Full text of Federal Reserve Bulletin : November 1916

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

FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

NOVEMBER, 1916

WASHINGTON
GOVERNMENT PRINTING OFFICE
1916

FEDERAL RESERVE BOARD.
EX OFFICK) MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury,
Chairman.
JOHN SKELTON WILLIAMS,




Comptroller of the Currency.

W. P. G. HARDING, Governor.
PAUL M. WARBURG, Vice Governor.
FREDERIC A. DELANO.
ADOLPH 0. MILLER.
CHARLES S. HAMLIN.
H. PARKER WILLIS, Secretary.

SHERMAN ALLEN, Assistant Secretary and Fiscal
Agent.
M. C. ELLIOTT, Counsel.




SUBSCRIPTION PRICE OF BULLETIN.
The Federal Reserve Bulletin is distributed without charge
to member banks of the system and to the officers and directors
of Federal Reserve Banks.

In sending the Bulletin to others the

Board feels that a subscription should be required.

It has

accordingly fixed a subscription price of $2 per annum.

Single

copies will be sold at 20 cents.

Foreign postage should be added

when it will be required.

Remittances should be made to the

Federal Reserve Board.

Member banks desiring to have the

Bulletin supplied to their directors may have it sent to not less
than ten names at a subscription price of $1 per year.

in

TABLE OF CONTENTS.
Review of the month
Growth of the acceptance business
European payments to the United States since beginning of war
Earnings and expenses of Federal Reserve Banks for past 9 months
Decision in the Wisconsin bank appeal
Memorandum of Board relative to election of Class A and B directors
Date for payment of reserves
Operation of the clearing plan
New national bank charters
Commercial failures during September.
Fiduciary powers granted
Applications under Kern amendment to Clayton Act, number of, granted and refused
Renewal of mortgage loans
Gold settlement fund
.............
Informal rulings of the Board . . . . . . . . . . . .
Law department
Summary of business conditions
Business conditions throughout the 12 Federal Reserve districts
Distribution of discounted paper
^
Distribution of acceptances
Conversion of 2 per cent United States bonds during 1916
Federal Reserve Bank statements
Gold imports and exports
Earnings on investments of Federal Reserve Banks
Discount rates in effect
Interdistrict movement of Federal Reserve notes
Comparative statement of leading central banks of issue, 1914 and 1916.




....

.......

Page.
587
590
592
593
596
597
597
598
600
601
601
602
602
603
606
608
612
613
639
...
644
647
650
654
656
656
657
65&

FEDERAL RESERVE BULLETIN
VOL.

2

NOVEMBER 1, 1916
REVIEW OF THE MONTH.

Continuation of the high export movement
and of the net inward shipment of gold during
the month of October, with extended activity
in domestic trade, rising prices, easy money
rates and full employment of labor practically
the country over, have been the outstanding
features of the business and financial situation
during the month. The heavy balances due
from Europe have given rise to demands for
new financing. One feature of this new financing is noted as of especial interest and concern
to the operation of the Federal Reserve system
and its member banks. It is the extensive resort to the use of acceptance credits arranged
or to be arranged "on behalf of industrial and
commercial borrowers in Europe. In this connection the substance of remarks made by
Gov. Harding * are here given.
Mr. Harding noted that although a large volume of acceptances have been already purchased under the regulations issued by the
Board,
it must be remembered that the regulatians
of the Board are necessarily broad in their
scope, and not intended to deal with specific
cases. They are intended to be permissive
within the limitations defined, but the extent
to which any Federal Reserve Bank should
invest in any class of "eligible" paper is a question to be determined as a matter of policy, in
accordance with the changing position and requirements of the Federal Reserve system as a
whole. While, therefore, the banks have been
and doubtless expect to continue to. be liberal
purchasers of acceptances, the directors of
these banks are charged under the law to "administer the affairs of said banks fairly and impartially and without discrimination in favor of
or against any member bank or banks, and
shall, subject to the provisions of law and the
orders of the Federal Reserve Board, extend to
each member bank such discounts, advancements, and accommodations as may be safely
and reasonably made, with due regard for the
claims and demands of other member banks."
* Before New York Chapter, American Institute of Banking, Nov. 1.




No. 11

They must, therefore, in view of. possible calls
upon them, keep in mind some limitation of
their investments in paper which is not in the
highest sense self-liquidating, or is not of an intrinsically liquid character however secure and
however certain its ultimate payment; and
while the member banks have entire freedom of
discretion as to transactions in which they may
lawfully engage and as to investments which
they may legally make, they should not forget
that there are certain kinds of paper which will
always be preferred by Federal Reserve Banks
over other forms of credit, and which can be
negotiated at lower rates.
The Federal Reserve Act distinguishes
clearly between commercial banking and investment banking, and specifically excludes
from purchase or discount "notes, drafts, or
bills covering purely investments, or issued or
drawn for the purpose of carrying or trading
in stocks, bonds, or other investment securities, except bonds or notes of the Government
of the United States." The Act does not
permit member banks to accept drafts based
upon either foreign or domestic transactions
for a period exceeding 6 months. It is clear
that the intent of the Act is to safeguard the
self-liquidating character of acceptances, as
securities of an investment nature are barred,
and provision is made that the transactions
should be based upon either an actual sale of
goods or upon the conveyance of legal title to
goods which can be readily marketed so as to
protect the acceptor.
The Board was obliged to face, soon after
the establishment of the Federal Reserve
Banks, the question of renewals of acceptance
credits., and ruled that certain renewals of
such credits, which clearly grew out of the
shipment of goods in the first instance, need
not, as a matter of principle, be excluded.
American acceptances now are quite well
established in the world's market, and while
we may expect to see this acceptance business
grow into very large figures, we must not permit either our ambition or our desire to assist
others, or considerations of profit, to cause us
to disregard long-established and sound banking principles. A foreign draft based originally upon importation of goods from this
country and drawn upon an American banker,
with a definite agreement on the part of the
domestic banker for several renewals, at a©
587

588

FEDERAL RESERVE BULLETIN.

Interest rate fixed for the entire period covered by the renewals, does not give the chief
advantage which should accrue to the banks of
a country granting foreign acceptance credits,
because, no matter to what point the Federal
Reserve Bank might raise the discount rate,
it would have no effect upon the foreign
debtor, for no increase in rates would move
him to cover his acceptance and seek accommodation in his own country. It is entirely
natural and proper that countries or sections
where wealth has accumulated, and which have
large holdings of gold, should afford credit
facilities to their neighbors; but the discount
market, which is intended to deal with shortterm and commercial borrowings, should not
be used or abused so as to serve as an adjunct
of the investment market.
To the present date the slackening or reversal of the gold movement as to which so
many predictions are currently made has
shown no indication of developing. Statistics
compiled from official sources show that to
the middle of October the net inward movement of gold since January 1 was approximately $294,000,000, whereas the total net
inward movement for the corresponding period
of the year 1915 was only about $260,000,000.
The only symptom of a change in the international position of the United States as
respects gold is found in an increase of the
gross exportation of the metal from the beginning of the year to the middle of October,
bringing the total outflow to about $95,000,000,
as compared with only about $13,000,000
during the corresponding period a year ago.
While there is thus no net slackening in the
inward movement of gold, but rather a decided
increase, the general conditions have been such
as to encourage some of the strongest banking
institutions in the United States in the policy
of protecting themselves by accumulating shortterm commercial bills and obligations put out in
foreign countries, thereby providing themselves
with means of meeting sudden demands. This is
one phase of the general policy of maintaining
banking assets in strictly liquid condition,
which has been a cardinal idea with the Board
ever since its inauguration, and which must
be rigidly adhered to in view of the inability
to foresee the direction to be taken by European




NOVEMBER 1,1916.

demands and American foreign trade during
the coming year or more.
Consideration and final disposal of appeals
under the Clayton Act, which became effective
on October 15, has occupied a considerable
part of the attention of the Federal Reserve
Board during the month of October. All
pending appeals have been disposed of and
notice conveyed to the individuals and banks
affected by the Board's previous orders. In
all, 1,195 appeals have been granted and 140
declined. In a few cases where doubt existed
the Board has granted temporary permission
to continue directorates as at present up to
January 1, 1917, with the understanding that
further hearings and investigations shall be
had in the meantime with a view to determining definitely what action shall be taken with
respect to the cases thus held open. Inasmuch
as the operation of the Clayton Act was in large
part automatic, individuals withdrawing from
directorates retention of which would be in
violation of the Act, a mere analysis of the
Board's action does not afford an adequate
idea of the actual operation of the law. Probably in a majority of cases the changes resulting from the law have been brought about
without any appeal to the Board.
Section 8 of the Clayton Act prohibits private
bankers under certain conditions from serving
as officers or directors of member banks.
A number of inquiries have been received
during the summer as to the Board's interpretation of the term uprivate banker" as there
used. As the Board is required, under the provisions of the Act, to prosecute those violating
its terms, it has been necessary that the Board
make clear its interpretation of the language
used in order that the banks may comply
with the letter and spirit of the Act, and it
has accordingly done so, announcing its decision in the matter on October 6.
The purpose of the Act, as its title implies,
was to prevent unlawful restraints and monopolies. It is obvious, therefore, that Congress
intended to prohibit common control of member banks and of private bankers engaged in
the same activities as member banks, and that

NOVEMBER 1,1916.

.FEDERAL RESERVE BULLETIN.

589

it intended to preserve competition in cities 30, as against 7.2 per cent for August of the
of more than 200,000 inhabitants between present year. Aggregate earnings were $478,member banks, private bankers, and other 748 and total current expenses $203,144, leavincorporated banks, and likewise intended to ing $275,604 as the net earnings of the system
preserve competition between member banks, for the month. The banks' expenses are exregardless of their location, and State banks, clusive of $57,344, the expenses of the transit
trust companies, or private bankers having departments, which are covered through service charges made to depositing member banks
aggregate resources of more than $5,000,000.
In this view the Board has interpreted the and other Federal Reserve Banks. Six banks
term "private banker" to include partnerships earned net in excess of 6 per cent on their paidor individuals who are engaged in the banking in capital, while six banks earned less than
business, as that term is generally understood, 6 but in excess of 4 per cent.
including those partnerships and individuals
A total of $30,000,000 of 2 per cent bonds
who solicit or receive deposits subject to check, of the United States has been converted durwho do a foreign exchange, acceptance, loan, ing the present year into $15,761,000 of 30-year
or discount business, or who purchase and sell 3 per cent bonds and $14,239,000 of 1-year 3
and distribute issues of securities by which per cent Treasury notes. The total given repcapital is furnished for business or public resents the full amount available for conversion
enterprises.
under section 18 of the Federal Reserve Act.
The term " private banker." is thus inter-* Conversion operations were conducted by the
preted not to include the ordinary stock, note, or Treasury on April 1, when a total of $10,290,600
commodity broker, unless a substantial propor- was converted; on July 1, when a total of
tion of his profits are derived from, or a sub- $9,574,200 was converted; and on October 1,
stantial part of his business consists in, one or when the available balance of $10,135,200 was
more of the banking activities described, while converted. Not all the Federal Reserve Banks
it is not interpreted to include partnerships or applied for the conversion of their allotted
individuals using only their own funds in making quota of bonds. The difference between the
full allotments and the amounts applied for
loans or investments.
No private banker whose partnership or were distributed among those Federal Reserve
firm assets aggregate more than $5,000,000 is Banks which desired to convert bonds in
eligible, under the terms of the Clayton Act, excess of their allotment.
to serve as a director of any member bank, and
The application of Wisconsin bankers for
no private banker, regardless of the amount of permission to transfer from the Minneapolis to
partnership or firm assets, is eligible to serve the Chicago district has been granted in so far
as a director, other officer, or employee of any as relates to Wisconsin, northern Michigan remember bank located in a city of more than maining as heretofore. This action disposes of
200,000 inhabitants, if such firm or partner- the only appeals now pending before the Board
ship is located in the same city.
for redistricting. The transfer order becomes
The Kern amendment to the Clayton Act effective on January 1, 1917, and results in
does not authorize the Federal Reserve Board shifting 52 banks with a total capital and surto grant permission to such private bankers to plus of about $7,632,900 to the Chicago disserve as officers or directors of a member bank trict, thus making the total subscribed capital
even though it appears that they are not in of the Chicago district $13,806,000, while that
substantial competition with such member bank. of Minneapolis is reduced to $4,736,000.
Net earnings of the Federal Reserve Banks
Expansion and extension of the clearing
during September were almost exactly 6 per system has gone on during the month with very
cent on their aggregate paid-in capital of $55r satisfactory results. Continuous gains in the
381,000, the amount reported for September daily number of items and amounts cleared are




590

FEDERAL EESEEVE

BULLETIN.

NOVEMBER 1,1916.

Growth of the Acceptance Business.
indicated by the reports of clearing operations
received from the Federal Reserve Banks for
The growth of the acceptance business of the
the period September 16 to October 15, 1916, national banks appears from the following exthe third month during which the new clearing hibit, which shows the aggregate liabilities on
system has been in operation.
drafts accepted by national banks in New
The average number of items handled was in York, Boston, Philadelphia, Baltimore, and
excess of 200,000 and shows an increase of 54 San Francisco, and by all national banks
per cent over the total handled during the first since September 2, 1915, when, for the first
month and of 15 per cent over the number time, information regarding this new class of
handled during the second month. The daily business was reported by national banks:
average amount cleared by the banks was not Drafts based on imports and exports accepted by national
much below 100 millions, and shows an increase
banks.
of about 65 per cent over the first month's total
[In thousands of dollars.]
and of about 25 per cent over the second
Phila- BaltiNewBosmonth's total.
Fran- Other. Total.
delYork.
ton.
phia. more. cisco.
As the result of the larger number of items
handled and the greater experience gained in Sept. 2,1915 6,9.03 3,449
135 1,625 13,077
965
10,1915 16,182 5,189
1,973
343 2,594 26,808
527
the operation of the system, the cost per item Nov.
2,809 1,063
Dec. 31,1915 17,501 7,374
492 2,746 31,985
895 1,095 2,629 42,677
7,1916 21,429 10,878 5,751
handled is constantly decreasing. Some of the Mar.
6,217 2,096
May 1,1916 33,055 13,056
2,221 3,191 59,836
788 2,673 4,898 69,303
30,1916 40,852 14,858 5,234
banks, accordingly, have been able to reduce the June
5,084 1,616
2,484 6,409 77,879
Sept. 12,1916 44,229 18,057
service charge per item from 1J to 1J cents.
A number of important clearing houses have
In addition to the acceptance business reinformed the Board of their intention to intro- ported by the national banks, the large trust
duce changes in their rules in order to bring companies in the eastern seaboard cities, since
about closer cooperation and harmony in the accepting was authorized by State laws, have
work of the Federal Reserve Banks under the been engaging in the new business. On June 30,
clearing regulation as at present applied. This, 1916, the following New York City trust comwith the increase in the number of items panies report acceptance liabilities of the
handled at the several banks, affords satisfac- following amounts:
tory evidence of the gradual growth of the
. . $9, 333, 800
clearing and collection system in public favor. Bankers Trust Co ^
Guaranty Trust'Co
31,083, 700
Several Federal Reserve Banks have devel- Columbia Trust Co
1,007,100
oped plans of group insurance for their em- Broadway Trust Co
.
1, 054, 300
ployees, a blanket policy covering each such Central Trust Co
1,000,000
6, 930, 800
employee up to the amount of his annual Equitable Trust Co..
4,728,800
salary, not to exceed a specified figure, having Farmers Loan & Trust C o . . . .
Total New York trust companies
55,138, 500
been obtained from reliable insurance compa1, 538,100
nies. The Board has approved such plans in Corn Exchange Bank
the case of three banks, and is developing a
Total
•.
56,676,600
similar plan for insurance of its own employees.
It is probable that the aggregate of drafts
The policies are in force only during the period
in
the foreign trade accepted by American
for which the employee in question holds office.
banks
and bankers is at present not much beDiscount rates during the month have
low
175
millions, of which about 100 millions
remained practically stable, no changes of
importance having been introduced at any of represent the share of the New York banks.
A considerable portion of these acceptances
the banks.
The Bank of Iota, La., has been admitted to has been bought by the Federal Reserve Banks
at rates as low as 2 per cent, compared with
membership in the Federal Reserve system.




NOVEMBER 1,1916.

FEDERAL RESERVE B U L L E T I N .

591

rates in excess of 5 per cent ruling in the in competition with European houses. It
London market. (See Table A.) The total may be further expected that the opening of
of acceptances held on October 20 by Federal foreign branches of strong American banks,
Reserve Banks-—83 million dollars—consti- in combination with dollar exchange, will
tutes 43.5 per cent of their aggregate earning before long free American commerce from
assets, as against 11.3 per cent represented dependence on foreign bankers and make
by paper rediscounte'd for member banks.
unnecessary to a large extent foreign aid and
As may be seen from the attached Table B intervention in the settlement of our foreign
the Federal Reserve Banks began the pur- trade balances.
chase of acceptances based upon imports and
for 3 months' bank bills in London and
exports at the end of February, 1915. During TABLE A.—Rates
New York on dates specified.
the year 1915 the largest amount invested
in this class of paper was in the neighborhood
Date.
London. New York.
of 18 millions. The present year witnesses
1915.
27...
the steady growth of this class of investments Jan.
Feb. 24
Mar.31
from 23.8 millions in the beginning of the Apr.28
26
year to 78.6 millions in the beginning of Sep- May
June 30...
July
28
tember. The largest holdings—over 85 mil-Aug.25
Sept.
lions—were recorded at about the end of July. Oct. 2729
The amount of acceptances bought by Fed- Nov. 24
Dec. 29
eral Reserve Banks up to October 1 is nearly
1916.
28
300 million dollars, the monthly purchases for Jan.
Feb. 25
the past quarter averaging about 35 million Mar.31
Apr.28
26
dollars. It is clear that the rapid growth May
June 30
28..
of the American acceptance business is due July
Aug. 25.
.
4 i to 5-A
5£ to5g
largely to the fact that the Federal Reserve Sept. 29
Banks have provided a market for the purchase
held by the Federal Reserve Banks
and sale of acceptances. From the attached TABLE asB.—Acceptances
shown by schedules on file on dates specified.
Tabie B it may further be seen that, for
[In thousands of dollars.]
the present year at least, the increase in the
amount of non-member bank acceptances held
Trade
NonMember member acceptTotal.
Dates.
by the Federal Reserve Banks has been greater
banks.
ances.
banks.
than in the amount oi member bank acceptances so held.
1915.
February 22..
93
10,906
3,075
7,831
31
There can be but little doubt that the law March
11,593
3,653
7,940
April 5 . . . . . . .
13,347
5,038
8,309
May3
permitting national banks to accept drafts June 7
9,960
5,242
4,718
9,770
4,342
5,428
July
3
based upon foreign-trade transactions has been August 2
11,129
5,350
5,779
12,884
6,087
6,797
September
6..
a most helpful factor in the recent move- October 4
9,000
14,373
5,373
13,265
8,477
4,788
1..
ment of our foreign trade. Dollar accept- November
12,311
18,154
5,843
December 6 . .
ances are now becoming known in almost
1916.
23,838
15,494
8,344
all parts of the world, and are bound to prove January 3 .
25,838
February 7...
15,681
28,503
10,859
462
17,182
a most powerful instrument in promoting and March 6
39,030
17,308
722
21,000
April3
facilitating the commercial relations between M a y l
45,767
19,415
1,477
24,875
51,568
24,680
2,208
24,680
June 5
this country and our foreign markets, where July
67,633
31,222
3,422
32,989
3
77,658
33,738
4,225
39,695
August 7
commercial credit has to be extended by September 4.
78,659
33,573
3,673
41,413
72,542
32,438
2,306
37,798
October 2
our exporters desirous to enter these markets




592

FEDERAL RESERVE BULLETIN.

TABLE C—Imports and exports into and from the United
States during fiscal years 1912 to 1916, inclusive, by large
geographic divisions.
[In millions of dollars.]
IMPORTS.
Year ending
June 30—

1912
1913
1914
1915
1916

South

Asia
and

North
Europe. America.

America.

Oceania.

334.1
362.0
427.4
473.1
591.9

215.1
217.7
222.7
261.5
391.6

261.9
314.0
329.1
300.3
533.4

22.6
26.4
19.1
25.0
64.8

1,653.3
1,813.0
1,893.9
1,674.2
2,197.9

. 189.4
194.2
197.0
192.2
377.7

24.1
29.1
27.9
28.5

2,204.3
2,465.9
2,364.5
2,768.5
4,333.6

. .

819.6
892.9
895.6
614.3
616.2

Africa. Total.

EXPORTS.
1912
..
1913
1914 . . . . . . .
1915
1916.

1,341.7
1,479.1
1,486.5
1,971.4
2,999.2

516.8
617.4
528.6
477.1
732.9

132.3
146.1
124.5
99.3
180.3

43.5

European Payments to the United States.

During the two fiscal years ending June 30,
1916, which cover most of the period since the
outbreak of the European war, the United
States exported merchandise to the amount of
over $7,000,000,000, and imported less than
$3,900,000,000, an excess of exports of over
$3,100,000,000, to which should also be added
further shipments made since June 30, the
amounts of which are not yet available. To
pay for this large quantity of goods European
and other countries have been obliged to send
us gold, American securities, and also to establish credits here by floating heavy issues of
bonds. The Federal Reserve Board's statistical division has recently prepared some
estimates of the magnitude of these various
operations, and while many of the figures obtained are necessarily only approximate, it is
believed that they are of sufficient interest to
justify publication.

The amount of American securities returned
by Europe can only be estimated very roughly,
but indication of the extent of the movement
may be had from the estimate prepared by
Mr. L. F. Loree, president of the Delaware &
Hudson Co., who places the amount of railroad
securities returned between January 31, 1915,
and July 31, 1916, at almost $1,300,000,000.
Figures have also been published showing the
return of 748,547 shares of United States Steel
Corporation common stock between March 31,
1914, and September 30, 1916, and of 141,736
shares of preferred stock of the same company
between June 30,1914, and September 30, 1916.
At market price of June 30, 1914, this stock
would have represented a value of over
$60,000,000, while at the market price of
September 30, 1916, its value would be over
$100,000,000.
Even more striking, because of the indication
they give of the altered position of the United
States in international finance, arefiguresshowing the amount of foreign loans and credits
arranged in the United States. The obligations of foreign governments, bankers, and
merchants now held here are estimated to
amount to $1,931,000,000, distributed as follows:
British America
Europe
Latin America
China

[In thousands of dollars.]

Net
Net
Exports. Imports. exports.
imports.
Aug. 1 to Dec. 31, 1914
Jan. 1 to Dec. 31,1915
Jan. 1 to Oct. 13,1916

Total




104,972
30,889
95,961

23,252
450,211
390,010

231,822

863,473

81,720
419,322
294,049

..
..

$212,000,000
1,627,000,000
88, 000, 000
4,000,000

Much interest is now centered on the question of how the United States will meet
foreign demands for gold should such demands
arise after the close of the European war, and
in this connection the maturities of the European obligations held here are of distinct
importance.
Maturities

Gold exports and imports, Aug. 1,1914, to Oct. 13 > 1916.

NOVEMBER 1,1916.

of European

obligations
States:

held in the United

1916
1917.
1918
1919.................................
1920.
1921.
1923...;
Information lacking

$30, 000, 000
103,000, 000
260,000, 000
300, 000, 000
500, 000, 000
200,000, 000
5, 000, 000
229, 000, 000

631,651

Total

1,627,000,000

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

EARNINGS AND EXPENSES OF THE
FEDERAL RESERVE BANKS.
Total earnings of the Federal Reserve Banks
for the 9 months ending September 30, 1916,
were $3,242,336.1-8, while total current expenses for the same period were $1,845,077.62.
Of this total $130,754.54 represents the expenses incurred on account of the banks: transit departments between July 15 and the end
of September. This amount is returned to the
Federal Reserve Banks through service charges
assessed against member banks.
Net earnings of the banks—i. e., total earnings minus the current expenses of the banks
proper—were $1,528,013.10, or at the rate of
3.7 per cent on an average paid-in capital of
$55,002,000. All the banks earned in excess
of their current expenses for the 9 months of
the present year, 4 banks in excess of 5 per
cent, and 6 banks in excess of 4 per cent.
Current expenses shown include $1,375,518.72, the operating expenses of the banks proper;
$151,308.27, the cost including amortization of
Federal Reserve notes issued, returned, and retired; $4,810.94, the cost of Federal Reserve
bank notes; $228,861.-22, amortization of organization expenses; and $84,578.47, aggregate
depreciation charges for the 9-month period.
Combined gross earnings for the third quarter of the present year were about one-third in
excess of the total earnings for the second quarter, the latter exceeding by about 40 per cent
the total earnings for the first quarter of the
present year.
Of the total earnings for the 9 months, 24
per cent was from bills discounted for member
banks; 24 per cent from United States bonds and
notes; 28 per cent from bills bought in the open
market; and 17 per cent from municipal warrants. The remainder, about 7 per cent, represents commissions earned on acceptances and
warrants bought for other Federal Reserve
Banks, profits from exchange operations and
from the sale of United States bonds, and other
smaller earnings.
These percentages vary by banks and groups
of banks. Thus, earnings from discounts constituted over 75 per cent of the total earnings




593

of the 3 southern banks, and less than 4 per
cent of the aggregate earnings of the 4 eastern
banks. In the case of the 4 banks in the
north and middle west, this proportion is about
23 per cent, while San Francisco's earnings
from discounts were about 10 per cent of the
bank's total earnings for the 9-month period.
Over one-half of the total earnings of the 3
banks on the eastern seaboard was derived
from acceptances, while over 40 per cent of the
aggregate earnings of the Chicago and Kansas
City banks came from United States securities.
Nearly 28 per cent of the total earnings of the
New York Federal Reserve Bank came from
warrants, Cleveland, Chicago, Boston, and
Philadelphia likewise reporting considerable
amounts earned from this source.
Of the total expenses of operation for the 9
months, about 27 per cent went as compensation to bank officers, and a slightly smaller proportion as salaries to the clerical staff of the
banks. The latter item shows a large increase
for the third quarter, due no doubt to the increase of force made necessary by the installation of the new clearing system. The aggregate
amount paid during the 9 months by the banks
for the support of the Federal Reserve Board
was $151,024.96, or over 10 per cent of the total
expenses of operation of the banks. Rent for
the 9 months' period totaled $120,543.34, or
about 9 per cent of the total operating expenses,
while other large specified .items in the order of
their importance were postage, printing and
stationery, and directors' fees. The total current expenses stated above are exclusive of
$131,939.89 expended for additional furniture
and equipment, and of $121,229.34 paid for the
printing and shipping of Federal Reserve notes.
About 44 per cent of the latter expenditure is
reported by the New York Federal Reserve
Bank.
The expenses of the transit departments,
partly estimated, are composed largely of operating expenses proper, and to a smaller extent
of depreciation charges on account of furniture
and equipment assigned to the new departments,
on or about July 15 or purchased for the use
of these departments since that date.

Earnings and Expenses of each Federal Reserve Bank and of the system as a whole for the nine months ending Sept. 30, 1916.

CO

EARNINGS.

Boston.

New York.

Philadelphia.

Cleveland. Richmond.

Atlanta
(including
New
Orleans
branch).

Chicago.

Bills discounted—members.. $16,632.06 $12,202.43 $12,092.76 $11,738.54 $181,809.47 $112,298.69 $88,542.16
Bills bought in open market.. 162,030.53 322,041.87 118,028.14 58,800.45
13,791.87 20,047.51 56,623.04
Investments:
27,788.49
25,697.99 146,458.81
U. S. bonds and notes... 40,154.56
66,219.50 61,980.31 99,094.45
1,963.29 70,150.50
2,948.48
Warrants
...
. .
60,781.81 172,236.66 54,160.42 85,970.80
17.58
6,798.34 29,051.68
Commissions received
Profits on United States se10,200.00
curities sold
16,725.00
3,575.00
3,500.00 15,973.84
Amortization of appreciation'
on United States bonds..
Sundry profits
3,267.49
203.22
4,620.68 10,284.32 43,057.83
3,095.99
974.81
Total earnings

292,993.29

618,700.79

266,254.12

255,807.46

234,533.99

170,309.38

415,032.34

San Francisco.

Total.

$73,700.99 $177,359.57
3,052.94
14,111.74

$17,231.75
66,795.22

$772,265.79
906,073.92

39,950.50
189.01

50,188.95
35,046.94

786,117.32
544,077.84
35,867.60

Kansas
City.

St. Louis.

Minneapolis.

$26,885,90
44,981.96

$41,771.47
25,768.65

50,543.78
23,798.16

49,462.29
25,471.78

128,577.69
11,359.99

17,873.14
18,782.94

9,645.50

25,661.79
636.28

5,516.97

182,865.88

152,119.69

254,048.48

226,068.99

Dallas.

49,973.84
4,338.91

43,534.93
104,424.94

173,601.77 3,242,336.18

CURRENT EXPENSES.
>
Expenses of operation:
Assessment account expenses FederalReserve Board $14,009.94
Federal Advisory Council
(fees and traveling expenses)
303.50
G o v e r n o r s ' conferences
(incl. traveling expenses)
671.01
Federal Reserve Agents
conferences, incl. traveling expenses
170.44
Salaries:
Bank officers
25.124.85
23,507.38
Clerical staff
Special officers
and
watchmen
Allother
Directors' fees
2,820.00
Directors' per diem allowance
850.00
Officers' and clerks' traveling expenses
584.55
Directors' traveling ex. penses
1,265.42
1,600.00
Rent.
10,389.11
Telephone
997.74
Telegraph..
125.65
Postage....,
5,383.04
Expressage
858.92
Insurance and premium,
fidelity bonds
1,165.11
Light, heat, and power
869.59
Printing and stationery....
5,533.28
Repairs and alterations
582.98
All other expenses, not
specified
7,251.09
Total expenses of operation.
104,063.60




$30,569.90

$14,450.39

$16,350.76

$9,225.55

$6,695.41

$18,318.81

$7,657.31

$7,031.09

$8,325.12

$7,555.02

$10,835.66

$151,024.96

512.50

226.50

381.43

150.00

176.34

622.60

150.00

559.00

285.85

150.00

150.00

3,667.72

2,706.19

596.14

1,086.73

l?207.61

856.55

843.23

1,207.79

1,126.70

1,065.99

965.88

2,224.04

14,557.86

425.49

158.63

333.85

162.04

92.60

121.70

195.71

222.29

240.98

425.00

489.41

3,038.14

66,649.74
72,928.67

29,050.00
30,953.43

29,062.50
24,786.31

23,528.02
24,062.21

23,706.63
27,843.00

38,750.00
42,159.07

35,024.00
26,890.17

19,749.94
18,237.58

19,097.89
28,317.65

25,207.09
24,036.71

30,034.84
20,224.05

364,985.50
363,946.23

4,497.07

340.00
127.00

453.33
1,242.65
2,650.00

2,438.50

4,106.16
2,814.49
1,560.00

1,215.00
900.00

962.45
78.00

535.00
1,230.17
2,995.00

1,365.62
2,246.33
1,285.00

93.00

2,120.00

1,480.00

21,828.63
14,315.43
26,860.00

1,350.00

1,448.00

550.00

3,010.00

2,220.00

310.00

10,793.00

720.00

690.00

5,822.50
5,676.79
2,990.00
800.00

* 2," 380.66
670.00

945.00

662.14

409.06

396.63
1,500.00
6,749.97
858.49
17.66
4,772.28
2,487.98

1,350.00
730.00
899.82

11,097.01
106.11

2,557.33
• 824;88
3,510.80
890.15

22,027.58

3,117.36

489.14
1,500.02
4,730.79
709.65
186.21
4,217.46
41.81
1,763.08
13.98
5,477.51
44.15
1,656.20

270,013.41

111,327.83

96,278.40

33,110.02
1,505.68
417.65
9,110.17
205.17
1,998.18

c!

1,845.00

830.00

2,794.42

1,138.15
545.79
1,822.40

3,329.22
262.46

1,001.91
1,125.00
4,800.03
430.48
202.77
4,952.40
369.92
1,076.19
2,662.02
361.00

378. 71
450.00
6,374.97
401.47
280.63
7,555.36
761.97

8,519.16

1,901.51

162,014.48

102,455.76

1,883.90

1,710.50

815.00

268.7.7
1,425.00
4,509.00
260.91
142.75
4,597.87
835.29

1,220.45
950.00
9,343.27
256.23
388.48
4,924.16
586.31

497.70
1,896.17
19,937.85
977.33
252.27
6,576.87
466.51

787.50

1,057.36

259.05
11,270.58
593.66
170.58
4,658.80
633.91

1,634.59
1,013.26
4,692.38
67.20

934.04
129.22
3,566.76
185.52

3,159.91
1,645.59
6,283.67
1,140.39

2,597.47

6,713.48

87,959.80

96,285.45

1,618.51

13,278.34

732.88
514.49
3,181.77
7,373.33

852.27
2,117.67
9,327.75
343.74
328.56
2,472.08
1,904.68

7,584.90
14,386.26
120,543.34
8,068.26
3,027.70
62,402.26
16,525.80

997.35
813.50
3,474.33
213.36

763.50
1,041.40
3,220.35
135.16

1,202.06
280.37
4,083.66
1,775.87

18,869.85
6,631.79
56,930.99
5,764.35

2,378.54

4,082.17

4,024.31

2,218.54

66,487.41

71,294.67

92,516.89

88,560.18

92,748.25 1,375,518.72

Cost of Federal Reserve notes
issued by bank (including
expressage, insurance, etc.)
Miscellaneous charges, account Federal Reserve
notes
Cost of Federal Reserve
Bank notes issued, including taxes
Amortization charges:
Federal Reserve n o t e s . . .
Ail other organization
expenses
Depreciation of furniture
and equipment

6,916.56

36,560.00

3,040.00

973.36

1,002.79

1,354.44

1,642.97

9,014.25

3,636.00

18,701.27

4,142.62

3,172.27

2,080.00

1,823.28

12,180.45

10,454.73

4,027.73

88,816.20

724.44

4,724.64

7,273.35

57,767.43

45,085.09

228,861.22

9,300.09

84,578.47

4,810.94

4,810 94
14,999.94
12,976.29

27,125.55

31,517.06

46,760.23

4,700.00

5,369.18

10,652.78

10,466.22

128,656.45

354,068.08

157,540.46

164,846.90

19,309.44

16,229.77

15,187.21

11,405.43

Total current expenses
of bank, exclusive of
a m o u n t s chargeable
to transit d e p a r t m e n t 109,347.01
Excess of earnings over current expenses
183,646.28
Per cent of average capital
Jan. 1 to Sept. 30, 1 9 1 6 . . . . .
4.87

337,838.31

142,353.25

280,862.48

123,900.87

3.31

3.16

2.29

Total current expenses
Less expenses of transit department

7,587.82

31,893.48

13,640.44

19,863.08

3,187.14

15,000.00

2,494.28

3,763.00

3,250.00

116,395.78

95,547.62

102,644.86

177,14.48

144,202.49

109,222.66

136,763.98

115,410.69

9,499.97

8,977.87

12,255.95

5,687.38

6,190.92

6,437.71

8,185.31

153,441.47

86,047.65

93,666.99

164,758.53

138,515.11

103,031.74

130,326.27

107,225.38

147,771.37 1,714,323.08

102,365.99

148,486.34

76,642.39

250,273.81

44,350.77

49,087.95

123,722.21

118,843.61

25,830.40 1,528,013.10

5.90

4.17

5.01

2.12

2.55

5.48

5.85

:87

3.70

$54,159.64

$41, 828. 85

$33, 255.41

$6 ,422.59

$269,995.53

CD

a

159,158.95 1,845,077.62
11,387.58

130,754.54

COST OF FURNITURE AND EQUIPMENT, INCLUDING VAULTS.
Balance as reported Jan. 1,
1916
..
.. ...
Additional purchases during
9 months ending Sept. 30,
1916
Total
.
..
Depreciation charged during
9 m o n t h s ending Sept. 30,
1916
Balance Oct. 1,1916....

$9,595.24

$26,980.36

$18,491.31

$20,187 08

$9, 500.00

$6, 228. 92

$23, 000.00

$20, 346.13

11,634.46

36,513.64

2,452.59

9,871 22

5, 862.80

8, 199. 80

21, 332.18

10, 575.85

7,712.55

2, 826. 03

12, 081.27

2 ,877.50

131,939.89

21, 229.70

63, 494 00

20, 943 90

30, 058.30

15, 362.80

14, 428. 72

44, 332.18

30, 921.98

61,872.19

44, 654. 88

45, 336.68

9 ,300.09

401,935.42

4, 700.00

5, 369. 18

10, 652. 78.

10, 466.22

3, 187. 14

15, 000.00

2, 494.28

3,763.00

3, 250. 00

8, 895.78

9 ,300.09

77,078.47

16, 529.70

58, 124 82

10, 291. 12

19, 592. 08

11, 241. 58

29, 332.18

28, 427.70

58,109.19

41, 404. 88

36, 440.90

15, 362.80

324,856.95

w
w
d
r1
r

COST OF UNISSUED FEDERAL RESERVE NOTES.
Balance as reported Jan. 1,
1916
.
.
... .
Additional cost of Federal
Reserve notes for 9 months
ending Sept. 30, 1916

$38,633.35 •$232,086.79

$43j

172.04

$42,757.61

$17,368.34

$9,502.36

$60,380. 06

$22,363. 46

580.32

53,310.05

187.60

397.76

.6,219.48

6,733.38

12,691. 01

Total
Cost of Federal Reserve notes
issued and charged to current expense during 9
m o n t h s ending Sept. 30,
1916

39,213.67

285,396.84

43 j 359.64

43,155.37

23,587.82

16,235.74

73,071. 07

22 581 7,0

7,416.56

36,560.00

3, 040.00

973.36

7,587.82

3,172.27

2,080. 00

Balance Oct. 1, 1916....

31,797.11

248,836.84

40, 319.64

42,182.01

16,000.00

13,063.47

73,071. 07

20,501. 20




217. 74

$19,932.85

$11 j

$9,924.60

914.91

$542, 288.89

606.30

21, 848 53

4,801.45

13, 635.72

121, 229.34

20,539.15

33 101 Oft

14,726.05

48, 550.63

663, 518.23

1,823.28

12, 180 45

10,454.73

4, 027.73

89, 316.20

18,715.87

20, 920.60

4,271.32

44, 522.90

574, 202.03

ilncludes $7,500 for depreciation on bank building.

CD

596

FEDERAL RESERVE BULLETIN.

Decision in the Wisconsin Bank Appeal.

On October 13 the Federal Keserve Board
voted to grant the appeal of certain Wisconsin
bankers for transfer to Federal Reserve District No. 7 from Federal Reserve District No. 9,
no change, however, being made with respect
to northern Michigan. The action taken becomes effective on January 1, 1917.
The order issued by the Board in disposing
of the appeal is as follows:
ORDER, AMENDING THE GEOGRAPHICAL LIMITS
OF DISTRICTS NOS. 7 AND 9.

At a stated meeting of the Federal Reserve
Board, duly held at its office in the city of
Washington, D. C, October 12, 1916.
Present: Mr. Harding, Governor; Mr. Warburg, Vice Governor; Mr. Hamlin; Mr. Delano;
Mr. Miller; Mr. Williams.
In the matter of readjusting the geographical
limits of Districts Nos. 7 and 9 in accordance
with the power vested in the Federal Reserve
Board by section 2 of the Federal Reserve Act.
Whereas, the Federal Reserve Board is authorized and empowered by section 2 of the Federal Reserve Act to readjust the Federal
Reserve districts; and
Whereas, upon further consideration of—
(a) The petition of certain banks in Wisconsin for the transfer from District No. 9 to District No. 7 of all
that part of Wisconsin situated in
District No. 9 east of the western
boundaries of the counties of Ashland, Price, Taylor, Clark, Jackson,
and Monroe;
(J) The answer of the Federal Reserve
Bank of Minneapolis;
(c) The briefs of counsel and arguments
heard by the Federal Reserve
Board;
it appears to such Board that the convenience
and customary course of business and the
best interests of the Federal Reserve system
will be served by a readjustment of the
geograpical limits of districts Nos. 7 and 9;
Now, therefore, the Federal Reserve Board
doth order—
(1) That District No. 7 be readjusted and
altered so as to include the State of Iowa, all
that part of Wisconsin located south of the
northern boundary of the counties of Marinette,
Oconto, Langlade, Marathon, and Clark; and
east of the western boundary of the counties




NOVEMBER 1,1916.

of Clark, Jackson, Monroe, Vernon, Crawford,
and prant; all of the southern peninsula of
Michigan, viz, that part east of Lake Michigan;
all that part of Illinois located north of a line
forming the southern boundary of the following
counties: Hancock, Schuyler, Cass, Sangamon,
Christian, Shelby, Cumberland, and Clark;
and all that part of Indiana north of a line
forming the southern boundary of the following
counties: Vigo, Clay, Owen7 Monroe, Brown,
Bartholomew, Jennings, Ripley, and Ohio.
(2) That District No. 9 be readjusted and
altered so as to include the States of Montana,
North Dakota, South Dakota, Minnesota, all
that part of Wisconsin not included in District
No. 7, and all that part of Michigan not included in District No. 7.
(3) That the alterations in Districts Nos. 7
and 9 directed in this order become effective
January 1, 1917.
(4) That the Federal Reserve Banks of Chicago and Minneapolis be notified of the changes
made in the districts referred to and directed
to take such action as may be necessary for
the transfer of membership of the banks included in the territory affected.
(5) That a copy of this order be filed with
the Comptroller of the Currency in order that
the certificate of the Reserve Bank Organization Committee may be properly amended.
W. P. G. HARDING, Governor.
Attest:
H. PARKER WILLIS, Secretary.
Transfers of counties resulting from the
order are as follows:
Counties in Wisconsin transferred from District No. 9 la
District No. 7.
Adams.
Brown.
Calumet.
Clark.
Door.
Fond du Lac.
Green Lake.
Jackson.
Juneau.

Kewaunee.
Langlade.
Manitowoc.
Marathon.
Marinette.
Marquette.
Monroe.
Oconto.
Outagamie.

Portage.
Shawano.
Sheboygan.
Waupaca.
Waushara.
Winnebago.
Wood.

Counties in Wisconsin remaining in District No.
Ashland.
Price.
Florence.
Forest.
Rusk.
Barron.
Iron.
St. Croix.
Bayfield.
Buffalo.
La Crosse.
Sawyer.
Burnett.
Lincoln.
Taylor.
Oneida.
Chippewa.
Trempealeau
Douglas.
Pepin.
Vilas.
Dunn.
Pierce.
Washburn.
Polk.
Eau Claire.

598

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Section 19 of the Federal Reserve Act re- It may also be desirable to call attention to
quires each member bank not in a reserve or the fact that under the amendment to section
11 of the Federal Reserve Act, approved Sepcentral reserve city to keep—
u
in the Federal Reserve Bank of its district tember 7, 1916, the Federal Reserve Board is
for a period of twelve months after said date authorized to permit member banks to carry
two-twelfths, and for each succeeding six in the Federal Reserve Banks of their respecmonths an additional one-twelfth,"
tive districts any portion of their reserves now
of 12 per cent of the aggregate amount of its required by section 19 to be held in their own
demand deposits, and of 5 per cent of its time vaults. The Board, under authority of this
deposits. Similar language is used with refer- amendment, has already issued a ruling to the
ence to the banks in reserve cities.
effect that such member banks may carry all
The•"said date" referred to is the date offi- or any part of such reserves in their respective
cially announced by the Secretary of the Federal Reserve Banks.
Treasury for the establishment of a Federal
Reserve Bank in any district. That date was
Operation of the Clearing Plan.
November 16, 1914.
It therefore follows that on November 16,
The following table shows briefly the clearing
1916, country banks and banks in reserve operations of the Federal Reserve system for
cities will be required to pay their Federal Re- the monthly period ending October 15, 1916,
serve Bank an additional installment of re- with comparative figures for each of the two
serves. The amount thus to be paid by them preceding months:
will be for country banks one-twelfth of 12 per
FederalReserve interdistrict clearing system,
cent of their demand deposits, as held on and Operations of the Sept.
16 to Oct. 15, 1916.
after November 16, plus one-twelfth of 5 per
cent of their time deposits; and for banks in
Average
Member
Average
State
number
banks banks reamount of
reserve cities one-fifteenth of 15 per cent of
of items
Bank.
in the
of
daily
mitting
handled
clearing.
district.
at par.
their demand deposits, plus one-fifteenth of
daily.
5 per cent of their time deposits.
34,328 $9,583,898.26
402
It is suggested that each Federal Reserve Boston
35,574 21,771,197.98
626
New York
31
25,089 12,648,696.00
630
Philadelphia
137
Bank ©all the attention of each member bank Cleveland
14,072 6,929,805.09
756
490
14,521 6,649,364.00
520
254
Richmond
to the date upon which the transfer of reserves Atlanta
(including New
11,661
3,668,876.04
391
Orleans branch)
460
above referred to is due, and that it arrange Chicago
2 21,322 10,705,835.14
994
1,287
...
8,814 5,677,716.85
468
St. Louis
805
such additional details with member banks as Minneapolis.
12,236 6,333,496.11
753
1,100
10,956 5,729,296.78
937
Kansas City
1,388
may seem desirable. The Board recommends Dallas
11,539 6,747,754.00
621
206
4,779 1,220,171.00
520
,
1,060
that the member banks be called upon to pay San Francisco
Sept. 16 to Oct. 15.. 204,891 97,666,107.25
7,618
7,459
their own express charges, unless there is some Total, Aug.
16 to Sept. 15, 177,397 78,559,703.82
7,618
7,449
July 15 to Aug. 15.. 133,113 59,301,695.94
7,624
7,032
good reason why the Federal Reserve Bank of
1
the district thinks it best to bear these express
All State banks in district.
2
Does not include Government checks averaging 3,166.
charges itself. The form in which payment is
to be made may be suggested by the Federal
The Federal Reserve Bank of Richmond
Reserve Bank in such circular or notice as it on October 11 issued a letter to its member
may send out, and it will be well to make some banks as to clearing operations, the substance
reference to the provision of the Act that any of which is reproduced, as follows:
Federal Reserve Bank may receive from its
To members of the Federal Reserve Bank of
member banks as reserves not exceeding oneRichmond:
half of each installment eligible paper as deFor the information of member banks we
scribed in section 13, properly indorsed and are sending a statement of operations of our
acceptable to the said Federal Reserve Bank. collection department from the inauguration




FEDERAL RESERVE BULLETIN,

NOVEMBER 1,1916.

of the new collecting and clearing system on
July 15 up to September 30. a. period of 68
working days.
During that period this bank handled
776,254 checks, amounting to $305,157,900.
The cost per $1,0.00 in handling this business
was 3.18 cents, which is. astonishingly low.
The service charge to members based upon
actual cost of handling was 1J cents per item
up to August 31. For the month of September
the service charge was 1\ cents per item, the
reduction.in cost being due to the larger number of checks handled without increase in force.
The daily average number of items handled
in September was 13,823, as against an average of 10,502 for the period up to August 31.
The total cost of handling during September
amounted to $4,112.88. The service charge at
l i cents amounted to $4,031.30.
Our collection department is now well organized, and is capable of handling an increase
of 50 per cent in number of items without
additions to the force.
If member banks will be good enough to
follow the suggestions and directions which we
send out from time to time in order to facilitate
the working of the system, they will aid us
greatly in rendering satisfactory service.
Collections can now be made on more than
15,000 banks without an exchange charge.
There is another clearing function being
performed by the Federal Reserve system, and
that so quietly and easily that it escapes the
attention which it deserves. In the operation
of the collection system and in other transactions between the Federal Reserve Banks of
the several districts balances naturally are
created for settlement. These settlements are
now being made once a week and are effected
through the medium of a gold settlement fund
in the custody of the Federal Reserve Board
and stored in the vaults of the Treasury Department. This fund, deposited by the Federal
Reserve Banks, and a part of their reserve,
was on September 21, $121,230,000. The
clearing between the Federal Reserve Banks
on that day amounted to $158,558,000, and
was settled by the transfer of ownership of only
$9,539,000 in gold, and this transfer was
effected by bookkeeping entries.
The economical working of this system is
apparent, and its potential usefulness to the
country is manifest.
Our daily advices of remittances received,
showing what part is placed to credit and the
exact dates on which the balance of any remit-




66559°—16

3

599

tance will become available, should enable
members to determine the standing of their
accounts on our books at any time, but to
further aid members in testing their reserve
balances by our books we shall begin in the
near future to send weekly statements of
accounts.
If" all members would keep " transit accounts, " as suggested in our circular on that
subject, then their entries and ours would be
coincident, and their balances would agree
with our books at all times.
Of course, delays in the mails, either way,
would create exceptions; but if members will
adopt the practice of advising us when our
remittances reach them too late to be handled
according to the schedule time, we will make
the date of our entries correspond, and thus
avoid the impairment of reserve which such
delay might otherwise cause.
We think it fair to all concerned, and as
equitable to one bank as another, and very
greatly to the interest of the whole collection
system, that remittances from us, containing
only checks upon the bank to which they are
sent, should when received before the close
of banking hours be treated just as a deposit
would be treated when made within the time
specified.
The utmost promptness possible is in the
interest of all.
The following letter relating to the present
collection system has been received by a Federal Reserve Bank from one of the country
banks in its district:
As the Federal Reserve system receives
many hard blows from various sources, and
particularly the par system of check collections comes in for considerable criticism from
many bankers, it occurred to me that possibly
you might appreciate a word of commendation
from a small country bank in your district.
Before the
— Clearing House opened
the collection department for country check
collections, and you put into execution your
plan of par check collections, we had a number of reciprocal collection accounts with
our neighbors and with banks in the larger
and important banking cities in our State.
All these accounts caused extra work, stationery and postage, besides tying up items from
three days to a week. Now, we have discontinued these accounts, and do all our check

600

FEDERAL RESERVE BULLETIN.

collecting through your bank and our correspondents in New York and Philadelphia. We
find it saves money, labor, and time, and expect to use your system more and more as
time goes on. It seems the correct and scientific method to pay our own checks by sending
you checks on other banks which we receive
from our customers for deposit*.
It is only fair to say we never made any
great sum of money annually from the item of
exchange. Our idea was, and is, to make this
an easy point to collect, rather than the
reverse. The writer could never understand
the reason for excessive rate of exchange on
checks. A bank is not doing a favor to the
holder or payee, when it pays its own check;
rather is the favor done to the maker of the
check, and he, if anyone, should pay the
charge.
Your idea of a service charge is an eminently
proper one, in my opinion.
I trust you may soon have the collection
S3rstem completed by arranging for notes,
drafts, and coupons. When this is accomplished it should be a great success.

NOVEMBER 1,1916.

2. The elimination of exchange charges,
which in some cases have not been equitable,
in other cases quite excessive.
3. Reduction of the expense of collection to
as near absolute cost as possible.
4. The release and more equitable distribution of the large balances at present maintained by the smaller banks in the banks in
larger centers for the purpose of receiving par
collection of out-of-town miscellaneous items.
The disadvantages, as summarized, are:
1. The loss of exchange on the part of the
smaller banks, which exchange they have deducted in remitting checks on themselves.
2. The revision and, in many eases, termination of the reciprocal relations which have
under the old system been maintained for
many years between the smaller banks and
their correspondents in larger cities, as the
Federal Reserve Banks will to a great extent
render the same service.
Balancing advantages against disadvantages,
the unprejudiced must recognize what is to
be gained under the system as of greater value
to business than what w#uld be lost to the
banks.
It is to be hoped that this important matter
is
to be fairly treated by all interested and
The National Association of Credit Men, in
that
will prevail a unanimity of sentia letter to members, has the following review ment there
in favor of a system that will remove
and summary of the check collection system:
from the channels of business another burden
The recent regulation of the Federal Re- and tax on country-wide distribution.
serve Board providing for a check clearance
system at exact cost (not a free system, as
New National Baaik Charters.
many seem to think) is one of the most interThe Comptroller of the Currency reports the
esting subjects to-day in business finance. It
is not possible to introduce great changes or following increases and reductions in the numto unseat established customs without some ber of national banks and the capital of nawrenching and rasping, and the bringing into tional banks during the period from September
play of a change so far-reaching as that provided for by the check clearing regulations of 23 to October 20, 1916, inclusive:
Banks.
the Federal Reserve Board must of necessity
New charters issued to
8
arouse some antagonism.
$475, 000
It has been customary for many banks to With capital of
5
charge exchange that produces a good income, Increase of capital approved for
5, 725, 000
even though the charges might be imposed upon With new capital of
the payment of the checks of the bank's customers. That this income is to be affected Aggregate number of new charters and
banks increasing capital
13
has occasioned some alarm.
6, 200,000
The bigness of the question suggests careful With aggregate of new capital authorized.
consideration, and we venture to lay before Number of banks liquidating (other than
our members the following .advantages and those consolidating with other national
disadvantages of the system as they have been banks)
... 4
summarized by a close student and experienced Capital of same banks.........
325,000
practitioner in banking matters.
Number of banks reducing capital
None.
The advantages, as summarized, are:
Reduction of capital
None.
1. Direct and prompt presentation of checks.




601

FEDERAL KESEKVE BULLETIN.

NOVEMBER 1,1916.

Total number of banks going into liquida- Banks,
tion or reducing capital (other than those
consolidating with other national banks). 4
Aggregate capital reduction
$325,000

Fiduciary Powers.
The following applications for permission
to act under section 11 (k) of the Federal Reserve Act have been approved by the Federal
The foregoing statement shows the aggregate of
Reserve Board since the issue of the October
increased capital for the period of the banks
embraced in statement was
6, 200,000 Bulletin.

Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and
reductions of capital of
Net increase

DISTRICT N O . 1.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Gardner, Mass.
325,000
5,875, 000

Commercial Failures in September.
Commercial suspensions in September show
improvement not only as compared with the
same months for several preceding years, but
as contrasted with every previous month this
3^ear. The total number, as reported by
R. G. Dun & Co., is 1,154, with liabilities of
$11,569,078, as against 1,414, for $16,208,070,
in September last year, 1,615 two years ago for
$23,018,027, and 1,235 with indebtedness of
$22,662,694 in 1913.
The comparisons with earlier months show
contraction from the August returns, when defaults numbered 1,207 and the. amount involved
was $20,128,709, while as compared with the
1,207 suspensions for $11,647,499 in July,
which was the most favorable month up to
September, the showing is even more favorable. Suspensions in January were 2,009 in
number and $25,863,286 in amount.
Detailed figures by Federal Reserve districts
follow:

DISTRICT NO. 2.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Cranbury, N. J.
National Bank of New Jersey, New Brunswick, N. J.
Registrar of stocks and bonds:
Cayuga County National Bank, Auburn, N. Y.
DISTRICT NO. 4.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Peoples National Bank, Zelienople, Pa.
DISTRICT NO. 5.

Trustee:
First National Bank, Elizabeth City, N. 0.
DISTRICT NO. 6.

Trustee, executor,, administrator, and registrar of stocks
and bonds:
Barnett National Bank, Jacksonville, Fla.
Merchants National Bank, Savannah, Ga.
DISTRICT NO. 7.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Batesville, Ind.
First National Bank, Brazil, Ind.
First National Bank, Logansport, Ind.
Merchants National Bank, Michigan City, Ind.
First National Bank, Rochester, Ind.
First National Bank, Boone, Iowa.
First National Bank, Marengo, Iowa.
First National Bank, Montezuma, Iowa.
Trustee, executor, and administrator:
First National Bank, Greencastle, Ind.
DISTRICT NO. 8.

Number
of failures. Liabilities.

District.

No.
No.
No
No.
No
No.

1....
2
3
4
5 '
6...

No

7

No.
No.
No.
No.
No.

8... .
9
10
11 .
12

„
•.. '

'
••

• .

'

........

Total, 1916
1915...
1914
1913...
1912




.

•

'.

.

104
162
74
110
61
124
190
64
32
78
48
107

1839,052
1,685,919
750,253
1,415,550
1,983,290
1,722,912
1,369,295
335,458
124,349
276,403
292,797
773,800

1,154
1,414
1,615
1,235
1,167

11,569,078
16,208,070
23,018,027
22,662,694
13,280,511

Trustee, executor, administrator, and registrar of stocks
and bonds:
Boone County National Bank, Columbia, Mo.
DISTRICT NO. 10.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Idaho Springs, Colo.
DISTRICT NO. 11.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Victoria National Bank, Victoria, Tex.
DISTRICT NO. 12.

Registrar of stocks and bonds:
American National Bank, San Francisco, Cal.

602

FEDERAL RESERVE BULLETIN,

Renewal of Mortgage Loans,
The Federal Reserve Board has recently
received various inquiries as to the question of
renewing mortgage loans made for a year under
authority of the Federal Reserve Act.
One such recent communication raises the
following questions:
(1) Whether a national bank under authority
of section 24 of the Federal Reserve Act may
renew a loan made for one year, accepting as
collateral security a mortgage or deed of trust
on the same property as the original loan.
(2) Whether a new mortgage or deed of trust
must be executed in case such renewal is
accepted.
(3) Whether a note made for one year and
discounted by a national bank under authority
of section 24 of the Federal Reserve Act, as
amended, may be carried after maturity as an
asset of the bank upon payment of interest in
advance without treating such note as overdue
paper.

NOVEMBER 1,1918.

renewal or renewals of the note described
therein, provided, however, the bank does not
in any way obligate itself to grant such renewals, for the statute places a limitation on
the loan made by the bank. The manifest
purpose of the statute is to place the bank in a
position where it can, if it desires, liquidate the
loan at the expiration of one year, thereby
preventing its funds from being tied up for a
longer period. If the mortgage or deed of
trust executed as security for the loan places
the bank in a position where it can proceed
against the property taken as security in case
of default in payment and the loan is not
made for a longer period than one year, the
statute will have been complied with, even
though the mortgage or deed of trust is drawn
so as to permit the bank to make a new loan on
the same security for a period not to exceed one
year, upon the maturity of the note first taken.
In all cases payment and cancellation of the
maturing note should be required, and if the
original note is carried in the assets of the bank
after maturity, it should be treated and reported as overdue paper.

Inquirers have been advised in reply to such
questions that the Act provides specifically that
"no loan made upon the security of such real
estate as distinguished from farm land shall be
made for a longer time that one year." Any
note taken by a national bank, therefore, as
Clayton Act Decisions.
evidence of a loan against real estate other than
farm land, must mature within one year from
The Federal Reserve Board has taken action
the date of its discount. At the expiration of on 1,335 applications for permission under the
one year the bank must have the right to re- Kern amendment, granting 1,195 and refusing
quire payment and to proceed to foreclose the 140. No records exist to show the number of
mortgage, should such action be necessary. directors who have surrendered bank directorAny agreement entered into between the bank ates in accord with the provisions of the act
and the borrower at the time the loan is made, without filing any application. The subtotals
to renew the note at maturity, would not con- of the districts are as follows:
stitute a compliance with the terms of the
Granted. Refused.
District.
statute, but it seems clear, nevertheless, that
if the bank has the option to require payment
No. 1—Boston
66
23
of a note at its maturity at the end of one year, No.
265
54
2—New York
133
13
No. 3—Philadelphia....
it may, should it so desire, make a new loan to No. 4—Cleveland
179
6
107
24
No. 5—Richmond
the same parties and upon the same security No. 6—Atlanta.
129.
0
122
13
7—Chicago
for a further period of one year. In order to No.
54
5
No. 8—St. Louis
27
0
9—Minneapolis
obviate the necessity of executing a new No.
56
0
No. 10—Kansas C i t y . . .
No. 11—Dallas
3
0
mortgage or deed of trust, there would seem to No. 12—San Francisco.
154
2
be no legal objection to having the original
i One of which was refused in part.
mortgage or deed of trust so drawn as to cover 1
a Four of which were disapproved in part.




603

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Amount of clearings and transfers, Federal Reserve Banks,
from Sept. 22,.1916, to Oct. 19, 1916, inclusive.

GOLD SETTLEMENT FUND.

[In thousands of dollars.]

An audit of the Gold Settlement Fund and
Federal Reserve- Agents' Fund was made on
September 19 by a representative of the
Federal Reserve Banks and Federal Reserve
Agents acting in conjunction with representatives of the Federal Reserve Board.
The following results represent transactions
for the month ending October 19:

Total
clearings. Balances.

Transfers.

Settlement of—
Sept. 28,1916
Oct. 5,1916
Oct. 12,1916
Oct. 19,1916....

164,696
161,284
166,589
169,132

11,983
18^ 878
16,888
7,785

250
4,000
4,780
4,450

Total
Previously reported

661,701
2,667,068

55,534
267,080

13,480
92,570

Totals since Jan. 1,1916
Total transfers, 1916
Total for 1915, including transfers

3,328,769
106,050
1,052,649

322,614

106,050

Total clearings and transfers,
May 20,1-915, to Oct. 19,1916..

4,487,468

Changes in ownership of gold.
fin thousands of dollars.]

To Sept. 20, 1916.

From Sept. 21,1918, to Oct. 19,1916, inclusive.*

Balance to
credit Sept.
21,1916, plus
Decrease. Increase. net deposits
of gold since
that date.

Federal Reserve Bank of-—

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

17, OSS
191,143
46,199
12,011
16,495
17,250
10,609
6,458
4,125
25,671
22,746
33,712

Total.

201,752

201,752

13,315
39,857
11,699
11,311
9,955
s -1,130
21,761
758
2,525
8,738.5
s-1,991.5
6,712
123,510

Balance
Oct. 19,
1916.

13,830
7,184
13,687
11,033
17,481
2,795
25,164
4,739
4,552
8,327.
10,668.
4,049
123,510

Total change from
May 20, 1915, to
Oct. 19, 1916.2

Decrease. Increase. Decrease. Increase.

515
32,673

17,600
223,816

1,9

*48*i87
11,733
24,021
21,175

278'
7,526
3,925
3,403
3,981
2,027

7,206
10,439
6,152
25,260
35,406
31,049

411
12,660
"2," 663'
36,025

36,025

231,022

231,022

1 Changes in ownership of gold during period Sept. 21,1916, to Oct. 19,1916, equal 5.3 per cent of obligations settled.
23 Total changes in ownership of gold equal 5.15 per cent of total obligations settled.
Withdrawals have exceeded balance plus deposits.

Gold settlement fund—/Summary of transactions, Sept. 22, 1916, to Oct. 19, 1916, inclusive.
[In thousands of dollars.]
Balance
last
stateFederal Reserve Bank of— ment,
Sept. 21,
1916.
~R OStOTl

New York
Philadelphia
Richmond
Atlanta
Chicago
St Louis
Kansas Citv
Dallas
San Francisco
Total




15,815
9,857
17,179
11 431
13,065
2,870
21,631
2,258
3 525
11, 738.5
5,148.5
6 712
121,230

Transfers.

Gold.
Withdrawn.

Deposited.

Net
Debit. Credit. debits.
250

10,000
1.590
2; 000

7,010

12,200

250
250

250

Total
credits.

849

10,784
27,948
22,985
14,035
13,693
8,134
21,260
18,511
6,639
11,172
7,523
2,012

11,983

164,696

164,696

2,008

2,000

Total
debits.
11,181
36,086
25,576
12,285
11,180
5,964
23,268
17,368
4,875
10,675
5,377
2,861

397
8,138
591

200

600
2,820

Sept. 28, Changes in ownership of gold.
1916,
balance
in fund
Net
after
credits. clearing. Decrease. Increase.

Settlement of Sept. 28, 1916.

1,750
2,513
2,170
1,143
1,764
497
2,146
11,983

15,668
11,719
16,588
13,181
14,188
3,040
19,623
3', 401
5,289
11,635.5
6,474.5
5,613
126,420

147
8,138
591
1,750
2,513
2,170
2,008

1,143
1,764
497
2,146

1,099
11,983

11,983

604

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Gold settlement fund—Summary of transactions, Sept. 22, 1916, to Oct. 19, 1916, inclusive—Continued.
[In thousands of dollars.]
Balance
last
stateFederal Reserve Bank of— ment,
Sept. 28,
1916.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas.
San Francisco
Total...

Federal Reserve Bank
of-

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

Federal Reserve Bank
of—

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

Total.




15,668
11,719
16,588
13,181
14,188
3,040
19,623
3,401
5,289
11,635.5
6,474.5
5,613
126,420

Balance
last statement,
Oct. 5,
1916.
10,305
2,767
19,121
14,063
16,169
2,781
24,336
5,430
3,465
10,286.5
8,592.5
3,374
120,690

Balance
last statement,
Oct. 12,
1916.
10,389
i-10,439
16,238
13,461
17,413
2,822
28,159
6,039
4,720
9,909.5
9,130.5
4,078
111,920

Gold.
Withdrawn.

Transfers.

Deposited.

2,500

Net
Debit. Credit. debits.
1,000

5,000

466"
ioo!

1,000

'2,'666"

5,720

11,450

Gold.
Withdrawn.

1,239
18,878

161,284

161,284

824
1,000
4,000

4,000

Transfers.

1,000
3,000

160
80
950

600"
500

16,206
682

2,000

280
1,500
1,500

600
3,020
200

9,960

1,190

4,780

4,250

1,627
2,551
2,328

160
200
"130

4,000

250

200
250

1,500
168
300
550
3,950

15,540

4,450

4,450
1

151
5,118
18,878

Total
debits.

Net
Total
credits. credits.

14,229
42,810
21,133
11,120
12,132
7,454
17,270
14,480
5,031
12,141
6,335
2,454

15,313
26,604
23,330
10,438
15,026
7,715
19,593
16,589
6,366
12,364
9,893
3,358

166,589

166,589

1,084
"2,"i97

2,894
261
2,323
2,109
1,335
223
3,558
904
16,888

10,305
2,767
19,121
14,063
16,169
2,781
24,336
5,430
3,465
10,286.5
8,592.5
3,374
120,690

Changes in ownership of gold'.
Decrease. Increase,
2,863
13,952

2,933
982
3,211
741
4,713
2,029
151
5,118

19,878

19,878

Balance Changes in ownership of gold.
in fund
after
clearing,
Oct. 12, Decrease. Increase
1916.
10,389
-10,439
16,238
13,461
17,413
2,822
28,159.
6,039
4,720
9,909.5
9,130.5
4,078
111,920

84

13,2

*2*i97

682

541
3,823
609
1,255
223
3,558
704
. 13,888

13,888

Balance Changes in ownership of gold.
in fund
after
clearing,
Total
Net
Oct. 19, Decrease. Increase,
credits. credits.
1916.

Settlement of Oct. 19, 1916.

Deposit- Debit. Credit. Net
debits.

15,000
100
1,000
500

16,888

Transfers.

Gold.
Withdrawn.

4,780

4,933
982
3,211
741
2,713
1,029

Settlement of Oct. 12,1916.

Deposit- Debit. Credit. Net
debits.
ed.

5,240

Total
credits.
10,037
26,246
25,197
11,865
14,305
7,410
21,961
16,229
3,951
10,567
10,738
2,778

2,000
1,000

1,000
1.600
3,000

Total
debits.
12,900
40,198
20,264
10,883
11,094
6,669
19,248
15,200
4,775
10,416
5,620
4,017

2,863
13,952

720

1,950
1,000

Oct. 5,
1916,
balance
in fund
Net
after
credits. clearing.

Settlement of Oct. 5, 1916.

7,785

Overdraft.

Total
debits.
13,775
34,102
24,370
12,798
12,706
6,762
19,312
17,096
6,407
12,841
6,572
2,391

17,216 3,441
32,475
21,819
10,470
' 13,614
273
7,035
20,187
875
200
6,239
11,759
2,088
2,362

169,132

169,132

7,785

13,830
7,184
13,687
11,033
17,481
2,795
25,164
4,739
4,552
8,327.5
10,668.5
4,049
123,510

3,441
2,623
2,551
2,328
908
473
3,125
200
168
1,282

i,*838

29

9,483

9,483

605

FEDERAL RESERVE BULLETIN,

NOVEMBER 1,1916.

Federal Reserve Agents? Fund—Summary

of transactions Sept. °22, 1916, to Oct. 19, 1916,

inclusive.

[In thousands of dollars.]
W e e k e n d i n g S e p t . 29,
1916.
Sept. 21,
1916,
balance.
With- DeposBaldrawn. ited.
ance.

Federal Reserve Agent at—

Philadelphia
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total




,
.

,

3,420
3,420
"i*566" 6,550
5,500
8,550
2,000 10,550
3,080
3,080
2,510
2,710 """266*
1,350
1 350
9,500
9,500
7,580
4,980 " " 2 0 6 '
9,740
9,740
48,830

850

6,300

54,280

W e e k ending Oct. 5,
1916.
With- Deposdrawn. ited.
400
1,950
1,000

200*
200

1,000
1,500
2,500
8,350

Balance.

W e e k ending Oct. 12,
1916.
With- Deposdrawn. ited.

. 3,820
8,500
11,550
3,080
2,510
2,350
11,000
9,880
9,740

360
100

62,430

1,210

240
600
500

266'
400

600
1,000

150
2,940

Balance.
3,700
9,000
12,050
3,080
2,310
2,350
11,200
10,880
9,590
64,160

W e e k ending O c t . 19,
1916.
With- Deposdrawn. ited.

1,000
500
130
1,500
300
500
130

3,800

Balance.
3,700
10,000
12,550
2,950
3,810
2,350
11,500
11,380
9,590
67,830

606

FEDERAL RESERVE "BULLETIN.

NOVEMBER 1,1916.

INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from
time to time over the signatures of the officers
or members of the Federal Reserve Board
which contain information believed to be of
general interest to Federal Reserve Banks and
member banks of the system:
Loans on Farm Land.

Clayton Act Interpretations.

Your letter of September 28, 1916, addressed
to the Secretary of the Treasury, has been
referred to this office for attention.
Section 8 of the Clayton Antitrust Act relating to interlocking bank directorates does not
attach any penalty for noncompliance with its
provisions. Section 11 of that act, however,
authorizes the Federal Reserve Board to serve
a complaint upon any person violating the
provisions of section 8, stating its charges
and containing a notice of a hearing. If the
Board upon hearing believes the law is being
violated, it shall, under the terms of section 11,
serve an order requiring the person complained
of to desist from such violations and to resign
the directorships held contrary to law.
Upon failure to obey such order the Board
may apply to the Circuit Court of Appeals of
the United States for its enforcement. In the
proceedings before the Circuit Court findings
of fact before the Board shall be conclusive,
though new evidence may be introduced by
either party, and the judgment and decree of
the Circuit Court is final, except that it is
subject to review by the Supreme Court of the
United States upon certiorari.

I wish to acknowledge receipt of your letter
of September 27, 1916, relating to the construction of Regulation G of the Federal
Reserve Board.,
The Federal Reserve Act as originally passed
by Congress authorized any national bank to
make loans on improved and unencumbered
farm land under certain specified conditions.
In an act approved September 7, 1916, this section of the Federal Reserve Act was amended so
as to authorize any national bank to loan on
any other* improved and unencumbered real
estate, as distinguished from farm land, provided such real estate is located within 100
miles of the place in which the loaning bank is
located.
Under the terms of the amended law and
the regulation of the Board a loan on real
estate other than farm lands, which will, of
OCTOBER 4, 1916.
course, include city or town property, must
not be for a period longer than one year, nor
shall the amount of any such loan exceed 50
In reply to your letter of the 6th instant, I
per cent of the actual value of the property wish
to state that in the opinion
of Counsel for
p
by which the loan is secured.
Board the acts of a director of a member
OCTOBER 3, 1916.
bank as director, after October 15, 1916, are
valid even though he should later be adjudged
disqualified to serve as such by a circuit court
of appeals as provided under section 11 of the
Member Bank Reserves.
Clayton Act.
In reply to yours of the 3d instant, you
It is understood, however, that acts after
are advised that under the regulations of the the decree of the circuit court of appeals
Board member banks are now permitted to denying the right to serve as director would
carry with their, Federal Reserve Bank any not merely be invalid but also in contempt of
portion of their reserve heretofore required to court.
be maintained in their own vaults. It is, of
OCTOBER 14, 1916.
course, understood that the aggregate in
vault with the Federal Reserve Bank, and
with the approved reserve agent, must equal Heal Estate Loans.
the total amount required by law to be mainIn answer to your letter of October 11,1 beg
tained.
to call your attention to the following letter
OCTOBER, 4, 1916.
sent out by the Board on September 13, 1915,




and published on page 309 of the Federal
Reserve Bulletin of that year:
"While it is the opinion of the Board that,
as a matter of sound business policy, banks
should not be interested in real estate to an
extent greater than the limit prescribed by
section 24, the Board feels that the law is such
that neither the Board nor the Comptroller of
the Currency can require banks that may
choose to make loans under section 24 to include as a limitation under that section the
aggregate of real estate loans which they may
have acquired under section 5137, Revised
Statutes/'
You will notice that this opinion was expressed before the recent amendment to section 24, but although there has been no definite ruling since the adoption of that amendment, this would seem to be equally valid
to-day.
OOTOBEE 14,

1916.

Election of Directors.

Question has been raised whether or not a
resident of that part of Connecticut, which is
now located in the New York Federal Reserve
district, may properly be elected as a class A
director of the Federal Reserve Bank of Boston.




66559°—:

607

FEDEBAL BE SERVE BULLETIN.

NOVEMBER 1,1916.

Section 4 of the Federal Reserve Act provides that—
" Class A shall consist of three members, who
shall be chosen by and
be representative of the
stockholding banks.77
There is no expressed provision specifying
that a person to be eligible as a class A director
must be a resident of the district, but the
Board may very properly rule that a director,
to be representative of the stockholding banks,
must be located in the same district as those
banks. If such were not the case it would be
possible for all 12 Federal Reserve Banks, for
instance, to elect one and the same person as
a class A director..
The term " representative of the stockholding banks" must mean more than the fact that
a person is elected by such banks, because the
act provides that such director
shall be " chosen
by and be representative of'; such banks.
It is the opinion of the Board, therefore, that
though the Federal Reserve Act does not specifically require that a class A director shall be
a resident of the district, nevertheless Congress
clearly intended that all of the class A directors
should not merely be elected by the member
banks but that they should also be truly representative of them and that to insure compliance with this latter requirement such directors should be residents of the district.
OOTOBEE 16,

1916.

608

EEDESAL RESERVE BULLETIN.

NOVEMBER 1,

1916.

LAW DEPARTMENT.
The following opinions of counsel have been
In no other case is presentment for acceptauthorized for publication by the Board since ance necessary in order to render any party
to the bill liable.
the last edition of the Bulletin:
There does not seem to be any doubt, therePresentment of Bills for Acceptance.
fore, that the failure of the holder to present
The drawer and indorsers of a bill of exchange made
the bill in question for acceptance has not
payable on a date specified in the bill are not discharged
by a failure to present for acceptance, unless the bill discharged the drawer or the indorsers and
expressly provides that it must be presented for that pur- has not affected its status as a bill. It is a
pose, or unless it is payable elsewhere than at the resi- date bill and not a bill coming within the
dence or place of business of the drawee.
provisions of section 143.
The remaining question, therefore, is whether
OCTOBER 17, 1916.
SIR: Certain questions have been raised as it is a bill " drawn in good faith against actually
to the status of a draft discounted by a Federal existing values." It is drawn against a cusReserve Bank. The draft was drawn Sep- todian's receipt for 1,075 bales of cotton and
tember 14, 1916, and made payable on No- is, consequently, drawn against actually existvember 15, 1916. Attached to the draft is ing values as that phrase is generally underthe custodian's receipt for 1,075 bales of cotton. stood.
The amount of the draft is $85,000, an amount
It is the opinion of this office, therefore, that
in excess of 10 per cent of the capital and there is no legal objection to the discount of
surplus of the national bank for which it was this bill by the Federal Reserve Bank, prorediscounted.
vided, of course, that it was a bill drawn in
The question to be determined is whether good faith against actually existing values.
this draft, which has not been presented to Any instrument drawn in the form of a bill
the drawee for acceptance, is a bill of exchange of exchange on a dummy drawee or drawn on
drawn in good faith against actually existing a drawee to whom it was never intended to
values within the meaning of section 13 of the present the bill for acceptance or payment*
would not, in the opinion of this office, be a
Federal Reserve Act.
bill
of exchange drawn in good faith against
The instrument is drawn in the form of a
actually
existing values.
bill of exchange and is made payable on a
Respectfully,
date specified in the bill. The fact that it
M. C. ELLIOTT, Counsel.
has not been presented for acceptance does
To W. P. G. HARDING,
not, under the provisions of the negotiable
Governor Federal Reserve Board.
instruments law and under the decisions of
the various courts, affect the status of the bill.
Section 143 of the negotiable instruments
Loans on City Real Estate.
law provides that—
Presentment for acceptance must be made: National banks in making loans secured by improved
1. Where the bill is payable after sight, or and unencumbered real estate may lend an amount equal
in any other case where presentment for to one-half of the market value of the real estate as imacceptance is necessary in order to fix the proved. The value of the improvements constitutes a
part of the value of the property offered as security.
maturity of the instrument; or
2. Where the bill expressly stipulates that
OCTOBER 17, 1916.
it shall be presented for acceptance; or
SIR:
The
attached
letter
from the governor
. 3. Where the bill is drawn payable elsewhere
of
the
Federal
Reserve
Bank
of Chicago has
than at the residence or place of business of
the drawee.
been referred to this office for an opinion. The




NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

question involved is whether a member bank in
making a loan on city real estate may loan up to
one-half of the market value of the property,
including insurable improvements.
Section 24 of the Federal Reserve Act, as
amended, reads in part as follows:
"Any national banking association not situated in a central reserve city may * * *
make loans secured by improved and unencumbered real estate located within one hundred miles of the place in which such bank is
located, irrespective of district lines; * * *
no loan made upon the security of such real
estate * * * shall be made for a longer
time than one year, nor shall the amount of any
such loan * * * exceed fifty per centum
of the actual value of the property offered as
security."

609

Chicago, but within the city limits, may make
loans on real estate under authority of section
24 of the Federal Reserve Act.
Section 24 provides, in part, that—
"Any national banking association not
situated in a central reserve city may make
loans secured by improved and unencumbered
farm land, situated within its Federal Reserve
district.".
This language is free from ambiguity and
while it may work a hardship on the small
banks in the outlying districts of central reserve cities, the board is without power to
grant them immunity.
As Chicago is a central reserve city, a national
bank located within its limits is not authorized
by the terms of the act to make real estate
It will be observed that these loans can be loans.
Respectfully,
made only upon improved real estate. It is
M. C. ELLIOTT, Counsel.
clearly contemplated, therefore, that the propTo W. P. G. HARDING,
erty offered as security shall consist of the real
Governor Federal Reserve Board.
estate and improvements. If this were not
true Congress would not have specified that
such real estate should be improved, and since
the statutes specifically authorize the loans to Promissory Notes of Member Banks.
the amount of 50 per cent of the property Member banks in procuring advances from their Federal
offered as security, it seems entirely clear that Reserve Banks on their promissory notes, must secure such
the 50 per cent valuation will apply to the real notes by paper eligible for rediscount or for purchase by
Federal Reserve Banks or by bonds or notes of the United
estate, together with the insurable improve- States. County warrants are not eligible as security.
ments, and not merely to the real estate which
OCTOBER 5, 1916.
could not be accepted as security without the
SIR:
This
office
has
been
asked for an opinion
improvements.
on
the
question
of
whether
or not a Federal
Respectfully,
Reserve
Bank
may
make
advances to its
M. C. ELLIOTT, Counsel,
member
banks
on
their
promissory
notes
To W. P. G. HARDING,
secured
by
county
warrants.
Governor Federal Reserve Board.
Section 13 of the Federal Eeserve Act, as
amended by the Act approved September 7,
Real Estate Loans by Central Reserve City National 1916, provides, in part, as follows:
Banks
"Any Federal Reserve Bank may make
Any national bank located in the outskirts of a central advances to its member banks on their promisreserve city, but within the corporate limits of such city, sory notes for a period not exceeding 15
is not authorized under the provisions of the Federal days, * * * provided such promissory notes
Reserve Act to make loans on real estate.
are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible
SEPTEMBER 27, 1916.
for rediscount or for purchase by Federal ReSIR: This office has been asked for an serve Banks under the provisions of this Act,
opinion on the question of whether or not a •or by the deposit or pledge of bonds or notes
national bank located in the outskirts of of the United States.7'




610

FEDEEAL RESERVE BULLETIN.

This section specifies in detail the forms of
security which may be accepted by Federal
Reserve Banks as collateral security for bills
payable discounted for member banks.
It will be observed that county warrants are
not included in the list of securities mentioned.
It is significant that while municipal and
county warrants are dealt with elsewhere in
the Act, in the same section in which United
States bonds are made eligible for purchase by
Federal Reserve Banks United States bonds
are mentioned in the foregoing provision while
county warrants and municipal securities are
omitted.
In the opinion of this office, therefore, there
is neither expressed nor implied authority for
a Federal Reserve Bank to make advances to
any of its member banks on promissory notes
secured by county warrants.
Respectfully,
M. C. ELLIOTT, Counsel.
To W. P. G. HARDING,

Governor Federal Reserve Board.
Allonges,
An indorsement of negotiable paper which is made upon
a separate piece of paper attached to the original instrument is a valid indorsement of such instrument.
JULY 12,

1916.

SIR: The opinion of this office has been
requested on the question of whether or not
member banks, in offering paper to their
respective Federal Reserve Banks for rediscount, may indorse such paper on a separate
piece of paper attached to the instrument to be
rediscounted.
The general rule is that an indorsement, to
be valid, must be on the instrument itself.
(Osgood's Admrs. v. Artt, 17 Fed., 575.)
Usually it is written on the back of the security.
It has been held, however, that an indorsement
upon any other part of the instrument is just
as valid as chough written upon its back.
(Young v. Glover, 3 Jur. (N. S.), 637.) An indorsement upon the face of the instrument was
held good in Haynes v. Dubois (30 N. J. Law,




NOVEMBER 1,1916.

259). (Also see Norton on Bills and Notes,
4th ed., p. 151.)
The cases and text writers agree, therefore,
that an indorsement to be valid must usually
be somewhere upon the instrument. The only
exception seems to be the case where the indorsement is made upon a separate piece of
paper attached to and made a part of the
original instrument. This exception apparently developed because of its necessity in
those cases where there was not sufficient room
left for the indorsement on the back of the note
or bill. It seems, however, that, though the
primary reason for the exception was lack of
space, nevertheless, an indorsement in this
manner is valid whether or not there is any
room left on the back of the instrument.
In the case of Osgood's Admrs. v. Artt, supra,
decided in 1883, Mr. Justice Harlan said:
"As a general rule the legal title to negotiable
paper, payable to order, passes, according to
the law merchant, only by the payee's indorsement on the security itself. The only established exception to this rule is where the indorsement is made on a piece of paper, so attached to the original instrument as, in effect,
to become part thereof, or be incorporated into
it. This addition is called, in the adjudged
cases and elementary treaties, an allonge.
That device had its origin in cases where the
back of the instrument had been covered with
indorsements, or writing, leaving no room for
further indorsements thereon. But, perhaps,
an indorsement upon a piece of paper, attached
in the manner indicated, would now be deemed
sufficient to pass the legal title, although there
may have been, in fact, room for it on the
original instrument/'
Since the decision of that case the negotiable
instruments law has been adopted in 45 States.
Section 31 of that law provides that—
"The indorsement must be written on the
instrument itself or upon a paper attached
thereto. The signature of the indorser, without additional words, is a sufficient indorsement."
It is clear, therefore, that in any State which
has adopted the negotiable instruments law
an indorsement made upon a separate piece of

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

paper attached to the original instrument is
valid, and it is also probable that such an indorsement would be valid under the common
law even in those few States which have not
adopted the negotiable instruments law.
Some courts in analogous cases have considered perforation of an attached piece of
paper as an indication that it was intended for
severance and that it was therefore not really a
part of the original contract (see New Bank of
Eau Claire v. Kleiner, 112 Wis., 287; Cedar
Eapids National Bank v. Barnes (Tex.), 142
S. W., 632). In view of these cases it would
seem to be advisable that the attached slips
bearing the indorsement should not be perforated. Furthermore, as a matter of business
prudence this slip should contain a notation
identifying the note to which it is attached.
Respectfully,
M. C. ELLIOTT, Counsel.
To CHARLES S. HAMLLNT,

Governor Federal Reserve Board.

Savings Accounts as Time Deposits.
Savings accounts opened under regulations which do
not require the presentation of the pass book on withdrawal of deposits, but which merely authorize the member bank to require the presentation of such book, are
not savings accounts within the definition of that term
in Kegulation D, series of 1916.
OCTOBER 5,

1916.

SIB: The attached letter from a certain
national bank raises the question whether its
savings deposits may properly be considered
time deposits for the purpose of computing its
reserve.
Section 19 of the Federal Reserve Act provides, in part, that—
"Time deposits shall comprise all deposits
payable after thirty days and all savings accounts and certificates of deposit which are
subject to not less than thirty days notice
before payment."




611

The Federal Reserve Board, in defining the
term "savings account'7 in Regulation D,
series of 1916, has provided that—
The term "savings accounts" shall be held
to include those accounts of the bank in respect to which, by its printed regulations, accepted by the depositor at the time the account
is opened—
(a) The pass book, certificate, or other
similar form of receipt must be presented to
the bank whenever a deposit or withdrawal is
made, and
(6) The depositor may at any time be required by the bank to give notice of an intended withdrawal not less than 30 days before
a withdrawal is made.
The savings accounts of the national bank
in question are opened under regulations
printed in its pass book and agreed to in writing by the depositor. One of the provisions
of those regulations is that—
" Ordinarily withdrawals of deposits will be
peimitted without notice, but the bank reserves the right to require thirty days notice
in writing of withdrawals."
This provision evidently complies with clause
(b) of the Board's regulation defining savings
accounts. Clause (a) of that regulation, however, specifies that the pass book, certificate,
or other similar form of receipt must be presented whenever a deposit or withdrawal is
made and the bank's regulations specify merely
that '-'the bank reserves the privilege of requiring the presentation of the bank book with all
withdrawals of funds," and that deposits may
be withdrawn on written order substantially
in the form of the ordinary bank check.
There is no binding obligation on the depositor
to present the pass book in all events so that
it is the opinion of this office that the deposits
in question are not savings or time deposits
within the meaning of Regulation D? series
1916.
Respectfully,
M. C. ELLIOTT, Counsel.
To W. P. G. HARDING,

Governor Federal Reserve Board.

612

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

SUMMARY OF BUSINESS CONDITIONS OCT. 28, 1.916.
District No. 1—
Boston.

District No. 2—
New York.

District No. 3—
Philadelphia.

District No. 4Cleveland.

District No. 5—
Richmond.

District No. 6—
Atlanta.

Very good..

Very active

Good......

Very active

Highly satisfactory.. Good.

Fair

Generally
light
harvests.
Good prices

Fair

Mixed; t o b a c c o
splendid.
Fair
.:

Yield below normal. Fruit crops good.

Industries of the
district.

Very busy.

Working to capacity.

Very busy.

Engaged to capacity.

Construction,
building.

Ahead of any previous year.

Building permits
decrease.

Fairly active.

Satisfactory, except
for delays due to
lack of material
and labor.

General business..
Crops:
Condition
Outlook.

Foreign trade

Decreased

Bank clearings...

Little change

Money rates

Easy

Railroad,
post- Increasing
office, and other
receipts.
Labor conditions.. Well employed;
wages high and
satisfactory.
Promising
Outlook..
Activity in pracRemarks.
tically e v e r y
line.

District No. 7—
Chicago.
General business..
Crops:
Conditions
Outlook.
Industries of the
district.
Const ruction
and building.

Continuing activity.

Increasing..
.....do

.do.

Good.
Increase

Firmer....

Easy

Increased.

Increasing.

Unsettled.

Unsettled.

Good
A period of extraordinary activity in securities.

Good

District No. 8—
St. Louis.

District No. 9—
Minneapolis.

Spotted; h i g h
Fair
prices prevailing,
Large acreage of
winter wheat.
Active.
Actively engaged.. Very active.
Slow in Chicago; Increase..
brisk in some
manufactur i n g
towns.

Active.

Foreign trade..
Increase

Bank clearings

Increasing

Money rates

Easy; no change.. No change; money
easy.

R a i l r o a d , post- Post-office receipts Increase
increasing.
office, and other
receipts.
Fair
Labor conditions., Good

Outlook..
Remarks.




Bright.
Satisfactory
No change from
previous reports.
Manufactur e r s
seem to have
good volume of
business a n d
farmers p r o s perous.

Exports beyond all Improving.
precedent.
7 large cities in dis- Large increase, indi- Large increases.
trict report 27.5
cating great activper cent increase
ity.
for first half of
October,1916, over
same period last
year.
Steady; no increase. 4 to 6 per cent; fair
demand.
Both show increases. Indicate increases... Increasing.
Scarcity; few strikes. Well employed and
in demand; high
wages.
Most promising
Good
Trade brisk; conditions in general
very satisfactory.

District No. 10—
Kansas City.
Still expanding

Very active.

Increasing..

Increasing..

Record preparations Winter crops fair.
anticipated.
Excellent, except Working to capaclumber,
which
ity; plenty of orpromises improveders booked.
ment.
Building above the Slow, apparently
average for this
owing to high
cost of materials.

DistrictNo.il—
Dallas.

Satisfactory.
Bright.

District No. 12—
San Francisco.

Very good..

Good.

Need moisture.

Good

Chiefly harvested.

Fair

Promising..

Working to full capacity.
Building
permits
increased.

Short volume; high
returns.
In good condition; Active,except lumbering.
reports encouraging.
Much improvement 31 per cent increase
over 1915.
shown in building
and engineering.

Large increase.
Horses and mules Good
less than last year,
grain also less than
1915.
50 per cent increase, 35 per cent increase
Increase
over 1915.
Sept., 1916, over
Sept., 1915.
unNo change; short de- Easy, with tendency Practically
changed; slightly
mand.
to decrease.
lower tendency.
Increase
Good increase shown Increasing.
in these lines.

Good

Quiet; labor shortage continues.

Good

Promising
General conditions
continue highly
satisfactory.

Labor w e l l e m - Somewhat unsetployed, especially
tled.
unskilled, no disturbances.
Very promising
Very favorable.
High prices for farm
products cause excellent t r a d e .
Banks show increase in deposits
largest in history.
Collections good.

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

613

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United
States by Federal Reserve districts. The reports are furnished by the Federal Reserve
Agents, who are the chairmen of the boards of
directors for the several districts. Below are
the detailed reports as of approximately October 23:
DISTRICT NO. 1—BOSTON.'

The expansion .of business in general and the
increase in retail trade continues unabated;
while the current tendency seems to be toward
even greater activity and higher prices, rather
than toward any slackening of demand.
High and increasing cost of everything used
in manufacturing is the most pronounced feature in the situation. Raw materials of practically every kind are scarce and any special
demand raises prices at once. This has been
well illustrated in leather, where the efforts of
domestic manufacturers of leather goods and
shoes to cover their requirements on contracts
have shown the market to be practically bare
of some kinds of leather and have forced prices
upward 10 per cent or 15 per cent in two or
three weeks. Manufacturers of all kinds of
goods have therefore become cautious about
making future contracts until they can see
their way clear to secure the materials needed
to cover. The effect of this condition on the
jobber, retailer, and even the consumer is to
lead him to stock up before prices advance
further. As labor is being well employed at
increased wages and as the farmers are securing good prices for their crops, the buying
power of this district has been materially increased and retailers everywhere are reporting
exceptionally good business.
The money market continues dull and easy,
with no apparent change. Call money, 3 per
cent; six months7 money, 3J per cent to 3 | per
•cent, with exceptions at 3J per cent and some
business at 4 per cent; year money, 4 per cent




to 4J per cent. Town notes, fall maturities,
2.75 to 3 per cent; spring maturities, 3 per cent
to 3J per cent; 90-day bankers7 acceptances,
2 | per cent upward indorsed, 2-| per cent upward unindorsed.
Loans and discounts of the Boston Clearing
House banks on October 14 show an increase
of $18,587,000 over last month and demand
deposits have increased $13,843,000 in the same
period. The amount a due to banks77 on October 14 was $150,161,000 as compared with
$130,044,000 on September 16. The excess reserve of these banks increased from $26,940,000
on September 16 to $36,168,000 on October 14.
Exchanges of the Boston Clearing House for
the week ending October 14 were $189,721,963
as compared with $203,964,782 for the corresponding week last year and $186,433,957 for
the week ending September 16.
Building and engineering operations in New
England continue to set a new high record.
From January -1 to October 18 these contracts
amounted to $168,003,000 as compared with
$141,914,000 for the corresponding period of
1915, and $155,203,000 for the same period in
1912, the best previous year on record.
Exports from the port of Boston for September, 1918, amounted to $15,091,461 as compared with $17,678,230 for August, 1916, and
$7,177,360 for September, 1915. Imports for
September, 1918, amounted to $9,148,998, a
decrease of $2,023,886 from August, 1916, and
a decrease of $3,097,535 from September, 1915.
The receipts of the Boston post office for
September, 1916, show an increase of only
$12,000, or less than 2 per cent over September, 1915. For the first 15 days of October
receipts were about 9 per cent, or $30,000 over
the corresponding period last year.
The Boston & Maine Railroad reports net
operating income, after taxes, for August,
1916, as $1,703,943 as compared with $1,270,930
for the corresponding month of 1915. The
New York, New Haven & Hartford Railroad

614

FEDERAL BESERVE BULLETIN.

reports net operating income, after taxes, for
August, 1916, as $2,366,073, as compared with
$2,114,540 for the same month last year. One
of the larger railroad systems states that there
are about 15 per cent more freight cars on its
lines than normal, but that the number now
is about 20 per cent under what it was at the
time of the embargo last spring.
Now that the harvest is in, reports indicate
that the results are about as estimated a month
or two ago. The hay crop was well above normal. The apple production is about 75 per
cent of normal with a great deal of apple scab
and the quality generally not up to the average.
The grain and oat crop was comparatively
light. The prevailing high price for potatoes
more than offsets the deficienc}^ in the yield,
which was not as great as it has been in some
years past. The cranberry crop is small, due
to wet weather in the early spring.
The uncertainty in the leather situation and
the rapid rise in prices has been very disconcerting to boot and shoe manufacturers.
They are running their factories at full capacity
and are taking care of their regular customers
for some months in advance. Beyond this
they have no idea what prices to ask in order
to protect themselves. Retailers are buying
all that the factories can produce and the
larger manufacturers are distributing their
output in proportion to the amount purchased
by the retailer and jobber in former years.
Collections are very good and this would seem
to indicate that goods are being sold to the
ultimate consumer and not retained on the
shelves of the retailer.
The dry goods business continues active.
The most serious problem confronting the dry
goods merchant is the prices asked for advanced
orders and he is in doubt whether to purchase
now and risk a drop in prices before he receives
and sells the goods or wait for lower prices and
perhaps be unable to get the goods later.
Wool prices are strong, but dealers feel that
the advance is legitimate and the purchasers,
for the most part, are buying to cover contracts. The situation in regard to the importing of wool has not changed. Some wool is




NOVEMBER l f

1916.

coming in from Africa and South America, but
little or none from Australia or the other British
colonies. The woolen and worsted mills are
running as full as practicable, the worsted
mills being retarded to some extent by the
high price of wool required for that industry.
It is said that this is the best high-price wool
market we have had for a great many years.
In the cotton-goods industry conditions are
practically the reverse of what they were in
1914. At that time manufacturers were well
Supplied with finished goods and were glad to
make even small sales. At present the mills
have practically no finished goods for spot
delivery and buyers must content themselves
with making future contracts. It is now the
buyer and not the seller who is urging business.
Cloth brokers are visiting mills and in many
instances are willing to make contracts for
delivery starting late next spring and running
well into the summer. Manufacturers who
have been through similar periods are exercising caution against the day when they may
find themselves with high cost materials on
hand and contracts for their goods canceled.
With this in view they are reluctant to make
commitments as far ahead as the buyers desire.
This is of course natural, in a rising market,
when purchasers can see a profit in everything
they have bought. It has been some years
since new mills in any considerable number
have been built, but now in New Bedford alone
three or four mills are in the process of erection
which will add hundreds of thousands of new
spindles to that city's capacity and bring in
many new operatives. Mill stocks have increased materially in value and price during
the last year and on the average are selling
higher than for some years past, while in many
instances they are establishing new high records. While the price of cotton goods at retail
has advanced, it has not kept pace with the
increased production cost nor with the prices
being obtained by manufacturers. Therefore,
when jobbers and retailers reach the end of
their stocks, purchased many months ago at
lower prices, radical price increases will probably be necessary unless, in the meantime,
there is some decided change in the situation.

FEDERAL RESEEVE BULLETIN.

NOVEMBER 1,1916.

DISTRICT NO. 2--NEW YORK.

In spite of the existing high prices remarkable activity continues in most lines of business
with a general tendency toward further expansion. Manufacturers are unable to keep
pace with their orders, being handicapped by
labor shortage and other deterrents.
Business in both wholesale and retail markets
has been stimulated by more seasonable
weather. In the wholesale trade, buying for
next spring shows some conservatism. Department stores report a slight falling off in
collections, but expect, in the near future, an
improvement in this condition together with a
material increase in sales. Retail clothing
stores are doing a large volume of business.
The cotton goods trade is prosperous although the price of raw materials is very high
and the mills have been unable to run to
capacity because of the scarcity of labor. In
the white goods line, both sales and collections
are good. Demand for woolen goods is strong.
The retail concerns in this line are placing
large orders with the wholesale dealers.
In the leather market there is a heavy demand for raw materials and a continued rise in
prices, which is reflected in the higher cost of
manufactured goods.
The metal trades are very active. Heavy
buying continues in iron and steel, the decrease
in September of 137,773 tons in the unfilled
orders of the largest producer being accounted
for by better working conditions and a consequent increase in shipments. Active buying
by railroads of cars and other equipment is
reported. Electrical supplies and equipment
are in good demand. A large concern in this
line reports that the mills are running to
capacity with more orders on hand than they
are able to fill. The position of the copper
market is very strong, owing to large purchases
by foreign governments. A large volume of
business is reported in paints, drugs, and
chemicals. Conditions in the furniture trade
are excellent, orders being plentiful and collections good. There are no labor troubles, and
very few failures have occurred in this line.
66559°—16




5

615

Jewelers report that sales and collections are
satisfactory. Shipyards are very busy. They
are reported to be buying supplies for delivery
as far ahead as the spring of 1918. Meat
packers report satisfactory conditions in the
domestic market and a steady volume of export trade from this port. The building trade
in New York City has been quiet, statistics for
September showing a decrease from last year
of $2,859,349. Dealers in building materials
report small sales and abnormally high prices.
The scarcity of freight cars in all classes of
equipment became more acute during September, the net shortage on the railroads of the
country having increased from 19,873 cars to
61,030 cars.
Recent developments of importance in the
labor situation have been the settlement of
the controversy between the milk distributers
and producers and the outbreak of a serious
strike among the workers in several large oil
plants in Baj^onne, N. J.
The New York Stock Exchange is passing
through a period of extraordinary activity on
a rising market. Transactions in stocks, in
September, totaled 30,096,390 shares compared with 18,558,765 in September, 1915.
Bonds sold during the month amounted to
$96,384,000 par value against $81,171,000 in
the same month last year.
Exchanges through the New York Clearing
House for the year" ended September 30 aggregated $147,180,709,461. This represents the
most active year in the- existence of the association, the above? figures showing an increase
over last year's total of $56,338,001,738 and
surpassing the previous record year of 1906 by
$43,426,609,370. On October 14 members of
the New York Clearing House reported loans,
etc., $3,337,732,000, deposits $3,436,939,000,
excess reserve $68,914,410. Since September
2 loans have increased $45,395,000, deposits
increased $12,170,000, and excess reserve decreased $26,914,730.
Statistics for September, compared.with the
corresponding month of last year, show large
increases in New York City bank clearings,,

616

FEDERAL RESEBVE BULLETIN.

postal receipts, and exports and imports.
Foreign trade and ocean passenger traffic was
disturbed by submarine activities.
Failures in New York State during September
show a reduction of 73 in number and $2,026,351
in liabilities from September, 1915.
Call money rates were slightly firmer in
September, ranging from 2 per cent to 3 per
cent. Early in October call money touched
4 per cent for the first time since July and is
now being quoted from 2J per cent to 3 per
cent. Time loans on collateral ruled higher in
September and October. There was no change
in the rate for prime bankers' acceptances
eligible for discount at the Federal Reserve
Bank, quotations being 2f per cent to 2 | per
cent for 90-day bills. Commercial paper sold
at 3^ to 4 per cent in September and at 3J to
4 per cent in October.
Sterling exchange exhibited only fractional
changes during September and October. Francs
were stronger, being quoted at 5.83f for checks
in the latter part of September. This month
franc checks have been quoted between 5.84
and 5.85. Compared with August quotations
marks and guilders have declined while rubles
have advanced.
DISTRICT NO. 3—PHILADELPHIA.
Business conditions, as reported throughout
the district, continue good beyond precedent,
the only complaint being the scarcity of
some kinds of raw materials and the shortage
and high wages for both competent and ordinary labor.
The distribution of merchandise is proceeding along very satisfactory lines, the
weather having been of material benefit to
retail trade, and retailers are preparing for the
heaviest Christmas trade in their experience.
Wholesalers report that orders for immediate
and future delivery of fall and winter commodities are being placed in very liberal volume.
Manufacturers in all lines continue extremely
busy.
The railroad freight-car shortage is a serious
factor, as shown by the following decreases in
eastbound empty cars on the Pennsylvania




NOVEMBER 1,1916.

Railroad at Lewistown Junction compared
with the same months of the previous year:
January, 844; February, 395; March, 331;
April, 239; May, 877; June, 397; July, 457;
August, 276; September, 204.
Clothing concerns in Philadelphia report that
standard manufacturers have more business
than they can care for, due to the extraordinary demand on the part of retailers and
a lack of supplies from the fabric makers.
Some orders* for cloth placed 12 months ago
are not yet completed. The situation in some
markets is so bad that the tailor shops have
been forced to run on half time.
In the coal market anthracite continues
strong and steady, with demands greater
than offerings. Bituminous is in active request, with supplies light because the scarcity
of labor is limiting production. The railroads, steel plants, and large manufacturing
concerns are buying freely at steadily advancing prices. The chief factors in the coal situation seem to be the great scarcity of labor and
the shortage of cars, which conditions are
tending to seriously curtail production.. There
was a decrease of 7,554 eastbound cars on the
Pennsylvania Railroad at Lewistown Junction carrying bituminous coal during September compared with the same month of
1915. The production of coke is still far under
the demand, and record prices are being offered for the limited output.
Fairly good crop yields and excellent prices
have resulted in a general condition of
prosperity among the farmers. The high
prices received by the tobacco growers in
Lancaster County for this year's crop have
caused them to plan for an increased acreage
in 1917. There is a scarcity of leaf at present.
Bradstreets report 73 failures in the district during September, compared with 65
in August, 48 in May, and 103 in February,
the May and February figures being the low
and high, respectively, for the year.
Business in groceries is good, but the high
prices have curtailed profits. A shortage is
reported in canned goods, especially tomatoes
and corn, which has sent prices upward along

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

with other commodities. Rice is probably
the single exception to the general rising
prices. • Scarcity of cheese and other dairy
products is also evidenced in rising prices,
and the price of milk to the consumer has
already been raised in many localities.
The activity and rise in pig iron have been
the feature of the iron and steel market during
the past month, for which the renewed export
demand is in part responsible. Activity in
steel products continues with even increasing
pressure. Heavy buying for the first half of
1917, and in some cases for the entire year,
is reported. A scarcity of labor continues to
make it difficult for plants to keep up their
deliveries. Steel plate makers are sold ahead
for the latter part of 1917, and even into 1918.
Orders for business from foreign countries have
been refused because of domestic pressure.
The markets for leather and glazed kid are
extremely firm, tanners and dealers having
reached the point where they must refuse
orders because no leather is available to fill
them. Many tanners of heavy leather are
sold up until the end of this year, and
some concerns beyond that period. America
is supplying most of the world with leather,
it being estimated that from 85 to 90 per
cent of all the tanning is now done in this
country. The demand from abroad is unabated, and cable inquiries are numerous and
urgent. With the enormous quantities going
out of the country, domestic buyers are facing
famine conditions, and are dependent on tanners' policy in caring for customers. A real
hide shortage, due largely to England's activity
in buying up all South American hides available during the next few months, is aggravating the already acute situation. With the
brisk inquiry for all grades of stock, together
with only moderate supplies available, prices
tend strongly upward.
The movement of lumber is about normal,
but prices show an upward trend owing
to lack of adequate transportation facilities,
which renders it difficult to maintain stocks
in some grades. The building industry
is in fair condition, although the diffi-




617

culty in obtaining labor and the high
prices of materials still occasion delay in the
starting of many new projects. A feature of
building construction has been the comparatively large number of new bank buildings
during the past year. Five are now being
erected in Philadelphia, in the heart of the
city, within a radius of three blocks.
Exports during September were valued at
$44,377,000, exceeding by $7,363,000 those of
the preceding month, and are the largest in
the history of the port. During the same
month of last year, exports amounted to only
$9,720,000. Import values amounted to
$6,806,000, which is $1,400,000 less than the
imports during August of this year. In September, 1915, imports amounted to $4,814,000.
Continued rise in the price of cotton and
cotton goods during the past month has featured the market. Cautious buying, however,
is the tendency. The weaving mills are in the
market only to supply their present needs.
The upholstery mills report dullness. The
uncertainty of the situation has been reflected
in cautious buying of wool. The mills have
no stock of yarns on hand, and throughout
the country there is but a small quantity
of goods on the shelves. The policy of restricted buying is giving way to a freer method,
for the chance of cheaper wool before the close
of the European war seems slight. Local
carpet and rug mills are running only about
75 per cent capacity. The knit-goods trade
has continued very good. There is a scarcity
of such goods and they find a ready market.
Four new knitting mills have been started in
this district during the past two months.
Expansion in the silk trade is also evidenced
by the establishment of six new mills. Artificial silk manufacturing concerns report an
exceptionally good condition.
The supply of loanable funds in the banks
continues large, and the rates for money easy.
DISTRICT NO. 4—CLEVELAND.

Conditions in this district have been accentuated in the past four weeks. To say that the
activity in nearly all lines is on a scale now

618

FEDERAL RESERVE BULLETIN.

recognized as the greatest ever experienced
briefly summarizes the situation.
A long dry summer and fall has somewhat
interfered with seeding operations, and farmers
claim that much small grain planted has not
taken root. Tobacco is now entirely housed,
and a great deal of it is almost ready for market.
It was a good crop. The sugar-beet crop will
be short owing to the drought. A great many
farmers who usually buy cattle to feed will not
buy this fall on account of poor pasture and
general shortage of fall feed.
Prices of iron ore and pig iron have advanced
for spot delivery. The most serious problem
in these lines is car shortage, causing delay at
the docks. Lumber demand and inquiries continue fairly good.
So far as price and demand are concerned the
bituminous coal trade is in better condition
than.it has been since the anthracite strike in
1903. The companies, however, are hampered
in making deliveries owing to scarcity of railroad equipment, both cars and motive power,
as well as inability to obtain sufficient labor.
There is a tremendous shortage of coal in the
Northwest. Prices at the mine have been
from $2.15 to $3.50 per ton, and show the excitement which prevails in the market. It is
reported that some industrial concerns have
been forced to use their storage coal which is
carried from year to year for emergencies.
Furnace coke demand is in excess of the supply.
Crude oil and gas operators are more active
even than early in the spring when oil reached
$2.60 a barrel.
Additional strength is seen in the iron and
steel market. There is no diminution in the
volume of demand, and many of the railroads
have come into the market for such cars as
they could obtain with reasonable promptness.
Structural steel has advanced $2 a ton, and
a spectacular advance to $18 a ton in heavy
melting steel has occurred. If severe weather
conditions should be added to present labor
and car difficulties the results might, at least
temporarily, be very serious. Electrical and
other equipment plants report a decided in-




NOVEMBER 1,19IG.

crease in their domestic business. The window
glass and plate glass industries are enjoying a
large business and earning substantial profits.
There is no slackening in the automobile and
rubber industries. Many new automobile and
accessory companies have arisen in the district, and a number of established companies
are increasing their plants, output, and'capital.
There are slight indications, however, of some
readjustment in this industry. Whether this
shall take place in price or radical changes in
construction where a decrease in popularity
has been observed, is not yet evident.
The car shortage situation is the principal
problem of the railroads, and is little improved as compared with 1915. The loads
billed from stations in this district show 11
per cent increase. Traction traffic is above
normal for this season. The annual report of
a large take ship-building concern illustrates
the unusual prosperity in the lake trade. The
company completed contracts for the year
ending June 30 for boats aggregating 37,000
tons, while at the end of the fiscal year it had
orders for an additional 195,000 tons.
Jobbers in shoes, dry goods, clothing, carpets, etc., report excellent business. Prices
are steadily advancing, and indications for a
continuance of present business are encouraging.
Colder weather has given an impetus to retail
trade, and merchants generally throughout the
district are enthusiastic over the situation. In
the larger centers the volume of sales shows an
estimated increase of 12 per cent over the previous maximum at this season. Theaters as
well as other places of amusement report large
receipts. Post office receipts and comparisons
are as follows:
Sept., 1916. Sept., 1915.

Cincinnati
Cleveland...
Columbus
Pittsburgh
Toledo:
Youngstown.........
Total....

$59,654
255,761
319,015
105,927
357,931
93,432
26,122
1,217,842

Increase.

Per cent of
increase.

$50,231
247,083
296,594
99,607
336,563
85,978
21,891

$9,423:
8,678
22,421
6,320
21,368
7,454
4; 231

18.7
3.5
7.5
6.3
6.3
8.6
19.3

1,137,947 ,

79,895

7.0

619

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Labor is scarce in nearly all specialized lines. smallest retail dealer, thus affecting collections
Labor is scarce in the coal fields and skilled favorably.
workers still can find employment in the mills.
Banking transactions have been especially
Workers are being brought in from other parts heavy throughout the month. The money
of the country to relieve the stringency in the market is somewhat steadier, but there are idle
labor market. There are few disturbances or funds in many parts of the district. New
strikes, and a number of wage advances. financing continues in all the centers. InWindow glass factories announced a 10 per creased purchases of securities is in evidence.
cent to 20 per cent advance for unskilled labor. One unsatisfactory feature is the tendency of alScarcity of rentable buildings and a tendency most every group in our communities, business
toward higher rents are reported by real estate and professional, to pay large attention to
dealers. Much new construction work, es- fluctuations in securities markets. Deposits in
pecially among industrial plants, is from four banks are increasing. Member banks in the
to six months behind schedule time for com- four reserve cities of this district showed an inpletion. There is a brisk demand for small crease offift}^millions from May to September.
houses, and contractors are doing a good busi- Clearings are running large, as will be indicated
ness in the medium grade of dwellings. Below by the appended table. Akron has been added
are the building figures for seven large cities to the list for this month, and in next month's
report will be included figures from the city of
in the district.
Dayton.
Valuations.

Permits issued.
Sept.,
1916.

Sept.,

Sept.,
1915.

1916.

Sept.,
1915.

cent
Increase Per
increase
or
or
decrease. decrease.

Oct. 1 to 15.
Increase.
1916

Akron
Cincinnati
Cleveland.
Columbus.
Pittsburgh
Toledo
Youngstown

556
1,260
1,339
274
424
382
124

239 81,893,740 $381,925 $11,511,815
1,303
847,515 1,264,444 1416,929
1,147 2,713,780 2,356,620
357,160
262
43,355
548,065 504,710
278 1,407,094 2,238,415 1831,321
257
701,648 i 24,812
676,836
102
230,815
164,430
395,245

Total.

4,359

3,588 8,482,275 7,612,192

870,083

132.9
15.1
8.5
137.1
*3.5
140.3

Akron
Cincinnati...
Cleveland...
Columbus...
Pittsburgh..
Toledo
Youngstown

Valuations for
year ending—

Sept.
Sept.
Sept.
30, 1916. 30, 1915. 30, 1916.

Sept.
30, 1915.

cent
Increase Per
increase
or
or
decrease. decrease.

Akron
Cincinnati.
Cleveland..
Columbus..
Pittsburgh.
Toledo
Youngstown

4,541
16,304
13,747
3,119
4,159
4,093
1,271

1,943 $91,886,368 $4 246,445 $5,
i, 639,923
15,34011,004,61012; 203,173 1,198,563
13,917 30;1,429,72129; 778,369
651,352
2,653 6,709,680
637,825
071,855
.5,496,16614 699,434
3,71515;
796,732
2,649 9,634,996
683,508 2,951,488
1 , — 3,415,099
501,704
913,395

132.8
19.8
2.1
10.5
5.4
44.1
17.2

Total.

47,234

41,256 86,576,640 76,596,179 9,980,461

13.0

1

Decrease.

Reports are universally satisfactory with respect to collections. One leading company reports as a feature the constantly increasing
number of discounting customers, stating that
a. greater percentage of customers are paying
cash than ever before in the history of the concern. Prosperity has now extended to the




$5,110,000 $4,727,000
62,226,250 7,133,150
78,538,845 42,213,427
15,987,500 6,440,500
122,419,584 14,076,842
16,671,149 6,875,555
4,435,800 2,705,857

Per cent
of increase.
92.5
11.4
53.7
40.2
11.4
41.2
61.0

11.4

Total..
Permits issued

837,000
359,400
752,272
428,000
496,426
546,704
141,657

1915

389,561,459 305,389,128

84,172,331

27.5

DISTRICT NO. 5—RICHMOND.

With the exception of an occasional adverse
report in some special case, and unfavorable
conditions in one or two localities where flood
and weather conditions have brought disastrous crop results, the story of prosperity is reiterated from all parts of the fifth district. The
reports indicate only a fair general average of
crops, but such high prices that the net is far
above the usual returns. In fact, the high
prices bring many comments as to the high cost
of living, and expressions of serious doubt as to
how labor is to support itself, notwithstanding
high wages.
The markets are fairly well supplied with
food crops of the small varieties, such as beans,
sweet potatoes, turnips, and other vegetables,

620

FEDERAL RESERVE BULLETIN.

and all are bringing good prices. The fall crop
of Irish potatoes is only fair, but is selling at
$3.50 to $4 per barrel. Farmers are in a better
position financially than ever before, as the result of good crops and high prices, and are reported buying automobiles "as never before."
There seems to be a steady ingress of homeseekers, the clearing of a large acreage of virgin
soil, and preparation for a large increase in the
acreage under cultivation. Building shows
more activity than last year, and there is a
considerable volume of new work under way.
Upper Maryland reports a good crop of corn
and full prices. West Virginia reports a good
corn crop, and also refers to their "splendid
potato crop," and uwheat above the ordinary.7'
Eastern North Carolina reports crops above
the average. Conditions in other territory are
spotted, some sections reporting serious damage resulting from flood and weather conditions.
The cotton crop is generally reported short,
the best sections estimating only a 50 per cent
to 60 per cent yield. The staple, however, is
bringing 16 cents to 18 cents per pound, the
highest price since the Civil War, which more
than makes a handsome return, notwithstanding the shortage in quantity. Each bale of
cotton, including seed, which is also bringing
high prices, is worth over $100 per bale. The
total value of the crop is estimated at over
one billion dollars. Some few counties in
South Carolina are reliably reported as gathering only a 25 per cent to 30 per cent crop,
and these sections will hardly be able to pay
this year's bills, with nothing left over with
which to start next year's crops.
The peanut crop, which is a very considerable commercial factor in this section, indicates
an average yield slightly below normal, but
the quality is good and the demand good at
fair prices.
The tobacco crop is reported short and in
some sections, light in weight, but prices show
an increase of 100 per cent or more over last
year, the cheaper grades being in especially
good demand and bringing exceptional prices.




NOVEMBER 1,1916.

West Virginia reports an increase of 20 per
cent in its product.
Reports indicate generally only fair fruit
crops, but prices, as in other lines, are high, and
the net result promises to be very satisfactory.
The total apple crop of the United States is
reported about 15 per cent short of last year's
yield, and the growers in this district report
buyers in their market from Northern, Central, and Eastern States where the crop is short.
The demand for merchandise continues active, collections good, and trade is limited only
by the difficulty of obtaining satisfactory delivery of goods. It is reported difficult to
replace goods on the former basis of cost.
Merchants generally, however, express satisfaction with present conditions.
Labor seems to be generally well employed
at good wages and satisfied. Shortage is reported in some lines, particularly at the coal
mines.
Great interest in livestock continues, indicating a steady increase in the product. One
railway company reports the establishment of
11 cattle and hog ranches on its lines. Packing business is reported good.
A few reports indicate fair conditions in
lumber with some improvement, but the trade
does not seem to share in the general prosperity.
Demand for castings is heavy and foundries
are taxed to capacity, but piping is reported
quiet, prices very high and buyers disposed to
hold off for lower prices. One manufacturer
of small hardware reports business still below
normal and prices unsatisfactory.
There is a universal report of very satisfactory cotton textile business, with mills running on full or extra time and the output
readily disposed of at satisfactory prices. The
high price of cotton affects the producing cost,
but prices of goods have apparently advanced
sufficiently for operations to continue on a
satisfactory basis.
Exports from the district show an increase
of 130 per cent over last year. This increase
is represented by mules, iron and steel manu-

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

factures, cotton, grain, some food products,
and other miscellaneous articles.
Port shipments of coal show a decrease from
1,650,000 tons in August to 1,400,000 tons in
September. The falling off has been due to
labor conditions at mines and to car shortage.
These conditions have resulted in higher prices,
ranging from $4.50 to $5 per ton. There are
indications of some improvement in labor conditions, particularly in the Georges Creek and
Fairmont region in West Virginia reached by
the Baltimore & Ohio and Western Maryland
Roads. West Virginia reports conditions in
the neighborhood of the mines as exceedingly
good, a vast quantity of coal being produced
at high prices and mining conditions prosperous, notwithstanding some scarcity of labor.
Railroad earnings are showing a decided
improvement, the greatest improvement being
on the Norfolk & Western Railroad from its
coal traffic. One of the large lines in the South
serving a largely agricultural section reports a
pressing demand for 1,500 cars, which it is having difficulty in furnishing. Out of 30,000 of
its own cars, 16,000 are absent on other lines,
and has in return only 8,000 foreign cars on its
own line, reducing its own supply to 22,000.
Postal receipts indicate an increase of 8 per
cent over last year and money orders 22 per
cent.
Banks are generally reporting an increase in
deposits, most of them ranging from 25 per
cent to 50 per cent. Demand for money is
active but there is plenty of it and rates are
low. Mills are purchasing cotton freely and
require considerable accommodation for the
accumulation of stock, and there is apparently
a considerable demand from farmers for the
purpose of holding cotton, notwithstanding the
extraordinary high prices.
Clearings indicate great activity and a large
increase in business over the corresponding
period for last year. Clearings have increased
33 per cent.
There is general activity in every line of
business, the people being optimistic as to the
future outlook. The shipbuilding plant at New-




621

port News, which is one of the greatest in the
country, is reported full of orders and working
to capacity.
An officer of one of our largest metropolitan
banks who has just completed a trip through,
the South is reported to have said: "The
South, in my opinion, is getting on a sounder
credit footing than ever before, and my feeling
is that these sections are about to enter the
best and most prosperous epoch in their history. I look for a great advancement in population, wealth, and the average conditions of
life within the next decade. One of the important factors in this will be a greater abundance
of money and cheaper average interest rates.
This territory produces real wealth—the consumable commodities which the world must
have—and, with better methods in the future,
is bound to become very rich and populous.
Conditions, in my opinion, are now distinctly
on the upgrade, and the outlook never more
consistent for a return to real, genuine prosperity on a rock-bottom basis/ 7
DISTRICT NO. 6—ATLANTA.
Reports both as to agriculture and almost all
other lines of industry indicate extraordinarily
bright prospects for the coming autumn and
winter trade. While there are some slight disturbances, due to strikes of railway employees
at Atlanta and certain other points, the labor
conditions as a whole are very satisfactory.
Though the crop season, now drawing to a
close, was productive of short crops, the situation is optimistic in view of the prevailing
high prices.
Based upon a short crop and estimated large
consumption, cotton, the leading staple of the
district, has passed the 18-cent level and there
seems to be no sign of slackening in the demand.
In view of the reported advance in the manufactured product, domestic spinners are free
purchasers and with large orders on hand the
mills are not inclined to sell further ahead without keeping up their supply of raw material,
and 20-cent cotton is freely predicted before
another crop can be marketed. The weather

622

FEDERAL RESERVE BULLETIN.

has been very favorable and reports indicate
that 70 per cent of the cotton has been picked
and ginned. With cotton selling at $90 per
bale, and cotton seed averaging $54 per ton,
bringing the farmer $117 per bale, they are
inclined to sell their product and liquidate their
indebtedness.
The boll weevil damaged the crop considerably this year, due to the July storm and wet
season following, and reports indicate considerable spread of the weevil. . Dry weather has
prevented the plowing under of the cotton
stalk to destroy the weevil, but preparations
are being made throughout the district to combat it. The history of the boil weevil north
of 33|° north latitude indicate that in normal
years no great damage may be expected and,
although the heavy rains in July are generally
conducive to its spread, reports indicate that
the pest does not seem to be thriving in that
part of our district.
With the dry weather for the past 30 days
it has been almost impossible to plow and
seed winter grains and grasses, and very little
progress has been made. August and September sown grains and grasses have been considerably damaged by the drought. The corn
crop in the district is about normal, and the
season proved favorable to pasture and hay
crops.
There has been marked increase in cattle and
hogs throughout the district during the past
year, and it is freely predicted th&t the '' smokehouse7' of other days will again become a fixture on every southern farm. With the recent
establishment of packing houses in Tampa,
Fla., Andalusia, Ala., Statesboro, Ga., Jacksonville, Fla., and movement under way to
establish such plants at Macon, Ga., Tifton,
Ga., Augusta, Ga,, and other points, an impetus
has been given to the interest displayed by the
farmers in this diversification. That there is
an increased awakening along this line has been
shown by the building of silos, and the interest
displayed at the recent live-stock shows
throughout the district.
Exceedingly favorable reports come from
the dark-tobacco district of Tennessee. An




NOVEMBER 1,1916.

unusually large crop has been housed, and the
quality is about average. The buyers are
among the farmers, paying high prices ranging
from $6 for the lugs to $13 for the leaf. The
tobacco raised in this district is largely for
export use, and with the export facilities more
favorable, business is expected to show a great
improvement over any time since the beginning of the European war. Florida reports a
full crop of tobacco, with the quality good..
About three and a half million pounds of cigar
wrapper tobacco is the extent of the crop.
The present condition of the citrus crops of
Florida appears to be the same number of boxes
of oranges that were shipped last season, and
grapefruit probably 75 to 80 per cent of last
season's output. The fruit is a better quality
than last year and the sizes will run very desirably in oranges, but on account of the very
short crop grapefruit will probably run to
larger sizes than last season, on the whole.
Last season the fruit shipments were 5,598
cars of grapefruit and 17,836 cars of oranges,
aggregating approximately 8,250,000 boxes.
The shipments for this season will be, as near
as we can tell at the present time, 7,750,000
boxes of grapefruit, oranges, and tangerines.
The securing of an authentic estimate of the
size of the season's crop is quite difficult, for
the reason that there are crops from seven
different blossoms on the tree at the same
time, while the fruit is of different sizes, which
makes it exceedingly hard to estimate the exact number of boxes to be produced.
Business continues brisk in all industrial
lines, being retarded only by the serious car
shortage. The pig-iron market is strong, and
orders exceed the output. Foundry iron is
selling from $15.50 to $16 per ton, and it is
reported that an advance is imminent. A few
furnaces in the Birmingham district for the
first time in their history are turning out basic
iron, which is in demand with the strong market for steel.
Yellow pine has strengthened materially as
to price within the past 30 days. Demand has
been active, reaching at least normal proportions as to volume for the season, and this fact

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

coupled with the slow shipments due to car
shortage is no doubt responsible for the advance in value. Production is evidently considerably below normal, and in view of the fact
that the volume of shipments is so seriously restricted by car shortage we doubt if there will
be any tendency to increase output in the next
90 days. The average price, however, is even
now at least $1 per thousand below normal.
The percentage of increase in cost is more than
the percentage of advance in price, notwithstanding the fact of large advances in price in
almost every other kind of building material.
Business continues strong in the retail and
wholesale lines, some difficulty being experienced in securing goods. Merchants report
that the mills do not appear to be making much
headway in catching up with their orders.
Prices are advancing to the point where profits
are being considerably affected. Shoe manufacturers report more foreign buyers for shoes
and leather than ever known before, due to the
fact that most of the European shoe factories
have been commandeered by the military authorities and are making army shoes. Prices
are exceedingly high, and a return of cheap
leather is not expected for some years to come.
Port business continues to increase. The
Tampa customhouse reports show considerable advance over last year. In internal
revenue figures Tampa also shows a gain with
a total of $726,140 for nine months, whereas
the same months a year ago yielded the Government $659,575. At Savannah the imports
from September 1 to October 15, 1916, show a
total of $400,783, as compared with $237,508
for the same period of 1915. Exports for this
period in the year 1916 show a total of
$9,717,554, as compaisd with $5,840,555 for
the same period of the previous year. The
port of Mobile for the period September 1 to
October 15, 1916, shows exports of $4,674,636,
as compared with $2,063,867 for the same period in the year 1915; while their imports show
$290,147 for the period 1916, as compared
with $599,242 for the same period 1915. Large
increases are also reported from Savannah.
On a recent date the exports were $4,000,000




623

in cotton and naval stores, making a new daily
record for this port.
Building permits issued in 12 of the more
important cities of the district from September
1 to October 15 show an aggregate decrease of
$200,000 over the corresponding period of the
previous year.
Bank clearings throughout the district show
a continued increase. Eeports from clearing
houses in 10 of the principal points in the district for the week ended October 14, 1916,
show an aggregate inciease in clearings of
$31,000,000 over the corresponding period.
Collections are naturally greatly increased
by general conditions. All lines report better
collections than for many years past.
A conference between the coal operators and
railways was recently held with a view of
relieving the car shortage. One of the main
railways'of the district reports "all the box
cars to-day on our line are just a little more
than 40 per cent of the number of cars this railway individually owns. Ail the cars of every
class on our line at this time about 54 per cent
of the number we individually own." While
exact figures are not available it is known that
the railroads supplying the operators of coal
cars in this district have less than 60 per cent
of their equipment on their own lines. All
railway lines report a somewhat similar condition, but notwithstanding this car shortage,
they report increased freight earnings from 10
to 15 per cent over the earnings of previous
year.
The car shortage is of such a serious nature
that many plants fear a shutdown for lack of
coal. Buyers and jobbers of coal are going
to the mines and bidding for coal as loaded.
Steam coal is quoted at $3 to $3.50 at the
mines near Birmingham, which in normal
times sells for $1.25 per ton. The mines continue to operate only part of the time, not having cars for loading, and coal operators see no
relief in the very near future as the coal cars
are not on southern lines.
The New Orleans branch of the Federal
Reserve Bank reports as follows concerning
conditions in Mississippi and Louisiana: "Ex-

624

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

ports from New Orleans during September, so much damage around New Orleans during
1916, were worth $6,000,000 more than during September of a year ago. Although we have
the same month ot last year. Imports de- had a number of severe storms this year, five
creased from $6,755,934 to $5,526,861. Ship- since July 5, some of which were very damaging
ments to Porto Rico decreased from $584,165 in the Southern States, Louisiana has escaped
to $523,551. The falling off of imports is the storm injury caused elsewhere. The indilargely due to lack of shipping between the cations are of good crops harvested early and
port and Brazil.
marketed under the most favorable conditions;
Incoming coffee fell below the totals for and with their marketing must come increased
many years; while nearly 37,000,000 pounds business activity in every line.
were imported in September, 1915, only
Storms and floods which poured an over16,759,378 pounds came in last month. The supply of fresh water into the Mississippi
principal articles of import during the month Sound, have damaged the oyster beds along
were nitrate of soda, 20,848 tons, valued at the Mississippi coast and cut down the yield
$857,657; sisal grass, 7,339 tons, valued at very heavily. Like conditions are reported
$917,189; bananas, 1,651,000 bunches, valued from the Alabama beds, some of the reefs in
at $484,411; pig iron, 938 tons, valued at Mobile Bay having been virtually destroyed.
$40,781; mineral oil, 3,085,448 gallons, valued
Curtailment of the oyster production from
at $25,930; mahogany, 625,000 feet, valued at these fields naturally gives the Louisiana
$43,601; molasses, 1,049,700 gallons,.valued at oyster a chance to capture new markets.
$104,979; sugar, 28,393,474 pounds, valued at Already, local dealers report, demand has regis$1,160,438. '
tered a marked gain, and orders are coming in
It is announced that the harvest season, as from a wider territory than ever before. The
far as it had progressed in Louisiana, has been predictions that shipments will be doubled thi^
most satisfactory, and that the promise is that year seems to be justified and conservative,
most of our splendid crop expectations will be for the oyster's place upon the American bill
realized. The rice harvest, for instance, has of fare is secure and the demand grows norbeen satisfactory as compared with other years, mally year to year.
and the very dry weather that has prevailed
has helped the rice growers to cut and gather DISTRICT NO. 7 -CHICAGO.
the product, so that the work is well in advance
Continuing activity is strongly in evidence
of the same period last year and of previous in this district and in practically all lines. The
years in the yield per acre and the smaller cost banks have funds in ample supply for all
of hai vesting.
legitimate demands, interest rates are low,
Not only is rice ahead of time and the har- and the country communities have shown
vesting condition most satisfactory, but cane themselves able to care for their own requirealso is promising. A number of sugar houses ments to a, great extent. The demand for
have already begun work, and the preparations loans to finance the crops has been smaller
are well under way for general activities. than in some years, and some hesitation is
Those who recall conditions in the sugar shown by the farmers in the matter of purindustry at this time last year can appreciate chasing live stock to feed owing to the high
the improvement resulting from good prices price of corn and fodder in general. Manufacand increased acreage, and above all the turers and merchants have so far been able
better weather conditions that prevail. The to derive satisfactory profits from their outputs
sugar industry has been suffering from a dozen and sales, but the rising cost of raw materials
unfortunate accidents and the acreage, ex- may cut into their earnings unless a proporceptionally small, had been further reduced by tionate increase can be added to the selling
the disatrous West Indian hurricane which did price, and even this would have a tendency




NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

to decrease volume. Labor is well employed
and this produces an ability to buy freely.
An excellent fall trade is anticipated in almost
every line, with a shortage of certain materials
coming more and more into evidence. The
lack of transportation facilities is commented
on by a number of our correspondents, and in
some industries the supply of labor is deficient.
Crops in this district have shown no real
change during the past month, but the general
outlook for those communities which are dependent on the soil is favorable, owing to the
prices that can be realized on their grains.
The principal interests in this line at present
are the fall plowing and the preparations for the
winter wheat crop. Illinois is reported to have
assigned a large acreage to winter wheat, which
is practically all in the ground, and the prospects for this crop so far as can be estimated at
this time are good. The frost in September
damaged the corn crop and there will be some
soft corn as a result. Indiana should have a
satisfactory return from corn due to the high
value of this grain. Dry ground has interfered
with fall plowing, but the acreage of winter
wheat should prove equal to if not slightly
greater than that of last year. Iowa has
enjoyed generally favorable weather, and its
crops should prove fair in quantity and better
than normal in the way of returns. Fall plowing is nearing completion, and the wheat
acreage, particularly in the southwestern part
of the State, is said to be larger than last year.
Michigan shows no change in the matter of this
year's crops. Advantage has been taken of
some favorable weather to plow and seed, and
the acreage of spring wheat appears to be somewhat larger than normal. Wisconsin has had
some cool weather and the acreage of winter
wheat sown to date appears less than normal.
Potatoes are in short supply.
Conditions in the manufacture of agricultural implements have not altered to any
extent since our last report. The sales of farm
machinery are not up to normal, which is to
some extent accounted for by the fact that the
farmer has not adjusted himself to the higher
quotations. It has been difficult for the manu-




625

facturers to secure material, labor is scarce,
and this applies with particular force to expert
mechanics who are able to connect themselves
with those lines which are directly affected by
the war demand. Some of the large companies
anticipate a smaller volume than last year, but
collections seem to be in good shape.
Factories report an active automobile business, due to carried-over orders, as this is
normally the slow time of year in this line.
The usual slackening is evidenced by the decrease in new commitments, and one authority
is of the opinion that production is overtaking
consumption. Collections are good.
There is some decrease in building construction in Chicago, presumably caused by the
increased cost of materials. The building of
apartments is said to have been overdone in
Chicago. Workingmens* homes are still being
erected in considerable numbers in some of
those centers which have received a great
influx of artisans during the past two years.
Cement has been in good demand, but users
have been subjected to considerable delay on
account of the shortage of the car supply and
the difficulty in securing the labor necessary
for packing and unloading. Collections are
good. Brick manufacturers report increasing
sales, with September ahead of the corresponding month last year, and the prospects that
October will show a like gain.
There is great activity in the production of
coal, with constantly advancing prices, and it
is believed that the shortage of railway equipment and the difficulty in securing labor will
continue to restrict the output in spite of the
increasing demand for coal. There has been a
strike in the western Indiana coal fields, but it
is anticipated that matters will be satisfactorily adjusted.
Business in distilling and brewing is better
than last year, with good prospects. Breweries
have enjoyed a prosperous summer owing to
the general and continuous employment of
labor at better than average wages, and the
malting companies report a demand both for
export and domestic use which is maintaining their plants at fullest capacity.

626

FEDERAL RESERVE BULLETIN.

Business gains seem to have been general
among our correspondents in dry goods, and
the fact that goods are going at materially advanced prices does not appear to have affected
the demand. Collections vary in accordance
with local conditions and prompt payment
seems to be the rule. The wholesalers have
been booking orders for spring delivery with
gratifying results. This is attributed to the
desire of the retail merchants to place their
orders before any additional increase is made
in the price of merchandise. The situation is
more or less speculative, as goods are being
bought on the basis of 15 to 17 cent cotton and
wool at corresponding values, but it is necessary that the retailer keep his stocks full owing
to the increased purchasing power of the public
and its disposition to buy.
Manufacturers seem satisfied with the existing conditions, the volume of orders is fairly
well maintained, and collections are good. The
metals goods values have increased the cost of
production to a considerable extent and there
is evidence that purchasers are exercising conservatism in their commitments.
Prices of grain have been firm, with a large
foreign demand and an American wheat crop
considerably less than last year. The reported
impairment of wheat in the Argentine is another
element in the market situation and higher
prices are looked for unless the Kussian supply
can be distributed through the opening of the
Dardanelles. Oats and corn are in good demand and show moderate advances over last
month.
Wholesalers report an unusually heavy demand for groceries, especially canned goods,
and difficulty in securing certain classes. There
have been material advances in sugar, flour,
potatoes, tomatoes, etc. The increase in prices
does not appear to have cut down the volume,
and collections are fair. The collection situation is to a certain extent governed by the
difficulty farmers are experiencing in moving
their grain to market and also by the fact that
fall plowing is under way. One of our correspondents writes that the necessaries of life will
be higher this winter than at any time in our




NOVEMBER 1,1916.

history. On the whole, the grocers are enjoying a larger volume than last year.
Manufacturers are finding difficulty in supplying the requirements of the hardware trade
and in some cases are unable to make prompt
shipments. Wholesale houses report a good
demand with high prices in many lines. A generally prosperous period is anticipated, and
collections are usually prompt although local
conditions control payments and these naturally vary.
The leather industry has been extremely
active, with large bookings of business, and a
strong demand both from domestic and foreign
buyers. The raw material market has been
very strong and it is difficult to tell how long
the condition will continue. In leather belting
there is a little slowing down, which is considered temporary, and conditions are considered
sound with greater conservatism shown in the
purchase of merchandise, machinery, etc.
The demand in all lines of provisions has been
strong during the past thirty days, and we are
advised that stocks have been somewhat depleted. Heavy purchasing of livestock is reported, principally hogs, but the supply has
been liberal and the price declined slightly over
thirty days ago. In general the livestock situation is the same as last month, with some evidence that more cattle have been placed on
feed in this territory and that a large hog crop
is to be expected.
The lumber business, which is dependent to a
large extent on building operations, has shown
a decrease during the last month and there is
some tendency toward lower prices. The requirements of the railroad and car manufacturers are reported as less than normal. Collections in this territory are satisfactory. It
is reported that a good supply of lumber is being
required by country towns, particularly through
Iowa.
The gain in mail-order lines continues, and
the merchandise distribution through the five
States in this district is reported as ahead of the
corresponding period last year.
Favorable business conditions are reported
in the piano industry, and the principal ques-

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

627

tion appears to be the ability of the factories to DISTRICT NO. 8—ST. LOUIS.
take care of their orders. Labor conditions
" Business best in years, with soundest
have been trying, and materials are in short financial condition. Crops spotted, but prices
supply and at high quotations. Some labor easily offsetting effects of bad spots/'
trouble is said to be threatened. Collections
This quotation, from an answer to one of the
are said to be good.
letters of inquiry in regard to business condiFull-capacity production is reported by the tions sent out by this bank, summarizes the
steel mills in this territory and the bookings reports received from practically all lines of
in some cases extend through the third quarter industry. Dry goods, groceries, boots and
of next year. There is said to be a heavy for- shoes, hardware, and jewelry all, report that
eign demand and a. number of manufacturers in their business is extremely brisk and that, at
this country, who are dependent upon this present, there is no indication of a reduction.
material, have been compelled to order what Prices have advanced and are high, but have
they require in spite of the prices which are not yet reached a point where purchasers hesitate to buy what they desire. This applies to
now asked.
luxuries
as well as to necessities.
Watches and jewelry are active, and their
The
only
industries in this district which do
best season should be within the next two
not
seem
to
be at high tide are those connected
months due to the holiday trade. An increase
in business is generally looked forward to by with building. These report a good business,
but they have enjoyed better. Most of the
authorities in these lines.
The raw wool market has attained to greater other industries report that they are enjoying
activity and to higher prices during the past as good business, if not better, than they have
month. It is reported that manufacturers are for a number of years. Shipments show great
covering their wants more freely, evidently increase over the same periods in 1913, 1914,
in the belief that the wool situation is on a and 1915, and collections were never better.
f rm basis with still higher levels likely to ensue. One of our wholesalers, who does a very large
Woolen-goods manufacturers are troubled to business throughout this district, says: "The
gome exent by a shortage of labor, but the de- business condition in the territory is well above
mand for goods is substantial at an ascending normal. People are employed, factories are
scale of prices. It is expected that the volume busy, and merchants are doing the largest busiof business and values will be maintained for ness they were ever doing. We can see no
change in conditions for some time to come."
some time to come* Collections are good.
ll
Clearings in Chicago for the first nineteen From Memphis comes the report, Business in
days of October, 1916, were $1,281,900,000, our line seems to be establishing a new record
being $297,400,000 more than the correspond- for volume in nearly all of our trade territory.
ing nineteen days of October, 1915. Clearings Sales are far above normal, with every indicareported by nineteen cities in the district out- tion of the demand for merchandise continuing
side of Chicago amounted to $207,900,000 for for the balance of the year. On account of the
the first fifteen days of October, 1916, as com- high price of our money crop, ' cotton/ the
pared with $163,600,000 for the first fifteen agricultural population is seemingly in a very
days of October, 1915. Deposits in the eight prosperous and satisfactory condition." A
Central Reserve City member banks in Chicago wholesaler in Arkansas writes: "Business is
were $698,000,000 at the close of business Octo- good—best for a number of years." Another
ber 20, 1916, and loans were $476,000,000. says: •"Business is better than in 25 years."
Deposits show an increase of approximately A third reports that " Crops are short, but busi$26,000,000 during the past month, and the ness is good." Kentucky reports that " Busiloans an increase of approximately $21,000,000. ness in general is much better. The tobacco




628

FEDERAL RESERVE BULLETIN.

crop is very encouraging." From Missouri and
from Illinois come reports that business is good.
From statements made by those who live in
the cotton-growing portions of this district, it
seems that the cotton crop in District No. 8 is
in somewhat better shape than it is in other
districts. An observer from Arkansas reports
that, in his judgment, the crop in that State
will turn out better than the general reports
indicate. Wheat, corn, oats, and hay, in all
of the States in this district, are below the
10-year average, but the tobacco crop in both
Kentucky and Tennessee is fully 10 points
above the 10-year average.
Last year the paper rediscounted by member
banks with the Federal Reserve Bank of St.
Louis reached its largest amount held at any
one time, on November 16. On that day this
bank held a total of rediscounted paper amounting to $1,832,492.77. On October 20 of this
year this bank held a total of paper rediscounted for member banks amounting to
$2,331,883.53, showing an increase over our
largest amount heretofore of $499,390.76, and
we have most probably not yet reached our
highest point this year for rediscounted paper
held on any one day.
The clearings throughout the district show
a substantial increase. For the week ending
October 7, the figures are as follows: Memphis,
99.6 per cent; Little Rock, 94.7 per cent; St.
Louis, 41.7 per cent; Evansville, 27.2 per cent,
and Louisville, 17.] per cent. The check clearing and collection system in this district continues to work satisfactorily. For the third
month that this bank has been working under
the new plan, from September 16 to October
15, inclusive, we handled a total of 220,363
items, amounting to $141,942,921.23. This
shows an increase over the previous period of
18,083 items, but a decrease of $29,337,664.83
in the total amount of them. The number of
items handled during this period by member
banks direct to other Federal Reserve Banks
for our account, not actually handled by us,
amounted to 207,355 items, totaling $43,283,570.34. This means that through the instrumentality of the clearing system, there has




NOVEMBER 1,1916.

been handled through this bank, direct and
indirect, a total of 427,718 items, amounting to
$185,226,491.57, during the third month this
bank has operated under the new clearing system. The total number of banks in this district, members and nonmembers, on which we
could handle items at par, on October 15 was
1,273. On September 16 we could handle
items at par on 1,232 banks, showing an increase of 41 banks on which we can handle
items at par.
Money rates are unchanged, and as a general
rule, the banks throughout the district show
an increase in deposits.
DISTRICT NO. 9—MINNEAPOLIS.
With the potato harvest in full swing, the
crop year in the northwestern States is practically completed. The yield of potatoes will
show a considerable reduction as compared
with a year ago, and the quality is not so good.
Large shipments are beginning to move to
southern and eastern points, and the crop is
commanding an excellent price. The late
forage crops have been gathered, and show a
very heavy yield. The corn crop is being
harvested, and over the district, as a whole, is
very satisfactory, both as to quality and yield,
although it is an uneven crop due to the
weather conditions in the growing season.
Crop year receipts of wheat at Minneapolis
and Duluth terminals since September ]
amount to 24,108,000 bushels, as against
49,008,000 bushels a year ago, and 50,325,000
bushels two years ago. Elevator stocks are,
however, twice as large as a year ago. Receipts have been in moderate volume, accounted for partly by the poor quality and
reduced yield of the crop, and partly by
the disposition of the farmers to hold back the
better grain in anticipation of higher prices.
The price levels have been very unusual, and
there have been predictions by expert authorities in the trade that wheat will go to $2 on the
Minneapolis market. Dry weather in the
Argentine and other conditions have tended to
bring about gradual advances, upon which the
farmers have been taking large profits.

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

In Montana, where the wheat yield was very
good both in quantity and quality, rain and
snow have seriously interfered with thrashing,
and have operated to hold back deliveries to
country elevators. Over the remainder of the
district, farmers have been very busy with tall
plowing, and the weather has been favorable
for the accomplishment of a very large amount
of fall work. This is commented upon as a
particularly favorable factor in view of the poor
preparation of the ground a year ago. Agricultural associations and the grain trade have
cooperated to urge careful preparation for next
year's crop. Considerable attention is being
paid to the seeding question, which has become
important because of a shortage of plump,
high-grade grain.
Flour prices have been advancing in response
to the upward trend of wheat prices, and the
production of the Minneapolis mills has not
been as heavy as a year ago. Flour buyers
have been reluctant to accept the view that
high prices are permanent, and have been buying cautiously.
Based on the market of October 10, the average prices to farmers for wheat at country
points in this district were: No. 1, Northern,
$1.64; No. 2, Northern, $1.60; lightweight
(47-48 pounds), $1.24.
Market conditions have made the demand
for funds from large concerns in the grain trade
light, and money rates are very easy. Indorsed
time grain paper is commanding a 4 per cent
rate, and paper secured by terminal elevator
receipts, 3£ per cent. There is a strong demand
from the East for paper secured by terminal
receipts, but with only a limited amount available.
There is no change of consequence in trade
conditions throughout the district; retail trade
continuing on a favorable basis, and wholesale
and distributing lines enjoying a brisk business. Industrial concerns are producing on a
large scale, with satisfactory orders ahead.
Labor is fully employed at good wages. Banking conditions show no change. Country
banks have been enjoying increasing deposits
and the banks at the larger centers are report-




629

ing gradual increases in the volume of loans.
Rates are stationary, with no sign of change.
Construction is active at urban points, and
the lumber industry reports good business.
Leading business men anticipate a continuarion of the present favorable business conditions
until well after the first of the year, believing
that the high prices for all varieties of farm
products are satisfactorily offsetting the reduction in the grain yield and potato crop.
The strong position of the outside territory is
indicated by a light demand by the country
banks upon their city correspondents, and a
very moderate volume of rediscounts at the
Federal Eeserve Bank.
DISTRICT NO. 10.—KANSAS CITY.

The generally prosperous conditions heretofore existing in this district continue unabated.
Reports from all lines are optimistic and satisfactory. High prices are offsetting the somewhat reduced production in agriculture. Unusually heavy receipts are reported at the livestock markets. Labor conditions are satisfactory. Wholesalers, retailers, jobbers, and
manufacturers are working to capacity. The
mining industry, as a whole, was never in as
prosperous a condition as it is at this time.
In spite of the reduced price of crude oil, confidence among producers is strong for a prosperous period ahead, advances in eastern petroleum contributing to the belief that the
market will soon reassert itself. Discount
rates remain stationary, with a light demand.
All figures received indicate continued increases in railway earnings, post-office receipts, bank deposits, and clearings. Building permits continue to increase in all important cities of this territory, the percentage
for September over the same month last year
running from 45 per cent to 100 per cent.
Shippers in all lines are generally complaining
of the car shortage, many claiming it to be the
severest in years. Higher demurrage rates,
on grain not unloaded promptly at terminal
markets, are already proposed.
Owing to the well-known importance of this
district agriculturally, weather conditions are

630

FEDEKAL RESERVE BULLETIN.

NOVEMBER 1,1916.

terially since last month's report, and the
quality is probably the best in years. Oklahoma claims the finest broom-corn crop for
years, 25 per cent larger than last year, and
there is also an increase of approximately
200,000 bales of cotton. A recently compiled
statement as to Colorado estimates the total
crop production for 1916 as having a total value
in excess of $80,000,000, at least $12,000,000
more than in 1914 or 1915. The increased
value of sugar beets and hay alone amounts to
more than $10,000,000. In Wyoming and
New Mexico the forecast indicates that the
principal agricultural products amount to about
the same as last year, in bushels.
An interesting item from Kansas is the fact
that the alfalfa and sorghum crops in that
State now produce combined yields worth
$50,000,000 annually, whereas 25 years ago
these crops were experimental. A reliable
estimate from this State indicates that at least
one-third of this year's wheat crop, approximately 30,000,000 bushels, 90 per cent of the
alfalfa, 80 per cent of the prairie hay, and 75
per cent of the oats remain in the hands of the
farmers. The corn crop, of course, has not yet
been gathered. In Oklahoma it is estimated
that 27 per cent of this year's wheat, 44 per cent.
of the "oats, and 82 per cent of the corn remains
in the producer's hands. Reports from the
other States in the district in this respect have
not come' to hand, but it is safe to assert that
the average is fairly general. The foregoing,
taken in connection with the record-breaking
deposits in the banks, is indicative of the soundness of business conditions in the district.
The main feature of the live-stock industry
has been the heavy receipts of both cattle and
hogs at all the markets. Denver also reported
that more than twice as many sheep were handled
on October 2 as ever before in one day. m Very
1916
1915
1914
State.
few full-fed beef cattle are being received, it
being apparent that this class of stock has
209
Nebraska...
213
173
152
Missouri
209
158 about been exhausted, and until the new corn
59
172
Kansas
108
63
124
Oklahoma.
50 crop has been fed, light runs of corn-fed beef
cattle are expected. The larger part of the
It will be noted that the estimate on Ne- receipts are grass fed and stockers and feeders
braska's excellent corn crop has increased ma- coming from the grazing districts. The prices

always of first importance. The records for
the crop-growing season since March 1 show
that precipitation, practically over the entire
district, has been considerably below normal.
This deficiency is not favorable to the new
winter wheat crop. More moisture is needed
to promote germination. This section should
be favored with heavy winter snows to open
next spring's growing season under favorable
conditions, and some wet months are needed
to restore the soil to normal. On October 16
the weather map showed rain in the preceding
24 hours in Kansas, Nebraska, Colorado, and
Wyoming, and light snows with freezing temperature were reported at several points. A
killing frost occurred in nearly all parts of the
district late in September, without material
damage, since most of the crops had matured.
Plowing and seeding of winter wheat has been
practically completed in the eastern portion
of the district.
The shortage in the production of wheat in
the three principal wheat-raising States of
this district will amount to approximately
40,000,000 bushels. It will be appreciated,
however, that the increased price will more
than offset the shortage indicated. As an
instance in support of this statement, it is
authoritatively stated that Nebraska's wheat
crop this year will be worth $20,000,000 more
than last year, and this statement is all the
more interesting since the Nebraska wheat
acreage was 352,500 less than last year. The
Missouri wheat acreage "for the 1917 harvest
is said to be the smallest in many years—12
per cent less than was seeded for the 1916
harvest.
The estimated corn crop in the principal
corn States in this district for.the past three
years are here shown in millions of bushels:




NOVEMBER 1,1916.

FEDERAL BESERVE BULLETIN.

on the very best fat cattle have been steady,
but on medium grades of beef cattle and cows
the prices are lower, while stockers and feeders
are lower than they have been for at least two
years. The demand for them is less than usual
at this season of the year. The feed crop being
more abundant than was estimated a month
ago, the demand should be greater for stock to
go back to the country from the market. A
good demand continues for cows for breeding
purposes to go back to the country. Hogs are
about $1 per hundred lower than they were a
month ago.
Stocks of cut pork products at the five western centers—Kansas City, Chicago, Milwaukee,
South Omaha, and St. Joseph—decreased
46,027,000 pounds last month. Three of these
centers, it will be noted, are within Federal
Reserve District No. 10. There was a substantial increase in the number of hogs packed
in every packing center in the district since
February 26, 1916, to date, as compared with
last year.
Foreign exports of grain from ports to which
the products of this district are shipped, and
which constitute the bulk of these shipments
from such ports, indicate that during the month
of September there was a slight decrease in
shipments of this character as compared with
the previous month, and that as compared with
September, 1915, there has been a falling off
of practically one-third in the volume. The
foreign shipment of horses for September shows
a decrease over the same month last year, while
this trade in mules increased in September as
compared with that month in 1915. For the
periods from January 1 to October 1, 1915 and
1916, the former period shows a considerably
larger foreign shipment in both horses and
mules than the latter.
Aside from purely local difficulties, of small
importance, labor conditions may be said to be
rather unusually satisfactory, the only untoward circumstance being the strike voted in
the referendum taken by 40,000 members of
the six shopmen's unions on 22 western railroads, on proposals made by the railroads,
assured by the partial count announced Oc-




631

tober 1. The carrying of the vote does not
imply an immediate walkout. Counter proposals will now be expected. A general shortage of labor continues, and labor bureaus have
had more calls than they could supply. Many
voluntary concessions are reported as coming
from employers, and some concern is expressed
over the future, when the present abnormal
conditions have passed.
Lumber prices are much firmer than they
were 30 or 60 days ago, having advanced from
$1 to $2 per thousand. It is the supposition
that this is largely due to car shortage and not
entirely to the large volume of business. Retailers report the continuance of a very satisfactory business, one important company, operating a number of retail yards throughout the
district, advising that as compared with a year
ago the volume of business is probably 25 per
cent larger. They have shown an increase over
1915 for every month this year except two, and
express surprise, owing to the fact that in some
localities, where the yards are located, crop
conditions have been very unfavorable. Collections are said to be coming in much more
freely than they did last year.
A report recently issued shows that the Jbplin (Missouri-Kansas-Oklahoma) district produced 8 per cent of the total lead ore in the
United States last year, the value thereof being
in excess of two and one-half million dollars.
The production for the first 39 weeks of 1916
sold for more than the entire 1915 production.
Zinc ore produced will also exceed that of 1915,
the value of that sold the first 41 weeks of 1916
exceeding the total sold last year.
According to State estimates, Colorado's
metal output for 1916 will be more than 25 per
cent larger than last year, the greatest in the
history of the State. New mines are still being
located, old mines are being reopened, every
miner in the State has work, and there is an
unprecedented demand for labor at the mines.
The complete success of the flotation process,
referred to last month, is said to have been established at Goldfield, a number of deep shafts
are in progress, and preparations are under
way by the principal producing companies to

632

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

increase.; their ore-handling facilities. An un- has been a decrease of a slightly greater perusually rich body of ore has been encountered centage in volume as compared with the same
at Cripple Creek at a-depth of more than 1,900 period last year. This decrease is due to the
feet. It was formerly assumed that below short grain crop, which affected the sale of
1,000 feet the district would be worthless in so harvesting machinery, and to the drought,
far as the production of gold is concerned. which made it almost impossible for farmers to
Since the first of the year 350 new mining com- plow. Collections are said to have been better
panies, the majority of which are liberally than they have been for 10 years. Farmers are
financed, have been incorporated to operate in paying their bills and dealers are taking more
discounts, with the result that jobbers are going
this State.
In the Mid-Continent oil field a further con- to close their year with a smaller percentage of
traction is reported from the Gushing and Sham- outstanding to sales than they have had for a
rock districts, the total production in the Mid- great many years.
Continent field now being placed at approxiDealers in millinery report the fall trade to
mately 340,000 barrels daily. The Gushing have been considerably better than last year.
field, when at its height, alone produced almost The wholesale drug business showed an increase
this daily total. Lack of water for drilling in September over the corresponding month of
has held back considerable work. Last month 1915, and every month this year has shown an
witnessed a decline in the number of com- increase over the corresponding month of any
pleted wells and also in new work. October previous year. The increased business is
is expected to witness a gain in both completed partly accounted for by the increased price of
wells and in new work, as the purchasing com- goods sold. Conditions in the general retail
panies are taking all oil. Many wildcat tests mercantile business have shown a very satisare under way in Kansas and Wyoming. The factory increase for September. The general
development of Wyoming7 s oil resources is pro- trend since the first of the year has been very
gressing rapidly. Three years ago there were encouraging and indicates a good volume of
but few oil wells in this State and those of com- trade for the approaching holiday season.
paratively little value. The number of wells From reports of important wholesale dry goods
has increased many fold, and if there were concerns, business conditions are ascertained
means of refining, the output would be much to be much more intense. Prices are higher,
more important. The cost of drilling wells has merchandise is scarcer, the demand is greater,
greatly advanced, is still steadily advancing, while the sales and collections are correspondand to complete a new well now demands more ingly larger. The degree of prosperity has been
cash than ever before in the history of the oil so unusual that merchants in this line, like those
fields.
in many other lines, are somewhat at sea as to
Implement dealers report that with season- the future. The mills of the country, which
able needs fairly well provided for, dealers are have never supplied domestic needs, have
turning their attention to the future and are been burdened with supplying our people with
contracting for spring goods more readily than all of their needs, while the foreign demand is
ever before. Immediate trade is confined to unprecedented, so that to-day, in dry goods
strictly seasonable lines. A gain in the tractor lines, our wholesalers are confronted with
trade is evidenced by the fact that one State advanced prices, as against 18 months ago,
alone reports an increase of 60 per cent in use that will average fully 33J per cent, some
this year over last. The first six months of items much more. Retailers in this line
1916 showed an increase of about 20 per cent are enjoying a good business and are paying
in the volume of the implement business over their bills with more promptness than ever
the same period in 1915, but since July 1 there ! before.




NOVEMBER 1,1916.

FEDERAL EESBBVE BULLETIN.

DISTRICT NO. II—DALLAS.

Commercial conditions in the Eleventh
Federal Reserve district continue on an extremely satisfactory basis. The past 30 days
have brought largely increased receipts of
cotton and farm products at marketing centers.
High prices have been obtained for these commodities. Wholesale and retail merchants report extra heavy buying, good collections,
and an exceedingly satisfactory fall trade.
Bankers throughout the district, particularly
in the cotton-producing sections, report that
their deposits are the highest in their history;
that farmers are liquidating to a large extent,
and in .many cases are paying off their obligations before maturity and settling debts of long
standing.
This era of prosperity has brought with it an
advance in prices of the necessities of life, and,
this is being seriously felt. With no appreciable increase in wages, in keeping with the upward prices of foodstuff and clothing, the laborer
finds it difficult to meet the advanced prices for
the necessities of life.
The cotton crop is being rapidly marketed,
especially in central and north Texas, where
a conservative estimate would be that from
80 to 85 per cent of the crop has been gathered.
There has been no loss in the staple, since good
weather has prevailed and enabled the rapid
picking of the crop. But little top crop is anticipated and in most sections none at all.
The interests of the district are so largely
agricultural that conditions in the farming sections rather determine the business of the cities.
Farming conditions, for the most part, for the
past three or four years have been exceedingly
unfavorable, and crops and the returns from
the same have not been satisfactory, due to various causes. This fall, with farmers coming
into their own again, the cities of the district,
where the trade is felt, are realizing the benefit.
Heavy rains have retarded to some extent
the planting of winter wheat, though not sufficiently to be serious. All feed crops are especially good. The threshing of peanuts is now
in progress and the crop is said to be exception-




633

ally large, due in part to an increase in acreage
over last year of at least 25 per cent. This
product is bringing around 90 cents a bushel,
an advance of 33 § per cent over last year. This
has grown to be quite an important industry in
Texas, and each season sees a heavier acreage.
Another item of interest, agriculturally, is the
shipment of black-eyed peas from east Texas.
One concern located at Athens, Tex., has
shipped during the past season some 25 cars
of this product at prices of about $1,000 per
car. The alfalfa crop of New Mexico was good
and much better than in several years. Prices
were around $15 per ton.
Money rates remain easy and there is a tendency to lower them. Bank deposits are reaching the high-water mark and show an increase
of from 50 to 300 per cent over the same time
last year. Demand is much lighter than a
year ago except in the cotton centers, where
there is an active demand for funds to handle
the cotton and cottonseed products. The
loans of this bank have decreased some three
and a half million dollars within the past
month, and are some two million dollars less
than at the same time last year. This is to be
expected at this season, as it is in the midst of
fall liquidation. The problem which presents
itself at this time is the outlet for the idle funds
being accumulated by the banks. No doubt
there will be some seeking investments in commercial paper and short-time maturities.
As evidencing the large increase in deposits,
the following figures obtained from the Texas
reserve cities showing their deposits on October
16, 1915, and October 16, 1916, prove of interest. An increase of 74 per cent is shown. The
figures are: 1915, $109,464,905; 1916, $190,459,992; increase, $80,995,087; per cent increase, .74.
A comparison also of the loans and discounts
and deposits of the banks in the reserve cities
of Texas for June 30, 1916, and September 12,
1916, dates of the latest calls of the Comptroller,
show further heavy decreases. The figures are:
June 30, 1915: Loans, $89,806,000; deposits,
$122,123,000. September 12, 1916: Loans,

634

FEDERAL RESERVE BULLETIN.

$103,010,000; deposits, $144,748,000. Increase in loans, $13,204,000; increase in deposits, $22,625,000.
As indicating the heavy increase in business
generally, caused primarily by the free movement and rapid marketing of the cotton crop,
bank clearings for the eight principal cities of
the district show an increase of over 50 per cent
for September, 1916, over September of last
year. The figures are as follows: 1915, $161,195,047; 1916, $242,741,296. Increase, $81,546,249. Per cent increase, 50.5.
Bond dealers report a very active market
with a large demand at high prices.
With the bulk of the cotton crop marketed
there is less demand on this bank for shipments
of currency and silver, and there has been a very
great decrease in the same within the past month.
In fact, at the present time the opposite condition is beginning to prevail, and our member
banks are making shipments of currency and
coin to us instead of forwarding exchange to
build up their reserves against, items sent them
through our district clearing house.
The operations of our district clearing house
continue to grow heavier. There were handled
for the period September 16 to October 14,
1916 (24 days), 276,946 items, aggregating
$161,944,813. Our member banks are becoming more and more accustomed to the facilities
afforded by this district clearing house and the
number of items handled is growing daily.
Wholesale trade in grocery, drug, leather,
dry goods, and practically all other lines, shows
a large increase in volume, with collections good.
Retail trade, from reports received, is from 25
to 50 per cent larger than last year, and with
colder weather, which is now being felt, retail
merchants have an assured satisfactory trade.
The fall has been rather backward and stocks
have not moved as rapidly as ordinarily at this
season.
Receipts at the live-stock markets of the district continue to show a steady increase, with
particularly heavy receipts of hogs. The figures from the Fort Worth market for September, 1916, as compared with September, 1915,




NOVEMBER 1,1916.

and also for the periods from January 1 to October 1, of 1916 and 1915, are as follows:
September.

Cattle.
Calves
Hogs..
Sheep.

1916

1915

73,513
19,034
73,806
30,726

63,565
16,480
52,470
17,959

Jan. 1-Sept. 30.
1916
613,061
102,250
737,291
353,580

1915
574,357
99,576
330,118
325,913

It will be noted that up to date the receipts
of hogs are more than double the same period
of last year, the prices for which, in spite of
heavy runs, have continued at the high level
of 9 and 10 cents. Good rains have made
range conditions excellent and cattlemen report
that stock will go into the winter in excellent
shape. The stock market shows some improvement and a large number of grass-fed
cattle are expected to be shipped from south
Texas within the next 60 to 90 days. An excellent demand for horses and mules has prevailed, on account of large contracts placed by
the United States Government and European
countries. This has put a substantial amount
of money into the country banks, as such live
stock have brought excellent prices. Reports
from the sheep sections of Arizona and New
Mexico are that lambs are being contracted for
at prices around 8} cents per pound for November delivery.
The shortage of cars is causing a serious
condition with the transportation lines. Officials advise that they are unable to supply
sufficient equipment to handle the business,
and that this condition exists not only locally,
but on all their northern and eastern connections. One official interviewed stated that
they were compelled to refuse certain classes
of shipments on account of freight congestion
at terminals and inability to unload the cars.
An increase in freight traffic of some 25 per
cent is shown over last year. Passenger traffic
is above normal, especially excursion travel
from rural districts and fairs and expositions
over this section of Texas, which are taxing the
railroad and interurban lines to their capacity.

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

Post-office receipts at the nine principal
cities of the district for the month of September,
1916, as compared with 1915, show an increase
of 18.3 per cent, and are as follows: 1915,
$289,466; 1916, $342,574. Increase, $53,108.
Per cent increase, 18.3.
Failures over the district for the period between September 15, 1916, and October 14,
1916, inclusive, compared with the similar
period last year, were:

635

which he ever contended. He further states
that they are unable to ship more than 60 per
cent of their normal output, while the demand
remains equal to a normal production. The
firm in question reports that they have had to
withdraw entirely from the market temporarily
and, unless there is considerable improvement
in the car supply they will cease to accept
orders indefinitely. The shipments are being
made on sales previously contracted and, in
order to take care of the situation as best can
Liabilities.
No.
be done, the production is being regulated to
conform to such demand as can be reasonably
71
$976,401
1915
590,950 met, with a fair supply on hand, yet with a
1916
57
Decrease
385,451 view to prevent an accumulation of stock to
be forced on the market when the car situation
Failures in Texas for the nine months of the is improved.
Manufacturers of brick and cement advise
present year compared with the similar period
that the trade is very satisfactory considering
last year were as follows:
that this season is ordinarily dull with them,
Liabilities. owing to less construction at this time than at
No.
other seasons. They likewise report that the
1915
648 $10,413,164 disturbing element is the scarcity of cars for
414
1916
5,619,038
shipping such material as is ordered from them.
Decrease
4,794,126
The output of the oilfieldsis normal and indications are that prices will be better within the
Building permits for the cities reporting—
next 30 or 60 days. In some of the Oklahoma
Austin, Dallas, El Paso, and Fort Worth—for
fields prices have been increased and Texas
the month of September, 1916, over similar
operators anticipate that it will probably be
period last year, are as follows:
necessary for them to advance prices within a
s—
short time.
No.
Amount.
The copper industry continues active and the
1915
406
$623,882 mines of west Texas and Arizona are running
1916
346
1,088,686
on full time. The coal mines of Oklahoma
Increase
464 804
Per cent increase
74 and west
Texas, however, have suspended
operations temporarily on account of labor disDallas alone shows a decrease in number but turbances. Reports from the New Mexico coal
an increase in valuation of over 180 per cent of mines indicate that scarcity of labor is causing
permits issued in September, 1916, over Sep- difficulty in filling orders. Demands are extratember of last year. Fort Worth shows an ordinarily heavy.
increase of over 60 per cent in its building per- Labor employment in Texas is said to be
mits for the month of September, 1916, over normal with a heavy demand for unskilled
same period of last year.
workmen. There is nothing in the present
The retail lumber business is satisfactory and situation to indicate any disturbances the
demand is good, with the mills operating five coming winter. There will be the usual expiradays a week. Car shortage is having a serious tion of wage contracts, but there is nothing in
effect on the trade and one large manufacturer the situation to indicate any disturbances atadvises that the shortage is the worst with tending the renewal of the same.




636

EEDEEAL BESERVE BULLETIN.

NOVEMBER 1,1916-

State banks show similar gains. Although
Since the establishment of the Federal Re- easy credit conditions have rendered unnecesserve System in November, 1914, there have sary any extensive re discounting, the Federal
been no failures of national banks in this Reserve Bank has nevertheless rendered imporTwelfth Federal Reserve District, which in- tant aid during the harvest season in certain
cludes the seven States west of the Rocky sections having inadequate banking facilities.
Mountains: Arizona, California, Idaho, Oregon, Many banks manifest appreciation of the potential resource, and the resulting additional
Nevada, Utah, and Washington.
Comparing reports of September 12, 1916, stability, but it is natural that there should be
with those of a year before, national banks of a certain percentage of malcontents. The par
seven reserve cities—San Francisco, Los Ange- collection of checks, entered upon in July, by
les, Portland, Tacoma, Seattle, Spokane, Salt Federal Reserve Banks under the requirements
Lake City—show a gain of 23 per cent in de- of the Federal Reserve Act, disturbed previously
posits and 17 per cent in loans, in detail as follows: existing methods. This would naturally arouse
objection on the part of some whether it made
DEPOSITS.
for a better or a worse condition. Many member banks have cordially cooperated, however,
Sept. 12,1916. Sept. 2, 1915. Increase. Per cent
increase.
believing that this plan makes for efficient serv$85,184,000
$65,869,000 $19,315,000
Los Angeles
29 ice to commerce upon which the prosperity of
230,157,000
185,268,000 44,889,000
San Francisco
24
46,778,000
42,050,000
4,728,000
A gratiPortland
11 banks should properly be founded.
23,082,000
17,806,000
5,276,000
Salt Lake City
30
48,055,000
40,723,000
7,332,000
Seattle
18 fying spirit of cooperation has also been shown
24,396,000
18,481,000
5,915,000
Spokane
32
9,045,000
7,675,000
1,370,000
Tacoma
18 by nonmember banks, 1,060 of which out of a
466,697,000
377,872,000
86,799,000
Total
23 total of 1,279 in this district are now remitting
without a deduction for exchange for checks
LOANS AND INVESTMENTS.
drawn on themselves.
The investments of this bank have been
$68,119,000
$59,785,000 $8,334,000
14
Los Angeles
190,194,000
162,725,000 27,469,000
17
San Francisco
41,232,000
4,484,000
36,548,000
12 largely in bankers' acceptances, at rates apPortland
19,695,000
3,872,000
15,823,000
24
Salt Lake City
Before the Federal
6,098,000
36,999,000
30,901,000
20 proximating 2J per cent.
Seattle
4,489,000
20,392,000
15,903,000
29
Spokane
Reserve
Act,
this
class
of
business
was monop1,294,000
7,691,000
6,397,000
20
Tacoma
olized
by
European
banks,
but
eastern
banks
384,322,000
328,082,000 56,240,000
Total.
17
are now accepting extensively and a few enterA similar comparison by States is as follows: prising banks on.the Pacific coast are entering
upon this business, which naturally is engaged
DEPOSITS.
in only by strong banks in financial centers.
Sept. 12,1916. Sept. 2, 1915. Increase. Per cent
increase. Considerable investments have also been in
municipal warrants at rates approximating 2f
$8,145,000
$5,801,000 $2,344,000
Arizona
42 per cent. The laws of Eastern States authorize
485,958,000
388,065,000 97,893,000
California
25
32,354,000
23,395,000
8,959,000
Idaho
38 the issuance of such warrants in anticipation of
9,612,000
7,022,000
2,590,000
Nevada
37
81,680,000
71,077,000 10,603,000
Oregon
15 tax payments.
Presumably the States of this
35,126,000
27,118,000
8,008,000
Utah
29
121,303,000
99,187,000 22,116,000
Washington
22 district will in time amend their laws so that the
774,178,000
621,665,000 152,513,000
Total
24 municipalities may avail of such low rates for
their temporary borrowings.
LOANS .AND INVESTMENTS.
The earnings from investments, chiefly other
than
rediscounts, have been such that this
$6,782,000
$6,150,000
$632,000
Arizona
10
422,144,000
374,252,000 47,892,000
California
12
bank,
on October 1, paid a dividend at the raet
26,448,000
24,399,000
2,049,000
Idaho...
...
8
8,168,000
7,441,000
727,000
Nevada
10
of
6
per
cent per annum from the' date of organ73,345,000
67,883,000
5,462,000
8
Oregon
30,284,000
25,189,000
5,095,000
20 ization, November 16, 1914, to January 1, 1915,
Utah
99,531,000
17
85,444,000 14,087,000
Washington
after charging out all organization expenses
666,702,000
590,738,000 75,944,000
Total
13
and the cost of all furniture and equipment.
DISTRICT NO. 12—SAN FRANCISCO.




NOVEMBER 1,1916.

FEDERAL EESEEVE BULLETIN.

The enormous wealth, from production of
copper has some reflection in the large percentage of increase in deposits shown by the banks
of Arizona, Utah, and Nevada. The profits of
a single copper company in Utah are said to
have reached $4,000,000 in one month. The
large gain in Idaho marks the great prosperity
in the cattle and sheep industries. A reliable
Boise (Idaho) banker gives the information that
sheepmen are realizing the unheard of price of
$8 for lambs in Chicago, with a freight cost of 90
cents.
September bank clearings in 17 leading cities
of this district were 35 per cent greater in 1916
than in 1915. The greatest increases were 56
per cent in Salt Lake City and 42 per cent in
Seattle.
September building permits in the same 17
cities show 31 per cent increase, with the largest
increase in Portland.
Stocks of grain in this district are lower than
in years. Due to heavy European and eastern
demand, buyers of barley, in the production of
which California leads all the States, are offering
$1.70 to $1.90 per cental as compared with
$1.30 to $1.40 last year (or 82 to 91 cents per
bushel this year as compared with 62 to 67
cents last year).
Growers of sugar beets have received high
prices, and sugar factories have made exceptional profits. The Government estimates a
crop of 4,097,000 bushels of beans, 40 per cent
Lima, from 248,000 acres in California, another
product in which California leads. Damage
from discoloration by rain is reported in some
sections. California's onion crop exceeds
2,000,000 bushels, second only to that of New
York.
The apple crop of central Washington suffered
damage from a windstorm on September 26,
some 800 carloads of fruit being blown from the
trees. Prices for apples are reported as good.
Prices for prunes, which have now been harvested, range from 5 to 6 | cents, which is unusually high. In the northwest the sizes were
larger than usual. Unusually early rains about
the 1st of October caused damage to raisins,
grapes, figs, and dried fruits.




637

Up to October 11, 1916, 14,351 cars of
peaches, pears, and grapes had been shipped
out of California this season, compared with
12,900 cars for a corresponding period in 1915.
A carload of soft-shelled walnuts recently
shipped is said to have sold for $10,000.
The olive crop is much below normal.
About 50 per cent of the crop is pickled, almost entirely in the form of ripe olives, the
remainder being used for making oil.
There is a record crop of Valencia oranges
this year, aggregating from 13,000 to 14,000
carloads, compared with 9,500 in 1915 and
12,000 in 1914. Returns to growers have been
equaled only once in recent years. The maturing crop of navel oranges, the first shipments of which will be made about November
15, is estimated at 93 per cent of a full crop, or
about 5 per cent above the average. The embargo has been raised against shipments of
citrus fruits to Australasia, a market which
absorbs about 3,300 carloads. With the Florida crop estimated at 71 per cent, the outlook
seems to be for good prices. A condition of
general prosperity always assures large returns
to Pacific Coast fruit growers, who are now
benefiting unusually because of the great business activity of the East.
Lack of transportation continues to hamper
the lumber industry. Even for interior shipments there is an acute shortage of cars.
Shipyards, which are,crowded to the limit,
report some difficulty in securing material. A
disagreement recently between the members of
two labor unions, reported to have no complaint against the employing concern, resulted
in 2,200 employees of a San Francisco shipbuilder going on strike.
To the 5,000 tons of shipping under the
American flag on the Pacific Ocean, 17,000 tons
have been added by the purchase of three
steamers by the Pacific Mail Steamship Co.
This compares with 80,000 tons prior to the
war. Japanese interests are largely in control
of trans-Pacific transportation, the Japanese
merchant marine, on January 31, 1916, comprising 1,856,877 registered gross tons of steam
and 554,605 gross tons of sailing vessels, with

638

FEDERAL RESERVE BULLETIN".

NOVEMBER 1,1916.

half a million gross tons since started on a total daily average of 265,514 barrels. This
Japanese stocks. One Japanese company, compares with a daily average in September,
which bought the principal ships of the Pacific 1914, of 282,152 barrels. Shipments during
Mail Steamship Co., is reported to be earning September increased 2,021 barrels per day to
$1,000,000 per month. Norwegian interests a daily average of 307,145 barrels, a new
are also active, and are reported as about to record, reducing stocks in storage 1,248,923
establish a Norway-California line.
barrels, a total reduction during nine months
A merger of the Pacific Alaska Navigation of 8,566,630 barrels. The amount now reCo. and the Pacific Coast Steamship Co. into maining in storage is 48,469,257 barrels.
the Pacific Steamship Co. involves 22 steamThe president of a Phoenix (Ariz.) bank
ships of 55,000 gross tons and makes the new sums up the local situation with this statement:
company supreme in the coastwise service along "The outlook in all lines of business is all that
the entire Pacific coast, including Alaska. can be desired." Except for inactivity here
Greater efficiency in operation is anticipated and there, as in lumbering and real estate, this
from combining the two fleets under a single is typical of conditions quite generally throughmanagement.
out this district, so far as the near future is
Petroleum production in California during | concerned.
September increased 6,055 barrels per day to j




NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

639

DISTRIBUTION OF DISCOUNTED PAPER eight months of the present year. Discounts
of this class of paper since September 2, 1915,
BY CLASSES, SIZES, AND MATURITIESthe date of the first discount of this class of
Commercial paper discounted by the Federal paper at special reduced rates, total $4,774,900,
Reserve Banks during September, 1916, of which about two-thirds is credited to the
amounted to $14,308,700, compared with Richmond and Atlanta banks.
$17,351,800 for August, 1916, and $13,238,200
The total number of bills discounted during
for September, 1915. Of the total September September was 5,214, compared with 8,542 for
discounts the share of the three southern banks the immediately preceding month, and 9,173
is about 46.2 per cent, as against slightly over for September of the past year. As the amount
40 per cent in August, 1916, and 65.4 per cent of the bills discounted during September shows
in September, 1915. The only other bank with a much smaller relative decrease, the average
discount operations of some volume for the size of the paper discounted during the month,
month is Chicago, which reports considerable $2,740, is largely in excess of the August, 1916,
discounts of farmers7 paper among its total average of $2,030, and of the September, 1915,
monthly discounts of 2.3 millions. Discounts average of $1,570. Over one-half of the amount
of the Federal Reserve Banks for the nine of the month's discounts is represented by
months of the present year totaled $114,387,200 large-sized notes in denominations of over
as against $112,620,500 for the corresponding $5,000, as against a little over 30 per cent in
period in 1915. Among the total discounts for September, 1915, while the share in the total
the month advances to member banks against amount of medium-sized notes, in denominatheir own notes secured by discounted paper or tions of over $1,000 to $5,000, is over 40 per
United States bonds and Treasury notes figure cent, being slightly larger than in September of
to an amount of $1,260,850. Such advances, the past year. Small notes (in amounts up to
not to exceed 15 days, were authorized by a $250) constituted 13 per cent of the total
recent amendment to section 13 of the Federal number and less than 1 per cent of the month's
Reserve Act and special rates ranging between total discounts.
3 and 4 per cent have been announced for this
Of the total bills discounted during the
class of paper by all the Federal Reserve month 10.4 per cent was 10-day paper, i. e.,
Banks.
maturing within 10 days from the day of disDiscounts of commodity paper likewise in- count by the Federal Reserve Banks; 26.9 per
cluded in the monthly total aggregate $1,636,300 cent 30-day paper; 27.3 per cent 60-day paper,
as against $507,500 in August and an average and 28.7 per cent 90-day paper. Less than
of $1,299,000 for the eight months of the present $1,000,000 is represented by the amount of
year. Nearly all of this paper was handled by 6-month paper, i. e., agricultural and live stock
the Richmond, Atlanta, and St. Louis banks. paper with maturities in excess of 90 days at
During the present year the discounts of com- the time of discount by the Federal Reserve
modity paper totaled $12,028,400 of which Banks, the Chicago and Dallas banks reporting
nearly 90 per cent was secured by cotton, while over 60 per cent of this class of paper.
On the last Friday of the month the banks
the total since September 8, 1915, the date
when special lower commodity paper rates first held a total of $25,953,000 of discounted paper,
went into effect, was $22,343,500, handled by compared with $27,032,000 about a month
before, and $30,033,000 on the corresponding
seven banks.
Discounts of trade acceptances (two-name date in 1915. Nearly 60 per cent of the dispaper) figure in the above monthly total to an counted paper held about the end of the month
amount of $583,500, compared with $230,400 was the share of the three southern banks,
in August and an average of $279,000 for the compared with 62.5 per cent about the end of




640

FEDERAL RESERVE BULLETIN.

August, 1916, and 68.5 on the nearest date in
the past year..
Of the 7,624 member banks only 448, or
less than 6 per cent, figure in the list of banks
accommodated through the discount of paper
during the past month. The largest number,
85, is shown for the Chicago district, where a

NOVEMBER 1 , 1 9 1 6 .

growing number of banks in agricultural communities is being accommodated through the
rediscount of farmers7 paper. The number of
southern banks rediscounting during September was 213, compared with 371 reported the
month before, and 416 in September of the past
year.

Commercial paper, exclusive of bankers' acceptances, rediscounted by each of the Federal Reserve Banks during the month of
September, 1916, distributed by sizes.
NUMBER OF PIECES AND AMOUNTS.
[In thousands of dollars.]
$500 Over $1,000 Over $2,500 Over $5,000
To $100. Over $100 Over $250 Over
to $250. to $500. to $1,000. to $2,500. to $5,O6O. to $10,000,

Total.

Total.

Percent.

*S

Banks.

Boston..
.-.—
New York.
,
Philadelphia
Cleveland
Richmond...
Atlanta (including NewOrleans branch)
,
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Over
$10,000.

0.5
.6
3.2
2.3
1.8
.5

1.0
2.1
4.7
1.5
27.8

3.0
3.4
10.7
6.3
.98.1

1.8
12.3
11.6
9.6
235 189.4

23.9
14.5
11.0
1.7
2.9
7.8
2.5

73.5
66.5
46.6
6.1
16.5
22.3
4.7

213 170.1
210166.6
63.7
58.1
39.1
65.0
6.6

28
64
246

9.9
73.5
57.9
127.9
442.6

92.8
165.4
182.0
107.7
527.2

277.1
121.9
195.2
75.0
217.7

166
243
115
82
89
159
11

264.4
414.2
190.5
125.1
145.5
270.9
18.8

794.1
683.4
376.7
113.2
124.8
475.8

396.8
289.8
353.7
38.7
63.9
314.2
14.0

450.0 82 835.6 1.6 5.8 $10,190
133
560.6 2.6
182.0
4,210
83.7 169 546.3 3.2
3,230
151
880.0 2.9 6.2 5,830
551.4
987.61.,111 2,493.6 21.3 17.4 2,240
16.9
16.2
12.1
2.4
2.8
11.9

2,460
2,520
3,110
1,470
1,510
3,100
1,300

12610.9 561101.4 899 357.71,028 793.9 1,249 2,141.2 899 3,681.3 293 2,358.0 159 4,864.3 5,21414,308. 7 100.0100.0

2,740

10

682.1
681.0
29

550.8

984
921
554
233
261
550
65

2,420.8
2,318.9
1,723.7
342.9
393.9
1,707.6
84.8

18.9
17.7
10.6
4.5
5.0
10.5
1.2

P E R C E N T A G E S OF AMOUNTS OF EACH CLASS TO TOTAL.
Banks.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta (including New Orleans
branch)
Chic ago
—
St. Louis
Minneapolis
Kansas City
Dallas....
San Francisco
Total.




To $100.

0.1
.1
.1
.1
.1

Over $100
to $250.

Over $250
to $500.

0.1
.4
.9
.2
1.1

0.4
.6
2.0
.7
3.9

0.2
2.2
2.1
1.1
7.6

1.2
13.1
10.6
14.5
17.8

11.1
29.5
33.3
12.2
21.2

33.2
21.7
35.7
8.5
8.7

53.8
32.5
15.3
62.7
39.6

100.0
100.0
100.0
100.0
100.0

1.0
.6
.6
.5
.7
.5
3.0

3.0
2.9
2.7
1.8
4.2
1.3
5.5

7.0
7.2
3.7
16.9
9.9
3.8
7.8

10.9
17.8
11.1
36.5
37.0
15.9
22.2

29.5
21.9
33.0
31.7
27.9
45.0

16.4
12.5
20.5
11.3
16.2
18.4
16.5

28.8
29.4
39.5

100.0
100.0
100.0
100.0
100.0
100.0
100.0

.7

2.5

5.5

15.0

25.7

16,5

34.0

Over $500 Over $1,000 Over $2,500 Over $5,000
to $1,000. to $2,500. to $5,000. to $10,000.

Over
$10,000.

32.2

Total.

100.0

NOVEMBER 1,1916.

641

FEDERAL BESEEVB BULLETIN.

Commercial paper, exclusive of open-market purchases, discounted during September by each of the Federal Reserve Banks,
distributed by States, and maturities as of date of discount.
[In thousands of dollars.]
Paper maturing—
of
Number of Number
banks
member
accommobanks.
Within 10
dated.
days.

Districts and States.

District No. 1—Boston:
Connecticut

.....

Massachusetts

....

Rhode Island

. . .

Total
District No. 2—New York:
Connecticut. . .
New Jersey
New York
.. . .

...

Total .

Total
District No. 4— Cleveland:
Kentucky
Ohio
Pennsylvania
West Virginia

:

Total
District No. 5—Richmond:
District of Columbia
Maryland
North Carolina
South Carolina
Virginia.
West Virginia
Total
District No. 6—Atlanta:
Alabama . . .
Florida
Georgia.. .
. .
Louisiana
Mississippi
Tennessee
,

. ..
.

Total

'.

Total.. . .
District No. 8—St. Louis:
Arkansas
Illinois
Indiana
Kentucky.
Mississippi
Missouri
Total
District No. 9—Minneapolis:
Michigan
Minnesota
Montana....
.
North Dakota
South Dakota
Wisconsin
Total




After 30
but
within 60
days.

After 60
but
within 90
days.

21.8

522.1

65.0

After 90
days.

Total
commercial
paper
discounted.

1
3

60.2

48

1
1

1.0

9.2

402

6

61.2

181.0

522.1

71.3

129
482

1
8

20.0
48.0

300.3

60.7

128.9

2.7

20.0
540.6

626

9

68.0

300.3

60.7

128.9

2.7

560.6

24
72
534

1
7

2.5

472. 9

35.4

1.0
8.6

25.8

.1

542.8

630

8

472.9

37.9

9.6

25.8

.1

546.3

70
374
299
13

3
9

291.1

407.6

16.1
126.7

27.8

1.1

25.7
854.3

756

12

293.8

414.5

142.8

27.8

1.1

880.0

15
96
81

1
2
24

1.4

79
145

26
19

40.3
32.4
1,356.4
721.2
292.3
51.0

56
17

6.3

6.3

669.1

loO. 0

150.0
10.2
835.6

15

.

District No. 3—Philadelphia:
Delaware
New Jersey
Pennsylvania

District No. 7—Chicago:
Illinois
Indiana
Iowa
Michigan .
Wisconsin
,

56
67
158

After 10
but
within 30
days.

....

..

104

3

520

75

93
55

17
9

2.7

6.9

3.5

2.5

568.5
121.4
35.4
10.6

211.4
398.8
160.7
24.1

40.3
27.4
362.6
197.5
91.0
16.3

215.0

735. 9

800.0

735.1

7.6

2,493.6

70.3
48.4
105.9
3.6

84.0
76 7
379.4
9 1

163.4
122.9
293.4
219.9

3.0

320.7
248.0
788.1
232.6

212.5

5.6

1.0
5.2

110
21
18
93

22
5

1.5

18

10.0

129.4

189.9

489.9

12.2

831.4

390

71

11.5

357.6

739.1

1,289.5

23.1

2,420.8

318

16

143! 0

1,152.4
7.5
54.0

51.2
32.1
190.8

41.0
21.2
270.1

74.8
11.0
241.4

1,462.4
71.8
762.0

.2

.8
2.5

1.0
5.5

.8
5.9

13.9

196
353

6
59

5.7
6.0

7.9

8.8

76
51

2
2

994

85

154. 7

1,214.1

277.4

3"38.8

333.9

2,318.9

67
157

7
9

10.0

44.3
2.8

81.3
8.0

32.8
25.6

19.9

168.4
56.3

.3

.5

61
67
18
80
20

1
2
4
6
8

470

37

200.0

"•.8

2.0

252.5

22.4
59.8
121.4
254.9

7.5

231.1
157.5
192.9
916.7

212.0

309.3

548.1

607.1

47.2

1,723.7

29
2
3
5

11.9
3.3

53.8
• 7.1
15.7
3.1

78.0
9.7
10.2
12.6

111.1
6.4
.3
11.3

254.8
26.5
26.2
27.0

2

5.3

2.9

.2

41

20.5

82.6

110.7

129.1

342.9

8.7
1.0

90.6
57.8
399.8

12.7

7.1

32

284
74
155
125
88
758

8.4

642

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

Commercial payer, exclusive of open-market purchases, discounted during September by each of the Federal ReserveBanks\
distributed by States, and maturities as of date of discount—Continued.
[In thousands of dollars.]
Paper maturin
Number of
member
banks.

Districts and States.

District No. 10—Kanas City:
Colorado
Kansas
Missouri
New Mexico
Oklahoma
Wyoming
Total
District No. 11—Dallas:
Arizona
Louisiana
New Mexico
Oklahoma
Texas
Total
District No. 12—San Francisco:
Alaska
Arizona
California
Idaho
Nevada
Oregon
Utah
Washington

*

Total

Number of
banks
accommodated.

Within 10
days.

Total
commercial
paper
discounted.

After 10
but
within 30
days.

After 30 .
but "
within 60
days.

After 60
but
within 90
days.

40
.9
4.1

19 1
5.9
7.1

33 1
5.1
6.6
24.9
16 7
83.4
1.2

1 9
35.8
18.1
40.0
18 6
14.2
3.7

58.1
47.7
35.9
64.9
59 7
122. 7
4.9

2
3
4
9

After 90

days.

121
221
54
193
9
303
36

9
1

0.2

4.1

24 4
20.8

937

29

.2

13.1

77.3

171.0

132.3

393.9

6
11
28
33
543

3
9
3
52

1 5
55.6
41.7
160.1

15.2
85.0
26.4
481.5

12 5
150.9
46.5
362.4

88.6
179. 7

29.2
380.1
114.6
1,183. 7

621

67

258.9

608.1

572.3

268.3

1,707.6

2.8
8

24.5
1 8

29.1

15.0

75. £
2.6

2.1

4.2

5.7

30.5

1
7
261
58
10
82
23
78
520

6
1

4.5

1

8

4.5

6.3

15.0

29.1

84.8-

KECAPITULATION.
[In thousands of dollars.]
Paper m a t u r i n g -

Districts and cities.

No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.

1—Boston
2—New York
3—Philadelphia...
4—Cleveland
5—Richmond
6—Atlanta
7—Chicago
8—St. Louis
9—Minneapolis
10—Kansas C i t y . . .
11—Dallas
12—San Francisco.

Total for September.
Percent
Total for January-September, 1916.
Total for January-September, 1915.




Number Number
of banks
of
After 10
member accom- Within days
but
banks. modated, 10 days. within
30 days.

756
520
390
994
470
758
937
621
520
7,624

*4.*5"

181.0
300.3
37.9
414.5
735.9
357.6
1,214.1
309.3
20.5
13.1
258.9
5.7

522.1
60.7
9.6
142.8
800.0
739.1
277.4
548.1
82.6
77.3
608.1
30.5

1,493.8
10.4

3.848.8
' 26.9

27.3

61.2
68.0
472.9
293.8
215.0
11.5
154.7
212.0

402

.2

448

Total comAfter 30 After 60
mercial Per cent.
days but days but After
paper diswithin
within 90 days. counted.
60 days. 90 days.

14,532.4 25,075.5
18,792.3

71.3
128.9
25.8
27.8
735.1
1,289.5
607.1
110.7
171.0
572.3
29.1

2.7
.1
1.1
7.6
23.1
333.9
47.2
129.1
132.3
268.3
15.0

4,107.4
28.7

960.4
6.7

14,308.7

26,554.2 33,587.8
41,196*. 4 39,599.5

14,637.3
13,032.3

114,387.2
112,620.5

e

560.6
546.3
880.0
2.493.6
2,420.8
2.318.9
1.723.7
342.9
393.9
1,707.6
84.8

5.8
3.9
3.8
6.2
17.4
16.9
16.2
12.1
2.4
2.8
11.9
100.0
100.0

643

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Trade acceptances discounted by each Federal Reserve Bank from Sept. 2, 1915, date of first discount, to Sept.

Total to
Dec. 31,
1915.

Federal Reserve Bank.

B ost on
New York.
Philadelphia
Cleveland
Richmond
Atlanta (including New Orleans
branch)
Chicago

^ amber, 1916.

$7,100
$5,700
4,900
450,500

6,300
136,400

1,007,100

89,300

Total
for first
9 months
in 1916.
$35,600
5,600
64,800
140,200
987,400
731,300
8,200

Federal Reserve Bank.

St. Louis
Minneapolis...
KansasiCity...
Dallas
San Francisco.
Total..

Total to
Dec. 31,
1915.

September, 1916.

September, 1916.

Total
for first
9 months*
in 1916.

$2,881,400

$512,700

$6,075,200

7,032,300
99,800
25,300

874,600
246,500

5,006,900
246,500
19,800

Total to
Dec. 31,
1915.

Richmond
Atlanta (including New Orleans
branch)
S t. Louis
.'
Minneapolis

Federal Reserve Bank.

Kansas City...
Dallas
San Francisco.
Total..

Total
for first
9 months
in 1916.

$167,800

$189,300

87,800
160,800
74,200

70,500
84,600

$441,300
600
190,900
178,100
32,100

1,958,800

583,500

2,816,100

Commodity paper discounted by each Federal Reserve Bank from Sept. 8, 1915, date of first discount, to Sept.

Federal Reserve Bank.

80,1916.

Total to
Dec. 31,
1915.

September, 1916.

30,1916.
Total
for first
9 months
in 1916.

$239,100
37,200

$2,500

$360,000
225,200
94,800

10,315,100

1,636,300

12,028,400

Commodity paper discounted by each Federal Reserve Bank during the nine months ending Sept. SO, 1916, distributed by
classes.
Atlanta
(including
Richmond. New Orleans
branch).

Class.

Coffee
Cotton
Flax

$6,029,500

$500
6,800
125,000
4,358,000

St. Louis. Minneapolis.

$101,500

140,000

Hav

.

.

.

Peanuts

• ------- . - . . . .

Raisins
•Wheat
Miscellaneous

• ................

Total

Dallas.

$218,200

$3,000

San Francisco.

2,900
29,200

7,000
$360,000

41,100

900

4,600

337,100
6,100

145,000

6,075,200

5,006,900

246,500

16,800
19,800

360,000

225,200

Total.

5,000
7,600
10,500
24,000

$500
6,800
125,000
10,707,500
3,000
140,000
400
46,400
9,900
30,200
360,000
42,000
5,000
7,600
364,400
179,700

94,800

12,028,400

$300

400

. . . .

Maize.

Oats
Oil

Kansas
City.

46,400
1,000

Member banks' collateral notes discounted by each Federal Reserve Bank during the month of September, 1916.

Federal Reserve Bank.
Philadelphia
Cleveland
Richmond
-•
Atlanta (including New Orleans branch)




September, 1916.
$25,000
350,000
460,000
140,850

Federal Reserve Bank.

September, 1916.

St. Louis....
Dallas

$200,000
85,000

Total.

1,260,850

644

FEDEKAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Amounts of commercial paper, exclusive of bankers' acceptances, held by each Federal Reserve Bank on Sept. 29, 1916+ distributed by maturities.
Paper maturing—
Federal Reserve Bank.

Boston.
New Y o r k . . . .
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas......
San Francisco

10 but After 30 but After 60 but
Within 10 After
within 30 within 60 within 90
days.
days.
days.
days.

,

Total.
Percent
Amounts held on Oct. 1,1915
P er cent

After 90
days.

$240, 700
156,100
22,700
356; 100
1,443,000
749, 000
289,900
224,500
325,800
180,800
1,288,500
52,100

$132,600
205,400
48,600
110,100
1,449,600
1,065,800
355,000
593,900
184,600
677,100
1,224,100
85,400

$385,700
368,200
27,500.
133,300
1,746,500
1,398,800
744,400
705,300
678,700
318,400
2,219,700
100,900

$46,000
52,500
22,600
35,800
605,000
660,700
589,100
520,400
456,800
253,900
835,800
68; 100

$2,900
3,300
24,100
32,200
469,100
48,000
235,700
184,500
471,200
46,300

5,329,200
20.5
4,168.6
13.9

6,132,200
23.6
8,020. 6
26.7

8,827,400
34.0
11,518.4
38.4

4,146, 700
16.0
4,875.3
16.2

1,517,300
5.9
1,451.0
4.8

Total.

Per cent.

$805,000
782; 200
124,300
638,600
5,268,200
3,906,500
2,447,500
2,092,100
1,881,600
1,614,700
6,039,300
352,800

3.1
3.0
.5
2.5
20.3
15.1
9.4
8.1
7.2
6.2
23.3
1.3

25,952,800

100.0
100.0

*"30,' 633! 9'

100.0

ACCEPTANCES.
Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file on dates specified, distributed
by classes of accepting institutions.
[In thousands of dollars.]
Bankers' acceptances.

Date.

>

1915.
Feb.22
Apr. 5
-May 3
June 7
July3
Aug. 2
Sept.6
Oct.4
Nov.!
Dec. 6

93
3,653
5,038
5,242
4,342
5,350
6,087
9,000
8,477
12,311

7,820
8,189
4,516
5,267
5,407
6,305
4,898
4,331
5,172

26*
20
132
253
275

1916.
Jan. 3 . . ; . . . .
Jan. 10
Jan.17
Jan. 24
Jan.31
Feb.7
Feb. 14
Feb. 21.
Feb. 28.:....
Mar. 6
Mar. 1 3 . . . . . .
Mar, 20
Mar.27
Apr. 3.
Apr. 10
Apr. 17

15,494
16,492
16,908
16,348
15,834
15,681
17,581
17,661
17,436
17,182
20,323
20,563
21,128
21,000
22,239
22,135

7,160
8,057
7,655
8,070
8,174
7,876
7,985
8,194
8,755
8,670
10,032
11,280
12,864
13,573
14,864
15,028

362
370
425
363
356
336
347
392
408
408
470
408
411
473
476
564




Bankers' acceptances.

Trade
accept- Total
Nonmember banks.
ances
bought acceptMemin
open ances.
ber
Trust State Private Total. market.
banks. companies. banks. banks.

i5

10
10

110
110
192
161
352
472
343
204
396
822
938
1,010
1,441
1,510
1,456
1,851
1,841
1,841
1,781
1,631
2,467
3,078
3,262
3,405
3,442

93
11,593
13,347
9,960
9,770
11,129
12,884
14,373
13,265
18,154

93
11,593
13,347
9,960
9,770
11,129
12,884
14,373
13,265
18,154

23,833
23,838
25,857
25,857
25,998
180 26,178
26,222
180 26,402
25,874
180 27,054
25,349
489 25,838
27,764
528 28,292
28,088 • 460 28,548
28,440
460 28,900
28,041
462 28,503
32,456
546 33,002
34,718
678 35,396
37,481
629 38,110
38,308
722 39,030
40,984
874 41,858
41,169 1,321 42,490

Date.

1916.
Apr. 24
Mayl
May8
MavlS..
May 22
May 29
June 5
June 12.
June 19......
June 26
July3
July 10
July 17
July 2 4 . . . . . .
July 31
Aug. 7
,..
Aug. 14
Aug. 21
Aug. 28
Sept. 4
Sept. 11
Sept. 18
Sept. 25
Oct.2
Oct.9
Oct. 16
Oct. 23

Nonmember banks.'
Member
Trust State Private
banks. companies. banks. banks.

23,566
24,875 '
25,058
26,633
26,639
26,104
24,680
27,354
32,011
33,155
32,989
34,144
40,497
41,514
41,395
39,695
41,536
43,058
43,061
41,413
39,766
42,533
40,309
37,798
36,957
37,655
39,694

15,196
15,400
15,750
15,372
16,490
16,541
17,029
19,209
19,490
18,722
18,921
20,201
22,309
22,327
21,437
19,060
18,144
19,849
20,716
20,356
20,747
22,105
22,636
21,782
23,195
23,684
26,281

584
585
671
773
690
690
644
622
560
552
471
620
593
610
724
738
754
736
734
726
760
743
711
712
705
784
867

3,504
3,430
3,493
4,960
6,038
5,895
7,007
7,865
9,067
11,009
11,830
11,827
13,193
12,977
13,619
13,940
13,443
12,623
12,673
12,491
11,531
11,443
10,795
9,944
10,251
10,230
10,718

Trade
accept- Total
ances
bought acceptin
open ances.
Total.
market.

42,850
44,290
44,972
47,738
49,857
49,230
49,360
55,050
61,128
63,438
64,211
66,792
76,592
77,428
77,175
73,433
73,877
76,266
77,184
.74,986
72,847
76,824
74,451
70,236
71,108
72,353
77,560

1,438
1,477.
1,518
1,635
2,006
2,037
2,208
2,310
2,054
1,958
3,422
3,052
3,685
3,651
3,722
4,225
4,387
3,748
3,815
3,673
2,676
2,673
2,796
2,306
2,048
1,897
1,723

44,288
45,767
46,490
49,373
51,863
51,267
51,568
57,360
63,182
65,396
67,633
69,844
80,277
81,079
80,897
77,658
78,264
80,014
80,999
78,659
75,523
79,497
77,247
72,542
73,156
74,250
79,28a

645

FEDEEAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Amounts of acceptances held by each Federal Reserve Bank at close^ of business on Fridays, Sept. 29 to Oct. 20, 1916t
distributed by maturities.
[In thousands of dollars.]

Acceptances m a t u r i n g -

Within 10 days:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
From 11 to 30 days:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
From 31 to 60 days:
Sept. 2 9 . . . . . . .
Oct. 6
Oct. 13
i
Oct. 20
From 61 days to 3 months:
Sept. 29
Oct. 6
Oct. 13.
Oct. 20
Total acceptances held:
Sept. 29
Oct. 6
Oct. 13
1
Oct. 20

New
York.

Philadelphia.

413
853
1,296

5,542
4,358
3,250
3,478

2,356
1,931
1,095
1,426

1,387
819
1,025
1,134

1,000
400
103
429

378
152
174
652

1,240
436
526
642

1,587
1,711
1,837
3,105

6,345
6,291
5,706
4,217

2,504
2,903
3,612
2,770

1,518
2,142
1,894
1,450

330
103
613

807
1,191
1,122
644

832
1,230
1,223
1,242

4,851
5,773
6,245
5,189

7,079
6,018
6,611
7,569

3,250
2,831
3,331
4,478

2,166
1,800
'2,394
2,392

719
719
481
528

763
827
877
991

3,482
2,169
1,266
1,623

5,563
6,481
6,968
9,044

3,275
3,665
3,068
3,791

1,492
1,481
920
1,306

297
447
582
685

1,179

10,246
10,066
10,201
11.213

24,529
23,148
22,535
24,308

11,385
11,330
11,106
12,465

6,563
6,242
6,233
6,282

Boston.

Cleve- Richland. mond.

2,346
1,669
1,779
1,880

Atlanta.

Chicago.

San
Minne- Kansas
St.
FranLouis. apolis. City. Dallas. cisco.

Total.

1,265
515
723

631
328
604
412

159
92
139

24
144
71

1,770
1,100
855
1,009

16,078
10,688
9,478
11,315

922

631
976
797
657

235
517
755
fi%

120

1,948
1,827
1,642

1,283
1,707
1,498
957

17,114
20,719
20,884
17,618

2,297
2,005
2,076
2,170

2,161
1,330
1,439
1,915

1,325
1,061
902
978

840
67?
391
377

150
150

2,246
1,818
2,038
2,420

27,697
24,854
26,935
29,157

1,588
1,563
1,385

1,278
1,544
1,617
1,703

1,195
1,332
1,185
1,056

464
462
576
720

182
198
395
645

100

1,329
1,810
1,940
2,303

19,736
21,177
20,080
24,361

3,127
3,758
3,736
3,672

5,647
5,215
5,442
5,757

5,543
5,125
5,174
5,262

3,051

1,416
1,479
1,680
1,906

144
144
221
250

6,435
6,331

80,625
77,438
77,377
82,451

2,827
2,939
2,767

Distribution by maturities of acceptances bought in the open market by each Federal Reserve Bank during the calendar year
1915, and the first 9 months of 1916.
[In thousands of dollars.]

Acceptances m a t u r i n g -

Within 30 days:
Calendar year, 1915
6 months ending June, 1916
July, 1916
August, 1916
September, 1916
Total for 9 months, 1916
After 30 but within 60 days:
Calendar year, 1915
6 months ending June, 1916
July, 1916
August, 1916
September, 1916
Total for 9 months, 1916
After 60 days, but within 3 months:
Calendar year, 1915
6 months ending June, 1916
July, 1916
August, 1916..
September, 1916
Total for. 9 montns, 1916
Total acceptances bought:
Calendar year, 1915.;
6 months ending June, 1916
July, 1916
August, 1916
September, 1916
Total for 9 months, 1916




New
Boston. York.

Philadelphia.

Cleveland.

Atlanta
Rich- (includNew Chicamond. ing
go.
Orleans
branch).

191
163
704

1,246
4-, 728
2,038
1,477
317
8,560

695
4,552
754
983
634
6,923

101
322
402
41
20
785

2,137
1,433
4
87
723
2,247

2,377
5,083
1,169
1,101
1,227
8,560

1,464
4,016
739
609
1,934
7,298

746
1,267
406
855
489
3,017

961
62
46
749
1,818

11,471
24,049
1,391
4,062
3,787
33,289

22,211
34,435
11,161
5,508
6,940
58,044

5,406
10,959
3,556
2,069
4,023
20,607

2,116
5,472
2,855
1,257
2,278
11,862

238

14,105 25,834 7,565 2,963
25,832 44,226 19,527 7,061
1,395 14,368 5,049 3,663
2,153
4,340 8,086 3,661
4,673 '8,484 6,591 2,780
36,240 75,164 34,828 15,664

497
350

St.
Minne- Kansas
Louis. apolis. City. Dallas.

103

7
270

156
133
480

"n

617
887

300
913

71

45
21
3
10
31
65

19
261
8
250
339
858

816
1,840
849
362
871
3,922

374
1,151
294
382
887
2,714

191
630
69
216
299
1,214

4,810
5,389
1,948
1,390
1,696
10,423

1,324
4,321
2,036
1,335
1,561
9,253

1,219
2,500
1,262
827
702
5,291

1,536
1,635

"'297'
535

46
2,126
404
666
1,190
4,386

250
1,540
1,205
446
2,827
6,018

72
2,657
412
916
2,146
6,131

5,782
7,362
3,277
1,752
2,867
15,258

1,801
5,472
2,401
1,717

1,455
3,151
1,334
1,053
1,032
6,570

1,788
2,103

50

1,098
463
3,664

649
227
926

579
905
400
1,781
3,665

250

2,448
12,038

1,159
750
2,299
619
759
474
4,151

19,380
4,219
4,978
8,179
36,756

2,419
5,847
2,628
500 1,349
2,068
500 11,892

52,808
96,733
27,479
19,750
24,790
168,752

3,230
8,685
3,399
2,576
2,542
17,202

64,845
127,666
36,503
28,447
37,087
229,703

149
227
426

183
459
311
187
957

787
248
2,670

61
539
152

Total
for
system.

2,980
11,553
4,805
3,719
4,118
24,195

50

37

San
Francisco.

646

NOVEMBER 1,1916.

FEDERAL RESERVE BULLETIN.

Distribution by sizes of acceptances bought in the open market by all the Federal Reserve Banks during September, andfor the
first 9 months of 1916.
To $5,000.

To $10,000.

T o $25,000.

T o $50,000.

501 1,429,342
75,097
23

370 2,833,240
684,700
75

630 10,782,869
411,837
30

164 6,795,609
1
40,000

6,836,652

37 $7,197,162 1,780 i$35,874,874 96.7
129 2 1,211,634 3.3

524 1,504,439
4.1

445 3,517,940
9.5

660 11,194,706
30.2

165 6,835,609
18.4

D, 830, 002

37 7,197,162 1,909 37,086,508
100.0
19.4

$916,682
1,633,337
1 533,168
1,012,891
847,351
941,908
789,675
546,959

232 $1,888,457
495 4,026,432
737 6,238,168
219 1,755,224
281 2,305,281
234 1,983,554
159 1,307,989
220 1,720,758

422 $7,835,547 131 If 5,340,003
80912,830,111 185 7,662,059
853 13,739,638 191 8,209,613
312 5,960,425 108 3,262,880
313 5,420,116
94 3,896,184
356 6,578,432 109 4,539,671
196 3,548,326
49 1,830,851
217 4,113,726
47 1,857,477

To $100,000.

Over $100,000.

Total.

Acceptances bought in open
market.

September, 1916:
Bankers' acceptances^.
Trade acceptances
Total
Percent.
Total acceptances bought
during:
August, 1916
,
July, 1916.
,
June, 1916
May, 1916.
.,
Ajpfil, 1 9 1 6 . . . .
.,
March, 1916
,
February, 1916
January, 1916

327
562
335
267
194

18.4

69 $5,744,106
" 5,065,021
6,763,226
5,698,417
2,697,334
5,095,263
1,613,614
1,284,593

35 $6,.. 721,610
5,286,683
5,913,336
4,221,630
3,332,850
3,779,223
3,326,375

1 216 $28,446,405
2', 112 36,503,643
2,463 42,397,149
1,059 21,911,467
1,000 18,499,116
1,071 22,918,051
707 12,416,830
9,523,513

Total acceptances
bought during 9
months ending September, 1916
3,292 9,726,410 3,022 24,743,803 4,138 71,221,027 1,079 43,434,347 492 40,798,226 209 39,778,869 12,232 229,702,682
1
2

Of the above total, bankers' acceptances totaling $34,103;182 were based on imports and exports, and $1,771,692 on domestic trade transactions.
All trade acceptances were drawn abroad on importers m the United States and indorsed by foreign banks.

Amounts of short-term investments (municipal warrants) held by each Federal Reserve Bank at close of business on Fridays,
Sept. 29 to Oct. 20, 1916, distributed by maturities.
[In thousands of dollars.]

Warrants maturing—

Within 10 days:
Sept.29
Oct. 6
Oct.13
Oct. 20
F r o m 11 t o 30 days:
Sept. 29
Oct. 6
,
Oct. 13
Oct. 20
F r o m 31 t o 60 days:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
F r o m 61 t o 90 days:
Sept.29
Oct. 6.
,
Oct. 13
Oct.20
,.
From 91 days t o 6 months:
Sept. 29
.Oct. 6
Oct. 13
Oct. 2 0 . . .
Total municipal warrants held
Sept. 2 9 . . .
Oct. 6
,
Oct. 13
Oct. 20
•.




Phila- Cleve- RichNew
Boston. York. delphia. land. mond.

42

15
15
75
754

19
366

697
659
679
1,027

Atlanta.

76

Chicago.

San
St.
Minne- Kansas
Louis. apolis. City. Dallas. Francisco.

50

Total.

399
200
363
260

25

25

15
232

59
195

8
109

18
265

1,329
874
1,236
3,208

810
1,455
1,472
1,517

232
600
720
781

195
587
508
443

110
282
274
274

265
859
911
791

3,851
11,050
12,673
12,522

706
508
373,
156

469
217
719
668

223
51
159
118

816
288
1,218
1.317

11,407
9,838
11,069
10,142

784
2,391
3,020
2,592

721
2,300
2,850
3,461

366
1,525
1,852
1,712

368
1,051
1,063
948

2,787
1,360
748
592

2,545
2,977
3,669
3,403

1,327
1,468
1,173
1,173

923
1,391
1,460
1,317

3
3
5
5

1,608
1,575
1,545
1,393

512
276
209
226

1,038
1,842
983
818

581
405
405
238

141
40
224
685

10
10
5
5

679
963
675
595

283
213
418
357

242
102
122
102

8
152
152

345
279
473
398

3,839
4,138
3,666
3,576

434
375
365
318

569
569
569
569

70
56
56
56

523
523
627
881

10
61
61
61

276
276
278
278

642
247
248
238

264
264
59
59

346
346
346
346

18
18
18
18

450
450
271
271

3,602
3,185
2,898
3,095

4,532
4,417
4,417
4,482

4,873
7,688
8,071
8,251

2,386
3,454
3,505
3,545

2,652
3,664
4,053
4,858

86
61
.61
61

289
289
291
291

4,138
4,440
4,303
4.003

1,510
1,585'
1,585
1,585

1,277
1,252
1,754
1,754

359
359
611
671

1,926
1,876
2,891
3,042

24,028
29,085
31,542
32,543

NOVEMBER 1,1916.

647

FEDERAL RESERVE BULLETIN.

Total investment operations of each Federal Reserve Bank during the month of September and 9 months ending September,
1916 and 1915.
[In thousands of dollars.]

Bank.

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

Bills bought in open
Bills
market.
discounted
for
member Bankers' Trade
banks. accept- accept- Total.
ances. ances.
835.6
560.6
546.3
880.0
2,493.6
2,470.8
2,318.9
1,723.7
342.9
393.9
1,707.6
84.8

4,644.0
7,931.0
6,360.0
2,620.0
2,827.0
2,146.0
2,867.0
2,448.0
1,004.0
463.0
227.0
2,338.0

29.0
553.0
231.0
167.0

28.0
204.0

Municipal warrants bought.

City.

4,673.0 1,584.8
8,484.0 1,209.2
434.2
6,591.0
264.1
2,787.0
10.0
2,827.0
7.7
2,146.0
606.6
2,867.0
108.6
2,448.0
347.5
1,032.0
6.1
463.0
227.0
.288.4
2,542.0

All
State. other.
Total.

ii4.*9

investment
United States bonds and Treasury notes. Total
operations.
2 per
cent.

3 per
cent.

1 584 8
1,209.2 1,138.0
434.2
750.0
57.2
321.3
81.8
10.0
122.6
606.6
108 6
10.3
357.8
1.5
6 1
215.0
41.3
329.7

4 per 1-year
cent. notes. Total.

1,138.0
757.0
81.8

7.0

1.5
215.0

Sept., 1916.. 14,358.7 35,875.0 1,212.0 37,087.0 4,867.2 114.9 108.8 5,090.9 2,186.3
7.0
Sept., 1915.. 14,405.0 4,548.0
53.0
4,115.3
4,548.0
435.0
—
9 months ending Sept. 30,
1 9 1 6 . . . . . . . . . 114,437.2 219,612.5 10,091.2 229,703.7 64,177.1 3,654.9 591.3 68,423.3 37,479.25 3,642.82 4,153.0
9 months ending Sept. 30,
1 9 1 5 . . . . . . . . . 112,620.5 37,796.0
52,277.4 6,676.75 2,320.3
37,796.0

2,193.3
488.0

1918

1915

7,093.4
11,391.8
7,571.5
4,745.3
5,412.4
4,739.4
5,792.5
4,280.3
1,734.2
863.0
2,149.6
3,956.5

1,621.3
2,478.3
2,056.5
2,304.9
3,637.4
3,198.0
1,563.2
869.9
589.1
1,919.4
2,686.5
631.8

58,729.9
"23,"556."3"

,50.0 45,325.07 457,889.27
211,870.95

9,177.05

Amounts of United States bonds and 1-year Treasury notes sold by all Federal Reserve Banks during tht
month of September, 1916,
[In thousands of dollars.]
Boston.
2 per cent bonds
3 per cent bonds
4 per cent bonds
1-year Treasury notes
Total sales

70.6

... .

San
St. Minne- Kansas
Total.
Louis. apolis. City. Dallas. Francisco.

New
York.

Philadelphia.

Cleveland.

Richmond.

630.0

228.0

95.1

192.0

280.0

35.0

104.7

96.0

228.0

95.1

192.0

280.0

35.0

104.7

96.0

Atlanta.

Chicago.

70.0 2,662.0

1,730.8
2,032.0

2 032 0

3,762.8

CONVERSION OF 2 PER CENT UNITED STATES BONDS DURING 1916.

Under authority of section 18 of the Federal
Reserve Act there was converted during the
present year a total of $30,000,000 of 2 per
cent United States bonds into 3 per cent
30-year bonds and 1-year Treasury notes.
The first conversion operation was effected on
April 1, 1916, when $10,290,600 of 2 per cent
consols and Panamas were converted into
$5,900,600 of 30-year conversion bonds and
$4,390,000 of 1-year Treasury notes, the new
bonds and notes bearing 3 per cent interest.
On July 1 a total of $9,574,200 of 2 per cent
bonds was converted into $4;789;200 3 per cent




30-year conversion bonds and $4,785,000 1-year
Treasury notes, while on October 1 the remaining $10,135,200 of 2 per cent bonds were
converted into $5,071,200 of 3 per cent longterm bonds and $5,064,000 of 1-year Treasury
notes.
The result of the year's operations is the
conversion of 30,000,000 of 2 per cent bonds
into $15,761,000 of-3 per cent 30-year conversion bonds and $14,239,000 of 3 per cent 1-year
Treasury notes.
The following exhibit gives the original
amounts allotted by the Federal Reserve

648

FEDERAL EESERVE BULLETIN.

NOVEMBER 1,1916.

Board (on the basis of capital) and the actual conversion privileges and deposited for conamounts converted for each Federal Reserve version their full quota of bonds. The differBank:
ence between the full quota of the above three
banks and the amounts applied for by them,
Amounts
$1,918,900, was distributed among seven banks
allotted by Amounts
Federal
actually
Federal Reserve Bank.
which
had expressed a desire to convert bonds
Reserve converted.
Board.
in excess of their original allotment.
On September 30, 1916, the amount of 3 pel
Boston
$2,763,900 $2,000,000
New York....
6,130,500
6,476,200 cent conversion bonds held by the Federal RePhiladelphia..
2,849,100
2,849,000
Cleveland
3,249,600
3,318,000 serve Banks was $5,724,700, while the amount
Richmond
1,827,600
2,142,800
Atlanta
1,410,600
1,653,900 of
1-year Treasury notes held by them was
3,635,400
4,035,400
Chicago
1,523,400
1,786,100 $6,703,000.
St. Louis
The net amount of conversion
1,398,600
1,398,600
Minneapolis...
1,644,000
1,927,600 bonds sold by the Federal Reserve Banks to
Kansas City..
1,412,400
1,412,400
Dallas
2,154,900
1,000,000 the end of September was $4,965,100, while
San Francisco
Total...
30,000,000 30,000,000 the net amount of 1-year Treasury notes sold
by them to that date was $2,472,000.
Particulars of the conversion operations are
It is seen that with the exception of Boston,
Philadelphia, and San Francisco all the Federal presented in the following table prepared by
Reserve Banks availed themselves of their the office of the Secretary of the Treasury:
Public debt refunding operations conducted by the Secretary of the Treasury under authority of section 18 of the Federal Reserve
Act during the calendar year 1916.
[Prepared by the Office of the Secretary of the Treasury, Division of Loans and Currency.]
2 PER CENT BONDS OF THE UNITED STATES SUBMITTED BY FEDERAL RESERVE BANKS AND CANCELED.
July 1,1916.

Apr. 1,1916.
Federal Reserve Bank.

Atlanta
Boston
Chicago . . .
Cleveland
Dallas
Kansas Citv
Minneapolis
New York
Philadelphia
Richmond
St. Louis
San Francesco

.

.

Total

2 per cent
consols,
1930.

2 per cent
Panamas,
1916-36.

2 per cent
Panamas,
1918-38.

$705,300
500 000
750,000
400,000

$150,000

$100,000

$705,300
500,000
1,000,000
400,000

Total.

820 600
699 300'
3,015,300
1,424,600
913 800
761,700

25,000

25,000

820,600
699,300
3,065,300
1,424,600
913,800
761,700

9,990,600

175,000

125,000

10,290,600

2 per cent
consols,
1930.

2 per cent
Panamas,
1916-36.

2 per cent
Panamas
1918-38.

$242,100

$107,500

$3,000

$352,600

5,000

1,700,000
2,000,000
1,059,300
412,400

1,700,000
1,475,000
1,059,300
412,400

Atlanta
Boston..
Chicago
Cleveland..'.
Dallas
Kansas City

.

New York
Philadelphia

Richmond
St l o u i s
.
San Francisco
Total




.

.

2 per cent
consols,
1930.
. . .

$596,000
1,500,000
250,000
818,000
224,100
88,100
699 300
1,422,900
342,200
609,600
643,600
7,193,800

2 per cent
Panamas,
1916-36.

2 per cent
Panamas,
1918-38.

$730,000

$355,400
100,000
19,000
250,000

110,000
356,500
385,000
231,000
162,500

103,000
139,000

1,975,000

966,400

1,500,000
712,200
456,900
380,800
1,000,000

1,500,000
712,200
456,900
380,800
1,000,000
8,938,700

627,500

8,000

9,574,200

Total for year 1916.

Oct. 1,1916.
Federal Reserve Bank.

520,000

Total.

Total.

2 per cent
consols,
1930.

2 per cent
Panamas,
1916-36.

$596,000
1,500,000
1,335,400
918,000
353,100
694,600
699,300
1,910,900
712,200
772,100
643,600

$1,543,400
2,000,000
2,700,000
2,693,000
1,283,400
1,321,100
1 398,600
5,938,200
2,479,000
1,980,300
1,786,100
1,000,000

$107,500

$3, 000

880,000
520,000
110,000
356,500

455,400
105,000
19,000
250,000

410,000
231,000
162,500

128,000
139,000

10,135,200

26,123,100

2,777,500

1,099,400

2 per cent
Panamas,
1918-38.

Total.

$1,653,900
2,000,000
4,035,400
3,318,000
1,412,400
1,927,600
1,398,600
6,476,200
2,849,000
2,142,800
1,786,100
1,000,000
30,000,000

649

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Public debt refunding operations conducted by the Secretary of the Treasury under authority of section 18 of the Federal Reserve
Act during the calendar year 1916—Continued.
THIRTY-YEAR 3 PER CENT CONVERSION BONDS AND ONE-YEAR 3 PER CENT TREASURY NOTES ISSUED TO
FEDERAL RESERVE BANKS.
Apr. 1, 1916.
One-year
Conversion Treasury
bonds, notes, series
series
Apr. 1,
1916-46.
1916-17.

Federal Reserve Bank.

Atlanta
Boston
.*....
Chicago
Cleveland
.
.
Dallas
Kansas City
. . . .

Minneapolis
New York ..
Philadelphia
Richmond
St Louis
San Francisco
Total.

.
. . . .

.
.

355,300
250,000
1,000,000
200,000

416,666
349,300
1,533,300
962,600
457,800
381,700

".

5,900,600

350,000
250,000

July 1, 1916.

• Total.

One-year
Conversion Treasury
bonds, notes, series
series
1916-46.
» .

200,000

705,300
500,000
1,000,000
400,000

410,000
350,000
1,532,000
462,000
456,000
380,000

820,600
699,300
3,065,300
1,424,600
913,800
761,700

4,390,000
*

10,290,600

176,600

176,000

352,600

850,000
1,000,000
530,300
206,400

850,000
1,000,000
529,000
206,000

1,700,000
2,000,000
1,059,300
412,400

750,000
356,200
228,900
190,800
500,000

750,000
356,000
228,000
190,000
500,000

1,500,000
712,200
456,900
380,800
1,000,000

4,789,200

4,785,000

9,574,200

Total for 1916.

Oct. 1, 1916.
One-year
Conversion Treasury
bonds, notes, series
series
Oct. 1,
1916-46.
1916-17.

Federal Reserve Bank.

Atlanta
Boston

Chicago

.

i

Cleveland

• ...

Dallas
Kansas City
Minneapolis
New York
Philadelphia
Richmond
St. Louis
San Francisco
Total




. . .

.. . . .

.
. . .

•.

. . . . . . .
.

.

.

Total.

Total.

Conversion
bonds.

One-year
Treasury
notes,

Total.

298,000
750,000
. 668,400
460,000
177,100
347,600
349,300
955,900
356,200
386,100
322,600

298,000
750,000
667,000
458,000
176,000
347,000
350,000
955,000
356,000
386,000
321,000

596,000
1,500,000
1,335,400
918,000
353,100
694,600
699,300
1,910,900
712,200
772,100
643,600

829,900
1,000,000
2,518,400
1,660,000
707,400
964,600
698,600
3,239,200
1,675,000
1,072,800
895,100
500,000

824,000
1,000,000
1,517,000
1,658,000
705,000
963,000
700,000
3,237,000
1,174,000
1,070,000
891,000
500,000

1,653,900
2,000,000
4,035,400
3,318,000
1,412,400
1,927,600
1,398,600
6,476,200
2,849,000
2,142,800
1,786,100
1,000,000

5,071,200

5,064,000

10,135,200

15,761,000

14,239,000

30,000,000

650

FEDERAL RESERVE BULLETIN.

NOVEMBER 1.1918.

FEDERAL RESERVE BANK STATEMENTS.
Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve system at dose of business on Fridays,
Sept. 29 to Oct. 20, 1916.
RESOURCES.
[In thousands of dollars.]
Boston.
Gold coin and certificates in vaults:
8,219
Sept. 29.
8,454
Oct. 6
-..
7,660
Oct. 13
8,300
Oct. 20
Gold settlement fund:
15,618
Sept. 2 9 . . .
9,305
Oct. 6
10,389
Oct. 1 3 . . . . 13,830
Oct.20...:
Gold redemption fund:
Oct. 6
Oct. 13
Oct. 20
Legal tender notes, silver, etc. :
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Total reserve:
Oct. 6
Oct. 13
.-Oct. 20
Five per cent redemption fund
against Federal Reserve Bank
notes:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Bills discounted—members:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
Bills bought in open market:
Sept. 29
......
Oct. 6
Oct. 13
..
Oct. 20
United States bonds:
Sept. 2 9 . . . .
Oct. 6
Oct. 13.
Oct. 20..
One-year Treasury notes:
Sept. 29
Oct.6
Oct. 13
Oct. 20
Municipal warrants:
Sept, 29
;......
Oct. 6
Oct. 13
Oct. 20
Federal Reserve notes, net:
Sept. 29
Oct.6
Oct. 13
Oct. 20
Due from other Federal Reserve
Banks, net:
Sept. 29
Oct. 6
Oct. 13
Oct. 20
All other resources:

Oct. 6
Oct. 13....
Oct. 20...,
Total resource;
Oct. 6..
Oct. 13.
Oct. 20..




New
York.

Phila- Cleve- RichAtdelphia. land. mond. lanta.

Chicago.

157,324
168,972
165,793
154,461

11,721
8,425
13,900
13,403

11,719
3,767
4,561
9,684

St.
MinneLouis. apolis.

Kansas
City.

Dallas.

4,140
4,176
4,099
4,098

San
Total
Franfor
cisco. system.

14.S87
14,836
14,951
15,170

5,098
3,997
4,042
4,339

3,878
3,886
4,076
4,027

29,838
29,019
26,956
29,793

6,037
4,263
4,685
4,973

5,903
6,017
6,408
6,213

3,311
2,981
3,419
3,560

10,789
10,600
11,411
13,178

260,845
265,626
267,400
261,515

16,588 13,081
19,121 14,063
16,238 13,461
13,827 11,033

13,718
16,419
16,913
16,981

3,040
2,781
2,822
2,595

19,623
24,336
28,289
23,164

3,401
5,430
5,039
3,739

5,289 10,736 5,995
3,465 10,287 7,093
4,720 9,610
9,141
4,552
10,669

5,613
3,374
4,078
2,949

124,421
119,441
125,261
121,351

439
440
233
229

241
237
230
224

200
200
200
200

73
71
71

78

575
529
561

805
1,076
625
1,520

1,132
1,125
1,160
1,079

5
5
5
5

250
250
250
250

50
50
50
50

81
78
72

140
102
80
507

3,293
8,925
7,148
5,155

291
597
274
369

1,018
1,123
1,117
1,079

23,982
17,866
18,134
22,642

172,586
181,914
177,752
169,550

28,650
28,193
30,462
27,649

805
758
556
712

782
1,097
998
788

124
108
77
276

10,246
10,036
10,201
11,213

24,529
23,148
22,535
24,308

2,922
2,922
2,172
2,172

28,772
30.103
29; 607
27,354

19,333
20,924
21,254
21,645

7,734
7,433
7,689
7,242

30

121
121
119
118

417
413
411
159

10
10
10
10

1,929
1,910
1,687
1,418

195
191
220

22
6
5
6

223
190
81

31
55
69
56

7,811
13,991
11,377
10,561

50,466 10,650 11,425
54,631 10,891 9,707
56,070 10,955 11,349
54,677 9,862 11,015

15,019
14,590
13,833
12,550

9,946
10,677
13,052
14,466

16,443
14,039
15,568
16,193

395,006
400,968
405, 725
394,845

400
400
370
370

100
100

500
500
370
420

50

365
338
360

5,268
4,489
4,316
3,959

3,906
3,800
3,365
3,181

2,447
2,505
2,601
2,802

2,092
2,229
2,258

1,882
1,642
1,671
2,085

1,615
1,459
1,360
964

6,039
4,908
4,165
3,671

353
296
254
235

25,953
23,656
21,959
21,365

11,385
11,330
11,106
12,465

6,563
6,242
6,233
6,282

2,346
1,669
1,779
1,880

3,127
3,758
3,736
3,672

5,647
5,215
5,442
5,757

5,543
5,125
5,174
5,262

3,051
2,827
2,939
2,767

1,416
1,479
1,680
1,906

144
144
221
250

6,628
6,435
6,481

80,625
77,438
77, 527
82,692

2,728
2,728
1,773
1,719

2,662
2,306
2,306
2,306

6,254
6,243
6,245
5,787

1,019
633
633
633

1,508
1,508
1,508
1,210

8,303
7,596
7,596
7,596

2,694
2,689
2,689
2,368

3,307
2,945
2,920
2,920

9,617
9,270
9,270
9,270

2,896
2,896
2,896
2,720

2,634
2,634
2,634
2,634

46,544
44,370
42,642
41,335

250
250
1,000
1,000

250

818
1,174
1,174
1,174

760
760
760
1,218

1,070
1,070
1,070

526
526
526
824

850
1,517
1,517
1,517

570
570
570
891

350
700
700
700

616
963

529
529
529
705

724
704

955
955

6,927
8,763
10,444
11,697

4,532
4,417
4,417
4,482

4,873
7,688
8,071
8,251

2,386
3,454
3,505
3,545

2,652
3,664
4,053
4,858

291
291

4,138
4,440
4,303
4,003

1,510
1,585
1.585
1,585

1.277
1,252
1,754
1,754

1,926
1,876
2,891
3,042

24,028
29,085
31,542
32,543

8,313
7,968
8,745

465
638
693
463

406
367
330
379

1,556
1,488
1.382
1^509

14,250
14,894
15,280
15,181

1,646
1,590
1,520
2,670

4,269
2,254

6,381
8,148
3,857

8,038
12,522

74
69
105
7

5,249
227
163
180

46,241
44,375
46,323
47,605

219,310
224,770
229,030
227,154

"i,*794"
205
223
67
159

256
416
298
341

1,410
1,280
1,289
1,289

359
611
671

1,341
1,507
1,251
1,140

1,374
1,186
1,347
42

57
1,414
2,020
2,586

12,524
7,246
6,212
7,026

7,430
7,462
6,479
6,252

841
3,503
1,382
1,056

1,149
1,665
1,671
3,722

2,322
744
465

167
20

172
287
163
261

377
656
532
245

215
129
132

787
81
69
81

186
135
154
151

516
464
435
277

154
191
537
497

7,543
3,045
2,675
2,630

17,319
19,015
19,298
19,267

86,162
85,086
85,562
84,912

30,704
30,680
29,842
28,940

23,551
24,164
24,035
23,518

30,377
30,320
29,912
30,567

22,492
20,462
21,763
22,139

31,491
32,147
31,735
32,107

632,741
628,951
638,253
633,312

46,695 50,571 30,172
47,426 50,414 | 30.199
49,390 47,864 30,480
48,037 48,373 29,333

i Items in transit, i. e., total amounts due from, less total amounts due to, other Federal Reserve Banks.

1,073 131,365
4,484 i 26,232
1,308 | 130,089
387 130,604

651

FEDERAL RESERVE BULLETIN.

NOVEMBER 1, 1916.

Resources and liabilities of the Federal Reserve Banks and of the Federal Reserve system at close of business on
Sept. 29 to Oct. 20, 1916—Continued.

Fridays,

LIABILITIES.
[In thousands of dollars.]

Capital paid in:
Sept. 29. . . . . . .
Oct 6
Oct. 13
Oct 20
Government deposits:
Sept 29
Oct. 6
Oct 13
Oct. 20
Member bank deposits, net:
Sept. 29.
Oct 6.
Oct. 13
Oct. 20
Federal Reserve notes, net liability:
Sept 29
Oct. 6
Oct. 13
Oct. 20 . . . . . . . . .
Federal Reserve bank notes in circulation:
Sept. 29
Oct. 6
O c t . 13
O c t . 20

.

.

Chicago.

Minne- KanSt.
sas
Louis. apolis. ' City.

2,491
2,493.
2,493
2,479

6,687
6,676
6,677
6,679

2,794
.2,794
2,794
2,794

2,597
2,597
2,597
2,603

3,043
3,043
3,043
3,044

2,691
2,689
2,689
2,689

3,920
3,920
3,920
3,920

55,393
55,684
55,682
55,682

4,018
4,417
2,872
3,419

3,858
3,924
3,176
3,213

3,124
3,262
2,825
2,386

3,781
3,999
2,170
2,428

1,084
1,124
1,049
964

1,040
881
538
499

2,186
1,956
1,789
1,715

2,815
2,904
2,092
2,343

38,985
33,971
26,515
26,116

17,950
18,441
19,977
18,626

9,883
11,408
11,472
11,158

76,351
75,148
76,060
75,847

21,789
21,648
22,529
21,629

19,870
20,443
20,389
19,951

24,101
24,177
24,539
24,986

11,727
12,504
14,372
13,448

24,756
25,316
25,708
25,829

521,740
526,019
542 243
538,102

4,763
3,891
4,171
3,826

1,065
1,153
2,124
2,386

1,160
1,186
759
1,006

3,888
3,313
2,913
2,589

13,216
11,782
12,316
11,896

1,033
1,033
1,033
1,032

2,000

3,033
1,033
1,033
1,032

New
York.

5,024
5,024
5,024
5,024

11,602
11,902
11,902
11,907

5,222
5,224
5,224
5,224

5,997
5,997
5,994
5,994

3,325
3,325
3,325
3,325

3,236
2,580
2,147
1,725

5,673
2,945
3,203
2,609

6,029
3,678
3,410
3,575

2,141
2,301
1,244
1,240

37,833
m, 603
38,993
40,690

201,430
205,944
213,925
212,633

33,617
32,271
34,193
32,166

42,433
42,116
40,086
41,139

Cleve- Richland. mond.

Atlanta.

2,340
2 239
2,349
2,089

.

Due to other Federal Reserve
Banks, net:
Sept. 29
Oct. 6. .
Oct. 13
Oct. 20
All other liabilities:
Sept. 29.
Oct. 6
Oct. 13
Oct. 20
Total liabilities:
Sept. 29
Oct. 6 . . .
Oct. 13
Oct. 20 . .




Philadelphia.

Boston.

605

3.972

1,739
6,135
6,441
6,942

148
168
159
166

7
5

88
118
122
130

46,241
44,375
46,323
47,605

219,310
224,770
229,030
227,154

46,695
47,426
49,390
48,037

San
Total
Franfor
cisco. system.

!

540

50,571
50,414
47,864
48,373

Dallas.

1,698
116
125
135
137

22
37
33
31

30,172
30,199
30,480
29,333

17,319
19,015
19,298
19,267

86,162
85,086
85,562
84,912

30,704
30,680
29,842
28,940

23,551
24,164
24,035
23,518

30,377
30,320
29,912
30,567

22,492
20,462
21,763
22,139

7
15
15

374
462
464
484

31,491
32,147
31,735
32,107

632,741
628,951
638,253
633,312

652

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916,

Circulation of Federal Reserve notes at close of business on Fridays, Sept. 29 to Oct. 20, 1916.
[In thousands of dollars.]
New
Boston. York.
Federal Reserve notes issued to the
bank:
Sept. 29
Oct.6
Oct. 13
Oct. 20
Federal Reserve notes in hands of
bank:
Sept. 29
Oct.6
Oct. 1 3 . . . . .
Oct. 20
Federal Reserve notes in circulation:
Sept, 29
Oct.6...
Oct.13
Oct. 20
Gold and lawful money deposited
with or to the credit of the Federal Reserve Agent:
Sept. 29
Oct.6
Oct.13.
Oct. 20.
..:
Carried to net assets:
Sept. 29
Oct.6
.
......:..
Oct. 13
Oct. 20
Carried to net liabilities:
Sept. 29
Oct.6
Oct. 13
Oct. 20

Philadelphia.

Cleve- Rich- Atlanland. mond.
ta.

Chicago.

St.
Minne- Kansas
Louis. apolis. City. Dallas.

10,337
11,297
11,249
11,208

78,414
75,601
77,603
79,692

7,606
7,967
8,006
7,827

9,121
9,082
8,947
8,849

12,536
13,979
14,814
15,264

19,040"
20,266
20,705
21,627

3,325
3,320
3,314
3,179

8,909
11,452
12,436
13,924

13,781
14,762
14,743
15,079

759
1,646
1,590
1,520

8,313
7,968
8,745
8,881

465

406
367
330
379

307

693
463

1,687
1,868
897
1,135

1,410
1,280
1,289
1,289

447
1,108
998
1,258

1,341
1,507
1,251
1,140

9,578
9,651
9,659

70,101
67,633
68,858
70,811

7,141
7,329
7,313
7,364

8,715
8,715
8,617
8,470

12,229
13,350
14,165
14,770

17,353
18,398
19,808
20,492

1,915
2,040
2,025
1,890

10,337
11,297
11,249
11,208

78,414
75,601
77,603
79,692

7,606
7,967
8,006
7,827

9,121
9,082
8,947

7,466
9,459
9,994
10,944

16,288
17,245
17,684
18,106

3,325
3,320
3,314
3,179

759
1,646
1,590
1,520

8,313
7,968
8,745
8,881

'465
638
693
463

406
367
330
379

494

17,062
17,571
18,331
18,296

23,730
25,104
25,658
25,800

540
454
781
534

10,344
11,438
12,666

6,122
8,105
9,089
10,577

13,781
14,762
14,743
15,079

1,410

4,763
3,891
4,171
3,826

1,065
1,153
2,124
2,386

Total
Franfor
cisco. system.

10,106
10,089
10,076
10,058

213,967
220,490
225,882
230,803

198
173
153
157

1,556
1,488
1,382
1,509

17,429
19,126
18,758
18,759

12,440 16,522
13,255 17,117
13,492 17,550
13,939 17,762

23,532
24,931
25,505
25,643

8,550
8,601
8,694
8,549

196,538
201,364
207,124
212,044

15,362
15,931
16,791
16,756

19,644
21,618
22,592
23,054

10,106
10,089
10,076
10,058

197,572
204,476
210,088
215,329

1,341
1,507
1,251
1,140
2,340
2,239
2,349
2,089

1,556
1,488
1,382
1,509
1,160
1,186
. 759
1,006

3,888
3,313
2,913
2,589

14,250
14,894 '
15,280
15,181
13,216
11,7.82
12,316
11,896

Statement of Federal Reserve Agents' accounts at close of business on Fridays, Sept. 29 to Oct. 20, 1916.
[In thousands of dollars.]
Boston.
Federal Reserve notes:
Received from ComptrollerSept. 29
,
Oct.6
Oct. 13
Oct. 20
Returned to Comptroller—
Sept. 29
,
Oct.6
Oct.13
Oct. 20....
Chargeable to Federal Reserve
AgentSept. 29
Oct.6
Oct.13
Oct. 20
In hands of Federal Reserve
AgentSept. 29
Oct.6
Oct.13
Oct. 20
Issued to Federal Reserve
Bank, net —
Sept. 29
Oct.6
Oct. 1 3 . . . . .
Oct. 20
,




20,380
24 880
24,880
24,880

New
York.

Philadelphia.

Cleve- Rich- Atlan- Chicaland. mond.
ta.
go.

St.
Minne- Kansas
Louis. apolis. City. Dallas.

143,400 15,480
143,400 15, i80
143,400 15,480
148,400 15.480

15,160
15,160
15,160
15,160

20,000
21,500
22,500
23,500

26,660
26,920
27,920
28,420

9,380
9,380

12,600
14,600
16,560
16,560

21,000
21,000
21,000
21,000

4,834
4,873
5,074
5,253

2,739
2,778
2,913
3,011

5,314
5,371
5,536
5,586

3,126
3,169
3,230
3,308

1,174
1,179
1,185
1,320

1,929
1,946
1,962
1,976

589
608
627
651

14,857 102,974 10,646 12,421 14,686 23,534
19,317 97,761 10,607 12,382 16.129 23,751
19,269 97,363 10,406 12,247 16,964 24,690
19,228 102,052 10,227 12,149 17,914 25,112

8,206
8,201
8,195
8,060

10,'671
12,654
14,598
14,584

20,411
20,392
20,373
20,349

4,494
3,485
3,985
3,485

4,881
4,881
4,881
4,881

1,762
1,202
2,162

6,630
5,630
5,630
5,270

12,536 19,040
13,979 20,266
14,814 20,705
15,264 21,627

3,325
3,320
3,314
3,179

5,523
5,563
5,611
5,652

40,426
45,639
46,037
46,348

4,520
8,020
8,020

24,560
22,160
19,760
22,360

3,040
2,640
2,400
2,400

3,300
3,300
3,300
3,300

10,337
11,297
11,249
11,208

78,414
75,601
77,603
79,692

7,606
7,967
. 8,006
7,827

9,121
9,082
8,947
8,849

2,150
2,150
2,150
2,650

San
Total
Franfor
cisco. system.

22,620
22,620
22,620
22,620

33,600
35,320
35,320
35,320

13,800
13,880
13,880
13,880

354,160
364,140
368,100
374,600

1,605
1,636
1,676
1,711

3,621
3,760

1,214
1,231
1,244
1,262

72,042
77,588
78,716
79,838

21,015 30,031 12,666 282,118
20,984 31,725 12,649 286,552
20,944 31,699 12,636 289,384
20,909 31,560 12,618 294,762
3,953
3,413
2,613
2,613

13,781 17,062
11,452 14,762 17,571
12,436 14,743 18,331
13,924 15,079 18,296

6,301
6,621
6,041
5,760

2,560
2,560
2,560
2,560

68,151
66,062
63,502
63,959

23,730 10,106 213,967
25,104 10,089 220,490
25,658 10,076 225,882
25,800 10,058 230,803

653

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

/Statement of Federal Reserve Agents' accounts at close of business on Fridays, Sept. 29 to Oct. 20, 1916—Continued.
[In thousands of dollars.]
San
Total
Phila- Cleve- Rich- Atlan- ChicaSt.
Minne- Kansas
for
delta.
Louis. apolis. City. Dallas. Frango.
cisco. system.
phia. land. mond.

Boston.

New
York.

9,700
10,700
10,500
10,500

75,715
71,215
73,615
76,015

3,820
3,820
3,820
3,820

8,540
8,540
8,460
8,300

637
597
749
708

2,699
4,386
3,988
3,677

527
486
447

581
542
487
549

Amounts held by Federal Reserve
Agent:
In reduction of liability on outstanding notesGold coin and certificates
on h a n d Sept. 29
Oct. 6
Oct. 13..
Oct. 20
Credit balances in gold redemption f u n d Sept. 29
Oct. 6
Oct. 13..
Oct. 20
Credit balances with Federal Reserve B o a r d Sept. 29
Oct. 6
Oct. 13
Oct. 20
As security for outstanding
notes—
Commercial paper—
Sept. 29.
Oct. 6
Oct. 13
Oct. 20
TotalSept. 29
Oct. 6
Oct. 13
Oct. 20
Memorandum:
Total amount of commercial
paper delivered to Federal
Reserve Agent-—
Sept. 29
Oct. 6
Oct. 13
Oct. 20




3,420
3,620
3,700
3,560

10,337
11,297
11,249
11,208

78,414
75,601
77,603
79,692

7,606
7,967
8,006
7,827

9,121
9,082
8,947
8,849

4,560
4,560
4,560
4,560

3,063
5,063
5,063
5,065

11,620
11,620
11,620
11,980

4,270
4,270
4,270
4,270

10,340
10,340
10,340
10,340

1,061
1,021

1,224
1,398
1,372
1,334

349
486

9,764
11,918
11,880
11,289

10,400
10,600 9,
11,500 10,880
11,500 11,380

9,740
9,740
9,590
9,590

56,180
62,430
65,960
69,190

416
359
494
444

1,178
1,135
1,074
996

245
240
234
229

549
532
716
702

811
792
773
749

7,050
9,100
9,500
10,500

10,550
11,550
12,050
12,550

3,080
3,080
2,950

2,510
2,510
3,310
4,810

1,350
2,350
2,350
2,350

5,070
4,520
4,820
4,320

2,752
3,021
3,021
3,521

12,536 19,040
13,979 20,266
14.814 20,705
15,264 21,627

5,157
4,567
4,979
4,703

2,762
3,032
3,023
3,522

4,086
3,486
3,066
2,746

16,395
16,014
15.794
15,474

13,781 17,062 23,730
11,452 14,762 17,571 25,104
12,436 14,743 18,331 25,658
13,924 15,079 18,296 25,800

10,106 213,967
10,089 220', 490
10,076 225,882
10,058 230,803

4,448
3,629
3,305
3,004

17,054
16,220
16,296
16,338

2,787
3,347
3,347
3,347
3,325
3,320
3,314
3,179

131,628
130,128
132,248
134,850

2,788
3,348
3,348
3,348

1,700
1,640
1,540
1,540

1,889
1,644
1,641
1,761

654

FEDERAL RESERVE BULLETIN.

GOLD IMPORTS AND

NOVEMBER 1,1916.

EXPORTS.

Imports of gold, by customs districts, Jan. 1 to Oct. 20, 1916.

Total.

St. Lawrence.

Ohio.

Michigan.

Dakota.

Buffalo.

Washington.

Southern California.

San Francisco.

Alaska.

Laredo.

El Paso.

Arizona.

New Orleans.

Florida.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending Sept. 29.
Ore and base bullion
United States mint or assay
office bars
Bullion, refined
United States coin
....
Foreign coin
Total

3

107

1

4

4

409

8

28

113

191
9

110

164
87

251

92

356
164

801
9

12

12

528

7

1

204

113

138

10

1

2

38

22

8

92

1,342

6

48

156

Week ending Oct. 6.
Ore and base bullion
United States mint or assay
office bars
.
"
Bullion refined
United States coin
Foreign coin
Total

20

9

1

255

142
4

86

7
113

120

1

2,433

2,433
275

9

11

1

7
598
4

148

2,471

108

19

91

36

6

48

6

20

1

3,198

Week ending Oct. IS.
Ore and base bullion
United States mint or assay
office bars
Bullion, refined
United States coin.
Total

6

78
183
1

4

262

.10

51

•10

1

135

104

119

214
5

154

195

155

219

3

102

37

256
214
551
1

6

20

1,022

3

78

298

Week ending Oct. 20.
Ore and base bullion
United States mint or assay
office bars.
Bullion, refined
United States coin
.
Total

s

6
1

306
1
3^8

407

10

7

8

410

102

441

81

182

103

2,294

29

1

111

29
87

1

148

116

3

78

3 2,432

624

269

1,739

25,755

26,668

25,755

26,966

1

Jan. 1 to Oct. 20.
Ore and base bullion
1 2,002
291
United States mint or assay
office bars
Bullion, refined
20,000 31,603
5
United States coin
1,216 " "*45 *
Foreign coin
.*
9
1 28,644
Total

20,002 63,465

45

305

152

45

593

126

2,436
16

12,166
182 2,555 17,870

Excess of gold imports over exports for 42 weeks, Jan. 1 to Oct. 20. 1916..
Excess of gold imports over exports for corresponding period, 1915




3,410

32

4,503 47,932

10,465

3

3,480
193,624 294,730
3,116
1,778
61,982 105,214

3,480
29 2,015 41,416
56
2,4i2
269

1,739

3

257,384

417,005
, 319,728
, 306,674

655

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

Exports of gold, by customs districts, Jan. 1 to Oct. 20, 1916.

Total.

Vermont.

St. Lawrence.

Montana and
Idaho.

Michigan.

Duluth and Superior.

Dakota.

Buffalo.

Washington.

Southern California.

San Francisco.

Hawaii.

Alaska.

New Orleans.

Porto Rico.

New York.

Maine and New
Hampshire.

[In thousands of dollars.]

Week ending Sept. 29.
1

Ore and base bullion
United States mint or assay
office bars
Bullion, refined:
Domestic*

1
17

293

United States poin
Foreign coin

342

8 1,750

3
3

9

2

Total

635

8 1,750

23

9

3

1
1

1

2

1
5

1

312
5
2,114
3

7

1

2,437

Week ending Oct. 6.
Ore and base bullion
Bullion, refined:
Domestic
Foreign

17
2

Total

17

2

17
31
3

33
3

34

53

Week ending Oct. 13.
8
110

Bullion refined domestic
United States coin
Foreign coin
Total

118

268
59

1

327

1

7

1

20
387
59

7

1

466

3

1
4

3

5

12

12

Week ending Oct. 20.
Bullion, refined:
Domestic
Foreign
United States coin
Foreign coin

5
101

10
5
1,297
4

106

1,316

519

11,994

10

Total

171

21

1,000

171

21

1,000

13

Jan. 1 to Oct 20.
Ore and base bullion
United States mint or assayoffice bars
Bullion, refined:
Domestic
Foreign
United States coin
Foreign coin
Total




.

152

12

2

10,306

954
5,110
1,438
31,372
18 143

701

4

15

100

1

172 22,782

50 1,052

390
3
21
29

2 57,017

15

100

13

172 33,982

50 1,208

726

193

1

70
2

213
4

8

12

237

30
16

13

71

14
6 "*3*

1 1,120

750

75

30

15

2 3,107

763

1,422

6,272
1,457
57,521
19,796
97,27V

656

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,19i6.

EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS.
Average amounts of earning assets held by each Federal Reserve Bank during September, 1916, earnings from each class of
earning assets, and annual rate of earnings on the basis of September, 1916, returns.
Average balances for the month, of the several classes of earning assets.
Bills discounted,
members.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
"
San Francisco..

$631,070
888,764
181,647
597,913
5,832,849
•3,866,810
2,965,892
1,313,431
1,872,200
1,729,217
7,039,542
400,984

Total*

27,320,319

Bills bought

$10,418,
26,370,
11,623,
7,284,
1,533,
2,243,
5,503,
5,496,
3,207,
1,369,
545,
7,208,

969,467
604,083
819,333
038,550
075,247
508,000
472,167
851,333
369,400
617,350
853,750
933,750

82,807,235

47,112,4

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

1

4,975

87,584

20,549

55,603

429,845

27,311
1,706
99,180

166,929

$4,056,
4,491,
2,285,
2,780,
85,
225,
4,025,
1,508,
1,041,
378,
2,094,521

$18,325,386
199,167
728,745
461,209
210,965
369,847
817,089
739,897
841,100
711,196
968,282
137,549

8,297,400

22,973,048

188,510,432

Per cent. Per cent. Per cent. Per cent. Per cent. Per cent.
3.05
2.84
2.03
2.49
3.78
2.39
3.00
3.03
2.58
2.66
3.99
2.50
2.98
2.93
2.13
2.48
3.98
2.42
3.05
3.10
2.57
2.63
4.19
2.33
3.00
3.40
2.31
3.65
4.16
2.97
2.98
3.60
2.34
3.29
4.11
2.55
3.05
2.86
2.44
2.80
4.60
2.31
2.98
3.09
2.05
2.62
4.16
2.38
3.05
2.91
2.18
2.80
4.64
2.32
3.00
2.70
2.10
2.52
4.70
2.49
3.00
2.50
4.02
4.73
15.50
3.00
2.10
2.56
5.19
2.45
2.81

16,965
4,806
6,030
16,553
5,107
5,115

2?

$250.000
1,844)400
818.000
76O',OOO
684,000
526,000
850,000
570,000
350,000
616,000
529,000
500,000

Bills disBills
counted, bought
memin open
bers.
market.

$37,418
78,208
36,107
37,620
27,585
22,575
50,134
25,229
22,891
28,349
36,197
27,532

2 3

Total.

Total.

$9,458
11,138
5,490
7,052
237
666
9,439
3,823
2,484
841

$4,942
5,501
4,933
12,703

•6,657

One-year MuniciTreasury pal warnotes.
rants.

$625
4,611
2,000
8
1,900
1,682
1,286
2,125
1,394
875
1,507
1,294
1,250

$20,437
54,047
23,092
13', 914
3,733
4,695
10,424
10,730
6,095
2,791
2,485
14,486

$1,956
2,911
592
2,051
19,900
13,032
11,181
4,476
7,407

Total

United
States
bonds.

Municipal
warrants.

Calculated annual rates of earnings from—

Earnings from—
Bills disBills
counted, bought
memin open
bers.
market.

One-year
Treasurynotes.

United
States
bonds.

4.43

2.46

United
States
bonds.

2.27

One-year Munich
Treasury pal warrants.
notes.

2.95

3.02

Total.

2.78

Large line of acceptances retired before maturity at rebate rate of 1 per cent less than rate at which discounted.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank in effect Oct. 25, 1916.

Maturities of
10 days
and less.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Atlanta (New Orleans
branch)
,
Chicago
,
St. Louis
Minneapolis
,
Kansas City
Dallas
San Francisco
1
2
3

Maturi- Maturi
Maturi- ties of
ties of
ties of over 10 over 15
to 30
15 days
to 30
and less. days, in- days, inclusive. clusive.

Maturities of
over 30
to 60
days, inclusive.

Trade acceptances.
ComMaturi- Agricultural
modity
ties of and
liveover 60
stock
60
to 90
To 60 Over
To 30
paper days,
to 90
days, in- over
in- days, in- days,
90 clusive.
inclusive. days.
clusive. clusive.
90 days.

Member
banks,
collateral
loans.

31 |.

t
i

31 i
3 |
2

34

3f-4

91

3"

3 1 j-

4
4.

3-5
41

Rate for bills of exchange in open-market operations.
Rate for trade acceptances bought in open market without member bank indorsement.
Rate for commodity paper maturing within 30 days, 3£ per cent; over 30 to 60 days, 4 per cent; over 60 to 90 days, 4J per cent; over 90 days, 0
percent.
NOTE,—Rate for bankers' acceptances, 2 to 4 per cent.




INTERDISTRICT MOVEMENT OF FEDERAL RESERVE NOTES, JAN. 1 TO SEPT. 30,191S.
Boston.
Received
from.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco.
Total..

Philadelphia.

New York.

Returned
to.

Received
from.

Returned
to.

Received
from.

Returned
to.

171,280
422,190
146, 620
12,970
20,175
37,690
32,910
54,280
26,480

29,870
39,530
437,000
57,635
26,435
6,240
9,535
15,125

41,840
18,705
12,290
10, 710
23,030
18,220
18,560
8,400

3,264,975

1,623,510

$131,000
1,187,980

$95,380
2,245,000

2,261,000
216,710
247,290
272,390
1,225,500
162,420
113,155
20,000
52,395
102,665

1,178,000
711,100
2,731,450
2,171,410
110,350
296,800
518,200
529,100
940,850
870,100

31,120
54,115
21,760
94,000
12,305
7,140
1,550
3,535
4,710

1,131,530

2,793,500

6,829,525

10,953,960

1,549,215

Minneapolis.

Returned
to.
$9,385
223,210
31,120

$896,600

12,127,000
131,000
110,000
144,000
80,000
14,000
19,000
47,500
34,000
52,000
35,000

St. Louis.

Received
from.

Richmond.

$110,000
720,860
171,280

$2,156,000
95; 950
95,380
9,385
11,270
16,135
69,500
8,150
7,440
1,785
3,235
13,300

Chicago.

Cleveland.

Kansas City.

415,470

Received
from.

Returned
to.

Received
from.

Returned
to.

$80,000
2,196,830
146,620
18,705
130,060

116,135
272,390
21,760
39,530
306,620

130,060
2,600
5,900
6,050
6,630
14,580
3,100

476,000
317,840
18,940
12,000
214,460
19,430

7,685
47,100
17,715
38,505
611,340
11,295

511,465

3,630,885

1,390,075

$144,000
2,757,420
409,715
40,170

$11,270
247,290
54,115
29,870

306,620
263,000
41,940
15,200
5,610
14,025
16,030

4,013,730

Dallas.

Atlanta.

San Francisco.

Total.

Received Returned Received Returned Received Returned Received Returned Received Returned Received Returned Received
from.
from.
to.
to.
from.
from.
from.
from.
from.
to.
to.
to.
to.

Returned
to.

fed

B
GO

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




814,000
113,610
12,970
12,290
2,600
7,685

169,500
1,225,500
94,000
437,000
263,000
476,000

41,250
42.880
2; 895
3,970
6,410

414,500
1,667,500
1,143,500
741,500
299,500

18,290
34,500
66,555
8,770

$8,150
$47,500
162,420
518,200
12,305
37,690
57,635
23,030
47,290
6,050
317,840
17,715
41,250 1,667,500
100,170
100,170
918,005
23,825
854,315
15,265
24.925
45,380

280,560

6,831,500

945,990

2,544,305 2,502,325

$19,000
301,690
20,175
9,510
5,900
47,100
414,500

$7,440
113,155
7,140
26,435
15,200
18,940
42.880
18,290
85,530
•40,065
117,500

$33,000
539,550
31,910
18,220
6,630
38,505
,143,500
918,005
82,030

$1,685
19,000
1,550
6,240
5,610
12,000
2,895
34,500
23,825

138.135
38,735

76,000
17,500

492,575 2,988,220

$50,000
959,800
54,280
18,560
14,580
568,955
741,500
854,315
40,065
76,080
43,010

200,805 3,421,145

$33,000
877,940
26,480
8,400
3,100
11,295
287,500
23,725
117,500
17,500
7,575

$13,300
102,665
•5; 160
15,125
16,030
19,430
6,410
8,770
45,380
38,735
42,010

$2,817,500
11,069,830
3,287.500
406,100
511,465
1,347,690
6,819,500
2,537,755
489,075
201,985
523,685
313,565

$1,131,885
6,788,025
1,539,515
1,613,360
4,005,945
3,579,965
257,300
940,310
2,502,325
2,978,270
3,445,500
1,423,520

494,255 1,414,015

313,015

30,310,650

30,205,900

$3,020
50,395
3,365
9,145
12,715
188,960
3,970
64,565
15,265
133,135
9,720

r

658

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1916.

In the case of the Bank of England stateCOMPARATIVE STATEMENT OF LEADING
ment,
the distinction between the issue and
BANKS OF ISSUE, 1914 AND 1916.
banking departments was disregarded. AcThere are presented below comparative cordingly, "bank notes in circulation'7 on the
statements showing the condition of the Fed- liability side represents the difference between
eral Reserve Banks treated as a unit, and of the the amount of notes reported as "issued" by
leading central banks of issue in 1914 and the issue department and the amount of notes
in September-October, 1916. The original fig- reported among the assets of the banking deures were largely taken from the official bank partment. Similarly, "gold coin and bullion"
statements, and conversions into dollars were reported by the issue department was combined
made at the mint rates, with no allowance for with "gold and silver coin" reported by the
existing gold premiums.
banking department; "other securities" shown
The figures for the Federal Reserve Banks among the assets of the issue department was
have been modified by the inclusion among the combined with "Government securities" reassets of all the gold held by the Federal Re- ported by the banking department; and "other
serve Agents and by the inclusion among the securities" shown by the banking department
liabilities of all the Federal Reserve notes issued was shown separately under the designation of
by the agents less notes held by the reserve ''loans and discounts.'' The statements of the
banks. In other words, it was assumed that Continental banks are more uniform and require
the Federal Reserve Banks were issuing.notes no special comment.
without the intermediation of the Federal ReThe principal assets and liabilities of the Fedserve Agents, and that the banks, and not the eral Reserve Banks and of the leading European
agents, were in possession of the gold serving central banks of issue are grouped under heads
as cover for the notes issued.
commonly used in our own bank reports.
Comparative statement showing principal assets and liabilities of the leading central banks of issue, at dates specified.
[In thousands of dollars.]
Federal Reserve
system.
Dec. 31,
1914.
Assets.
Gold coin and bullion
Silver and other metallic reserve
Total metallic reserve
Gold held abroad
Foreign credits
Government securities:
Bonds, consols, etc
Short-term obligations
Other Government obligations
Total
Notes of other banks of issue
Loans and discounts
Advances on bullion and specie, securities, merchandise, etc.
Securities
Sundry assets
Total.

Oct. 20,
1916.

Bank of England.
July 29,
1914.

Oct. 4,
1916.

Bank of France.
July 30,
1914.

Oct. 7,
1916.

241,321
17,823

599,613
2,845

185,567

265,859 /
\

799,279
120,689

804,016
64,675

259,144

602,458

185,567

265,859

919,968

868,691
130,190
160,153

205

41,335
11,697
7,716

143,343

295,095

*8,"755*

41,019
963
38,600

40,862
291,438
1,698,400

8,960
4,624
9,909

60,748
1,363
104,057

734
9,237

32,543
32,291

143,343

295,095

80,582

2,030,700

230,222

53i*264

471,746
146,443
77,173

365,814
228,868
84,638

292,608

833,460

559,132

1,092,218

1,695,912

3,869,054

18,051

55,682

263,948
10,609

26,116
538,102
213,076

70,822
16,992
61,869
264,830
144,566
53

70,822
15,373
254,204
571,337
180,373
109

35,222
8,206
73,834
182,881
1,289,855
105,914

35,222
8,292
11,408
434,668
3,283,151
96,313

292,608

833,460

559,132

1,092,218

1,695,912

3,869,054

Liabilities.
Capital paid in
Surplus
Government deposits
Other deposits
Bank notes in circulation.
Sundry liabilities
Total.




NOVEMBER 1,1916.

859

FEDERAL RESERVE BULLETIN.

Comparative statement showing principal assets and liabilities of the leading central banks of issue, at dates specified—Con.
[In thousands of dollars.]
Russian State Bank. *
July 16/29, Sept. 8/21,
1916.
1914.
Assets.
Gold coin and bullion
f^ilv^r and of.hp.r mfitallin rpsp.rv*1Total metallic reserve
Oold held abroad
.
Foreign credits .
•Government securities:

...

[

Total
Notes of other banks of issue
Loans and discounts..
Advances on bullion and specie, securities, merchandise, etc
Securities
Sundry assets
Total ..•

Dec. 31,
1914.

Aug. 20,
1916.

German Reichsbank.
Julv 31,
1914.

Sept. 7,
1916.

236,633 /\

183,973
16,417

298,261
65,409

587,788
5,660

8-49,325
1,058,298 1

236,633

200,390

363,670

593,448

8,195

50,782

2,398,418

105,865

342,513

7,960

88,982

2,398,418

825,884
57,487

800,190 •
49,135

863,371
72,471

Short-term obligations
Other Government obligations

Bank of Italy.

220,932
179,273
53,075
109,931

143,697
282,020
65,195
398,691

105,865
*>5,416
180,297
29,180
39,486
28,618

a 342,513
c5,934
180,900
36,277
42,783
27,025

7,960
2,740
495,296
48,121
94,392
51,902

88,982
4,162
1,669,753
2,509
22,148
117,977

1,499,053

5,195,644

633,690

886,604

1,064,081

2,528,979

Liabilities.
Capital
Surplus
Government deposits
Other deposits
Bank notes in circulation
Sundry liabilities
l

Total

28,325

28,325

264,937
327,585
841,174
37,032

137,997
948,504
3,720,219
360,599

34,740
13,515
40,320
118,035
417,352
9,728

34,740
42,840
14,576
17,726
5,849 > 299,515
148,690
692,442
652,303
30,446
11,558

42,840
20,342
684,939
1,707,754
73,104

1,499,503

5,195,644

633,690

886,604

2,528,979

Bank of the Netherlands.
July 25,
-1914.
Assets.
Gold coin and bullion
Silver and other metallic reserve
Total metallic reserve
Foreign credits
Government securities:
Bonds, consols, etc
Short-term obligations
Other Government obligations
Total
Notes of other banks of issue
Loans and discounts
Advances on bullion and specie, securities, merchandise, etc
Securities
Sundry assets
Total

.

.

.

.

Sept. 30,
1916.

$65,170
3,307

$236,119
2,652

68>477

238,771

5,003

Riksbank, Sweden.
July 31,
1914.

$24,746 \
1,408

Sept. 30,
1916.

1,064,081

Norges Bank, Norway.
July 31,
1914.

Sept. 30,
1916.

$40,685

$14,405

$30,532

26,154
13,564

40,685
10,982

14,405
8,166

d 27,355

634

7,332

16,083

2,399

3,733

5,003

634

/16,083

2,399

0 3,733

35,430
24,798
3,612
928

45,745
24,386
3,666
24,080

«7,332
ft 1,893
42,303

41,323
3,815
1,404

23,690

138,248

337,282

92,059

8,040
2,011

8,040
2,072

11,900
2,975

1,904
124,796
1,497

42,596
281,715
2,859

18,440 }
54,367
4,377

138,248

337,282

92,059

813

Liabilities.
Capital
Surplus
Government deposits
Other deposits
Bank notes in circulation
Sundry liabilities
Total
a Includes $4,003,000 of foreign treasury bills.
6 Includes $1,737,000 of foreign bank notes,
c Includes $1,641,000 of foreign bank notes.
d Includes foreign bills of exchange.




11,900
2,975
17,726
386,885

3,859
32,859

«Includes both Government and corporation securities.
/ Includes foreign Government securities.
g Includes foreign Government securities.
h Includes foreign bank notes, also drafts and bills payable on demand.

20,439
61,615

660

FEBERAL RESERVE BULLETIN.

NOVEMBER 1 . 1 9 1 6 .

Comparative statement showing 'principal assets and liabilities of the leading central banks of issue, at dates specified—Con,
[In thousands of dollars]
National Bank, Copenhagen, Denmark.
July 31,
1914.

Assets.
Gold coin and bullion
Silver and other metallic reserve
Total metallic reserve
Foreign credits
Government securities:
Bonds, consols, etc . .
Short term obligations
Other Government obligations

\

/
<?24,410 I
24,410

I

Total
Notes of other banks of issue
Loans and discounts
Advances on bullion.and species, securities,
merchandise, etc
Securities
Sundry assets
Total.

S e p t . 30,
1916.

Sept. 30,
1916.

July 23,
1914.

Sept. 15,
1916.

$105,798
143,063

$228,429
146,934

134,753
3,656

£55,936
10,973

42, 799
13,805

248,861

375,363

38,409

66,909

67,047
29,199

67,047
29,199

9 341
t> 19
33,121

96,246

96,246

152,579

140,116

1
j.l

1 SRfi

Dec. 31,
1913.

$111,734
562 }•
112,296
75, 693

Sept. 23,
1916.

$152,685
152,685

J

27,654

18,308

1

10,956

11,284

38,610

29,592

1,586
18,099

34,704

28,126

39,122

9,627

5,370
1,666
2,049

2,699
2,446
5,594

3,370
1,445
11,883

69,636

1,362
187,294

66,548

108,170

67,247

119, 897

324,361

410,055

4,825
289

4,825
471

18,675
13,585
58,897
2,470
212,342
18,392

18,675
18,490
134,647
19,162
202,307
16,774

324 361

41n nan

3,106

.

J u l y 24,
1914.

Bank of Japan.

Swiss National Bank.

$41,713
1,086

6,958 f
a 2,383 <

27,098
2,307

B a n k of S p a i n .

I

Liabilities.

Capital paid in
Surplus
Government deposits...
Other deposits .
Bank notes in circulation
Sundry liabilities. .
Total.
a Foreign Government securities.




7,236
2,199

}

5,496
39,525
12,092
66, 548

/
\

7,236
2,675
918
c24,312 1
71,928
1,101

96,931

149,903

9,777

373,557

439,781

51, 708
648

f
28,819 \
83,176
2,606

67,247

67,247

108,170.

b Swedish and Norwegian bank notes.

c Includes $1,569,000 due to foreign central banks.

INDEX.
Page.

Acceptance business, growth of
590
Acceptances, distribution of, by sizes, maturities,
etc
.
644-647
Assests and liabilities of leading central banks of
issue
658-660
Business conditions:
District No. 1..
*.
613
No. 2
615
No. 3 . . . . . .
616
No. 4.
617
No. 5
619
No. 6
621
No. 7
624
No. 8
627
No. 9 . . .
628
.No. 10..'
629
No. 11
633
No. 12..'
636
Summary of.
-.
612
Clayton Act:
Applications under Kern amendment, number
of, granted and refused
602
Interpretation of '' private banker "
588
Clearing plan, operation of
598
Commercial failures in September
601
Directors of Federal Reserve Banks, memorandum
of Board relative to election of
597
Discount rates in effect
656
Discounts, distribution of
639-644
Earnings and expenses of Federal Reserve Banks
for nine months
593-595
Earnings on investments of Federal Reserve
Banks
. 656
European payments to the United States since beginning of war
592
Federal Reserve Agents' accounts, statement of
652
Federal Reserve Bank statements
650-653
Federal Reserve districts, changes in, Districts Nos.
7 and 9
596




Page.

Federal Reserve notes:
Circulation of
652
Interdistrict movement of
657
Fiduciary powers granted
601
Gold imports and exports
654, 655
Gold settlement fund
603-605
Growth of acceptance business
590
Informal rulings of the Board:
Loans on farm lands
606
Reserves of member banks now carried with
Federal Reserve Bank
606
Clayton Act interpretations
608
Real estate loans, limitations
606
Class A and B directors, eligibility of
607
Insurance for Federal Reserve Bank employees
590
Law department:
Presentment of bills for acceptance
608
Loans on city real estate
608
Real estate loans by central reserve city national banks
609
Promissory notes of member banks, security on.
609
Indorsement of negotiable paper on separate
piece of paper
610
Savings accounts as time deposits.
611
Map showing Federal Reserve districts
596
Mortgage loans, renewal of
602
National bank charters granted
600
'"Private banker," interpretation of, as used in
Clayton Act
588
Real estate loans, one year limit on
602
Reserves, date for payment of
597, 598
Resources and liabilities of Federal Reserve Banks.
650
Statement showing assets and liabilities of leading
central banks of issue
.'
658-660
United States bonds, conversion of 2 per cent, during 1916
647-649
Wisconsin banks transferred from District No. 9 to
District No. 7
596
Work of the Board.
587
661