
December
;
j
i
;
|
i
|
'
.
;
192S
January
February
March
April
May
June
July
August
September
October
November
December
I
•
'
:
1929
January
February
March
April
May
June
July
August
September
October
November
December
',
i
:
!
January
February
March
1930
:
,
>
!
i
i
;
!
!
!
j
|
83
87
67
85
101
95
104
108
106
111
118
Unad- | Adjusted | justed
77
89
70
74
105
96
99
108
107
106
115
84 :
87 :
67
101
94
105
108
106
111
119
:
,
'
!
Build- FacFacing con- tory
tracts
em- . tory
pay
award- ploy- | rolls
ed
ment
107
108
82
90
104
96
100
101
99
97
100
105
108
109
108
107
106
103
109
113
114
110
101
106
106
107
107
106
108
107
110
112
111
108
106
108
111
111
110
108
106
102
108
112
112
108
99
109
108
108
107
106
108
107
111
112
110
106
103
90
92
98
96
102
109
110
115
118
124
123
113
92
95
104
107
104
106
107
109
110
114
118
119
Ill
106
146
139
134
133
:26
148
137
126
119
131
101
102
103
102
101
101
99
101
103
103
101
100
106
110
113
110
112
107
102
105
106
105
101
96
106
108
111
109
111
108
106
107
105
102
99
100
I
!
!
I
i
\
|
!
104
110
113
112
113
107
102
104
106
104
101
95
105
107
109
109
111
109
107
107
105
102
99
99
112
113
111
96
108
108
103
111
111
112
105
97
116
117
118
107
109
105
99
106
104
105
101
103
94
96
151
147
135
154
130
135
127
137
114
116
100
100
100
99
99
98
99
101
99
97
95
105
112
112
110
110
108
105
111
116
118
115
108
106 I
109 !
110
109
109
109
110
112
114
115
113
115
106
114
115
113
111
108
106
110
116
117
115
109
106
110
111
110
109
Ill
111
113
116
115
113
115
100
99
98
94
104
104
103
111
115
122
117
106
103
103
103
105
105
101
101
105
107
114
113
112
104
113
144
157
163
158
142
126
143
145
115
105
,
116 j
120
121
123
125
125
119
121 !
123
120
108
95
H 7 ;i
117 !l|
118 |
122 i|
123 il
127 |i
124 j|
123 i
122 H
117 jj
106
116
120
125
127
127
126
119
121
122
118
107
92
117
116
120
123
125
129
126
124
122
117
105
96
113
116
101
104
116
116
118
121
127
127
114
110
118
120
107
115
116
113
114
114
118
118
110
116
100
88
118
156
143
133
159
119
108
109
95
77
97
100
101
102
102
101
101
102
103
102
98
95
102
110
102 !
106 |
*105 I
107
104
112
' 109
79
77
111
93
[
j 103
j 109
I » 106
103
107
*104
j
I
!
I
i
I
; Merchandise in
i less-than-carload lotsJ
Total
Unad- Unad- Unad- Unad- i Adjusted justed justed justed j justed
64
63
57
81 i
84 j
95 !
122 '
130
128 |
135 ;
117 !
96
100
100
99
98
118
77
81
103
96
101
104
102
102
107
'
:
1
!
I
;
:
I
!
j
!
!
I Commodity
: pricesf
Freight car loadings*
84 ;.
91 L
Unad- ; Adjusted justed
139
154
98
97
101
98
104
100
95
98
97
72
87 •
103
107
103
103
106
93
96 !
99 !
104
107
105 ;
104 :
104
i
!
;
!
102
104
104
107
107
109
108
108
109
109
109
107
101
106
107
105
104
104
99
104
105
108
105
104
94
96
99
98
106
110
111
113
122
123
113
99
105
106
105
104
102
99
102
102
103
98
97
100
102
100
105
106
104
109
116
114
101
105
109
108
108
106
104
101
104
104
101
97
95
96
101
103
100
101
101
98
103
104
107
104
104
92
94
97
96
104
103
105
109
119
119
108
95
100
102
102
104
105
102
102
104
106
106
104
103
101
108
111
111
111
109
105
109
111
110
102
95
99
98
102
110
109
111
114
121
118
102
90
104
107
103
111
111
108
108
109
108
104
99
97
;
i
I
i
:
!
i
102
107
107 ,
108 ;
108 :
1 0 6 '•
107 '
112 i
112 '
110
103
100
104
108
108
106
105
104
105
110
109
106
\
i
i
:
:
i
!
i
i
!
!
101 :
105 !
105 :
106 |
105 !
104 |
104 !
109 '
109.;
106 ;
100 I
97
ioi
106
107
108
105
105
106
110
109
106
96
94
98
101
;
;
I
i
I
All
com- Farm
mod- prodities ucts
107
106
106
106
105
107
106
106
107
107
108
108
104
102
100
100
101
ioi
ioo
99
100
99
98
98
108
109
107
107
104
104
104
104
104
105
104
103
97
96
95
94
94
94
94
95
97
97
97
97
;
i
i
!
i
;
:
;
;
'
'
j 107
; 105
102
j
]
103
i 102
101
;
! 99
' 97
i 99
i 98
I 95
! 95
i
!
I
!
;
97
95
94
94
96
97
98
102
106
105
104
104
106
105
104
104
104
103
104
103
104
105
104
105
106
105
104
108
110
107
107
99 I 107
100 | 109
104
102
104
105
105
105
106
108
104
105
105
105
105
104
101
106
105
107
105
102
103
108
107
107
104
101
102
102
102
100
101
98
95
* Average per working-day, except for annual indexes.
t Wholesale price index of Bureau of Labor Statistics; 1926=100. Index numbers for all major groups of commodities are given on p . 286.
v Preliminary.
r
Revised.
i Note that this series has been substituted for more comprehensive series.
158
151
88
94
99
100
110
100
99
106
105
286
FEDERAL RESERVE BULLETIN
M A T , 1930
INDUSTRIAL PRODUCTION, BY INDUSTRIES
[Index numbers of the Federal Reserve Board. Adjusted for seasonal variations. 1923-1925 average=100]
1929
Jan.
TRANSPORTATION
126
117
114
118
116
118
99
105
93
89
135
144
119
103
98
102
90
95
109
100
129
122
117
94
124
109
112
134
101
114
141
136
114
128
113
115
97
101
93
91
132
135
126
101
97
104
87
87
106
104
108
123
116
90
125
114
104
135
103
114
150
137
150
15
48
95
88
94
Mar.
Apr.
May
145
126
147
June
1930
July
Nov.
Dec.
124
118
124
100
107
99
118
117
101
109
108
104
89
94
82
88
144
153
128
90
95
90
96
90
77
80
74
75
140
148
124
Aug.
Sept.
143
128
144
139
121
141
116
115
98
106
89
90
148
158
128
98
101
106
91
99
126
99
84
158
130
96
97
104
86
88
125
91
99
155
127
158
121
122
101
107
93
95
149
159
128
151
131
153
118
119
95
109
85
83
146
155
127
96
90
90
87
83
117
109
102
96
94
96
88
90
124
100
94
120
119
101
114
86
90
150
161
130
99
93
94
88
85
126
103
112
Oct.
116
117
97
100
92
94
144
152
128
135
117
137
120
119
101
106
96
95
149
159
129
96
88
86
90
97
105
104
111
102
99
100
93
101
119
107
111
121
125
102
109
92
98
138
142
130
97
92
94
86
91
125
112
90
125
119
92
132
118
102
139
96
114
157
138
124
119
93
135
118
103
135
91
115
151
132
127
122
93
134
119
109
143
92
120
150
137
128
120
92
133
120
107
136
100
118
180
142
124
120
91
138
122
101
131
103
117
152
131
125
119
95
134
118
101
129
101
120
169
135
129
120
94
143
119
101
125
100
120
178
148
126
120
94
145
119
96
128
91
118
156
139
148
17
21
98
89
92
159
28
49
99
89
85
153
53
62
97
94
89
148
55
93
101
92
84
162
46
129
113
106
97
142
59
155
114
105
86
143
55
175
116
103
93
133
49
101
116
105
94
73
67
117
100
67
73
120
104
73
86
112
105
76
93
123
100
78
96
116
106
74
104
153
117
75
111
158
120
80
108
136
125
126
141
124
132
137
115
99
110
111
14ft
144
123
132
134
129
140
128
137
147
143
137
145
145
116
1U
126
130
137
118
140
127
133
123
159
186
93
134
123
137
148
153
113
131
86
167
160
187
97
138
116
139
152
157
116
129
95
159
160
187
94
136
123
142
165
194
93
141
125
145
152
157
118
126
93
153
161
166
126
142
109
173
168
196
103
140
126
149
158
163
121
142
101
178
170
199
110
140
126
151
162
167
125
139
ICO
173
104
110
137
110
110
137
90
77
133
102
95
132
129
100
111
94
136
106
100
91
135
112
112
93
141
116
125
103
104
86
134
143
139
120
122
93
102
76
135
126
124
122
112
94
Jan.
Feb.
118
101
120
99
94
76
81
73
70
145
149
138
Mar.
112
102
114
98
94
71
76
65
66
150
155
140
122
118
92
139
120
97
129
85
113
144
133
95
91
96
81
91
113
94
110
118
113
93
139
116
95
107
91
116
125
134
99
94
99
103
102
78
85
72
69
141
145
133
96
89
89
88
96
116
92
127
'121
117
95
140
' 118
93
'123
96
115
147
131
113
57
75
113
108
94
81
45
69
105
103
95
49
32
97
93
98
93
102
39
169
'96
93
99
103
40
127
95
93
100
109
48
87
102
144
123
97
99
147
117
88
88
145
108
82
70
151
90
76
68
129
97
66
75
127
97
79
80
136
97
122
168
122
126
121
118
174
113
109
117
114
122
106
110
111
121
125
126
109
149
119
126
113
108
124
126
127
131
105
110
99
'162
103
92
104
103
117
171
205
95
138
123
151
141
146
105
131
97
160
176
209
108
142
131
152
119
123
87
133
99
163
173
208
95
141
123
148
116
120
90
136
100
168
178
215
103
142
121
146
114
117
87
135
99
168
171
209
93
136
110
139
94
97
74
130
96
160
166
201
90
132
115
131
80
82
70
133
83
173
163
199
89
121
120
132
'106
109
85
131
84
167
168
204
96
125
126
136
'107
110
85
133
92
167
168
204
99
117
130
135
105
108
84
1?8
87
162
102
72
143
119
122
125
114
88
98
81
145
121
119
127
107
91
103
106
140
121
125
124
119
89
102
116
140
107
123
112
115
94
98
92
131
98
118
105
114
114
103
121
132
99
106
132
91
102
135
81
69
125
116
102
105
87
101
103
92
88
95
99
106
98
88
96
108
»93
£eoco
132
116
134
00 OS I-
Manufactures
IRON AND STEEL
Pit, iron
.
Steel ingots
.
_.
TEXTILES,
Cotton consumption
Wool
Consumption
Machinery activity 1
Carpet, rug loom activity1.
Silk
Deliveries .
...
L o o m activity*
FOOD PRODUCTS
Slaughtering, meat packing_.
Hogs
Cattle
Calves
Sheep .
Flour
Sugar meltings
PAPER AND PRINTING
Wood pulp and paper
Newsprint
Book DaDpr
Fine paper
Wippping paper
Paper board
WTood pulp, mechanical..
Wood pulp, chemical
Paper boxes
_
Newsprint consumption
Feb.
96
95
101
82
88
125
92
106
U
92
93
86
92
132
97
93
p
J21
97
Ha
92
'137
111
119
151
137
85
80
88
92
141
90
91
125
153
130
EOUIPMENT:
Automobiles
Locomotives
Shipbuilding
LEATHER AND PRODUCTS
Tanning
Sole leather 1
Upper leatherCattle. .._
Calf and kip..
Goat and kid..
Boots and shoes
CEMENT AND GLASS:
Cement
uiass, plate
N O N F E R R O U S METAIS1
Copper (.smelter)
Tin ^deliveries) 1
FUELS, M A N U F A C T U R E D :
Petroleum refining
Gasoline i____
Kerosene _
Fuel oil i
Lubricating oil i._
Coke (by-product)
B U B B E R TIRES A N D TUBES
Tires, pneumatic.
Inner tubes..
T O B A C C O PRODUCTS
Cigars
Cigarettes
Minerals
COAL:
Bituminous
Anthracite
Petroleum, crude
Iron ore shipments
Copper (mined)
Zinc
Lead....
Silver
"
1fi4
179
97
98
96
1
Without seasonal adjustment.
> Includes also lead and zinc; see " Minerals."
* Preliminary.
' Revised.
NOTE.—The combined index of industrial production is computed from figures for 58 statistical series, 50 of manufactures, and 8 of minerals,
most of which are shown in this table. Adjustments have been made in the different industries for the varying number of working days in each
month and for customary seasonal variations, and the individual products and industries have been weighted in accordance with their relative
importance. The sources of data and methods of construction were described in the BULLETIN for February and March, 1927.
MAY,
287
FEDERAL RESERVE BULLETIN
1930
FACTORY EMPLOYMENT AND PAY ROLLS
INDEXES OF FACTORY EMPLOYMENT AND PAY ROLLS
[Without seasonal adjustment. Monthly average 1923-1925=100]
no
FAC1
( 1923- 25=100
Factory employment
Month
Factory pay rolls
1927
1928
1929
1930
1927
1928
January
98.1
February
99.7
March
100.4
April
99.8
May
99.1
99.0
June _.
July
98.0
99.2
August
September... 100.6
October
99.3
November
9G.9
December...
95 5
Annual index. 98.3
94.2
95.7
96.6
96.0
95.7
96. 2
95.7
98.3
100.3
100.2
98.8
98. 1
97.2
97.4
99.7
101.3
101.8
101.6
101.2
100.7
102.0
103.4
102.1
98.2
94.8
100.4
92.9 ! 98.6
92.9 ! 104.8
92.7 : 108.3
105.0
104.3
102.5
98.6
i 102.2
101.9
102.5
98.5
!
99.4
102.0
95.7
101.1
102.5
100.3
100.8
100 9
98.3
102.5
104.2
107.5
103. 6
104.2
101.8
1929
1930
100.7 94.2
108.0 97.4
110.8 98.0
111.3
111.2
109 2
104 8
109.4
110.5
110.0 ; ; ; ; ;
102.0
98.7
107.2
ft
100
PERCENT
110
"ORYE MPL0Y1MENT
)
k
100
;
\
r-
\
\
;
90
j
1
— . Adjusted for Seasonal Variations \
Without Seasonal Adjustment
i
90
|
80
1923
1924 1925 1926 1927 1928
Seasonal adjustment provisional
1929
1930
FACTORY EMPLOYMENT: INDEXES BY GROUPS
Paper
and
printing
Iron
and
steel
Month
1928—November.
December..
1929—January
February..
March
April
May
June
July
August
September.
October
November.
December..
1930—January
February...
March
97.7
97.1
97.1
98.3
99.3
99.7
100.7
100.8
99.8
101. 0
101.0
99.4
97.0
92.2
91.7
93.5
92. S
Lumber
and
products
90.5
88.2
85.5
85.8
86.6
88.2
89.2
90.0
90.5
92.2
91.8
90.1
86.7
81.6
76.8
75.0
75.0
106.7
110.4
113.8
116.7
119.1
120.8
121.5
119.4
119.5
118.7
115.0
112.1
109.9
109.3
108.5
Transportation
equipment
Chemicals
Leather CeRubber
ment, NTonferand
clay,
rous
prodAutoand
metals
Group mobiles ucts
Group
glass
refining;
90.2
89.9
94.0
99.0
100.5
101.7
101.5
97.6
96.4
95.5
94.8
90.2
82.9
81.3
83.2
83.9
83.2
109.1
107.7
118.3
129. 5
131.1
131.4
130.0
120.6
117.8
115.0
113.1
101.3
83.7
79.6
85.7
89.7
91.0
88.6
91.9
94.1
92.7
90.6
90.3
89.4
94.6
98.1
99.5
99.3
94.4
90.0
91.4
92.4
91.5
91.8
89.5
84.3
84.5
86.8
90.5
93.1
93.8
91.6
93.8
93.6
91.9
88.9
82.3
74.7
75.3
78.4
102.2
102.4
102.4
106.1
107.9
107.7
105.3
102.9
100.5
99.8
98.6
98.5
93.6
89.9
85.9
84.6
84.3
104. 0 i 109.8
104.7 : 109.6 :
112.2 i
107.6
104.0
112.3 '
110.9
106.7
113.3 '
115.5
109.2
114.3 i
119.0
111.9
115.3
110.3
114.4
115.0 i
107.9
116.4
114.2 '
108.9
120.0
111.5
111.2
121.9
108.3 i
114.5
124.0
102.7 i
116.1
124.6
91.2
113.8
123. 7
89.2 '
111.8
120.9
!
89.7 '
110.8 ! 120.8
120.9 !:
110.2
113.5
112.5
107.3
107.8
Tobacco
products
98.9
95.7
84.1
92.0
92.0
91.3
90.3
91.4
90.5
93.0
93.7
95.0
96.1
80.2
84.2
88.9
89. 6
FACTORY PAY ROLLS: INDEXES BY GROUPS
Month
1928—November.
December..
1929—January
February..
March
April
May
June
July
August
September.
October
November.
December.
1930—January....
February,.
March
Iron
and
steel
Ma-
105.1 i
103.3 |
101.3
107.2
108.5
110.5
111.6 I
109.9 I
103.5 i
109.3 I
108.9 j
107.9 !
100. 0 i
93.5 i
90.5 j
98. 1 '
yr. l ;
110.3 i
114.0 ;
112.3 j i
120.7
126.5 j
129.5 i
131.9 :
131.6 i
128.2 i
127.5 '
127.9 •
129.0 ;
121.6
119.9 !
113.8
115. 2
115.1 i
Food
Textiles products
96.7
104.9 i
100.3
106.3 I
97.0
102.2 !
103.6
102. 5
108.8 I 101.2
103.2
100.4
99.3
103.1
97.8
105.6
90.4
105.6
97.4
105.0
103.0
108.1
104.8
108.8
96.2
105.5
93.8
105.5
92.2
J02.5
94.1
101.6
99. 7
96. 6
Paper
and
printing
111.7
113. 7
111.4
113.0
114.9
113.3
114.3
113.6
111.4
112.8 |
116.3 i
117.8 i
117.2
118.2 :
114.9 I
114.9 i
115.0 !
Lumber
and
)roducts
94.4
90.8
83.4
86.5
88.4
90.9
92.8
92.2
93.5
94.7
96.6
96. 8
89.2
82 7
72.8
72.6
74.6
i Transportation1,
j Chemicals
j
Ce! Leather ment,
ToNonfer-i
Rubber bacco
and
clay,
prodprodprodPetroAutometals
and
ucts
Group mobiles
! Group • leum ! u c t s
ucts
glass
refining;
96.1
95.8
93.6
111.4
113.9
117.0
116.0
107.9
97.1
106.8
103.3
99.8
89.4
85.6
80.9
89.8
90.6
114.5
112.4
114.5
147.4
148.2
152.0
147.1
130.9
110.2
128.0
120.3
108.0
84.3
72.9
74.0
92.7
97.3
80.1
86.0
90.2
94.5
91.4
87.9
88.1
89.8
97.8
105.0
104.3
100.0
83.9
84.1
85.4
86.2
85.2
90.7
88.4
79.0
81.0
84.8
89.3
91.8
92.5
86.1
91.2
91.3
90.6
86.4
80.2
67.3
70.2
73.4
118.5
120.5
117.4
124.1
127.6
127.0
123.1
117.0
112.6
113.2
112.1
112.5
99.6
96.1
91.5
91.7
91.0
108.2 i 107.1
108.1 j 107.2 !
106.3 i 105.3 i
111.3 j 110.2 i
113.6 i 112.1 '
117.8 !| 117.1
113.1 ; 118.9 j
111.2
120. 0 1
111.2 ' 123.3 j
113.0 I 125.1
116.0
129.3
118.2 : 129.4 i
115.6 i 126.3 !
114. 0 : 124.8 :
109.3 ! 121.1 !
110. 0 ! 125. 0
111.6 j 123. 1 '
112.4
114.1
111.7
123.3
123.6
124.4
125.7
120. 6
115.1
110.9
104.9
100.9
So. 9
85.0
88.9
92. 1
yo.0
94.1
94.3
76.3
82.3
84.4
86.1
86.1
88.5
87.9
90.6
93.4
94.2
94.3
88.8
77.0
80.0
81. C
NOTE.—These tables contain index numbers of factory employment and factory pay rolls for certain months, together with group indexes for
important industrial components. The nature and sources of basic data and the method of construction were described and the indexes for the
period January, 1919, to November, 1929, were published in the BULLETIN for November, 1929, pp. 706-716.
109492—30
3
288
M A T , 1930
FEDERAL RESERVE BULLETIN
BANKING AND BUSINESS CONDITIONS IN FEDERAL RESERVE DISTRICTS
FEDERAL RESERVE BANK DISCOUNTS-BY DISTRICTS
MILLIONS OF DOLLARS
1926
MILLfONS OF DOLLARS
( Weekly report date figures )
1927
1928
1929
1930
1926
1927
1928
Latestfiguresare for April 30; see table on following page
1929
1930
MAY,
289
FEDERAL RESERVE BULLETIN
1930
FEDERAL RESERVE B A N K S - R E S E R V E S , D E P O S I T S , N O T E CIRCULATION, A N D RESERVE P E R C E N T A G E S
[Averages of daily figures. Amounts in thousands of dollars]
Federal Reserve Bank
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago.
St. Louis
Minneapolis..
Kansas C i t y . .
Dallas...
San Francisco
1930
March
April
! April
258,974
903,055
234, 241
316,156
109,888
156, 704
540,921
124,440
84, 568
138,260
263,083
912, 761
222, 371
307, 581
109, 661
158, 366
540, 311
120, 963
84,011
138, 079
64, 744
280, 149
194,933
977, 439
167, 097
276, 072
84, 315
133, 015
514,141
83, 939
86, 287
102, 417
71,077
246, 203
I March
145,896
962, 762
136,457
188, 058
65, 920
65,922
342,821
78, 786
52, 740
89, 295
63. 972
180, 450
149, 531
970, 671
138,696
192,266
68,299
68, 212
350,049
80,684
52, 770
89,507
64, 263
183,091
Reserve percentages
1929
1930
1929
1930
1929
April
278,267
Federal reserve notes in circulation i
Total deposits
Total cash reserves
April
April
March
146, 369
937,149
135,926
186, 372
70, 247
67,890
346, 794
81, 476
52, 891
91, 023
68, 643
182, 739
163, 789
184,993
146,422
182,434
72, 339
128,852
270, 381
78,141
59,858
76, 582
33,925
157,194
162,250
205, 347
146, 422
180,335
76, 299
131,943
296, 363
82, 262
59,843
79,044
37, 440
158,404
April
• April
March
April
84.'4
78.1
79.5
87.2
78.4
75.1
83.2
65.2
81.8
85.4
78.1
78.6
83.5
77.1
80.0
84.5
75.1
74.6
82.0
63.8
82.7
69.7
79.2
59.9
70.1
60.0
65.6
79.3
60.3
73.7
65.0
66.7
72.7
81.0
80.3
72.7
82.7
133, 368
297, 621
143, 096
207, 752
70, 247
134, 773
301, 679
57, 775
64,187
66, 543
37, 965
155,898
3, 209, 467 3,202,080 2,936,935 % 408, 039 12,373,079 2,367,519 1,554,910 1,615,952 1,670,904
Total...
1929
1930
i Includes " F . R. notes of other F . R. b a n k s " as follows: Latest month, $18,665,000; month ago, $22,792,000; year ago, $17,291,000.
ALL M E M B E R
BANKS—DEPOSITS
SUBJECT
TO RESERVE, RESERVES
RESERVE BANKS
[Averages of daily figures.
Net demand deposits
HELD,
AND INDEBTEDNESS
AT FEDERAL
I n millions of dollars]
Time deposits
Total
Federal reserve district
January,
1930
February,
1930
January,
1930
February,
1930
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis,.
Kansas C i t y . .
Dallas...
San Francisco
1,394
7,080
1,144
1,473
569
571
2, 535
699
427
850
659
1,312
1,342
6,821
1,130
1,471
559
575
2,494
682
417
833
655
1,277
951
3,241
1,080
1,623
562
434
2,053
536
442
354
225
1,756
Total....
18, 713
18, 256
13, 257
Indebtedness at Federal reservejDanks $4
Reserves held
Excess
January,
1930
February,,
1930,,
1.8
21.5
2.0
2.7
1.4
1.8
7.3
2.7
2.5
3.5
2.7
3.3
23.9
110.9
52.0
72.8
31.2
31.8
87.4
17.7
7.0
27.8
13.3
21.8
23.2
70.550. &
53.3
22.4
25.7
63.0
16.7
3.0
22.8
11.9
15.0
53.2
497.6
378.3
January,
1930
February,
1930
January,
1930
February,
1930
956
3,210
1,097
1,636
563
443
2,049
531
453
359
233
1,735
149.9
956.5
133.8
182.2
66.2
64.5
337.0
79.3
51.3
88.7
63.0
176.7
145.3
930.1
133.1
182.9
65.4
64.4
332.5
78.7
50.4
87.1
63.6
172.4
1.9
14.0
1.8
2.0
1.4
2.4
6.8
1.6
2.8
3.8
2.1
3.9
13, 265
2,349.1
2,305.9
44.5
D I S C O U N T S OF FEDERAL RESERVE B A N K S , BY W E E K S
[In thousands of dollars]
Total
Boston
Philadelphia
Cleveland
171, 759
131,177
70, 626
89, 655
65,104
65, 777
56, 695
49,817
50,927
50, 399
38,939
32, 561
29, 918
24, 610
25,676
29, 347
35, 628
32,884
28, 668
26, 959
48, 978
50, 552
47, 056
49, 710
38, 583
38,424
32, 492
31, 297
31, 434
27, 649
26, 950
27, 297
29,581
76, 719
78, 970
77, 669
65, 590
58, 355
54,827
54, 590
49, 374
46, 386
22, 511
21, 015
22,951
20, 906
26, 527
25, 385
23,457
24, 043
40,119
34, 318
25, 263
26, 470
18, 257
16,683
14, 707
15, 304
14, 648
13, 380
15, 687
16, 402
18,931
26, 263
24, 319
17, 765
14, 534
16, 297
15,197
15, 672
22, 053
25,652
New
York
Dec.
Jan.
Jan.
Jan.
Jan.
31
8
15...
22
29
632, 421
567, 615
442, 336
433, 223
406,941
26,644
22, 444
19,180
22, 440
26,456
Feb.
Feb.
Feb.
Feb.
5
12.
19
26
381, 422
381,914
376, 943
342, 781
22,
20,
23,
23,
787
345
289
544
54, 720
79, 298
88, 787
58, 404
308, 616
266, 338
205, 634
206,829
22, 656
22, 705
18, 365
18, 575
19, 492
15, 731
13, 937
13, 932
13,737
39, 679
33,148
30,810
36,858
53, 867
62, 674
43, 916
34,126
41,270
Mar. 5...
Mar. 12.
Mar. 19
M a r . 26
Apr. 2 . . . .
Apr. 9
Apr. 1 6 . . .
Apr. 23
Apr. 30
_
241,123
226,164
213,804
211, 491
233, 452
27, 834
26, 095
25, 528
22, 870
20,717
Richmond
Minneapolis
Kansas
City
17, 938
18,870
16,448
16,348
15,067
i 10,177
I 9,204
4,238
i 5,613
| 5,217
29, 649
33, 279
25, 811
23, 687
24,936
13,291
16,170
12,945
11, 407
12,328
39, 513
35, 698
15,93520, 574
14,325
15,189
17,829
16, 449
14, 574
14, 450
12, 341
12, 239
2,728
2,457
2,997
2,571
26, 552
26,043
18,932
21, 009
11,896
11,097
15,265
11,068
20, 772
10,004
12,927
17,194
2,583
2,190
2,252
2,211
20,743
14, 722
13, 274
12, 698
11,105
9,634
5,892
5,579
24,298
17, 389
8,294
8,379
13, 357
12, 628
14, 518
14,703
16,118
2,285
2,373
2, 474
4,263
3,681
12, 322
12, 308
11,880
13,178
15,099
6,579
7,190
7,780
7,551
8,190
20,959
11, 228
10,583
12, 910
17,178
Atlanta Chicago
112, 668
96, 919
86,865
73, 704
77, 555
74, 799
65, 939
54, 079
48, 497
49, 756
38, 358
24,179
22, 685
22, 049
19, 711
24, 879
22, 206
23,298
San
Dallas Francisco
290
FEDERAL RESERVE BULLETIN
BANK DEBITS
DISCOUNTS OF FEDERAL RESERVE BANKS |
[Debits to individual accounts. In millions of dollars]
[Averages of daily figures. In millions of dollars]
1930
Number March, February,
of centers
1930
1930
1929
Federal reserve bank
April
Boston
New York
Philadelphia
Cleveland. ._ - ,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis _ _ _ _ .
Kansas City
Dallas
_ _
San Erancisco
.
_ ..
. .
Total
1930
MAY,
New York City
Outside New York City
April
March
15.6
53.7
28.3
25.7
16.0
18.8
22.7
13.9
3.1
12.8
7.5
13.1
21 1
54.3
36.7
31.1
16.8
21 6
35.2
14.0
2.4
16.2
83
15.8
75 8
264.6
110,0
96.6
52.6
63 6
133. 4
51.8
19. 3
38.8
IS 6
79.3
231. 2
273. 5
1, 001. 4
Federal reserve district:
Boston
New York
Philadelphia
1
Cleveland
Richmond
Atlanta
Chicago .
.
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
___
Total
1
140
40, 740
25, 014
31,117
21, 534
55,425
28,131
11
15
21
5
9
15
10
18
2,615
41,715
2, 505
2, 667
764
1,068
6,635
1, 188
730
1,348
734
3,784
2,329
31, 940
2, 233
2,325
654
1,009
5, 489
1,050
664
1,222
646
3,090
3,032
56, 472
2,845
2,945
778
1,248
7,650
1,358
745
1,452
769
4,263
141
65, 754
52, 651
83, 556
10
13
_
March
1929
WEEKLY REPORTING MEMBER BANKS IN LEADING CITIES
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS
[In millions of dollars]
City
Federal Reserve District
Total
Boston
Loans and investments:
Feb. 5
'•22,132
Feb. 12.
/22,10c
Feb. 19
22,090
Feb. 26.
_.. 22,003
Mai. 5
22,101
Mar. 12
_ . . . 22,232
Mar. 19
22,514
Mar. 26
_ 22,563
Apr. 2
'22,633
Api.9
22,560
Apr. 16
22,592
Apr. 23
22,746
Apr. 30
22,755
Loans:
Feb. 5
'16,630
Feb. 12
_._- '16,593
Feb. 19
16,519
Feb. 26
16,428
Mar. 5
16,547
Mar. 12
! 16,704
Mar. 19
j 16,847
Mar. 26
1 16,885
Apr. 2
! ' 16,913
Apr. 9 . . .
! 16,829
Apr. 16...
I 16,845
Apr. 23
- 16,955
Apr. 30...
_ 16,964
On secuiities—
Feb. 5
'7,692
j
Feb. 12
'7,682
Feb. 19
i 7,669
Feb. 26
! 7,641
]
Mar. 5
7,737
Mar. 12
j 7,883
Mar. 19
! r 8,054
Mar. 26
j 8,183
Apr. 2
_J '8,244
Apr. 9
I 8,163
Apr. 16
! 8,238
Apr. 23
1 8,326
Apr. 30
1 8,381
i New
New
York
Phila- Cleve- Richdelphia land
mond
1,207
1,207
1,202
1,196
1,200
1,192
1,203
1,209
1,215
1,217
1,208
1,214
1,206
Atlanta
Chicago
621
617
618
618
616
614
628
625
626
625
619
618
613
3,151
3,132
3,160
3,158
3,192
3,206
3,214
3,205
3,197
3,230
3,257
3,248
3,228
497
493
494
494
495
493
499
499
497
495
489
489
483
2,502
2,486
2,511
2,510
2,533
2,550
2,569
2,555
2,543
2,568
2,590
2,579
2,558
492
728 | 192 | 158
503 3,378
192 I 159
727 •
488
504 3,380
185 j 159
504 3,359
483 : 723
188 j '162
498 3,343
477:
192 I 159
505 3,428
481 •
196 i
164
504 3,543
473 :
717
197 |
167
518 3,638
484
727
200
j
164
526 3,755
482
199 I
162
530 . 3,858
488 i 759
'734
201
161
533 I 3,743
485
737
196
160
552| 3,779
479
728
197
158
551 3,894
484
201
155
531 3,998
478 ' 740
731
series; for explanation see note on p. 277.
1,237
1,220
1,247
1,244
1,254
1,274
1,301
1,288
1,268
1,283
1,304
1,274
1,253
1,495
1,508
1,496
1,485
1,486
1,490
1,511
1,519
1,515
1,517
1,532
1,527
1,513
9,033
9,041
9,125
8,998
9,020
9,188
9,251
1,168
1,181
1,170
1,161
1,163
1,168
1,185
1,192 j
1,183
1,182
1,193
1,181
1,166
6,586
6,559
6,496
6,422
6,525
6,651
6,737
6,752
6,829
6,712
6,721
6,868
6,926
8,779
8,758
8,694
8,775
2,130
2,129
2,126
2,128
2,128
2,117
2,146
2,203
• 2,186
2.185
2,168
2,177
2,165
i
9 2 4 '•
922 :
914 !
909;
914 ;
907 i
915 ;
920
923 '
922 I
913 :'
917
523
523
515
518
513
509
524
556
535
534
521
529
519
ffi
650
650
642 J
642
648
657
652 !
658 '
658
650
652
646
!
495 i
495 |
486 j
487 I
493
497
495
496
496
500
492
492 !
4S9 j
St.
Minne- Kansas
Louis apolis City Dallas
666
669
666
662
659
665
670
666
'663
668
669
664
664
516
520
517
512
511
515
516
'511
'510
513
516
511
509
230
233
232
233
230
233
233
'229
'228
232
234
230
231
362
362
364
369
370
375 i
376 :
373 '
374 ,
370
370 ;
367
366 j
248
247
248
253
253
259
259
256
253
251
252
249
254
!
j
|
I
i
85 ;
86 i
83 ;
89 ;
90 ;
87:
85:
82 !
85
85 !
91 !
r
San
Francisco
New ChiYork cago^
655
653
656
655
652
653
645
639
642
656
658
660
655
'466
'465
459
459
451
452
470
466
468
470
467
462
463
1,939
1,934
1,944
1,938
1,924
1,954
1,960
1,966
1,963
1,966
1,974
1, 968
1, 985
7,551
7,525
7,484
7,412
7,499
7,595
7,747
7,756
7,850
7,724
7,738
7,885
7,947
1,799
1,786
1,803
1,815
1,843
1,847
1,857
1,854
1,846
1,865
1,881
1,872
1,863
441
441
443
443
440
439
437
431
433
441
441
440
438
'362
'360
l,36d
1,365
1,371
1,368
1,363
1,372
1,355
1,364
1,356
1,353
1,361
1,350
1, H63
5,648
5,611
5,578
5,499
5,582
5,700
5,787
5,810
5,894
5,780
5,785
5,912
5,969
1,441
1,429
1,444
1,454
1,472
1,483
1,499
1,495
1,483
1,495
1,509
1,500
1,492
133
136
136
138
135
136
135
130
135
147
146
143
140
'108
'109
446
446
449
444
445
446
445
447
440
437
450
450
453
2, 921
2, 912
2,913
2,890
2,953
3,065
3,160
3,280
3,393
3,284
3,316
3,409
3,511
849
836
850
861
868
882
905
899
882
880
894
903
890
353
352
345
346
355
353
355
356
356
351
352
Revised.
106
106
106
108
118
116
116
121
124
119
119
MAY,
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued
[In millions of dollars]
Federal Reserve District
New
CleveChiSt. Minne- Kansas
Rich- i AtBoston York
land
Louis apolis City Dallas
mond ! lanta
cago
Total
Loans—Continued, j
All other—
j
Feb. 5
!
Feb. 12
i
Feb. 19
|
j
Feb. 26.
Mar. 5
Mai. 12
Mar. 19
Mar. 26
Apr. 2.
Apr. 9
Apr. 16
Apr. 23
Apr. 30
Investments:
Feb. 5_.
Feb. 12....
Feb. 19
Feb. 26....
Mar. 5 . Mar. 12
Mar. 1 9 . . .
Mar. 26
Apr. 2
Apr. 9
Apr. 16
Apr. 23
Apr. 30
U. S. G o v t .
securities—
Feb. 5
Feb. 12
Feb. 19
Feb. 26
Mar. 5.
Mar. 12
Mar. 19
Mar. 26
Apr. 2
Apr. 9.
Apr. 16
I
Apr. 23
i
Apr. 30
All other—
Feb.5
Feb. 12
;
Feb. 19
!
Feb. 26
j
Mar. 5
Mar. 12
I
Mar. 19
!
Mai. 26
!
Apr. 2
,
Apr. 9
i
Apr. 16
I
Apr. 23
I
Apr. 30
'
Reserve with F. It. i
bank:
Feb. 5
l
Feb. 12
Feb. 19
ij
Feb. 26
Mar. 5
i
Mar. 12..
Mar. 19..
_
Mar. 26..
Apr. 2
Apr. 9
•
Apr. 16
Apr. 23....
_
Apr. 30
Cash in vault:
Feb.5
Feb. 12....
Feb. 19
Fob.26
Mar. 5 . .
Mar. 12..
_
Mar. 19...
Mar. 26
Apr. 2.
Apr. 9
Apr. 16
Apr. 23
Apr. 30
r
Revised.
291
FEDERAL RESERVE BULLETIN
1930
3,207
3,179
3,137
3,079
3,097
3,108
3,099
2,997
2,971
2,969
2,942
2,974
2,928
432
434
431
432
434
434
430
439
435
437
434
433
430
795
796
792
795
794
792
796
797
'801
798
793
789
787
303 :
302 i
301 j
299 I
301
301 •
298 j
8,666
8,607
8,629
8,583
677
666
663
658
664
667
666
653
648
641
630
635
295
296
298
296
295
288
:
'
'
;
I
;
r 5, 503
' 5, 513
5, 571
5,575
5,554
5, 528
5, 667
5,678
' 5 , 7L9
5,731
5, 747
5,791
5,791
327
327
326
324
323
322
326
327
332
336
339
347
347
2,204
2,220
2, 262
2,272
2,249
2,218
2,296
2,289
2,297
2,286
2,299
2,321
2,325
284
285
288
287
286
284
289
288
292
294
295
297
607
605
610
611
615
608
623
647
'651
651
648
648
647
154
155
156
155
155
152
162
156
162
159
158
159
157
'
I
j
|
j
I
' 2, 725
' 2, 744
2,808
2,801
2,766
2,753
2, 861
2,844
' 2, 848
2,838
2,849
2,873
2,852
164
164
164
162
162
158
157
155
157
157
159
160
158
1,192
1,210
1,262
1, 256
1,225
1,209
1.267
1,246
1,244
1,228
1,241
1,248
1,238
78
78
289
289
293
294
298
296
308
329
'326
323
320
317
317
'2,778
2,769
2, 763
2,774
2,788
2, 775
2,806
2,834
2,872
2,893
2, 898
2.917
2.940
163
163
162
162
161
164
169
172
175
179
180
186
189
1,013
1,010
1,000
1,016
1, 025
1,009
1, 029
1,043
1,052
1,058
1,058
1, 073
1,087
203
204
207
206
207
208
209
210
2L4
217
217
219
220
318
316
317
316
317
312
314
319
'325
328
328
331
330
64 !
63
63
63
63
63
63
64
67
60
68
67
67
361
361
355
355
357
350
352
357
360
364
366
353
353
'1,702
' 1, 688
1, 695
1,731
1,683
1,733
1,653
1,719
' 1, 738
1,714
1,746
1,727
1,774
99
101
9S
97
97
101
97
809
800
805
845
788
818
778
814
826
813
824
811
849
129
127
131
124
129
130
121
130
'133
129
132
120
130
40
39
40
39
245
243
239
246
249
257
244
251
259
253
263
269
281
52
53
53
55
51
57
55
55
54
55 j
61
62
63
61
61
61
58
59
58
60
57
59
59
26
27
28
26
27
27
27
26
26
27
26
29
27
37
36
35
35
35
36
34
33
33
34
32
35
35
10 i
11
10
11
10
11
11
11
10
11
10
11
11
' 8,911
8,850
' 8, 787
' 8, 810
8,821
8,793
8,702
222
225
232
221
218
222
212
212
207
216
207
221
214
|
i
1
I.
!
339
1,265
335
1,266
335
1,264
'332
1,266
336
1,279
328
1, 276
332
1,268
335
1,266
335
1,274
334
1,285 !
329 ! 1,2""
331
1,305
329
1,305
285
288
284
280
'280
282
283
'283
'282
282
282
281
278
162
158
163
167
170
170
169
169
168
170
166
163
163
308
306
307
304
304
303
302
300
298
294
296
297
297
'254
'251
247
246
239
238
237 i
114
116
116
116
117
116
117
117
120
119
118
118
112
214
212
213
213
212
214
208
208
209
215
216
221
217
125
124
123
124
122
122
129
126
129
130
130
129
129
649
646
649
648
659
656
644
650
655
662
667
670
670
150
149
149
149
148
150
154
154
153
154
153
153
155
S
287
285
294
293
302
305
293
293
295
298
300
316
316
37
37
36
36
34
36
38
38
38
38
40
40
40
§J Iii
61
59
58
66
62
52
64
|
!
j
62 j
63 j
i
;
;
;
40 I
40 j
40 •
40 i
39
40
40 ,
40 ;
41
10
9
9
9
10
9
9
y
9
9
10
9
:
San
Francisco
113
112
113
113
114
114
116
116
115
117
114
113
115
121
117
120
117
119
119
118
118
119
120
121
124
122
58 I
56
56
City
New ChiYork cago
239
235
232
232
233
922
919
922
924
918
926
910
917
916
916
910
900
910
2,727
2,700
2, 665
2,609
2,629
2, 635
2,627
2,530
2,501
2,496
2,4(18
2,503
2,458
592
593
593
593
604
601
593
596
602
615
616
567
601
'104
'105
106
106
106
106
115 i
113
113
113
111
110
111
571
569
573
571
562
582
605
602
607
612
613
618
622
1,903
1,914
1,905
1,914
1,917
1,895
1,9C~
1,946
1,956
1,944
1,953
1,973
1,977
357
357
360
360
370
364
358
358
362
370
372
372
372
67
323
323
325
322
315
325
348
346
348
350
349
351
350
1,096
1,110
1,114
1,108
1,102
1,097
1,146
1,120
1,118
1,102
1,114
1,120
1,112
153
151
160
K0
168
167
160
157
158
159
161
1(2
163
248
246
248
248
246
257
257
256
259
263
264
267
271
803
792
805'
815
798
814
826
838
842
840
853
866
204
206
200
201
203
196
198
202
204
210
210
209
209
747
742
743
782
723
755
713
751
758
752
75:
745
782
170
169
165
171
J74
177
168
174
181
173
181
181
192
49
49
50
49
48
48
46
47
46
47
45
47
47
16
15
14
14
14
14
14
13
13
14
13
13
13
237 I
40
'41
41
41 !
41 !
41 i
Si
•
41
41
42
42
44
]
'.
!
I
j
33
32 i
34 '
33 j
37
34 '
33
39 i
33
33
33
34 j
34
15
108
114
110
109
102
108
97
103
105
105
105
106
99
292
FEDERAL RESERVE BULLETIN
M A Y , 1930
PRINCIPAL RESOURCES AND LIABILITIES BY WEEKS—Continued
[In millions of dollars]
City
Federal Res<erve District
Total
Net demand deposits:
Feb 5
Feb 12
Feb. 19
Feb. 26
Mar 5
Mar 12
Mar 19
Mar 26
Apr 2
Apr. 9 _
Apr 16
Apr 23
Apr. 30
Time deposits:
Feb 5
Feb. 12
Feb 19
Feb 26
Mar. 5
Mar 12
Mar 19
Mar 26
Apr 2
Apr 9
Apr 16
Apr 23
Apr 30
Boston
New
York
Phila- Clevedelphia land
Richmond
Atlanta
Chicago
St.
Louis
Minne- Kansas
Dallas
apolis
City
San
Francisco
New
York
Chicago
5,300
5,218
5,199
5,226
5,186
5,276
5 278
5,320
5,426
5,300
5 366
5,485
5,625
]. 188
, 177
1%
' 13,010
' 12,978
12,966
' 12,943
12,940
13,152
13,076
13,205
' 13,329
13,208
13,383
13,455
13, 581
901
916
901
879
887
893
897
891
917
899
919
908
924
5,871
5,802
5,785
5,816
5,787
5,871
5,877
5,920
6,029
5,896
5,979
6,120
6,252
704
703
699
686
714
706
701
700
725
723
711
711
705
1,002
'996
1,002
998
1,009
1,015
1,015
1,043
' 1,040
1,036
1,042
1,042
1,036
351
353
345
346
354
353
347
351
351
354
347
346
342
332
330
330
330
327
331
319
324
328
329
337
328
327
1, 775
1,766
1,797
1,795
1,812
1,849
1,835
1,835
1,851
1,867
1,906
1,899
1,900
370
373
370
372
367
379
378
378
377
380
386
375
372
208
210
211
216
225
230
225
222
222
222
222
218
223
471
476
479
482
474
489
479
479
480
486
498
490
484
'287
'286
290
284
281
282
284
333
286
289
295
289
287
739
766
757
740
701
753
719
727
723
728
742
729
728
' 6,863
' 6,856
6,851
6,874
6,887
6,948
6,975
7,085
' 7,087
7,102
7,068
7,034
7,055
478
,77
478
479
474
475
478
488
477
492
491
491
477
1,799
1,787
1,790
1, 796
1,810
1,867
1,876
1,921
1, 933
1,929
1,904
1,891
1,909
295
296
297
297
285
287
293
292
28b
286
297
299
302
942
948
946
950
916
940
948
982
'981
983
966
965
969
239
240
239
239
240
240
241
241
245
246
246
247
241
2*2
240
241
241
243
243
241
244
243
242
244
244
243
1,177
1,177
1,174
1,183
1,196
1,200
1,201
1,209
1,210
1.208
1,210
1,188
1,193
229
229
229
229
230
230
231
231
231
231
229
230
231
133
134
134
134
130
131
132
133
133
131
131
131
131
174
173
174
175
176
176
177
180
178
178
177
178
178
'145
'146
144
143
143
143
144
145
146
148
146
146
i50
1,010
1,008
1,006
1,009
1,015
1,015
1,014
1,020
1,024
1,027
1,025
1,025
1,030
18
9
4
5
1
Feb 12
Feb 19
Feb 26
4
2
1
1
1
1
2
1
2
1
2
1
1
2
1
Mar. 12
Mar 19
Mar. 26
Apr. 2
Apr 9
Apr. 16
Apr 23
Apr 30
280
238
217
173
141
108
96
20
17
15
12
10
8
7
108
92
84
C7
55
42
36
18
16
14
11
9
7
6
23
20
18
14
12
9
8
16
14
13
10
8
6
9
24
20
18
14
12
9
8
14
12
10
8
7
5
5
4
3
3
2
2
1
1
1
1
1
1
1
4
3
3
2
2
1
1
r
1,110
' 1,131
1,104
' 1,082
1,098
1,113
1,219
'1,204
' 1,232
i 1,130
A 1,194
1,155
1,188
54
38
42
48
45
44
58
50
67
52
62
59
' 65
114
120
116
111
117
119
158
148
171
146
146
169
193
58
55
58
57
57
57
73
58
65
59
67
58
64
90
87
93
94
94
97
100
99
' 106
110
106
99
99
51
50
49
48
50
48
49
52
57
52
51
51
55
73
76
68
70
74
73
77
79
78
75
74
65
67
210
232
225
211
209
202
229
213
226
188
214
192
196
59
64
58
54
58
54
57
54
'59
57
56
55
51
51
52
49
49
51
53
47
48
50
49
49
46
55
' 2,899
2,848
2,734
2,790
I 2,910
2,827
2,933
2,922
3,061
2,954
2,961
1 2, 797
2,930
135
129
115
108
115
114
119
119
139
128
134
126
124
1,013
972
904
965
1,006
958
1,044
1,045
1,106
1,041
1,042
960
1,096
172
176
170
165
172
169
171
162
187
173
173
165
165
209
209
203
210
211
208
216
231
'234
236
237
226
225
102
92
94
98
100
93
96
98
105
99
96
94
96
119
113
109
111
115
110
109
110
113
116
112
102
100
423
433
431
436
460
451
471
468
477
455
456
451
454
137
134
129
124
126
121
125
119
126
125
124
116
113
77
76
73
75
82
81
80
81
80
79
76
74
80
173
185
186
152
128
'96
51
47
82
75
65
58
74
5
5
6
8
6
7
4
4
5
4
3
2
3
17
47
58
25
9
6
4
9
27
38
22
12
17
11
14
12
16
8
9
5
4
5
4
4
4
4
33
34
31
30
23
20
12
14
15
13
13
10
7
9
7
9
8
7
'6
5
4
4
3
5
4
7
15
14
12
12
14
12
7
3
4
2
3
8
10
45
36
28
24
26
17
6
3
3
2
8
6
4
4
6
5
3
3
3
2
2
2
3
3
4
Government deposits:
Feb 5
1,241
1,223
1 225
L 230
1,246
L 295
L 304
I 351
L 368
[ 368
L 218
931
917
1, 9 41
9fi7
1,252
1,258
1 334
l' 344
507
508
501
511
521
525
523
530
532
528
529
532
538
4
2
1
2
2
1
19
16
14
11
9
7
6
30
25
23
18
15
11
10
99
85
77
61
50
38
33
10
8
7
116
124
117
119
125
121
131
131
130
115
130
118
115
'62
'59
67
62
64
67
72
114
72
70
71
68
68
171
176
163
159
154
175
168
158
152
156
168
174
159
77
76
78
74
77
82
112
107
122
105
102
125
147
129
152
145
130
124
119
136
117
133
104
123
116
116
205
201
200
205
211
199
198
190
195
191
196
187
180
100
100
98
95
96
88
89
89
91
91
88
90
83
206
213
208
198
215
233
214
212
206
220
226
206
215
950
911
844
904
943
897
982
983
1,039
975
975
891
1,030
303
315
314
314
330
327
341
338
346
333
331
321
328
14
15
8
10
10
5
3
3
2
2
2
2
4
7
6
10
6
6
5
2
1
1
1
2
1
1
11
2
5
8
16
8
11
37
37
1
2
1
3
2
1
1
1
1
13
3
1
3
8
15
31
16
m
12
244
1
Mar. 5
Due from banks:
Feb.5
Feb 12
Feb 19
Feb. 26
Mar. 5
Mar 12
Mar. 19
Mar 26
Apr. 2
Apr 9
Apr. 16 . . .
Apr. 23
Apr. 30
Due to banks:
Feb 5
Feb. 12
Feb. 19
Feb. 26
Mar. 5
_
Mar 12
" Mar. 19
Mar. 26. Apr. 2
Apr. 9
Apr. 16
Apr. 23
. . .
Apr. 30
Borrowings from F .
R. Banks:
Feb 5
Feb 12
Feb. 19
Feb 26
Mar. 5
Mar. 12
Mar 19
Mar 26
Apr. 2
Apr. 9
Apr 16
Apr. 23
Apr. 30
•• Revised.
1
1
1
5
4
3
7
MAY,
293
FEDERAL RESERVE BULLETIN
1930
BUILDING CONTRACTS AWARDED
BUILDING PERMITS ISSUED
[Value of contracts in thousands of dollars]
[Value of permits in thousands of dollars]
1930
;
1929
Federal reserve district
Number of '
cities
Federal reserve district
March
February
March
I
Boston
28,102
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City
Dallas
_
_
_
105,493
25,511
60,012
43,220
20,898
i 73,812
_-.|
23,705
_i
15,131
..._!
35,974
24,260
17,961
90,312
17,743
35,992
28, 707
19, 526
37,983 ;
24,510 !
4,980 |
18,071 I
21,267 i
30,044
113,466
35,399
47,078
32,979
456,119
317,053 i
484,848
Total (11 districts).
107,289
38,795
8,343
22,854
23,204
Figures for building contracts awarded are for 37 States east of the
Rocky Mountains, as reported by the F. W. Dodge Corporation.
Mar. | Feb.
Mar.
1930
102,118
352,637
Boston
j
New York
\
Philadelphia
!
Cleveland
l
Richmond
Atlanta
Chicago
St. Louis
..._
Minneapolis
Kansas City i__
Dallas
36
60
57
55
28
41 I
97
19
18
27
22 i
San Francisco
36 j 112
93
93
87
496 \ 95
83
Feb.
102
115
115
103
114
90
98
107
103
* 112
102
'89
104
115
98
107
115
117
124
111
96
106
120
107
117
116
116
110
104 i 106 !
Philadelphia
Cleveland .
Richmond..
Atlanta
Chicago
St Louis
Minneapolis J
Kansas City
Dallas
San Francisco
. .
Total
113
Feb.
Mar.
Mar.
Mar.
93
105
81
90
97
91
109
86
70
93
108
83
90
96
92
M09
88
'72
97
105
85
93
97
99
109
90
75
80
106
80
109
80
104
97
98
99
87
34
34
45
49
28
29
79
19
14
21
21
32
95
107
85
92
100
94
113
88
73
116
82
108
86
91
90
105
82
'69
113
77
104
99
107
90
97
100
101
113
91
78
122
83
106
413
100
93
102
i Monthly average 1925=100.
Feb.
' Revised.
BANK SUSPENSIONS IN MARCH, 1930
1
[Amounts in thousands of dollars]
[Amounts in thousands of dollars]
Member
banks 2
All banks
Number
1929
1
Revised.
COMMERCIAL FAILURES
1930
Mar.
97
115
99 •
88
105
95
114
103
113 j 101
120
106
110
100
92 ; 98
r
i Monthly average 1925=100.
With seasonal
adjustment
1929
1929
Boston
New York
101
111
103 ,
83 !
;
1930
Mar.
Mar.
I
Total
Number of
stores
Federal reserve
district
adjustment
1929
168 '• 151,944
i
[Monthly average 1923-1925=100]
With seasonal
1930
15, 503
3,085
2,035
8,022
5,840
19,905
i
7,319
44,610
11,020
15,850
12,126
Without seasonal
adjustment
Without seasonal
adjustment
March
INDEX OF DEPARTMENT STORE STOCKS
[Monthly average 1923-1925=100]
Federal reserve
district
February
March
12,572
188, 517
14,808
16,104
13,013
7,595
44, 279
5,952
2,545
9,154
7,371
30, 729
!
I
20
INDEX OF DEPARTMENT STORE SALES
Number of
stores
1929
4,076
30,231
4,241
9,639
6,011
3,179
15, 729
2,670
1,083
6,501
4,614
14,144
14
22
14
12
15
15
19
5
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas C i t y . .
Dallas
San Francisco.
Total...
1930
Federal reserve
district
Liabilities
NumDeber posits 3
Federal reserve district
Boston
1
2,707
2
4
8
27
9
15
8
1,186
626
2,166
6,319
2,629
1,709
6,282
Nonmember
banks
NumDeNumDeber
posits 3 ber posits 3
1
1
2,707
2
4
7
25
7
13
5
1,186
626
1,640
5,355
1,924
1,384
554
New York
Ph iladelDhia
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco.
Total...
264 | 283
416 ! 563
132 ! 123
168
169
145
126
204
93
376
333
102
133
101
48
115
124
42
66
204
279
200 5,020
310 11,401
77 2,054
194 5,263
140
101 3,659
366 15,854
123 2,420
39 1,100
119 1,827
926
49
4,684
2,347 i 2,262 1,987
i Figures reported by R. G. Dun Co.
56,846
6,124
13,466
3,757
3,023
2,418
1,844
8,845
6,030
522
1,231
1,359
2,706
541
1,707
559
4,113
51, 326
36,356
3,017
7,226
1,584
4,141
2,168
2,983
6,329
1,988
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
-
• 1
85
75
23,709 || .
1
526
2
964
2
705
2
325
3 ! 5,728
10
8,248
1
85
65
15,461
1 Banks closed to the public on account of financial difficulties by
order of supervisory authorities or directors of the bank.
2 Includes 9 national b a n k s with deposits of $7,722,000 and 1 State
member bank with deposits of $526,000.
3 Subject to revision.
294
FEDERAL RESERVE BULLETIN
MAY,
1930
FOREIGN BANKING AND BUSINESS CONDITIONS
ANNUAL REPORT OF THE NATIONAL BANK OF BELGIUM
The annual report of the National Bank of
Under these circumstances the bank is in a
Belgium for 1929 was submitted to the general position to exchange its notes for gold at any
meeting of shareholders on February 24, 1930. time, although up to the present and at the
Selected
sections of the report are given here- existing level of exchange only jewelers have
had any occasion to demand metal. This
with. 1
The favorable developments which had their situation, however, might change; therefore in
origin in our currency stabilization have con- the revision of our by-laws we took pains to
tinued and strengthened during 1929, and three elaborate in chapter 3 the provisions which
2
years of great prosperity have now followed define the methods of note convertibility.
The gold added to our reserve during 1929
the return of this country to sound money.
From the standpoint of currency, all those came partly from the United States, partly
countries which have reestablished the convert- from the London market, and partly from the
ibility of their bank notes in gold or gold ex- Congo, in the following proportions:
change have benefited as a result of the reform
which they had the courage to accomplish. At
Dollars
Francs
the same time that the international flow of
funds on a stable basis has been assured, the Gold from the United States
' 11,179,500,000 32, 790,000
from England
.._!• 175,000,000
4,865,000
interdependence of the great markets of the Gold
Gold from the colony
|
96,225,000
2, 675, 000
world has again become evident and calls for
1, 450, 725, 000 40, 330, 000
constant attention. During almost the entire
year the money market has been influenced by 1 It should be noted that these figures do not agree exactly with those
above and published in the weekly balance sheets of the bank; the
the withdrawal of capital in large volume for given
differences, which are of minor importance, are due to (1) sales of gold to
investment on the New York stock exchange, industries, (2) imports of gold coin, and (3) purchases of gold by the
Treasury. It should also be noted that Belgian customs statistics do not
where excessive speculation and high rates of include
gold imported for monetary uses.
interest proved attractive to holders of funds.
On the other hand, the advance in most EuroAs the gold output of the Congo is turned
pean exchanges reacted on the American mar- over to us under contract and so comes to us
ket. Ultimately, the speculative crash in the regularly, we left on deposit with the Federal
United States brought about a considerable Reserve Bank of New York part of the gold
release of funds and a return to more moderate which we acquired in the United States, and
conditions for short-term credit. In Belgium waited until we could replace it by gold
the amplitude of the gold and gold exchange imported from the colony. But in March
reserves and the prosperity of the export indus- and April last the opportunity arose to transact
tries kept our money market from experiencing an important operation with the Reichsbank,
the ill effects of these disturbances.
which consisted in transferring to the ReichsGold policy.—Our policy in respect to gold
2 ART. 160. Notes are payable at sight at the offices of the bank in
has been to secure the demand liabilities of the Brussels
according to the terms of the royal decree of Oct. 25,1926, relative
bank in such manner that the metallic reserve to currency stabilization.
Notes are likewise redeemable on demand at the branches and the
in and of itself shall constitute a sufficient coyer, agencies
in the Provinces. Such payment, however, may be postponed
the necessary funds can be received.
and that under these circumstances the holdings until
ART. 161. The bank shall redeem its notes in gold and on demand
of foreign exchange shall form a supplementary at its wickets at the legal parity of 0.209211 gram of fine gold per belga.
Gold payments shall be made in the form of bars or bullion of the
margin of security. The results of this policy weight
generally used in the principal money markets of the world
(about
kilograms).
are clearly indicated in the following table, ART. 12
162. If the bank makes use of the privilege reserved to it by
which shows the reserve ratio of gold alone for article 8 of the royal decree of Oct. 25, 1926, it shall itself determine on
what market it will deliver bills of exchange. Only banking centers
the past four years:
Per CGnt
shall be selected in which the bank of issue redeems its notes in gold and
Dec.
Dec.
Dec.
Dec.
25,
25,
25,
25,
1926
1927
1928
1929
30. 90
32. 86
36. 17
40. 48
1
In addition the report contains discussion of the international situation, commerce, industry, and agriculture, the position of labor, and the
growth of savings, as well as details of bank operations and a number of
tables. For earlier reports see FEDERAL RESERVE BULLETIN, April,
1929, 1928, 1927, 1926, etc.
on demand.
The rate of exchange to be used is the actual parity, increased at discretion by a commission not to exceed the difference between parity and
gold export point, allowing for costs of transportation, interest, and
insurance to its destination in the foreign center in question.
ART. 163. For purchases of gold at its wickets, the bank may deduct
from the legal parity a commission equivalent to the costs of minting.
ART. 164. The provisions of articles 46 and 47 of the present by-laws,
relating especially to the assay certificate for bullion, are applicable
to the operation provided for in the preceding article.
These regulations were approved by the Minister of Finance Apr. 10,
1929.
MAY,
1930
FEDERAL RESERVE BULLETIN
bank against gold bullion which the Reichsbank shipped to us from Berlin dollar balances
which we held in New York. This interesting
clearing operation made it possible—to the
advantage of both banks—to save the greater
part of the costs which would otherwise have
been incurred by the double shipment of gold
between America and Europe. This is a conspicuous instance of cooperation between banks
of issue, and it is because of this feature that
we call attention to it.
On the whole gold is now distributed among
the central banks of the world in a far more
normal proportion than in the years immediately following the war. This new distribution
is more in line with the needs of the general
economic situation and gives the European
markets a certain independence in performing
their economic functions.
Note circulation.—Turning now to the circulation, we find that the monthly average of
notes in circulation rose from 11,925,922,000
francs ($331,541,000) in January, 1929, to
13,401,947,000 francs ($372,574,000) in December, 1929, an increase of 1,476,025,000
francs ($41,033,000). This advance is due
chiefly to the influx of foreign exchange. The
bank, in other words, has never tried to acquire
gold, as is sometimes thought. It has merely
taken up the volume of gold exchange which
has come into the country in excess of the needs
of the market. It has done this systematically
at a rate corresponding to the gold import
point or slightly lower. Being in possession
of these foreign bills, and finding that the
market was not repurchasing them, the bank
converted them into gold in the considerable
amount noted above. It may be said, therefore, that the greater part of the additional
circulation was issued against 100 per cent in
gold values.
This influx of foreign exchange came from the
surplus in our balance of payments, which
throughout the year was influenced by a large
volume of exports sold at favorable prices.
The loans floated abroad and the purchase of
Belgian securities by foreign investors aided
this movement, but to a less extent than during
previous years. Likewise the participation of
foreign markets in capital increases, which have
been numerous in Belgium during 1929, were
by no means negligible. Nevertheless, a certain
balance has been struck through the purchase
of foreign securities by our own nationals.
All these economic phenomena are normal in
character.
This is not to say that the increase of our
circulation, however adequately covered it may
109492—30 4
295
be, need not be a matter of concern to the bank
of issue. By no means is this the case, and the
bank has neglected none of the expedients at
its disposal to keep the circulation within
prudent limits. Furthermore, it has continued
the policy which we described in our annual
reports for the years 1927 and 1928, and
the Government has seconded these efforts
by continuing to redeem the balance of the
debt which it contracted through the withdrawal of German marks.
Discount rates.—From July 1, 1928, until
July 31, 1929—that is to * say during 13
months—our discount rate stood unchanged
at 4 per cent. This reasonableness and this
stability of the cost of short-term money were
exceedingly helpful to commerce and industry.
They were maintained in our domestic market
in spite of large international movements of
capital and in face of a general tension in interest rates resulting from successive advances in
official rates in London, in New York, and in
most foreign banking centers.
This independent policy, which would certainly not have been possible for us before the
war, shows the advantages offered by our present position, and especially by the amplitude
of our gold reserves. The result was of course
a very considerable increase in our portfolio of
domestic securities. Thus, in one year, from
July 1928, to July, 1929, this portfolio was
increased by about 1,500,000,000 francs ($41,700,000) to the great advantage of Belgian
industry. On the other hand, we find as in
previous years that our portfolio of commercial
securities is smaller than it was before the war.
Toward the end of July, 1929, however, rediscounts threatened to increase too rapidly, and
the situation of the international money market
demanded prudence. Under these circumstances our discount rate was raised to 5 per
cent. Subsequent events were not slow in
justifying this decision. Demands on the
bank for credit at once assumed more moderate
proportions. Some weeks later a financial
crisis of exceptional violence occurred on the
New York stock exchange. As a result of the
enormous liquidation which took place in that
market the tendency toward higher money rates,
which had been noticeable up to that time, was
completely reversed. On November 13, 1929,
our discount rate was lowered from 5 to 4V2 per
cent, and later, on December 31, to 3% per cent.
In lowering its rate of discount at the end of
the year to %}{ per cent—the lowest rate existing
at that time—the National Bank strove to give
its support to the commerce and industry of the
country at a time when the situation of foreign
296
FEDERAL RESERVE BULLETIN
markets and the high level of net costs of production at home made exporting more difficult.
The private rate of discount has been constantly held very close to the official rate. In
general, money has been abundant and the rate
for call money not very profitable.
Securities market.—The stock exchange and
public securities play so large and so important
a part in the modern world that they are a
considerable factor in the money market. During all of 1929 the Belgian stock exchanges,
sobered by the crisis which took place about
the middle of 1928, were quiet and often inactive. The volume of shares issued, nevertheless, was fairly large.
The margin, nearly always considerable,
between the issue price and the market quotation was favorable to investment in securities.
During the excessive speculation which characterized the year 1928, huge issues were floated
one after another. The purchasing power of
the public became exhausted, bringing about a
decline in quotations. Thereafter the position
of the stock exchange was at the mercy of
chance. In October the decline was accentuated
under the influence of the inactivity of foreign
bourses; shortly afterwards the downward
movement was hastened by the debacle which
occurred in the New York market.
In order to appreciate the movement as a
whole and its results, it will be sufficient to
glance through the following table, which gives,
month by month for 1928 and 1929, the index
of the Brussels stock exchange as it is published
periodically in the bulletin issued by our
Economic Research Service. It should also
be remembered that the base for this table—
that is, the quotation on January 3, 1928—was
already at a very high level.
INDEX OF THE BRUSSELS STOCK EXCHANGE
[120 securities with variable yield.
Base January 3,1928=100]
1928
January...
February.
March
April
May
June
July
August
September
October.. _
November
December.
100
107
10fi
121
125
124
11 f)
103
119
111
110
107
1929
108
117
114
112
104
102
97
99
103
hO
85
75
The fluctuations are wide, and there is no
doubt that our financial market and the public
suffered great losses. Such happenings confirm
once again those truths of experience to which
MAY, 1930
we have called attention from time to time,
that a movement on the stock exchange which
overlooks essential considerations, such as
business profits and investing capacity, bears
within itself the seeds of a depression the
seriousness of which will be in proportion to
the extent to which the principles of sound
finance have been disregarded.
In contrast with the weakness of the stock
market, the market for rentes remained strong
and steadily improved, as did also the bond market. Thus, in the course of the year the Belgian
Communu al Credit Office was ab] e to p] ace about
9,000,000 francs ($250,000) of 6 per cent bonds
issued almost at par. At the time of waiting
this report the price of securities with fixed
yield has still further improved. The return
of investors to this t}^pe of securities is also in
evidence on foreign markets. It is facilitated
by the decline in the rate on short-term loans.
This revival was necessary in the public
interest as well as in that of industrial enterprises, to which the bond market has been
practically closed for a long time, although
they were in a position to offer investments
which were both safe and profitable.
Banking situation.—The general situation of
the Belgian banks, which is always thoroughly
sound, was strengthened still further during
the year under review by a large volume of
business and by important increases of capital
and reserve. The following table gives a summary of the balance sheets as of December 31,
1927, and December 31, 1928.
P O S I T I O N OF T H E P R I N C I P A L B E L G I A N C R E D I T I N S T I T U TIONS ON D E C E M B E R 31
[In thousands of francs]
19281
Resources:
Cash funds: Cash on hand, at National
Bank, postal checks, coupons, foreign
3,194,235
currency
Commercial bills discounted (exclusive of
rediscounts)..
5,066,198
4,168,076
Securities and participations
Debits in current account, banking correspondents, acceptances, loans and securities, advances, accounts carried forward. 16,574, 704
Liabilities:
Paid-up capital
_
2, 703, 928
Reserves
2,190, 268
4,894,196
Aggregate capital and reserves
_
Miscellaneous liabilities: Credits in current account, correspondents, accept• ances, bills payable
23, 858,613
Percentage of—
Cash funds to miscellaneous liabilities ,
13.39
Bills discounted to miscellaneous liabilities.!
21.23
Debits in current account to miscellaneous
liabilities
69.47
Capital and reserves to—
Miscellaneous liabilities
20.51
Security investments and participations
117.42
1927 2
2, 620, 046
4, 392,881
3, 356, 306
13,171,854
1,876, 243
1, 091, 637
2,967, 880
20,316,729
1 58 banks; decrease from preceding year due to amalgamations.
2 62 banks.
12.90
21.62
64.83
14.61
88.43
MAY,
1930
It will be seen that the participation of the
Belgian banks in industry and commerce, represented by their portfolio of securities and
participations, is considerably less than the
aggregate of their own funds—that is, than the
aggregate of their paid-in capital and reserves.
Conclusion.—Belgium has closed the onehundredth year of its independent existence
with an economic situation which on balance
is favorable. It is her duty to maintain this
position. The depression and the difficulties
now prevailing in most foreign markets, if they
persist and are augmented, may give Belgium
also reason to fear a cycle of business depression. The country is in a position to withstand
such a period, provided it uses prudence and
does not neglect the lessons of the past.
The concern for international markets dominates our industry as well as our labor. In this
connection we should realize that foreign competition is rapidly winning back the advantages
which we were able to gain as a result of various
temporary causes; consequently a great effort
on the part of commercial organizations and a
rigorous supervision of costs of production are
imperative if we wish to maintain our position.
On this point employers and workers are in
entire agreement.
The same necessity for prudence exists in
the matter of public finance. The excellent
situation of the treasury, it is true, justifies
some important tax reductions which the Government has submitted to Parliament. Tax
reductions, moreover, will permit a corresponding increase in savings which can be made
available to business enterprises. The same
principle applies to the amortization of the
public debt, which ought to be very greatly
reduced because its service constitutes a heavy
charge upon the country. In this connection
the repayment of certain foreign loans which
are especially burdensome is particularly to be
recommended.
To imagine, however, that the country is in
a position to expand its public expenditures,
whether these are made by the Government or
by local administrations and authorities, or
even by endowed institutions of the civil
service, would be a grave error. Our public
debt has been only partly reduced, and even
297
FEDEKAL RESERVE BULLETIN
the most useful ends do not justify its being
increased to any considerable extent, since the
resources arising out of German reparations
have already been allocated to new expenditures.
BALANCE SHEET OF NATIONAL BANK OF BELGIUM
DECEMBER 25,
1929
Francs" (in Dollars i (in
thousands) thousands)
RESOURCES
Reserve:
Gold
Foreign exchange on gold standard countries..
Subsidiary coin
_
Belgian and foreign bills
Advances on Belgian public securities
Belgian treasury bills and other public securities (royal decree of Oct. 25, 1926)
Public securities
Public securities in the surplus account of the
bank...
Public securities in amortization account of
real estate in use, furniture, and fixtures.—.
Insurance fund assets
Bills deposited for collection in current account.
Real estate in use
_
Furniture and fixtures
Provision for the manufacture of bank notes,
and labor involved
Interest earned or receivable
Assets held in pledge or to be liquidated (art.
34 of the statutes)
Total resources
5,875,239
163,332
2,796,100
77,732
8,671,339
11,446
4,038,570
166,099
1,687,716
186, 721
241,063
318
112,272
4,618
46,919
5,191
73,697
2,049
34,692
76,092
55,822
96,362
4,700
964
2,115
1,552
2,679
131
3,655
6,191
102
172
3,511
15,116,614
420,242
14, 747,092
1,309,611
409,969
36,407
LIABILITIES
Bank notes:
Issued
Held by the bank..
In circulation
_
13,437,481
373,662
Current accounts:
Treasury..
_
Individual
_
151, 745
923,453
4,219
25,672
1,075,198
29,891
55,822
200,000
76,693
1,552
5,560
2,132
39, 702
76,360
19,974
1,104
2,124
555
20,228
8,055
562
224
76,008
2,113
Bills deposited for collection in current account.
Capital
Surplus
Amortization account of real estate in use,
furniture, and fixtures
Insurance fund...
Interest and rediscount
Taxes payable to the Government:
Profits on discounts and advances in excess of 3H per cent
Tax on fiduciary circulation
Share of the Government in profits on
foreign exchange
Share of the Government in profits (art. 38
of the statutes)
15,038
418
119,329
16,026
3,317
446
15,116,614
420, 242
Unpaid dividend for second half year of 1929..
Total liabilities
* Converted at par of exchange: 1 franc=$0.0278.
298
FEDERAL BESERVE BULLETIN
MAY,
1930
ANNUAL REPORT OF THE GERMAN REICHSBANK
The annual report of the German Reichsbank
for 1929 was presented to the genera] meeting
of shareholders on February 15, 1930. The
main section of the report dealing with financial and
economic conditions is given herewith: x
For the Reichsbank the year 1929 was especially noteworthy because of the successful
recovery from the currency disturbance which
took place in the spring in connection with the
negotiations of the experts at Paris. The occurrence strikingly revealed the dependence of
German credit upon political factors, as well
as the grave dangers arising from large foreign
indebtedness. Even though the actual difficulties were overcome within a relatively short
time, nevertheless the checkered course of the
Paris conference and its unsatisfactory outcome
for Germany prevented the material and
psychological relief which all countries had
hoped might follow from it. In Germany, at
all events, there remained a lingering economic
and political unrest which, accentuated by the
bankruptcy of some well-known firms as well
as by the financial embarrassment of many
public bodies, still persists.
Business recession.—The business recession,
which had begun as early as 1928, was more
severe during the year under review. The exceptionally long and rigorous winter, the reparation payments which had risen to their maximum amount, the continued advance in rates
of interest—already abnormal—credit difficulties, high unemployment figures, and oppressive
public charges, combined with inadequate business profits—these were some of the additional
factors which characterized the economic situation during the year. That figures of production
and sales were comparatively slow in showing
a decline, and that the decline when it came
was comparatively slight, was due partly to the
strength and determination of German enterprise to withstand the difficulties against which
it had to contend, and partly to an increased
capacity on the part of foreign countries to
absorb German products, which compensated
to some extent for the reduction of internal
purchasing power. Some of the exports, however, were effected at sacrifice prices. While
prices controlled through cartels and similar
organizations in general maintained their level,
prices not thus controlled declined in all groups
1
In addition the report contains several charts and tables, as well as
details of banking operations. For earlier reports see Federal Reserve
Bulletin March, 1929, May, 1928, 1927, 1926, etc.
I
of commodities. Standard wages based on
wage agreements, which, like many commodity
prices, are largely controlled through cartels,
continued to advance even in the latter half of
the year.
The money market.—Immediately after the
1928 end of year settlements the seasonal relaxation set in, and on January 12 the Reichsbank was able to reduce its discount rate from
7 to 6% per cent. Because of the considerable
decline in the volume of its credit outstanding,
the bank was able deliberately to disregard the
fact that curtailment of the margin between
rates of interest in and outside Germany would
check the influx of foreign capital, and under
some circumstances might even involve a reduction in the Reichsbank's large holdings of
gold and foreign exchange. The withdrawals
of gold and foreign exchange which began in
the spring, however, assumed proportions
beyond anything that had been anticipated.
Not only did the service of interest and amortization of the heavy foreign indebtedness and
the unremitting foreign exchange payments on
reparation account draw heavily on the gold
and devisen of the Reichsbank, but the situation of the leading international money markets
became less favorable; finally, toward the end
of March
there began a " flight from the
mark/ 7 the origins of which are to be sought
in a fear psychosis created by the uncertainties of the Paris conference and fostered by
irresponsible elements within and outside
Germany. Inasmuch as Germany, as a result
of her own lack of capital and her heavy reparation burdens, is dependent on the assistance
of foreign capital, grave difficulties arose
when foreign aid ceased to be available and
foreign funds were withdrawn—in part deliberately—or were no longer sent to Germany for
investment. The dangers inherent for Germany in this situation were clearly revealed
during the crisis in the spring, although
throughout the negotiations on the Young plan,
both in Paris and at The Hague, they were kept
in the background. It was inevitable that this
situation should affect the German money and
capital market in such a way as to undermine
and unsettle confidence.
An advance in the discount rate of the bank
from 6}i to 7}i per cent, made effective on
April 25, had no effect. There was neither any
return flow of gold and foreign exchange to the
Reichsbank, nor any reduction of demands on
the Reichsbank for negotiation of inland bills.
MAY,
1930
FEDERAL RESERVE BULLETIN
It became increasingly clear that a crisis of
confidence had developed; the demand for
domestic credit rose beyond the economic requirements of the country, and was directed
largely to the accumulation of stocks of foreign
exchange. In this situation, in which advance
in the discount rate seemed to be without
effect, the Reichsbank at the beginning of May
unfortunately felt itself compelled to employ
the method of credit restriction. The bank
management is, however, fully persuaded that
credit restrictions involve a danger to economic
development, depriving business of the undisturbed flow of services which it is the function
of currency to render. The utilization of this
last resource, therefore, was justified only by
the fact that Germany was powerless to resist
foreign pressure, and confidence within the
country was threatening to give way.
The aim of the policy of restriction, namely,
to limit the demand for credit to essential
purposes, was quickly attained, especially as
the progress of the Paris negotiations relieved
the general situation. The gold and foreign
exchange holdings of the Reichsbank began
once more to advance, and by the end of May
the demand for Reichsbank credit had been
reduced to proportions which the bank could
meet without danger. The measures of restriction became less and less necessary, and
by the middle of June were superfluous.
During the latter half of the year the position
of the Reichsbank improved still further, so
that there was no longer any objection on the
part of the bank to relieving the business
community by a reduction in the discount rate.
But in view of the exceptionally difficult conditions in foreign money markets and the large
volume of Germany's short-term indebtedness
to foreign countries, it was essential to avoid too
great a reduction of the margin between interest rates in Germany and in the principal
foreign markets. Under these circumstances
it was not possible until November 2 to meet
the pressing need of the business community
for a relief from the burden of interest, and
then only to the extent of one-half per cent.
Further reduction, which might have been
possible in view of the easier conditions that
were beginning by that time to prevail on all
foreign markets, was unfortunately impossible
owing to special conditions in the German
market—in particular, the continual demand for
credit on the part of public bodies.
Movement of gold and foreign exchange.—
During the critical weeks in the spring of 1929
the Reichsbank surrendered altogether nearly
299
1,500,000,000 reichsmarks ($357,300,000) of
gold and foreign exchange. Under the influence
of the withdrawals of foreign exchange by
German and foreign holders the official quotation of the dollar dropped to the gold export
point. The necessary consignments of gold to
foreign' countries were in every case effected
by the Reichsbank itself, which sold the gold
principally in New York. In order to dispense
with the actual shipment of part of this gold to
New York, agreements were made on several
occasions with foreign (European) banks of
issue, which placed the necessary amounts at
the disposal of the Reichsbank out of their
stocks of earmarked gold on deposit in America.
The gold delivered by the Reichsbank in exchange, amounting to about 700,000,000
reichsmarks ($166,740,000), was shipped, not
to America, but to the European centers concerned. Altogether some 870,000,000 reichsmarks ($207,234,000) were sold in New York,
40,000,000 reichsmarks ($9,528,000) in London,
17,000,000 reichsmarks ($4,049,400) in Paris,
and 28,000,000 reichsmarks ($6,669,600) in
Holland and Switzerland.
The short-term foreign indebtedness of the
German banks at the end of March and the end
of June, 1929, was not much less than at the
end of December, 1928, in spite of the large
surrenders of foreign exchange by the Reichsbank during this period; in the second half
year a considerable increase was again to be
observed. From the inflow of funds the
Reichsbank was able once more to replenish its
holdings of foreign exchange. At first the bank
had purchased to only a limited extent the
foreign exchange accumulated during the
flight from the mark and now offered to it as a
result of the measures of credit restriction.
The effect of this policy was to strengthen
reichsmark exchange. The improvement of
the reichsmark was especially noticeable with
reference to sterling, which was periodically
depressed on the international market. From
the end of May it was possible to import gold
from England. If the Reichsbank on occasion
intervened to prevent such imports, it did so in
order that the Bank of England might not be led
to adopt a discount policy which in turn would
be undesirable for the German money market.
Position of the reichsmark.—Movements of
the exchanges during the eventful period of the
year under review show that the Reichsbank
was able at all times to protect and maintain
the stability of the reichsmark. The bank was
able to improve its position quickly with the
aid of the measures indicated whenever it
300
FEDERAL RESERVE BULLETIN
considered such measures necessary; and it
showed once again that, even under difficult
circumstances, it can fulfill the tasks imposed
upon it in so far as it is prepared to make energetic use of the powers at its command.
It is most regretable that there should nevertheless still be persons who speak and write of
an impending collapse of the currency and
endeavor to alarm the public by prophesying a
new inflation. Such action is particularly
unscrupulous on the part of persons who go
about the country protesting without any
sense of responsibility against the collection of
taxation, and make a living out of such
practices.
The capital market.—The tension in the
German capital market increased still further
during the year under review. There was a
marked decline in the ability of the market to
absorb capital issues. The volume of public
loans and issues of mortgage bonds diminished;
considerable amounts of public issues could not
be placed at all, and the interested parties were
obliged, in order to support the quotations,
to}'take large blocks off the market without
even then being able to accomplish their
purpose. Quotations on the stock exchange
fell almost uninterruptedly. Mortgage bonds
were so depressed that the placing of mortgages
at tolerable interest rates was practically
impossible. For industrial concerns also it
was generally impossible to raise capital by the
issue of shares or bonds. Rates of interest in
the German capital market rose continuously,
and are now, as formerly, far in excess of the limits which can be borne by an industrial country
which has international connections and is
dependent on the formation of capital. The
average yield of fixed interest-bearing securities at 8 per cent or less quoted on the Berlin
Stock Exchange rose from 8.02 per cent at the
end of 1928 to 8.42 per cent at the end of 1929.
The financial difficulties of the Reich and of a
large number of German municipalities at the
end of the year showed that the highly precarious system of meeting long-term capital
commitments over considerable periods of
time by the provisional contraction of shortterm debts had reached a point at which it
was no longer practicable.
In proportion as foreign financial capital
ceased to be available to Germany in the form
of long-term loans, the dependence of German
industrial concerns on foreign industrial capital
increased. Purchases by foreign countries of
German shares through the medium of the
stock exchange were replaced to an increasing
MAY,
1930
extent by special contractual participations
in German enterprises. As a result of this
development, any estimate of the undoubtedly
large volume of foreign capital which found its
way into Germany during the past year is
even more difficult than it was in previous
years.
The Reichsbank as the currency institution
which finances short-term credit is, in the nature of things, limited in the amount of support it can give to the capital market; so that
the not inconsiderable extension of the list of
securities eligible as collateral for lombard
loans, as well as other facilities accorded lombard transactions, can be of little practical
significance.
Proposed changes in the Reichsbank law.—
In connection with the proposed reparation
settlement, a revision of the Reichsbank law
has also been under discussion. The changes
proposed take account of the situation created
by The Hague agreement, while certain other
provisions of the law are adjusted to requirements which have in the interval made themselves felt. The fundamental principles of the
present law remain unchanged; and in particular the independence of the Reichsbank is still
further secured. Special mention should be
made of the new proposals respecting distribution of profits, which are included in the
other provisions for amendment to be presented
to the general meeting for its approval. The
arrangement contemplated in the Dawes plan
and incorporated in section 37 of the bank law
of August 31, 1924, was based on the assumption that it would be desirable to increase the
capital of the Reichsbank to 400,000,000
reichsmarks ($95,280,000), or at least to an
effective amount of 300,000,000 reichsmarks
($71,460,000), and to draw on the foreign
capital market for the purpose. Neither step
has been necessary. The Reichsbank has been
able to manage hitherto with the capital which
it acquired through consolidation of its old
shares and the transfer to it of shares, of the
Golddiskontbank and other institutions. While,
therefore, it seemed only reasonable in connection with the new reparations plan—which
imposes extremely heavy commitments on the
Reich—to modify an obviously unfair distribution of profits based on incorrect assumptions, it was impossible to ask the shareholders
to agree to such a change without the offer
of a suitable equivalent. Improvement in the
position of the Reich is assured by the following arrangement: After payment of a minimum
dividend of 8 per cent to the shareholders the
MAY,
301
FEDERAL RESERVE BULLETIN
1930
distribution of the remaining profits will be BALANCE SHEET OF THE GERMAN REICHSBANK AS OF
DECEMBER 31, 1929—Continued
changed in such a way that of the first 25,000,000 reichsmarks ($5,955,000) the Reich will
ReichsDollars
receive. 75 per cent and the shareholders 25 per
marks (In [ (in thouthousands)
sands)
cent; of the next 20,000,000 reichsmarks
($4,764,000), the Reich will receive 90 per cent
RESOURCES—continued
and the shareholders 10 per cent; of any surplus still remaining, the Reich will receive 95 Loans against collateral (lombards), viz:
Loans against gold and silver (sec. 21, 3a, of
per' cent and the shareholders 5 per cent.
the bank law)
1
Loans against securities (sec. 21,3b, c, d, of the
The general meeting will be asked to agree to
bank law)
166,667
39,700
this proposal, subject to the provision that
Loans against bills (sec. 21, 3e, of the bank
law)
32,878
7,832
shareholders shall be entitled, gratis, out of the
Loans against goods (sec. 21, 3f, of the bank
law)
1,170
279
reserves of the bank, to a £10 Golddiskontbank
Loans against long term obligations of the
share and a new Reichsbank share of 100
Reich (sec. 21, 3, par. 2, of the bank l a w ) . . .
27,434
6,535
Loans against treasury bills of the Reich (sec.
reichsmarks (both with dividend as from Jan21, 3g, of the bank law)
_
_
5,355
22,480
uary 1, 1930) in respect of every four old shares
250,630 j
59,700
of 100 reichmarks each.
93,292
Securities owned
_
i
22,222
The capital of the German Golddiskontbank Doubtful
9,779
assets
12,329
30,000
and buildings
_
\
7,146
will be paid up in full before this arrangement Land
Claims resulting from the settlement with the j
is put into effect, so that in future it will have Reich
108,914
_
_!
i
at its disposal a share capital of approximately Miscellaneous:
583
Bank notes no longer fit for circulation
.;
claim on the German Rentenbank I
200,000,000 reichsmarks ($47,640,000) and re- Postponed
in virtue of section 11, 4 of the law of Aug.
serves of approximately 50,000,000 reichsmarks
30, 1924, for the liquidation of Rentenbank j
70,082
16,694
notes in circulation
...
($11,910,000). These resources offer a practiClaim on the German Rentenbank in respect i
of the Rentenbank notes withdrawn from j
cal basis for the resumption and extension of its
circulation and placed under earmark for
activities in the financing of exports, and justify
the amount of the above-mentioned claim j
70,082
16,694
of
the Reichsbank
j
the expectation that even after the abolition—
20,038
4,773
Credit balances with postal check offices
I
140,842
33,549
Other claims
!
contemplated in connection with the revision of
banking legislation—of the present privileged
301,628
71,848
position in regard to taxation, of the cumulative
Total resources...
dividend, and of the share of the Reich in the
profits, a reasonable return on the share capital
6,413,975
will be earned. In any case the resumption of a Total bank-note issue
755,170
dividend payment is proposed for the year 1930. Credit balances of giro and current accounts
!
!
BALANCE
SHEET OF THE GERMAN REICHSBANK AS OP
DECEMBER 31,
1929
ReichsDollars i
marks (in (in thouthousands) sands)
RESOURCES
Reichsbank shares not issued.,
•Gold, not under lien (gold bars, domestic and foreign, coins):
I n the cash offices of the bank
With foreign central banks of issue
Cash balances:
Subsidiary coin
_
__
__
Rentenbank notes
Reichsbank notes
Notes of German private banks of issue.
Credit balances in foreign currencies (of which the
equivalent of 401,043,000 reichsmarks was assigned as cover for the notes in circulation)
Foreign n o t e s . . .
_
Foreign bills and checks..
Domestic bills and checks:
Treasury bills of the Reich.
Other domestic bills and checks. _
Domestic bills negotiated
_
Silver
177,212
42,212
2,133,329
149, 788
508,159
35, 680
2, 283,117
543,838
89, 111
9,616
1,369, 716
3,979
21,226
2,291
326,266
948
1,472,422 i
350,731
413,234 i
2,544 [
396,453 !
98,432
606
94,435
240,690 !
2,212,479 i
57,332
527,012
332
Original capital:
Shares issued
Shares not yet issued
Legal reserve fund (including transfer from net
profits of the year 1929).—
Reserve for pensions, etc
Reserve for probable losses (including 15,000,000
reichsmarks transfer from gross profits of the
year 1929)
Reserves for —
Printing of new notes
New buildings
Increase of original capital
Special reserve fund for future payments of div
dends
_
Miscellaneous:
Interest on bills due in 1930
Dividends due but not yet paid
_
Rentenmark sinking fund
Dollar treasury notes of the Reich to be redeemed by the Reichsbank
_
Liabilities in foreign currencies
Other book debts
Net profits for the year 1929
Less 20 per cent assigned to the legal reserve
fund
Contingent liabilities resulting from negotiated
domestic bills
29,248
42,212
300,000
71,460
53,915
80,000
12,843
19,056
90,000
21,438
35,000
35,000
31,000
8,337
8,337
7,384
101,000
24,058
45,811
10,912
11,043
171
17
279
197
120,676
66
47
28,745
132, 383
31,534
25,589
6,095
5,118
1,219
20,471
4,876
7,992,726
1,903,867
79
Total liabilities..
* Conversion at par: 1 reichsmark=$0.2382.
122,788
177,212
302
FEDERAL RESERVE BULLETIN
MAY,
1930
ANNUAL REPORT OF THE BANK OF JAPAN
The annual report of the Bank of Japan for
1929 was submitted to the general meeting of
shareholders on February 15, 1930. The
address of Mr. Hisaakira Hijikate, governor of
the bank, is given herewith:x
Business conditions during the past year, as
in the preceding year, were characterized by
slackness. Foreign trade was from the beginning distinctly unfavorable; the exchanges followed a downward course, while the question
of the removal of the gold embargo remained
undecided. The depression became even more
pronounced in the latter half of the year, when
the new Government, on coming into power,
made the restoration of the gold standard one
of its cardinal policies. In order to insure the
attainment of the goal, the Government effected
a retrenchment and economy in public finances,
endeavored to check fresh expansions of national
and local government debts, and inculcated
thrift and economy in consumption upon the
nation. In deference to the Government's policy, which gradually assumed a definite shape,
business and industry were induced to adopt
a more cautious attitude. Commercial transactions were further held up. In various
branches of industry production was limited or
subjected to further curtailment, promotions
or extensions of business enterprises were conspicuous by their decline, and commodity and
share prices moved to lower levels.
Meanwhile, under the influence of economy
in consumption and expectations of an early
removal of the ban on the export of gold, foreign trade showed a falling off in imports and
an advance in exports, which resulted in an
improvement in the country's position in international payments. The exchanges also began
to take a sharp upward turn. Whereupon, with
a view to mitigating the effects upon business
of a violent advance in exchange rates and to
replenishing its holdings of foreign funds in
connection with the return to the gold standard,
the Government proceeded to purchase foreign
exchanges. Moreover, the Yokohama Specie
Bank, assisted by the Government and this
bank, established credits in London and New
York to the extent of 100,000,000 yen ($49,850,000). While these preparations were in
progress, it so happened that money rates in
foreign countries began to take a downward
course. The conditions both at home and
i Official English version, published (in abridged form) by the Bank
of Japan. In addition to the address of the governor, the report contains numerous tables showing the condition and operations of the bank.
For earlier reports see FEDERAL RESERVE BULLETIN, April, 1929;
May, 1928; 1927; June, 1926; etc.
abroad showing favorable development, the
Government announced on November 21, by
an ordinance of the Finance Ministry, the repeal
of the ordinance regulating gold exports, to
take effect on January 11, 1930. Thus was
solved the long-standing problem of the removal
of the gold embargo.
Money market.—The money market displayed a growing tendency toward relaxation
from the beginning of the year under review:
Overnight loans were obtainable in Tokyo, in
the middle of January, at as low as 0.4 sen per
diem (1.46 per cent per annum), with other
rates showing an equally easy trend. Consequently, the associated banks in Tokyo and
Osaka lowered in February their rates of
interest on deposits to 4% per cent per annum
in respect of fixed deposits with the class A
banks and to 5 per cent on those with the
class B banks, the banks at other centers
following suit. The reduction in the rates of
interest on deposits had the effect of hastening
a decline in loan rates. The share market,
however, was extremely wary and inactive,
owing to the uncertain outlook on the goldembargo situation. Interest seemed to center
in debenture issues. As the terms of issue
became more favorable to the borrowers, the
refunding of old loans at lower rates of interest
was undertaken to a large extent, thereby
serving in no small measure to improve the
position of industrial establishments. The
activity in corporation debentures, however,
did not last beyond the month of May, so that,
whereas the total amount of debentures issued
during the first six months reached 690,000,000
yen ($343,965,000), the figure fell away in the
latter half year to 350,000,000 yen ($174,475,000), or about one-half. The business in
Government bonds was likewise inactive
throughout the year, and with the approach of
the embargo removal the weakness in the share
market was more in evidence. The commercial
transactions in seasonal goods were also limited
to immediate requirements. This, combined
with declines in commodity prices, resulted in
an extreme slackness in the movements of
funds. Bank clearings reflected the situation.
The aggregate of clearings at all clearing houses
during the past year, amounting to 63,100,000,000 yen ($31,455,350,000), shows a decrease of
5,300,000,000 yen ($2,642,050,000), compared
with the preceding year. The keen anxiety
manifested by bankers during the first half year
to seek employment in short loans for the funds,
which had accumulated as the result of their
MAY,
1930
FEDERAL RESERVE BULLETIN
calling in long-term credits and their reluctance
to furnish them, was intensified in the last
half year. The proceeds of the foreign exchanges purchased by the Government increased
the already abundant supplies of funds on
bankers' hands, so that the treasury bills to
the amount of 35,000,000 yen ($17,447,500)
offered in October were sold out on the day of
issue.at the rate of 1 sen per diem (3.65 per
cent per annum). Discount rates likewise
showed an easing tendency all through the year.
Commercial paper, which was quoted in Tokyo
earlier in the year at 1.6-1.7 sen, (5.84 per cent
to 6.24 per cent per annum), ruled after
August at 1.5 sen. Overnight money did not
rise above 1.5-1.6 sen (5.51 per cent to 5.84 per
cent per annum) even at the time of year-end
pressure and the turn of the year passed quite
easily.
Central bank credit.—Turning now to a
consideration of the bank's business, we observe
a gradual decrease in the loans and discounts
due to repayments of special advances made
under the indemnity act and other loans, the
total amount of advances outstanding in the
middle of December receding to 684,000,000
yen ($340,974,000). As the year-end requirements for currency were largely met out of the
bankers' deposits with us, our advances, after
rising for a time to 748,000,000 yen ($372,878,000), decreased on December 31 to 679,000,000 yen ($338,481,500), of which 598,000,000 yen ($298,103,000) represented the advances under the indemnity act. Of the
deposits with the bank, although Government
deposits showed on the whole a decrease, the
superabundance of funds in the market caused
private deposits to be maintained at substantial figures throughout the year, with monthly
averages ranging between 258,000,000 yen
($128,613,000) and 352,000,000 yen ($175,472,000). Even at the year end the figures
did not fall below 152,000,000 yen ($75,772,000). The increase in private deposits and the
repayment of advances caused a contraction
in the bank-note circulation, the monthly averages of the note issue ranging between 1,191,000,000 yen ($593,713,500) and 1,396,000,000
yen ($695,906,000). The amount outstanding
on December 31 was 1,641,000,000 yen ($818,038.500), showing a decrease of;97,000,000 yen
($48,354,500) in comparison with a year ago.
As regards the special advances made by the
bank in respect of the earthquake bills, we received between December, 1927, and February,
1929, by which latter date a complete settle-
303
ment of the account was effected, indemnification from the Government according as our
advances were recognized as losses. The entire
amount so received was in the form of Government bonds aggregating 99,000,000 yen ($49,351,500) in all.
Government issues.—The amount of Government bonds issued during the past year,
excluding rice-purchase notes and treasury
bills, totaled 441,000,000 yen ($219,838,500),
against repayments of 335,000,000 yen
($166,997,500), leaving a net increase in
national debt of 106,000,000 yen ($52,841,000).
Of the entire issues only 271,000,000 yen
($135,093,500) of conversion loans were offered
to the public. The new issues of 169,000,000
yen ($84,246,500), with the exception of the
portion subscribed for by the treasmy deposit
bureau, were delivered to the various Japanese
banks in connection with the readjustment of
their loans to the Chinese Government or used
in payment for the purchase of private railways
and for other purposes. Of the amount repaid,
260,000,000 yen ($129,610,000) were retired
upon maturity, while 74,000,000 yen ($36,889,000) were purchased by means of sinkingfund operations.
International developments.—Turning to
conditions abroad, in the United States the
phenomenal prosperity that marked the preceding years continued in the past year. The
speculative enthusiasm in the stock markets
attained an excessive intensity and created an
extraordinarily strong demand for funds.
Money rates, in consequence, rose higher and
higher, and there was a continuous efflux of
European funds to New York, resulting in a
sympathetic rise in rates in the financial centers
of the world. However, with the spectacular
reaction that occurred late in October, more
normal conditions obtained in the United States
and money rates in the European markets also
tended to lower levels, a development quite
favorable to the removal of the gold embargo
in this country.
The international conferences that were held
in Europe did much toward the settlement of
the German reparations problem, bringing
about a brighter economic outlook in that part
of the world. Still, the general situation in
Europe was one of continued depression.
Although the boycott of Japanese merchandise
in China practically subsided, the political unsettlement in that country, combined with the
slump in the price of silver, had a diminishing
effect on the purchasing power of the general
304
FEDERAL RESERVE BULLETIN
public. In India, Australia, and the South
Seas conditions were not wholly satisfactory
as a result of decreased agricultural crops or
of declines in their prices. Nevertheless, our
exports to those quarters increased more or less
owing to peculiar market conditions obtaining
there.
Foreign trade and foreign exchange.—The
feature of the foreign trade of this country was
a great rush of raw-cotton imports in the first
six months, which was largely responsible for
the excess of imports over exports during the
period, amounting, in respect of Japan proper,
to 282,000,000 yen ($140,577,000). In the
latter half, however, each succeeding month
showed a substantial excess of exports, so that,
taking the year as a whole, the import balance
was reduced to 67,000,000 yen ($33,399,500).
The returns for the whole country, including
Chosen and Taiwan, showed exports valued at
2,217,000,000 yen ($1,105,174,500) against imports of 2,388,000,000 yen ($1,190,418,000).
The net import balance of 171,000,000 yen
($85,243,500) showed a decrease of 163,000,000
yen compared with the corresponding figures
for the preceding year, and was the lowest
recorded in the postwar period.
The foreign exchange rate followed a downward trend from the beginning of the year,
reflecting the unfavorable condition of trade
iri the first half-year. The Yokohama Specie
Bank's rate on New York, which was quoted
early in the year at $46, fell away by the end of
June to $43.75, a decline of $2.25. The practical
measures taken in furtherance of the Government's policy of the return to gold, together
with the improvement in our trade position,
brought about a rally in the exchange, which
steadily rose from July, until $48,625 was
reached on November 21, the day of the
announcement on the removal of the embargo.
Further advances brought the rate by the end
of the year to $49, showing a gain of $5.25
since the end of June when the lowest point in
the year was touched.
Restoration of the gold standard.—It will be
seen from the above that the latter half of the
past year saw the efforts for the restoration of
the gold standard brought to fruition. If the
depression in business was somewhat deepened
in the course of the attainment of that object,
it is highly gratifying that, thanks to the
measures taken by the Government and the
cooperation of the public at large, this great
problem has finally been solved without any
disturbing effects. The removal of the gold
M A Y , 1930
embargo, however, marks merely the first
step in the return to normality of our economic
activities. The healthy unfolding of national
resources under a full gold standard can come
only through the continued exertions of the
nation in the future. The development of
industries and the expansion of foreign commerce are the urgent needs of the country. It
devolves upon this bank, as its essential function, to meet the monetary needs of the community, while at the same time so regulating
and controlling the circulation of money as
to insure the stability of the currency system.
We shall, accordingly, be guided by these
considerations in determining the discount
policy and other measures to be pursued by
this bank; and it is important that we extend
credits only where liquidity is assured and
strictty refrain from making such advances as
would tend to tie up our resources. For my
part, I shall do my best in conducting the bank's
affairs in accordance with these principles.
BALANCE SHEET OF THE BANK OF JAPAN AS OF
DECEMBER 31, 1929
RESOURCES
Advances to Government ^art. 2, bank-note act)...
Advances on foreign bills
Bills discounted
_
Bills discounted (law No. 55 of 1927)
_.
Deposits with other banks
j
Government bonds.
|
Gold and silver bullion
\
Agencies accounts
_
_
j
Agencies accounts, specified
_
Foreign agencies accounts
_J
Suspense payments
_
_
!
Bank premises
__
_
I
Capital unpaid
!
Redemption fund for fiactional Government
notes as pei contra
Cash items on Government account
Cash on hand
22,000
30,033
51,475
598,180
36,993
221,979
819,447
22, 500
10, 967
14,971
25,660
298,193
18,441
110,C57
408,494
12,933
2,307
120,125
219
2,357
11,216
12,085
49,840
289,628
6,024
24,845
144, 380
25,943
4,627
240,973
439
4,729
Total resources
], 211, 789
LIABILITIES
Notes issued
1, 641,852
Redemption fund foi fractional Government
12,085
notes
392,096
Government deposits
_.
100
Funds for the payment of mint certificates
140, 561
Current accounts
11,530
Remittances
3
Due to other banks
67,754
Suspense receipts
2,637
Reserve for taxes
60,000
Capital subscribed
91,765
Reserve fund
615
Reserve against depreciation of bank premises
4
Dividends unpaid
_
_
_
4,916
Profit brought forward from last half year
4,952
Net profit for the current half year
Total liabilities
* Conversion at par: 1 yen=$0.4985.
2,430,871
818,463
6,024
195,460
50
70,070
5,748
1
33,775
1,315
29,910
45,744
307
2
2,451
2,469
1,211,789
MAY,
FEDEKAL EESERVE BULLETIN
1930
305
ANNUAL REPORT OF THE NATIONAL BANK OF SWITZERLAND
The annual report of the Swiss National Bank
for 1929 was submitted to the meeting of stockholders on January 22, 1930. The full text of
the report, with the exception of paragaphs
dealing with the branches of the
bank and with
personnel, are given herewith.1
Currency situation since 1914.—In decreeing
on July 30, 1914, that notes of the Swiss National Bank should be inconvertible and accepted as legal tender the Federal Council was
exercising powers conferred upon it by the bank
law. This decree still remains in force, although
the circumstances under which it was legally
permissible—i. e., "emergency in time of
war"—have long since ceased to exist. An increasing body of opinion demands the removal
of this decree, which is contrary to the law and
no longer justifiable. The situation inr Switzerland and in other countries, how ever, has
undergone great changes; so many countries
have reformed their currency by establishing
or preparing for a return to the gold standard
that a simple repeal of this decree is not sufficient. Its mere repeal would reintroduce the
legislative provisions in force before 1914,
which required that the reserve should consist
of "gold or silver coin having the quality of
legal tender or a value recognized by legal
convention, but exclusive of silver fractional
currency and foreign gold coin and bullion";
and that bank notes should be redeemable
"in lawful money."
Proposed amendments to bank law.—The
dissolution of the Latin Monetary Union has
enabled Switzerland to inaugurate a truly
national currency system under which foreign
gold coin and 5-franc silver pieces, formerly
circulating in the country and recognized as
currency either by law or agreement, have
finally lost their legal-tender quality. This
state of affairs made it necessary that our
banking law should be amended at the same
time at which the exemptions of the bank in
respect to note redemption were to be repealed.
A small commission of experts, summoned in
January by the Federal Department of Finance to study the problem of currency reform,
adopted the solution which was under consideration by the Department of Finance and the
bank of issue, namely, to change from bimetallism to gold monometallism; thereupon the
banking authorities w^ere able to finish their
1
In addition the report contains details of bank operations, tables,
and discussion of financial conditions, gold movements, etc., in other
countries. For earlier reports see FEDERAL RESERVE BULLETIN, April,
1929, 1928; March, 1927; April, 1926, etc.
preliminary draft of a bill amending the bank
law and adapting it to new conditions. These
proposals, approved on March 2, 1929, by the
general assembly of shareholders of the bank
and transmitted to the Federal Assembly,
were made the subject of a message and a bill
submitted to the houses of Parliament by the
Federal Council on October 8, 1929. This
bill was debated and approved without delay
in the December session. This decree bears
the following title: "Federal law of December
20, 1929, amending the Federal law of April 7,
1921, in re the Swiss National Bank." The
Federal Council at the end of three months
allowed for referendum will fix the date on
which the law shall become effective.
The new law modifies the organic law of
1921 only in respect to those points which are
incompatible with the introduction of gold
monometallism. Henceforward silver will no
longer be eligible as metallic reserve. There
will be no mention of it in article 19 of the
bank law, which governs the reserve; accordingly the provision in article 19bis of the law
of September 27, 1923, authorizing the inclusion in the metallic reserve of 5-franc pieces of
the Latin Monetary Union which had been
withdrawn from circulation, becomes null and
void. The right—of which the bank had
never availed itself—to issue silver certificates,
as provided in article 14, is revoked. On the
other hand, article 19 introduces a new provision, which obligates the National Bank to
maintain a minimum reserve of 40 per cent
within Switzerland, which implies that any
part of the reserve in excess of 40 per cent
may be held abroad.
The revised law contains the following provisions for redemption of notes:
ART. 20. The National Bank is obligated to redeem
its notes on demand in Swiss gold coin—
(a) At its office in Berne, without limit as to amount.
(5) At its office in Zurich, as well as at the branches
and agencies administered by the bank, to the extent
that the reserve of coin and their own needs permit,
but in any event with no more delay than is necessary
to have specie brought from the head office.
The service of note redemption shall be organized
to meet the needs of the locality.
ART. 20bis. During such time as the banks of issue
of countries designated as important by the authorities
of the bank do not themselves redeem their notes in
gold coin, the bank shall have the right to redeem its
notes on demand in one or another of the following
forms:
In Swiss gold coin;
In gold bars, of the customary commercial weight
(about 12 kilograms) on the basis of mint parity;
In gold exchange (bank deposit or check); that is
to say, in exchange on countries having a free gold
306
rjEDERAL RESERVE BULLETIN
market. The rate of conversion of this exchange shall
be calculated on the basis of the exchange rate of
the foreign currency at the time of the transaction.
It shall not, however, in any case exceed the export
point for shipment of Swiss gold coin to the foreign
bank on which the draft is drawn. The selection of
the foreign currencies [in which redemption is to be
effected] is reserved to the National Bank.
Redemption shall be made—
In gold coin and gold bars, at the office in Berne
without limitation as to amount; at the office in
Zurich, and at the branches and agencies administered
by the bank, to the extent that the reserve
and their
own needs permit, but in any event writh no more
delay than is necessary to bring the metal from the
head office;
In gold exchange at any of the above-mentioned
offices of the bank, without limitation as to amount.
The service of note redemption shall be organized
to meet the needs of the locality.
In principle, article 20 provides that the
conversion of bank notes shall be made exclusively in Swiss gold coin, and thus implies that
gold will be put into circulation. For the present, however, the provision is important rather
as a goal to be achieved, because for practical
reasons its application must be deferred until
such time as those other countries w^hich are
financially important to us shall again have put
gold coin into circulation. It is impossible,
therefore, to fix the precise date on which it
will go into effect; until then the bank will
redeem its notes in accordance with the temporary arrangement provided in article 20bis.
In framing the amendment the question was
considered of retaining—in other words, of including permanently—in the banking law the
legal-tender status of notes of the National
Bank, established by the decree of the Federal
Council of July 30, 1914. According to article
30 of the Federal constitution and of article 22
of the bank law, such a measure can be decreed
by the Federal Council only in an emergency in
time of war. Inasmuch as a decision to make
this change would have required an amendment
to the Federal constitution, it seemed preferable to give it up in order to expedite the monetary reform. Thus from the time when the
amended banking legislation becomes effective,
inconvertibility and legal-tender quality will
both be abrogated, and the situation as provided for under the constitution will be reestablished.
Bank for International Settlements.—The
event which deserves first place in our discussion of business and finance is unquestionably
the creation of the Bank for International
Settlements. This institution, in addition to
playing a most important part in international
business, will also, being located in Swiss terri-
MAY,
1930
tory and closely related to our economic life,
become in many ways a factor of great significance to this country.
The International Bank, created for the
purpose of carrying out the reparation plan,
owes its origin to the postwar situation. The
Dawes plan of 1924—the first attempt to
liquidate the financial consequences of the war
on economic rather than on political considerations—was superseded provisionally on September 1 by the Young plan, as embodied in
the final report of the committee of experts
which met in Paris from February 9 to June 7
under the presidency of an American, Mr.
Owen D. Young. Their desire to substitute
for more or less political controls an organism
of economic and commercial character, and
their conviction that the management of
reparations would involve large financial operations, led the experts at once to envisage the
creation of an International Bank. They followed up this idea and stated their conclusions
in the final report mentioned above. In
August, after prolonged negotiations, The
Hague conference of representatives of the
various Governments concerned ratified the
Young plan in its essential particulars. Thereupon an organization committee met in Baden
Baden during October and November and drew
up the statutes and charter of the International
Bank, which w^ere approved in January by the
subsequent Hague conference. There, in accordance with the suggestion of the organization committee, the conference finally chose
Basel as the seat of the International Bank.
This choice may be regarded as proof of confidence in the political and economic situation of
Switzerland and in the soundness of its currency.
The idea of creating a special institution for
international settlements is by no means new;
it has been put forward in various forms during
the past decade. The extreme currency depreciation brought about by the war, as well as
the reciprocal indebtedness of the former belligerents, have strengthened the desire for international collaboration and have shown the
absolute necessity of cooperation between
banks of issue. The International Bank,
therefore, will not be restricted to the performance of its immediate task, namely, that of
administering the reparations plan; it will also
be called upon to promote cooperation between central banks. From this point of view
no slight importance attaches to the establishment of a system of clearings through transfers
of gold or foreign exchange. Besides the countries directly concerned in reparations, only
MAY,
1930
FEDERAL RESERVE BULLETIN
such Governments as have a currency which conforms to the practical requirements of the gold
or gold exchange standard will be allowed to
participate in the International Bank. Because
of this fact the bank will become the chief
support of gold monometallism and will contribute to stability of the exchanges.
Commercial treaties.—During the course of
the year Switzerland concluded a new commercial treaty with the Belgo-Luxemburg economic union, and a new treaty with Albania
regarding commerce and the right of domicile;
also the commercial treaty signed with Germany on July 14, 1926, has been put into effect.
The commercial agreement concluded in 1928
between France and Switzerland was superseded this year by a formal commercial treaty
covering the principal questions as to interchange of commodities and including the tariff
agreements in force up to that time.
Business conditions in Switzerland.—The
economic situation of Switzerland on the whole
was satisfactory. Toward the end of the year,
however, the effects of foreign developments—
the stock-exchange crisis in the United States,
overproduction in some countries, and the
sharp decline of prices on the international commodity markets—began to be felt in this
country, especially by some of our export industries. The number of unemployed was
less than that of the year before. Only a few
lines of business suffered from unemployment,
while in others there was at times a dearth
of skilled labor. Except for the ribbon industry and certain other branches of the textile
industries—embroidery in particular—which
showed a further decline in exports, the greater
part of our industries have been well employed,
particularly the metallurgical, electrical, and
chemical industries, the manufacture of machinery, and watchmaking for at least the first
three quarters of the year. The building industry, interrupted at first by the abnormally
long period of intense cold, became very active
later on. Weather conditions were favorable
to agriculture and grape growing, and the
harvests were abundant almost everywhere;
market prices, however, were generally lower
than had been anticipated. Nevertheless, the
remedial measures taken—the embargo on the
import of beef cattle, the increased tariff on
butter, and the final solution of the grain problem, which requires the Confederation to purchase grain at a price guaranteed by law—have
already had excellent effects and have somewhat relieved the situation of agriculture.
Even if the profits of the tourist industry fell
307
short of the expectations raised by the success
of the previous year, the total income from
this source will hardly be less than that of 1928.
Mountain railways have also made a good
showing. Our generally satisfactory economic
situation is clearly indicated by the increased
turnover of postal checks and the larger earnings of our transport companies. It may be
added at this point that the official cost-ofliving index fluctuated throughout the year
around 160 (June, 1914= 100). The fluctuations of the wholesale price index were kept
within a narrow range, the slight decline during
the summer months being compensated by a
corresponding advance in the months following..
Federal budget and public debt.—In 1928,
for the first time since 1914, the accounts of
the Confederation were closed with a surplus,
which amounted to 23,700,000 francs ($4,574,100). It is expected that, owing to the excellent economic situation, the year 1929 will show
a no less satisfactory outcome, since customs
receipts, stamp duties, and the revenues from
Federal undertakings exceed those of the previous year. It should be noted, however,
that the close relationship between State
finances and economic conditions presents a
certain amount of danger, and that the advice
of the Federal Council to keep down expenditure is thoroughly sound. The efforts directed
toward the amortization of the large public
debt were also fully justified and will relieve
future generations of a heavy burden. The
funded debt of the Confederation reached its
highest point in 1924 and at that time amounted
to 2,200,000,000 francs ($424,600,000). At the
end of 1928 it had been reduced to 1,987,000,000
francs ($383,491,000), and during the past
year was still further reduced to 1,885,000,000
francs ($363,805,000), as a result of systematic
amortizations and of the repayment of the
5K per cent American loan of $30,000,000
floated in 1919, of which 94,000,000 francs
($18,142,000) remained at the end of 1928.
The bank obtained the dollars required for
this repayment at an average rate of 5.1825
francs per dollar—that is, at about parity—
although at the time the loan was floated the
dollar was quoted at 5.70 francs per dollar.
Even allowing for the discount at which the
loan was issued, the Confederation has realized
a profit of about 7,800,000 francs ($1,505,400).
The payment was made without floating any
new loan, while as a result of the preparations
taken by the Confederation and by the bank
it caused no disturbance on either the money
or the exchange market.
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FEDERAL RESERVE BULLETIN
Swiss railways.—By the Federal decree of
June 26, 1929, a grant of 35,000,000 francs
($6,755,000) will be made at the beginning of
1930 to the State railways in compensation for
the extraordinary services which they rendered
the Confederation during and after the war.
This grant will further strengthen their financial situation which made satisfactory progress
during 1929 in spite of the fact that on August
1 they reduced freight charges—a measure
which proved helpful to business. It should be
remembered, however, that the very growth in
transportation which produced an increase in
revenues necessitates larger operating expenditures (laying double tracks, improvement of
railway stations, purchase of rolling stock,
increase of personnel). Hence it is necessary to
continue to administer this enterprise with
a strict regard for economy. In this connection it should be noted that the index of railway operating costs has been reduced to the
pre-war level.
The finances of the cantons and communes
also benefited from the economic situation.
All the cantons except two closed their 1928
accounts with a surplus.
The capital market.—The volume of Swiss
loans floated in our capital market amounted
to 248,000,000 francs ($47,864,000), as against
55,000,000 francs ($10,615,000) in 1928. In
round figures, 100,000,000 francs ($19,300,000)
w^ere for account of banks, and 100,000,000
francs ($19,300,000) for account of other
financial institutions and electric companies.
On the other hand, neither the Confederation
nor the State railways had recourse to the market, while the cantons and communes had to
cover requirements slightly in excess of those of
the preceding year.
The cantons were able to float their loans
successfully at an interest rate of 4% per cent
and an issue price slightly below par. The
average yield of five of the principal obligations
of the Confederation varied between 4.50 and
4.70 per cent. The continued demand for
these securities by foreign as well as Swiss
investors brought about a slight decline in the
yield, especially toward the end of the year.
Throughout 1929 almost all the great banks
issued their certificates at 5 per cent. On the
other hand, banks in the cantons obtained
sufficient funds until autumn on offer of 4%
per cent and were generally able to maintain
this rate throughout the year. In the autumn
increasing requirements induced some establishments to offer 5 per cent and occasionally h}{ per
cent. The crisis on the American stock exchange and its consequences brought into our
MAY,
1930
short-term money market later on a great
abundance of liquid funds, which at length
influenced the capital market also, so that
toward the end of the year several banks were
able to obtain a reduction in the rate of interest
on their certificates. In general, the rate of
interest on old mortgages remained unchanged,
whereas for new mortgages a somewhat higher
rate had to be paid.
In this connection it should be stated that
during the past year further progress was made
toward the creation of the Federal mortgage
bond (lettre de gage). The outline, drawn up
by the Federal Council, of a Federal law governing the issue of mortgage bonds was thoroughly debated and accepted by the National
Council which, in all essential points, agreed
with the conclusions adopted the year before by
the Council of the States. The National Bank
now takes great satsifaction in being able to
report that the two chambers have adopted the
proposals which the bank submitted in a report
in January, 1929, at the request of the mortgage bond committee of the National Council.
The chambers decided that two central mortgage bond bureaus should be established, one
for banks in the cantons, and one for the other
banks. At the same time the National Council
approved the plan for revision of the bank law
to permit the National Bank to receive subscriptions to the bonds of the central mortgage
bond bureaus.
Domestic stock issues amounted to 508,000,000 francs ($98,044,000), as against 282,000,000 francs ($54,426,000) in 1928. These
figures, however, include issues in the amount
of 191,000,000 ($36,863,000) francs—as compared with 10,000,000 francs ($1,930,000) in
1928—which were not offered for subscription
except as they were admitted to listing on the
Swiss stock exchange, and hence do not represent a fresh demand for capital to their full
amount. Two of the great Swiss banks have
increased their share capital so that the aggregate capital of the eight great banks, including
also their declared reserves, has increased to
more than 1,100,000,000 francs ($212,300,000),
and constitutes approximately 45 per cent of
the aggregate capital and reserves of all the
Swiss banks. The trust companies and holding
companies showed considerable expansion
both
through the organization of newT companies,
and through capital increases which, during
the first half year, amounted to 460,000,000
francs ($88,780,000). At the end of June these
societies held about one-third of the aggregate
share capital of Swiss enterprises—that is,
about 2,400,000,000 francs ($463,200,000).
MAY,
1930
FEDERAL RESERVE BULLETIN
309
The demand made on the Swiss capital mar- diminishing the purchasing power of many
ket by foreign borrowings amounted to about classes they created a situation which made it110,000,000 francs ($21,230,000)—slightly larg- self felt even in Switzerland. Later on the
er than that of the previous year, but not such stock exchange crisis led to an abundance of
as to create any difficulty in meeting domestic funds and a lowering of money rates. Funds
capital requirements. In the first months of the previously employed in the New York stock
year these issues followed one another in some- exchange were now set free and flowed not
what too rapid succession and, together with only into the market there but also into the
foreign short-term loans floated in this market, short-term markets of Europe, so that a numbrought about an advance in foreign exchange ber of central banks were able to reduce their
rates. It became advisable, therefore, to discount rates, some of them more than once.
separate offerings of foreign loans by a specified
The Swiss money market.—The Swiss money
length of time, as is done in the case of Swiss market was not wholly unaffected by the interbonds. The "gentlemen's agreement" ob- national situation. During the first half year
served by the great banks with the National the raising of interest rates abroad, the withBank since 1925 was continued during the past drawal of funds invested in Germany, the diffiyear, and the bank of issue was always advised culty of floating German loans in America—all
in advance of any contemplated issue of foreign pressed heavily on our market, but it was the
loans.
influence of Germany which was felt most.
The international money market.—The in- The withdrawal of a large part of our available
ternational money market was disturbed by a funds to those foreign centers where interest
number of events. For some time it was the rates were high produced a stringency in the
problem of reparations which influenced the Swiss market. The directors of the bank were
various markets, but the most important factor thus faced with the question whether they
was the feverish speculation which prevailed on should yield to this pressure from abroad, which
the New York stock exchange and at length would necessitate an advance in the official
spread to the stock exchanges of other coun- bank rates and therefore a general advance in
tries. It was sustained by the unbounded* interest rates; or whether they should try to
optimism which the expansion of commerce maintain the existing lower rates for the beneand industry inspired, and it was further fit of domestic business. They decided that
strengthened by a liberal credit policy. It is there was no justification for the unrestricted
true that America gave evidence of extraordi- admission of foreign bills to discount in Switzernary prosperity, but the price of shares was land, and that foreign bills, to be eligible for
completely out of line with their yield. To discount at the bank, must represent an actual
finance the speculation in securities the New import of commodities into Switzerland,
York stock exchange drew an immense volume Otherwise the bank of issue would have allowed
of funds from abroad. The Federal reserve foreign enterprises, in many cases competing
banks, recognizing the unsoundness of this with our own, to profit unduly by use of its
position, tried to check speculation by various credit at a favorable discount rate. Nor did
means. But their form of organization under the bank confine itself to applying the restricthe law made it impossible for them to take tion already in effect, which limited the maany effective action in the money market, and turity of these bills to 20 days. It decided that
furthermore their efforts were counteracted by foreign documentary bills and acceptances as
the activity of the private banks. The exces- well as finance bills, either Swiss or foreign,
sive speculation was bound to result in a crash. should be accepted only in limited amounts
Toward the end of October the long expected and together with Swiss paper eligible for discrisis broke and assumed proportions such as count. The bank also tried to put its credit
the stock exchange had never before known. so far as possible at the disposal of Swiss imThe irresistible upward movement was sud- porters and exporters, and especially, whendenly succeeded by a wave of pessimism which ever the transactions were plainly of a comcaused a huge volume of distress selling and a mercial character, to enable them, by discollapse in prices. This sudden change affected counting directly with the bank, to take adforeign bourses more or less severely. The , vantage of its low discount rate. The bank
fears that a stock exchange crisis might react continued to apply to discount operations the
adversely upon commerce and industry, and conditions which it laid down in 1924. These
even the entire economic life of the country, measures, which became still more effective
were fully realized. The repercussions of the following the reduction of the foreign credit
crisis were not confined to America; for by operations of the banks, accomplished the de-
310
FEDERAL RESERVE BULLETIN
sired result. From the middle of August,
therefore, the bank was able to liberalize its
restrictions in respect to foreign documentary
bills, acceptances, and finance bills which might
be included in the offerings submitted for discount.
Stock exchanges.—The international stock
exchange crisis caused some disturbance on the
Swiss exchanges; the index of industrial shares,
for example, declined from 246 to 212. The
liquidation of loans on foreign stock exchanges,
however, and the reduction of short-term investments abroad brought some relaxation in our
money market. The economic situation of
other countries led to a renewed inflow of funds
into Switzerland, which created a strong demand for securities, especially bonds of the
Swiss Confederation, and hence, an advance in
the index of securities. As, on one hand, funds
flowed into the market and, on the other hand,
the demand for short-term funds was not
large, the private discount rate showed a declining tendency during the last weeks of the
year. In 1929 the margin between the official
and the private rate of discount averaged 0.19
per cent as against 0.17 per cent in 1928.
Compared with those of other countries, the
private rate of discount in Switzerland was
lowest of all, the average for the year being
3.31 per cent.
Discount rates.—The official discount rate
was unchanged at 3% per cent, that for advances on collateral at 4K per cent. The efforts
of the bank to reduce those advances on collateral which had in effect become long-term
loans were carried on successfully.
The
amount of loans on collateral showed a moderate decline while at the same time the number
of transactions increased, which indicates
greater liquidity and activity in lombard
loans.
The official discount rates of the principal
financial markets, in comparison with the Swiss
rate, show the following yearly averages:
1929
Switzerland..
France
England
Germany
Belgium
Netherlands.
Austria
Italy
Spain..
Sweden.
New Y o r k . . .
1928
Per cent Per cent
3.50
3.50
3.50
5.52
5.50
4.50
7.12
7.00
4.35
4.25
5.13
4.50
7.37
6.27
6.79
5.95
5.50
5.02
4.74
4.01
5.15
4.51
MAY,
1930
Foreign exchanges.—The Swiss franc remained firm throughout the year under review,
although the discount rate of the National Bank
was low compared with that of other countries.
It is true that at the beginning of the year
heavy demands for foreign exchange (during
the first two months the bank was called upon
to deliver 160,000,000 francs) caused the franc
to decline slightly below dollar parity; but the
depreciation never exceeded 0.32 per cent.
During the spring the bank was able to
strengthen its portfolio of foreign bills, and the
position of Swiss currency in respect to the
dollar improved steadily. This improvement
continued until, in the summer, a revival of
activity abroad on the part of the Swiss banks
created a new demand for foreign bills and
brought about a slight, temporary advance in
the exchanges. The situation in the exchange
market, however, suddenly became very different following the crisis on the American stock
market, which reacted on the principal currencies, so that the National Bank was shortly
able to purchase foreign bills at a lower rate.
During this period, except for scattered transactions, no imports of gold worth mentioning
took place, for the reason that in Switzerland
minting of gold coins is subject to a tax and
that the bank, by purchasing foreign bills, anticipated imports of gold; in other words, the
bank never permitted the foreign exchanges to
decline to the effective gold import point to
Switzerland. The Swiss franc at length rose
to a premium over all the other exchanges.
Disapproval of term " Swiss gold franc/'—In
this connection the directors of the bank wish to
express their disapproval of the use of the expression " Swiss gold franc." In Switzerland the
difference in value between the bank note and
the coin has never been anything but temporary
and has practically not existed at all since the
autumn of 1925. In connection, however, with
recent foreign loans floated in Switzerland,
mention has been made from time to time of
the Swiss gold franc. The board of directors
would be greatly distressed if this term should
become established by use. The board contends that there is no reason for its existence.
In the opinion of the board there is only one
national Swiss monetary unit, the franc, which
in its metallic form is equal in value to a weight
of 0.3225806 gram of gold nine-tenths fine.
On the other hand, there is no place for a Swiss
gold franc, and if this expression is used, it does
not even mean a coin but a definite weight of
gold—that is to say, a payment in kind; a
MAY,
1930
FEDERAL RESERVE BULLETIN
payment in money, on the other hand, can be
made only in the currency unit of the country.
It is therefore much to be desired that at least
on the part of Switzerland such an interpretation of the gold clause should not be countenanced any longer.
Silver 5-franc coins.—In connection with the
revision of our currency legislation—still in
preparation—mention should be made of the
fact that the commission of experts, called together in January by the Federal department
of finance, was in all essential points in complete
agreement with the conference of August 16,
1928, on monetary circulation. The commission recommends that 5-franc silver pieces continue to be coined as subsidiary currency and
that their weight be reduced from 25 to 15
grams; this measure will obviate the need of
bank notes in smaller denominations than 20
francs. The other fractional coins will undergo
no change. The board of directors of the bank
agrees with the opinion of the commission.
Gold policy of the National
Bank.—The
bank has no reason to change the gold policy
which it has pursued for several years. It has
profited by the favorable position of the Swiss
franc to strengthen its metallic reserve by
exchanging for gold part of the foreign bills
brought to it. This policy seems advisable
in view of the fact that note circulation has
increased and that silver is to be taken out of
the reserve after the introduction of the gold
standard.
Note circulation.—During 1929 note circulation showed a further increase; the average
for the year rose to 856,000,000 francs ($165,208,000)' as compared with 818,000,000 francs
in 1928 and 799,000,000 francs in 1927; at the
end of the year the circulation amounted to
999,000,000 francs ($192,807,000), thus reaching
almost 1,000,000,000 francs for the first time
since 1921. During 1928 the increase in note
circulation was due entirely to the normal
development of business and the general situation of the country. During the past year, in
addition to these factors, it would seem that
the international situation has exerted no small
influence; as long ago as in the spring, but more
especially during the second half year, the
foreign demand for Swiss francs has tended to
increase our note issue.
Agreements for suppression
of counter-
feiting.—As we mentioned before in our
report for 1927, efforts have been made to bring
about international agreements for the purpose
of suppressing effectively the counterfeiting
of bank notes and coins. During the past year
these efforts have met with success. On the
311
basis of a preliminary report prepared by a committee of experts, an international conference
called together in April by the League of
Nations has worked out an international
convention for the suppression of counterfeiting. This convention was signed on April
20 by most of the Governments, including
Switzerland. The convention prescribes penalties for making and putting into circulation
counterfeit bank notes and coin and provides
that in prosecutions no distinction shall be
made between counterfeiting foreign or national
currency. Furthermore, the agreement contains a number of administrative provisions
which should assure prompt collaboration
between the police authorities and the banks of
issue. In signing this convention Switzerland
was unable to assume any obligation as to the
penal clauses of the convention, because the
question of the introduction of a unified penal
code in Switzerland is still unsettled. Nevertheless, the Federal council announced its
willingness to enforce the administrative provisions to the extent of its authority.
Reserves of the bank.—During the year the
position of the bank was still further strengthened. The aggregate reserve of gold and foreign bills averaged 781,000,000 francs ($150,733,000) as compared with 723,000,000 francs
($139,539,000) in 1928. The ratio of the gold
reserve against notes in circulation fluctuated
during the year between 55.04 per cent and
68.05 per cent, and in 1928 between 56.72 per
cent and 67.81 per cent; the yearly average
was 63.52 per cent, as compared with 61.89
per cent in 1928. The ratio of the reserve in
gold and foreign exchange reached a maximum
of 99.81 per cent, compared with 98.72 per
cent in 1928, and a minimum of 82.33 per cent
against 80.62 per cent in 1928; the yearly average was 91.30 per cent, as against 88.37 per
cent for the previous year. The yearly average of the ratio of the reserve in gold and foreign exchange against the aggregate of notes
in circulation and other demand obligations
was 81.49 per cent.
"Rescriptions."—Since the end of 1928 the
bank has not been called upon to discount any
bills of the Confederation (Prescriptions"), nor
has it had any of them in its portfolio during
the year. Since the beginning of April no bills
of the Federal railways have been presented for
discount, although in the previous months
small amounts were found for short periods
in the portfolio of the bank. The volume of
noninterest-bearing bills, offered to the bank
by the Confederation as cover for the difference
between the bullion value and the nominal
FEDERAL RESERVE BULLETIN
312
value of 5-franc silver coins of other countries
of the former Latin Monetary Union, amounted
at the end of the year to 39,097,500 francs
($7,545,818). It will decline in proportion to
the periodical withdrawals of 5-franc pieces by
the Governments mentioned above; and on
January 15,1932, when the repatriation of these
coins will be completed, such bills will no longer
figure in the balance sheet of the bank.
BALANCE SHEET OF THE SWISS NATIONAL
OF DECEMBER 31, 1929
BANK AS
Francs
(in thousands)
Dollars i
(in thousands)
193,802
139,339
225, 671
2,498
37,404
26,892
43, 555
482
21,053
1,623
1
4,063
313
583,987
112, 709
36,175
352,872
9, 417
6,982
68,104
1,817
134, 240
15,127
25,908
2,920
149,367
28,828
75, 073
175
14, 489
34
75, 248
14, 523
5,439
1,174
40,175
1,158
1, 049
169
25, 000
4,000
(2)
3,715
1,050
227
7,754
223
202
33
4,825
772
1, 288,945
248, 766
999,185
171, 698
28, 527
7,071
997
2,066
50, 000
9, 000
7,311
13
1,000
1,000
11,078
192,843
33,138
5,506
1,365
192
399
9,650
1,737
1,411
3
193
193
2,138
1, 288,945
218, 766
RESOURCES
Cash:
Swiss gold coin
Foreign gold coin
Gold bars..
Swiss 5-franc pieces
__
5-franc pieces of other countries of old Latin
Union (60,150,000 francs at 35 per cent, by
authority of art. 19bis of the bank law)
Subsidiary coin
_
Other cash items
Gold earmarked abroad.._
_
_._
__
Foreign exchange on gold standard countries
Foreign exchange other than gold exchange
Swiss portfolio:
Swiss bills
_.._
_...
Other discounts
Advances on security:
Eligible as cover for bank notes
Other
...
Government securities
. . __
Due from postal check service
._ _
Due from Swiss correspondents
Items for collection
_
Coupons..
. . . .
Interest accrued on securities
_
Unpaid capital
Bank premises
Furniture and fixtures
Miscellaneous assets..
_ ______ _.
Total resources
717
LIABILITIES
Notes in circulation
_
Giro accounts..
Federal accounts
Other deposits
Drafts and officers' checks
_
Rediscounts
___
Capital 3
Surplus
Net profits.
Dividends unpaid
Reserve for uninsured risks..
Reserve for printing bank notes
Miscellaneous liabilities
Total liabilities
_.
__
i Conversion at par: 1 franc=$0,193.
23 Carried at 1 franc.
After the transfer of 500,000 francs ($96,500) from the profits of the
year 1929 the surplus will be 9,500,000 francs ($1,833,500).
MAY, 1930
RECENT CURRENCY LEGISLATION IN
SWITZERLAND
The Swiss National Bank has pursued since
the middle of 1925 the policy of maintaining
Swiss exchange within the gold points, notwithstanding the absence of legal obligation
to redeem its notes. The obligation to redeem was suspended by a decree of the Federal
Council under date of June 30, 1914. This
decree has now been abrogated, effective
April 1, 1930.
At the same time the nature of the bank's
obligation has been altered by legislation which
was passed by the Federal Assembly last
December and became effective April 1. Prior
to the decree of 1914 redemption was required
to be in legal-tender coin, either gold or silver.
Redemption must now be effected in gold
coin, gold bullion, or gold exchange, at the
bank's option, but with provision requiring
the bank to fall in line with other banks of
issue if and when these other banks undertake
to redeem their notes in gold coin.
The reserve and note-cover requirements of
the bank have also been modified so as to
eliminate silver. Only gold held in Switzerland may be counted as reserve.
The text of the new law is given in full below.
FEDERAL LAW AMENDING THE FEDERAL LAW OF APRIL
7, 1921, RESPECTING THE SWISS NATIONAL BANK
(December 20, 1929)
The Federal Assembly of the Swiss Confederation,
with reference to the message of the Federal Council
transmitted on October 8, 1929, decrees:
I
Articles 14, 19, 20, and 22 of the Federal law of April
7, 1921, respecting the Swiss National Bank, are repealed and replaced by the following provisions:
ART. 14. The National Bank is a bank of issue, of
clearing, and of discount, and is authorized to carry on
the following operations only:
1. To issue bank notes in accordance with the provisions of the present law.
2. To discount Swiss bills of exchange and demand
drafts bearing the names of at least two persons of unquestioned solvency and independent of one another;
and to discount Swiss securities eligible as collateral.
The maturity of these securities may not exceed three
months. Bills of exchange and demand drafts of agriculturists, arising out of commercial transactions, are
to be dealt with in the same manner as other bills of
exchange.
3. To buy and sell bills of exchange, demand drafts,
and sight balances abroad, as well as treasury bills of
foreign governments. Their maturity shall not exceed
three months. The bills shall bear the names of at least
two persons of unquestioned solvency and independent
of one another.
MAY,
1930
4. To make advances at interest against collateral
(avances sur nantissement).
(a) For a fixed period not to exceed three
months.
(b) On current account, callable in 10 days at
most.
Shares may not be accepted as collateral.
5. To receive deposits without interest; also deposits
in current account, at interest, of funds of the Confederation and of the administrative departments and establishments under the supervision of the Confederation.
6. To effect transfers and clearings, to issue drafts,
and to make collections.
7. To purchase for its own account interest-bearing
securities—payable to bearer and readily marketable—
of the Confederation, the Cantons, or foreign governments; such operations to be effected only for the
temporary employment of resources at the disposal of
the bank.
8. To buy and sell, for its own account and for account of others, precious metals in the form of bullion
or/coin, and to make advances on these metals.
9. To issue gold certificates.
10. To receive for safe-keeping, and to act as trustee
for, securities and other articles of value; to buy and
sell securities and to make subscriptions for account of
others.
11. To assist in issuing loans of the Confederation,
and to accept subscriptions to loans of the Confederation and of the Cantons, but without itself underwriting any of these loans.
ART. 19. The equivalent of notes in circulation must
be covered by—
Swiss gold coins.
Gold bullion calculated at the legal monetary rate,
making deduction for cost of minting.
Foreign gold coin.
Swiss bills of exchange and demand drafts and Swiss
securities.
Foreign bills of exchange and demand drafts, treasury
bills of foreign governments, and sight balances abroad.
Credits arising out of advances in current account—
(a) On securities in conformity with the provisions
of article 14, section 4, subsection (6).
(b) On precious metals (art. 14, sec. 8).
The metallic reserve shall amount to at least 40 per
cent of notes in circulation. This minimum metallic
reserve of 40 per cent shall be held entirely in Switzerland.
ART. 20. The National Bank is obligated to redeem
its notes on demand in Swiss gold coin—
(a) At its office in Berne, without limit as to
amount;
(b) At its office in Zurich, as w^ell as at the
branches and agencies administered by
the bank, to the extent that the reserve
and their own needs permit, but in any
event with no more delay than is necessary to have specie brought from the
head office.
The service of note redemption shall be organized
to meet the needs of the locality.
ART. 20BIS. During such time as the banks of issue
of countries designated as important by the authorities
of the bank do not themselves redeem their notes in
313
FEDERAL RESERVE BULLETIN
gold coin, the bank shall have the right to redeem its
notes on demand in one or another of the following
forms:
In Swiss gold coin.
In gold bars, of the customary commercial weight
(about 12 kilograms) on the basis of mint parity.
In gold exchange (bank deposit or check); that is to
say, in exchange on countries having a free gold market.
The rate of conversion of this exchange shall be calculated on the basis of the exchange rate of the foreign
currency at the time of the transaction. It shall not,
however, in any case exceed the export point for
shipment of Swiss gold coin to the foreign bank on which
the draft is drawTn. The selection of the foreign currencies [in which redemption is to be effected] is reserved to the National Bank.
Redemption shall be made—
In gold coin and gold bars, at the office in Berne
without limitation as to amount; at the office in Zurich,
and at the branches and agencies administered by
the bank, to the extent that the reserve and their own
needs permit, but in any event with no more delay
than is necessary to bring the metal from the head
office.
In gold exchange at any of the above-mentioned
offices of the bank, without limitation as to amount..
The service of note redemption shall be organized
to meet the needs of the locality.
ART. 22. The Federal Council may not decree
that notes are legal tender nor release the bank from
its obligation to redeem its notes as provided in articles
20 and 20 bis except in case of necessity in time of war.
II
The Federal law of September 27, 1923 (art. 19bis of
the law governing the National Bank), is repealed.
Ill
The Federal Council will fix the date when the present
law is to become effective.1
The above law was passed by the Federal Council,
Berne, December 19, 1929.
fc-rr A\
(The President, MESSMER.
(Signed)
| T h e Secretary'}
KAESLIN.
The above law was passed by the National Council,
Berne, December 20, 1929.
^n
a;
(The President, E.-PAUL GRABER.
\ T h e s ^ e t a r y t G . BOVET.
The Federal Council issues the following decree:
The foregoing Federal law shall be published in
accordance with article 89, paragraph 2, of the Federal
constitution, and article 3 of the law of June 17, 1874,
respecting the popular referendum on Federal laws
and decrees.
Berne, December 20, 1929.
By order of the Swiss Federal Council.
The Chancellor of the Confederation,
KAESLIN.
Date of publication: December 26, 1929.
Referendum period ends March 26, 1930.
The referendum period having expired March 26 without any move
for a referendum, the Federal Council fixed Apr. 1, 1930, as the date on
which the law should go into effect. [Ed.]
314
FEDERAL RESERVE BULLETIN
M A Y , 1930
FINANCIAL STATISTICS FOR FOREIGN COUNTRIES
GOLD HOLDINGS OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars.
Month
Total
(44
countries)
Figures for end of month or latest available preceding date; see BULLETIN for June, 1929, p. 396]
Argentina
United
States
Aus- Bel- Bra- Can- EngGertra- gium zil
ada land France many
lia
1929—March
585
'10,091
3,814
April
569
'10,048
3,889
564
10,121
3,931
May
527
3,956
June
. 10,134
513
'10,150
3,974
July
10,233
3,995 507
August
4,008 497
S e p t e m b e r - M0,261
10,293
4,023 476
October
4,003 452
November... '10,297
3,900 434
December... *10, 290
442
PI
0,351
3,921
1930—January
»10,431
3,988 448
February
J>445
*10,496
4,061
March
* 4,131
April
110
110
106
108
111
113
114
109
97
89
88
124
126
150
126
150
134
151
134
151
139
151
141
151
141
151
142
151
143
151
151
150
163
139
164
164 P127
164
78
78
78
76
76
77
77
77
78
78
78
78
*66
1,340
1,403
1,435
1,436
1,462
1,526
1,545
1,570
1,600
1,633
1,683
1,680
1,668
748
762
795
780
694
670
648
643
659
711
732
740
759
639
451
420
455
512
520
527
531
534
544
547
582
595
India
JaItaly pan
270
270
270
271
271
271
272
272
273
273
273
273
274
128
128
128
128
128
128
128
128
128
128
128
128
128
642
542
642
542
541
541
641
541
542
542
520
477
453
Neth- Ruserlands sia
Spain
92
92
93
93
103
119
132
142
142
147
147
150
156
494
494
494
494
495
495
495
495
495
495
495
476
476
170
174
176
176
181
178
178
178
180
180
177
176
174
i
I
28
Swit- other
zer- counland tries
713
708
'708
'706
'699
'703
704
'708
708
*708
*710
»713
*713
93
95
96
96.
98
98
103
103
105
115
108
108
108
!
"i "
v Preliminary, based on latest available
figures.
' Revised.
NOTE.—Table covers all countries for which satisfactory figures are available; see BULLETIN for April (p. 170), where separate figures for the
44 countries are given by years back to 1913. For the 16 countries here shown separately—all of which have held gold in recent years to the amount
of $90,000,000 or more—the figures are for central banks only except as follows: United States—Treasury and Federal reserve banks; A r g e n t i n a Government conversion fund and Bank of the Nation; Brazil—Bank of Brazil and Government stabilization fund; Canada—Government reserve
against Dominion notes and savings-bank deposits, and gold deposits of chartered banks in the central reserve; India—currency and gold standard
reserves of Government; Japan—domestic holdings of Bank of Japan and Government.
GOLD MOVEMENTS
[In thousands of dollars]
Great Britain
Germany
United States
Netherlands
South
Africa
India
Net
Net
Month
1929—Januarv
February
March
April
May
June
July
August
September
October
November
December
1930—January
February
March
MOVEMENTS
Imports
Imports
Exports !
N- .
Net
48, 577
26,913
26,470
24,687
24,098
30, 762
35, 525
19, 271
18, 781
21,321
7,123
8,121
12,908
60,198
55, 768
l,378i 47,199
1,4251 25,488
1,635' 24,835
l,594i 23,093
467'l 23,630
550
30, 212
8071 34, 718
881| 18,390
1, 205: 17, 576
3,805! 17,516
30,289! -23,166
72,647| -64,426
8,948;
3,960
207
59,991
290; 55,478
Exports
TO AND FROM GREAT
[In thousands of dollars]
BRITAIN
France
358
Germany
Netherlands
Spain and Canaries.
Switzerland
United States
South America
402
British India
Australia
~19,"734~
New Zealand. _
Egypt
Rhodesia
366
Transvaal
16,957
West Africa
377
62
All other countries..
Total
r
38, 258
Revised.
Exports
366
2,290
55
1
208
Imports
918
7
19,466
13, 027
~29,"885"
5
8,885
Exports
Imports
Net
MOVEMENTS
1 177
53,155
1,125
161
12, 826 118,921
Exports
Imports
Exports
11,341
38,690
280
9
832
2,066
3,203
14,382
4
162, 527
92,991
2,006
359
10, 781
61,293
23,090
39,129
"16," 320
" "2,2!0"
2 "24," 603"
2,433
3,786
6
4,641
184, 954
8
4,216
9, 619
33,434
1,003
63, 002 303, 725
377,505
Exports
Net
490
14
175
6
14,320 -14,187
163
2
4,315
23
173
17
121
8
2,522 - 2 , 4 1 9
'99
17
166
12
92
15
280
17
3,224 - 2 , 9 7 5
-946
1,026
504
181
133
165
4,338
190
129
103
116
177
107
297
248
80
-16, 607
-17,848
- 2 1 , 542
-15,871
-17,975
-22, 625
-14,816
-20,981
—15,375
-15,812
-20,922
-18,220
-17,808
-20,786
TO AND F R O M BRITISH
[In thousands of dollars]
1929
January-March Calendar year
March
Imports
Imports
672 11,844 27,891 -16,047
577
1,250
574 12,347 21,383 - 9 , 0 3 6
764
1,338
897 25, 734
7,746 17,987
804
1,701
3,714 12,430
1,768 223, 247 - 2 2 1 , 480 16,144
1,165 28, 284
4,652 23, 632
781
1,946
6,812 21,085 40,001 -18,917
681
7,493
48,012 22, 578 100,479 -77,901
716
48, 728
26,849 17, 226 59, 278 -42,052
879
27, 728
9,088 18, 301 41,283 -22,982
851
9,939
3,622 28, 591 26,794
1,796
1,002
4,624
4,174 36, 249 27,844
8,405
919
5,093
10, 290 65,343 16,439 48,903
806
11,096
4,423 41, 702 16,102 25,600
629
5,052
37. 565 38,961 34,074
4,886
687
38. 252
14, 350 38, 258 12, 826 25,432
769
15,119
1930
From or to—
Net
England
United States. .
Aden and dependencies
Arabia
.,
British Oceania
Bahrein Islands
Ceylon
- .
China
Mesopotamia
Straits Settlements._
Egypt
Natal
All other countries..
Total
January
January
Imports
INDIA
1929
1930
From or to—
Exports
Imports
Calendar yrar
Exports
Imports
1, 203
1,012
10,461
22
102
32
80
13
202
19
1,045
1,287
7,701
119
4,151
188
2,613
2
19
6, 867
. . 29, 595
206
1,800
3
10
58
194
113
382
1,417
5,373
4,730
7,700
13,063
6,580
6,076
3,596
4,164
2,771
3,390
3,146
4,408
4,603
' 5,370
3,844
3,473
5
189
4
171
2,974
4
4,733
3
64, 275
Exports
1
28
19
48
MAY,
315
FEDEKAL RESERVE BULLETIN
1930
CONDITION OF CENTRAL BANKS
[Figures are for the last report date of month]
1930
1929
January
March February
Bank of England (millions of pounds
sterling):
Issue d e p a r t m e n t Gold coin and bullion
Notes issued
Banking d e p a r t m e n t Gold and silver coin
Bank notes
Government securities
__
Other securities
Discounts and advances
Public deposits
Bankers' deposits
Other deposits
Reserve ratio »(per cent)
Bank notes in circulation *
155. 1
415. 1
151.3
411.3
150.1
410.1
.9
63.8
44.8
13.3
6.1
18.8
54. 9
35. 9
58.1
352. 3
.7
64.5
34.4
12.9
4.7
12.0
50.7
36.2
65.9
346.8
.3
62.1
54.3
14.0
5.5
14.6
67.5
36.0
52.9
348.0
Bank of France (millions of francs):
Gold
Sight balances abroad
Foreign bills
Loans and discounts
Negotiable bonds
Note circulation..
Public deposits
Other deposits
42, 557
6, 920
18, 746
8, 943
5, 396
70, 826
6, 802
8, 719
42,855 42,921
6,956 6,984
18,738 18,732
7,987 8,517
5,453
5,453
5,53
5,
116 i 70339
71,116
70,339
German Reichsbank (millions of
reichsmarks):
Gold reserve
Gold abroad
Reserves in foreign exchange
Loans and discounts
Deposits
_
Reichsmarks in circulation
Rentenmarks in circulation
2,346
150
387
2,269
457
4,806
382
2,147
2,294
150
150
397
384
2,222
2,288
357
469
4,722 ! 4,653
392
384 •
8, 767 ! 10,172
7,136 | 7,512
j
Bank of Italy (millions of lire):
Gold at home
Credits and balances abroad
Loans and discounts
Total note circulation
Public deposits
Other deposits
5,189
5,202 5,190
4, 858 4,855 ! 4,911
4, 379 4,614 j 4,713
16,322 16,095 i 16, 329
300
300 i
300
1,663 : 1,560
1,436
ank of Japan (millions of yen):
Gold
Advances and discounts
Government bonds
Notes issued
Total deposits
3 965 ! 1,066
912
732
3 755 I
755
179
3 144 !
131
1,270 3 1, 277 j 1,347
822
3 733 i
706
Commonwealth Bank of Australia
(thousands of pounds sterling):
Issue departmentGold coin and bullion
j
Securities
|
Banking department—
I
Coin, bullion, and cash
J
Money at short call in London
Loans and discounts
Securities. __
Deposits
Bank notes in circulation
Austrian National Bank (millions of
schillings):
Gold
Foreign exchange of the reserve._
Other foreign exchange
Domestic bills
Government debtNote circulation..
Deposits
March
National Bank of Belgium (millions
of belgas):
Gold
Foreign bills and balances in gold.
153.3
Domestic and foreign bills
413.3 |j
Loans to State
Note circulation
5L5 |!
Deposits
50.6
17.1
13.0
19.7
58.2
36.4
45.4
361.8
34,186
10,577
18,434
9,160
5,930
64, 575
11,617
6, 603
Bank of Brazil (millions of milreis):
Gold
Currency
Correspondents abroad
Loans and discounts
Securities
Note circulation
Deposits
National Bank of Bulgaria (millions
of leva):
Gold
Net foreign exchange
_
Total foreign exchange
Loans and discounts
__
Government obligations.
Note circulation
Other sight liabilities
Central Bank of Chile (millions of
Gold at home
Deposits abroad. _
Loans and discounts
Note circulation.
Deposits
Bank of the Republic of Colombia
(thousands of pesos);
Gold at home
Gold abroad
Loans
and discounts
_.
5,126
Note circulation
5,334
Deposits
_
5,214
16, 396 Czechoslovak National Bank (mil- j
300
lions of Czechoslovak crowns):
I
2,125
Gold
;
Foreign balances and currency...
Loans and advances
_
Assets of banking office in liqui- |
1.003
793
dation
I
175
Note circulation
1,247
Deposits
789 Danish National Bank (millions of
kroner):
I
Gold
Foreign bills, etc
Loans and discounts
22, 581
Note circulation__
_
_.
21, 740
Deposits
_
Bank of Danzig (thousands of Danzig gulden):
Balances with Bank of England .
17,403
!
Foreign bills, etc
12,552
Loans and discounts
10, 252 I
Note
circulation
_
42,083 :
Deposits
-.
39,635 i
Bank of Estonia (thousands of
krones):
Gold
—
Net foreign exchange
Loans and discounts
Note circulation
DepositsGovernment
Bankers..
Other
2, 553
130
36
2,488
478
4,822
515
1 Ratio of gold and notes in banking department to deposit liabilities.
2
Notes issued, less amounts held in banking department and in currency note account.
1, 404
325
718
1,245
3,339
3, 350
1,780
63
385 !
121 :
353
158 i
501
103
344
181
6}
413
92
366
114
i 21,315
9,477
I 17,689
! 33,241
:
6.573
21,270
10,897
17,979
34, 246
6,720
25, 395
26, 554
16, 954
51,072
9,360
I,2ti2 ; 1,262
1,907 ! 1. 980
639
292
1,262
2,039
364
1,158
1,781
527
355
354
6.838 ' 6,923
395 i 407
422
7,333
350
172
106
78
347
35
173
88
71
357
27
H,502] 13,969
13,328 !13,883
20,155; 20,481
36,045 36, 281
1,333
1.C96
16,069
13,967
25,329
38, 739
2,116
0,461 -0,450 : 6,437
19,800 ! 18,134 19,478
28, 330 , 28,202 :27,819
33,1(59 i 33,332 32, 260
6, 243
22, 257
31, 628
36, 259
13,948 9,289 8,733
3,422 i 5, 112 :: 6,187
1,849 I i,4S0 2,102
14, 594
2,208
2, 934
63
340
128
35()
118
!
i
j
:
i
352
7,011
417
172 i
101
352
31 i
15,347
9,472
25,059
36, 661
1. 659
172
12S
79
352
29
316
FEDERAL RESERVE BULLETIN
M A T , 1930
CONDITION OF CENTRAL BANKS—Continued
[Figures are for the last report date of month]
1929
1930
March
B a n k of F i n l a n d (millions of Finnish m a r k s ) :
Gold
-—
Balances abroad and
credits
Foreign bills
Domestic bills
Note circulation __
Demand liabilities
302
foreign
•
-
Bank of Greece (millions of drachmas):
Gold
Net foreign exchange in reserve.
Total foreign exchange
Loans and discounts
Government obligations
Note circulation
Other sight liabilities
458
198
68
Bank of Java (millions of florins):
Gold.
Foreign bills
Loans and discounts
Note circulation...
Deposits
23,970 ;
48,292 J
92,552
54,909 I
48,443 !
90,824 I
60,849 !
Bank of Lithuania (millions of litas):
Gold
Foreign currency
Loans and discounts
Note circulation. _
Deposits
Netherlands Bank (millions
florins):
Gold.
Foreign bills
Loans and discounts
Note circulation __
Deposits
96
of
-.
ank of Norway (millions of kroner):
Gold
_
Foreign balances and bills
Domestic credits
Note circulation
Foreign deposits
Total deposits
Reserve Bank of Peru (thousands of
Gold
.._
Gold against demand deposits.
Foreign exchange reserve
Bills
Note circulation
Deposits
March , February
January
521
180
360
100
739
1,282
290
166
521
180
372
101
756
1,247
300
154
427
195
530
129
790
1,333
270
242
275
359
1,906
77
313
361
1,972
. 108
326
280
1,852
72
483
219
325
116
697
1.324
162
146
Bank of Portugal (millions of escudos):
565 I
Gold
_.
3,472
Balances abroad
_
4,588 !
Bills
123 :
Note circulation
3,790 '•
Deposits
...
5,488 I
2,122 :' National Bank of Rumania (millions
National Bank of Hungary (millions of pengos):
Gold
Foreign bills, etc
Loans and discounts
Advances to treasury
Other assets
Note circulation
Deposits
Miscellaneous liabilities
Bank of Latvia (millions of lats):
Gold
Foreign exchange reserve
Bills
Loans
Note circulation
Government deposits
Other deposits
Bank of Poland (millions of zlotys):
Gold at home
Gold abroad
Foreign exchange of the reserve..
Other foreign exchange
_.
Loans and discounts
Note circulation
Current account of the treasury..
Other current accounts
49, 519
4,201
6,025
24,498
59,919
8,354
46,974
6,752
8,188
26,588
61,016
11,102
51,281
2,445
9,611
17,169
60, 751
4,012
of lei):
Gold at home
Gold abroad
_
_.
Foreign exchange of the reserve..
Other foreign exchange.
_.
Loans and discounts
_.
State debt
_.
Note circulation
Deposits
! State Bank of Russia (thousands of
: chervontsi):
Loans and discounts
Deposits
Issue department—
Gold
Other precious metals
Foreign exchange
Note circulation
South African Reserve Bank (thousands of pounds sterling):
Gold
Foreign bills
Domestic bills
Note circulation
DepositsGovernment
Bankers
_
Others
_
Bank of Spain (millions of pesetas):
Gold
Silver
Balances abroad
Loans and discounts
Note circulation
Deposits
Bank of Sweden (millions of kronor):
Gold
Foreign bills, etc
Loans and discounts
Note circulation
Deposits
Swiss National Bank (millions of
francs):
Gold
Foreign balances and bills
Loans and discounts
_
Note circulation
Demand deposits
National Bank of the Kingdom of
Yugoslavia (millions of dinfirs):
Gold
Foreign notes and credits
Loans and discounts
Advances to State
Note circulation
Deposits
1929
March
, !
165
336
1,879
59
J
5,307 5,280
3,919 3,919
3,610 5,063
22
39
9, 661 9,529
5,197 5,469
19, 518 19, 767
8,487 9,097
J5O9,965 472,486
311,114 268,314
5,021
3,591
3,655
1,133
8,051
10,080.
20,964
10,151
358,006
206,156
29,080 28, 567 17,833
3,298 3,414
4,359
6,813 6,687
9,165
153, 580 150,027 110,212
7,315
6,633
1,211
8,436
7,680
6,237
2,333
9,032
7,914
6,027
3,081
9,156
9,498
2,450
4,737
393
2,573
4,860
250
1,740
5,178
386
1,613
5,613
244
2,468 3 2,467
716
3 714
34
3 185
2,018 3 2,041
4,365 3 4,431
833
2,567
711
86
2,062
4,399
1,017
2,560
716
95
1,837
4,243
8,206
7,713
1,412
244
262
302
575
159
244
234
298
534
166
244
237
296
521
183
235
189
374
544
174
561
335
119
918
122
561 I 560
344
378
120 I 135
893
890
129 I 188
481
218
242
886
111
96
291
1,319
2,997
5,363
1.397
96
291
1,377
2,999
5, 5fiO
1,409
276
1, 434.
2,999
5,586
1,372
92
192
1,655
2,966
5,265
729
• Figures are for Mar. 1, 1930.
* The February balance sheet of the Reserve Bank of Peru is in terms of the new currency unit, the sol (par $0.4000), exchangeable for the old
libra (par $4.8665) at the rate of 10 to 1. To preserve comparability figures for previous months have been converted from libras into soles.
317
FEDERAL RESERVE BULLETIN
M A T , 1930
CONDITION OF COMMERCIAL BANKS
Millions of national
currency
Country
1930
Janu-
aiy
Canada:
Gold coin and bullion l .
Curient loans and discounts
Money at call and short notice
Public and railway securities
Note circulation .
Individual deposits
Gold reserve aeainst Dominion notes _.
Dominion note circulation
Argentina:
Bank of the N a t i o n Gold
Other cash
Loans and discounts
Deposits
Other banks in Buenos AiresGold
Other cash
._
Loans and discounts
Deposits
Millions of dollais
1930
1929
Febru- March
aiy
January
Febru- March Octo- Novem- Decem- Janu- Febru- March
ber
ary
ber
ary
ber
ary
Millions of d()llars
64
1,481
595
530
158
2,595
59
64
1,506
597
530
162
2,560
59
63
1,560
560
524
189
2,560
58
62
1,715
521
487
185
2,679
60
61
1,684
532
475
187
2,636
60
61
1,653
507
448
175
2,605
60
61
449
1,641
431
156
2,485
63
173
1,628
423
159
2,455
63
167
7
115
120
143
493
751
120
138
506
753
120
120
512
745
40
122
558
704
29
113
564
694
29
79
576
681
1
112
£34
668
532
649
11
181
11
195
821
982
11
190
832
976
12
184
839
991
12
146
844
952
12
145
835
929
11
146
831
925
11
155
829
916
789
850
964
716
5,989
1,215
8,805
918
649
5,975
1,197
8,648
898
650
5,815
1,187
8,463
920
733
5, 829
1,171
8,587
907
707
5,842
1,142
8,522
979
700
5,829
1,147
8,628
935
692
5,703
1,134
8,C00
883
621
5,799
1,113
8,341
882
645
5, 631
1,096
8,185
838
376
1, 356
37
826
421
1,370
42
816
398
1,323
37
804
424
1,306
41
819
421
1,291
41
826
421
1,285
42
834
420
1,298
39
679
342
1,931
2,777
118
687
293
1 969
2,774
116
750
276
770
282
2,052
2,920
122
61
60
449
428
1,641
1,628
423
431
156
159
2, 485
2, 455
63 i
63
173
167
Millions of p esos
7 '
124
584
731
11
170
908
1,003
Milli ons
t!5
7£0
911
983
of pounds
sterling
192
182
181
142
120
133
1,213
1,192 1,157
233
229
225
1, 767
1,714 ! 1,682
Mill ions of francs
England:
Cash in vault and at banks
Monev at call and short notice
\dvanccs and discounts
Investments
Deposits
France:
Bills and national-defense bonds
Loans and advances
Demand deposits
Time deposits
Millions of reicr smarks
Germany:
i 3 US
3,234
Bills and treasury notes
1,182
Due from other banks
1,160
8,619
Miscellaneous loans
8, 561
12 035 12. 259
Deposits
525 i
510
Acceptances
- .
Mi Uions of lire
Italy:
Cash
i
Bills discounted
Due from correspondents
Due to correspondents _ _ .
Deposits
..
Mill ons of k roner
Denmark:
1,787
1,810
Loans and discounts
128
115
Due from foreign banks
74
84
Due to foreign banks
1,941
1,971
Deposits and current accounts
._
Mill ons of k roncr
Norway:
1,239
1 233
Loans and discounts
123
117
Due from foreign banks
__ _
76
75
Due to foreign banks
92
92
Rediscounts _
.
1,521
1,524
Deposits
Mill ons of k onor
Sweden:
4,324
4, 275
Loans and discounts
.
265
297
Foreign bills and credits abroad
120
125
Due to foreign banks
154
156
Rediscounts
3, TOO 3,621
Deposits
Mi llions of y e n
Japan:
238
230
276
Cash on hand
2,148
2,157
2,1C7
Total loans
Total deposits
2,072
2,050
2,063
61
470
268
711
60
428
1
99
11
156
2,039
2,867
125
60
434
299
721
1C4
ieo
457
43
23
512
462
45
25
520
462
45
24
520
477
39
16
529
476
16
526
479
38
19
526
479
34
20
520
485
31
23
528
348
33
22
27
425
348
34
22
27
426
347
31
23
27
420
336
38
23
27
414
336
34
23
26
412
335
32
21
24
412
332
33
20
25
408
330
31
20
25
408
1,104
i
74
34
44
!
946
1,109
71
33
45
945
1,141
1,107
71 1
94
40
39
62
47
954
949
1,141
80
31
45
944
1,117
79
30
67
933
1,146
80
33
42
965
1,158
71
32
41
970
118
946
957
156
936
953
168
1,003
1,021
156
1,058
1,023
138
1,071
1,033
119
1,075
1,028
i
|
\
!
i
I
1
116
934
953
!
157
974
990
37
114
1,080
1,022
* Not including gold held abroad.
NOTE.—Banks included are as follows: Canada—Chartered banks; England—nine London clearing banks; France—three commercial banks;
Germany—six Berlin banks; Italy—four private banks; Denmark, Norway, and Sweden—joint stock banks; Japan—Tokyo banks.
318
FEDERAL RESERVE BULLETIN
MAY,
1930
DISCOUNT RATES OF CENTRAL BANKS
[Rate prevailing May 3, 1930, with date of latest change]
Country
Austria
Belgium
Bulgaria
Chile
In effect
si n e e -
: Rate
i 6
3
: 10
I 6
Colombia
_.
Czechoslovakia.:
Danzig.,
Denmark
Ecuador
9
5
5
4
9
Country
Rate
In effect
since—
Country
Rate
5.48
4H
6-7
7
Mar.
May
July
Oct.
22,1930
1,1930
2,1929
22.1928
England..
Estonia...
Finland...
France
3
8
May
Oct.
Apr.
May
2X
1,1930
3,1929
28,1930
2,1930
Japan
Java
Latvia
Lithuania...
Nov.
Mar.
May
May
Jan.
20,1929
8,1927
2,1930
3,1930
10,1930
Germany .
Greece
Hungary..
India
Italy
5
9
6
6
6
25,1930
30,1928
29,1930
3,1930
24,1930
Netherlands 3
Norway
Peru.
Poland
Mar.
Nov.
Mar.
Apr.
Apr.
?
In effect
since—
Country
Rate
In effect
since—
Oct.
Mar.
Apr.
Feb.
10,1927
10,1930
1,1928
1,1925
Portugal
Rumania
Russia
South Africa
8
9
8
6
July
Nov.
Mar.
Aug.
27,1926
26,1929
22,1927
17,1929
Mar.
Mar.
Nov.
Mar.
25,1930
21,1930
23,1929
14,1930
Spain
Sweden
Switzerland.
Yugoslavia..
5 ^ Dec.
Apr.
3 Apr.
6 June
19,1928
3,1930
3,1930
23,1922
Changes.—Belgium—May 1, from 3J-3 to 3 per cent; Danzig— May 2, from 5H to 5 per cent; Denmark—May 3, from m to 4 per cent; England—
May 1, from 3lA to 3 per cent; Finland—Apr. 28, from 7 to 6lX2 per cent; France—May 2, from 3 to 2% per cent; India—Apr. 3, from 7 to 6 per cent;
Italy—Apr. 24, from 6>£ to 6 per cent; Sweden—Apr. 3, from 4 to 3J>£ per cent; Switzerland—Apr. 3, from 3H to 3 per cent.
MONEY RATES IN FOREIGN COUNTRIES
Month
Treasury
bills, 3
months
Netherlands (Amsterdam)
Germany (Berlin)
England (London)
Bankers'
Day-to-day allowance
mone
y
ondeposits
Private
discount
rate
Switzerland
Private
discount
rate
Money for Day to-day
1 month
money
1929—January....
February...
March
April
May
June
4.29
4.96
5.30
5.18
5.21
5.35
3.41
4.33
4.51
4.43
4.67
4.23
5.80
5.80
6.31
6.63
7.49
7.50
7.51
7.07
7.30
7.57
9.65
9.89
5.13
6.33
6.97
6.85
9.32
7.90
4.20 I
4.39 !
4.64
5.36
5.37
5.30
4.4b
4.78
5.05
5.81
5.88
5.30
3.28
3.31
3.39
3.45
3.34
3.26
July
August
September.
October
NovemberDecember..
5.39
5.48
5.63
6.19
5.30
4.75
4.54
4.35
4.39
5.45
5.15
4.23
7.39
7.18
7.18
7.28
6.89
6.98
9.35
9.43
9.48
9.06
8.29
8.78
8.21
7.42
7.86
8.06
7.79
8.14
5.20
5.06
5.36
5.15
4.26
3.52
4.90
4.68
5.32
4.52
4.17
3.87
3.19
3.33
3.38
3.38
3.32
3.15
1930—January
February...
March
4.04
3.72
2.55
3.62
3.76
3.20
6.33
5.53
5.12
7.71
6.72
0.35
6.03
6.01
5.57
2.85
2.94
2.97
2.71
2.60
I Belgium
I (Brussels) i
France
(Paris)
Private
discount
rate
Private
discount
rate
Month
1929—January
February
March..
April
May..
June
July.
August..
September
October
November
December
1930—January
February
March
|
_!
!
!
!
j
|
j
!
i
:
j
3.97
3.97
3.97
3.97
3.96
3.97
4.04
4.93
4.94
4.94
4.57
4.40
3.40
3.41
3.31
3.50
3.39
3.37
3.44
3.49
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.38
2.91
2.70
i
Italy
(Milan)
Private
discount
rate
5.83
6.00
6.31
6.75
6.83
6.75
6.76
6.85
7.01
7.18
7.00
7.00
7.00
6.95
6.57
Austria (Vienna)
Private
discount
rate
Money
for 1
month
7*4-8%
7J4-8H
7H-8M
7^-894
8 -9
8H-9
8H-6
8)4-9
SH-9H
9 -10
834-10
7 -8
P
2.99
2.80 !
2. 50 !
Sweden
(Stockholm)
Hungary
»2.61
Japan (Tokyo)
Prime
Call
Loans up ! D i s c o u n t e d
commer- j Day-to-day
money
tO 6
bh llUl s
cialpaper! ™™?
months
overnight 2
6J4-8J4
6*4-8*4
6H8H
7 -9
7 -9
7 -9
8?410H
9 -10J4
SH -9%
7 -8*4
7 8
6?4-8
734-8
6H-7*4
m 9%
7 -m
4H-6H; 5.84-6.21
5.66-5.84
5.66-5.84
5.48-5.66
5.48-5.66
5.48-5.66
5.48-5.66
5.48
4
5.48
5^-7
5.48
5.48
5.48
5.48
4^-6
5.48
2.37
2.92
3.10
3.65
3.29
3.29
3.10
3.10
2.92
3.47
3.47
3.10
2.74
3.83
p Preliminary.
The Brussels rate, formerly derived from the Bulletin Mensuel, Banque National Suisse, is now obtained from the-Bulletin d'Information et
de Documentation, Banque Nationale de Belgique. The rate quoted is that for the private discount of "commercial," as distinct from* 'financial,"
paper.
2
The rate previously quoted for call money in Tokio represented the range of the high and low for the month. The rate now quoted represents
the average for the month of the rates prevailing daily.
NOTE.—For sources used, methods of quotation, and back figures, see BULLETIN for November, 1926, April, 1927, July. 1929, and November, 1929.
1
MAY,
319
FEDERAL RESERVE BULLETIN
1930
FOREIGN EXCHANGE RATES
[Monthly averages of daily quotations.* In cents per unit of foreign currency]
Country
1930
Par
Monetary unit j ofexi change February March j April
Country
Monetary unit
Par
of exchange February
1930
March
April
SOUTH AMERICA
Austria
Schilling
Belgium
j Belga
Bulgaria
! Lev
Czechoslovakia..J Crown
Denmark
! Krone
England
Finland
France
Germany
GreeceHungary.Italy...
Netherlands
Norway
Poland
PortugalRumania
Russia 2
Spain
Sweden
Switzerland.
Yugoslavia
J 14.07
-I 13.90
_
! Pound
_
i Markka
Franc.
Reichsmark
Drachma.
| Pengo—
LiraFlorin
Krone
Zloty
Escudo
Leu
Chervonetz
Peseta
Krona
> Franc.
Dinar.
"j 2*. 96
_• 26.80
486. 65
2.52
3.92
23.82
1.30
17.49
5.26
40.20
26.80
11.22
108.05
14.0605
13.9271
.7212
2.9590
14.0705
13.9373
.7216
2. 9622
4U. 1 *JOA
14.0801
13.9565
.7221
2.9621
26.7745
486.1785 486. 3085 486.3104
2.5171
2. 5162 2. 5166
3.9185
3.9155 3.9132
23.8711 23. 8573 23.8684
1.2967
1.2962 1. 2960
17.4769 17.4738 17.4718
5. 2346 5. 2375
40.1028 40.1066
26. 7212 26. 7589
11.1935 11. 2027
4.4957 4.4930
. 5950
| .60
514. 60 •515.0000
19.30 12. 6955
- 26.80 26. 8262
19.30 19. 2938
19.30
1. 7604
5.2415
40.2013
26.7719
11.2037
4.4954
.5953
.5957
515. 0000 '515.0000
12. 3131 12.4828
26. 8563 26.879f)
19.3453 19.3790
1. 7637
1. 7674
3
Argentina
Bolivia 2
Brazil
Chile
Colombia2 2
Ecuador
Peru 2
Uruguay 2
Venezuela
Peso
Boliviano.
Milreis
do
Sucre
Libra
Peso
Bolivar. _.
96.48 86.5311 85.6357 88.6349
36.50 36.0000 36.0385 36.5000
11.1533
11.96
11.5012 11.7206
12.0319
12.17
12.0518 12.0549
97.33 96. 3900 96. 3900 96.3900
20.00 20.0000 20. 0000 20.0000
486. 65 400. 0000 400. 0000 400.0000
103.42 88.9679 89.0137 92.9001
19.2500 19. 2408 19.1300
19.30
ASIA
China 4
China *
China*
Hong Kong 4__
India.
Japan2
Java
Straits Settlements.
Turkey
Mexican dollar. ;3. 58 34. 3963 33. 8100
47.9616 47.1132
Shanghai tael._ 46.30
34. 2746 33. 6009
32.84
Yuan dollar
38. 2350 37. 2238
Dollar
I 33.34
36.1138
Rupee
_ 36.50 36.2071
Yen
49.85 49.1295 49.3298
Florin
40.20 40. 0791 40.1365
55. 8994
Singapore dol- 56.78 56.0006
lar.
Turkish pound. 439.65 * 46. 7776 •5 47. 3035
33.6670
46.9037
33.3822
37.1905
36.1163
49. 3661
40.2350
55.8744
7
46.6955
AFRICA
Egypt
Egyptian pound 494.31 5 500.6147 6499.2997
498.9970
NORTH AMERICA
Canada.
Cuba....
Mexico-
Dollar..
Peso.
_do_.
1
100.00
100.00
49.85
99. 2408 99. 7637
100. 0313 99. 9596
47.4758 47.4921
99. 9501
99.9189
47.5414
Based on noon buying rates for cable transfers in New York.
2 Averages based on daily quotations of closing rates as published by New York Journal of Commerce.
Chervonetz quotations nominal.
* Silver currency. The figure given for parity represents gold value oi unit in April, 1930, computed by multiplying silver content of unit
by New York average price of silver for April, 1930, which was $0.42740 per fine ounce. On the same basis, parity in April, 1929, for the ChineseMexican dollar was 43.98 cents; for the Shanghai tael, 60.64 cents; for the Yuan dollar, 43.02 cents; and for the Hong Kong dollar, 43.66 cents.
fi December, 1929.
« January, 1930.
i February, 1930.
Back figures.—See BULLETIN for January, 1930, 1929, and 1928.
8
320
FEDERAL RESERVE BULLETIN
MAY,
1930
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES
ALL COMMODITIES
1929
1930
Country
Jan.
United States
Feb. \ Mar. i Apr.
May
97 :
97 j
97
Canada
England
France
Germany
Italy
Japan
94 j
138 !
657 I
139;
461 '
228 j
96 i
94
139
648
137
455
225
92
136
643
136
452
223
Australia
Austria
Belgium
China
Czechoslovakia
Denmark
Dutch East Indies
Egypt..
Finland
Hungary
India
Netherlands
New Zealand
Norway
Peru
Poland
Russia
South Africa
Spain
Sweden
Switzerland
157
128
867
160
139
151
149
125
100
132
145
146
155
149
186
98
177
135
171
144
143
158
134
862
161
141
150
148
120
99
135
140
144
'155
148
185
98
179
131
174
141
140
156
135
851
162
137
148
150
114
98
123
139
142
155
146
186
138
660
139
463
226
156
130
865
162
139
159
149
122
100
136
144
146
' 155
150
185
99
177
j
!
j
:
140
654
140
461
226
157
133
869
164
141
154
150
123
100
136
143
147
155
150
189
99
178
I
i
!
i
!
June i July
96
!
i
;
,
,
'
I
!
!
|
!
95
180
171
140
139
i
j
I
i
!
j
Oct.
159
132
858
163
135
149
149
109
97
119
142
141
156
149
187
96
180
129
170 i 169
139 i 140
139 ! 143
98
136
598
138
437
218
i 97
! 136
; 608
l
138
i 437
I 218
160 ;
132 i
850 I
165:
134 i
150 !
148 i
112 ;
97 ,
114 I
143 i
142 i
156 |
148 ;
187 :
95 !
180 I
163 !
128 !
846 !
167 i
132 j!
150
148 !
113;
96 i
109 I
143 i
141 j
157 j
148 i
186 I
94 i
181 j
170 i 171
141 ' 140
143 I 142
Nov. \ Dec.
Jan.
94
94
97
136
607
137
436
216
96
134
603
136
431
211
96
133
596
134
425
205
161
127
838
168
131
149
147
115
96
111
140
140
156
147
186
93
182
128
172
138
142
158;
125 i
834 !
165 '
130 :
147 i
146 I
112 !i
95
107 ;
137
137 '
155
146
184
95
181
154 ! 151
123 I 125
823 j 808
165
170
128
126
146
143
144
143
110
109
94
95
106
107
131
134
131
135
155
154
144
146
181
182
92
88
182
182
171
172
134
139
98
93 ;
137
136
624
629
138
135
440
?447
220
222
158
134
848 ::
163
134 i
146
149 :
108
98
122 i
138 I
141 '
155 i
147 i
186 !
95 i
181 i
Aug. I Sept.
1 3 5 ••
140
r
Feb.
Mar.
93
92
91
131
576
132
417
201
94
128
'567
129
408
199
92
125
558
126
400
196
147
123
791
175
124
140
121
774
174
122
136
121
172
131
136
106
93
104
126
126
155
143
181
85
128
133
125
142
180
85
125
131
' Revised.
NOTE.—All of the indexes shown, with two or three exceptions, are compiled by official agencies in the countries to which they relate, as indicated specifically in the BULLETIN for March (p. 124), where references are also given to sources in which current figures of the index numbers may
be found.
The base periods, which were systematically indicated in the BULLETIN for April (p. 256), are as follows: United States—1926; Australia—July,
1914; Austria—January-July,
1914; Belgium—April, 1914; Canada—1926; China—February, 1913; Czechoslovakia—July, 1914; Denmark—1913; Dutch
East Indies—1913; Egypt—January 1, 1913-July 31, 1914; England—1913; Finland—1926; France—1913; Germany—1913; Hungary—1913; India—July,
1914; Italy—1913; Japan— October, 1900; Netherlands—1913; New Zealand—1909-1913; Norway—December 31, 1913-June 30, 1914; Peru—1913; Po
land—1927; Russia—1913; South Africa—1910; Spain—1913; Sweden—1913; Switzerland—July, 1914.
Annual indexes for the years 1925-1929, and in certain cases for 1913 and 1914, were given in the BULLETIN for April.
MAY,
321
FEDERAL RESERVE BULLETIN
1930
WHOLESALE PRICES—Continued
GROUPS OF COMMODITIES
1929
1930
Country and group
Jan.
Feb. i Mar.
Apr.
May
June
me
July
July
Sept.
Aug.
ug. i Sept.
Oct.
Oct.
Nov. Dec.
Nov.
Jan.
Feb. Mar.
UNITED STATES (1926=100)
Farm products
Foods
Hides and leather products..
Textile products
Fueljand lighting materials.
Metals and metal products..
Building materials
Chemicals and drugs
Housefurnishing goods
Miscellaneous
106
99
114
105
98
109
96
81
104
98
96
97
104
97
NonagriculturaL.
107 |
105
103
99
108
93
83
105
96
93
97
80
103
109
93
82
105
97
93
97
81
107
103
110
93
81
104
97
94
97
81
107
108
96
81
106
98
95
97
79
102
98
107
94
81
105
97
94
97
80
108
108 I
96 !
81
106
99
96
97
103
111
93
81
104
98
94
97
82
104
101
111
93
82
104
98
94
97
81
101
99
108
92
82
102
96
94
97
80
102
99
107
90
81
102
96
94
97
80
101
97
105
95
95
94
95
96
94
95
94
93
145
137
148
150
131
115
128
114
152
154
101
96
93
97
79
96
104
88
79
101
96
92
97
79
95
94
103
87
77
101
95
91
97
78
92
91
91
90
95
94
148
140
144
159
133
113
120
111
162
180
136
139
149 i
142
144
160
133
113
123
114
159
177
136
137
150
140
145
165
135
113
130
123
162
175
135
136
147
137
146
158
134
114
126
123
159
174
134
135
144
133
146
152
132
115
121
118
155
172
131
134
143
132
144
155
131
115
121
118
154
167
131
134
149
143
144
158
131
115
121
117
153
163
131
136
144
146
145
144
131
115
121
117
154
161
132
134
143
141
143
145
132
115
126
116
154
158
132
138
142
132
150
145
129
115
128
111
147
156
127
134
141
132
158
135
128
115
130
111
144
152
125
131
139
129
154
135
127
115
130
110
141
145
123
130
541
820
568
592
123
677
930
592
642
607
693
551
812
530
590
141
677
930
592
603
612
692
568
802
498
596
140
677
930
592
605
610
602
688
558
793
499
596
132
677
930
606
607
595
614
675
560
771
453
598
129
677
968
606
584
614
565
668
560
758
450
586
126
677
969
606
578
603
563
664
561
748
445
579
133
677
969
636
524
590
484
664
562
745
442
593
129
677
969
636
551
556
555
639
670
686
499
487
476
652
645
656
561
567
566
725
705
694
452
455
432
603
608
606
117
114
96
677
685
677
969 1,003 1,003
636
636
636
546
695
456
640
568
684
433
603
97
685
987
636
'512
'647
432
630
571
655
438
602
132
130
118
147
138
124
134
132
120
151
140
125
134
133
123
142
142
128
128
130
122
127
140
127
126
125
120
130
133
125
125
120
127
130
122
124
132
131
134
136
127
128
133
130
134
140
123
130
133
125
134
149
120
131
132
122
134
153
113
126
128
119
128
153
107
120
126
120
126
146
105
115
122
117
128
134
98
115
116
112
123
129 I
88
115
110
109
116
118
86
118
134
138
128
113
153
139
127
87
127
28
151
157
159
138
175
134
139
128
134
138
128
118
149
131
126
87
126
34
151
157
158
138
174
132
150
130
127
88
126
34
151
157
158
137
174
133
136
128
127
148
129
126
88
126
29
150
157
158
138
173
131
136
128
118
144
120
126
87
126
30
151
157
158
138
172
132
131
136
137
130
131
118
118
141
139
123
124
127
126
87 ' 81
125
127
30
31
151
152
158
159
158
157
138
139
172
171
132
137
131 !
118 i
137 I
122 I
127 |
82 ;
129 !
29 j
152 i
161 •
158 !
140 !
171 i
132
137
131
118
136
122
127
82
134
28
151
162
157
140
170
131
138
131
116
133
121
127
82
132
26
151
162
157
140
170
130
139
130
113
130
118
127
83
129
23
152
161
157
139
169
129
138
130
112
128
116
127
84
130
22
151
161
156
140
169
128
138
130
112
125
116
127
85
128
21
151
158
156
140
168
127
138
129
111
118
114
127
86
127
22
150
158
155
139
166
126
138
129
109
114
111
127
86
126
22
150
157
153
139
163
ENGLAND (1913=100)
Total food
Cereals
Meat and fish
Other foods...
Total not food..
Iron and steel
Coal
Other minerals and metals.._
Cotton.__
Wool
Other textiles
Miscellaneous
FRANCE (1913=100)
Farm and food products
Animal products.
Vegetable products
All industrial products
Minerals and metals
Textiles
Hides and leather
Chemical products
Rubber
Paper,.
___
Lumber
Cement and brick, e t c . .
I
130.
137
135
122
152
133
124
115
129 ;
110
134 •
135
120
129 :
129
114
145
131
122
115
127
107
131
129
116
127
I
610
632
708
'503
' 634
'424
623
570
639
439
'613
94
667 ;
987
708
495
622
419
612
562
621
425
607
90
6C7
987
708
GERMANY (1913=100)
Total agricultural products
__
Vegetable foods
Cattle..
_
Animal products
Fodder
Provisions..
_
Total industrial raw materials and
semifinished products. _
Coal
Iron.
Nonferrous metals
Textiles
Hides and leather
Chemicals..
„
Artificial fertilizers
Technical oils and fats _ _
Rubber
Paper materials and paper. _.
Building material
Total industrial finished products.
Producers' goods
Consumers' goods
I
i
i
j
i
I
i
|
|
i
!
::
I
!
'
NOTE.—For corresponding indexes for all commodities, see preceding page. Annual indexes for the groups shown in the table are given in the
April BULLETIN for the years 1925-1929 and also for 1913. For current figures of the group indexes given in this table the following sources may be
used: United States—Wholesale Prices of Commodities, Bureau of Labor Statistics, Department of Labor; England—Board of Trade Journal and
Commercial Gazette, Board of Trade; France—Bulletin de la Statistique Ge"ne"rale de la France, Supplement Mensuel, Statistique Ge*ne"rale de la
France; and Germany—Wirstschaft und Statistik, Statistisches Reichsamt.
322
FEDERAL RESERVE BULLETIN
MAY,
1930
LAW DEPARTMENT
Passage of trust powers upon consolidation of a na- be lawfully agreed upon in the manner specified; and
tional bank and a State trust company.
that all the rights, franchises, and interests of such
State bank "so consolidated with a national banking
There is published below a copy of the association
in and to every species of property, real,
opinion of the Supreme Court of Tennessee in personal, and
mixed, and choses in action thereto
the case of First National Bank of Chattanooga belonging shall be deemed to be transferred to and
v. Chapman Company, 22 S. W. (2d) 245, in vested in such national banking association into which
consolidated without any deed or other transfer,
which it is held that a national bank resulting itandis the
consolidated national banking association
from the consolidation of a State trust company shall holdsaid
and enjoy the same and all rights of property,
with a national bank under the charter of the franchises, and interests, including the right of succeslatter, pursuant to the provisions of the act of sion as trustee, executor, or in any other fiduciary
capacity, in the same manner and to the same extent
Congress of November 7, 1918, as amended by as
held and enjoyed by such State * * *
the act of February 25, 1927, succeeds to the bankwas
so consolidated with such national banking assorights of the State trust company as trustee ciation. * * * No such consolidation shall be in
under a deed of trust covering real estate. The contravention of the law of the State under which such
is incorporated."
decision, which is believed to be of unusual bank
Referring to the last sentence of the section just
interest to national banks, discusses and dis- quoted, it may be observed that the consolidation, as
tinguishes the case of Ex parte Worcester it is termed by Congress, of a State bank with a national
County National Bank, 279 U. S. 347, the bank is not in contravention of the laws of Tennessee.
23 of chapter 20 of the acts of 1913 authorizes
opinion in which was published in the FEDERAL aSection
consolidation or merger of banks incorporated under
RESERVE BULLETIN for June, 1929, at page 407. the laws of this State with other banks, upon the observance of prescribed procedure and permission of the
IN THE SUPREME COURT OF TENNESSEE superintendent of banks. This section of the act of
1913 has been construed to authorize the consolidation
First National Bank of Chattanooga et al. v. Harry E. or
merger of banks chartered under the laws of this
Chapman Co. et al., Dec. 9, 1929, 22 S. W. (2d) 245 State
with national banking associations by the superGREEN, C. J.: This proceeding was brought under intendent of banks, and we have no disposition to
the declaratory judgments statute (Pub. Acts 1923, question this construction.
In Casey v. Galli, 94 U. S. 673, 24 L. Ed. 168, the
c. 29), and the question presented is whether a national
bank with which a State bank has been consolidated Supreme Court sustained the power of Congress to
succeeds, by virtue of the consolidation, to the rights authorize the transmutation of a State bank into a
and title of the State bank as trustee under a trust national bank, although there was no authority in the
deed conveying real estate to secure the payment of charter of the former bank or in the laws of the State
of its incorporation so to change its organization.
certain notes, with power of sale in case of default.
The Chattanooga Savings Bank & Trust Company Doubtless, therefore, it is within the power of Congress
was a Tennessee corporation engaged in the banking to authorize the consolidation of a State bank with a
business with power to act as trustee and in other national bank in the absence of any State legislation
fiduciary capacities. On January 29, 1929, this to the contrary. Petition of Worcester County
institution consolidated with the First National Bank National Bank, 263 Mass. 444, 162 N. E. 217. As
under the provisions of an act of Congress passed just seen, the laws of Tennessee appear to sanction,
February 25, 1927, adding a new section, 3, as an rather than forbid, such consolidation, or remain
amendment to the act of Congress November 7, 1918 silent.
The consolidation of the two corporations, generally
(12 U. S. C. A., sec. 34a). All assets of the State
bank were turned over to the national bank, and the speaking, being valid, the question remains as to the
validity and effect of that provision of section 3 underformer bank ceased the transaction of business.
Previous to this consolidation, W. R. Smith and wife taking to make the consolidation, ipso facto, transconveyed to the Chattanooga Savings Bank & Trust fer to the national bank "the right of succession as
Company, as trustee, described real estate in Chat- trustee, executor, or in any other fiduciary capacity."
The maker of this trust deed entered into a binding
tanooga to secure the payment of a series of notes in
favor of Harry E. Chapman Company, aggregating contract whereby the Chattanooga Savings Bank &
$3,529.13. The trustee was authorized upon default, Trust Company was made trustee under the trust
after due advertisement, to offer the land for sale for deed, with a right of foreclosure and sale in case of
the satisfaction of the indebtedness secured. Smith default, and the proceeds of the sale were to be applied
and wife are now in default in the payment of their "first to paying the costs and expenses of this trust
notes, and the First National Bank is proposing to and its execution," and the remainder of the proceeds
advertise and sell the land according to the terms of to the indebtedness and any balance turned over to the
the trust deed, claiming to have succeeded to the makers of the instrument. A property right was thus
rights, title, and powers of the trustee named in the lawfully conferred upon the Chattanooga Savings
Bank & Trust Company. It was a valuable right.
instrument aforesaid.
Section 3, above mentioned, provides that any Since institutions like this one have been empowered
bank, including a trust company incorporated under to act as trustees and in other fiduciary capacities, a
the laws of any State, may be consolidated with a large part of their business is of this nature, and much
national banking association, located in the same of their income is derived from such sources.
county, under the charter of any such national banking
Upon a review of the authorities, this court has said
association or under such terms and conditions as may that, when a valid consolidation or merger of cor-
MAY,
1930
FEDERAL RESERVE BULLETIN
porations is made with " transfer of rights and properties, and assumption of liabilities between the old
and new companies are effected, the new company
stands in the stead of the old companies, and may
enforce the rights of the old companies, and be subjected
to their liabilities." Miller v. Lancaster, 5 Cold. 514.
Approved in Memphis Water Co. v. Magens & Co.,
15 Lea., 37.
The law is elsewhere declared to the same effect.
"Generally by express provision of the statute or
agreement of consolidation, and by implication in the
absence of a provision to the contrary, the consolidated
corporation succeeds to and may enforce the rights of
the consolidating corporations under contracts made
by them before the consolidation." Clark and Marshall on Corporations, sec. 355b.
See, also, 14a C. J. 1069 and cases referred to in petition of Worcester County National Bank, supra.
We are not able to take the right to administer a
trust of this nature out of the rule governing the contract or property rights generally of a corporation consolidating with another corporation.
The reason ordinarily forbidding the transfer or delegation of the office or duties of trustee to another is
that "the performance of the trust is a matter of personal confidence, which it is a breach of trust in the
trustee to make over to a stranger; and the original
trustee will continue responsible for all the acts of the
person so substituted." Colyar v. Taylor, 1 Cold. 372.
Such consideration can not reasonably influence the
appointment of a corporate trustee. Personal confidence can not be the basis of such a selection. The
stockholders, the officers, the entire management of a
corporation may be expected to change from time to
time. These things are sanctioned by law and constitute, on the part of the corporation, no breach of its
duty as trustee. So the law sanctions the consolidation of one corporation with another corporation organized for like purposes, and those appointing a corporate trustee do so with knowledge that such a union
may take place carrying all the rights and properties
of both entities into combined organization. Such
consolidation, authorized by law, is no more a breach
of trust than a change in corporate officers and directors.
A corporate trustee is supposed to be more desirable
than a personal trustee by reason of continuity of existence and ordinarily, larger financial responsibility.
One designating a corporation as trustee, however,
must be held to do so with knowledge that the trust is
to be administered by those persons to whom the stockholders of that corporation commit the control of its
affairs. In addition to changes in the personnel of its
management, a corporation may increase or decrease
its capital stock, or otherwise amend its charter. One
dealing with a corporation deals with a creature of the
law that may proceed as the law permits.
The views expressed find support in decisions of the
New York Court of Appeals and of the Illinois Supreme
Court.
In the matter of Bergdorf, 206 N. Y. 309, 99 N. E.
714, 717, the testator made a will appointing the Morton Trust Company his executor. Prior to his death
the Morton Trust Company was merged into the
Guaranty Trust Company under authority of a New
York statute. Upon the testator's death the Guaranty
Trust Company applied for letters testamentary. Referring to the statute and the effect of the merger, the
court said:
" I n reading the sections we do not regard the intenion of the testator, but that of the legislature. Their
anguage is broadly and conspicuously comprehensive.
323
The merger transferred to the Guaranty Company 'all
and singular the rights, franchises, and interests o f
the Morton Company ' in and to every species of property, real, personal, and mixed, and things in action
thereunto belonging/ and empowered the Guaranty
Company to 'hold and enjoy the same and all rights of
property, franchises, and interests in the same manner
and to the same extent' as the Morton Company would
if it 'should have continued to retain the title and
transact the business of the Morton Company. This
language means not only that every right, privilege,
interest, or asset of conceivable value or benefit then
held by the Morton Company (except the right to
be a corporation) shall pass into and be absorbed by
the Guaranty Company, but also that every right,
privilege, interest, or asset of conceivable value or
benefit then existing which would inure to the Morton
Company under an unmerged existence should inure
to the Guaranty Company. Nothing appertaining to
the Morton Company was to be lost, forfeited, or
destroyed.
" The designation of the Morton Company as an
executor created a privilege or an interest in the estate
of the testator appertaining to that company. The
privilege or interest was not complete or vested. It
was incomplete, potential, and ambulatory. From it,
undisturbed until the testator's death, issued the
absolute interest of an executorship and the power to
participate in the control and administration of the
testator's estate and receive the legal fees and commissions. That interest had no source or origin other
than the will and the designation. The testator's
death did but complete and vest that which theretofore
existed. It existed, although in an incomplete, imperfect, and dependent condition, from the making of the
will and at the time the merger of the Morton Company
was consummated. Ignorance on the part of the
Morton Company of its existence did not affect it.
Through it that company would have been an executor
and entitled to the letters testamentary if it had
'continued to retain the title and transact the business
of such corporation.' The merger transferred it to
the Guaranty Company, and, in effect, substituted that
company for the Morton Company. The Guaranty
Company was entitled to hold and enjoy it even as
would the Morton Company under an unmerged existence. By virtue of the statute, effective as a part of
the will, the Guaranty Company was designated as
an executor, and as such is entitled to receive the
letters testamentary."
In Chicago Title & Trust Co. v. Zinser, 264 111. 31,
105 N. E. 718, 719, Ann. Cas. 1915D, 931, the testator
by her will nominated the Real Estate Title & Trust
Company as executor. Prior to her death that corporation consolidated with the Chicago Title & Trust
Company under authoiity of an Illinois statute. After
the testator's death the Chicago Title & Trust Company applied for and obtained letters testamentary
and undertook to make a deed to testator's real estate
as the executor nominated in the will was empowered
to do. The right of the consolidated corporation to
qualify as executor and to make such a deed was questioned, but was upheld. The court said:
"By the consolidation of the Real Estate Title &
Trust Company and the Chicago Title & Trust Company the original corporations ceased to exist, and the
appellee, as the consolidated corporation, acquired and
succeeded to all the faculties, property, rights, and
franchises of its component parts and became subject
to all the duties, obligations, and conditions imposed
upon them. Robertson v. City of Rockford, 21 111.
324
FEDERAL RESERVE BULLETIN
451; Chicago, Rock Island & Pacific Railroad Co. v.
Moffitt, 75 111. 524. The material question here is
whether the general rule that a trustee can not delegate
his authority to another is an obstacle to the exercise
of a power by the appellee to act as executor or trustee
where one of the constituent corporations was named
as such. That general rule rests upon the ground that
the selection of a trustee implies personal confidence
in his discretion and judgment. If a power is given to
an executor or trustee which is not ministerial or given
for the purpose of executing a declared trust which the
court can enforce but which involves the exercise of discretion and judgment, the power can not be delegated
or transferred to another, either by the trustee or a
court. The rule, however, can not be applied to the
case of a corporation, because the element of trust in
the judgment and discretion of an individual is entirely
wanting. A corporation is without personality, and
if it is selected as trustee or executor there can be no
reliance upon individual discretion or even upon the
continuance of the same administration. Etta Nelson,
in naming the Real Estate Title & Trust Company as
executor and trustee, knew that its directors, officers,
and stockholders might change from time to time, and
that the statute authorized a change of name or place
of business, enlargement, or change of the object for
which the corporation was formed, an increase or decrease of capital stock or change in the number of shares
or par value, increase or decrease of the number of
directors, and the consolidation of the corporation with
any other corporation then existing or that might thereafter be organized. She therefore contemplated that
these changes might occur, and that the Real Estate
Title & Trust Company might be consolidated with
some other corporation, such as the Chicago Title &
Trust Company, and that it would thereby cease to
exist and become a component part of a new corporation. A consolidation took place and a new corporation was created from the original corporations, with an
enlarged capital stock and unimpaired franchises. The
appellee was entitled to execute the trust, and the chancellor did not err in overruling the demurrer."
In petition of Worcester County National Bank,
supra, the Supreme Judicial Court of Massachusetts
held that so much of section 3 aforesaid as undertook
to transfer to a national bank the right of a State bank
to the office of executor was unconstitutional. The
Massachusetts court construed section 3 as undertaking
to transfer the office held by the State bank to the national bank by force of the consolidation without more.
The court said that no one, under the laws of Massachusetts, was authorized to act as an executor without
approval of a probate court.
Upon appeal the Supreme Court of the United States,
in an opinion (279 U. S. 347, 49 S. Ct. 368, 73 L. Ed.
733, 61 A. L. R. 987) delivered May 13, 1929, differed
from the Massachusetts court in the construction given
to section 3. The Supreme Court, in view of the
provisions of the Massachusetts laws and of the expressed desire of Congress to avoid in section 3 anything
in contravention of the law of the State in which the
State bank was located, said, in substance, that section 3 upon consolidation only undertook to put the
national bank in a position to apply for letters of administration ; that the consolidation alone was not sufficient to effect a substitution of the national bank for
the State bank as executor. The Supreme Court therefore concluded that section 3 was not unconstitutional.
In Tennessee, since no person nominated as executor
may enter upon the administration of the deceased's
MAY,
1930
estate without letters testamentary (Thompson 7sShannon's Code, sec. 3933), and since under section
4259 et seq., Thompsons-Shannon's Code, detailed
provisions are made for the qualification and supervision of a guardian, it is doubtless true that such a
consolidation of a State bank with a national bank
will not of itself and alone justify the national bank in
undertaking to execute such trusts as these. The
primary right to administer such trusts doubtless
follows the consolidation, but the national bank must
properly quality as executor or guardian before undertaking to proceed in such capacities.
Where, however, the authority to administer a trust
is altogether derived from the instrument appointing a
State bank trustee, we are of opinion that a consolidation of a State bank with a national bank under section 3, without more, substitutes the national bank for
the State bank as such trustee with the same rights,
title, duties, and powers. This, for the reason as heretofore set opt, that the maker of the instrument appoints with imputed knowledge of the law, under which
a corporation is a metamorphic creature subject to
transformation.
There has been some discussion of the present status
of the Chattanooga Savings Bank & Trust Company—
whether it is in existence, and if so, for what purposes.
Thompson's-Shannon's Code, sections 2071, 2074. We
need not go into this. The consolidation being valid,
under the provisions of section 3, the right to executethis trust has clearly passed from the State bank.
The decree of the chancellor is affirmed.
Authority of Congress for erection of Pittsburgh
Branch Bank Building.
The following is a copy of a joint resolution
of Congress approved April 14, 1930, authorizing the Federal Reserve Bank of Cleveland to
erect a building for its Pittsburgh branch, costing not more than $875,000 exclusive of the cost
of vaults, permanent equipment, furnishingsr
and fixtures.
[PUBLIC RESOLUTION—No. 65—71ST CONGRESS
[H. J. Ees. 227]
Joint resolution authorizing the erection of a Federal reserve branch:
building in the city of Pittsburgh, Pennsylvania
Resolved by the Senate and House of Representatives of
the United States of America in Congress assembled, That
the Federal Reserve Bank of Cleveland be, and it i&
hereby, authorized to contract for and erect a building
in the city of Pittsburgh, Pennsylvania, for its Pittsburgh branch, on a site now owned by it, provided the
total amount expended in the erection of said building,
exclusive of the cost of vaults, permanent equipment,
furnishings, and fixtures, shall not exceed the sum of
$875,000: Provided, however, That the character and
type of building to be erected, the amount actually to*
be expended in the construction of said building, and
the amount actually to be expended for the vaults, permanent equipment, furnishings, and fixtures for said
building shall be subject to the approval of the Federal
Reserve Board.
Approved, April 14, 1930.
MAY,
325
FEDERAL RESERVE BULLETIN
1930
Amendment to law regarding notice required of banks Federal Reserve Act, as amended (United States Code,
withdrawing from Federal reserve system.
title 12, section 345), be further amended to read as
There is published below the text of an act follows:
"The aggregate of notes, drafts, and bills upon which
of Congress approved April 17, 1930, amending any person, copartnership, association, or corporation
section 9 of the Federal Reserve act so as to is liable as maker, acceptor, indorser, drawer, or guarrediscounted for any member bank, shall at no
authorize the Federal Reserve Board in its dis- antor,
time exceed the amount for which such person, cocretion to permit State member banks of the partnership, association, or corporation may lawfully
Federal reserve system to withdraw from mem- become liable to a national banking association under
bership without waiting six months after filing the terms of section 5200 of the Revised Statutes, as
Provided, however, That nothing in this
notice of intention to withdraw, as heretofore amended:
paragraph shall be construed to change the character
required by law.
or class of paper now eligible for rediscount by Federal
reserve banks."
[PUBLIC—No. 134—71ST CONGRESS]
Approved, April 12, 1930.
[H. R. 8877]
An act to amend section 9 of the Federal reserve act, as amended
Be it enacted by the Senate and House of Representa- Amendment to law facilitating the cancellation of
Federal reserve bank stock of member banks
tives of the United States of America in Congress assembled, That the ninth paragraph of section 9 of the Fed- which have ceased banking operations.
eral Reserve Act (United States Code, title 12, sec. 328),
There is published below the text of an act
as amended, be further amended by inserting therein,
immediately before the proviso now contained therein, of Congress approved April 23, 1930, amending
the following: "Provided, That the Federal Reserve sections 6 and 9 of the Federal reserve act,
Board, in its discretion and subject to such conditions so as to facilitate the cancellation of Federal
as it may prescribe, may waive such six months' notice
m individual cases and may permit any such State reserve bank stock held by a member bank
bank or trust company to withdraw from membership which has discontinued its banking operations
in a Federal reserve bank prior to the expiration of six without a receiver or liquidating agent having
months from the date of the written notice of its inten- been appointed. It is provided that if a nation to withdraw."
tional bank which has not gone into liquidaApproved, April 17, 1930.
Amendment to law regarding rediscount by Federal
reserve banks of the paper of one borrower.
There is published below the text of an act
of Congress approved April 12, 1930, amending
the fourth paragraph of section 13 of the Federal reserve act so as to make the limitations
upon the rediscount by Federal reserve banks
of the paper of one borrower conform more
closely to the limitations on loans to one borrower by a national bank. Under the new law,
a member bank may rediscount with a Federal
reserve bank the same amount of paper of a
single borrower as a national bank may acquire from a single borrower under the provisions of section 5200 of the Revised Statutes.
The new law does not in any way change the
character or class of paper eligible for rediscount.
tion and for which a receiver has not already
been appointed for other cause shall discontinue
its banking operations for a period of 60 days,
the Comptroller of the Currency may, if he
deems it advisable, appoint a receiver for such
bank and the Federal reserve bank stock held
by it may thereupon be cancelled. It is also
provided that if a State member bank ceases
to exercise banking functions without a receiver or liquidating agent having been appointed therefor the Federal Reserve Board
may, after hearing, forfeit the membership of
such bank in the Federal reserve system.
[PUBLIC—No. 163—71ST CONGRESS]
[H. R. 6604]
An act to amend sections 6 and 9 of the Federal Reserve Act, and for
other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 6 of the Act of December 23, 1913,
known as the Federal Reserve Act (United States
[H. R. 9046]
Code, title 12, section 288), be amended and reenacted
An act to amend the fourth paragraph of section 13 of the Federal to read as follows:
Reserve Act, as amended
" S E C . 6. If any member bank shall be declared
Be it enacted by the Senate and House of Representa- insolvent and a receiver appointed therefor, the stock
tives of the L/nited States of America in Congress as- held by it in said Federal reserve bank shall be canceled,
sembled, That the fourth paragraph of section 13 of the without impairment of its liability, and all cash-paid
[PUBLIC—No. 120—71ST CONGRESS]
326
FEDERAL RESERVE BULLETIN
subscriptions on said stock, with one-half of 1 per
centum per month from the period of last dividend, if
earned, not to exceed the book value thereof, shall be
first applied to all debts of the insolvent member bank
to the Federal reserve bank, and the balance, if any,
shall be paid to the receiver of the insolvent bank.
"If any national bank wnich has not gone into
liquidation as provided in section 5220 of the Revised
Statutefe (United States Code, title 12, section 181)
and for which a receiver has not already been appointed
for other lawful cause, shall discontinue its banking
operations for a period of sixty days the Comptroller
of the Currency may, if he deems it advisable, appoint
a receiver for such bank. The stock held by the said
national bank in the Federal reserve bank of its
district shall thereupon be canceled and said national
bank shall receive in payment therefor, under regulations to be prescribed by the Federal Reserve Board,
a sum equal to its cash-paid subscriptions on the shares
canceled and one-half of 1 per centum a month from
the period of the last dividend, if earned, not to exceed
the book value thereof, less any liability of such national bank to the Federal reserve bank.
"Whenever the capital stock of a Federal reserve
bank is reduced either on account of a reduction in
MAY,
1930
capital stock of any member bank or of the liquidation
or insolvency of such bank or on account of the appointment of a receiver for a national bank following discontinuance of its banking operations as provided in
this section, the board of directors shall cause to be
executed a certificate to the Comptroller of the Currency showing such reduction of capital stock and the
amount repaid to such bank."
SEC. 2. That the eighth paragraph of section 9 of the
Federal Reserve Act as amended (United States Code,
title 12, section 327), be amended and reenacted to
read as follows:
"If at any time it shall appear to the Federal Reserve Board that a member bank has failed to comply
with the provisions of this section or the regulations of
the Federal Reserve Board made pursuant thereto,
or has ceased to exercise banking functions without a
receiver or liquidating agent having been appointed
therefor, it shall be within the power of the board after
hearing to require such bank to surrender its stock in
the Federal reserve bank and to forfeit all rights and
privileges of membership. The Federal Reserve Board
may restore membership upon due proof of compliance
with the conditions imposed by this section."
Approved, April 23, 1930.
327
FEDERAL RESERVE BULLETIN
M A Y , 1930
DETAILED FEDERAL RESERVE STATISTICS, ETC.
FEDERAL RESERVE BANKS—RESOURCES AND LIABILITIES IN DETAIL AND FEDERAL RESERVE NOTE STATEMENT
fin thousands of dollarsj
1930
Apr. 30
1929
Mar. 31
A p r . 30
RESOURCES
Gold with Federal reserve agents
Gold redemption fund with United States Treasury
Gold held exclusively against Federal reserve notes
Gold settlement fund with Federal Reserve Board
Gold and gold certificates held by banks
__
Total gold reserves
Reserves other than gold
Total reserves
Nonreserve cash
Bills discounted 1
._ _
_
Bills bought: 2
Outright
Under resale agreement
Total bills bought
United States securities:
Bought outright
Under resale agreement
Total United States securities
_
Other reserve bank credit:
Other securities
Foreign loans on gold
Due from foreign banks
Reserve bank float3
Total reserve bank credit outstanding
Federal reserve notes of other reserve banks
Other uncollected items not included in float Bank premises
All other resources
._
Total resources
._
Federal reserve notes:
Held by other Federal reserve banks
Outside Federal reserve banks__
Total notes in circulation
Deposits:
Member bank—reserve account
Government _ _ _ _
.
Foreign bank
Other deposits
Total deposits.
Deferred availabilitv items
Capital paid in
Surplus.. .
. . . .
.
All other liabilities
Total liabilities
_
.
_
.
_
--
_
_
],642,214
41,097
1,695,084
51,852
1,322,230
62,131
1,683,311
634,847
754,502
1,746,936
601,913
666, 395
1, 384, 361
663,105
744, 024
3,072,660
178,937
3, 015, 244
182,428
2,791,490
173,193
3,251.597
62;607
3,197, 672
61,489
2,964,683
71,966
233,452
310, 228
934,468
161,845
47, 719
143, 563
134,973
129, 242
49, 327
209, 564
278,536
178, 569
527,124
2,385
526, 739
8,490
140,121
23,250
529, 509
535, 229
163, 371
9,700
8,780
711
22,882
723
15,779
7,366
14,899
725
27,024
1,005,818
1,149, 275
1,326,422
20,968
562,769
58, 580
11, 542
20, 008
481, 482
58, 507
11, 543
13, 333
634, 338
58,739
7,302
4,973,881
4,979,976
5,076,783
20,968
1,486,300
20. 008
1, 574; 247
13, 333
1, 649, 518
1, 507, 268
1, 594, 255
1,662, 851
2,384,721
22,674
5,365
21,173
2, 366, 934
40, 326
7,296
20, 423
2, 281, 605
27,953
8,980
26,132
2,433,933
2,434,979
2, 344, 670
562,769
174,209
276, 936
18,766
481,482
174, 227
276,936
18,097
634, 338
155,912
254, 398
24,614
4,973,881
4,979,976
5,076, 783
465,458
482,462
345,071
1,826,987
319, 719
1, 507,268
1,916,435
322,180
1, 594, 255
2,057, 244
394, 393
1, 662, 851
1,642,214
430,807
1, 695,084
576, 358
1, 322,230
1,056,854
2,073,021
2, 271,442
2, 379, 084
LIABILITIES
.
___
. . .
.
_.
Contingent liability on bills purchased for foreign correspondents
_
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve banks4 by Federal reserve agents
Held by Federal reserve banks
In actual circulation.
__
.
Collateral held by agents as security for notes issued to banks:
Gold
Eligible paper
__
Total collateral
_.
_
_.
1 Includes bills discounted for intermediate credit banks as follows: Latest month, $1,451,000; month ago, $1,043,000; year ago, $9,388,000; and
notes secured by adjusted service certificates discounted for nomnember banks as follows: Latest month, $38,000; month ago, $38,000; year ago, $133,000.
a Includes bills payable in foreign currencies as follows: Latest month, $1,054,000; month ago, $1,040,000; year ago, $1,036,000.
'4 Uncollected items (exclusive of Federal reserve notes of other Federal reserve banks) in excess of deferred availability items.
Excludes " F . R. notes of other F. R. banks," which are consequently included in "actual circulation."
328
FEDERAL RESERVE BULLETIN
MAY, 1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON JANUARY 31, 1930
[In thousands of dollars]
Total i Boston
New
York
Phila- Cleve-
delphia
land
Rich- Atlanta Chicago
mond
San
St. Minne- Kansas
Louis apolis City Dallas Francisco
RESOURCES
Gold with Federal reserve
agents
_
Gold redemption fund with
U. S. Treasury
Gold held exclusively
against Federal reserve
notes
Gold settlement fund with
Federal Reserve Board
Gold and gold certificates held
by banks
^
1,650,164
189,917;
58,258 1
l,808|
1, 708,422| 191, 725!
650,124 :
601,166 1
33, 516:
j
27,412:
71,401 115,250 309, 564 79,045
61,157
80,000
1, 734J
3,970
1,741
254,848 124,600| 143,063
73,541 117, 750 320, 844 80, 779
65,127
81, 741
31,182
3.222
265,346
22,664J
80,219
21,559
23,480
12,060
43,166
16,212
37, 703
350,339
40,382,! 41,792
11, 725
5,503
7,248
9,135
26,231
238,594 120,000. 138,750
16,254
4,600
4,313
2,140
2,500
11,280
29, 723 216,763
1,459
6,459
!
13, 371 80,828
4,444
69,070
7,885
Total gold reserves.
Reserves other than gold.
2,959, 712] 252, 653
196,862, 22,848
870, 533 187,646! 265,074 106,825 135, 565 470, 742 112,144
55,062 19, 300 13,943
9,423 16, 953 17,417 11,308
82,690 132,155
4,348
8,444
56, 529 287,156
5,896 11,920
Total reserves
Nonreserve cash
Bills discounted:
Secured by U. S. Government obligations
Other bills discounted
Total bills discounted...
Bills bought
TT. S. Government securities:
Bonds
_
Treasury notes
Certificates and bills
3,156, 574i 275, 501
5,627
66, 647;
925, 595 206,946. 279,017 116,248 152,518 488,159 123,452
15, 007
3,3001
4, 963
4,972 3,665 6,865 8,280
87,038 140, 599
1,351
2,745
62, 425 299,076
5,158
4,714
Total U. S. Government
securities
_.
Other securities
Total bills and securities.
Due from foreign banks
_.
Federal reserve notes of other
Federal reserve banks
_.
Other uncollected items
Bank premises
All other resources
Total resources
_.
208,175
186,059;
13,282
11,474
31,465
15, 360
394,234;
294,307!
24, 756
15,183
69,584
171, 410
237,58"
3,676
6,323
16, 891
46, 825
129,169!
i
11,3831
88, 380
113,037
478, 581
12, 430
8,317
7,130
1,649
3,872
11,668
14, 553
52,491 57,980 25, 823 28, 729 78, 780 15,447
9,099 22, 376| 10, 400 16, 538 23,008 13,065
5,521
8,202
26, 221
614
11, 722; 19,939
10,563 36,090
24, 739
27,752|
37, 532
20,448
7,003 4,530 53, 665
18,820 24,199 25,115
2, 757
8,965
11, 568
8,371
4,151
12,400
13,715
3,483
1,521
4,898
34
3,381
5,373
25, 680 1,821
12,264 10, 481
32, 532 6,964
5,730
5,071
263
2,800
9,584-6,000 10, 600
10,05li 1,216
26,890
1,000
212,800: 42,898 30,266!
7,400 1,000 1,500
9,902
8,788
70,476
1,500
19, 266
30
16, 781
3,063
25, 635 11,816
1,179,552|
7211
67,829
53
396,194 105,488 112,122
237
70
72
46,125
30
54,055 173, 764 47,808
26
26
30, 504
16
29,898
22
27,6231
540,223
58, 267,
12, 546
226
56,246
3,580
84
10,197
1,493 2,204
346
148, 763 49,880 49,126 41,555
15, 664 1,762 7,058 3,194
17" 1,060
2,313
24, 567
3,811
356
1,618
9,523
2,018
485
1,353
30, 244
3,972
216
47,920 67, 845
22
50
5491 2,746
20,835i 28,898
1,876! 4,379
393
379
3,792
14,067
25,039
1,342 3,236
17, 617 62,969
2,658 8,295
697
4,026
5,042,153
409,146 1,515, 637 367,969 454,911 215,021 235,90: 744,082 210, 613 132,553 209,049 138,734 408, 531
1, 710, 566
169, 351
LIABILITIES
Federal reserve notes in actual
circulation
Deposits:
Member bank—reserve account
Government.
Foreign bank
Other deposits
Total deposits
Deferred availability items....
Capital paid in
Surplus
All other liabilities
Total liabilities
Reserve ratio (per cent) _
273, 770 146,855 175,072 83, 343 130, 858 294, 400 87, 793
62, 324
81, 552
39,394 165,854
76, 664
2,611
198
233
48, 272
1,109
126
182
84,467
1,374
165
216
62,169 171,902
2,412 2,480
379
165
8,317
328, 111 79, 706
58, 738 25, 580
20, 222 5, 254
40, 094 10, 877
2,517 1,403
49, 689
9,444
3,082
7,143
871
86, 222
27, 346
4,304
9,162
463
64,785
20, 511
4,415
8,935
694
2,293, 386| 146, 873
4,072
37, 570
406
5,732
19, 022
935, 730 131,307 180,917
5,924 2,348 3,588
2,050
549
532
8,091
884
106
2, 355, 710 151,440
511, 800 54, 751
11, 663
171, 524
21, 751
276,936
190
15, 617
951, 795
138, 529
67, 405
80,001
4,137
5,042,153
77.6
134,293
42, 958
16,483
26, 965
41
65,300 65, 653 324,132
6,670 2,315 2,667
735
197
230
577
166
122
185,938 72, 322 68, 331
47, 662 39, 827 18, 514
15, 807 6,055 5,421
29,141 12,496 10, 857
1,291
1,926
978
183, 078
27,940
11,413
19,514
732
409,146 1, 515, 637 367,969 454,911 215,021 235, 907 744,082 210,613 132,553 209,049 138, 734 408, 531
73.7
77.7
;3.8
334,941 169, 580 204,707 97,936 159, 631 350,476 104,498
68,564
94,083
16, 705
6,240
12,531
169, 351
273, 770 146, 855 175,072 83,343 130, 858 294,400 87,7931 62,324
81,552
39,394! 165,854
189,917
39,860
238, 594 120,000 138,750 71,401 115,250 309,564
159,906 56,963 79,853 34,936| 44,850| 101,589
80,000
26, 531
29,723 216,763
85.!
75.5
73.6
77.3
74.7
76.6
78.4
59.9
85.7
FEDERAL RESERVE NOTE
STATEMENT
Federal reserve notes:
Issued to Federal reserve
banks by Federal reserve
agents...
_
2,077,092
Held by Federal reserve
banks i
366,526
In actual circulation
1,710, 566
Collateral held by agents as
security for notes issued to
banks:
Gold
1,650,164
Eligible paper...
214, 373
45,022
61,171
22, 725 29,635
14,593
28, 773 56,076
79,045
28,403
61,1
13,450
. 1 Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation."
47,473 230,830
8,079j
64,976
22,179j 55,869
329
FEDERAL RESERVE BULLETIN
M A Y , 1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON FEBRUARY 28, 1930
[In thousands of dollars]
Total
New
York
Boston
I
Philadelphia
Cleveland
Rich- ! A + 1 Q T I + J
mnnii
mond
I AUdllldl
Chi-
St. I M i n n e - Kansas
cago I T.niiio
Louis !! onnlio
apolis
n n r T n
City
n i + -tr
'
San
Dallas i Fran! Cisco
RESOURCES
Gold with Federal reserve
agents.
Gold redemption fund with
U. S. Treasury
_
1,619,405 i 179, 91'
54,297^
Gold held exclusively
against Federal reserve notes
Gold settlement fund with
Federal Reserve Board.
Gold and gold certificates held
by banks
238, 594 125,000 135,750
1, 673;
1,673,702;; 181, 590|
15,675
3,234
74,901) 116,170; 309,564!
4,247
1,677
2,438;
11,208|
67,045;
254,269 128,234 139,997
76, 578 118,608 320,772: 69,077
646,153
28,938!
211, 829;
48, 962
94, 236
17,411
644, 884
24, 998 j
395, 556;
26, 337
44, 228
7,275
13,179; 105,444:
5,812;
83,1731
61,230
80,000
1,737
2,032
29,471! 201,763
1,9571
6,452
13,197)
81,737
31,428 208,215
24,341;
14,051
38,974
12, 596J
36,192
8, 748j
5,133;
8,287
9,84s!
25,492
Total gold reserves..
Reserves other than gold.
2, 964, 739 235, 526;
186, 287
19,120!
861, 654 203,533, 278,461 101,264] 137,599 509,389 102,166: 82, 381 [ 128,998
59, 252 16,520 12,388
8,365 14,108 17,037 10,867
3,826;
7,625
53,869; 269,899
6,017 11,162
Total reserves.
Nonreserve cash
3,151,026:; 254,646!
60,874;i
5,912;
920,906! 220,053! 290,8491 109,629! 151,707 526, 426 113,033!
13,300! 3,266i
3,794i
4,804;
3,440
6,984
5, 920;
86,207| 136,623
1, 759;
2, 047
59,886, 281,061
4, 275;
5, 373
418; 9,401
1,861 11,980
Bills discounted:
Secured by U. S. Government obligations
Other bills discounted
Total bills d i s c o u n t e d - Bills b o u g h t . . _
!
;
U. S. Government securities:
Bonds
._..
Treasury notes
Certificates a n d bills
Total U. S. Government
securities
Other securities
!
182, 0051
170,912;;
13, 714
13,019
29, 545
19,100
32, 5'
15,436
4, 670
2,823
23,527
35, 454
20, 979
10,368!
15,528
352,9171
270, 250!
26,733|
13,404J
48,645| 45,817j 48,008
48, 680j 11,694| 32,870|
20,198
14,139;
26,350
19,975
56,433
30,993
19, 245
20, 925!
i
69,610;
219,505
190,819
,
3,953!
9,980
13, 5091
1
!
479,934I; 27,442'
13,080|
1,000;
Total bills and securities. 1,116,181! 68,579;
Due from foreign banks
721j 53'
Federal reserve notes of other '
j
!
Federal reserve bunks
24,721
235:
Other uncollected items
606,514 61,8421
Bank premises
58,419
3,580;
All other resources
14,861'
55
Total resources
LIABILITIES
Total liabilities.
Reserve ratio (per cent)
8,877
12,366; 4,067! 2,676)
2, 676J 2,245
f\(\,AHA
1O
AOOi
IT
OAA* O
OO/»i
18,028;
17,6641
3,336:
109,990 21,390:
21390
10350
4505
10,350
4,505
93,829
818
818 26,217
26,217 1,802;
A Orrt
4,852!
19,227
227 12,099J
536!
3144! 25,935j
25935
3,144!
5,36o!
216,185
11,050
8,814
43,485 30, 690
1,000.
10,086
324,560 101,996 111,5681
237
70
72;
10, 857
162,432
289
51,993!
1,762
255
=* 89l|
i
1,594
57,277
7,058
1,047
71,3719, 266|
30!
44,423 55,139| 158,805;
30
26
97 i
1, 549
46, 256,
3, 204;
1, 303
962
21,875
2, 658
4, 057|
2,080;
75,371)
8,295:
746)
2, 279:
11, 794|
21, 381
8, 477
5,704:
374
6,5631 1,146
6,563
4761'
4,761 1, 543'
17,028
3, 063j
1, 939
10,931
17, 202
7,756
12,870
16, 367;
24, 958
40, 932
9,116
272
6,150
10,470
5, 369 1,119
20, 635|
11,861
59,4661 31,10l| 32,9211 49,872 77,751
26;
16;
22J
22
50
1,161;
1,897 1,336;
496: 2,265
26,445! 11,0361 37,657 23,706 30,624
3,811,
2,018! 3,972
1,876
4,521
402
393)
520:
186i l,006 :
; 5,033,317 394,902 1,452,847 379,684J 473,259 211,198 239,864| 778,804J 210,255! 134, 554J 214,764) 141,139 402,047
i
Federal reserve notes in actual i
circulation
J; 1,655,976; 161,114,
Deposits:
Member bank—reserve ac- i
count
' 2,260,130 136,149
Government
'
42,289
2,923^
Foreign bank
6,638'
470!
Other deposits
18,385
41 j
Total deposits—
Deferred availability items
Capital paid in
Surplus
All other liabilities
23,899
21,918!
j
i
'
2,327,442 139, 583|!
583,197 60, 645
171,841 11, 606!
276,936 21, 751
17,925
I
222,352 150,718! 182,599
79,773; 131,890 300,914j
85,453
60, 261
79,028
19,863 162,011
894,035 134, 798 185, 282
1,722
20,781
1,948
2,378
616
635
92
8,271
799
63,644! 64,964! 336,249
1, 764,
1,159! 4,549
229!
851
267i
102!
936
103,
76, 204 50, 761
l', 787!
1,033
228j
146
621
161
85,920
1, 536|
190i
61,590: 170,534
1,222.
1, 865
190
438
56! 7,105
925,465 137,454 188,438
152, 547 47, 366 55,811
67, 513 16, 625 15,811
80,001 26, 965 29,141
4,969
556 1,459
65, 778! 66,454 342, 585! 78, 840 52,101
45, 623: 23,187 72,256! 28,347! 11,092
5, 278;
3,090
5,451 20, 237!
6,063'
12,496 ^ 10, 857 40, 094 10, 877! 7,143
867
1,460;
l,465j
2,0251 2,718
87,744) 63,058! 179,942
34,077 23,797) 28,449
4,329
4,433! 11,405
9,162
8, 935i 19, 514
AOA\
1 HKQ
7OA
424!
1,053
726
i 5,033,317 394,902! 1,452,847 379, 684 473,259; 211,198' 239,864! 778,804 210, 255 134, 554 214, 764; 141,1391 402, 047
78.3
71.5
78.2
85.3
302,432 171,969 209,610; 105,793' 160,133 344,881 100,119
76.9;
75.9
85.6!
75.1
76.9j
10.3
59.8;
8.0
FEDERAL RESERVE NOTE STATEMENT
Federal reserve notes:
Issued to Federal reserve
banks by Federal reserve
agents
2,027,350 201, 335;
Held by Federal reserve
banks 1
371,374
40, 221;
In actual circulation
Collateral held by agents as
security for notes issued to
banks:
Gold
Eligible paper
1,655,976
161,114;
I
80,080
;
1
!
,
43,967!
65,923
89, 717
14, 666
5,662
10, 689
13,968|
59, 596
21,251| 27,01l|
222,352 150, 718 182, 599
26,020! 28,243
79,773! 131, 890! 300,914
85, 453
60, 261
79,028
39,863| 162,011
238, 594 125,000 135, 750
85, 321 47,670 78,634
74,901! 116,170 309, 564
33,169; 45,387 87,180
67,045
39, 732
61, 230
13, 672
80,000
29,440
29,471, 201,763
28,810| 65,608
I
1,619,405! j 179,917|
594,683! j 40,060|
ii
I
Excludes "Federal reserve notes of other Federa Ireserve banks," which are consequently included in "actual circulation."
53,83lj 221,607
330
FEDERAL RESERVE BULLETIN
MAY,
1930
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON MARCH 31, 1930
[In thousands of dollars]
Total
Boston
New
York
Richmond
Minne- Kansas j
St.
Atlanta Chicago Louis apolis
City | Dallas
San
Francisco
|
RESOURCES
Gold with Federal reserve
agents. __
Gold redemption fund with
U. S. Treasury
1,695,084,; 184,917
51,852'-
1,477
Gold held exclusively
against Federal reserve notes
1,746,936 i 186, 394
il
Gold settlement fund with
601,913 | 16,835
Federal Reserve Board
Gold and gold certificates held
666,3951 j 29,584
by banks
_.
Total gold reserves.
Reserves other than gold.
i Phila- CleveI delphia land
! 3, 015, 2441; 232,813
•
182,428'; 17,605
3,197, 672'' 250,418
Total reserves
61,489 j,
9,437
Nonreserve cash
j
Bills discounted:
Secured by U. S. Govern- ; ;
172,272,
9,804
ment obligations
Other bills discounted
j 137,956!; 9,805
258, 5941 135, 000 175, 550
3,113
15,402
4,048
33,800 179,763
76, 345
55,845
80,000,
1,982
1,951
1,7121
74,704 134,947 319,949
78,327
57,796
81,712;
35,247 186,153
9,672 109,826
28, 741
16, 706
45, 282^
15, 681
37, 202
4, 6111 10,063;
8, 705
24,090
73,000 133,270 309,000
1,704
1,677!
10,949
1,447
6,390
I
273,996; 138,1131 179, 598
172, 630
45, 594
78,027
25, 717
401,114|
31,392
47,103
7,544
5,692
89,609
847, 7401 215,099 304, 728 107,965 150,311 519,384 113,956 79,113| 137,057!
9,153;
52,140 16 474 12, 316
7,598 15, 346 17,862[ 11,9881 4,817
12, 371
70,
20, 322
59, 633 247,445
6, 593 10,536
231 573 317, 044 115, 563 165, 657 537, 246 125,944! 83,930 146,210 66, 226 257,981
4,435
5,070
4,563i
1,429
2,019;
7,144
3,388
4,137
3 589 3,907
15 570 18, 713
17 733
12,968
2,884
12,052
643
14,880
24, 843
13,118
6,467!
8, 292!
435
2,030
3,157!
9,367;
704
5, 697
18, 584
11,692
1
Total bills discounted i
Bills bought
U. S. Government securities: j
Bonds
Treasury notes
i!
Certificates and bills
310, 228
278, 536
19,609
16, 064
90, 790;
123,047,
33,3038,347;
31,68l|
17,187'
14, 936
9,687
15, 523
14,614
37,961
20, 666
14, 759
8,991
2,465
11,973
12, 524
9, 567
6,401
8,379
30, 276
30, 014
42, 575;
195, 043
297,611
1,190
12, 646
26,487
3,889!
77, 588
134, 367
978:
17,318:
27,828j
481
17,913
16, 601
1,299
3, 660
120
4,508
4,163
20, 564
16, 285
33, 745
645
11, 5111
7,112
4,683
6,502
7, 209
81
1,886
3,957
8,279:
6, 977,
10,381
366
18, 249
18,080
Total U. S. Government i
securities
_J
Other securities
535, 229;
8, 7801
40, 323
1,000
215, 844
6, 750
46,124
1,000
34,995
12, 640
8,791
70, 594
19,268!
18,394,
5,924
25,637!
36,695
Total bills and securities. ! 1,132, 773
Due from foreign banks
723
t
Federal reserve notes of other!
Federal reserve banks
20,008
Other uncollected items
497,261
Bank premises
; 58,507
All other resources
\
11,543
76,996
53
436,431
238
18,774
83,863
70
72
37,263: 38,928 129,221
26
97
30!
43,0481 32,832
26
17
28,015
22
40,417
22
96,985
50
281
55,036
3,580
55
297
5,680;
132, 562 41,744
15,664:
1,762
2, 526 i
145
48,847
7,058
1,112
1,619
992; 2,853
38,727| 16,090:, 61,617
3, 204
2,658! 8,295
6711 3,830
797
1,423:
20,718'
3,811i
1,599^
10,7932,018
1,597
28,891;
3,972:
292
523,
Total resources
960
30
I
-
541 i 2,166
18,737; 23,499
1,8761 4,609
879:
450
2631
4,979,976 395,856 1,505,352! 367,954 462,863| 201,214 231,569; 747,270 199,825 133,141' 210,9
133,133! 390,810
LIABILITIES
Federal reserve notes in actual
circulation
Deposits:
Member bank—reserve account
Government
Foreign bank
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
Total liabilities..
Reserve ratio (per cent)
1, 594,255
163,400
201,174 147,472 181, 598
74, 029
129, 772 285, 644
80, 543
60, 770
77,820
35, 250 156, 783
2, 366,934
40, 326
142,966 1,002, 241 133, 837 181,994
1,102
3,162
2,922
IV
491
644
664
2,842
86
1,7
214
9,262
62, 312
6,095
279
104
63, 556 334, 828
2,123
3,156
239
145
527
77,783
1,197
239
339
49, 841
87,017
3,905
199
62,495 168,064
1,394
2,052
199
458
49
7,608
68, 790
38, 904
6,002
12,496
66, 063 339,400
17, 373 59,188
5,454 20, 256
10,857 40,094
2,050
2,688
79, 558
22, 062
5,300
10,877
1,485
51, 781
9,379
3,076
7,143
91, 324
27, 934
4,334
9,16f
415
64,137 178,182
19, 623 24,171
4,425 11, 420
8,935 19, 514
763
740
7, 296
20,423
2,434, 979
481, 482
174, 227
276,"""
18,097
144, 645
54,159
11, 669
21,751
232
1,025, 954
122, 925
69, 719
80,001
5,579
137, 857 187, 288
38, 350 47,414
16, 625 15, 947
26,965 29,141
685
1,475
' 153
178
4, 979, 976 395,856 1, 505, 352 367, 954 462, 863 201, 214 231, 569 747, 270 199, 825 133,141 210, 989 133,133 390,810
79.4
81.3
73.3
81.2
85.9
86.0
78.7
74.6
86.4
92, 420 162, 052 323,480
94,937
65,436
88,490
37, 836
14, 394
4, 666
10, 670
53,812
80.9
84.6
66.6
77.0
FEDERAL RESERVE NOTE
STATEMENT
Federal reserve notes:
Issued to Federal reserve
banks by Federal reserve agents...
Held by Federal reserve
banks *_.
In actual circulation
Collateral held by agents as
security for notes issued to
banks:
Gold
Eligible paper
1
1,916,435 204, 220
322,180
40,820
252, 503 166,494 210, 569
51, 329
19, 022
32, 280
18, 391
1, 594, 255 163, 400
201,174 147,472 181, 598
74, 029
129, 772 285, 644
80, 543
60, 770
77, 820
35, 250 156, 783
1, 695, 084 184, 917
576, 358 | 35, 594
I
258, 594 135, 000 175, 550
211, 332 38, 092 48, 224
73, 000 133, 270 309, 000
24, 215 28, 85; 58, 394
76, 345
22, 674
55, 845
13, 861
80, 000
21,514
33, 800 179, 763
13,977 59, 628
Excludes "Federal reserve notes of other Federal reserve banks," which are consequently included in "actual circulation."
45, 239 210, 595
28, 971
MAY,
331
FEDERAL RESERVE BULLETIN
1930
FEDERAL RESERVE BANKS—MATURITY DISTRIBUTION OF BILLS AND SHORT-TERM SECURITIES
[In thousands of dollars]
Within
15 days
Total
Bills discounted:
Feb. 5
Feb 12
Feb. 19
Feb. 26
Mar. 5
Mar 12
Mar 19
Mar. 26
Apr. 2
Apr. 9
Apr 16
Apr. 23
Apr. 30
Bills bought in open market:
Feb 5
Feb. 12
Feb 19
Feb. 26
Mar. 5
Mar 12
Mar. 19
Mar. 26
.
Apr 2
Apr. 9
Apr. 16
. .
Apr 23
Apr. 30
Certificates and bills:
Feb 5
Feb. 12
Feb 19
Feb 26
Mar 5
Mar. 12
Mar. 19
Mar. 26
Apr. 2
Apr. 9
Apr 16
Apr. 23
Apr. 30
Municipal warrants:
Feb 5
Feb. 12
Feb 19
Feb. 26
Mar 5
M a r 12
M a r 19
M a r 26
Apr. 2
Apr 9
Apr. 16 .
.
Apr. 23
_
.
. _
. _ _
- __ .
16 to 30
days
31 to 60
days
61 to 90
days
381, 422
381,914
376,943
342, 781
308, 616
266, 338
205, 634
206,829
241,123
226,164
213, 804
211,491
233,452
275, 883
281, 658
284, 604
253,437
222, 086
179, 416
128, 042
132,180
164,494
151, 547
141, 044
133,350
149,986
28,299
27,426
24,845
23, 760
24, 488
23, 522
19, 040
17,966
19, 682
18, 725
17,888
18, 305
17, 292
42,472
39,968
36, 363
36,142
34,230
33, 082
30, 205
27, 694
27, 502
27,125
24,958
27,417
29,723
25, 415
24,070
22,191
20, 012
18,927
20, 536
17,080
16,462
17, 646
16, 534
16, 693
17, 351
18,878
8,071
7,214
6,811
6,800
6,116
6, 659
7,350
8,019
8,323
8,703
10, 435
12, 012
14, 362
295, 791
276, 084
281, 057
299, 306
271, 202
256, 538
185, 017
256, 482
301, 297
267, 002
302, 414
256,869
209, 564
146, 963
146,001
150,444
158,895
125, 896
135, 843
79, 605
172, 731
205,190
171, 421
190, 529
147, 584
110, 370
69, 096
68, 485
62,413
70, 628
63, 532
49, 042
36,401
28, 467
41,454
39,178
47, 760
54, 041
44, 260
60, 674
49, 840
59,899
50,007
52, 697
45, 257
45, 272
40, 634
40, 996
47,492
48, 709
35, 084
39,864
18, 651
11, 551
8,123
19, 583
28, 375
25, 618
22, 669
13,977
13, 277
8,690
12, 370
16,158
11,913
407
207
178
193
778
1,070
673
380
221
3,046
4,002
3,157
236, 939
222, 786
210, 313
182, 558
206,820
233, 270
293, 424
294,876
281, 765
284, 666
289 332
284, 679
287, 882
130
630
16,000
16, 000
16,020
26, 000
72, 530
56,115
58, 072
57, 037
62 385
36, 500
39, 500
95, 346
75, 215
64,186
63, 391
55, 476
55,484
112,038
116, 238
114,753
113,864
112 838
94,646
91,151
150
38, 032
51, 728
29, 000
2,160
76, 531
61, 516
45,102
18, 037
38,000
38,000
27, 400
32, 400
26 001
45,198
50, 802 i
100
1,640
1,580
26,666
26, 000
30
.
30
30
30
30 '
15 '
15 !
.
.
1,282
1,578
2,129
2,630
2,769
3,123
3,917
4,508
3,476
3,530
2,786
3,056
3 211
702
64 932
85,425
85 025
84,980
97,292
100,058
41,856
82 363
81,440
81,365
82 468
82,335
78,849
30
30
30
30
.
Over 6
months
30 !
30 '
30
30
30
30
30
.
91 days to
6 months
30
30
30
30
15
15
MEMBERSHIP IN PAR COLLECTION SYSTEM
[Number of banks at end of month]
Nonmember banks
Member banks
Federal reserve district
1930
I
I January February] March
1_
United States.
Boston
New York
Philadelphia. _.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco..
1
8,486
8,447 |
403
928
761
795
512
425
1,173
569
682
892
740
606
403
927
761
794
509
421
1,167
565
678
893
726
603
Incorporated banks other than mutual savings banks.
Not on par list 1
1930
1930
January February! March | January
8,407
11,943
403
929
758
794
508
419
270
405
474
990
571
250
1,153
3,458
1,645
560
670
892
722
599
On par list
566
2,080
602
632
11,864 ! 11,776 I
271
404
471
988
568
249
3,435
1,632
558
2,062
596
|
;
:
<
March
3,728
516
903
229
485
1, 076
197
214
60
332
FEDERAL RESERVE BULLETIN
MAY, 1930
CHANGES IN MEMBERSHIP
STATE BANK MEMBERSHIP
NATIONAL BANK MEMBERSHIP
The following list shows the changes affecting State
The following list shows reported changes (except
bank membership during the month ended April 21, suspensions and insolvencies) affecting national bank
1930, on which date 1,100 State institutions were mem- membership, concerning which information became
bers of the system:
available between March 25 and April 21, 1930:
Capital
Federal reserve district
Date
No. 2—NEW YORK
1930
Trust Co., Carteret, N. J., title changed
Mar. 22 Carteret
to Carteret Bank & Trust Co.
Peoples
Bank
& Trust Co., Passaic, N. J., member. $600,000
Apr. 19
Absorbed Hobart Trust Co., Passaic, N. J.,
nonmember
, 500,000
Date
!
No. 4—CLEVELAND
1 i Lawrence Savings & Trust Co., New Castle, Pa.,
I member
j
Absorbed Home Trust Co., New Castle, Pa.,
j
nonmember
__
29 | Peoples-Pittsburgh Trust Co., Pittsburgh, Pa.,
;! member
Absorbed East End Savings & Trust Co.,
i
nonmember
_
300,000
125,000
N o . 1—BOSTON
No. 5—RICHMOND
Apr. 7 i Commercial & Savings Bank, Florence, S. C,
j member
I
Absorbed by Peoples State Bank of South
j
Carolina, Charleston, S. C, nonmember.
125,000
No. 6—ATLANTA
Bank of Candler County, Metter, Ga_
Closed.
17
_
25,000
No. 7—CHICAGO
Mar. 25
N o . 2—NEW YORK
Mar. 24 i National Exchange Bank and Trust Co., New
York, N. Y
- $1,000,000
i
Primary organization.
Apr. 1 Baldwin National Bank, Baldwin, N . Y., title
changed to Baldwin National Bank & Trust
Co.
Mattituck National Bank and Trust Co,, Matti100,000
tuck, N . Y
Conversion of Mattituck Bank, nonmember.
First National Bank, Highland Falls, N . Y.,
title changed to First National Bank and Trust
Co.
15 Flemington National Bank, Flemington, N . J.,
title changed to Flemington National Bank &
Trust Co.
N o . 4—CLEVELAND
5,125,000
250,000
Kalamazoo Trust & Savings Bank, Kalamazoo,
600,000
Mich., member
J
Absorbed the Kalamazoo National Bank & |
500,000
Trust Co
j
And changed its title to Bank of Kalamazoo. i 200,000
Feb. 19 United State Bank, Chicago, 111., member
j
Merged with Chicago City Bank & Trust Co.,
nonmember.
28 Madison & Kedzie State Bank, Chicago, 111.,
2,000,000
member
Succeeded by Madison Kedzie Trust & Savings Bank, nonmember.
Mar. 29
First National Bank, Dry Ridge, Ky
Succeeded by First State Bank & Trust Co.,
nonmember.
Apr. 3 Union National Bank, Butler, Pa
Primary organization.
10 First National Bank, Trafford City, Pa., title
i changed to First National Bank of Trafford.
18 National Bank, Defiance, Ohio
-Primary organization.
Mar. 5
25
31
2
Mar. 25
29
No. 11—DALLAS
Jan. 14 Fidelity Bank of Commerce, Spearman, Tex.,
title changed to First State Bank.
Mar. 24 I First State Bank, Palmer, Tex
I
Succeeded by Commercial State Bank, noni
member.
|
25,000
No. 12—SAN FRANCISCO
Mar 31 | Plumas County Bank, Quincy, Calif
i
Succeeded by Plumas County Bank, nonj
member.
Apr. 1 Farmers State Bank, Reardan, Wash
Succeeded by First National Bank.
120,000
19
50,000
150,000
First National Bank, Mount Rainier, Md
Absorbed by Prince Georges Bank & Trust
Co., Hyattsville, Md., nonmember.
City National Bank, Sumter, S. C
Absorbed by National Bank of South Carolina.
National Bank of Baltimore, Md
Absorbed by Union Trust Co., nonmember.
25,000
150,000
1,500,000
First National Bank, Greenville, Ala
Bank of Greenville, nonmember.
_
Consolidated under charter and title of First
National Bank
--.
250,000
100,000
425,000
N o . 7—CHICAGO
2,000,000
2,600,000
200,000
N o . 6—ATLANTA
Apr.
50,000
1,000,000
50,000
No. 5—RICHMOND
No. 8—ST. LOUIS
Bank & Trust Co., Paris, Ark._
Apr. 21 American
Closed.
Trust Co., St. Louis, Mo.,
14 Franklin-American
member
And Phoenix Trust Co., St. Louis, Mo., a
succession to the National City Bank, St.
Louis, Mo
Consolidated under a new charter and title of
the Franklin-American Trust Co. St. Louis,
Mo., which was admitted to membership.-_
Capital
1930
Apr. 2 ! Hampden National Bank, Westfield, Mass., title
changed to Hampden National Bank & Trust i
Co.
!
15 Engineers' National Bank, Boston, Mass., title |
changed to Continental National Bank.
j
No. 3—PHILADELPHIA
2,987,920
Integrity Trust Co., Philadelphia, Pa
Admitted to membership—a consolidation of
the Integrity Trust Co., a member, and the
Market Street Title & Trust Co., nonmember, under new charter.
Mar. 29 Colonial Trust Co., Philadelphia, Pa., member.. 3,999,450
j
Consolidated with and under title of the
I
Pennsylvania Co. for Insurance on Lives
|
and.Granting Annuities, Philadelphia, Pa.,
|
member..
_
6,500,000
Federal reserve district
Kalamazoo National Bank & Trust Co., Kalamazoo, Mich
--Absorbed by Bank of Kalamazoo, member.
Peoples' National Bank, Jackson, Mich
National Union Bank and Trust Co
Consolidated under charter of Peoples' National Bank and under title of Union and
Peoples' National Bank
Fishers National Bank, Fishers, Ind
Absorbed by Citizens State Bank, Noblesville, Ind., nonmember.
First National Bank, Georgetown, 111
Primary organization.
City National Bank, Logansport, Ind
Logansport State Bank, nonmember
_.
Consolidated under charter of City National
Bank and title of City & State National
Bank & Trust Co
500,000
200,000
500,000
700,000
25,000
40,000
200,000
150,000
200, 000
MAY,
FEDERAL RESERVE BULLETIN
1930
NATIONAL BANK MEMBERSHIP—Continued
Date
Federal reserve district
Capital
The Comptroller of the Currency presents the following summary of increases and reductions in the number
and capital of national banks during the period from
February 22 to April 18, 1930, inclusive:
No. 8—ST. LOUIS
1930
Mar. 20 Mount Vernon National Bank & Trust Co.,
Mount Vernon, Ind
Absorbed by Old First National Bank.
First National Bank, Van Buren, Ark
Succeeded by First and Crawford County
Bank, nonmember.
,
31 First National Bank, Stuttgart, Ark
Absorbed by First State Bank, nonmember.
Apr. 9 National Bank of Albion, 111
Primary organization.
10 Farmers National Bank, Dahlgren, 111
Primary organization.
11 First National Bank, Mount Olive, 111.
Primary organization.
! Num- ' Amount of
$50,000
100,000
100,000
50,000
25,000
I
Aggregate of new charters, banks restored
to solvency, and banks increasing capital.
50,000
Liquidations. __
I
Reducing capital2 _ _
Total liquidations and reductions of capital.
Consolidation of national banks under act of Nov. !
No. 9—MINNEAPOLIS
Farmers National Bank, Harlowton, Mont
Absorbed by Continental National Bank.
First National Bank, Blue Earth, Minn
Farmers National Bank, Blue Earth, Minn
Consolidated under charter of First National
Bank and title of First and Farmers National Bank.
29 First National Bank, Gettysburg, S. Dak
Potter County Bank, nonmember
Consolidated under charter of Fiist National
Bank and title of Potter County National
Bank
Apr. 15 First National Bank, Carson, N. Dak
Conversion of First State Bank, nonmember.
15 Union National Bank & Trust Co., Minot, N.
Dak
----~.
Succeeded Union National Bank.
First National Bank, Aberdeen, S. Dak., title
changed to First National Bank & Trust Co.
New charters issued
Restored to solvency
Increase of capital approved l
Jan.
22
25,000
Mar.
29
25, 000
50,000
7, 1918
_
____;
Consolidation of national banks and State banks i
under act of Feb. 25, 1927
;
75,000
25, 000
30,000
Aggregate increased capital for period
Reduction of capital owing to liquidations, etc
Net decrease
100,000
Succeeded by Security State Bank, nonmember.
I
Mar. 31 Citizens National Bank, Fort Gibson, Okla
Absorbed by First National Bank.
i
Apr. 1 Grand Island National Bank, Grand Island,
Nebr
__!
Absorbed by First National Bank.
i
Overton National Bank, Overton, Nebr
j
Primary organization.
!
Farmers National Bank, Pilger, Nebr
Conversion of Farmers State Bank, nonmember.
National Bank of Doniphan, Nebr___
_
Conversion of Bank of Doniphan, nonmem- j
ber.
j
6,885,000
10,075,400
850,000
73
10,925,400
7 !
6
2,625,000
45,150,000
__
• 6,885,000
j 10,925,000
!
•
i
j
i
4,040,400
'
* Includes 1 increase in capital of $100,000 incident to a consolidation
under act of Nov. 7, 1918, also 4 increases aggregating $1,250,000 under
act2 of Feb. 25, 1927.
Includes 2 reductions in capital aggregating $300,000 incident to
consolidations under act of Nov. 7, 1918.
Fiduciary Powers Granted to National Banks
N o . 10—KANSAS CITY
Nov. 18 I First National Bank, Stilwell, Okla_._
60 :
68 i
13 ; 47,775,000
Total consolidations..
75,000
25, 000
27 i $3,405,000
0 :
0
33
3. 480. 000
25,000
25,000
100,000
25,000
50,000
25,000
No. 11—DALLAS
100,000
Citizens National Bank, Henderson Tex
Primary organization.
50,000
_
_.
31 City National Bank, Forney, Tex
Absorbed by Farmers National Bank.
50,000
Apr. 4 Farmers National Bank, Rockwall, Tex.._
Succeeded by First National Bank.
200,000
First National Bank, Terrell, Tex
Absorbed by American National Bank.
750,000
i South Texas National Bank, Galveston, Tex
i Hutchings-Sealy & Co., nonmember._
__
;
Consolidated under charter of South Texas 1, 200,000
|
National Bank and title of Hutchings-Sealy
750,000
j
National Bank
_
_
400,000
j Red River National Bank of Clarksville, Tex
!
Succeeded by Red River National Bank in
'
Clarksville.
Commercial National Bank, Jefferson, Tex
_.
25,000
Primary organization.
*& During the month ended April 21, 1930, the Federal
Reserve Board approved applications of the national
banks listed below for permission to exercise one or
more of the fiduciary powers named in section 11 (k)
of the Federal reserve act as amended, as follows: (1)
Trustee; (2) executor; (3) administrator; (4) registrar
of stocks and bonds; (5) guardian of estates; (6) assignee;,
(7) receiver; (8) committee of estates of lunatics; (9)
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.
Mar. 26
No. 12—SAN FRANCISCO
Mar. 1 Farmers & Merchants National Bank, Blythe,
Calif
Absorbed by First National Bank.
18 Pacific National Bank, Los Angeles, Calif
Absorbed by Bank of Italy National Trust
& Savings Association, San Francisco, Calif,
and Bank of America of California, Los
Angeles, Calif., nonmember.
Apr. 1 First National Bank, Reardan, Wash
Succeeded Farmers State Bank.
50,000
2, 000,000
50,000
Location
Winchendon, Mass.. >
Concord, N. II
Hamburg, N. J
Irvington, N. Y
Mattituck, N. Y
New York, N. Y
Lakewood, N. J
Pine Grove, Pa
Wilson, N. C
Moultrie, Ga
Aurora, Ind
Kendallville, Ind
Grand Rapids, Mich.
Minot, N. Dak
Wayne, Nebr__
Abilene, Tex
Venture, Calif
i Supplementary.
District
No.
Name of bank
First National Bank
National State Capital
2 Hardyston National Bank..
2 Irvington National Bank..,
2 Mattituck National Bank :
and Trust Co.
i
National Exchange Bank & |
:
3 Peoples National Bank
3 Pine Grove National Bank—;
!
5 First National Bank
6 Moultrie National Bank
j
7 First National Bank
:
7 Citizens National Bank
7 American National Bank...'•
9 Union National Bank and
Trust Co.
10 First National Bank
11 Citizens National Bank
[
12 Union National Bank
J
1
1
Powers
granted
1 to 9.
2.i
1 to 8.
Ito9.
1 to 9.
Ito9.
1 to 9.
1 to 9.
Ito9.
Ito9.
1 to 9.
1 to 9.
1 to 9.
1 to 9.
1 to 3,5 to 9
1 to 5.
FEDERAL RESERVE DISTRICTS
N.DAK
3
\
MINN.
""""MINNEAPOLIS
S.DAK.
,
DALLAS®
Jii
J^
• in ••> BOUNDARIES OF FEDERAL RESERVE DISTRICTS
. . — BOUNDARIES OF FEDERAL RESERVE. BRANCH TERRITORIES
®
FEDERAL RESERVE BANK CITIES
•
FEDERAL RESERVE BRANCH CITIES
O FEDERAL RESERVE. BANK AGENCY
TEXAS
@FedFRASER