Full text of Federal Reserve Bulletin : November 1917

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FEDERAL RESERVE




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

NOVEMBER, 1917

WASHINGTON
GOVERNMENT PRINTING OFFICE
* 191T

FEDERAL RESERVE BOARD.
EX OFFICIO 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.
AHOLPH C. MILLER.
CHARLES S. HAMLIN.

H. PARKER WILLIS, Secretary,

SHERMAN ALLEN, Assistant Secretary and Fiscal

Agtni.
M. G. 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 officers and directors may have it sent
to not less than 10 names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 are available.
Bound copies of the Bulletin for 1916 may be had at $5 per copy.




SECOND EDITION OF THE INDEX DIGEST.
The Federal Reserve Board has had prepared, primarily for
its own use, a second edition of the Index Digest of the Federal
Reserve Act, by Hon. Charies S. Hamlin, member of the Federa! Reserve Board, the first edition of which was published
in 1915. While the edition is primarily for the use of the Board,
enough copies will be printed to supply the demand of banks
and others who may desire to purchase them, Those who desire copies should at once remit $1 (bound in paper) or $1.25
(bound in cloth) to the Federal Reserve Bank of the district in
which the subscriber is resident. Copies of the edition, when
published, will be transmitted to the Federal Reserve Bank
for distribution,
in

TABLE OF CONTENTS.
Page.

Statement of President as to membership of Slate banks
Review of the month
State banks admitted to the system during October, with summary of pending applications.
Statements issued by new members which have lately joined the system
Text of act authorizing issuance of national-bank notes of small denominations
Licensing of enemy or ally of enemy insurance companies
Treasury certificates of indebtedness issued during October
Banks authorized to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
Gold settlement fund transactions
Operation of the Federal Reserve clearing system
Movement of the price of silver
Charts showing
Distribution of Treasury certificates of indebtedness
Chart showing
Movement of reserves, deposits, and Federal Reserve circulation
Charts showing..
Trading with the enemy act:
Text of
Executive order prescribing regulations for carrying out provisions of
New national bank charters issued
Commercial failures reported
Export license list
Text of war-revenue act
Informal rulings of the Federal Reserve Board
Law department
Business conditions throughout the Federal Reserve districts
Discount operations of the Federal Reserve banks
Acceptances
Resources and liabilities of the Federal Reserve bank's
Federal Reserve note account of Federal Reserve banks and agents
Earnings on investments of Federal Reserve banks
Gold imports and exports
Discount rates in effect




IV

827
829
834
834
837
838
838
839
839
840
841
842
844,845
848
846
848-850
848,849

--

851
860
864
S64
864
868
878
880
884
900
902
910
912
915
916
916

FEDERAL RESERVE BULLETIN
VOL.

3

NOVEMBER 1, 1917.

No. 11

MEMBERSHIP OF STATE INSTITUTIONS IN THE FEDERAL RESERVE
SYSTEM.
The President, on October 1.3, made public [ supplying credit facilities, and in protecting
through the Federal. Reserve Board, the follow- [ the reserves of the country, have become so
ing statement:
\ familiar to all. that 1 am sure it is unnecessary
" I t is manifestly imperative that there | to dwell upon or expound them.
should be a complete mobilization of the bank"The extent to which our country can
Ing reserves of the United States. { All who are | withstand the financial strains for which, we
familiar with financial operations must ap- | must be prepared will depend very largely
predate the importance of developing to the upon the strength and staying power of the
maximum our banking power and of providing Federal Reserve Banks. The Federal Reserve
financial machinery adequate for meeting the Act is the only constructive financial legislavery great financial requirements imposed tion which, we have ever had which was broad
upon our country by reason of the war. ;i A1 enough, to accommodate at the same time
vigorous prosecution and satisfactory termina- banks operating under powers granted by the
tion of the war will depend, in no small degree General Government and banks whose charters
upon the ability of the Government not only are granted by the respective States.' The unifito finance itself, but also to aid the Govern- cation of our banking system and the complete
ments associated with it in the war. which mobilization of reserves.are among the fundamust be kept supplied with munitions, fuel, mental principles of the Act.
food, and supplies of all kinds. [ The banking "The State banking institutions for some
problem involved is one which concerns all reason have until recently seemed inclined to
banks alike. Its solution does not depend j hold aloof. Congress a few months ago preupon the National, banks alone, nor upon the ; scribed very generous terms for the admission
State banks. The burden and the privilege must j of the State banks into the Federal Reserve
be shared by every banking institution in the j System which have removed, the objections
country. The important functions of the j heretofore raised by State banks when conFederal Reserve Banks in the sale of the j sideling membership. As the law now stands
Government's securities, in receiving and it leaves member State banks and trust comtransferring the- billions of dollars involved, in panies practically undisturbed in the exercise




827

828

FEDERAL RESERVE BULLETIN.

of all the banking powers conferred upon them
bj the States. The law provides also in definite terms the condition upon which any State
bank or trust company may withdraw from the
system. Many of the largest State banks and
trust companies are now becoming members,
realizing that to win the war we must conserve
all of the physical, financial, and moral resources
of our country—that our finances must rest on
the firmest possible foundation, and that they
must be adequately and completely conserved
so as to respond instantly to every legitimate
demand. How can this necessary condition be
brought about and be made permanently effective better than by the concentration of the
banking strength of our country in the Federal
Keserve System.

''There are probably 8?000 or 9,000 State
banks and trust companies eligible for membership which have not yet united with the
system. These institutions have it in their
power to add enormously to the resources of
the Federal Reserve Banks, thereby broadening and strengthening the foundation upon
which our whole financial structure must rest.
Permit me to urge that every bank officer and
bank director owes a solemn obligation to the
country which I am sure they wish to discharge. I, therefore, wish again to impress
upon them my solemn conviction that they
can best measure up to their duties and re*
sponsibilities through membership in the Federal Reserve System.

"May I not, therefore, urge upon the officers
and directors of all nonmember State banks
and trust companies which have the required
amount of capital and surplus to make them
eligible for membership, to unite with the
Federal Reserve System now and thereby
contribute their share to the consolidated
gold reserves of the country ? I feel sure that
m member banks they will aid to a greater
degree than is possible otherwise in promoting the national welfare, and that at the same
time, by securing for themselves the advantages offered by the Federal Reserve System,
they will best serve their own interest and the
interest of their customers. I believe that
cooperation on the part of the banks is a
patriotic duty at this time, and that membership in the Federal Reserve system is a distinct and significant evidence of patriotism.

"The WHITE HOUSE, October 13, 1917'."




"(Signed)

WOODROW WILSON.

The President's statement has been sent out
by the Federal Reserve Board to all banks* with
the following letter dated October 15:
DEAR SIR: The Federal Reserve Board takes
pleasure in bringing to your attention a statement by the President of the United States in
which he urges the importance of the mobilization of the banking reserves of the country and
points out that cooperation on the part of the
banks at this time is a patriotic duty, and that
membership in the Federal Reserve System is
a distinct and significant evidence of patriotism.
The Board trusts that you will give this
statement your immediate and earnest consideration, and if your board decides to respond
to the President's appeal, that you will send
your application for membership to the Federal
Reserve Bank of your district, Applications
will be acted upon as promptly as possible in
the order of their receipt.
Very truly, yours,
W. P. G, HARDING, Governor.

FEDEBAL BESEBVE BULLETIN.

NOVEMBER 1.1917.

829

short time what has been the constant policy
of the Federal Reserve Board from the very
The foregoing letter addressed by the Presi- beginning, namely, the incorporation of the
Stete banks and d e n t t o S t a t e b a n k s md t r U s t great majority of the leading State banks and
the Reserve Sys- companies comes as the climax trust companies of the country into the Fedtem
*
of a movement which, as is well eral Reserve system, thus giving the system.
known, the Federal Reserve Board has had at its widest foundation, and making it more
heart from the beginning. I t marks the month fully adequate to cope with the many difficult
of October as one of the most decisive in the problems confronting the banking organizahistory of the Federal Reserve System, so far tion of the country.
as State bank membership is concerned.
Statements from recent members, a few of
The President addressed the banks at a
which are published elsewhere
Doty of State inmoment when, in consequence of certain stitutions.
in this issue, point to the fact
changes recently made in the Federal Reserve j
that in entering the system
Act, the main objection of State institutions had m a n y State institutions have acted from a large
been overcome and when, in consequence, some sense of national duty and without waiting to
of the most powerful trust companies had j count the profit which they may expect to earn
already decided to join the system, not only as as a result of their membership. That such
a matter of self-protection, but as a matter of profit will accrue to them through various
public duty toward the country at this time. opportunities for new business has already
Since then, in patriotic response to the Presi- been repeatedly demonstrated, and that the
dent's appeal, there has been a daily growing increase in their own safety will alone more
number of applications for membership. Dur- than compensate for such expense as may
ing October there have been admitted State be incurred in complying with the requirebanks and trust companies with an aggregate ments of membership, is the belief of not a
capital and surplus of $164,614,500 and aggre-1 few of the keenest and wisest State bankers of
gate resources of $1,856,600,853. The Board the Nation. Regardless of all this, however,
is advised that in addition 93 banks and trust the position of the Nation, the need of consolicompanies have passed resolutions authorizing dating its gold resources, the earnest call for
enlargement of its rediscounting power through
application for membership.
The total resources of State institutions the massing of funds in the hands of the
which up to October 31 had been granted reserve banks, all constitute so urgent and
membership were $3,083,852,542, a figure obvious a necessity in coping with the unprecedented need of the Public Treasury and of the
not less than 20 per cent of the total
nation at large as to make membership in the
nonnational bank resources of the country. system an undeniable duty for all banks that
The total number of State institutions admit- may be considered eligible under the law and
ted to membership in the system up to October the regulations of the Federal Reserve Board31 is 112. Among this number is included
In the annals of American war finance the
the majority of the strongest and most liquid
month of October, 1917, will
remain
nonmember banks of the country, situated in
memorable. It marks
almost all of the chief financial centers. It is
the campaign for the second
confidently expected that the President's let- j Liberty Loan, which was carried to a most
ter to State institutions will have its effect in j SUCCessful conclusion—an evidence of loyal
greatly enlarging the membership of the patriotism and splendid citizenship on the
system among the smaller institutions of the part both of those engaged in the campaign
country, many of whom are now applying for and those that responded to the leadership.
membership, and thus at last there will have
Subscriptions to the second Liberty Loan
been accomplished within a comparatively closed on October 27. In the last issue of the
REVIEW OF THE MONTH.

, "j




1

•

. •!

1

1

*

P

"I

830

VEDEBAL BESEBVE BULLETIN.

Federal Reserve Bulletin the terms and conditions under which this second issue of bonds
was offered have already been stated. The organization developed during the campaign for
the first Liberty Loan had been brought into
existence and gradually perfected during the
months between the first and second issues, and
this preliminary work naturally rendered the
technique of the second operation much
simpler than that of the first. The actual figures of subscriptions received from each district are not available at this writing, but it is
safe to say that the fact that there has been
an oversubscription above the amount of
$3,000,000,000 offered is testimony to the efficiency with which, the undertaking has been
handled, as well as to the interest and support
afforded by the country in connection with this
unprecedented operation. Of the proceeds of
the new loan about $2,320,493,000 has been
anticipated by the issue of short-term certificates, as in the case of the former issue. The
use of the certificate plan and the retention of
the system of installment payments for those
subscribers who desired it, as well as the redepositing of the subscribed funds with the
banks with which they originated, insure
that this loan, as its predecessor, will be handled with the least possible disturbance of the
financial market. Experience with this second
loan shows that the issuing machinery is now
well developed and under good control, the
problems of administration and management
being thereby very much simplified. It is as
yet too early to state the proportions in which
the new issue of bonds has been placed with
the public and with banking institutions, respectively, or how much has been paid for in
cash and how much by borrowing, but in this
instance no doubt, as in that of the first loan,
bonds taken by banks and trust companies
will be steadily and as fast as practicable
transferred to investors.
During the month of October further Goverment financing has been conn d u c t e d aloi3 t h e l i n e s
*
«
marked
out during the summer. Since
the latest isL as of the Bulletin three additional




NOVEMBER 1,1917.

issues of short-term certificates of indebtedness
have been placed. The first, offered on
September 26, amounted to $400,000,000 and
matures December 15, 1917. The second was
offered on October 18, the offer being made to
an amount of not less than $300,000,000,
maturing on November 22, 1917. There were
subscribed and allotted a total of $335,197,000.
The third offer was made on October 24, and
was not limited to a specified amount, the intention being to meet the requirements of
banks desiring to anticipate payments due on
Liberty Loan subscriptions of their customers.
The total amount of this issue placed was
$685,296,000, the certificates maturing on
December 15, 1917. All issues bore 4 per
cent interest and were placed under conditions
practically identical with those that had been
announced on former occasions and have already been fully discussed in the Federal Reserve Bulletin. The total of short-term certificates of indebtedness now outstanding
is $2,320,493,000, and this may be taken as
in round numbers indicating a corresponding
reduction in the net proceeds of the Liberty
Loan when realized. The effect of the shortterm certificates will thus in the case of the
October issues, as on preceding occasions of
like kind, be that of producing a steady flow of
funds into the Treasury, the certificates affording means of exchange which can be used in
remitting the proceeds of subscriptions to
bonds. This system, now thoroughly established as the result of experience in the past,
continues to produce the same result as heretofore in the maintenance of stable conditions
and the avoidance of shock to the financial
market.
The prompt response of the banks to these
offerings of United States certificates of indebtedness shows that they are using the
utmost efforts to support the policy of the
Government in connection with the war. While
the number of banks applying for these certificates has been a constantly increasing one,
it is the policy in placing these securities
still further to widen the circle of those who
participate in subscribing for them.

NOVEMBER 1,1917.

FEDEBAL BESEBVE BULLETIN.

831

The policy of the Government will best be bills. The total bills held by the New York
supported by the nation-wide distribution of bank on October 26 were $216,533,000 in exthese certificates between one Liberty Loan cess of the total reported on September 21,
while bill holdings of the remaining 11 banks
issue and another.
The operations of the month, while neces- were only $13,381,000 larger. The banks resarily producing a heavy drain port an increase between the two dates of
0 u on t h e
sinks. *" P
^sources of the com- $15,043,000 in United States securities on hand,
munity, have not materially largely United States certificates of the most
altered the liquid condition of the Federal Re- recent issues. Their holdings of municipal
serve Banks themselves, but the various insti- warrants continue almost negligible. The total
tutions have continued strong and able to investments of the 12 banks on October 26 had
maintain Yery large percentages against both reached a record total of $684,959,000, or
deposits and notes, these being on October 26, $132,310,000 in excess of the total reported
respectively, 70.3 per cent and 78.3 per cent. I on June 22, following the consummation of the
Heavy discounting by the New York Reserve first Liberty Loan.
In the following table are shown the changes
Bank of collateral notes for city members,
chiefly in connection with the Government's between September 21 and October 26 in the
loan operations, is the outstanding feature of amounts of bills held hy each, of the Federal
banking operations for the post five weeks. Reserve Banks, also changes in the total
During the period the total holdings by the amounts of other classes of earning assets:
Federal Reserve Banks of members' collateral
{000 omitted.]
notes increased from $70,171,000 to $271,Net
Not
Sept. 21. Oct. 26.
Federal Ueserve Bank.
712,000, while like holdings of the New York
increase. decrease.
bank alone went up from $6,568,000 to $173,§35,402
834,919
$483
921,000. Most of this paper is secured by NBoston
ew Y or k.
85,655
302,188 "§23.6*533°
30,052
23.J599
Philadelphia
6,453
United States certificates of indebtedness or C'lc\ cUvncl
33,329
27/O99
51630
19,914
17,051
Liberty bonds. The total holdings of col- UichmoTid . >.
2', 893
9,279
14,301
Atlanta
5,022
43.470
lateral notes thus secured show an increase be- Chics &o
59,888
16,418
19'. 936
St. Louis
24,147
4,211
tween September 21 and October 26, from Minneapolis
14,' 137
11.018
3,119
25', 001
22,746
Kan^ps Ci> v
2,255
$22,183,000 to $209,230,000, while the New Dallas *
17.297
12,188
5,109
1.8,632 | 17,570
1,056
York Reserve Bank alone reported $156,560,- Sau Fra^iC'sco .
229,914
574.(584
344,770
Total hills
000.of this class of paper on hand on October Total United States securities 9-1.999 110;042 15,043
233
'214
19
26, as against $2,095,000 on. September 21. Total municipal warrants
884,959 1 244,975
Total investments hold. 439.983
It must be remembered, however, that during the process of adjustment in connection with
Increases of $197,000,000 in in vestments
the first Liberty Loan the pressure on the New
and of $162,000,000 in net deYork Federal Reserve Bank 'was heaviest dur>5a
•
^'
~
mand deposits reported by the
ing the period preceding the first payment. lion.
59
New York Clearing House
In explanation of this, it is pertinent to note
banks
for
the
four-weeks
period ending Octothat of the certificates of indebtedness nowber
20
were
accompanied
by a gain of over
outstanding; banks of the New York Federal
$45,000,000
in
vault
cash,
and
reserve. This
Reserve district have absorbed in anticipation
upward
movement
of
loans
and
deposits goes
and preparation for the final payment for subhand
in
hand
with,
the
large
financing
operascriptions SI,467,543,000, or 83 per cent of the
tions
of
the
Government,
including
the
sale
on
total issued.
September
26
and
October
18
of
the
two
issues
of
Acceptances on hand show a relatively small
certificates
of
indebtedness
elsewhere
described.
increase during the period from $161,012,000 to
$177,590,000, few of the banks, outside of New The reserve percentage for all clearing-house
York; increasing their investments in. bankers' banks, representing the ratio of net demand de-




20057

17—

2

882

FEDERAL KESEBYE BULLETIN.

posits to aggregate vault cash of banks outside |
the Federal Reserve system plus amounts due
from legal depositaries, including Federal Reserve Banks, shows an improvement from 18.7 to
19.1 per cent. A different development is shown
for the New York banks in the Federal Reserve
system for the reason that, in figuring their reserve, vault cash is disregarded and balances at
the Federal Reserve Bank only are considered.
For the same period the weekly average total
of vault cash of these banks shows a gain of
$20,500,00(3, largely gold. This latter gain does
not, however, affect the reserve percentage,
which shows a decline from 16.4 per cent for
the week ending September 22 to 16.1 per cent
for the week ending October 20. Average
excess reserves of all the 59 clearing-house
banks varied between §85,300,000 for the week
ending September 22, $98,600,000 for the week
ending October 13, the largest figure shown for
the period, and $94,900,000 for the week ending
October 20.
For the trust companies in Greater New
York the State banking department shows a
development parallel to that indicated for the
members of the Federal Reserve system, the
average reserve percentage declining from 21.8
per cent for the week ending September 22 to
20.7 per cent for the week ending September 29,
during which the Government sold the $400,000,000 issue of certificates of indebtedness, and
showing a slight recovery to 21.3 per cent for
the week ending October 13. For the following
week, when the Government disposed of the
ninth issue of certificates of indebtedness, the
average reserve of the New York trust companies declined to 21 per cent.
Average excess reserves, including vault
cash, of the 11 clearing-house banks in Boston,
all members of the Federal Reserve system,
declined from $19,252,000 for the week ending
September 22 to $18,498,000 for the week following and to $17,717,000 for the week ending
October 13. For the week ending October 20
the average stood at $18,527,000, or $725,000
below the level shown for the initial week.
For the 27 national banks, members of the
Philadelphia Clearing House, excess reserves
proper (L e., disregarding amounts of vault




1,1917.

cash) show but little change, the weekly averages varying between $5,263,000 for the
week ending September 22 and $5,917,000 for
the week ending October 6 and averaging
$5,432,000 for the week of October 20. There
was, however, a substantial gain in vault cash,
the average excess of vault cash plus actual
balances with the Federal Reserve bank over
average Federal Reserve balances required by
the amended act showing an increase from.
$21,039,000 for the week ending September 22
to $23,588,000 for the week ending October 20,
the last week under review.
The President on October 3 signed the WaiRevenue Act, which thus beThe War Rev- comes law, and which will
enue keL
necessarily largely affect the
revenues of every business institution, as well
as of every individual in the country. The
banks are directly interested in those provisions of the measure which relate to taxation of
their profits, and which impose a tax upon
their instruments of credit. The portions of
the law relating to these subjects are reprinted
elsewhere in this issue (p. 868). One aspect of
the law is of very considerable interest, not
merely from the standpoint of business profit,
but from that of general banking and financing.
So great are the demands to be met under the
new legislation, that it has been feared by
some that funds may be " tied up " in banks to
no inconsiderable extent, awaiting the time
when payments have to be met on tax account.
This would be an undesirable situation, both
on account of the loss of interest to the owners
of the funds, and because of the effect on banking conditions resulting from a policy which
would unavoidably render so large a volume of
resources unavailable. In this, as in the offering of short-term certificates of indebtedness,
the problem is that of maintaining a regular
flow of funds into and out of the Treasury.
To meet this contingency it has been suggested
that temporary certificates of indebtedness in
suitable denominations, maturing June 15,
1918, be continuously placed on sale over the
counters of reserve banks in any amount that
may be necessary to satisfy the demand.
Large taxpayers, who were unwilling to have

1917.

FJTCDEHAL RESE-liVE BULLETIN.

88S

their funds rendered unavailable, would then places in the hands of the administration full
purchase the certificates required, and would power to control not only the movements of
hold them as interest-bearing assets up to the coin, bullion, and currency but all dealings in
time when tax payments must be turned in, foreign exchange. By proclamation on Octousing them in place of actual cask or checks on ber 12, published elsewhere in this issue, the
banks, If some adjustment of this kind can President has vested these powers in the
be effected the danger of rendering large quan- Secretary of the Treasury. The administratities of bank funds unavailable over consider- tive oversight of coin and currency movements
able periods will be avoided.
continues, however, to be exercised subject to
The system, for the control of exports of the approval of the Secretary of the Treasury,,
coiiij bullion, and currency, in- as heretofore, by the Federal Reserve Board,
Exporte; of go
stituted in response to the
For the four weeks ending October 12 the
proclamation of the President of ijh.Q United
net outward movement of gold
States, under date of September 12, has been
staled »18,529,000f compared
continued and extended in its application.
with. $33,312,000 for the imWhile passing daily upon all applications for mediately preceding four weeks, Gold imthe export of money that have been presented ports totaling $4,053,000 are credited chiefly to
to it, the effort of the Federal Reserve Board, Canada, Mexico, and South American counworking in conjunction with the Treasury De- tries, while gold exports amounting to $22.partment, has been to devise ways and means 582,000 were destined largely to Japan, Spain,
for the furnishing of satisfactory quantities of British India, and South American countries,
exchange in. our foreign trade, the disturbance The net increase in the country's stock of gold
of which would not be compatible with, the through recorded net imports since August L.
best interests of our c o u n t y Mexico, South 1914, is seen from the following exhibit:
America* and the Orient each represent a
ROODS
' omitted.)
different phase of the same general problem,
Excess of
imports
and the solution must be sought either in
Imports.
Exports.
ever
exports,
developing ways and means of furnishing
acceptable exchange upon a basis which would Aug. 1 to Dec. 31,1914
Sim, 972
$23,253
5 $81,719
31,425
Jan. 1 to Dec 31,1915
451,955
420,529
permit the retention of the gold in the United Jan. I to Dec. 31,1916
155,793
885,745
329,952
353,648
Jan. 1 to Oct. 12,1917
5-'15,Q8G
191,434
States as a basis for paper currency to be
645,837
Total
1/706,033
lf08G,18ft
issued, in the country with which the arrangei Excess of exports over imports*
ment was entered into, or further experience
The passage of the act of October 5, 1917,
may demonstrate that the most practicable
authorizing national banks to
method for effecting settlement of such trade
Changes in the i s s u e n o t m o r e t h a n $ 2 5 ? 0 0 0 c a c l l
balances will be a readjustment of exports and currency
system*. .
.
*
•»
imports upon such a, basis as to bring about a
in denominations of $1 and $2,
satisfactory equilibrium. The difficulty in and authorizing them to issue notes of $5 on the
the case will be found in determining exactly same basis as other denominations is intended
what elements of trade can safely be dispensed to provide a larger volume of small bills.
with, as well as in determining when and under The Treasury Department, as is well known,.,
what conditions a given branch of trade is so has for some time past been converting large
indispensable as to warrant its continued main- greenbacks or United States notes into notes of
tenance even at the expense of regular gold small denominations, thereby probably Sliding;
shipments for use in settling the trade balance a permanent field of circulation for them..
growing out of it. In this connection it should As the gree.nba.cks thus move out of the larger
be noted that the so-called trading with the and into the small denominations, an increasenemy act, signed by the President on. October 6, ing field, for Federal Reserve notes is opened.




884

FEDERAL BESEBVE BULLETIN.

NOVEMBER 1,1917.

The Treasury, the Federal Reserve Board, and
the Federal Reserve Banks are consistently
cooperating in substituting Federal Reserve
notes for the circulation of gold certificates,
and they are effectively supported in this
undertaking by the national banks and those of
the State banks and trust companies which
have joined the system.

One hundred and seventeen State institutions
are now members of the system, having a
total capital of $130,605,000, total surplus of
$159,082,465;;;:and total resources of $3,083,852,542.
Following is the number of applications for
admission to membership in the Federal Reserve
System received from or authorized by the
boards of directors of State banks and trustcompanies in the several districts, and which
Membership in the Federal Reserve System. are now pending:
The following statement shows the number
Number
Number of
banks
of State institutions admitted to the Federal
of applications in passing
resoluReserve System from October 1 to October 31.
hands of tions au- Total.
Federal
Reserve thorizing
Agent. application.

State banks admitted during October.
Capital.
Canal Bank & Trust Co., New
Orleans, La
Spokane & Eastern Trust Co.,
Spokane, Wash
Chicago Savings Bank & Trust
Co., Chicago, 111
Union Bank of Pike Summit,
Miss
Guaranty Trust Co., New York,
N.Y...
Sioux Falls Savings Bank, Sioux
Falls, S. Dak....
First Savings & Trust Co. of
Whitman County, Colfax,
Wash
Bank of Willistan, Williston,
N. Dak
Live Stock State Bank, North
Portland, Oreg
Genesee Exchange Bank, Genesee, Idaho
Lafayette South Side Bank, St.
Louis, Mo
Central Trust Co., New York,
N.Y
Bankers Trust Co., New York,
N.Y
Equitable Trust Co., New
: York, N . Y
Metropolitan Trust Co., New
>' York, N. Y
Metropolitan Bank, New York,
N.Y
,
Franklin Bank. St. Louis, Mo..;
Bank of America, New York,
N.Y
Buffalo Trust Co., Buffalo,
N.Y
Pacific Bank, New York, N. Y.
Union & Planters Bank & Trust
Co., Memphis, Tenn
The Now York Trust Co., New
York,N. Y
Newton Trust Co., Newton,
Mass
•German American Bank, St.
Louis, Mo
Lawrence Savings & Trust Co.,
Now Castle, Pa
Mercantile Trust & Deposit Co.,
New York, N. Y
Girard Trust Co., Philadelphia,
Pa
Franklin Trust Co., New York
N.Y
Total..




Surplus.

82,000,000

$500,000

1,000,000

200,000

1,000,000

200,000

Total
resources.

District
District
District
District
821,210,371 District
District
20,078,866 District
District
12,733,891 District
District
105,518 District

25,000

4,000

25,000,000

25,000,000

613,535,033

200,000

23,000

3,852,236

50,000

15,000

369,711

10,000

872,840

113,071

50,000
100,000
25,000

12,500

432,091

800,000

400,000

12,604,870

5,000,000

15,000,000

214,715,020

11,250,000

11,250,000

327,011,784

6,000,000

10,500,000

222,410,796

2,000,000

4,000,000

68,256,091

2.000,000
'600,000

1,000,000
700,000

28,801,800
8,961,674

1,500,000

3,000,000

60,903,085

500,000
500,000

500,000
500,000

9,624,217
13,907,579

1,400,000

200,000

15,307,795

3,000,000

10,000,000

90,773,776

400,000

400,000

4,889,053

1,000,000

700,000

9,239,685

300,000

300,000

3,183,807

1,000,000

500,000

8,593,786

2,500,000

7,500,000

61,172,461

1,000,009

1,000,000

24,823,842

68,200,000

96,414,500

1,850,600,853

No. 1—Boston
No. 2—New York
No. 3—Philadelphia....
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta
No. 7—Chicago
No. 8—St. Louis
No. 9—Minneapolis
No. 10—Kansas C i t y . . .
No. 12—San Francisco..

Total.

7
15
11
9
4:

6
20
I
8

60

33

Expressions with reference to their reasons
for entering the system have been issued during the past few weeks by some of the institutions that have applied for membership. I t
is believed that they will be of exceptional
interest at this time as conveying an indication of the attitude of institutions joining the
Federal Reserve System, A few of these,
printed in full as issued, are as follows:
(Guaranty Trust Co. of New York.)
i4

m Th(3 Guaranty Trust Co. of New York decided to join the Federal Reserve System after
giving the matter very serious and very careful
consideration covering many months" of close
study, keen analysis, and continuous observation.
"The act as iirst passed in December. 191.3,
contained certain provisions which in our
judgment from the standpoint of State banks
and trust companies rendered membership in
the system "undesirable. We felt at the time
that the Federal Reserve Act was by far th&
best financial legislation that had ever been.
enacted, that it was a long step in the direction
of banking and currency reform, but that it

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

885

contained certain defects which time and ex- months' notice, and on surrender of our
perience undoubtedly wo aid remedy. It has holdings of capital stock in the Federal Reserve
been exceedingly interesting to observe "the Bank of New "York, provided, that 'the Federal
practical operation of the law during the past Reserve Bank of New York can not, except
three years, and it is gratifying to all who are with, express authority from the Federal
interested in. the permanent solidity of the Keserve Board, earned within the same calendar
business structure of our country to note that year, more than 25 per cent of its capital stock
Congress with reasonable promptness has made for the purpose of effecting voluntary withsuch 'vital changes in the law as practical ex- drawals during that year,
perience has demonstrated were necessary.
"As a member of the Federal Reserve Bank
"As the Federal Reserve Act stands to-day. of New York, our acceptance business will
Tactically every serious objection, to mem™ experience increased profits due to the fact
•ership, which was evident at the time the law that our acceptances will receive the preferwas passed has been removed, and therefore ential rate accorded to those of member banks
it was with genuine satisfaction that the when purchased by the Fedora! Reserve Bank,
Guaranty Trust Co. of Now York decided to and consequently "they -mil sell at better rates
apply for membership in the system.
in the open market "also. In this way our
''During the past three years there has
existed an almost continuous discussion among
bankers of the country as to the various projceptance!
visions of the Federal Reserve Act with special the privilege of rediscounting with the Federal
regard to membership or nonmembership in Reserve Bank of New York eligible commercial
the system, Hundreds and perhaps thousands paper and biils of exchange in an unlimited
of letters have conic to us from banks and. trust amount. Obviously this privilege is of distinct
companies in all parts of the country asking advantage, not only to the company, but to
our 'opinion of the law. These we have en- its commercial customers and through them
deavored to answer to the best of our ability. to the entire business community.
In view of this fact, we are taking the liberty
"At the present time national banks and
of presenting the specific reasons which in- other member banks are limited in the matter
fluenced, us to make" application for member- of depositing with us their excess reserve to 10
ship in the system.
per cent of their capital and surplus. By join"Qur country is engaged in the greatest war ing the system this restriction, so far as we are
in the history of the world. This war must be concerned, is removed, and member banks and
won. In order to win it we must conserve all trust companies can keep with us as much of
of trie physical and financial and
moral re- their excess reserve as they desire,
sources of our country. Manifest;y the finances
"As a member of the system, we are not
of OUT Nation must be as solid as a, rock, compelled to maintain large excess cash readequately and competently conserved, and serves when anticipating stringent money condelicately* and instantly responsive to every ditions or when providing for the financing of
legitimate demand. In our judgment this ab- large transactions in which we expect to parsolutely necessary condition can' best be made ticipate with member banks. We can therefore
permanently eilective by the concentration of employ to greater advantage our excess reserves
the banking strength of our country in the by applying them in the usual investment
'FedoraJ. Reserve System. We believe that channels", thus obtaining a substantial yield,
membership in the Federal 'Reserve System,
"By a decision of Acting Attorney Genera!
especially at this time, is a distinct and signifi- John 'W. Davis, rendered September 14, 1917,
cant evidence of practical patriotism.
the Clayton Act, which under certain provi"With certain minor exceptions, we retain sions prohibits interlocking directorates, does
e,-I of our charter rights as a trust company not apply to our company, and therefore memunder the New York State banking law. "Noth- bership in the system does not in any way
ing in the Federal. Reserve Act abridges our affect the personnel of our board of directors.
powers in any of the following revenue-pro"Gur investment in the capital stock of the
ducing departments: Bond, coupon, registra- Federal Reserve Bank of New York is practition, reorganisation, transfer, and. trust de- cally assured of a steady income of 6 per cent
partments.
per aruum.
"The original Federal Reserve Act provided
"If at any time we should desire to withdraw
from the system., we could do so after six j for examinations under the direction of the




886

FEDEBAL BESEBVE BULLETIN.

Comptroller of the Currency. By amendment
of June 21, 1917, examinations are now made
under the direction of the Federal Reserve
Board, and when approved by the directors of
the Federal Reserve Bank, examinations made
by the New York State superintendent of
banks may he accepted.
"Under the original Federal Reserve Act
member banks were required to make reports
to the Comptroller of the Currency at least
five times a year. By amendment of June 21,
1917, as a member of the system we will now
be required to make reports at least three times
a year to the Federal Reserve Bank of New
York on dates to be fixed by the Federal Reserve Board; and should calls for statements
by the State superintendent and by the Federal Reserve Board fall on identical dates, the
Federal Reserve Bank of New York may accept the reports made to the State superintendent."
(The Equitable Trust Co. of New York.)

-The Equitable Trust Co. of New York has
applied for membership in the Federal Reserve
System, moved by considerations not only of
patriotism but from the conviction that the
financial strain for which this country must be
prepared during the continuance of the war
and for a long period beyond can be most
effectively withstood by the identification of
every large financial institution with the established national banking system.
"Whatever the minor disadvantages of subordinating and, to some extent, surrendering
some of the banking powers conferred upon
State institutions by their several States, it
was felfc that the present was essentially the
time for the unification of all the banking
resources of the country.
"The Equitable Trust Co. of #New York is
the third Largest trust company in the United
States. Its capital, surplus, and undivided
profits are $18,900,000, and its total resources,
according to its last report to the State banking department of New York, are about
$230,000,000. It has important branches in
both London and Paris."
(Central Trust Co. of New York.)
'"The board of trustees of the Central Trust
Co. of New York to-day voted unanimously in
favor of the Central Trust Co. of New York
applying for membership in the Federal Reserve Bank.
"The trustees believe that it is their unmistakable patriotic duty to add all in their power




NOVEMBER 1,1917,

to the banking strength of this Government
represented by the Federal Reserve Bank, and
to participate in the many advantages that system furnishes.; J
(Bankers' Trust Co. of New York.)

"The board of directors of the Bankers'
Trust Co., at a special meeting called for the
purpose on October 9, authorized the officers
of the company to make application to the
Federal Reserve Board for membership in the
Federal Reserve System.
"Seward Prosser, president of the company,
authorized the following statement with reference to the motives which prompted the com™
pany's action:
" 'While it is true that we considered carefully what the benefits and the possible expenses might be attending membexrfiip in the
Federal Reserve System, in the last analysis
we struck aside all minor questions, such as
whether it would be profitable or unprofitable,
and allowed no technical or political objections
to get in the way of the big question. The only
reason which really brought about our application for membership was the fact that we had
come to the conclusion that we no longer had
a right to stay out of the Federal Reserve System when it was our belief that in a large way
it was the duty of an institution such as ours
to join hands with our Government at this
time/
"The capital and surplus of the Bankers'
Trust Co. is $22,500,000 and its total assets
$329,000,000."
(Metropolitan Trust Oo. of New York.)

The executive committee of the Metropolitan
Trust Co. has applied for membership in the
Federal Reserve System, and this action has
been ratified by the board of directors of the
company.
In announcing the decision of the institution
to join the Federal Reserve, President George
C. Van Tuyl, jr., said:
"In the opinion of the officers of the company it seemed wise, especially at this time,
that all State institutions join the Federal
Reserve System in order to aid the Government in marshalling and concentrating the
financial resources of the country for the war.
"Motives of patriotism call for the strengthening and broadening of what has so far
proven t;o be the most satisfactory banking
system in the world. Amendments made to
tL.e Federal Reserve law, since opportunity has
been provided to observe its practical work-

'NOVEHBEB 1, 1917.

FEDERAL RESERVE BULLETIN.

837

(Pacific Bank, Now York,)
ings, make it possible for State institutions to
become members of the Federal Reserve
''The Pacific Bank joins the Federal Reserve
Bank without sacrificing their charter rights
System because its directors believe that
or having their business restricted.
" It is our belief that concerted action on the present conditions demand of every citizen and
part of all hanking institutions may in this corporation the utmost of cooperative effort.
way help to conserve the physical as well as We believe the bank can be of more service
the financial resources of the United States. to the community as a part of the Federal
and that membership in the Federal Reserve Reserve System. * Intelligent mobilization of
System is the highest standard of practical the financial resources "of the country is
patriotism possible for banks and. trust com- required., and we want to do our part in" this
service/'
panies to attain,.
(New York Trust Co.)
"Practically every serious objection to
membership in the Federal Reserve System, as
The New York Trust Co., with a view to
originally passed in December, 1913, has been
removed during the past three years, thus cooperating in every way with the United
preparing the way satisfactorily for the Metro- States Government under the present conpolitan Trust Co. to apply for membership. ditions, .has filed its application for memberAt that time we believed that the Federal ship in the Federal Reserve System.
Reserve Act was by far the best financial
(Girard Trust Co., Philadelphia, Pa.)
legislation ever enacted, but that it contained
certain defects to be corrected by time and
"The Government needs every bit of the
experience.77
available resources of the country, and we
decided the question purely on the ground of
(W. R. Grace & Co., New York.)
| patriotism, and are anxious to do our share."
" I n addition to being a prompt response to
President Wilson's appeal for State banks
and trust companies to join the Federal
Reserve System, the action of W. R. Grace :
Small National-Bank Notes.
& Co.'s bank in entering the system indicates
the value of the Federal Reserve System to j The President, on October 5, signed an act
international banking activities,
| "to amend the laws relating to the denomi" In bringing their resources into the Federal
Reserve System the directors felt the affilia- | nations of circulating notes by national banks
tion would be a source of greater prestige to and to permit the issuance of notes of small
wider foreign banking operations soon to be denominations/7 The purpose of the measure
undertaken, the variety of which will be much is to relieve the recent shortage of small notes.
greater than would have been possible before I The text of the law is as follows:
the war, because of the greater diversification
| Be it enacted by the Senate and House oj
of American import and export trade.
" J . Louis Schaefer, president of the bank, \ .Representatives of the United States of America
said: 'Aside from patriotic reasons, there are ! in Congress assembled, That the act of June
distinct financial advantages to be derived | third, eighteen hundred and sixty-four, Refrom joining the system. The paper of the I vised Statutes, section fifty-one hundred and
bank will be placed in a better position and sevent3?-five, which prohibits national banks
immediately strengthened in South America.' from, being furnished with notes of less de"The institution is a New York State bank, nomination than $5, be, and it is hereby
established in June, 1915, with a capital of repealed.
SEC. 2. That that part of the act of March
$100,000, and a surplus of $25,000, to accommodate part of the banking business of the fourteenth, nineteen hundred, which provides
export, import, and shipping business of the 'that no national banking association shall,
firm. It now has a capital and surplus of after the passage of this act, be entitled to
receive from the Comptroller of the Currency,
more than $1,000,000 and correspondents in
all Central and South American countries.?; or to issue or reissue, or place in circulation




838

FEDERAL RESERVE BULLETIN.

more than, ono-third In amount of its circulating notes of the denomination of $5," be,
and it is hereby, repealed.
SEC. 3. That from and after the passage of
tliis act any national banking association, upon
compliance with the provisions of law applicable thereto, shall be entitled to receive from
the Comptroller of the Currency, or to issue or
reissue, or place in circulation notes in denomination/of SI, 32, So, §10, $20, $50, and
$100 in such proportion as to each of said denominations as the bank may elect: Provided,
however, That no bank shall, receive or have in
circulation at any one time more than 825,000
in notes of the denominations of $1 and $2.
SEC. 4. That all acts or parts of acts which
are inconsistent with this act are hereby
repealed.
Approved, October 5, 1917.
Licensing of Insurance Companies,
Authority to license enemy or ally of enemy
insurance companies or to withhold such
license has been delegated under the trading
with the enemy act by the President to Secretary McAdoo, who on October 17 requested all
State superintendents of insurance to transmit
to the companies concerned notices setting
forth the information required at the time the
application for license is made.
The information which the Secretary requires
is as follows: Name of company, country under
whose laws incorporated, address of head office
in the United States; States and Territories
in which company is entered, to do business;
financial, statement of the United States
branch: class of business done (fire, marine
casualty, etc., and direct or reinsurance);
total amount of insurance in force on September 1. 1917, showing the amount of insurance
written in each of the several States and Territories and the District of Columbia, of the
United States; total amount of reinsuring
received from other insurance companies in
the United States, as of September 1, 1917:
particulars of all contracts (class of business
and limit of hazard) reimbursing other insurance companies in the United States, showing
names of companies and dates of expiration
of such contracts and any further information
the applicant may desire to submit.




NOVEMBER 1,1917.

Applications for licenses must be made prior
to November 5, and the applications must be
acted upon within 30 days after receipt. The
Secretary has full discretion, as to granting or
refusing to grant licenses, or he may grant
them under such restrictions and for such a
time as he may determine.
Companies that have .made application for
licenses may, until their applications are acted
upon, continue to do business as provided by
the terms of the President's proclamation of
April 6, which allowed German insurancecompanies admitted, to transact business in
the various States of the United States to continue this business under certain restrictions,
as amended by the proclamation of July 13,
which withheld this privilege from companies.
transacting marine and war risk insurance.
Offering of Treasury Certificates,
Two issues of Treasury certificate::} of Indebtedness, dated October 18 and 24, 1917,
bearing 4 per cent interest, were announced
by the Secretary of the Treasury in October.
The certificates are payable November 22 and
December 15. 1917. The announcements
follow:
OCTOBER 18,

1917.

Secretary McAdoo offers for subscription at
par. through the Federal Reserve " Banks.
$300,000,000 of Treasury certificates of. indebtedness, payable on ^November 22, 1917,
with interest at the rate of 4 per cent per
annum from October 18, 1917. Subscriptions
will be received at the Federal Reserve Banks
until 3 o'clock p. in., October 15, 1917. their
loc_al time.
Payment for certificates allotted must be
made on October 18, 1917, to the Federal
Reserve Bank through which subscription
may have been made. The right is reserved
to reject any subscription and to allot less
than the amount of certificates applied for.
The certificates will be in denominations of
$1,000, $5,000, $10,000, and $100,000.
Certificates will be exempt both as to principal and interest from ail taxation now or
hereafter imposed by the United States, any
State, or any of the possessions of the United
States, or by any local taxing authority.
except (a) estate and inheritance taxes and
(6) graduated additional income taxes, com-

FEDERAL B-ESEBVE BULLETIN.

NOVEMBER 1,1917.

839

monly known as surtaxes and excess profits
Acceptances to 100 Per Cent.
and war profits taxes now or hereafter imSince the issue of the October Bulletin the
posed by the United States upon the income
or profits of individuals, partnerships, associa- following banks have been authorized to accept
tions, or corporations, and the interest on an drafts and bills of exchange up to 100 per cent
amount of certificates authorized in said act of their capital and surplus: Safety Fund
the principal of which does not exceed in the
aggregate S5.000, owned by any individual, National Bank, Fitchburg, Mass.; Guaranty
artnership, association, or corporation shall Trust Co., New York City; Liberty National
e exempt from the taxes provided for in Bank, New York City; Central National Bank,
clause (6) above.
Albany, Ala.; Central Trust Co., New York
Certificates of this series will be accepted at City; Bankers' Trust Co., New York City;
par, with adjustment of accrued interest, if
tendered on November 15, in payment
on the Hartford-Aetna National Bank, Hartford,
subscription price then payable or1 any bonds Conn.; a,nd the Equitable Trust Co., New York
"
of the second Liberty Loan subscribed for by City.
and allotted to holders of such certificates.
Interim receipts may be issued pending
Fiduciary Powers.
delivery of the definitive certificates.
The applications of the following banks for
The Treasury Department, on October 24,
permission to act under section 11-k of the
issued the following statement:
Secretary McAdoo to-day announced that Federal Reserve Act have been approved since
under the authority of the act of Congress ap- the issue of the October Bulletin:
proved September 24? 1917, for the purposes
DISTRICT NO. 1.
therein indicated, and as a convenience to
executor, administrator, and registrar of stocks
banks and trust companies and other subscrib- Trustee,
and bonds:
ers to the second Liberty Loan, and as a further
Mechanics National Bank, Worcester, Mass.
means of avoiding concentration of payments
Wareham National Bank, Wareham, Mass.
on bond subscriptions, he will receive through
DISTRICT NO. 2.
the Federal Reserve Banks subscriptions at
par and accrued interest for a limited amount Trustee, executor, administrator, and registrar of stocks
bonds:
of Treasury certificates of indebtedness. The andSecond
National Bank, Red Bank, N. J.
certificates will be payable December 15, 1917,
DISTRICT No. 3.
with interest at the rate of 4 per cent per annum
from October 24, 1917. Certificates of this Trustee, executor, administrator, and registrar of stocks
series will be accepted at par with an adjust- and bonds:
National Bank of West Grove, WTest Grove, Pa.
ment of accrued interest if tendered on November 15 or December 15 in payment on the subDISTRICT NO. 4.
scription price then payable of any bonds of Trustee, executor, administrator, and registrar of stocks
the second Liberty Loan subscribed for by and and bonds:
allotted to holders of said certificates.
j
German National Bank, Allegheny, Pittsburgh, Pa.
Allotments will be made in the order sub- |
DISTRICT NO. 5.
scriptions are received, and payments at par and
Trustee,
executor,
administrator,
and registrar of stocks
accrued interest must be made on allotment.
bonds:
The right is reserved to reject any subscription andNational
Bank of Rising Sun, Rising Sun, Md.
and to allot less than the amount applied fof, and
DISTRICT NO. 7.
to close the subscriptions at any time without
notice. Qualified depositaries will be per- Trustee, executor, administrator, and registrar of stocks
mitted to make payments by credit for certifi- and bonds:
First National Bank, Monrovia, Ind.
cates allotted to them for themselves or their
Central National Bank, Battle Creek, Mich.
customers up to the amount for which each
DISTRICT No. 8.
shall have qualified when so notified by Federal Reserve Bank, otherwise payment must be Trustee, executor, administrator, and registrar of stocks
made in the ordinary way. The certificates and bonds:
City National Bank, Metropolis, 111.
will be issued in denominations of SI,000, to
First National Bank, Mitchell, Ind.
$5,00®, $10,000, and $100,000.

E




20057—17

3

840

EEDEEAL RESEEVE BULLETIN.

DISTRICT NO. 10.

Trustee, executor, administrator, and registrar of stocks
and bonds:
Farmers National Bank, Salina, Kans.
Kegistrar of stocks and bonds:
United States National Bank. Omaha. Nebr.
DISTRICT NO. 11.

Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Carlsbad, N. Mex.
Trustee, executor, and administrator:
Campbell National Exchange Bank, Campbell, Tex.
San Angelo National Bank, San Angelo, Tex.

NOVEMBER 1,1917.

cluding amounts standing to the credit of the
Federal Reserve Agents, increased from
$610,021,560 on September 20 to $679,184,260
on October 18, the credit balances of the
banks indicating a decrease of $4,990,300 and
those of the Federal Reserve Agents an increase of $74,153,000. Owing to heavy gold
transfers from New York, changes in ownership of gold in the fund amounted to 7.42 per
cent of the obligations settled, as against
2.86 per cent for the four weeks ending September 20.
Below are given figures showing changes in
the fund between September 20 and October
18, inclusive:

GOLD SETTLEMENT FUND.
For the four weeks ending October 18, net
transfers through the gold settlement fund to
the New York bank from other Federal Reserve Banks totaled $13,100,000, while net Amounts of clearings and transfers, Federal Reserve Banks,
from Sept. 27 to Oct. 18,1917, inclusive.
debits of the New York bank in the four
(In thousands of dollars.)
weekly settlements aggregated $174,094,000.
Total
Balances
These results indicate a net movement of
l i
adjusted. Transfers.
funds to the interior of $160,994,000, Cleveland and Chicago receiving about one-third Settlement of—
Sept. 27,1917
542,078
55,269
39,400
Oct. 4,1917
512,552
40,120
of the amounts thus transferred.
65,400
Oct. 11,1917
495,374
42,302
27,500
Oct.
18,1917
480,568
52,219
8,000
Total amounts reported by all Federal
Total
2,030,572
'
189,910
140,300
Reserve Banks for the four settlements after
14,572,434 11,319,094 1,568,065.5
reported for 1917
September 20, to October 18 were $2,030,- Previously
Total since Jan. 1,1917
16,603,006 1,509,004 1,708,365.5
1708365
572,000, or on an average of $507,643,000 Total transfers Jan. 1,1917, to date... 1,708,365.5
Total for 1916, including transfers.... 5,633,966
a week, as against $492,204,000 the weekly Total for 1915, including transfers . . . 1,052,649
Total clearings and transfers,
average for the four-week period immediately
1
May 20,1915, to Oct. 18,1917. 24,997,986.5 |.
preceding. Total balances in the fund, inChanges in ownership of gold.
(In thousands of dollars.)
Total to Sept. 20,
1917.
Federal Reserve Bank of—

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




Balance to
credit Sept.
20,1917,
Balance
Oct. 18,
Decrease. Increase. plus net
deposits of |
1917.
gold since j
that date, j
S14,380
207,595
50,868
25,316
70,550
34,229.4
16,126
20,521.6
21,388
311,661.75
47,011
40,359.16
8,854
10,300
9,864
3 1,539
48,662.5 28,244.45
27,228.5
125.4
77,868
9,387

837,008

§415,428

Total..

415,428 415,428
1
2

From Sept. 20 to Oct. 18,1917, inclusive. 1

Decrease. Increase. Decrease. Increase.

S17,779
46,601 S160,994
41,947
57,672.4
31,021.6
3,793.25
63,381.16
20,956
9,908
40,524.45
14,441.4
29,232

377,257.26 377,257.26

Total changes from
May 20,1915, to
Oct. 18,1917.*

160,994

§3,399
16,631
23,443
10,500
15,455
23,022
10,656 !
11,447
12,280
14,316
19,845
160,994

§576,422

S40,407

67,499
93,993
26,626
36,843
19,510
21,311
60,942.5
41,544.5
97,713
576,422 576,422

Changes in ownership of gold during period Sept. 20 to Oct. 18,1917, equal 7.42 per cent of the obligations settled.
Total changes in ownership of gold since May 20,1915, equal 2.31 per cent of obligations settled.
3 Overdraft.

Gold-settlement fund—Summary

Federal Reserve Bank of-

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

841

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

I Balance
! laststate, ment, Sept.
I 20,1917.

! 815,180
.! 138,550
; 27,376
I 40,558.6
i 23,879.1
I 12,161.75
:
54,952.06
i 19,850
I 9,461
:
32,730.55
; 7,560
j 14,312

.•

Total

I 382,247.56

of transactions from Sept. 20 to Oct. 18, 1917, inclusive.
Gold.

drawn",

Transfers.

deposited.

$2,000 |
22,955 !
32,800 i
12,058
13,301
13,200
64,702 !
9,550 !
13,000
6,600 I
7,434.6
8,675 j

Debit.

81,200
92,000
30,740
5,728.8
9,943.5
3,700
50,109.1

$2,000
57,400
7,000
27,000
6,000
1,000
24,900

Credit,

,153,000

70,500
13,000

3,000
3,000
1,500
7,500

9,900
3,000
3,000
1,000
2,000
4,000
30,900

206,275.6 j 201,285.3 j 140,300

140,300

2,000 i
2,113.9 j

"]
1

Weekly settlements from Sept. 20 to Oct. Oct. 18.
18,1917.
1917, balance in
fund after
Total
close of
Net
Total
Net
debits.
debits.
credits;
credits. business.
S3,646
174,094
1,698

$143,666 S146,065
689,673
515,579
253,398
264,029
122,812
173,255
103,292
119,792
51,671 : 58,226
265,755 ! 310,677
144,441
136,785
41,770
55,217
96,432
109,712
51,953
63,769
73,365
69,810

3,310

6,479
189,910

2,030,572

2,030,572

§6,045
12,329
50,443
16,500
6,555
44,922
10,966
13,447
13,963
11.816
2; 924

817,779
46,601
41,947
57,672.4
31,021.6
3,793.25
63,381.16
20,956
9,908
40,524.45
14,441.4
29,232

189,910

377,257.26

Overdraft.

Federal Reserve Agents' fund—Summary

of transactions from Sept. 20 to Oct. 18, 1917.

(In thousands of dollars.)

Federal Reserve Agent a t -

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta...
Chicago...
St. Louis..

Balance
last state- Gold
Gold
ment,
withSept. 20, drawn. deposited
1917.
52,000
!....
I 25,179
20,000
11,500
22,050
86,315
13,360

Balance
Oct. 18,
1917.

§2,000

$16,940 I 824,700
3,780
24,647
200

13,300
13,200
28,690
9,300

32,939
20,000
24,800
31,470
90,358
22,460

Federal Reserve Agenta t—

Balance
last state- Gold
Balance
Gold
ment,
withOct. 18,
Sept. 20, drawn. deposited. 1917.
1917.

Minneapolis
Kansas City
Dallas
San Francisco

!
I
!

Total

So, 500
17,260
3,344
21,266

1500
600
3,500

313,000
8,600
8,930
8,6G0

-1518,500
23,360
9,674
26,366

227,774

50,167

124,320

301,927

Operations of the Federal Reserve clearing system, Sept. 16 to Oct. 15, 1917.
1

Items drawn on
banks in
Federal Reserve
city
(daily average).
I Number.

Boston
i 2,244
New York
4,745
Philadelphia
, 13,392
Cleveland
i 1,302
Richmond
1,136
Atlanta
1,200
Chicago
6,829
St. Louis
- 1,689
Minneapolis
! 2,351
KansasCity
2,163
Dallas
i 1,293
San Francisco
; 2,247
Totals:
SeDt. 16 to Oct. 15,1917. : 40,591
Aug. 16 to Sept. 15,1917 • 36,306
July 16 to Aug. 15,1917. 36,727
June 16 to July 15,1917.! 38,476
May 16 to June 15,1917.'; 37,898
Apr. 16 to May 15,1917.! 33,767
Mar. 16 to Apr. 15,19.17.! 31,162




Items drawn on
banks in district
outside Federal
Reserve city
(daily average).

Amount.

Number.

810,328,230
58,189,091
13,584,699
3,447,174
3,211,676
1,442,370
16,983,000
5,593,479
5,634,238
4,445,270
2,313,694
3,100,545

36,056
37,074
20,014
17,754
17,177
10,254
16,937
9,612
12,213
13,485
12,276
10,083

128,271,466
100,331,694
98,075,919
109,722,256
97,322,883
87,370,859
60,288.002

212,935
182,191
17o,625
182,622
179,193
171,093
168,607

Items drawn on
banks in
other districts
(daily average).

1
Amount. ! Numbcr. I Amount.
:$4,460,551
! 8,027,042
| 2,952,628
! 9,338,330
I 6,020,660
i 2,417,477
I 3,901,000 i
! 2,128,025 |
i 1,186,665
! 3,544,975
! 965,046
' 2,535,805

3,431
17,455
9,376
1,252
1,902
1,495
1,530
165
756
675
592
1,587

135,091,833 I
12,373,613 j
10,029,282 !
1,879,427
3,892,236
1,780,165
543,000
2,036,901
1,367,446
4,237,086 .
1,242,750 I
510,842

Total (exclusive
of items drawn
on Treasurer of
United States),
(daily average).
Number.
41,731
59.274
42;782
20,308
20,215
12,949
25,296
11,466
15,320
16,323
14,161
13,917

Amount.

Items drawn on
Treasurer of
United States
(daily average).
Number.

Num- Number of ber of
mem- non-i
ber
membanks
ber
in
banks
i dis- on par
Amount. trict.
list.

;S19,878,614
2,262 SI, 367,877
396
! 78,589,746 13,267 6,472,265 ! 631
! 28,566,609 1,325
634
621,477
i 14,664,931
401
754
123,889
j 13,124,572
404
523
144,596
' 5,640,012
665
381
378,096
21,427,000
4,401 1,141,000 1,062
9,756,405
1,859
473
719,081
8,188,349
293
762
55,042
12,227,331
580
955
323,000
4,521,490
127
633
83,772
6,147,192
1,213 2,088,471
543

|47,476,204 40,216 44,984,581 293,742 :220,732,251 26,797 |13,518,566
141,323,621 32,564 |40,648,168 251,061 182,303,483 23,492 111,006,515
140,353,278 31,273 ;37,981,022 243,625 176,410,219 19,533
"" """ 9,701,569
141,004,720 33,941 146,762,698 255,039 197,489,674 ! 19,100 11,637.899
138,599,461 33,150 '38,314,393 250,241 174,236,737 16,344
^ ~" I 4,414,508
138,473,163 33,428 ^36,836,934 238,288 il60,680,956 15,925 I 3,597,865
32,666,959 32,008 34,693,542 231,777 1127,648,503 12,582 I 2,643,408

7,747
7,718 l
7,683 i
7,668
7,651 ;
7634
7,634
7,625

250
343
251
567
267
347
2,082
1,004
1,017
1,526
220
1,178
9,052
8,934
8,837
8,805
8,789
8,926
8,607

842

FEDERAL RESERVE B U L L E T I N .

Movement of the Price of Silver.

NOVEMBER 1,1917.

Annual average price of a fine ounce of silver 1882-1914,
based upon London quotations at par rate of exchange;
also bullion value of Sll\ grains of pure silver (contents of
1 silver dollar) at the average annual prices of silver quoted.

Together with the general rise of commodity
prices since the beginning of the war, there has
[Data furnished by the Director of the Mint.]
been a remarkable advance in the price of silver
which set in about the end of 1915, continued
Average
Value of
steadily during 1916 and the first half of 1917,
annual
pure silver
Year.
price of
in a
and assumed speculative proportions in August
ounce of
silver
fine silver.
dollar.
and September of the present year, as may be
seen from the following table and accompany- 1882.
SI. 13562
$0.87833
1883.
1.10874
.85754
ing diagram illustrating the monthly move- 1884.
1.11068
.85904
1885.
1.06510
.82379
ment of the price of silver.
1886.
.99467
. 76931
1887.
.97946
.
75755
The monthly averages used are based on 188S.
.93974
.72683
1889.
.93511
.72325
daily silver quotations in London reduced to 1890.
1.04634
.80927
1891.
.98800
. 76416
their American equivalents at the nominal 1892.
.87145
. 67401
1893.
.78030
.60351
rate of $4.8665 per £1, and to that extent are 1894.
.63479
.49097
.65406
.50587
slightly overstated. Figures in the second 1895.
1896.
.67565
.52257
1897.
.60483
.46745
column, represented by the lower curve in the 1898.,
.59010
.45640
1899.
.60154
.46525
diagram, indicate the effect of the changes in 1900.
.62007
.47958
.59595
.46093
the price unit on the value of the pure silver 1901.
1902.
.52795
.40835
1903.
.54257
.41960
contents in the American silver dollar.
1904.
.57876
.44763
.61027
.47200
On September 25, the London price of silver 1905..
1906..
.67689
-.52353
1907..
.66152
.51164
stood at 55d., which is equivalent to $1.20566 1908..
. 53490
.41371
1909..
.52016
per fine ounce (converted at the nominal rate 1910..
.46231
.54077
.41825
.53928
of $4.8665 per £). On the following day the 1911..
.41709
1912..
.61470
.47543
.60458
downward price movement set in which con- 1913..
.46769
1914.
.55312
.42810
1915.
.51892
tinued steadily until October 23, when silver 1916.
.40135
.68647
.53094
was quoted in London at $0.91795 per fine i
ounce. During the last week of October silver
prices resumed their upward course, the quota- Average price of a fine ounce of silver for each month during
tion for October 30, being $1.00837. This the calendar years 1915 to 1917, based upon London quotations at par rates of exchange; also bullion value of S71\
movement, of course, affects exchange quota- grains of pure silver (contents of 1 silver dollar) at the avertions on silver standard countries, notably age monthly prices of pure silver.
the China exchanges, New York quotations of
[Data furnished b y the Director of the Mint.]
Shanghai cables, for instance, declining from
$1.03) on October 1 to $0.92 on October 23
Average monthly price of
Value of pure silver in a
ounce of fine silver.
silver dollar.
and rising to $1.07 on October 30.
Months.
For comparative purposes the yearly changes
1915
1916
1917
1915
1916
1917
in the price of silver and in the value of the
SO. 48678 80.59099 $0.80412 $0.38423 SO. 45710 $0.62194
pure silver contents of an American dollar have January
.45736
.63980
.50007 .59133 .82721 .38677
February
.46790
.61754
.51823 .60496
.79844
March
.40082
been traced back from 1916 to 1882 in a sepa- April
.51986
.62727
.51925 .67215 .81102
.40161
.60319
.64321
.51706
May
. 77989 . 83163 .39991
rate table and diagram. A separate table has June
.52662
.66293
.51035 .68088 .85712
.39472
.50762
.67996
.49556
.
87913
July
.65632
.38328
also been added showing! the ratio of silver to August
.73019
.49973 .69040
.94409
.38651 .53398
.55277
.86597
.51761
.71469 1.11965
.40034
gold and the value of 371£ grains of silver, i. e., September
.52441 .70942
October
.40559 .54869
.57893
.54986
November
.74852
.40528
the pure silver contents in an American silver December
.61732
.57812 .79815
.44714
dollar, at various prices of silver.




843

FEDERAL RESERVE BULLETIN.

NOVEMBER 1. 1917.

Ratio of silve r to gold and value of the pure silver in a silver dollar1 at various prices of silver.
Price of
silver per
line onhce.




Ratio of
silver to
gold.

§0.50
.51
.52
.53
.54
.55
.50
.57
.58
.59
.60
.01
.62

41.34
40.53
39. 75
39.00
38.28
37.58
30.91
30.27
35.64
35.04
34.45
33.89
33.34

.63
.04
.65
.60
.67
.68
.09
.70
.71
.72
.73
.74
.75
.70

32.81
32.30
31.80
31.32
30.85
30.40
29.90
29.53
29.12
28. 71
28.32
27.93
27.50
27.20

Value of pure
silver in a
silver doliar.

Price of
silver per
fine ounce.

m. 387
.394
. 402
.410
.418
. 425
.433
.441
.449
.456
.4(>4
. 472
.480
.487
.495
.503
.510
.518
.520
.534
.541
.549
.557
.565
.572
.580
.588

SO. 77
.78
. 79
.80
.81
.82
.83
.84
.85
.80
.87
i
i
i
,
'
'•
i
;
!

=•
i
.
i

.90
.91
.92
.93
.94
.95
.96
.97
.98
.99
1.00
1.01
1.02
1.03

Ratio of
silver to
gold.
20.85
20.51
20.17
25.84
25.52
25.21
24.91
24.01
24.32
24.04
23.76
23.49
23.23
22.97
22.72
22.47
22.23
21.99
21. 76
21.53
21.31
21.09
20.88
20.67
20.47
20.27
20.07

Value of pure
silver in a
silver dollar.
30.596
.603
.611
. 619
.626
. 634
.642
.650
. 657
.665
.673
.681
.088
. 690
.704
.712
. 719
.727
. 735
.742
.750
. 758
. 7c0
. 773
.781
.789
.797

i Parity at United States coinage ratio.

Price of
silver per
fine ounce.

Ratio of
silver to
gold.

31.04

1.05
LOS
1.07
1.08
1.09
1.10
1.11
1.12
1.13
1.14
1.15
1.10
1.17
1.18
1.19
1.20
1.21
1.22
1.23
1.24
1.25
1.28
1.27
1.28
1.29
* 1.2929

i

19.88
19.69
19.50
19.32
19.14
18.96
18. 79
18.62
18. 46
18.29
18.13
17.97
17.82
17. 07
17.52
17.37
17.23
17.08
16.94
10.80
10. 67
10.54
16.41
16.28
16.15
16.02
15.988

Value of pure
silver in a
silver dollar.
$0.804
.812
.820
.828
.835
.843
.851
. 800
.874
.897
.905
.913
.920
.928
. 936
.944
.951
.959
. 967
.975
.982
.990
.998
.100

844




FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

ANNUAL PRICE OFSILVER- (CURVE !),AND
VALUE OF PURE SILVER IN A SILVER DOLLAR (CURyEZ).

NOVEMBER .1, 19 IT.




FEDERAL RESERVE BULLETIN

MONTHLY PRICE Or SILVER ( CURVE !>, AMD
VALUE Or PURE SILVER IN A SILVER DOLLAR CCURVE2).
1915-1917

845

846

FEDERAL RESERVE BULLETIN.

Allotment of United States certificates.

Amount and Distribution of United States Certificates of Indebtedness.
In addition to an issue at the end of March
of 50 millions of United States certificates
of indebtedness which was taken and held to
maturity on June 29, by the Federal Reserve
Banks, the Treasury Department up to October 23 allotted to the Reserve Banks for distribution among subscribers nine other issues
totaling $2,503,402,000. On October 24 another
issue of $685,296,000 was allotted:
Date of issue.
1., Apr. 25.
2., May 10..
3., May 25.
4.. June 8..
5. Aug.
Aug". 9.W.'..'.'.'....'.
28..
. Sept. 17..
, Sept. 26..
, Oct. 18..

Date oi maturity.
June 30.
July 17..
July 30..
.do.
\\ Nov.
NovVIo
30....
Dec. 15
....do
Nov. 22

Amount.
$268,205,000
200,000,000
200,000,000
200,000,000
300,000,000
250,000,000
300,000.000
400,000;000
385,197,000

NOVEMBER 1,1917.

A mounts
allotted.

Federal Reserve Bank.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

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

Per cent
of total.

8166,401,000
1,384,922,000
118,932,000
214,942,000
42,250,000
39,557,000
198,149,000
78,417,000
38,866,000
66,161,000
50,355,000
109,450,000

6.64
55.33
4.75
8.59
1.69
1.58
7.92
2.93
1.56
2.64
2.01
4.37

| 2,503,402,000

100.0

=
"

'•
i
:
'

Movement of Reserves, Deposits, and Federal
Reserve Circulation During 1917.

In continuation of similar figures and diagram of earning assets shown on pages f 58i
759 of the October number of the Federal
!
!
Reserve Bulletin, there are presented below
Total
2,503,402,000 figures and diagrams showing the weekly move685,296,000
10. Oct. 24.
j Dec. 15
ment of reserves, of the several classes of dei posits held by the Federal Reserve Banks,
In the following table are shown the
1 and of their outstanding Federal Reserve
amounts and per cent shares allotted to each note circulation. The banks' reserves are
Federal Reserve Bank under the first nine issues. shown uniformly for the entire year in acThe relative contributions of the several Fed- cordance with the amended act, i. e., inclusive
eral Reserve districts under these issues are of the gold held by the Federal Reserve
illustrated in the accompanying diagram.
Agents against Federal Reserve notes. The
latter total is composed of the amounts held
with the Federal Reserve Board ("Agents' gold
in settlement fund") and of other gold,
including gold in the agents/ vaults and
amounts standing to their credit in the 5 per
cent gold redemption fund. The reserve held
by the banks is distributed under the following
captions: (a) Gold held with the Federal
Reserve Board—i. e., in the gold settlement
fund; (b) other gold, including amounts of
gold in vault, held with foreign agencies and
standing to the banks' credit in the 5 per cent
gold redemption fund; and (c) other reserve
cash in vault. The volume of bank deposits
held by the Federal Reserve Banks shows a
fairly steady increase as a result of the continuous increase in membership, the growth
of the deposits of the member banks themselves,
and the opening of clearing accounts by non-




847

FEDEBAL BESEBVE BULLETIN.

NOVIC&f BEB 1, 1 9 1 7 .

member bank*. The movement of Government deposits, of course, is subject to the
vicissitudes of Government financing, the
largest balance being shown on June 22, the
week following the consummation of the first
Liberty Loan. Figures of Federal Keserve
notes in circulation denote amounts in actual
circulation outei.de the issuing Federal Reserve

Banks; i. c . amounts received by the banks
from the Federal Reserve Agents less amounts
on hand or in process'of "redemption". Tliese
figures also show a steady increase, the total
in circulation on October 11-12 being over 500
millions larger than tit the beginning of the
year.

Movem,ent of reserves of all Federal Reserve Bo?.ks during the ctiltwdar year 1917.
[In thousands of dollars.]

Date.

2

3

Banks'
gold in
settlement
fund.

Agents'
gold in
settlement
fund.

Total
gold in
"settlement
fund.

192,001
206,541
212,051
21.3,771
212,961
212.981
216', 221
213,861
212,031
205,561
201,661
209,281
200,061
200,125
193.271
208', 830
207,920
218,910
221,759
187,969
183,590
187,556
205,886
221,970
267,910
345,845
371,380
388,353
403,821
405,739
438,153
2 ,
409,852
410,502
397,067
383,937
395,853
384,646
373,387
342,337
334,787
321,778

99,610
97,510
95,710
93,710
95,050
95,250
94,120
96,560
97,800
101,380
104,620
115,330
120.660
126; 180
143,900
147,700
148,030
153,570
156,270
163,080
168,910
172,290
177,ISO
179,730
178,830
180,780
187,790
187,030
182,730
182,294
182,653
183,093
189,744
193,741
199,041
213,420
221,336
228,674
253,554
261,543
276,083

Other
gold
held bybanks.

3 + 4.

Other
gold
held by
agents.

Total
sold
reserves.

Other
cash
Total
reserve. reserves.

742,062
775,664
773,484
791,245
795,834
777,609
789,662
803,324
836,122
866,503
897,926
912,055
938,046
943,552
949,870
958,171
945,141
990,786
999,610
989.303
977,371
956,803
1,013,818
1,050,890
1,212,018
1,294,566
1,317,703
1,353,371
1,380,020
1,382,263
1,367,673
1,360,942
1,374,583
1.372,219
i; 353,498
1,364,783
1,374,949
1,402,317
1,408,170
1,433,477
1,447,445

16,280
16,769
10,338
17,579
12,185
10,633
7,609
15,249
9,971
19,113
16,176
10,665
9.282
19,110
21,136
24,462
30,340
39,415
38,149
27,442

1917.
Jan.

S
12
18-19
36
Feb. 2
9
16...23
Mar. 2
©
16..
23
30.
A-or. 5-6
13
20
27
May 4
11
18
25
Julie) 1
8
15
32
39
Julv Q
13....
20
2?
AiSs'- 3
1
0

Ser.

:
..:
i
|
:
!

i
i
!
|
;
|
I
-|

j
!
j
i
I
i
\
!
1
4

0

9

8

5

3i

21
23
Oct.. 5
11-12




!
...I

20057—17-

291,611
304,051
307,761
307,481
308,011
308,211
310,341
310,421
309,831
306,941
306,281
324,611
320,721
326,305
342,171
354,530
355,950
372.480
378;029
351,049
352,500
359,846
383,086
401,700
446,740
526,825
559,170
575,383
580,551
588,033
620,808
592,945
600,246
590,808
582,978
609,273
605,982
602,061
595,891
598,330
597,861

268,769
294,611
288,292
304,154
308,799
275,928
276,171
283,277
306,510
332,509
357,657
353,255
377,317
364,977
340,803
332,803
314,316
338,787
339,528
353,023
337,170
302,278
332,731
368,978
553,343
546,028
532,608
536,680
552,310
522,331
461,675
475,623
461,493
488,616
476,376
474,151
469,833
492,921
507,906
543,579
544,933

580,380
598,662
596,053
811,635 j
616.810 I
584;139
586,512
593,698
616,341
839,450
663.938
677,866
; 282
682,974
687,333
670,266
711,267
717,557
704,072
689,670
662,124
715,797
770,678
1,000,083
1,072.653
l,09i;77S
1,112,063
1,138,861
1". 110.364
I', 082; 481
1.068,568
1,061,739
1,077,424
1,059,354
1,083,424
1,075,815
1,094.982
1,103', 797
1,139,909
1,142,794

181. CS2
177; 002
177,431
179,610
179,024
193.470
203; 150
209,826
219,781
227,053
233,S88
234,189
240,008
252,270
266.896
270;838
274; 875
279,519 j
282,053
285,231
'287,701
294,879
298,021
280,212
211,935
221,913
225,925
241,308
241,159
251,899
285,192
302,374
312,844
294,795
294,144
281,359
299,134
307,335
304,673
298,568
304,651

36,624
37,693
24,518
35,680
39,840
38,314
47,545
50,301
51,789
53,709
53,117
52,906
52,550
52,610
50,608
51,085
49,934
49,089
48,138
48,113

758,242
792,433
783,822
808,824
808,019
788,242
797,271
818,573
846,093
885,616
914,102
922,720
947,328
962,662
971,006
982, S33
975,481
1,030,201
1,035,759
1,018,745
1,014,263
993,427
1,051,511
1,075,408
1,247,698
1,334,406
1,356,017
1,400,916
1,430,321
1,414,052
1,421,382
1,424,059
1,427,489
1,424,769
1,406,108
1,415,391
1,428,034
1,452.251
1,457; 559
1,486,715
1,495,558

848

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

MOVEMENT OF RESERVES OF ALL FEDERAL RESERVE BANKS
DURING THE CALENDAR YEAR 1917, IN MILLIONS OF DOLLARS.




C u r v e I: J&ajticsGold

S

^

i

CurveZ:
Carved:

Jo/^d6aldS^scrFea^^d^ws^rM^dolilh
W£fo6fej3L%ban£cD &ta credit of SuILAgents.
Curved* ^^^ld.^^ery^^^^A^^^r^^7i-.J
Carve S: JotoiLJlaservesjwek Stow, lK&J&tes,cGc.

JJL.1-.
' S *>'

£3 -&?

LJL.L1
.-2

A* A->

LJ \JLJ.O

Z% 30 ? ft ft tt i

I
:;i

849

FEDERAL BESERVE BULLETIN.

NOVEMBER 1.1917.

KViMn5w:*M»HMCffi)ttTO»aM^

MOVEMENT OF DEPOSITS AND IT ft NOTE CIRCULATION
OF ALL FEDERAL RESERVE BANKS
DURING THE CALENDAR YEAR l9IFt IN MILLIONS OFDOLLARS.
Qirve /.• Government
Carve Z.Curved-

C.-/H—u.J-.-;~ , . .

2)efw$i£$.
3ik

. . . .

zi:
..:—|—}. i.._j—|—:._..] =—{—j—47—j—=—II—j. ...L._.|—,—LZC
" •™i""i";--';--~ • "~^~"t:rzr:::!z:j:iiZjZiZ:lzlz,




A.J^L

LJlPJ f J L ^ ^ L ^ ^

850

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

Movement of deposits and Federal Reserve note circulation of all Federal Reserve Banks during the calender year 1917.
[In thousands of dollars.]
!

Date.

Total Gov-

Nonmem- ernment
Total
bank and bank
(columns 1 ber
clearing
deposits
| and 2).
deposits. (columns 3

II

Govern- j
ment j
deposits. I

and 4).

i
I

1917.

Jan.
Feb.

Mar.

Apr.

May

5
12
18-19..
2...
9...
16...
23...
2...
9...
16...
23...
30...
5-6.
13...
20...
27...
4...,

is!!!
25...
June 1

July

Aug.

Sept.

Oct.

15
22
29
6
13....
20....
27
3
10....,
17
24
31
7
14....
21
28
5
11-12.




Federal Re- Total
serve notes (columns
5
in actual
circulation. and 6).

25,566
27,759
28,410
25,607
23,333 |
15,525 !
10,851 !
13,407 i
14,162 j
12,401
18,594
19,702
20,567
46,461
42,247
41,988
99,689
107,868
242,421 I
187,127
198,463
98,478
228,125
262,581
495,807
300,966
143,626
300,872
184,631
143,032
56,765
140,447
110,110
59,972
154,358
39,926
21,602
25,030
71,289
86,285
74,167

656,422
680,586
669,874
687,841
689,878
678.170
68S',591
692,475
708,893
720,488
726,104
711,117
720,411
758,219
741,542
742,584
719,785
743,143
740,726
748,499
813,326
721,146
775,771
870,734
806,209
1,033,460
1,112,347
1,019,672
1,164,995
1,135,456
1,192,887
1,101,614
1,130,817
1,121,129
1,069,804
1,138,542
1,139,291
1,151,704
1,136,930
1,148,887
1,265,309

681,988
708,345
698,284
713,448
713,211
693,695
699,442
705,882
723,055
732,889
744,698
730,819
740,978
804.680
783; 789
784,572
819,474
851,011
983,147
935,626
1,011,789
817,624
1,003,896
1,133,315
1,302,016
1,334; 426
1,255,973
1,320,544
1,349,626
1,278,488
1,249,652
1,242,061
1,240/927
1,181,101
1,224,162
1,178,468
1,160,893
1,176,734
1,208,219
1,235,172
1,339,476

5,000
6,847
4,767
8,547
12,269
10,274
11,637
32,933
28,903
52,339
50,621
50,779
67,433
94,029
51,377

681,988
708,345
698,284
713,448
713,211
693,695
699,442
705,882
723,055
732,889
744,698
730,819
740,978
804,680
783,789
784,572
819,474
851,011
983,147
935,626
1,011,789
817,624
1.003,896
1,133,315
1,302,016
1,334,426
1,260,973
1,327,391
1,354,393
1,287,035
1,261,921
1,252,335
1,252,564
1,214,034
1.253/065
I', 230,807
1,211,514
1,227,513
1,275,652
1,329.201
1,390; 853

272,873
268,168
262,967
259,768
260,030
278,52i!
291,839
303,171
314,258
326,612
336,061
346,804
357,765
376,510
401,809
414,357
420,509
428,502
438,218
446,501
454,402
464,865
481,469
491,615
499,721
508,807
527,459
532,508
534,226
534,015
540,785
549,244
558,782
573,049
587.915
62l',299
644,567
670,246
700,212
740,916
779,885

964,861
976,513
961,251
973,216
973,241
972,218
991,281
1,009,053
1,037,313
1,059,501
1,080,759
1,077,623
1,098,743
1,181,190
1,185,598
1,198,929
1,239,983
1,279,513
1,421,365
1,382,127
1,466,191
1,282,489
1,485,365
1,624,930
1,801,737
1,843,233
1,788,432
1,859,899
1,888,619
1,821,050
1,802,706
1,801,579
1,811,346
1,787,083
1,840,980
1,852,106
1,856,081
1,897,759
1,975,864
2,070,117
2,170,738

1,1917.

FEDERAL RESERVE BULLETIN.

Trading With the Enemy Act

851

(c) Such other individuals, or body or class of individuals, as may be natives, citizens, or subjects of any
Below is reprinted the text of the so-called nation which is an ally of a nation with which the United
''Tr&dmg with, tlie enemy act/' which became States is at war, other than citizens of the United States,
k/w on October 6. There is also reprinted wherever resident or wherever doing business, as the
President, if he shall find the safety of the United States
the text of the Executive Order prescribing or
the successful prosecution of the war shall so require,
regulations for carrying out the provisions oi may, by proclamation, include within the term "ally
the act.
of enemy."
[Habile—No. 91—tioth Congress. H. R. 4960.]
The word "person," as used herein, shall be deemed
An act to de&ne, regulate, and punish trading with. to mean an individual, partnership, association, company,
or other unincorporated body of individuals, or corporathe enemy, and for other purposes.
Be it enacted by the Senate and House of Representatives tion or body politic.
5
of Ghe United Stales of America in Congress assembled, ThatThe words "United States, ' as used herein, shall be
deemed
to
mean
all
land
and
water,
continental or insular,
this act shall be known as the "Trading with the enemy
in any way within the jurisdiction of the United States
act"
Sue. 2. That the word "enemy," as used herein,, shall. or occupied by the military or naval forces thereof.
The words "the beginning of the war," as used herein,
bo deemed to mean, for the purposes of such trading and
shall be deemed to mean midnight ending the day on
of this act—
(a) Any individual, partnership, or other body of which Congress has declared or shall declare war or the
individuals, of any nationality, resident within the ter- existence of a state of war.
The words "end of the war," as used herein, shall be
ritory (including that occupied by the military and naval
forces) of any nation with which the United States is at deemed to mean the date of proclamation of exchange of
war, or resident outside the United States and doing ratifications of the treaty of peace, unless the President
business within such territory, and any corporation incor- shall, by proclamation, declare a prior date, in which case
porated within such territory of any nation with which the date so proclaimed shall be deemed to be the "end^o!
the United States is at war or incorporated within any the war'' within the meaning of this act.
country other than the United States and doing business
The words "bank or banks," as used herein, shall be
within such territory.
deemed to mean and include National banks, State banks,
(6) The' Government of any nation with which the trust companies, or other banks or banking associations
United States is at war, or any political or municipal doing business under the laws of the United States? or^of
subdivision thereof, or any officer, official, agent, or any State of the United States.
The words "to trade," as used herein, shall be deemed[to
agency thereof.
(c) Such other individuals, or body or class of individ- mean—
(a) Pay, satisfy, compromise, or give security^for|the
uals, as may be natives, citizens, or subjects of any nation
with which the United States is at war, other than citizens payment or satisfaction of any debt or obligation; p ; f§T
(6) Draw, accept, pay, present for acceptanee^orjfpayof the United States, wherever resident or wherever doing
business, as the President, if he shall find the safety of ment, or indorse any negotiable instrument^or|ehoselin
the tJaited States or the successful prosecution of the action.^
(c) Enter into, carry on, complete, or perform any conwar shall so require, may, by proclamation, include
tract, agreement, or obligation.
within the term "enemy."
(d) Buy or sell, loan or extend credit, trade in, de&l
The words "ally of enemy," as used herein, shall be
with, exchange, transmit, transfer, assign, or otherwise disdeemed to mean—
(a) Any individual, partnership, or other body of indi- pose of, or receive a-uy form of property.
(e) To have any form of business or commercial comviduals, of any nationality, resident within the territory
(including that occupied by the military and naval forces) munication or intercourse with.
SEC. 3. That it shall be unlawful—
of-any nation which is an ally of a nation with which the
(a) For any person in the United States, except with the
United States is at war, or resident outside the United
States and doing business within such territory, and any license of the President, granted to such person, or to the
corporation incorporated within such territory of such enemy, or ally of enemy, as provided in this act, to trade,
ally nation, or incorporated within any country other or attempt to trade, either directly or indirectly, with, to,
than the United States and doing business within such or from, or for, or on account of, or on behalf of, or for the
benefit of, any other person, with knowledge^ or reasonable
territory.
(h) The Government of any nation which is an ally of cause to believe that such other person is an enemy or ally
a nation with which the United States is at war, or any of enemy, or is conducting or taking part in such trade,
political or municipal subdivision of such ally nation, or directly or indirectly, for, or on account of, or on behalf^of,
or for the benefit of, an enemy or ally of enemy.
any officer, official, agent, or agency thereof.




852

FEDERAL RESERVE BULLETIN,

(6) For any person, except with the license of the
President, to transport or attempt to transport into or from
the United States, or for any owner, master, or other
person in charge of a vessel of American registry to transport or attempt to transport from any place to any other
place, any subject or citizen of an enemy or ally of enemy
nation, with knowledge or reasonable cause to believe that
the person transported or attempted to be transported is
such subject or citizen.
(c) For any person (other than a person in the service of
the United States Government or of the Government of
any nation, except that of an enemy or ally of enemy nation, and other than such persons or classes of persons as
may be exempted hereunder by the President or by such
person as he may direct), to send, or take out of, or bring
into, or attempt to send, or take out of, or bring into the
United States, any letter or other writing or tangible form
of communication, except in the regular course of the mail;
and it shall be unlawful for any person to send, take, or
transmit, or attempt to send, take, or transmit out of the
United States, any letter or other writing, book, map, plan,
or other paper, picture, or any telegram, cablegram, or
wireless message, or other form of communication intended
for or to be delivered, directly or indirectly, to an enemy
or ally of enemy: Provided, however, That any person may
send, take, or transmit out of the United States anything
herein forbidden if he shall first submit the same to the
President, or to such officer as the President may direct,
and shall obtain the license or consent of the President,
under such rules and regulations, and with such exemptions, as shall be prescribed by the President.
(d) Whenever, during the present war, the President
shall deem that the public safety demands it, he may cause
to be censored under such rules and regulations as he may
from time to time establish, communications by mail,
cable, radio, or other means of transmission passing between the United States and any foreign country he may
from time to time specify, or which may be carried by any
vessel or other means of transportation touching at any
port, place, or territory of the United States and bound to
or from any foreign country. Any person who willfully
evades or attempts to evade the submission of any such
communication to such censorship or Yvillfully uses or
attempts to use any code or other device for the purpose
of concealing from such censorship the intended meaning
of such communication shall be punished as provided in
section sixteen of this act.
SEC. 4. (a) Every enemy or ally of enemy insurance or
reinsurance company, and every enemy or ally of enemy,
doing business within the United States through an agency
or branch office, or otherwise, may, within thirty days after
the passage of this act, apply to the President for a license
to continue to do business; and, within thirty days after
such application, the President may enter an order either
granting or refusing to grant such license. The license, if
granted, may be temporary or otherwise, and for such
period of time, and may contain such provisions and con-




NOVEMBER 1,1917.

ditions regulating the business, agencies, managers and
trustees and the control and disposition of the funds of the
company, or of such enemy or ally of enemy, as the
President shall deem necessary for the safety of the United
States; and any license granted hereunder may be revoked
or regranted or renewed in such manner and at such times
as the President shall determine: Provided, however, That
reasonable notice of his intent to refuse to grant a license or
to revoke a license granted to any reinsurance company
shall be given by him to all insurance companies incorporated within the United States and known to the President to be doing business with such reinsurance company:
Provided further, That no insurance company, organized
within the United States, shall be obligated to continue
any existing contract, entered into prior to the beginning
of the war, with any enemy or ally of enemy insurance or
reinsurance company, but any such company may abrogate and cancel any such contract by serving thirty days •
notice in writing upon the President of its election to
abrogate such contract.
For a period of thirty days after the passage of this act,
and further pending the entry of such order by the President, after application made by any enemy or ally of
enemy insurance or reinsurance company, within such
thirty days as above provided, the provisions of the President's proclamation of April sixth, nineteen hundred and
seventeen, relative to agencies in the United States of
certain insurance companies, as modified by the provisions of the President's proclamation of July thirteenth,
nineteen hundred and seventeen, relative to marine and
war-risk insurance, shall remain in full force and effect so
far as it applies to such German insurance companies, and
the conditions of said proclamation of April sixth, nineteen
hundred and seventeen, as modified by said proclamation
of July thirteenth, nineteen hundred and seventeen, shall
also during said period of thirty days after the passage of
this act, and pending the order of the President as herein
provided, apply to any enemy or ally of enemy insurance
or reinsurance company, anything in this act to the contrary notwithstanding. It shall be unlawful for any
enemy or ally of enemy insurance or reinsurance company,
to whom license is granted, to transmit out of the United
States any funds belonging to or held for the benefit of
such company or to use any such funds as the basis for
the establishment directly or indirectly of any credit
within or outside of the United States to, or for the benefit
of, or on behalf of, or on account of, an enemy or ally of
enemy.
For a period of thirty days after the passage of this act,
and further pending the entry of such order by the President, after application made within such thirty days by
any enemy or ally of enemy, other than an insurance or
reinsurance company as above provided, it shall be lawful
for such enemy or ally of enemy to continue to do business
in this country and for any person to trade with, to, from,
for, on account of, on behalf of, or for the benefit of such
enemy or ally of enemy, anything in this act to the con-

NOVEMBER 1,1917.

FEDERAL BESERVE BULLETIN.

858

trary notwithstanding: Provided, however, That the pro- licenses, special or general, temporary or otherwise, and
visions of sections three and sixteen hereof shall apply for such period of time and containing such provisions
to any act or attempted act of transmission or transfer of and conditions as he shall prescribe, to any person or class
money or other property out of the United States and to of persons to do business as provided in subsection (a) of
the use or attempted use of such money or property as the section four hereof, and to perform any act made unlawful
basis for the establishment of any credit within or outside without such license in section three hereof, and to file
of the United States to, or for the benefit of, or on behalf and prosecute applications under subsection (6) of section
ten hereof; and he may revoke or renew such licenses from
of, or on account of, an enemy or ally of enemy.
If no license is applied for within thirty days after the time to time, if he shall be of opinion that such grant or
passage of this act, or if a license shall be refused to any revocation or renewal shall be compatible with the safety
enemy or ally of enemy, whether insurance or reinsurance of the United States and with the successful prosecution
company, or other person, making application, or if any of the war; and he may make such rules and regulations,
license granted shall be revoked by the President, the not inconsistent with law, as may be necessary and proper
provisions of sections three and sixteen hereof shall forth- to carry out the provisions of this act; and the President
with apply to all trade or to any attempt to trade with, to, may exercise any power or authority conferred by this
from, for, by, on account of, or on behalf of, or for the bene- act through such officer or officers as he shall direct.
fit of such company or other person: Provided, however, If the President shall have reasonable cause to believe
That after such refusal or revocation, anything in this act that any act is about to be performed in violation of section
to the contrary notwithstanding, it shall be lawful for a three hereof he shall have authority to order the postponepolicyholder or for an insurance company, not an enemy ment of the performance of such act for a period not exor ally of enemy, holding insurance or having effected rein- ceeding ninety days, pending investigation of the facts by
surance in or with such enemy or ally of enemy insurance him.
or reinsurance company, to receive payment of, and for
(b) That the President may investigate, regulate, or
such enemy or ally of enemy insurance or reinsurance prohibit, under such rules and regulations as he may
company to pay any premium, return premium, claim, prescribe, by means of licenses or otherwise, any transmoney, security, or other property due or which may actions in foreign exchange, export or earmarkings of gold
become due on or in respect to such insurance or reinsur- or silver coin or bullion or currency, transfers of credit in
ance in force at the date of such refusal or revocation of any form (other than credits, relating solely to transaclicense; and nothing in this act shall vitiate or nullify then tions to be executed wholly within the United States),
existing policies or contracts of insurance or reinsurance, and transfers of evidences of indebtedness or of the owneror the conditions thereof; and any such policyholder or ship of property between the United States and any
insurance company, not an enemy or ally of enemy, hav- foreign country, whether enemy, ally of enemy or othering any claim to or upon money or other property of the wise, or between residents of one or more foreign counenemy or ally of enemy insurance or reinsurance company tries, by any person within the United States: and he
in the custody or control of the alien property custodian, may require any such person engaged in any such transhereinafter provided for, or of the Treasurer of the United action to furnish, under oath, complete information relaStates, may make application for the payment thereof and tive thereto, including- the production of any books of
may institute suit as provided in section nine hereof.
account, contracts, letters or other papers, in connection
(6) That, during the present war, no enemy, or ally of therewith in the custody or control of such person, either
enemy, and no partnership of which he is a member or was before or after such transaction is completed.
SEC. 6. That the President is authorized to appoint,
a member at the beginning of the war, shall for any purpose assume or use any name other than that by which prescribe the duties of, and fix the salary (not to exceed
such enemy or partnership was ordinarily known at the $5,000 per annum) of an official to be known as the alien
beginning of the war, except under license from the Presi- property custodian, who shall be empowered to receive
all money and property in the United States due or
dent.
Whenever, during the present war, in the opinion of the belonging to an enemy or ally of enemy, which may be
President the public safety or public interest requires, paid, conveyed, transferred, assigned, or delivered to said
the President may prohibit any or all foreign insurance custodian under the provisions of this act; and to hold,
companies from doing business in the United States, or administer, and account for the same under the general
the President may license such company or companies to direction of the President and as provided in this act.
The alien property custodian shall give such bond or
do business upon such terms as he may deem proper.
SEC. 5. (a) That the President, if he shall find it com- bonds and in such form and amount and with such securpatible with the safety of the United States and with the ity as the President shall prescribe. The President may
successful prosecution of the war, may, by proclamation, further employ in the District of Columbia and elsewhere
suspend the provisions of this act so far as they apply to and fix the compensation of such clerks, attorneys, investian ally of enemy, and he may revoke or renew such sus- gators, accountants, and other employees as he may find
pension from time to time; and the President may grant necessary for the due administration of the provisions of




854

EEDEBAL BESERVE BULLETIN.

NOVEMBER 1...

this act: Provided, That such clerks, investigators, ac- with such exceptions and under such rufe and regulations
countants, and other employees shall be appointed from j as the President shall prescribe, and within thirty days
lists of eligf >les to be supplied by the Civil Service Com- after the passage of this act, or within thirty days alter
mission and in accordance with the civil-service law: such property shall come within his custody or control,
Provided further, That the President shall cause a detailed or after such debt shall become due, report the fact to the
report to be made to Congress on the first day of January alien-property custodian by written statement under 02th
of each year of all proceedings had under this act during containing such particulars as aaid custodian shall require.
the year preceding. Such report shall contain a list of The President may also require a similar report of ail propall persons appointed or employed, with the salary or erty so held, of, for, 0? on behalf o i and of ail debts so
compensation paid to each, and a statement of the different j owed to, any person now defined as an enemy or ally 01
kinds of property taken into custody and the disposition enemy, on February third, nineteen hundred and seventeen: Provided, That the name of any person shall be
made thereof.
SEC. 7. (a) That every corporation incorporated within stricken from the said report by the alien-property custhe United States, and every unincorporated association todian, either temporarily or permanently, when he shall
or company, or trustee, or trustees within the United be satisfied that such person is not an enemy or ally of
States, issuing shares or certificates representing bene- enemy. The President may extend the time for filing the
ficial interests, shall, under such rules and regulations lists or reports required by this section for an additional
as the President may prescribe and, within sixty days period not exceeding ninety days.
after the passage of this act, and at such other times there(5) Nothing in this act contained shall render valid or
after as the President may require, transmit to the alien legal, or be construed to recognize as valid or legal, an j act
property custodian a full list, duly sworn to, of every or transaction constituting trade with, to, from, for o? on
officer, director, or stockholder known to be, or whom the account of, or on behalf or for the benefit of an enemy perrepresentative of such corporation, association, company, formed or engaged in since the beginning of the war and
or trustee has reasonable cause to believe to be an enemy prior to the passage of this act, or any such act or transacor ally of enemy resident within the territory, or a subject tion hereafter performed or engaged in except as authoror citizen residing outside of the United States, of any ized hereunder, which would otherwise have been or be
nation with which the United States is at war, or resident void, illegal or invalid at law. No conveyance, transfer,
within the territory, or a subject or citizen residing delivery, payment, or loan of money or other property, in
outside of the United States, of any ally of any nation violation of section three hereof, made after the passage oi
with which the United States is at war. together with this act, and not under license as herein provided shall
the amount of stock or shares owned by each such confer or create any right or remedy in respect thereof;
officer, director, or stockholder, or in which he has any and no person shall by virtue of any assignment, indorseinterest.
ment, or delivery to him of any debt, bill, note, or other
The President may also require a similar list to be obligation or chose in action by, from, or on behalf of, or
transmitted of all stock or shares owned on February third, on account of, or for the benefit of an enemy or ally of
nineteen hundred and seventeen, by any person now enemy have any right or remedy against the debtor,
defined as an enemy or ally of enemy, or in which any obligor, or other person liable to pay, fulfill, or perform the
such person had any interest; and he may also require same unless said assignment, indorsement, or delivery was
a list to be transmitted of all cases in which said corpo- made prior to the beginning of the war or shall be made'
ration, association, company, or trustee has reasonable under license as herein provided, or unless, if made after
cause to .believe that the stock or shares on February third, the beginning of the war and prior to the date of passage of
nineteen hundred and seventeen, were owned or are this act, the person to whom the same was made shall
owned by such enemy or ally of enemy, though standing prove lack of knowledge and of reasonable cause to beon the books in the name of another: Provided, however, lieve on his part that the same was made by. from or on
That the name of any such officer, director, or stockholder behalf of, or on account of, or for tho benefit of an enemy
shall be stricken permanently or temporarily from such or ally of enemy; and any person who knowingly pays,
list by the alien property custodian when he shall be discharges, or satisfies any such debt, note, bill, or other
obligation or chose in action shall, on conviction thereof,
satisfied that he is not such enemy or ally of enemy.
Any person in the United States who holds or has or shall be deemed to violate section three hereof: Provided, That
hold or have custody or control of any property beneficial nothing in this act contained shall prevent the carrying
or otherwise, alone or jointly with others, of. for, or on out, completion, or performance of any contract, agreebehalf of an enemy or ally of enemy, or of any person whom ment, or obligation originally made with or entered into
he may have reasonable cause to believe to be an enemy or by an enemy or ally of enemy where, prior to the begin
ally of enemy and any person in the United States who is ning of the war and not in contemplation thereof, the
or shall be indebted in any way to an enemy or ally of interest of such enemy or ally of enemy devolved by
enemy, or to any person whom he may have reasonable assignment or otherwise upon a person not an enemy or
cause to believe to be an enemy or ally of enemy, shall, ally of enemy, and no enemy or ally of enemy vrill be




FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

855

benefited by such carrying out, completion, or performance may, at his option, with the consent of the President, pay,
convey, transfer, assign, or deliver to the alien property
otherwise than by release from obligation thereunder.
Nothing in this act shall be deemed to prevent payment custodian said money or other property under such rules
of money belonging or owing to an enemy or ally of enemy and regulations as the President shall prescribe.
(e) No person shall be held liable in any court for or in
to a person within the United States not an enemy or
ally of enemy, for the benefit of such person or of any respect to anything done or omitted in pursuance of any
other person within the United States, not an enemy or order, rule, or regulation made by the President under
ally of enemy, if the funds so paid shall have been received he authority of this act.
Any payment, conveyance, transfer, assignment, or deprior to the beginning of the war and such payments arise
out of transactions entered into prior to the beginning of tivery of money or property made to the alien property
the war, and not in contemplation thereof: Provided, That custodian hereunder shall be a full acquittance and dissuch payment shall not be made without the license of charge for all purposes of the obligation of the person
the President, general or special, as provided in this act. making the same to the extent of same. The alien propNothing in this act shall be deemed to authorize the erty custodian and such other persons as the President
prosecution of any suit or action at law or in equity in any may appoint shall have power to execute, acknowledge,
court within the United States by an enemy or ally of and deliver any such instrument or instruments as may be
enemy prior to the end of the war, except as provided in necessary or proper to evidence upon the record or othersection ten hereof: Provided, however, That an enemy or wise such acquittance and discharge, and shall, in case of
ally of enemy licensed to do business under this act may payment to the alien property custodian of any debt or
prosecute and maintain any such suit or action so far as obligation owed to an enemy or ally of enemy, deliver
the same arises solely out of the business transacted within up any notes, bonds, or other evidences of indebtedness
the United States under such license and so long as such or obligation, or any security therefor in which such enemy
license remains in full force and effect: And provided or ally of enemy had any right or interest that may have
further, That an enemy or ally of enemy may defend by come into the possession of the alien property custodian,
counsel any suit in equity or action at law which may be with like effect as if he or they, respectively, were duly
appointed by the enemy or ally of enemy, creditor, or
brought against him.
Receipt of notice from the President to the effect that obligee. The President shall issue to every person so
he has reasonable ground to believe that any person is an appointed a certificate of the appointment and authority
enemy or ally of enemy shall be prima facie defense to of such person, and such certificate shall be received in
any one receiving the same, in any suit or action at law evidence in all courts within the United States. Whenor in equity brought or maintained, or to any right or ever any such certificate of authority shall be offered to
set-off or recoupment asserted by, such person and based any registrar, clerk, or other recording officer, Federal or
on failure to complete or perform since the beginning of otherwise, within the United States, such officer shall
the war any contract or other obligation. In any prosecu. record the same in like manner as a power of attorney,
tion under section sixteen hereof, proof of receipt of notice and such record or a duly certified copy thereof shall be
from the President to the effect that he has reasonable received in evidence in all courts of the United States or
cause to believe that any person is an enemy or ally of other courts within the United States.
enemy shall be prima facie evidence that the person
SEC. 8. (a) That any person not an enemy or ally of
receiving such notice has reasonable cause to believe enemy holding a lawful mortgage, pledge, or lien, or
such other person to be an enemy or ally of enemy within other right in the nature of security in property of an
the meaning of section three hereof.
enemy or ally of enemy which, by law or by the terms of
(c) If the President shall so require, any money or the instrument creating such mortgage, pledge, or lien,
other property owing or belonging to or held for, by, on or right, may be disposed of on notice or presentation or
account of, or on behalf of, or for the benefit of an enemy demand, and any person not an enemy or ally of enemy
or ally of enemy not holding a license granted by the who is a party to any lawful contract with an enemy or
President hereunder, which the President after investi- ally of enemy, the terms of which provide for a terminagation shall determine is so owing or so belongs or is so tion thereof upon notice or for acceleration of maturity on
held, shall be conveyed, transferred, assigned, delivered, presentation or demand, may continue to hold said property, and, after default, may dispose of the property in
or paid over to the alien property custodian.
(d) If not required to pay, convey, transfer, assign, or accordance with, law or may terminate or mature such
deliver under the provisions of subsection (c) hereof, any contract by notice or presentation or demand served or
person not an enemy or ally of enemy who owes to, or made on the alien property custodian in accordance with
holds for, or on account of, or on behalf of, or for the benefit the law and the terms of such instrument or contract and
of an enemy or of an ally of enemy not holding a license under such rules and regulations as the President shall
granted by the President hereunder, any money or other prescribe; and such notice and such presentation and
property, or to whom any obligation or form of liability to demand shall have, in all respects, the same force and
such enemy or ally of enemy is presented for payment, effect as if duly served or made upon the enemy or ally




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856

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

of enemy personally: Provided, That no such rule or regu- all persons claiming any right, title, or interest therein,
lation shall require that notice or presentation or demand order the payment, conveyance, transfer, assignment or
shall be served or made in any case in which, by law or delivery to said claimant of the money or other property
by the terms of said instrument or contract, no notice, so held by the alien property custodian or by the Treasurer
presentation, or demand was, prior to the passage of this of the United States or of the interest therein to which
act, required; and that in case where, by law or by the the President shall determine said claimant is entitled:
terms of such instrument or contract, notice is required, Provided, That no such order by the President shall bar
no longer period of notice shall be required: Provided any person from the prosecution of any suit at law or in
further, That if. on any such disposition of property, a equity against the claimant to establish any right, title
surplus shall remain after the satisfaction of the mortgage, or interest which he may have in such money or other
pledge, lien, or other right in the nature of security, notice property. If the President* shall not so order within
of that fact shall be given to the President pursuant to sixty d&ys after the filing of such application, or if the
such rules and regulations as he may prescribe, and such claimant shall have filed the notice as above required
surplus shall be held subject to his further order.
and shall have made no application to the President, said
(b) That any contract entered into prior to the beginning claimant may, at any time before the expiration of six
of the war between any citizen of the United States or any months after the end of the war, institute a suit in equity
corporation organized within the United States, and an in the district court of the United States for the district in
enemy or ally of an enemy, the terms of which provide which such claimant resides, or, if a corporation, where it
for the delivery, during or after any war in which a present has its principal place of business (to which suit the alien
enemy or ally of enemy nation has been or is now engaged, property custodian or the Treasurer of the United States,
of anything produced, mined, or manufactured in the j as the case may be, shall be made a party defendant), to
United States, may be abrogated by such citizen or cor- establish the interest, right, title, or debt so claimed,
poration by serving thirty days' notice in writing upon and if suit shall be so instituted then the money or other
the alien property custodian of his or its election to abro- property of the enemy, or ally of enemy, against whom
such interest, right, or title is asserted, or debt claimed,
gate such contract.
(c) The running of any statute of limitations shall be j shall be retained in the custody of the alien property
suspended with reference to the rights or remedies on any custodian, or in the Treasury of the United States, as procontract or obligation entered into prior to the beginning vided in this act, and until any final judgment or decree
of the war between parties neither of whom is an enemy which shall be entered in favor of the claimant shall be
or ally of enemy, and containing any promise to pay or fully satisfied by payment or conveyance, transfer, assignliability for payment which is evidenced by drafts or other ment, or delivery by the defendant or by the alien property
commercial paper drawn against or secured by funds or custodian or Treasurer of the United States on order of the
other property situated in an enemy or ally of enemy court, or until final judgment or decree shall be entered
country, and no suit shall be maintained on any such against the claimant, or suit otherwise terminated.
contract or obligation in any court within the United
Except as herein provided, the money or other property
States until after the end of the war, or until the said funds conveyed, transferred, assigned, delivered, or paid to the
or property shall be released for the payment or satisfac- alien property custodian shall not be liable to lien, attachtion of such contract or obligation: Provided, however, That ment, garnishment, trustee process, or execution, or subnothing herein contained shall be construed to prevent ject to any order or decree of any court.
the suspension of the running of the statute of limitations
This section shall not apply, however, to money paid to
in all other cases where such suspension would occur the alien property custodian under section ten hereof.
under existing law.
SEC. 10. That nothing contained in this act shall be
SEC. 9. That any person, not an enemy, or ally of enemy, held to make unlawful any of the following acts:
claiming any interest, right, or title in any money or other
(a) An enemy, or ally of enemy, may file and prosecute
property which may have been conveyed, transferred, in the United States an application for letters patent, or
assigned, delivered, or paid to the alien property custodian for registration of trade-mark, print, label, or copyright,
hereunder, and held by him or by the Treasurer of the and may pay any fees therefor in accordance with and as
United States, or to whom any debt may be owing from required by the provisions of existing law and fees for
an enemy, or ally of enemy, whose property or any part attorneys or agents for filing and prosecuting such applicathereof shall have been conveyed, transferred, assigned, tions. Any such enemy, or ally of enemy, who is unable
delivered, or paid to the alien property custodian here- during war, or within six months thereafter, on account
under, and held by him or by the Treasurer of the United of conditions arising out of war, to file any such applicaStates, may file with the said custodian a notice of his tion, or to pay any official fee, or to take any action reclaim under oath and in such form and containing such quired by law within the period prescribed by law, may
particulars as the said custodian shall require; and the be granted an extension of nine months beyond the
President, if application is made therefor by the claimant, expiration of said period, provided the nation of which
may, with the assent of the owner of said property and of the said applicant is a citizen, subject, or corporation




NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

857

shall extend substantially similar privileges to citizens j order, five per centum of the value of the use of such
and corporations of the United States.
i inventions, trade-marks, prints, labels, or copyrighted
(6) Any citizen of the United States, or any corporation i matter to the licensee as established by the President;
organized "within the United States, may, when duly and sums so paid shall be deposited by said alien property
authorized by the President, pay to an enemy or ally of custodian forthwith in the Treasury of the United States
enemy any tax, annuity, or fee which may be required I as a trust fund for the said licensee and for the owner of
by the laws of such enemy or ally of enemy nation in | the said patent, trade-mark, print, label, or copyright
relation to patents and trade-marks, prints, labels, and j registration as hereinafter provided, to be paid from the
copyrights; and any such citizen or corporation may file | Treasury upon order of the court, as provided in subdiand prosecute an application for letters patent or for I vision (/) of this section, or upon the direction of the alien
registration of trade-mark, print, label, or copyright in property custodian.
the country of an enemy, or of an ally of enemy after first
(e) Unless surrendered or terminated as provided in
submitting such application to the President and receiving this act, any license granted hereunder shall continue
license so to file and prosecute, and to pay the fees re- during the term Rxed in the license or in the absence of
quired by law and customary agents' fees, the maximum any such limitation during the term of the patent, tradeamount of which in each case shall be subject to the con- mark, print, label, or copyright registration under which
trol of the President.
it is granted. Upon violation by the licensee of any of
(c) Anyjcitizen of the United States or any corporation the provisions of this act, or of the conditions of the license,
organized within the United States desiring to manu- the President may, after due notice and hearing, cancel
facture, or cause to be manufactured, a machine, manu- any license granted by him.
facture, composition of matter, or design, or to carry on,
(/) The owner of any patent, trade-mark, print, label, or
or to use any trade-mark, print, label, or cause to be car- copyright under which a license is granted hereunder may,
ried on, a process under any patent or copyrighted matter after the end of the war and until the expiration of one
owned or controlled by an enemy or ally of enemy at any year thereafter, file a bill in equity against the licensee in
time during the existence of a state of war may apply to the district court of the United States for the district in
the President for a license; and the President is hereby which the said licensee resides, or, if a corporation, in
authorized to grant such a license, nonexclusive or exclu- which it has its principal place of business (to which suit
sive as he shall deem best, provided he shall be of the the Treasurer of the United States shall be made a party),
opinion that such grant is for the public welfare, and that for recovery from the said licensee for all use and enjoythe applicant is able and intends in good faith to manu- j ment of the said patented invention, trade-mark, print,
facture, or cause to be manufactured, the machine, j label, or copyrighted matter: Provided, however, That
manufacture, composition of matter, or design, or to carry j whenever suit is brought, as above, notice shall be filed
on, or cause to be carried on, the process or to use the j with the alien property custodian within thirty days after
trade-mark, print, label, or copyrighted matter. The date of entry of suit: Provided further. That the licensee
President may prescribe the conditions of this license, may make any and all defenses which would be available
including the fixing of prices of articles and products were no license granted. The court on due proceedings
necessary to the health of the military and naval forces of had may adjudge and decree to the said owner payment of
the United States or the successful prosecution of the a reasonable royalty. The amount of said judgment and
war, and the rules and regulations under which such decree, when final, shall be paid on order of the court to
license may be granted and the fee which shall be charged the owner of the patent from the fund deposited by the
therefor, not exceeding $100, and not exceeding one per licensee, so far as such deposit will satisfy said judgment
centum of the fund deposited as hereinafter provided. and decree; and the said payment shall be in full or
Such license shall be a complete defense to any suit at partial satisfaction of said judgment and decree, as the
law or in equity instituted by the enemy or ally of enemy facts may appear; and if, after payment of all such judgowners of the letters patent, trade-mark, print, label, or ments and decrees, there shall remain any balance of said
copyright, or otherwise, against the licensee for infringe- deposit, such balance shall be repaid to the licensee on
ment or for damages, royalty, or other money award on order of the alien property custodian. If no suit is brought
account of anything done by the licensee under such j within one year after the end of the war, or no notice is
license, except as provided in subsection (j) hereof.
filed as above required, then the licensee shall not be
(d) The licensee shall file with the President a full state- liable to make any further deposits, and all funds deposited
ment of the extent of the use and enjoyment of the license, by him shall be repaid to him on order of the alien property
and of the prices received in such form and at such stated custodian. Upon entry of suit and notice filed as above
periods (at least annually) as the President may prescribe; required, or upon repayment of funds as above provided,
and the licensee shall pay at such times as may be required the liability of the licensee to make further reports to the
to the alien property custodian not to exceed five per President shall cease.
centum of the gross sums received by the licensee from
If suit is brought as above provided, the court may, at
the sale of said inventions or use of the trade-mark, print, j any time, terminate the license, and may, in such event,
label, or copyrighted matter, or, if the President shall so | issue an injunction to restrain the licensee from infringe-




858

FEDERAL RESERVE BULLETIN.

ment thereafter, or the court, in case the licensee, prior
to suit, shall have made investment of capital based on
possession of the license, may continue the license for
such period and upon such terms and with such royalties
as it shall find to be just and reasonable.
(g) Any enemy, or ally of enemy, may institute and
prosecute suits in equity against any person other than a
licensee under this act to enjoin infringement] of letters
patent, trade-mark, print, label, and copyrights in the
United States owned or controlled by said enemy or ally
offenemy, in the same manner and to the extent that he
would be entitled so to do if the United States was not
at war: Provided, That no final judgment or decree shall be
entered in favor of such enemy or ally of enemy by any
court except after thirty days' notice to the alien property
custodian. Such notice shall be in writing and shall be
served in the same manner as civil process of Federal
courts.
(h) All powers of attorney heretofore or hereafter granted
by an enemy or ally of enemy to any person within the
United States, in so far as they may be requisite to the
performance of acts authorized in subsections (a) and (g)
of this section, shall be valid.
(i) Whenever the publication of an invention by the
granting of a patent may, in the opinion of the President,
be detrimental to the public safety or defense, or may
assist the enemy or endanger the successful prosecution
of the war, he may order that the invention be kept secret
and withhold the grant of a patent until the end of the
war: Provided, That the invention disclosed in the application for said patent may be held abandoned upon it
being established before or by the Commissioner of Patents
that, in violation of said order, said invention has been
published or that an application for a patent therefor has
been filed in any other country, by the inventor or his
assigns or legal representatives, without the consent or
approval of the ccmmissioner or under a license of the
President.
When an applicant whose patent is withheld as herein
provided and who faithfully obeys the order of the President above referred to shall tender his invention to the
Government of the United States for its use, he shall, if he
ultimately receives a patent, have the right to sue for
compensation in the Court of Claims, such right to compensation to begin from the date of the use of the invention
by the Government.
Sec. 11. Whenever during the present war the President shall find thatfthe public safety so requires and shall
make proclamationfthereof it shall be unlawful to import
into the United States from any country named in such
proclamation! any article or articles mentioned in such
proclamation "except at such time or times, and under
such regulations or orders, and subject to such limitations and exceptions as the President shall prescribe,
until otherwise ordered by the President or by Congress:
Provided, however, That no preference shall be given to
the ports of one State]over those of another.




NOVEMBER 1,1917.

SEC. 12. That all moneys (including checks and drafts
payable on demand) paid to or received by the alien property custodian pursuant to this act shall be deposited
forthwith in the Treasury of the United States, and may
be invested and reinvested by the Secretary of the Treasury in United States bonds or United States certificates of
indebtedness, under such rules and regulations as the
President shall prescribe for such deposit, investment,
and sale of securities; and as soon after the end of the war
as the President shall deem practicable, such securities
shall be sold and the proceeds deposited in the Treasury.
All other property of an enemy, or ally of enemy, conveyed, transferred, assigned, delivered, or paid to the
alien property custodian hereunder shall be safely held
and administered by him except as hereinafter provided;
and the President is authorized to designate as a depositary, or depositaries, of property of an enemy or ally of
enemy, any bank, or banks, or trust company, or trust
companies, or other suitable depositary or depositaries,
located and doing business in the United States. The
alien property custodian may deposit with such designated depositary or depositaries, or with the Secretary of
the Treasury, any stocks, bonds, notes, time drafts, time
bills of exchange, or other securities, or property (except
money or checks or drafts payable on demand which are
required to be deposited with the Secretary of the Treasury), and such depositary or depositaries shall be authorized and empowered to collect any dividends or interest
or income that may become due and any maturing obligations held for the account of such custodian. Any moneys
collected on said account shall be paid and deposited
forthwith by said depositary or by the alien property custodian into the Treasury of the United States as hereinbefore provided.
The President shall require all such designated depositaries to execute and file bonds sufficient in his judgment
to protect property on deposit, such bonds to be conditioned as he may direct.
The alien property custodian shall be vested with all
of the powers of a common-law trustee in respect of all
property, other than money, which shall come into his
possession in pursuance of the provisions of this act, and?
acting under the supervision and direction of the President, and under such rules and regulations as the President shall prescribe, may manage such property and do
any act or things in respect thereof or make any disposition
thereof or of any part thereof, by sale or otherwise, and
exercise any rights which may be or become appurtenant
thereto or to the ownership thereof, if and when necessary
to prevent waste and protect such property and to the end
that interests of the United States in such property and
rights or of such person as may ultimately become entitled
thereto, or to the proceeds thereof, may be preserved and
safeguarded. It shall be the duty of every corporation
incorporated within the United States and every unincorporated association, or company, or trustee, or trustees
within the United States issuing shares or certificates rep-

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

859

resenting beneficial interests, to transfer such shares or master's, owner's, shipper's, or consignor's statement to
certificates upon its, his, or their books into the name of the American consular officer of the district in which the
the alien property custodian upon demand, accompanied cargo is unladen.
SEC. 14. That, during the present war, whenever there
by the presentation of the certificates which represent
such shares or beneficial interests. The alien property is reasonable cause to believe that the manifest or the
custodian shall forthwith deposit in the Treasury of the additional statements under oath required by the precedUnited States, as hereinbefore provided, the proceeds of ing section are false or that any vessel, domestic or foreign,
is about to carry out of the United States any property to
any such property or rights so sold by him.
Any money or property required or authorized by the or for the account or benefit of an enemy, or ally of enemy,
provisions of this act to be paid, conveyed, transferred, or any property or person whose export, taking out, or
assigned, or delivered to the alien property custodian shall, transport will be in violation of law, the collector of cusif said custodian shall so direct by written order, be paid, toms for the district in which such vessel is located is
conveyed, transferred, assigned, or delivered to the Treas- hereby authorized and empowered subject to review by
urer of the United States with the same effect as if to the the President to refuse clearance to any such vessel, domestic or foreign, for which clearance is required by law,
alien property custodian.
and
by formal notice served upon the owners, master, or
After the end of the war any claim of any enemy or of an
ally of enemy to any money or other property received and person or persons in command or charge of any domestic
vessel for which clearance is not required by law, to forheld by the alien property custodian or deposited in the
bid the departure of such vessel from the port, and it shall
United States Treasury shall be settled as Congress shall
thereupon be unlawful for such vessel to depart.
direct: Provided, however, That on order of the President,
as set forth in section nine hereof, or of the court, as set
The collector of customs shall, during the present war,
forth in sections nine and ten hereof, the alien property in each case report to the President the amount of gold or
custodian or the Treasurer of the United States, as the case silver coin or bullion or other moneys of the United States
may be, shall forthwith convey, transfer, assign, and pay contained in any cargo intended for export. Such report
to the person to whom the President shall so order, or in shall include the names and addresses of the consignors
whose behalf the court shall enter final judgment or decree, and consignees, together with any facts known to the colany property of an enemy or ally of enemy held by said lector with reference to such shipment and particularly
custodian or by said Treasurer, so far as may be necessary those which may indicate that such gold or silver coin or
to comply with said order of the President or said final bullion or moneys of the United States may be intended
judgment or decree of the court: And provided further, for delivery or may be delivered, directly or indirectlyThat the Treasurer of the United States, on order of the to an enemy or an ally of enemy.
alien property custodian, shall, as provided in section ten
SEC. 15. That the sum of $450,000 is hereby approprihereof, repay to the licensee any funds deposited by said ated, out of any money in the Treasury of the United
licensee.
States not otherwise appropriated, to be used in the disSEC. 13. That, during the present war, in addition to the cretion of the President for the purpose of carrying out the
facts required by sections forty-one hundred and ninety- provisions of this act during the fiscal year ending June
seven, forty-one hundred and ninety eight, and forty-two thirtieth, nineteen hundred and eighteen, and for the payhundred of th'3 Revised Statutes, as amended by the act ment of salaries of all persons employed under this act,
ox June fifteenth, nineteen hundred and seventeen, to bs together with the necessary expenses for transportation,
set out in the master's and shipper's manifest before clear- subsistence, rental of quarters in the District of Columbia,
ance will be issued to vessels bound to foreign ports, the books of reference, periodicals, stationery, typewriters and
master or person in charge of any vessel, before departure exchanges thereof, miscellaneous supplies, printing to be
of such vessel from port, shall deliver to the collector of done at the Government Printing Office, and all other
customs of the district wherein such vessel is located a necessary expenses not included in the foregoing.
SEC. 16. That whoever shall willfully violate any of the
statement, duly verified by oath, that the cargo is not
provisions
of this act or of any license, rule, or regulation
shipped or to be delivered in violation of this act, and the
owners, shippers, or consignors of the cargo of such vessels issued thereunder, and whoever shall willfully violate,
shall in like manner deliver to the collector like statement neglect, or refuse to comply with any order of the President
issued in compliance with the provisions of this act shall?
under oath as to the cargo or the parts thereof laden or
upon conviction, be fined not more than $10,000, or, if a
shipped by them, respectively, which statement shall
natural person, imprisoned for not more than ten years,
contain also the names and addresses of the actual conor both; and the officer, director, or agent of any corporasignees of the cargo, or if the shipment is made to a bank or tion who knowingly participates in such violation shall
other broker, factor, or agent, the names and addresses of be punished by a like fine, imprisonment, or both, and
the persons who are the actual consignees on whose account any property, funds, securities, papers, or other articles or
the shipment is made. The master or person in control of documents, or any vessel, together with her tackle, apthe vessel shall, on reaching port of destination of any of parel, furniture,and equipment, concerned in such violathe cargo, deliver a copy of the manifest and of the said tion shall be forfeited to the United States.




860

FEDERAL RESERVE BULLETIN.

1, 1917.

SEC. 17. That the district courts of the United States are \ further, That upon evidence satisfactory to him that any
hereby given jurisdiction to make and enter all such rules print, newspaper, or publication, printed in a foreign
as to notice and otherwise, and all such orders and decrees, language may be printed, published, and distributed free
and to issue such process as may be necessary and proper from the foregoing restrictions and conditions without
in the premises to enforce the provisions of this act, with a detriment to the United States in the conduct of the
right of appeal from the final order or decree of such court present war, the President may cause to be issued to the
as provided in sections one hundred and twenty-eight printers or publishers of such print, newspaper, or publiand two hundred and thirty-eight of the act of March cation, a permit to print, publish, and circulate the issue
third, nineteen hundred and eleven, entitled "An act to or issues of their print, newspaper, or publication, free
codify, revise, and amend the laws relating to the judi- j from such restrictions and requirements, such permits to
ciary."
| be subject to revocation at his discretion. And the
SEC. 18. That the several courts of first instance in the Postmaster General shall cause copies of all such permits
Philippine Islands and the district court of the Canal Zone and revocations of permits to be furnished to the postshall have jurisdiction of offenses under this act com- master of the post office serving the place from which the
mitted within their respective districts, and concurrent print, newspaper, or publication, granted the permit is
jurisdiction with the district courts of the United States to eminate. All matter printed, published and distribof offenses under this act committed upon the high seas uted under permits shall bear at the head thereof in plain
and of conspiracies to commit such offenses as defined by- type in the English language, the words, " Published and
section thirty-seven of the act entitled "An act to codify, distributed under permit authorized by the act of
revise, and amend the penal laws of the United States," (here giving date of this act), on file at the post office of
(giving name of office)."
approved March fourth, nineteen hundred and nine, and
the provisions of such section for the purpose of this act
Any person who shall make an affidavit containing any
are hereby extended to the Philippine Islands and to the false statement in connection with the translation provided
Canal Zone.
for in this section shall be guilty of the crime of perjury
SEC. 19. That ten days after the approval of this act and and subject to the punishment provided therefor by
until the end of the war, it shall be unlawful for any per- section one hundred and twenty-five of the act of March
son, firm, corporation, or association, to print, publish, fourth, nineteen hundred and nine, entitled "An act to
or circulate, or cause to be printed, published, or circu- codify revise, and amend the penal laws of the United
lated in any foreign language, any news item, editorial, States" and any person, firm, corporation or association,
or other printed matter, respecting the Government of the violating any other requirement of this section shall, on
United States, or of any nation engaged in the present war, conviction thereof, be punished by a fine of not more than
its policies, international relations, the state or conduct $500, or by imprisonment of not more than one year, or,
of the war, or any matter relating thereto: Provided, That in the discretion of the court, may be both fined and
this section shall not apply to any print, newspaper, or imprisoned.
Approved, October 6, 1917.
publication where the publisher or distributor thereof, on
or before offering the same for mailing, or in any manner
distributing it to the public, has filed with the postmaster
at the place of publication, in the form of an affidavit, a REGULATIONS FOR CARRYING OUT PROVISIONS
true and complete translation of the entire article conOF TRADING WITH ENEMY ACT.
taining such matter proposed to be published in such
print, newspaper, or publication, and has caused to be j Following is the text of the Executive Order
printed, in plain type in the English language, at the jprescribing regulations for carrying out the
head of
JLl'CdilL
oM. each
C f i U l such
O U U 1 item,
J.M5JLJU, editorial,
C U l l U l l t i i , or
U l other
U t U ' J X matter,
JULIO, bUt/J , on
U i l each
UtlUJLi. '
• •
l» j 1
-M
"I •
• i 1
J1
T-«
& i

copy of such print, newspaper, or publication, the words j Provisions of tiie t r a d i n g witii the Enemy Act:
'"True translation filed with the postmaster at
on Executive order vesting power and authority in designated
(naming the post office where the translation was
officers and making rules and regulations under Trading
filed, and the date of filing thereof), as required by the act
vjith the Enemy Act and Title VII of the act approved
of
(here giving the date of this act).
June 15, 1917.
Any print, newspaper, or publication in any foreign
language which does not conform to the provisions of this
By virtue of the authority vested in me by "An act to
section is hereby declared to be nonmailable, and it shall define, regulate, and punish trading with the enemy, and
be unlawful for any person,. firm, corporation,, or association for other purposes," approved October 6,1917, and by Title
to transport, carry, or otherwise publish or distribute the I VII of the act approved June 15,1917, entitled "An act to
same, or to transport, carry or otherwise publish or dis-1 punish acts of interference with the foreign relations, the
tribute any matter which is made nonmailable by the j neutrality, and the foreign commerce of the United States,
provisions oi the act relating to espionage, approved June ! to punish espionage and better to enforce the criminal laws
fifteenth, nineteen hundred and seventeen: Provided | of the United States, and for other purposes" (hereinafter




NOVEMBER 1, 1917.

FEDERAL SESERVE BULLETIN.

861

designated as the espionage act), I hereby make the folVII. I hereby revoke the Executive order of August
lowing orders and rules and regulations:
21,1917, creating the Exports Administrative Board. All
proclamations, rules, regulations, and instructions made
WAR TRADE BOARD,
or given by me under Title VII of the espionage act and
I. I hereby establish a War Trade Board to be composed now being administered by the Exports Administrative
of representatives, respectively, of the Secretary of State, Board are hereby continued, confirmed, and made appliof the Secretary of the Treasury, of the Secretary of Agri- cable to the War Trade Board, and all employees of the
culture, of the Secretary of Commerce, of the Food Admin- Exports Administrative Board are hereby transferred to
and constituted employees of the War Trade Board in the
istrator, and of the United States Shipping Board.
II. I hereby vest in said board the power and authority same capacities, and said War Trade Board is hereby auto issue licenses under such terms and conditions as are not thorized to exercise without interruption the powers
inconsistent with law, or to withhold or refuse licenses for heretofore exercised by said Exports Administrative
the exportation of all articles, except coin, bullion, or Board.
VIII. The said War Trade Board is hereby authorized
currency, the exportation or taking of which out of the
United States may be restricted by proclamations hereto- and empowered to take all such measures as may be necesfore or hereafter issued by me under said Title VII of the sary or expedient to administer the powers hereby conferred. And I hereby vest in the War Trade Board the
espionage act.
III. I further hereby vest in said War Trade Board the power conferred upon the President by section 5 (a) to
power and authority to issue, upon such terms and condi- make such rules and regulations, not inconsistent with law,
tions as are not inconsistent with law, or to withhold or as may be necessary and proper for the exercise of the
refuse, licenses for the importation of all articles the impor- powers conferred upon said board.
tation of which may be restricted by any proclamation
WAR TRADE COUNCIL.
hereafter issued by me under section 11 of the trading
IX. 1 hereby establish a War Trade Council to be comwith the enemy act.
posed of the Secretary of State, Secretary of the Treasury,
IV. 1 further hereby vest in said War Trade Board the Secretary of Agriculture, Secretary of Commerce, the Food
power and authority not vested in other officers by subse- Administrator, and the chairman of the Shipping Board;
quent provisions of this order, to issue, under such terms and I hereby authorize and direct the said War Trade
and conditions as are not inconsistent with law, or to with- Council thus constituted to act in an advisory capacity
hold or refuse, licenses to trade either directly or indirectly in such matters under said acts as may be referred to them
with, to, or from, or for, or on account of, or on behalf of, by the president of the War Trade Board.
or for the benefit of, any other person, with knowledge or
SECRETARY OF THE TREASURY.
reasonable cause to believe that such other person is an
enemy or ally of enemy, or is conducting or taking part in
X. 1 hereby vest in the Secretary of the Treasury the
such trade, directly or indirectly, for, or on account of, or executive administration of any investigation, regulation,
on behalf of, or for the benefit of, an enemy or ally of enemy. or prohibition of any transaction in foreign exchange,
Y, I further hereby vest in said War Trade Board the export, or earmarking of gold or silver coin or bullion or
power and authority under such terms and conditions as currency, transfers of credit in any form—other than credits
are not inconsistent with law to issue to every enemy or relating solely to transactions to be executed wholly within
ally of enemy, other than enemy or ally of enemy insurance the United States—and transfers of evidences of indebtedor reinsurance companies, doing business within the ness or oi the ownership of property between the United
United States through an agency or branch office, or other- States and any foreign country, or between residents of
wise, applying therefor within 30 days of October 6, 1917, one or more foreign countries, by any person within the
licenses, temporary or otherwise, to continue to do busi- United States; and I hereby vest in the Secretary of the
Treasury the authority and power to require any person
ness, or said board may withhold or refuse the same.
VI. And I further hereby vest in said War Trade Board engaged in any such transaction to furnish under oath
the executive administration of the provisions of section 4 complete information relative thereto, including the
(&) of the trading with the enemy act relative to granting production of any books of account, contracts, letters,
licenses to enemies and enemy allies to assume or use othei or other papers in connection therewith in the custody or
names than those by which they were known at the be- control of such person, either before or after such transginning of the war. And I hereby authorize said board action is completed.
XI. I further hereby vest in the Secretary of the Treasto issue licenses not inconsistent with the provisions of
law or to withhold or refuse licenses to any enemy, or ally ury the executive administration of the provisions of subor enemy, or partnership of which an enemy or ally of section (c) of section 3 of the trading with the enemy act
enemy is a member or was a member at the beginning of relative to sending, or taking out of, or bringing into, or
the war, to assume or use any name other than that by attempting to send, take out of, or bring into, the United
which such enemy or ally of enemy or partnership was States any letter, writing, or tangible form of communicaordinarily known at the beginning of the war.
tion except in the regular course of the mail; and of the




862

FEDERAL BESEBVE BULLETIN.

sending, taking, or transmitting, or attempting to send,
take, or transmit, out of the United States any letter or
other writing, book, map, plan, or other paper, picture, or
any telegram, cablegram, or wireless message, or other form
of communication intended for or to be delivered, directly
or indirectly, to an enemy or ally of enemy. And said
Secretary of the Treasury is hereby authorized and empowered to issue licenses to send, take, or transmit out of
the United States anything otherwise forbidden by said
subsection (c) and give such consent or grant such exemption in respect thereto, as is not inconsistent with law, or to
withhold or refuse the same.
XII. I further authorize the Secretary of the Treasury
to grant a license under such terms and conditions as are
not inconsistent with law or to withhold or refuse the same
to any "enemy" or "ally of enemy" insurance or reinsurance company doing business within the United States
through an agency or branch: office, or otherwise, which
shall make application within 30 days of October 6, 1917.
XIII. I hereby authorize and direct the Secretary of the
Treasury, for the purpose of such executive administration, to take such measures, adopt such administrative
procedure, and use such agency or agencies as he may from
time to time deem necessary and proper for that purpose.
The proclamation of the President, dated September 7,
1917, made under authority vested in him by Title VII of
said act of Congress, approved June 15, 1917, shall remain
in full force and effect. The Executive order, dated
September 7, 1917, made under the authority of said title
shall remain in full force and effect until new regulations
shall have been established by the President, or by the
Secretary of the Treasury, with the approval of^the^President, and thereupon shall be superseded.
CENSORSHIP BOARD.

XIV. I hereby establish a*,Censorship Board to^_be composed of representatives, respectfully, of the Secretary of
War, the Secretary of the Navy, the Postmaster General,
the War Trade Board, and the chairman of the committee
on publicity information.
XV. And I hereby vest in said Censorship Board the
executive administration of the rules, regulations, and
proclamations from time to time established by the President under subsection (d) of section 3-. of the tradingwith-the-enemy act for the censorship of communications
by mail, cable, radio, or other means of transmission passing between the United States and any foreign country
from time to time specified by the President or carried
hy any vessel or other means of transportation touching
at any port, place, or territory of the United States and
bound to or from any foreign country.
XVI. The said Censorship Board is hereby authorized
to take all such measures as may be necessary or expedient to administer the powers hereby conferred.

NOVEMBER I, 1917.

or to withhold or refuse the same to any citizen of the
United States or any corporation organized within the
United States to file and prosecute applications in the
country of an enemy or ally of enemy for letters patent or
for registration of trade-mark, print, label, or copyright,
and to pay the fees required by law and the customary
agents' fees, the maximum amount of which in each case
shall be subject to the control of such commission; or to
pay to any enemy or ally of enemy any tax, annuity, or
fee which may be required by the laws of such enemy or
ally of enemy nation in relation to patents, trade-marks,
prints, labels, and copyrights.
XVIII. I hereby vest in the Federal Trade Commission
the power and authority to issue pursuant to the provisions of section 10 (c) of the trading-with-the-enemy act,
upon such terms and conditions as are not inconsistent
with law, or to withhold or refuse, a license to any citizen
of the United States, or any corporation organized within
the United States, to manufacture or cause to be manufactured a machine, manufacture, composition of matter,
or design, or to carry on or cause to be carried on a process
under any patent, or to use any trade-mark, print, label,
or copyrighted matter owned or controlled by an enemy
or ally of enemy, at any time during the present war; and
also to fix the prices of articles and products manufactured under such licenses necessary to the health of the
military and the naval forces of the United States or the
successful prosecution of the war; and to prescribe the
fee which may be charged for such license not exceeding
$100 and not exceeding 1 per cent of the fund deposited
by the licensee with the alien-property custodian as
provided by law.
XIX. I hereby further vest in the said Federal Trade
Commission the executive administration of the provisions
of section 10 (d) of the trading-with-the-enemy act, the
power and authority to prescribe the form of and time and
manner of filing statements of the extent of the use and
enjoyment of the license and of the prices received and
the times at which the licensee shall make payments to
the alien-property custodian, and the amounts of said payments, in accordance with the trading-with-the-enemy act.
XX. I further hereby vest in the Federal Trade Commission the power and authority, whenever in its opinion
the publication of an invention or the granting of a patent
may be detrimental to the public safety or defense, or may
assist the enemy, or endanger the successful prosecution
of the war, to order that the invention be kept secret and
the grant of letters patent withheld until the end of the
war.
i XXI. The said Federal Trade Commission is hereby
I authorized to take all such measures as may be necessary
or expedient to administer the powers hereby conferred.
THE POSTMASTER GENERAL.

XXII. I hereby vest in the Postmaster General the
executive administration of all the provisions (except the
XVII. I further hereby vest in the Federal Trade Com- penal provisions) of section 19 of the trading-with-themission the power and authority to issue licenses under enemy act, relating to the printing, publishing, or circueuch terms andjconditions as are not inconsistent with law, lation in any foreign language of any news item, editorial,




FEDERAL TRADE COMMISSION.

, 1917,

FEDERAL RESERVE BULI*ETI2S\

868

or other printed matter respecting the Government of the to himself, at such time and in such manner as he shall
United States or of any nation engaged in the present war, prescribe, of any money or other properties owing to or
its policies, international relations; the state or conduct belonging to or held for, by or on account of. or on behalf
of the war or any matter relating thereto, and the filing j of, or for the benefit ol any enemy or ally of an enemy not
with the postmaster at the place of publication, in the j holding a license granted under the provisions of the
form of an affidavit of a true and complete translation of trading-with-the-enemy act, which, after investigation,
the entire article containing such matter proposed to be said alien property custodian shall determine is so owing
published in such print, newspaper, or publications, and or so belongs, or is so held.
XXX. Any person who desires to make conveyance,
the issuance of permits for the printing, publication, and
distribution thereof free from said restriction. And the transfer, payment, assignment, or delivery, under the
Postmaster General is authorized and empowered to issue provisions oi section 7 (d) of the trading-with-the-enemy
such permits upon such terms and conditions as are not act, to the alien property custodian of any money or
inconsistent with law, and to refuse, withhold, or revoke other property owing to or held for, oy or on account of
or on behalf of, or for the benefit of an enemy or ally of
the same.
XXIII. The sum of $35,000, or so much thereof as may enemy, not holding a license granted as provided in the
be necessary, is hereby allotted out of the funds appro- trading-with-the-enemy act, or to whom any obligation
priated by the trading-with-the-enemy act to be expended or form of liaoility to such enemy or ally of enemy is
by the Postmaster General in the administration of said presented for payment, shall file application with the
alien property custodian for consent and permit to so
section 19 thereof.
XXIV. The Postmaster General is hereby authorized convey, transfer, assign, deliver, or pay such money or
to take all such measures as may be necessary or expedient other property to him, and said alien property custodian
is hereby authorized to,exercise the power and authority
to administer the powers hereby conferred.
conferred upon the President by the provisions of said
SECRETARY OF STATE.
section 7 (d) to consent and to issue permit upon such
XXV. I hereby vest in the Secretary of State the executerms and conditions -as are not inconsistent with law,
tive administration of the provisions of subsection (6) of
or to withhold or refuse the same.
section 3 of the trading-with-the-enemy act relative to
XXXI. I further vest in the alien property custodian
any person transporting or attempting to transport any
the
executive administration of all the provisions of secsubject or citizen of an enemy or ally of enemy nation,
and relative to transporting or attempting to transport by tions 8 (a), section 8 (6), and section 9 of the trading-withany owner, master, or other person in charge of a vessel of the-enemy act, so far as said sections relate to the powers
American registry, from any place to any other place, and duties of said alien property custodian.
XXXII. I vest in the Attorney General all power and
such subject or citizen of an enemy or enemy ally.
XXVI. And I hereby authorize and empower the authority conferred upon the President by the provisions
Secretary of State to issue licenses for such transportation of of section 9 of the trading-with-the-enemy act.
XXXIII. The alien property custodian to be hereafter
enemies and enemy allies or to withhold or refuse the same.
appointed
is hereby authorized to take all such measures
XXVII. And said Secretary of State is hereby authorized and empowered to take all such measures as may be as may be necessary or expedient, and not inconsistent
necessary or expedient to administer the powers hereby with law, to administer the powers hereby conferred; and
conferred and to grant, refuse, withhold, or revoke licenses he shall further have the power and authority to make
such rules and regulations not inconsistent with law as
thereunder.
may be necessary and proper to carry out the provisions
SECRETARY OP COMMERCE.
of said section 7 (a), section 7 (c), section 7 (d), section 8
XXVIII. I hereby vest in the Secretary of Commerce (a), and section 8 (6), conferred upon the President by the
the power to review the refusal of any collector of customs
provisions thereof and by the provisions of section 5 (a),
under the provisions of sections 13 and 14 of the tradingsaid rules and regulations to be duly approved by the
with-the-enemy act to clear any vessel, domestic or foreign,
! Attorney General.
for which clearance is required by law.
XXXIV. The alien property custodian to be hereafter
ALIEN PROPERTY CUSTODIAN.
appointed shall, "under the supervision and direction of
XXIX. I hereby vest in an alien property custodian, the President, and under such rules and regulations as
to be hereafter appointed, the executive administration ! the President shall prescribe," have administration of all
of all the provisions of section 7 (a), section 7 (c), and ; moneys (including checks and drafts payable on demand)
section 7 (d) of the trading-with-the-enemy act, including and of all property, other than money which shall come
all power and authority to require lists and reports, and I into his possession in pursuance of the provisions of the
to extend the time for filing the same, conferred upon the trading-with-the-enemy act, in accordance with the proPresident by the provisions of said section 7 (a), and visions of section 6, section 10, and section 12 thereof.
including the power and authority conferred upon the
(Signed)
WOODROW WILSON.
President by the provisions of said section 7 (c), to require
THE WHITE HOUSE,
the conveyance, transfer, assignment, delivery, or payment
October 12, 1917.
20057—17
6




864

FEDERAL RESERVE BULLETIN.

New National Bank Charters.

The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of
national banks during the period from September 22, 1917, to October 26, 1917, inclusive:
Banks.

New charters issued to
With capital of
Increase of capital approved for
With new capital of

16
$850,000
10
1,115, 000

Aggregate number of new charters and
banks increasing capital
26
With aggregate of new capital authorized
1,965,000
Number of banks liquidating (other than
those consolidating with other national
banks)
Capital of same banks
,,
Number of banks reducing capital
Reduction of capital
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks).
Aggregate capital reduction

month in six years as to number. Liabilities
were the smallest, excepting those of May,
since October last year. In the Federal
Reserve districts there were increases in
number in the second and twelfth districts;
also an increase of one in the ninth district,
but in all of the other districts decreases are
shown, which is very marked in most of them.
Several large failures swelled the liabilities in
the second district, and while some increase
in liabilities also appears in the comparison
with a year ago in the seventh, ninth, tenth,
and twelfth districts, there are decreases in
the other seven districts.
Failures during September.

7

Number.

775,000
0

1917

0
7
775,000

The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
1,965,000
Against this there was a reduction of capital
owing to liquidations (other than for consolidation with other national banks) and
reductions of capital of
775, 000
Net increase

NOVEMBER 1,1S17.

1,190; 000

Districts:
First
Second...
Third....
Fourth...
Fifth
Sixth
Seventh..
Eighth...
Ninth....
Tenth....
Eleventh
Twelfth..
Total...

97
181
63
80
56
85
113
56
33
45
42
112

1916 i

Liabilities.
1917

1916

j 8629,491
j 4,291,834
I
548,914
i
978,433
715,091
61 I
631,417
124 !
190 I 1,588,140
200,577
64 I
410,523
32
567,860
78
223,142
48
1,117,629
107

8839,052
1,685,919
750,253
1,415,550
1,983,290
1,722,912
1,369,295
335,458
125,349
276,403
292,797
773,800

1,154 ! 11,903,05!

11,569,078

104
162
74
110

Export License List.

In the following statement, issued by the
In addition to the changes noted above, one
bank, with a capital of $25,000, was placed in War Trade Board on October 22, are given the
additions to the conservation list, complete
the hands of a receiver during this period.
conservation list, additions to articles requiring
license, and a complete list of articles requiring
Commercial Failures Reported.
a license:
Commercial failures show a further marked
reduction in number this month—692 for the
three weeks of October, comparing with 835
for the corresponding period last year, according to the records of R. G. Dun & Co., on which
this statement is based. During September,
the latest month for which a complete report is
available, there were 963 commercial failures,
with liabilities of $11,903,051, compared with
1,154 in September, 1916, for $11,569,078.
This is the most gratifying exhibit for any




ADDITIONS TO THE CONSERVATION LIST.

The War Trade Board announces a list of
commodities, in addition to those published on
September 28, 1917, whose conservation is necessary on account of the limited supply and
the needs of the United States in its successful
prosecution of the war. Accordingly, the
board has practically prohibited the exportation of these articles the list of which follows:
Amorphous phosphorus.
Babbitt metal and other antifriction metals; bichromate
of potash; bismuth salts: boring machines, horizontal:

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

boring mills, vertical, all sizes; brass, articles of; bronze,
articles of (unless containing less than 10 per cent copper).
Cable (copper or insulated); caustic potash; china wood
oil; chrome steel, chromium\ ore, any metal, ferro-alloy,
or chemical extracted therefrom; cobalt, ore, any metal,
ferro-alloy, or chemical extracted therefrom; copper, ore,
any metal, ferro-alloy, or chemical extracted therefrom
unless less than 10 per cent of copper; crucibles.
Diamonds (industrial); drill presses, except sensitive;
drilling machinery, radial.
Ferrochrome; ferrovanadium; ferrocobalt; ferromolybdenum; ferronickel; ferrotungsten; all manufactured articles containing flax which are manufactured in the
United States; flannelette raisings (wool).
Grinders, internal, plain, and universal; graphite electrodes.
Hair, animal; hardware, finished articles containing more
than 10 per cent of copper; hydrofluoric acid.
Jute and products (including cloth, bags, gunnies, twine,
etc.).
Lathes, 24-inch swing and larger; linen.
Manganese, ore, any metal, ferro-alloy, or chemical extracted therefrom; milling machines, plain and universal,
except hand millers; mercury; molybdenum; molybdenite.
Naxos emery; nickel an3 nickel alloys; nickel (more
than 5 per cent), ore, any metal, ferro-alloy, or chemicals
extracted therefrom.
Plumbago (graphite, imported, and articles manufactured therefrom); planers, 30 inches and larger: peas, including seed.
Sal ammoniac; sheelite; sodium phosphate; solder.
Tin and any metallic alloy containing tin; chloride of
tin; tin ore; tin canisters, except when used as food containers; tin boxes, except when used as food containers;
tinfoil; tungsten ore, any metal, ferro-alloy, or chemical
extracted therefrom; type metal.
Vanadium.
Wolframite; wool, raw; wool, scoured; wool products
suitable for military purposes; wool and worsted yarns;
wool and worsted tops; wool and worsted noils; wool and
worsted waste.
Yellow phosphorus.

Export licenses may be granted, however, for
the above-mentioned articles when they are
destined for actual war purposes or when they
will directly contribute thereto. Licenses may
also be granted in certain unusual cases where
such exports will contribute directly to the immediate production of important commodities
required by the United States, and also in certain other cases where these commodities may
be exported in limited quantities without detriment to this country.
SHIPMENTS IN TRANSIT TO CANADA.

To facilitate exports to Canada and Newfoundland, there has been heretofore issued,
through the customs service, a special license
whereby goods have been permitted to enter
Canada and Newfoundland without an individual license for each shipment, except in the
case of the commodities which the board has
heretofore found it necessary to conserve, and
for whose exportation individual licenses Lave




865

been required, as stated in the several announcements made by the board from time to time.
With respect to the commodities above mentioned, which are now added to the " Conservation list" in accordance with this statement, an
individual export license will likewise be required for each shipment of such additional conserved commodities, which is covered by ocean
and/or railroad bill of lading marked "For export" and dated on or after October 20, 1917.
This date has been fixed in order to avoid interference with goods in transit.
COMPLETE CONSERVATION LIST TO DATE.

For the convenient reference of shippers the
War Trade Board takes 7this occasion to publish
the "Conservation list/ complete to date, including the commodities which it has heretofore
been found necessary to conserve, as well as the
commodities now added to the "Conservation
list." The complete "Conservation list" follows :
Acetone; alcohol: aluminum; ammonia salts; amorphous phosphorus; ammonia nitrate; anhydrous ammonia;
animal fats; arsenate of lead and arsenate of soda.
Babbitt metal and other antifriction metals; bichromate
of potash; bismuth salts; boring machines, horizontal;
boring mills, vertical, all sizes; brass, articles of; bronze,
articles of (unless containing less than 10 per cent copper);
boiler tubes (iron and steel); boring mills, vertical, 42
inches and larger; butter.
Cable (copper or insulated); carbolic acid (phenol);
castor oil and castor beans; caustic potash; caustic soda;
China wood oil; chrome nickel steel; chrome steel; chromium: ore, any metal, ferroalloy, or chemical extracted
therefrom; cobalt: ore. any metal, ferroalloy, or chemical
extracted therefrom; copper: ore, any metal, ferroalloy,
or chemical extracted therefrom unless less than 10 per
cent of copper; cotton linters; cottonseed oil; crucibles;
cyanide of sodium.
Diamonds (industrial); drill presses, except, sensitive;
drilling machines, radial.
Ferrochrome; ferrocobalt; ferromolylxieuum; ferro. manganese; ferronickel: ferrosilicou;
ferrotungsten;
! ferrovanadium; flannelette raisings (wool); flax, and all
j1 manufactured articles containing flax which are manufactured in the United States; food grains (including,
among others, wheat, barley, corn, rice, oats, and rye).
Glycerine; grinders, internal, plain and universal;
graphite electrodes.
Hair, animal; hardware, finished articles containing
more than 10 per cent of copper; hydrofluoric acid.
Iron and steel plates, including ship, boiler, tank, and
other iron and steel plates J inch thick and heavier and
wider than 6 inches, whether plain or fabricated.
Jute and products (including cloth, bags, gunnies,
twine, etc.).
Lard: lard compound; lathes, 24-inch swing and larger;
linen.
Manganese: ore, any metal, ferro-alloy, or chemical
extracted therefrom; milling machines, plain and universal, except hand millers; mercury; mercury salts:
molybdenum; molybdenite.
; Naxos emery; nitrate of soda; nitric acid; nickel and
| nickel alloys: nickel (more than 5 per cent): ore, any

866

FEDEKAL RESERVE BULLETIN".

1, 1917,

metal, ferroalloy, or chemicals extracted therefrom; nitric covered by an ocean and/or railroad bill of
salts.
lading marked "For export" and dated on or
Oil-well casing; oil cake; oil-cake meal.
Phosphoric acid; phosphorus; pig iron; planers, metal before October 20, 1917. This list may be reworking, 36 inches wide and larger; planers, 30-inch and garded as supplementary to the one already
larger; plumbago (graphite, imported, and articles manu- published:
factured therefrom); j>eas, including seed; potash and chlorate of potash; potassium salts.
Alum; amorphous phosphorus.
Sal ammoniac; saltpeter; scrap iron; scrap steel; searchBichromate of soda; bismuth salts; brass and articles of:
lights and generators (suited for Army and Navy use); bronze and articles of.
sheelite; soaps; sodium phosphate; sodium sulphite; solder;
Chrome alum.
spiegeleisen; stearin and stearic acid; steel billets; steel
Epsom salts.
blooms; steel ingots; steel sheet bars; steel slabs; sugar;
Ferric alum.
sulphate of ammonia; sulphur and sulphuric acid; superGerman silver; Glauber salts.
phosphate.
Hydrofluoric acid; hyposulphite of soda.
Tallow; tin and any metallic alloy containing tin:
Nicotine sulphate.
chloride of tin, tin ore, tin canisters, except when used
Paraffin wax; peas (including seed); plated ware.
as food containers, tin boxes, except when used as food
Sal ammoniac; silver-plated ware; sodium fluoride; sulcontainers, tin foil; tin plate; tungsten ore; tungsten: ore, phate of quinine.
any metal, ferroalloy, or chemical extracted therefrom;
Toys containing lead, zinc, tin, aluminum.
toluol; type metal.
Yellow phosphorus.
Zinc, oxide, dry.
Vegetable oils; vanadium.
Wireless apparatus; wheat; wheat flour; wolframite;
The War Trade Board has determined that
wool, raw; wool, scoured; wool products suitable for military purposes; wool rags; wool and worsted yarns; wool and the following benzol, phenol, and toluol deworsted tops; wool and worsted waste; wool and worsted rivatives will require an export license when
noils.
shipped to any country of the world. Such of
Yellow phosphorus.

these, however, as are not on the " Conservation list" will proceed to Canada as heretofore
under the special license issued through the
The attention of shippers is directed to the Customs Service:
fact that the following commodities have been Acetanalide; aniline oil; aniline salts; amido azo benzol;
recently classified as requiring an export li- amido phenol (para amido phenol).
Benzol; beta naphthol.
cense when sHipped to—
Carbolic acid (phenol); chlorbenzol (mono chlorbenzoi);
ADDITIONS TO ARTICLES REQUIRING LICENSES.

Abyssinia; Afghanistan; Argentina; that portion of Belgium not occupied by the military forces of Germany, or
the colonies, possessions, or protectorates of Belgium.
Bolivia; Brazil.
China; Chile; Colombia; Costa Rica; Cuba.
Dominican Republic.
Ecuador; Egypt.
France, her colonies, possessions, or protectorates.
Guatemala.
Haiti; Honduras.
Italy, her colonies, possessions, or protectorates.
Great Britain, her colonies, possessions, or protectorates.
Japan.
Liberia.
Mexico; Monaco; Montenegro; Morocco.
Nepal; Nicaragua; the colonies, possessions, or protectorates of the Netherlands.
Oman.
Panama; Paraguay; Persia; Peru; Portugal, her colonies,
possessions, or protectorates.
Roumania; Russia.
Salvador; San Marino; Serbia; Siam.
Uruguay.
Venezuela (excluding any portion of the foregoing occupied by the military forces of Germany or her allies), or
any territory occupied by the military forces of the United
States or by^the nations associated with the United States
in the war.

cresols.
Dinitrobenzol (metadinitrobenzol); dinitrochlorbenzol;
dinitrophenol; dimethylaniline; diphenylamine.
Nitroacetanilide (paranitroacetanilide); nitroaniline;
nitrobenzol; nitrophenol (paranitrophenol); nitrotoluol,
orthonitrotoluol, paranitrotoluol; nitroxylols; nitrocresols;
nitronaphthalenes; nitrochlorbenzol (paranitrochlorbenzol); nitrosodimethylaniline; naphthalene.
Paranitraniline; phenol (carbolic acid).
Tetranitroaniline, tetranitromethylaniline; tetranitroethylaniline; toluol; trinitrotoluol; toluidine, orthotoluidine, paratoluidlne.
Xyhdine; xylol.

COMPLETE LIST OF ARTICLES REQUIRING A
LICENSE AT PRESENT.

The War Trade Board has prepared the following list, comprising commodities which
have already been determined to be included
under the general headings mentioned in the
second division of the proclamation of August
27, 1917. Additions may be made to this list
if it is determined that other articles are properly included under these general headings;

Abrasives (all artificial); acetone; acetanilide; add.
In|order to avoid interference with goods in hydrofluoric;
acid phosphates; aeronautical instruments:
transit no export license will be required for aeronautical machines; alcohol; aloxite wheels; alloy steel*
such shipments of these commodities as are alum; aluminum and articles made entirely thereof; alun-




NOVEMBER 1,1917.

FEDERAL BESEBVE BULLETIN.

867

Iron boiler tubes; iron scrap; iron and steel shapes,
dum grain; alundum wheels; amido azo benzol; amido
phenol (para amido phenol); ammonia and its salts; ammo- beams (all sizes), channels (all sizes), angles (all sizes),
nia anhydrous; ammonia nitrate; ammunition; amorphous tees and zees; iron, faoricated, structural, including
phosphorus; aniline oil; aniline salts; angles, iron and beams, channels, angles, tees and zees, and plates, fabristeel: animal fats; antiaircraft instruments, apparatus, and cated and shipped knocked down; iron plates, including
accessories; antimony; antimony black; antifriction metal; ship, boiler, tank, and all other iron plates £ of an inch
arms; arsenate of lead; arsenate of soda; ash, wood; auto thick and heavier and wider than 6 inches and circles
over 6 inches in diameter (this includes No. 11 U. S.
grease; automatic guides.
Babbitt metal; bacon; barium nitrate; barley; belting, gauge, but not No. 11 B. W. gauge); instruments, aeroleather; benzene; betanaphthol; blue stones (copper sul- nautical, antiaircraft, optical, electrical, ingots, and steel.
Jute and all manufactures thereof; jute clothphate); benzine; beams (of all sizes), iron and steel;
Kerosene; khaki clippings; knife-grinding machinery
benzol and its derivatives; bichromate of soda; billets,
steel; binder twine (for reaping machines); binocular (for (power driven); knives (sugar-cane).
Land plaster; lard; lard compound; lathes; lathe tools;
marine use); birch wood; blancfixe (sulphate of barium);
blooms, steel; bleached soda pulp; boilers, steam; boiler lead; leather; leather belting; leather clothing; leather/
fitting; boiler plates; boiler plugs; boiler pipes; boiler sole; leather, upper; lenses, optical; linseed on; linseed;
tubes, iron, steel, and copper; bone, ground; bone meal; livestock; loopers; looper cutters for knitting machines;
boots and shoes of leather: bolt heading machines; bone lubricants.
flour; bookbinders' tin stitching wire; boring milk (vertiMachines, aeronautical (and instruments), their parts,
cal, 42 inches and larger); boring tubes; broching machines, and accessories; engines (except locomotives)—condenswith countershaft; bromide ammonium; bronze and articles ers, metal-working, woodworking, oil-well drilling, pumps,
of; bunkers; buckram (flax); burlap; butter.
turbines; machetes; machine tools; manganese (for alloy
Cane knives; can maker machines; carbons, electric light; steel): magnifiers, optical; mahogany wood; malt; mancarbolic acid (phenol); car seals; carborundum; carrier ganese oxide; magnesium sulphate; manila rope; manure,
and other pigeons; casings, oil well; castor oil; castor beans; cattle: manure, sheep; meats, all; meat juice; meats and
caustic soda; cattle manure; cellulose; cereals (oatmeal, fats, including poultry, cottonseed oil, corn oil, copra,
rolled oats); channels (all sizes), iron and steel; cheese; desiccated coconut, butter, fish (fresh, dried, and canned);
chlorate of potash; chlorbenzol (mono chlorbenzol j ; chrome edible or inedible grease, of animal or vegetable orialum; chromium (for steel alloy); chrome nickel steel; gin, linseed oil, lard, tinned milk, peanut oil, peanut butchlorate of potash; clothing, leather; coal; coconut desic- ter, rapeseed oil, tallow, tallow candles, stearic acid,
cated; cod-liver oil; coke; condensed milk; condensers; pigtails; mercury and its salts; mercury salts; metals—
coin, silver and gold; copper and articles made entirely antifriction, babbitt; metal-working machine; microthereof; copper bars; copper ingots; copper plates; copper scopes; milk (tinned and powdered), not fresk; milling
rods; copper strap; copper sheetsj copper sulphate; copper cutters; mineral colza; mineral oil; mirror iron; molasses;
tubes; copper wire; copper wire insulators; cotton; cotton molybdenum; motors (steam, gas, electric).
linters; copra; corn (maize); corn flour; corn meal; corn oil;
Naphtha; naphthalene; naphthalene balls; neat's-fpot
corrugated copper gaskets; corundum wheels and stones; oil; Nestle's food (infants); news paper; nickel; nicotine
cottonseed meal; cottonseed oiljcresols; erisco; crucibles; sulphate; nitroacetanilide (paranitroacetanilide); nitrate
cyanamide; cyanides (all); cyanide of sodium.
silver; nitroaniline; nitrobenzol; nitrate of ammonia;
Diamonds, industrial; dimethyl aniline; dinitrobenzol nitrophenol (paranitrophenol); nitric acid; nitroluol—
(metadinitrobenzol); dinitrophenol; dinitrochlorbenzol; orthonitrotoluol, paranitrotoluol; nitric acid and its salts;
diphenylanine; drill presses, except sensitive; drilling nitroxylols; nitrocresols; nitrate of soda; nitronaphthamachines, radial; dry blood; drill chucks; dry paste lenes; nitrochlorbenzol (paranitrochlorbenzol); nitric
flour; drilling implements and machinery with accessories salts; nitrosodimethylaniline; nitrate of potash; nitrogets
for oil wells; drill rods; drill presses; drills (ca,rbon and | lamps.
high-speed twist).
I Oak, wood; oakum; oats; oatmeal; oil cake; oil-meal
Electrical equipment (all); electric generators; electric : cake; oil-well casing; oil-well drilling implements and
lamps; emery and emery cloth; emery wheels; engines machinery and accessories; optical glass; optical—instru(except locomotives); epsom salts; ether; exhaust pipes; ments, reflectors; oils, including fuel, lubricating, lantern,
naphtha, benzine, red, kerosene, gasoline rapeseed, cylinexplosives.
Fan belts (if leather); fats (all); ferrochrome; ferric der, oleo; oxide of zinc.
Paper, newsprint, book; paraffin oil, wax; paranitranialum; ferrocyanide potash; ferromanganese; ferrosilicon;
ferrotitanium; ferrovanadium; fertilizers, including cattle line; peanuts; peanut butter; peanut oil; petroleum; peand sheep manure, nitrate of soda, poudretts, potato trolatum; petroleum jelly; phenol (carbolic acid) and its
manure, potassium salts, land plaster, potash, cyanamide, derivatives: phosphoric acid; phosphate rock; phosphate
phosphoric acid, phosphate rock, superphosphate, chlorate (sodium); phosphorized, 5 per cent, tin; phosphorus;
of potash, bone meal, bone flour, ground bone, dried pigeons, carrier, and others; pig iron; pilchards, canned;
blood, ammonia and ammonia salts, acid phosphates, pillar presses, power driven; planers; planes (metal workguano, humus, hardwood ashes, soot, and anyhdrous am- ing 36 inches and larger); platinum; plated ware; plummonia: films (all), moving pictures, and scrap; fire box, bago; potash; potash alum lumps; potash and its salts;
boiler;' fish, fresh, dried, and canned; flake graphite; flax; potassium bromide crystals; potassium chlorate; potassium
flour; food grains, flour and meal therefrom; fodder and permangate; potassium salts; potato manure; potential
transformers; Poudrette; poultry; prawn; print paper; profeeds; fuel oils.
Gasoline; gauges for steam boilers; german silver; glass filers; prussiate soda; propeller shaft; pulp boards; pumps,
reflectors; glycerin; glucose; graphite; grease of animal or steam and electric driven; primers; potassium citrate.
vegetable origin; grinders, internal, plain, and universal;
Quicksilver; quinine sulphate.
grinding heads; grindstones, power-driven; ground bone;
Radio apparatus and all accessories; rapeseed oil;
guano.
reamers; reflector, searchlight; rice.; rice flour; red oil;
Hair, animal;hand-lantern oil; hardwood ashes; harness; rolled oats; rope, manila; rosin; rosin oil; rye.
hemp and manufactures thereof; hides; high-speed steel;
Saddles; sago flour; salammoniac; saltpeter; samp, Inhoof oil; humus; hulls, fodder; hydrofluoric acid; hydro- dian corn; sawmill machinery (iron and steel); screw plates
quinine; hyposulphite of soda.
for cutting thread; screw machines; screw machines, auto-




868

FEDERAL RESERVE BULLETIN,

matic; searchlights; seamless tubes; searchlight and generators suitable lor Army and Navy use; sensitized potash;
sheet bars, steel; slabs, steel; sheep manure; ship stores;
shoes, leather; snooks (if of wood, specified in the proclamation of Aug. 27, 1917); sirup; sisal; silver nitrate; silverplated ware; skins; soap; soaj) powder; sodium; sodium
cyanide; sodium fluoride; sodium hyposulphite; sodium
bisulghate; sodium sulphite; sodium phosphate; sodium
sulphide; solder; soot; soup paste; specular iron; spelter;
spiegeleisen; spruce, wood; staves (if of wood specified in
the proclamation of Aug. 27, 1917); steam boilers; steam
boiler tubes; stearine; stearineacid; stearine-acid candles;
steel shapes—beams, all sizes, channels, all sizes, angles,
all sizes, tees and zees; steel, fabricated, structural, including beams, channels, angles, tees and zees, and plates,
fabricated and shipped knocked down; steel plates, including ship boiler, tank, and all other steel plates $ of an
inch thick and heavier and wider than 6 inches and circles
over 6 inches in diameter (this included No. 11 U. S.
gauge but not No. 11 B. W. gauge); steel hardening materials; steel ingots: billets, blooms, slats, sheet bars; steel
scrap; steel: tool, high-speed; steel alloys'; sugar; sugar
of milk; sulphate copper; sulphate of soda; sulphur; sulphate of—ammonia, antimony, alumina, barium, iron,
quinine; sulphide of antimony (stibnite); sulphurated
castor oil; sulphuric acid and its salts; sulphuric acid; superphosphate; superheaters.
Tachometer; tallow; tallow candles; tamales; tank plates;
taps and dies (machine); tetranitroanilinc; tetanitromethylaniline; tees, iron, steel; telephone apparatus; tetranitroethylaniline; tin; tin, all articles containing; tin cans,
except when used as containers; tin foil; tin plate, terneplate; toluol; toluol and its derivatives; trinitrotoluol; tools,
machine; toluidine; orthotoluidine; paratoluidine; tool
steel; toys (tin, brass, lead, etc.); tungsten; turbines; turpentine; turpentine, crude; turret holders; twine, binder;
twist drills; type, printing; tools, boiler, iron, steel,
copper.
Vanadium; vaseline; vises (bench drill); vegetable oils;
vitriol, blue.
Walnut, wood; welting; wheat, wheat flour; white
enamel book paper; white lead (dry); wireless apparatus
and accessories; wood, ash, spruce, walnut, mahogany,
oak, birch; wood pulp; woodworking machinery, power
driven; wool; wool clippings; wool products; wool rags.
X-ray apparatus.
Xylidine; xylol.
Zees, iron, steel; zinc; zinc oxide; zinc sulphate; zinc
white (dry).

NOVEMBER 1,1917.

War-Revenue Act,
Because of their significance to bankers and
business men, there are herewith reprinted certain portions of the "act to provide revenue to
defray war expenses, and for other purposes,"
which became law October 3, 1917:
[Public—No. 50—65th Congress. H. R. 4280.]

An act to provide revenue to defray war expenses, and
for other purposes.
Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,
*
*
*
*
*
TITLE II.—WAR EXCESS PROFITS TAX.

SEC. 200. That when used in this title—
The term "corporation" includes joint-stock companies
or associations and insurance companies;
The term "domestic" means created under the law of
the United States, or of any State, Territory, or District
thereof, and the term "foreign" means created under the
law of any other possession of the United States or of any
foreign country or Government;
The term "United States" means only the States, the
Territories of Alaska and Hawaii, and the District of
Columbia;
The term "taxable year" means the twelve months
ending December thirty-first, excepting in the case of a
corporation or partnership which has fixed its own fiscal
year, in which case it means such fiscal year. The first
taxable year shall be the year ending December thirtyfirst, nineteen hundred and seventeen, except that in
the case of a corporation or partnership which has fixed
its own fiscal year, it shall be the fiscal year ending during
the calendar year nineteen hundred and seventeen. If a
corporation or partnership, prior to March first, nineteen
hundred and eighteen, makes a return covering its own.
fiscal year, and includes therein the income received
Shippers should note that every article of during that part of the fiscal year falling within the calencommerce is included in the list of articles men- j dar year nineteen hundred and sixteen, the tax for such
tioned in the first division of the President's | taxable year shall be that proportion of the tax computed
proclamation of August 27, and will therefore upon the net income during such full fiscal year which
require licenses when shipped to Albania, Aus- the time from January first, nineteen hundred and seventria-Hungary, that portion of Belgium occupied teen, to the end of such fiscal year bears to the full fiscal
by the military forces of Germany, Bulgaria, year; and
Denmark (her colonies, possessions, or protec- The term "prewar period" means the calendar years
torates), Germany (her colonies, possessions, or nineteen hundred and eleven, nineteen hundred and
protectorates), Greece, Leichtenstein, Luxem- twelve, and nineteen hundred and thirteen, or, if a corpoburg, the Kingdom of the Netherlands (in Eu- ration or partnership was not in existence or an individual
rope), Norway, Spain (her colonies, possessions, was not engaged in a trade or business during the whole
or protectorates), Sweden, Switzerland, or of such period, then as many of such years during the
Turkey (excluding any portion of the foregoing whole of which the corporation or partnership was in
occupied by the military forces of the United existence or the individual was engaged in the trade or
States or the nations associated with the United business.
States in the war) or any territory occupied by The terms "trade" and "business" include professions
the military forces of Germany or her allies.
and occupations.




NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN,

869

The term "net income" means in the case of a foreign capital for the taxable year which the average amount of
corporation or partnership or a nonresident alien individ- the annual net income of the trade or business during the
ual, the net income received from sources within the prewar period was of the invested capital for the prewar
period (but not less than seven or more than nine per
United States.
SEC. 201. That in addition to the taxes under existing centum of the invested capital for the taxable year), and
law and under this act there shall be levied, assessed, (2) $3,000;
(b) In the case of a domestic partnership or of a citizen
collected, and paid for each taxable year upon the income
of every corporation, partnership, or individual, a tax or resident of the United States, the sum of (1) an amount
(hereinafter in this title referred to as the tax) equal to equal to the same percentage of the invested capital for the
taxable year which the average amount of the annual net
the following percentages of the net income:
Twenty per centum of the amount of the net income in income of the trade or business during the prewar period
excess of the deduction (determined as hereinafter pro- was of the invested capital for the prewar period (but not
vided) and not in excess of fifteen per centum of the in- less than seven or more than nine per centum of the invested capital for the taxable year), and (2) §6,000;
vested capital for the taxable year;
Twenty-five per centum of the amount of the net income
(c) In the case of a foreign corporation or partnership
in excess of fifteen per centum and not in excess of twenty or of a nonresident alien individual, an amount ascerper centum of such capital;
tained in the same manner as provided in subdivisions
Thirty-five per centum of the amount of the net income (a) and (b) without any exemption of $3,000 or $6,000.
in excess of twenty per centum and not in excess of twenty(d) If the Secretary of the Treasury is unable satisfacfive per centum of such capital;
torily to determine the average amount of the annual net
Forty-five per centum of the amount of the net income income of the trade or business during the prewar period,
in excess of twenty-five per centum and not in excess of the deduction shall be determined in the same manner as
provided in section two hundred and five.
thirty-three per centum, of such capital; and
Sixty per centum of the amount of the net income in
SEC. 204. That if a corporation or partnership was
excess of thirty-three per centum of such capital.
not in existence, or an individual was not engaged
For the purpose of this title every corporation or partner- ! in the trade or business, during the whole of any one
ship not exempt under the provisions of this section shall j calendar year during the prewar period, the deduction
be deemed to be engaged in business, and all the trades | shall be an amount equal to eight per centum of the
and businesses in which it is engaged shall be treated as a j invested capital for the taxable year, plus in the case of a
single trade or business, and all its income from whatever domestic corporation $3,000, and in the case of a domestic
source derived shall be deemed to be received from such i partnership or a citizen or resident of the United States
trade or business.
j $6,000.
This title shall apply to all trades or businesses of whatA trade or business carried on by a corporation, partnerever description, whether continuously carried on or not, ship, or individual, although formally organized or reorexcept—
ganized on or after January second, nineteen hundred and
(a) In the case of officers and employees under the thirteen, which is substantially a continuation of a trade
United States, or any State, Territory, or the District of j or business carried on prior to that date, shall, for the purColumbia, or any local subdivision thereof, the compensa- ! poses of this title, be deemed to have been in existence
tion or fees received by them as such officers or employees; prior to that date, and the net income and invested capital
(b) Corporations exempt from tax under the provisions of its predecessor prior to that date shall be deemed to
of section eleven of Title I of such act of September eighth, have been its net income and invested capital.
nineteen hundred and sixteen, as amended by this act,
SEC. 205. (a) That if the Secretary of the Treasury, upon
and partnerships and individuals carrying on or doing the complaint finds either (1) that during the prewar period a
same business, or coming within the same description; and domestic corporation or partnership, or a citizen or resident
(c) Incomes derived from the business of life, health, of the United States, had no net income from the trade or
and accident insurance combined in one policy issued on business, or (2) that during the prewar period the perthe weekly premium payment plan.
centage, which the net income was of the invested capital,
SEC. 202. That the tax shall not be imposed in the case was low as compared with the percentage, which the net
of the trade or business of a foreign corporation or partner- income during such period of representative corporations,
ship or a nonresident alien individual, the net income of partnerships, and individuals, engaged in a like or similar
which trade or business during the taxable year is less trade or business, was of their invested capital, then the
than §3,000.
deduction shall be the sum of (1) an amount equal to the
SEC. 203. That for the purposes of this title the deduc- same percentage of its invested capital for the taxable year
tion shall be as follows, except as otherwise in this title which the average deduction (determined in the same
manner as provided in section two hundred and three,
provided—
(a) In the case of a domestic corporation, the sum of (1) without including the $3,000 or $6,000 therein referred to)
an amount equal to the same percentage of the invested for such year of representative corporations, partnerships,




870

FEDEBAL RESEKVE BULLETIN.

or individuals, engaged in a like or similar trade or business, is of their average invested capital for such year plus
(2) in the case of a domestic corporation $3,000, and in the
case of a domestic partnership or a citizen or resident of the
United States $6,000.
The percentage which the net income was of the invested
capital in each trade or business shall be determined by
the Commissioner of Internal Revenue in accordance with
regulations prescribed by him, with the approval of the
Secretary of the Treasury. In the case of a corporation or
partnership which has fixed its own fiscal year, the percentage determined by the calendar year ending during
such fiscal year shall be used.
(b) The tax shall be assessed upon the basis of the deduction determined as provided in section two hundred
and three, but the taxpayer claiming the benefit of this
section may at tbp time of making the return file a claim
for abatement of the amount by which the tax so assessed
exceeds a tax computed upon the basis of the deduction
determined as provided in this section. In such event,
collection of the part of the tax covered by such claim for
abatement shall not be made until the claim is decided,
but if, in the judgment of the Commissioner of Internal
Revenue, the interests of the United States would be
jeopardized thereby he may require the claimant to give
a bond in such amount and with such sureties as the commissioner may think wise to safeguard such interests, conditioned for the payment of any tax found to be due, with
the interest thereon, and if such bond, satisfactory to the
commissioner, is not given within such time as he prescribes, the full amount of tax assessed shall be collected
and the amount overpaid, if any, shall upon final decision
of the application be refunded as a tax erroneously or
illegally collected.
SEC. 206. That for the purposes of this title the net
income of a corporation shall be ascertained and returned
(o) for the calendar years nineteen hundred and eleven
and nineteen hundred and twelve upon the same basis
and in the same manner as provided in section thirtyeight of the act entitled "An act to provide revenue,
equalize duties, and encourage the industries, of the United
States, and for other purposes," approved August fifth,
nineteen hundred and nine, except that income taxes
paid by it within the year imposed by the authority of the
United States shall be included; (6) for the calendar year
nineteen hundred and thirteen upon the same basis and
in the same manner as provided in section II of the act
entitled "An act to reduce tariff duties and to provide
revenue for the Government, and for other purposes,"
approved October third, nineteen hundred and thirteen,
except that income taxes paid by it within the year imposed by the authority of the United States shall be
included, and except that the amounts received by it as
dividends upon the stock or from the net earnings of
other corporations, joint-stock companies or associations,
or insurance companies, subject to the tax imposed by
section II of such act of October third, nineteen hundred




NOVEMBER 1,1917.

and thirteen, shall be deducted; and (c) for the taxable
year upon the same basis and in the same manner as provided in Title I of the act entitled "'An act to increase the
revenue, and for other purposes," approved September
eighth, nineteen hundred and sixteen as amended by
this act, except that the amounts received by it as dividends upon the stock or from the net earnings of other
corporations, joint-stock companies or associations, or
insurance companies, subject to the tax imposed by Title
I of such act of September eighth, nineteen hundred and
sixteen, shall be deducted.
The net income of a partnership or individual shall be
ascertained and returned for the calendar years nineteen
hundred and eleven, nineteen hundred and twelve, and
nineteen hundred and thirteen, and for the taxable year,
upon the same basis and in the same manner as provided
in Title I of such act of September eighth, nineteen hundred and sixteen, as amended by this act, except that the
credit allowed by subdivision (6) of section five of such
act shall be deducted. There shall be allowed (a) in the
case of a domestic partnership the same deductions as
allowed to individuals in subdivision (a) of section five
of such act of September eighth, nineteen hundred and
sixteen, as amended by this act; and (6) in the case of a
foreign partnership the same deductions as allowed to
individuals in subdivision (a) of section six of such act as
amended by this act.
SEC. 207. That as used in this title, the term "invested
capital" for any year means the average invested capital
for the year, as defined and limited in this title, averaged
monthly.
As used in this title "invested capital" does not include
stocks, bonds (other than obligations of the United States),
or other assets, the income from which is not subject to
the tax imposed by this title nor money or other property borrowed, and means, subject to the above limitations:
(a) In the case of a corporation or partnership: (1) Actual
cash paid in, (2) the actual cash value of tangible property paid in other than cash, for stock or shares in such corporation or partnership, at the time of such payment (but
in case such tangible property was paid in prior to January first, nineteen hundred and fourteen, the actual cash
value of such property as of January first, nineteen hundred and fourteen, but in no case to exceed the par value
of the original stock or shares specifically issued therefor),
and (3) paid in or earned surplus and undivided profits
used or employed in the business, exclusive of undivided
profits earned during the taxable year: Provided. That
(a) the actual cash value of patents and copyrights paid
in for stock or shares in such corporation or partnership,
at the time of such payment, shall be included as invested
capital, but not to exceed the par value of such stock or
shares at the time of such payment, and (6) the good will,
trade-marks, trade brands, the franchise of a corporation
or partnership, or other intangible property, shall be included as invested capital if the corporation or partner-

NOVEMBER 1,

1917.

FEDERAL KESEBVE BULLETIN.

871

ship made payment bona fide therefor specifically as such
SEC. 209. That in the case of a trade or business having
in cash or tangible property, the value of such good will, no invested capital or not more than a nominal capital
trade-mark, trade brand, franchise, or intangible prop- there shall be levied, assessed, collected and paid, in addierty, not to exceed the actual cash or actual cash value tion to the taxes under existing law and under this act,
of the tangible property paid therefor at the time of such in lieu of the tax imposed by section two hundred and one,
payment: but good will, trade-marks, trade brands, fran- a tax equivalent to eight per centum of the net income of
chise of a corporation or partnership, or other intangible such trade or business in excess of the following deductions:
property, bone fide purchased, prior to March third, nine- In the case of a domestic corporation $3,000, and in the
teen hundred and seventeen, for and with interests or case of a domestic partnership or a citizen or resident of
shares in a partnership or for and with shares in the capital the United States $6,000; in the case of all other trades
stock of a corporation (issued prior to March third, nine- or business, no deduction.
teen hundred and seventeen), in an amount not to exceed,
SEC. 210. That if the Secretary of the Treasury is unable
on March third, nineteen hundred and seventeen, twenty in any case satisfactorily to determine the invested capital,
per centum of the total interests or shares in the partner- the amount of the deduction shall be the sum of (1) an
ship or of the total shares of the capital stock of the cor- amount equal to the same proportion of the net income of
poration, shall be included in invested capital at a value the trade or business received during the taxable year as
not to exceed the actual cash value at the time of such the proportion which the average deduction (determined
purchase, and in case of issue of stock therefor not to ex- in the same manner as provided in section two hundred
ceed the par value of such stock;
and three, without including the $3,000 or $6,000 therein
(5) In the case of an individual, (1) actual cash paid referred to) for the same calendar year of representative
into the trade or business, and (2) the actual cash value corporations, partnerships, and individuals, engaged in a
of tangible property paid into the trade or business, other like or similar trade or business, bears to the total net
than cash, at the time of such payment (but in case such income of the trade or business received by such corporatangible property was paid in prior to January first, nine- tions, partnerships, and individuals, plus (2) in the case
teen hundred and fourteen, the actual cash value of such of a domestic corporation $3,000, and in the case of a doproperty as of January first, nineteen hundred and four- mestic partnership or a citizen or resident of the United
teen), and (3) the actual cash value of patents, copyrights, States $6,000.
good will, trade-marks, trade brands, franchises, or other
For the purpose of this section the proportion between
intangible property, paid into the trade or business, at the deduction and the net income in each trade or busithe time of such payment, if payment was made therefor ness shall be determined by the Commissioner of Internal
specifically as such in cash or tangible property, not to Revenue in accordance with regulations prescribed by
exceed the actual cash or actual cash value of the tangi- him, with the approval of the Secretary of the Treasury.
ble property bona fide paid therefor at the time of such In the case of a corporation or partnership which has fixed
payment.
its own fiscal year, the proportion determined for the calIn the case of a foreign corporation or partnership or of endar year ending during such fiscal year shall be used.
a nonresident alien individual the term * * invested capital" SEC. 211. That every foreign partnership having a net
means that proportion of the entire.in vested capital, as income of $3,000 or more for the taxable year, and every
defined and limited in this title, which the net income domestic partnership having a net income of $6,000 or
from sources within the United States bears to the entire more for the taxable year, shall render a correct return of
the income of the trade or business for the taxable year,
net income.
SEC. 208. That in case of the reorganization, consolida- setting forth specifically the gross income for such year,
tion, or change of ownership of a trade or business after and the deductions allowed in this title. Such returns
March third, nineteen hundred and seventeen, if an inter- shall be rendered at the same time and in the same manner
est or control in such trade or business of fifty per centum as is prescribed for income-tax returns under Title I of
or more remains in control of the same person, corporations, such act of September eighth, nineteen hundred and sixassociations, partnerships, or any of them, then in ascer- teen, as amended by this act.
SEC. 212. That all administrative, special, and general
taining the invested capital of the trade or business no
asset transferred or received from the prior trade or business provisions of law, including the laws in relation to the
shall be allowed a greater value than would have been assessment, remission, collection, and refund of internalallowed under this title in computing the invested capital revenue taxes not heretofore specifically repealed, and
of such prior trade or business if such asset had not been not inconsistent with the provisions of this title are hereby
so transferred or received, unless such asset was paid for extended and made applicable to all the provisions of
specifically as such, in cash or tangible property, and then this title and to the tax herein imposed, and all provisions
not to exceed the actual cash or actual cash value of the of Title I of such act of September eighth, nineteen huntangible property paid therefor at the time of such pay- dred and sixteen, as amended by this act, relating to
returns and payment of the tax therein imposed, including
ment.




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FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

by any form of mechanical motor power on a regular
established line when in competition with carriers by
rail or water, from one point in the United States to
another or to any point in Canada or Mexico, where the
ticket therefor is sold or issued in the United States, not
including the amount paid for commutation or season
tickets for trips leas than thirty miles, or for transportation the fare for which does not exceed 35 cents, and a
tax equivalent to ten per centum of the amount paid for
seats, berths, and staterooms in parlor cars, sleeping cars,
or on vessels. If a mileage book used for such transportation or accommodation has been purchased before this
section takes effect, or if cash fare be paid, the tax imposed by this section shall be collected from the person
presenting the mileage book, or paying the cash fare, by
the conductor or other agent, when presented for such
transportation or accommodation, and the amount so
collected shall be paid to the United States in such,
manner and at such times as the Commissioner of Internal
Revenue, with the approval of the Secretary of the Treasury, may prescribe; if a ticket (other than a mileage
book) is bought and partially used before this section goes
into effect it shall not be taxed, but if bought but not
so used before this section takes effect, it shall not be
valid for passage until the tax has been paid and such
payment evidenced on the ticket in such manner as the
commissioner of Internal Revenue, with the approval of
the Secretary of the Treasury, may by regulation prescribe; (d) a tax equivalent to five por centum of the
amount paid for the transportation of oil by pipe line;
(e) a tax of 5 cents upon each telegraph, telephone, or
radio, dispatch, message, or conversation, which originates within the United States, and for the transmission
of which a charge of 15 cents or more is imposed: ProTITLE V.—WAR TAX ON FACILITIES FURNISHED BY vided, That only one payment of such tax shall be rePUBLIC UTILITIES, AND INSURANCE.
quired, notwithstanding the lines or stations of one or
SEC. 500. That from and after the first day of Novem- more persons, corporations, partnerships, or associations,
ber, nineteen hundred and seventeen, there shall be shall be used for the" transmission of such dispatch, meslevied, assessed, collected, and paid (a) a tax equivalent sage or conversation.
to three per centum of the amount paid for the transporSEC. 501. That the taxes imposed by section live huntation by rail or water or by any form of mechanical dred shall be paid by the person, corporation, partnermotor power when in competition with carriers by rail ship, or association paying for the services or facilities
or water of property by freight consigned from one point rendered.
in the United States to another; (b) a tax of 1 cent for each
In case such carrier does not, because of its ownership
20 cents, or fraction thereof, paid to any person, corpora- of the commodity transported, or for any other reason,
tion, partnership, or association, engaged in the busi- receive the amount which as a carrier it would otherwise
ness of transporting parcels or packages by express over charge, such carrier shall pay a tax equivalent to the tax
regular routes between fixed terminals, for the trans- j which would be imposed upon the transportation of such
portation of any package, parcel, or shipment by express ! commodity if the carrier received payment for such
from one point in the United States to another: Provided, jtransportation: Provided, That in case of a carrier which
That nothing herein contained shall be construed to j on May first, nineteen hundred and seventeen, had no
require the carrier collecting such tax to list separately | rates or tariffs on file with the proper Federal or State
in any bill of lading, freight receipt, or other similar authority, the tax shall be computed on the basis of the
document, the amount of the tax herein levied, if the rates or tariffs of other carders for like services as ascertotal amount of the freight and tax be therein stated; j tained and determined by the Commissioner of Internal
(c) a tax equivalent to eight per centum of the amount i Revenue: Provided further, That nothing in this or the
paid for the transportation of persons by rail or water, or ! preceding section shall be construed as imposing a tax (a)

penalties, are hereby made applicable to the tax imposed
by this title.
SEC. 213. That the Commissioner of Internal Revenue
with the approval of the Secretary of the Treasury, shall
make all necessary regulations for carrying out the provisions of this title, and may require any corporation, parnership, or individual, subject to the provisions of this
title, to furnish him with such facts, data, and information as in his judgment are necessary to collect the tax
imposed by this title.
SEC. 214. That Title II (sections two hundred to two
hundred and seven, inclusive) of the act entitled "An act
to provide increased revenue to defray the expenses of
the increased appropriations for the Army and Navy, and
the extensions of fortifications, and for other purposes,"
approved March third, nineteen hundred and seventeen,
is hereby repealed.
Any amount heretofore or hereafter paid on account of
the tax imposed by such Title II, shall be credited toward
the payment of the tax imposed by this title, and if the
amount so paid exceeds the amount of such tax the excess
shall be refunded as a tax erroneously or illegally collected.
Subdivision (1) of section three hundred and one of such
act of September eighth, nineteen hundred and sixteen,
is hereby amended so that the rate of tax for the taxable
year nineteen hundred and seventeen shall be ten per
centum instead of twelve and one-half per centum, as
therein provided.
Subdivision (2) of such section is hereby amended to read
as follows:
"(2) This section shall cease to be of effect on and after
January first, nineteen hundred and eighteen.
**
*
*
*




NOVEMBER 1,1917.

FEDERAL RESERVE B U L L E T I N ,

873

upon the transportation of any commodity which is neces- person, corporation, partnership, or association, transactsary for the use of the carrier in the conduct of its business ing the business of employer's liability, workmen's comas such and is intended to be so used or has been so used; pensation, accident, health, tornado, plate glass, steam
or (b) upon the transportation of company material trans- boiler, elevator, burglary, automatic sprinkler, automobile,
ported by one carrier, which constitutes a part of a rail- or other branch of insurance (except life insurance, and
road system, for another carrier which is also a part of the insurance described and taxed in the preceding subdivision): Provided, That policies of reinsurance shall be
same system.
SEC. 502. That no tax shall be imposed under section exempt from the tax imposed by this subdivision;
(d) Policies issued by any person, corporation, partnerfive hundred upon any payment received for services
rendered to the United States, or any State, Territory, or ship, or assocaition, whose income is exempt from taxathe District of Columbia. The right to exemption under tion under Title I of the act entitled "An act to increase
this section shall be evidenced in such manner as the the revenue, and for other purposes," approved SeptemCommissioner of Internal Revenue, with the approval of ber eighth, nineteen hundred and sixteen, shall be exthe Secretary of the Treasury, may by regulation prescribe. empt from the taxes imposed by this section.
SEC. 505. That every person, corporation, partnership,
SEC. 503. That each person, corporation, partnership,
or association receiving any payments referred to in sec- or association, issuing policies of insurance upon the istion five hundred shall collect the amount of the tax, if suance of which a tax is imposed by section five hundred
any, imposed by such section from the person, corpora- and four, shall, within the first fifteen days of each month,
tion, partnership, or association making such payments, make a return under oath, in duplicate, and pay such tax
and shall make monthly returns under oath, in duplicate, to the collector of internal revenue of the district in which
and pay the taxes so collected and the taxes imposed upon the principal office or place of business of such person,
it under paragraph two of section five hundred and one to corporation, partnership, or association is located. Such
the collector of internal revenue of the district in which returns shall contain such information and be made in
the principal office or place of business is located. Such such manner as the Commissioner or Internal Revenue,
returns shall contain such information, and be made in with the approval of the Secretary of the Treasury, may
such manner, as the Commissioner of Internal Revenue, by regulation prescribe.
#
*
*
#
*
with the approval of the Secretary of the Treasury, may
TITLE VIII.—WAR STAMP TAXES.
by regulation prescribe.
SEC. 504. That from and after the first day of November,
SEC. 800. That on and after the first day of December,
nineteen hundred and seventeen, there shall be levied, nineteen hundred and seventeen, there shall be levied,
assessed, collected, and paid the following taxes on the collected, and paid, for and in respect of the several bonds,
issuance of insurance policies:
debentures, or certificates of stock and of indebtedness,
(a) Life insurance: A tax equivalent to 8 cents on each and other documents, instruments, matters, and things
$100 or fractional part thereof of the amount for which any mentioned and described in Schedule A of this title, or
life is insured under any policy of insurance, or other for or in respect of the vellum, parchment, or paper upon
instrument, by whatever name the same is called: Pro- which such instruments, matters, or things, or any of them,
vided, That on all policies for life insurance only by which are written or printed, by any person, corporation, partnera life is insured not in excess of §500, issued on the in- ship, or association who makes, signs, issues, sells, removes,
dustrial or weekly-payment plan of insurance, the tax consigns, or ships the same, or for whose use or benefit the
shall be forty per centum of the amount of the first weekly same are made, signed, issued, sold, removed, consigned,
premium: Provided further, That policies of reinsurance or shipped, the several taxes specified in such schedule.
shall be exempt from the tax imposed by this subdivision;
SEC. 801. That there shall not be taxed under this title
(b) Marine, inland, and fire insurance: A tax equivalent any bond, note, or other instrument, issued by the United
to 1 cent on each dollar or fractional part thereof of the States, or by any foreign Government, or by any State,
premium charged under each policy of insurance or other Territory or the District of Columbia, or local subdivision
instrument by whatever name the same is called whereby thereof, or municipal or other corporation exercising the
insurance is made or renewed upon property of any taxing power, when issued in the exercise of a strictly
description (including rents or profits), whether against governmental, taxing, or municipal function; or stocks
peril by sea or inland waters, or by fire or lightning, or and bonds issued by cooperative building and loan associaother peril: Provided, That policies of reinsurance shall be tions which are organized and operated exclusively for
exempt from the tax imposed by this subdivision;
the benefit of their members and make loans only to their
(c) Casualty insurance: A tax equivalent to 1 cent on shareholders, or by mutual ditch or irrigating companies.
each dollar or fractional part thereof of the premium
SEC. 802. That whoever—
charged under each policy or insurance or obligation of
(a) Makes, signs, issues, or accepts, or causes to be
the nature of indemnity for loss, damage, or liability made, signed, issued, or accepted, any instrument, docu(except bonds taxable under subdivision two of schedule A ment, or paper of any kind or description whatsoever
of Title VIII) issued or executed or renewed by any without, the full amount of tax thereon being duly paid:




874

FEDERAL RESERVE BULLETIN.

(6) Consigns or ships, or causes to be consigned or
shipped, by parcel post any parcel, package, or article
without the full amount of tax being duly paid;
(c) Manufacturers or imports and sells, or offers for sale
or causes to be manufactured or imported and sold, or
offered for sale, any playing cards, package, or other article
without the full amount of tax being duly paid;
(d) Makes use of any adhesive stamp to denote any tax
imposed by this title without canceling or obliterating
such stamp as prescribed in section eight hundred and
four;
Is guilty of a misdemeanor and upon conviction thereof
shall pay a fine of not more than $100 for each offense.
SEC. 803. That whoever—
(a) Fraudulently cuts, tears, or removes from any vellum, parchment, paper, instruments, writing, package, or
article, upon which any tax is imposed by this title, any
adhesive stamp or the impression of any stamp, die, plate,
or other article provided, made, or used in pursuance of
this title;
(6) Fraudulently uses, joins, fixes, or places to, with, or
upon any vellum, parchment, paper, instrument, writing,
package, or article, upon which any tax is imposed by this
title, (1) any adhesive stamp, or the impression of any
stamp, die, plate, or other article, which has been cut,
torn, or removed from any other vellum, parchment, paper,
instrument, writing, package, or article, upon which any
tax is imposed by this title; or (2) any adhesive stamp or
the impression of any stamp, die, plate, or other article of
insufficient value; or (3) any forged or counterfeit stamp
or the impression of any forged or counterfeited stamp,
die, plate, or other article;
(c) Willfully removes, or alters the cancellation, or defacing marks of, or otherwise prepares, any adhesive stamp,
with intent to use, or cause the same to be used, after it has
been already used, or knowingly or willfully buys, sells,
offers for sale, or gives away, any such washed or restored
stamp to any person for use, or knowingly uses the same;
(d) Knowingly and without lawful excuse (the burden
of proof of such excuse being on the accused) has in possession any washed, restored, or altered stamp, which has
been removed from any vellum, parchment, paper, instrument, writing, package, or article, is guilty of a misdemeanor, and upon conviction shall be punished by a
fine of not more than $1,000, or by imprisonment for not
more than five years, or both, in the discretion of the court,
and any such reused, canceled, or counterfeit stamp and
the vellum, parchment, document, paper, package, or
article upon which it is placed or impressed shall be forfeited to the United States.
SEC. 804. That whenever an adhesive stamp is used for
denoting any tax imposed by this title, except as hereinafter provided, the person, corporation, partnership, or
association, using or affixing the same shall write or stamp
or cause to be written or stamped thereupon the initials of
his or its name and the date upon which the same is attached or used, eo that the same may not again be used:




NOVEMBER 1,1917.

Provided, That the Commissioner of Internal Revenue may
prescribe such other method for the cancellation of such
stamps as he may deem expedient.
SEC. 805. (a) That the Commissioner of Internal Revenue shall cause to be prepared and distributed for the payment of the taxes prescribed in this title suitable stamps
denoting the tax on the document, articles, or thing to
which the same may be affixed, and shall prescribe such
method for the affixing of said stamps in substitution for
or in addition to the method provided in this title, as he
may deem expedient..
(6) The Commissioner of Internal Revenue, with the
approval of the Secretary of the Treasury, is authorized to
procure any of the stamps provided for in this title by contract whenever such stamps can not be speedily prepared
by the Bureau of Engraving and Printing; but this authority shall expire on the first day of January, nineteen
hundred and eighteen, except as to imprinted stamps furnished under contract, authorized by the Commissioner of
Internal Revenue.
(c) All internal-revenue laws relating to the assessment
and collection of taxes are hereby extended to and made a
part of this title, eo far as applicable, for the purpose of collecting stamp taxes omitted through mistake or fraud from
any instrument, document, paper, writing, parcel, package,
or article named herein.
SEC. 806. That the Commissioner of Internal Revenue
shall furnish to the Postmaster General without prepayment a suitable quantity of adhesive stamps to be distributed to and kept on sale by the various postmasters in
the United States. The Postmaster General may require
each such postmaster to give additional or increased bond
as postmaster for the value of the stamps so furnished, and
each such postmaster shall deposit the receipts from the sale
of such stamps to the credit of and render accounts to the
Postmaster General at such times and in such form as he
may by regulations prescribe. The Postmaster General
shall at least once monthly transfer all collections from this
source to the Treasury as internal-revenue collections.
SEC. 807. That the collectors of the several districts shall
furnish without prepayment to any assistant treasurer or
designated depositary of the United States located in their
respective collection districts a suitable quantity of adhesive stamps for sale. In such cases the collector may
require a bond, with sufficient sureties, to an amount equal
to the value of the adhesive stamps so furnished, conditioned for the faithful return, whenever so required, of all
quantities or amounts undisposed of. and for the payment
monthly of all quantities or amounts sold or not remaining
on hand. The Secretary of the Treasury may from time to
time make such regulations as he may find necessary to
insure the safe-keeping or prevent the illegal use of all such
adhesive stamps.
SCHEDULE A.—STAMP TAXES.

1. Bonds of indebtedness: Bonds, debentures, or certificates of indebtedness issued on and after the first day of

NOVEMBER 1,1917,

FEDERAL RESERVE BULLETIN.

December, nineteen hundred and seventeen, by any person, corporation, partnership, or association, on each $100
of face value or fraction thereof, 5 cents: Provided, That
every renewal of the foregoing shall be taxed as a new issue:
Provided further, That when a bond conditioned for the
repayment or payment of money is given in a penal sum
greater than the debt secured, the tax shall be based upon
the amount secured.
2. Bonds, indemnity and surety: Bonds for indemnifying any person, corporation, partnership, or corporation
who shall have become bound or engaged as surety, and
all bonds for the due execution or performance of any contract, obligation, or requirement, or the duties of any
office or position, and to account for money received by
virtue thereof, and all other bonds of any description,
except such as may be required in legal proceedings, not
otherwise provided for in this schedule, 50 cents: Provided, That where a premium is charged for the execution
of such bond the tax shall be paid at the rate of one per
centum on each dollar or fractional part thereof of the
premium charged: Provided further, That policies of reinsurance shall be exempt from the tax imposed by this
subdivision.
3. Capital stock, issue: On each original issue, whether
on organization or reorganization, of certificates of stock
by any association, company, or corporation, on each $100
of face value or fraction thereof, 5 cents: Provided, That
where capital stock is issued without face value, the tax
shall be 5 cents per share, unless the actual value is in
excess of $100 per share, in which case the tax shall be 5
cents on each $100 of actual value or fraction thereof.
The stamps representing the tax imposed by this subdivision shall be attached to the stock books and not to the
certificates issued.
4. Capital stock, sales or transfers: On all sales, or agreements to sell, or memoranda of sales or deliveries of, or
transfers of legal title to shares or certificates of stock in any
association, company, or corporation, whether made upon
or shown|by[the books of the association, company, or corporation, or by any assignment in blank, or by any delivery, or by any paper or agreement or memorandum or
other evidence of transfer or sale, whether entitling the
holder in any manner to the benefit of such stock or not,
on each $100 of face value or fraction thereof, 2 cents, and
where such shares of stock are without par value, the tax
shall be 2 cents on the transfer or sale or agreement to sell
on each share, unless the actual value thereof is in excess
of $100 per share, in which case the tax shall be 2 cents on
each $100 of actual value or fraction thereof: Provided,
That it is not intended by this title to impose a tax upon
an agreement evidencing a deposit of stock certificates as
collateral security for money loaned thereon, which stock
certificates are not actually sold, nor upon such stock certificates so deposited: Provided further, That the tax shall
not be imposed upon deliveries or transfers to a broker
for sale, nor upon deliveries or transfers by a broker to a
customer for whom and upon whose order he has purchased




same, but such deliveries or transfers shall be accompanied
by a certificate setting forth the facts: Providedfurther,
That in case of sale where the evidence of transfer is shown
only by the books of the company the stamp shall be placed
upon such books; and where the change of ownership is by
transfer of the certificate the stamp shall be placed upon the
certificate; and in cases of an agreement to sell or where the
transfer is by delivery of the certificate assigned in blank
there shall be made and delivered by the seller to the buyer
a bill or memorandum of such sale, to which the stamp
shall be affixed; and every bill or memorandum of sale or
agreement to sell before mentioned shall show the date
thereof, the name of the seller, the amount of the sale, and
the matter or thing to which it refers. Any person or persons liable to pay the tax as herein provided, or anyone
who acts in the matter as agent or broker for such person OF
persons who shall make any such sale, or who shall in pursuance of any such sale deliver any stock or evidence of the
sale of any stock or bill or memorandum thereof, as herein
required, without having the proper stamps affixed thereto
with intent to evade the foregoing provisions shall be
deemed guilty of a misdemeanor, and upon conviction
thereof shall pay a fine of not exceeding $1,000, or be imprisoned not more than six months, or both, at the discretion of the court.
5. Produce, sales of, on exchange: Upon each sale,
agreement of sale, or agreement to sell, including so-called
transferred or scratch sales, any products or merchandise
at any exchange, or board of trade, or other similar place,
for future delivery, for each $100 in value of the merchandise covered by said sale or agreement of sale or agreement
to sell, 2 cents, and for each additional $100 or fractional
part thereof in excess of $100, 2 cents: Provided, That on
every sale or agreement of sale or agreement to sell as
aforesaid there shall be made and delivered by the seller
to the buyer a bill, memorandum, agreement, or other
evidence of such sale, agreement of sale, or agreement to
sell, to which there shall be affixed a lawful stamp or
stamps in value equal to the amount of the tax on such
sale: Provided further, That sellers of commodities described herein, having paid the tax provided by this subdivision, may transfer such contracts to a clearing house
corporation or association, and such transfer shall not be
deemed to be a sale, or agreement of sale, or an agreement
to sell within the provisions of this Act, provided that
such transfer shall not vest any beneficial interest in such
clearing house association but shall be made for the sole
purpose of enabling such clearing house association to
adjust and balance the accounts of the members of said
clearing house association on their several contracts.
And every such bill, memorandum, or other evidence of
sale or agreement to sell shall show the date thereof, the
name of the seller, the amount of the sale, and the matter
or thing to which it refers; and any person or persons liable
to pay the tax as herein provided, or anyone who acts in
the matter as agent or broker for such person or persons,
who shall make any such sale or agreement of sale, or

876

FEDERAL RESERVE BULLETIN.

agreement to sell, or who shall, in pursuance of any such
sale, agreement of sale, or agreement to sell, deliver anysuch products or merchandise without a bill, memorandum, or other evidence thereof as herein required, or who
shall deliver such bill, memorandum, or other evidence of
sale, or agreement to sell, without having the proper
stamps affixed thereto, with intent to evade the foregoing
provisions, shall be deemed guilty of a misdemeanor,
and upon conviction thereof shall pay a fine of not exceeding $1,000, or be imprisoned not more than six months, or
both, at the discretion of the court.
That no bill, memorandum, agreement, or other evidence of such sale, or agreement of sale, or agreement to
sell, in case of cash sales of products or merchandise for
immediate or prompt delivery which in good faith are
actually intended to be delivered shall be subject to this
tax.
6. Drafts or checks payable otherwise than at sight or
on demand, promissory notes, except bank notes issued for
circulation, and for each renewal of the same, for a sum
not exceeding $100, 2 cents; and for each additional $100
or fractional part thereof, 2 cents.
7. Conveyance: Deed, instrument, or writing, whereby
any lands, tenements, or other realty sold shall be granted,
assigned, transferred, or otherwise conveyed to, or vested
in, the purchaser or purchasers, or any other person or
persons, by his, her, or their direction, when the consideration or value of the interest or property conveyed, exclusive of the value of any lien or encumbrance remaining
thereon at the time of sale, exceeds $100 and does not
exceed $500, 50 cents: and for each additional $500 or
fractional part thereof 50 cents: Provided, That nothing
contained in this paragraph shall be so construed as to
impose a tax upon any instrument or writing given to
secure a debt.
8. Entry of any goods, wares, or merchandise at any
custom-house, either for consumption or warehousing, not
exceeding $100 in value, 25 cents; exceeding $100 and not
exceeding §500 in value, 50 cents: exceeding $500 in
value, $1.
9. Entry for the withdrawal of any goods or merchandise
from customs bonded warehouse, 50 cents.
10. Passage ticket, one way or round trip, for each passenger, sold or issued in the United States for passage by
any vessel to a port or place not in the United States,
Canada, or Mexico, if costing not exceeding $30, $1; costing more than $30 and not exceeding $60, $3; costing more
than $60, $5: Provided, That such passage tickets, costing
810 or less, shall be exempt from taxation.
11. Proxy for voting at any election for officers, or meetIng for the transaction of business, of any incorporated
company or association, except religious, educational,
charitable, fraternal, or literary societies, or public cemeteries, 10 cents.
12. Power of attorney granting authority to do or perform some act for or in behalf of the grantor, which authority is not otherwise vested in the grantee, 25 cents: Provided, That no stamps shall be required upon any papers




NOVEMBER 1, 1917.

necessary to be used for the collection of claims from the
United States or from any State for pensions, back pay,
bounty, or for property lost in the military or naval service or upon powers of attorney required in bankruptcy
cases.
13. Playing cards: Upon every pack of playing cards
containing not more than fifty-four cards, manufactured
or imported, and sold, or removed for consumption or
sale, after the passage of this act, a tax of 5 cents per pack
in addition to the tax imposed under existing law.
14. Parcel-post packages: Upon every parcel or package
transported from one point in the United States to another
by parcel post on which the postage amounts to 25 cents
or more, a tax of 1 cent for each 25 cents or fractional part
thereof charged for such transportation, to be paid by the
consignor.
No such parcel or package shall be transported until a
stamp or stamps representing the tax due shall have been
affixed thereto.
*

*

*

.

*

•

*

TITLE X.—ADMINISTRATIVE PROVISIONS.

SEC. 1000. That there shall be levied, collected, and
paid in the United States, upon articles coming into the
United States from the West Indian Islands acquired from
Denmark, a tax equal to the internal-revenue tax imposed
in the United States upon like articles of domestic manufacture; such articles shipped from said islands to the
United States shall be exempt from the payment of any
tax imposed by the internal-revenue laws of said islands:
Providedy That there shall be levied, collected, and paid
in said islands, upon articles imported from the United
States, a tax equal to the internal-revenue tax imposed in
said islands upon like articles there manufactured; and
such articles going into said islands from the United States
shall be exempt from payment of any tax imposed by the
internal-revenue laws of the United States.
SEC. 1001. That all administrative, special, or stamp
provisions of law, including the law relating to the assessment of taxes, so far as applicable, are hereby extended
to and made a part of this act, and every person, corporation, partnership, or association liable to any tax imposed
by this act, or for the collection thereof, shall keep such
records and render, under oath, such statements and
returns, and shall comply with such regulations as the
Commissioner of Internal Revenue, with the approval of
the Secretary of the Treasury, may from time to time
prescribe.
SEC. 1002. That where additional taxes are imposed by
this act upon articles or commodities upon which the tax
imposed by existing law has been paid the person, corporation, partnership, or association required by this act to
pay the tax shall, within thirty days after its passage,
make return under oath in such form and under such
regulations as the Commissioner of Internal Revenue,
with the approval of the Secretary of the Treasury, shall
prescribe. Payment of the tax shown to be due may be
extended to a date not exceeding seven months from the

NOVEMBER 1,

1917.

FEDERAL RESERVE BULLETIN.

877

passage of this act, upon the filing of a bond for payment paid to the United States by such vendor or lessor in the
in such form and amount and with such sureties as the same manner as provided in section five hundred and
Commissioner of Internal Revenue, with the approval of three.
The term "dealer" as used in this section includes a
the Secretary of the Treasury, may prescribe.
SEC. 1003. That in all cases where the method of collect- vendee who purchases any article with intent to use it in
ing the tax imposed by this act is not specifically provided the manufacture or production of another article intended
the tax shall be collected in such manner as the Com- for sale.
SEC. 1008. That in the payment of any tax under this
missioner of Internal Revenue, with the approval of the
Secretary of the Treasury, may prescribe. All adminis- act not payable by stamp a fractional part of a cent shall
trative and penalty provisions of Title VIII of this act, be disregarded unless it amounts to one-half cent or more,
in so far as applicable, shall apply to the collection of any in which case it shall be increased to one cent.
tax which the Commissioner of Internal Revenue deSEC. 1009. That the Secretary of the Treasury, under
termines or prescribes shall be paid by stamp.
rules and regulations prescribed by him, shall permit
SEC. 1004. That whoever, fails to make any return re- taxpayers liable to income and excess profits taxes to make
quired by this act or the regulations made under authority payments in advance in installments or in whole of an
thereof within the time prescribed, or who makes any false amount not in excess of the estimated taxes which will be
or fraudulent return, and whoever evades or attempts to due from them, and upon determination of the taxes actuevade any tax imposed by this act or fails to collect or ally due any amount paid in excess shall be refunded as
truly to account for and pay over any such tax shall be i taxes erroneously collected: Provided, That when payment
subject to a penalty of not more than SI,000, or to imprison- I is made in installments at least one-fourth of such estimated
ment for not more than one year, or both, at the discretion j tax shall be paid before the expiration of thirty days after
of the court, and in addition thereto a penalty of double ! the close of the taxable year, at least an additional onethe tax evaded, or not collected, or accounted for and ! fourth within two months after the close of the taxable
paid over, to be assessed and collected in the same manner year, at least an additional one-fourth within four months
as taxes are assessed and collected, in any case in which after the close of the taxable year, and the remainder of
the tax due on or before the time now fixed by law for such
the punishment is not otherwise specifically provided.
SEC. 1005. That the Commissioner of Internal Revenue, payment: Provided further, That the Secretary of the
with the approval of the Secretary of the Treasury, is Treasury, under rules and regulations prescribed by him,
hereby authorized to make all needful rules and regula- may allow credit against such taxes so paid in advance of
an amount not exceeding three per centum per annum
tions for the enforcement of the provisions of this act.
SEC. 1006. That where the rate of tax imposed by this calculated upon the amount so paid from the date of such
act, payable by stamps, is an increase over previously payment to the date now fixed by law for such payment;
existing rates stamps on hand in the collectors' offices but no such credit shall be allowed on payments in excess
and in the Bureau of Internal Revenue may continue to of taxes determined to be due, nor on payments made after
be used until the supply on hand is exhausted but shall the expiration of four and one-half months after the close
be sold and accounted for at the rates provided by this of the taxable year. All penalties provided by existing
act, and assessment shall be made against manufacturers law for failure to pay tax when due are hereby made
and other taxpayers having such stamps on hand on the applicable to any failure to pay the tax at the time or times
day this act takes effect for the difference between the required in this section.
amount paid for such stamps and the tax due at the rates
SEC. 1010. That under rules and regulations prescribed
provided by this act.
by the Secretary of the Treasury, collectors of internal
SEC. 1007. That (a) if any person, corporation, partner- revenue may receive, at par and accrued interest, certifiship, or association has prior to May ninth, nineteen cates of indebtedness issued under section six of the act
hundred and seventeen, made a bona fide contract with entitled "An act to authorize an issue of bonds to meet
a dealer for the sale, after the tax takes effect, of any expenditures for the national security and defense, and,
article (or, in the case of moving-picture films, such a for the purpose of assisting in the prosecution of the war, to
contract with a dealer, exchange, or exhibitor, for the extend credit to foreign governments, and for other pursale or lease thereof) upon which a tax is imposed under poses," approved April twenty-fourth, nineteen hundred
Title III, IV, or VI, or under subdivision thirteen of and seventeen, and any subsequent act or acts, and unSchedule A of Title VIII, or under this section, and (b) certified checks in payment of income and excess-profits
if such contract does not permit the adding of the whole taxes, during such time and under such regulations as the
of such tax to the amount to be paid under such contract, Commissioner of Internal Revenue, with the approval of
then the vendee or lessee shall, in lieu of the vendor or the Secretary of the Treasury, shall prescribe; but if a
lessor, pay so much of such tax as is not so permitted to be check so received is not paid by the bank on which it is
added to the contract price.
drawn the person by whom such check has been tendered
The taxes payable by the vendee or lessee under this shall remain liable for the payment of the tax and for all
section shall be paid to the vendor or lessor at the time the legal penalties and additions the same as if such check had
sale or lease is consummated, and collected, returned, and not been tendered.




878

FEDERAL RESERVE BULLETIN,

NOVEMBER 1,1917.

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:
Drafts Drawn for the Purpose of Financing Sale of Goods
to' Allied Purchasing Commissions.
(To an individual.)

I wish to acknowledge receipt of your letter
of October 16, 1917, relating to the right of a
member bank to accept drafts drawn for the
purpose of financing the sale of goods to one of
the allied purchasing commissions, such goods
to be delivered aboard ship and paid for within
a reasonable time thereafter.
Section 13 of the Federal Reserve Act authorizes any member bank to accept drafts or
bills of excnange "growing out of transactions
involving the importation or exportation of
goods." The Board believes that the sale of
goods to be exported by the purchaser in the
manner indicated in your letter comes within
the terms of that section even though the title
to the goods be transferred to the foreign purchaser before the shipment out of the United
States actually begins. The transaction against
which the draft is drawn involves the direct
sale to a foreign purchaser, and the fact that
the sale itself may be consummated before the
exportation of the goods actually commences
is immaterial, provided, of course, that the
transaction is bona fide and that the accepting bank has no reason to believe that the purchaser will divert the goods from their foreign
destination.
It may be mentioned in this connection that
even if this transaction did not involve the exportation of goods a member bank might accept a draft drawn for the purpose of financing
it if it involved a domestic shipment of goods
and if the shipping documents are attached at
the time of acceptance. An acceptance of that
character would seem to be permissible in any
case where the goods are shipped from the
interior to the seaboard preparatory to exportation.
OCTOBER 19,




1917.

Substantial Competition Within the Meaning of the
Clayton Act.
(To a Federal Reserve Bank.)

Confirming our talk over the telephone
to-day, at your request I repeat in writing
what I said to you in reply to your question,
whether or not directors of national banks now
serving on trust-company boards would have
to resign in case the trust companies should
become purchasers of bankers7 acceptances or
first-class commercial paper.
Inasmuch as national banks engage primarily in the commercial banking business,
the policy of the Board in passing upon applications filed under the Kern amendment
has been to give special consideration to this
character of business. If an application was
received from an officer or director of a national bank for permission to serve at the
same time with a trust company or other bank,
the Board has been inclined to refuse its
permission if the two banks grant commercial
credits or receive and solicit commercial deposit accounts in the same general territory.
On the other hand, the Board has not been
inclined to refuse its permission merely because
both institutions purchase acceptances or firstclass commercial paper in the open market. It
recognizes that both of these classes of paper
have a wide market and that the purchase of
such paper does not of itself constitute competition. It appreciates the fact that many banking institutions and trust companies, as an
incident of the business engaged in, may make
call loans on the stock excnange or may make
loans or purchase Government bonds or other
securities which "have a wide or general market
without competing for local business.
In reply to the specific question, therefore,
I feel that it is safe to assure you that a director of a national bank now serving with a
trust company would not be required to resign
in case the trust company should become the
purchaser of bankers acceptances or of firstclass commercial paper, but did not otherwise
come into competition with the national bank.
This has been the policy of the Board in
the past and is the Board's policy at this time.
You understand, of course, that it is a policy
which is subject to review by any future
Board. Indeed, though this is not likely,
it may be changed at any time.
OCTOBER 15,

1917.

879

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

Limitations Under Section 5200, R. S.
(To Federal Reserve Banks.)

feels that the renewal should be an exception
rather than the rule. The matter has been
referred to the proper committee of the Board
for report and a circular letter will be sent to
all Federal Reserve Banks on the subject
within the next few days.

From inquiries received at this office it appears that the officers of some nonmember
State banks and trust companies are under the
misapprehension that such banks and trust
SEPTEMBER 12, 1917.
companies becoming members of the Federal
Reserve System are subject to the limitations
imposed fy section 5200, Revised Statutes,
which limit the total liabilities to a national Advertisements of " Clearing Members."
(To a Federal Reserve Bank.)
bank of any one person, firm, or corporation
to an amount not to exceed 10 per cent of the
Your letter of the 4th instant on the subject
capital and surplus of the lending bank.
of advertising by " clearing member" banks
Where this misapprehension exists attention was presented to the Board. The Board is of
should be called to the fact that under section 9 the opinion that while a bank, in advertising,
of the Federal Reserve Act as amended, State should be careful to avoid giving a wrong imbanks and trust companies becoming members pression, there is no objection, legally or
of the Federal Reserve System are not subject morally, to its stating facts. The law authorto the limitations of section 5200, but are sub- izes nonmember banks to carry accounts with
ject only to such limitations as are imposed by Federal Reserve Banks for clearing or collection
State laws. Such banks may, therefore, make, purposes. The term "clearing member" does
loans to the same person, firm, or corporation not appear anywhere in the act. Perhaps,
in any amounts permitted by the State laws. therefore, the use of this term in advertisements
Loans to one person in excess of 10 per cent are, may be misleading, but, on the other hand, it
however, not eligible for rediscount with a seems entirely proper that where a nonmember
Federal Reserve IJank.
bank carries a clearing balance with the Federal
The provision of section 9 of the Federal Reserve Bank, thereby permitting checks upon
Reserve Act bearing on this point is as follows: itself to be collected at par, it should have the
"That no Federal Reserve Bank shall be right of informing the public that checks upon
permitted to discount for any State bank or it possess this advantage over checks drawn
trust company, notes, drafts, or bills of ex- upon banks which are neither members or dechange of any one borrower who is liable for positors of Federal Reserve Banks.
borrowed money to such State bank or trust
The term " clearing member," therefore, may
company in an amount greater than ten per be a concise way of giving this information, and
centum of the capital and surplus of such State I the Board has no doubt that the competing
bank or trust company, but tlie discount of bills | banks which are members of the Federal Reof exchange drawn against actually existing i serve System will see that all parties interested
value and the discount of commercial or busi- | are informed of the distinction between a memness paper actually owned by the person nego- i ber bank and a clearing member.
tiating the same shall not be considered as bor- ! OCTOBER 16,1917.
rowed money within the meaning of this section.''
OCTOBER 20,

1917.

i Purchase of United States 2 Per Cent Bonds.
(To a Federal Reserve Bank.)

Renewal of Short-Term Paper.
(To a Federal Reserve Bank.)

Your letter of recent date in regard to the
renewal of 15-day notes made by member
banks against collateral was duly received and
has been given consideration by the Board.
It seems that in some districts Federal Reserve Banks have been encouraging renewals of
paper of this kind. While the Board does not
wish to prohibit the renewal of a 15-day note, it




I acknowledge receipt of your letter of the
4th instant, and can reassure you by referring
you to the statement issued by the Board some
time ago that it will not, under existing circumstances, require the Federal Reserve Banks
to make further purchases of United States 2
per cent bonds. The Board would certainly
not permit a member bank to unload bonds
purchased by it at a discount on Federal Reserve Banks at par.
OCTOBER 5,

1917.

880

FEDERAL RESERVE BULLETIN.

NOVEMBSIl 1, 1917.

LAW DEPARTMENT.
The following opinions of counsel have been amount to be paid under the terms of the inauthorized for publication by the Board since strument. The majority of the courts and the
various text writers agree that these latter cases
the last edition of the Bulletin:
are the better considered ones and that the
Bills Payable with Exchange and Collection Charges.
custom and convenience of merchants demand
A bill made payable with *'{collection charges" is not a the introduction of the element of exchange
negotiable instrument, though the Negotiable Instruments into negotiable instruments.
Law provides that an instrument payable'' with exchange"
In any event, this particular phase of the
does not lose its negotiability.
situation is definitely determined by section 2,
OCTOBER 8, 1917.
subsection 4, of the Negotiable Instrument's
SIR: The attached letter raises the question Law which provides that "the sum payable is
whether the insertion of the following words, a sum certain within the meaning of the act
"with exchange and collection charges/7 ren- although it is to be paid with exchange whether
ders a trade acceptance nonnegotiable.
at a fixed rate or at a current rate.77 The
A promissory note or bill of exchange to be principles, however, which have influenced the
negotiable must contain an unconditional courts and text writers in the decision that a
promise or order to pay a sum certain in money. bill payable with exchange is negotiable can
(Negotiable Instruments Law, section 1, sub- hardly be said to apply to bills payable with
section 2.) The only question to be determined "collection charges.7' Such charges are not as
appears to be whether or not an order to pay a matter of custom made upon a uniform basis.
a certain amount "with exchange and collec- On the contrary, they are so subject to varition charges77 can be said to be an order to ations in individual cases it is not practical
pay a "sum certain in money/'7
for the parties to the instrument to ascertain
There are some court cases which hold that in advance the amount that may be charged
an instrument calling for the payment of a cer- for this service in any given case.
tain specified amount of money "with exThere is accordingly every reason to assume
change77 is not negotiable because of the fact that the courts will hold that an instrument
that a fluctuation in the rate of exchange makes payable with collection charges is not payable
it impossible definitely to determine the exact j in a suin certain as required by the Negotiable
amount payable. As pointed out, however, in j Instruments Act. It is also pertinent that
an opinion filed by this ofB.ce on August 10, | section 2, subsection 4, which authorizes mak1918, and printed on page 459 of the September, ing a negotiable instrument payable "with
1916, Bulletin, there are many other cases exchange77 does not in any way refer to the
which hold that such instruments are negotiable question of collection charges.
because of the fact that the current rate of
It is, therefore, the opinion of this office that
exchange between two places at a particular a bill which is payable with " collection charges "
date is usually a matter of common com- is not a negotiable instrument.
mercial knowledge—at least it is usually ascerRespectfully,
tainable by anyone—and in consequence the j
M. C. ELLIOTT, Counsel.
various parties to the instrument can, with- To Hon. W. P. G. HARDING,
out difficulty, definitely ascertain the precise j
Governor, Federal Reserve Board.




NOVEMBER 1,1917.

881

FEDERAL SESEEVE BULLETIN.

Trust Receipts as Actual Security for Acceptance Transactions.

It is the opinion of this office that in the case
presented in the attached correspondence where
the documents are delivered to the purchaser,
and where the goods are subject to his disposition, the trust receipt is not an actual security
within the meaning of section 13 and the 10
per cent limitation must be held to apply.
Respectfully,
M. C. ELLIOTT, Counsel.

If anjacceptance is secured by shipping documents
which are surrendered by the acceptor for a trust receipt
which permits the purchaser of the goods to retain control
of the goods, the accepting bank can not be said to be secured " b y some other actual security" as provided in
section 13 of the Federal Reserve Act. A trust receipt,
however, which does not permit the purchaser to procure
control of the goods, may properly be said to be actual
security within the meaning of the act.
To Hon. W. P. G. HARDING,
OCTOBER 12,

1917.

SIR: The attached correspondence raises the
question whether a national bank may accept
drafts in excess of 10 per cent of its capital and
surplus in a case where it appears that, though
shipping documents are attached at the time of
acceptance, those documents are thereafter
delivered to the purchaser under a trust receipt, the goods being taken up at once by milling concerns.
Section 13 provides that no member bank
shall accept for any one person, company, firm,
or corporation in excess of 10 per cent of its
paid-up and unimpaired capital and surplus,
unless the bank is secured "either by attached
documents or by some actual security growing
out of the same transaction as the acceptance.7'
The question to be determined, therefore, is
whether a trust receipt is an "actual security"
in the sense contemplated by the act. This
question has been considered before by the
Federal Reserve Board, audit has been generally
understood that a trust receipt which permits
the purchaser of the goods to obtain control of
those goods either for milling or other purposes
is not an actual security within the meaning of
the act, and that, therefore, acceptances secured by such trust receipts come within the
10 per cent limitation imposed by section 13.
A different situation results, of course, in
any case where the trust receipt is of such a
character as not to permit the purchaser to
gain control of the goods as where they are
held for the account of the acceptor by some
person, warehouse, or corporation independent
of the borrower.




Governor Federal Reserve Board.

Federal Farm Land Bank Deposits with Federal Reserve
Banks.
Federal Reserve Banks may properly receive deposits
from the various Farm Land Banks for the purpose of
exchange or of collection or for the purpose of paying
farm loan bond coupons.
O C T O B E R 23,

1917.

SIR : The chairman of the Farm Loan Board
has asked whether an arrangement can be
entered into between the Farm Land Banks
and the Federal Reserve Banks by which
coupons on farm loan bonds maturing November 1, 1917, may be paid by the Federal Reserve Banks out of deposits to be made by
the Farm Land Banks.
I have discussed this question with the
Solicitor of the Treasury and am authorized to
say that in his opinion the Farm Land Banks
are empowered by section 22 of the farm loan
act to enter into such an arrangement and to
make the necessary deposits with the Federal
Reserve Banks. Section 22 of the farm loan
act contains the following provision:
Whenever any farm loan bonds, or coupons
or interest payments of such bonds, are due
under their terms, they shall be payable at the
land bank by which they were issued, in gold
or lawful money, and upon payment shall be
duly canceled by said bank. At the discretion
of the Federal Farm Loan Board, payment of
any farm loan bond or coupon or interest payment may, however, be authorized to be made
at any Federal Land Bank, any joint stock
land bank, or any other bank, under rules and
regulations to be prescribed by the Federal
Farm Loan Board.

882

FEDEKAL KESEKVE BULLETIN.

Under authority of this provision the Farm
Loan Board could, in the opinion of the
Solicitor of the Treasury, prescribe regulations
providing for the payment of these coupons at
any Federal Eeserve Bank.
The only question to be considered, therefore, is whether or not Federal Reserve Banks
are authorized to receive such deposits.
Section 13 of the Federal Reserve act provides in part that—
Any Federal Reserve Bank may receive
from any of its member banks, and from the
United States, deposits of current funds in
lawful money, * * * or solely for the purposes of exchange or of collection, may receive
from any nonmember bank or trust company
deposits of current funds in lawful money,
* * * provided, such nonmember bank or
trust company maintains with the Federal Reserve Bank of its district a balance sufficient
to offset the items in transit held for its account by the Federal Reserve Bank.

NOVEMBER 1,1917.

would seem to authorize the receipt of deposits made to offset items received for collection from Farm Land Banks or from other
banks drawn against Farm Land Banks.
The coupons in question are ultimately payable at the Farm Land Bank issuing the mortgage, but it is evident that many of these
coupons will be offered for collection through
other banks and particularly through the
various Federal Reserve Banks. It is also
understood that while the Farm Land Banks
do not engage in the banking business generally, they have frequent occasion to transmit funds from one part of the country to
another, in making loans and collections.
There would seem to be no reason therefore
why Federal Reserve Banks should not extend to Farm Land Banks the same accommodation in the matter of collection and exchange
that they extend to other nonmember banks,
and in the opinion of this office they may leWhile this section does not authorize Fed- gally do so.
eral Reserve Banks to receive deposits from
Respectfully,
Farm Land Banks to the same extent that
M. C. ELLIOTT, Counsel.
such deposits are received from member banks,
To Hon. W. P. G. HARDING,
or from the United States Government, it
Governor Federal Reserve Board.




888

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

SUMMARY OF BUSINESS CONDITIONS OCTOBER 23, 1917.
District No. 3—
Philadelphia.

District No. 1— I District No. 2—
Boston.
New York.
General business
Crops:
Condition
Outlook
Industries of the district.
Construction, building, and engineering.

Hesitant, except for; Active and well
war orders.
; maintained.
Fair

j

Bank clearings.
Money rates

Increase
Temporarily
creasing.
Decreased

Labor conditions

; Unsatisfactory

Outlook
R emarks

! Uncertain

i Heavy, measured
in value, particularly exports.
de-

District No. 7—
Chicago.
Good

Crops:
Condition
do....
Outlook
.....do....
Industries of the dis- Active
trict.
Construction, build- Slow
ing, and engineering.
Foreign trade
Bank clearings
Increasing.

L a b o r s u p p l y Unsettled
hardly adequate.
Good
Good

Ac£iv9

Little Changs

Outlook

Good




: Active
! Fair to good..

Post oflice increas- Incrcaso

Remarks.

: Active

Excellent.
Active

Railroad, post office,
and other receipts.
Labor conditions

ing.

District No. 9—
Minneapolis.

District No. 8—
St. Louis.

Firm

Shortage

Large.

Decrease
Decreasing
Steady at moder- No change
ately firm rates.
Railroad receipts Increasing
heavy; telegraph
tolls very much
increased.

Money rates

.»

..do.

i

Good

G eneral business

I.

Harvest good
j,
Busy for the most • Generally very ac- ! Very busy
I,
part.
| tive.
Well up to pre- ! Very quiet
| Very dull..
vious high record.

Foreign trade

Railroad, post office,
and other receipts.

Good

Firm.

Up
;

Firm.

'• Strong
j

I Labor scarce; some-. Good
what unsettled. !.
Good..
! Very good..
Cotton lato; early ;
killing frosts re- !
ported.
j

District No. 4— i District No. 5Richmond.
Cleveland.
3ood.
..do
| Very good
! Fair, but uneasy
'• tono.
Poor

District No. 5—
Atlanta

j ilighlysatisfactoryJ Good.
Yield satisfactory; ::
prices high. "

Do.

Do.
R tinning full time. Operating fu i ly.

Private building Slow,
limited; Government work :
in large volume.
Limited by reDo.
strictions and I
s c a r c i t y of
freight room.
Increase.
Increasing.
: Increase
Plentiful
at 5 to 6 Slightly increasing
Firm
per cent.
Increase in gross Good.
Increase
r e c e i p t s absorbed in increased operat- i
ing costs.
j
Scarce and wages i Fair.
Restivo.
high.
!
Not unfavorable.. Satisfactory
j Good..
Fuel, labor, and Flush times would I
transportation
hardly be an !
difficulties quite
exaggeration of j
troublesome.
conditions
in
the district.
District No. 10—
Kansas City.

District Xo. 11— \ District No. 12—
Dallas.
j San Francisco.

Averages 2o per
cent over last
year.

Satisfactory

' Activ-y.

Com good
! Fair
Good
do
Very busy and I)*;- Active: running ;
hind with orders. | full time.
\
Fair
Slight decrease
| Slight decrease.

40 per cent over
last year.
No
appreciable
change.
Good volume

Export trade do- ; Increase.
crease.
j
increase
I
Do.
Finn: ample lands i Firmer.
for legitimate rs- j
quir em snts.
I
Increase
j Increase.

I i n p r o v e d ; in- I Acute shortage
creased shortage. 1
Encouraging
Good
Conditions arising from Government regulations becoming
inoro settled.

!

Disturbed.

j For active indusi try and Iarg3
|
I trads.
, Business situation i
satisfactory; out-!
! look good except |
i in south central !
and w e s t e r a !
• Texas..
I

884

FEDERAL BESEKVE BULLETIN.

NOVEMBER 1,1917.

GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a summary of business conditions in the United
States by Federal reserve districts. These reports are furnished hj the Federal reserve
agents, who are the chairmen of the boards of
directors for the reserve banks of the several
districts. Below are the detailed reports as of
approximately October 23:
DISTRICT NO. I—BOSTON.

Government orders and work pertaining to
the war are sustaining factors in an otherwise
hesitant period. Emergency business, ranging
from orders lor ships and aeroplanes to small
articles of equipment, has caused activity in
many lines. Reports from similar trades are
not all of the same tenor and we find departments engaged in domestic business hesitant
and conservative, while departments occupied
with war oiders are extremely busy and running
at capacity.
All attention is focussed on the second
Liberty Loan and business men and bankers
everywhere are giving fieely of their own time
and that of their employees to further its successful flotation.
Skilled labor of all kinds is hard to obtain and
wages are high; this in some lines, notably in
cotton, is restricting production. On the other
hand, the wage earner in domestic trades is
confronted with an increasing cost of living
out of all proportion to any increase in his
wages.
The farmers in this district, with the exception of those that specialize or those in districts
given up to one kind of production, are not
very prosperous. Farm labor is very hard to
obtain, and for the most part is inefficient.
The growing season for crops in this district
is over. The potato yield was less than normal
ana uneven. The apple ciop waj light and
below normal in aH sections. The peach crop
was fair to good.
Shoe manufacturers are endeavoring to
standardize their production; and with this in
view, are not making as many fancy shoes, es-




pecially in women's lines, as they did at this
time last year.
The leather market continues firm, and many
of the large manufacturers are buying from
hand tojfmouth, taking advantage of any weak
spots to care for their needs.
Retailers with limited capital are finding
some difficulty in attempting to carry a large
stock at the present prices. Many have more
money tied up in their inventories than in previous years, with many less pairs of shoes on
hand.
The wool trade is hesitant, and very little
speculation is going on. The market is
strong, and there appears to be nothing in view
to prevent its going even higher. It is reported
that England is soon to release a large amount
of Australian fine wool, the greater part of
which is to be used for Government purposes.
It is estimated that this may amount to as
much as 100,000,000 pounds. However, because of the scarcity of shipping space, this
action will probably not have much effect on
the market.
The report of the National Association of
Wool Manufacturers as of October 1 shows both
woolen and worsted spinning spindles operating
at capacity with about one-third occupied upon
war orders.
Buying of fine and fancy cotton fabrics is not
overbrisk, and buyers are very conservative and
reluctant to pay the present high prices. Finecloth manufacturers are unable to increase
their prices to keep pace with advancing production cost and arc stopping looms rather than
sell at unprofitable levels. It is estimated that
in one large center the curtailment is as much as
15 per cent. On the other hand, print cloths
have enjoyed a better market and manufacturers of these have been selling their full production at advancing prices.
The money market is quiet. Banks are
conserving their resources to as large an extent
as possible. Payments on account of Government work are reported to be much better and
this, together with accumulation in anticipa-

NOVEMBER 1,

1917.

EEDEEAL BEBEBVB BULLETIN.

885

tion of subscriptions for the Liberty Loan, have DISTRICT NO. 2—NEW YORK.
General business activity in this district coneased the money market somewhat during the
past week. There is a wide range of rates for tinues, with production at limit of capacity and
call money, running from 4 per cent to 6 per important and far-reaching adjustments in
cent, with the general rate about 5 per cent. progress. The slowing up of industries not esTime money is dull and what little business sential to wax needs is being accomplished not
exists is done at 6 per cent. The commercial- so much through lightening of demand for their
paper market is narrow, the ruling rate being products as through difficulty in obtaining supplies and holding labor in competition with in51 per cent to 5| per cent.
The exchanges of the Boston Clearing House dustries which are stimulated by the vital nefor the week ending October 20, 1917, were cessity for speedy production of war materials.
$312,255,935, compared with $256,308,384 for
Building is almost at a standstill except in
the corresponding week last year and $203,- localities where important factory extension
234,076 for the week ending October 13, 1917 has taken place in connection with war orders
(five days).
and building for housing purposes has been
Building and engineering operations in New necessary; but, in general, almost no new buildEngland from January 1 to October 10, 1917, ing is in progress or contemplation and mateamounted to $160,126,000, as compared with rials are being supplied chiefly for repairs or
$162,636,000 for the corresponding period of alterations.
1916, the highest previous year recorded.
There is uneasiness as to the prospects for
The receipts of the Boston post office for fuel supply and transportation. The belief is
September, 1917, show a decrease of $12,265.71, expressed that if transportation conditions
or about 2 per cent less than September, 1916. could be improved the supply would be ample,
For the first 15 days of October, 1917, receipts but, while coal is being supplied in quantities
were about 4 per cent, or $14,356.13, more than sufficient to keep factories running, there is
little surplus. Transportation of merchandise
for the corresponding period of last year.
Boston & Maine Railroad reports net oper- has been handled fairly satisfactorily thus far.
ating income, after taxes, for August, 1917, as
Foreign trade, despite the inconvenience of
$1,446,538, as compared with $1,703,943 for the embargoes, is holding up well, exports being in
corresponding month of 1916. New York, New satisfactory volume and at very high prices.
Haven & Hartford Railroad reports operating Heavy business with Central and South America
income, after taxes, for August, 1917, as has compensated for decreased shipments to
$2,061,162, as compared with $2,366,073 for Europe.
the same month last year.
There has been a substantial increase, both in
Loans and discounts of the Boston Clearing value and quantity, in the manufacture of maHouse banks on October 20, 1917, amounted chinery, caused principally by Government buyto $456,701,000, as compared with $451,904,000 ing. Equipment is bought conservatively as
last month and $450,309,000 on October 21, required for the handling of business in hand
1916. Demand deposits on October 20, 1917, and existing contracts.
amounted to $394,376,000, as compared with
In the iron and steel industry there is renewal
3,851,000 on September 22, 1917, and | of buying activity. It is expected that there
3,434,000 on October 21, 1916. Time de- | will be a considerable shortage of materials
posits on October 20, 1917, totaled $29,813,000, i entering into the construction of ships, paras compared with $29,077,000 on September . ticuiarly plates, so that there will be little left
22, 1917, and $28,220,000 on October 21, 1916. | for commercial uses, but, with building activiThe amount "Due to banks" on October 20, ! ties restricted, the general upkeep require1917, was $144,914,000, as compared with | ments of the country will unquestionably be
$119,494,000 on September 22, 1917.
I met by the surplus tonnage available after




886

FEDERAL RESERVE BULLETIN

satisfying Government needs. The shortage of
labor and the difficulties of transportation
make any increase of production very difficult.
Because of high prices the railroads have not
for some time past purchased their usual requirements of equipment and there is apprehension that the heavy service which is now
being rendered, unaccompanied by replacements which in normal times would be considered essential, may later result in impairment of service. Freight and passenger cars
now cost two and a half to three times what
they did three or four years ago.
General conditions in the drug and chemical
industries are satisfactory. It is gratifying to
note that the dyestuff industry is now firmly
rooted and that those engaged in the industry
believe that the country need no longer depend upon European supplies, also that there
has been a tendency for prices to drop owing to
increased and more economical production.
Difficulties in obtaining sufficient quantities
of bituminous coal have interfered with production of some chemical by-products and
difficulty is being experienced in maintaining
the production of chemicals at the maximum
of earlier months. In the retail drug trade
buying is conservative, due apparently to a
general feeling that prices are dangerously high.
The textile trades are working to fullest
capacity. Woolen mills are handling the greatest business in their history, both as to yardage
and weight, with the total value of the product
jar above that of last year. Government orders
have been particularly heavy in this field.
Typical of the war time adjustments which
are in progress is the action taken by an important carpet manufacturing concern in installing
new machinery for making army blankets and
tent duck. Civilian business is quieter than
for some time past, though maintained at a
fair level. The wool supply is furnishing serious concern and the use of part cotton in
fabrics is very probable.
Conditions in the clothing line are good, with
steady retail demand. Makers of women's
clothing report indications for good business
for the rest of the year.




NOVEMBER 1,

1917.

In the shoe trade conditions among manufacturers, wholesalers, and retailers are good.
For some time past there has been conservative
feeling on the part of dealers and the buying
has been light, but within the last few weeks
there has been a tendency to place orders
which appear to indicate that the period of
adjustment in the business has been passed and
that demand is becoming active.
Sales of jewelry and watches have thus far
continued very active at continually rising
prices. The public's purchases are expected to
hold up well until after the Christmas holidays.
Makers of furniture report that shortage of
labor has enforced some curtailment of output
and that the demand for household furniture is
very light. Office furniture, however, can not
be made rapidly enough to meet Government
and private buying orders.
Reports throughout the district indicate that
satisfactory crops have been harvested and that
the farmers are very prosperous. The early
frost occasioned no very widespread or serious
damage. Some of the fruit crops available for
canning have been disappointing, and the pack
may therefore fall somewhat below normal.
The most important shortage is in the apple
crop. Sugar refineries have temporarily been
obliged to curtail activity because of scarcity
of raw materials, and there is an acute shortage
of this commodity in the New York market.
Reports this month indicate generally satisfactory collections though with occasional important exceptions.
DISTRICT NO. 3—-PHILADELPHIA.

General business conditions in this district
continue to be good. Trade is generally
active and retail absorption continues large.
The influence of the war, however, is the predominant influence in nearly all lines of industry, Government orders taking precedence
over private business and obscuring somewhat
thej-normal demand. Conservation in buying is noticeable in many lines, especially in
the placing of orders for delivery next spring,
but current trade is brisk.

NOVBlf BBB 1, 101T.

FEDERAL RESERVE BULLETIN.

887

Agriculture.—There is a large increased acreage in wheat, which has been seeded in exceptionally well, due to showers and favorable
weather conditions. There is some soft corn
as a result of frost, and a great many cattle
will be bought for feeding. Farmers are bending every energy and are working overtime to
supply shortage of labor. Agricultural communities were never in so prosperous a condition.
Industries.—Government needs continue to
absorb much more of steel mill capacity than
the highest estimates of a few months ago, and
private consumers are necessarily restricted.
The fixing of prices has not stimulated buying,
of course, because the Government requirements permit no promises of this character for
ordinary commercial work. It is a difficult
situation from the standpoint of selling and
manufacturing, but the situation seems to be
largely in getting just the right kind of distribution, which appears to be gradually working
out.
The coal output appears to be maintained at
the recent average, and the reports indicate
serious problems to manufacturers in relation
to contracts for future deliveries. Reserve
stocks of fuel have been considerably depleted.
Domestic consumers have not been able to
secure necessary supplies for winter uses.
In the pottery business around Wheeling
plants are working to capacity, with some shutdowns by reason of labor disturbances.
The car shortage and embargoes have caused
some trying situations in some manufacturing
localities, both in receiving raw materials and
in making deliveries of finished products.
Building operations.—The difficulties in the
labor situation and the high cost of materials
have greatly retarded new buildings in most of
the centers. At Cleveland there is a relative
increase, but throughout the remaining portions of the district from which we receive
DISTRICT NO, 4---GLEYELAN1X
; reports there is a decided decrease.
Evidences of the readjustment in business | Labor.—There is no material change in the
life caused by the transition from peaceful to i labor situation from previous reports. Spowar endeavors are the features of the situation | radic strikes are reported, and there seems to
in this district.
; be more or less of a general unrest among

Nearly every line of industry is reported to
be hindered by inadequate transportation facilities. Many are tied up because of the movement of Government supply trains.
The output of coal in this district is reported
as being larger than ever, but the mines are
handicapped by scarcity of labor and car
shortage, hence the deliveries are unsatisfactory.
Crop yields are reported to be about normal
in spite of the many setbacks that the farmer
has experienced, such, as difficulty in getting
adequate labor, proper fertilizers, blights,
frosts, etc. The late crops are reported as
beiing very good and will bring high prices.
The demand for iron and steel is keeping the
mills running to as full capacity as is possible,
depending upon the available supply of labor
and cars, both of which are difficult to secure.
Textile mills are reported to be running to
capacity and in some instances are sold out
for the entire next year's production. Government orders are playing a considerable part
in the textile lines.
The demand for dwellings is keen, but builders hesitate to proceed with large operations
on account of the extraordinarily high cost of
labor and materials.
Goatskins, calfskins, and light hides seem"to
have reached bottom prices about the first of
October and since then have been advancing.
A large sale of leather has been made to |a
foreign government, which has reduced i the
supply of leather considerably, and shoe
dealers have disposed of a portion of their
surplus stocks and are now buying in a normal
manner.
Money continues in good demand. There
has been little or no change in the rates in the
last 30 days. Rate for call money is 5 per
cent, Commercial paper, four to six months,
54 to 6 per cent.




888

FEDEEAL RESERVE BULLETIN.

skilled and unskilled workmen, with a very
inadequate supply. Labor-saving devices are
rapidly being installed everywhere possible,
dispensing with man power and substituting
machine power, which later will have its resultant effect in a marked degree.
Mercantile lines.—Seasonable weather has
tended toward a very active fall trade in general merchandising, our reports indicating that
retail business throughout the district has no
complaint of the situation. Collections seem
to be better than average. Post-office receipts
show comparative increases in the larger cities.
Money and investments.—Banking is very
active, with the greatest volume of business
known. Deposits have probably reached the
high-water mark, and loans and discounts are
apparently keeping pace. There seems, however, to be a disposition of the bankers more
closely to scrutinize the character of loans,
and, as far as possible, to confine them for
necessary production and development of
agriculture and other war necessities.
Money rates continue firm at 5 | to 6 per cent.
Investment markets are at an absolute standstill by reason of the Liberty Loan. Bank
clearings in the important centers show substantial increases.
Close observers of financial and industrial
conditions are confident that the transition to
a war basis in this district will continue to be
accomplished without serious economic disturbance.
DISTRICT NO. 5—RICHMOND.

Reports from all points in the district indicate unusually prosperous conditions. The
corn crop is much larger than the average,
tobacco fully up to the average and selling at
unprecedented prices, and the cotton crop
about the same as last year, but selling above
25 cents per pound. Fruits and smaller crops
have on the average been satisfactory and
farmers are more prosperous and better supplied with money than ever before in the
history of the district.
The above conditions are reflected in unprecedented deposits in the banks, money is




NOVEMBER 1,1917.

circulating freely and high prices seem no
hindrance to trade, which is reported good
among wholesalers and retailers.
The production of lumber is below normal,
due to the scarcity of labor and inadequate
transportation, but orders are abundant at
satisfactory prices and the general condition
in this line much improved. Ordinary building
has been considerably restricted, owing to
high prices of material, but Government work
and construction for the filling of Government
orders have been on a large scale.
Everything in the manufacturing line is reported running to full capacity, restricted only
by scarcity of labor. This scarcity of labor
brings reports that there has been some loss of
crops due to inability to harvest them.
Railroad earnings have increased in gross
very considerably, but the increase has been
largely absorbed in operating expenses. Bank
clearings indicate an expansion of 25 per cent;
post-office receipts are above normal, indicating
the movement of a large volume of trade.
The second Liberty Loan has been the allabsorbing topic, both in discussion and effort.
The organizations for securing subscriptions to
this loan have been more efficient than was the
case with the previous loan, and both banks
and individuals in the larger cities and towns
have responded to the Nation's call, both in
solicitations and subscriptions.
DISTRICT NO. 6—ATLANTA.

General business conditions in this district
continue good. The volume of business, measured in dollars, while equal to that of preceding
months, is not equal to expectation, considering
the high prices for farm products and the disbursement of Government funds at the seven
Army camps and several training camps in. the
district. This is due entirely to the holding
movement among the cotton producers.
While the weather has been generally favorable throughout the district for cotton picking
and marketing, the producer, by reason of high
prices received for the unusually large diversified crops, is withholding in almost every instance a portion of Ms cotton crop, as storing

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

889

cotton causes no loss to the product and the of labor. Government reports estimate the
general consensus is that high prices will pre- crops of Georgia for 1917: Corn, 71,300,000
bushels; oats, 7,900,000 bushels; potatoes,
vail before Christmas.
Eeports indicate that mills7 stock is running 1,468,000 bushels; sweet potatoes, 11,080,000
low and that mill buyers are meeting with little bushels; apples, 1,740,000 bushels; peaches,
success in purchasing at the prevailing prices. 4,720,000 bushels; and cotton, 1,930,000 bales.
Mississippi.—Cotton picking and harvestNotwithstanding the holding movement,
merchants report collections exceedingly good ing generally is progressing favorably. Lake
and very little cotton is being pledged to carry cotton was materially damaged by frosts.
the product or pay notes due. In the com- Cotton is opening rapidly in the northern pormunities where are located the Army camps tion, where much of the product has been
the large pay rolls and other Government ex- picked. In the southern portion, cotton pickpenditures have brought wholesale and retail ing is practically completed. Fall crops need
rain.
business to an extra high level.
Louisiana.—Rice harvesting and threshing
Some farmers are having difficulty in getting
labor to pick cotton, and some of the harvesting are well advanced, with the yield good, except
is much too late for the early destruction of in the southwest, where it is fair. Harvesting
of corn and cotton picking are practically comstalks to control the boll weevil.
During the middle of the month frosts caused pleted. The dry, cool weather has been unconsiderable damage to immature cotton in favorable for Irish and sweet potatoes, and
Tennessee, north and central Mississippi, ex- hastened the ripening of sugar cane under
treme north Georgia, and Alabama. Truck normal growth.
Tennessee.—Delay has occurred in putting
gardens and tender vegetation also suffered
from frosts. The citrus fruit crop in Florida the ground in condition to plow and prepare
for wheat and oats, due to lack of rain, which
is reported short, but fair to good quality.
Alabama.—The weather conditions have has been badly needed for late crops. The
been favorable for all farm work and generally cotton crop is only fair in Tennessee; it has
ideal for harvesting crops. Cotton harvesting deteriorated for several weeks, with little top
is practically finished in. the southern portion crop, and is several weeks late. Picking is
and good progress in the northern. The crop progressing slowly. Corn is reported a record
is reported short in some sections in the breaking crop. The tobacco crop, which is
northern portion, due to cold nights and frost. excellent, is about ail housed and in fine
Corn, sweet potatoes, and truck gardens are in condition.
Flour mills report no new feature of imporfair to excellent condition.
Florida.—Harvesting over the State is prac- tance. There has been some complaint of
tically completed. The corn crop has been inadequate supplies of wheat in the southeast,
housed and the larger bulk of the cotton picked and the mills that had light supplies when
and ginned. Citrus fruits are fair to good, but Government control became active are runthe crop is reported short. The crop resulting ning short. The crop of wheat in the district
was considerably reduced this year, while in
from the "June bloom)f is rather uncertain.
Georgia.—Cold, dry weather prevailed, with former years it was sufficient to supply the
heavy frosts about the 13th in the north- mills up until late in the season. In order to
ern districts, considerably damaging cotton. get supplies from other zones, it has been,
Cotton is practically all picked in the southern necessary for mills to show purchases of grain
portion and is opening slowly in the northern there in former years, and it is the report that
portion. Fall plowing and seeding of oats many of them are not in position to do this.
Bank clearings are increasing and money
and wheat is progressing rapidly. Considerable complaint is heard regarding the shortage rates appear to be stiffening slightly.




390

FEDERAL BESER-VE BULLETIN.

NOVK-513EB 1, 1 9 1 7 .

The most striking feature in connection their grain in the hope of realizing higher
with the sale of the second Liberty Loan bonds prices. Bond houses are concentrating every
just closed was the subscriptions made by the effort upon the Liberty Loan and report but
soldiers at the Army camps in the district. little interest in other issues.
The subscriptions were largely for the smaller
The crops in this district have come through
issues and the solicitations were met with the season in good shape., and the recent frosts
eagerness by the officers and enlisted men, have done but small damage. The State of
both as a matter of patriotism and from the Iowa expects to produce the largest crop 'of
viewpoint of investment.
oats on record, and its corn crop should total
The New Orleans branch of the Federal approximately 300,000,000 bushels of sound
Reserve Bank of Atlanta reports that in all corn. The planting of winter wheat continsections in Louisiana and Mississippi there ues, but it is too early to actually estimate
is an underlying prosperity. The year 1917 the acreage, although the indications are for
is noteworthy for the greatest production of an increase over last year.
cotton in Louisiana and Mississippi within a | There Is no change in the agricultural impledecade. Under date of September 1, the i ment situation, manufacturers reporting a
United States Bureau of Crop Estimates figures j good demand for their output and difficulty in
that the values of cotton and cotton seed for | securing the necessary labor and raw materials.
Louisiana and Mississippi is in excess of | The lack of farm, help has considerably stimu$219,000,000. It is figured that half of this lated the purchase of tractors and laboramount would reasonably represent net profit saving farm machinery, particularly as the
to the growers. The com. crop of the two present prices encourage the planting of a
States exceed $125,000,000 in value; and sugar large acreage.
and molasses in southern Louisiana at
Automobile concerns find a falling off in the
$50,600,000. The Louisiana rice crop for demand for pleasure cars and, wherever pos1917 is estimated worth over $23,000,000. sible, are turning their attention to the manuThe total money value of the chief agricul- facture of trucks. Automobile accessory contural crops of Louisiana and Mississippi is cerns report a satisfactory volume, with inestimated at $458,069,000 for 1917, against creased demand for truck parts and decreased.
an estimate of §300,000,000 for the same demand for pleasure-car equipment.
crops in 1916, which was considered a good
Building and its allied lines have shown no
crop year.
change. for the better, and the official reduction ID. steel prices, together with the small
DISTRICT NO. 7—CHICAGO.
reduction and the price of Portland cement,
The business situation throughout this dis- has had no appreciable effect.
trict appears to be satisfactory at this time,
The high prices of merchandise are beginwith the principal interest centering in the ning to cut down dry goods sales, although the
Liberty Loan and. the new Government war volume measured in dollars still remains satistaxes. Many corporations are not altogether factory. Retail merchandise' stocks are still
clear as to the effect of the new taxation upon heavy, but there seems an inclination to
their profits, and this is causing some uneasi- reduce the merchandise on the shelves and to
ness, although there is little complaint with pay off indebtedness.
regard to the operating schedules in force.
Distillers have not been operating since
Money rates are still strong, but deposits are September 8; and the revenue bill increasing
accumulating in some of the centers, resulting the tax has resulted in. a falling off in sales.
in a somewhat easier banking condition.
Grain is moving in from the country gradCountiy banks are well loaned out, and there ually, but country elevators are reported as
is some evidence that the fanners are carrying carrying a large quantity of oats and corn.




lf 1E0.7.

FEDESAL RESERVE BULLETIN,

801

which the farmers are holding in the hope of
The wool market remains firm and mills
stronger market conditions. It is the opkuon are fully employed. There is a scarcity of
of some authorities that the release of these labor, but this condition pervades all industries
stocks will cause an oversupply next spring, at this time.
resulting in lower prices.
Clearings in Chicago for the first 20 days oi
In the grocery line the demand for canned October were $1,348,000,000, being $67,000,000
goods is better than the supply, and the general more than for the corresponding 20 days in
volume of trade, measured in money Tallies, October, 1918. Clearings reported by 22
is large. Sales, however, vary with local con- cities in the district outside of Chicago
ditions, and wholesalers dealing with country amounted to $296,000,000 for the first 15 days
communities are experiencing a good trade.
of October, 1917, as compared with $208,000,000
The hardware business finds a little slacken- for the first 15 days of October, 1918. Deing in demand, due presumably to the desire posits in the 12 Central Reserve City member
of purchasers to determine the effect on prices banks in Chicago were $888,000,000 at the
resulting from Government action. The close of business October 19, 1917, and loans
leather market has improved considerably were $570,000,000. Deposits show an increase
•during the past month, as a result of Govern- of approximately $36,000,000 over last month
ment orders for shoes and the foreign require- and loans an increase of approximately
ments in 'this line. Raw-material prices have 15,000,000.
advanced, and collections are fair.
There has been no change in the live-stock DISTRICT NO. 8—ST. LOUIS.
market during the past month. Some heavyWith very few exceptions all business activweight cattle are being taken into the country ity in this district coB.tiB.iies at a high level.
for short-time feeding. Receipts of 'hogs in Some few lines are restricted on account of the
the Chicago market continue light, and there scarcity of ra.w material or unfavorable labor
has been a fairly good demand for sheep from conditions, but, in general, business shows
"the farming communities, which, will increase •marked activity. Favorable crop conditions
have contributed to the general feeling of conthe supply.
Piano concerns report that orders are fidence, and there are no unfavorable symptoms
coming in freely and that collections are good. which would appear to affect the situation for
A good fal! trade is in prospect, but manu- some months.
Orders for Government requirements confacturers may experience some difficulty in
supplying the requirements of the purchasers. tinue to be the important factor as noted in
Shipbuilding concerns are still working to my last report, while Government price restric•capacity, as are the steel companies, which tions and other regulations are a somewhat
have not felt the effects of the Government disturbing factor. Whereas formerly Governregulation of prices. Most of the steel com- ment orders had influenced only manufacturing
panies are so fully booked for at least six and jobbing industries, reports at this writing
months that they are preferring to fill their indicate that they are also influencing retail
old contracts rather than take on new con- trade—at least in the large department stores.
Seports from wholesale grocers, millinery jobtracts at the Government prices.
bers,
drug and chemical dealers, woodenware,
Watch companies report an active business,
bagging,
cracker manufacturers, stove manuwith particular demand for military and
facturers,
glass companies, shoe manufacturers,
bracelet watches, and jewelers are finding sales
stationery
jobbers, jobbers of dry goods and
satisfactory, although the latter part of Sepgeneral
merchandise,
candy manufacturers,
tember and the first week in October showed
and
wire-rope
manufacturers,
all show in& slight decrease over the figures a year ago.
creases
in
sales
for
the
throe
months
ending
A large fall business is anticipated.




892

FEDERAL EESEKVE BULLETIN.

September 30 as compared to the average sales
for the same three months of 1914, 1915, and
1916, which indicates a healthy condition.
Collections appear to be keeping up with
sales, except from a few of the rural sections,
where the crop movement is unusually late, as
in Arkansas, where the cotton, at this writing,
is just beginning to move. Dry goods jobbers
report future orders for spring delivery in
excess of a year ago, and these were a record
at that time. The business of the department
stores and retailers in general has been stimulated by cool, seasonable weather.
Large packers report that wool prices run
close to the high point of the season. The
demand for fertilizer appears to be equal to
the production, the cost of raw material, however, advancing faster than that of the finished
article. There is a strong demand for all meats,
with prices about steady and stocks on hand
decreasing.
The cotton situation in the southern portion
of the district has changed somewhat materially within the last month. While the crop was
late all season, the condition a month ago
appeared to be satisfactory. Since then, killing frosts have been reported from most
sections of the belt, and it is feared that the
crop will be shorter than was anticipated.
Well informed Memphians estimate that that
territory will produce not over 80 per cent of
last year's harvest. Prices of both cotton and
cotton seed are high, which should stimulate
an early and rapid movement to market.
This movement, in volume, is just beginning.
It will probably take more money to move
this cotton crop than any crop since the Civil
War, but there appears to be no anxiety on
this score, unless a shortage of freight cars
should restrict the movement eastward from
Memphis.
Plowing and planting for winter wheat has
progressed satisfactorily. It is estimated that
probably 80 per cent of winter wheat acreage
has been plowed. Farmers have been busy
plowing and sowing, and this seems to have
had a deterrent effect on the movement to
market, which is again reported to be light for




NOVEMBER 1,1917.,

this time of the year. The wheat acreage of
Missouri is estimated to be 136 per cent of that
of 1916. Further efforts are being made to
increase this acreage in order to bring it up to
the acreage proposed by the Federal authorities.
Preliminary estimates on the oats crop are
for a yield per acre largely in excess of the
10-year average in Illinois, Indiana, and
Missouri, with the total production materially
above that of 1916.
The corn crop at this date is practically safe
from further damage. The forecast for the
1917 harvest from the October 1 condition
is slightly smaller than the forecast from the
September 1 condition, except that of Missouri,
which shows an increase. The estimates,
however, are well above the 1916 harvest and
the five-year average. Frosts which have
occurred in the corn belt did not do any
material damage.
The condition of the tobacco crop in Kentucky and Tennessee appears to be highly satisfactory. The October 1 condition in both
States is considerably higher than the 10-year
average, and the forecast from the October 1
condition approximates the 1916 harvest, which
was materially above the 5-year average.
During the last two weeks rains have revived
pastures, and live stock is looking well. Fodder
crops in general, especially alf alfa, have yielded
satisfactory harvests in spite of the increased
acreage of corn and wheat.
Apple picking and shipment to market is
proceeding rapidly, prices being considerably
higher than a year ago.
The labor situation is causing some concern.
The coal situation in St. Louis and other large
cities may easily become acute unless early
settlement of strikes in the Illinois fields is
made. The scarcity of labor may be said to
be general, farmers, manufacturers, and even
retailers, reporting difficulty in obtaining and
keeping a supply of suitable labor.
Index figures on the cost of living show little
change during the past two weeks.
Postal receipts for September show slight
increases as compared to September of last
• year.

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

893

district, going chiefly to the larger concerns,
and labor is fully employed.
Bank rates have been firm and steady,
Mercantile reports are favorable and collections
good. The volume of trade is very satisfactory
both in the wholesale and retail lines. The
outlook for the winter is good, with the exception that there will undoubtedly be some difficulty over the fuel question on account of the
inability to secure shipments in sufficient volume before the close of navigation to take care
of the normal requirements of the district.
Food administration officers of the various
States are already taking steps to bring the
necessity of economizing fully to the attention
of the public. Prices of the chief staples entering into the cost of living have shown some
inclination to fall off, but the decreases so far
recorded are not of any special importance,
excepting as to certain items in the grocery
DISTRICT NO. 9—MINNEAPOLIS.
line, and as to meat and lard.
Business conditions throughout the Ninth
The chief activities of the month have been
Federal Reserve district are sound, and the those involved in the flotation of the secoutlook is favorable. While crops in the ond Liberty Loan, which has met with uniwestern half of the district were short, the dis- versal support and which is being heavily subtrict as a whole has received more money tor scribed to.
its 1917 crop production than has ever been
received in any previous year, and the returns DISTRICT NO. 10—KANSAS CITY.
to the f armei*s; especially in the eastern half of
Agriculture.—Weather has generally been
the district, have been very large.
favorable for maturing crops and for planting
The movement of the grain crops has been wheat. Official estimates indicate a corn crop
slow, partially on account of the lack of under- 61 per cent larger than last 3^ear in the States
standing of the new Federal grades and par- wholly or partly in this district.
As predicted last month, the seed-wheat
tially on account of the new Government price
regulations. Wheat has been moving during problem was solved successfully. A large
the last half of the month in better volume. acreage is being sown, with the ground in good
Much of the corn in the district is soft, and condition, while much of that planted is up in
there wi.il be difficulty in obtaining first-class fine stand, and prospects are good for a yield
seed for the next year's planting. Agricultural approaching that officially requested.
associations and county agricultural agents are \ Farmers are beginning to market their
already at work on this problem, and in many I wheat, but the supply is limited. Figures for
localities are selecting the best of the corn, | the district are not available, but during the
which escaped frost, drying it and saving it for | period from September 6 to October 6 the
spring seeding. A large amount of fall plow- I local market received approximately 2,500,000
! bushels as against 8,500,000 a year ago.
ing has been accomplished.
Industrial concerns are busy and are loaded | The result of the nation-wide stimulus of
with orders for months ahead. A large amount I potato growing is clearly shown in the increase
of new Government work has come into the I of 40 per cent over last year's crop.

Building permits again show a slight decrease in Little Rock, a large decrease in Louisville, a slight increase in Memphis and in St.
Louis, a decrease of nearly 50 per cent this
September as compared to the same month of
1916. It would appear that little improvement in the building situation can be expected
until materials decrease in price and labor becomes more plentiful.
The second Liberty Loan is engaging the
attention of bond houses, hence the bond business is quiet.
Commercial paper rates have advanced again,
ruling rates now ranging from 5 to 6 per cent.
Banks in the large cities are entirely out of the
market, while demand from the country banks
is widely scattered and for notes of small denominations. Bank rates to customers show
little change.




894

FEDEKAL RESERVE BULLETIN.

NOVSSMIJER 1, 2 9 1 7 .

Live stock.—During the week closing October than it has been for the past 25 years, on
13 the local market received more than 110,000 account of the advance in the price of silver in
cattle and calves. This is the highest record particular, and the profitable mining of tungever made for any week at any market in the sten and other ores.
world. Other markets in the district showed
Oil.—In September, Oklahoma completed
greatly increased receipts, so that the total nearly 50 per cent more wells than in August,
number of cattle marketed in this district for but obtained about a third less production
September was 21 per cent greater than for from them. Kansas completed half as many
September, 1916.
wells as Oklahoma with a production more
In order to secure the good profits that are than twice as great, and a half greater than
insured by present prices, stockmen are rushing her own new production for August. Kansas
their cattle to the market rather than take the produced more than 4,500,000 barrels for Sepchances of feeding any that are even fairly tember, five tim.es her amount a year ago,
marketable in the face of the high cost of feed
Wyoming fields show more than satisfactory
and uncertain profits in the spring. At the progress, and at the present rate of production
same time they are buying stockers more this year's output will be three and a half times
heavily than last year to utilize the forage and that for last year.
rough feed that is abundant in many localities.
There is still difficulty in obtaining piping
In spite of the heavy marketing now, well- and other drilling supplies, and prices are very
informed observers make the gratifying pre- .high. Owners of old piping are able to sell at
diction that next year there will be an increased excellent profit after having had the use of it.
supply of beef cattle. For September the i Lumber and construction.—Country dealers
movement of stockers in this district was 11 have been buying slowly and very conservaper cent greater than for the same month last tively, awaiting the time when the farmers
year. Prices for cattle have covered a wide will have become adjusted to paying presentrange, corresponding with the quality, being prices and have harvested their corn crops.
high for the best grades. Prices for hogs have
Wholesalers are very conservative over the
been high, notwithstanding which the receipts fall trade outlook. More and more persons are
in this district have declined nearly 45 per coming around to the belief that under the
cent in the period September 8 to October 6, extraordinary conditions now prevailing stabilas compared with last year.
ized prices, under Government regulation, are
On October 18 a fire occurred at the Kansas a distinct benefit to the country and to be
City stock yards, resulting in the loss of 7,500 desired by the dealers, even though the result
cattle, of a value of $500,000, as well as 3,000 were adverse to some individuals and localities.
hogs. Business was checked only temporarily.
The expected car shortage did not mateMining.—Zinc and calamine shipments from rialize, there having been but little difficulty in
the Missouri-Kansas-Oklahoma district show getting shipments through.
an increase over a year ago, but a decline from
For this district during September building
last month, with prices gradually decreasing. permits in 11 cities showed an increase of 3
Lead shipments increased slightly, but these per cent over the same month a year ago, as
prices also have declined. Some 40 mines are against a decrease of 27 per cent for the entire
reported as closed in Missouri, but the resultant country for the same two months. Topeka
decrease of production is more than made up showed an increase of 345 per cent, third
by the increase in Oklahoma, where, neverthe- greatest reported for the entire United States.
less, reports indicate the shortage of 1,000
Labor.—During the past month a score of
miners.
strikes have been called, but at present no
The outlook for mining in Colorado has been important one remains unsettled. A strike of
more promising|puring the past few weeks serious proportions and consequence was called




NOVEMBER 1,

1917.

FEDERAL RESERVE BULLETIN.

for the coal fields of Missouri, Kansas, and
Oklahoma, but intervention of the Federal
mediators promises to obviate the disastrous
results that seemed imminent. Throughout,
the work of the mediators has been most able
and effective and their success on every hand
is of more than passing importance to the
country at large as well as to this district.
There is an increasing shortage of help on the
farms, while the mining districts of Oklahoma
and Colorado are each calling for skilled
workers.
Mercantile.—The development of the district's oil fields is largely responsible for an improvement in general business conditions of
approximately 25 per cent over a year ago,
according to authentic reports. Wholesale
implement and hardware trade has improved
at least 30 per cent. The sales in number of
boots and shoes and of hats and caps show a
most satisfactory increase, while those for
millinery, rugs, groceries, and packing-house
products have been more than maintained.
Government demands for lumber continue
heavy; also cement and all building materials.
Manufactories of men's and women's garments,
harness, saddles, tents and awnings are working
to full capacity, and behind on orders. The
manufacturing of all kinds of metal goods is
unusually active. Department stores are enjoying an excellent trade in nearly every line.
People are buying liberally of a better ('lass of
goods than ever before.
Grain supplies enable Hour mills to run at
only about 80 per cent of capacity. After a
month of operation, Federal regulation of
grain seems to be working well and more and
more to the satisfaction of the millers.
Financial.—Heavy increases in bank clearings for 14 cities in the district reflect activity
in every line, having been influenced most by
Government purchases and high prices for
products. For the four weeks from September
8 to October 6 clearings were 40 per cent greater
than for the same period a year ago, and more




895

than double the clearings for the same period
two years ago.
Official reports show that the State banks
and trust companies of Kansas have made
heavy gains during the year ending September
1, the increase in deposits being 27 per cent.
Demand for money is good, as is to be expected at this time of the year, and there has
been no material change in rates of discount.
DISTRICT NO. 11—DALLAS.

Commercial activities greatly exceed a year
ago and the volume of fall business being
transacted in the larger centers of the district
more than offsets the unfavorable reports of
general trade and agricultural conditions in
the west and southwest portions, where the
drought has been so serious. Business of
practically all classes transacted at the principal markets of the district is unusually
heavy, especially at points where Government
cantonments are situated. As a result of the
latter condition activities at those cities are
almost unprecedented; in fact, as one of our
correspondents at a cantonment city reports,
it is practically impossible for new concerns to
obtain suitable business locations, the influx
of the population makes houses scarce, and
business is at capacity at the present time.
Added to the unusually heavy business, resulting from supplying Government requirements
and the concentration of troops, have been the
seasonal activities at places where fairs and
expositions are being held. Business generally,
and especially retail trade, shows the effect
of such attractions, and railroad and interurban facilities are taxed to capacity to
handle the crowds. Wholesale and jobbing
trade is in good volume; manufacturing industries, particularly those working on Government contracts, are running on full time;
the only thing to restrict such operations
being the scarcity of material and the continued shortage of labor. Collections are fair
to good.

896

FEDERAL RESERVE BULLETIN.

A heavy frost over the agricultural belt the
early part of the month caused some damage
to crops. As to just what the extent of this
damage is, however, it is difficult to say.
Authorities report that its most serious effect
will be on the top crop of cotton, and our
information is that its yield will probably
not be large. The height of the cotton picking and ginning season is now here, and with
favorable weather, receipts at the larger
markets have been quite heavy. The high
prices at which the staple is selling are being
reflected in the unusually prosperous conditions, and bankers at interior points report
good collections. While cotton is bringing the
highest price in the history of this section,
nevertheless, there is a disposition in some
quarters to hold for higher figures.
The Texas peanut crop, estimated as between 500,000 and 600,000 acres, is now being
marketed at good prices, and the yield promises
to be unusually large. This crop is every year
becoming more and more important in this
section. The yield per acre will be probably
30 bushels, and it will therefore be seen that
the total production will be around 15,000,000
bushels. Authorities state that probably 60
per cent of the crop will be crushed into peanut
oil, and a bushel of peanuts will produce one
gallon of oil, or three-fifths of a barrel per acre.
It will, therefore, be seen that Texas alone
will produce this year around 300,000 barrels
of peanut oil, and the importance of this industry is therefore significant.
Rice harvesting is now on and the prospects
are good for a normal yield. The returns from
the crop are bringing 75 per cent more money
than during previous years, notwithstanding
the cost of raising and harvesting the crop is
increased over previous years.
There is little change in the building industry since our October letter. Private construction work continues to be dull on account
of the scarcity and high price of material and
labor. Building permits at the principal cities
in the district for the month of September show
a decrease, both in number and valuation, over
a year ago, although a slight increase over the




NOVEMBER 1,

1917.

two months preceding. Cattle are selling at
good prices, especially calves and older steers.
Range conditions are still unsatisfactory, and
a large number of cattle are being shipped
from the west, southwest, and panhandle sections for pasturage and water.
The lumber mills of the district continue to
be active and are running on full time on Government orders and ship construction. Commercial trade, however, is dull and has been for
the last two months. There is some improvement from the interior trade and considerable
improvement is looked for in the cotton district as soon as the cotton is marketed. As is
always the case in seasons of light demand,
prices have been disturbed, and while there
has not been any considerable decline, the
market is weak, and may be termed a buyer's
rather than a seller's market. Cars are getting
scarce and manufacturers are not shipping
to more than two-thirds capacity on this account, which condition is said to be general.
The outlook in the trade for the fall and winter months, however, is very good.
As in other sections, the Liberty Loan campaign in this district has overshadowed every
other event in financial circles. Whether
this district will sell its allotment remains to
be seen. It is a fact, however, that the outlook
at this writing is not favorable, although much
more encouraging than a week ago. Money is
in good demand and rates are firm. Bank
deposits, reflecting returns from the marketing
of cotton and other farm products, are increasing steadily. Banking institutions, however,
are closely scrutinizing new credits, and conservatism is unquestionably being practiced
throughout the district. Another issue of
Treasury certificates offered during the month
was quickly absorbed in this district and our
allotment oversubscribed. Bond dealers report a large number of inquiries for that class
of securities and anticipate a large demand,
especially for municipals, when the Liberty
Bond campaign is over. The attractiveness of
municipal bonds as an investment and their
exemption from taxation will unquestionably
create an active market. Clearings at the

NOVEMBER 1,1917.

FEDERAL RESERVE BULLETIN.

principal cities—Austin, Beaumont, Dallas, El
Paso, Fort Worth, Galveston, Houston, San
Antonio, Shreveport—for the month of September show an increase of 16 per cent over the
same period last year. The figures were:
September, 1916, $246,176,574; September,
1917, $285,921,249; increase, $39,744,675.
General business in the mining sections of
the extreme West, which recently suffered from
labor disturbances, shows a good recovery.
There is an acute shortage of labor in all lines
and many organizations are handicapped as a
result.
Post-office receipts at the principal cities of
the district—Austin, Dallas, Fort Worth, Galveston, San Antonio, Shreveport, Waco—for
the month of September show an increase of 12
per cent over the same month last year. The
figures were: September, 1916, $255,562; September, 1917, $287,379; increase, $31,817.
Commercial failures reflect the general improvement in business, and the number in
Texas for the nine months of this year, as compared with the same period of 1916, shows a
substantial reduction, together with a similar
reduction in liabilities, of more than 100 per
cent. The figures as furnished us by Dun's
Review are as follows: September, 1916: Number. 471; amount, $4,994,576. September,
1917: Number, 316; amount, $1,143,073.
Exports through the port of Galveston for
the month of August—the latest figures available—aggregated $11,216,885, a decrease of
$2,333,247 as compared with August, 1916, and
$620,272 less than July, 1917.
Operations in the oil fields of the district continue very active as a result of the high prices
for the output. Operations are somewhat restricted, however, on account of a shortage of
material and labor, and insufficient water suppiyTrade with Mexico is active, but merchants at
border points are experiencing a great deal of
trouble owing to the embargo. The Mexican
customhouses are requiring all payments of
duties in Mexican silver or Mexican gold, which




897

has a prevailing rate at this time of about
cents. They will accept Mexican gold on a
basis of two to one,but will not accept American
currency. Owing to the embargo on the exportation of gold, banks on the border have declined to supply their customers American gold
for the purposes mentioned and as a result their
customers are suffering a loss of about 7 per
cent. Many of the mining concerns operating
along the border and in Mexico expect to resume operation in the Republic at an early
date, provided the present Government continues.
Labor troubles in the Bisbee and Douglas
sections have become more quiet and mining
operations are quite active," with smelters working full capacity.
Briefly, to summarize conditions throughout
the district, it may be said they are all that
could be expected for the season and the outlook is satisfactory. The conditions created by
the war must necessarily be considered, and the
uncertainty of the future has undoubtedly
affected may lines of business in this section;
at the same time the activities of the Government, in the way of cantonment construction,
the army pay rolls, and the influx of people at
the cantonment cities, has made for an activity
practically without parallel. The agricultural
conditions are only fair on account of the
drought, which is probably the worst in the
history of this section; at the same time the
excellent yield from cotton and farm products
in more favored sections tends to offset this
condition, and there is generally an optimistic
feeling as to business conditions.
DISTRICT NO, 12—SAN FRANCISCO.

The second Liberty Loan has had the center
of the stage during October. Subscriptions to
the first Liberty Loan closed June 15 and the
last payments were made August 15. Consequently the pressure upon banks because of
withdrawals and borrowings occasioned by the
first loan would appear within this period.
Some timid banks feared great reduction of re-

898

FEDERAL RESERVE BULLETIN.

sources. The loans, however, of the national
banks in the eight reserve cities of this district
show an increase of only $17,900,000 from
June 20, 1917, to September 11, 1917, while
deposits increased $32,300,000. During the
year—September 12, 1916, to September 11,
1917—deposits in the same banks increased
$80,000,000, ranging from an increase of 11.7
per cent in Los Angeles to 24.2 per cent in
Seattle. While complete reports of State
banks are not available, those published indicate a similar trend.
The entire reserves of all national banks are
now mobilized in the Federal Reserve Bank,
but only three State banks of Washington,
one of Oregon, and one of Idaho have become
members.
Labor conditions in this district are disturbed. There have been important interruptions in production by strikes, notably those
in the shipyards about San Francisco Bay and
those of Puget Sound and the Columbia River.
In some cases there has been temporary resumption of work at increased wages pending further
adjustment by the Federal Wage Adjustment
Board. In some cases the demand has been
made for the closed shop.
It is too obvious to require statement that
our present national need is for the greatest
industry, the maximum product and the minimum consumption of food and other goods on
the part of each individual as his contribution
toward a successful prosecution of the war, and
that no consequent hardships of either capitalist or laborer could possibly equal those of the
man who is fighting at the front in the interest
of all.
Strikes have hampered the lumber industry,
but output has again reached 75 per cent of
normal. Mill stocks are from 51 to 83 per cent
below those of November h 1916.
In Arizona the I. W. W. agitation has ceased,
although the Miners' Union has not yet voted
to return to work in the copper mines. The
most serious recent depredation has been the
firing of grain and feed in the San Joaquin Valley in California.




NOVEMBER 1,

1917.

The yield of grains is below normal, except in
the case of barley. The hay crop is about normal, with decreases in Oregon and Washington
and increases in California, Idaho, and Utah.
The October 1 Government forecast gives
Washington's commercial apple crop as
3,660,000 barrels—an increase of 200,000 barrels over that of last year. The increase would
have been greater but for the codling moth. A
large canning and evaporating establishment
erected in the Yakima district will save 4,000 to
5,000 tons of windfalls and inferior fruit heretofore wasted. The Northwestern Fruit Exchange reports the 1916 apple crop in excess of
16,000 cars, compared with 9,600 cars in 1915.
During the past three months a new record
has been established in the shipment from California this season of 27,000 carloads of deciduous fruits and other perishable commodities.
The California peach crop this year will exceed
that of last year by 1,300,000 bushels. A
threatened box shortage may hamper future
shipments of deciduous fruits. The California
prune crop will exceed all records. The condition is given as 92, compared with a six-year
average of 77. The condition in southern
Idaho, however, will be only about 40 per cent
of normal, due largely to hot weather early in
October.
The California bean crop aggregates 9,280,000
bushels from 395,000 acres, being twice that of
1916 from 253,000 acres. The value of the
lima bean crop in Southern California is estimated at $10,000,000, that of other varieties,
14,000,000. The crop of pink beans in the
delta region near Stockton, Cal., will be from
550,000 to 600,000 sacks.
Constantly increasing hay prices, with alfalfa
now quoted at $25 per ton, are causing many
farmers in central Oregon to ship their breeding
cattle to market. Purchases by large interests
to feed sheep during the winter, and by the
Government for the 16,000 head of horses
and mules at the American Lake cantonment
near Tacoma are given as contributing causes.
The high price of feed, the high prices offered
for ewes and lambs, and the shortage of range

NOVBMBBS 1, 1917.

FEDERAL RESERVE BULLETIN.

will prevent an increase in the number of
sheep carried over in Idaho this year. Increased sheep feeding by farmers in southern
Idaho will to some extent offset the decrease in
range feeding.
California is producing more fall onions for
commercial purposes than any other State in
the Union. The yield is estimated at 3,348,000
bushels, 500,000 more than in New York, the
second State. Idaho, Washington, and Oregon
will produce 890,000 bushels.




899

The salmon pack, though disappointing at
certain points, will show an extraordinary
total.
During September the shipments of petroleum from the California field exceeded production by 661,470 barrels, reducing stored
stocks to 34,656,007 barrels compared with
48,469,257 a year ago.
Conditions are generally those of activity
and prosperity throughout the district.

900

FEDERAL RESERVE BULLETIN.

NOVEiTBEB 1, 1917.

DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKSDuring the month of September discount
operations of the Federal Reserve Banks totaled $548,164,104, compared with $220,838,942
the month, before, and an average of $409,912,133 for the quarter ending September.
Over 86 per cent of the month's discounts,
or $474,178,258, is represented by member
banks' collateral notes, the New York bank
alone reporting $303,327,497 of discounts of
this class of paper. Of the total collateral notes
discounted by the Federal Reserve Banks during the month about 45 per cent was secured
by Liberty bonds or United States certificates
of indebtedness, while the remainder had as
collateral commercial and bank paper or United
States bonds issued prior to the war.
Total discounts for the month include, in addition, $855,834 of trade acceptances (twoname paper) reported by all but the Dallas
bank, $500,141 of commodity paper, reported
largely by the Atlanta bank, and $72,629,871
of other, principally one-name, secured and unsecured paper. Discounts for the nine months
of the current year aggregate $2,188,917,568,
compared with $114,387,500 for the corresponding period in 1916. Over 80 per cent of
the present year's discounts were collateral
notes, while $10,726,238 are given as trade acceptances and $7,019,776 as commodity paper.
As compared with corresponding 1916 figures,
trade acceptances discounted by the Federal
Reserve Banks increased about 277 per cent,
while commodity paper discounted declined
about 41 per cent. Owing to the preponderance of collateral notes among the total discounts of the month, nearly 90 per cent of
these discounts is shown, to be 15-day paper
(i. e., maturing within 15 days from date of
discount with the Federal Reserve Bank), the
proportion rising to 96 per cent in the case of
the New York bank. Less than 3 per cent of
the month's discounts was 30-day paper, over
4 per cent 60-day paper, and about 3 per cent
90-day paper. Agricultural and live-stock paper maturing after 90 days from date of dis-




count with the Federal Reserve Bank (so-called
6-months paper) totaled $1,401,135, or only a
fraction of 1 per cent of the month's total discounts. During the nine months of the current
year the Federal Reserve Banks discounted
about $14,528,000 of this class of paper, compared with $14,637,300 for the corresponding
period in 1916 and $13,032,300 in 1915.
On the last Friday in September the Federal
Reserve Banks held a total of $233,539,000 of
discounted bills as against $147,315,000 at the
end of August and $25,952,800 on the corresponding date in 1916. Nearly two-thirds of
the discounts on hand were bills maturing
within 15 days. The total comprised $65,923,000 of member banks' collateral notes secured
by Liberty bonds or United States certificates
of indebtedness, $56,695,000 collateral notes
otherwise secured, $10,185,000 of agricultural
paper, and $9,910,000 of live-stock paper of all
maturities, $89,709,000 of commercial and industrial paper, and the remainder unclassified
paper, including customers' paper of all maturities secured by Liberty bonds or certificates;
also, nonmember-bank paper indorsed by member banks. Over 77 per cent of the agricultural
paper was held by Richmond, Chicago, Dallas^
and Minneapolis banks, while nearly 90 per cent
of the live-stock paper is reported by the Kansas City, Minneapolis, Dallas, and Boston banks.
During the month the number of member
banks increased from 7,756 to 7,805, while the
number of discounting members shows a decrease from 990 during August to 946 in September. Chicago reports 127 member banks
accommodated, the largest number for the
month; Atlanta, 122; Richmond, 101; and
New York, 98 discounting banks. During the
third quarter of the current year a total of 1,647
member banks availed themselves of the discount privileges, Minneapolis, with 194 discounting members, leading all other Federal
Reserve districts. Cleveland reports the smallest number of members accommodated during
the quarter—viz, 52 banks.

901

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

Bills discounted by each Federal Reserve Bank during September, 1917, distributed by sizes.
To $100.
Banks.

Number of

Amount.

i Over $100 to $250. Over $250 to $500. Over $500 to §1,000.
Numbcr of Amount.
| pieces.

Number of

Number of

Num- j
ber of! Amount.
pieces.!

Amount.

Over $1,000 to

Amount.

I
1

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

$100 |
3,075 I
10,283 i

1

57
195

2,500
100
2,075
1,209
3,833
100
1,996

Total
Per cent
Member banks' collateral notes.

415

25,271

25
54
90
2
188
84
98
62
32
41
125
11

84,316
8,733
13,700
312
35,230
15,361
19,896
11,170
4,483
8,020
20,822
2,003

64
70
113
4
263
122
287
118
36
161
91
29

$26,787
24,895
43,932
1,583
101,483
50,780
120,295
45,672
14,482
62,074
32.729

812

144,046
.2

1,358

534,813

I Over $2,500 to $5,000. Over $5,000 to $10,000.
Banks.

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total
Per cent
Member banks' collateral notes.




Number of
pieces.

1
I
I
|
i
!

Amount.

283
566
247
113
410
200
431
591
108
152
105
348

$1, 345,899
546.979
092)239
490,837
1,800,150
845,706
1,988,015
2,905,141
457,724
696,348
400,267
1, 637,609

3,554

16,206,914
21.9
197,000

45

I

Number of
pieces.

Amount.

87
82
98
7
181
259
73
64
133
119
35
1,418

$71,476
66,566
80,409
6,216
231,099
145,339
214,167
52,205
49,380
96,685
90,533
22,739

87
167
189
63
324
236
330
170
123
144
172
79

$148,910
309,081
351,561
125; 197
593,951
419,014
573,357
378,807
190,173
233,795
286,031
143,882

1,126,814
1.5

2,084

3,753,756
5.1

Over $10,000.
Number of

88
256
70
67
173
91
232
186
83
64
50
124

$813,342
2,344,689
596,966
549,355
1,560,094
735,453
2,125,537
1,747,900
727,478
528,102
369,702
1,058,513

75
242
39
52
94
25
172
159
48
48

1,484

13,157,131

1,125

105

964,790

i7.8

j
j
!
!

154

816

Amount.

Total.
Number of
pieces.

Amount.

$2,601,106
10,912,478
1,130,221
1,453,124
2,106,896
682,579
6,563,175
6,047,844
1.061,335
i;302,534
382,441
4,793,365

710
1,494
1,039
308
1,759
940
1,830
1,374
566
744
706
780

$5,011,930
16,216,49t>
3,319,311
2,626,624
8,431,403
2,894,332
11,606, bVi
11,189,948
2,508,888
2,927,65?
1,584,521
7,868,212

39,037,098
52.8
473,016,488

12,250

73,985,841100, C
474,178,258

966

902

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

Bills dibcounted during the month of September, 1917 and 1916, and the nine months ending September 1917 and 1916,
distributed by classes.
Member banks' collateral
notes.

j
!
Trade
Secured by
acceptances.
Liberty
Otherwise
bonds or U. S. secured.
certificates of
indebtedness.

Federal Reserve Bank.

_r!

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

818, 193,650
129, 357,497
10, 082,190
6, 060,000
41, 738,500
3, 261,000
16 078,000
11, 125,000
771,148
19, 767,633
1 778,000
330,000

$141,384
161,845
16,289
70,508
35,926
102,954
13,653
93,137
1,000
172,795

j 215,635,640 258,542,618
1,410,850
1,788,126,950
1,410,850

855,834

S2,804,700
! 173,970,000
I 5,532,500
! 9,018,000
1,952,290
1,749,400
! 7,951,900
i
2,711,500
j
1,067,000
! 5,556,450
!
1,852,500
! 1,469,4.00

Total, September, 1917
Total, September, 1916
Total, January-September, 1917
Total, January-September, 1916

Commodity
papr:r.

§4,870,652
16,054,651
3,303,022
2,556,116
6,358,799
2,327,915
11,592,864
11,096,811
2,507,888
2,754,863
1,584,521
7,621,869

46,343

593,500
10,726,238
2,841,100

All other
discounts.

500,141
1,636,300
7,019,776
12,028,400

Total.

828,010,286
319,543,998
18,934,001
17,704,624
50,122,193
7,904,732
35,636,417
25,026,448
4,347,036
28,251,741
5,215,021
9,467,612

72,629,871
548,164,104
14,308,800
10,668,150
383,044,604 2,188,917,568
98,107,150
114,387,500

Amounts of discounted paper, including member banks1 collateral notes, held by each Federal Reserve Bank on the last Friday
in September, 1917. distributed by classes.
[In thousands of dollars: i. e., 000 omitted.]
Member banks' collateral notes.

Banks.

Agricultural
paper.

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

7
110
46
10
2,437
861
2,167
150
1,421
181
1,830
965

Total...
i'ercent

10,185
4.4




Live-stock
paper.

Commercial
and industrial paper.

Secured by
Liberty
Bonds or U.
S. certificates
of indebted-

Otherwise
secured.

All other
discounts.

Total.

1,953
43,591
1,113
5,094
837
1,096
5,321
1,385
488
2,978
1,198

1,345
13,775
3,625
2,100
2,985
2,160
13,350
5,237
300
10,633
1,075

444

10,315
17,995
6,331
2,922
8,992
3,852
12,969
9,774
5,667
1,466
2,007
7,419

110

11

15,214
75,618
11,120
10,616
15,696
8,344
33,843
16,828
10,289
17,855
8,298
9,818

9,910
4.2

89,709
38.4

65,923
28.2

56,695
24.3

1,117
0.5

233,539
100 0

1,594
5
375
36
227
2,413
2,597
2,188

147
487
417

55

903

FEDERAL BESEKVE BULLETIN.

NOVEMBER 1,1917.

Bills, including member hanks' collateral notes, discounted by each Federal Reserve Bank during the three months
September, 1917 > distributed by maturities as of date of discount.
Xumbor Xuinber
of b a n k s
oi'
accommomember
dated
banks ai
d i.1 ling
O;Hi Ot
quarter
Soptomor* din?
Sopr. 36.

Districts.

District No. 1—Boston:
Connecticut
Maine
Mussseli usotts
Nc\w Hampshi r c
'Rhode Island
Vermont
Total
District No, 2—Now York:
N e w Vork...»••...
Now Jersey
Connecticut
Total
District No. 3—Philadelphia:
Delaware
Now Jersev
Pennsviva'nia
Total

Total
District No. 5—Kichmond:
District of Columbia
Maryland
North Carolina
South Carolina
- .
Virginia
West Virginia

. .

\l'aturitiss.

dr-.ys.

From 10 to From 3 \ to From 01 to
30 clays.
9'J days.

0 ver 90
r'Jays.

Total bills
diseouriiA-rf.

54
64
160
55
17
48

S
7
60
13
4
11

$2,653,874
84'. 131
08,217^769
1 100' 600
510,000
717,311

$578,463
89,488
4.707,923
'109 883
400,000
158,710

$377,300
108,739
5,176,250
262 99'
162,645

144,808

398

103

73,283,685

6,044,467

8,087,925

9,139,398

262,402

94,817,877

48*
132
16

102
87
5

539 653.793
8', 141', 035
325,085

3,083 063
504', 125
140,824

6.123,461
'683,087
90,025

H 033.353
1,4] 7'. 700
' 130', 602

7 089

623, 500,759
10,747,197
!'• 688,536

63.1

144

608.120,503

4,328,012

6,897,173

15,581,655

7,089

634,934.492

29
72

District No. 4—Cleveland:
Kentucky
.
Ohio
Penns v ^ v anl a
West Virginia

ending'

$688,397
88,890
8.035,478
' i g i 825

S325
262,077

iii 830

34,298,034
:•• 371,57388,399,497
1,655,299
'910,000
1,183,474

17
86

1 548 9^0
49,084,838

ill ?05
1,248*732

224 267
1,090,296

5,175,808

6,084

2,074,5*2
57,205,758

627

103

50,633,778

1,366,237

1,914,563

5,359,638

6,084

59,280,300

68
374
299
13

89
S

49,6.13
26,357) 135
7,013,557

2,000
4,637,451
' 8,465

3,756
2,650,133
13,819
11;000

50,000
2.508,662
53,849
10; 000

10,769
814

105,369
36,164; 150
7,090.304
21,000

754

52

33,420,305

4,647,916

2,073,708

2,822,511

11,383

43,380,82

i«
95
80
81
148
102

,
17

721,886
14,214,268
3,247,231
3,418,382
76;382,679
150,000

J 00,171
1,306,141
298,020
502,315
665.932
38;046

22.000
2,"! 92'. 807
1,078'. 462
1.384,087
11631,801
' 421007

22,000
2.354,406
i;57'i,<S40
1.612" 488
ll129.205
37; 096

2,910,085

6,351,164

8,730,035

59

1

99. i%

152,913
30,680
282,789

886,057
20,007,622
6,297,749
7.070,185
79; 810.357
287; 149

52 i

178

98,134,446

' 32
19
54
12
7
33

502,067
1.361,755
3,985.049
1 000', 500

Tennessee

94
54
100
24
17
92

Total

381

157

8,315,024

1,730,710

4,440,389

2,449,020

228,700

17,167,843

323
197
35G
79
108

85
33
82
29
22

36,030,895
1,825,920
2,106,323
15.289.175
5,704; 830

2,811,436
'517,901
222,8137
3,849.547
2,382,897

2,199.997
547; 990
782,920
1,348.399
7,065; 217

2,383.516
2751502
882', 083
1,170,220
404,199

08,631
49,845
367.414'
66,398
44,469

43,503,475
3,217,158
4,341.577
21,723', 739
15,601,612

1,083

181

60,966,143

9,78-1,018

11,944,523

5,095,520

596,757

88,387,501

67
156
62
66
18
84
20

20
13
6
8
8
14
12

812,307
64,191
1,262,500
1,691,070
18,300
37.025,896
'516,807

144,996
30,214
136,826
433,579
7,100
3,045,422
330,312

195,851
118,702
339,904
737,688
23,430
3,632,939
656,686

188,710
121,398
116,798
212,778
71,374
3.210,091
'248,763

79.206
31854
2,075
28,451
6,000

1.419,070
338,359
1,856,028
3,075,095
122,279
46,942,799
1,758,588

473

79

41,391.071

4,128,449

5,705,180

4,167,912

119,586

55,512,198

Total...
District No. 6—Atlanta:
\labana
Florida
Georgia
Lo uisiana

District No. 7—Chicago:
Illinois
India Qa
Iowa
Michigan
Wisconsin
Total
District No. 8—St. Louis:
.•\ rka r iss < 3
Illinois
. . .
Indiana
Kentucky
Mississippi
Missouri
Tennessee
Total




I

976,653

207.787
251,228
373,230
47,500
31 770
819,195

371,891
452.099
1,8081203
39', 499
139 137
1,634;960

402,708
144,258
801.411
155.930
42'333
902.380

38,256
4, 798
381216
71', 732
&. 000
5i; 700

114,4.09.113
1.642,709
2;214.736
7,004,109
1.315*161
'806 ?40
4,384,888

904

FEDEBAL BESEBVE BULLETIN.

NOVEMBER 1, 1917.

Bills, including meinber banks'* collateral notes, discounted by each Federal Reserve Bant during the three months ending
September, 1927f distributed by maturities as of date of discount—Continued.
Number j
. Number of "banks }
:
of
accoinmo-i—member
dated i
! banks at d^ng
! Within 15
• end of
Soptcm
i Soptcm- 5nding !
bcr.
i Sept. 30. j

Districts.

.District No. 9—Minneapolis:
Michigan
Minnesota
.....
North Dakota
South Dakota
Montana
Wisconsin

33
293
157
127
108
37

755 !

Total.
District No. 10, Kansas City:
Colorado
Kansas
Missouri
Nebraska
New Mexico
Oklahoma
Wyoming
Total.

i
I
'•
!
i
i

122 :
231
55 !
192 j

•U

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.

308 !
36 :

194 j

Maturities.

! From 16 to j From 31 to From 61 to
:
SO days, i GO clays.
90 days.

! Total bills
Over 90 ! discounted.
days.
!

39,639
8,822,718
106,207
37,475
355,000
26,505

15,000 j
29,639
1,850,283 i 5,590,388
59,460 ! 342,492
52,511
10,516 ;
71.373
7,943 i
219,927
89,002 I

5,082
3,730,887
359,716
93,514
245,073
259,062

999,410
261,188
121,023
369,347
22,153

89,360
20,993,686
1,129,063
315,039
1,048,736
616,649

9,387,544

2,032,204 | 6,306,330

4,693,334

1,773,121

24,192,533

434.196
2)200

-18.227
36i;850
183,235
243,094
17,711
1,401,599
11 500

•13,877
97,021
67,012
131,320 !
31.067
1,148', 191
5,850

147,986 :
81," 878 I
575 i
336,539 I
70,085 i
359,521 '
23.410 •

715,875
2,082,075
44,066,397
7,691,880
119,463
9,138,959
54,960

1,328,256

2,267,216

1,524,338 I 1,020,594 !

63,869,609

5.785
483* 448
130,000
272.627

470,000
17 j
1,057,878
35 !
14 I 43.(585.575
20
o; 708; 300 i
4
89
5,795,452
12,000
3
182

57,729,205

7
12
31
31
551

151

160,000
45,000
6,413,891

6,750 i
32,924
9,590 |
500,254
9'015
41,554
107,073
2,006/783

10,533
113,781
78,246
2,373', 599

3.281 I
318;214 i
22,0-17 i
1,077,258 !

53.488
i,iei;839
195,862
12,278,604

632

169

6,618,891

432,428 j 2,581,515

2,576,159 J 1,420,800 !

13,029,793

953 |

I
1
7
271
63
10
82
24
159
G17

5,421,162
'157; 000

2,567,746
,
j! 3,626,747 j 2,159,810
93,682 j ' 183', 739 !
8,817!

141,246
119,262

13,916,711
562,500

190,805 i
299,710 I
098,475 !

2(5,613
39!8S5
267'. 876

431,535
1,004,021
4,239,484

8,208,498 I 3,008,012 | 4,810.310 j 3,532,539 j

594,892

20,154,251

262.402
7; 089
6,084
11,383
282,789
220,700
596,757
119,586
1,773,121
1,020; 594
1,420,800
o94; 892

94,817,877
634,934,492
59,280,300
43,380)823
114,409,119
17,167,843
88,387,561
55,512,198
24,192.533
63,869;609
13,629,793
20,154,251

63,472,059 j 6,322,197

1,229,736,399

170,000 !
492,080 i
1,968,256 j
107

2,027
58,075
371,347

42,090 i
114.201 I
933;530 i

RECAPITULATION.
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
19, Kansas C i t y . . .
11, Dallas
12, San Francisco..
Total for 3 months ending September.
1917..
.!.

Per cent

Total for 3 months ending September, 1916.
Total for 3 months ending September, 1915.




398
631
627
754
521
381
1,003
473
755
953
632
617

103 i
144 I
103 i
52;
176 i
157 !
181 i
79 !
194 ;
182 |
169 !
107 i

73,283,685
608,120,503
50,033,778
33,420,305
98.134,446
8,315.024
00,906', 143
41,391,071
9,387,544
57.729,205
0; 618,891
8.208.498

1,647 jl,056,209,153

6,044,467 ! 6,087,925
9,139,398
4,328,012 i 6.897,173 15,581,655
1,360,237 I I)914,503
5,359.038
4,647,916 I 2,078,708
2,622', oil
2,910,685 i 6,351,164
6,730,035
1,730,710 i 4,446,389
2,449,020
9.784,018 i 11,9-14,523
5,095,520
4;128, 449 ! 5,705,180
4,167'. 912
2,032,204 ! 6,306,330
1,093; 334
1,328.256 I 2,267,216
1,524,338
432;428 I 2', 581*515 2,576,159
3,008,012 I 4,810.310
3.532;539
41,741,994 j 01,990,996

24,327.200
5,246,100

10,093,200
! 15,683,300

13,594,900
15,120,900

3,828,300
3,826,400

51,843.600
39,876,700

JSTOVBM BBR 1 , 1 9 1 7 .

905

FEDERAL BESEBVE BULLETIN.

Distribution,; by sizes, of bills bought- in open market by all Federal Reserve Banks during September, 1917* and the nine
•months ending September, 1917', and 1916,
To $25,000,

To $50,000.

Acceptances bought in open market
Amount, ! Pieces,

Amount.

Pieces. I

Banker's acceptances
Trad© acceptances
Total, September, 1917
Per cent
August, 1917
y,
June, 1917
May, 1917.
April, 1917
March, 1917
February, 1917
January, 1917
Total, 9 months ending September, 1917
Total, 9 months ending September, 1918.

Amount.
§33,096.394
1,552'. 176

S64
851
1,497
890
270
175
777

1.153
l'.58O
2; 297
1,305

097,592
774.48A

024', 753
147,380
381,029
324,018
706,069

34,6-18,570
' 31. S
21.217,335
26,495,822
46,144,288
27,835,025
13,231,092
6,970,408
22,367,962
5,238,208

1,355 I
2,641 !
1,580 I
647
363
1,248
300

Pieces.:

AJLUOUHI;.

642 : £27,886,816
30 j 1,122,356
672 i
,....;
426 i
256
793
442
257
171
40.1

29,109,172
26.7
18.089,978
10;722,807
34.140; (552
18'681,746
1L 003,120
?;185,125
16,-183,974
898412
152 i 6,898,412

| 10,489

204,154,708

3,570 | 152,314,988

3,292

71,221,027

1,079 | 48,434,347

To $100,000.

Total.

Over $100,000.

Acceptances bought in open marfret.
Pieces.

Amount.

Pieces.

Amount.

Pieces,

Amount.

Banker's acceptances.
Trade acceptances

267
12

$22,387,095
929,911

52 $10,177,558
109,780

5,212 $104,162,500
4,883,966 j
347

Total, September, 1917.
Percent
August, 1917..
July, 1917
June, 1917
May,1917
April, 1917
March, 1917.....
February, 1917.......
January, 1 9 1 7 . . . . . .

279

23, 317,006
21.4
15, 008.823
12, 643', 409
26, 306,940
15, 377,503
7, 155,097
6, 801,912
15, 273,481
3, 891,515

53 10,287,318
9.4
7,066,795
6,511,943
10,809,917
10,098,085
6,186,816
4,930,660
8,012,105
1,859,768

5,559

109,046,466

186
152
306
181
87
86
180
48

3,837
4,328
7,597
4,444
2,047
1,209
3,474
1,384

72.122,802
66;864,065
135,229,697
82", 588,496
41,312,591
28,151,638
70,637,179
20,617,180

Total, 9 months ending September, 1917.

1,505

126,675,688

65,763,407

33,879

626,570,114 |.

Total, 9 months ending September, 1916.

492

40,877,226

209 39,778,869

12,232

229,781,682 i.

Per
cent,
95.4
4.6
100. ft

Of the above amount, banker's acceptances totaling $87,937,125 were based on imports and exports and '518,242,042 on domestic trade transactions.
Of the above trade acceptances, $4,755,352 were drawn abroad on American importers and indorsed by foreign banks and $128,615 were based on
domestic trade transactions.




908

FEDERAL BESERVE BULLETIN.

NOVEMBER 1, 19171

Acceptances bought in open market and held by Federal Reserve Banks as per schedules on file with the Federal Reserve Board,
or as reported by the Federal Reserve Banks on dates specified, distributed by classes of accepting institutions.
Banker's acceptances.
Date.

Feb. 22
Apr. 5
May 3
June 7
July 3
Aug. 2
Sept. 6
Oct. 4
Nov. 1
Dec;. 8
Jan. 3

1915.

1916.

Feb. 7
Mar. 6
Apr. 3
Mav 1
June 5
July 3
Aug. 7
Sept. 4
O ct. 2
Nov. 6
Dec. 4
1917.
Jan. 1
Feb. 5
Mar. 5
Apr. 2
May?
June 4
July 14-16
July 31
Aug. 15
Aug. 31
Sept. 15
Sept. 29
Oct. 15




Nonmem- Nonmember State
bcr trust
companies.
banks.

Member
banks.

S03,000
3,653,000
5.038,000
5', 242,000
4,342,000
5,350)000
6.087,000
9,000,000
8.4771000
12,311,000

S10,000
10.000
10)000

87,820,000
8,189,000
4.516.000
5'. 267) 000
5)407,000
6,305,000
4,898,000
4,331,000
5,172,000

15,494.000
15,681'. 000
I 17,182'. 000
! 21,000) 000
| 24:, 875,000
i 24,680,000
! 32,989,000
j Hi). 605)000
,.! 41; 413,000
! ?,';; 70S, 000
i 37.770.000
j 47'. 748)000
i '
I
| 66.803,000
! 50'. 361,000
i 5V5,288,000
I 43,979,000
49,192,000
(59.262,000
108:597,000
112'. 433,000
85)148,000
94,597,000
108,111,000
131,997,000
127,942,000

Foreign
bank
branches
and agen-

I
I
!
|
!
|

I

""26,"666"
20,000
132,000
253.000
275.000

.!
.i
.
.|
.[
.1

822,000 I.
1,456,000 i.
1,781,000 !.
3,262,000 i.
3,430,000 !i.
7,007,000 .
11,8*0,000 i.
13,940,000 i.
12,491)000 :.
9,944 000 ,.
12.'47,000 i.
16)069.000 I.

34,825,000
23,511,000 I
32,518,000 !
20,328,000 i
19,650,000
27,611,000
30,390,000
43,107.000
38)087)000
33,273,000
28,406,000
14,987,000
15,356,000

18,224,000
13,775,000
20,581,000
16,830,000
19,177.000
21,077)000
38,082,000
20,782,000
14,137,000
18,086,000
21,118,000
21,708,000
22,931,000

1

Total.

Trade ac- j
ceptances Total acbought in ceptances.
open
mar lest.

$93,000
11,593,00013,347,000
9,960,000
9)770,000
11,129,000
12,88-1,000
14,373,000
13,265,000
18,154,000-

893,000
11.593,000
13)347,000

15110,000
110,000
192,000
161,000
352,000
4,72)000
343,000
204,000
396.000

362,000
7.160,000
336,000
7)876,000
4,08,000
8,670,000
473'. 000
13,573,000
5S5.000
15,400,000
644,000
17,029,000
471,000
18,921,000
738,000
19,060,000
720,000
20)356,000
712'. 000
21,782,000
29,474,000 ! 1,014)000
33,232.000 I I,630,000
1,502,000
972,000
1,090,000
689.000
236)000
584,000
3,333,000
2)564,000
2,177,000
2,312.000
2,431)000
2,193,000
1,840,000

I

9,770.000
11,129)000
12,884,000
14,373,000
13,265,000
18.154,000
23,838,000
25,349,000
28,041,000
38,308,000
44,290,000
49,360,000
64,211,000
73,433,000
74,986,000
70,236,000
80,405,000
98,679.000

121,154,000
8140,000 88,759,000
354.000 107,837,000
200)000 82,026,000
94.000 88,349,000
239)000 118,773.000
3.805,000 184,785)000
1)087,000 179,973,000
1,345,000 140.894,000
1)369,000 149)637.000
1.329,000: I161.145'. 000
2,286,000 173)171)000
1,471,000 169,540,000

3489,000
462.000
722,000
1,477,000
2,208,000
3)422,000
4,225,000
3,673.000
2,306)000
2,378,000
4,487,000

!
!
i
j

23,838,000
25,838,000
28.503,000
39)030,000
45,787,000
51,568,000
67,633)000
77,658,000
78,659,000
72)542,000
82,783,000103,166,000

4,585,000 125,739,000
4'. 041,000 92,800,0002)535.000 110,366,000
1,144)000 83,170,000
1,079,000 90)028,000
8,022,000 121,795,000
4,660,000 189,445,000
4,242,000 184,215,000
2.300,000 143,194,000
4)952,000 ".(54,589,000
7,246,000 168,641,000
6,942,000 I180,113,000
8,234,000 I 177,774,000

"NOVEMBER 1,1917.

907

FEDEBAL RESERVE BULLETIN.

Amounts of hills discounted and acceptances and warrants bought ty each Federal Reserve Bank during September. 1917,
distributed by maturities.
15-day maturities.

30-day maturities.

T3an'ks.
u

\^n£y

Discounts.

321.307,152
307;344.787
17,174; 648
15,123,309
44.51], 614
5,358,774
25,552,994
17,128,763
1,953,263 i
25:913,339 I
3;658,491 I
3,320,165 i

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

Total.

Discounts, i ^^J£ r " I Warrants. '

321,761,413
307,653,280
17,175,492
15,136,408
44.S28,293
5;397,274
25,5oi; 594
17,123,763
1,953,263
25,913.339
3.858; 491
3". 407,718

5454,
308,
13,
16,
38,
1,

200,

! 488,347,299 ;

Total.
Percent

Warrants. '

SI,105,029
8799.293 j
3,151,604
5,237,243 I
568,323
637,528
974,081
1,110,555
1.272,245
1,307,528 j
'475,233
1,042.476 '
3,016,285
2.689,767
1
'136 377 !
I
496,887 I
I
135,632
200,000 \
1,879,306
1,068,500 I

I Disccunts. !

Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
•3an Francisco.
Total.
Percent

.Acceptances,

61,507.284 S2,292,846
3,575;917 14.952,057
717,629
'919,546
846,816
1,466,578
2.405,684
655,000
L 420,993
41,780
4,784,878
66.667
2,918,950 !
1,059,761
864.681 '
3,557,339
771', 092
1,145,039
2,762,084
i 23,695,769

27,303,892
4.2

25,096,852

Warrants.

90-day maturities.

Total.

Discounts, i

I 83,800,130
18,527,974
1,637,175
2,313,394
3.060,684
SI,546 I i;464,319
I 4,851,545
I 2,918.950
. . . ! 1,059,761
!
864,681
,
! 4.328,431
3,907,123
•j
1.546 ! 48,794.167
7.4

Acceptances.

Warrants.

! Discounts.

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




81,008,843
2,430,168
145,576
21,478
110,550
45,524
73-rf>44
309,012
101,110
311,573
236.814
152,244

£28,010.280
319,543;993
18,934,001
17,704.624
50,122;193
7,904'. 732
35.636'. 417
2o! O2<5', 448
4,347;036
28,251',741
5,215.021
9.467; 612

Acceptances.

$14,109,198
44,978^564
4,826.189
8', 004; 490
2,868,600
1,025,375
3,405,382
2,302.652
1,201,814
674,378
681,407
1,971,454

18,819,132 I 67,230,371

86,049,503

i31

Per cent.

Warrants.

Total.

AcI Dis- cept• counts ances.

633
! 842,643,906
434
I 38.1,978,833
056, 2 I
I 24,990.283
855, 782 j
.j 27,560:406
025. 07 I
j 53,147; 900
5'tt
• 9.450.201
j §11,546
.,924;
37,561.350
322.
I 25,349;144 i
£5'.
30,210 I 4.452.825 i
d'.
...'.
j 28',260;858 I
. !I 9,440,775 i
; 225;
12,390.345 I
2.928,733
;...
5,928,

548,164,104 J 109,010,48S

Total

! $12,340,454
j 39,506,879
i 4,357', 002
!
7,244,072
941,500
411.167
1.406;666
" 22,696
95,079
9,117
268.415
627,324

31,768,744
5,471,685
469,187
760,418
1,927,100
614,208
1,998,710
2.279,956
1'. 106.735
'665:26!
412; 992
1,344.130

Total.

Boston

SI,904,322
8,388,847
1i205,853
2,084,636
2,579,773
1,517,709
3,016,285
2,689,767
136.377
496,887
335,632
2,947,806

1,121,029

60-day maturities.
Banks.

Total.

21.75' i 657.232,326
I
' 100.0

Warrants Total.

61.0
83.7
75.8
64.2
94.3
83.7
94.9
98.7
97.6
100.0
55. 2
76.4

39.0
16.3
24.2
35.8
5.7
16. 2
5.1
1.3
2.2
44. 8
23.6

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

83. 6

16.4

100.0

0.2

908

NOVEMBER 1 , 1 9 1 7 .

FEDERAL RESERVE BULLETIN.

Maturities of discounts, acceptances, andmunicipal warrantsheldby each Federal Reserve Bank on Friday, Sept. 28, 1917.
fin thousands oi dollars; i. o., 000 omitted.]

1 to 15 days.
Banks.

Acceptances
bought.

Municipal
warrants.

1,805
7,333
1,195
2, 683
541
115
3, 778
790
736
1,580
902
2,024

Boston..
New York
Philadelphia...
d o v eland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis....
Kansas City...
Dallas
San Francisco..

16 to 30 days.

126
20

Total.
Per cent

Bills
;
discounted.!

Total,

8,020
69,873
7,561
10,752
7,962 j
4,695 i
;
i
10,632 !
3.868 |
15,995 i
4.869 j
5,784 !

3,256 i
3,404 i
i;077 |
618 i
3,146 i
1,364 i
2.361 i
1^925 .
1,787 .:
925 ;
931 :
1,839 |

178,424 !
43.5 |

22,533 !
35.3 i

!

!

31 to 60 days.
Banks.
Bills
discounted.

Boston
New Yo r k

!

...

Cle vela nd
.
Tiichmond
Atlanta
Chicago
St Louis
Minneapolis
Xjins&s Citv
Dallas
Ban Francisco

.

. . .

Total
Per cent

4.242
8 884 i
2,783
1,384
3 940
1,931
4, 803
2,834
3,803
1 554
2,246
3,113
39,497
41.0

. .

Acceptances

Municipal
warrants.

Over 90 days.
Banks.

Bills
discounted.

Acceptances
bought.

Bills
discounted.

Tritil

lotai.

...i

11.212 •
27 ,616 .
8 .372 !
10.421 1
4-7Q3 :
2 ,733
7,530
A 878
5,554
2.751
4.390
5,987 \

1,5^1
2, 790
I 029
'545
1,168
'447
1,690
2,195
3,530
'625
775
055

98 237
23.5

56,740
59.0

Municipal war- Total.
rants.

Bills
discounted.

Total.

warrants.

2,033
12,894
8,232
S,981
1,301
619
2,607
1,(562
731
1,783
1,327
3,114

5,28926.298
7,309
7,59$
4,447
1,983
4,868
3, 587
2,518
2,708
2,258
4,953
C3,817
15.6

15,250
21.8

oCiJ?£
i Municipal
s^ofTt
I warrants.
O' • j

Total.

11 858 ! 31,575
3! 702
'791
336
1,800
'324

13 35S
34.36G
4' 898
4 252
i 953
783
3,490

5

L530
634
775
1,374

9
419
54.683
78.2

Total,

|

Municipal

SI to 90 days.

1j o u g h t .

6,970
20,732
5,609
9,037
853
802
2.727
2, 044
1.751
1,197
2,144
2,874

Acceptances
bought.

69,938
17.0

5
0.0
Percentages.

!
Accept- MuniciAccept- 1 MuniciBills
ances pal war- Total.
ancos
pal war- Total.
disbought,
rants.
counted. bought. rants.

i

Boston
New York
Philadelphia

.

.

.

11
7

Hichmond .
Atlanta . . .
Chicago
St Louis . .
Minneapolis
Kansas CHy
"Dallas .o
San Francisco
Total
Per cent




. . .

. . . .

21
22
•434
32
37
336
379
171
1 443
95.8

10

io
46
73
4.2

ii
7
21
32
434 !
32 1
47 i
336 |
425 I
171 •
1,516
0.4

15 214
75,618
11,120
10,616
15,696
8,344
33 843
16,828
10.289
17 855
8,298
9,818
233,539
57.0

22,666
72,534
16,905
22,383
3,486
1,872
10,912
4,820
3,218
4,589
4,373
8,431
176,169
43.0

128
32

16
16
46
224
0.0

37,880
148,152
28.151
33^031
19,182
10,228
44,755
21,648
13.517
22 424
12, 717
18,249
409.932
100.0

—40.2
59.8
51.0
49.0
-60.3
-39.5
67.8
32.1
81.8
IS. 2
18.3
81.6
75.6
24.4
22.3
77.7
78.2 1 23.8
79.8
20.4
65.2
34.4
46.2
53.8
57.0

43.0

0.4
0.1
0.1

0.4
0.0

100
100
100
100
100
100
100
100
100
100
100
100
100

909

FEDERAL RESERVE BULLETIN.

NOVEMBER 1 , 1 9 1 7 .

Total investment operations, exclusive of purchases of United States certificates of indebtedness, of each Federal Reserve Bank
during the months of September, 1917 and 1916, and the nine months ending Sept. 28, 1917 and 1916.
Bills bought in open market.
Bills dis. counted for
mem bor
Banker's I Trade acbariKs.
Total.
acccptanccs.| ceptances.

Federal Reserve Barks.

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

?2(i,0i0,28fl $14,613,214 $2,020,4.06
547,245
• S101 543,993 61,887.505
105,812
5,950.470
; 18', 5)34,001
9,3341272
521.510
• 17,704,024
3.025', 707
. . . ' 50,122,193
1,533.023
..: 7)904,732
.1,92-4,933
3f»,(i3!i.417
322, CG 6
25,02ft,448
95.079
4) 347,03(3
9; 117
: 28,251,741
4,225.754
; 3,215,021
1,230; 740 I 1,688,993
0,4C7, (512

September, 1917
548,1G4,104
September: 191(5
14,308,800
9 months ending September, 1917.. 2,188,917,568
9 months ending September, 1016..i 114.387,500

!
!
I
i

104,162.500
35.874^00
505,044,513
219,792;400

516,633,620
! 62,434,810
! 6.050,282
! 9'855,782
8,025,707
1,533,923
1,924.933
'322,69(>
05,079
3,117
4,225.754
2,923.733
[

Municipal warrants.
City.

i

All
other.

State.

Total.

SI,540 I

311,546

10,210 I

10,210

4,883.966 j 109,040,466
11,756
1,211, COO ! 37', 086,500
4,867,200 j $114,900
21,525,601 626,570,114 14, M l , 751 !
2,040
10,090,300 229,781.700 ! 65,203,200 j 3,654,900

10,000
108,800
671,498
591,300

21,756
5,090,800
15,275,280
09,449,400

I

Total investment operations.

United States bonds and Treasury notes.
Federal Reserve Banks.

1-year
2 per cent, j 3 per cent 3£ per cent,! 4 per cent. Treasury
notes.

B oston
N e w Yorlr
Philadelphia

i
I
I

Cleveland
Richmond
Atlanta,
Chicago
St. Louis
Minneapolis
Kansas'City
Dallas.

'•
i
»...';.

|
I

I

Ban Francisco

i 20,404,600 i
I
750;

$19,300
10,200
29,600
9,000
192,150
20,404,600
750

130,700 j

130,700

....!

$19,300
10,200

|

29,600
9,000
192,150 ]

I

!.
j.
I.
!
j

j . . .

Total, September, 1917.
Total, September, 1916. $2,180,300
Total, 9 months ending September, 1917.. 14,047,200
Total, ft months end- !
ingSoptember 1916...! 37,479,250

i

Total.

;
=
; 3,642,820 i

:

$42,643,900
381'. 998,133
25', 000,483
27;590,006
53,150,900
9,641,351
57,965.950
25,349; 894
4,452,325
281260,858
9,440,775
12,527,045

SoDtembcr,
191(5.

$7,093, 400
11,391. 800
7157i; 500
4,745, 300
51412, 400
4, GS9, 500
5,793, 500
41280, 200
1,734, 200

$34,250
4,153,000

SepSeptember tember
1917.
1910.
P. ct.
0.3
50.3
3.7
4.1
7.8
1.4

8.0

3.7
.7
4.2
1.4
1.8

863i 000
2.149, (500
2,956,100

20,796,300 678,028,826
2,193,300 -«•-• "58," 079,500

J 20.796,300 I
1

87,
i
7,000
].....1

i
185,440 45,141,110 j

September.
~1917. '

p. a.

12.1
19.4
12.9
8.1
9.2
8.G
9.9
7.3
2.3
1.6
3.7
5.0

100.0

""i66.*o

$5,314,000 i 63,728,300 2,894,402,271
50,000

45,325,070

458,943, 670

........

United Slates securities held by each Federal Reserve Bank on Sept. 29, 1917, distributed by maturities.
United States bonds with circulation privilege.

United States securities without circulation privilege.

3 per cent 3 per cent
2 per cent 2 per cent I 3 per cent 4 per cent conversion
1-year
loan of
consols of Panamas i loan of
bonds of
Treasury
of 1933-38.1 1918.
1925.
1946-47.
notes.
Boston
New York
PhiladelDlua
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minnaapol is
Kansas City
Dallas
San Francisco
Total..

i
i
j
..I
!
J;

J

!
i
j
j

$750
50
6,400
915,300
640,600
1,862,500
100
323,050
7,155,850
2,450,900
2,428,750

..,......i
8529,000 $2,194,000
$50,000 i
.1! 1,255,500 3' 538,000
549,200 2,548,000
8100
424,800 2,865,000
467,200 I 2,651.560 $2,378,200
1,969,000
237,000
1,491,000
10,300
21.000
427,400 3,360,000
1,768,000
367', 300 2,581,000
1,153.300 1,444,000
1.080,000
114', 800 1,340,000
" 18," 280° I)138,180 " " 206," 250*
1,784,000
838.500
22.240
825,000
1,2331600 1.430,000
2811500
1^500,000

1 15,784,050 | 1,412,600

7,560,740

5,177,450 I 6,528,400

25,463,000

TotaL

580,000
1,517,100
632,500
2,029,600
9,200
220,100
14,749,000
2,350
500
7.500
2; 800
900 19,250,150

8492,000
5,531,000
658,000
243.000
8951000
4,293,000
787,000
349,000
749,000
426,000
887,000
2,393'000

S3.295,750
12', 891,650
4,387,800
11,055,760
3,525.300
6.676,000
25' 902.600
4,028;750
3', 948,040
11,059,090
6.285,800
6', 321,750

18,203,000 99,378,230

Total United States bonds with circulation privilege, $29,934,840. Total United.States securities without circulation privilege, $69,443,450.




910

FEDEBAL BESEBVE BULLETIN.

NOVKMBKIt L 1 9 1 7 .

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System, at close of business on Fridays,
Sept. 27 to Oct. 19, 1917.
RESOURCES.
[In thousands of dollars; i. c, 000 omitted.]
AtNew
Phila- Cleve- RichBoston.! York. delphia.
land. mond. lanta.
Gold coin a n d certificates in
vault:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Gold settlement fund:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Gold with foreign agencies:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Gold w i t h Federal Reserve
Agent:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Gold redemption fund;
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Legal-tender notes, silver, e t c :
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Total reserves:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Bills discounted—members:
Sept. 28
Oct. 5
Oct. 1 1 - 1 2 . . . .
Oct. 19
Bills bought in open market:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
United States Government
long-term securities:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
United States Government
short-term securities:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
Municipal warrants:
Sept, 28
Oct. 5
Oct. 11-12
Oct. 19
Due from other Federal Reserve
Banks—net:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
tfncollcctcd items:
Sept.28
Oct. 5
Oct. 11-12..
Oct. 19




6,199
6,154
6,072
6,382

263,632
299,057
305,176
236,268

18,736
19,045
18,272
18,956

26,831
25,242
22,239
23,571

6,256
6,244
6,323

17,436
19,605
17,159
17,779

69,191
56,552
24,122
109,601

36,586
35,771
36,985
27,347

40,119
44,404
50,478
35,248

26,578
24,466
25,919
26,420

3,675
3,675
3,675
3,675

18,112
18,112
18,112
18,112

3,675
3,675
3,675
3,675

4,725
4,725
4,725
4,725

1,837
1,837
1,837
1,837

1,575
1,575
1,575
1,575

7,350
7,350
7,350
7,350

25,623
27,594
29,960
33,008

212,300
201,486
200,551
206,957

40,418
43.020
44; 247
41.303

36,244
38,145
41,552
40,448

15,955
18,891
22,634
26,774

30,117
34,230
36,479
39,179

88,537
79,316
80,330
91,424

500
500
500
500

4,000
4,000
4,000
5,000

950
950
950
950

43
37
27
20

787
772
746
729

611
156
181
447

290
374

4,185
4,084
4,089
4; 107

39,681
39,408
39,601
40,080

1,104
922
789
716

316
285
309

127
153
144
180

364
379
344
359

1,029
1,140
1,090
1,478

76,451
80,304
79,344
84,280

606,916
618,615
591,562
616,018

101,469
103,383
104,918
92,947

108,278
112,838
119,330
104,334

51,540
52,363
57,603
62,270

40,921
45,140
4S.034
51,435

192,443
176,207
182,998
203,395

15,214
IS)519
13,086
10,721

75,619 11,120 10,616
103,789 10,875 10,916
142,494 9,318 10,348
127,647 10,099 12,932

25,032
24,846
23,961
25,211

!
i
j
;

72,534
81,316
80,501
81,977

16,905
16,915
17,462
14,^00

22,383
21,438
21,458
16,098

3,4S6
4,768
5,398
5,381

610
610
010
610

2,829
2,728
2,609
2,542

562
556
550
550

7,948
7,945
7,945
7,947

1,161
1,161
.1,295
1,295

2,686
2,686
2,686

5,569
26,069
6,074

3,206
3,205
3,155
•3,075 j

3,318
7,246
6,033
4,751

2,364
2,944
2,830
2,370

6,074

126 I

1.078
5,879
5,397

3,964

7,088

16,644
14,572
15,808
22,929

58,557
47,508
131,918
62.343

28.010
27^ 824
30,081
41,270

1,983

32
12 !
12 I
12 I
2,970 I
5, 782

40,854 33,337 17,442 I
37,392 3,681 18,203
35,661 4,607 18,584
35,907 4,618 19,128

2,055 54,383
2,646 50,719
3,383 58,271
3,493 66,862

15,696 ! 8,344
13,929 ' 9,584 39,102
12,517 8,738 36,190
11,074 9,545 36,566

22,666
24,104
24,816
24,289

1,872
2,181
2,095
1,976

5,784
7,294
7,2S4
8,945

San
Francisco.

Minnc- Kansas
apolis. j City.

19,490
21,793
20,037
21,956

Total.

8,011
7,611
6,830
6,792

12,510
12,557
12,615
12,412

16,757
21,617
22,376
23,620

445,597
481,649
482,716
419,195

8,959 I 38,573
6,403 34,498
10,043 ! 3S,631
1,908 34,027

4,845
10,211
12,717
8,041

24,122
27,719
24,033
17,117

342,337
334,787
321,778
369,799

2,100
2,100
2,100
2,100

2,625
2,625
2,625

1,838
1,838
1.838
].;838

2,888
2,888
2,888
2,888

52.500
52;500
52.500
52)500

17,270 21,965
16,830 24,960
•21,298 28,818
27,086 33,691

20,748
23,517
23,484
27,153

22,471
25,021
26,351
24,319

26,579
27,101
25,030
27,485

558,227
560,111
580,734
618,827

951
1,053

518
518
517
517

694
714
728
833

15
30
50
26

9,809
9,465
9,717
11,218

1,221
897
818
697

347
320
314
317

43
39
45
41

574
464
454
430

112
116
246

49,089
48,203
48,113
48,973

43,991
45,<73
49,631
57,228

51,641
52,912
60,810
58,197

70,518
68,808
72,132
71,155

42,932
50,805
54,703
47,873

70,459
79,467
74,493
71,382

1,457,559
1,4K6,715
1,495,558
1,520,512

16,827 10,289
17,658 8,415
16,834 6,828
18,012 8,728

17,855
18,704
18,394
20,270

8,298
7,007
7,137
9,017

9,818
11,753
11,280
12,004

233,539
265,251
293,164
286,615

2,100
2,100
2,100
2,100

573
572
771 !

10,912
10,087
8,818
7,637

4,820
4,499
4,1S6
2,842

3,218
3,145
2,807
2,257

3,718
3,307
1,738

4,373
6,438
8,151
7.760

8,431
7,553
6,776
5,356

176,169
186,162
185,775
171,611

21,756
21,507
21,507
21,257

2,236
2,233
2,233
2,233

1,859
1,859
1,859
1,860

8,849
8,849
8,859

3,969
3,969
3,968

2,462
3,417
2,559
3,074

55,129
55,727
54,878
55,088

1,793
2,559
1,949
l". 833

2,089
2)518
2,244
2.240

2,210
2,430
2.320
2,358

2,317
2,302
2,220
2,580

3,893
5.293
4', 948
4,74.1

39,876
73.632
48,517
47,255

4,647
9,0S6
6,774
5,602 j

10
11
23
155
2,139 2,697
1,883 10,608
2.392 10; 641

*7J.27'
17,215 13,338 i 10,725 29.952
14.395 15,448 ' 13,083 34,161
14; 833 1(5,443 | 13,911 35,407
19,255 ' 22,940 i 21,45944.953

46
46
46
46

10
10
10
10
1,627
1,311
7,124
5,409

3,092
3,820
1,164
2,388

12,529 8,
15,561 9,167
17,270 J 8,308
I 19.779 13,732

1,646
3,126
3,429
8,013
12,855
14,203
14,338
19,174

224
79
101
233
1,892
1,392
2.428 i
4i752 ;

'132,540

13,222 14,466 '
12,780 11,721 ;
12.553 9,735 •
22; 021 22,4-! 7 :

234.381
2 5(>; 123
321,205
332,302

2,200
499

Difference between net amounts due from and net amounts due to other Federal Reserve Banks.

n 5, 020
*2.570

G 17; 147

911

FEDKBAL BESEBVE BULLETIN.

N O V E M B E R A, 1 9 1 7 .

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve System at dose of business on
Sept 27 to Oct. 19, 1W7—Continued.
RESOURCES—Continued.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

Five per cent redemption fund
against Federal Reserve Bank
notes:
Sept.28
Oct 5
Oct. 11-12
Oct. 19
All other resources:
Sept. 28
Oct 5
Oct. 11-12
Oct. 19
Total resources:
Sept. 28
134,271
Oct. 5
136,873
Oct. 11-12
142,229
150,912
Oct 19

New
York.

Phila- Cleve- Richdelphia, land. mond.

Atlanta.

Chicago.

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

400
400
400

79,149
82,069
84,478
89,963

118,902
120,238
123,169
131,967

141
90
93
78
77,598
84,036
88,972
93,443

63
128
209
68
111,484
120,724
112,428
123,824

2,203,673
2,301,633
2,417,845
2,447,841

3,370
3,372
3,372
3,372

2,783
2,783
2,783
2,783

3,987
4,028
4,028
4.032

59,379
61,027
61,104
61,847
71,289
86,285
74,167
76,365

. . . I

161,398
164,741
166,094
169,339

172,760 87,585
180,572 90,613
179,959 96,086
172,458 105,330

500
500
500
500

100
100
100
100

•100

822,024
880,025
955,158
900,565

Total.

SO
66
56
55

67
194
433

103
223
448
551

70,763
80,135
83,426
94,463

296,250 83,823
300,758 89,761
302,335 99,421
319,410 107.767

387
574
1,000
1,185

LIABILITIES.
Capital paid in:
Sept. 28
,
Oct. 5
Oct. 11-12
„
Oct. 19
Government deposits:
Sept. 28
Oct. 5
Oct. 11-12
Oct.19
Due to members—reserve account:
Oct. 5..
Oct. 11-12
Oct. 19
Due to nonmernber b a n k s clearing account:
Sept.28
Oct. 5
Oct.11-12..
Oct. 19
Collection items:
Sept. 28
Oct.5
Oct. 11-12
Oct. 19
Due to other Federal Reserve
Banks—net:
Sept. 28
Oct.5
Oct. 11-12
Oct. 19
Fcdaral Reserve notes in actual
circulation:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
federal Reserve Bank notes in
circulation, net liability:
Sept. 28
."
Oct.5
Oct. 11-12
Oct. 19
All other liabilities, including
foreign Government credits:
Sept.28
Oct. 5
Oct. 11-12
Oct. 19
Total liabilities:
Soot. 28....
Get. 5
Oct. 11-12...
Oct. 19




3,478
3,478
3,477
3,477

2,503
2,596
2,596
2,595

8,006
8,012
8,048
8,048

3,305
3,305

2,567
2,569
2,576
2,578

2,072
'569
309
1,056

635
3,200
1,513
4,275

15,764
13,169
8,148
9,639

647
3,260
2,063
10,755

3,078
2,522
2'. 296
3; 891

1,240
2,953
1,947
7,464

2,546
4,536
4,098
5,471

7,780
7,149
4,198
12,149

71.506 97,270 39,144 27,326
75; 719 98,840 38,479 29,755
75,328 101,046 40,107 29,687
71,188
39,926 29,647

156,043
157,199
157,522
160,591

43,300
43,369
44,724
43,442

! 39,079
39,478
"* —
40,706
40,523

69,782
66,441
68,156
67,820

33,319
33,955
35,390
37,554

60.583
68; 309
61.660
60;S78

1,1
1,148', 887
1,265,309
1,230,557

300
212
136
75

4,507
4,493
6,033
5,133

2,651
4,446

67,433
94,029
51,377
42,262

5,463
5,463
5,463
5,467

12,224
13,724
13,723
14.456

5,270
5,273
5,273
5,274

2.138
2,403
2,567
5,983

27,578
32,840
42,480

2,262
4,550
593
1,622

75,495
76,245
75,893
71,350

424,103
421,098
535,090
518,042

6,460
6,460
6,460

5,549
9,134
3,955

I
59,381
84,268
40,796
33,164
12,283
12,081
13,785
21,433
1,477

36,915
40,183
43,969

37,341
33,539
35,198
43.597

550
575
407
210
25,664 13,327 11,340
25,477 11,577 12.958
26,139 12,470 13;952
32,663 15,790 15,494

3,198 i 5,375
27,017 !
10,549 I 1,948

256,399 i
265', 677 ;
274,620 ,
279.523 ;

51,027
53,397
56,415
58,184

7,481 17,080
8,282 19,722
19,861
11,432 23:511

37 j
17 I
16 i
11
10,089
10,793
17,793
13,650

3,529 8,519
3,983 9,858
< 445 9,840
4,587 11,715

4,141
4,885
5,019
6,192

6,730
157,524
6,128
159,283
6,433
173; 825
9,984 I 210,048

2,284
514

49,490
53,865
54,978
55,872

456 !
4,095 I 2,650
29,157
33,102
37,636
41.124

2,443
908

3,945

i 32,518 94.833
I 36,090 98', 035
j 40,604 102,621
! 43.789108.451

26,471
29,053
31,520
36,604

30,889 j 27,931 34,809 29,773
33,499 ! 29,474 37,877 30,664
34,434 I 31,708 39,239 32,141
38,381 33,444 40,535 33,115
8,000
8,000
",000

500
498
552
486
134,271
136,873
142'. 229
1SO)912

1,800 ;
1,862
2.702 :i
2.114
822.024
880.025
955,lo8
900,565

294
325
398
408

161,398
164,741
106,094
.199,339

115
121
129
142

110 i.
132 L
149 !.
158 !.

17
128
102
92

10

172,760 87,585 i 70,763 296,250 83.823
180,572 90,013 ! 80,135 300,758 89'. 761
179,959 96;086 j 83,426 302,835 i 99;421
172,456 105,330 i 94,463 319.410 1107,767

79,149
82,0(59
84,478
89,983

700,212
740,916
779,885
815,210

8,000

8,000
8,000
8,000
S..O00

60
140
146
152

2,906
3,206
4,178
3,552

118,902
120,238
123.169
131.: 067

77,598
84,036
88,972
93,443

111,484
120,724
112,428
123,824

2". 203,673
2i301,633
2'. 417,845
2'. 447,841

912

NOVEMBER 1,191T.

7EDEBAL BESEBVE BULLETIN.

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays,. Sept. 88 to Oct. 19. 2917.
[In thousands of dollars: i. e. ; 000 omitted.]

Boston.

Federal Reserve notes received
from agent—net:
Sept. 28
40,674
Oct. 5
42.644
Oct. 11-12
46,810
Oct. 19
49,278
Federal Reserve notes held by
bank:
Sept, 28
3,759
2,461 j
Oct. 5
2,841 !
Oct. 11-12
3,090 :
Oct. 19
Federal Reserve notes in actual
circulation:
36,915
Sept. 28
40,183
Oct.5
43,969
Oct. 11-12
46,188
Oct. 19
Gold deposited with or to credit
of Federal Reserve agent:
25,623
Sept. 28
Oct. 5
27 « "
29,960
Oct. 11-12
33,008
Oct. 19
Paper delivered to Federal Reserve agent:
15,069
Sept. 28
15,069
Oct. 5
16.869
Oct. 11-12
Oct. 19




Now
York.

Minne- Kansas
Louis. apolis. City. Dallas.

Philadelphia.

San
Francisco.

I
Total.

i
282,300 ! 53,318
289,486 j 55,920
298.551 i 60,347
304; 957 61,903
25,901
23,809
23,931
25,434

!
|
!
I

2,291
2,523
3,932
3,719

52,244
56,145
57,552
58,448
2,754
2,280
2,574
2,576

2,714
2,235
1,236
1,153

757,070
797,830
837,425
875,278

6,710
6.341
51593
s; 074

56,864
56,714
57,540
00,068

29,773
30.664
32,141
33,115

700,213
740,916
779,885
815,210

20.748
23'. 517
23.484
2?;153

22,471 26,579
25,021 27,101
26,351 25.030
24,319 27; 485

558,227
560.111
580,734
618,827

9,692
11,028
12,158
9,536

12,647
13,445
15,288
16,777

10,137
14,737
14,146
12,955

204,467
248,912
263,164
270.185

32,761
34,756
35,614
39.487

1,846
2,324
2,325
8', 233 I 3,729

1,872
1,257
1.180
i; 106

2.231
4;343
3,773
3,130

30,889
33,499
34 434
38,381

27,931
29,474
31,708
33,444

17.270 21,965
16', 830 24,960
21,298 28,818
27,086
11,054
14,562
12,552
13,256

256,399
265,677
274,620
279; 523

51,027 49,490 29,157 i 32,518 I 94,833
53,397 53,865 33,102 36,090 98,035
56,415 54,978 37,636 I 40,604 1102,621
58,184 55,872 41,124 43,789 108,451

212,300
201.486
200;55]
206,957

40,418
43,020
44,247
41,303

36,244 15,955
38,145 18,891
41,552 22,634
40,448 26,774

70,822
91,035
9S,150
107,194

12,906
12,906
16,143
20,643

16,012 19,182
18,014 18,697
16,006 17,915
18,008 16,455

30,117
34,230
36,479
39,179

30,162 35,021 36,48"
33,817 38,327 37,005
35,481 39,988 37,734
38.574 40.958 39,189

28,317
31,377
33,845
40,333

88,537
79,316
80,330
91,424

4,329 11,178
4,325 25,776
6,525 30,196
7,041 25,703

26,471
29,053
31,520
36,604

11,139
9,318
7,216
6,228

I 212
S 450
! 729
i 423
!
j
I
I

34.809
37', 877
39,239
40,535

918

FEDERAL RESERVE BULLETIN.

.NOVEMBER 1,1017.

Federal Reserve note account of each Federal Reserve Agent at dose of business on Fridays, Sept. (i8 to Oct. 19, 1917.
[In thousands of dollars; i. e., 000 omitted.]

FEDERAL SESEBVE NOTES,

I'hiladelphia.

Cleveland.

Richmond.

Atlanta.

492,960
504,960
519,960
526,190

74,500
81)020
81 020
92* 440

71 000
73 000
73.000
81 000

47,600
49.600
54:600
59i700

49,980 133,480 38,900 46,640
52,980 139,120 40.300 46,640
55,980 142', 240 43!880 ! 50,640
58,980 1148,960 51.440 I 53,280

! 98,340
i 102.054
i 102.389
j 105,683

12,382
.12,480
13,053
13.997

7,316
7 415
7 508
7 312

13,409
13'. 483
13', 748
13;943

j
i
j
j

394,620
402,006
417.571
420)477

62.118
68! 540
6?;987
78.443

15,400
12,600
14,600
11.600

113,420
119.020
115!520

12,820 I 9,4-10
, 0

40,674
42,644
46,810
4.9,278

282,300
289,486
298,551
304,957

53, 318
5o!920
60, 347
61. 903

Chicago.

Total.

]

Received from Comptroller:
Sept. 28..
Oct. 5 . . . . . .
Oct. 11-12..
Oct. 19
Returned to Comptroller!

69,680 :
69,680 •
75)880 i
| 75,880 i

49,720
51,720
51,720
56,720

54,600
57,060
60,020
60,020

41,260
41,860
42,660
44,'160

1.170,320
1)207.940
1,251)580
1,309,040

7,949
7,954
8,086
8,223

9,678
9,823
10,059
10.366

10,834
10,913
11,122
1.1.252

4.777
4)8o5
4,926
5,271

197,969
204.280
206)695
213,342

I 38,691
! 38,686
i 42,544
! 45.057

40,042
41,897
41,661
46,354

43,766
46,147

36,483
37,005
48,898 37,734
•48,768 39,189

972,351
1,003,660
1,044,885
1.095,698

3,610
1,510
2,570
3,650

5,030
3,930
6,930
5,570

8,080
6,180
9.780

8,745
7,820
8,930
7.810

215,275
206,030
207,460
220.420

28,317
31,377
42,491 110,160 33,845
45; 190 jl.16,684 40,333

32,761
34,756
35,614
39.487

30s162
33,817
35,481
36,574

35,021
38,327
39.968
40'. 958

2,953 13,102
2,953 13,102
2,513 13,102
2,513 13,102

2,370
2,370
2,370
2,270

14,480
14.480
14)480
14 ; 480

957
517
1,126
1,513

1,118
1,587
1)554
1.523

1,817
2,017
2,197
2.165

1,313
1,235
1,164
2,044

28,028
28,657
30,430
31,604

6,174
8,524
9,674
7,674

25,2fi6
25,866
23,866
25,443

253,554
261,543
276,083
304,872

12,550 9,904
13,306 I 9,904
13,617 12,704
16,639 11,704

198.849
237)519
256,691
256,451

35,021
38,327

757,076
797,630
837,425
875,278

!

Sept. 28

Oct. 5
Oct. 11-12
Oct. 19
Chargeable to Federal Reserve
Agent:
Sept. 2 8 . . . . . . .
Oct. 5
Oct. 11-12..
....
Oct. 19
Da hands of Federal Reserve
Agent:
Sept. 2 8 . . . . . . . . . . . . . .
Oct. 5
Oct. 11-12
Oct. 19
Issued to Federal Reserve
Bank, less amount returned
to Federal Reserve Agent for
redemption:
Sept. 28
Oct. 5
Oct. 11-12
Oct. 19
-Collateral held as security for
outstanding notes:
Gold coin and certificates
on hand—
Sept. 2 8 . . .
Oct. 5
Oct. 11-12.
Oct. 19..
In gold redemption f u n d Sept. 28

' 13,606
14,436
14,470
15,002

Oct. 5
Oct. 11-12.
Oct. 19

1

8,622 I 4,083
9,010 ! 4,444
9,379 j 4,500
9,6S0 i 4,856

7.413
7', 445
7.457

j
56,074
55,244
61,410
60,878

!
j
!

j
i
21,660 |
23,659
25,629
28,209
1,963

63,684 34,131
05,585 36,117
65,492 40,852
73.388 45,757

41,358
43,970
46,601
49.300

]129,397
134.676
137!740

2.320
'780
l s 980
3,480

6,930
5,930
4.110
4'. 110

29,900
29,900
27,580
27,420

7.620 7,940
16'. 540 14.94.0

!

1,935
2,331
2,799

With Federal Reserve
BoardSept. 2 8 . . . . . . . .
Oct.o
Oct. 11-12
Oct. 19
Commercial and bank paper r e q u i r e d , m i n i mum *—
Sept. 28
Oct. 5
Oct. 11-12...
Oct. 1 9 . . . . . . . . .
...
TotalSept. 28
Oct.5
Oct. 11-12
Oct. 19




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

£*£

!Boston..:

52,244
56,145
.57,552
'58,4.48

!
!
!
I

31,871
35,337
38,872
42,277

31,927
32,887
36.415
144.1.04 43!9S3

34,428 99,497
38,040 104,776

36,488
37,005
37,734
39,3.89

757,076
797,630
837,425
875.27S

;

I
200,884
190,384
189,784
196,482

4,220 ! 13,517
4,220 15,284
4,220 18,544
4.220 17,496

11,416 I 2,819
11,102 j 2,721
10,767
3,228
10,475
3,144 I

2,000
2,000
2,000
2;000

33,379
36,079
36,799
33,939

2,727 j
2.861 !
Si 008 I
2,952 I

3,459
3,459
3,579
3,579

834
774

1,408
2,301
2,930
2.630

172
132
75
496

15,000
18,000
21,800
26,000

25,250
28,470
29,970
32.970

88,365
79,184
80,254
90.928

13,360 7,500 17,260
13,360 10,500 19,560
17,660 14,500 19,560
23,060 ! 19,509 23,360

4.311

10,960
25,460
29,831
25,260

11,047
14.547

9,414
10,300
11,997
9,421

31,871 34.428 99,497 28,317
58', 145 35,337 38,040 104,776 31,377
57,552 38,872 42,491 110,160 33,845
58,448 42,277 45,190 116,684 40,333

32,761 30,162
34,756 33,817

I 20,000
I 20,000
i 20.000
! 20,000

955

1.368
1,358
1,216
1,089

276,645
269,911
274,221
282,351

\

15,051
15,050
16,850
16.270

70.000
88)000
98,000
98,000

12,900
12,900
16,100
20,600

18,000
18,000
16,000
18,000

40,674
42,644
46,810
49,278

282,300
289,486
298,551
304,957

53,318
55,920
60.347
61.903

52.244

15,916
16,446
16,238
15,503

3!sio
6,012
6,011

10.796
9,796
12', 546 16,796
13,247 5,796

35;614
39,487

35,481
36,574

For actual amounts see item ** Paper delivered, to Federal Reserve .Agent," on p, 912.

38,48.3
37'. 005
37:734
40,958 39,189

914

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1917.

Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during
the period Jan. 1 to Sept. 30, 1917.
New York.

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

Returned.

81,016,650 §5, 72,300
197,000
339,000
21,415
213,400
23,000
172,600
35,450
131,600
152,500
.115,000
24,350 I
51,700
4,000 I
84,000
5,565 |
74,000
8,495 i
66,700
17,315 '
93,600

Philadelphia.

Received.

Returned.

Received.

85,731,300

31,654,650

$339,000
3,375,950

6.675,900

'796,300
661,600
648,450
2,434,000
568,300
132,500
83,800
312,870
250,740

375,950
873,050
427,350
217,600
718; 150
421,750
471,800
627,900 I
682,100 I
706,100

130,995
225,000
78, 750
230,500
47,500
5.000
8,000
21,700 j
17,360 !

Cleveland.

Returned. Received. Returned.
8197,000
7,059,900

443,000
517,000
206,000
207,000
71,000
76,000
88,000
73,000
106,000

8213,400
837,745
395,000

819,915
786,300
125,495

68,150
64,900
696,900
117,450
19,500
17,350
21,390
25,825

62,600
45,180
237,040
81,520
54,030
43,240
27,910
23,840

Total.

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

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




$172,600
2,465,655
517,005
62,600

826,000
655,600
237,750
72.900

.,500
15.090
27,880
18.060

215,850
26,060
24,500
14.890
22; 990
28,500
9,700

8131,600
2,215,500
206,000

543.000
617,995
1.4,500
52,200
425,330
34,675

$36,450
665,250
80,550
70,400
635,300

80,050
349,650 I
56,400
170,650
747,500

Received.

Returned.

83,520
24,500
336,250
783,000

128,600
629,050
55,500
139,950
85,800
650,800
535,750

30,500
162,400
286,270
38,405

236,150
1.837,050
1,453,750
101,600

819,650 $7,071,700
250,740 15,060,000
17,810 8,598,905
1,517,825
25,375
18,060 1,330,990
2,851,445
34,675
112,900 10,792,400
38,405 5,517,145
549,000
184,795
838,855
259,935
170.630 1,765,500
1,099,140

$2,139,825
18,749,810
4,495,755
2,488,065
4,211,830
4,566,735
2,260,035
2,370,695
3,894,965
5,772,635
4,258,490
2,912,000

1,132,975 I 56,992,905

58,120,840

8115.000
697,150
194,000
228,040
26,000
76.200

8138,500
2,434,000
230,500
594,500
240,000
569,000

535,750
64,000
112,150
48,035
104,400

853,000
2,571,000
2,025,500
' 734,000
574,000

Received. 1 Returned.

884,000
471,800
76,000
54,030
14,890
56,400 !
2.571,000 !
'236,150 !

85,000
132,500
•,000
21,000
7,500
14,500
64,000
30,500

874,000
584,550
88,000
43,240
22,990
156,050
2,039,500
1,837,050
103,500

85,565
83,800
8,500
17,350
15,090
52, 200
115.550
162; 400
100,150

100,150 !
45,750 !
184,795 i

103,500
29,500
138,500

S66,700
692,200
73.000
27,910
28,500
718,950
660,000
1,371,850
29,500
244,900

503,870
236,935

244,900
41,250

170,630

56,410

3,894,965 |

551,500

5,689,685

846,755

4,084,140

1,752,400

S8,495
280,370
19,700
17,140
30,530

429,330
48,535
286,270
45,750
519,870

1,693,550
106,000
26,095
8,950
453,000
85.200
138,500
37,250
63,910
2,753,750

HOVEMBKa 1, 1917.

915

FEDfiBAL RESEBVB B U L L E T I N .

EARNINGS ON INVESTMENTS OF FEDERAL SESEBVE BANKS.
Average amounts of earning assets held by each Federal Reserve Ba/nJc during September, 1917, earnings from each class
of earning assets, and annual rates of earnings on the basis of September, 1917, returns.
i Average "balances for the month of the several classes of earning assets.
:
.Bills
Rills bought
discounted. : in open
members.
market.

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

$16. 886,60H • S17, S93,546
42,309.340 . 61, 206,1-19
019,258
12,658;277 ;
095,345
970,496
713.551 :
760,584
696', 871
709,045
777.463 •
069,907
844.282
13'445', 375 :
228,900
12; 422,500 .
149.998
14, 265,784 .
379'. 861
7;892'.81ri
677!
433
i
064,789
3,

S3, 011,129 :
11,721,112 !
3, 666,040 :
11, 015.280 •

182,439,407 i 167,402.815

88,697,284 \

1?

£

Total

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




Bills dis- I ., ®}}lL.

351,619 i
112,758 I
38,178
25,780
50,515
21,777
70,887
40,847
45,763
48,084
28.572
30,925

$48,663
173;572
46,982
63,765
7,233

565,703

455,511 I

4:537
37,190
12,462
8,414
19,887
8,182
24,594

i
i
i
i
j
!
'
!

8,094 I
19,965 i
12,844 ;
14,093 !
199,442 I

Total.

•S37, 89i.328
§125,938
3;>,556

o,293;967 ;
6. 380.467 I
!
19; 303;426 ]
3,844,142
3,649,700 !
10, 633,090 :
6, 048,731 !
6, 126,200 i

Bills dis- I - J J J s
counted, | ^ o u ' ^
members. m a r } , e r

$7,607
21,806
9.226
26; 106
7,058
16,441
47,663
8,539

Mmucipa]
warrants.

7,'2-iI"
1,400
' "46," 265'
213,400

115, 238;601
34. •167,513
719,677
774.102
793;624
150,796
133,799
302,500
048,872
365;672
888,422
438.752,906

Calculated annual rates of earning from-

Earnings from—
Banks.

United
States
securities.

55107,889
308,134
94,805
$419
92
115,743
64:836
42,784
29
155,740
61,848
(52,275
87,938
49,752
154
89,612
698 |l, 221,354 I

Per cent.
3.85
3.24
3.67
3.61
3.91
4.09
3.79
3.70
4.48
1.10
4.40
4.35
3.79

United Municipal
States
securities. warrants.

Per cent. \ Per
3.41
3.45 !
!
3.17 i
I
3. 23 :
|
3.20 '•
3.34 i
3.22 i
3.12 !
3.17 1'
3.38 :
2.96 :
3.30 i
3.35 1

cent.
3.18
2.26
3.06
2.88
2.60
3.24
3.00
2.65
2.70
2.28
2.59
2.80
2.75

Total.

Per cent. Per cent.
3.58
3.26
3.34
4.05
3.22
3.44
3.62
5.07
3.64
3.37
3.40
3.93
3.81
3.31
3.49
i'72*
3.55
3.98

3.41

916

FEDEEAL BESEBVB BULLETIN.

NOVEMBER 1,1917.

GOLD IMPORTS AND EXPORTS.
Gold imports and exports into and from the United Slates.
[In thousands oi" dollars; i. e., 000 omitted.]
Week ending—
S e p t . 21,
1917.

Sept. 28,
1917.

Oct. 5,
1917.

Oct. 12,
1917.

Total
since
Jan. 1,
1917.

Total corresponding
period dur«
ing 1916.

IMPORTS.

O**e and bass bullion
United Stated mint or assay office bars . .
Unllion refined .=
United States com
Foreign coin
Totel

240

242

716

236

671
25

413
12
638

409
1
1

382
9

12,765
114
387,074
53.300
90i 827

10 168
3.451
268 0(53
3 1U
105, 214

936

1,303

1,187

627

545,080

390,010

20

179
48. 593
35,104
2(35,429

237
11.994
6 ?62
56,224

EXPORTS.

Domestic:
Or*5 and bp-se bullion
United Stat es mint or assay office bars
Bullion, refir<ed
Coin

,

Total

957 ;
6,026

564

1.491
2,834

10,087

0, 983

787

4,345

347,305

74,717

33

194

153

31
6,310

1.452
19:792

Foreign:
BulHo", refined
Coin
Total

._

—

___—
10.087

'T'otal e^Dorts

23
200

2
2,410
7,675

33

194

153

6,341

21,244

7,016

981

4,498

353,646

95,961

Excess of gold imports over exports since Jan. 1, 1917, $191,434.
Excess ©I gold imports over exports since Aug. 1,1914,31,060,196.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank in effect Oct. 29, 1917.
Maturities.
Discounts.

Within
15 days,
including
member
banks'
collateral
notes.

Trade acceptances

' I Com-I modity
[paper maj
Secured by Agriculturing
1
U. S. certifitural
within 90
cates of in- and liveI 16 to 60
61 to 90
To 60 i 61 to 90
days.
or!
j days,
d
oj stock
days, debtedness
days, in- j days, inI inclusive. inclusive. Liberty Loanj paper
clusive, i elusive.
j
ibonds, With-! over 90
I
in 90 days.
days.

Boston
New Y o r k i . . . .
Philadelphia..
Cleveland
Richmond....
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.

?

I

1
Hate of 2 to 4 per cent on member banks' 1-day collateral notes in connection with the loan operations of the Government.
9 3 per cent for member banks' collateral notes if secured by United States bonds, notes, or certificates of indebtedness.
• Rate of 3£ per Gent for paper maturing within 60 days, and 4 per cent for paper maturing after 60, but within 90 days.

NOTE.—-Rate for acceptances purchased in open market, 2* to 4 per cent, except for San Francisco, which has s rate of from 2£ to 4& per cant;,..




INDEX.
Acceptances:
Page. i Informal rulings of the Board—Continued.
Renewal of short-term paper... „
879
Banks authorized to accept up to 100 per cent,. 839
A dvertisements of clearing members
879
Distribution of. by classes, maturities, etc
908
Purchase of United States 2 per cent bonds— 879
Business conditions throughout the Federal Reserve
838
districts
883-899 Insurance companies, enemy, licensing of
Charters issued to national banks during month
864 Law department:
Charts:
Bills payable with exchange and collection
Movement of price of silver..
844,845
charges
...
....
880
Amount and distribution of Treasury certifiTrust receipts as actual security for acceptance
cates of indebtedness
„
846
transactions
881
Movement of reserves, deposits, and Federal
Federal Farm Loan Bank deposits with Federal
Reserve circulation
848,849
Reserve Banks
881
Commercial failures reported_.
864 liberty bonds, second issue of
829
Deposits and Federal Reserve circulation of Federal
National-bank notes of small denominations, text
Reserve Banks during 1917
846 850
of act authorizing issue of
837
Discount operations of Federal Reserve Banks... 900-909 National banks:
Discount rates in effect
.................
916
Charters issued to, during month
864
Earnings on investments of Federal Reserve Banks. 915
Fiduciary powers granted to
839
Executive order prescribing regulations for carryPresident of the United States, statement of, regarding out provisions of the trading-with-the-enemy
ing membership of State banks
....
827
act
.....
860-863 Reserves, deposits, and Federal Reserve circulaExport license list
864-868
tion, movement of, during 1917.
846-850
Federal Reserve agents' fund, transactions under... 841 ! Resources and liabilities of Federal Reserve Banks.. 910
Federal Reserve Banks:
State banks:
Earnings on investments of
915
Admitted to system during October
S34
Resources and liabilities of
910
Applications for membership, list of
,.. 834
Federal Reserve clearing system, operation of
841
Statement of President regarding membership
Federal Reserve notes:
\
in system
827
Accounts of Federal Reserve Banks and agents.T. 912 j
Statements issued by new members which have
Interdistrict movement of, during six-month
joined the system... „
, „ . . „ . . 834-837
period
„,
914 Silver, movement of price of
842
Fiduciary powers granted to national banks.
839 Trading-with-the-enemy act, text of
851-860
Gold imports and exports
916
Executive order prescribing regulations for
Gold settlement fund, transactions under
840 |
carrying out provisions of
860-863
Informal rulings of the Board:
| Treasury certificates of indebtedness:
Drafts drawn for the purpose of financing sale of
Amounts and distribution of? to date
846
goods to allied purchasing commissions...... 878
Issue of, during October
„,.. 838
Substantial competition within meaning of the
War-revenue act, reprint of portions of
868-877
Clayton Act
878 War Trade Board, export license list issued b y . . . 864-868
Limitations under section 5200, R, S
879




o