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FEDERAL RESERVE
BULLETIN




ISSUED BY THE

FEDERAL RESERVE BOARD
AT WASHINGTON

NOVEMBER, 1918

WASHINGTON
GOVERNMENT FEINTING OFFICE
1918

FEDERAL RESERVE BOARD.
EX OFPICIO MEMBERS.
WILLIAM G. MCADOO,

Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,

W. P. G. HARDING, Governor.
ALBERT STRAUSS, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.

Comptroller of the Currency.

J. A. BRODERICK, Secretary.

M. C. ELLIOTT, Counsel.

L. C. ADELSON,

H. PARKER WILLIS,

W. T. CHAPMAN,

^Assistant Secretaries.

W. M. IMLAY, Fiscal Agent.
M. JACOBSON, Statistician.




Director, Division of Analysis and Research
F. I. KENT,

Director, Division of Foreign Exchange.




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 ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 or 1916 are
available. Bound copies of the Bulletin for 1917 may be had at
$5 per copy.
HI

TABLE OF CONTENTS.
Review of the month
Branch bank organized at Little Rock
War debts of principal belligerent countries
Statement by War Trade Board relative to curtailment of less essential productive activities
Examinations of State bank members
Foreign banking operations of the First National Bank of Boston
Quarterly report of the War Finance Corporation
Study prepared by R. B. Spear, Assistant Federal Reserve Agent at Boston, on State bank membership in New
England
Philippine National Bank branches and agencies
Changes in reserve requirements in reserve and central reserve cities of New York
Press statement in connection with applications of national banks to exercise trust powers under recent amendment to act
Study on "Economic reconstruction—Analysis of main tendencies in the principal belligerent countries of
Europe," by Department of Commerce
Suggestions by Food Administrator as to guaranteed price of wheat
New rules for obtaining export licenses, issued by War Trade Board
New priorities ruling directed to agricultural-implement industry by Priorities Division of War Trade Board
Swedish prices and capital problems
List of directors of Federal Reserve Banks whose terms expire in December, 1918
Payment by Federal Reserve Banks of expenses incident to transfers of currency to and from Federal Reserve
Banks
Condition of national banks as of August 31, 1918
The warehouse act and situation as to cotton warehouse loans, as stated by R. L. Nixon, of the Department of
Agriculture
State banks and trust companies admitted to the system during the month
Commercial failures reported
Charters issued to national banks
Banks granted authority to accept up to 100 per cent of capital and surplus
Fiduciary powers granted to national banks
Index of wholesale prices
Reports of total bank transactions
Discount and interest rates prevailing in various cities
Holdings by member banks of United States war securities
Acceptance liabilities of national banks and State institutions
Lost and recovered Liberty bonds
Informal rulings of the Board
Informal rulings of the Division of Foreign Exchange
Law department
Business conditions throughout the Federal Reserve districts
Discount operations of the Federal Reserve Banks
'Subscriptions to the seven issues of certificates of indebtedness preceding the fourth Liberty loan
Resources and liabilities of Federal Reserve Banks
Federal Reserve note account of Federal Reserve Banks and agents
Member bank condition statement
Imports and exports of gold and silver
Estimated stock of money in the United States
Discount rates in effect
'Operation of the Federal Reserve clearing system
Foreign exchange rates




IV

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FEDERAL RESERVE BULLETIN
VOL.

NOVEMBER 1, 1918.

4

REVIEW OF THE MONTH.
The fourth Liberty loan campaign, which
closed on October 19, has reFourth Liberty
-, .
.,
~fi « n r k
1x -, .
K0aiu
suited in placing tne $6,000,000,000 of bonds offered by
the Secretary of the Treasury, with an oversubscription of $866,416,300, A statement
issued by the Treasury Department immediately upon completing the compilation of the
figures, shows the following results by Federal
Reserve districts:
District.

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

Quota.

Subscription.

i Per cent
of subscription
to quota.

$500,000,000
280.000,000
500,000,000
600.000,000
210.000.000
200.000,000
192,000,000
126,000,000
1,800,000.000
870,000,000
200.000,000
402,000,000

$632,221,850
345,000,000
598,500,000
696,536,000
239,616;350
295,117,900
215,053,250
140,744,600
2,000,000,000
959,529,250
284,058,350
426,000,000
32,538,750

126.14
123.22
119.68
116.09
114.00
113.50
112.32
111.69
111.11
110.29
109.59
105.97

| G. 000,000,000

6,866,416.. 300 I

According to the statement issued by the vSecretary of the Treasury on November 1, "the
estimated number of subscribers is in excess of
21,000,000. In the first loan the number of
subscribers was 4,500,000, in the second loan
9,500,000, and in the third loan 18,300,000.
Final figures both as to the total amount of
subscriptions and the number of subscribers
are still lacking, but results will not be less than
now reported. The distribution of the loan
among investors can not be stated at the
moment, but details will be furnished as soon
as final reports are received.77
As already stated in the October issue of the
FEDERAL RESERVE BULLETIN,

dose ofloan.

there had been issued and sold,
in anticipation of the floating
of the fourth Liberty loan, an aggregate of certificates of indebtedness amounting to over




No. 11

$4,600,000,000. These certificates constitute
a charge upon the proceeds of the loan and
consequently reduce it to a net available
amount of a little more than $2,000,000,000.
The general program of finance projected by
the Secretary of the Treasury at the opening
of the current fiscal year was predicated upon
an estimated expenditure for the fiscal year of
$24,000,000,000. During the month of October a deficiency appropriation bill was passed
by Congress and became law. This bill
adds, in round numbers, the sum of $6,300,000,000 to the amounts already estimated as necessary to the conduct of the Government during
the fiscal year 1918-19. It is thus seen that,
assuming the new war revenue bill will yield
$9,000,000,000, and assuming further that the
original program of expenditure will be carried
out, there would remain to be provided, before
the close of the fiscal year, June 30, 1919,
approximately $15,000,000,000.
The arrival of peace at a date earlier
than had a short time ago seemed possible,
may result in somewhat curtailing these heavy
requirements, but such curtailment or reduction can not, in the nature of things, take
place in large degree at any very early moment.
The Nation now has more than 2,000,000 men
on the fighting front in France, and it must,
prepare to provide for their maintenance and
other essential military and naval expenditures
for a good while to come, no matter whether
there be an early peace or continuation of the
war. Relaxation of our financial endeavors
to-day would therefore mean only impairment
of our readiness to meet the inevitable requirements of the Treasury in the event of the continuation of the war or failure to make adequate
preparation for the adjustment of the nation's
outstanding obligations at the end of the war.
For some time to come banking and public
finance must be influenced to a large extent by
the necessary provision for the very large
1045

1048

FEDERAL RESERVE BULLETIN.

Government expenditures, and no great modification of the policies already mapped out as
fundamental to war finance can at once be
experienced.
The question of providing for the national
requirements during the requirements? re " mainder of the fiscal year is
thus of a serious and important
nature. What new light will be thrown upon
the borrowing power of the country by the
results of the fourth Liberty loan is as yet uncertain. The distribution of the great masses
of securities which will necessarily have to be
placed in the hands of the public during the
coming months must, however, remain for
some time a continuing problem. The view
of the War Industries Board, as plainly expressed in the announcement made public in
the FEDERAL RESERVE BULLETIN for October,
emphasized "the great necessity for conservation in every possible way of men, material,
transportation, and all energies that go to placing the United States with all its power and
resources behind its men at the front." More
recently still the War Trade Board in an
official announcement, printed elsewhere in this
issue, has declared that it will be difficult or
impossible to attain the desired ends in the war
and to bring about a reduction in domestic consumption without energetic cooperation on the
part of all Americans. Existing methods and
practices in regard to saving must, in short, be
so remodeled as to warrant the expectation that
the new securities to be offered by the Government will be taken by the public rather than
held by the banks and more or less permanently
" carried " by them, whether the coming months
mean peace or war. Elsewhere in this issue of
the BULLETIN there is published an analysis
showing the increase in the amounts of war paper
now in the hands of the banks. The results of
the fourth Liberty loan show that there has
been a material increase in the volume of this
war paper, and past experience has shown that
during the few weeks following the conclusion
of a loan campaign further large additions to
the volume of war paper rediscounted by the
banks are usually made. The following tabular




NOVEMBER 1,1918.

comparison gives some indication of the situation
with respect to the holdings of war securities and
war paper existing in the Federal Reserve system
about the dates of each of the Liberty loans:
[000 omitted.]
Reporting member banks. 4
Federal
Reserve
Banks.

June 22,1917.
Nov. 23,1917.
May 10,1918..
Oct. 25,1918..

i $98,184
1365,392 |
2
612,324
1,092,417

United
States war
obligations.
No data.
SI, 848,628
1,966,326

War paper.

No data.
§483,736
1,163,970

1
Collateral notes secured by United States war obligations.
2 Total war paper held, including customers' paper secured by United
States war obligations.
* Holding between 40 and 45 per cent of all United States war obligations held by all member banks.

The successful placing of the fourth Liberty
loan, by far the greatest public
Growth of pub- -, i /
,.
j. ,,
-, • -, lie debts
operation oi the kind m
history, calls attention to the
continuous and extensive increase of the obligations of the belligerent countries as the war proceeded. While final figures are in most cases
available only up to a relatively recent date
and while therefore an element of estimate must
be employed in every computation which seeks
to show the present status of public obligations, it may be stated in round numbers that
the war indebtedness of all kinds incurred by
the belligerents on both sides is probably not
far from $175,000,000,000. As compared with
the total estimated wealth of the world prior
to the outbreak of the European war, this
figure therefore represents a very material proportion. It would have been pronounced impossible before the war for the nations of the
world to borrow and expend any such sum in
the course of the four war years which have
recently closed. The borrowing process has
been accompanied by a general advance of
prices through the process of what is ordinarily described as "inflation." Both wealth
and income as stated in terms of money
are now on a very much higher level than
before the war—a fact which in itself shows
the serious limitations of such estimates, since
otherwise the war would appear to have rendered participants in it more prosperous and
better off. In fact, progress in the construe-

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

tion of public works and the creation of fixed
capital has been practically brought to a close
throughout the world, and especially in the
territory of the belligerents, while in restricted
areas actual direct destruction has made great
inroads into the local provision of fixed forms of
wealth. The close of the war will in any event
leave all the belligerent countries, our own
among them, with a very difficult price and
credit situation, as a consequence of the inflated state of credit throughout the world.
It is therefore obviously the interest of any
country which can do so to avoid any aggravation of conditions by careful adjustment of its
financial program to the underlying economic
factors. There is nothing that can be accomplished by inflation that can not be better
accomplished in other waj^s less objectionable
in their economic effects.
The dangers of the situation just pointed
out once more emphasize from
Volume of sur- a new angle the necessity that
plus wealth.
everyone recognize the importance of his paying as much of the current cost
of the war as possible out of current savings
drawn from new income. The extent to which
such saving can be made depends upon the
extent to which the savings margin of the
community or the surplus of current production
over consumption can be raised. This margin
can only be approximately estimated by existing
statistical methods or with the use of existing
statistical data. As has been stated in former
numbers of the BULLETIN, it has been placed by
some economists as high as $18,000,000,000 per
annum. This estimate, whatever may be thought
of the methods by which it has been reached, is
at all events a high figure. Before the coming
on of the European war it was supposed that
some $5,000,000,000 to $7,000,000,000 probably represented the annual savings fund of
the country, and a large part, at least, of the
enlargement in the current estimate of what is
available has been due to the rise of prices
which has accompanied the war. In the absence of authoritative estimates or analyses
showing the amount of this current margin of
saving it is possible only to form general opin-




1047

ions or conjectures with reference to its
amount—but, whatever that amount may be.
it is undoubtedly a fact that in order to carry
an actual budget such as must now be met
there must be an adequate decrease in consumption in order to bring savings up to the
amount of estimated needs. How is this decrease in consumption to be brought about?
Shall it be by voluntary rationing, by compulsory rationing in some form, by consumption
taxes, or by inflation? As an economic expedient inflation is to be viewed as a method of
enforcing saving. Whenever governments,
either of choice or necessity, resort to this
method of acquiring the goods and services of
which they stand in need they practically
force upon the community a kind of compulsory
saving in two ways. By the use of new bank
credit for the purchase of goods they take
these goods off the market and thus render
them inaccessible to the ordinary consumer
who finds himself met by a shortage of the
goods he would gladly buy. Government
purchases, moreover, enhance prices through
the natural method of demand acting upon a
stationary or only slowly increasing supply.
Both through the actual deficiency of commodities, therefore, and through the higher
charge for the goods which he must purchase
the consumer finds himself compelled to go
without—that is, save—whether willingly or
otherwise. The Board's wholesale price index
shows the continued upward tendency of prices,
and this tendency will be inevitably greatly
accentuated should the additions to bank
credit, recently and currently arranged, be
permitted to continue their growth unless accompanied and offset by price control.
In the last issue of the FEDERAL RESERVE
BUIJLETIN evidence was subSource of inflamitted to show that the belief
tion.
in a great inflation of the currency has relatively little to support it. Primarily, it is not the issue of notes, but the creation
of deposit credits on the books of the banks,
for the purpose of enabling borrowers to buy
and carry Government bonds, and rendered
necessary because of the failure of the public

1048

FEDEKAL RESERVE BULLETIN.

to save sufficiently, that creates the buying
power which advances prices. The following
figures show in an approximate way the
progressive increase in the deposits and investments of the banks, both member and
Federal Reserve, as well as the declining ratio
of reserve to outstanding liabilities of the
latter, which is a consequence of borrowing
instead of more intensive saving:
[000 omitted.]
Investments.
Federal
Reserve
Banks.

lie porting
member
banks.

Deposit; liabilities.

Reserve
percenti
age of
Federal ! Reporting j Federal
Reserve
Reserve ! member "~
Banks.
Bunks.
banks.
j

§1,241,210
June 22,1917 $552,649
Nov. 9,1917
788,538 •$11,562,007 1,407,547
12,405,748 1,556,303
Apr. 18,1918 1,286,162
14,022,210 1,580,802
Oct. 25,1918 2,295,122
i Figures of Dec. 7 for 653 reporting' banks.
Government deposits.

!

Per cent
71.6
69.4
11,278,704
61.3
11,731,221
51.1

Deposits, exclusive of

Precisely what effects may be expected from
this process of credit expansion should be
definitely understood in order that the Nation
as a whole may choose between the policy of
steadily adding to its outstanding bank obligations and that of curtailing them by regularly
reducing its indebtedness through saving and
the cancellation of its borrowings at the banks.
The Board, in former issues of the BULLETIN,
has defined inflation as the increase of current
purchasing power, "whether in the form of
actual currency or in the form of c r e d i t faster than the volume of available goods/'
and this is manifestly the process which is now
going on as a result of methods of subscribing
and paying for Government bonds, which are
not based upon real savings.
Probably the feature of the present financial
situation of the country which
The banks and
most requires correction is this
the public.
increase in disposition on the
part of the public to rely too largely upon the
banks as sources from which to obtain the
necessary funds.for use in financing the requirements of the Government. Figures are
not available to indicate the extent to which
banking credit has been drawn upon either




NOVEMBER 1,1918.

directly or indirectly in the process of placing
the bonds of the fourth Liberty loan. Such
indications as are given by weekly reports of
Federal Reserve Banks and of reporting member banks appear to show> that greater use has
been made of banking credit in connection
with the fourth loan than in any of its predecessors. Whatever the volume of commitments
made on this account, their existence means
that in order to reduce the dependence upon
banks, and still more in order to provide for
the taking up of additional loans when offered,
it will be inevitably necessary that the public
address itself with greater earnestness to the
problem of saving and applying its income to
public requirements. Advices from many
quarters show that while progress is being
made in this matter, the mounting necessities'
of the Government are equally conclusive evidence to the effect that what has already been
done must be continued and added to and
that further and more successful efforts must
be made if the banks are not to t>e obliged to
take and hold an undue proportion of the
obligations issued by the Government.
The relation between prices and credit
expansion has been frequently
P r i c e s and
,.
-, . -. ,, ^
-. , ,
credit expansion, reierred to by the Board, but

may be restated somewhat as
follows: Bank credit when granted by commercial institutions upon the strength of, or for
the purpose of liquidating, commercial transactions of early maturities, serves as a means of
facilitating the flow of commodities from producer to consumer and the return of purchasing power from the consumer to the producer
through the various channels of circulation.
This process enables goods to act as a means of
purchase and payment for other goods, and
when the maturity of the average loan granted
(or "credit" allowed) is no longer than that of
the productive processes in which the community is engaged, the effect of it is only that
of facilitating and promoting production and
distribution. When the loans granted or credit
extended by the banks are in excess of the normal value of the goods offered for exchange,
there is brought into existence an additional or

1,1018.

surplus volume of purchasing power which has
the same effect upon the prices of commodities
as does a corresponding addition to the moneysupply, inasmuch as it may be offered for commodities and may thus create a demand for
them. Credit expansion becomes inflation when
the increase of prices it produces brings no
commensurate or offsetting increase of production. Such excessive credit will be granted
ordinarily by prudent bankers only under
apprehension of severe stress of circumstances.
When the public treasury obtains credit from
the banks by placing its obligations with them
for the purpose of employing the proceeds for
unproductive or noneconomic ends, the result
is to create a volume of purchasing power on
the books of the banks which will advance
prices unless it is promptly "absorbed" by the
public's giving up some of the dollars that belong
to it in exchange for the dollars that have been
created by the banks on their books. The
public, in other words, is called upon to abstain
from spending the dollars which it has to an
amount equal to the securities which are thus
offered to it. By so doing it places in the
hands of the Government the goods which are
required for the public service and at the same
time it retains in its own possession claims upon
future wealth and income in the form of Government obligations. Should the banks be
unable to dispose of their Government securities to the public,.and should they find themselves compelled to fund their short-term notes
or certificates by purchasing long-term bonds,
the result will be to create a volume of additional purchasing power which' was not called
for by the necessities of exchange on the part of
the community and whose effect has been to
buy goods in competition with the general rank
and file of purchasers. This is credit inflation,
and its immediate sign is seen in the advance of
prices due to the use of the deposits created by
the banks on their books on behalf of the public
treasury and not offset by corresponding purchases of bonds on the part of the public. This
was stated by the Select Committee on National
Expenditure of the British House of Commons
on November 13, 1917, in language as appli-




1049

PEDEBAL SESEEVE BULLETIN.

cable to conditions in the United States as to
those in Great Britain: "There have been,
indeed, very large increases in taxation, and
vast loans have been raised from the savings of
the people. But to the extent to which this
policy has not been pursued, and, instead, fresh
credits have been created, the Government has
given the power to the public to spend more
freely on things. And the public, so far as it
spends more freely on things, instead of investing in Government securities, raises prices
against itself. If these two processes go
further, prices will tend to rise still further. If
these two processes are checked, one important
cause of the rise in prices will be removed."
As has recently been pointed out by Governor Harding, the too free use of credit affects
the situation in the following important respects as well as in others. "(1) It will make
credit for war purposes more difficult to obtain
and consequently higher in price. (2) It will
tend to force prices to greater heights, because
civilian business will then be able to compete
with the Government and they will bid against
each other. This will increase the cost of
living and also the cost of the war."
The reason why the public, and especially the
banking community, looks with
Importance

reserves.

of

s0 mu

i . ,

,,

.,

c n interest to tne reserves
of the banks is understood
when the nature of credit expansion is carefully considered. Ordinary extensions of
credit made for the purpose of facilitating
the exchange and circulation of goods require
little or no addition to the reserve funds of
the banks, because the credits thus granted
in the main offset and cancel one another,
leaving an unimportant margin to be redeemed
in cash. When the credit structure of the
community is enlarged by the extension of
bank loans not accompanied by a corresponding increase in production and the proceeds
are employed in the way just described for
the purchase of commodities or for buying
them away from the consumers who would
otherwise purchase them, the claims to the
bank credit thus brought into existence keep
on passing from hand to hand. The Govern-

1050

FEDERAL RESERVE BULLETIN".

ment transfers them to contractors who
furnish it with goods and to persons who supply it with services. Both these classes pass
on the credit claims to others in exchange for
goods which they desire and they remain
outstanding, representing in effect an addition
to I the purchasing media of the community.
There is no means of permanently canceling
or digesting such outstanding credits except
one—their use by those into whose hands
they come for the purchase of the securities
against which the credits were extended,
notably Government bonds in our present
situation. Ordinary commercial credits furnish their own means of cancellation through
the maturing of the paper upon which they
were based and the completion of the productive process to finance which they were
extended. Credits based upon noncommercial
operations or investment securities possess no
such quick self-reducing quality. As they
increase, therefore, they tend to make a more
or less lasting addition to the outstanding
volume of bank liabilities and thereby increase
.the superstructure of bank credits which rests
upon the underlying reserve monoy of the
country. During the last year there has been
a decrease in the percentage of gold cover to
the aggregate banking liabilities of the country, mainly the result of the process above
outlined. This decline has not been occasioned by any falling off in the aggregate gold
holdings of the American banking system,
which indeed have shown some increase. It
is due altogether to the rapid increase in the
outstanding volume of bank liabilities. It is
this feature of the situation which gives to the
decline of the gold percentage its significance.
That is to say, the decline of this percentage
is an important index of our changing position, not because of any inadequacy of gold
but because, of undue or disproportionate
expansion of the credit structure which the
gold reserve of the Nation is required to support and protect in consequence of inadequate
saving by the people. Decline of the reserve
percentages of the central banking institutions
has been a general phenomenon in all of the




NOVEMBER 1,1918.

belligerent countries since the opening of the
war and has everywhere been admitted to be
undesirable. As shown in the studies of
public debt and currency, published elsewhere
in this issue of the BULLETIN, it reflects the
disposition of these countries to rely upon
borrowing and when necessary upon direct
borrowing from the banking institutions—the
public being either too little able or too little
willing to furnish out of its current consumption either in the form of taxes or of direct
loans to the Government the sums necessary
to avoid credit inflation and to hold reserves
at a normal percentage level. The great gold
strength of the United States, largely due to
the heavy accessions to our national stock of
gold in the two years preceding our entry into
the war, has, it is true, placed this country in
an exceptional and peculiar position; and to
this extent the character of the credit inflation
experienced in the United States differs from
that existing in other countries and has been
less easy to realize. But it would be a mistake for us to proceed on the assumption that
inflation in the United States is, therefore,
different in its essential character from what
it is elsewhere. Here, as elsewhere, the decline in percentage of reserve holdings to outstanding liabilities reflects the relative increase
of the latter as compared with the means of
their direct conversion on demand and the
problem presented is the problem of controlling
the growth of banking credits.
Further increases in the holdings of war loan
Operations of paper and acceptances partly
Federal Reserve offset by curtailment in the
Eanks
*
holdings of other discounted
paper are indicated by the comparative weekly
figures of principal earning assets of the Federal Reserve Banks for the four-week period
September 20 to October 18.
The period under discussion saw the placing
of the seventh (October 1) issue of Treasury
certificates of about 641 millions. The effect
is seen in an increase of 30.3 millions in the
amounts of war-loan paper held on October 4
and in a further increase in these holdings of
52.6 millions on October II, all the Federal

NOVEMBEIi 1, 1918.

ReserveBanks, except those at Chicago andMinneapolis, reporting substantial additions to their
holdings between these two dates. Corresponding figures for October 18 show a decrease of 41.6
millions, the New York bank reporting largest
liquidation of this paper for the week. Total
holdings of war paper, 1,262.7 millions, are 116.3
millions larger than on September 20 and about
650 millions in excess of holdings on May 10, the
Frida}^ following the consummation of the third
Libert}^ loan. Other discounted bills on hand
fell off 88.0 millions, largely at the Mew York
and Chicago banks. Between September 20 and
October 18 the proportion of war paper in the
total discounts on hand went up from about 69
to almost 75 per cent. For the New York and
Boston banks this percentage shows an increase
from 80 to 85 per cent.
Acceptances on hand show an increase from
250 to 370.1 millions, following large purchases
of this class of paper in the open market and
from the New York bank. As a result the
New York bank's share in the total acceptance
holdings shows a decline from about 53 to less
than 35 per cent.
An increase of 25.8 millions in United States
short-term securities represents largely investments in one-year 2 per cent Treasury certificates to secure Federal Reserve bank notes, the
circulation of which increased during the period
by 22.4 millions. United States bond holdings
show a further decline of 0.8 millions. The
Federal Reserve Banks hold but small amounts
of Liberty bonds for the accommodation of their
members, the bulk of their holdings being composed of bonds deposited with the United States
Treasurer to secure circulation.
During the period under review the banks'
gold reserves increased from 2,023.6 to 2,035.3
millions, while their net deposits declined from
1,629.3 to 1,580.8 millions. Federal Reserve
notes in actual circulation show an increase
from 2,295 to 2,502.5 millions, or at the rate of
51.9 millions per week, as against an average
of over 65 millions for the preceding four weeks.
The ratio of cash reserves to aggregate net
deposit and Federal Reserve note liabilities
declined from 52.9 to 51.1 per cent.




1051

FEDERAL RESERVE BULLETIN.

In the following table are shown the changes
between September 20 and October 18, 1918,
in the total discounted and purchased bills held
by each of the Federal Reserve Banks, as well
as changes between the two dates in the holdings of other classes of investments:
[000 omitted.]
Federal Reserve Bank.

Net;
Net
! Sept. 20. Hot 1 1R
uct
' 8 - ! increase. decrease.

Boston
$113,370 $138,129 $24,759
New York
789,365
771,003
Philadelphia
110,683
132,469
21,786
Cleveland
121,033
19,005
140,038
Richmond
70,426
3,618
74,044
Atlanta
20,030
72,397
92,427
Chicago
34,326
255,720
290,046
St. Louis
16,720
70,047
86,767
Minneapolis
71,000
54,612
Kansas City
71,322
84,161
12,839
Dallas
52,284
58,367
6,083
San Francisco
112,531
136,629
24,098
Total
1,910,178 2,058,692 148,514
United States long-term securi29,022
28,205
ties
United States short-term securi25,860
41,878
67,738
ties
84
113
197
Other earning assets
Total investments held... 1,981,162 2,154,832

$18,362

16,388

817

173,070

Between September 13 and October 18 member banks in leading cities re-

m e m S a l s . POTt

a n increase i n their hold

"

ings of Treasury certificates
from 1,188.4 to 1,729.9 millions, the increase
of 541.5 millions constituting about 43 per cent
of the two additional certificate issues of September 17 and October 1. For the central
reserve city banks an increase from 662.8 to
938.2 millions is noted, of which 808.8 millions
or about 47 per cent of the total reported holdings, are shown for the member banks in Greater
New York. Between June 21, the Friday preceding the first certificate issue under the latest
Liberty loan, and October 18, the eve of the
closing of this loan, reporting member banks
show a net increase in their certificate holdings
of over one billion dollars, notwithstanding the
redemption during the period of all certificates
issued in anticipation of the third loan, On
October 18 approximately 37 per cent of the
4,660 millions of fourth loan certificates issued
were held on their own account by reporting
member banks.
Until the beginning of October 4 but little
change is shown in the reporting banks' hold-

1052

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,

1918.

Small increases are indicated in the totals of
ings of United States bonds. Since then these
reserve balances (all held with the Federal
holdings, chiefly Liberty bonds, have increased
somewhat, the total holdings of bonds, other Reserve Banks) and of cash in vault. The
than circulation bonds, 526.9 millions, being atio of combined reserve and cash to deposits
37.8 millions, or nearly 8 per cent larger than fluctuated during the period between 14.7 and
on September 13. A similar development is 15.1 per cent, and stood at 14.9 per cent on
shown by loans secured by United States war October 18. For the banks in the central
bonds and certificates, the October 18 total of reserve cities this ratio shows a fluctuation
500.3 millions showing an increase of 27.2 between 15.8 per cent and 16.3 per cent, the
millions over the corresponding September 13 former percentage obtaining on both Septem7
figure. For the Greater New York banks the ber 13 and October 18. "Excess reserves/
October 18 total of such loans shows but a very which were as low as 46 millions on September
slight increase over the September 13 total of 13, reached the high level for the period on the
195.5 millions. Between these two dates aggre- following Friday when a total of 99.5 millions
gate holdings of United States war securities is shown, the corresponding figure for October
and loans supported by such securities went up 18 working out at 56.8 millions. For the cenfrom 2,151 to 2,757.2 millions. For member tral reserve cities a similar development is
banks in central reserve cities a corresponding shown, the maximum of 76.3 millions obtaining
increase from 1,151.0 to 1,454.2 millions is re- on September 20 as against 29.7 millions the
ported, and for member banks in Greater New week before and 30.6 millions on October 18.
Carrying further the plan of rationing indusYork an increase from 967.1 to 1,218.8 millions.
try already discussed at length
Aggregate loans and investments, excluding
Restriction of in the FEDERAL RESERVE BULpermanent investments, of all reporting banks
production.
LETIN for October, the War
show an increase from 12,998.5 to 13,534.3
millions, while the combined ratio of United Industries Board has extended its list of comStates war securities and loans supported by modities subject to restriction, thereby narrowsuch securities to the totals just given rose ing and tightening the lines already drawn
from 16.5 to 20.4 per cent. For the central with a view to eliminating unessential industry
reserve city banks a rise of this ratio from 18 through the process of rationing manufacturto 22.3 and for the Greater New York members ing establishments in respect to their fuel,
a rise from 19.5 to 23.9 per cent nuiy be noted. transportation, materials, and other necessities.
Substantial gains in Government deposits are Further effort along the same line has been
shown only for September 20 and October 4 made by the development of a program for the
the Fridays following the certificate issues immediate diversion, of labor from the less
The October 18 total of 459.6 millions is but essential industries to those engaged in war
18.6 millions in excess .of the figure shown five production, an industrial labor survey being
weeks earlier. Central reserve city banks show undertaken by the board as a basis for its
an increase under this head from 239.9 to 249.5 plan. Among the other proposals of this kind
millions, and the Greater New York banks an put forward by the board is that of further
increase from 203.2 to 209.9 millions. Net restricting the construction of new buildings
demand deposits of all reporting banks show for the continuance of the war in order to
almost continuous growth from 9,451.5 to save both material and labor which would
9,796.3 millions, or a gain for the period of otherwise be devoted to the production of
344.8 millions, of which 112.8 millions repre permanent and semipermanent forms of wealth.
sents the gain at the central reserve city banks These further developments of the program of
and 65.9 millions the gain at Greater New fork the War Industries Board bear out the views
banks. Aggregate time deposits show asligh expressed in the FEDERAL RESERVE BULLETIN
reduction from 1,462.1 to 1,441.2 millions.
for October and point the way toward the




eventual rationing of industry by a general
and complete application of the principle of
priority. It is worthy of note, however, that
the plan of the War Industries Board—effective as it necessarily must be and superior as it
unquestionably is to the simpler plan of control
of expansion through banks and other creditgranting institutions—is negative in its scope.
In order to make its results positive the direct
cooperation of the public must be secured,
individuals not only recognizing the necessity
they are under of observing the orders of the
board but cooperating with it by continuing
to produce as actively as if they were engaged
in their original occupations and by applying
the proceeds of their industry to the support
of the Government through the purchase of
its obligations. Were the working members
of the community to be merely shifted from
so-called unessential occupations to essential
industries, only one part of the object aimed
at would have been attained. "Man power7''
would have been withdrawn from unessential
business and would have been devoted to
essentials but the question would still remain
whether the earnings of the individuals thus
transferred were being maintained at their
original level through the exercise of industry
and assiduity or whether they were being
applied to the purchase of goods or services
of an unessential character but not yet reduced
or limited through the complete operation of
the rationing principle.
A further development of the plan of tho
War Industries Board is seen
Restriction of ^
foreign traae.

^

lication

«
.

• -,

of

t h e
v

s a m e

•*. ±.-

idea oi priority, or limitation,

to foreign trade. For some time past various
agencies of the Government have been assuming control of foreign trade. The War Trade
Board has by a system of licenses practically
determined what goods should and what should
not go abroad or be imported, while the Shipping Board has regulated the use of tonnage
through its gradual diversion of ships to war
purposes. A rough system of priority or of
discrimination between essentials and nonessentials has thus been evolved but the defi-




1053

FEDERAL RESERVE BULLETIN".

NOVEMBER 1,1918.

nite application of the plan has been left for
the War Industries Board as a further evolution of its general priority system of restricting
unessentials. Great Britain has long since
put into effect a similar system, being compelled thereto by the essential need of ships,
and by the fact that so large a share of her
home consumption was drawn from foreign
countries. The effect of such restriction is notonly to curtail the use of productive means,
and facilities for transportation used in the
movement of unessentials, but is to take off
the market a distinct share of the goods more
or less commonly ranked as luxuries which
would otherwise constitute an opportunity for
the expenditure of the current income of the
public. Such a measure is practically essential
as complementary to the domestic restrictions
already applied in the priority plan. I t will
have the further effect of tending to rectify
those balances of trade between the United
States and other countries which until recently
have tended to be unfavorable.
Reports of business conditions from the
several districts strongly susS a v i n g s and , .

bond purchases:

t a m

, •,

the

. .

°F i n i o n >

-,

based

,

u

Pon

other evidence, that the process
of saving is proceeding, but not with sufficient
speed, and that it is still very much behind
the rate of consumption fixed by the requirements of the Government. Iletail trade is
everywhere reported satisfactory and in some
regions is apparently more active even than
in the past. Demand for commodities originates largely with the economic groups which
are earning high war wages. The significance
of this situation is found in the fact that,
although the policy of rationing "unessential"
industry has been actively undertaken through
regulation of the supply of fuel, transportation,
and labor., it remains true that many distributors and retailers had accumulated large
stocks of goods prior to the period when the
new system went into technical effect; while
it is further to be noted that time has not yet
been sufficient to permit the full application
or enforcement of the plan itself. Even if
already developed to a point where it would

1054

FEDERAL RESERVE BULLETIN.

effectually check unessential production, it
would not, therefore, thus far have been successful in bringing about the objects aimed at
when it was formulated. The fact thus remains that the process of saving is not being
actively pressed by those members of the
community whose aggregate consumption is
most important with respect to staples and
goods of general use. In order to bring about
a more thorough application of the plan of
conserving goods and credit a wider popular
cooperation will be necessary. The form
which this individual saving should take would
be that of early settlement for bond purchases
out of current income, and consequent release
of the banks from the necessity of carrying
large quantities of Government obligations on
behalf of customers subject to renewal of notes
made for the purpose of paying these subscriptions. Some months will probably be
required to test the general disposition of the
community to apply their means to the uses
of the Government through the process of
using surplus income for the cancellation of
funds borrowed for the purchase of bonds.
During the month ending October 10 the
net inward movement of gold
^
® 2 8 4 ' 0 0 0 ' a s compared
with a net outward movement
of $1,768,000 for the month ending September
10. Gold imports for the month, amounting
to $2,043,000, came largely from Canada,
Mexico, and Colombia, while gold exports,
totaling $1,759,000, were consigned chiefly to
Mexico.
The gain in the country's stock of gold
since August 1, 1914, was $1,072,906, as may
be seen from the following exhibit:
[000 omitted.]

Imports. Exports.

Aug. 1 to Dec. 31,1914.,
Jan. 1 to Dec. 31,1915..
Jan. 1 to Dec. 31,1916..
Jan. 1 to Dec. 31,1917..
Jan. 1 to Oct. 10,1918..

§104,972
31,426
155,793
372,171
34,573

iS81,719
420,529
529,952
181,542
22,602

823,253
451,955
685,745
553,713
57,175
1,771,841

Total.,




Excess of
imports
over
exports.

1

Excess of exports over imports.

1,072,906

NOVEMBER 1,1918.

During the month of October the Federal
Reserve Bank of New York

The acceptance
-, -, r .,
, « ,,
situation
announced definite rates tor the

discount of bankers' acceptances
classified or grouped in accordance with the
varying maturity of the paper to be presented.
This action was taken with a view to promoting
the development of a discount market for acceptances in New York. In pursuance of the
idea of developing a local discount market in
each district, the Board, on October 8, addressed each Federal Reserve Bank with reference to the practicability of action on the
part of such banks in establishing an open market for bankers' acceptances in the several districts. The Federal Reserve Bank of Boston
has been successful in establishing such an open
market for acceptances, while in New York City
the acceptance business has developed to such an
extent that it is desirable to share the burden between New York and the other districts. Federal Reserve Banks generally have indicated a
willingness to relieve the New York bank of acceptances originating in their respective districts,
but a plan more in keeping with the regional
plan of the system would be that of localizing
the business in the several reserve districts by
developing a discount market for acceptances
at the several points where Federal Reserve
Banks are situated It was the original purpose of the Federal Reserve Act to develop, so
far as practicable, a discount market organization generally throughout the country, with a
view fco decentralizing credit. The events of
the war and other unforeseen conditions have
militated strongly against the growth of such
local discount markets. With the return of
peace there will be once more an approach to
more normal conditions. In the opinion of
the Board, the time has come for making welljudged preparations looking to growth along
the lines originally indicated—the upbuilding
of the discount market throughout the United
States, centralizing operations so far as practicable at the reserve banking points.
On October 3 the Federal

Election of diReserve Board addressed to
rectors.

Federal Reserve Banks a letter

NOVEMBER 1,1918.

FEDERAL RESEEVE BULLETIN.

designating Tuesday, November 19, as the date
for opening the polls for the election of directors
to succeed those whose terms expire December
31, 1918. In each case the Board classified the
electoral groups for class A and B directors in
the manner specified in the act amendatory to
the Federal Eeserve Act, which became law on
September 26, requesting the chairman of each
Federal Reserve Bank to guide himself accordingly in his grouping of members. As is well
known, the purpose of the provision carried in
the act of September 26 has been that of bringing about a more representative selection of
directors. The old method described in the
Federal Reserve Act had, as was pointed out
in the FEDERAL RESERVE BULLETIN for December. 1917, practically failed of its purpose in so
far as obtaining a really representative choice of
directors. Comparatively few votes were cast,
a3 the figures then compiled clearly showed.
It was believed that a regrouping of banks in
accordance with the peculiarities of the several
districts might result in the creation of more
nearly representative groups, and this has been
attempted by the Board. The following table
shows by districts the classification or grouping
of member banks as prescribed by the Board in
its letters to the several Federal. Reserve Banks.
Group i.
Federal Reserve district.

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

Group 2.

Group 3.

Capital
and
surplus
over—

Maximum Minimum
capital
capital
and
and
surplus.
surplus.

Capital
and
surplus
under—

$999,000 $999,000
1,999,000 1,999,000
999,000
999,000
999,000
999,000
599,000
599,000
599,000
599,000
999,000
999,000
599,000
599,000
399,000
399,000
499,000
499,000
399,000
399,000
599,000
599,000

§300,000
201,000
250,000
200,000
150,000
100,000
200,000
100,000
60,000
75,000
100,000
125,000

§300,000
201,000
250,000
200,000
150,000
100,000
200,000
100,000
60,000
75,000
100,000
125,000

An act amendatory to the Federal Reserve
Act which became law on Sep-

New reserve re- ^
quirements.

^

2Q

, .

ided

, .

^
-,.

bankg

located m outlying districts ot
reserve cities, or in territory added to such
cities by the extension of their corporate char-




1055

ters, may by the affirmative vote of five members of the Federal Reserve Board hold and
maintain the reserve balances prescribed for
banks outside reserve cities. I t was further
specified that banks located in the outlying
districts of central reserve cities may, under
similar conditions, be permitted to hold reserves equal to those required of banks in reserve cities. Acting in accordance with these
provisions of the law, the Board has voted that
it will not attempt to define such outlying sections in cities in districts other than Boston.
and New York, but that it will give consideration to individual applications received from
such banks as may feel entitled to a change of
reserve requirements, pursuant to the terms of
the new law, such applications to show location,
of bank, capital, surplus and profits, and deposits, the latter divided as follows: Individual
deposits and collection account of local banks
and trust companies, and deposits of out of
town banks; applications when completed to
be submitted through and accompanied by
recommendation of the Federal Reserve agent.
It has further been voted that Federal Reserve
agents be authorized to submit direct to the
Federal Reserve Board general applications in
behalf of all such banks in their respective districts without awaiting individual action of
banks concerned.
The so-called Bond Act, adopted by Congress on September 24 last,
e sinre created
throu h
section
6
diSC" .
'
s
>
which modified section 5200,
Revised Statutes, a change in the methods of
rediscounting by including among the classes of
loans not subject to the so-called 10 per cent
limitation notes secured by bonds and certificates of indebtedness. This legislation was not
referred to the Federal Reserve Board for its
consideration and apparently through oversight provision was not made permitting Federal Reserve Banks to rediscount for member
banks their full lines of paper secured by Government obligations. Federal Reserve Banks
are consequently obliged to limit their rediscounts for any national bank to an amount for

1058

FEDERAL RESERVE BULLETIN.

1, 1018.

any one name not exceeding 10 per cent of the
borrowing bank's capital and surplus. This
matter has been the subject of discussion between the Board and various Federal Reserve
Banks and the attention of the Board has been
called to a circular recently issued by the secretary of the New York State Bankers Association in which the suggestion was made that
banks obtain the consent/ of their borrowers,
through a clause inserted in the body of the
note, to pledge separately the collateral against
such.notes. This would enable the member
banks to use bonds upon which they had made
loans as security for their own 15-day notes
with the Federal Reserve Banks. There are
evident objections to the plan for the reason
that many individuals may be unwilling to give
such permission to the bank from which they
borrow on their bonds. The question of obtaining additional legislation intended to correct the oversight in the act of September 24
has accordingly been considered and it is expected that some provision covering this point
will be made in the near future.
On October 1 an amendment to the New
York Clearing House AssociaCharges for col-

tion,s

^ ^

r e k t m

to

tions became eilcctive.

tution. Similar developments elsewhere will
produce parallel tendencies, no doubt, at other
Federal Reserve Banks. One result of them
will probably be the further expansion of the
transit departments in order to handle the
corresponding enlargement of the volume of
operations.
On October 26 Mr. Albert Strauss took the
oath of office as member of the
New member of
Federal Reserve Board, sucBoard.
ceeding Hon. Paul M. Warburg,
who retired on August 9. Mr. Strauss, is 54 years
of age, was born in the city of New York, and
was educated in the schools and College of the
City of New York, after leaving which he entered
upon the career of banking. In 1882 he entered the banking house of J. & W. Seligman
& Co., of New York, becoming a member of the
firm in 1901. During the last year Mr. Strauss
has been in Washington representing the Treasury Department on the War Trade Board and the
gold export committee of the Federal Reserve
Board. Mr. Strauss has been appointed for the
full term of 10 years and has been designated
by the President as vice governor of the Federal Reserve Board.
collec.
lnis

requires that members shall not pay a higher
charge for the collection of items on the Federal Reserve par list than would be incurred
in collecting such items through the Federal
Reserve Bank of New York. Largely as the
result of this change the daily average of items
handled by the Federal Reserve Bank has
shown an important increase, although experience with the rule since it has become effective
has not yet been sufficiently long to show the
actual extent of the increase. The rule, however, besides diverting many more items to the
Federal Reserve Bank of New York for collection, is expected to result in considerable
withdrawals of funds which have been carried
by other institutions on deposit with New
York banks under reciprocal clearing arrangements or under arrangements whereby the
out-of-town bank receives payment for collecting and remitting to the New York insti-




Little Rock Branch Organized.
The Federal Reserve Board, on October 3,
announced the following-named gentlemen as
directors of the Little Rock (Ark.) branch of
the Federal Reserve Bank of St. Louis: Moorehead Wright, president Union Trust Co.,
Little Rock; George W. Rogers, vice president
Bank of Commerce, Little Rock; Ed Cornish,
vice president American National Bank, Little
Rock; W. L. Hemingway, president Mercantile Trust Co., Little Rock; John M. Davis, bank
commissioner of State of Arkansas.
Messrs. Wright and Rogers are the directors
appointed by the Federal Reserve Board, while
the last three gentlemen are the directors
appointed by the Federal Reserve Bank of
St. Louis. Mr. Davis, who will resign his
present office as bank commissioner of the State
of Arkansas, will be manager of the branch.

WAR FINANCE.
In the following chapter are presented
facts and data drawn from various sources,
bearing upon the war debts of the principal countries. Figures have been added
giving the debts of the principal European countries for the most recent available
dates, also data of bank note circulation, gold
cover, and other financial information in continuation of similar figures shown on pages 267
to 287 of the April, 1918, FEDERAL RESERVE
BULLETIN.
I. THE BALANCE SHEET OF THE WAR,

1914-1918.1

Summary: General survey. The cost of the war. The
meeting of the war expenses (loans; forms and success of
the loans; taxes). Re"sume".
Supplement: Statistics of the consolidated loans issued
by the principal belligerent governments since August,
1914. Financial details of the different countries (budgets, debts, etc.). Details of the cost of the war. Estimates of the cost of the war. Comparison with several
previous wars.
GENERAL SURVEY.

The financial problems caused by the war
are, broadly speaking, the same in belligerent
as in neutral countries. Everywhere means
are sought of restoring the equilibrium of the
budget—resort is had to help from the treasury, to loans, or to more or less permanent
fiscal measures.
In this study the principal data of war
finance which have been officially published at
intervals by most of the belligerent governments have been classified under the head of
cost of the war, annual accounts, character and
proceeds of the loans issued, and revenue from
taxes.
In the monthly bulletins of the Soci6t6 de
Banque Suisse for December, 1915, January,
1916, February and June, 1917, the reader
will find information for the years 1914-1916
on "The ;;finances of the war" and "The banks
of issue, the latter having played a preponderant role in the financial operations of the
war.
It has not always been possible to make use
of the latest official documents in securing statistics, and often it has been necessary to give
merely an approximate estimate. Moreover,
i Translation of article in Bulletin Mensuel No. 5, 1918, of the Soctetd
do Banque Suisse, entitled " L e bilan de guerre, 1914-1918."




1057

FEDEKAL RESERVE BULLETIN.

NOVEMBER 1,1918.

recent detailed financial data concerning Russia are lacking; the statistics given for the
country stop with the autumn of 1917. In
regard to certain belligerent countries (Belgium, Serbia, Roumania, Portugal, and Montenegro, on the one hand, and Bulgaria and
Turkey on the other) exact details are likewise
lacking. It will suffice to say that the bulk
of their war expenses have been borne by their
allies. For the first time account has been
taken in these statistics of the very heavy war
expenses of the autonomous British colonies.
in the calculations foreign moneys have been
reduced to Swiss francs on the basis of metallic
parity. Given the actual state of the market,
this method of procedure lends itself to criticism. However, it is the only one that can
be carried out in actual practice. In the supplement, by way of compensation, the official
data have been stated in the legal money of
each country.
Great Britain, France, Italy, and, since its
entry into the war, the United States, are the
countries which publish most promptly detailed and satisfactory reports of their war expenditures and their means of meeting them.
The extension of military operations has
necessitated larger forces and an increase in the
output of war industries. The enormous consumption by the Army of provisions, raw materials, and manufactured articles, and the scarcity of labor, have caused a considerable rise in
the prices of all merchandise. The high cost
of living is being accentuated from day to day
and has helped greatly to increase the war
expenses. According to the index numbers
published in the Economist, prices have almost
tripled since June, 1914, Bradstreet's Index
number, which gives wholesale and retail prices
in New York, shows the same conditions. The
intervention of the Government, the principal
consumer, in taking over the various branches
of industry and commerce, has not sufficed to
restrain the universal and inevitable rise.
Other expenses, resulting from war conditions,
are grafting themselves on the expenses which
fall directly in the so-called war budget—the
payment of those in service, the allotments to
the families of soldiers and officers, pensions to
families which have suffered as a result of the
war (widows, orphans, cripples, etc.), the
increasing cost of the war loans, the Government's share in the cost of providing for civilians, etc.
COST OF THE WAR.

It is, and probably will continue to be, impossible to prepare a complete and exact state-

1058

FEDERAL RESERVE BULLETIN.

ment of the actual cost of the war. The
various ways of public financing and accounting
explain somewhat the lack of definite statistical
data regarding this important point. Besides,
it is quite certain that part of the deficits of the
budget which are very indirectly attributaole to
the war, have been entered as war expenses in
the public accounts. What we can determine
exactly are the credits voted and the war loans.
On the other hand, it is impossible to determine
the concomitant expenses resulting from the
war, especially in those countries where the
cost is borne either by the localities or the
confederated states, or by local organizations.
Finally, no estimate is practicable of the
losses of all kinds which people, individually
and collectively, have suffered in the course of
the war. In order to obtain the total cost of
the war it would be necessary to keep account
of the cost of mobilization of neutral countries.
In order to calculate the cost of the war up
to the end of July, 1918 (and very imperfectly
at that), there have been taken as a basis the
war expenditures which have been published at
regular intervals by the various ministers of the
Treasury (Great Britain, the United States,
France, and Italy), representing often simply
the authorized, and not the actual, expenditures. For the countries where these data were
lacking, recourse was had to the credits voted,
figures of the war debt, the various amounts
advanced to the Treasury, etc. The total
thus obtained does not necessarily indicate
the direct cost of the war. Indeed, we must,
on the one hand, eliminate the advances
made between the allies, which would otherwise cause duplication, as well as the cost of
providing for the civil population, which ought,
rather, be put on the regular budget, and, on
the other hand, we must add incidental war
expenses. But, under the actual circumstances, exact information in regard to these
different elements of credits and debits is difficult to obtain. Moreover, account must be
taken of the fact that the proceeds from the war
loans, even from the great consolidated loans,
are only gross proceeds; it is necessary to deduct subscriptions in the form of securities of
former war loans and of Treasury bills, as
well as the conversion of prewar debts. The
definite results—that is to say, the net proceeds
in new money—have not always been published.
Even by keeping account, as far as possible,
of all these elements, it is evident that the expenses pertaining to one country are not absolutely comparable with those of others. Even




NOVEMBER 1,1918.

before the war there was much to be desired in
regard to the transparency of the budgets,
and war conditions have not served to ameliorate this situation.
To the war expenses, properly speaking, are
added the civil expenses (regular budget), which,
in spite of efforts made from the outset, could
be restricted very little.
In certain countries the direct cost of the war
has been appreciably increased by the sums
advanced to the allies. Thus, Great Britain
and France have made large advances to Russia,
to Belgium, and to the small Balkan States.
Great Britain, which acted as clearing house for
the allies during the first three years of the war,
has also extended important credits to France
and Italy, with a view to facilitating the purchase of merchandise and munitions made in
England and the United States. She has, in
addition, made large advances to the British
dominions. At the present writing the total
advances made by Great Britain and France
probably exceed 45 billion francs. Advances
made by Germany to her allies are also considerable. These advances should, in so far as
they are recoverable, be deducted from the war
debt. Before the entry of the United States
into the war England and, in a lesser degree,
France and Italy also, opened largo commercial
credits in the United States and in various
neutral countries against pledge of securities.
According to the calculations of the National
City Bank of New York the total of the credits
extended abroad (temporarily consolidated in
the form of publicly issued loans) by the New
York market alone, amounted, at the end of
1916, to 2,050 million francs, to which sum
should be added important commercial and
exchange credits opened by the New York
banks.
Since the spring of 1917 the r61e of banker
for the Entente has been assumed by the United
States. On April 24, 1917, the American
Government was authorized to advance to the
allies the sum of 3 billion dollars; these
figures have been raised to 7 billion dollars
since September 24, 1917. In other words,
the allies * derive great benefit from the excellent credit which"the United States Treasury
has in its country.
In the table following we give the condition,
at the end of June, 1918, of the credits extended
by the United States to the principal powers of
the Entente since April, 1917.
i The allies, indeed, paid in the beginning 3 per cent on the American
loans, a rate which has gradually been raised to 3J, 4, 4J, and even 5 per
cent, this increase being explained by the increase in the rate applied
to the bonds of the American Treasury.

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

[In millions of dollars.]
Credits extended.
Country.

Great 13 ritain
.France.
Italy
Russia
Belgium.
Cuba
Serbia
Greece
Total

Credits used.

June 26,
1918.

....

Nov. 1,
1917.

June 26,
1918.

3,170
1,665
650
325
122.8
15
9
15.8

1,425
820
500
325
58.4

3,055
1,645
580
187.7
114.1
5
7.6

1,425
820
255
159.7
54.5

15,972.6

3,131.4

5,594.4

2,717.2

3

Nov. 1,
1917.

3

i At the end of July, 1918, this figure was $6,379,000,000.

In addition, a credit of $6,666,666 was extended to Eoumania which has not been
utilized.
At the end of July, 1918, the proportion of
American loans advanced to the different
countries, in relation to the total credits
issued, was as follows: 53 per cent to Great
Britain, 27.85 per cent to France, 10.8 per
cent to Italy, and 5.43 per cent to Eussia;
this last-named country having used nothing
since last March.
On the side of the Central Empires, Germany
has been the great purveyor of funds for her
allies. The exact total of the loans issued by
the German Treasury and by the respective
German banks is unknown to us. She had
advanced to Austria, at the end of June, 1917,
2,010 million marks. In addition, important
sums have been advanced to Hungary, Bulgaria, and Turkey.
According to our calculations, the direct
cost of the war, since the outset, can be
estimated at an amount somewhere between
850 and 900 billion francs—not taking into
account the amortization of the debt or the
total of indemnities.
We have estimated the total cost of mobilization and the carrying on of the war at about
50 billion francs i'or the first five months;
the year 1915 cost at least 130 billion, 1916
probably 190 billion, and 1917 nearly 300
billion francs, This progression is even more
pronounced during the current year, so that
we have for the first four years of the war an
average monthly cost of 18\ billion francs,
with a total of perhaps 875 billions. Calculated on the basis of 5i per cent interest and
i per cent monthly amortization (which is
certainly a minimum) we reach an annual cost
of B2i billion francs, as against 22j- billions at
the end of 1916.




1059

The immensity of these figures is more
forcibly realized when one recalls that before
the war the total debt of the seven principal
belligerents did not exceed 125 billion francs;
that the annual cost of supporting the debt,
including amortization, was only 5| : billion
francs, and that the totire wealth, both public
and private, of Great Britain, France, Germany,
Austria-Hungary, and Italy was not more than
1,275 billion francs. Finally, let us mention,
as other points of comparison, that, according
to recent calculations by the French statistician
M. A. Neymarck, the aggregate of negotiable
securities circulating in the world at the close
of 1912 was about 850 billion francs; on the same
date, the total amount of gold and silver
extracted from the earth since the beginning
of the world hardly exceeded 150 billion francs,
while government paper money of all the
countries in the* world totalea about 41
billion francs.
In short, the war has necessitated the creation, on a vast scale, of new debts and resources,
both temporary and permanent. This state
of affairs has completely transformed the
economic and financial structure of every
country. A return in the near future to
former conditions of production, consumption,
and credit can not be expected.
COVERING OF WAR EXPENSES.

The financing of the war is, primarily, an
economic problem. It has to do with managing and developing the forces of the country
and keeping intact domestic and foreign credit,
as well as the spirit of initiative.
In order to meet the war expenses recourse
was had everywhere to well-known means
employed in former wars. Civil expenditures
have been cut down, all those that were not
urgent being postponed sine die; economy has
been preached more or less successfully; part
of the resources of the regular budget has been
set apart for war expenses; there have been
requisitions; there has been great recourse to
banks of issue; there has been borrowing on a
large scale, both at home and abroad, in the
form of consolidated and floating loans, extension of credit, etc. At an early date the resources were enlarged by the creation of now
taxes, permanent and temporary, designed to
meet new interest charges on the war debt. In
certain countries, England and the United
States among others, a more or less important
fraction of the war expenses has been met by
resorting to taxation. Nevertheless, it is safo

1060

FEDERAL RESERVE BULLETIN.

to say that the greater part of the cost—
according to our calculations, more than
four-fifths—has been covered by the operations
of the Treasury and by loans, of more or less
distant maturities.
Furthermore, each country has financed its
war needs according to •its preparation and its
financial power, according to the habits and
custom, in vogue among its capitalists and the
saving public. Although it has undergone profound changes since 1914, the method of procedure followed before the war has not been
abandoned.
The means of providing the cost of mobilization and the first military operations have
been furnished to the treasuries b}^ the banks
of issue, which were generally well prepared
for their tremendous task. Even after the
issue of the first consolidated loans, the advances of the banks of issue were used, and
often misused, a fact which is comprehensible
inasmuch as it is apparently the least costly
way of financing the war. We say apparently,
for these advances have caused a manifestly
excessive increase in fiduciary circulation
which has helped appreciably to raise the cost
of living. In reality, recourse to paper money
or (what amounts to the same thing) to forced
issues of bank notes is the most costly way of
getting money.
In certain countries, moreover, special funds
("Tr6sors de guerre/' etc.) and the surplus
from loans have been used to cover a small
fraction of the cost of mobilization.
But everywhere the method of borrowing is
used as a means of making appeal to the market
for capital. Germany began in September, 1914;
Austria and Hungary, then Great Britain,
Italy and Eussia followed, with more or less
success. Until the autumn of 1915 France
resorted to short-term loans (bills and
obligations of national defense). Since then,
consolidated loans have followed at more or
less regular intervals. In Germany, AustriaHungary, Italy, and also in the United States,
these consolidation operations have occurred
at a more or less fixed date, usually every six
months. Thus, Germany, Austria and Hungary have each issued eight loans up to the
present time; Italy has issued five, and the
United States is planning the fourth Liberty
loan for this autumn. England and France
have been less regular in this respect. Up to
the present time, each of these two countries
has issued only three large consolidated loans,
the last of which dates back, in Great Britain,
to January, 1917, and to December, 1917, in




NOVEMBER 1,19

IS.

France. Meanwhile, a large short-term debt
has accumulated in these countries, a debt,
which at the end of June, 1918, amounted
to £3T873 million, or 97^ billion francs for
England, and up to the end of last January, to
almost 46 billion francs for France. A fairly
large fraction of this debt, however, has been
contracted abroad.
As a general thing, loans of distant maturities have been placed exclusively at home,
while neutral markets, especially the United
States, have confined themselves to absorbing
short-term treasury securities. Aside from
the Anglo-French loan, which was placed in
New York in the autumn of 1915 and which
has a duration of only five years, no loan on a
fairly long-term basis could be 1issued abroad
since the beginning of hostilities. Each financial market has therefore had to rely upon its own
resources. In spite of the attraction which the
low level of the exchanges has offered, the people of the neutral countries have subscribed
very little to the war loans of the belligerents,
the neutral financial markets having had to
contribute largely to their own needs.
In the statistical exhibit on page 1062 the
reader will find as complete a table as it is possible to construct of the consolidated loans that
have been issued by the principal belligerents
since the beginning of hostilities. In the table
on the following page are shown the rates, the
actual proceeds, the cost of issue, and the
success attained by most of these loans. It
should be noted, however, that in certain
instances the results are provisional and subject to correction.
From August, 1914, to the end of July, 1918,
the debts ot the principal belligerents, including
the British colonies, had increased by 675
billion francs, 225 billions of which, approximately, are charged to the Central Powers and
450 billions to the allies. It is generally conceded that the expenses of the war are appreciably greater for the Entente than for the
Central Powers, a fact which is explained, in
part, by the geographic situation of the former
and by the possibility and the necessity which
confronts them of obtaining supplies from
abroad.
These figures include only a fraction of the
treasury bills issued abroad and do not
comprise all the floating debt contracted at
home, the consolidation of which will have to
be considered sooner or later. For the six
great powers included in our calculations, the
i France, however, issued regularly part of the national defense
certificates on the London market.

NOVEMBER 1,1918.

1061

FEDEKAL RESERVE BULLETIN.

gposs debt per capita has increased from 300
francs before the war to almost 2,000 francs at
the end of July, 1918, the increase by countries
being shown in the table on page 1064. By
way of comparison, we have also indicated the
quite considerable growth of indebtedness of
the several neutral European countries.
The growth of the consolidated and floating
war debt has been especially great in Great
Britain, Germany, and France; the same is true
of the United States since its entry into the
war at the beginning of April, 1917. As has
already been said, the sums, often very important, which have been advanced to the
Allied Governments, must be deducted from
these totals.
So far as the neutral countries are concerned,
the growth of indebtedness has been least in
Spain.
The proceeds of the loans have generally
served to consolidate a more or less important
fraction of the floating debt, contracted in the
form of treasury bills and intended for the
temporary redemption of part of the sums
advanced by the banks of issue. The results
may be seen by studying the balance sheets of
some of these banks (Reichsbank, Bank of
France, etc.) during the period of issue of the
consolidated loans.
On the subject of the form of the loans there
is little to be added to what has already been

said, (see monthly bulletin No. 2197 of the
Societe de Banque Suisse, p. 8). Each
country has followed its own line of conduct,
as in times of peace.
Nowhere has there been recourse to forced
loans. On the contrary, governmental pressure has been exerted everywhere with more
or less discretion, especially in the case of the
army and navy contractors who have contributed largely to the total of the subscriptions. The plan, which was long discussed in
England, of issuing war loans with the lottery
feature attached, has likewise been abandoned.
Certain countries have continued to employ
the types or forms of loan, including the " rente "
type ] used before the war, favoring these types as
on the whole assuring the most favorable yields.
Thus, England and France have continued
to issue loans of the perpetual "rente" type,
terminable by the State after a comparatively
short definite date. On the contrary, Austria
and, in the beginning, Italy, also, adopted the
amortization form of loan, the first of these
countries apparently for reasons of a legal nature. Indeed, in Austria the consolidated debt
was subject to the approval of Parliament. In
the temporary absence of parliamentary regime
the issue of obligations, to be extinguished
at a fairly distant date, was resorted to,
in the hope, probably, of being able to convert
. them into a permanent debt after the war.

[In millions.]
Before the war.
Amount.

Public debt.
Date.

Great Britain.
Australia
Canada
New Zealand..
South Africa..
France
Italy
Russia
United States.
Total.
ir

Last known date.

August, 1914.
June, 1914
March, 1914..
March, 1914..
March, 1914..
July,1914.
June, 1914
January, 1914.
March, 1917...

Foreign
money.

£710
£19
£69
£92
£119 !
fr. 34,188 i
Lire 14,467
Rb. 9,888 i
SI, 208 !

Amount.

Swiss
money.8
Francs.
17,907
479
1,740
2,320
3,001
34,188
14,467
26,369
6,261
106,732

Date.

June, 1918
,
March, 1918
February, 1918..
March, 1917
March, 1916
January, 1918
December, 1917..
September, 1917.
January, 1918...

Foreign
money.

£6,434
£194
£208
£126
£151
fr. 127,050
Lire 34,590
Rb. 49,288
$7,758

Swiss
money.
Francs.
162,275
5,246
3,177
3,808
127,050
34,590
131,436
40,207
512,681

rhe "rente" loan jjrovides merely for annual interest or '-'rente" payments by the Government, containing no stipulation regarding
the retirement of the capital amount of the bond. In the case of a perpetual "rente" loan no dale of redemption is set, the government
reserving the privilege of redeeming the loan in part or in toto at a time when market conditions prove most favorable. At times there is a
provision to the effect that redemption will not be undertaken before a certain future date. [Editor's note.]
2 Foreign moneys have been reduced to Swiss francs on the basis of metallic parity.




1062

FEDEKAL EESERVE BULLETIN.

NOVEMBER 1,1918.

[In millions of francs.]

Country and form of loan.

I. Germany:
(1) 5 per cent Treasury bonds...
5 per cent Imperial debt
(2) 5 per cent Treasury bonds...
5 per cent Imperial debt
(3) 5 per cent Imperial debt
(4) 4fper cent Treasury bonds..
5 per cent Imperial debt
(5) 4£ per cent Treasury bonds.
5 per cent Imperial'debt
(6) 4£ per cent Treasury bonds.
5~per cent Imperial'debt
(7) 42 per cent Treasury bonds.,
5 per cent Imperial debt
(8) 4^'per cent Treasury bonds.,
5 per cent Imperial debt

Issued in—

jSeptcmber, 1914
JFebruary-March, 1915
September, 1915

,

JMarch, 1916

,

Jseptember-October, 1916..
}-March-April, 1917

,

J-September-October, 1917.
JMarch-April, 1918

Total.
II. Austria:
(1) 5} per cent Treasury bonds
(2) 5£ per cent war loan
(3) 5|- per cent war loan
(4) 5-J per cent amortizable loan . .
5| per cent Treasury bonds
(5) 52 per cent amortizable loan . .
5 per cent Treasury bonds...
V
j
(6) 5J per cent amortizable loan . .
of, per cent Treasury bonds....

Amounts Price at
subscribed which
or offered.* issued.

1,234
4,311
958
10,284
15,014
1,941
11,352
1,325
11,826
1,685
14,516
1,609
13,979
1,814
16,416

November, 1914
May, 1915
October-November, 1915.
April-May, 1916
November, 1916-January, 1917.
May-June, 1917

ip
per cent

3 2,311
3 2.823
4 4,414
2,483
2,263
2,126
2,565
2,751
2,698

(

n^

6,346
3

Total
III. Hungary:
(1) 6 per cent debt
(2) 6 per cent debt
5-fper cent debt
(3) 6 per cent debt

6,051

IV. Great Britain:
(1) 3$ per cent first war loan
(2) 1 p
() 4-1 per centsecond war loan
(3) 5" cent tthird war loan
5"per fm imra war l
t hid
loan
4
t thid
l
4 per cent third war loan (ret.)
5 p c , pya
a
(4) National war bonds— 0 p c
5 per cent, payable at 103 per cent
5 per cent, payable at 102 per cent.
5 per cent, payable at 105 per cent
4 per cent, payable at 100 per cent. (rot.)

' May-June, 1917

1,235
604
585
2,085
696
1,354

Total.

5 2,625
5 3,780

June-July, 1918.

97.50
95.25
93.60
93.00
95.50
92.50
96.50
92.50
94.00
92.50
94.50
92.50
96.00

6.15
6.35
6.35
6.25
6.45
6.30
6.40
6.30
6.55
6.30
6.41
6.30
6.90

97.50
97.50
90.80
97.10
97.20
91.90
97.70
96.00
96.00
96.10
91.25
91.50

6.50
6.50
6.05
6.75
6.20
6.90
6.25
6.40
6.28
6.27
6.06
6.05

15,379

November, 1914.
June-July, 1915.
17*™™™ -Ev^i-nonr 1Q17
ipnuaiy-February, 1917
I
Indeterminate maturity on and after
' October, 1917.

Total.
V. France:
(1)5 per cent national defense debt
(2) 5 per cent national defense debt
(3) 4 per cent national defense debt
(4) 5 per cent national defense obligations.,

5.63
5.13
5.30
5.07
5.05
5.25
5.07
5.29
5.10
Dill.
5.10
Diff.
5.10
Diff.
5.10

4 36,347
j
' November, 1914
K,
,q i ,
j/Maj'M{>
j October-November, 1915.

5 2,415

(6) 6 per cent debt
(7)6
^e??e n tdk::::::::::::^
(8) 5£ per cent debt
Total.

97.50
97.50
98.50
98.50
99.00
95.00
98.50
95.00
98.00
98.00
98.00
98.00
98.00
98.00
98.00

108,264

jJNovomber-Deceinber, 1917.
(8)

Yicld.2

8,750
4 14,800
3 52,133
132

20,957

95.00 App.3.95
100.00 App.4.50
95.00 App.5.41
100.00 Ret. 4.00
100.00
100.00
100.00
100.00

App.5.40
App.5.43
App.5.50
Ret. 4.00

7 73,222

December, 1915
October, 1916
December, 1917
Indeterminate maturity..

315,139
88.00
5.68
3
ll,509
88.75
3 14,750
68.60
5.85
520 Variable. 5.60-5.75
4 41,918

VI. England-France:
October, 1915
2,590
98.00
5.45
(1)5 per cent joint loan.
1 Amounts subscribed in foreign money have been reduced to Swiss money on the basis of metallic parity.
2 In the calculations of the actual yield account was had of the premium for par reimbursement at the final date fixed {for reimbursement.
In?the case of "rente" loans, no account could be taken of the period of inconvertibility.
" 3 Including conversion of old loans and Treasury bonds.
4 Not including conversion of old loans and Treasury bills,
s Provisional figures.
s Subscription not yet ended or result not finally known.
' Without the first two loans generally converted.




NOVEMBER 1 , 1 9 1 8 .

1063

FEDEBAL RESERVE BULLETIN.
[In millions of francs.]

Country and form of loan.

VII. Italy:
1) 4-J- per cent loan (military preparation)
2) 4£ per cent national loan
3) 5 per cent national loan
4) 5 per cent consolidated debt
5) 5 per cent consolidated debt
VIII. United States:
(1) 3£ per cent first Liberty loan
t
d Libt l
(2) 4 per cent second Liberty loan
(3) 4£ per cent third Liberty loan
Total
IX. Russia:
(1) 5 per cent interior loan
(2) 5 per cent interior loan0
3) ol per cent interior loan deferred
) l p
4) 52 per c e t interior loan
5? per ce interior loan
5?2
cent n
5) 5£ per cent interior loan*
)
p
ti t i
l
6) 5£ per cent interior loan
7) 5 per cent liberty loan

Issued in—

December, 1914-Januarv, 1915..
July, 1915
:
January-February, 1916
January-February, 1917
January, 1918
May-June, 1917
October, 1917
April-May, 1918

Amounts
subscribed
or offered.

Price at
which
issued.

1,000
1,146
13,014
13,986
i 5,630

97.00
93.95
97.50
90.00
86.50

4.70
4.85
5.18
5.55
5.80

10,360
a 19,730
2 21,612

100.00
100.00
100.00

3.50
4.00
4.25

95.00
94.00
99.00
95.00
95.00
95.00
85.00

5.30
5.35
5.70
6.25
6.25
6.25
5.95

Yield.

2 51,702
October, 1914..
March, 1915...
May, 1915.
December, 1915
April-June, 1916
November, 1916-January, 1917..
April-June, 1917

1 Provisional figures.
Not including conversion of old loans and Treasury bills.

3

1,330
1,330
2,660
2,660
5,320
3 8,000
3 8,533

Subscription not yet ended or result not finally known.

2

With a view to amalgamating the war debt
and the prewar debt and to strengthening public credit, the holders of old loans have often
been accorded the privilege of converting the
latter into new war loans, issued at more
advantageous rates of interest or terms of redemption. These conversion operations carried on in the midst of war have usually been
successful, especially in England.
As was the case in the beginning, most of the
war loans contracted from 1914 to 1918 have
been for an unlimited amount; in other words,
the maximum was not fixed in advance, as the
governments wished to draw as much capital
as possible into the vaults of the treasury.
After a few months, however, a tendency to
abandon this method of procedure is always
noted. For example, the actual amount desired in the last French loan was fixed in advance at 10 billion francs; as the amount subscribed exceeded this figure the large subscriptions were consequently reduced. In the
United States the amount of the first two
Liberty loans was likewise limited; but even
in the second loan half of the subscriptions
which exceeded the amount demanded were
accepted, the small subscribers being likewise
favored and allotted the entire amount subscribed at the time of allotment. On the
other hand, in the last Liberty loan it was announced at the beginning of the issue that all
subscriptions would be fully accepted.
In the course of the last two years the
period of subscription has often been extended.
The fixing of the date of issue has played




only a secondary r61e, as an abundance of
money has continued to reign in all the markets, for well-known reasons, among which we
may mention the inflation of note issues and
the reduction of stocks of raw materials and
merchandise.
The rate of interest upon the loans has
varied from 3J per cent for the first British war
loan and the first American Liberty loan (a
rate which has been abandoned since, in spite of
its initial success) to 5-|, and even 6 per cent.
From the two columns of the table showing the
rate of interest and the actual proceeds from the
various loans a clear idea is obtained of the
diversity of credit which the several governments were able to obtain from their own
citizens and the requirements of the lenders in
each State. Everywhere a gradual and very
considerable increase in the cost of loans may
be rioted. To be sure, this is not the net cost to
the Treasury, for most of the war loans, except
those in France, Italy, and Austria-Hungary
are subject to direct taxation, which has been
greatly increased during the past three years.
In order to make a satisfactory comparison of
the actual proceeds, it would be necessary to
keep account of these taxes, an impracticable
thing, owing to the inequality of the rates
levied according to the amount of available incomes and fortunes. In England and
in different British colonies—Australia and
Canada, for example—the simultaneous issue
of two kinds of loans has been tried, one of them
subject to taxation and the other exempt, the
former carrying a substantially higher rate of
interest.

1064

FEDERAL RESERVE BULLETIN".

NOVEMBER 1 , 1 9 1 8 .

[In millions.]
Before the war.

On last known date.

Amount.

Public debt.
Date.

Foreign
money.

Amount.
Date.

Swiss
valuation. 1

Foreign
money.

Swiss
valuation.^

A. BELLIGERENT STATES.

Entente:
Great Britain
Australia
Canada -.
New Zealand
South African Union
France
Italy
Russia
United States

August, 1914
June, 1914
March, 1914.....
....do
....do
July, 1914
June, 1914
January, 1914
March, 1917

£710
£19
£69
£92
£119
Fr.34,188
_...
Lire 14,467
1 Rb.
$i;208

Total.

Francs.
17,907
479
1,740
2,320
3,001
34,188
14,467
6,261

June, 1918
March, 1918
February, 1918...
March, 1917
March, 1916
January, 1918
December, 1917..
September, 1917.
January, 1918

£6,434
£194
£208
£126
£151
Fr. 127,050
Lire 34,590
Rb. 49,288
$7,758

106,732

Central powers:
Germany
Austria
Hungary

October, 1913
July, 1914
July, 1913

M. 4,891
Kr. 13,029
Kr.6,638

Total

13,682
6,970

Francs.
162,275
4,892
5,246
3,177
3,808
127,050
34,590
131,436
40,207
-

December, 1917 2.
June, 1917
December, 1917 a.

M. 106,605
Kr.55,105
Kr.28,150

512,681
W
131,661
57,866
29,560

26,690

219,087

133,422

Total belligerents

731,768

B. NEUTRAL STATES.

Denmark.

March, 1913
January, 1914
/January, 19142
\January, 1914 s
June. 1914
December, 1913
do

Holland
Norway
Sweden
Switzerland
Total neutrals..

Kr. 361
Pes. 9,785
Fl. 1,148
F1.20
Kr.357
Kr.718
Fr. 146

501
9,785
2,392

41
496
997
146




Kr.583
Pes. 10,298
Fl. 1,609
Fl. 287
Kr.423
Kr. 1,326
Fr. 1,064

14,358

1 Foreign moneys have been reduced to Swiss francs on the basis of metallic parity.
2 Approximately.

The success of this experiment has not wholly
come up to expectations, and it is possible
that, as was the case in Australia, this method
will be abandoned on subsequent occasion.
As for the prices of issue, they can not be
compared, owing to the variety of methods employed. In each country gradual concessions
to the capitalists, who have become more and
more exacting, are made—concessions which
are necessary since the success of the loans
above all must be assured. In order to maintain an apparently reasonable rate of interest,
the price of issue has often been lowered to a
level that would have been unthinkable before
the war.
The detail work of issuing the loans and the
propaganda carried on to assure success have
improved with each new issue.
The forms of the loans have been adapted
to meet the new exigencies of the public. The
number of subscription places has been increased;
in addition to the banks, the post offices, savings banks, etc., have played an increasingly
important part. Payments have been carefully distributed in such a way as to cause

March, 1917
January, 1918
January, 1918 2 . . . .
November, 1917 <..
June, 1916
December, 1917 2..
December, 1917...

811
10,298
3,351
598
587
1,842
1,064
18,551

3 Consolidated debt.
* Floating debt.

a minimum of inconvenience to the money
market, which has been admirably prepared,
months in advance, for each new issue.
Temporary investment in short-term Treasury bills has been popular with the public,
which has thus been able to keep intact the
power of realization, so precious to manufacturers and traders, who are thus able to resume
at any time the activity which has been temporarily restrained by the war. Facilities for
the discounting of this paper have usually
been offered.
Banks of issue, and banks and bankers generally have, moreover, facilitated the purchase
on the installment plan of war obligations and
have granted favorable terms for the pledging
of securities. At times subscribers were permitted to pay certain taxes, among others the
tax on war profits, by means of recently
issued loan securities.
Let us mention, in passing, the part played
by the loan offices in Germany and in AustriaHungary in financing the war. The loans of
these offices were used for subscribing to
the war loans, but in decreasing volume,

NOVEMBER 1,1918.

FEDEEAL EESERVE BULLETIN.

especially in Germany. The War Finance
Corporation, recently established in the United
States with an initial capital of $500,000,000,
furnished wholly by the American Treasury,
will indirectly aid in subscriptions to the war
loans—American industry and trade are, in
fact, sureT of finding in this organization the
capital w hich they need for the development
of their manufactures. This will allow them
to place very important resources at the
disposal of the Treasury. Let us emphasize,
finally, the part played in all countries by the
commercial banks, by the insurance companies,
and by the cooperative associations, all of which
have contributed in a large measure in directing part of their available resources into the
Treasury.
In England and in the United States all possible means have been sought of attracting the
regular flow of small savings of farmers, laborers, and workmen; thus, new loans in the form
of very small denominations have made their
appearance. According to the second annual
report of the National War Savings Committee, recently published for 1917, total subscriptions during the past two years, in the form
of war-savings certificates (redeemable in five
years at par, but issued at los. 6d.), amounted
(exclusive of reimbursements) to £105,771,354,
whichis a very good record. In the United States,
likewise, the act relative to the second war
loan authorized the issue of two billion dollars
of war-savings certificates, maturing in five
years. The first issue was made at the beginning of 1917; at the end of last March the
amount subscribed had reached §150,000,000.
War-savings stamps have also been issued.
Although these issues complicate and add to
the task of the Treasury, it is nevertheless
certain that the propaganda waged by the
thousands of local societies, which have been
organized almost everywhere in order to
accelerate universal investment in these certificates, has helped greatly to foster in the
masses of people the habit of saving (37,840
societies, with four million members, now
exist in the United Kingdom). Elsewhere the
small savings have been attracted simply by
the issue of small demoninations of bonds, and
by facilities for the gradual payment of the
amounts subscribed. In Germany municipal
savings banks have instituted special war-savings obligations, which permit the subscription of very small sums, even in advance. In
short, no means of assuring the success and
the distribution of the war loans have been
overlooked. Everywhere an effort is made for




1065

genuine democratization of the government
securities, as can easily be seen from the enormous number of subscribers. Thus, in 1914
the British debt was concentrated in the
hands of 345,100 holders; at the present time
it is divided among more than 16 J million large
and small holders, of whom 2,228,300 subscribed through the Bank of England to the
war loans, 4,000,000 subscribed through the
post office, and more than 10,500,000 possess
war-savings certificates.
Nevertheless, one notices in the countries
supplying exact, data on this subject—in Germany and Austria, for example—a gradual
change in the way of increasing subscriptions
from large industries and a relative decline of
small subscriptions.
Trouble in regard to the distribution of
securities has led, here and there, to the
extending of more favorable conditions for
registered ("bloques") securities; that is to
say, those entered on the "Grand-Livre de la
Dette"; there has been extensive use of this
privilege in Germany.
Is the distribution of war loans final? We
do not think so; it is certain that large amounts
will come on the market, sooner or later,
when industrial and commercial concerns
which have subscribed liberally to issues, on
long and on short terms, will have to replenish their stocks of merchandise that are almost
entirely exhausted.
In the United States every possible means
has been used to avoid an accumulation of Liberty bonds in the banks, which have other war
functions to fulfill. The idea was to avoid excessive inflation and to save the banks' capacity
of absorption for the Treasury certificates. The
same thing has been done in most other countries.
Nevertheless, in the absence of good discount
paper, the credit organizations of every country are holding a very large portfolio of Treasury securities. On the other hand, savings
banks, insurance companies, cooperative societies, etc., have often absorbed considerable
amounts of the war loans, not without endangering their liquidity.
SUCCESS OF THE LOANS.

Has the success of the loans come up to
expectations and has this success been real ?
One can, on the whole, answer in the affirmative. Nevertheless, although the number of
subscribers has increased greatly, it has
taken a little longer to effect the distribution
of the last loans than of the first issues.

1066

FEDERAL RESERVE BULLETIN-.

NOVEMBER 1,1918.

It is also evident that the distribution is not success. Finally, let us not forget, as other
final, which is explained by the inevitable factors of success, the assistance of the
banks of issue, the active propaganda carried
supersaturation of the financial markets.
How is this ease of absorption to be explained, on by the Treasury, and the support of banks
especially when one recalls the difficulties which and private organizations.
presented themselves before the war, in conTREND OF QUOTATIONS.
nection with issues of amounts which to-day
appear insignificant?
This avalanche of new loans offered under atThe so-called "rentiers," who are suffer- tractive conditions has not left unaffected the
ing from the effects of stationary incomes quotations of the older securities. The following
and the high cost of living, are no longer the tables show the profound changes which have ocprincipal subscribers to the loans; the better curred in the rates of capitalization during the
part of the subscriptions comes from the four years of war. Securities of neutral countries
trades which have benefited, directly or indi- have suffered as much as those of belligerent
rectly, by the war, either on account of their countries. Since the prolongation of hostilities,
products (farmers and manufacturers) or on the loans issued during the first years of the
account of their services (workmen, ship- war have also suffered, and to the extent that
they have not been converted, they are quoted
builders, underwriters, etc.).
Everything has been done to insure success; considerably below their issue prices. But
the financial markets have all been monopo- in order to assure the success of future
lized, with a single aim—to finance the war. operations, it is essential to prevent the rate
The legal-tender quality of notes has been from falling because of lack of demand.
decreed; gold has been concentrated in the
At first nothing was done to check this devaults of the banks of issue; postal and tele- cline. Trusting to the patriotism of the subgraphic censorship has been established; the scribers to the first loans, the Government
exchange markets have been regulated; the considered this distribution final. Moreover,
exportation of gold, notes, securities, and cap- thanks to the facilities of banking accommodaital, in the broad sense of the term, has been tions granted, it was hoped to avoid too many
prohibited; the purciiasing of merchandise not selling orders. But the prolongation of the
essential for supplies or the pursuit of the war war and the higher cost of living, while makhas been reduced. All placing of foreign loans ing capital more exacting, have brought
has been strictly forbidden and foreign securi- about very high rates of interest. There was
ties have been requisitioned. The Allies and hardly any uneasiness at first over this situathe Central Powers have controlled and re- tion, except that the privilege had been extended
stricted public issues (in Germany, even the of converting the first war loans and, in France
loans of the confederated states), transactions and England, also the old " rentes " (2| per cent
of the stock exchange, and speculative activity. consols and 3 per cent " rentes perpetuelles")
In short, available capital really was compelled into new securities, offered at more favorable
to devote itself, in large measure, to war loans and terms. Gradually, however, the expedient of
Treasury bonds, the rates offered by banks for maintaining the average market quotadeposits at sight or on short term on current tion for the securities by means of sinkaccount being greatly reduced, a fact which has ing funds has been resorted to. Thus in
often been due to the intervention of the Treas- their last loan prospectuses, England, France,
ury. The monopolization by the State of im- and the United States set apart certain sums
portant branches of industry has also caused a for the buying of securities below the rate of
marked reduction in the circulatingfunds of pri- issue, special so-called depreciation funds being
vate industries, which had been already reduced created for that purpose. It is quite likely
because of the physical impossibility of re- that this may become the general practice.
plenishing their stocks. The absence of good
In Germany, Austria, Italy, and elsewhere
discount material has increased the plethora of the maintenance of the price of war securities
money, the London market, for example, ordi- after the end of hostilities is being seriously connarily absorbing, partly on foreign account, 10 sidered. One notices in almost all the belligerto 12 billions of francs.
ent countries the formation of powerful finanAfter Government pressure, in all its cial groups which will certainly have an influforms, had contributed to the immediate ence on the consolidation and the final distribusuccess of the first loans, the formation of tion of the war debt during the period of transinew capital assured the continuance of this tion which will follow the end oi hostilities.




NOVEMBER 1,1918.

1067

FEDEEAL EESEBVE BULLETIN
Yield.

Current price.
Stock
Exchange.

Security.

End
of
Dec.

End
of

End
of

End
of

June
1914.

Dec.

1916.

Juno
1917.

Per

Per

Per

Per

1913.

2£ per cent English consols
3 per cent French rente
3 per cent German rente
3£ per cent Italian rente
4 per cent Austrian rente (crowns)
5 per cent Russian debt, 1906"
3 per cent United States (Panama bonds)
Zl per cent Federal Railways. Series A-K

London
Paris
Berlin
Milan
Vienna
Paris
j New York
; Basel

cent.
cent.
cent. ' cent.
71.60 75.00 55.10 51.60
85.40 83.00 61.00 60. 20
76.00 76.75 2 GO. 50 2 66.50
98.90 97.00 83.00 80.55
83.50 82.00 2 75.50 76.50
103.15 102.00 84.00 73. 50
97.50 96. 75 102.00 80.00
89.70 90. 75 78. 05 77.40

End
of
Dec.

1917.

Per
cent.

55.20
58.50
2
70.25
80.70
78.00
55.00
80.00
73. 60

End
of

June
1918.
Per

E n d End E n d End End End
of
01
of
of
of
of
Dec. June Dec. June Dec. June
1913. 1914. 1916. 1917. 1917. 1918.

Per

Per

Per

cent. cent. cent. cent.
55.85 3.49 3.33 4.53
60.55 3.51 3.61 4.91
69.00 3.91 3.91 4.51
80.30 3.53 3.60 4.21
77.00 4.79 4. 87 5.29
49.00 4.84 4 Am 5.95
85.00 3.07 3.10 2.94.
72.15 3 3.90 3.85 4.45

Per
cent.
4.58
4.98
4.51
4.34
5.22
6.80
3.75
4.52

Per Per
cent. cent.
4.47
4.53
4.95
5.13
4.35
4.27
4.35
4.33
5.19
5.12
9.09 10.20
3.52
3.75
4.75 8 4.85

1 Payable in 1956 at latest. The yield is shown without taking account of the premium for par reimbursement.
Officially estimated price, daily quotations not being published.
3 Taking into account the premium for par reimbursement in 1948 at latest, the actual yield stood at 4.15 per cent at the end of 1913, and at 5.45
per cent at the end of June, 1918.
cent at
2

These services had not only to clear their
expenses, but also to aid in the partial
£' To insure the regular maintenance of interest covering of the general deficit. This increase
upon the new loans and to meet the deficits in in rates, which is partially justified by the
trie ordinary budgets, taxes have had to be inevitable increase in the "cost of operation,
altered and increased. It is impossible to has been almost entirely borne by commerce
give, in the restricted limits of this article, and industry. Will the day come when it
even an incomplete idea of the principal fiscal will be possible to consider a gradual and salumeasures passed in all the countries to meet tary reduction of these new taxes, which are a
the direct and indirect costs of the war. We part of the high cost of living? Most of the
must confine ourselves to a few generalities.
taxes and duties existing in all the countries
Never has the task of the financial ministers have also been altered, and new taxes have,
been more ungrateful! It is no longer a moreover, been instituted. Finally, everywhere,
question of voting a tax, or even a series of in France and England especialty, stringent,
taxes; everywhere a fundamental financial even drastic, measures have been taken against
reorganization becomes imperative, at a time financial fraud and the evasion of capital.
when the economic and financial organism is
It has been attempted, not always with
visibly weakened.
complete success, to maintain a fixed ratio
Great Britain and the United States, in ac- between the direct and indirect taxes, but the balcordance with traditions which have been ance leans in favor of the direct taxes which are
tested in former wars, have succeeded in meet- more immediately productive. Often the taxes
ing a quite considerable part of their war debt on incomes, property, inheritances—in short,
by resorting to taxation. The income tax, for most of the taxes affecting wealth—have
example, has shown remarkable elasticity. reached a level where the formation of new
In most other countries, Italy particularly, capital becomes impaired, which is a great
new interest charges, pensions, etc., have been economic mistake.
covered, simply by tne creation of permanent
Among the ne\y financial measures gradresources, which is already a great step in ually adopted, in imitation of Great Britain,
advance. The means for amortization of the by all the belligerents and even by a number
war debt will be considered later.
of the neutral countries, let us mention, as
Given the enormous extent of the needs, it the most productive, the excess profits duty.
is difficult to find, among the numerous This tax, which was originally 50 per cent,
fiscal systems, those which least embarrass and has been raised to 60 and 70 per cent, and
interfere with economic life.
has finally reached 80 per cent in certain
Everywhere effort has been made to increase countries (Great Britain, France, etc.). Thus,
the revenue from the public services by raising the concerns subject to this tax, which are
very appreciably the postal rates and those of the evidently deriving great profits from the
telegraph and telephone, also of the railroads, war, must return four-fifths of these profits to
wherever the latter are under national control.1 the Treasury, allowance being made for
the usual and unusual write oils permitted
i In England and the United States the governments have assumed
control of the railroads for the duration of the war.
by law. In England this tax has yielded




TAXATION.

1068

FEDEKAL RESEEVE BULLETIN.

£220,215,000 during the fiscal year 1917-18.
It is worth mentioning that, in his last address
introducing the 1918-19 budget, the British
Chancellor of the Exchequer justified the
maintenance of the rate of this tax at 80 per
cent, declaring that any new increase would
call forth fiscal evasion, at the same time hampering the industrial development so indispensable for carrying on the conflict in which
the nation was engaged.
Let us add that this tax should be looked
upon merely as a temporary resource of the
Treasury, destined to disappear with a return
to even slightly normal conditions. After
the war, whether they will or no, it will be
necessary to devise other sources of revenue
to balance the budget.
In the class of indirect taxes let us mention,
in the first place, the increases in the rates of
excise and tariff duties placed on the consumption and importation of numerous articles
which are not considered as necessaries (tea,
coffee, cocoa, chocolate, objects of luxury,
etc.). In addition, beverages have been
heavily taxed (alcoholic drinks, wines, beer,
etc.). The taxes to which transactions of
all kinds are subjected (securities, documents,
receipts, commercial paper and checks) have
been generally increased, more or less.
England, for example, has abandoned penny
postage and has doubled the tax on checks
(2d. vs. Id.). Not only goods, but services,
have been taxed; some countries have even
gone so far as to tax the interest paid by the
banks to depositors on current accounts.
As a financial innovation the war has
caused the creation, in France, Great Britain,
Germany and Italy, of a tax applied to socalled articles of luxury. It is possible that
this will furnish a very good source of revenue,
the use of which will later become general,
in spite of the inconveniences which attend
at, especially in countries like France and
Switzerland, where the manufacture of luxuries has attained great importance. Moreover, the formation of a list of articles subject
to this tax is a very delicate task. In general,
the list includes, at the present time, precious
stones and metals, jewelry and gold and silver
ware, perfumes, touring cars, pianos, certain
works of art, furs, tapestries, etc. Probably
this list will lengthen as financial needs increase.
The luxury tax has been supplemented by a
consumption tax in hotels and so-called
luxurious establishments.




NOVEMBER 1,

1918.

In Germany the financial task of the
Imperial Government is complicated by the
fact that direct taxation is the prerogative of
the Confederated States.
Up to the present there has been little
recourse to monopolies, a fact which is
explained by the long preparatory study
which each new monopoly demands. Moreover, the returns are not so sure and prompt
as those from taxation.
Following is the balance sheet, a very
approximate estimate and given with all reserve
of the cost of the war and the debts contracted by the principal belligerent countries
from the end of December, 1916, to the end
of July, 1918:
[In millions of francs.]

Estimates.

I. Cost of the war
Military expenses, properly speaking
II. Meeting the war expenses:
Consolidated debt '2.
Floating debt
Tofal
Taxes ;J
Advances by banks of issue
Commercial and exchange credits
Interallied advances, allowing for duplication ..

Aug.,
Aug.,
19141914July,
Dec,
1916 (29 1918 (48
months). months).
375 385
325-330

i 850-875
i 650-660

152-155
130-135

455-460
215-220

282-290
S- 10
40- 45
5- 10
25- 30

670-680
15- 20
75- 80
35- 55
oi)- 60

i The great difference between the two totals will increase with the
prolongation of hostilities and is explained by the fact that wo have kept
account, in the cost of the war, of the interest on the so-called war debt.
2Exclusive of conversions.
3
To tho extent that the proceeds from these taxes were used to meet
war expenses, properly speaking, and not to meet the supplementary
interest charges.

To sum up, it may be said that, up to the
present, thanks to the many forms which appeals for credit have assumed, the financing of
the war has been accomplished. The experience of all countries goes to prove that both
productive power and resources have exceeded
all expectations. The loans at home have been
easily subscribed, owing to the abundance of
paper and the monopolization of the financial
market for the needs of the Government.
Abroad, different countries have obtained commercial and exchange credits upon rather easy
terms (the allies, especially, since the entry
of the United States into the war), without
which they could not have provided for their
war needs. All the great belligerents, except
Russia, have been able, up to now, to meet
the charges on their new debts.
But this absolutely abnormal financial mobilization has produced some bad results. The

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

banks of issue, which have had to make considerable advances to the treasuries, have swamped
the countries with their notes to such a degree
that for ye ars to come they will be subj ect to legalten der circulation. The p erni cious influence .of
inflation on the price of goods is patent. The
floating debt, the credits opened, and the international obligations, suspended before and
during the war, have reached in the course of
the last four years a stage much more dangerous because having been, in part, contracted
abroad, their consolidation will become necessary at a time when commerce and industry will require considerable capital. By bleeding acquired wealth white, it became possible
through new taxes, and the raising of the
old taxes to meet the new demands of the
budget resulting from the war. Finally, a
good share of the war expenses has been covered by means of money advanced at very low
rates by the banks of issue; when it is consolidated, granted that it can be, this money will
cost a gpeat deal more.
The formation of new capital is slackened, if
not stopped; in certain countries they speak
openly of conscription of capital.
It is most likely that the end of the war,
from a financial point of view, will mark the
advent of a painful era of transition and liquidation. Unusual measures will be inevitable,
if inflation is to be reduced. Must wo despair
of the future, expect universal impoverishment
and general bankruptcy ? This will depend almost entirely on political and economic readjustment.
The war has destroyed only a part of people's
wealth; in certain countries this wealth even
remains intact; in others, it is simply displaced. But what does all this diminution of
material things amount to when compared with
the loss of the combatants, mowed down in
battle or stricken by disease?
EXPLANATION OF WAR LOAN SUMMARY CHART
ON PAGES 1070 AND 1071.
DATES OP LOANS.—The dates of the loans are, as far as

it has been possible to determine, those from which tho
first regular'
ments and
erably in
^,
%
example, some of the British, German, Indian, New Zealand, and Australian loans.
OPTIONAL REDEMPTION DATES.—The chart shows the

earliest dates, if any, on or after which the loans may bo
redeemed in whole or in part.
DUE DATES.—In many loans, notably those of France
and some of the Hungarian, Italian, and German, no maturity dates are fixed,"nor do the Governments specifically
obligate themselves to redeem the loans, but merely reserve the right of redemption on or after certain dates;
The German word "unkundbar" referred to in the resume




1069

of the German loans his caused considerable discussion
even in Germany. The fairest interpretation of the meaning of this word appears to leave the German Government
with the right to make the 5 per cent bonds perpetual or
defer payment of principal to any future date best suited
to the convenience} of the Government.
ISSUE PRICE.—The treatment of interest in connection

with the issue price divides itself into three main classes,
as follows:
1. Issue price with accrued interest added to payments
made after'the interest bearing date. This class includes
most of the war loans contained herein, namely, ail loans
of the United States, Italy, Franco, Holland, Russia, first
three Austrian, second, fourth, fifth, seventh, and eighth
Swiss and the first German war loan.
2. Issue price without accrued interest in two classes:
(a) Payments made without accrued interest after the
interest bearing date, resulting in an interest bonus. In
this class are included all Canadian, the first three Australian, and the second British war loans.
(6) Payments of interest on payments made before the
interest bearing date, as in the first and third .British,
fourth, fifth, and sixth Australian, second ]STew Zealand
and Indian war loans.
3. Price discounted or reduced instead of paying interest
on payments made before the interest bearing date, which
includes the fourth Austrian and the third and sixth Swiss
and all German loans except the first.
A variation from the above methods is furnished by the
first and second Hungarian and first Swiss loans, where
subscriptions paid by installments subsequent to the interest-bearing dates wore without accrued interest, but the
issue prices for installment allotments were higher than for
fully paid allotments. In reality this practice was only another way of charging accrued interest on payments made
after the interest-bearing dates.
YIELDS.—All interest yields are calculated on a semiannual basis from the time tho loans are dated to the maturity dates where fixed, and where not fixed the loans are
assumed to be perpetual and consequently are figured on
a stock yield basis" These latter yields are designated by
the letter '' P " on the chart. An exception has been made
in the case of bonds of the German war loans which do not
have fixed maturity dates, but whose yields are nevertheless figured on the assumption that redemption will take
place October 1, 1921. If these loans were treated as perpetual the yields would be slightly less than those shown
on the chart. Yields designated by the letter " S " are
average yields for loans issued in series and having definite
dates "of redemption. The 4J per cent treasury certificates
of the sixth, seVcnth and eighth German loans are considered as wholly redeemable at their ultimate maturity
date at 110, although provision was made for yearly redemptions by drawings.
Some of the loans issued at 100 show yields greater than
the coupon rate. In these loans, which include the second
British, all Canadian and Australian loans, subscribers
were given an interest bonus, which reduced the cost to a
little below par.
AMOUNTS.—-The total amounts subscribed to the different war loans included in many cases conversions from previous long term war loans issued during the course of the
present war, as well as conversions from long-term loans
issued prior to 1914. That tho amounts subscribed might
be comparable as between the loans of the different
nations, such conversions have been deducted from the
totals where possible to obtain data. In the cases of Great
Britain, France, arid Italy conversions from relatively short-,
term issues, such as the exchequer bonds of Great Britain,
the national defense obligations of France, and Treasury
bonds of Italy, have also been deducted. It is debatable

I I . INTERNAL WAR LOAN SUMMARY CHART.1
Issue
Interest price, Approxi!
mate
rate. per cent. yield.

Country.

Dated.

3.50
4.00
4.25
3.91

i
i

95.00
100.00
100.00
95.00
100.00

4.00 Mar. 1,1915
4.57 June 1,1915
4.00 Apr. 15,1917
5.34 June 1,1917
4.00 Purchase date.

Do...
Do...
Do...
Do.5..

..do
..do
do
War-saving certificates..

100.00
100.00
100.00
77.50

5.35
5.36
5.38
5.16

France
Do
Do.c
Do. 7.

First war loan
Second war loan..
Third war loan...
National defense bonds..

88.00
88.75
68.60
96.50

Do...
Russia...
Do...
Do...
Do.
Do.
Do.
Do. •
Italy
Do
Do
Do 6
Do.
Canada
Do
Do
Do
Do
Do
Do. 8
Australia
Do
Do
Do
Do 6
Do.
Do
Do
New Zealand
Do

do
First war loan
Second war loan
Third war loan
Fourth war loan
Fifth war loan
: Seventh war loan
Sixth war loan.
j Mobilization loan
I First war loan
! Second war loan.
! Third war loan...
i Fourth war loan.
First war loan...
Second war loan..
Third war loan
!
Fourth war loan
j
!
do
i
do
j War-savings certificates.
First war loan
Second war loan
Third war loan
! Fourth war loan
! Fifth war loan
i Sixth war loan
!
do
; War-savings certificates.
First war loan
Second war loan

100.00
94.00
94.00
99.00
95.00
95.00
95.00
85.00
97
93
95
97.50
90
86.50
97.50
97.50
96
100
100
100
8G
100
100
100
100
100
100
100
87.50
100
100

Do
India •
Do
Do..
Do

i War-savings certificates.
War loan
War bonds
.do.
I Post office five-year cer! tificates.

80
95
100
100
77.50

First Liberty Loan
Second Liberty Loan
Third Liberty" Loan
War-savings stamps

Great Britain... First war loan
Do
Second war loan
Do
j Third war loan
Do
i
do
Do.4
! National war bonds




I
i
:
!.

Juno
Nov.
May
Jan.

....do
do
...do........
do

Po.68 Nov. 16,1915
P 5.63 Aug. 16,1916
P5.83 Dec. 16.1917
5.60 Purchase date
5.58
5.34
5.35
5.70
5.19
6.17
6.17
6.17
5.93
4.71
4.99
4.85
5.18
P 5.55
P 5.78
5.49
5.30
5.40
5.81
5.68
5.61
5.08
4.70
4.68
4.67
4.70

4.67
4,69
5.19
4.50
4.50
4.50

Due.

Amount
allotted
Su bscription period. against cash
subscriptions.'

O
Ratio sub- Amount
per
scribers to
population, capita.

Number
of subscribers.

§2,000,000,000 4,500,000 ! l t o 23.3
May 14-Juno 15
9,600,000 I l t o 10.9
3,808,766,150
Oct. 1-0ct. 27
4,170,019,050 17,000,000 i 1 to 6.2
Apr. 6-May4
242,204,760
Continuously from
Dec. 3,1917.
1,703,000.000
100,000 i l t o 453.7
Mar. 1,1925 Mar. 1,1928 Nov. 17-Nov. 24
2,883,000; 000 1,100,000 I 1 to 41.2
Doc. 1,1925 Dec. 1,1945 June 21-July 10
Oct. 15,1929 Oct. 15,1942 Jan. 11-Feb. 16
}l, 811,000,000 5,289,000 ! l t o 8.6
June 1.1929 June 1,1947
do
None. Oct. 1,1927 Continuously from
Oct. 2, 1917.
3,373,457,000
None. Oct. 1,1922
do
None. Oct. 1,1924
do
None. Oct. 1,1927
do
712,912,000
None.
Five years. Continuously from
Feb., 1916.
1,894,000,000 3,133,489 i l t o 12.6
Jan. 31,1931
Not fixed.
Nov. 25-Dec. 15
1,981,000,000 3,100,000 ; l t o 12.8
Oct.5-Oct.29
Nov. 31,1931 . . . . d o
2,914,000,000
Nov. 26-Dec. 16
Jan. 1, 1943
do
(Continuously from
Feb. 16,1920
t Feb. 25,1915
19,300,000
/Continuously from
None. Five years . . . \ Mar. 1,1917
257,000,000
Mar. 14,1925 Sept. 14,1965 Nov.6-Nov. 7
257,000,000
Mar. 14,1965 Mar. 5-Mar. 15
do
/May 14,1921- >Mayl6-May29
515,000,000
May 14,1927 \ 1996
515,000,000
None. Nov. 14,1925 j Nov. 18-Dec. 3
1,029,000,000
None. Feb. 14,1926 Mar. 21-May26
1,544,000,000
Oct. 14,1926 Nov. 2-Feb". 3
None.
2,058,000,000
Mar. 29,1927 Mar. 29,1971 Apr. 19-June 14
135,627 1 to 270.0
193,000,000
Jan. 1,1925 Jan. 1,1940 Jan. 4-Jan. 11
245,414 l t o 149.0
221,000,000
July 1-July 18
do
do
473,000,000
489,500 I l t o 74.7
Jan. 1,1926 Jan. 1,1941 Jan. 10-Feb. 10....
500,000,000
Not fixed. Feb. 5-Fob. 2 5 . . . .
Dec. 1,1931
1,158,000,000
Dec. 31,1931
Not fixed. Jan. 15-Mar. 10....
100,000,000
24,862 ! l t o 327.0
None. Dec. 1,1925 Nov. 22-Nov. 30...
100,000,000
34,526 ! l t o 236.0
None. Oct. 1,1931 Sept. 12-Sept. 2 3 . .
150,000,000
40,800 ! l t o 199.0
None. Mar. 1,1937 Mar. 12-Mar. 2 3 . . .
None. Dec. 1,1922 Nov. 12-Dcc. 1
820,000 i l t o 9.9
r 400,000,000
None. Dec. 1,1927
do
None. Dec. 1,1937
do
., ...
None. Three years.
12,226,340
None. Dec. 15,1925 July 24-Aug. 31
18,748 l t o 262.0
65,000,000
None.
28,945 1 to 169.5
105,000,000
Dec. 1-Jan. 31
do
None. . . . . d o
102,042 l t o 48.1
115,000,000
June 1-Aug. 1
l t o 73.2
Dec. 23-Apr. 2
104,000,000
None.
do
216,965 l t o 22.6
99,000,000
None. Dec. 15,1927 Sept. 15-Nov. 2
Feb. 18-Apr. 10
None. . . . . d o
185,000,000
do
None. . . . . d o
None. Three years.
38,932,000
Sept. 1,1930 Sept. 1,1941 August, 1916
58,398,000
None. Nov. 15,1938 August and September, 1917.
Five years.
None.
Aug. 15,1929 Aug. 15,1947 Mar. 15-June 15
do
None. Aug. 15,1920
do
171,000,000
None. Aug. 15,1922
None.
Five years. $ Continuously from
^ Apr. 1,1917.

15,1917 June 15,1932 June 15,1947
15,1917 Nov. 15,1927 Nov. 15,1942
None. Sept. 15,1928
9,1918
None. Jan. 1,1923
2,1918

100.00
100.00
100.00
82.40

United States...
Do
Do
Do.3

Optional
redemption
date.

©

do
Sept. 14,1914
Mar. 14,1915
"May 14,1915
Nov. 14,1915
Feb. 14,1916
Oct. 14,1916
Mar. 29,1917
Jan. 1,1915
[July 1,1915
Jan. 1,1916
Jan. 1,1917
Jan. 1,1918
Dec. 1,1915
Oct. 1,1916
Mar. 1,1917
Dec. 1,1917
do
do
June 15,1915
Dec. 15,1915
June 15,1916
/June 15,1917
\Dec. 15,1917
June 15,1917
Dec. 15,1917
do
Purchase date.
Sept. 1,1916
Sept. 2,1917

4.50 Purchase date.
5.34 Aug. 15,1917
5.50
do
,
5.50
do
5.16 P u r c h a s e
date.

i

S19.0
36.3
39.7
2.3
37.5
63.5
10G.0
74.4

15.7
47.8
50.0
73.6
.5
1.4
1.4

2.8
2.8
5.6
8.5
11.3
5.3
6.0
12.9
13.7
31.7
12.3
12.3
18.4
49.2
1.5
13.3
21.4
23.4
21.2
20.2
37.7
33.5
50.3

0.7

Germany
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do*
Do
Austria
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Hungary
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Switzerland
Do
Do
Do
Do
Do
Do
Do..
Holland.
Do..
Do..
Do..
Spain...




First war loan.,
.do..
Second war Joan
j
.do.
Third war loan
i
Fourth war loan
j
do
•
Fifth war loan
•
.do.
Sixth war loan.
.do.
Seventh war lean.
.do.
Eighth war loan.,
.do
First war loan
j
Second war loan
\
Third war loan
Fourth war loan
!
do
!
Fifth war loan
|
do
Sixth war loan.
do.
Seventh war loan
do
First war loan
Second war loan
Second war loan
! Third war loan
i Fourth war loan
!
Fourth war loan
Fifth war loan
i Fifth war loan
Sixth war loan
i Seventh war loan
Seventh war loan
i First mobilization loan..
Second mobilization loan
Third mobilization loan.
Fourth mobilization loan
Filth mobilization loan..
Sixth mobilization loan..
Seventh mobilization
loan.
Eighth mobilization loan
First mobilization loan..
Second mobilization loan
Third mobilization loan
Fourth mobilization loan
Consolidated loan

97.50
97. 50
98.50
98.50
09
95
9S. 50
95

5
5
4-J4l

I
5

t

98
9S
98
98
97.50
95.25
93.60
95.50
93
96.50
92.50
94
92.50
93
91
97.50
91.20
98.00
98.00
91.90
97.20
96.25
98.00
96.00
91. 25
96.10
99.00
100.00
96. 50
97.50
97.00
90.00
96.00
100.00
100.00
100- 00
97.00
100.00
90.00

S5.59
5.32
S 5.29
5.20
5.15
S 5.11
5.22
S 5.14
5.31
4.66
5.33
4.66
5.37
4.66
5.38
6.02
6.M
6.16
6.30
5.96
6.16
6.00
6.82
6.00
6.59
6.08
6.51
6.72
6.41
P 6.12
6.62
P 6.17
5.77
P 6.12
P 6.25
P 6.03
P 6.25
5.45
5.00
4.70
5.07
4.88
4.87
4.85
5.00
5.00
4.50
4.15
4.50
5.60

1917
1,1917
1.1918
26.1914
1,1914
30.1915
15.1916
15.1916
30', 1917
30.1917

1.1922
1,1925
1,1922
None.
Dee. 1,1919
Sept. 30,192G
None.
None.
Dee. 31,1925
Dec. 31,1925

Serial to 1920. Sept. 10-Sept. 1 9 . . .
Not fixed.
do
Serial to 1922 Feb. 27-Mar. 19
Not fixed.
do
Not fixed. Sept. 4-Scpt. 22
Serial to 1932 Mar. 1-Mar. 22
Not fixed.
do
Serial to 1932. Sept. d-Oct.5
Not fixed.
do
July 1.1967 Mar. 15-Apr. 10
Not fixed. I
do
July 1,1967 | Sept. 19-Oct. 18
Not fixed. I
do
July 1,1967 | Mar. 18-Apr. 18
Not fixed. I
do
Apr. 1,1920 ! Nov. 12-Nov. 24
May 1,1925 ! May8-May 29
Oct. 1,1930 i Oct. 7-Nov. 6
June 1,1923 i Apr. 17-May 15
do
June 1)1956 '1
June 1,1923 Nov. 20-Jan. 11
1956. I:....do
May 1,1927' j May 10-June 8
1957
do
Aug., 1926 ! Nov. 3-Dee. 2
' 1957
do
Not fixed. Nov. 16-Nov. 23
Not fixed.
12Not fixed. Maydo May 26
Not fixed.
Oct. 17-Nov. 17
June 1,1926
Not fixed. Apr. 20-May 23
1922-1942 .--"-.do
Not fixed. Nov. and Dec, 1916.
do
Not fixed.
Not fixed. May 12-June 26
Nov. 15-Dec. 31
Not fixed.
do
Feb. 26,1917
Dec. 1,1934 Aus. 20
Sept. 30,1955 Nov. 2-Nov. 9
Feb. 15,3921 July 16-July 23
July 15,1926 Feb. l-Fob.9
June 30,1932 June 27-July 4
June 30,1934 Jan. 22-Jan. 30
June 26-July 4

J a n . 31,1918
F e b . 1,1915
May l, 1916
Feb\ 1,1917
Feb. 1,1918
May 15,1917

Jan. 31,1928
Jan. 1,1918
Any time.
Any time.
Any time.
Drawings.

Jan. 31,1948
Dec. 31,1929
May 1,1941
Feb. 1,1944
Feb. 1,1958
May 15,1967

None.
Oct. 1,1914
Oct. 1.1924
do
None.
July 1,1915
!
Oct. 1,1924
do
Apr. 1,1916 ;:
do
July
1,1916 !
None.
do
I Oct. 1,1024
None.
Jan.
1,1917 !
do
Oct. 1,1924
1,1927
Julv
1,1917 July
Oct. 1,192-1
....'.do
Jan.
1,1918 July 1,1927
Apr. 1,1918 ! Oct. 1,1924
July 1,1918 i July 1,1927
1,1924
do
| Oct. _,__
Any time.
Nov. 1,1914 j
Any time.
May 1,1915 !
Any time.
Oct. 1,1915 •
'
None.
June 1,1916 |
do
I June 1,1926
None.
Dec.
1,1916 ;
1922
do
I
Any time.
May 1,1917
1923
Apr. 1,1917
Any t i m e .
1923
Nov. 1,1914
Any time.
Any t i m e .
June 1,1915
Any t i m e .
May 1,1915
1915 May 1,1921
.None.
1916
1916 Nov. 1,1921

None.
Dee.
Feb.
Aug.
Dec.
Sept.
Feb.
July
June
Juno

Aug.
June
Aug.

1
From National City Bank Monograph on "War loans of belligerent countries."
2 Cash includes short-term obligations converted. See explanation of chart.
8
Sales to May 27,1918, as computed by the War-Savings Committee.
* Sales to May 4,1918, as reported by the London Statist.
* Amount realized to May 4,1918, as reported by the London Statist.

Jan.7-Jan.16...
Jan. 2-Jan. 11...
Mar. 27-Mar. 29.
Jan. 2-Jan. 4
Jan. 2-Jan. 4
Mar. 31,1917....

| l , 067,000,000

1,177,235

l t o 58

15.7

^2,169,000,000
2,897,000,000
\2,565,000,000

2,694,063
3,966,418
5,279,645

l t o 25
1 to 17
l t o 13 j

32.0
42.7
37.8

f2,549,000,000

3,810,696

l t o 18 |

37.5

1,042,000,000

7,063,300

lto

•3,005,000,000

5,213,003

1 to 13

•3.520,000,000

6,510,278

l t o 10

9.6 j

44.8

i

44.2

446,000,000
545,000,000
852,000.000
• 916,000,000
905,000,000
•1,073,000,000

51.9
15.3
18.7
29.2
31.4
31.0

}l,177,000,000

36.7
40.3

238,000,000
229,000,000
402,000,000
405,000,000

11.4
11.0
19.2
19.4

466,000,000
506,000,000

22.3
24.3

5,790,000
9,650,000
19,300,000
19,300,000
19,300,000
19,300,000
19,300,000
28,950,000
111,000,000
50,250,000
50,250,000
201,000,000
195,000,000

296,134 I 1 to

16,662 | 1 to 233
28,295 ! 1 to 137
"24," 496"
21,283
25,968
23:681
31,601 ;

"lto US
1 to 182
1 to 149
1 to 164
l t o 123

6
Amount of subscriptions shown are not final.
' Amount outstanding on Dec. 31,1917, as estimated by Minister of Finance.
s Sales to Dec. 1,1917, as officially reported.
c
Amount of subscriptions to Feb. 28,1918, as officially reported.

1.5
2.5
5.0
5.0
5.0
5.0
5.0
7.5
17.2
•I 7.8
py 7.8
* 31.3
f 9.6

1072

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

whether conversions of some of these relatively short-term
issues should not be included, because in cases where the
issues had either matured or were about to mature their
conversion into long-term loans practically amounted to
refunding operations which if not effected would have involved payments in cash. These conversions might logically be considered as the equivalent of new money. However, as there were relatively only small amounts which
had matured and as exact information regarding them is
somewhat meager, it has been thought advisable to deduct
all conversions of these relatively short-term issues from
the loan totals. Conversions of temporary short-term
Treasury obligations with maturities of one year or less,
such as the British treasury bills the French national
defense notes, United States certificates of indebtedness,
etc., may be considered quite correctly as new money.
Such conversions have therefore been, included in the
total. Complete information regarding conversions into
the third French loan and the last Italian loan is not
available and the totals given include conversions, which
in the case of the last Italian consolidated loan were with-

out doubt considerable. The first five German loans
did not provide for conversions from previous war loans
or other Government obligations except treasury bills.
The sixth, seventh and eighth German loans did provide
for conversions, but in the absence of reliable data the
figures shown are those given out in press dispatches
emanating from German sources and may or may not include conversions.
Of the six Australian loans, only the last one provided
for conversion frpm previous long term issues. The amount
shown as subscribed to the sixth loan is not final and conversions have not been deducted. There is doubt as to the
amount of new money subscribed to the Austrian and Hungarian loans, and the amounts shown are those reported
in various press dispatches and may or may not include
conversions from previous issues. • Only two of the Russian
loans included a conversion privilege from preceding longterm loans.
In every case, as far as it has been possible to determine,
the par value of amounts issued against cash subscriptions
and conversions of short-term securities has been given.

III. RECENT ESTIMATES OF WAR DEBTS OF PRINCIPAL EUROPEAN COUNTRIES.

GREAT BRITAIN.
According to the London Economist (Sept. 28, 1918, p. 390) the national debt of the
United Kingdom shows the following growth since August 1, 1914:
[In millions of pounds].

Aug. 1,
1914.
Funded debt .
Term annuities
Unfunded debt:
3?,- per cent war stock
4*- per cent war stock
4 "and 5 per cent war stock
National war bonds
Treasury bills.
Exchequer bonds
War savings certificates
War expenditure certificates
Other debt
American loan
Temporary advances

580. 7
29.6

Mar. 31,
1915.

Mar. 31,
1916.

Mar. 31,
1917.

Mar. 31,
1918.

Change
Sept. 21,
since Aug. 1.
1918.
1914,

318.5
26.1

317.8
24.0

317.8
24.0

317.8
24.0

349.1

15.5
20.5

583.3
28.0

62.8
900.0

62.7
20.0
1,962.4

77.2
07.4

566.8
177.0
1.4
9.2
51.4
19.9

463.7
320.3
74.5
23.6
316.5
51.4
217.5

62.7
20.0
2,073.0
614.2
972.6
414.6
136.7
22.9
936.9
51.4
192.2

62.7
20.0
2,034.4
1,085.1
1,093.2
415.3
180.4
7.4
1,189.2
51.4
328.8

+W62.7
+
20.0
+2,034.4
+1,085.1
+1,077.7
+ 394.8
+ 180.4
+
7.4
+1,189.2
+
51.4
+ 327.8

1.0

-

268.9
56

653.3
Other capital liabilities
Total liabilities

1,105.0

2,133.1

3,854.4

5,839.0

6,809.7

+6,156.4

57.2
710.5

57.0
1,162.0

56.7
2,189.8

52.2
3,906.6

51.2
5,890.2

51.0
6,860.7

6.2
+6,150.2

Of the total war-time expenditure of
£8,268,332,809, according to the Economist,
£2,119,214,607, or 25.6 per cent, was met by
revenue and £6,149,118,202, or 74.4 per cent,
by net borrowings. Expenditures include advances of the British Government to allies and
dominions, which according to official announcement (see London Statist, Aug. 3, 1918, p. 175)
by the end of July, 1918, had reached a total of
£1,610,500,000, composed of £1,275,500,000
advanced to the allies, of £208,000,000 advanced to dominions, and £126,500,000 of
accrued interest, etc.




Loans to allies show the following distribution:
Russia
£568,000,000
France
402, 000,000
Italy
313,000,000
Belgium, Serbia, Roumania, and Greece...
119, 000,000
1, 402, 500,000

For the financial year 1918-19 it is estimated
loans to allies will increase by £300,000,000
and loans to dominions by £50,000,000.

1073

FEDERAL RESERVE BULLETIN.

Combining this amount with the total war
obligations contracted by the GoYcrnment at
home and abroad the Economiste Europeen
obtains a total national indebtedness on
August 31, 1918, of 130.127 million francs, or of
§25,115,000,000. Of this total 104,412 million
francs represent amounts of war loans raised
by the Government. To this total should be
added about 22 billions revenue receipts proper
for the war period August 1, 1914, to August 31,
1918. This would give about 126,412 millions, which is about 80 per cent of the total
credits voted to the Government for the
period.

FRANCE.

According to the Economiste Europeen (Oct.
4, 1918) credits to the Government voted by
the French Chambers for the current year aggregate 53,355 million francs. This amount,
added to the total credits granted for the period
August 1, 1914, to the end of 1917 (as shown in
the April number), 104,412 millions, makes
a total of 157,767 million francs. It is estimated that actual disbursements of the Government were about 20 per cent less than the
expenditures authorized. The French publication gives the following main reasons of the
progressive increase of the war expenses:
ITALY.
1. Increase in the number of the mobilized
troops.
Details of the public debt on June 30, 1918,
2. Intensification in the production of in continuation of similar figures as at Decemarticles for war purposes, viz, munitions, ber 31, 1917, together with interest rates are
armament, clothing, equipment, etc.
given below. It should be noted that Italian
\*-$ 3. General rise in the prices of articles neces-public debt obligations are largely of the persary for the feeding of the troops and of the raw petual "rente" class, providing merely for the
materials used in the war industries.
payment of annual interest. The capital
4. Increases of subventions to the families of amounts given represent therefore largely capimobilized soldiers, of pay to combatants, of talized interest in accordance with prevailing
salaries of the various classes of state employees rates of interest.
etc., caused largely by the high cost of living.
5. Progressive increase of the interest on the
Capital
Rente or
public debt and foreign exchange charges.
amount.
interest.
Government borrowings since the outbreak of
the war to August 31, 1918, are classed as I. Debt administered by the public debt
service.
follows:
a Domestic:
Million francs.
Funded loans
32,187
National defense Treasury bills
26,453
Short-term bonds
679
Advances of the Bank of France and the Bank
of Algeria
19, 415
Total

78,734

b Foreign:
Loans contracted in—
1
England
United States
Argentina
Spain
Japan
Switzerland
Holland -N or way-Sweden
Total

12,553
11, 887
471
326
197
97
147
25,678

At the beginning of 1914 the French consolidated public debt stood at 28,776 million francs,
which through gradual conversion into or
exchange for war obligations bearing higher
interest rates was reduced to 25.715 millions.




88521—18

5

Public debt inscribed in the "Gran
Libro" on June 30, 1918:
(a) Consolidated d e b t Lire.
Rentes 3& per cent net, 1906 (ex
3} per cent net)
8,097,712,038
Rentes 3 per cent
160,070,866
Rentes 3A per cent net (Cat.
943,504,803
A-1902)".
Rentes 4} per cent in favor of
721,108,843
public charitable institutions.
13,829,503,000
Rentes 5 per cent net, 1917
Total.

23,751,899,550

(b) Redeemable d e b t Si per cent net, 1908 obligations
due in 1960
139,640,000
3 per cent net, 1910 obligations
due in 1960
326,240,000
44 per cent net, 1914-15 obligations due in 1940
249,742,600
5 per cent net, 1915-16 obligations due in 1940
i 1,249,325,400
Total
| 1,964,948,000
64,500,000
(c) Permanent annuity to Holy See.!
(d) Debts separately inscribed in
the "Gran Libro"—
5 per cent, redeemable in 1940
and 1959
65,399,000 |
3 per cent, redeemable in 1918
and 1961
108,372,500
Total redeemable
3 per cent, perpetual (feudal),
i825

173,771,500
405,416 i

Lire.
283,419,921
4,802,126
33,022,668
32,449,898
091,475,150
1,045,169,763
4,887,400
9,787,200
11,238,417
62,466,270
88,379,287
3,225,000

3,209,950
3,251,175
6,521,125
13,963

1074

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

Capital
amount.
I. Debt administered by the public debt
service—Continued.
Public debt not inscribed in the "Gran
Libro:"
Sundry redeemable railroad and
public service obligations—
3 per cent, payable in 1953-5456_64-85
5 per cent, payable in 1934-3642-44-58-59-64
2.4 per cent, payable in 1959...
Common railroad stock, redeemable in 1964
Total
Perpetual debt—
3 per cent old provincial and
communal debts
5 per cent old communal and
corporate Sicilian debts
Total
/ / . Debt administered by the treasury.
Annuities due to the South-Austrian
railroads terminable in 1968
3.65 per cent railroad credit certificates
of 1905 due in 1946
3.5 Der cent railroad credit certificates of
1906-7 due in 1947 and following
3.5 per cent treasury bills of 1901 due in
1926
4 per cent 5-year treasury bills due in
1920
5 per cent 3 and 5 year treasury bills due
in 1919 and 1921
Special treasury bills placed abroad
Credits opened by the U. S. Government

Rente or
interest.

Bank of Italy
Bank of Naples
Bank of Sicily

7,336,056,225
1,718,385,150
371,462,650

Total

Lire.
1,037,860,540

Lire.
31,135,816

216,294,000
3,568,000

10,790,550
85,632

7,570,000
1,265,292,540

42,011,998

22,964,416

688,932

40,749,138

2,037,457

63,713,654

2,726,389

818,444,864

8,069,987

524,708,254

On July 20 the Bank of Italy's note circulation of 7,949,723,000 lire was secured by 18.3
per cent of total reserve, including 10.3 per
cent of gold, as against 21.5 per cent of total
reserve, including 12.8 per cent of gold reserve
on December 31, 1917. Of the total Bank of
Italy notes outstanding on that date 63.1 per
cent had been issued for account of the Government, as against 66.2 per cent on December
31,1917, indicating a relatively smaller reliance
of the Government upon the banks of issue
during the present year than for the earlier
periods of the war.

22,539,709

221,095,531

9,425,904,025

18,364,789

GERMANY.

Since December, 1917, the Reichstag
has voted 30 billion marks of further
17,125,000
599,375 credits
to the Government, as follows:
1918, 15,000,000,000 marks; July,
154,370,000
6,174,800 March,
2,923,305,460
146,165,273 1918, 15,000,000,000 marks. This increases
8,103,811,800
368,665,175 the total of credits granted by the Reichstag
3,367,000,000
151,515,000 to 130 billion marks, or 30.9 billions of dollars
16,129,860,909
722,094,108 (at the nominal rate of 23.8 cents per mark).
Total
During March-April of the present year the
Recapitulation.
eighth war loan was issued which yielded
I. Debt administered by the public
debt service:
There were 6,510,278
Debt inscribed in the " Gran Libro " 25,955,584,495
1,143,279,138 14,766 million marks.
Debt not inscribed in the " Gran
subscriptions, of which 4,693,516 were small
Libro"
1,329,006,094
44,738,388
subscriptions of 500 marks and less. These
27,284,590,589
1,188,017,526 small subscriptions totaled 640,490,161 marks
Total
II. Debt administered by the treasury. 16,129,860,909
722,094,108
or 4.34 per cent of the total loan. Large
Total public debt, June 30.1918.. 43,414,451,498
1,910,141,634
Total public debt, June 30, 1917.. 30,200,453,550
1,278,037,947 subscriptions, i. e., in amounts of 500,000
4,692,490,161
Increase.
632,103,687 marks and over, aggregated
13,213,997,948
marks or 31.76 per cent of the loan.
Subscriptions for a ninth war loan were to
During the present year the Italian national terminate about the end of October.
debt shows an increase of about 8,824 million
lire, or about 1,703 million dollars (at the A GERMAN ESTIMATE OF THE COST OF THE WAR.
nominal rate of 1 lira = 19.3 cents), represented
On the
the war will
largely by the proceeds of the fourth war loan terminated assumption that the year 1918, be
by the end of
a
issued in February; of treasury bills placed a German financial authority (Georg Bernhard),
abroad, largely in England, and the advances quoted by the London Economist (July 27,
received from the United States Government.
Since the middle of 1914 the debt has more 1918, number), gives the following estimates
than trebled, while the annual debt charges of the direct financial burden of the war to
Germany:
have increased almost fourfold.
Million pounds.

FIDUCIARY CIRCULATION.

Between the beginning and May 20 of the
present year the total bank-note circulation
has gone up from 7,673,642,300 to 9,425,904,025
lire.. The latter total is composed of the following issues of the three note banks:




Cost of mobilization
50
Military expenses, proper
5,800
Feeding the nation, etc
500
Aid to invaded districts
250
Reconstruction of army and
fleet
300
Pensions to invalided soldiers and the families of
killed soldiers
1,250
Total

8,150

FEDEEAL RESERVE BULLETIN.

NOVEMBER 1,191S.

FIDUCIARY CIRCULATION.

As may be seen from the table below, the
national note circulation increased between
the end of 1917 and the end of August of the
present year by 4,158 million marks, of which
about 2,172 millions represents the increase
in the circulation of Reichsbank notes and
1,990 millions the increase in the circulation
of loan bank notes. The gold cover of these
notes held by the Reichsbank meanwhile
decreased by about 58 million marks. Recent
press advices presage an increase in the bank's
gold reserve through the receipt of the first
installments of the Russian war indemnity.
Note circulation in Germany.
(Compilation of figures given in London Economist.)
[Millions of marks.]
Dec.
31,
1917.

Total

Mar.
30,
1918.

11,138
348
6,288

11,310
348
6,532

11,978
348
6,670

11,820
346

18,084
2,406

---

Gold

Feb.
28,
1918.

11,468
350
6,266

Reichsbank notes
Treasury notes
Loan-bank certificates

Jan.
31,
1918.

17,774
2,406

18,190
2,406

18,996
2,408

19,104
2,344

Apr.
30,
1918.

May 31,
1918.

Gold.

Total..

July 31,
1918.

12,002
346
7,170

12,510
346
7,582

12,705
346
7,736

13,640
346
8,256

19,518
2,346

Reichsbank notes
Treasury notes
Loan-bank certificates..

June 30,
1918.

Aug. 31.
1918.

20,438
2,346

20,787
2,347

22,242
2,348

AUSTRIA-HUNGARY.

The following recent data relative to the
Austrian budget, war debt, note circulation,
etc., are taken from the July 28 number of the
Frankfurter Zeitung:
Budget estimates for the current and immediately preceding fiscal years are as follows:
[In thousands of crowns.;
1917-18
Ordinary expenditures (daaerndo A.usgabcn)... 5,672,500
E xtraordina'ry expenditures (vorubergehendo
Ausgaben)."
."
."
18,150,700
Total
Ordina r v revenues
Extraordinary revenues

1918-19
6,439,300
17,881,800

23,823,200

24,321,100

4 0G2 600
798,300

4 540 900
313,800

Total

4,8(50,900

4,854,700

Estimated deficit

18,962,300

19,466,400




1075

Extraordinary expenses are composed chiefly
of war expenses or other projected outlays
traceable more or less directly to the war. The
cost of maintaining the armed forces of the
monarchy is estimated, the same as for the
preceding year, at 12,000 million crowns;
special war expenses at 4,984 millions, including assistance to the families of drafted men,
3,501.8 millions (an increase of 59.8 millions
over the preceding year); relief of war refugees, 541 millions (decrease of 448.2 millions); assistance to the needy classes of the
population (zur Erleichterung der Lebensluhrung der Minderbemittelten), 201 millions
(decrease of 181.4 millions); temporary aid to
Government employees, 731.8 millions (decrease of 23.8 millions), etc. There is also
provided an amount of 751 millions for the
rehabilitation of the war-ridden zones (an
increase of 386.6 millions).
The bulk of the extraordinary revenues is
made up of the estimated proceeds of the warprofits tax, 300 millions.
Several hundred millions of expenditures certain to be made during the current year do
not figure in the budget, as these expenditures
have not yet been legally sanctioned. Accordingly, the Government requests authority for 21,000 millions of loan operations, the
same amount as for 1917-18. On the other
hand there were also before Parliament bills
providing for additional taxes with an estimated total yield of about 500 million crowns;
also a bill for an increase of the railway tariffs,
which is to bring in another 500 million crowns.
This amount, however, has already been used
up through the salar}7^ increases granted.
Later in the fall further tax bills were to be
presented providing for still further 500 millions of revenue. All of this would cover the
deficit in the ordinary budget, though not the
steadily increasing interest on the war debt,
support of the invalided soldiers, etc. It is
thought that the revenues are estimated very
conservatively and that particularly the high
consumption taxes, whose yields are at present
at a low level, will show large increases in
peace times.
Among the ordinary expenditures the charges
on account of the debt service hold first place.
Since 1913 the cost of this service has increased from 491.1 millions to 2,450.2 in the
budget estimate of 1917-18 and to 3,065.5
millions in the 1918-19 estimate, constituting
47f per cent of the total ordinary expenditures for the latter year. The war-debt service will require 2,510.1 millions, including 415

1076

FEDERAL BESEBVE BULLETIN.

millions on account of the eighth war loan.
By June 30, 1918, the war debt proper is estimated to have increased to 57,201.5 million
crowns, of which 29,255 millions represent
funded war loans (exclusive of the eighth
loan). The war debt includes besides—
Thousands
oi" crowns.

Advances of the Austro-Hungarian Bank
Advances of the bank syndicate
Loans (in marks) against Treasury bills
Loans in foreign currency

17,669,100
7,030, 200
3,124,900
122,400

Since then a further advance of 954 million
crowns has been received from the AustroHungarian Bank. The total Austrian debt
to the bank is 18,670 millions, of which a
considerable amount is still held with the
bank on giro account. The Hungarian Government is sharing in these advances according to its quota (which was 36.4 per cent up
to 1917) but probably has drawn upon its
credits relatively less than the Austrian
Government.
Total bank notes in circulation, according to
a statement of the minister of finance, were




NOYKMBEK 1, 1918.

24,000 millions about the end of June, as
against 17,705 millions on December 17, 1917,
the date of the latest report of the bank made
public.
Since the beginning of the war credit operations yielded a total of 52,800 million crowns,
while ordinary State revenues were 14,860 millions. Expenses on account of the armed
forces were 39,300 millions, and all other expenses—28,400 millions, including 7,100 millions for support of the indigent classes.
Details regarding financial conditions in
Hungary are lacking. Under date of September 14 the London Economist gives the following figures of the proceeds of 8 Hungarian
war loans.
Million
crowns.

First loan
Second loan
Third loan
Fourth loan
Fifth loan
Sixth loan
Seventh loan
Eighth ltfan
Total

1,175
1,132
1, 970
2,000
2, 300
2. 500
3^ 690
3, 860
18,627

1077

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Comparative table showing total note circulation, deposits, and gold and silver holdings of principal banks of issue, at the
outbreak of the ivar and about August-September, 1918.
[Rates of conversion: 1 lire, franc, or peseta = 19.3 cents; 1 mark = 23.8 cents; 1 pound = $-1.8665; 1 ruble = 51.5 cents; 1 Austrian crown = 20.S
cents; 1 Dutch florin = 40.2 cents; 1 Scandinavian crown = 26.8 cents; 1 yen = 49.85 cents.j
A. ALLIED POWERS.
[In thousands of dollars.]
At outbreak of the war.

" " 1
Total
deposits.

I Total note
I circulation.

T

About August-September, 1918.

f

Ratio of

Gold and •
Total note
silver
total note circulation.
holdings. i and deposit
I liabilities.

Total
deposits.

Gold and
silver
holdings.

Ratio of
gold and
silver to
total note
and dcDosi
liabilities.

_._.|
France
Great Britain..
Japan
Italy i 2
Russia

1,289,855
144,566
212,342
324,824
841,174

256,710
326,699
61,367
37,403
592,522

Totals...
United States.

1,971,587

(J82,185

i Per cent.
919,968 I
59.5
185,5(17 I
39.4
112,296 I
41.0
232,965
04.3
60.2
863,371
1,450,796

5,775,018
289,060
395,878
1,534,297

718,218
341,872
329,051
172,726

Per cerd.
11.2
30.9
38.7
9.4

7.994,253
2,502,488

54.7

612,052
818;002
454,679
305,473
2,190,200
1,580.802

1,561,807
2,087,685

15.3
51.1

B. CENTRA I, POWERS.
Austria-Hungary 4..
Germany
."—
Total 5 „

432.341 !
692,442 I
692,442 !

59,419 j
299,515 j
299,515 j

311,903 i
3(53) 070 j
303,670 j

03.4
36.7 & 3,417,402 j 2,171,413 j
03.4

c

3,417,402

2,171,413

€00,151

10.7

GOO, 151 |

10.7

C. NEUTRAL POWERS.
Denmark
Netherlands.
Norway
Spain
Sweden
Switzerland..

39,525
121.796
32,850
370,372
o4,367
51,708

Total..

073,627

|
!
I
I

5,496
1,904
?>, 859
9f», 104
18,440
9,777

24.410 I
08,477 ! :
14,405
245,747 !
26,154 :
38,409 !

54.2
54.0
39.2
52.7
35.9
62.5

105,958
387,412
102,829
580)454
172,537
147,236

2,759
24,172
20,712
224,659
20,284
27,613

290', 121
32,849
548,705
70,924
84,458

135,580 i

417,602 j

51.6 | 1,496,426

320,199

1,078,170

51.113

47.0
70.5
26.6
68.2
36.8
48.3

59,4

1

Those figures refer to the Bank of Italy. On May 20, 1918, there were also in circulation notes of the Bank of Sicilv, 371,462,650 lire; notes of
the Bank of Naples, 1,718, 385,150 lire; also treasury notes (on May 31), 1.937,000,000, a total of 3,655,647,800 lire, or 3777,181,600, as against 8197,053,400
on July 20, 1914.
s Latest available figures for Russia are those of Oct. 16 and 29, 1917. for which see Federal Reserve Bulletin, A rail, 1918, p. 209.
s Exclusive of figures for Russia.
* Latest available figures for Austria-Hungary are those of Dec. 7, 1917, for which seo Federal Reserve Bulletin, April, 1918, p. 269.
0
There were also outstanding the following issues:
MiJHon marks,
Treasury notes (Aug. 31,1918)
346
Loan bank certificates (Aug. 31,1918)
8,256
Bank of Bavaria notes (July 31,1918)
68
Bank of Saxony notes (July 31, U18)
42
Bank of Wurttemberg notes (July 31.1918)
24
Bank of Baden notes (July 31,1918).'
26
Total
or $2,085 million dollars, at the nominal rate of 1 mark
6
Exclusive of figures for Austria-Hungary.




23.8 sonts.

8,762

1078

FEDERAL RESERVE BULLETIN-.

Conservation of Productive Power and Credit,

The following statement regarding curtailment of less essential productive activities was
made by the War Trade Board on October 8:
The War Industries Board haying invited an
expression of judgment concerning a program
for the curtailment of the less essential productive activities of the country, more particularly
with reference to the position which the export
trade should occupy in such a program, the
War Trade Board records its judgment as follows :
That all commodities, labor, and transportation facilities of the United States should be
employed—
1. For the production of all commodities
directly needed in the prosecution of the war
by the United States and its associates, and
commodities for export to neutral countries
when needed by them to produce articles required by this country and its associates in the
fulfillment of the war program.
2. For the production of such articles as are
absolutely necessary to supply the domestic
civilian needs, not on the basis of prewar consumption but on the basis of the minimum
quantities necessaiy for the vital needs of the
country.
3. For the production of articles for export
to neutrals, limited in amount to the space
available on the outgoing voyage of ships bringing to this country articles required for the
purposes set forth in sections 1 and 2 above.
No labor, fuel, or transportation facilities shall
be used in production for export if such use
will interfere with those requirements. Subject
to the maintenance of the economic life of the
neutrals, exports should preferably consist of
articles of small bulk and high value.
The above program should be followed without unnecessary interference with business, and
with a view to its stabilization and preservation
despite the industrial changes occasioned
thereby. Every force, every enterprise, every
resource, however, must be employed to the
utmost in a supreme effort quickly to win the
war.
To this end all shipping should be devoted
primarily to war purposes. Every ship under
the control of the United States should be employed in transporting troops and supplies to
the front or in bringing to this country only
articles required for the fulfillment of this program. No steamers or.sailing vessels suitable
for transoceaii work should be employed for




NOVEMBER 1,1918.

coastal trading or on routes to contiguous or
near-by countries.
The priorities committee of the War Industries Board is setting up a rigid control of industrial production by which the several classes
of industry are accorded their relative importance, under a rationing system, giving priority
first to the needs of the war program, and second to the more essential civilian requirements.
The business community is giving unselfish and
patriotic support to these efforts.
The curtailment of unnecessary industrial
production in conjunction with the curtailment
of domestic consumption affords the quickest
and surest method of giving decisive support
to all the fighting forces.
What can be accomplished by a voluntary
lessening of consumption is illustrated by the
generous response during the past year to the
appeals for a saving of food products. Such
reduction made available a supply of food for
our associates in the war without which they
might have been seriously weakened. This response of the American people has been an
important factor in the military achievements
thus far recorded.
What has been done with respect to the saving of food can be accomplished along every
other line of domestic consumption. If the
people will make a similar response with respect
to the consumption of industrial commodities,
existing obstructions will be overcome and the
war program materially advanced. A few typical instances will illustrate what can be done.
The basic commodities employed in the military program are iron and steel. The needs of
the War and Navy Departments, the Emergenc}^ Fleet Corporation, and the Aircraft
Production Board are so extensive as to make
an unprecedented demand upon the producing
capacity of the county. This demand can be
met fully and promptly only by a curtailment
of consumption on the part of civilians. Therefore, if the civilian population will pause before
buying any unnecessary article which contains
iron or steel in any form whatsoever and realize
that to make such purchases will involve a draft
upon the supply needed for the war program,
they will just as" willingly practice this economy
as they have that with respect to the saving of
food.
The amount of wool required adequately to
clothe our rapidly expanding Army is in excess
of the capacity of existing shipping to bring it
from overseas, and therefore a curtailment in
the purchase of clothing will benefit the war
program.

NOVEMBER 1,1918.

There is hardly an item which goes to make
up the daily requirements of the population
which does not have a bearing on the war
program, and if the civilian population will
restrict its purchases along practically every
line the aggregate effect of such economies
will play an important part in winning the
war.
The construction of new buildings throughout the country has been considerably curtailed, but large quantities of materials
required in such construction are still being
used. A further curtailment of activity in
this direction is imperative.
A reduction in the consumption of all
material products by the practice of economies
as herein above mentioned, and the abandonment of all unnecessary use of transportation
facilities for pleasure or convenience, will
not only help greatly in the accomplishment
of the purposes noted but will likewise tend
to lessen the strain upon the overburdened
railroads and alleviate the fuel shortage.
Such patriotic compliance will likewise release
labor from nonessential employment and make
it available for the vital needs of those industries exclusively devoted to the production
of equipment and supplies required for the
fulfilment of the war program.
There is a moral responsibility resting upon
the American people so to curtail their consumption of all goods that the United States
will be in position to share its resources first
with its associates in the war, and second
with friendly neutrals to such extent as may
be consistent with our own and the war needs
of our allies. This will not only alleviate
suffering but help those nations to maintain
their economic existence.
Examinations of State Bank Members.
Every State bank and trust company,
while a member of the Federal Reserve system, is subject to examinations to be made
by direction of the Federal Reserve Board
or of the Federal Reserve Bank by examiners
selected or approved by the Federal Reserve
Board. As heretofore announced, in order
to avoid duplication, examinations by State
authorities will be accepted in lieu of examinations by examiners selected or approved by
the Board wherever such examinations are
satisfactory to the directors of the Federal
Reserve Bank and where, in addition, satisfactory arrangements for cooperation in the




1079

FEDERAL RESERVE BULLETIN.

matter of examination between the Board
and the State authorities have been effected.
Such arrangements have been effected with
State authorities in practically all States
whereby examiners from the staff of the Board
or of the Federal Reserve Bank may act with
the examination staff of the State. In order
that uniformity may be attained in the standard of examinations, it is purposed in future to
conduct cooperative examinations in all States
where the above arrangements have been
effected and in which such examinations have
not heretofore been made, and, in addition, to
make from time to time special independent
credit examinations of State bank members of
the system.
/
Foreign Banking Operations of First National
Bank of Boston.
In accordance with the policy already announced in the issue of the BULLETIN for
August, there is herewith presented an account
of the foreign banking operations of another
institution which has been engaged in the development of American foreign trade—the
First National Bank of Boston. As in former
cases, the statement has been prepared by the
institution to which it relates.
Boston has maintained trade relations with South
America for more than 100 years. As early as 1802, 22
vessels arrived at Buenos Aires from the port of Boston,
and the relations between the two cities have continued
uninterruptedly ever since. The volume of trade has
grown to enormous proportions. Immense quantities of
wool, hides, and skins are imported annually by Boston
from the Argentine through Buenos Aires, and various
products of New England are shipped to the Argentine
in return. The fact that Boston vessels were the first in
the trade with Argentina doubtless has been largely responsible for the position which Boston has held for many
years at the head of the wool and hide industries. The
bulk of the imports of these products for the United
States comes to Boston.
SCOPE OF BUSINESS.

Because its customers include the leading wool, hide,
and leather houses of New England, the First National
Bank of Boston has been called upon to finance a large
percentage of this business. Believing that the business
could be handled to greater advantage to itself and its
customers if the bank had a direct connection in Argentina,
the management of the First National Bank of Boston
sent Mr. F. Abbot Goodhue, one of its vice presidents, to

1080

FEDERAL EESERVE BULLETIN.

Buenos Aires to study the possibility of the establishment
of a branch in that city. Mr. Goodhue reported favorably
on the plan, and on July 14, 1917, the First National
Bank of Boston opened its Buenos Aires branch under
the management of Mr. Noel F. Tribe, an experienced
banker, prominently identified with the business and
financial affairs of Buenos Aires for the past 20 years.
Mr. Tribe has called into the service of the bank a large
corps of trained employees, and several department specialists, familiar with banking and business methods in
the United States, have joined this corps from the parent
institution, with the result that the branch is thoroughly
equipped to give the maximum of intelligent service.
The branch was a success from the start and commanded
the confidence of the business interests of the Argentine.
At the end of the first month of operation it had deposits
of $7,000,000 Argentine paper, the equivalent of nearly
$3,000,000 American gold. At the end of the first year
the deposits had reached :>55,488,000 Argentine paper, of
which over $21,000,000 was cash on hand. This position
was attained under active competition and affords ample
proof of the need of such an institution to handle the business between New England and Argentina. Measured by
their mutual trade relations, Boston and Buenos Aires
are the leading cities of North and South America. Business between the two cities is steadily increasing, although
temporarily disturbed by the shortage of shipping. Not-?
withstanding this condition, the First National Bank of
Boston and its Buenos Aires branch recently financed the
largest single importation of wool in the history of the
United States.
SERVICE DEPARTMENT.

In order to facilitate the handling of this growing foreign
business and to supply the steady increase in demand for
information regarding markets for various products in
other countries, the First National Bank of Boston has
established a commercial service department. This has
become an important feature of the bank's activities and
is much appreciated by houses engaged in foreign trade
or considering such extension of their business.
Through this department the bank undertakes to supply
information regarding trade and financial matters here
and abroad, but particularly to aid in the extension of
foreign business. It collects and tabulates facts and
figures along these lines, which information is placed at
the disposal of any to whom they could be of value,
whether a customer of the bank or not. This information
includes statistics relative to the demand for or production
of various products in foreign countries, the methods of
transacting business, the rules and regulations to which
business interests must conform, other facts that will be
found of value in the prosecution of foreign business, and
helpful suggestions derived from actual experiences.
In connection with this work the commercial service
department has issued circulars and pamphlets covering
the patent and trade-mark laws of Argentina and Chile,




NOVEMBER 1,1918.

the forms of powers of attorney for use in Latin-American
countries, and special reports on various subjects. It
plans to issue other valuable and timely information
designed to aid in the strengthening and extension of the
foreign trade of the United States, and will supply specific
information upon request. The commercial service department is prepared to assist business houses to obtain
reliable representatives in foreign countries, and to place
importers and exporters here and abroad in communication with houses that can handle their products. The
department is taking a large part in the development and
extension of the foreign trade of New England along
sound, conservative, and profitable lines.
FOREIGN CREDITS AND IXFORMATION.

The foreign exchange department of the bank has issued
circulars on South America.!] trade, dollar credits, and
other subjects. It is under the direction of experts, and
handles a large and increasing volume of business, in
addition to the financing of foreign trade directly through
the bank. Recent figures compiled by the industrial
bureau of the Boston Chamber of Commerce place the
First National Bank of Boston second on the list of 7,250
national banks of the United States in regard to volume of
foreign business.
The credit department has an important part in the
encouragement of foreign trade through its work of supplying to importers and exporters reliable and up-to-date
information regarding the credit of business men and houses
in South America and throughout the world. The branch
at Buenos Aires places the department in position to obtain
most dependable South American information promptly.
The management of the First National Bank of Boston
believes that with the resumption of normal conditions
following the war the merchants and manufacturers of
the United States will engage in foreign trade to a, greater
extent than ever before, and that as this is to many of
them a new field they will require such facts and figures
as will enable them to compete successfully with interests
in other countries that enjoy the benefit of long experience.
The management of the bank purposes to establish additional branches in South America and in other parts of the
world, which will add materially to its facilities for the
financing of foreign trade and to its power to serve business
interests.
FIRST NATIONAL CORPORATION.

The development of the foreign business of the bank
during the past five years was so pronounced that the
necessity of some supplementary organization became
apparent. Under the authority of section 25 of the
Federal Reserve Act, therefore, the bank, with the
approval of the Federal Reserve Board, invested 10 per
cent of its capital and surplus in the First National Corporation, chartered under the laws of Massachusetts with
a cash capital of $2,250,000, all of which is owned by the

NOVEMBER 1,1918.

1081

FEDERAL RESERVE BULLETIN.

First National Bank of Boston. The corporation entered
into an agreement with the Federal Reserve Board to
conduct its business in such manner and under such
limitations and regulations as the Board may prescribe.
Mr. Daniel G. Wing, president of the First National
Bank of Boston, is also president of the First National
Corporation, and all other officers and directors of the
corporation are officers, directors, or stockholders of the
bank. The general interest in the work of this corporation
is indicated by the personnel of its board of directors,
which is as follows:
Edwin P. Brown, president, United Shoe Machinery
Co.; Robert F. Eerrick, Herrick, Smith, Donald & Farley;
Henry Hornblower, Ilornblower & Weeks; John R. Macomber, Harris, Forbes & Co.; Andrew W. Preston, president, United Fruit Co.: C. G. Rice, U. S. Smelting, Refining and Mining Co.; Edwin S. Webster, Stone & Webster;
Albert B. Wells, treasurer, American Optical Co.; Daniel
G. Wing, president of the First National Bank of Boston.
OFFICE IN NEW YORK.

Jnlv 1,
19 IS.

Aug. 1,
1918.

!
I

Sept. I,
3.018.

Total capital paid in
.S55, O X, 000 JS70,000.000 :$H0.000,000.00
C)
Total bonds issued
I
!!
Total bonds outstanding
„
Total advan ces u ndo r foilowi n g j
;
j
sections:
'
!
!
Section 7—
i
Paragraph J
;
i
613,292.49
Paragraph 2
i
i
155.550
1.498,800.00
Section 8 . . .
!
i
250.000
550. 000.00
Section 9
; 3;074.000 j 5,173)000
40,540)500.00
Total advances

i 3.074.000 j 5,578, 5oQ j 43,202,592.49

Collateral securities taken under the following sections:
Section 7, paragraph 1—
(a) United States Government b o n d s . .
(6) Municipal bonds
and notes
(c) Other bonds and
notes
(d) Stocks

833.097.12

Total.
Section 7. paragraph 2— j
(a) United States Gov- j
eminent bonds..;.
(6) Municipal bonds ]
and notes
|.
(c) Other bonds and j
notes
i.
(d) Stocks
!.

A branch office of the corporation is maintained at 14
214,000 ! 2,490.. G O 00
O.
Wall Street, New York City, in charge of Mr. Arthur K.
Hunt. As business develops, the corporation will establish
Total
244,000
2,490,600.00
other branches and agencies in foreign countries where
Section 8—
they will be able to conform, closely to the banking prac(a) United States Govtices of their respective localities, as under the terms of
ernment bonds
(5) Municipal bonds
its charter the corporation can readily adapt itself to
and notes
(c) Other bonds and
varied conditions. Although operations have been connotes
335,379
708,812.91
ducted for only a few months, the corporation, through its
(d) Stocks
acceptance facilities, has already rendered substantial
Total
335,379
708,812.91
service to our merchants engaged in foreign trade. A
Section. 9—
considerable volume of imports from and exports to South
(a) United States Government bonds. .
800,000
800,000
SOO, 000.00
America, large shipments of silk from the Far East, sugar
(b) Municipal bonds
and notes
from the West Indies, wool and hides from Argentina, and
(c) Other bonds and
various consignments for Europe have been handled in
notes
3,339,000
6,558,000
59, 141,246.40
(d) Stocks
this manner or through commercial letters of credit opened
Total
4,139,000
7,358.000
59, 941,246.40
by the corporation.
With a view to the development of our discount market, fotal amount of advances outstanding under the following
particularly in New England, the corporation conducts
sections:
Section 7—
active operations in the purchase and sale of prime accepParagraph 1
613.292.49
tances. An offering list is printed and distributed daily
Paragraph 2
1, 483.800.00
140.550
Section 8
533.410.27
210,500
to its customers throughout the country, and the closest
Section 9
3 ; 074, 000
21, 553,000.00
5,173,000
cooperation between the New York and Boston markets
Total
3.074,000
5.560,050
24, 183.502.76
is maintained by a private wire between these two offices
of the corporation.
NOTE.—The collateral securities listed above are given at their respective face amount and figures are as of the opening of business on the day
stated.

Report of War Finance Corporation.

State Bank Membership in New England.
Following is the second quarterly report of
A study of "Banks Incorporated Under
the War Finance Corporation submitted to State Laws as Members of the Federal Reserve
Congress, for the quarter ending September System" has been prepared by Eussell B.
30, 1918:
Spear, assistant Federal Reserve agent, of




1082

FEDERAL RESERVE BULLETIN.

Boston. This study contains some discussion
with reference to the actual conditions of
membership in the Federal Reserve system,
applicable to New England banks, and also
a brief statement of the practice of the
Federal Reserve Bank of Boston in regard to
some important phases of its relationship with
member banks. Extracts from the study are
herewith given, as follows:

NOVEMBER 1,1918.

Banks. Nonmembers must borrow from members and members from the Federal Reserve
Bank of their district. The expansion power of
the Federal Reserve system is limited" by the
amount of cash which is available for reserve.
A reserve of 35 per cent must be maintained
against deposits and 40 per cent against Federal
Reserve notes. This means that, roughly, a
Federal Reserve Bank can expand about two
and a half times its cash resources. Every
dollar added to its deposits means that in its
place two and one-half dollars can be loaned
without impairing the reserves of the Federal
Reserve Bank.
The need of a united banking system is
best stated by President Wilson himself when,
on October 13, 1917, he urged the officers and
directors of all nonmember State baiiks and
trust companies eligible for membership in the
Federal Reserve system to unite with it.
Many banks did so, and applications have
boon coming in more or less continuously ever
since. There are now about 500 banks, other
than natioiial banks, members of the system.
In the district covered by the Federal Reserve Bank of Boston, 197 State banks are
eligible for membership, having resources of
about $969,020,000. Of these, 24 are now
members, having resources of $529,724,000.
It will therefore be seen that while only 12J
per cent of the eligible State banks are members, their resources are about 55 per cent of
the total.
The cost of membership can not be estimated
abstractly, but the case of each individual
bank must be considered separately, taking
into consideration its State laws, the requirements of its customers, and the nature of its
investments. During the last three years in
figuring the cost of membership for many
banks, both State and National, we have found
but few cases where the cost was excessive, and
have often found banks where as members
their earnings were actually increased. We
are only too glad to analyze the figures of any
bank considering making application. The
question in these unprecedented times is not,
"Can a bank afford to be a member?" It is,
"Can a bank afford not to be a member and
not to give its customers, its depositors, and
its country the support and protection to
which they are entitled?"

There are two cardinal reasons why the
present is a most propitious time for a State
bank or trust company to make application
for admittance to the Federal Reserve system:
First, it is probable that before the war has
progressed much further all banks will need
the support of the Federal Reserve system.
Second, in order to properly finance the war
tho Federal Reserve system needs the support
of the present nonmember banks.
Most trust companies are coming to realize
that "in union there is strength/ 7 and there is
hardly a day passes but what some trust company makes inquiries in regard to membership.
It is to answer these questions as concisely as
possible that this article is written.
Speaking briefly on the first reason for joining the system, it must be borne in mind that
the United States Government is at present
spending for war $1,500,000,000 per month.
This money can be raised in only two ways,
namely, taxes and loans. Both of these
methods of necessity cause a large shifting of
funds in the banks. Long-time loans can best
bo floated in large blocks at as infrequent
periods as possible. Between loans, temporary financing must be done by means of
certificates of indebtedness. These, from their
nature, can not be placed directly with the
eneral public, but must be purchased by the
anks and resold by them to the private
investor. This means that banks must sell
securities, curtail their commercial loans, or
borrow. As the war goes on this will become
more necessary, and the need of recourse to
the Federal Reserve bank must become more
acute, both to care for these purchases which
must be made and for commercial borrowers
whose needs are essential to the prosecution of
the war, to say nothing of the ever-increasing
loans to carry Liberty bonds. Many banks
are now being obliged to borrow for the first
STATE REQUIREMENTS.
time in their history.
Maine,—The laws of this State require 15
The second reason for joining the system is
closely allied with the first. As the burden of per cent of deposits on demand or within 10
financing the war becomes heavier, the weight days. Two-thirds may be in reserve banks
must of necessity fall on the Federal Reserve and one-third may be in United States or

g




NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

1083

certain Stato bonds. A trust company joining carry both reserves. However, the Federal
the Federal Reserve system substitutes the Reserve Bank is a legal reserve agent under
requirements of the Federal Reserve Act for the Connecticut law, and as the reserve requirements of the Federal Reserve system are
the above State requirements.
New Hampshire.—The laws of this State smaller than those of the State, there would
require 15 per cent of aggregate deposits in possibly be no additional reserve required.
commercial department. One-third must be
It has been found in those States where the
in cash and two-thirds may be in reserve banks. Federal Reserve Act requirements are subMembers of the Federal Reserve system may stituted for the State requirements, that many
substitute reserve requirements of the Federal banks have been able to reduce their reserve
Reserve Act for the above State requirements. to a point where a part could be loaned at
Vermont.—The laws of this State require 15 rates of interest that would more than recomper cent of commercial deposits and 3 per pense them for the loss in interest on balances
cent of savings deposits. One-fifth must be carried with the Federal Reserve Bank.
in cash, or one-tenth cash and one-tenth in
We have yet to hear of a State bank which
national banks in same county; two-fifths may finds membership burdensome, and it is not
be in reserve banks, and two-fifths may be in infrequent to find bank officials who state that
certain bonds. There is no enabling act, so the loss of interest is much less than they
that a bank joining the system must continue anticipated when joining and is more than
to comply with the above requirements.
offset in other ways.
Massachusetts.—The laws of this State reREDISCOUNTS.
quire 15 per cent of demand deposits outside
of Boston and 20 per cent of demand deposits
in Boston. Two-fifths must be in cash; threeAny paper issued for industrial, commercial,
fifths may be in reserve banks, of which one- or agricultural purposes having in the case of
third may be in United States or Massachusetts commercial and industrial paper not over 90
bonds at market. Members of the Federal days to run from date of rediscount, and in the
Reserve system may substitute reserve require- case of agricultural paper not over 6 months
ments of the Federal Reserve Act for the above to run from the date of rediscount, is eligible
State requirements.
for that purpose; provided, however, that the
Rhode Island.—The laws of this State require note is issued for carrying on business and not
15 per cent of demand deposits. Two-fifths for capital purposes. The test of eligibility is
must be in cash and the balance may be with that the quick assets must be a reasonable
reserve agents. There is no provision for sub- amount in excess of current liabilities. This
stituting the requirements of the Federal Re- does not, however, mean that they must be
serve Act; therefore, a State member bank two for one. The size of the note does not
must carry both State reserve and that of the exiter into the matter, and notes as small as
$19.75 and as large as $1,000,000 have been
Federal Reserve Act.
However, as the Federal Reserve Act re- rediscounted.
In making application for rediscount a bank
quires only 7 per cent of demand deposits and
3 per cent of time deposits, as compared with must have in its files a financial statement of
State requirements of 15 per cent of demand the borrower when his notes rediscounted
deposits, and as the bank commissioner of aggregate $5,000 or more, or over 10 per cent
Rhode Island has ruled that the Federal Re- of the bank's capital, and it is very probable
serve Bank is a legal reserve agent, it is pos- that the Federal Reserve Bank will ask for a
sible that no additional reserve need be carried copy for its confidential files. A copy of a
signed statement is sufficient, and it need not
after joining the Federal Reserve system.
Connecticut.—The laws of this State require be made by a professional accountant. A
12 per cent of demand deposits and 5 per cent bank may borrow on its own note for not exof time deposits, not including savings. Of ceeding 15 days secured by Liberty loan bonds,
this, one-third must be in cash, the remaining certificates of indebtedness, or by paper eligible
two-thirds with reserve agents. Of the latter for rediscount.
It must not be assumed that rediscounting
amount one-fourth may be in bonds legal for
is surrounded by "red tape" in any way.
savings banks to purchase.
There is no provision for substituting re- This bank is conducted on the same basis as
quirements of the FederalJReserve Act, and a commercial bank and applications for redistherefore a member bank will be required to count are acted on promptly and the proceeds




1084

FEDERAL RESERVE BULLETIN.

NOY.iOM.BEIl 1, 1.918.

are immediately placed to the credit of the immediate use either for rediscount or as
member bank, so that a bank sending in paper collateral for Government deposits.
for rediscount knows that it will receive credit
The Attorney-General of the United States
the same day.
has ruled that State banks joining the Federal
Reserve system do not come under the scope
CURRENCY.
of the Clayton Act, and, therefore, no change
need be made in a board of directors by reason
The Federal Reserve Bank is ready at all of becoming a member of the system.
times to supply its member banks with curNew accounts for deposit of postal savings
rency of all denominations. A large supply of funds can not be opened in a nonmember bank,
Federal Reserve notes is kept printed, the and many of the industries now under Governtotal at present apprpXmiating $100,000,000. ment control will not or can not deposit money
These cover all denominations from $5 to $100. with a notunember. For this reason some
In addition, a supply of bills of smaller and banks have found that joining the system has
larger denominations is on hand, and it is ex- been the means of their securing considerable
pected soon to issue Federal Reserve notes in deposits of funds of this nature.
denominations of $1, $2, and $5. Specie can
It should, be remembered that member banks
also be provided immediately on request. are the stockholders of the Federal Reserve
With this reservoir to draw from, members in Banks and that six of the nine directors are
States which have no required cash reserve elected by members. The idea that the
(Maine, New Hampshire, and Massachusetts) Federal Reserve Bank is a Government instican often maintain a large part of their reserve tution, out of the reach of its members, is fast
in the Federal Reserve Bank from the cash disappearing, and we believe that member
formerly required as vault reserve.
banks in the first Federal Reserve .District
A member bank can send to the Federal have always found their connection with the
Reserve Bank of Boston for immediate credit Federal Reserve Bank of Boston agreeable.
bills unfit for further circulation. At the
present time we are providing currency at the
rate of over SI,000,000 a day to as many as
ffoe Philippine National Bank.
50 different banks.
The following carrying charges are paid by
In the FEDERAL RESERVE BULLETIN for
the Federal Reserve Bank of Boston:
August, 1918, there was printed the charter or
1. On gold or gold certificates shipped to us. act of the Philippine Legislature creating the
2. On Federal Reserve notes shipped in ex- Philippine National Bank as amended up to
change for gold or gold certificates.
date. While the Philippine National Bank is
3. On currency sent to us for credit in pay- not technically speaking a foreign institution,
ment of remittance letters.
it is performing the same functions as American
4. After the issuance of Federal Reserve banks which are engaged in developing our
bank notes (probably about August 15) on foreign trade while its methods are necessarily
silver certificates shipped to us to be exchanged those of foreign-trade banking. The act alfor Federal Reserve bank notes.
ready reprinted furnishes much of the informa5. On Federal Reserve bank notes shipped tion that is required by the student of American
in exchange for silver certificates.
foreign banking, and this need not be recapitulated here. A few additional data are, howCONCLUSION.
ever, supplied as a part of the Board's series of
monographs or studies relating to foreign
In addition to points particularly outlined banking.
above, the Federal Reserve Bank of Boston
In the original by-laws adopted by the board
endeavors to give its member banks e~ ery of directors of the Philippine National Bantservice which it consistently can. With this there was contained the following provision:
in mind, a department has recently been estab- SEC. 41. Xot to exceed two branches or agencies of the?
lished for the holding of securities in safe keep- bank may be established in the United States, and
ing, where bonds are held and coupons cut as branches or agencies may be established in provincial
done by regular cit}7 correspondents. This capitals and municipalities of the Philippine Islands, at
may
has proved of benefit to member banks, many such points as the board of directors of thedetermineofupon.
The salaries and duties of each
officers
said
of which are keeping an amount of bonds or branches shall be fixed in accordance with subsection (e)
commercial paper available at this bank for of section 28 of these by-laws.




NOTEMBEU 1, 1018.

SEC. 4.2. T3ie branches or agencies in the United States,
of which there shall in no case be more than two, shall
have the following functions:
(a) To receive, transmit, and disburse any funds of the
Philippine Government payable in the United States.
(b) To receive, transmit, and disburse any funds of the
United States Government which may be placed on deposit with or entrusted to it.
(c) To receive, transmit, and disburse any funds of individuals, firms, companies, or corporations engaged in business with the Philippine Islands, or having interests
therein.
(d) To engage in business to the extent permitted by
law of the United States with the Federal Reserve Bank
of the district in which said branches or agencies may be
located, and to conduct a deposit and discount business
with the said Federal .Reserve Bank in accordance with
the law of the United States and under the instructions of
the board of directors of the Philippine National Bank.
(e) To exercise any other functions authorized by the
board of directors.
SEC. 43. The branch banks in the Philippine Islands
shall exercise only the powers conferred upon them by the
board of directors, shall make detailed daily reports of
their transactions to the central office at Manila, and shall
at any time be subject to examination by an examiner or
examiners to be designated by the board of directors.

Under this provision the Philippine National
Bank has now established 48 agencies and
branches as follows:
BRANCHES.

In the United States: New York City, N. Y.
In the Philippine Islands: Bacolod, Occidental Negros ; Oebu, Cebu; Cabanatuan,Nueva
Ecija; Davao, Mindanao; Corregidor; Aparri;
Iloilo, Iloilo.
The following agencies will shortly be converted into branches according to announced
plans: Lucena,Tayabas; Zamboanga, Zamboanga; Albay, Albay.
The following agencies are in full operation
as such:
Butuan, Aguean.
Albay, Albay.
NagaJ Ambos Oamarines.
San Jose, Antique.
Bagnio, Benguet.
Balanga, Bataan.
Basco, Batanes.
Tagbilaran, Bohol.
Malaybalay, Bukidnon.
Malolos, Bulacan.
Tuguegarao, Cagayan.
Capiz, Capiz.
Cavite, Cavite.
Batangas, Batangas.
Cotabato, Cotabato.
Laoag, Ilocos Norte.
Vigan, Ilocos Sur.
Ilagan, Isabela.
Santa Cruz, Laguna.
Dansalan, Lanao.
San Fernando, La Union.
Tacloban, Leyte.
Calapan, Minforo.




1085

FEDEBAL RESERVE BULLETIN.
Cagayan, Misamis.
Bontoc, Mountain Province.
Dumaguete, N. Oriental.
Bayombong, Nueva Viscaya
Puerto Princesa, Palawan.
San Fernando, Pampanga.
Lingayen, Pangasinan.
Pasig, Rizal.
Catbalogan, Samar.
Sorsogon, Sorsogon.
Jolo, Sulu.
Surigao, Surigao.
Tarlac, Tarlac.
Lucena, Tayabas.
Iba, Zambales.
Zamboanga, Zamboanga.

The condition of the Philippine National
Bank, as announced by it at the close of
business June 30, 1918, was as follows:
Condensed statement of condition as at the close of June 30,
1918 (Estado condensado de condiciones en 30 de Junto,
1918).
KESOTJRCES (ACTIVO).

Loans and discounts (pr&stamos y deseuentos)
P103,665,858.96
U. S. and Philippine Government bonds (bonos de los
Gobiernos de JE E. UU. y Filipinas)
5,818,499.00
Furniture and fixtures (niobiliario y enseres)
125,254.47
Exchange for future delivery (cambios para entregas
luturas)
10,320,276.83
Due from branches (a cobrar de los sucursales)
1,761,042.33
Due from banks and bankers (a cobrar de los bancos y
banqueros)
21,734,000.85
Cash in vault and with treasurer of Philippine Islands
(ofectivo en caja y en poder del Tesorero I. F.)
26,065,507.25
Customers' liability L/C and acceptances (cartas de
cre"dito y aceptanciones)

41,452,056.18
210,942,495.87

LIABILITIES (PASIVO).

Capital (capital)
Reserve funds (fondos de reserva)
Dividends unpaid (dividendos por pagar)
Circulation (circulation).
Acceptances (aceptaciones)
Exchange contracts (contratos de cambio)
Commercial credits (cartas de credito)
Deposits (depdsitos)

3*9,207,830.00
2,346,946.58
446,501.19
5,760,000.00
11,443,629.48
10,320,276.83
25,841,663.33
145,575,648.46
210,942,495.87

The Philippine National Bank has undertaken the investigation of the question of
establishing agencies on the China coast. It
already possesses a considerable Japanese and
Chinese business, and finances the movement
of staples from Java and elsewhere in the East
Indies to the United States. In general, its
foreign trade functions are the opening of
export and import credits between the United
States and the East, and of course chiefly
between the United States and the Philippine
Islands, and the transmission of funds. At its
local branches in the Philippine Islands it
transacts a complete banking business, including both direct loans to business men, the sale
and purchase of foreign exchange, and under
the direction of home office the opening of
export and import credits.

1086

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

The Philippine National Bank, being vested
Trast Powers for National Banks.
with the power of note issue, is able at its local
branches to exercise the function of providing
In connection with applications of national
an elastic currency and redeeming the notes batiks to exercise fiduciary powers under the
when presented.
recent amendment to the Federal Reserve Act,
the following press statement was issued by the
Board under date of October 24 :
Changes in Reserve Requirements.
By recent amendment to section 11 (k) of the Federal
The Federal Reserve Bank of New York on
October 30 sent the following letter to member
banks in reserve and central reserve cities in
District No. 2:
The Federal Eeserve Board, pursuant to
the provisions of section 19 of the Federal
Reserve Act, as amended by the act of September 26, 1918, has approved a recommendation
with respect to outlying districts of central
reserve and reserve cities in this district and
the reserves to be carried by banks located
therein, as follows:
RESERVE CITIES.

Albany, K Y., and Buffalo, N. F.—No
change to be made in the status of Albany and
Buffalo as reserve cities, and all member banks
located therein will be subject to the reserve
requirement of paragraph " b " of section 19 of
the Federal Reserve Act, namely, 10 per cent
of aggregate demand deposits and 3 per cent
of time deposits.
CENTRAL RESERVE CITY.

New York City.—Member banks located in
the borough of Manhattan or located in other
boroughs and having branch offices in Manhattan will be subject to the reserve requirement of paragraph " c " of section 19 of the
Federal Keserve Act, namely, 13 per cent of
aggregate demand deposits and 3 per cent of
time deposits.
Member banks located in the boroughs of
Brooklyn and Bronx will be subject to the
reserve requirement of paragraph " b " of section 19 of the Federal Reserve Act, namely, 10
per cent of aggregate demand deposits and
3 per cent of time deposits.
Member banks located in the boroughs of
Richmond and Queens will be subject to the
reserve requirement of paragraph " a " of section 19 of the Federal Reserve Act, namely,
7 per cent of aggregate demand deposits and' 3
per cent of time deposits.




Reserve Act, the fiduciary powers that may be exercised
by national banks with the permission of the Federal
Reserve Board have been materially broadened, and this
section, as amended, will enable national banks to exercise fiduciary powers under conditions substantially similar
to the conditions under which such powers are exercised
by competing State banks and trust companies. As a
result of this amendment a number of national banks which
have not heretofore been granted permission to exercise
fiduciary powers have filed applications in accordance with
the statute, and are arranging to open trust departments.
In order that applications filed up to and including November 15 may receive consideration at the same time, the
Federal Reserve Board has fixed its first meeting in December as the date on which these applications will be acted
uj)on. All such applications must, as heretofore, be transmitted through the Federal Reserve Agent of the district
in which the applying bank is located, and unless received
by the Board by November 15 they will probably not be
acted upon until some meeting subsequent to the first
meeting in December.
The form of application prescribed by the Board may
be obtained either from the Federal Reserve Board or the
Federal Reserve Agent. New regulations made necessary
by the recent amendments to the act will be issued in the
near future.

Financial Preparations for After-War Trade.

A lengthy study on " Economic Reconstruction—Analysis of Main Tendencies in the
Principal Belligerent Countries of Europe " has
been prepared by the Department of Commerce.
This study contains a review of bank and
financial legislation and reorganization intended to meet the problems of export trade
immediately following the close of the war.
The principal sections of the study bearing
upon the banking phase of the after-war reconstruction are as follows:
GJiEAT BRITAIN.

Among private organizations the outstanding tendency has been toward cooperation and
concentration—policies that are receiving considerable encouragement from the Government,
influenced more or less by similar economic
tendencies in other countries, particularly in
the United States. It is stated that the board

NOVEMBEIt 1, 1918.

of trade has sent representatives to some of the
industrial centers to arouse interest in combinations for export trade. Some of the board of
trade committees investigating various industries with a view to determining the changes that
it may be necessary to make in their foreigntrade methods after the war have reported in
favor of some form of combination or association for export trade for the following industries: Iron and steel, engineering, shipbuilding
and marine engineering, electrical, and textile.
Banking amalgamation.—Concentration has
been most pronounced among British banks
and has aroused some alarm in business circles.
At the recent meeting of the Associated Chambers of Commerce of the United Kingdom a
resolution was submitted criticizing the recent
bank amalgamations, but was modified under
the influence of Sir Edward Holden, who stated
that only big banks would be in a position to
stand the gold drain that is bound to set in after
the war. The resolution finally adopted approves amalgamations, but recommends that
the board of trade bo given power to guard
against injury to commercial interests. The
attention of the chancellor of the exchequer was
called to the matter, and a committee was appointed to investigate it. In its report of May
21, 1918, the committee made a recommendation for legislation providing for a statutory
committee representing the Treasury Department and the board of trade which should nave
the authority to pass on proposed amalgamations. The recommendation of the committee
has been accepted by the Government, and a
standing committee appointed. Some of the
institutions figuring in recent amalgamations
or rumors of amalgamations are London
County and Westminster, Parr's, London City
and Midland, London Joint-Stock Bank, London and Southwestern, and London and Provincial. The recent announcements of the
London Provincial and Southwestern are of
particular importance, as they concern the
development of British banking in South
America and closer financial connections with
the United States. This bank and the British
Bank of South America, with branches in
Argentina, Brazil, and Uruguay, have just made
an arrangement to act as agencies for each
other. It has also entered into an arrangement with the Irving National Bank of New
York to act as its agent in the United Kingdom,
while the latter bank is to represent the London
Bank in New York. According to a recent
statement in the London Economist, of the
total deposits in English joint-stock banks
nearly 83 per cent is held by eight companies.




IQS'l

FEDERAL RESERVE BULLETIN.
CENTRAL POWERS.

The tendency toward concentration in banking has manifested itself in Germany as well as
in Great Britain. The most striking illustration is found in the absorption by the Deutsche
Bank of the Schlesischer Bankverein and the
Norddeutsche Kreditanstalt for the purpose of
extending its sphere of activity into the eastern
Provinces of Silesia, Pomerania, Posen, and
East and West Prussia. This movement may
be of considerable importance when taken in
connection with the late political developments
along the eastern frontier. As a result of this
invasion of the eastern Provinces by the
Deutsche Bank, the Danziger Privatbank has
entered into closer relations with the Berliner
Handelsgesellschaft. Another example of the
amalgamation movement is furnished by the
agreements entered into by the Austrian Creditanstalt in Vienna and the Hungarian Allgemeine Credit-Bank in Budapest with the Disconto-Gesellschaft and the Norddeutsche Bank
for closer relations in regard to overseas trade.
These agreements will give the Austrian and
Hungarian institutions representation on the
boards of some of the South American branches
of the Disconto-Gesellschaft. According to a
recent announcement in the Frankfurter Zeitung, the Disconto-Gesellschaft is taking over
five provincial banks in central and western
Germany, which is regarded as a continuation
of the policy underlying the absorption of the
Schaffhausener Bankverein in 1914 and of the
Konigsberg Bankverein in 1916. The Dresdner
Bank has greatly improved its representation
in the Rhineland and Westphalia by the absorption of the Rheinisch-Westfalische Disconto-Gesellschaft in Aix~la-Chapelle7 with a
capital of 95,000,000 marks and valuable connections in the textile and milling industries.
Export trade organization.—A repent announcement in the Hamburger Nachrichten relates to the formation of a corporation for
foreign and domestic enterprises (AktienGesellschaft fur In- und Auslands-Unternehmungen), somewhat along the lines of the
British Trade Corporation. The corporation,
which is capitalized at 25,000,000 marks, is to
undertake the construction and operation of
railroads, irrigation plants, harbors, electric
plants, as well as factories; to operate plantations and mines; and to form and participate
in subsidiary concerns. Among the German
firms represented on the board of directors are
the Norddeutsche Bank, Dresdner Bank, the
Hamburg-American Line, Hugo Stinnes (Ltd.),
Rheinish-Westphalian Coal Syndicate, Krupps,

1088

FEDERAL RESERVE BULLETIN.

1,1918

and Siemens & Schuckert. There has also been
Guaranteed Price of Wheat.
some movement in trading circles for the esThe following letter was transmitted by the
tablishment of a special bank for exDort trade,
on the ground that after the war the smaller Governor of the Federal Reserve Board to all
German concerns may be unable to get the Federal Reserve agents, under date of Octoacceptance credits they formerly enjoyed in ber 5:
countries now at war with Germany. It is
In view of the large amount of acceptances
stated that the banks are not very favorably
inclined toward the creation of the new insti- now outstanding drawn by the United States
Grain Corporation, I think that some of your
tution.
Compulsory syndication.—The war, with its member banks will be interested in the followresulting shortage of labor and raw materials, ing information which is contained in a letter
has led the German Government to adopt the addressed to me by Mr. Herbert Hoover, United
policy of compulsory syndication of a number States Food Administrator, under date of the
of very important industries, with the result 4th instant.
Mr. Hoover states in his letter that the Grain
that tie less efficient plants were usually closed
down and production concentrated as much as Corporation has,on hand 120,000,000 bushels of
possible in those fit to survive. In some cases wheat, costing approximately $260,000,000,
amalgamation has been brought about in a vol- and that it has outstanding obligations against
untary manner at the suggestion of the Gov- this wheat of about $110,000,000. Mr. Hoover
ernment, but where the interests involved were also says that "if by any chance the price of
too divergent compulsory syndication had to wheat should fall by one dollar a bushel, the
be resorted to. In many cases the machinery capital of the Grain Corporation would be
from the closed plants has been transferred to almost sufficient to liquidate their maximum
those in operation. In a recent issue of a possible holding of 170,000,000 bushels."
German trade publication it is stated that the
The food act provides for the establishment
Belting Release Bureau (Riemen-Freigabes- of a price at principal terminals in the United
telle) proposes to commandeer shortly all the States, and contains this language: "The
belting from the closed textile mills, which guaranteed prices for the several standard
would result in rendering four-fifths of the grades of wheat for the crop of nineteen hunGerman textile mills incapable of any output dred and eighteen, shall be based upon number
for some time after the war. According to a one northern spring or its equivalent at not less
recent letter by a prominent manufacturer in than $2 per bushel at the principal interior
the Norddeutsche AUgemeine Zeitung, only 70 primary markets. This guaranty shall not be
out of 1,700 spinning and weaving mills are dependent upon the action of the President unstill running at high pressure, 1,400 boot and der the first part of this section, but is hereby
shoe factories have been amalgamated into 300, made absolute and shall be binding until May
the oil industry has been concentrated in 15 first, nineteen hundred and nineteen."
mills out of 720 in operation under normal conAfter providing for the establishment of
ditions, and in the silk industry the number of grades and markets the act continues as follows:
spindles has been reduced from 45,000 to 2,500. "Thereupon the Government of the United
This policy has resulted in great hardships for States hereby guarantees every producer of
the smaller concerns, and it is feared that some wheat produced within the United States, that,
of them will not be in a position to reopen after upon compliance by him with the regulations
the war. It is also maintained by the critics prescribed, he shall receive for any wheat
of the policy that the methods adopted by the produced in reliance upon the guarantee with*
Government were in some cases arbitrary and in the period, not exceeding 18 months prethat action has been taken without consulting scribed in the notice, a price not less than
the interests of the entire trade. Some writers the guarantee price therefor as fixed pursuant
interpret this policy of the Government as a to this section."
preliminary step toward the establishment of
Mr. Hoover regards this as a positive obliGovernment monopolies after the war. Sev- gation on the part of the United States which
eral organizations ha,ve been formed for the should in itself constitute some measure of
protection of the interests of the owners of the security. He desires that the banks be inclosed industrial establishments, particularly formed that there is no wheat in the Black Sea
with a view to securing adequate representa- region, that there has been a crop failure in
tion in the war economy offices and proper in- Bulgaria, Roumania, and the Ukraine, and
demnification for removed equipment.
that, with the opening of the Dardanelles, it




1089

FEDEKAL RESERVE BULLETIN.

NOVEMBER 1,1918.

LICENSES CONSTITUTING PERMITS.
will be necessary for the allied Governments to
furnish wheat from the United States in order 7. Export licenses issued on and after October 16, 1918,
to maintain the populations of those countries for the exportation of iron or steel, or the products or
and protect them from starvation during the manufactures thereof, which are not covered by priority
classification, will in themselves constitute a permit anj
coming winter.

New Rules for Obtaining Export Licenses.

The War Trade Board issued the following
press statement under date of October 9:
1. The War Industries Board and the War Trade Board
announce in a new ruling (W. T. B. R. 258) that they have
jointly adopted the following rules and regulations lor the
purpose of simplifying the procedure of obtaining export
licenses from the War Trade Board, priority certificates
from the priorities committee of the War Industries Board,
and permits from the director of steel supply of the War
Industries Board.
2. The War Industries Board announces the withdrawal
of its regulations as set forth in P. C. Form No. 18, July 3,
1918, paragraph 6, requesting that applications for licenses
to export iron or iron and steel products should not be filed
with the War Trade Board unless the orders are covered
by either priority certificates or permits from the director
of steel supply.
FORM OF APPLICATION.

3. On and after October 14,1918, applications for licenses
to export any article on schedule " X P , " annexed hereto,
should be filed with the War Trade Board and must include the following papers properly executed:
(a) One application, Form X, to which should be attached—
(b) One each of such supplemental information sheets
as may be required by the rules and regulations of the War
Trade Board to be used in connection with shipments of
certain commodities and shipments to certain countries;
and
(c) New supplemental information sheet, Form X-26,
which will be ready for distribution by the War Trade
Board on and after October 14, 1918.
4. Applications which have Form X-26 attached will
not require Form X-2.
PRIORITY CLASSIFICATIONS.

5. The priorities committee of the War Industries Board
has awarded priority classification " C " to all articles (on
which priorities are issued) which are on the export
conservation list of the War Trade Board and are covered
by export licenses issued on and after October 16, 1918.
No class "C " certificates will be issued with such licenses.
If the article specified on the licenses is one on which
priorities are issued, and if no individual priority certificate
accompanies the export license, the license itself will be
evidence that the articles covered by it have been automatically awarded priority classification " 0 . "
6. Export licenses issued on and after October 16, 1918,
under these regulations, covering commodities on which
priority certificates are issued, will be accompanied by
individual priority certificates of the priorities committee
when in the opinion of the priorities committee a higher
rating than class " C " is warranted. These priority certificates will be issued by the priorities committee and
forwarded with the export license without further request
from the applicant.




approval from the director of steel supply for the filling
of the orders for the quantity of iron or steel specified
in such export license to the extent that such delivery
will not interfere with the delivery when and as required
of orders covered by priority.
8. It is the policy of the War Industries Board and the
War Trade Board to discourage and prevent exporters
and manufacturers from purchasing, manufacturing, or
producing articles on the export conservation list for the
fulfillment of specific export orders until an appropriate
export license has been issued. Instances have come
to the attention of the War Trade Board in which manufacturers before obtaining export licenses have manufactured articles for specific export orders which articles,
while useless for domestic consumption, could not under
the regulations of the War Trade Board be exported.
It is essential for the proper conservation of commodities
in the United States that this practice be stopped, and
it is the purpose of the War Trade Board to refuse licenses
to exporters who do not conform to this policy.
PRIORITY IN CERTAIN PRODUCTS.

9. The priorities committee announces that it undertakes where necessary to administer priority in the production of all raw materials and finished products save
foods, feeds, and fuel. The preference list promulgated
by the priorities board forms the basis for the distribution
of fuel. Priority is being administered generally on iron
and steel products, copper and brass products, electrical
equipment, and the products of which any of the above
form an integral part. Priority is not being administered
at this time on lumber or lumtier products, paper or paper
products, chemicals, brick, cement, lime, hides, pig tin,
tin plate, mine products, and numerous other items which
can not well be enumerated. It is not possible to prepare
lists in detail covering either pripritied or nonprioritied
products, and even in those mentioned above exceptions
will from time to time occur. Any inquiries with respect
to the commodities upon which priority is being administered should be addressed to the priorities committee
of the War Industries Board.
SCHEDULE " X P . "

Pig iron.
Ferrosilicon.
Spiegeleisen (frequently described as specular iron and
mirror iron).
Iron and steel: Scrap; ingots; billets; blooms; slabs;
sheet bars; skelp; wire rods; alloy steel; high-speed steel;
tool steel; bars (including flats 6 inches wide and narrower);
hoops and bands (including hot and cold rolled strip
steel); shapes (including beams, angles, channels, tees,
and zees); fabricated structural steel (including beams,
angles, channels, tees, zees, or plates one-eighth of an
inch thick or heavier, punched or shaped, including tanks
made of plates one-eighth of an inch thick or heavier);
plates (all classes, one-eighth of an inch thick and heavier
and wider than 6 inches and circles over 6 inches in
diameter; this includes No. 11 United States gauge but
not No. 11 B. W. gauge); sheets (all classes under oneeighth of an inch thick); boiler tubes; mechanical tubes;
boring tubes; oil-well casing; line pipe; drive pipe; castiron pipe; wrought-iron and steel pipe; poles; wire rope

1090

FEDEKAL RESERVE BULLETIN.

NOVEMBER 1,1918.

cable and strand, consisting of 6 "wires or more; rails and
splice bars; frogs and switches; railroad tie plates; railroad
track spikes^ railroad track bolts; boat spikes; wire;
wire nails; wire spikes; cut nails.

lated; but if its production at this crisis requires more
labor than will be saved in one* season's use, it should—
generally speaking—be substituted by other machines or
implements, in order to accomplish the immediate conservation of labor and materials.

A New Priorities Ruling.

LARGE AND VARIED INTERESTS.

"Your industry is so large, so varied, and so important
that the priorities division must in the future, as in the
past, avail itself of the efficient and patriotic assistance of
your farm implements committee in administering the
program here outlined. It will aslso with confidence rely
upon the whole-hearted cooperation of each member of
your industry with such committee and with this division
in determining _ upon a manufacturing program and a
basis for the distribution of your products which will
result in a maximum conservation of labor and materials
and a maximum production of foods and feeds, being
FARM TRACTOR SITUATION.
assured that when the war shall have been won the
The farm tractor situation presents one of the most problems which now confront us will have been solved. •'
striking illustrations of the necessity for flexibility in the
PRIORITIES DIVISION RULING.
plan for curtailment, although it is probable that producers of other products may also require similar treatFollowing is the ruling of the Priorities Division:
ment, continues the priorities commissioner.
Special rulings governing the output of farm tractors
Reference herein will be made to periods of 12 months
restrict makers who produced less than 10 tractors last each; that from October 1, 1917, to September 30, 1918,
year to the production of not more than 10 tractors the will be designated "First period." A careful survey of
coming year; makers who produced and had in field your industry in connection with the urgent war requireoperation 10 and less than 50 tractors may not produce ments has led to the decision that in the public interest
over 50 tractors; makers who produced and sold 50 or your iron and stoel consumption for the second period
more tractors will have their consumption of iron and should be 75 per cent of your consumption during the first
period, when it approximated 2,000,000 tons of iron and
steel reduced 25 per cent.
Signed pledges will be exacted from the manufacturers steel. The effect of a release of 25 per cent of your conto use materials on hand that may come into their posses- sumption during the past 12 months will be immediately
sion for the manufacture of tractors and farm operating felt on the war program. It is with confidence that the
equipment and parts, to reduce the tonnage of iron and War Industries Board relies upon your indispensable
steel as directed, to comply with the regulations of the industry lending the same whole-hearted and patriotic
conservation division of the War Industries Board as to assistance in accomplishing these economies that it has
economies and substitutions, and to produce only the always rendered in response to previous appeals. While
more essential farm operating equipment and parts and the importance of your industry and your place in the
program for the production of food for this Nation and its
to distribute the products only for essential uses.
allies can hardly be overstated, yet the supreme concern
at this critical period is that every possible contribution
"AN INDIRECT WAR INDUSTRY."
be made immediately and enthusiastically to the end
After an announcement that the greatly enlarged war that the war may be shortened and the victory made
program will absorb the greater portion of the iron and decisive.
steel production of the Nation, that reductions in allotThe necessity of reducing the allotments of iron and steel
ments of iron and steel to industries is necessary to prevent to your industry places upon you and the farm-implethe industrial consumption from obstructing the war pro- ments committee the responsibility of so applying the
gram, and that adjustments are being made after careful curtailment that your more essential products shall be
surveys that the most vital civilian demands may be sup- produced in sufficient quantities to meet all legitimate
plied, Judge Parker says to the agricultural implement demands for them and that your less essential products
and farm operating equipment industry:
,
shall be produced in greatly diminished quantities or not
" Yours is clearly not only an essential, but an indirect at all. The Priorities Division does not undertake to
war industry, and will be dealt with as such. The Nation direct you in the formulation or execution of a program of
must produce a maximum of foods and feeds, but through such responsibility. This is your problem. You are
rigid economies and increased efficiency of the farmers, equipped to solve it; and with your experience and ripe
the dealers, and the manufacturers this production must judgment you will, through teamwork, so adjust your
be accomplished with a reduced consumption of materials manufacturing program and utilize the curtailed allotment
and labor required to meet the war program. Speaking of materials that the theoretical injury may not prove real.
generally, the use of modern farm implements conserve
The plans for curtailment must, among other things,
labor, but it must be constantly borne in mind that the take account of the varying situation of the manufacturers
time element is more controlling now in connection with who have been in production for considerable periods, as
any conservation program than ever before. The results contrasted with those whose production period has been
must be practically immediate in order to contribute to relatively so short that they are still virtually in the exthe industrial drive which must sustain the military drive perimental stage. To apply to both of such groups an
on the battle fields of Europe. The use of a machine, in arbitrary percentage tonnage allotment plan would be
the manufacture of which large quantities of material and inequitable.
labor are consumed, may be economically sound and in
For your
normal times its manufacture and use should be stimu- Division hasguidance you are advised that the Priorities
decided:

An additional ruling of the priorities division of the War
Industries Board has been directed to the agricultural
implement and farm operating equipment industry, curtailing the consumption of iron and steel by the industry
25 per cent during the year beginning October 1, 1918,
over its consumption of iron and steel for the corresponding 12 months beginning October 1, 1917. This will effect
a saving in iron and steel for the direct war program of
about 500,000 tons.




NOVEMBElt 1, 1018.

(a) That the tractor makers who have produced less than
10 tractors during the "first period" are in the secondary
development stage, and that they are not to produce over
10 tractors during the "second period."
(b) That the tractor makers who have produced and had
in field operation 10 or more, and less than 50, tractors
during the "first period" are" in the secondary development stage, and that they are not to produce over 50 tractors during the "second period."
(c) That makers of products other than farm tractors
whose development situation shall be comparable to those
of the tractor makers described in the preceding paragraphs
are to produce according to the same rules.
(d) That the tractor makers who have produced and
sold 50 or more tractors during the "first period" and all
other manufacturers of farm-operating equipment who are
past their primary and secondary development stages will
receive during the "second period" not exceeding 75 per
cent of their consumption of iron and steel during the
'first period."

Swedish Prices and Capital Problems.
Conditions in Sweden affecting the status of
prices and capital issues afford an interesting
parallel to those in the United States. Some
time ago a committee was appointed composed of the president, of the State Bank, two
professors of political economy, and a number
of bank directors, comprising eight in all, to
look into the general situation. A review of
Swedish experience is given, as follows:
CIRCULATION OF BANK NOTES AND ITS EFFECT
UPON MARKET PRICES IN GENERAL.

An attempt has been made to point out that
an increase in the circulation of Bank notes indirectly connected with an increase in the
market prices led to considerable discussion.
In comparing these two subjects the experts
agreed that as a rule it was the advance in
prices which caused the necessity of an increased note circulation, and only in case of a
real surplus in bank notes, that is, a surplus
greater than the market could absorb for its
actual needs, would the increase of circulation
be the primary cause and occasion an inflation
in price.
The reasons for the high level of prices in
Sweden would seem to be due to the general
price inflation all over the world; and the restriction of imports, which caused further advance in prices in the home market. Against
these two powerful factors the embargo against
the importation of gold and the overcautious
policy of credit on the part of the State Bank
only served as a weak counter-measure.




1091

FEDERAL EESEKVE BULLETIN.

THE STATE BANK RATE OF DISCOUNT.

The bank experts do not believe that a reasonable increase in the present bank rate,
which is 7 per cent, would be a possible method
of easing present financial conditions, while a
considerable increase would seriously damage
legitimate business. Their idea is "that the
pressure which the rate of discount usually
exerts has lost its prestige under the extraordinary conditions prevailing* A reduction
in the discount rate from 7 per cent to 6 per
cent, on the other hand, would, mean a noticeable facilitation to the economic life. The national economists, however, do not care to disturb the present rate of discount; but if any
alteration is made, they prefer an increase, and
caution against any decrease in the rate so long
as indications do not point to a fall in the mar"ket prices.
THE GOLD EMBARGO.

The bank directors are of the opinion that
the State Bank should take a less stringent
attitude against the importation of gold, while
the political economists demand the strictest
sort of embargo to be kept up, the economists
no doubt believing that foreign countries should
be compelled to liquidate their indebtedness to
Sweden through shipments of commodities and
not through shipments of gold, of which there
seems to be sufficient reserve in Sweden.
FOREIGN CREDITS.

The committee believes that in order to
bring about a better regulation in the granting of credit to foreign countries permission
to export prohibited articles be given only after
the exporter has shown that the transaction
has taken place against prescribed conditions
of payment, and for the export of unprohibited
articles a declaration be shown to the customs
authorities that these specified conditions have
been adhered to. Thus the granting of creditto foreign customers may be safely restricted.
RATIONING CAPITAL.

It was generally agreed between all parties
that the best method to secure a stable financial market would be to restrict the circulation
of bank notes, and at the same time a control
be exercised on the part of the financial council,
to ration, so to speak, the capital of the country,
thus discouraging stock issues not absolutely
necessary during the war. The consent of the
financial council should be secured on all stock

1092

FEDERAL RESERVE BULLETIN.

and bond issues and loans. Communities
should not be permitted to issue bonds unless
an actual necessity for public works is shown.
Stock companies should not be permitted to be
formed at the present time unless such an enterprise can be shown to be a necessity or a
help to the country in general. Each case
should be thoroughly examined by the financial
council before permission is granted. All the
granting of credit on the part of the banks
should also be considerably restricted.
This committee also suggests that the import
of articles of luxury should be controlled and
limited through import prohibitions.
CONTROL OF IMPORTS AFTER THE WAR.

The economic experts also point out the necessity to control the imports on all articles
for a short period after the war. The keen
competition which is certain to take place
when peace is declared for the import of every
sort of commodity, it is feared will lead to
further inflation of prices, or wTill tie up unnecessarily the available foreign credit of Sweden.
Comprehensive and effective control must
therefore be exercised at that time over all
imports.
All the above tends toward Government
monopolization of finances, which in the case
of Sweden hardly seems necessary and in
reality is nothing more than a system based
upon the German model of war finances. Increased circulation of State bank notes seems
to be necessary in all countries on account of
present high level of prices, where the method
of payment by a draft against a personal account is not a general usage. On the other
hand, it is usually the case that in countries
where the check payment is limited, the use
of commercial acceptances is much more
prevalent.
The financial expert of the Frankfurter
Zeitung, in their issue No. 226, August 16,
1918, commenting upon this proposed action
in Sweden, points out the disadvantages of
this financial control. He believes that all
control of this sort destroys the personal
initiative and the quick conclusions necessary
for the prosperity of the business man. He
points out that the promotion of important
enterprises should not be subject to control or
investigation of bureaucratic officials, and that
their decision with regard to the rationing of
capital would be of a procrastinating and injudicious character. He also asks whether the
promotor is likely to submit his business secrets for the investigation of a body of Gov-




NOVEMBER 1,1918.

ernment officials. It is also likely that ways
and means would be found to avoid any such
regulations of this sort which would not enhance the business morale of the country. On
the other hand, he believes that a sharp control
and investigation in the issue of loans on the
part of the Government and municipalities, in
order to limit this to some extent, would be
desirable. The editor of the Frankfurter
Zeitung further comments on the entire matter l as follows:
' The Swedish plans are in fact very remarkable; the}^ remind one, in a small measure, it is true, of the conccssioning of capital
in Germany, but on the other hand differ considerably from this. With us the issue of new
stock and the formation of new stock companies is entirely subjected to Government approval, and indeed to the release of a specified
minimum amount, while the other employment of capital, the granting of credit, namely,
the use of personal moneys, is exempt, but in
Sweden this shall all come under regulation.
Even though it must be granted that the
Swedish proposal is of greater importance in
comparison with the German, at the same
time the fettering of the spirit of enterprise,
which already is not inconsiderable, is carried
to the highest point in Swedish plans."

Election of Directors.
Pursuant to the powers vested in it under
the provisions of the so-called Phelan bill,
which became law on September 26, the Federal Reserve Board has reclasssified the electoral groups for the election of class A and B
directors of the several Federal Reserve Banks.
Tuesday, November 19, has been designated
by the Board as the date for opening polls for
the election of directors to succeed those whose
terms expire on December 31, 1918. The polls
will remain open for 15 days as required by
law. Instructions in connection with the election of directors, together with the recent
amendment to the act relating thereto, were
printed in the October BULLETIN. The list of
directors of all classes whose terms expire on
December 31 follows:
DIRECTORS OF FEDERAL RESERVE BANKS WHOSE TERMS
EXPIRE DECEMBER 31, 1918.

District No. 1—Boston:
Class A—A. M. Heard, Manchester, N. H.
Class B—Chas. G. Washburn, Worcester, Mass.
Class C—Allen Hollis, Concord, N. H.

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

District No. 2—New York: p p
Class A—F. D. Locke, Buffalo, N. Y.
Class B—L. R. Palmer, Croton-on-Hudson, N. Y.
Class C—Geo. F. Peabody, Lake George, N. Y.
District No. 3—Philadelphia:
Class A—W. H. Peck, Scranton, Pa.
Class B 1—
Class C—Chas. C. Harrison, Philadelphia, Pa.
District No. 4—Cleveland:
Class A—S. B. Rankin, South Charleston, Ohio.
Class B—John Stambaugh, Youngstown, Ohio.
Class C—H. P. Wolfe, Columbus, Ohio.
District No. 5—Richmond:
Class A—H. B. Wilcox, Baltimore, Md.
Class B—Edmund Strudwick, Richmond, Va.
Class C—Howard Bruce, Baltimore, Md.
District No. 6—Atlanta:
Class A—L. P. Hillyer, Macon, Ga.
Class B 2—J. A. McCrary, Decatur, Ga.
Class C—Edward T. Brown, Atlanta, Ga.
District No. 7—Chicago:
Class A—Geo. M. Reynolds, Chicago, 111.
Class B 3—A. H. Vogel, Milwaukee, Wis.
Class C-Wm. A. Heath, Chicago, 111.
District No. 8—St. Louis:
Class A—F. 0. Watts, St. Louis, Mo.
Class B—David C. Biggs, St. Louis, Mo.
Class C—W. McC. Martin, St. Louis, Mo.
District No. 9—Minneapolis:
Class A—J. C. Bassett, Aberdeen, S. Dak.
Class B—F. P. Hixon, La Crosse, Wis.
Class C—Wm. H. Lightner, St. Paul, Minn.
District No. 10—Kansas City:
Class A—J. C. Mitchell, Denver, Colo.
Class B-—T. C. Byrne, Omaha, Nebr.
Class C—R. H. Malone, Denver, Colo.
District No. 11—-Dallas:
Class A—J. T. Scott, Houston, Tex.
Class B—Frank Kell, Wichita Falls, Tex.
Class C—W. B. Newsome, Dallas, Tex.
District No. 12—San Francisco:
Class A—Alden Anderson, Sacramento, Cal.
Class B—J. A. McGregor, San Francisco, Cal.
Class C—Walton N. Moore, San Francisco, Cal.

Transfers of Currency.

The Board, on October 2, sent out the following letter regarding payment by Federal
Reserve Banks oi expense incident to transfers
of currency to and from Federal Reserve Banks:
Confirming telegram of even date, I beg to advise that
the Board has authorized the inauguration at the earliest
possible date of the plan outlined in its circular letter
(X-1216) under date of September 20, with modifications
as hereinafter indicated:
Member banks.—(a) Payment of all postage, expressage,
insurance, etc., incident to shipments of currency 4 to and
from member banks.
pfe-. ^ H ^ y
m:iK
(b) Payment of charges on all telegrams received from
or sent to member banks in connection with currency,
exchange transfers, and deposit transactions.
1 Vacancy caused by death of G. W. F. Gaunt.
2 Class B director also to bo elected to fill unexpired term of Edgar B.
Stern, resigned.
s Class B director also to be elected to fill unexpired term of M. B.
Hutchison, deceased.
* Currency does not include silver or subsidiary coin.




1093

Nbnmember banks maintaining clearing accounts with
Federal Reserve Banks.—(a) Payment of postage, insurance,
and expressage in connection with shipments of currency
in settlement of clearing balances.
Nonmember banks on par list.—(a) All postage in connection with remittances made to cover collections (to be
provided for by inclosing return stamped envelope).
(b) All expenses incident to shipments of currency to
Federal Reserve Banks in payment of items sent for
collection.
You will notice that paragraph (a) under "member
banks " has been revised so as to omit, for the present at
least, the payment of postage, expressage, insurance, etc.,
incident to shipments to and from member banks of " collateral notes and bills for rediscount and securities deposited as collateral to member bank promissory notes and
notes re discounted." Paragraph (b) has been revised so
as to omit the payment of charges on all telegrams in connection with loans.
It is believed that payment by the reserve banks of
these expenses will have the effect of more nearly equalizing the advantages offered member banks, and will also
be helpful in our campaign for State member banks. The
Board, of course, in adopting this plan reserves the right
to modify or rescind it at any time upon reasonable notice
should it be deemed advisable.
You were also advised in the telegram above referred
to that the Federal Reserve Board appreciates the excellent results already attained by the Federal Reserve Banks
in gathering gold from the banks in their respective districts, and strongly urges that efforts be continued to the
end that all available gold be mobilized in the Federal
Reserve Banks. The Board authorizes you to absorb the
abrasion and to pay all expenses incident to the shipment
of gold to your bank and shipment of Federal Reserve
notes in exchange therefor.

Condition of National Banks.
The Comptroller of the Currency, on October 9, made the following statement:
According to the analysis of their sworn reports just
completed, the resources of the national banks of the
United States at the close of business on August 31, 1918,
amounted to $18,043,605,000, exceeding by more than
$1,500,000,000 the greatest resources ever shown by the
national banks at this season of the year.
On May 1, 1917, immediately before the launching of
the first liberty loan, the resources of the national banks
were $16,144,403,000. The amount of Liberty bonds and
certificates of indebtedness which the Government has
sold and collected for since that date, exclusive of certificates of indebtedness paid off during this period, is
§14,275,000,000.
Subscriptions for the larger portion of all three issu es o
the Liberty bonds were placed through the national banks
of the country; and yet their reports show that these banks
are to-day in stronger condition and have resources greater
by nearly $2,000,000,000 than they held before the first
Liberty bond was sold.
The increase over the total resources held June 29,1918,
was §204,103,000. The increase for the whole country,
exclusive of New York City, since June 29, 1918, was
$307,000,000, New York showing a reduction in this period
of $103,288,000. Forty reserve and central reserve cities
show in each city an increase in resources since the call of
June 29, while in 23 cities there was a reduction.
The cities whose national banks show an increase in resources since the last call, of approximately §5,000,000 or

1094

FEDERAL RESERVE BULLETIN.

over, were: Kansas City (Mo.), 36 millions; Chicago, 33
millions; Minneapolis and Baltimore, 15 millions each;
St. Louis, Richmond, and Wichita, 8 millions each; Houston, 7 millions; Omaha, 6 millions; Indianapolis, Nashville,
and Seattle, & millions each.
The only cities showing a reduction of ,$5,000,000 or more
in resources were: New York, 103 millions; Boston, 54
millions; Pittsbugrh, 23 millions; San Francisco, 15 millions; Philadelphia, 9 millions; and Albany, 5 millions.
The total increase in resources in the reserve and central
reserve cities, outside of New York City, was $60,000,000.
The net increase in resources of national banks outside of
the reserve cities was $248,000,000.
In 38 States the country banks increased their resources;
in 3.0 States they show a reduction. The only State in
which there was a reduction in resources of as much as one
and three-quarter millions was Connecticut, where the
reduction was $10,000,000.
The States in which the increase in resources of country
banks amounted to approximately $5,000,000 or more were:
Pennsylvania, 33 millions; Illinois, 32 millions; Teaxs, 25
millions; Ohio, 20 millions; Indiana, 18 millions; Kansas,
18 millions; Virginia, New Jersey, and California, 11 millions each; Iowa, New York, and Missouri, 8 millions each;
Oklahoma, 6 millions; Nebraska, South Dakota, and North
Carolina, 5 millions each.
It is particularly noticeable that the increase in nationalbank resources is well distributed throughout the whole
country and is confined to no special section.
Loans and discounts, on August 31,1918, 9,493 million—
a reduction since June 29,1918, of 126 millions, and an in-crease as compared with September 11, 1917, of 438
millions.
Total deposits August 31, 1918, 13,885 million—a reduction since June 29, 1918, of 135 million, but an increase
over September 11,1917, of 651 million.
Bills payable and rediscounts, 1,294 million—an increase
since June 29, 1918, of 410 million, and an increase over
September 11,1917, of 1,008 million, principally accounted
or by increased investment by the banks in United States
certificates of indebtedness.
United States bonds and certificates of indebtedness held
August 31, 1918, were 2,455 million dollars—an increase
over June 29, of 338 million, and an increase over Septem
ber 11, 1917, of 1,296 millions. This increase is nearly all
represented by the national banks' purchases of certificates of indebtedness.
Cash on hand and due from Federal Reserve Banks on
August 31, 1918, was 1,671 million dollars—a reduction as
compared with June 29 of 24 million, but an actual increase as compared with September 11, 1917, of $5,464,000.
The cash which the national banks had on hand and with
Federal Reserve Banks on August 31, 1918, plus their
holdings of United States bonds and certificates of indebtedness, amounted to $4,127,309,000. This amount,
after deducting the United States bonds held as a basis for
circulation, is nearly 25 per cent of the total deposits of all
the national banks, but allowance should of course be
made for that portion of the bonds and certificates of indebtedness which may be pledged against bills payable
&nd rediscounts.

Loans Against Commodities in Warehouse.
At a conference on the subject of cotton
warehousing, recently held at the offices of the
War Finance Corporation, Mr. R. L. Nixon, of
the Bureau of Markets of the Department of




NOVEMBER 1,1918.

Agriculture, stated the situation as to cotton
warehouse loans as follows:
"Some three or four weeks ago we had a preliminary conference with Mr. McLean in regard
to the cotton warehouse act, which was passed
here in 1916. I presume that most of us understand that this act is a permissive one, and
it simply authorizes the Secretary of Agriculture to license warehouses for the storage of
cotton, grain, fiaxseed, tobacco, and wool.
There has been a good deal of delay in starting
the work under this act, but we are now actually engaged in inspecting and licensing warehouses.
"In approaching warehousemen—we have
inquiries from three or four hundred, and we
have applications from about 25 warehousemen—the great difficulty in interesting the
warehousemen is to show them where they
would derive any particular benefit from the
Federal license.
SAFETY OF PAPER.

"The paper is much safer and sounder than
the warehouse receipts issued at the present
time, but this is a new proposition and many
of the bankers, especially the local bankers, are
not very much inclined to recognize a receipt
from a warehouse licensed and supervised by
the Government through our department and
actually bonded through the Government to
guarantee its obligations. So we are up against
the proposition 01 asking warehousemen to go
to the expense of a bond; to go to some trouble
in changing their methods of accounting, and
make other changes in their business arrangements, which naturally involves some considerable expense and some trouble, and if the
bank doesn't recognize the receipts of the
licensed warehousemen as more desirable security than the receipts issued by the present
warehouseman, we haven't much of a talking
point. I think it is a matter of the greatest
importance to bring the bankers to realize the
superiority of the receipts issued by licensed
and bonded warehousemen.
"Recently I attended some of the meetings of
the committee that came to Washington for the
purpose of inducing the Government, through
some agency, to establish what amounted to a
minimum price on cotton. Quite a number of
those people were bankers, and they stated
definitely—many of them did in private conversation—that they had advanced large sums
of money. One man stated that 95 per cent of
his loans, amounting to thirteen or fourteen mil-

NOVEMBEll 1, 1918.

1095

FEDEKAL RESERVE BULLETIN".

lion dollars, was secured by cotton, and it had
developed that most of this cotton was of a
very low grade. You know that the warehouse
receipts now, many-of them, do not state the
grade of cotton, and he loaned this money on
the assumption that it would average middling.
When the price of cotton was reduced very
materially, and when the differences between
high and low grades widened out to around 10
per cent, he and a number of other bankers
realized that they had paid out immense sums
of money on low-grade cotton, and it was on
cotton that in many instances would not be
worth the amount of the loan which the receipt
was given to secure; and our extensive investigations have convinced us that a great deal
of the financing is done on paper of that kind.
A receipt, generally speaking, is issued for a
bale of cotton. Now, under our act and under
the regulations, and under the forms of receipts that we have devised, it would be necessary for the receipts to show the weight and
grade, and they would be issued under proper
bond, and we are certain that they would be
superior.
"To repeat what I said in the beginning, we
are up against the difficulty of getting the
banker to recognize this superiority, as we
claim it, for this receipt. But if we can get
some Government agency that is intimately
and responsibly connected with financing to
take a definite position in favor of the receipts
issued by licensed and bonded warehouses, then
our work in licensing a large number of warehouses will be comparatively easy. As it is,
it is difficult and will probably take two or
three years to reach many people. It is too
slow a process.
QUESTION OF INSURANCE.

but the way it stands now the man who is in
favor of the lowest reduction named 10 per cent
as the minimum reduction, and the other man
expressed himself as being in favor of 25 per
cent, so I think it is safe to say that a licensed
warehouse would have a reduction in insurance
rate of riot less than 10 per cent and possibly as
much as 25 per cent.
"The warehouse charges vary greatly in the
different sections. Now Oklahoma, I believe,
has a State law which makes the maximum
charge for the first month 75 cents, and 15 cents
per month for each succeeding month. Incidentally, I understand that what they call the
State and Warehouse Commission—or the
Public Corporations Commission—has said that
that charge ought to be raised, and it seems
that this commission is of the opinion that it
could advance the charges. The idea for that
is that this 75 cents and 15 cents per month is
to cover storage, weighing, and, insurance.
That charge, I understand, was based in 1914,
when cotton was worth, say, $30 or $35 per
bale. Now, with cotton worth $150 or $17q
per bale, the warehouse with high insurance
rates, $3 per hundred, would find it impossible
to insure a bale of cotton for a year for the
amount of charges that they would, collect on
it under those old rates. The act itself states
that the Secretary may cancel the license where
a warehouseman "makes an exorbitant or excessive charge. Now, as we see it, a charge that
would be exorbitant in one case might be perfectly reasonable in another case,"
THE WAREHOUSE ACT.

The appropriate sections of the Federal
Warehouse Act are as follows:
PART 0.

"X went to Atlanta the other day to confer
with the Southeastern Underwriters Association and Mr. Dargan on that. No agreement
was reached there. One of the men in conference stated that the reduction in insurance
rates to licensed warehouses should certainly
not be less than 10 per cent. Another expressed the opinion that a reduction of not less
than 25 per cent should be made. Now, then,
those two agreed to have action taken on this
proposed reduction. It "would be submitted
to the different State rating bureaus, and a
definite decision would bo made in a week or
ten days. Now I have a feeling that in the
next week—certainly early next week—we will
be able to make some definite announcement,




That this part, to be known as the United States warehouse Act, be and is hereby enacted, to read and be effective hereafter as follows:
"That this Act shall be known by the short title of
'United States warehouse Act.'
"SEC. 2. That the term 'warehouse' as used in this Act
shall be deemed to mean every building, structure, or
other protected inclosure in which any agricultural product
is or may be stored for interstate or foreign commerce, or,
if located within any place under the exclusive jurisdiction of the United States, in which any agricultural product
is or may be stored. The term 'agricultural product'
wherever used in this Act shall be deemed to mean cotton,
wool, grains, tobacco, and flaxseed, or any of them. As
used in this Act,'person' includes a corporation or partnership or two or more persons having a joint or common
interest;' warehouseman' means a person lawfully engaged
in the business of storing agricultural products; and
'receipt' means a warehouse receipt.

1096

FEDERAL RESERVE BULLETIN.

"SEC. 3. That the Secretary of Agriculture is authorized
to investigate the storage, warehousing, classifying according to grade and otherwise, weighing, and certification of
agricultural products; upon application to him by any person applying for license to conduct a warehouse under this
Act, to inspect such warehouse or cause it to be inspecteds
at any time, with or without application to him, to inspec;
or cause to be inspected all warehouses licensed under thit
Act; to determine whether warehouses for which licenses
are applied for or have been issued under this Act are
suitable for the proper storage of any agricultural product
or products; to classify warehouses licensed or applying
for a license in accordance with their ownership, location,
surroundings, capacity, conditions, and other qualities,
and as to the kinds of Hcenses issued or that may be issued
for them pursuant to this Act; and to prescribe, within the
limitations of this Act, the duties of the warehousemen
conducting warehouses licensed under this Act with respect to their care of and responsibility for agricultural
products stored therein.
'' SEC . 4. That the Secretary of Agriculture is authoriz ed,
upon application to him, to issue to any warehouseman a
license for the conduct of a warehouse or warehouses in
accordance with this Act and such rules and regulations
as may be made hereunder: Provided, That each such warehouse be found suitable for the proper storage of the particular agricultural product or products for which a license
is applied for, and that such warehousemen agree, as a condition to the granting of the license, to comply with and
abide by all the terms of this Act and the rules and regulations prescribed hereunder.
"SEC. 5. That each license issued under sections four
and nine of this Act shall be issued for a period not exceeding one year and shall specify the date upon which it is to
terminate, and upon showing satisfactory to the Secretary
of Agriculture may from time to time be renewed or extended by a written instrument, which shall specify the
date of its termination.
"SEC. 6. That each warehouseman applying for a license
to conduct a warehouse in accordance with this Act shall,
as a condition to the granting thereof, execute and file with
the Secretary of Agriculture a good and sufficient bond
other than personal security to the United States to secure
the faithful performance of his obligations as a warehouseman under the laws of the State, District, or Territory in
which he is conducting such warehouse, as well as under
the terms of this Act and the rules and regulations prescribed hereunder, and of such additional obligations as a
warehouseman as may be assumed by him under contracts
with the respective depositors of agricultural products in
such warehouse. Said bond shall be in such form and
amount, shall have such surety or sureties, subject to
service of process in suits on the bond within the State,
District, or Territory in which the warehouse is located,
and shall contain such terms and conditions as the Secretary of Agriculture may prescribe to carry out the purposes
of this Act, including the requirements of fire insurance.
Whenever the Secretary of Agriculture shall determine
that a bond approved by him is, or for any cause has become, insufficient, he may require an additional bond or
bonds to be given by the warehouseman concerned, conf jrming with the requirements of this section, and unless the same be given within the time fixed by a written
demand therefor the license of such warehouseman may
be suspended or revoked.
"SEC. 7. That any person injured by the breach of any
obligation to secure which a bond is given, under the provisions of sections six or nine, shall be entitled to sue on
the bond in his own name in any court of competent jurisdiction to recover the damages he may have sustained by
such breach.




NOVEMBER 1,1918.

'"SEC. 8. That upon the filing with and approval by
the Secretary of Agriculture of a bond, in compliance with
this Act, for the conduct of a warehouse, such warehouse
shall be designated as bonded hereunder; but no warehouse shall be designated as bonded under this Act, and
no name or description conveying the impression that it is
so bonded, shall be used, until a bond, such as provided
for in section six, has been filed with and approved by the
Secretary of Agriculture, nor unless the license issued
under this act for the conduct of such warehouse remains
unsuspended and unrevoked.
"SEC. 9. That the Secretary of Agriculture may, under
such rules and regulations as he shall prescribe, issue a
license to^ any person not a warehouseman to accept the
custody of agricultural products and to store the same in a
warehouse or warehouses owned, operated, or leased by
any State, upon condition that such person agree to
comply with and abide by the terms of this Act and the
rules and regulations prescribed hereunder. Each person
so licensed shall issue receipts for the agricultural products
placed in his custody, and shall give bond, in accordance
with the provisions of this Act and the rules and regulations
hereunder affecting warehousemen licensed under this
Act, and shall otherwise be subject to this Act and such
rules and regulations to the same extent as is provided for
warehousemen licensed hereunder.
4
"SEC. 10. That the Secretary of Agriculture shall charge,
assess, and cause to be collected a reasonable fee for every
examination or inspection of a warehouse under this Act
when such examination or inspection is made upon application of a warehouseman, and a fee not exceeding $2 per
annum for each license or renewal thereof issued to a warehouseman under this Act. All such fees shall be deposited and covered into the Treasury as miscellaneous
receipts.
"SEC. 11. That the Secretary of Agriculture may, upon
presentation of satisfactory proof of competency, issue to
any person a license to classify any agricultural product or
products, stored or to be stored in a warehouse licensed
under this Act, according to grade or otherwise and to
certificate the grade or other class thereof, or to weigh the
same and certificate the weight thereof, or both to classify
and weigh the same and to certificate the grade or other
class and the weight thereof, upon condition that such
person agree to comply with and abide by the terms of this"
Act and of the rules and regulations prescribed hereunder
so far as the same relate to him.
"SEC. 12. That any license issued to any person to
classify or to weigh any agricultural product or products1
under this Act may be suspended or revoked by the
Secretary of Agriculture whenever he is satisfied, afteropportunity afforded to the licensee concerned for a hearing, that such licensee has failed to classify or to weigh any
agricultural product or products correctly, or has violated
any of the provisions of this act or of the rules and regulations prescribed hereunder, so far as the same may relate
to him, or that he has used his license or allowed it to be
used for any improper purpose whatsoever. Pending
investigation, the Secretary of Agriculture, whenever he
deems necessary, may suspend a license temporarily without hearing.
"SEC. 13. That every warehouseman conducting a warehouse licensed under this Act shall receive for storage
therein, so far as its capacity permits, any agricultural
product of the kind customarily stored therein by him
which may be tendered to him in a suitable condition for
warehousing, in the usual manner in the ordinary and
usual course of business, without making any discrimination between persons desiring to avail themselves of warehouse facilities.

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,3 018.

1097

"SEC. 14. That any person who deposits agricultural the receipt unknown to the warehouseman or his agent who
products tor storage in a warehouse licensed under this Act- issues it. a statement of the fact that advances have been
shall be deemed to have deposited the same subject to the made or liabilities incurred and the purpose thereof shall
terms of this Act and the rules and regulations prescribed be sufficient; (k) such other terms and conditions within
hereunder.
the limitations of this Act as may be required by the Sec"SEC. 15. That grain, Qaxeeed, or any other fungible retary of Argiculture; and (1) the signature of "the wareagricultural product; stored for interstate or foreign com- houseman, which may be made by his authorized agent:
merce, or in any place under the exclusive jurisdiction of Provided, That unless otherwise required by the law of the
the United States, in a warehouse licensed under this Act State in which the warehouse is located, when requested
shall be inspected and graded by a person duly licensed to by the depositor of other than fungible agricultural products, a receipt omitting compliance with subdivision (g)
grade the same under this Act.
* * SEC . 16. That every warehouseman cond acting a ware- of this section may be issued if it have plainly and con'
house licensed under this Act shall keep the agricultural spicuously embodied in its written or printed terms a
products therein of one depositor so far separate from agri- provision that such receipt is not negotiable.
cultural products of other depositors, and from other agri'•'SEC. 19. That the Secretary of Agriculture is authorcultural products of the same depositor for which a sepa- ized, from time to time, to establish and. promulgate
rate receipt has been issued, as to permit at all times the standards for agricultural products in this act'defined by
identification and redelivery of the agricultural products which their quality or value may be judged or determined:
deposited; but if authorized by agreement or by "custom, Provided. That the standards for any agricultural products
a warehouseman may mingle fungible agricultural products which have been, or which in future may be, established
with other agricultural products of the same kind, and by or under authority of any other act of Congress shall be,
grade, and shall be severally liable to each depositor for and are hereby, adopted for the purposes of this Act as the
the care and redelivery of his share of such mass, to the official standards of the United States for the agricultural
.same extent, and under the same circumstances as if the products to which they relate.
agricultural products had been kept separate, but he shall
"SEC. 20. That while an original receipt issued under
at no time while they are in Ms cutsody mix fungible this Act is outstanding and uncanccled by the warehouseagricultural products of different grades.
man issuing the same no other or further receipt shall be
"SEC. 17. That for all agricultural products stored for issued for the agricultural product covered thereby or for
interstate or foreign commerce, or in any place under the any part thereof, except, that in the case of a lost or deexclusive jurisdiction of the United States, in a warehouse stroyed receipt a new receipt, upon the same terms and
licensed under this Act original receipts shall be issued subject to the same conditions and bearing on its face the
by the warehouseman conducting the same, but. no re- number and date of the receipt in lieu of which it is issued,
ceipts shall be issued except for agricultural products may be issued upon compliance with the statutes of the
actually stored in the warehouse at the time of the issuance United States applicable thereto in places under the exclusive jurisdiction of the United States or upon complithereof.
"SEC. 18. That every receipt issued for agricultural ance with the laws of any State applicable thereto in any
products stored in a warehouse licensed, under this Act place not under the exclusive jurisdiction of the United
shall embody within its written or printed terms (a) the States: Provided, That if there be in such case no statute
location of the warehouse in which the agricultural prod- of the United States or law of a State applicable thereto
ucts are stored: (b) the date of^issue of the receipt; (c) the such new receipts may be igsue'd upon the giving of satisconsecutive number of the receipt: (d) a statement whether factory security in compliance with, the rules and regulathe agricultural products received will be delivered to the tions made pursuant to this Act.
bearer, to a specified person, or to a specified nerson or his
" SEC. 2.1. That a warehouseman conducting a warehouse
order; (e) the rate of storage charges; (:t) a description, of the licensed under this Act, in the absence of some lawful
agricultural products received, showing the quantity excuse, shall, without unnecessary delay, deliver the
thereof, or, in case of agricultural products customarily put agricultural products stored therein upon a demand made
up in bales or packages, a description of such, bales or pack- either by the holder of a receipt for such agricultural
ages by. marks, numbers, or other means of identification products or by the depositor thereof if such demand be
JiSod t i e weight oii such bales or packages: (g^ the grade or accompanied with (a) an offer lo satisfy the warehouseother class of the agricultural products received and the man's lien; (b) an offer to surrender the receipt, if negotistandard or description in. accordance with which such able, with such indorsements a« would be necessary for the
classification has been made: Provided, That such grade negotiation of the receipt; and (c) a readiness and'willingor other class shall be stated according to the official stand- ness to sign, when the products are delivered, an acknowlard of the United States applicable to such agricultural edgment that they have been delivered if such signature
products as the same may be fixed and promulgated under is requested by the warehouseman.
u
authority of law: Provided further, That until such official
SEC. 22. That a warehouseman conducting a warehouse
standards of the United States for any agricultural product licensed under this Act shall plainly cancel upon the face
or products have been fixed and promulgated, the grade or thereof each receipt returned to him upon the delivery by
other class thereof may be stated in accordance with any him of the agricultural products for which the receipt was
recognized standard or in accordance with such rules and issued.
regulations not inconsistent herewith as may be prescribed
" SEC. 23. That every warehouseman conducting a wareby the Secretary of Agriculture; (h.) a statement that the house licensed under this Act shall keep in a place of safety
receipt is issued subject to the United States warehouse complete and correct records of all agricultural products
Act and the rules and regulations prescribed thereunder; stored therein and withdrawn therefrom, of all warehouse
(i) if the receipt be issued for agricultural products of which receipts issued by him, and of the receipts returned to and
the warehouseman is owner, either solely or jointly or in canceled by him, shall make reports to the Secretary of
common with others, the fact of such ownership; (j) a state- Agriculture concerning such warehouse and the condition,
ment of the amount of advances made and of liabilities contents, operation, and business thereof in such form and
incurred for which the warehouseman claims a lien: Pro- at such times as he may require, and. shall conduct said
vided, That if the precise amount of such advances made warehouse in all other respects in compliance with this
or of such liabilities incurred be at the time of the issue of Act and the rules and regulations made nereunder.




88521—18

8

1098

FEDEft&L BEEEBYE BT7XJM&XI3T.

" SEC. 24. That the Secretary of Agriculture is authorized to cause examinations to be made of any agricultural
product stored in any warehouse licensed under this Act,
Whenever, after opportunity for hearing is given to the
warehouseman conducting such warehouse, it is determined that he is not, performing fully the duties imposed
on Mm by this Act and the rules and regulations made
hereunder, the Secretary may publish his findings.
"SEC, 25. That the Secretary of Agriculture may. after
opportunity for hearing Ms been afforded to the ^licensee
concerned, suspend or revoke any license issued to any
warehouseman conducting a warehouse under this Act, for
any violation of or failure to comply with any provision of
this Act or of the rules and regulations made hereunder or
upon the ground that unreasonable or exorbitant ^cimrges
have been made for services rendered, Pending investi*
gation, the Secretary of Agriculture, whenever he deems
necessary, .may suspend a license temporarily without
hearing.
"SEC. 28. That the Secretary of Agriculture from time
to time may publish the results of any investigations made
under section three of this Act: and he shall publish the
names and locations of warehouses licensed and bonded
and. the names and addresses of jrersons licensed pnder this
Act and lists of all licenses terminated under this A.ct and
the causes therefor.
"SEC. 27. That the Secretary of Agriculture is authorized through officials, employees, or agents of the Department of Agriculture'designated'by bim to examine all
books* records, papers, and accounts of warehouses licensed under this Act and of the warehousemen conducting such warehouses relating thereto.
"SEC. 28. That the Secretary of Agriculture shall from.
time to time make such rales and regulations as lie may
deem necessary for the efficient execution of the provisions
of this Act.
" SEC. 29. That nothing in this Act shall be construed to
conflict with, or to authorize any conflict with, or in any
way to impair or limit the effect or operation of the laws of
any State relating to warehouses, warehousemen, weighers,
graders, or classmen; but the Secretary of Agriculture is
authorized to cooperate with such officials &e are charged
with the enforcement of such. State laws in such States &n&
through such cooperation to secure the enforcement of the
provisions of tins Act; nor shall 1MB Act be construed so
as to limit the operation of any statute of the United. States
relating to warehouses or warehousemen, %velghers, graders,
or classifiers now in force in. the District of Columbia or in
any Territory or other place under the exclusive jurisdiction of the United States.
"SEC. 30. That every person who shall forge, alter,
counterfeit, simulate, of falsely represent, or shall, without
proDer authority use, &ny license issued by the Secretary
of Agriculture under this Act, or who shall violate or fail
to comply with any provision of section eight of this Act,
or who shall issue or 'utter a false or fraudulent receipt or
certificate, shall be deemed guilty of a misdemeanor, and
upon conviction thereof shall be lined not more than $500
or imprisoned not more than six months, or both, in the
discretion of the court.
"SEO. 31. That there is hereby appropriated, out of
any money in the Treasury not otherwise appropriated,
the sum of $50,000,t available until expended,'for the
expenses of carrying into effect the provisions of this Act,
including the payment oi: such rent and. the employment
of such, persons and means as the Secretary of Agriculture
may deem, necessary in. the city of Washington and elsewhere, and he is authorized, in his discretion^ to employ
qualified persons not regularly inathe service of the United
States for temporary assistance in carrying out the purposes of this Act, aid out of the moneys appropriated by
'this Act to pay the salaries and expenses thereof.




"SEC, 82. That if any clause, sentence, paragraph, or
part of this Act shall, for any reason, be adjudged by any
court of competent jurisdiction to be invalid/such'judgment shall not affect, impair, or invalidate the remainder
thereof, but shall be confined in its operation to the
clause/ sentence, paragraph, or^ yarfc thereof directly
involved in the controversy in widch. such judgment shall
have been rendered.
"SEC. 33, That the right; to amend, altev, or repeal
this Act is hereby expressly reserved."'

Stale Batiks and Trmt Companies Admitted.
The following list shows the State banks
trust companies which have been admitted to
membership in the Federal Reserve System
during the month, of October,
Eigiit hundred ®BA fifty-seven State institutions are now members of the system,
having a total capital of l335;585,807y total,
surplus of $390,649,881, and total resources of
$8,832/732,11.1.
Total repiifei, | Surplus. sources.
DkMcl No.
Federal Trust Co., Newark, N. . 7 , . . . . . . 31,000,000 3500.000
5f61
Bank of Hicksville, Hicksyilie, N. Y . . .
23,000 70'. 000
813,09?,
Citizens Ban's:,. Ferry, N. Y
\
50.000 oOjOOO 1,124,656
Alliance Bank, Rochester, N. Y .
500'. 000 500,000 13,025,982
Columbia Bank, Now York, N. Y
1,000)000 500,000 17,274,278
Farmers & Merchants Bsnk, Boo<;:;.vn,
N.J
75,000 I 25,000
410,975
District No. 8.
Equituhfa Trust Co.. Wilmington, I?osL.;
District No. A.

500.000 j 500,000

Title Guar&ntee & Trust. Co. 3 Lexington, ',
Ky.. „
I. 1,5(5,000
Dolfar Savings •«& Trrist Co.. Youngs- !
town, O h i o . . . .
. ' . . . . . . . r . . . j 1,300.000
Farmers Equity Bank, Brooksvllle, Ky.} ' 25', 000
District .No. 5.

Bt 20», 745

':
985,234
500,000 19,672,795
12,500

[

Commorciai and Savings Bank, Ifior- i
enoe,S. C .
'
\
Sank of Georgetown, Georgetown, B. C ;

125.000
I00'r000

25,000
100,000

743,026
ft, 073,895

60,000

20,000

278,886

District No. 8.
The Hartwell Bank, Hartwell, Ga
.!
Fointe Coupee Trust; & Savings Bank, j
New Roads, La.
I
American Bank & Trust Co., New
O rlean s, L a

60,000
200,000

80,000
20,000

District No. 7.

The La Grange Stats Bank, La Grange. .
ni...
1
::;..
;..
50,000 25,000 I 1,034,221
ni...
wa
50000
50,000
146,136
Iowa Savings Bank Audubon I o w a JJ
Bank, Audubon, Iowa..
712,301
Bellevue State Bank, Bellevue, Iowa...! 30,000
25,000
160,412
Farmers State Bank of Ellsworth, Iowa, j
475,747
Farmers Savings Bank. Roland, Iowa..j 35,000 10,000
456,78?
Farmers Savings Bank, Remsen, Iowa „ | 50, (K)0 10,000
Charleston Trust & Savings Bank, j
80,000 12,000
Charleston, III....
s
Contra! State Bank, Bes ftoines, Iowa.. 250^000 250,000 5,547,611
Lockridge Savings Banks, Lockridge,
25,000 10,000
851,535
Iowa
......I..
.'......„..'...
50,000 10,000
State Savings Bank, Logan, Iowa
484,227
50,000
City State Bank, Ogden., Iowa
555.816
o
35y000
Terril Savings Bank, Terril, Iowa.....
Waterloo Bank & Trust; Col, Waterloo,
SSOOtGOOIowa......
...„•„

1099

FEDEBM, KKSEEYE BULLETIN.

1, 191S.

Total resources.

! Capital. !
!
"
|
Wo, 7» Continued.
Will&mston State Bank, Willisxnston,
Mich
Jfermington Siase Savings Bank. Ferns.- I
Jngton,Mich........./....,..
....|
.Frankecmuth State Bank, JSTranken- i
muth, Mich
..,!
'Fremont State Bank, Frsmont, M-eh.,,.1
G-rosvene™ 'Savings Bunk. Jonesviue, ;
Mich..,
'..,..... J
, . ^. j
Benton Harbor SiaU Bank, Bent on I
Harbor. Mich
|
Big Rapids Bhvinisi 3a;ak, Big Hanids, j
.......
.
....
i
O&ss Countv State Sank, Cassor,Gl*s,;i
MSch..,.:
:.... ; .
The United Savins Bank oi' Detroit. I

50,000 I

1050C0

350,217

5,000
I5,00Q
25,000

745,459 !
539;349 :

25, CW)

OJS7»050

203, (KH) 1 27,000

1,2:36,75-4

l.i), OCK)
i0,000 |
oO-.). 000 | .159,000

3,742,075

a

Commercial State Sa-virgs Bank. Greon - I 50,000 i 10.000
70-J, 27^5
vine, Mich.,...
..'
i
1,473,516
S
Holland City State Bank, HoiJand, Mich i 100'. 000 ; 10.000
464,912
251000
City State .Bank, Lowell, Mich
!
480S84
2 ^ 0 0 0 j 12,000
Peoples Bank, Manchester, Mich.
I
Commercial Savings Baiak, .Marsaall, I 100.000 | 2^,000 1,053,009
::
. : . }
M
i
c
h
:
:
:
Ousted Stats Bank, Ousted, Mich } \
25^000 i
s;ooo
Citizens State Savings Biink, Ossega, I
212,523
Mich,..,
.
"......
i
33,000 | % mo
Paw Paw Savings Bask, Paw Paw. Mteh!
•10,000!
Kedibrd State Bavings Bank, Hedsord, j
•516.753
25.000 I
Mich......
...J
6.100
C i t t e n State S»nk r South Hsveu,M!c-jQ.!
5C1',OGO | •\ik 000
a?2;35T
Dfetrici # k £ .

i

.lonoslKiro Truss Co., Jotfisboro, Ark
j
State Bank o/Holies & Sons, Grerciviiie, |
&tate Bank & Trust Co., Harrodsbursr. *
Kv
.'. ,*.
'.'..;
Kentucky Title Savings BarJc & T
Co L i i l l K

•iOO,CQO j

1,153,117

100,000

21,000

608,877

350,000

65,000

5,703.035
226)764

25.000 ;

n e s fe
Loiiia, Mo

50,000

100,000 j 30.000

u',aco
355)000
22,500

252, ms

Commercial Failures Reported.
Each succeeding moxith discloses substantial
reduction in the number of failures in the United
States in comparison with ail recent preceding
years. During three weeks of October only
450 commercial insolvencies were reported to
R. G, Dun & Co., against 692 .in the corresponding period of 1917. The statement for
September—the latest month for which complete statistics are available --shows 674 de~
faults for $17,407,130, as contrasted with 983
for $11,903,051 last year, and. 1,154 in September,' 1918, for *ll',569,078.p While it thus
appeal's that the September liabilities, owing
to several reverses of unusual magnitude, are
considerably larger than in both 1917 and. 1916,
the number is materially less, and is, in fact,
the smallest on record for the month. More
than this, BO few failures have not been reported in any previous month back to October,
1899, Separated according to Federal Reserve districts, the September returns disclose
numerical decreases from last year in every
instance, except in the seventh district, where
an 'increase of 12 appears, _ The exhibit as to
liabilities is not so "favorable, for larger totals
are shown by the first, second, third, seventh,
eighth, and eleventh, districts, and in most cases
the expansion is quite marked.
Failimu during September,
Liabilities,

.'/Vs. # .

Security Stata Bnak &f Lewistozi, M a a
State Bank of New Kichiand, Hew
Kiciiiacd, Mina
Aeclazn&tion Staio Bank, Nowell. S.
Dak
.......i
Bisiria :Vt-. M.

50,000

1918

20,000

25.000

$1,978,600
5,188,489
4,223,184
582,903
245.936
257,383
3,453,050
395,975
mi, 400
182,859
272.521
321', 930

$029,49.1
4,291,834
548,914
878,43S
715,091
831,417
1,588,140
300,577
410,523
587,860
223,142
1,117,62ft

| WS j 17,40^130

11,903,051

(

SexSiricy State B&nk:. Ponea CItv.. pkla..!
<&jsiflrican State B&nk, LincohiJ Nebr...l

100,000 ! 10,000
100,000 j . . . / . . . . . ;

First; Guaranty B'iate Bask, Collizis- !
v^Jiie, Tex....
._
,.!
'i'lrat State Bank, Lorenzo, T e x . . . .
:
:
.First State Bank, Sablnal, Tex
Sirst State Bank, Tsrre!^ Tex.,
Srst
Tex
First G a r t S t t Bank,Ti
Giaaraaty State B k Tiora., Ts».
T^e Gusirauty S^ato Bsnkj Trenton,

25,000
25,000
SO, 000
100.000
30)000

I 6,000
!...
J 25., 000
! QOS0(K3
i 7,500

25.000 J

T&& P e o p l e Bank, Cambridge, I d s & j . . . !
40,00(5
Bsnfe of Oro&ao, Orofiao, I d a h o .
I 25./0&J
PHJabo S t a t e B a s k , p i e a b o , I d a h o

i

25. GOO

Pottatch Stats Bank, ?ot.lat£h, Idabo..!
50,000
Keita Stats Bank, Delta, Utah
j
25,000
A. 'Mmrstm Banking CoaiDaiiy,, Placer- |
vilie t Cal...
.I.-.."...;.....!
SO, 000
Union'State Bank, Nesperce, Idaiio
!fiO,000
CJnlon Central Bank- May, Idaho
|
30,000
Redmond Bank oi Commerce, Red- j
mend, Orog
*«
..-.-.-...}

5.0l>0

111,351

2,000

276,202
236,392

...l

559.959
20?; 470
^6,000 I 827,865
9,500 1 278,422
79,847
10,000
4,1300

Notfs.—The Fanners State B a n k of St. Oiaf, 'Iowa, hay decided not
to complete its membership b y making payment on account of capita]
stock, &n& it is, therefore, not a member of t h e Federal Reserve System.
The Coa&at© State Bank, CoaSgate, Okfa., "has lictnidated and oonsoli
&&V8& Yrlthms Firat Natloaal B a s k of Coalgato.




19.17

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
28, 1918, to October 25," 1918, inclusive:
New charters issued to
With capital of
Increase of capital approved for
With new capital of.."
"

6
7

$235,000
2{ 735; 000

1100

FEDERAL RESERVE BULLETIN.
Banks.

Xovj;Au;t:!i 1, 1018.

WHOLESALE PRICES.

Aggregate number of new charters* and
Banks increasing capital
13
In continuation of figures shown in the OctoWith aggregate of new capital authorized
$2,970,000 ber BULLETIN there are presented below
Number of banks liquidating (other than
monthly index numbers of wholesale prices for
those consolidating with other national
the period January to September, compared
banks)
."
3
Capital of same banks
155.000 with like figures for September of previous
Number of banks reducing capital
0
years, also for July, 1914, the month immedi"Reduction of capital
T.
0
ately preceding the outbreak of the great war.
Total number of banks going into liquidaThe general index number is that of the United
tion or reducing capital (other than those
consolidating with other national banks). 3
States Bureau of Labor Statistics. In addition
Aggregate capital reduction
'.
.155,000 there are presented separate numbers for cerThe foregoing statement shows the aggregate
tain particular classes of commodities in accordof increased capital for the period of the
banks embraced in statement was
2,970,000 ance with plans announced, in previous issues
Against this there was a reduction of capital
of the BULLETIN.
owing to liquidation (other than for consoliQuotations of two classes of worsted yarns,
dation with other national banks) and reducJ
tions of capital of
155,000 namely, 2-40's and 2-50 s, had to be omitted.
Net increase

2,815.000

i n addition to the changes noted above, one bank, with
capital of 3200,000, was placed in the hands of a receiver
during this period.

Acceptances to 100 Per Cent.
Since the issue of the October BULLETIN
the following banks have been authorized to
accept drafts and bills of exchange up to 100
per cent of their capital and surplus:
Bank of Pittsburgh, N. A. Pittsburgh, Pa.
Virginia National Bank, Norfolk, Va.
National State & City Bank, Richmond. Va.
First National Bank, Milwaukee, Wis.
Mechanics-American National Bank, St. Louis, Mo.
"National Bank of Commerce, St. Louis, Mo.
Third National Bank, St. Louis, Mo.
State National Bank, Honey Grove, Tex.
Seattle National Bank, Seattle, Wash.
Exchange National Bank, Spokane, Wash.
Spokane & Eastern Trust Co., Spokane, Wash.
Hands Trust & Savings Bank, Chicago, 111.
Central State National Bank, Memphis, Tenn.
Old National Bank, Spokane, Wash.
Fourth National Bank, Atlanta, Ga.

Fiduciary Powers.
The application of the following bank for
permission to act under section li(k) of the
Federal Reserve Act has been approved since
the issue of the October BULLETIN :
DISTRICT NO. 2.

Registrar of stocks and bonds:
Chemical National Bank, N
New York Citv.




On the other hand, quotations for cabbage,
which had been dropped temporarily, have been
secured for the months of August and September, and the commodity is again included in the
calculation of the index numbers for the latter
month. Index numbers for September are provisional, duo to the fact that certain, of the data
were not received in time to render thorn available for use in the calculations.
A further rise in prices between August and
September is indicated in the table which follows. The general index number of the Bureau
of Labor Statistics has increased from 202 to
207, the increase being duo largely to the rise
in the prices of consumers7 goods, the index
number of the latter group showing an increase
from 205 to 209. Within the group, cotton
textiles, potatoes, and corn meal are the only
important commodities which have declined in
price. This decline is, however, more than
offset by a rise in the prices of certain classes of
foodstuffs, notably granulated sugar, butter,
milk and eggs, and meats.
For the group of raw materials an increase of
the index number from 200 to 204 is shown.
This increase is due entirely to the increase in
prices of the farm and animal products. The
numbers for both forest products and mineral
products remain unchanged, the former at 143
and the latter at 180. The individual items of
the former subgroup are practically unchanged
in price, while in the mineral products group a
slight increase in the price of anthracite coal
has been offset by a decrease in the price of
pig tin. The number for the animal products
subgroup shows an increase from 215 to 219,
due to an increase in the prices of cattle and
hogs. The largest increase, from 246 to 255, is
shown by the number for the farm products sub-

1101

FEDEBAL BESEBVE BULLETIN.

NOVEMBER 1,1918.

group. In this group the rise in the price of
cotton accounts for almost the entire increase
in the index number, the fall in the price of
com being largely offset by the increase in the
price of hay.
The index number for the group of producers7
goods shows an increase from 199 to 203.

Among the commodities included in the group,
cotton yarns and certain of the drugs and
chemicals have declined slightly in price. Rises
in the price of raw sugar, also of cement, paper
and wood pulp, cottonseed meal, and certain of
the drugs and chemicals account for the increase
in the index number for the group as a whole.

Index numbers of wholesale'prices in the United States for 'principal classes of

commodities.

(Average price for 1913=100.)

Raw materials.
Year and month.

T-JV 1<>M
Sopfernbor
Sept ember
'»,'•> ni ^rpl'or
^.'ipl oinber

All commodities
(Bureau
Producers' Consumers' of Labor
goods.
goods.
Slaiistics
Total raw
index
materials.
number).

Farm
products.

Animal
products.

Forest
products.

Mineral
products.

102
.104
302
138
214

106
110
104
125
195

97
96
92
95
129

88
86
92
117
167

98
100
98
121
181

92
100
99
142
203

103

240
242
249
243
226
232
237
246
255

174
]76
178
193
201
188
209
215
219

130
131
135
137
138
138
140
143
143

171
172
172
170
173
171
ISO
180
180

183
184
187
190
189
189
196
200
204

181
184
187
190
192
194
196
199
203

192

1914 1915 - - 1016
19^7
1918.

Qrt T W-fk Tr ,h,ov

In order to give a more concrete illustration
of actual price movements there are also presented in/tho following table monthly actual
and relative figures covering the same period

108
99
130

175

193
189
193
194
197
202
205
209

99
103
98
127
182
185
187
187
191
191
193
198
202
207

for certain commodities of a basic character.
The actual average monthly prices shown in the
table have been abstracted from the records of
the United States Bureau of Labor Statistics.

Average monthly wholesale prices of commodities.
[Average price for 1913=100.]

Corn, No. 3,
Chicago.

Cotton, middling, I
N e w Orleans.

W h e a t , N o . 1,
northern spring,
Minneapolis.

!

Wheat, No. 2,
red winter,
Chicago.

Year and month.

July, 1914
September,
September,
September,
September,

: SO. 7044
. 7748
191-1... i
. 7289
1915...;
. 8522
1916...'
1917...' 2.06L3

114
120
118
.138
335

30.1331
.0838
. 1053
.1532
.2160

1918.
Tan nary
February
March
April
May
June
July
August
September

1.6850
1.6375
1.5563
1.5850
1.5250
1.5125
1.5900
1.6225
1.5313

274
260
253
258
248
246
258
264
249

. 3105
.3097
.3291
. 3350
.2894
.3066
.2945
.3038
.3578




—

Average
price per
bushel.

A verago
price per
'pound.

Average

105 i §0.8971
66 j 1.1364
. 9811
1.6080
121
2.2213
170
244
244
259
264
228
241
232
239
282

2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.223i
2.2169

Hides, packers',
heavy native
steers,'Chicago.

Cattle, steers,
good to choice,
Chicago.

Vp i Average
ve p i . j c e r > e r
price. A

Relative
price.

Average
price per
100
pounds.

SO.8210
103
1.1069
130
1.0760
112
184 i 1.5344
254 ! 2.1775

83
112
109
156
221

$9.2188
9.7313
8.9500
9.8000
14.9875

108
114
105
115
176

2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.2470
2.2325
2.2363

220
220
220
220
220
220
228
226
227

13.1125
13.0750
13.2313
15.1750
16.4167
17.1750
17.6250
17.8250
18.4100

i«|

248
248
248
248
248
248
248
255
254

Average
priee per Relative
price.
pound.

154 i
156
178
193
202
207
210
216

.2100
.2650
.2600
.3300

105
114
144
141
179

3280
2925
2625
2719
3110
3300
3240
3000
3000

178
159
143
148
169
179
176
163
163

1102

FEDERAL RESERVE BULLETIN.

NOVKMBEE 1, 1938.

Average monthly wholesale prices of commodities—Continued.
[Average price for 1913=100.]

Hogs, light,
Chicago.
Year and month.

July, 1914
September, 1914.
September, 1915.
September, 1916.
September, 1917.
January
February...
March..'
April
May
.Tune
July
August
September..

Wool, Ohio. 1-2
grades, scoured.

Average
! price per Relative
| 100
I pounds. price.

Average
price per
pound.

Relative
price.

88.7563
9.0188
7.7000
10.7750
18.4250

104
107
91
127
218

SO. 4444
.4583
. 5714
. 6857
1.3714

94
97
121
146
291 i

16.2125
10.6938
17.4250
17.5100
17.5000
15.5250
18.0000
19.7750
20.0700

192
197
200
207
207
184
213
234
237

1.4545
1.4545
1.4545
1.4545
1.4182
1.4182
1.4365
1.4365
1.4305

309 i
309
309
309
301 !
301
305
305 j
305

1918.

Coal, PocahontasJ Coke, ConnellsNorfolk.
j
ville.

Yellow pine
flooring,
New York.

Hemlock,
New York.

Average j Rola- Average
price per j rive price per
M feet;, j price. M feet.
101
100
85
98
126

824.5000
24.2500
20.5000
23.7500
30.5000
30.5000 j
30.5000 l!
30.5000 -.
33.5000 :
33.5000 !
34.5000 •
34.5000 I

57.0000
57.0000
60.0000
60.0000
60.0000
60.0000
60.0000
63.0000
63.0000

..I.
Copper, ingot,
electrolytic. Now
York.

i

Coal, anthracite, Coal, bituminous,
stove, New York
run of mine,
tidewater.
Cincinnati.
A verago Relapries per tive
long ton.! price. short ton. price.

Rela- :' Average
Relative • '. price per ! tive

price,

S42.0000
42.0000
38.5000
38.0000
57.0000

126
126
J26
138
138
142
142

;i

¥4.9725
94 !
•
5.1794
. 86 :! 5.1529
85 !! •5. 6625
.
128 : (i. 1303
6.5000
128 i <>. 5000
135 : <). 4642
135
6.2606
135 •
;
f>. 3000
135 ; G.3212
135 !" (). o90S
i
tj. 5902
111
(3.9000
141 •
;
ii

128 •
:

!
'
i
!
i

Load, pig, desilverized, New
York.

102
102
112
121

$2.2000
2.2000
2.2000
2.5000
3.3000

100
100
100
J14

128
128
128
124
124
125
130
130
136

3.6000
3.6000
3.6000
3.0000
3.8500
3.7500
4.1000
4.1000
4.1000

164
104
164
175
170
186
186
186

Petroleum, crude,
Pennsylvania, at
Trent;.

Pig iron, basic.

Year and month.
Average j Rcla- j Average | Rela- Average j Rela- Average llcla- Average ! .Rela- Average j Eelapriceperi tire j price per! tive prioe per I live pric?e per : l i e price per I ' tive prico per ; t i \ e
long ton. I price, ishort ton. price. pound. ! price. pouhrl. ; price. barrel, i price. long t o n . price.
July, 1914.,
September, 1914.
September, 1915.
September, 1916.
September, 1917.
January
February...
March
April
May
June
July
August
September..

1918.

2.8500 !
4.0000 j
3.9080 i

100
100
95
133
130

SI,8750
1.7250
1.6750 |
2.7500 i
11.7500 i

113
482

SO.1340
.1238
.1775
.2775
.2525

4.4120 !
4.4120 I
4,4120 !
4.2440 !
4.2190 i
4.2320 !
4.6320 !
4.6320 i
4.6320 •

147
147
147
141
141
141
154
154
154

6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000

246
246
246
246
246
246
246
246
246

.2350
.2350
.2350
.2350
.2350
.2350
.2550
.2600
.2600

.fa. oooo; ;
3.0000

Cotton yarns,
northern cones,
10/1.

Leather, sole,
hemlock, No. 1.

79
113
176
161
I
!
!
i
!
I
!
!
;

$0.0390
.0388
.0490
.0650
1.0380

!
:
j
|
|

89
88
111
14.8
236

81.7500
1.4500
1.6000
2.3000
3.5000

149
149
149
149
149
149
162
165
365

.0684
.0706
.0724
.0698
.0691.
.0728
.0802
.0805
.0805

!

155
160
165
159
157
165
182
183
183

3.7500
3.9375
4.0000
4.0000
4.0000
4.0000
4.0000
4,0000
4.0000

Riccl, billets,
Bessemer.
Pittsburgh.

i
;
!
:

:

71 i $13.0000
59 i 13.0000 i
65
14.7500
94
18.3100
143
42.7500

8S
100
125
291

153
33.0000
161 I 33.0000
163 | 33.0000
1G3 32.0000 !
163 32.0000 !
163 32-0000 !
163 32.0000
163 32.0000
163 32.0000

224
224
224
218
218
218
218
218
21.8

Sieel,plaies,tan!i
Pittsburgh.

Year and month.
Average
price per
pound.

Rei- Average Rel- Average \ Rel- Average
ative price per ative price per | ativft price per
price. ! pound. price. longton.j price. pound.

Average
price per
price. long ton.

Relative

RelAverage
ative | price per
price. p o u n d .

Rolai.-ive
price.

I

i

July, 1914
September,
September,
September,
September,
January
February
March
April
May
June
July
August
September




1914..
1915..
1916..
1917..

SO.2150
.1700
.1700
.2750
.4200

1918.
.5363
.5536
. 5745
.6162
.6332
.6437
.6412
.6400
.6100

97
77
77
124
190
242
250
260
278
286
291
290
289
276

• 3100
.3700
.4800

108 $19.0000 !
21.0000 !
110 24.1000 i
131 45-0000
170 66.2500

.4900
. 4900
.4550
.4550
.4900
.4900
. 4900
.4900
.4900

174
174
161
161
174
174
.174
174
174

SO.3050

47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000

174
257
184
184
184
184
184
184
184
184
184

SO.0113
.0120
.0135
.0350
.0800
.0325
.0325
. 0325
.0325
.0325
. 0325
.0325
.0325
.0325

81
91
23.6
541

830.0000
30.0000
30.0000
35.0000 I
40.0000 !

100
100
100
117
133

$0-6500
.6600
.8500
1-2000
1.7000

220
220
220
220
220
220
220
220
220

46.8000
57.0000
57.0000
57.0000
57.0000
57.0000 !
57.0000 i
57.0000
57-0000

156
190
190
190
190
190
190
190
190

2.0000
2.0071
2.1000
2.1500
2.1500
2.1500
2.1500
2.1500
2.1500

i
|
i
!

84
85
119
154
219
257
258
270
277
277
277
277
277
277

1108

FEDEBAL B-ESEEVE BULLETIN.

NOVEMBER 1,15)18.

Average monthly wholesale'pricesof commodities—Continued.
(Average price for 1913=100.]

Reef carcass,
srood, native
v

Chigo

Ynar and month.
'. price per ! live
i pound, i price.

Julv,1914
September,
September,
September,
Sept ember,

January
February
March
April
:May
July....
August
Sep! ember

1914
1915
1916
1937

: SO.1330 !
j
. 1438 j
• 13.50
'•• . 1375 I
...-.
.3900 I
!

191 P.

.1750 .
.1750 i
.1750 i
.2050 "
.221)0 '
;

•
'•

.2388
.2400
.2420
.2450

!
.
'
!

104
111
104
106
147
135
135 j
135 j
'58 I

174
181
185
187
189

Flour, wheat,
standard patents,
Coffee, Ttio No. 7. 1914-1917, stand- liams, smokecl,
Chicago.
ard war, 1918,
Minneapolis.
Average
price per
pouiid.
SO.0882
.0703
.0675
.0988
,0913

Rela- A\: crage
tive price per
price. gallon.

Rela- Average
tive price per
price. ' barrel.

Relative
price.

84.5038
5.9400
5.3313
8.4250
11.2625

100
130
116
184
246

80.1769
. 1905
. 1447
. 1900
.2675

106
115
87
114
161

10.0850
10.3000
10.0938
9.9850
9.5250
9.8250
10. 7020
10.2100
10.2100.

220
225
220
218
208
214
233
223
223

.2950
.2984
. 3028
. 3075
.3025
. 2994
. 3025
. 3225
.3281

177
180
182
185
182
180
182
394
197

j
j
!
'

. 0S53
.0838
.089.1
. 0003
.0873
.0841 !
.0855 !
.0853 i
.09-59 !

75
80
81
78
76 I
77 '
77
86

REPORTS OF BANK TRANSACTIONS.
In the accompanying table are given figure8
of debits to deposit accounts of clearing-house
banks in about 150 cities for the weekly periods
ending Wednesday. October 2, 9, 16* 23, and
30, in continuation of similar tables in the
October FEDERAL RESERVE BULLETIN, giving;
data for four weekly periods in the month of
September.
The number of centers from which reports
arc received has been gradually increased.
Among the important accessions to the jist
of centers axe1 San Francisco, from which
data were first obtained toward the close of
the month of September, and Cleveland, which
commenced to report during the past month.
'The only .large centers from whicli no reports
'have as yet been secured are Washington, D. C,
and Lincoln., Ncbr. It is hoped that in the
near future the reports will cover practically
all the more important clearing-house centers
of the country.
A recapitulation is added, giving comparative data for centers reporting for each of the
live weeks included, in the statement.
Debits to individual account- show a perceptible decrease for iho v.-'eck ending October 9
as"" compared, with the -previous week. Decreases, which occur in practically all districts,
are most marked in the eastern, districts and
the Chicago district. The latter and the Kansas City and Dallas districts afford, the only




Average
price per
pound.

Illuminating oil, !
350° fire test. !
Nc-v York. ' j

i

Sugar, granulated,
New York.

Rela- i Average
tive | price per
price. ! 'pound.

Relative
price.

SO.1200
.1200
.1200
. 1200
. 1300

!
!
i
i
i
i
i

97
97
97
97
105

; SO. 0120
; ,0680
! .0506
i .0637
I

98
159
119
149
193

.1600
. 1600
. 1600
. 1675
.1700
.1700
.1710
. 1750
. 1750

130
130
130
136
138
138
139
142
142

!
i
I
I
:
i
i
!
i
!

174
171
171
171
171
171
172
172
198

.0744
.0730
.0730
.0730
.0730
.0731
. 0735
.0735
.0845

marked instances of increases in debits to bank
account, all other districts showing relatively
slight changes. For the week ending October
16 debits to individual account differ but little
from the figures for the previous week, increases
in some districts being largely offset by decreases in others, while debits to bank account
show a considerable decrease, chiefly in New
York, Chicago, Kansas City, and Dallas. For
the week ending October 23- considerable increases in debits to both individual and bank
accounts are shown, the- increases occurring in
the majority of districts, but being especially
pronounced in the eastern districts and Chicago mid to a lesser degree in San Francisco,
It is probable that a large portion of the increases are clue to payments by check or draft
made by subscribers to the fourth. Liberty loan,
and in the case of bank debits to the extraordinarily heavy movement of funds in connection
with Liberty loan operations. Further increases in debits to bank account in practically
ali districts are shown for the week ending
October 30, while for certain of the large centers
there are also pronounced increases in debits to
individual account. This i$ particularly true of
New York, Boston, and Chicago. The further
gain in the totals of bank transactions shown is
clue apparently to the continued large volume
of checks and drafts handled by the banks in
connection with the last Liberty loan.
Figures of reporting clearing houses by
Federal Reserve districts are as follows:

1104

FEDERAL RESERVE BULLETIN.

NOVEMBER 1, 1918.

Weekly figures of clearing-house bank debits to deposit account.
fiii thousands of dollars; i. e., 000 omitted.]
Debits to individual account.
.District.

No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoko
Lowell
New Bedford
New Haven
.Portland
Providence
SDringfield
Waterbury
Worcester
No. 2—Now York:
Albany
Binghampton
Buffalo..:
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harris burg
Johnstown
Lancaster
Philadclphia
Reading
Scrantoh

Trenton.
"Wilkcs-Barre
Williamspori
Wilmington
York
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Grcensburgj, Pa..
Lexington, K y . .
Newcastle...*...

OilCity...
Springfield
Toledo
Wheeling.
Youngstown
No. 5—K iehmoYid:
Baltimore
Charlotte
Columbia
Norfolk
Raleigh
Richmond
No. 6—Atlanta:
Atlanta
Augusta
B irmingham
Chattanooga
Jacksonville
Knoxvillc
Macon
Mobile
Montgomery
Nashville..'.
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7—Chicago:
Bay City
Bloomington, 111
Cedar Rapids
Chicago
Davenport
Dccatur, 111
Des Moihes




Oct. 2. j Oct. 9.

Oct. 16.

Debits to banks' and bankers' account.

Oct. 23. Oct. 30.

Oct. 23.
Oct. 2. Oct. 9. ! Oct. 16.

Oct. 30.

!
3,065
2,777
2,701
2,930
480
528 .
614
497
401
2,738 j
296,705
220,153
253,581
185,165
188,724 i 184.757
274,149
230,410
230,041 j 206,541
8,924
9,199
6,859
10,562
506
572 i
310
'274
773
8,573
24,931
19,265
16,836
21,972
1,237
1.477 ; 1,373
2,867
1,925
24,684
3,385
3,045 |
768
2,998
4,169
'726 :
865
678
630
2,154
7,449
5,251 !
362
5,003
6,469
539 !
557
870
2S6
5,108
691
5,465 |
7,496
7,213 | 6,124
295
118
143
160
6,063
17)294
337
16,410
15,113
408
26S
459 ;
342
15.975 j
15,053
7,953
7,343
6,748
2.648
3,466
3,319 !
9)368
3,254
3,861
9,101
28,010
34,161
29,385
1,560
1,150 ;
43,753
1)721
1,381
1,969
29,040
11,577
12,408
11,543
187
18,448
211 !
533
212
303
! 12,540
6,820
7,081
6,880
466
9,727
1,127 •
505
327
519
j
7,284
14,725
14,513
16,251
17,242
1,452
1,329
1,387
2,960
1,989
! 15,97G
!
17,884
15,914
20,226
12,532
14,934 !
I 18,325
16,051
! 19,446
2,752
2,763
2,740
2,696
\
2,811 i
67,034
56,764
58,184
10,687
12,638 i 10,539 i 13,304
j 61,553 ! 59,835
:
'3,831,077 |3,406,518 I ,453,918 4,221,573 4.820,106 1,590,618 1,588,561 il, 412,480 11,630,875 1,749,750
3,549
3,984
4,650 • 3,623
372
525
403 !
443 j
405
j
3,436 j
28,980
28,470
463
1,418
446 i
1,042 I 1,490
| 27,114 I 23,832 | 24,306
14,707
12,542
132
847
9,123 i 12,600 J 10,388
682 j
462
677

"I!
i
i

4,959
6,985
3,348
4,762
325,756
5,440
14,616
8.833
6 , 968
'
3,034
9,044
3,168
12,388 I
49,033 :

!

20,675
11,236
7,193
3,026
4,142
2,189
2,409
3,324
23502
23,502 I
9.168 !
14)418 !
82.719 i
oj596 j
16,295
3,207
21,033

j
I
I
j
|
j
j
;
j
j
I
;
j

25,301
9.947
14'. 302
8'. 920
10)270
6.81.7
7)236
7,086
4,423
21,801
61,357
1,957
:-7)408
3,797
1,665
2,494
2,851
o 15,353
568,381
9,153
3,333
o 45,375

3,102
2,936 |
4,340 j 4.909
5.292
6,045 i
3) 119
3,129 !
4,557 j 4,656
275,702
264,464
5,749
6,305
11,621
8,447
7*784
6,722
6,007
3)612
3.155
7,012
8)367
3,195
3,223

3,426
5,647
6,125
3,254
5,802
341,184
6,831
12,106
10,448
7,468
3,610
11,531
3,579

2,891
6,290
5,673
3,100
4,660
349,688
5,642
15,058
9,579
7,918
3,501
12.442
3)136

13,144
45,948
115,797
23,816
10,824
6,895
2,680
3.420
1)837
3,018
2,594
20,100

13,300
50,685
134,676
26,047
11,232
6,976
3,315
3,360
2,140
2,361
3,055
22,837
7,696
12,726

15,940
80,836
146,703
28,194
13,628
7,845
2,791
3,327
2,317
3,326
2,675
25,482
9,183
13,458

15,772
61,339
145,560
24,682
12,226
6,685
2,879
3,656
2,896
3,070
2,991
31,514
8,625
13)317

218
39,491

2,509
1,329
2,979
2,874
7,637
9,344
17

2,210
1.517
2)841
2,292
8,294

85,350
6,700
7, t>63
19,789
4,579
25,605

74,680
5,700
8,037
16,118
3,888
29,736

43,870
8,956

7)' 723
16,314
4.415

72,818
6,100
6.44.9
17,644
3.372
26)838

24,400
12,180
13.070
8) 532
8.808
6:197
6'. 431
K 058
o, 426
19,714
53,811
1,483
19,060
3)854
1,920

27,329
9,176
13,292
8.680
8) 352
5,814
7)176 ;
7,395;
5)105 !
23,522 i
51,712 i
1,645
16)804
3,806 i
1,693 i

27,075
9,589
13,735
9,777
10,370
5.600
7) 793
7,110
4,969
21,607
54,293
2,147
20,662
3,586
1,730

2,587
2.796
2,170
2)365
« 13,720 I o 15,278
550,815 j 593,013
6,349
6,983
3,049
3,387
33,320
35,415

16,452
72,901

2,373
2.399
o 16) 350
527,764
8,452
3) 225
o53,291

28
39
1S6
66
450.237
1
3,049
148
90
211

20
41
68
44
273,402
1
1,719
201
95

4!
6
1 !
31
225 !
248
68:
25
253, 791 | 252,773

178
91

2,407
204
156

64

37

25

24

118 ;
228
40,479 j 34,714 I 44,750
127,838 ! 109,762 | 126,123
3,457 i 3,683 j 4,151
319 !
462
757 !
139
70 i

160
53,432
144,976
4,829
324
80

2,759
323
92

916 i
160 '

1,732

101
1
317
47
342,368

29"

1,767
1,306
2,788
2,745
8,079
8,434
218

2,217
1,650
2,881
2,102
8,623
8,644
469

2.0S5
1)814
2,533
2.816
9)063
8.8-J6
'65S

23,584
3,272
63,572

42,088
9,674
3.497
25) 072
3,485
67,557

36,641
10,200
2,040
24.453
3)115
66,790

41,308
9,300
4,344
26,886
3,429
78.764

52,112
8.700
4) 761.
28,088
4,141
75,002

24,575
9,240
15,157
8,877
10,543
6,220
6,094
6,334
5,019
24.731
62)031
1,875
15.338
3i539
1,700

27,853
3,716
4,401
4,483
4,947
1,536
4,560
889
703
16,099
35,890
1,009
14,292
1,275
154

30,927
4,725
5,101
4,453
5,560
2.032
4)871
786
863
18,687
40,779
953
14,069
993
224

31,731
3,001
4,959
4,733
5,873
1.535
4)252
861
1,150
26,043
38,687
1", 287
14,408
804
276

31,901
3,145
5,092
4,774
6.422
1)690
4,745
800
1,159
19,607
43,659
882
15,421
1,011
189

34,340
3,101
5,112
5,349
6) 400
1,917
4,54.0
806
1,232
18,242
41.269
1'. 129
12)607
1.05S
'223

3,329
1,964
«13,136
661,514
6,683
2,503
34,393

378

486

418
812

510
992

60S
SOS

535,993
1,355
647

596,937
1,553
726

543,121
1,390
574
17,554

j 654,717
i 1,678
I
826
1 18,060

688,669
3,021
799
16,992

o Figures comprise debits to both individual as well as to banks' and bankers' account.

1105

FKDEKA1. KESEB-VK BULLETIN".

-N'OVKMJiKJ! 1. Ii).i8.

Weekly figures of clearing-house bank debits to deposit occowwit—Ooiitinuecl.
[In thousands of dollar.5?; i. e., 000 omitted.]
.Debits to individual account.
District.

Oct. li. j Oct. 9.

No. 7—Chicaeo—Continued.
Detroit..'.
Dubuque
Flint
Fort Wayne.
Grand Rapids
Indianapolis
Kalainazoo
Lansing;

i
!
I
i
j
.!
j
!
\

Peoria
Itockford, 111
South Bend
Springfield, III
Waterloo, Iowa
No. S—St. Louis:
Evansville
Little Rock
"Louisville
Memphis
St.Lbuis
Springilcid. M o —
No. 9-—Minneapolis:
Aberdeen..
Biliinps
Duluth
Fargo
Grand Forks
Helena
Minneapolis
St. Paul
Superior
No. 10—Kansas City:
Atchison
Bartlesville, Okto
Colorado Springs
Denver....
Joplin
Kansas City, Kzo.x
Kansas City, Mo
&uskot?ec-, Okia
Oklahoma City
Omaha
Pueblo
St. Joseph
Topoka
Tulsa
Wichita
No. 11—Dallas:
Albuquerque.
Austin
Beaumont
.Dallas
El Paso
Fort Worth
(".! alveston
Houston
San Antonio
Shreveport;
Texark'ana
Tucson
Waco
No. 12—San Francisco:
Boise
Fresno
Long Boaeh
Loss Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
Seattle
Spokane
Stockton
Tacoma
Yakima




!

;

..

04.042 |
I', 477 I
2,954 I
4.781 !
15; 555 i
29.166 !
3;820 ;
3,408 i
50)479 I
12,234 :
2,454 )
3.304 I
4'. 585 i
2;871 I

!
|
i
|
3,971 j
j
6,317 ;
i
| 28,912
33.145
i
| 132;185
2! 027
i
i
1.SS6
!
2.187 I
|
I 07)904 I
3,551 i
I
1,983 i
;
3,287 I
- - -I
110,310 I
57.674 j
2;299 I
j
974 j
|
2,257 !
j
2,242
j
j 32". 153
3'607
j
3.306
j
j no', 391
i
3; 253
i 17,900
" • 03,288
i
4,333
i 18.671
4; 254
I
i 15,959
G;S72
|
I
!
3,436 j
!
3,218 i
i
28,018 I
!
5', 872 !
!
! 16,813
8,913
;
20,942
• '•7,312
\
6,300
;
;
1,111
l',S83
i
4:863
I
;
j • 5,836
!
2,390
! 52.00S
j
I ll'.lol
4; 261
;
2,098
'
44,790
j
1,947
!
12,921
16,422
5)294
155.233
54;156
JO,711

Oct. 23. i Oct. 30. i Oct. 2. I Oct. 9.

10-1,764 !
,
j
3)900
2,077 !
4,99S
3:i47 \
5,747
5)117 i
14.722 i 21,897 =
33:491 i 30.462 !
3,043 j
2:919 i
2,881 i
2)991 ;

87,134 I 101,655
2'.300
2,700
< 135 1
3.124
5; 221
5)302
13,605
12.648
31,143
29', 171
3; 074
2,816
55,742
10*875
11,834
4". 683
-1)848
Z, 263
3,649
3,525
4.732
3)246
£064

11)164 i
5,463 i
3.982 !
4,144 I
3,842 I

53,756 j
11,174 I
4,826 !
4,271 !
4,831 I
3,323 I

40.532
1)114
38
1,402
4,510
22,958

i
j
:
j
!
!

•WQ ''

127
28.630
l'. 7S0
' 135
2.475
2'. 380
'S26

3.073 I
6)350 I
29,431
49,687
135,935
2,889

4.680 j 4.524
1,132
8)988
9,061 I
6.43S
14)459
48,954 I 40,702
29,900 I 27,043 " 33 s 950
134,219
138', 424 I 134,8S6

2.255 '
3, S90
66;884
4; 304
1,854
2,645
122,376
32,974
2,813

1.981
2)039
61,194
3,503
1.757
2)822
115,667
38,824
2,349

1,827
1.550
2.380
1)807
66', 895
56,698
3'. 832 !
1)832 I "i,"42e"
2,774 I 2,244
112,748 ! 90,479
•15) 21S I
3,007 j

1,039
1,580
2,685

91,031
3,233
15,091
65,394
4)934
21,411
4.815
16i 791
8,203

1,008
2,021
2,681
281985
4)228
3,196
91.012
3)521
17,290
62,842
4,568
22,934
4,458
21.006
9)303

1,092 I
1,763 i
2,827
28,992
3,707 !
3,017 I
91,927 S
3,617 !
15,542 I
62)744
4,138
18,575
4,574
19,624
8.265 $

30.267
3'. 218
2)496
95,242
3.291
17)373.
59,873
2.431
19)737
4)357
20,562
8,800

1,253
4,09V)
4,216
34,426
5,930
18,275
11,553
26,516
a 8.188
6)391
1,362
2,122
4,475 '

1,501
3,212
3,855 i
29,312 !
5,205 i
16,274
5,941
24,114
a 7.360
5)434
1,448
1,659
3,218

1,439 I
3,100 !
4.430 i
35)531
0,390
15,347
8,556
29,493
a 7,047 1
6,202 j
1/738 !
1,927 I

1,336
2,699 i
3,539 !
41,077
5,225
16.757
6,995
26,031
a 5,674
5,720
1,832
1,764

2,390
6,694
2,254
51,805 j
10,459 !
4.074
2;185 .
48,350 J
1 776 !
11,850 I
17.447 I
5)416 I
150,119 !
51,880 I
9'. 476 j
5)308 j
12.836 l
1213 !

2,907 \
6,508 i
2.226 1
59)678

3,643
8,750
25.562
26;561
139,594 !
3,380 j

26,345
3,544
<&; 531

5,574 i
2,193 j
50.465 j

13,662 I

3,774 i
2.689
49', 357

2; 518
14,358
14,447
5.461
146; 718 I
51,158 J
10,176 j
4.509
4)497 S
14.343 !
11.466 !
:
2)020 j
l',959

1

Oct. 16.

Debits to banks' and bonkers' account.

I
I
i
I
!
!
'

3)751 I

14,130
3)655
2,253
52,706
2,120
11.726
18)347
5,941
165,541
56,702
10.643
4.498
12)178
2,518

i
!
!
I

52.6«9
' 400
56
2.034
4,073
23.980
'473
208
32,952
2.522
200 i
2.075
2)033
1,227

1,220
I
7', 849
! 15)227
I 23,880
! 146,403

3.S09

1,320
1.751
2)774

2,172
8,542
1,920
53,753
10,958
3,544
1,982
46,015
1,704
10,657
14,951
2.811
154)918

I
I
! 54,953
I 9,712
I 5.015
j 12)321
j 2,047

Oct. 16.

41,455
2)200
53
1.805
4)867
21,526
487
206
30,502
2)o:?5

Get: 23. I Oct. 30.

i
i
I
j
j
i
!

2,759
2,296
1,306

1.178
7)184
18,744
36,486
142.121
3)397 _

1,930 i
850 I
,
i
6,263 1
1)3S3 I
5,100
2,322
2,257 I
3.701
3.199 I
109)878 1 112)308
.52, S77
48.372 !
"153
' 130 {

712 I
190 !
689 j
20.148

693 I

5,700
166,873
3,175
12,600
71,305
665
17.011
1)964
8,607
12,114
4,000
356
61,695 .
8,125 ;
33!487 '
6.913
66)041

511
295
1.501
23)884
" 815
6,217
196,666
3,140
15,391
70,085
1,044
19,051
2,061
i>)500
11359
2.318
'399
67,518
7.148
42". 544
7,667
50,176 i

1,925 j

30,689 !
2.396
4)046
259 i
27,506
1.540
5)760
18,188
392
97,299
33,495
10,233
3,303
12,417
143

3.328
* 52
35,636
2.410
5'. 556
' 186
28,550
1)74S
6,415

20,088 i
453 I
103,327
31,719
11,760
2.327
10*. 813
'17S '

Figures oomprisT debits io both individual as well as TO banks' and bankers' account:.

1,573
7,079
29,085
30,800
150,204:
2,583
1,694

r.364
6)2Iii

48.089
1)836
32
2.181
5)333
25,113
"572
210
35,345
2'.006
' 149
2,940
2,447
1)170
2,183
6,75S
26,371
32)873
153,970
3,334
1,694
969
6,334-

4,646 !
2)311
3,812
116,285
53,876 i
"128 I

6,349
4.631
2)555
4,192
116)971
54,148
156

*"*2*508
3)824
130.031

SOS
20s
564
22,392
720
6.071
190)340
3)745
15,756
51,948
930
17,964
1,822
5,055
17,089

GX
O
214
488
23,142
422
7,072
251,718
3,746
14,880
65,539
874
15,984
2,084
6,556
16,004

701
295
523
22,204
834
6,687
221,926
2,989
14,180
70,942
1,262
19,096
1,599
6,318
17)897

3,327
1,880
379
70.858
8)357
39,383
6.939
56,097

3,55S
2,802
537
59., 594
7:7S0
41) SOS
6)216
69.210

2,879
2,580
57,592
6.309
38)749
5,322 i
47.412 I
3,884
431
1,752
3,031

1ii

52,081
1,300
49
2,463
5,434
27.G25
' 703
250
33,031
2,695
232 j
3,174 i
2:211 !
1)252

4.035
3:794
45
34,6ol
2,537
5,916
' 148
29,353
1)483
4 917
21,803
ill
94,762
27.692
9)805
3,368 1
7,756 j
193 !

4,438 I
369 I
2,111 I

155

4,723
591
1.722

3,856 j
4,431
3.619 I
3,01)5
' 55 I
7C
42,389 ! 39,830
2:988 !
2.8S5
5)078 i
5)352
334 I
245
31,693 I 31.875
1,691 I
l'.314
6,709
8,284
21,406
22 27*
231
370
114,685
132,513
38,169
25,707
11,882
9.652
2,271
3) 424
11.065 I
6,415
"172 I
' 2S8

1106

1,1918.

FSDEBAL BMSl&BVE

Recapitulation,

showing figure® for clearing-house centers reporting for $aeh of (he five week*,
[tn thousands ©£ dollars; I. a., G G omitted.?
O
Debits to bsia&s* and b&t&era' account.

ebits to individual account.
Dfctrfct.

I berof
| craters |
j eluded.! Oct. 2.

No. 1—-Boston
No.St—Nev.'york.-..
No.3—Phliade!phia..
No. 4—Cleveland....
No. 5—Richmond...
No. 6—Atlanta,
No. 7- -Chicago
No.8~.~St. L o u i s . . - .
Ho, 9—Minne&Dolis...
No, 10- Kansas City No. .U—'DaUas. Ho., 12—San Ftanc&so..
Total..

t. 9.

s

Get, 1.6. i Oct. 23.

Oct.

Oct. 2.

] Oct. 9,

Oct. 16.

Oct. 23.,

Oct. 30.

444,920
196,677
20(3,304
337,088
194,794
308,355
346.429 ] 421,409
246,084
280,168
3,935,114 3.510,398 8,551,719 4,330,104 4.934;453 1,602,272 1,002,730 1,424,306 1,646,751 1,705,385
429,578
421.011
275,655
399,879 'S32.850
343.138
255,121
258,314
345,627
454,079
182,027
179;819
60,228
153,535
158;034
150.70S
56,198
6l,fi52
67,672
78,694
130,122
143,254
132,450
142.023
122;905
126,772
141,199
147,876
159,687
108, 133
201,273
121,830
202', 377
200; 043
193,598
191,501
135.023
139,600
140,497
140,331
936,353
646,733
S32.725
789,173
884,803
726,227
658,028
795,269
821,328
219,302
191,603
207,187
207,490
228/245
234,770
197,178
209,110
221,824
225,487
165,582
123,301
1899!6
200,717
187,809
181,463
327,537
131,819
133,281
145.515
273,490
322,505
270,583
270,404
279,051
353.. 520
335,712
382,850
387;453
117,313
127,449
322,878
119,851
190,528
103,814
184,498
190,811
194,683
39580?i
252,705
390,533
'131,370
264546
394,212
248.634
294,437
291,639
140 I 7,220,048

6,627,671 ] 6,738,230 7,817,070 8,429,796

4,064,193 i 4,269,485 3,959,677

4,804,090 4,658,8S6

New York for demand paper secured by prime
bankers' acceptances, a type of paper which
In the following tables are presented actual has made its" appearance in the New York
discount and interest rates prevailing; in the market during the past several months. Quovarious cities in which the" several Federal. tations for new types of paper will be added
Reserve Banks, and their branches are located, from time to time as deemed of interest.
during the 30-day periods ending September
The general upward movement of interest
14 aid. October8* 15, 1918. Quotations are rates noted for the periods ending August 15
given for prime commercial paper, both cus- and September 15 seems to 'have abated durtomers' and. purchased in open market, inter- ing the month, under review, Instead local
bank ioansj jankers' acceptances, and paper conditions appear to 'have exercised a presecured by prime stock exchange or other cur- ponderating influence in causing increase in
rent collateral. Separate rates "are quoted for some rates and decline in. others. * However, the
paper of longer and shorter maturities in the rates for bankers' acceptances, such as comfirst-named and last-named classes. In addi- mand, a wide market, have shown a fractional
tion, quotations are given for commodity paper increase. Moreover, ranges within which rates
secured by warehouse receipts and for cattle I for prime commercial paper fluctuate have been
loans, as reported from centers in which such narrowed in many cases, as shown by depaper is current.
creases in the high rates and increases in the low
Quotations are also given of rates charged rates. Customary rates in general, with few exon ordinary loans to 'customers secured ""by ceptions, remain unchanged, movements in rates
Liberty bonds and certificates of indebtedness. being confined largely to fractional changes in
Assistance to customers to enable them to pur- high or low quotations, Kates charged on
chase such Government obligations is generally loans to individuals, secured by Liberty bonds
extended at lower rates, either at the rate and certificates of indebtedness on the whole
borne by such obligations or at & rate slightly are lower than on ordinary commercial loans,
higher. " The table also shows quotations in or on loans secured by other collateral.
DISCOUNT AND INTEREST SATES.




D-is&.y<j.n$ and mieresi rates prevailing 'In vtmoiut c
DURING 30-DAY PERIOD ENDING SEPT, 14, M8.

No. a...
No. 4..,

O

!

i

No, 12..

S to 90 ! 4 to 0
O
days, j nioutbs.

/,,

C.

Dallas,
El P a s o . . . . . . . . . . .
San Francisco.....
Portland.....
Seattle......
Saokane..........
Salt L a b o . . . . . . . . .

Xnterbaxsk
loans.

tndorsftd. j

™&^

v&nmd

H. L.

J

Cleveland........,! ti
Pittsburgh
...I 6
Cincinnati,.,....... 0
Richmond..,,.,.. I 6
Baltimore........ n I 6
Atlanta...........| 7
Birmingham...... | 8
Jacksonville....... i 3
i Naw Orleans...... 6
So. 7... " Chicago...........
Detroit............ a
St. L o u i s . . . , , . . . , . 6
Louisville.........
Memphis..........
No. 9... Minneapolis.......
Ho. 10., Kansas'Clty,......
Omaha............
No. 1L,

Opsis market.

30 Sc 00 | 4 to 8
days.- | months.

No.1,.. B o s t o n . . , . . . . . , , , .
No. &.. New York•v-^,..,.

other current.

60 to 90 diivs,

Customers.

Cixf.

6
6
6
«
6

o
6
6
8
5

8

i
I
!
'
i

6" 5
6 6

8

6
8
(S
6
o
7
8

IS

i

3

1?
8 5|
6 6"
6"
d
0
5
8
8

m 8
6

8

S
6
6
7

i a"
6
I>1 6

5 §,

6
8
6^
7"
8
8

5

8
0
ft

6

8

8
6
8

a
«

&
•'

6

8A

0

6
6

ft

6

a

;s
ft
7

e

ri
f.
«

H
vl

ft

6

6% 6

a

8

61

a
0

DURING 30-DAY PERIOD ENDING' OCT. 15, Wl%
Boston
New Yorkfc
Philadelphia
Cleveland
Pittsburgh
Cincinnati
Richmond..

No.




« Bates for demand paper secured by prime bankers' acceptances, high 8, low ih customary 5.J.
ft Rates for demand paper secured by pnrne bankers' acceptances, high 65 \Q^T -;f,
« Rate oa sm&K loans. '
i Kate in eonndcUozi with fourth Liberty loan,4$ per oent.

Catti©

| Swuiibd by Liberty"
\ warehouse bonds smd
1
ceipts,
eicates
veceipti*. certificates
eto»
! ofiadebtf i b
; d

Discount and interest rates prevailing in various ce-nt.cn—Continued.
DITJIING 30-DAY P E R I O D ENDING OCT. 15, 191S Continued.

oc

Prime commercial v&r.-zv.
District.

City.

Customers.

I

Open market.

interbank
loans.

30 to 90 i 4 to G I ->0 to 90 ; 4 to 6
days.
months. ; days, | months.

No. 9.... Minneapolis
No. 10... Kansas "City
Omaha '.
Denver
N o . i l . . . .Dallas
El Paso
No. 12... San Francisco
Portland
Seattle...
Spokane
Salt Lake
:.




Un In; Lidorsed. ! dorsed.
II. L.
6 6
0 5
,

H.

C. i II. L. C.

6
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7

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6
6

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II. L.

6

If

.8
7

Secured by Liberty '
warehouse bonds and
riMseipts. certificates
etc.
ofindebtedness.

Cattle
loans.

3toG
months.

fi
8
G j cS

6
it
0

§ $
6

a \ H. L. a
+
5
I

3 months.

O/jr

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7

6

Bankors' acceptances, : Collateral loans—Stock exchange or
eotoOGchiys,
i
other current.

7

< Kate on sinn 11 loans.
*

cj

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

1109

MEMBER BANK HOLDINGS OF UNITED STATES WAR SECURITIES AND WAR PAPER.
About the beginning of 1918 the 640 member
banks which were then reporting regularly
their principal asset and liability items to the
Federal Reserve Board showed among their
earning assets about 747 millions of United
States war securities and 424 millions of loans
supported by such securities. Of the total
loans and investments reported by these
banks, the aggregate of these two items was
about 10.7 per cent.
At that time the holdings of United States
securities included besides circulation bonds
mainly tax certificates and Liberty bonds of
the first and second issues, in which the banks
had invested permanently for their own
account or temporarily pending final settlement
by subscribing customers.
Liquidation in some volume of Government
securities is indicated by the figures for the
subsequent weeks, until January 25, when
following the resumption by the Government
of certificates issued in anticipation of the
third Liberty loan, the reported holdings resume their upward course. Weekly increases
in certificate holdings continue practically unchecked until the second Friday in May, the
total reported certificate holdings for the
period immediately preceding the conclusion
on May 9 of the third Liberty loan being in
excess of 1,500 millions. Redemption of
third loan certificates and retirement of these
certificates received in payment for Liberty
bonds, also the gradual disposal of tax certificates near the end of the fiscal year, caused
a gradual decline in the bank holdings of the
certificates, the low level in these holdings
being reached on July 19, when 531.5 millions
are shown, notwithstanding the issue on June
25 and July 9 of almost 1,600 millions of
certificates under the fourth loan. On July
18 the last of the third loan certificates fell due,
and increases in certificate holdings are again
practically continuous to October 18, the eve
of the conclusion of the fourth loan, when a
total of over 1,700 millions is shown by 749
member banks, as against over 1 billion reported on March 1, by 676 banks. The conclusion on May 9 of the third Liberty loan is
followed by an increase in United States war
bond holdings from 375 to 679 millions. This
is the largest amount of United States bonds
(other than circulation bonds) reported. Sub-




sequent purchases by customers are apparently
responsible for the gradual reduction in these
holdings, the low level of 474 millions on
September 27 being, however, about 100
millions higher than the total on May 3, just
prior to the termination of the third loan. On
October 18 the total reported is in excess of
526 millions.
Loans secured by United States war obligations, which at the beginning of the year totaled
423.8 millions, show a gradual decline to 311.9
millions on May 3, the week before the termination of the third loan. During the following weeks the item reaches and even exceeds
the 500-million level, fluctuating around this
figure up to October 18, the eve of the conclusion of the fourth loan.
Between the opening of the year and the eve
of the termination of the third loan, on May 3,
the banks7 holdings of United States war securities and so-called war paper, i. e., loans
secured by United States war securities, had
gone up from about 1,100 millions to 2,200
millions, or from 10.7 to 17.8 per cent of the total
loans and investments of all reporting banks.
* As a general rule the combined holdings of
United States war bonds and war paper show
relatively small changes during the intervals
between loans. Larger increases in these holdings are reported chiefly on the dates immediately following the consummation of the loans,
when the gains in these two items are in excess
of the amounts of certificates retired. This
holds true of both the third and fourth loans
and accounts to some extent for the increasing
proportion of United States securities and loans
based on these securities in the total loans and
investments of the banks. For the period between January 4 to October 18 the aggregate
holdings of United States war securities and
war paper never fell belowT 1 billion dollars and
on the two dates before the conclusion of the
fourth Liberty loan wore in excess of 2 700
millions, constituting about 20.4 per cent of
the total loans and investments of the reporting banks.
Larger relative amounts of United States
war securities and war paper holdings are shown
for the member banks in Greater New York,
the respective percentages fluctuating between
13 and 26 per cent, as may be seen from the
tables following and accompanying diagrams.

1110

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

TOTALS FOR ALL REPORTING BANKS.
[In thousands of dollars.]

Date.

Jan.4
Jan. 11
Jan.18
Jan. 25
Feb.1
Feb. 8
Feb. 15
Feb.21
Mar.l
Mar.8
Mar.15
Mar. 22
Mar.29
Apr. 5 . . . v
Apr. 12..A
Apr. 19
Apr. 26
May 3
May 10
May 17
May 24
May 31
June7
June 14
June 21
June 28
Julyo
July 12
July 19
July 26
Aug.2.
Aug. 9
Aug. 16
Aug. 23
Aug.30
Sept.6
Sept. 13
Sept.20
Sept.27
Oct. 4
Oct. 11
Oct. 18

Number of
reporting
banks.

United States
other than
circulation
bonds.

Treasurycertificates of
indebtedness.

United States
securities
other than
circulation
bonds.

Total United
Ratio of United
States securities
States war
Loans
other than
obligations
secured by circulation bonds
and paper
United States
and loans
secured by such
war
secured byobligations.
obligations.
United States
to total
war obligations. investments.

1918.
640
659
662
671
675
670
679
686
676

682
679
683
685
681
688
691

703
705
711
712
718
725
725
734
735
734
734
735
737
740
747
749
749
749

371,243
361,144
353,316
349,333
344,893
345,660
342,841
363,733
374,628
678,616
643,737
600,732
622,070
604,926
596,087
597,485
583,728
572,840
566,936
602,062
589,456
576,434
565,428
559,991
537,038
525,110
500,848
489,059
488,704
474,023
501,788
494,140
526,677

1,067,864
1,012,924
997,312
1,217,470
1,187,433
1,111,116
1,445,173
1,503,605
1,548,297
1,526,257
1,170,012
1,157,853
1,146,497
1,046,510
1,016,546
949,791
725,423
626,252
619,431
738,527
531^508
786,471
794,878
1,024,583
981,999
971,327
942,637
1,220,459
1,188,408
1,465,931
1,444,242
1,746,135
1,777,156
1,729,811

746,779
703,739
668,794
802,395
955,724
993,391
1,143,185
1,300,731
1,437,249
1,384,167
' 1,358,456
1,570,786
1,536,766
1,456,009
1,790,833
1,846,446
1,912,030
1,900,885
1,848,628
1,801,590
1,747,229
1,668,580
1,621,472
1,545,878
1,322,908
1,209,980
1,192,271
1,305,463
1,133,570
1,375,927
1,371,312
1,590,011
1,541,990
1,60S, 365
1, 467,747
1,721,307
1,677,467
1,954,635
1,918,265
2,247,923
2,271,296
2,256,488

423,832
391,711
381,310
374,276
371,966
371,636
355,078
341,715
344,986
328,134
302,708
314,428
311,503
318,302
331,087
320,168
316,352
311,937
483,736
501,556
492,441
512,962
522,528
518,407
511,918
498,830
484,337
485,030
473,616
480,550
501,669
470,773
469,437
473,512
455,031
470,074
473,136
481,514
475,496
493,164
489,608
500,200

1,170,611
1,095,450
1,050,104
1,176,671
1,327,690
1,365,027
1,498,263
1,642,446
1,782,235
1,712,301
1,661,164
1,885,214
1,848,269
1,774,311
2,121,920
2,166,614
2,228,382
2,212,822
2,332,364
2,303,146
2,239,670
2,181,542
2,144,000
2,064,285
1,834,826
1,708,810
1,676,608
1,790, 493
1,607,186
1,856,477
1,872,981
2,060,784
2,011,427
1,981,877
1,922,778
2,191,381
2,150,603
2,436,149
2,393,761
2,741,087
2,760,904
2,756,688

- 10.7
10.0
9.6
10.6
11.8
12.2
13.0
14.2
14.9
14.4
13.9
15.6
15.3
14.8
17.2
17.4
18.0
17.8
18.4
18.2
17.9
17.5
17.2
16.5
14.8
13.7
13.4
14.3
13.0
14.7
14.7
15.8
15.5
15.4
15.0
16.9
16.5
18.4
18.0
20.3
20.4
20.4

NOTE.—For the period Jan. 4 to Feb. 22, inclusive, the weekly reports did not specify amounts of United States bonds to secure circulation,
and in order to arrive at the ratio of United States war obligations and paper secured by such obligations to total investments an average of 267,000,000
circulation bonds was deducted from the total United States securiti




1111

FEDERAL RESERVE BULLETIN,

•NOVEMBER 1,101S.

MEMBER BANKS IN GREATER N E W YORK.
[In thousands of dollars.]

Date.

Jan.4
Jan.11
Jan. 18
Jan. 25
Feb. 1
Feb. 8
Feb. 15
Feb. 21
Mar. 1
Mar. 8
Mar. 15
Mar. 22
Mar. 29
Apr. 5
Apr. 12
Apr. 19....
Apr. 26
May 3
May 10
May 17
May 24
May 31
June 7
June 14
June 21
June 28
July 5
July 12
July 19
July 26
Aug. 2
Aug. 9
Aug. 16
Aug. 2 3 . . .
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18

Number of
reporting
banks.

United States
other than
circulation
bonds.

Treasury
certificates of
indebtedness.

1918.

69

158,556
164,498
158,245
157,949
153.622
152,767
152,426
149,770
153,230
155,240
277,053
276,682
264,003
255,888
258,410
249,993
248,575
241,513
238,707
243,485
239,889
236,583
229,258
223,755
220,632
214,159
222,537
201,265
206,666
207,586
206,885
220,861
212,261
214,320

770,615
711,173
712,181
807,592
797,888
757,119
945,106
991,952
1,000,696
810,624
803,795
793,582
754,703
726,593
675,488
519,735
328,820
314,379
380.201
246,443
375,321
380,638
500,573
476,199
468,903
448,452
591,941
564,914
706,891
651,319
824,365
816,466
808,772

United States
securities
|
other than
circulation
bonds.

430,683
412,793
373,467
481,666
635,846
645,963
754,901
852,350
929.171
875,671
870,426
965,541
951,508
909,886
1,097,532
1,141,722
1,153,926
1,144,158
1,087,677
1,080,477
1,057,645
1,010,591
985,033
925,481
768,310
570,333
553,086
623,686
486,332
611,904
609,896
724,328
696,831
683,062
670,989
796,206
771,610
914,477
868,204
1,045,226
1,028,727
1,023,092

Total United
Ratio of United
States securities
States war
Loans
other than
obligations
secured by
circulation bonds
and paper
United States
and loans
secured by such
war
secured by
obligations.
obligations.
United States
to total
war obligations. investments.

i
|
i
!
i
!

247,966
212,373
193,444
178,624
174,770
185,437
176,605
171,321
170,840
155,326
143,309
151,484
141,539
139.763
147,743
135,623
135,271
130,549
242,321
257,273
247,885
259,889
251,915
253,685
246,780
241,434
225,637
223,181
206,522
210,096
218,265
202,078
196,.828
198,817
184,052
193,479
195,468
194,710
185,945
191,380
195,610
195,800

678,649
625,166
566,911
660,290
810.616
831,400
931,506
1,026,671
1,100,011
1,030,997
1,013,735
1.117,025
1,093,0-17
1,049,649
1,245,275
1,277,345
1,289,197
1,274,707
1,329,998
1,337,750
1,305,530
1,270,480
1,236,948
1,179,166
1,015,090
811,767
778,723
846,867
692,851
822,000
828,161
926,406
893,659
881,879
855,041
989,685
957,078
1,109,187
1,054,149 !
1,236,606
1,224,337
1,218,892

15.6
14.6
13.4
14.9
17.8
18.3
19.6
21.6
22.7
22.1
21.3
23.2
22.9
22.2
25.2
25.6
25.8
25.6
2(5.3
26.5
26.0
25.6
24.9
23.3
20.7
16.7
16.0
17.2
14.7
16.9
16.8
18.4
17.8
17.9
17.5
20.0
, 19.5
21.9
21.0
23.9
23.9
23.9

.„
., rep
NOTE.—For the period January 4 to February 22? inclusive,, the weekly .-ports did not specify amounts of United States bonds to secure cirdilation, and in order to arrive at the ratio of United States war obligations and paper secured by such obligations to total investments an average
Jtates war obligations and . . ^ ^ ^
of 37,000,000 circulation bonds was deducted from the total United States securities held.




x WAR SECURITIES'ANC^ LOANS SUPPORTED> BY
SUCH SECURITIES, SHOWN EACH WEEK SINCE JAN4J9I8
BYALL REPORTING BANKS.

8

Curve I: U.S.tBonds other than (2raitdtwrvJ&onds,
'.- U.S.5Bort£s other thaivCmMlaJwn
Chn^3:Jotzd,U.SySecarities
otheriJta^OycuIa^Ti^Bonds,
]tfu$£bans securedby tyS.JffaO&l$a£zofi$.
Gzri*e>4;Jia£io (fUSSecarities other fhan,^calatwnJSondsJ,
plasJjmm saftjtorted^ by stichSecurities^ f&Jot@lInv6$t;men£s.

I

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30 soo
24 400

18 300
12 ZOO
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JUNE

\

JULY'

U

wMBssaBsaaM

i%

I

U..SWARSECUR1TIES AND LOANS SUPPORTED BY
SUCH SECURITIE5,SHQWN EACH WEEKSINCEJAN.4J918
BYMEMBER BANKS IN GREATER NEW YORK.
Curve!: U.S.JBOPJSS c^kerc^a^^adat^rvJdom^.
dure2:JIS.3ands
oAertfoaridreulatwri^n^
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1114

FEDERAL RESERVE BULLETIN".

NOVEMBER 1,1918,

ACCEPTANCE LIABILITIES OF NATIONAL BANKS AND STATE INSTITUTIONS.
Between June 29 and August 31 aggregate
acceptance liabilities of national banks, as
shown in the comptroller's abstracts, increased
from $231,805,000 to $243,772,000, the latter
date total being only slightly less than the
record total of $250,323,000 reported on MayJ

10 of the present year. Acceptance liabilities of the trust companies in New York,
Boston, and Baltimore show about the same
development, figures for August 31 invariably
being in excess of like figures for June 29 and
even those for May 10.

Acceptance liabilities of national banks in 'principal cities of the United States on specified dates.
[In thousands of dollars, i. e., 000 omitted.]
Mar. 4.

May 10.

Now York
Boston
Philadelphia
Pittsburgh
Cleveland
Cincinnati
Richmond
Baltimore
Atlanta
Now Orleans
Charleston, B.C..
Chicago
St. Louis
Minneapolis
Dallas
San Francisco...
All other

96,234
45,134
14,694
2,502
7i 936
980
4,402
2,492
088
2.663
1^474
15,764
3,913
595
2,850
7,185
20,758

103,754
44,290
17,789
3,336
7,002
946
3,182
4,198
1,000
1,345
1,223

Total.

230,164 I

June 29.

Aug. 31.

8,608
21,876

96,517
45,549
18,315
3,485
5,283
612
3,085
2,369
715
821
1,427
18,857
1,786
1,624
1,900
9,474
19,986

103,201
42,356
19,418
2,896
.7,478
763
2,721
4,412
500
348
1,074
20,967
1,179
7,569
419
11,057
17,414

250,323

231,805

243,772

22,493
3,724

1,262
4,295

Available data regarding acceptance liabili- calls made by the Comptroller of the Currency
ties of other banking institutions in leading are given below:
cities on or about the dates of the last four
[In thousands of dollars; i. e., 000 omitted.]
Mar. 4.

All national banks
Trust companies in Greater New York
State banks in Greater New York
Trust companies in Boston
Trust comi&nies in Baltimore
State banks and trust companies in St. Louis.
i Mar. 14.

230,164
1104,920
i 7 345
18,673
470
5,122
2 June 20.

May 10.
250,323
121,274
18,497
9,280

June 29.
231,805
2 114,177
2 8 3^5
19,908
1,113
7,072

Aug. 31.
243,772
s134,747
3 9,815
21,893
1,798
4,832

3 Sept. 10.

Mar. 1, 1918
$299,213,000
During the period covered by the above
May 10, 1918
286,036,000
exhibits a very considerable portion of the
June 28, 1918
216,848,000
acceptances outstanding were bought by the
Aug. 30, 1918
232, 603,000
Federal Reserve Banks, as may be seen from
Of late the acceptance holdings of the
the following figures of their acceptance hold- Federal
a
ings on dates corresponding to those above increase, Reserve Banks have shown as large
the October 25 figure being
high
given:
as $398,623,000.




SECOND 4 PER CENT BONDS DUE 1942—Continued.

Lost Liberty Bonds.

In the list given below is published the numbers of lost or stolen Liberty bonds that have
been reported to the American Bankers Association within the last month. In the event
that any of the bonds mentioned in the list
should be presented or any information received relative to their recovery it would be
appreciated if the data be reported to L. W.
Gammon, manager Protective Department,
American Bankers Association, 5 Nassau Street,
New York City.
FIRST 3} PER CENT BONDS DUE 1947.
Number. Amount.
550
50

15798
29150 ..
30991
178794 ...
243854
349897 ..
360362
360364
421064
468779
506984
592292 . .
636920
677908
695604
695605
761077
838824
843736
1004875
1119507
1240171
1264425
1414617
1416504
1487744
1487745
1487746
1487747....
1487748

1487749.,
1487750.,
l 1487751..
! 1487752..
! 1487753.,
' 1487754.,
i 1487755.,
50 1487756.
1487757.
50 ''
50 ! 1487758.,
5 0 • 1487759.,
50 1487760.
50 1187761.
50 14877(32.
50 1487763.
50 1490184.
50 1602011.
50 1613674.
50 1827944.
50 1939010.
50 1913478.
50 1943479.
50 1943480.
50 1984995.
50 1995386.
50 2782240.
50 2782241.
50 3689679.
50 4497430.
50 6731496.

50
50
50
50
50

S50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

6731497
6731493
6786183
6786184
17137
17138
37257
68253
68260
82313
190416
253570
253571
253572
253573
253574
2596S6
672505
749998
947761
1240270
1305927
1539224.
7078
67639
77950
155232
27826
44998
562487

$50
50
50
50
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
500
500
500
500
1,000
1,000
1,000

FIRST 4 PER CENT CONVERTED BONDS DUE 1947.
i
Number.

Amount. '• Number.
S50
50
50
50
50

95181
379S74
1602011
1842651
1842652

336377
956131
1266846
1266847
1266848

Amount.
$100
100
100
100
100

Number.
1382095
1382096
1382097

Amount.
$100
100
100

SECOND 4 PER CENT BONDS DUE 1942.
Number. Amount.
55216....
59431....
72501
73563....
75159
83352...
160358
208411
.•
•.
208412
208413
231673
313003
322377




1115

FEDERAL BESEEVE BULLETIN".

NOVEMBER 1,1918.

Number.

S50 : 531069
50 1 531070....
50 ! 563623
50 1 563624 ....
50 ; 725597
50 1 866045
50 : 867016....
50 • 875784
50 885255....
50 885256
50 885257
50 939017
50 979308

Amount.
§50
50
50
50

50
50
50

50
50
50
50
50

50

Number. Amount. ! Number.
1277354..
1532738..
1548263..
1548264...
1669839..
1674541..
1708435..
1708130..
1708437..
1708438..
1768925..
2004252..
2021395..
2075907..
2082151..
2082152..
2082153..
2082154..
2082155..
20S2156..
2082157..
2082158..
2082159..
2082160..
2082183..
2082184..
2082185..
208218i)..
20S21H7..
2082188..
2082189..
2082190..
2082191..
2082192..
2152S29..
2160104..
21(57397..
2283349..
2316665.
2120947.
2825758.
2838834.
2997759.
2997760.
2997761.
2997762.
3014906.
3023525.
3078848.
3085943.
3135044.
3138497.
3143217.
3143220.
3145939.
3145940.
3145945.
3117040.
3118161.
3148851.
3149221.
3168937.
3189084.
3219411.
3223338.
3223339.
3223438.
3329656.
3274714.

Number. Amount. 3288791.
1027104 ...
1067381..
1067382.. ....
1067383..
1067384..
1075664......
1075665..
1152370..
1182375..
1182376.. . .
.
1230391..
1233928..
1264302..

§50
50
50
50

3306547.
3326927.
3374582.
3375994.
3423225.

50 3463172.
50
50

3469371.
3494452.

50 3501972.
50 3563318.
50
50
50

50

Number.

I—

3572118.
3572119.
3611777.
3611447.

850 i 3649627..
50 j: 3711300..
50 | 3749895..
J
50 ; 3773888..
l
50 ! 3786106..
j
50 ! 3793553..
'
,
50 ! 3834887..
|
50 I 3834679..
I
50 ; 3835793..
50 3888913....
50 3907439....
50 I 3907440....
50 3907443
50 3927034....
50 : 3956107....
!
50 ' 3963318....
50 3994590....
50 4138654....
50 1253911
50 4253912....
50 4292268....
50 4292269....
50 4458724....
50 4458725
50 4458726....
50 '£'±00/41 .
4458727....
50 I 4458728.
50 4458729..
50 4458730..
. 4458731..
50 i 4458732..
i
50 | 4458733..
!
50 j 4458734..
i
50 | 4458735..
!
50 ! 4458736..
!
50 l 4458737..
!
" " 4458738..
'
4458739..
50 4458740...
50 4458741...
50 4458742...
50 4458743...
50 4458744...
50 4458745...
50 4458746...
50 ; 4704042.
!
4783215...
4847107...
4948601...
50 ; 4958510
|
4968511.
5135026
5145335
5155032
5191705
5207982
5218304
5224642
534S829
5393391
5413564
5492092
5492204
5569633
5642655
5706075
5827142
5885360
5885361
6071567
6101614
6381705
50 ! 6530306.
:
50 | 6775126.
i
50 | 6799399.
50 ; 6799400.
50 i! 6799401.
50 l 6876125.
i
50 i 6876126.
j
50 l 6947398.
i
50 j 7055383.
50 I 7055384.
50 7691290.
5 0 ! 71391-11.
50 ! 7301570.
50 ; 7455036.
50 7466999.
50 i 7467259....
I

7706649.
1438....
15608...
27083...
27087...
32255...
34532...
45880...
45S81...
101730..
101731..
101732..
102097..

289704.
303428.
319955.
319959.
323117.
349346.
349347.
358438.
363235.
363238.
368798.
370313.
372183.
373146.
375843.
394759.
418263.
418716.
422283.
423174.
423175.
424281.
441862.
444.846.
444876.
460977.
461456.
465662.
476563.
482091.
482092.
499045.
499046.
499047.
499048.
499049.
499050.
544942.
554593.
554594.
554790.
582720.
595382.
596003.
596454.
600670.

Amount.

1116

FEDEKAL BESERVE BULLETIN.

SECOND 4 P E R CENT BONDS DUE 1942—Continued.
Number. Amount, j
606624..
608625..
606693..
606694..
631687.
659818.
659819.
735897.
746151.
816795.
824070.
858659.
903597..
912271..
912272..
912273..
921405..
922420..
932246.942098..
966012..
975906..
1025002.
1028159.
1048222.
1077016.
1087702.
1087778.
1115574.
1119260.
1127529.
1135317.
1141240.
1148893.
1153374.
1219060.
1264629.
1275464.
1275465.
1442710.
1442711.
1442712.
1442713.
1444152.
1454481.
1543797.
1547092.
1547093.
1587772.
1658149.
1680113.
1702380.
1720101.
1727039.
1750863.
1767357.
1784036.
1784037.
1784134.
1816269.
1816270.
1818706.
1818707.
1951085.
1960163.
2115381.
2115382.
2115383.
2115384.
2115385.
2115386.
2115387.
2166976.
2166977.
2189787.
2364566.
2370919.
2370920.
2370921.
2370922.




Number.

$100 2378840..
100 2378841..
100 2378842..
100 2405034.,
100 2455075..
100 2455076.
100 2445301.
100 2445302.,
100 2574540.
100 2574541.,
100 2645610.
100 2678103..
100 2741881..
100 2749064..
100 2818414.
100 2822853.,
100 2822854.
100 2913058.
100 2923840.
100 2924878.
100
100 2924880..
100 2924881..
100 2933152..
100 3071141..
100 3206745..
100 3206746.,
100 3206747.,
100 3206748.,
100 3308701..
100 3308702.
100 3308703.,
100 3308704.,
100 3308705.
100 3326681.
100 3486637.
100 3592207.
100 3677618.,
100 3677619.,
100 3691122.,
100 3691123.
100 3702556.
100 3888209.
100 3888210.,
100 3953280.,
100 4089490.
100 4125501.
100 4125502.,
100 4125503.
100 4125504.,
100 4125505.
100 4125506.
100 4125507.,
100 4125508.
100 4125509.
100 4125510.
100 4144062.
100 4197313.
100 4323707.
100 4323708.
100 4323709.
100 4323710.
100 4323711.
100 4323712.
100 4323713.
100 4323714.
100 4323715.
100 4323716.
100 4323717.
100 4409550.
ioo I: 4454964.
100 4507903.
100 4584250.
100 4664164.
100 2356....
100
100 12798.
100 12799.
100 12800.
100 12801.
100 12802.
100 ! 12803.
100 22035.

Amount.

NOVEMBER 1, 1918.

SECOND CONVERTED 4* P E R CENT BONDS DUE 1942.

Number.

Amount.

$100 51244..
100 51971..
100 112847.
100 130S98.
100 139163.
100 156590.
100 191435.
100 191440.
100 192917.
100 197406.
100 216418.
100 254769.
100 254770.
100 259368.
100 ! 272510.
l
100 1 355169.
1
100 | 355170.
i
100 N 355171.
100 i 431643.
:
100 ! 431644.
l
100 , 431645.
1
100 i 431646.
100 I 503196.
100 i 519484.
100 ' 4628..
i
100 ! 4629..
i
100 ' 18516.
100 , 18517.
100 ! 18518
•
100 ' 18519
i
100 i 18520
j
100 l 18521
!
100 | 18522
i
100 ; 18523
i
100 ; 18524
!
100 I1 18525
100 j! 89316
100 89317.
100 !, 95450.
.
100 ' 95451.
100 i 95452.
:
100 i 107709
!
100 129354.
100 150405.
100 230427.
100 ; 230328.
100 : 230429.
100 : 230430.
!
100 230431.
100 I 230432.
.
100 1 230433
1
100 I 230134
100 ' 230435
.
;
100 y| 230436
i
100 230437
100 : 230438
!
100 i 230439
|
100 ': 230440
I
100 : 230441
100 j! 264341
100 ! 3.13720
100 I 356780
100 !i 356781
!
100 i 383791
100 jI 383792
!
100 i 383793
100 383794.
100 420460.
100 420461.
100 459848
100 485055
100 620846
100 620847
100 632034
500 j: 643264...
500 j: 643265...
500 i 826G35...
500 i 1135629..
500 ! 1326327..
500 . 1414687..
... , 1
500 i 1642769..
;
500 !
j
500 !
i

S500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1, 000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000

Number.
44962
373358
406824
458598
458599

Amount.
$50
50
50
50
50

Number.
458600 .
805002
1172404
60498..
73977

Amount.
$50
50
50
500
500

Number.
73978
73979
73980..

Amount.
8500
500
500

THIRD 4-1 P E R CENT BONDS DUE 1928.
Number.
93468...
157702..
249340..
456603..
643500..
818079..
892779..
962388..
1041213.
1042712.
1118482.
1118483.
1166579.
1551049.
1611366.
1927038.
1927039.
1927040.
2203408.
2210556.
2356839.
2525566.
2649011.
2649012.
2706568.
2902653.
3025874.
3146077.
3332088.
3468624.
3683419.
3776980.
4156211.
4291985.
4517233.
4527171.
4751048.,
4778f,48..
4862632.,
5019133.
5144362.,
5148207.,
5148208.,
5148209.,
5148266.,
5148267.
5148268.
5148269.
5148270.
5148271.
5148272.
5148273.
5148274.
5148275.
5148276.
5148277.
5148278.
5148279.
5148280.
5148281.
5148282.
5148283.
5148284.
5148285.
5148286.
5148287.
5148288.
5148289.

Amount.
S50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

Number.
5148290
5148291
5148292
5148293
5148294
5148295
5148296.
5148297.
5148298.
5148299.
5148300.
5148301.
5148302.
5148303.
5148304.
5148305.
5148306.
5148307.
5148308.
5148309.
5148310.
5148311.
5148312.
5148313.
5148314.
5148315.
5148316.
5148317.
5148318.
5148319.
5148320.
5148321.
5148322.
5148323.
5148324.
5148325.
5148326.
5148327.
5148328.
5148329.
5148330.
5148331.
5148332.
5148333.
5148334.
5148335.
5148337.
5148338.
5148339.
5148340.
5148341.
5148342.
5148343.
5148344.
5148345.
5148346.
5148347.
5148348.
5148349.
5148350.
5148351.
5148352.
5148353.
5148354.
5148355.
5148356.
5148357.
5148358.
5148359

Amount.

Number

Amount.

$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50

5148360
5148361
5148362
j 5148363
5148364
5148365.
5152821
5187626
5187627
5187628
5846330
6032458
6087115
6087126
6271756
6352578
6352579
6352580
6352581
6352582
6352583
6352584
6352585
6352586.
6352587.
6352588.
6352589.
6352590.
6352591.
6352592.
6352593.
6352594
6352595.
6352596.
6352597.
6352598.
6352599
6352600.
6829925
7122141
7178780.
7410190.
7432693
7466999.
7766056.
8023722
8640423.
9212548
10079695
11258646
11432818.
77926
197018
197019
353135
i 413660
| 427578
;
; 441857
;
j 524740
! 621405
,
! 629866..
.
681032
936253
998199
1292723.
1323460.
1548127.
1548128.
1548129
1548130.

§50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
(Reg)lOO
(Reg)lOO
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

NOVEMBER 1, 11)18.

THIRD 4i PER CENT BONDS DUE 1928—Continued.

THIRD 4.1' PER CENT BONDS DUE 1928—Continued.
!!

Number. Amount. || Number.
1548131.
1677162.
1854076.
2027873.
2129058.
2129059.
2129060.
2129061.
2129002.
2129063.
2129084.
2129085.
2263829.
2263014.
2268015.
2268016.
2268017.
2268018.
2268019.
2268020.
2268021.
2268022.
2268023.
2268024.
2268025.
2268026.,
2268027.
2268028.,
2268029.
2268030..
2268031..
2268032.
2268033.,
2268034.
2268035.,
2268036.
2268037.,
2268038.
2268039.
2268040.
2268041.
2268042.
2268043.
2268044.
2268045.
2268047.
2286048.
2286049.
2286050.
2268051.
2268052.
2268053.
2268054.
2268055.
2268056.
2268057.
2268058.
2268059.
2268060.




3100 I 2268061.
100 2268062.
100 I 2268083.
100 2268064.
100 2268065.
100 2268066.
100 2288067.
100 ! 2268088.
1.00 II 2268069.
2268070.
2268071.
100 2268072
100
100 2268073
100 226S074
100 2268075
100 2268076
100 2288077
100 2268078
100 2268079
100 2268080
.100 2268081
100 226S0S2
100 226S053
100 2268084
100 2268085
100 2288086
100 226B0S7
17
100 2268088
100 2268089.
100 2268090.
100 2268091.
100 2268092.
100 I i 2268093,
ioo ii 2268094,
2268095.
100 ! 2288096.
100 I 2268097.
ioo j! 22680-98.
100 I 2268099,
I
100 2268100.
100 2268101
100 226S102.
100 2268103.
100 2268104.
100 2268105,
100 2268106.
100 2288107.
100 2268108,
100 2288109.
100 j; 2268110
100 2268111.
100 2268112,
100 2268113,
100 . 2268114
100 ! 2268115.
100 2268116.
100 2268117,
100 2268118
100 2268119
100 2268120
100 2268121
100

1117

FEDERAL RESERVE BULLETIN.

Ainount. i' N umbor. j Amount.

loo II

J

8100 2288122.
100 2268123.
100 2268124.
IOO !2268 L!25.
100 i 2268128.
j
100 M 220S127.
300 ! 2288128.
i
2268129.
100 ij 2263130.
100 i 2268131.
i
IOO | 226S132.
!
100 i 2268133.
100 ! 2268134.
100 i 2268130.
100 1 2268138.
1
ioo j! 2268137.
100 i 226S13S.
i
100 2268139.
100 2268140.
100 2268141.
100 2268142.
100 226S143.
100 2268144.
100 2268145.,
100 2268146.
100 2268147.,
100 2268148.
100 226S149..
100 226.5150..
100 2288151..
100 2268152..
100 i 2268153..
100 : 226S154..
ioo [••
2268155.,
100
2268158.,
100
2268157.
100
2268158.
100 | 2351722.,
:
ioo i: 2389123.,
ioo l: 2408220.,
ioo r 2483944.,
100 j: 2888018.
ioo I: 2888019.,
ioo r 2888020.
100 j, 3486882.,
106 i 3501994.
i
100 ' 3501995.
100 3501996.
100 3501997..
100 3501998.
100 3501999.
100 3502000.,
100 3757321.
100 3848231.
100 3885322.
100 3885324.
100 3885325.-.
100 3885326.
100 4261456.
100 4435880.
100 4435881.
100

S100
100
100
1(50
100
100
100
100
100
100
100
100
100
100
100
100
190
100
100
100
100
100
103
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

Numb or. Amount. | Number, i Amount.
-3100
100
100
100
100
100
100
100 .

5197246.
5197247.
5197248.
5197249.
5197250.
5272267.
5314573.
5314574.
6521461.
6521462.

3521483
6521464 ...
6521465
0557984
6570833
198838 .. .
500250
517240
ioo ;! 584096
100 i 588293

8100
100
100
100
100
500
500
500
500
500

Number. Amount.
$500
500
500
500
500
1,000
1,000
1,000
1,000
1,000

588294
588295
588296
588297
918089
46606 ...
48607
46608
46609
46610

RECOVERED LIBERTY BONDS.

Following is a list of the Liberty bonds
which were previously reported lost and which
have since been recovered and returned to the
interested bank.
FIRST 3£ PER CENT BONDS DUE 1947.
Number. I Amount.
I
1579,8
1504830

1

:

Number. I Amount. Number.

ii
S50 I 1942306
50 ! 1942307

Amount.

!
:
:

$50
50

j OUUJ7VJ* » . . . .

.

850
100

.,

954797

1

FIRST CONVERTED 4 PER CENT BONDS DUE 1947.
1382097

$100;!
SECOND 4 P E R CENT BONDS DUE 1942.

979308
;
4958681
i
5218304
!
6799399... J

350
50
50
50

; 6799400
i 6799401
j 7301570
']6^1905
!

!
i
|
.
:

$50
50
50
100

746151.... .. i
95450
i
95451
95452
i

$100
1 000
l'uQO
'

SECOND CONVERTED 4.1 PER CENT BONDS DUE 1942.
458598..
458599..
458600..

850
50
50

73977..
73978...

S500
500

73979..
73980..

T

$500
500

THIRD 4i PER CENT BONDS DUE 1928.
249340
5187626
5187627

S50 5187628
50 9212548
50

S50
50

413660
356958

$100
1,000

1118

FEDERAL RESERVE BULLETIN.

NOVEMBER 1? 1918.

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:
Paper covering sale of agricultural implements.
(To an individual.)

Applications for fiduciary powers under recent amendment to act.
(To an individual.)

In reply to your letter of October 1 you are
advised that the Federal Reserve Board contemplates issuing very shortly a revised set of
regulations governing the exercise of trust
powers under authority of section 11 (k) of the
Federal Reserve Act, as amended by the act
of September 26, 1918.
Pending the issuance of these regulations it
will not be necessary for 3^ou to file any further
application for permission of the Board to exercise the powers referred to, although it may be
advisable later to file a supplementary application if you desire to exercise any additional
powers enumerated in the act of September 26..

Receipt is acknowledged of your letter of
September 20.
You ask whether the six months7 maturity
privilege as applied to agricultural paper
applies to any sales that a manufacturer of
agricultural implements might sell to a dealer
for resale by him to a farmer.
OCTOBER 4, 1918.
In reply you are advised that under the rulings of the Board such paper would have to be
treated as commercial and not as agricultural Fiduciary powers—Necessary capital and surplus.
(To a Federal Reserve bank.)
paper and could not be rediscounted with a
Federal Reserve Bank if it had a maturity of
I am in receipt of your two letters of October
more than 90 days.
11 and 12, respectively, both of which relate
to that part of the amendment to section 11
SEPTEMBER 26, 1918.
(k) of the Federal Reserve act which provides
that "no permits shall be issued to any national banking association having a capital and
Right to alter notes.
surplus less than the capital and surplus re(To an individual.)
quired by State law of State banks, trustI am in receipt of your letter of September companies, and corporations exercising such
27, in which you call attention to the fact that powers."
notes discounted by your bank include proviYou call attention to the fact that in Pennsion to the effect that such notes may be ex- sylvania a trust company must have a capital
tended from time to time without notice.
of not less than $125,000 and ask whether, in
You ask whether you would be justified in the opinion of this office, a national bank havstriking out this provision in notes already ing a capital of $50,000 and a surplus of
executed without consulting the makers or $75,000 could be granted trust powers.
signers of such notes, in the event the Federal
This question was submitted to the Board a
Reserve Bank of your district should reach the few days ago and the inquiring bank was inconclusion that they are not eligible for redis- formed that a permit could not be granted.
count.
The terms capital and surplus have definite
In reply you are advised that in the opinion meanings in banking circles, and where the
of this office the holder has no right to effect State law requires a fixed amount of capital it
any alteration in a negotiable note after it has would, in my opinion, require a very forced
been discounted, and to do so might have the construction of the act for the Board to hold
effect of releasing some of the parties to the that surplus could be treated as capital. The
note.
same question is involved in the case of State
In the opinion to which you refer, the con- banks which have insufficient capital to beclusion is not reached that such notes are non- come national banks, but whose capital and
negotiable, but inasmuch as the decisions of surplus is equal to the capital required of nathe various State courts .are not uniform, the tional banks.
Board was advised that it should not approve
The Board has consistently ruled in such cases
for general use notes in this form.
that surplus could not be treated a,s capital.
OCTOBER 2,




1918.

OCTOBER 16,

1918.

1. 1918.

1119

FEDERAL RESERVE BULLETIN.

Acceptance of drafts by State bank members.
(To a State bank.)

Reasonable time for holding draft after presentment.
(To a member bank.)

Receipt is acknowledged of your letter of the
28th in reference to the condition attached to
your membership in the Federal Reserve System to the effect "that in no event shall the
aggregate amount of domestic acceptances
outstanding at one time exceed 50 per cent of
the capital and surplus of the bank."
This condition relates to drafts or bills
drawn against your bank in domestic transactions and accepted by your bank. It does
not relate to drafts drawn by an individual
against some other drawee which are accepted
by the drawee and discounted b}r you.
The Federal Reserve Board is without
authority to permit a member bank to accept
drafts drawn against it in domestic transactions in excess of 50 per cent of the capital
and surplus of the accepting bank. It may
authorize a member bank to accept drafts up
to 100 per cent, which amount may include
both those which grow out of transactions involving the exportation or importation of goods
and those which grow out of domestic transactions; but the statute limits specifically the
amount that may be accepted in domestic
transactions to 50 per cent of the capital and
surplus of the accepting bank.

Your letter of September 21 addressed to
Hon. W. J. Fowler, Deputy Comptroller of the
Currency, was referred by" him to the Federal
Reserve Board and has received the careful
consideration of the Board and its counsel.
You ask that the Board define what constitutes a "reasonable time" during which drafts
can be held after presentation for payment.
This question was discussed in an opinion approved by the Board and published on page 31
of the BULLETIN for January, 1917. In that
opinion the conclusion was reached that if a
member bank holds demand and sight drafts
for more than a reasonable time after acceptance, such drafts must be classed as overdue
paper and considered in substance as promissory notes of the acceptor subject to the limitations imposed by section 5200. What constitutes a reasonable time must depend upon
the facts in each case.
The Board has no authority, by regulation
or otherwise, to permit member banks to carry
demand or sight drafts for a period of thirty
days. If accommodation for this length of
time is needed, the note or draft should be
drawn for the time desired and not at sight.

OCTOBER 5,

1918.

Draft drawn for purpose of creating' dollar exchange.
(To a Federal Reserve agent.)

In response to your letter of October 29, I
beg to inform you that the Federal Reserve
Board has not rescinded its votetopermitmember banks to accept drafts drawn upon them
by banks or bankers in an}^ Central or South
-American country, for the purpose of creating
dollar exchange, under the provisions of section
13 of the Federal Reserve Act. The list of
countries published, in the October BULLETIN
is that of the specific countries for which, up
to that date, applications had been made.
Permission granted to a member bank with
respect to any country entitles it to exercise
similar accepting powers with respect to all
countries that have been or may hereafter
be designated by the Board as countries whose
usages of trade require the furnishing of dollar
exchange.
The Board expects soon to publish its
regulations, series of 1918, which will contain a
modification in this connection, but meanwhile the procedure should bo followed as prescribed in Regulation B, Scries of 1917.
NOVEMBER 1,




1918.

OCTOBER 8,

1918.

Advertising "clearing member."
(To a Federal Reserve Agent.)

I do not think that it would be advisable to
permit nonmember banks to use on their stationery the words "Clearing member of the Federal Reserve Bank."
Section 13 provides that "solely for the purposes of exchange or collection" Federal Reserve Banks may receive "from any nonmember bank or trust company deposits of current
funds in lawful mone}^, etc.,"" * * * provided such "nonmember bank or trust company maintains with the Federal Reserve
Bank a balance sufficient, etc." * * *
You will observe that the term "clearing
member" is not used in this section, but that
the banks or trust companies which are not
members, but which are permitted to maintain accounts with the Federal Reserve Banks
are distinctly referred to as "nonmember
banks." It is difficult, therefore, to see how a
nonmember can be called a clearing member;
then, again, if there is any prestige attached
to the word "member," it should be given
entirely to actual bona fide members.

1120

FEDERAL RESERVE BULLETIN".

NOYK.NEJSKK 1, 1 9 1 8 .

I appreciate, however, the point which you to be considered as borrowed money within
raise "regarding State banks, which are ineli- the meaning of this section.77
OCTOBER 19, 1918.
gible for membership, but would suggest that
instead of using the words "clearing member-'
they put on their stationery the words "exchange and collection agent of the Federal Purchase of "iinance bills" by Federal Reserve Bank.
(To a Federal Reserve Agont.)
.Reserve Bank/ 7 The words "exchange and
collection77 appear in section 13 as descriptive
I am in receipt of your letter of October 17.
of the bank with a nonmember account.
You ask for ruling of the Board on the question
whether you are authorized to discount or
OCTOBER 10, 1918.
purchase acceptances "drawn by
, Argentina, at 90 days, in favor of
, and
Limit en rediscounts.
accepted by the
Company, payable in
(To a Federal Reserve Agent.)
New York.'77
You state that you are advised that these
I have received your letter of the 17th
instant, and in reply would state that the are finance bills, not having been secured at
recent amendment to section 5200, which au- the time of acceptance by merchandise.
While it is not necessary for a draft drawn
thorizes the Comptroller to extend the limit
to which a national bank may loan on United in a transaction involving the importation or
States bonds, does not amend section 13 of exportation of goods to be secured by merthe Federal Reserve Act, consequently the chandise at the time of acceptance, if these
Federal Reserve Banks, on rediscounting for drafts are finance bills they would not be elimember banks, must take care that the aggre- gible for purchase or rediscount by a Federal
gate of notes, drafts, and bills bearing the sig- Reserve Bank. Section 13 specifically pronature of any one borrower rediscounted for vides that bills of exchange which may be disany one bank shall at no time exceed 10 per counted must be issued or drawn for agriculcent of the capital and surplus of said bank, tural, industrial, or commercial purposes, or
such restriction not applying to the rediscount that the proceeds of such bills must have been
used or must be intended for use of one of
of bills of exchange, etc.
In the case of State member banks, the Fed- such purposes.
eral Reserve Banks are governed by the proSection 14, which authorizes the purchase
visions of section 9, and are not "permitted of such bills in the open market, specifies that
to discount for any State bank or trust com- they must arise out of commercial transactions
pany notes, drafts,' or bills of exchange of any as hereinbefore defined.
one borrower who is liable for borrowed money
If you are satisfied, therefore, that these
to such State bank or trust company, in an bills were not drawn for an agricultural, indusamount greater than 10 per cent of the capital trial, or commercial purpose, you are correct
and surplus of such State bank or trust com- in your position that they are not eligible for
pany; the discount of bills of exchange drawn rediscount or purchase by your bank.
against actually existing values * * * not
OCTOBER 22, 1918.




NOTBMBEK 1, 19.1.8.

FEDEBAL RESERVE BULLETIN.

1121

RULINGS OF THE DIVISION OF FOREIGN EXCHANGE.
Following are formal and informal rulings a person acting for or on behalf of or for the benefit oi: an
made by the Federal Reserve Board, Divi- enemy or ally of enemy since February 3, 191.7.
sion of Foreign Exchange, under Executive- The above declaration should be executed where
possible by the
correspondent
whom
Order of January 26, 1918, and subsequent for collection byforeignpayee, otherwisetoby the it is sent
the
dealer in
to the issuance of "Instructions to Dealers" the United States upon whom, the check is drawn, or
of January 26, 1918. The terms "person," by some duly authorized person in the United States
1
who
* dealer," *' correspondent/' L * customeiy' and acts as agent of the payee.
such other terms as have a special meaning, JUNE 18, 1918.
are used in these rulings as prescribed in the Securities forwarded hy express.
Executive Order above.
Class A reports.
Dealers who sell exchange to persons in the United
States covering remittances to members of the American
Expeditionary Forces should enter such transactions
•under column No. 12 (see Instructions to Dealers, p. 8).
MARCH 12,

1918.

Shipments of currency out of the country*
Dealers or other persons who desire to ship currency
out of the United States must apply to the Federal Reserve Board through the Federal Reserve Bank of their
district for license, stating at the time of the application
the purpose for which the shipment is required and the
total amount of currency involved, listing separately the
various kinds of notes.
MAY 2, 1918.
Foreign dividend checks of foreign corporations.

Persons other than dealers desiring to transport securities to or from the United States by express must file
a declaration of nonenemy interest as prescribed by the
Executive Order of January 20. 1918, and must obtain
a certificate from the Federal Reserve Board through a
Federal Reserve Bank that such declaration has been
filed, in the same manner as is prescribed in the case
of persons who desire to transport securities on their
person or in their baggage,
AUGUST 8, 1918.

Occasional transactions in exchange.
A bank may accept occasional orders for exchange
from its customers and transmit them to a dealer withouthaving a registration certificate, but in such case the
initiating bank must send to the dealer through whom
the transaction is effected the usual customer's statement. It is necessary that banks having continual
transactions of this order take out proper registration
certificates.

Checks drawn by foreign corporations against their
AUGUST 14, 1918.
deposits in American banks to cover dividends earned
abroad should have stamped upon the back thereof the
Securities.
following declaration:
No bonds, negotiable securities, or evidences of inThis check or draft will not be paid unless the following
declaration is executed by the person to whom it is sent debtedness of any kind, with the exception of letters of
for collection by the payee, or his agent, or by the person credit., may be taken out of the United States by travelers
who acts as the agent in the United States for the payee. on their person or in their baggage, unless a license has
From actual personal knowledge, or in reliance upon
declarations or affidavits furnished the undersigned by been issued by a Federal Reserve Bank permitting such
the parties in interest, I (we) do hereby expressly declare action. United States Liberty bonds. United States war
that no enemy or ally of enemy of the Hinted States is savings certificates or stamps, as well as securities of foreign
directly or indirectly interested in the proceeds of this Governments, are included within the scope of the above
check or draft and that such proceeds will not be made
available for the use of an enemy or ally of enemy of the ruling.
Collectors must make reports to the Division of Foreign
United States; that the stock upon which this dividend
is paid (or the obligation upon, which this interest is Exchange of the Federal Reserve Board. 15 Wall Street.
paid) is not and has not been owned by or held for account New York City, of all such bonds, securities, and other
of an enemy or ally of enemy of the United States since
January 26, 1918, and has not been purchased by the evidences of indebtedness taken out of the United States
present owner from an enemy or ally of enemy or from under license of a Federal Eeserve Bank, or which are




1122

FEDERAL RESERVE BULLETIN".

NOVEMBER 1,1918.

attempted to be taken out without such license. Such Declarations of foreign correspondents.
report should be made out immediately after the event.
Sufficient time has now elapsed since the promulgation
OCTOBER 7, 1918.
of the Executive Order, dated January 26, 1918, to enable
Transfers of funds by telegraph.
dealers to secure and file with the Division of Foreign
Transfers of money by telegraph, or through the agency Exchange the declarations from their foreign correspondof telegraph companies, to persons outside of the United ents. All such declarations not heretofore filed must be
States are subject to the same conditions as are other trans- iiled with the Division of Foreign Exchange, Federal
actions in foreign exchange, and a customer's statement Reserve Board, 15 Wall Street, New York City, on or
must in every case be taken by the dealer as prescribed before November 15,1918, and transactions by dealers with
in the Executive Order of January 26,1918. The " dealer'' correspondents after that date are conditioned upon the
in such a transaction is the telegraph company, or any previous filing of the correspondent's declaration.
of its agents or agencies, effecting the transfer.
OCTOBEB 26, 1918.
OCTOBER 23,




1918.

NOVEMBER 1,1918.

FEDEBAL RESERVE BULLETIN.

1123

LAW DEPARTMENT.
The following opinions of counsel have been,
The first question to be determined is whether
authorized for publication by the Board since this requirement applies to deposits received in
foreign branches o! a member bank. It is true
the last edition of the BULLETIN :
that there is no separate corporate entity as
between the parent bank and its branch. A
Reserves of foreign branches.
Section 19 of the Federal Reserve Act, which, prescribes deposit liability of a branch is, therefore, a
reserves to be carried by member baiiks, does not apply to liability of the parent bank, and if section 19
foreign branches of national banks; but, under the special is interpreted literally the language is no doubt
power vested in the Federal Reserve Board by section 25 broad enough to cover deposits received in
to prescribe conditions and regulations under which foreign foreign countries through branches.
Section 25, however, provides that these
branches may be established, it is authorized to prescribe
the amount, character, and location of reserve to be main- branches may be established "upon such conditions and under such regulations as may be
tained against deposits received in such branches.
prescribed by the said Board" (i. e., the Federal
OCTOBER 7, 1918.
Reserve Board).
It is obvious, therefore, that Congress recogSIR: Section 25 of the Federal Reserve Act,
as amended by the act approved September 7, nized the fact that no rigid rule could be enforced governing the operations of foreign
1916, provides in part as follows:
' 'Any national banking association possessing branches if these branches are to accomplish
a capital and surplus of $1,000,000 or more the purpose for which they are created, viz,
may file application with the Federal Reserve to further the foreign commerce of the United
Board for permission to exercise, upon such States. Such branches are necessarily subject
conditions and under such regulations as may in their local operations to the laws of various
be prescribed by the said Board, either or both sovereignties, and it was, therefore, necessary to
of the following powers: First, to establish vest in the Federal Reserve Board some disbranches in foreign countries, or dependencies cretion as to the restrictions to be imposed
or insular possessions of the United States, for upon the operations of foreign branches in order
the furtherance of the foreign commerce of the that the interests of the parent bank might be
United States, and to act, if required to do so, safeguarded and the creditors in this country
as fiscal agent of the United States, * * *. ' might be protected.
The reserve requirements of section 19 were
One of the national banks which has established branches in certain foreign countries under clearly intended to protect primarily the doauthority of this section has asked the Federal mestic creditors of member banks.
By an amendment to this section, member
Reserve Board what reserve must be carried
*
against deposits received in foreign branches banks were permitted to transfer their entire *
reserve to the Federal Reserve Bank. The
and where such reserve must be carried.
You have requested the opinion of this office Federal Reserve Banks directly, or through
their branches, are enabled to supply the curon the question submitted.
The bank in question is located in New York, rency needs of member banks with little delay,
which is a central reserve city. Section 19 of and reserve carried with a Federal Reserve
the act as amended, which prescribes reserve Bank may, therefore, perform one of its printo be carried by member banks, provides in cipal functions, \iz, to meet the abnormal withdrawals of domestic depositors. It is manifest,
part that—
"Every bank, banking association, or trust however, that reserve carried with a Federal
company", which is, or which becomes, a mem- Reserve Bank can not adequately perform this
ber of any Federal Reserve Bank, shall estab- function in so far as foreign creditors of a
lish and maintain reserve balances with its national bank are concerned. It must be
Federal Reserve Bank as follows: * * * assumed, therefore, that Congress did not
(c) If, in a central reserve city as now or intend to provide that reserve should be carhereafter defined, it shall hold and maintain ried against foreign deposits in a place where
with the Federal Reserve Bank of its district such reserve could not perform the functions
an actual net balance equal to not less than 13 it is intended to perform.
per cent of the aggregate amount of its demand
That Congress recognized the fact that laws
Heposits and 3 per cent of its time deposits/' governing the local operations of national banks




1124

FEDERAL RESERVE BULLETIN.

could not consistently bo strictly applied to
the operations of foreign branches is further
indicated by that part of section 25 which, provides that—
"'Every national banking association operating foreign branches shall be required to furnish information concerning the condition of
such branches to the Comptroller of the Currency upon demand."
If Congress had intended the operations of
foreign branches to be subject to all provisions
of existing laws which affect the local operations of national banks, it would have been unnecessary to incorporate this provision in the
act, since laws in force at the time of the passage of this act and its amendments contain
adequate provision for requiring national
banks to furnish full information to the Comptroller of the Currency as to the condition of
such banks.
It is the opinion of this office, therefore, that
under the special power vested in the Board to
prescribe conditions and regulations under
which foreign branches may be established, it
is authorized to prescribe the amount, character, and location of reserve to be maintained
against deposits received in such branches.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. W. P. G. HARDING,

Governor, Federal Reserve Board.
Reserve of banks In outlying districts of reserve and
central reserve cities.
Under section 19 of the Federal Reserve Act as amended
September 26, 1918, the fact that a bank is located in what
may have been declared by the Federal Reserve Board to
be an outlying district of a central reserve city does not of
itself entitle the bank to carry a lower reserve, but the
Board should act on each case and determine what amount
of reserve should be carried against demand deposits by
each bank so located.
OCTOBER 19, 1918.

SIR : Section 19 of the Federal Reserve Act,
as amended by the act of September 26, reads
in part as follows:
"Every banking association or trust company which is or which becomes a member of
any Federal Reserve Bank, shall establish and
maintain reserve balances with its Federal
Reserve Bank as follows: * * *
"Subsection (c). If in a central reserve city
as now or hereafter defined, it shall hold and
maintain with the Federal Reserve Bank of its
district, an actual net balance equal to not less




NOVEMBER 1,1918.

than 13 per cent of the aggregate amount of its
demandx deposits and 3 per cent of its time
deposits, provided, however, that if located in the
outlying districts of a central reserve city, or in
territory added to such city by the extension of its
corporate charter, it may upon the affirmative
vote of five members qf the Federal Reserve
Board, hold and maintain the reserve balances
specified in paragraphs A or B thereof.y)

The question has arisen whether the Federal
Reserve Board may permit one member bank
in the outlying district of a central reserve city
to maintain a lower reserve than another bank
in the same section of the city, or whether all
banks in the outlying district must be placed
on an equal basis.
It will be observed that in order for a bank
located in a central reserve city to have its
reserve status changed, two conditions must be
met. First, the bank must be located in an
outlying district; second, the Federal Reserve
Board by an affirmative vote of at least five
members, must specif3^ whether such bank
may be permitted to carry reserve specified in
"Aj" i. e., 7 per cent against demand deposits
or^the reserve specified^ in "B," i. e., 10 per
cent against demand deposits.
It is entirely conceivable that the character
of business of a bank located in an outlying
district may be such that the Board would not
feel justified in reducing its reserve.
It was obviously the intention of Congress
that the Board should exercise a discretion in
this matter and should consider each case on its
merits, since otherwise it would have provided
merely that the Board should determine what
constituted outlying districts of a central reserve city and would have expressly fixed the
amount of reserve to be carried.
I am of the opinion, therefore, that the fact
that the bank is located in what may have been
declared by the Board to be an outlying district
qf a central reserve city does not of itself entitle
the bank to carry a lower reserve, but that the
Board should act on each case and determine
what amount of reserve should be carried
against demand deposits—i. e., whether 7 or
10 per cent. In this view, permission granted
to one bank in an outlying district, does not
carry with it permission to all other banks
located in that district.
Respectfully,
M. C. ELLIOTT,

Counsel,
To Hon. W. P. G. HARDING,

Governor, Federal Reserve Board.

SUMMARY OF BUSINESS CONDITIONS OCTOBER 23, 1918,
General
business.

District.,
No. 1—Boston

Crop condlton.
Good

Good

Industries of the dis- Construction, "building,
and. engineering.
trict.
Bus y

Foreign trade.

^conditions.

Money rates.

Increasing in va lue. Steady

Inactive.

Post office,increasing. - Scarce-

I

No. 2—New York.. Fairly active;
profits decreasing:
collections
good.

Fair

No. 3—Philadelphia.

Good

I Very busy.

Good

No. 4—Cleveland... Satisfactory..,

do

i Busy

.1 Only essential build| in'g construction
I under wav.
:

i

Active

. . . i Very

Limited only by sup- I Practically confined
plies and labor.
• to Government
: work.

No. 6—Atlanta

I Good

Restricted.

; Construction inactive. Very Jight

Satisfactory

i Essential; very active.! Stagnant, except war !
|
; purposes.
|

j
No. 8—St. Louis...I Good

Fair

No. 9—Minneapolis.;

Good

j Active
|
!
j
do

No. 7—Chicago

j Very good

do

No. 10—K a n s a s i Active.
City.
|

.do.

;

Very quiet

I Slow

j Increasing

Finn

Very q met except for
Government needs.

No. 5—Richmond... Very active.., Being marketed
at high prices.

G ood

firm

No. 12—San Francisco.




I Satisfactory...;

Active

j

As active as the sup- ; Inactive
ply of material and •
;
labor permits.
[

do

Verv active

j Increasing

; Exacting.

Stationary

Both railroad and
post office receipts
steady.

Fully employed;
scarcity.

..-! Increasing; firm at
; 6 per cent.

Post office receipts Unsatisfactory
tribution.
increase G.8 per cent.

\,

...I Firm

Post office
increase.

j

. . . ! . . . . do

No change

.Busy, but short on j Little doing...
materials in some \
:
lines.

do.. .

of
i Su;
! Supply c labor dei iiciont.

Active demand, | Railroad, continued j Seriously affected by
improvement; post i prevailing influ6 per cent.
office, continued in- ! enza.
crease.
!

dis-

receipts : J) em a nd increasing.
!
! G ood.

i

Steady and /inn.

: Acute shortage.

I

i

No. 11—Dallas

Railroad, i n c r e a s e ; j Great scarcity and
post office, increase: j turnover; aggravaAVestern Union, in- j ted by influenza,
crease.
I

Much curtailed.except September exports Finn and slightly
imports
higher.
(• o v eminent con- and
about 5.5 per
struction.
cent under August.

j Active; m a t e r i a l s
easier; labor short.

..; inactive

j Increasing in indus- • In veasing
!
trial centers; d.e- !
creasing elsewhere, j

Firm: no ilactuation in pas!: 30
days.
: Firm

Railroad, increase; ; U n s a t i s f a c t o r y ;
post office, increase ; caused by the
:
39.5 per cent.
draft.
j Increasing

Fairly stable: shortage in shipyards
and on farms.

I
M

1126

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

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 by the Federal Reserve
agents, who are the chairmen of the boards of
directors for the Federal Reserve Banks of the
several districts. Below are the detailed reports as of approximately October 23:
DISTRICT NO. 1—BOSTON.

The epidemic of influenza which has prevailed during the past month has seriously
interfered with business. Production of all
kinds has been restricted. Retailers in large
centers have had a material falling off in
business, while those serving small local trade
have to a considerable extent reaped benefits.
Conditions are, however, rapidly returning to
normal.
The fourth Liberty loan and the German
peace proposals have occupied a prominent
place in the general situation. Merchants and
manufacturers have scanned carefully their
inventories lest they be too heavity stocked
with high-priced goods in a falling market.
The danger of this has been so strongly emphasized, however, that merchants have, for
the most part, less goods on their shelves than
they have had for a long time.
Conflicting reports regarding activities are
current in practically all lines and, taken as a
whole, business at the moment is decidedly
spotty. As soon as the loan is over and the
present international situation is clearer, a
more definite trend should be evident; but for
the time being neither buyers nor sellers wish
to commit themselves beyond their immediate
needs. In the meantime there is no slackening
on Government work except such as is caused
by the depletion of labor through sickness.
The money market remains steady and restricted, with 6 per cent the basic rate for all
transactions. Prime bankers' acceptances are
4 ^ per cent, unindorsed, and 4 ^ , indorsed.
Bankers are caring for their own customers
who require accommodation for essential purposes, but are doing little else.
The market for commercial paper is extremely limited. The effect of the regulations
of various committees in curtailing nonessentiais is becoming more evident and, for the
most part, these are being graciously accepted.




There has been little change in the wool
situation since last month. The appraisal and
allotment Q the domestic clip is proceeding in
f
an orderly manner. The new commission
which has gone to South America to purchase
wool for the Government has not 3^et arrived,
and in the meantime the old syndicate continues to act.
No wool has yet been allotted for civilian
purposes and this is causing considerable anxiety, as mills are only running 50 to 60 per
cent on Government business, and machinery
which is not adapted for Government needs is
standing idle. Unless some wool is released
for civilian manufacture, it is feared that mills
will not be able to maintain their full organizations.
Cotton mills have been seriously retarded
by shortage of labor due, to a considerable
extent, to the illness of employees. For the
present this is the most important factor
superseding interest in price fixing and the
possibility of Government regulation of cotton.
Some mills have been obliged to notify buyers
that deliveries will be delaj^ed.
The print-cloth market lias been quiet, with
mills unwilling to transact any business other
than that which they can easily handle on the
spot or in the near future.
Inquiry for fine goods has increased, and
mills could book a great deal of business if
they were in a position to do so. However,
with the needs of the Government for 1919
aircraft production taking precedence, the outlook for civilian production is not bright,
especially as some mills are now running 80
per cent on Government orders.
It is reported that mills are revamping their
machinery as much as possible in order to be
able to manufacture economically when competition begins again in the after-the-war
period.
Early frost hurt corn and garden vegetables
in northern New England to some extent, but,
as a whole, crop conditions in this district are
good, grain yields in particular being of fine
quality* The heavy rains during the first
part of the month caused some damage, rot
being reported in the potato crop.
It is estimated that boot and shoe manufactories are running at about 60 per cent to
80 per cent of full capacity, which is the most
that conditions will permit. Retail business
has been adversely affected by restrictions on

FEDEEAL RESERVE BULLETIN.

NOVEMBER 1,1918.

shopping and by the weather. Restriction
and standardization of styles and colors have
proved beneficial to the retailer with a small
capital who has been experiencing difficulty in
maintaining a satisfactory stock at the prevailing level of prices. The leather market
continues firm.
Boston Clearing House figures compare as
follows:
Oct. 11,1918.
Loans and discounts
Demand deposits
Time deposits
Duo to banks
Exchanges

Oct. 5, 1918. Oct. 13,1917.

S521.285.000
450,092,000
14,685,000
120,528,000
1246,191,936

3522,832,000 .15449,806,000
453,132,000 372,412,000
30,574,000
14,534,000
124,165,000 134,234,000
315,837,225 203,234,000

1

Five days.

Building and engineering operations in
New England from January "1 to October 17,
1918, amounted to §132,177,000, as compared
with $167,935,000 for the corresponding period
of 1917. It is estimated that between onethird and one-fourth of this amount is due to
Government building operations.
The receipts of the Boston post office for
September 1, 1918, show an increase of $109,945.25, or about 16 per cent more than September, 1917. For the first 15 days of October, 1918, receipts were about 27 per cent,
or $103,764.48 more than for the corresponding period of last year.
DISTRICT NO. 2—NEW YORK.
Business as a whole continues active and
appears to have been fairly well adjusted to
war conditions. Profits in almost every line
of industry are reported as showing a decreasing tendency, due to higher wages, lower efficiency of labor, increased amount of capital required, and, in some instances, to smaller
volume of business over which to distribute
overhead. Collections are generally good.
There is a growing tendency to shorten credits.
Buying has become more conservative in many
lines where it is felt that, if peace came, it
would bring lower prices. On the other hand,
an early autumn has stimulated trade in
seasonal goods.
Labor.—Influenza has greatly hampered production in certain centers, although the situation is not yet as serious as reported in some of
the other districts. The draft continues to
draw on the labor supply, but conditions are
mitigated somewhat by the increasing flow of
women into industry. The turnover continues large. JThe August payroll in New




1127

York State, as reported by the State Department of Labor, was the largest on record,
total wages paid being 128 per cent and the
number of wage earners 33 per cent above
those of August, 1914.
Agriculture.—Crops are generally satisfactory, although some damage was done by early
frosts. The food situation is perceptibly improved. Stocks are larger, and prices have
tended downward during the last three weeks.
The local Federal Food Administrator states
that, in his opinion, the high mark in prices
has passed.
Building.—Government demand for building materials continues strong; but ordinary
demand is far below normal, being materially
affected by the order that permission must be
received for all construction amounting to over
$2,500. It is estimated, however, that in New
York City nearly $100,000,000 of construction
work is ready to apply for permits. Rental
space is in strong demand.
Railroads.—The railroad situation is good.
Deliveries are fairly prompt. Tonnage to
eastern ports during September was 9.2 per
cent above that of August. Increase in railroad receipts, however, is accounted for more
by higher'rates than by increased tonnage.
Foreign trade,—Exports at New York during September were 5.8 per cent under August
and 19.5 per cent under September, 1917; imports were 5.5 percent under August, but 16.6
per cent above September last year. War requirements practically monopolize export facilities. During September commercial exports filled only 13 per cent of the 1,651 cars
carrying goods coastward for export, not taking into account those carrying exclusively
United States Government war supplies.
Merchandising.—Retail and mail order sales
continue heavy, with special demand for better
class goods. Some reports indicate that the
war-savings' movement is reducing sales in
certain lines.
Textiles.—Prices of raw cotton have receded
somewhat. The supply of cotton cloth is
reported fair. The wool situation steadily
grows more acute. Only old stocks of wool
and yarns, or surpluses left at completion of
Government orders, are available for civilian
purposes. Carpet prices have risen. Raw silk
is easier, but prices continue to advance.
There is strong demand for seasonal goods.
Leather.—The volume of leather business is
running above that of last year, but is not
expected to continue so. The shoe trade Jias
slowed up slightly. Both glove and shoe

1128

FEDERAL EESEEVE BULLETIN.

manufacturers report difficulties because of
import and export restrictions.
Fur8.—Far supplies are low and prices rising. Demand for export is heav}r. New
supplies of raw furs are expected in December.
Coal.—The supply and quality of bituminous coal has improved. In anthracite there
appears to be an oversupply of steam sizes
but some shortage in domestic sizes. On the
whole the fuel situation is fairly satisfactory.
Oil.—Domestic buyers tend to take supplies
only for immediate use. Export demand is
heavy. The gasoline and fuel oil situation is
improved, but there is a shortage in kerosene.
Metals.—Metals are in comparatively good
supply with the exception of steel and copper.
Steel production has improved, September
being the biggest month on record; but it still
lags' behind "demand. The copper situation
has been growing worse.
Rubber.—The rubber business is good and
prospects for the next quarter are fair.
Watches and jewelry.—Demand in the watch
trade is running far ahead of supply. The
restriction on the use of gold for manufacturing purposes has caused a decided slowing
up in the jewelry business.
Chemicals and paints.—The demand for
chemicals and paints continues heavy. The
supply of linseed is low temporarily, but is
expected to be ample during the next six
months.
Hardware.—The volume in the hardware
trade is good except in building lines. The
demand "for tools runs especially strong.
Prices continue upward.
Banking.—Loans and deposits of reporting
banks have tended slightly upward, the former rising somewhat the more rapidly. Interest rates have continued very firm. Member
banks have had occasion to increase their use
of the rediscount facilities of the Federal Reserve Bank because of their subscriptions to
the certificates of indebtedness issued in anticipation, of the fourth Liberty loan and because
of a large movement of gold to other districts
through the gold settlement fund.
Exchange on European neutrals has dropped
appreciably, due in part, no doubt, to the
increasingly favorable war situation.
Securities.—Prices of stocks and bonds have
tended upward since the middle of September,
with the volume of trading increasing. On
October 18, over 1,600,000 shares were dealt
in. The German peace proposals have directed attention especially to railroad securities and others which a return to peace would
presumably benefit.




NOVEMBER 1,1918.

DISTRICT NO. 3—PHILADELPHIA.

General prosperous conditions have continued throughout the district. There is a steady
demand for all kinds of staple merchandise, but
it is becoming increasingly difficult to replenish
supplies and many concerns find it impossible
to meet the full requirements of their customers.
Efforts to increase the output of the iron and
steel plants and other industries which have
large Government contracts are producing results, an improvement being shown in both the
number of hands employed and in the quantity
of production.
Retail trade shows a large increase during
the month up to the beginning of the influenza
epidemic. Since that time, however, the number of customers daily visiting the stores has
decreased about one-third and the volume of
sales from 30 to 50 per cent; and working
forces of all business establishments, too, have
been affected very much at times, as many as
one-third of the employees having been unfit
for duty.
Jobbers of dry goods and notions report that
business is very satisfactory, although it also is
being affected by the epidemic. There is a
feeling, however, on the part of some that this
may be beneficial, as there had been very vigorous buying and the present serious condition
may cause conservative reaction.
The influenza epidemic had greatly affected
the coal output. Conservative estimates show
that it has caused, a decline in the production
of anthracite coal of from 250,000 to 300,000
tons per week, some of the collieries being compelled to close. The shipments of anthracite
for September, as furnished to the Anthracite
Bureau of Information, amounted to 6,234,395
tons, as compared with 6,372,756 tons for September of last year and 7,180,923 tons for
August of this year. The small production in
September, however, was due principally to the
fewer number of working days, there being only
24 that month, whereas there were 27 in
August. The average daily shipments in September of this year amounted to 259,766 tons,
which is a record figure.
Bituminous production has been increasing
and has reached a weekly production of more
than 13,000,000 tons.
The requirements for steel for direct war
purposes are increasing rapidly, and it has
become necessary to seek additional means for
conserving it. The scarcity of pig iron is
growing more acute, there not being enough
of any grade to take care qf the demand.
Stocks in furnace yards are becoming very low

NOVKUBKIt 1, 1918.

EEDEEAL RESEEVE BULLETIN.

and many consumers have but a few days'
supply. Results of the efforts to speed up pig
iron production are reflected in the figures for
September, which show a daily average of
113,942 tons, the highest in the history of the
industry, as compared with 109,341 tons in
August.
Building conditions continue very quiet.
The extremely high cost of construction and
the Government's control of materials are
holding back a number of proposed improvements and preventing all but absolutely necessary work from being started.
The cotton yarn trade has been very good,
due to the large Government orders for fabrics,
which have been taking about 50 per cent of
the production of the textile mills. Labor is
still very scarce, the average mill running only
about 75 per cent of normal. Prices continue
high on account of the very short cotton crop.
Most of the underwear mills have sufficient
Government work to keep them busy until the
first of the year. As the Government has
sufficient light-weight goods for the spring and
summer of" 1919, it is not expected that any
contracts will be given for this line until next
summer.
Silk mills are not attempting to proceed
ahead of January and February supplies.
Production is estimated at about between 50
and 60 per cent of normal.
Financial transactions have been overshadowed by the Liberty loan campaign. The
minimum rate for commercial paper has remained at 6 per cent. Commercial failures
continue at an extremely low level. During
the month of September Bradstreet's reported
32 failures in this district, of which 28 consisted of concerns having capital of $5,000 or
less.
During the month of September discount
operations of the Federal Reserve Bank
amounted to $167,231,191, of which 81 percent was secured by obligations of the United
States Government.
The average daily
amount of earning assets held by the b a n t
during that month was §114,640,100.
Total loan and investment operations for the
first nine months of the year amounted to
$875,701,864, as compared with $329,743,478
for the entire year 1917.
DISTRICT NO. 4—CLEVELAND.
It was expected that the intensive campaign
for subscriptions to the fourth Liberty loan
would result in a very considerable slackening
in business, but the few instances in which this




1129

condition is reported are as readily explained
through other causes. As a result of allied
victories there is an indication of a waiting
mood which tends to curb activities until final
results and consequent changes are known.
Manufacturing.,—The steel and iron industries are now wholly confined to the manufacture of products essential to war work. The
blast furnace output and ingot production
reached the maximum in their history during
the- past month. Generally, all lines* of steel
and iron are as busy as conditions will permit
and production is close to 100 per cent. Preference is shown to shipbuilders and car companies in distribution.
Considerable slackening in the work of sheet
and tinplate mills is experienced and the output is not nearly up to the average maintained
during the past months. Operating conditions show some improvement, and kindred
lines generally are thought to be in a satisfactory situation.
Fuel.—Coal production in the larger centers
is said to have gained, and in the outlying
districts is at capacity. The most pronounced
factor in restricting the output is labor shortage. So.far the epidemic of influenza has had
but little effect in curtailing production. The
demand continues strong.
The Pittsburgh district reports that no
headway is being made in producing more
coal than was produced in the previous year.
It is believed, however, that any shortage in
the larger districts may in part be made up by
the production from new fields and increased
production by the smaller operators.
Agriculture.—The fall weather has been
favorable for the corn crop, and in view of the
fact that the frost did not appear until late in
the season the corn is much better matured
than last year's crop. Except in some localities in. the northern part of the district there
is very little soft corn.
Imported seed not adapted to the locality
made luxuriant growth but failed to properly
ripen. The buckwheat crop is being harvested
and is large, with an acreage in excess of former
years. Wheat seeding is completed, and universally throughout the district an acreage in
excess of last year is reported to have been
sown. Conditions for planting- this crop were
very favorable, the ground being in good condition, and light rams followed the planting.
One large tobacco-raising county in Kentucky reports an abnormal acreage that
reached an unusual degree of maturity, and it
is estimated that at the present prices the crop

1130

FEDERAL RESERVE BULLETIN.

will bring into the county a sum equal to the
resources of all the banks. So far the curing
season has been favorable.
Farms generally are well stocked, and the
number of pigs is in excess of previous }'ears.
Pasturage continues to be good, which aids
materially in the fattening process.
Labor.—Labor conditions are better at this
time than was expected. So far the epidemic
of influenza has not contributed to any great
extent in the labor shortage. Although labor
is busy and overtime work continues to be the
order "of the day, it continues scarce, and in
some quarters unrest is apparent and complaints are made that wages have not kept pace
with the rise in the cost of living. Shifting of
labor from nonessential to essential industries
also makes for some disturbance by reason of
changes of residence and environment. The
employment of women continues to grow with
satisfactory results.
Collections.—Although some large manufacturers report paper being offered in settlement, yet this is not in sufficient amount to
cause any uneasiness, and collections generally
continue to be very satisfactory. Promptness
in settlement is in many cases a condition of
sale.
Failures continue to decrease, a fact which
evidences a very satisfactory situation.
Transportation.—Fewer complaints are registered as to transportation difficulties and it is
believed that a considerable betterment has
been accomplished. Deliveries are more
prompt and in consequence manufacturing is
being facilitated.
In a number of cases the car supply is reported adequate. The closing of schools,
churches, etc., on account of the epidemic, has
lessened passenger and street car traffic, and
there is very little travel for pleasure.
Mercantile lines.—Wholesale and jobbinghouses report very satisfactory business, with
some recessions since October 1, due to unseasonable weather. Booking in spring business
has been delayed in some instances by lack of
samples. Advances in prices have led to hesitancy in buying on the part of jobbers.
Business in the retail line is good, but here
also there is reported some let-up in buying
since October 1, due possibly to the prevalent
sickness.
In the dry-goods line considerable difficulty
is experienced in obtaining deliveries of staples
such as underwear, hosiery, etc. However,
certain lines of goods, especially ready-to-w^ear
garments, are easy to buy and deliveries are
more prompt than heretofore.




NOVEMBER 1,1918.

Money and investments.—The purchases of
fall and winter supplies of goods and the higher
prices paid for them have compelled the borrowing of larger amounts than usual. Banks have
been aided in taking care of this increased
demand by a reduction in loans to borrowers enaged in nonessential lines. The banks of the
is trie ts are well fortified with certificates of
indebtedness for payments to the fourth Liberty loan. The demand for money is strong
and loans are closely scrutinized.
Building.—Building continues at a low ebb,
and only in quarters whore the location of
new industrial plants has made it imperative
is there any activity.
In the Pittsburgh district it is reported that
plans for 15,000 workingmen's houses have been
approved to take care of the needs of the
workingmen in the ordnance plant on Neville
Island.

f

DISTRICT NO. 5—RICHMOND.

The fourth Liberty loan has held the center
of the stage, both in the minds and activities of
the people of this district. Coming at the time
of the marketing of our chief crops, cotton and
tobacco, the allotment of these bonds to the
district has naturalty been increased over the
requirements in other loans, and the expected
total is $280,000,000. The prevailing epidemic
of influenza has seriously interfered with public
gatherings and crippled activities in every
direction, including the force of almost every
bank, and returns have been slow, particularly
from country districts. Farmers do not appear
to have responded to the extent which has been
reasonably expected from them, considering
the greatly enhanced returns which they have
been reaping from their crops. Many banks
are not making tho response or putting forth
the efforts which might be reasonably expected
of them. The cities and towns are, however,
responding admirably and no effort, as we go to
press, is being spared to secure the full quota of
this district.
The aggregate yield of tobacco throughout
the district shows a considerable increase, and
prices have ranged from 30 to 40 cents per
pound. The average of 34J cents to date,
reported by one prominent tobacco market,
may be taken as a fair criterion. The gross
return is far beyond all reasonable expectations.
The yield of the cotton crop is rather below the
average, but 30 cents per pound, or more, again
brings the gross return up to unprecedented
figures. Manufacturers are probably running
to about 75 per cent of capacity, owing to

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

shortage in labor, and tho export of cotton is
being limited as heretofore by the scarcity of
foreign freight room which exists, notwithstanding the fact that the staple is greatly
needed abroad. One county in South Carolina
estimates the value of its cotton and tobacco
crops for the year at over $10,000,000, as compared with $4,000,000 in 1916. This increase
is largely in the value of its tobacco crop.
Labor difficulties, high wages, and resulting
inefficiency are prevalent. The scale of wages
being paid by the Government has had a
demoralizing effect and labor is correspondingly indifferent and inefficient. The difficulties of securing transportation and supplies
of raw material continue to be an important
factor.
Notwithstanding these hindrances, with the
exception of the building trade, allied industries and the real estate markets, there has been
great activity and widespread and unusual
prosperity everywhere. Bank deposits are
higher than in any period during the current
year and financial conditions are said to be the
best ever known.
Bank clearings and postal receipts continue
to reflect a large increase, the latter probably
due particularly to Government activities.
Much attention is being given, according to
reports, to the improvement and increase in
the stock of cattle and hogs, and in some
localities of sheep.
A note of warning is sounded from a conservative source. Some large merchants have
extensive, if not large, stocks of goods on hand,
and while book profits appear to have been
adequate, heavy taxes which they are required
to pay in cash are depleting liquid resources.
Should there be an early ending of the war, it is
likely to affect inventoiy values, which may
require adjustment on a more conservative
basis. It would be well for this view of conditions to receive the thoughtful consideration to
which it is entitled.
DISTRICT NO. 6 -ATLANTA.
October was largely given over to concentration of effort in financing the fourth Liberty
loan, with slight lessening of activities in commerce and industry. The loan campaign
moved slowly, due to uncertainty of cotton
prices and proposed peace parleys, but the
Sixth Federal Reserve District oversubscribed
its quota. However, business measures up to
prevailing conditions, the shortage of labor,
the epidemic of Spanish influenza, and the
cotton-holding movement all playing a part as
a slight disturbing element.




1131

Weather conditions have been favorable for
growing and harvesting of crops, which has
proceeded rapidly despite the shortage of
labor, but drought is interfering somewhat
with fall plowing.
The season's results show that while there
has been a decrease in some crops, this has
been offset largely by an increase in others,
with an aggregate result that the total value of
crops in the sixth district show considerable
gain. In Alabama alone the aggregate value
of crops show, approximately, an increase of
$100,000,000, or about 35 per cent increase in
the gross income of the Alabama farmer.
Gathering crops is about completed, with
cotton practically picked. Many cotton fields
are being picked over the second time, with
weather favorable for mati rity of the small top
crop indicated. There has Heen considerable
change in the sea island cotton crop, it being
of a much later maturity than upland cotton,
and the boll weevil has had ample time to work
destruction. Present indications favor a 40
per cent normal crop.
The cotton-holding movement is growing and
will increase in effectiveness now that the
fourth Liberty loan has been concluded. The
producers have sold enough of their crop to
satisfy crop indebtedness and appear in better
financial shape for a holding movement than in
former years. The mills are operating verymuch on a hand-to-mouth policy and the holding movement, it is felt, will be productive of
higher prices.
There is increased preparation for winter
wheat and oats and considerable planting of
red and crimson clover. The peanut crop,
which has grown to be quite a factor in the past
two or three years, is somewhat at a standstill,
as oil mills are crowded with cotton seed, and
offers for peanuts are below values.
Tennessee planted about 75 per cent of an
average tobacco crop and up to September 1
the average was not over 60 per cent, but the
favorable season and much moisture has caused
an increase in the outgrowth in the crop and
they are now housing a splendid ryield, being
fully 80 per cent of an average. The Florida
vegetable season is over and business is awaiting a movement of oranges and grapefruits.
Advanced prices are good and conditions in the
fruit sections should grow more favorable within
60 or 90 days. The crop is in splendid condition except in a few sections which have been
damaged by rains and severe storms.
There is continued increased interest in cattle
raising, sheep and hog breeding. In all the
States in the Sixth Federal Reserve District

1132

FEDERAL RESERVE BULLETIN.

large corporations are being formed and extensive tracts of lands leased or purchased for
grazing purposes. The majority of these corporations are financed by outside capital and
organized by experienced cattlemen, many of
them from the West and Southwest. The cutover pine lands and the "hill country'7 of this
section, well watered and partially timbered,
afford splendid ranges for cattle and sheep.
The distribution of stock in these corporations
is largely on the basis of transfer of capital
stock "for cattle, thereby interesting the cattlemen of the western country in the adaptability
and advantages of this section to profitable
investment.
The Alabama coal output showed a considerable decrease in September, and the spread of
the influenza, coupled with labor shortage,
caused the October reduction, leaving the outlook far from bright. In the Birmingham iron
and steel district there are practically no stocks
on hand and furnaces are shipping as fast as
iron is made. Coke remains a narid-to-mouth
affair with most foundries, and scrap is being
used in increased qi antities in lieu of pig iron.
Limber mills have orders sufficient to run
them for 60 to 90 days, but production is being
curtailed by lack of labor. A number of mills
have shut clown on account of labor conditions
and others are offering their timber and mills
for sale. A decrease in Government demands
for lumber is looked for, but hope is entertained
that this will be offset by railroad orders.
Naval-stores conditions have recovered considerably in the past month and have now
reached a point of profit to the operators.
There is an increasing demand with diminishing
supply and decreasing stocks, as labor is
extremely difficult to obtain in this particular
line. Turpentine has not increased proportionately with rosin.
Prices in apparel lines have dropped to some
extent but still remain considerably above
prices asked at any former season. Government regulation of prices of shoes has led the
purchasers to believe that regulation of other
rices will be forthcoming and there is a delayed
uying of fall and winter requirements. With
a decrease in reasonable profits and stable
prices there should be an early improvement in
pi rchases.
Perhaps at no time has the banking business
in the district shown so remarkable a record.
Reports show a large increase in deposits, with
increased clearings and very satisfactory collections. Crop moving is reqiiring a large
amount of currency, the outstanding Federal

E




NOVEMBER 1,1018.

reserve notes of the Sixth Federal Reserve District being $119,045,145, as of October 19.
Demands for loans are not heavy, due to curtailment by banks to essentials; and mterest
rates remain normal, 6 to 8 per cent.
DISTRICT NO. 7—CHICAGO.

Business throughout the Middle West, and
especially in the territory included in the Seventh Federal Reserve District, is exceedingly
active and satisfactory as to results. Here and
there are found spots which, because of local or
other conditions, have not fully adjusted themselves to war production to the extent of their
capacity. Taken as a whole, however, the
Chicago Federal Reserve District may be said
to be on a war-production basis.
There is evidence everywhere of greater activity and prosperity as the crop proceeds flow
into business channels. The increased business of manufacturing enterprises engaged on
war contracts is resulting in a larger and wider
distribution of the proceeds of Liberty loans in
the shape of wages and in payment for materials.
TREND IN INDIVIDUAL ECONOMY.

Careful inquiry, however, fails to reveal any
marked increase in the direction of individual
economy in buying among the wage-earning
class, such as has been in evidence among the
more well-to-do element. Those who nave
been accustomed to accumulate wealth out of
their incomes are manifesting conservatism
in personal expenditures, especially in the less
essential lines, such as house furnishings, pianos,
and ornaments, and this tendency toward prudence in buying is increasing.
The wage earners, especially in the munition
and manufacturing centers, appear to be spending their incomes freely, although at the same
time they are subscribing liberally for Liberty
bonds. It is the consensus of opinion among
those who come in contact with this element
that patriotic appeal and education are the
most effective means of developing greater
thrift in this direction. The increase in the
number of Liberty loan subscribers is the most
assuring evidence that the development of
thrift is progressing and spreading rapidly in
the Middle West.
FARMERS' MERCHANDISE PURCHASES LIBERAL
BUT PRUDENT.

The reports from the agricultural districts
indicate that while the farmer is buying mer-

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

chandise liberally, yet there is evidence of the
exercise of prudence in his purchases. It is
difficult to measure with any degree of accuracy
the extent of his prosperity, other than through
the increase in his individual deposits at the
local banks. His methods of bookkeeping are
too crude to embrace any system of cost accounting. He is, generally speaking, a Liberty
bond buyer, however, and is contributing to
the war by efforts to increase the volume of
marketable farm products, as is indicated by
the increase in wheat acreage seeded in Indiana,
Illinois, and in the increased production of livestock, especially hogs.
CROP CONDITIONS.

Crop conditions throughout the Middle West
are propitious. The weather has been favorable to fall plowing and seeding and the ground.
is in good condition. The quality of the corn
that is being harvested is good, and in Illinois
corn is said by producers to be the best in a
number of years, while the yield in this State is
above that of normal years. In Indiana, outside a strip in the northern part, the corn crop
is better than the average. Iowa has a good
corn crop in northern portions of the State, but
that in the southern part reflects the damage
caused in the early part of the growing season.
Wisconsin is showing up well in crop production and in plowing for next year's crop.
Michigan farmers were delayed in harvesting
by the cold weather. The corn crop in that
territory, while somewhat below the average of
former years, is better in quality'and larger in
quantity that than of last year. The Michigan
l&ean crop is below the average owing to dry
weather. The potato production in that State
is below last year's yield but will be a fair crop.
The barley and oat crops exceed the 10-year
a verge by 20 per cent, so that with an excellent
quality of grain and a large acreage of buckwheat and a better apple production than for
a number of years, Michigan's agricultural prosperity is assured.
Taking these conditions throughout the
district, with the exception of southern Iowa,
agricultural prosperity is sufficiently great to
stimulate increased activity in other lines in
support of the Government.
STRONG DEMAND FOR MONEY IN EVIDENCE.

Money continues in strong demand and
rates are firm at 6 per cent. The banking
position is reported satisfactory in view of the
war financing and the requirements for essen-




1133

tial business. Collections generally are good.
The borrowing at the banks has resulted in a
further increase in the loan items despite the
restrictions placed on nonessential credits.
This is traceable to Government financing.
Corroborative evidence of this condition is
found in the fact that a little less than one-third
of the loans and rediscounts of the Federal
Reserve Bank of Chicago is represented by
paper involving other than Government securities. Advices from the agricultural districts
indicate the country banks are in a position to
handle business satisfactorily, and many country banks report that if cars were available for
shipment of grain, their entire indebtedness
could be liquidated at once.
The Liberty loan has been anticipated by
the banks through tho purchase of Treasury
certificates of indebtedness. To the extent
that subscribers borrow at the banks to meet
payments as they fall due on Liberty bonds,
there will be reflected, of course, an expansion
in the loan items of the banks.
MERCHANDISING SHOWS INCREASE.

Merchandising in agricultural districts is
estimated from 10 to 40 per cent greater in
September than last year. Stocks of merchandise in the Middle West are reported generally larger than usual in the hands of retail
merchants, but offsetting this is a steady demand and the limitations on prompt deliveries
and supplies of materials and manufactures,
caused by the war requirements.
It is the consensus of opinion that merchants'
stocks are not excessively large under present
conditions. The merchants ail through the
Middle West as a rule are proceeding with
caution and conservatism in making commitments for the future, realizing the difficulty in
quickly reducing stocks and the hazard of
large stocks purchased at high prices should
peace bring a sharp decline in the fabric
market. The delays in obtaining merchandise,
however, have an offsetting value through
accumulating civilian requirements in steadying prices when peace comes and the war
embargoes are removed.
CLOTHING TRADE SOUND.

Merchants in all parts of the country are
providing in a normal way for their spring
(1919) requirements of high-grade clothing.
There has been a certain amount of speculation
in other classes of merchandise, according to
advices, but owing to high prices^ dealers have
not speculated in high-grade goods.

1134

FEDERAL RESERVE BULLETIN.

The advices from this class of merchants is
that the retail clothing business is on a healthy
basis now and the accumulating requirements
and present restrictions will keep it so until
after the war.
MOVEMENT OF LIVE STOCK HEAVY.

Live-stock production has been stimulated
by the high prices and the prospect for an
abundant crop of corn and pasturage. The
primary markets reflect a heavy run of. both
cattle and hogs in the depressing effect on the
price. The substantial decline in the market
price for live-stock, especially hogs, together
with the influenza epidemic, affected the
trade and caused a systematic decline in freshmeat prices, although the trade in provisions
is seasonable.
Receipts of live-stock at Chicago for the four
weeks ending October 12, 1918, compare with
a like period in 1917 as follows:
Cattle.
372,892
341,608

1918
1917

Calves.

Hogs.

41,490
43,171

462,060
262,044

Sheep.
699,389
404,514

There appears to be a larger number of hogs
preparing for the market earlier this year than
usual, and the indications point to a large run
for the coming season. Obviously this has a
tendency to intensify the demand for funds
at the banks. Certain heavy stock-growing
counties in southwestern Iowa are long on
cattle and hogs and short on corn, but this can
be easily supplied comparatively near by. It
is evident that the production forces of the
Middle West are being directed toward an
increase in the food supply. There is so much
merchantable new corn all through the Middle
West, however, that with recurring high prices
there is a possibility that the corn may be
marketed rather than fed, thus later curtailing
live-stock production.
WAR

INDUSTRIES

BOARD RULINGS
BUYING.

CHECKS

Restricted allotments by the War Industries
Board of raw material to agricultural-implement manufacturers is necessarily curtailing
the output of farm machinery. This and the
restriction on pleasure-automobile production
is expected to force greater economy in buying
all through the farming sections. The farmer
will be forced to repair and use his old implements to a considerable extent.




NOVEMBER 1,1918.

Shortage of farm help contributes to an
increase in the requirements of improved
implements. The allotment of material to
implement makers, however, is believed by
manufacturers sufficient to care for the imperative demand.
Naturally the lumber industry is considerably affected by the embargoes on shipments
for the less essential purposes and the further
restriction on building construction. The
movement of stocks of lumber through retail
yards in the Middle West is estimated at about
50 per cent of normal.
FOOD PRODUCTS IN DEMAND.

Grocers report active business in food products throughout the entire line and a tonnage
in the last month larger than a year ago.
They are experiencing no difficulty in selling
food products, but the trouble is to obtain
them. The question of price apparently is
not deterring the consumer in the Middle West
from buying.
MIDDLE WEST COAL SUPPLY AMPLE.

The coal situation is reassuring in this district. Producers report a larger supply of
Indiana and Illinois coal on hand in this territory than ever before at this time of the year.
Consequently they see little prospect of any
serious shortage this winter. The problem
now giving the Fuel Administration and the
coal operators most concern is, whether the
zone for Indiana and Illinois coal is sufficient
to absorb production during the next two
months and at the same time not decrease
production in other competing districts. The
inability of concerns relying on coal from West
Virginia, eastern Kentucky, and Pennsylvania
is forcing them to buy the better grades of
Indiana and Illinois coal.
Clearings in Chicago for the first 17 days of
October were $1,290,095,988, being $27,687,286,
or 2.1 per cent, greater than for the corresponding 17 days in October, 1917. Clearings
reported by 19 cities in the district outside of
Chicago amounted to $381,655,000 for the
first 15 days of October, 1918, as compared
with $298,818,100 for the first 15 days of October, 1917. Deposits in 12 central reserve city
member banks in Chicago were $897,000,000
at the close of business October 17, 1918, and
loans were $622,000,000. Deposits show an
increase of approximately $15,000,000 over
last month and loans a decrease of approximately $8,000,000.

NOVEMBER 1,1918.

-FEDERAL RESERVE BULLETIN.

DISTRICT NO. 8—ST. LOUIS.

The recent peace rumors have had little
effect on business in this district. Government work is being prosecuted with unslackened vigor, and marked activity continues in
all essential lines of industry.
Manufacturers of iron and steel products are
operating at capacity, and manufacturers of
shoes, clothing, etc., are also especially busy.
Wholesalers of dry goods report an active demand for all classes of merchandise. Some distributors are finding it difficult to fill orders on
account of the shortage of many of the staple
articles. There is very little speculation going
on. The spirit of conservatism seems to permeate all lines, and business men are moving
carefully.
The influenza epidemic, and the measures
taken to combat it, have had a disturbing effect
on certain branches of business in this district.
Theaters, schools, churches, and other meeting
places have been closed entirely, and some of
the large stores have been compelled to open
later and close earlier than usual. This has
especially handicapped retail trade, though
other lines have also been affected. Some
activities have suffered considerably on account
of the depletion of their working forces through
contraction of the disease.
The abundance of money in the rural districts, where crops are being marketed, and
the high wages paid to labor in the cities, give
promise of a large business this season.
The outstanding feature in financial circles
during the past month has been the successful
flotation oi the Fourth Liberty Loan. This
district oversubscribed its quota of §260,000,000, being the first one to do so.
The demand for money has continued active
in this district. The rediscounts of the Federal Reserve Bank of St. Louis have steadily
increased, until on October 19 it held 884,707,000 of paper discounted for member banks.
In the larger cities the bank rate to customers
remains firm at 6 per cent for practically all
classes of loans, and in the country districts it
is somewhat higher.
The commercial paper market has been exceedingly quiet, but now that the Liberty loan
campaign is over some revival is anticipated
among brokers. The commercial paper rate
continues at 6 per cent for all names and maturities.
Practically all of the winter wheat has been
sown in this district, and reports indicate a
larger acreage than last year. With few exceptions, the ground has had sufficient moist-




1135

ure and the seed has been put in under the best
conditions.
The present prospects of the corn crop in this
district are more promising than a month ago.
Rain has helped the late corn materially, and
it is said to be yielding better than expected.
In many sections the quality is reported to be
better than last year. The condition of the
corn in the seven States in this district was
estimated by the Government on October 1 to
be 66.7 per cent, which is 3 per cent better than
the estimate of September 1. The condition
of the corn in this district on October 1 was
estimated to yield 138,544,000 bushels, which
is 40,000,000 bushels below last year's crop,
but about equal to the average for the past
five years.
The oats crop continues to progress satisfactorily. The condition of oats in Indiana, Illinois, and Missouri was estimated by the Government on October 1 to be 93.3 per cent,
which is 2.7 per cent better than the estimate
of September 1 and 7 per cent better than the
average.
Reports indicate that only a fair crop of cotton will be picked in this district. The condition of the cotton in Arkansas, Mississippi,
Missouri, and Tennessee was estimated by the
Government on September 25 to be 58.5 per
cent, which is .7 per cent below the estimate of
August 25 and 9 per cent below the 10-year
average.
The condition of the tobacco in Kentucky and
Tennessee was estimated by the Government
on October 1 to be 84.5 per cent, which is 1 per
cent bettor than the 10-year average. The
condition of the tobacco in the two States
named was estimated to yield 422,333,000
pounds, which is 27,354,000 pounds more than
the estimate of September 1, but 86,077,000
pounds less than the estimate for last year and
4,364,000 pounds less than the average for the
past five years.
The report of the St. Louis National Stock
Yards for September shows substantial increases in the receipts and shipments of cattle,
horses, and mules, both in comparison with the
corresponding month last year and the previous month this year. The report also shows
perceptible increases in the receipts and shipments of hogs in comparison with the corresponding month last year, but a slight decrease
in comparison with August of this year.
Postal receipts during September in St.
Louis, Louisville, Memphis, and Little R-ock
all show substantial increases in comparison
with the same month last year. With the ex-

1136

FEDEEA.L RESERVE BULLETIN.

ception of St. Louis, the receipts in the cities
named during September also show increases
over August of this year.
Reports for September from leading cities in
this district show perceptible decreases in the
number of building permits issued and the estimated cost of construction, both in comparison
with the previous month and the corresponding month last year. Practically no building is
going on in this district except for Government
needs and the extension of essential factory
buildings.
DISTRICT NO. 9—MINNEAPOLIS.

War production is continually demanding
a larger share of attention from industrial concerns of the district, which during the month
has had the satisfaction of knowing that a
single firm was able to ship more heavy gun
carriages than all other private plants in the
United States together for the same period.
The same plant i,s producing a steadily increasing output of high-explosive shells, and is also
engaged in the manufacture of ship winches
and other miscellaneous material for the
Government.
St. Paul is making large contributions of
finished material for war work, some of which
is of particular importance at this season.
Stillwater has in successful operation the first
large plant in the district capable of turning
out forged blanks for 6-inch high-explosive
shells, and is also engaged in the production of
finished high-explosive shells and antisubmarine shells. In a number of the smaller
cities of the district local concerns have also
taken up war work and are steadily increasing
their deliveries to the Government of supplies
and material needed for war purposes. Although not a manufacturing district, the Ninth
District is providing a very substantial weekly
output of finished manufactured material, while
the steel mills and industries of Duluth are
contributing iron and steel supplies and ships,
the mines in northern Minnesota large quantities
of ore, and the farming country a large crop of
highly important and necessary foods tuffs.
The work of further organizing the industrial
resources of these States is being carefully and
systematically developed, and wherever concerns are found to have proper organization
and management and adequate manufacturing experience they are being brought in
touch with Government orders for such materials as they can best supply.
The present policy of the Government is
apparently to encourage the development of




NOVEMBER 1,1918.

existing manufacturing resources and speed up
the quantity of war material produced in
existing concerns. Considering the district as a
whole, and remembering that dairy products,
live stock, grain, and other foodstuffs are
quite as essential as manufactured products,
the total that can be classified as war production is very large, and at this season of the
year is putting back into circulation large disbursements of Government funds. With a
comparatively small manufacturing output,
this district has not been in a position, except
in the crop-moving period, to receive the benefit of disbursements similar to those made by
the Government in the more important manufacturing districts of the country. With the
present heavy demand upon the northwestern
grain supplies, the Government's expenditures
have, however, become important, and will
continue to be an important factor for the
remainder of the year. Considerable amounts
of wheat are being stored subject to Government order at terminal elevators, to be drawn
upon as future demands may necessitate.
Banking and business conditions remain
about the same. Deposits show the influence of seasonal liquidation, with a corresponding deduction in the outstanding obligations of banks scattered throughout the district. Rates are still firm, with no prospect of
material change. A satisfactory year and extremely favorable fall have produced excellent
conditions throughout the rural districts, where
trade is in satisfactory volume and the outlook promising. Very favorable weather has
permitted farmers to do a large amount of
fall work. There has, however, been a shortage in the rainfall and the territory, as a whole,
is in need of moisture. The late fall period has
been accompanied by very few rains, and the
ground throughout all of the grain-growing
territory is very dry. This will be a handicap
in the spring unless the deficiency of moisture
is made up by late rains or a heavy winter
snowfall.
DISTRICT NO. 10—KANSAS CITY.

in the Tenth District there is reported a
maximum production of food, munitions, and
supplies. The daily bookings of receipts
show an unprecedented volume of live stock
and grain in the markets. The output of
mines and factories and the volume of traffic
moving b}^ rail have exceeded all former
records.
Financial.—Bank clearings for the 17
clearing-house cities of the district totaled in

NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

September $1,464,771,000, an increase of 44
per cent over the clearings for the corresponding month in 1917. A survey shows purchases
well above the eighteen months' average,
indebtedness below the average and collections better than the average, with a low per
cent of business failures.
The demand for loans has continued strong
and rates firm as a result of the sale in this
district of an aggregate of §176.866,000 of
Treasury certificates, anticipatory of the fourth
Liberty loan, and the opening of the campaign
on September 28 for the sale of $260,000,000 of
fourth Liberty loan bonds. Seasonal demands
from the cattle industry have also opened up
heavily, and indications point to a continued
active demand.
Progress of the Liberty loan campaign has
been seriously impeded by the influenza
epidemic, but assurances irom committees
throughout the district lead to the belief that
the quota will nevertheless be subscribed.
Agriculture.—Weather conditions have been
favorable for farming operations and the
maturing of late crops. Early sown wheat has
come up well, although in some districts
moisture is needed. In the mountain States
thrashing was delayed by rains with some resultant damage by sprouting. Sugar beets were
two weeks late maturing, but with no injury* to
the crop. The cribbing of corn has started.
The potato croj) is good in the western section
and poor in sections hit by drought. The same
is reported of the apple crop.
Emb argo es effective in mid-Scp temb er
checked the heavy movement of grain and
have since operated to prevent congestion at
market centers, as well as to hold back a
reserve of wheat at home to provide against a
possible shortage next year. Shipments of
wheat are now secured by permits and since
the embargoes were established have fallen to
about 50 per cent of the amount of receipts in
corresponding weeks last year. It is estimated
that about 45 per cent of .the wheat is still in
farmers7 hands. Very little of the Colorado
and Wyoming crop has been moved as yet.
On October 5, elevators at the Missouri River
terminals held a total of 20,525,000 bushels of
wheat, 1,421,000 bushels of corn, and 4,835,000
bushels of oats. Interior elevators and mills
also held large stocks.
Domestic Hour trade continues quiet, but
in accordance with Government orders the
mills are being operated this autumn at about
80 per cent capacity, with a 30 per cent increase
of output over the same period last year.




1137

Live stock.—New world records were established in the marketing of live stock at the
six markets of this district in September.
Receipts of cattle were 41 per cent larger than
in September of last year, receipts of hogs 64
per cent larger, and receipts of sheep 24 per
cent larger. Kansas City won world honors
for the largest number of cattle ever received
at a market in one month—415,887 cattle and
50,862 calves in September. That city also
took high honors for the largest receipts of
cattle for one week and for one day. Receipts
for this fall indicate that the effort toward
increased production of meat is, to some extent,
successful. Proportionately fewer fat cattle
and prime hogs were on the markets. Except
at Omaha, where the average was 8 pounds
heavier, the hogs on all markets averaged
lighter than a year ago. Cattle prices generally
were high, fancy steers bringing the record price
of $18.40% Top hogs were around $18 and $19,
and best lambs sold at $15 to $16. A feature
of the trading was the large purchases of
cattle for feeding.
Packers made the most of the opportunity to
lay in beef. Their purchases of cattle were 43
per cent larger than in the same month last
year. They also purchased 63 per cent more
hogs and 123 per cent more sheep for slaughter.
Petroleum.—Production of crude oil is making slow progress in overtaking consumption,
September showing a slightly larger output
than August and 6 per cent less than September, 1917. By confining drilling operations to
proven fields, without waste of materials and
labor on misguided effort, operators are hoping
to comply with the demand for increased production. This plan is encouraged by the fact
that the Capital Issues Committee is withholding approval of speculative enterprises.
The fields of this district are aiding the production of gasoline for airplanes. As all crude
oil is not suitable for the manufacture of aviation gasoline, the western refiners arc producing
a high-grade gasoline and shipping it to eastern
refineries to be converted into a product available for airplanes.
Development work in September showed
1,136 completions and a new product of 46,153
barrels daily capacity. While these figures
show a decrease rather than an increase in
completions from August, satisfaction is found
in the fact that there is a substantial increase
in new work under way, which promises well
for the future.
Mining.—The Government's effort to increase production of coal is finding hearty

1138

FEDERAL RESERVE BULLETIN".

cooperation on the part of both operators and
operatives. While greatly handicapped by
shortage of labor, a substantial increase in the
output is reported, and it is now believed the
coal situation this winter will be less acute
than it was last winter.
Excellent weather assisted materially in both
the production and marketing of lead and zinc.
Lead-ore prices were absolutely steady at $100
er ton through September. Shipments of
>ad for the four-week period amounted to
5,895 tons, and the surplus at the end of the
month was 250 tons, as compared with 4,868
tons at the same time in 1917. The price of
blend ores for the month ranged from $50 to
$55 a ton for the major portion sold, while
first-grade ores sold at the allocated price of
$75 a ton. A smaller tonnage brought $65.
The average price of all grades of blend ores
for the month was $63.35, while the average
price of all calamite ores was $38.35. Shipments of blend ores amounted to 41,433 tons
for the four weeks and those of calamite to
1,600 tons. The surplus in the bins at the end
of the month was 19,000 tons, as compared
with 26,309 tons at the close of September,
1917.
Production of the common and precious
metals has reached the lowest point in 20
years, with a further reduction imminent.
The labor shortage developed very acutely in
the mining sections of Colorado. In the metal
mines an advance in wages of 50 cents per day
was granted, effective September 1.
Construction.—Although the demand for
buildings largely exceeds their construction,
no relief is expected until the end of the war,
as the Government's needs must first be considered. In September 751 permits were
issued in the cities of the district for buildings
estimated to cost $1,483,690—a decline of 43
per cent from September, 1917. These reports
show only private work of an essential character and do not include the enormous amount
of Government work at cantonments in the
district. Many applications for permission to
erect buildings are awaiting the decision of the
War Priority Board. Government demand for
lumber and building materials continues heavy,
and the civilian trade is dull.
Labor.—Industry is less affected this season
by labor troubles than earlier in the year.
Wage advances have been general. The few
disputes arising have been arbitrated. War
requirements, however, are making it increasingly difficult to obtain skilled labor, while
common labor is almost as scarce and the wage

E




NOVEMBER 1,1918.

is about equal to the former wage of the skilled
laborer. Government bureaus have helped
wonderfully in the distribution of labor to
essential industries, but there are many more
jobs to be filled than there are men to fill them.
There is a shortage of shovelers at the mines,
and no solution is offered except by the introduction of mechanical shoveling machines,
which are neither satisfactory nor economical.
Oil operators report a scarcity of experienced
well drillers and tool dressers. Organized
effort by oil men and ore producers to secure
exemption for their employees on industrial
grounds is meeting with little success, owing
to the desire on the part of the men to waive
exemption on this ground, as they prefer actual
military to industrial service.
Mercantile.—While the mercantile trade was
good up to late August, there has since been
greater activity in most lines. Wholesale dealers report that retailers are stocking up for the
holidays, filling in broken lines, and placing
orders for next spring. Department stores and
retailers are having good sales. Mail-order
houses are receiving and filling more orders
than ever. The greatest activity is shown in
the line of dry goods, shoes, and women's readyto-wear clothing. Drugs, groceries, and provisions are in strong demand. Despite the
lack of heavy flour and sugar sales—usually
their mainstay—grocers are doing a large
business. The food-conservation plan seems to
have been misconstrued; instead oi packing and
preserving at home, people are buying more
canned goods than ever before. An increase
in the demand for repairs is in harmony with
the Government's economy plea, the tendency
being to repair rather than buy new machinery
or implements. Manufacturing is decidedly
active, but both materials and labor are becoming scarcer and production is curtailed.
DISTRICT NO. II—DALLAS.
Unseasonably warm weather, accompanied
by the influenza epidemic, has had a very
serious effect on business in nearly all parts of
the district during the past 30 days, and trade
is generally inactive as a result.
Conservatism in all lines is still very pronounced. Outside of the developments above
noted, but little change has occurred in trade
conditions since a month ago. Wholesale dry
goods firms report that the volume of business
in September was unusually heavy. In fact,
some of the largest wholesalers advise that the
month's business was the greatest in their history. At the present writing there is a tern-

NOVEMBER 1,1918.

FEDEEAL EESEEVE BT7LLETHST.

porary lull, as with fall shipments out of the
way and winter buying not yet started on account of warm weather it is "between seasons"
with them. Cooler weather is needed to stimulate trade. The volume of orders with the
large mail-order houses also reflects the effect
of warm weather and the influenza epidemic,
and a decrease is reported over the same period
a month ago. In other wholesale lines, such as
groceries, hardware, and drugs, business is very
good, and the volume exceeds that of last year.
Collections in the wholesale trade are fair and
should greatly improve as the cotton and other
fall crops are marketed. Manufacturing is
active.
The Liberty loan campaign has overshadowed
ail other financial matters during the month,
and, in spite of peace rumors and the general
epidemic, subscriptions to the loan, at this
writing, are approximately 70 per cent of this
district's quotaof $126,000*,000. When the final
returns are received, the total should be materially increased. Many of the counties in the
drought-stricken sections have already raised
their quota.
Of the six series of Treasury certificates (not
including that of October 1) issued in anticipation of the fourth Liberty loan, of which this
district's allotment was $86,400,000, we have
subscribed $78,863,000, or a deficit of 14J per
cent of the total allotment.
The demand for funds is very heavy, and although at this season a general liquidation is
to be expected, the same has not taken place
up to this time. This is attributable to the
slow marketing of the cotton crop. As a result,
the loans and discounts of member banks have
decreased but slightly, and deposits have not
appreciably increased. Interest rates are firm,
and the majority of loans are being made at
prevailing rates of 6 to 8 per cent. This institution is encouraging member banks in every
possible way to discriminate between essential
and nonessential credits, and this counsel, according to our information, is being generally
followed. The demand on this bank for the
month ending October 15 has continued very
heavy, and our loans and discounts have increased during that period approximately
$11,000,000. In order to meet the same, we
found it necessary to rediscount with other
Federal Reserve banks.
Clearings at the principal cities of the district
show an increase of 31 per cent in September
over the same month of 1917.
Agricultural conditions continue to improve,
as the result of additional rainfall over a large




1139

area of the district, especially those counties of
central and west Texas, which have been heavy
sufferers from the drought. Our correspondents advise that an unusually large acreage of
wheat and oats will be sown. Prospects for a
top crop of cotton have been somewhat improved during the past 30 days, by rains in
north, northeast, and east Texas, as the moisture greatly revived the plant, permitting of the
maturity of blooms and stimulating the plant.
In a bulletin issued by the Texas representative of the United States Department of Agriculture on October 2, the condition of the Texas
crop is estimated at 44 per cent of normal,
against a condition at the same period last year,
of 43 per cent. Based on this estimate, Texas
will produce 2,820,000 equivalent 500-pound
bales.
The sweet-potato crop of east Texas is now
being marketed, and the yield promises to be
generally satisfactory. At Winnsboro, which
is one of the principal potato-producing centers,
production will be materially curtailed owing to
the scarcity of plants in the spring. Farmers
who were able to secure plants are selling to their
less fortunate neighbors, and as a result, only
three cars have moved up to the present
writing.
Building permits issued at the principal
cities of the district in September show an increase of 182 in number, and an increase of
$62,184 in valuation, or 11.4 per cent over the
same month of 1917. Building operations are
confined strictly to Government demands.
The extreme shortage of labor is preventing
the lumber mills from running over 50 per
cent of the time. The embargo placed by the
Government Railroad Administration against
the shipment of lumber to points east of the
Mississippi River or north of the Ohio River,
except on written order, has largely decreased
the shipments for the territory mentioned.
The restrictions placed upon building operations by the War Industries Board, whereby
no new buildings shall be started without a
permit from that board (except farm buildings costing not more than $1,000) and no
repairs to existing buildings which shall exceed
a cost of $2,500, are very materially reducing
the retail lumber trade. The price of lumber
remains steady at the Government maximum
list. The clay products industry and other
lines of building material are marking time
on account of the Government's building
regulations.
The live-stock industry in Arizona is in a
serious condition. Ranchmen, who are able

1140

FEDERAL RESERVE BULLETIN.

to do so, are shipping their herds to other sections for pasturage, and a large number of
cattle have been sent into Mexico. In Texas
and New Mexico, live-stock conditions are
somewhat improved, as rains during the past
month have relieved range conditions.
Post-office receipts at the principal cities of
the district for September show an increase of
$129,257, or 39.5 per cent over the same
month of 1917.
Labor conditions are about the same as
previously reported, except that there is perhaps a greater shortage in skilled labor for ail
work. The influenza epidemic has retarded
the activity of many concerns, and more especially the banking institutions.
Business conditions over the Eleventh District may be summarized as generally satisfactory. The present unsettled situation is
largely attributable to special factors already
mentioned, and the outlook is on the whole
encouraging.

NOVEMBER 1,1918.

A crop of rice estimated at 6,458,000 bushels
is now being harvested in California. This is
15 per cent of the country's total production.
The 1917 crop was 5,600,000 bushels. The
price fixed for the growers is $4.16 to $4.32
per 100 pounds, or $1.60 to $1.90 per bushel,
according to the quality.
The California walnut crop this year is estimated at 16,500 tons, as compared with
15,000 tons in 1917. Prices are 28 cents per
pound for the first grade, as compared with
about 20 cents in 1917 and 15-J cents in 1916.
The almond crop is estimated at 4,875 tons,
the largest ever produced. In 1917 the production was 3,800 tons.
Although the estimated production of apples
for the whole country is nearty 10 per cent
greater than last year, the crop in this district shows a reduction ranging from 4 per
cent in California to 20 per cent in Utah and
85 per cent in Idaho. Quality, however, is
better than usual and prices are from 15 to
25 per cent higher than last year. The folDISTRICT NO. 12—SAN FRANCISCO.
lowing figures show the estimated crop, in
In order to meet Government demands, boxes, on October 1, 1918, and the total probusiness in the industrial centers continues to duction last year:
be extremely active. War industries are continually enlarging their plants but are limited
1918
1917
by a shortage of labor and inability to secure
necessary materials. In the agricultural dis- Washington
: 12,039.000
13,860,000
!
3,380'. 000
3,520,000
tricts slow liquidation on grain crops is causing California
Oregon
;
1.830l000
2,139,000
Utah
453.000
552,000
;
inconvenience to farmers and bankers. The Idaho
:
390', 000
2,718,000
seeding of grain crops has begun in Idaho,
Washington, and Oregon. Wholesale and retail trade is reuorted good in most parts of
Carload shipments of fresh fruits, including
the district, with small stocks on hand. Col- cherries, apricots, peaches, plums, pears, and
lections are good.
grapes from California this year have been
Interest rates continue firm at 6 per cent heavier than in any previous year. Following
in industrial, and 7 per cent in agricultural are the figures on October 5, 1918, and on the
centers.
corresponding date for the past five years:
Bank clearings for 19 principal cities of 1918, 20,882; 1917, 16,759; 1916, 13,777;
the district in September amounted to 1915, 11,979; 1914, 12,719; 1913, 10,856.
$1,085,790,000, an increase of 28 per cent over
The damage to the California prune crop b}^
the corresponding month of 1917.
untimely rains during September was more
Building permits for the same 19 cities serious than indicated by early reports. Estiamounted to $5,188,000, an increase of 33 per mates of a normal crop of 150,000,000 pounds
cent over September, 1917. Seattle, Oakland, are now reduced to about 50,000,000 pounds.
Portland, and Tacoma showed the only in- All sizes from 30 to 90 to the pound are to be
creases, with 217, 188, 159, and 121 per cent, taken by the Government, leaving for civilian
respectively, due to extensions of industrial consumption not more than 15,000,000 pounds
plants for war work and the erection of houses of the larger and smaller sizes. Eighty per
for workers.
cent of the Oregon and Washington bumper
During August, according to R. G. Dun & crop, estimated at 50,000,000 pounds, will also
Co., there were only 88 commercial failures in be taken by the Government.
this district, with liabilities of $769,760, as
The rains in September also injured table,
compared with 145 failures, with liabilities of wine, and raisin grapes in California, but the
$1,641,107, for the corresponding month of extent of the damage has not yet been definitely
last year, which is a reduction of 53 per cent. determined. Earlier in the season a crop of




NOVEMBER 1,1918.

FEDERAL RESERVE BULLETIN.

raisins equal to the 1917 bumper crop of
163,000 tons was expected.
California's bean crop, now being harvested,
was estimated on October 1 at 8,350,000
bushels, consisting of 2,610,000 bushels of limas
and 5,740,000 bushels of all other varieties.
The 1917 production was 8,091,000 bushels.
The present crop is about 45 per cent of the
country's total estimated yield. Prices
received by growers vary from 6 cents per
pound for the black-eye variety to 11J cents
per pound for limas. It is interesting to note
that these prices are from 10 to 25 per cent
lower than last year.
Lumber mills of the Pacific northwest furnished 16,875,000 feet of finished aircraft stock
in September, as compared with 2,683,000
feet in September, 1917. The Government's
monthly requirements have been increased
from 10,000,000 feet to 30,000,000 feet. The
mills are facing a serious situation through
their inability to market the surplus side-cut
lumber remaining from the production of aircraft stock and large ship timbers. As a result
several smaller mills have shut down and others
are reducing their crews. The yards are congested with stocks and have no additional
storage space. It is asserted that this situation
has been greatly aggravated by the fact that




1141

the War Industries Board has allotted orders
for smaller timbers to other lumber-producing
sections.
Production of crude petroleum in California
during August was 8,712,860 barrels, a decrease
of 24,769 barrels from July. The output of
August, 1917, was 8,424,405 barrels. During
the month of August stored stocks decreased
from 25,632,823 to 25,464,970 barrels.
Reports from Alaska indicate that the output
of gold in that Territory will not exceed
§10,000,000 this year, as compared with
$17,241,713 in 1916. The decrease is due in
part to the scarcity of labor, the increased cost
of supplies, and the flooding of the AlaskaTreadwell mine last year.
The Shipping Board recently announced that
from August 3, 1917, to September 15, 1918,
the shipyards of the Pacific coast had delivered
137 vessels, with a cargo capacity of 1,011,160
dead-weight tons, out of a total of 356 vessels,
with a cargo capacity of 2,045,875 tons, which
were delivered to it by all shipyards of the
United States. Of vessels launched, but not
delivered, the Pacific coast yards also produced 134, with a cargo capacity of 610,900
tons, out of a total of 264 vessels with a total
tonnage capacity of 1,223,566 tons, for the
whole country.

1142

FEDERAL RESERVE BULLETIN.

NOTICE.
With the view of economizing space and the
labor of printing, it has been decided to publish
certain statistical tables in the BULLETIN only
at quarterly intervals and to condense other
tables. Accordingly, tables headed—
" Bills discounted by each Federal Reserve
Bank, distributed by rates of discount; also
average maturities and rates of bills discounted
by each bank during the month" (see p. 1024,
October BULLETIN);
" Acceptances bought in open market and
held by all Federal Reserve Banks on dates
specified, distributed by classes of accepting
institutions" (seep. 1025, October BULLETIN);
"Amounts of bills discounted and acceptances and warrants bought by each Federal
Reserve Bank, distributed by maturities" (see
p. 1026, October BULLETIN);
"Maturities of discounts, acceptances, and
municipal warrants held by each Federal
Reserve Bank" (see p. 1027, October BULLETIN);

"United States securities held by each
Federal Reserve Bank, distributed by maturities" (see p. 1029, October BULLETIN);
also the gold settlement fund analysis and
accompanying tables (see pp. 1019 and 1020,
October BULLETIN) have been omitted from
this issue. Of these tables "Bills discounted
by each Federal Reserve Bank, distributed
by rates of discount; also average maturities
and rates of bills discounted by each bank
during the month" will be printed in the
January BULLETIN; "Amounts of bills discounted and acceptances and warrants bought
by each Federal Reserve Bank, distributed by
maturities" in the February BULLETIN; and
the gold settlement, fund analysis and accompanying tables in the March BULLETIN, and
quarterly thereafter. Some rearrangement of
the material has also been made with the view
of bringing out more clearly the salient features
of the monthly statistics. It is hoped that
notwithstanding the substantial reduction in
the amount of matter effected no essential data
will be found missing.




NOVEMBER 1,19

IS.

DISCOUNT OPERATIONS OF THE FEDERAL
RESERVE BANKS.
During the month of September discount
operations of the Federal Reserve Banks aggregated $4,685,139,187, compared with $3,762,359,098 for August, $2,178,410,479 for
April, 1918, the month preceding the close of
the third Liberty loan, and $2,681,165,854 for
October, 1917, the month preceding the closing
of the second Liberty loan. Of the total bills
discounted during the month the share of war
paper, i. e., member banks' notes and customers' paper secured by United States war
obligations was 87.1 per cent, compared with
83.1 per cent the month before and 83.2 per
cent for April of the present year. About 61.8
per cent oi the total discounts and over 65 per
cent of the war paper discounted during the
month are shown for the New York Bank.
All the banks, except the Minneapolis Bank,
report considerable increases in discount operations for the month, as compared with
August, Boston reporting the largest relative
increase in both total discounts and discounts
of war paper.
Discounts of member banks' notes secured by
eligible paper aggregated $35,178,979, compared with $56,476,330 the month before, the
Chicago and Minneapolis banks reporting considerable liquidation of paper of this class.
Trade acceptances discounted by the Federal
Reserve Banks during the month totaled
$21,202,888, as against 113,568,349 for August.
Of the larger total $13,337,303, as against
$11,774,139 in August, represented transactions
in the domestic trade/ and $7,865,585, as
against $1,794,210 in August, transactions in
the foreign trade. Over 46 per cent of the
total discounted trade acceptances and nearly
94 per cent of the discounted foreign trade
acceptances are reported by the New York
Bank, while Cleveland leads all other banks in
the amount of discounted domestic trade acceptances. The above totals are exclusive of
$3,443,033 of foreign trade acceptances and
$801,753 of domestic trade acceptances bought
during the month in the open market by the
New York, Cleveland, and San Francisco banks.
Over 95 per cent of all the paper discounted
during the month was 15-day paper, i. e.?
maturing within 15 days from date of discount
with the Federal Reserve Bank. For the New
York Bank this percentage, because of the

NOVEMBER 1,1918.

relatively large amount of collateral notes
handled, runs as high as 99 per cent. All the
western banks report large decreases in the
amounts of 6-month paper discounted, the
total for the month being 15,704,756, or almost
one-third less than the unusually low total for
August.
Average maturities of the paper discounted
by all the banks, except those of St. Louis,
Minneapolis, and Kansas City, were shorter
than for the month before, the decrease of 2.32
days in the average maturity of all discounts
being due largely to the shorter average
maturity of the paper discounted by the New
York Bank. Average rates of discount on the
whole show slight declines since August, though
the three banks showing the longer average
maturities report also higher rates of discount.
In the case of Minneapolis and Kansas City the
higher average rates are due partly to the adoption by these banks of higher discount rates on
certain classes of paper during the month. The
higher average rate of discount shown by San
Francisc©, notwithstanding the very substantial decrease in the average maturity of the
paper discounted during the month, is due exclusively to the higher discount rates put in force
by the Federal Reserve Bank on August 29.
On the last Friday of the month the banks
held a total of $1,713,430,000 as against $1,428,195,000 on the last Friday in August. Of the
total discounts on hand the share of war paper
was 71.2 per cent, compared with 62.7 per cent
about the end of August and 70.8 per cent on
the corresponding date in April of the present
year. At the New York Bank this share was
over 83 per cent. Similar percentages obtain
at the Boston and Philadelphia Banks. Dis-




1143

FEDERAL RESERVE BULLETIN.

counted trade acceptances on hand totaled
$19,254,000, as against $15,487,000 the month
before. Of the larger total 83,737,523 were
foreign trade acceptances, all held by the New
York Bank. Agricultural paper on hand
totaled $35,440,000, compared with $38,293,000
on the last Friday in August, while live-stock
paper holdings aggregated $48,703,000, of
which over half was reported by the Kansas
City Bank.
The month witnessed 90 accessions to membership, the total membership at the close of
September being 8,543 banks. Slightly over
40 per cent of this number, or 3,464 member
banks, as against 3,671 for August, discounted
with their Federal Reserve Banks during the
month under review.
In the following exhibit are given the number
of member banks at the end of August and
September, also the number of discounting
banks during the two months.
Number of member Number of member
banks
banks in district.
accommodated.
Federal reserve bank.
Sept. 30. Aug. 31.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Pallas
San Francisco
Total

September.

August.

421
712
655
806
559
415
1,281
505
852
992
720
625

417
703
653
796
554
412
1,251
503
843
989
715
617

211
346
305
185
229
194
589
190
291
300
355
269

215
335
270
144
261
207
562
170
395
290
436
386

8,543

8,453

3,464

3,671

1144

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,

1918.

Total investment operations of each Federal Reserve Bank during the month of September, 1918 and 1917.

Bills
discounted
for member
banks.

Bills bought in open market.
i Bankers' ac- Trade aci ceptanccs. ceptances.

Municipal warrants.
City.

Total.

$229,342,264 ! $19,684,049
2,893,616,076 j 112,427,086 iS3,347,402
161,218,400
2,741,791
140,569,099
15,654,042
2 278,590
215,195,653
3,220,347
117,969,176
4,713,695
455,999,674
7,427,475
117,849,236
554,457
76,917,401
40,500
78,625,854
74,681,393
1,580,000
123,154,961
618,794
10,843,894

Total, September, 1918.
Total, September, 1917.

819,684,049
115,774,488
2,741,791
15,932,632
3,220,347
4,713,695
7,427,475
554,457
40,500

4,685,139,187 \ 178,887,336
548,164,104 | 104,162,500

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

183,132,122
109,046,466

4,244,786
4,883,966

Boston
New York
Philadelphia...
Cleveland
,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City....
Dallas
,
San Francisco..
Total, September, 1918.,
Total, September, 1917.




S50

!
!

50
.j

$35,000

861,000 j .

10,850 !

.|
35,000
.j 20,830,650

61,000 !

10,950

Total.

S5,133

S8,764

3,631
11,756

5,133
10,000

8,764
21,756

1,580,000
11,462,688

Total investment operations.

United States
I certificates of
indebtedness.

4 per
cent.

All

3,631

United States securities.
3£ per
cent.

I

Total.

i September,
!
1917.3

$249,026,363
3,081,248,564
167,232,191 I
160,066,781 !
218,416,000
123,787,635
1,096,000
3,010,850 !
466,437,999 I
2,000,000 '
120,403,693 :
170,000
77,127,901
235,000
78,860,854
270,000
76,531,393
212,000
134,829,649

S50
71,858,000
3,272,000
3,565,050

§71,858,000
3,272,000
3,565,000
1,000,000
3,000,000
2,000,000
170,000
235,000
270,000
212,000
85,582,000

September,
1918.

3

85,688,950 j 4,953,969,023
20,830,650 |

1 Includes S682,434 in the domestic trade.
2 Includes $119,319 in the domestic trade.
s Exclusive of purchases of United States-certificates of indebtedness.

;

$42,643,906
382,032,48a
25,000,483
27,590,006
53,156,900
9,642,351
57,965,950
25,349,894
4,452,325
28,260,858
9,440,775
12,527,045
678,062,97&

1145

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Average amount of earning assets held by each Federal Reserve Bank during September, 1918, earnings from each class of earning assets and annual rates of earnings on basis of September, 1918, returns.
Average balances for the month of the several classes of earning assets.
Bills discounted I
for members and \ Bills bought
Federal Reserve j in open market.
Banks.
Boston
New Y o r k . . .
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas..,
San Francisco.,

667,771
(525,301,962
100 833,201
92, 136,622 j
64, 221,151 |
63, 716,521 |
235 104,678 !
64, 680,012 j
69, 476,400 !
64, 675,490 !
49, 263,885 :
075,235 !

830,169,666
130,220,279
9,830,323
29,575,075
4,663,480
4,280,185
17,319,015
1,753,909
207,300
135,926
804,107
20,791,312

Total....

1,603,152,988 ;

249,750,577

Bills discounted
for members and
Federal
Reserve
Banks.

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

$281,471
2,044,609
363,644
331,658
238,932
223,795
833,953
228,258
266,282
263,187
198,681
353,297

Total...

Bills
bought
in open
market.

3105,
434,
34
102,
18,
14,
62,

5,627,767

385
875
467
691
342
678
S30
582
1,788
L657

859,195

United
States
securities.

Municipal warrants.

$5,121
50,751
9,483
11,523
6,147
4,207
16,686
4,592
2,986
19,186
9,140
10,101

149,923 I

Total.

273

§392,
2,530,
407,
446,
263,
242,
912,
239,
270,
282,
210,
438,

273

6,637,158

j
!
j
i
i
!
!
!
\
'

Municipal
warrants.

Total.

i
050,648

S67,959 .

8112,888,085
777,924,552
114,640,101
126,224,097
71,627,831
69,762,730
259,713,140
68,574,988
70,818,000
74,985,314
54,483,019
118,414,714

07,959 |

1,920,056,571

976,517
1;402,311
512,400

4, 743,200
2, 698.065
1,
7, 289', 447
141,067
2, 134,300
1, 173,898
10, 415,027
%548,167

67,085,047

Calculated annual rates of earnings from—

Earnings from—

Federal Reserve Bank.

United States j
securities.
j

Bills discounted
Bills
for members and bought
m open
Federal
Reserve market.
Banks.

United
States
securities.

Municipal warrants.

Total.

Per cent. Per cent. Per cent. Per cent. Per
4.25
:
4.28
3.04
3.97
4.06
2.75
4.38
4.25
2.90
4.32
.!
4.24
3.16
4.63
4.82
2.73
4.27
4.88 !
4.18
3.01
4.46
4.38
2,79
"I
4.32
4.68
2.64
4.69
4.87
3.20
4.96
5.20
2.29
4.90
4.22
2.51
4.62
4.37
2.67
4.27

4.19

2.73

4.S

cent.
4.23
3.95
4.32
4.30
4.48
4.24
4.28
4.27
4.64
4.5)
4.70
4.50
4.21

Bills discounted during the month of September, 1918, distributed by classes.
Customers' Member banks' collateral
paper senotes.
cured by
Liberty
Secured by
Trade acbonds or
Liberty bonds
United States
or United
Otherwise ceptances.
certificates of States certifi- secured.
indebtedcates of
indebtedness.

Federal Reserve Bank.

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

i $13,957,411
I 19,681,595
7,334,050

2,073.036
716/719
2,535,951
868,113
1,621,458
567,050
772,147
2,281,982
i

$202,286,223
2,632,741,590
128,688,408
105,430,433
196,504,254
83,795,425
324.088,050
90,094,550
45,070,335
56,657,023
61,890,485
96,146,167

§2,300,000

7,500
20,000
4,230,000
399,000
16,458,624
100,000
3,250,000
6,218,855
j 2,195,000
;

56,277,894 I 4,023,393,543 j 35,178,979

All other
discounts.

* $1,038,79.9 89,759,831
3 9,859,94^3 4 231,332,948
24,841,404
347,038
28,566,061
3,284,223
10,675,650
1,112,713
32,147,826
910,206
893,103 112,023,346
25,726,577
1,059,996
26,869,162
106,446
14,666,176
516,750
9,733,440
90,321
1,983,350 5 22,743.462
21,202,888

Total.

§229,342,264
2,893,616,076
161,218,400
140,509.099
215,195', 653
117,969,176
455,999.G74
117,849; 236
76,917,401
78,625,854
74,081,393
123,154,961

54.9,085,883 ! 4,685,139.187 i

Average Average
maturity j rato (per
in days, j cent).*

10.06 i
0.36
15.19
16.50 '
8.70 !
18.87 !I
17.10
18.86 !
34.41 I
24.46 !
21.66 !
23.05 i

4.22
4.06
4.0.6
4.23
4.45
4.23
4.22
4.27
4.68
4. 78
4.40
4.57

10.38 ;

6 4.24

1 Boston and New York calculated on a 365-day basis; all other Federal Reserve Banks on 300-day basis.
2 Includes 8496,967 in the foreign trade.
a Includes 87,368,618 in the foreign trade.
4
Includes 86,489,684 of bankers 7 acceptances.
»Includes 857,725 of bankers' acceptances.
e Average discount rato on all paper discounted works out at 4.21 per cent if calculated on a 360-day basis, and at 4.27 per cent if calculated on
a uniform 365-day basis.




1146

FEDERAL RESERVE BULLETIN.

NOVEMBEII 1, 1 9 1 8 .

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

Agricultural
paper.

Banks.

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

i Customers'
i paper se! cured by
| Liberty
Live-stock I bonds or
paper. j United
j States certificates of
| indebtedi ness.

Member banks' collateral notes.
Secured by
Liberty
Trade ac- All other
bonds or
ceptances. discounts.
United
Otherwise
States cer- secured.
tificates of
indebtedness.

3,488
3,246
7,083
7,833

9,975
24,403
6,859
4,938

355

37,955
495,486
59,198
45,150
41,949
44,694
161,035
48,740
21,741
27,803
29,527
48,898

35,440

48,703

158,265

1,062,176

2.1

2.9

9.2

1
415
342
67
4,205
2,911
5,437
412

Total..
Percent

1

545
513

62.0

2,097

14,896
107,182
19,626
30,135
12,855
26,158
37,183
25,172
25,539
10;495
11,173
29,585

39,593

19,254

349,999

2.3

1.1

20.4

697
15,659
599
3,651
1,864
764
1,906
1,265
91

20
605
354
28,091
2,847
6,310
1,366

Total.

86,840
677,362
107,830
84,979
67,672
76,184
241.662
77,181
67,202
73,804
56,008
96,706
1,713,430
100

Includes $3,737,523 in the foreign trade.

Acceptances bought in open market and held by each Federal Reserve Bank on Sept. SO, 1918, distributed by classes of accepting
institutions.
[In thousands of dollars, i. e., 000 omitted.]
NonNonMember member member
trust
State
banks.
companies. banks.
Boston
New York
Philadelphia
Cleveland .
Atlanta
Chicago
St Louis
Minneapolis - .
"Kansas City
Dallas
Totals:
Sept. 30,1918
Aug 31 1918
July 31 1918
June 29, 1918
Sept. 29, 1917
Sept 25 1916




.

. .

Foreign
bank
Private branches
banks.
and
agencies.

29,873
118,410
7,438
26,626
4,518
6,309
20 862
2,002
133
106
1,810
15,839

100
1,302

11

662

1,709

1,027

233,926
188.366
154', 614
173,698
131,997
40,309

2,859
1,717
1,129
1,992
14,987
22,636

2,479
8,264
7,302
459
2,193

27,551
19,167
18,082
21,478
21,708
10,795

13,999
8,450
8,975
12,315
2,286

1,446

181
423
425
770

6,107
17,398
131
2,181

247
12,365
360

25
18

711

Trade acceptances bought in
open market.
Total.
Domestic. Foreign.

Total.

Total
acceptances.

36,508
149,898
7 994
31,383
4,518
6 334
20 880
2 002
133
106
1,810
19,248

323
1,733

2,373

323
4,106

519

154

673

170

3,234

3,404

36,831
154,004
7,994
32,056
4,518
6,334
20,880
2,002
133
106
1,810
22,652

280,814
225,964
190,102
209,942

2,745
2,201
1,994

5,761
6,605
5,787
7,418

8,506
8,806
7,781
7,418
6,942
2 796

289,320
234,770
197,883
217,360
180,113
77,247

173,171
74,451

NOVEMBER 1,1918.

1147

FEDERAL RESERVE BULLETIN.

Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from July 1 to Sept. SO, 1918.
Rediscounted with or sold to Federal Reserve Bank o—
f
Rediscounted or sold by Federal Reserve Bank o—
f

Total.

Richmond: August
Chicago: August
St. Louis: July..
Minneapolis: August
Dallas:
July
August

55,000,000
2,499,000
I

7,500,000
5,000,000

5,000,000

2, 000,000

12,500,000
24,997,000

5,000,000
2,928,000

12,499,000

10,000,000
9,927,000
77,517,000

2

i Includes $1,352,000 bankers' acceptances.

Includes $1,351,000 bankers' acceptances.

3 Bankers' acceptances.

Number of banks and of other subscribers, also amounts subscribed to the seven issues of certificates of indebtedness preceding
the fourth Liberty loan, arranged according to Federal reserve districts.
National banks.
NumPer
ber
cent
sub- oftotal
scrib- in dising.
trict.

Federal reserve
bank.

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

381
609
601
729
379
315
1,122
461
744
852
i
525 :
i
531
i
!•
7,249 |

97.19
98.07
93.18
97.72
72.61
80.00
99.80
98.50
96.62
88.38
83.60
99.06

Federal reserve
bank.

§220,968,500
991,095,000
200,957,500
253,885,000
73,289,000
69,015,500
289,539,500
79.921.000
69; 877; 500
106,536,000
49,287,000
173,516,500

92.82 2,577,888,000

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

!

|
Number
subscribing.

NumPer
ber
cent
sub- oftotal
scrib- in dising.
trict.

Amount.

Individuals, corporations, etc.

Amount.

Trust companies.

State banks.

Per
Numcent
ber
sub- oftotal
scrib- in district.
ing.

Amount.

$130,767,500
15,188,500
49,243,000 j
671 I 80.45
18,582,500 i
365 ! 29.15
41,658,500 |
832 i 47.46
3,316 | 97.70 349,353.500 !
72,675; 500 !
1,944 | 89.71
52,796,000 |
2,273 i 78.27
56',755,000 j
2.451 i 78. 53
19.982,000 !
'661 | 60.31
87', 504.500 i
975 I 80.51
223 i 19.11
147 I

13,858 i 78.46

$82,000
44,149,000
886,000
703,000
304,000
379,500
3,782,000
179,000
4,886,500
2,490,000
12,056,500
6,258,000

726
1,169
959
1,775
813
1,154
5.281
2,801
3,017
3,361
1,252
1,582

922

76,155,500

23,890

1
53.65
95.82
90.99
88.08
40.77
53.50
96.30
90.56
82.12
80.61
66.59
85.98
79.81

13
143
33
37
11
17
175
15
26
54
358
40
922

§6,304,000
20,643,000
5,129,000
6,932,000
7,335,000

S43|""S7."i6'
194 i 83.98

20,529.000
4,877; 500

66 I -12.31

1,994,500

9,210,000 ; 1,550 | 62.85

73,744.000

202

88.99

29,310,000

58

69.04

11,085,000 i

81.71

37,741,000 j .

Amount.

,152,500
1,989,000
(,020,000
), 569,000
' 983,500
: , 857,000
1,204,000
», 963,000
',560,000
i, 866,000
1,320,000
>, 020,000
4,594,504,000

Amount.

108 15.54
144
80.90
9 | 100.00
176 I 86.47
10
43.48

90.11 S153,798,000
98.47 494,334,500
87.44
93,859.000
86.14 129,806,000
29.95
18.473.000
70.00
'803; 500

Total of seven issues preceding the fourth loan.

13
143
33
37
11
17
175
15
26
54
358
40

NumPer
ber
cent
sub- oftotal
scrib- in dising.
trict.

Amount.

237
193
202
199
59
7

897,506,500 | 1,233 i 80.48

Number
of indiNumber
Per
viduals,
of banks cent of
corporasubtotal in
scribing. district. tions, etc.,
subscribing.

Other banks.

Total of six issues preceding the third loan.

Per
Number
of banks cent of
total in
subscribing. district.

Number
of individuals,
corporations, etc.
subscribing.

613
1,040
896
1,743
861
1,182
4.541
2,376
1,647
2,956

57.77
84.63
75.17
96.14 i
40.52 |
S2.43 !
82.82
76.07
44.83
72.53

12
170
148
49
8
14
189
18
164
502

1,392

75.65 I

228

Amount.

$214,417,000
1,255,308,000
196,500,000
238,033,500
75,829,500
79,573,000
325,355,000
133,584,500
89,350,000
128,524,500
90,925,000
172,790,500
3,000,190,500

NOTE.—Figures for State banks, trust companies, and other banks arc only approximately correct, since in some States no distinction is
made between the several, classes of banks operating under State laws.




1148

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
and liabilities of each Federal Reserve Batik and of the Federal Reserve system at close of business on
Sept. 27 to Oct. 25, 1918.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]
•Boston.

Gold in vault and in transit:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25
Gold settlement fund, Federal
Reserve Board:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25
Gold with foreign agencies:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25
Gold with Federal Reserve
agents:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25
Gold redemption fund:
Sept. 27
Oct.4
Oct. JO
Oct. 18
Oct.25
Total gold reserves:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25
Legal tender notes, silver, etc.:
Sept. 27
Oct.4
Oct.10
Oct.18
Oct.25...
Total cash reserves:
Sept. 27
6ct.4
Oct.10
Oct.18
Oct.25
Bills discounted:
Secured by Government
war obligations—
S'ept.27
Oct.4
Oct.10
Oct.18
Oct.25
All other—
Sept.27
Oct.4
Oct.10
Oct.18
Oct.25.
Bills bought in open market:
Sept.27
Oct.4
Oct.10
Oct.18
Oct.25
United States Government
long-term securities:
Sept.27
Oct.4
Oct.10
Oct.18
Oct.25




|
i 3,630
: 3,756
1 2,978
! 3,463
! 3,890
j
!
i 67,241
47,239
! 51,714
i 47,600
j 62,681

Now
York.

Phila- I Clevo- Richdelphia.l land. mond.

273,296
274,210
274,399
275,318
275,428

266
157
146
153
215

27,862
29,792
30', 065
35,180
29,287

57,655 70,877 28,088
66,113 46,167 29,263
63,160 37,543 32,374
69,171 39,258 29,668
46,386 51,380 31,895

14,760
79,002
72,448
41,186
24,297

408

2,011
2,011
2,011
2,011
2,011

58,925
68,460
68,267
68,137
67,971

286,671
285,627
285,627
285,627
285,627

5,017
5,265
5,445
5,575
5,755

14,893
15,000
14,821
24,824
24,841

5,500
5,500
6,000
6,455
6,500

135,221
125,128
128,812
125,183
140,705

591,631
655,850
649,306
628,966
612,204

174,037
181,629
j178,126
186,435
172,698

2,589
2,585
2,634
2,745

6,198
6,232
6.210
6,239
6,239

Atlanta.

Chicago.

6,733 26 109
6,794 26 032
6,948 25 678
7.054 25 716
6,930 25, 588
17,042
5,828
11,345
6,398
9,788

St.
MinneLouis. apolis.

Total.

1,067
2,151
2.219
2,281
2,219

8.179
8; 225
8,199
8,332
8,262

216
193
135
214
220

7,097
6,065
5,996
8,173
8,074

9,567
9,648
9,949
10,037
10,327

370,220
373,255
372.922
382;160
376', 679

72,022 16,812
45,725 16,233
66,595 10.713
62,466 20', 750
69,503 20,801

22,804
25,064
36,552
37.948
32', 362

27,783
21,303
24.324
31,768
37,252

4,392
6,978
4; 755
5,799
7,822

37,843
30,750
37; 197
24,401
21,509

437,319
419,665
448,720
416,413
415,676

525
525
525
525
525

204
204
204
204
204

175
175
175
175
175

816
816
816
816
816

233
233
233
233

233
233
233
233
233

'110,208 153,479
109,451 1141,479
i 108,412 1148,386
1110,248 143.387
j119,189 149J324

47,293
48,967
50.967
60,967
60,968

36,340
42,740
45,844
45,844
45,844

206, 111
224,057
200,880
206,768
193,672

56,615
51,615
44,992
44,992
48,992

29,378
31,378
31,232
41,232
48,232

57,489
57,489
52,322
47,322
47,322

24,286
25,286
25,215
24,215
24,215

614
538
437
301
201

3,259
3.447
3^818
3,904
4,116

5,577
5,881
6,089
6,253
10,097

2,820
2,809
2,804
2,778
3,165

2,900
3,010
3,061
3,140
3,210

1,247
1,241
1,237
1,234
1,261

2,146
2,152
2,167
2,166
2,159

-253,974 82,397
|218,110 85,204
i217,164 90,192
218,795 97,379
230,846 99,507

63.549
58', 984
68,130
63,375
66,853

310,635
302,511
300,058
302,019
299,676

77,547
73,041
60,961
71,034
75,410

63,494
67,910
79,277
90,885
92,299

628
671
677
665

183
156
156
170
241

1,272
1,050
1,031
1,117
1,300

705
780
1,614
1,788
1,828

64
59
60
73
78

142
203
191
155
126

549
502
671
827
894

199
198
241
138
227

51,363
51,937
52,122
52,372
53,037

408
408
408
408
408

43,931
44;981
44,022
43,508
43,516 •

1,231
147
645
445
330

791
460 i
508
771
745

310
335
323
403
428

291
291
291
291
291 I

204
204
204
204
204

321 I
321 I
321 !
321
321

5,829
5,829
5,829
5,829
5,829

94,936 1,161,731
94,936 1,181,485
94,856 1,157,000
94,782 1.173,521
93,642 1,184,998
510
210
241
315
315

45,714
45,200
46,765
57,390
61,950

87,026 38,125 143,177 2,020,813
80,517 40,685 135,865 2,025,434
78,309 38,337 142,564 2,031,236
80,829 40,557 129,856 2; 035,313
86,346 42,474 126,114 2,045.132

137,810
127,713
1131,446
127,928
143,694

635,562
700,831
693,328
672,474
655,720

! 174,828 254,284 83,025
1182,089 ! 218 445 85,832
1178,634 ; 217,487 90,863
1187,206 1219,198 98,056
[173,443 231,274 100,172

63,732
59,140
68,286
63,545
67,094

311,907
303,561
301,0S9
303,136
300,976

7S,252
73,821
62,575
72,822
77,238

63,558
67,969
79,337
90,958
92,377

87,168
80,720
78,500
80,984
86,472

38,674
41,187
39,008
41,384
43,368

143,376
136,063
142,805
129,994
126,341

2,072,176
2,077,371
2,083,358
2,087,685
2,098,169

71,246
76,516
75,205
67,306
77,591

564,288
546,522
589,817
547.420
478,068

86,718
88,904
90,362
91,648
; 78,354

50,597
54,396
55,686
59,054
61,128

48,751
52,414
49,945
51,948
44,710

45,133
49,522
47,644
52,365
45,531

169,044
187,576
193,575
188,736
152,405

50,293
54,164
52,128
54,536
44,283

25,262
23,268
22,572
20,704
10,878

28,344
29,647
32,971
37,320
33,762

30,815
27,703
30,008
29,009
15,672

51,042
61,155
64,470
62,711
52,035

1,221,533
1,251,787
1,304,383
1,262,757
1,092,417

15,594
13,139
11,830
i 11,079
11,653

113,074
99,157
106,391
96,543
104,749

21,112
19,718
18,477
14,739
12,992

34,382
30,136
28,807
24,755
19,075

18,921
18,7,02
17,373
15,776
16,910

31,051
30,104
29,579
30,188
31,178

72,618
66,974
59,144
64,015
84,967

26,888
27,808
28,036
27,-365
28,531

41,940 45,460
34,122 47,658
34,309 48,599
3,0,792 ! 41,814
27,616 I 47,084

25,193
25,155
26,947
27,658
30,005

45,664
41,746
40,594
41,075
38,987

491,897
454,419
450,086
425,799
453,747

35,842
46,968
53,825
59,744
55,880

155,575
112,506
118,702
127,040
142,156

7,976
21,754
24,883
26,082
30,915

32,016
52,602
53,598
50,229
57,458

4,586
4,866
5,020
6,320
7,936

6,104
7,648
8,749
9,874
10,533

20,272
34,047
37,063
37,295
37,583

2,000
4,233
4,454
4,866
4,643

133
115
1,070
3,116
3,691

136
270
1,547
5,027
6,576

1,300
1,910
1,925
1,700
2,400

22,451
23,898
27,784
32,843
38,852

288,391
310,817
338,620
370,136
398,623

1,410
1,406
1,408
1,403
1,401

1,348
1,348
1,348
1,348
1,348

.,291
.,090
,090
,089

1,233
1,234
1,234
1,234
1,234

631
581
506
510
520

4,519
4,519
4,509
4,509
4,509

1,153
1,153
1,153
1,153
1,153

116
116
116
116
127

8,867
8,867
8,867
8,867

3,977
3,977
3,977
3,977
4,005

3,461
3,461
3,469
3,461
3,461

28,545
28,289
28,214
28,205
28,251

538:
537 !
537
538
537 :

1149

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on
Sept. 27 to Oct. 25,
1918—Continued.
HE S OU R CE S—Continued.
[In thousands of dollars; i. e., 000 omitted.]
I linn e-! Kansas!
apolis.! City, j

Boston.
United States. Government
short-terra securities:
Sept.27
Oct. 4
Oct.10
Oct. 18
Oct.25
Ail other earning assets:
Sept.27....'.
Oct. 4

1,416
2,416
2.416
2*416
2,416

974
.,030
982
938
,399

Oct.10
Oct. 18
Oct. 25
Total earning assets:
Sept. 27
1.124,636 ; 860, 446 121,411 122,040 I 75,001 \ 84,981 ;271,565 i 81.655
Oct. 4
|l39,576 ! 785, 051 1133,001 143,007 78,726 89,907 298,228 j 89)782
.,594 1139.391 .150,403 75,0S2 88,530 :i.301,403 I 89,129
Oct. 10
1143,813 845,
!2,3S7 !138)0o9 1152,769 76,788 94)983 302,667 91,253
Oct. 18
141,083 802,
17,343 145.791 1149,031 72,075 89,777 ',322,576 81,931
Oct. 25
148,077 937,
Uncollectcd items (deduct from.
gross deposits:)
' Sept.27
! 40,973 155,649 71,399 56,364 !| 45,540 32,643 I 73.153 50,483
Oct. 4
58,506
187,872 64,357 54,803 50,007 j 81,593 I 78)081 58,803
162,449 80,434 55,659 51,229 I 37,023 j 80.242 74,397
Oct. 10
54,396
19S,583 73,307 57,731 53,890 : 41.187 '• 92)943
•
70.9«5
Oct. 18
! 68,223
192,881 86,307 77,218 61,400 j 46)355 : 97,526 69)875
Oct. 25
i 59 213
5 per cent redemption fund i
i
against Federal Reserve bank
notes:
i
62
22
47
305 :
200
Sept. 27
34
1,024
50
130
22
57
306 |
1,174
200
Oct.4
34
SO
180
52
70
355 !
1,374
200
Oct. 10
!
71
50
240
116
1,360
76
456 i
200
Oct. 18
71
50
1,366
137
76
554 |
200 I 210
Oct. 25
121
75 i
All other resources:
569
G20
789
565
2,000 1,643
1,300 !
Sept.27
1,052
809
704
2,233 1,933
1,333 i
776
757
Oct. 4
837
831
688
2,475 1,987
1,415 i
Oct.10
|
945
733
982
847
612
2,693
1,422 I
Oct.18
897
1. 824
811
805
836
882
2, 862 l) 945
1)485 |
Oct. 25
1,132
893 2,'104
Total resources:
Sept. 27
1304,505 1. 654,681 369.481 433,325 1204,536 ! 182,192 1608.230 1210,977
O ct. 4
'326,660 jl' 677,161 384) 580 420)761 1215.372 .181)506 ! ; 509 223.132
Oct. 10
!330, 671 i 1 705,220 400. 646 424,462 ;2i8)206 !J94,740 :684,504 :22(V,841
Oct. 18
i338. 202 ;1 677,503 HOODOO 430,749 j220,589 ,200,638 |700, 624 1235,788
Oct. 25
'352, 237 \1 790.]72 1107,686 !"•?>'. 2f;() '23*VL2() '20-i, iyS •23.117 •23()'.O63

Capital paid in:
S e p t . 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25

86,580
6,580
! 6,580
! 6,580
| 6,579

820,184
20,184
20,184
20, 217
20,220

Surplus:
!
640
Sept.27
|
75
649
Oct.4
!
75
649
Oct.10
i
75
649
Oct. 18
1
75
649
Oct. 25
!
75
Government deposits:
I
24,645
Sept.27
1 22,388
30,453
2!.,028
Oct. 4 . . . .
42,240
28,319
Oct.10
29,627
17,07.1
Oct. 18
8,523
13,297
Oct. 25
Due to members—reserve account:
666,021
92,044
Sept.27
638,931
100,415
Oct. 4
91,828 i 641,429
Oct.10
99,545 | 623,262
Oct. 18
115,058 I 691,561
Oct. 25.1
Collection items:
32,062 ! 119,441
Sept.27
41,711 I 141.137
Oct. 4
44,311 | 137,858
Oct.10
54,117 ! 135.138
Oct. 18
59,846 i 201,277
Oct. 25




S7,353
7,362
7.302
7)302
7,391

|
.
!
\
!

SS,7S5
8,805
8,808
8)808
8,868

i

1,906
S3, 906 P3, 143
1,959
4)00.1 „ 3,.149
149 : 10',
4,010 ' 3)
!
031
4,013 3,160 ii'
4,018 3,162 i 11012

116
110
116
110
116

210
216
216
2.1.(5
216

40
40
40
40
40

I 1,344
! 1,083
| - '" !
1,111
| 1,101
| 1,035 !

Fridays,

cisco. i

1,152
162
50,098
259
1,672
56,514
1,672
1, 259
66,193
1,172 | 1, 302
67,738
1,107 ! 20, 802 ; 322,060

31 i
38 J
90 ;
130 !
:

i 84,152
j 87,525
I 93,095
I 94,129
97)384

i 62,437
I 60,417
i 64.529
! 63)516
53,189

17,884 54,521
23,494 47,421
19.581
32)176 56* 571
27,817 70,744

17,328
18,720
20,011
22,396
27,099

33,511
30,389
*1,884
35.525
4.0) 4S8

649,448
704.045
723)430
803,517
856,923

412
412
431
431
481

144
144
160
160
182

97
100
140
171
172

2,447
2,679
3,177
3,425
3,692

186:
945
197 i 9(54
207 ! ! 969
1,040
163
231 I 1,078

1,635
1,393
847
1,051

1,254
1,326
1,406
1,592
2,144

12,858
13,262
13,485
13,757
16, 879

120,218
1121.861
|12u)l55
I.128.507
!l24)825

.302.049
1299)435
1313,901
:
308. 804
1322'.782

4,817,495
4,890,386
5,011,134
5,063, 216
5,270.785

i 83,732 I S2.S96 S3,600 S3.104 S4,523
3) 108 | 4,524
| 3,734 ! 2,897 i 3:600
3)734 | 2 , 8 9 8 , 3'. GOO i 3,108
4,527
I 3,734 ! 2,899 ' 3)611 I 3,115 4,527
| 3,75-i I 2,90i i 3,609 ! 3,115 4) 531
i
i
!
38 i
38 !!
!
38
,
!
38 j
38 !
i

$78,802
78,903
78,956
79,057
79,190

14,020
22,5J 2
24,924
19,'533
2,308

12,370 ! 22,513
! 22,586 \ 8,103
; 24,847 I 6.295 7,168 j 36,106
! 27,030 i 7)372 10,14(5 i 14,435
I 21.007 ! 8,622 j 15,704 i 16,181
j 5,050 | 13,024 2,284 j 6,546

98,008
89,448
97,229
81, 595
92,378

.109,992
115,672
108,139
114,844
.140,471

46,436
55,679
55,287
70,971
85,243

59,982
37,898
37,222
43,530
52,594

68,425
j 58,651
i 59,049
55,666
43,711

102
202
188
197
24

50 i
50 :
88 |
88 !
88 ;

150,103
150.361
'158', 202
il79'.()")l
ls.GO2J:

1227,198
1217,042
228,520
233,155
256,159

9,560 14,587 ! 11,433 10.338
10,870 4,991 i 13,382 9) 064
7.514
14) 563 9.673 i 19,441
11,647
8', 084 I 8,741
11,6<;S
10,919 3,477 ; 8,704
5,098

123,811 " 2,080,560
1131,557 , 2,102,028
137,666 i 2,187)684
i141,522 : 2.154,832
! 153,637 • 2) 295', 122

19.080
10) 643
25, 232
li:953
1 l) 612

I70,988

1,134
1,134
1,134
1,134
1,134
191,623
197,359
230.889
179)868
78) 218

827 39.284 '202,039
561 38) 368 '202,678
999 38,399 j214,326
040 | 36,048 |212,239
807 I 43,175 230) 232

j
i
I
i
I

74.137
74,499
76,652
96,408

1,535,490
1,496,815
1,508,334
1,506,727
1,683,499

198 ! 27,720
106 23,697
041 I 29,003
528 I 28,077
094 I 36,071

• 43,011 j 9,722 • 29,070 11,006 20,439
!
i 46,042 i 15,948 ! 31,537 11,185 17,297
!
1 47,178 | 12,030 ! 30,719 12,905 16,455
i 54,927 ! 22,109 ! 34,779 12,808 19,807
. ,
i 45,017 ; - - ~ • - i A45,855 14,366 28,015
18,215 ! - o.-.r

485,059
512,227
514,110
585,090
702,107

j
!
i
i

50,972
48,990
52,101
63,293
71,514

52,234
53,719
50,408
52,976
58,651

i 44,971 > 75,658 34,424
! 43,297 , 58,625 32.964
! 47,175 : 61,290 34,613
'
33,782
" 57,712 ' 68,032
!
;
i 50,744 ! 70,317 35,097

1150

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays,
Sept. 27 to Oct. 25, 1918—Continued.
LIABILITIES-Continued.
[In thousands of dollars; i. e., 000 omitted.]
! San
St.
Minne- Kansas
I FranLouis. apolis. City. Dallas. I Cisco.

Chicago.
Other deposits, including for- j
eign government credits:
I
Sept.27
|
Oct.4
i
Oct.10
1
Oct.18
!
Oct. 25
i
Total gross deposits:
|
Sept .27
'146,494
Oct. 4
163,154
Oct. 10
|164,468
Oct. 18
!l70,733
Oct. 25
188,201
Federal Reserve notes in actual
circulation:
Sept. 27
148,053
Oct. 4
|152,981
Oct. 10
1155,320
Oct. 18
1155,629
Oct. 25
|151,792
Federal Reserve bank notes in
circulation, net liability:
684
Sept.27
,
Oct. 4
1,120
Oct.10
i 1,408
~ ' 18.
2,260
Oct. *"
2,306
Oct.25
All other liabilities:
2,619
Sept. 27
2,756
Oct. 4
2,830
Oct.10
2,925
Oct.18
3,194
Oct.25
Total liabilities:
Sept. 27
304,505
Oct.4
Oct. 10
330,671
Oct. 18
338,202
Oct. 25
352,237

2,206
1,642
1,873
2,058
2,191

21
17
24
124
41

79,408
69,260
77,581
79,859
81,605

114 158,464 jl92,855
657 1167,639 178,496

412
307
192
470
357

277,550
289,416
282,735
293,771
310,483

,105,217
110,938
112,341
120,020
114,944

69,301
64,253
68,902
88,029
72,477

116,161
1103,544
111,450
111,552
1130,878
!

Total.

162
165
59
35

2,590
2,537
2,920
3,126
2,780

104,385
103,907
108,256
112,634
117,001

55,768
53,375
55,197
58,347
56,196

113,097
104,614
119,106
111,538
125,591

2,316,557
2,310,308
2,361,586
2,384,319
2,580,825

97,350
j 99,543
! 103,135
107,525
1111,045

57,191
61,150
62,373
62,512
61,942

180,381
186,112
185,961
188,161
187,706

2,349,326
2,431,004
2,478,378
2,502,48
2,507,912

|

199,772
,205,191
1211,234
1216,074
214,793

228,082
228,809
237,403
235,596
244,571

105,499
1113,258
116,401
118,797
118,810

97,941
107,013
111, 640
115,145
116,582

358,816
369,597
375,749
379,965
385,037

100,170
106,462
107,506
108,382
107,164

76,421
81,571
84,272
85,843
86,531

11,777 I 2,109
13,342 ! 2,420
18,119 ! 2,571
18,364 2,953
19,158 3,303

1,083
2,039
3,069
3,995
4,359

151
305
498
648
768

615
920
1,14S
1,155
1,400

6,060
6,349
9,642
10,167
10,555

436
510
1,706
2,025
2,513

73
242
747
807
855

7,927
8,108
7,995
8,036
8,067

2,969
2,992
3,174
3,183
3,163

1,935
1,958
1,954
2,073
2,322

35,819
40,305
52,031
55,666
58,859

13,307
14,012
14,309
14,690
15,635

1,783
1,968
2,039
2,118
2,270

2,520
2,612
2,790
2,893
3,031

1,646
1,730
1,769
1,825
1,889

1,045
1,124
1,1S8
1,279
1,349

4,682
4,972
5,166
5,474
5,784

1,422
1,488
1,554
1,627
1,688

1,374
1,360
1,405
1,435
1,422

2,160
2,247
2,340
2,431
2,562

1,186
1,236
1,303
1,350
1,409

2,113
2,227
2,353
2,505
2,632

35,857
37,732
39,046
40,552
42,865

1,654,681
1,677,161
1,705,220
1,677,503
1,790,172

369,481
384,580
400,646
400,606
407,686

433,325
420,761
424,462
430,749
459,256

182,192
181,506
194,746
200,638
204,138

658,230
681,509
1,684,504
|700,624
723,117

150,103
150,361
1158,262
179,051
164,224

227,198
217,042
228,520
'233,155
J256,159

120,218
121,861
125,155
128,507
124,825

302,049
299,435
313,901
308,804
322,782

4,817,495
4,899,386
5,011,134
5,063,216
5,270,785

v,.v 3,650
719,317
727,384
728,859
721,939

1

204,536
215,372
218,206
229,589
236,126

210,977
223,132
226,841
235,788
230,063

Overdraft.

Maturities of bills discounted and bought, United States Government short term securities and municipal warrants.
Within
15 days.
Bills discounted:
Sept.27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Bills bought:
Sept.27
Oct.4
Oct. 10
Oct.18
Oct.25
United States short-term securities:
SeDt.27
Oct. 4
Oct. 10
Oct.18
Oct. 25
Municipal warrants:
Sept.27
Oct. 4
Oct.10
Oct.18
Oct.25




16 to 30
days.

! 31 to 60
; days.

61 to 90

Over 90
days.

Total.

SI, 267,750
1,294,633
1,360,308
1,282,441
1,128,383

§136,005
131,386
137,435
189,151
151,494

$191,806
174,203
170,627
140,229
138,672

$105,652
95,482
73,641
67,234
115,387

812,217
10,502
12,458
9,501
12,228

55,294
66,167
65,493
60,880
69,978

45,955
66,526
60,946
70,026

110,821
93,446
102,464
125,787
141,136

65,778
105,249
100,983
122,523
117,483

3,154

14,300
9,153
10,750
11,402
250,906

10
1,420
5,412
6,022
117

467
4,841
707
163
42

5,692
8,104
8,851
8,676

34,652
35,408
41,220
41,300
62,319

50,098
56,514
66,193
67,738
322,060

9
9
7
7
7

11
11
11
5
10

10
10
10
10

71
61
61
55
24

10
31
31
33
2

$1,713,430
1,706,206
1,754,469
1,688,556
1,546,164
288,391
310,817
338,620
370,136

1151

FEDERAL RESERVE BULLETIN.

NOVEMBER 1 , 1 9 1 8 .

FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank at close of business on Fridays, Sept. 27 to Oct. 25, 1918.
[In thousands of dollars; i. e., 000 omitted.]

Federal Reserve notes received
from agent—net:
Sept.27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Federal Reserve notes held by
bank:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct.25
Federal Reserve notes in actual
circulation:
Sept.27
Oct. 4
Cct.10
Oct. 18
Oct. 25
Gold deposited with or to credit
of Federal Reserve agent:
Sept. 27.
Oct. 4.
Oct. 10
Oct.18
Oct. 25
Paper delivered to Federal Heserve agent:
Sept. 27
Oct. 4
Oct.10
Oct.1',8
Oct. 25




Kansas Dallas. FranCity.

New
York.

Phila- i Cloveldelphia-| land.

151,048
156,983
159,790
163,010
165,884

770,177
787,253
793,644
806,644
813,244

; 210,755
;217,0lS
224,420
£31,815
230,756

237,359
|237,359
245,546
245,546
253,347

2,995
4,002
4,470
7,381
14,092

70,527
67,936
66,260
77,785
91,305

10,9S3
11,827
13,186
15,741
15,963

9,277
8,550
8,143
9,950
8,776

148,053
1152,981
1155,320
155,629
151,792

699,650
719,317
727,384
728,859
721,939

199,772
205,191
211,234
216,074
214^793

228,082
228,809
£37,403
i235,596
1244,571

58,925
68,460
68,267
08.137
67; 971

286,671
285,627
285,627
285,627
285,627

110,208
109,451
108,412
110,248
•« H A i t ) r t
119,189

'153,479 i 47,293
1141,479 48,967
148,386 : 50,967
j 143,387 ! 60,967
1jn on 4
/ i / \ f\r*C !
|149,324 • 60,968

36,340
42,740
45,844
45,844
45,844

206, 111
224,057
200,880
[206,768
193,672

il22,682
136,623
1140,860
•138,112
145,124

832,937
758,185
814,910
771,003
722,973

105,528
119,936
127,615
125,120
116,765

1114,792 71,158
IllS,409 74,038
135,341 ! 71,160
1138,730 72,419
1135,362 69,556

66,433
78,288
77,793
85,630
77,872

1261,933
1288,597
289,781
'290,046
1274,955

Boston.

Total.

1 Cisco.

j
113,563
120,098
121,939
125,099
126,819

101,342
110,191
11/i 7 « S
114,765
118,905
"" ~"~
119,565

8,064 3,401
6,840 3,178
5,538 3,125
6,302 \ 3,760
8,009 | 2,983

i

370,985
389^232
QO1 n ^ K
391,055
396,902
~
403,807

107,317
111,757
111 O'iA
1111,234
111,859
111,859

J192.0S0
j202', 540
i203,500
;203,426
i202,286

2,494,205
2,583,418
2,623,339
2,667,024
2,697,090

5,992
6,599
5,986
6,496
8,176

1,032
741
964
497
872

11,699
16,428
17^ 539
15,265
14,580

144,879
152,414
144,961
164,536
189,178

76,421
81,571
84,272
85,843
86,531

j 97,350
I 99,543
103,135
107,525
111,045

57,191
61,150
62,373
62,512
61,942

180,381
186,112
1185,961
1188,161
187,706

2,349,326
2,431,004
2,478,378
2,502;488
2,507,912

56,615
51,615
44,992
44,992
48,992

29,378
31.378
31', 232
41,232
48,232

57,489
57,489
52,322
47,322
47,322

24,286
25,286
25,215
24.215
24;215

94,936
94.936
94,856
! 94,782
93.642

1,161,731
1,181,485
1,157,000
1,173,521
1,184,998

58,598
75,077
79,952
77,947
73,928

61,582
51,719
53,794
47,679
39,260

73,940
77,575
83,117
84,161
87,422

57,308
54,708
58,880
58,367

107,480 1,699,364
112,218 1,942,433
116,319 2,049,522
123,713 2,012,927

.. 12,169 7,147
; 19,635 5,295
j 15,306 3,728
16,937 3.477
18,770 4; 695

1,593
1,383
716
945
957

97,941 358,816 100,170
; 107,013 =389,597 106,462
1111,640 1375,749 107,506
115,145 !o*m nt*K
11 r i A s: |379,965 |l0S,382
116*582 J385^037 |lO7* 164

I
105,499
113,258
116,401
118,797
n o *7n^
118^810

78,014 103,342 58,223
82,954 106,142 61,891
8 1 Q88
84,988 109,121 63,337
86,788 114,021 63,009
119,221 62,814

l

48,077 (110,348 | 1,901,642

I'

1152

FEDERAL RESERVE BULLETIN.

NOVEMBER 1, 1018.

Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Sept. 27 to Oct. 25, 1918.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

New
York.

Phila- Cleve- Rich- At- | Chidelphia. land. mond. lanta. i cago.




1

Total.

3,286,140
3,364,480
3,414,220
3,488,640
3,525,460

I

FEDERAL RESERVE NOTES.
Received from Comptroller:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Returned to Comptroller:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Chargeable to Federal Reserve
agent:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
In hands of Federal Reserve
agent:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Issued to Federal Reserve Bank,
less amount returned to Federal Reserve agent for redemption:
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Collateral security for outstanding notes:
Gold coin and certificates
on hand-^
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
In gold redemption fund—
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25
Gold settlement fund, Federal Reserve B o a r d Sept. 27
Oct. 4
1
Oct. 10
Oct. 18
Oct. 25
Eligible paper (minimum
required) x —
Sept. 27
Oct. 4
Oct. 10
Oct. 18
Oct. 25

San
Francisco.

210,300
210,300
218,540
224,540
226,580

jl,121,520
11,13(5,440
jl, 142,840
'1,155,840
1,102,440

268,500
280,120
283,160
1294,460
1294,460

40,292
41,357
41,550
42,330
42,496

250,143
257,187
257,196
257,196
257,196

48,825
49,582
50,620
50,785
51,844

170,008
168,943
176,990
182,210
184,081

865,377
879,253
885,644
898,644
905,244

219,675
1230,538
1232,540
|243,675
!
242,616

18,960
11,960
17,200
19,200
18,200

95,200
92,000
92,000
92,000
92,000

276,400
|277,120
1278,960
1285,840
;289,840

149,780
156,840
|16O,O8O
1166,210
168,280

151,340
158,040
161,240
175,200
175,200

447,680
1461,180
1471,860
:
473,080
484,920

132,920
136,440
138,780
1142,220
147,800

! 97,040
104,880
jl07,160
|109,160
109,880

133,700
135,700
137,700
145,700
149,700

i91,020
I91,020
96,460
!98,920
|98,920

205,940
216,400
217,440
217,440
217,440

24,141 29,617 , 22,743 i 31,515 j 22,483
24,141 29,942 I 22,744 i 32,128 |«22,483
25,234 ! 30,301 ! 23,140 ! 33,525 j 22,606
25,234 I 30,301 j 23,140 34,038 22,606
25,233 30,301 i 23,110 34,993 22,606

16,586
16,636
16,832
16,832
16,882

21,638
21,638
22,059
22,059
22,059

j18,472
18,519
!18,668
•18,911
:18,956

13,860
13,860
13,940
14,014
15,154

546,31.5
550,217
555,671
557,440
560,860

416,165 110,437 80,454 112,062 ! 72,548 192,080
429,052 113,957 88,244 114,062 I 72,501 202,540
438,335 116,174 90,328 115,641 ; 77,792 203,500
,439,042 1119,614 92,328 ! 123,641 | 80,009
203,426
;449,927 125,194 I 92,998 ; 127,641 | 79,964
202,286

2,739,825
2,814,203
2,858,549
2,931,194
2,904,600

; • \-:'.y£.\!il.

151,048
156,983
159,790
163,010
165,884

|252,259
j252,979
'253,720
j200,600
1264,607

120,163
126,898
129,779
j135,939
137,979

128,597
135,296
138,100
152,000
152,060

8,920 j 14,900
13,520 i 15,620
8,180
8,120
11,800 15,060
11,860 11,260

6,600
6,800
7,840
10,840
11,160

27,255
25,105
23,335
33,155
32,495

45,180
39,820
47,280
42,140
46,120

3,120
2,200
4,940
7,755
13,335

: 770,177 210,755 237,359
j 787,253 1217,018 237,359
! 793,644 1224,420 245,546
806,644 1231,815 245,546
; 813,244 230,756 253,347

113,563
1120,098
121,939
1125,099
126,819

101,342
110,191
114,765
118,905
ill9,565

|370,985
|389,232
1391,055
;396,902
:403,807

107,317
111,757
111,234
111,859
111,859

5,000
5,000
5,000
5,000
5,000
7,925
9,460
9,267
9,137
8,971

12,931
16,887
10,887
16,887
16,887

18,813 |
I
16,813 j
16.812 |
11.813 '
17,750;

163,740
158,740
158,740
158,740
158,740
10,744
10,457
11,457
11,457
12,457

14,666
14,006
13,574
13,574
13,574

i
'
I
I

2,503
2,503
2,503
2,503 .
2,503 !.
967
967
967
968

2,507
37,670
2,171
3,171
3,171

j
;
•
i
i

2,440 !
5,290 !
5,340 i
5,540 !
5,510 |

78,014
82,954
84,988
80,788
87,488

2,985
2,084
2,801
2,861
2,862

1,976
1,976
1,830
1,830
1,830

46,000
54,000
54,000
54,000
54,000

110,000 j 99,464 120,000 46,000 ! 31,270 204,219
110,000 98,994 110,000 48,000 j 2,507 222,449
110,000 96,955 118,000 : 50,000 ! 41,170
198,855
110,000 98,791 118,000 i 60,000 j 40,170
204,893
110,000 106,732 118,000 60,000 j 40,170 192,076

53,630
48,631 ]
42,131 j
42,131
46,130 I

92,123
88,523
91,523
94,873
97,913

483,506
501,626
508,017
521,017
527,617

50,702 !48,636
60,142 51,576
66,242 53,756
66,867 45,556
62,867 39,256

100,547 83,880
1107,567 95,880
i116,008 97,160
1121,567 102,159
111,567 104,023

66,270
71,131
70,972
64,132
65,851

65,002
67,451
68,921
73,061
73,721

; 103,342
|106,142
109,121
;114,021 i
119,221 j

164,874
i165,175
190,175
190,134
210,135

3,129
3,129
2,962
2,962
2,962

14,300 54,360
16,300 54,360
16,300 49,300
26,300 i 44,360
33,300 i 44,360

I

58,223
61,891
63,337
63,009
62,814

192,080
202,540
203,500
203,426
202,286

2,494,205
2,583,418
2,623,339
2,607,024
2,697,090

214,239
208,239
208,167
201,239
207,176

11,081
12,081 I
12,010 I
10,081
10,081

13,102
13,102
13,102
13,102
i 13,102
1,892
1,608
2,025
1,875
1,596

215,620
230,845
235,210
204,170
267,510

8,720 14,325
7,920 I 10,610
6,520 I 14,455
9,620 I 17,000
8,420 17,150

45,853
48,653
56,799
66,699
71,899

For actual amounts see item "Papor delivered to Federal Reserve agents," on page 11 ">1.

3,020
3,021
3,321
3,250
3,250
10,185
10,184
9,884
10,884
10,884
33,937
36,605
38,122
38,794
38,599

10,235
10,235
10,155
10,081
10,081

73,363
113,060
77,477
78,053
78,609

84,701
84,701 ,
84,701 j
84,701
83,561

874,129
800,186
871,356
894,229
899,213

97,144
107,(504
108,644
108,644
108,644

1,332,474
1,401,933
1,406,339
1,493,503
1,512,092

1153

FEDERAL RESERVE BULLETIN.

NOVEMBER 1, 1918.

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. SO, 1918.
New York.

Boston.

Philadelphia.

Cleveland.

Received. Returned. Received. Returned, j Received. Returned. Received. Returned.
Boston
Ne\v York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Loins
Minneapolis
Kansas City
Dll
San Francisco.
Total

§15,699,300 $10,490; 950 j SI, 127,200

S9,903,950
1,227,000
218,370
489,250
361,850
731,000
279,905
69,000
35,200
353,800
146,605

1314,812,300
! 1,267,300
i 1,122,040
i
846,400
;
322,750
: 1,151,810
225,000
223,200
i
261,500
:
114,000
:
246,800

13,815,990

81,324,400

16,989,590 27,767,750
29,491,000
6,192,900
6,260.650 '
4,439i 350 '
8^02,8,500 :
2; 617,870
674,300
414,700 •
2,398,950
1,022,380

20,594,000 j 77,239,000

Richmond.

18,509,600
8,994,300
11,3-15,500
6,897,250
8,844,300
2,010,350
I) 750,600
2,306,900
1,399,100
4,319,300

2,786,250
2,436,250
632,580
1,149,000
464,360
109,000
82,S50
322,750
182.845

•1,355,000
2.983,250
'778,100
1,882,000
'438,500
287,000
380/250
1(59'. 650
337; 260

76,568,150 ! 26,282,675 | 40,733,160

Chicago.

Atlanta.

$1,112,400
9,026,700
4,471,000

8228,100
6,069.900
2,653', 250

2,699,350
1,489,150
4,107,500
1,520,200
208.000
117;950
1,097,650
277,050

925,450
187.000
1,794' 800
238,550
194,550
206,600
98.500
118'. 500

26,126,950 | 12,715,200

St. Louis.

Received. I Returned. Received. Returned. Received. Returned. I Received. Returned.
Boston

$310,100
§374,550
6,796.900 j 4,456,500
648,850
770;000 I
184,500 j 1,487,150
1,907,050
973,000 I

1,797,800
767,500
523,890
52,500
134,100
225,400 I
305,735

Total

964,000
1,708,350
302,250
302,000
480.250
90', 500
93,250

; 17,956,075 I 17,620,050

j

8903,500
9.324,000
1', 448.000
5,170)500
967,000
1,406,000

7,978,010
2,493,800
561,200
1,230,600
1,548,610

14,871,700 i 31,123,820

14,539,460

Kansas City.

IMimieayoiis.

SI, 153,300
8,919,900
2,058,000
1,819,300
1,686,350
1,674,750

1,378,000 I 1,675,500
2,565,755 I 1,647,900
340,800
59i 000 i
721,200
137,550 !
1,427,700
1,235,500
181,500
129,155

.! 8703,500
$505,750
.1 10,009,700 ! 7,220,100
.1 2,534,000 i 3,310,250
J
901,950 I 2,652,350

New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.

Dallas.

8222,100
1,983,150
427,000
231,050
196.000
1,597) 400
3,297,500

$291,555
2,625,805
4.76,060
1,546,350
522,890
2,546,770
7,978,010

3,582,500
5,176,000
5,774,500
1.316,000
2)825,100

182,000
546)550
1,006,500
188,425

747,230
4,324,655
2,785,750
517,055

37,893,100

9,877,075

24,362,130

San Francisco.

Total.

1

Received. I Returned.; Received. Returned.! Received. | Returned Received. '•• Returned.Received.
I
!
Boston
Ne-.\- York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i i y . . .
Dallas
San Francisco..

S217,400
1,722,100
342,000
194,550
308,250
340,800
4,971,500
747,230

S69.000
655)800
75,500
208)000
63,000
64,000
2,402,250
190,500

261,500
194.250
818,120

645,500
85,500
945,750

Total....

10,117,700

5,405,800




; $112,000
I 1,377,100
! 199,000
I 80,500
i 94,500
1,408,550
1,288,000
2)783,340
80)500
505,350

£339,200
3,214,550
547,000
272)840
533,240
923)400
8,375.995
6,622,055
856,500

844,515
548,700
58,200
131,600
64,090
187,250
706,750
780,450
394,900

"2,"405,"676'
1,642,580

'"83i,"866"

25,783,030

3,980,505 8.238,350 j 8,884.100

232,250

8377,200
1,716,400
i 319,400
I 909.400
! 208,900
I1,200,250
I 1,120.100
9851250
176,800
1,573.750

298.510 I

Returned.

8211,000
4,205,300
370,000
138,000
85,500
211,000
2,840,600
500,865
950,750
176,150
437,900

8119,665
1,039,150
133,190
234,225
291,475
112,830
939,960
155,940
405,825
1,020,490
270,935

821,287,500
74,048,940
42,436,000
13,026,210
15,762,340
14,870,630
37,035,095
26,604)140
5,740.350
2,973)100
10,908,370
6,560,015

314,729,185
76,236.405
28,900;600
26,810)915
20,125,005
14,666,200
30,203,830
10,558,090
9,998,905
17.698,595
8)619,435
10,113,415

10,157,065

4,723,085

271,258,690

268,660,580

296,650

1154

FEDERAL RESERVE BULLETIN.

NOVEMBER 1 , 1 9 1 8 .

MEMBER BANK CONDITION STATEMENT.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays from Sept. 20 to Oct. 18, 1918.
1.—TOTAL FOR ALL REPORTING BANKS.
[In thousands of dollars; i. e., 000 omitted.]

Boston.

Number of reporting banks:
Sept.20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
United States bonds to secure circulation:
Sept.20
Sept.27
Oct. 4
Oct.11
Oct. 18
Other United States bonds,
including Liberty bonds:
Sept.20
Sept. 27
Oct.4
Oct.11
Oct. 18
United States certificates of
indebtedness:
Sept.20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Total United States securities owned:
Sept.20
Sept. 27
Oct.4
Oct. 11
Oct. 18
Loans secured by United
States bonds and certifi-

New
York.

Philadelphia.

RichAtmond. lanta.

85
85
85
85
X

102
103
103
103
103
14,352
14; 352
14,352
14,302
14,352

Cleveland.

San
Francisco.

City.

Total.

740
747
749
749
749

99
100
100
101
101

85

50,873 11,492
50,923 11,489
50,923 11,492
50,922 11,492
50,972 11,492

St.
Chicago. Louis. Minneapolis.

42,489
42,272
42,385
42,591
42,733

24,251
24,251
24,251
24,251
24,252

15,465
14,790
15,485
15,465
15,465

18,461
18,574
18,847
18,667
18,866

17,676
17,635
17,677
17,656
17,657

6,382
6,369
6,369

13,730
13,730
13,710
13,735
13,736

17,929
17,929
17,238
17,858
17,629

34,480
34,505
34,515
34,505
34,505

267,580
266,819
267,224
267,813
268,028
488,704
474,023
501,788
494,140
526,677

11,625
11,396
13,657
14,283
19,289

228,953
228,307
243,337
235,935
238,074

30,392
26,431
29,994
29,363
32,652

47,683
4.4,700
48,353
47,104
48,417

26,842
26,400
30,028
30,840
33,066

22,105
21,203
21,479
23,207
26,800

47,457
42,263
4.3,592
42,826
53,281

14,026
13,103
15,162
14,452
17,039

7,876
6,877
7,147
7,126
8,205

13,211
12,523
13,513
13,138
13,021

14,914
14,764
12,979
13,728
13,563

23,620
26,056
22,547
22,138
22,670

91,900
126,313
123,665
122,020

744,239
697,193
868,314
861,368
854,950

73,664
76,24.9
93,544
94,052
91,746

105,611
111,266
125,307
124,256
123,021

39,339
42,434
46,884
50,273
50,853

40,265
40,508
48,516
78,801
51,356

165,085
167,393
192,289
192,831
182,630

42,620
42,825
50,187
47,419
47,262

22,121
24,211
25,480
29,798
29,760

44,831
46,928
52,107
55,120
55,924

19,806
20,093
23,492
22,633
23,115

76,450
79,214
93,702
96,940
97,174

117,877
121,676
15-4,322
152.250
155; 661

1,024,065
976,423
1,162,574
1,148,225
1,143,996

115,548
114,169
135,030
134,907
135,890

195,783
198,238
216,045
213,951
214,171

90,432 77,835
93,085 76,501
101,163 85,460
105,364 117,473
108,171 93,621

231,003
228,230
254,728
254,324
254,777

74,322
73,563
83,026
79,527
82,558

36,379
37,457
38,996
43,293
44,334

71,772 52,649 j134,550
73,181 52,786 1139,775
79,330 53,709 1150,764
81,993 54,219 j 153,583
82,681 54,307 154,349

46,022 213,457
Sept.20
42,251 204,244
Sept.27
40,475 209,416
Oct.4
40,941 213,067
Oct. 11
41,814
213,080
Oct. 18
Other loans and investments:
763,915 4,265,716
Sept.20
768,203 4,275,554
Sept. 27
768,086 4,232,387
Oct. 4
773,<"" 4,204,428
Oct. 11
Oct. 18
j76G; 250 4.187,289
Total loans and invest- I
ments:
Sept.20
927,814 5,503,238
Sept. 27
1932,130 5,456,221
!
Oct. 4
962,883 5,604,377
Oct. 11
|957,129 5,565,720
Oct. 18
|963,725 5,544,365
Reserve with Federal Reserve Bank:
70,903 643,918
Sept. 20
65,756 628,734
Sebt. 27
72,065 616,026
Oct. 4
63,765 620,203
Oct. 11
70.346 613,291
Oct. 18
Cash in vault:
Sept.20
1 25,014 124,989
Soot.27
! 24,414 122,523
Oct. 4
i 25,397 123,939
Oct. 11
' 24,954
125,446
Oct. 18
j 28,460 127,598
Net demand deposits on I
which reserve is computed:
682,142 4,444,168
Sept.20
Sept. 27
4,450,844
Oct. 4
1683; 727 4,434,285
Oct. 11
!712,503 4,450,868
Oct. 18
1709,872 4,541,486

47,043
45,796
51,926
50,360
56,675

36,400
36,716
34,717
35,018
35,869

19,714.
20,736
20,220
20,057
20,562

9,785
9,652
14,080
10,977
10,982

62,628 1 14,824
70,016 i 15,181
76,369 j 14,514
74,386 i 14,381
74,784 j 14,756

12,231
12,006
11,827
11,517
11,991

4,505
4,784
4,957
5,006

4,948
5,314
5,686
5, 705
6,921

8,477
9,379
9,144
8,242
7,760

481,514
475,496
493,164
489,608
500,200

618,000
620,941
618,832
615,665
610,567

972,363
961,056
959,709
955,598
964,044

366,955
375,770
375,557
377,880
379,209

300,885
308,896
305,131
316,431
318,574

1,432,590
1,453,271
1,412,895
1,392,207
1,434,995

'374,704
;376,778
376,928
,379,696
1379,934

285,881
286,528
1287,283
1286,153
|284,960

463,780
461,391
'461,057
!460,538
455,682

185,217
185,082
183,625
181,738

533,916
542,480
538,874
545,298
544,521

10,562,591
10,616,085
10,521,821
10,491,457
10,507,763

780,591
780,906
1805,788
1800,932
1803,132

1,204,546
1,196,010
1,210,471
1,204,567
1,214,084

477,101
489,291
496,940
503,301
507,942

388,505
395,049
404,677
\AAA
001
444; 881
423,177

1,726,221
1,751,517
11,743,992
i i 720; 917
Ii; Ton n i T
1,764,556

;463,850 ,334,491 '541,537
465,522 335,991 '539,077
474,468 1338,106 1545,171
'.AT*
1473^ ar\A :OAC\ nao i.T^T AOO
604 1340)963 i547,'488
:477,248 i341,285 i543,3"~

241,483
243,317
244,477
243,549
242,966

J676,943
1691,634
1698,782
707,123
1706,630

113,266,320
! 13,276,665
13,530,132
13,520,174
; 13) 532,479

57,542
65,596
59,490
65,034
59,962

80,147
76,371
81,937
88,291
81,870

31,505 24,188
32,701 27,046
27 n^ft
32,637 27,373
34,109 28,908
32,838 25,822

20,904
19,479
20,252
19,590
22,435

33,499
29,389
36,134
28,266
36,773

17,087
17,733
16,854
17,263
18,390

14,353
15,229
14,723
18,247
15,464

57,826
56,556
57,612
58,097
58,555

1616,738
1628,748
1627,357
1626,508
!621,904

728,200
739,310
749,665
756,317
765,812

308,457
318,375
322,695
323,557
322,038

1217,935
1219,300
J220,213
'225,455
1227,042

1,077,689
1,085,779
1,063,784
1,114,154
1,123.825




146.401 I 35,059 > 19,797 j 49,495
16,380
145)417 ; 33,400 i 21,819 • 51,710
17,617
145,989 ! 34,926 ! 22,279 j 43,141 16.422
150,115 35,386 ! 20,729 ! 46,172 16)516
149,877 ! 34,017 i 33,595 45,859 16,335
!
i
I
i

12,053
12,254
12,442
13,549

1,465,931
1,444,242
1,746,135
j 1,777)156
,729,811
1,
2,222,215
2,185,084
2,515,147
2,539,109
2,524,516

45,141 1,220,481
44,928 1)211,095
51,055 1,203,340
49,543 1,224,771
49,461 1,213,373

i 8,910
! 8,412
j 10,443
: 8,915
I 12,532 ! 9,553

15,844
i 15,312
i 15,798
j 16,308
1 15,571

12,571
11,749
12,052
12,232
12,412

21.525
22)025
21,805
22,020
22,754

364,575
355,075
367,451
364,887
380,495

i265,143
256,369
'264,230
'255,367
i269,758

'369,289
1383,867
1375,295
|384,811

150,606
153,865
xodjOoo
153,559
148,650
157,787

1407,370
|407,222
\*vt,26&
1416,336
|426,496
1429,833

9,455,383
I 9,531,826
| 9,521,346
| 9,643,417
| 9,795,310

187,646
199,327
1210,100
i218,731
:
235,520

NOVEMBER 1,

1155

FEDERAL RESERVE BULLETIN.

1918.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays from Sept. 20 to Oct. 18, 1918—Continued.
1.—TOTAL FOR ALL REPORTING BANKS—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Clcve- ! RichAtI St.
land. ! mond. lanta. Ghicago. , L
Time deposits:
Sept. 20
,
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Total net deposits on which
reserve is computed:
Sept. 20
Sept. 27
Oct. 4'
" '
Oct. 11
Oct. 18
Government deposits:
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18

263,954
263,064
263,442
257,610
254,707

16,579
16,391
16,618
14,440
16,094

721,747 14,512,886
728,204 |4,519,722
723,150 !14,502,758
751,696 j|4,517,953
748,923 ;;4,607,902

622,573
'634,510
,633,241
1631,723
627,611

802,582
814,029
1823,095
1827,714

316,892
212,234
384,262
301,085
234,365

37,897
25.742
38'540
33,422
26,793

91,700
91,774
89,768
94,369
90,405

372,136
372,439
371,238
372,450
371,849

! 75,213 45,939
i 73,334 44,757
i 72,756 45,176
81,864 45,115
! 74,395 ! 45,117

327,432
337,177
:342;393
;344,980

245,903
247,280
247,697
254,268
254,706

1,180,073
1,188,210
1,165,951
•1,216,609
jl, 226,167

1284,701 '204,220
1275,355 1215,510
1283,201 |226,475
1276,242 ;235,088
; 289,089 ,251,870

388,045
402,626
393,716
403,101
408,544

158,858
161,752
161,508
157,561
165,019

62,709
42,999
68,815
50,567
i 42,653

! 20,943 j 11,252
i 14,680 ; 11,006
! 21,643 | 15,467
i 17,536 19,174
! 18,500 18,177

24,183
19,395
19,343
14,467
9,354

6,748
4,533
5,757
4,648
2,754

j

63,313 : i 12,771 14,110 i
35,917 10,977 8,180 !
50,903 '<
14,473 7,892 !
40,559 I 17,761 15,465 !
33,112 i 15,274 14,560 I

69,130
49,437
66,125
54,000
38;817

Total.

62,521 25,097 123,247
62,532 24,275 i 122,660
61,404 24,359 1121,507
60,967 27,332 i 123,980
60,369 22,014 1123,789

54,686
54,224
57,192
60,921
60,565

237,183
238,258
233.914
227,119
223,014

102,122
99,799
99,928
99,307
98,916

iMinne- Kansas Dallas. FranCity.
|
cisco.

1444,344
1444,020
!452,788
1463,690
:466,970

1,470,377
1,464; 107
1,457,202
1,465,474
1,441,234
9,893,364
9,968,395
9,955,973
10,080,625
10,225,995

i
'
!
i
1
I 2,429
! 5; 205

639,948
435,100
893,650
571,113
459,564

2. MEMBER BANKS IN CENTRAL RESERVE CITIES.
Number of report ins bani-s:
Sept 20
Sept 27.
Oct. 4
Oct 11
Oct 18
United States bonds to secure
circulation:
Sept 20
Sept. 27..
Oct. 4
Oct.11
Oct. 18.
Other United States bonds,
including Libertv bonds: '
Seot. 20..
Sent 27.
Oct. 4
Oct. 11.
Oct. 18.
United States certificates of
indebtedness:
Sept. 20..
Sent. 27..
Oct. 4
Oct. 1 1 . .
Oct.18
Total United States securities
owned:
Sept. 20
Sept.27
Oct. 4
Oct. 11
Oct.18
Loans secured b y United
Stales bonds and certificates:
Sept. 20
Sent 27
Oct. 4
Oct. 11
Oct 18
Other loans and investments:
Sopt. 20
Sept. 27
Oct. 4
l
Oct. 11
:
Oct. IS
Total loans and investments:
Sept. 20
•
Sept. 27
Oct. 4
Oct. 11.
Oct. 18




!

70
70

42
43
43
44
44

14
14
14
14
14

125
127
127
128
128

36,679
36,729
36,729
36.728
36,778

1,132
1.119
l'. 119
1,119
1,119

10,576
10,535
10,577
10,556
10,557

48,387
48,383
48,425
48,403
48,454

69
70 •
70

207,586
206,885
220,861
212,261 !
214 320
706,891
661,319
821,365
816 '166
80S, 772

j

.. 1

!

88,978
90,499
105,031
105,213
94,095

.

.

236,076
230,442
247,024
237,318
251,819
828,737
784,465
968,011
957,541
938,223

109,935 52,089
106,940 51,417
123,206 58,299
122.746 55,061
120,859 57,767

1,113,180
1,063,290
1,263,460
1.243,262
i; 238,496

44,825
52 283
57,829
56,361
57,285

11,798
11,952
11,26 i
11,120
11,120

251,333
250,180
260,473
263,091
264,205

874,244
! 897,685
s 871,102
; 839,310
: : : : : : : : i 884,011
1,029,004
1,056,908
1,052,137
1,018,417
1,062.155

270,467
273.422
273.3(59
273,875
1275; 323

:

:

i
!

!3,924,238
3.634.618
.-'a'. 893'572
3,863,504
3,847,547
!

5.070.104
15,025,496 !
!
5,166,907 !
..5.124.509 i
5,103,217

i
I

32,848
32,647
3S,612
35,802
35,356

951,156
904,933
1,081.955
1,065.455
1.059,870
194,710
185 045 !
19lJ 380
195,610
195 800

19.825 8.665
1 ii' 322 8; 235
17,053 9,110
16,414 8.643
25,6-15 l i ; 854

;
_ :
!

i
'

334,354
336,791
342,932
340.056
l344,'21O

1
j
i
;

i

j

1

1

5,008,949
5,105,725
5,038,043
4,976,689
5,006,881
6,433,462
6,419,195
6,5611976
6,483,042
6,509,582

1156

NOVEMBEIt 1, 1918.

FEDEBAL RESERVE BULLETIN.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays from Sept. 20 to Oct. 18, 1918—Continued.
2. MEMBER BANKS IN CENTRAL R E S E R V E CITIES—Continued.
[In thousands of dollars, i. e., 000 omitted.]

Boston.!

Reserve with Federal Reserve
Banks:
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Cash in vault:
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Not demand deposits on
which reserve is computed:
" ' ~~
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18

Time deposits:

___,_._
614,371
598,687
587,867
592,037 i
i 585,449 |

j
!
1
;
'

:
:

;
'
;
1

!
•
:
i
•

'
:
=
-

' 112,268
•• 110,066
; 110,326
' 112,9
113,844
j
I
i
j
J4.125,981
= *, — , — |
|4,134,468 !
14,123,637 j
14,136.— '
14,222,161

;

i
;
!
i
j
:

i
1

i
i
!
!

! 203,484

i
'

•
"

;

:4,174,623 I
4,183,007 !
4,172,524
4,184,459
14,269,119

!

1
'
|

288,642
192,866
! "
352,522
272,751
209,890

!
;
:

Total.

26,590 i
25.374 i
27' 197 '
27,950
25,593

743,883
726.627
718,615
725,983
715,436

5,708
6,093
6.058

152,096
149,940
150,629
152,196
154,682

6.324
6; 560

723,603 191,621

5,041,205
5,057,972
5,046,110
5,074,556
5,175,907

54,237
54,210
51,924
63,723
53,681

406,877
407,076
404,914
412,379
398,491

.1141,857
. i.42,532
.141,148
. 142'. 264
. 141' 326

•

Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18
Government dcDosits:
Sept. 20
Sept. 27
Oct. 4
Oct. 11
Oct. 18

; Dallas.

i733,215 189,258
1755,568 182,158
761,882 191,864

Oct. 18

••..

MinneSt.
Louis. apolis.

'.j 734,081

!

.

Chicago.

.1102,922
.___,
|lO2,566
1103,551
1105,966
j 104.394
! '
:
34,120
33,781
34,245
32,965
34,278

;

"

S e p t . 20
Sept. 27
Oct. 4
Oct. 11

Total net deposits on which
reserve is computed:

i
;..

Nov.* ! Phila- Cleve- Rich- | AtdelYork. ! phia. land. mond. ! lanta.
:

i 210,783 I
. i 2.10.334 !
i 211,842 !
i 206,392

!
j
I

;
i

!
i

:

i
:

'706,339 1204,137
'787,573 201,333
:765,788 201.240 :
!
788,398 196,863
.;794,496 204,252 :
! 42,218 17,061 ]
i 30,968 11,672 ;
44,200 16,550 i
:
36,857 12,578 !
i 26,339 13,285 j

5,135,099
5,151,913
5,139,552
5.169,720
5; 267,867
347,921
235,506
413,272
322,186
249,514

3. MEMBER BANKS IN OTHER RESERVE CITIES.
Number of reporting banks:

Sept. 20
i
19
Sept.27
j
20
Oct. 4
!
20
Oct.ll
!
20
Oct.18
i
20
United States bonds to secure '
circulation:
i
S ept. 20
! 4,278
Sept.27
i 4,278
Oct.4
j 4,278
Oct.ll
! 4,228

Other United States bonds,
including Liberty bonds:
S ep t. 20
Sept.27
Oct. 4
Oct.ll
Oct. 18
United States certificates of
indebtedness:
Sept. 20
Sept.27
Oct.4
Oct.ll
Oct. 18
Total United States securities
owned:
Sept. 20
Sept.27
Oct. 4
Oct.ll
Oct. 18




„
7
7
7
7

39
39
39
39
39

61
61
61
61
61

45
46
47
47
47

7,796
7,796
7,796
7,796
7,796

7,487
7,4.87
7,487
7,487
7,487

34,555
34,555
34,583
34,789
34,806

6,336
6,360
7,212
7,834
i 12,295

8,503
8,747
8,978
10,457
9,038

26,087
22,224
24,802
24,105
26,599

66,188
71,126
95,314
i 93,530
| 91,737

17,909
16,916
2i;648
21,678
22,713

i 76,802
| 81,764
,106,804
1105,592 j
il08,310 I

34,208
33,459
38,422
39,931
39,547

39
39
39
39
39

35 1
35
35
34
34

52
52
52
52
52

12
12
12
12
12

15
15
15
15
15

73
73
73
73
73

13.957
13;957
13,957
13,957
13,958

13,465 16,579
12,700 16,705
13,405 16,978
13,465 16,798
13,465 16,997

5,330
5,330
5,330
5,330
5,330

3,440
3,440
3,440
3,440
3,440

13,730
13,730
13,710
13,735
13,736

15,476
15,476
14,785
15,405
15,176

34,480
34,505
34,515
34,505
34,505

170.573
170)049
170,324
170,935
170,974

41,377
39,474
43,256
41,970
43,327

16,922
16,727
19,764
19,843
22,219

21,607
20,721
20,956
22,675
26,159

26,346
25,787
25,398
25,524
26,766

4,028
3,524
4,703
4,420
4,462

6,014
5,032
5,111
5,204
6,313

13,211 11,498
12,523 11,858
13,513 10,515
13,138 10,988
13,021 10,815

23,620
26,056
22,547
22.138
22)670

205,549'
199,033
206,755
208,296
223,684

61,425
64,091
79,745
80,043
77,447

94,951
100,454
112,933
111,385
109,802

30,251
32,839
36,144
37,942
38,832

39,274
39,572
47,085
77,059
49,714

74,342
75,114
85,375
85,598
86,484

7,618
7,969
9,198
8,904
9,179

11,926
13,921
14,216
18,285
18,336

44,831
46,928
52,107
55,120
55,924

17,791
18,060
21,852
20,442
20,925

76,450
79,214
93,702
96,940
97,174

542,956
566,204
669,319
706,926
678,267

94,999
93,802
112,034
111,635
111,533

170,883
174.483
190J72
188,144
187,935

61,130
63,523
69,865
71,742
75,009

74,346
73,083
81,506
113,199
89,338

117,267
117,606
127,751
127,920
130,247

16,976
16,823
19,231
18,654
18,971

21,380
22,393
22,767
26,929
28,089

71,772
73,181
79,330
81,993
82,681

44,765 134,550
919,878
45,394 139,775
935,286
47,152 150,764 1,046,398
153,583 1,086,157
46,916 154,349 1,072,925

450
452
453
452
452

;

NOVBMUETS 1, 1918.

1157

FEDERAL BESEBVE BULLETIN".

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close of
business on Fridays from Sept. 20 to Oct. 18, 1918—Continued.
3. MEMBER BANKS IN OTHER RESERVE CITIES-Continued.
[In thousands of dollars; i. e., 000 omitted.]
New
Boston. York.

Richmond.

i

Loans secured by United States
bonds and certificates:
Sept.20
Sept.,27
Oct. 4
Oct. 11
Oct.18
Other loans and investments:
Sept. 20
Sept. 27
Oct.4
Oct. 11
Oct. 18
Total loans and investments:
Sept. 20
Sept. 27
Oct. 4
Oct.ll
Oct.18
Reserve with Federal Reserve
Bank:
Sept. 20
Sept. 27
Oct.4
Oct.ll...
Oct.18
rash in vault:
Sept. 20
Sept. 27
Oct.4
Oct.ll
Oct.18
Net demand deposits on which
reserve is computed:
Sept.20
Sept. 27
Oct.4
Oct.ll
Oct.18
Time deposits:
Sept. 20
Sept. 27
Oct.4
Oct.ll
Oct.18
Total net deposits on which
reserve is computed:
Sept. 20
Sept. 27
Oct.4
Oct.ll
Oct.18
Government deposits:
Sept. 20
Sept. 27
Oct.4
Oct.ll
Sept. 18

!

I

!
Dallas.

At- | ChiSt. Minnelanta. j cago. Louis. apoJis.

32,808
33,873
32.256
32i785
33,193

8,804
8,594
8,232
7,869
7,870

45,630
44,193
50,353
48,810
54,941

35,408 16,969
35,738 17,342
33,720 16,924
34,094 36,712
33,997 17,168

9,667
9,583
14,011
10,891
10,903

516,577
532,861
532,158
535,875
530.469

138,290
137,883
133,920
136,204
138,205

547,573
552,925
548,777
545,438
540,762

892,866 257,345
877,986 260,995
876.229 260,568
872', 232 262,875
875,549 264,225

656,187
648,498
671,218
674,252
671,972

181,302
179.936
180)574
184,004
185,622

688,102
690,920
711,164
705,883
707,236

54,812
51,851
57,941
49,943
56,136

13,473
12,714
12.819
14)543
12,919

16,518
15,431
16,122
15,522
17,911

Frtn-

Total.

i

2,291 11,921
2,463 11,706
2,441 11,224
2,416 10,917
2,546 11,202

5,985
4,505
4,784
4,957
5,006

4,348
4,718
4,996
4,999
6,199

8,477
9,379
9.144
8)242
7,760

199,478
199,268
206,113
200,220
207,826

288,817
296,713
293,176
304,101
306,494

547,666 81,501 219,989 463,780
544,586 "\467 219,699 461,391
|531,067 80,230 220,632 461,057
!o42,159 81,746 218,837 460,538
540,455 80,628 214,134 455,682

152,608
153,276
152,845
151,353
149,211

533,916
542,480
538,874
545,298
544,521

4,670,928
4,661,262
4,629,533
4,656.656
4,640,335

372,830
379,379
388,693
428,191
406,735

682,203
679,366
676,846
687,607
687,683

100.768
99)753
101,902
102,816
102,145

253,290
253,798
254,623
256,683
253,485

541,537
539,077
545,171
547,488
543,369

201,721
203,388
204,993
203,187
202,326

676,943
691,634
698,782
707,123
706,630

5,789,484
5,795,816
5,882,044
5,943,033
5,921)086

51,777
59,892
54,143
59,730
5-4,188

74,133 23,939 23,125 42,589
70,473 25,205 26,062 41,986
76,125 24,553 25,994 41,610
82,271 25,483 27,905 43,332
75,533 24,718 24,794 44,670

7,169
6,635
6,050
6,079
7,345

15,603
17,445
17,764
21,736
28,675

49,495
51,710
43,141
46,172
45,859

14,159
15,632
14,491
14,499
14,225

45,141
44,928
51,055
49,543
49,461

415,415
424,533
425,686
441,238
438,523

4,726
4,833
4,734
4,352
4,689

16,758
15,838
15,800
16,176
17,755

28,575
24,978
31,018
23,938
31,709

11,955
12,003
11,750
11,834
12,292

13,631
14,484
13,889
14,980
14,730

23,332
22,481
22,875
24.798
23)839

4,778
4,667
4,827
5,668
4,635

5,647
5,068
6,958
5,612
6,218

15,844
15,312
15,798
16,308
15,571

11,280
10,385
10,673
11,045
10,947

21,525
22,025
21,805
22,020
22,754

174,569
167,505
176,249
172,253
183,050

523,215
527,467
518,411
546,185
543,155

127,350
126,604
126,375
128,049
131,793

543; 106
555,235
i651,366
1553,938
547,449

656,194
668,018
678,971
685,685
691,006

222,259
227,042
231,019
231,683
230,437

206,904
208,008
208,452
214,255
216,197

345,239
341,957
321,567
349.873
353)226

56,737 140,191
50,658 149,334
57,207 158,503
55,323 1163,509
60,653 175,592

383,867
375,295
384,811
390,433

127,965
129,411
130,666
126,055
133,747

407,370
407,222
416,326
426,496
429,833

3,725,819
3,774,823
3,774,168
3,865,862
3,903,521

32,365
26)340
26,469
26,190
25,989

21,087
19,573
19,664
19,398
19,403

9,885
9,823
9,635
7,573
9,263

212,077
213,046
208,593
201,750
198,019

34,706
34,502
37,428
36,449
36,794

88,135
88,292
85,460
90,461
86,181

225,892
225,496
225,679
225,765
226,080

15,153
13,371
15,082
12,483
15,044

24.223
23)326
23,227
23,161
23,220

62,521
62,532
61,404
60,967

19,479
19,576
19,373
21,798
17,130

123,247
122,660
121,507
123.980
123)789

868,770
858.537
853.521
849)975
841,281

133,676 546,072
132,476 558,182
132,274 554,257
133,868 556,210
137,614 .550,228

719,817
731,932
741,549
746,210
750,412

232,671
237,392
242,247
212,618
241,475

233,344
234,498
1234,090
i241,393
1242,051
I
! 13,990
8,071
7,691
15,017
1 14,368

413,007
409,606
389,271
417,603
421,050

61,283
64,669
61,732
59,068
65,166

147,458
156,332
|165,471
! 170,457
182,558

388,045
402,626
393.716
403)101
408,544

133,809 444,344
135,284 444,020
136,478 452,78S
132'. 594 463.890
138)8S6 466,970

3,986,450
4,032,384
4)030,225
4.120,854
4)155,906

532,924
535,369
526,352
554,042
550,952
50,032
34,112
52,702
37,658
31,723

11,622
8.434
13,933
12,851
10,133

I

\ 34,072
j 23,214
! 34,020
j 29,629
i 22,943

1,099,157
1,088,207
1,100,721
1,094,470
1,097,481

335,444
341,860
347,357
1351,329
1356,402

60,349 10,978
34,135 9,432
48,288 11,957
38,588 10,708
31,415 12,162

17,270
17,174
18,028
17,528
16,981

26.826
18)282
21,692
16,813
i 12,156

3,452
8,686 24,183
2,665 9,841 19,395
4,542 13,241 19,343
4,457 16,888 14.467
4,826 : 16,104 9)354

6,522
4,263
5,445
4,476
2,fiO7

2,429
5,205

250,512
171.84=4
232', 854
203)981
173,056

4. MEMBER BANKS OUTSIDE R E S E R V E CITIES.
Number of reporting banks:
i
j
Sept.20
"
.
"...J
23 I
Sept. 27
1
24 I
Oct. 4
i
24 I
Oct.ll
!
24 j
Oct. 17
!
24 !
United States bonds to secure j
|
circulation:
I
i
Sept.20
! 10,074 I
Sept. 27
1 10,074 !
Oct.4
i 10,074
Oct.ll
! 10,074
:
Oct. 17
10,074




26
20
26
26
26
6,398
6,398
6,398
6,398
6,398

32
34
34
34
34
4,005
4,002
4,005
4,005
4,005

7,934
7,717
7,802
7)802
7,927

6
6
6
6
6

5
5
5
5
5

10,294
10,294
10,294
10,294
10,294

2,000
2,000
2,000
2,000
2,000

750
750
750
750
750

20!
20 !
20
20
20

10 I.
10 j.
10 j.

10 I.

10 ;
.

1,770 i 2,942
1,770 ! 2,929
1,770 | 2,929

! 2,453 i
i 2,453 !
i 2,453 j

1,770 I 2,929 i
1,770 | 2,929 I

i 2',453 !
I 2)453

165
168
169
169
169
48,620
48,387
48.475
48)475
48,600

1158

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities as at close
of business on Fridays from Sept. 20 to Oct. 18, 1918—Continued.
4. MEMBER BANKS OUTSIDE RESERVE CITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
i

!

Other United States bonds, including Liberty bonds:

Sept. 20
5,289
Sept.27
5,036
Oct. 4
6,445
F- Oct. 11
8,449
Oct. 18
6,994
United States certificates of indebtedness:
Sept. 20
25,712
Sept. 27
24,802
Oct. 4
30,999
Oct. 11
30,135
Oct.18
30,283
Total United States securities
owned:
Sept. 20
41,075
Sept.27
39,912
Oct.4
47,518
Oct. 11
46,658
Oct.18
47,351
Loans secured by United States
bonds and certificates:
Sept.20
13,214
Sept.27
8,378
Oct.4
8,219
Oct.ll
8,156
Oct.18
8,621
Other loans and investments:
Sept. 20
217,338
Sept. 27
235,342
Oct. 4
235,928
Oct. 11
238,063
Oct. IS
235,781
Total loans and investments:
Sept. 20
271,627
Sept. 27
283,632
Oct. 4
291,665
Oct. 11
292,877
Oct. 18
291,753
Reserve with Federal Reserve
Bank:
Sept. 20
16,091
Sept.27
13,905
Oct.4
14,124
Oct. 11
13,822
Oct. 18
14,210
Cash in vault:
Sept.20
8,496
Sept. 27
8,983
Oct. 4
9,275
Oct. 11
9,432
Oct. 18
10,549
Net demand deposits on which
reserve is computed:
Sept.20
; 158,927
Sept. 27
1161,353
Oct. 4
1165,316
Oct.ll
1166,318
Oct. IS
166,717
Time deposits:
i
Sept.20
69,757
Sept. 27
! 73,459
Oct. 4
• 73,459
Oct. 11
i 73,117
Oct. 18
; 72,927
Total net deposits on which re- ;
servo is computed:
!
Sept. 20
1188,823
Sept.27
: 192,835
Oct.4
196,798
Oct. 11
197,654
Oct. IS
1197,971
Government deposits:
:
Sent. 20
i 12,677
Sept. 27
! 8,887
Oct.4
j 16,113
Oct. 11
! 12,909
Oct. 18
j 10,930




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

Chicago.

New ! PhilaBoston. York. |delphia.|| Cleveland.

Total.

4,305
4,207
5,192
5,258
6,053

6,306 9,920
5,226 9,673
5,097 10,264
5,134 10,997
5,090 10,847

482
523
532
641

1,286
1,154
1,141
888
870

1,333
1,344
1,349
1,389
1,323

1,862
1,845
2,036
1,922
1,892

3,416 !
2,906 !
2,464 i
2,740 !
2,748 ;

47,079
44,548
48,009
48,526
51,174

19,439
18,958
22,301
23,224
23,465

12,239
12,158
13,799
14,009
14,299

10,660 9,088
10,812 9,595
12,374 10,740
j 12,871 12,331
j 13,219 12,021

991
936
1,431
1,742
1,642

1,765
1,780
1,880
2,020
2,051

2,154
2,209
2,377
2,653
2,727

10,195
10,290
11,264
11,513
11,424

2,015
2,033
1,640 i
2,191 !
2,190 i

94,258
93,573
108,805
112,689
113,321

38,701
38,031
42,197
42,839
44,579

20,549
20,367
22,996
23,272
24,357

24,900 29,302
23,755 29,562
25,273 31,298
25,807 33,622
33,162

3,489
3,418
3,954
4,274
4,283

3,801
3,684
3,771
3,658
3,671

5,257
5,323
5,496
5,812
5,820

14,999
15,064
16,229
16,364
16,245

7,884
7,392
6,557
7,384
7,391

189,957
186,508
205,289
209,690
213,095

9,943
9,705
9,804
9,588
9,410

1,513
1,603
1,573
1,550
1,734

992
978
997
924
1,872

2,745
3,094
3,296
3,345
3,394

118
69
75
86
79

559
512
497
518

735
766
809
845
1,090

310
300
603
600
729

600
596
690
706
722

30,703
26,048
26,578
26,297
28,169

203,188 70,427
203,053 68,016
204,895 70,055
204,720 70,227
201,537 69,805

79,497
83,070
83,480
83,366
88,495

109,610 12,068 10,680 22,736 65,892
114,775 12,183 11,000 22,889 66,829
114,989 11,955 10,726 23,329 66,651
115,005 12,330 10,738 24,075 67,316
114,984 12,080 10,529 23,983 70,826

31,278
31,941
32,237
32,272
32,527

822,714

12,864
12,675
13,498
13,217
14,716

j
i
i
i
!

251,832
105,389 141,657
250,789
107,803 147,431
256,896 94,624 109,750 149,583
257,147 95,049 110,097 151,972
255,526 95,896 116,603 151,540

i

854.245
858,112
860,547

15,675
15,670
15,984
16,690
16,442

15,014
15,243
15,009
14,893
14,718

28,728
28,978
29,634
30,732
30,893

81,201
82,193
83,483
84)280
87,800

39,762
39,929
39,484
40,362 !
40,640

1,043,374
1,061,654
1,086,112
1,094,099
1,101,811

16,074
17,333
15,340
13,623
15,023

5,765
5,704
5,347
5,304
5,774

6,014
5,898
5,812
6,020
6,337

7,566
7,496
8,084
8,626
8,120

1,063
984
1,379
1,003
1,028

865
828
787
813

1,300
'.,391
,679
,357
,079

4,194
4,374
4,515
4,993
4,920

2,221
1,985
1,931
2,017
2,110 I

61,183
59,935
59,039
57,552
59,414

7,995
7,624
8,S79
8,187
9,063

4,146
3,641
4,452
3,414
4,680

4,924
4,411
5,116
4,328
5,064

5,132
5,730
5,104
5,429

722
745
834
3,267
734

374
294
492
334

,567
.494
,557
,557
,337

3,263
3,344
3,485
3,303
3,335

1,291
1,364
1,379
1,187
1,465

37,910
37,630
40,573
40,438
42,763

190,S37
189,772
193,935
185,989
187,532

73,632
73,513
75,991
72,570
74,455

72,006
71)292
70,694
70,632
74,806

86,198
91,333
91,676
91,874
91,601

11,031
11,292
11,761
11,200
10,845

8,847
9,141
9,002
8,713
8,717

16,785 47,455
16,888 49,993
17,765 51,597
17,886 55,222
17,241 59,928

22,641 !
24,454 !

32,084
33,757
31,936
31,820
31,820

6,694
6,568
6,983
6,867
6,831

25,106 19,980
25,212 19,722
25,321 19,764
25,369 24,472
24,995 23,771

3,565
3,482
....

5,823 21,716
5,753 21,431
5,750 21,949
5,658 21,954
5,670 21,897

5,618

4,224

4,387
4,411
4,411
4,421
4,443

204,587
204,239
207,622
199,626
201,169

76,501
76,328
78,984
75,513
77,383

82,765
82,097
81,546
81,504
85,518

94,761
99,785
100,146
jlO2,362
101,789

12,559
12,784
13,607
12,875
12,655

10,727
11,031
10,892
10,608
10,621

19,281 56,762
19,354 59,178
20,229 61,004
20,311 64,631
19,671 69,312

25,049
26,468
25,030
24.967
26)133

16,628
10,934
17,807
15,483
14,342

3,825
2,528
4,520
3,793
3,850

2,964
1,782
2,615
1,971
1,097

1,793
1,545
2,516
7,053
3,112

120
109
201
448
192

187

330
322

430
343
551
501
389

2,566
1,165
2,226
2,286
2,073

!
;
I
|

688,359
699,031
710,630
702,999
715,8-82

22,595
24,040

194,730
198,494
198,867
203,120
201,462

4,986
5,534
4,884
|
!
j
i

226 i
270 !
312
172
87

: 771,815
784,099
I 795,858
790,051
802.222

l
!

41,515
27,750
47,524
44,946
38,994

1159

FEDEBAL KESEBVE BULLETIN.

NOVEMBER 1,1018.

IMPOSTS AND EXPORTS OF GOLD AND SILVER.
Gold imports and exports into andfrom the United States.
[In thousands of dollars: 1. e., 000 omitted.]
Ten days
ending
Sept. 20,
1918.

Ten clays
ending
Sept. 30,
1918.

Ten days
ending
Oct. 10,
1918.

Total
since Jan.
1,1918.

397

1,070

241

47

134

141

11,825
6
38,387
6.774
183

12 778
114
383,859
53 300
95,042

381

57,175

545,093

60

179
46 593
35,104
265,429

Total,
Jan.1 to
Oct. 12,
1917.

IMPORTS.

Ore and base bullion
United States mint or assav office bars
Bullion, refined....
United States coin
Foreign coin

.

9

Total

5

453

1,209

EXPORTS.

Domestic:
Ore and base bullion
Uniterl Stat,p.s mint or assay office, b a r s . . .
Bullion, refined...
Coin

5

670

1
459

465

115
914
6,817
26,302

761

465

525

34,148

347,305

2

6

425

31
6,310

91
.

Total
Foreign:
Bullion, refined
Coin
Total

2

Total exports

761

6

425

6,341

467

531

34,573

353,646

Excess of gold imports over exports since January 1,1918, $22,602,000. Excess of gold imports over exports since August 1,1914, $1,072,906,000.

Silver imports and exports into and from the United States.
fin thousands of dollars; i. e., 000 omitted.)
Ten days
ending
Sept. 20,
1918.

Ten days
ending
Sept. 30,
1918.

1,311

2,403
250
25
12

31,264
50
19,138
914
3,423

25,027
131
5,590
919
1,383

1,410

165
135
11

247
51
166

32,674
50
19,385
965
3,589

1,622

2,690

54,789

33,050

1,874

56,663

2
306
30

8,204
186

14
21,702
131,951
2,804

72
3,051
53,780
791

6,685
' 27

14
21,702
138,636
2,831

336

8,392

156,471

57,694

6,712

163,183

11

85
121

3,729
5,153

2,471
2,089

402
73

4,131
5,226

Total,
Jan. 1 to
Sept. 30,
1918.

Total,
J a n . 1 to
Sept. 30,
1917.

Ten days
ending
Oct. 10,
1918.

Total,
Jan. 1 to
Oct. 10,
1918.

IMPORTS.

Ore and base bullion
United States mint or assay office bars
Bullion, refined
United States coin
Foreign coin
Total
EXPORTS.

Domestic:
Ore and base bullion . . . .
United States mint or assay office bars
Bullion, refined
Coin
Total
Foreign:
Bullion, refined
Coin
Total
Total exports.

11

206

347 i

8,508 ;

I

8,882
165,353

4,540

475

62,234 j

7,187 !

9,357
172,540

Excess of silver exports over imports since January 1,1918, §115,877,000. Excess of silver exports over imports since August 1,1914, §214.126,000.




1160

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

Estimated general stock of money, money held by Treasury and by the Federal Reserve System, and all other money in the
United States Oct. 1, 1918.
| Hold in the
Held outside
General stock jUnited States Held by or
the United
of money
| Treasury
for Federal
States Treasury
in the
j as assets of Reserve Banks and Federal
United States.
the
Reserve Sysand agents.
- tern.
Government.1

Gold coin 2
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes.
National-bank notes
Total:
Oct. 1,1918
Sept. 1,1918
Aug. 1,1918
July 1,1918
June 1,1918
May 1,1918
Apr. 1,1918
Mar. 1,1918
Feb.1,1918
Jan. 1,1918
Pec. 1,1917
N o v . l , 1917
Oct. 1,1917
Sept. 1,1917
Aug. 1,1917
July 1,1917

$3,079,094,009

$1,423,814,839
471,918,720

346,681,016
2,525,432,760
42,798,560
721,933,170

8,271,404
38,370,746
224,605
20,989,885

M3.810,166
122;056,065
4; 957,426
10,876,993

8440,211,951
465,520,084
12,778,240
324,087,183
225.685,591
1,831,358
294,599,446
2,365:005,949
37'. 616,529
690,066,292

7,322,423,723
7,092,955.371
6,895,089,799
6,742,225,784
6,615,007,782
6,540,954,630
6,480,181,525
6,351,548,056
6,271,603,039
6,256,198,271
6,026,127,909
5,823,854,335
5,642,264', 856
5i553,601,154
5,513,292,894
5,480,009,884

380,246,203
369,937,060
390,798,058
356,124.750
348,322,704
321,192,308
339,856,674
330,927,176
332,576,125
277,043,358
248,167,148
242,265,377
242,469,027
239,654,267
248,268,325
253.671; 614

2.084,774,897
2,070,371,803
2,054,455,993
2,018,361,825
1,983,796,097
1,909,594,674
1,873,524,132
1,827,126,208
1,834,102,608
1,723,570,291
1,646,773,746
1,546,124.691
1,429,422; 432
1,373,987.061
I! 395,982; 728
1,280,880,714

4,857.402,623
4,652,646,508
4,449.835,748
4,367;739,209
4,282.888,981
4,310i 167,648
4,266', 800,719
4,193,494,672
4,104,924,306
4,255,584,622
4,131,187,015
4,035,464,267
3,970,373,397
3,940,019,826
3,869,041,841
3,945,457,556

Amount per
capita
outside the
United States
Treasury and
the Federal
Reserve System.

§277,628,415
"*28,"769,*36i"

232,403,832

"*"5,"99i,"787"

6,614,234
3 726,454

$45.69
43.83
41.97
41.31
40.51
40.82
40.47
39.8339.04
40.53
39.40
38.54
37.97
37.7a
37.10
37.8*

!
Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of national
bank notes, Federal Reserve notes, and Federal Reserve Bank notes.
2
Includes balances in gold sattlement fund standing to the credit of the Federal Reserve Banks and agents,
s Includes standard silver dollars.
< Includes Treasury notes of 1890.
1




1161

FEDEBAL EESEEVE BULLETIN.

NOVEMBER 1,1918.

DISCOUNT RATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Oct. 31, 1918.
Maturities.
Trade acceptances.

Disccunts.

Federal Reserve Bank.

Within 15 |
days,
including
member
banks'
collateral
notes.

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

16 to 60
days.

61 to 90
days.

Secured by U. S. certificates of indebtedness or Liberty loan
bonds.

Agricultural and
live-stock
paper
over 90
days.

Within 15
d a y s , including
member
banks'
collateral
notes.

1 to 60 ! 61 to 90
days,
|
days,
inclusive. i inclusive.
16 to G
O
days.

4-5
*4j
4
4
4£
4J

1
Rate of 3 to 4£ per cent for 1-day discounts in connection with the loan operations of the Government. Rates for discounted bankers'
acceptances maturing" within 15 days, 4 per cent; within 16 to 60, days 4} per cent; and within 61 to 90 days, 4£ per cent.
2
Rate of 4 per cent on paper secured by fourth Liberty loan bonds where paper rediscounted has been taken by discounting member banks
at rate not exceeding interest rate on bonds.
* Rate for trado acceptances maturing within 15 days, 4} per cent.
* Rate for trade acceptances maturing within 15 days, 4£ per cent; 16-90 days, 4j| per cent.
NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent.
NOTE 2.—Rates for commodity paper have been merged with those for commercial paper of corresponding maturities.
NOTE 3.—In case the 60-day trade acceptance rate is higher than the 15-day discount rate, trade acceptances maturing within 15 days will be
taken at the lower rate.
NOTE 4.—Whenever application is made by member banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not
exceeding that for 90-day paper of the same class.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, SEPT. 16 TO OCT. 15,1918.
Items drawn on Items drawn on
district
banks in Federal banks in Federal
outside
Reserve city
Reserve city
(daily average). (daily average).

Amount.

N

™"
ber.

Total items
Items handled
drawn on banks Items drawn on by both parent Items drawn on NumTreasurer of
banks in other
ber
in own Federal
bank and
United States
Reserve district districts (daily branches (daily (daily average). of
average).
mem(daily average).
average).
! ber
[banks

Amount. Num- Amount.
ber.

Amount

-

1

i n

b£?" A m o u n t -

Num- Amount. I dis! trict.
ber.

1,833 52,497,871
1861 612,276
3,111! 2,692,492
262!
211,000
903 547,794

183 M, 914,486 421
45, 04119,743,441 713
6,778 4,456,282 629
4,633 2,817,953 803
2,244 570,405 559
5,532 1,652,998
415
16,172 5,722,000 L285
6,882 1,465,332
502
1,151
850
4,551
498,682 989
2,938
395,933 718
3,434 8,524,244

N

- i -

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

7,518 319,685,483
12,753j 92,276,004
13,908 25,267,046
3,1931 6,933,761
i nor
a oec fynn
1,987 6,256,700
2,002 2,404,179
11,630 23,908,000
4,021 8,543,259
2,746 10,300,697
, 2,913 8,262,400
, 1,060 2,129,380
, 1,200 2,672,091

65,395
98,979
31,593
49,456
39,202
19,747
46,544
26,758
18,205
46,929
23,205
29,428

59,583,652 72, 913 S30,269, 135 7,663 S10,628,260
63,820,553111 732156,096, 557 39,265 19,055,881
4,870,927
501 29| 137^ 973 16,145 12,264,358
649 28,439,489 3,265; 4,759,548
21,505,728
189 20,877,868 6,012; 7,642,452
14,621,168
749 9,243,
2,247| 3,302,822
6,839,629
174 34,738, 000 5,055: 1,163,000
10,830,000
14,344,643
899; 1,585,896
»; 801,384
12,398,551
2,097,854
952! 2,238,280
12,334,467
20,596,873 5,237! 5,417,895
7,501,672
9,631,052 2,194: 1,711,126
9,218,340
11,890,431
5211 1,223,401

Totals:
Sept. 16 to Oct. 15,
1918
, 64 931208,639,006 495,441169,025,374 560,372 377,664,380 89|:5455
,025,
Aug. 16 to Sept. 15,
55,123 182,321,867 441,979 145,374,804 497,102J327 696,67180,555
1918
July 16 to Aug. 15,
50,229 172,600,132 406,330 131 ,047,263456 ,559303,647,395 76,404
1918
Sept. 16 to Oct. 15,
l,216i
591128,271,466 212,935 47,476,204 253,526 175,747,670 40,
1917
,




2,499,012
uj 143,775
2,474| 1,923,753

3,5

70,992, 91913,033 11,127,973 106,539 51,048,149 8,51010,318
62,764,96011,053 6,866,305| 87,213451,695,643 8,42810,549
:
58,502,29113,395 11,254,817

81,323 41,063,646 8,294 10,206

44,984,581

26,79713,518,566 7,747 9,052

1162

FEDERAL RESERVE BULLETIN.

NOVEMBER 1,1918.

FOREIGN EXCHANGE RATES.
Monthly ranges of exchange rates on leading foreign money centers, quoted in New York during the four months ending
October, 1918.
August.

July.
(Exchange
at par.

London:
60-day bankers' bills
dollars for £ 1 . .
do
Sight drafts..
francs for 100 dollars..
Paris
lire for 100 dollars..
Milan
dollars for 100 pesetas..
Madrid
dollars for 100 florins..
Amsterdam
dollars for 100 kroner..
Stockholm
do
Copenhagen
francs for 100 dollars..
7urich
dollars for 100 gold pesos..
Buenos Aires 1 1
dollars for 100 paper milreis..
Rio de Janeiro ...
dollars for 100 pesos..
.. .dollars for 100 yen..
Yokohama
Honpkonc
(lollars for 100 Hongkong dollars
dollars for 100 Shanghai taels .
Shanghai
London average p rice of silver at nominal rate of
£($4.8665)
New York averagei nrice of silver

Low

High.

4.8665
4.7250
4.8665
4.7530
518.1347 571.37
518.1347 881
19.30
26.75
40.20
50.25
35
26.80
26.80
3(0.90
518.1347 399.50
96.48
98.15
2 54.62
22.99
36.50
32.57
52.90
49.85
78 50
113.75

Low.

High.

4.7250
4.7250
4.73125
4.76
4.7535
4.7535
571
547.50
571.25
800.50
636.50
801
23
26.50
27.55
51
52
52.75
34.75
36.25
35.80
31.13
31.75
31.30
425
394
391.50
98.52
99.01
99.26
24.21
23.53
24.94
31.37
33.08
33.39
53.75
53.75
54.63
80
80 50
88
116.50
114.50
125

17
0.996
2

Low.

Low.

High.

4.72625
4.7545
549.50
638
22.70
47.25
32.40
29.40

4.7275
4.7550
547
637
23.38
49.50
33.75
30.75

4.72625
4.72625
4.7550
4.7545
546
548.25
035
637.5
22.65
20.45
46.75
42
31.80
28.25
28.75
26. 75

452

437

98.04
23
30.08
54.50
86 75
125

99.01
24
32.21
54.63
90
135

505

High.

462

99.01
25.00
30.17
54.75
87 75
135

97.09
23.50
25 30
54.35
80
124

1. 385
1.0 113

l.( )756
l.( )029

i Cable rates on New York.

October.

September.

1.C)85
1.0 113

Rate for a gold milreis.

Course of German exchange in neutral markets, January to October, 1918.
[From, the London Economist.}
Amsterdam Switzer- Copenhagen Stockholm Christiania
land
(florins for (francs for (crowns for (crowns for (crowns for
100 marks). 100 marks). 100 marks). 100 marks). 100 marks).
Exchange at par
January 2
January 30.
Febiuary 27 . ApriU
Mayl
May 29
June 27
July 4
July 11
July 18
July 25
August 1
August 9
August 15
August 21
August 29
September 6
September 13
September 20
September 27
October4
October 10
October 17
October 24

59.26

123.45

47.10
42.25
43.80
41.05
40.65
39.425
34.35
34.10
3 33.70
33.75
32.55
32.30
32.35
32.20
31.45
31.40
31.55
31.45
31.95
31.25
32.35
33.275
37.00
36.10

i 85.90
82.50
88.00
82.20
81.70
79.40
69.00
70.10
69.25
4 69.30
66.50
65.85
66.35
66.25
69.25
68.70
68.00
68.75
68.90
66.80
67.75
70.25
77.75
75.30

88.88
62.00
2 69.25
65.50
62.00
62.60
62.85
56.00
56.75
56.50
55.75
52.50
53.15
53.75
53.50
52.45
50.25
51.00
50.50
51.00
50.50
52.00
52.75
55.00
54.50

58.00
2 55.25
60.50
58.25
58.00
57.75
49.25
49.25
50.00
49.50
47.00
57.00
46.85
46.95
46.50
45.00
46.00
45.35
45.75
45.25
48.00
48.00
47.00
48.50

50.25
49.50
50.25
50.25
52.25
51.75
54.00
56.50

i December 29,1917.
«January 31,1918.
3 July 10,1918.
4 July 16,1918.
Monthly exchange rates in Switzerland on Berlin and Vienna for the period June, 1914, to June, 1918, are shown on page 838 of the September,
1918, Bulletin.




INDEX.
Page.

Acceptance liabilities of national banks and State
institutions
1114
Acceptances, banks granted authority to accept up
to 100 per cent of capital and surplus
1100
Bank transactions, reports of
1103-1106
Branch bank organized at Little Rock
1056
Business conditions throughout the Federal Reserve
districts
1125-1141
Capital issues, conditions in Sweden affecting
status of
.
1091
Certificates of indebtedness, amounts subscribed to
the seven issues preceding the fourth Liberty loan. 1147
Charters issued to national banks during the month. 1099
Charts showing war securities and loans supported
by such securities since Jan. 4, 1908
1112,1113
Check clearing and collection system, operation of.. 1161
Commercial failures reported
1099
Conservation of credit, statement of War Trade
Board relative to
1078
Currency, instructions relative to payment of expense incident to transfers of, to and from Federal
Reserve Banks
1093
Department of Agriculture, statement by R. L.
Nixon relative to cotton warehouse loans
1094-1098
Department of Commerce, study on "Economic reconstruction—Analysis of main tendencies in the
principal belligerent countries of Europe " . . 1086-1088
Directors of Federal Reserve Banks:
List of, whose terms expire on December 31,1918 1092
Reclassification of electoral groups in connection with election of
1055
Discount and interest rates prevailing in various
cities
1106-1108
Discount operations of Federal Reserve Banks 1142-1147
Discount rates in effect
1161
Division of Foreign Exchange, rulings by
1121
Earnings on investment of Federal Reserve Banks.. 1145
Examinations of State bank members, policy regarding
1
1079
Federal Reserve Banks:
learnings on investments oi
1145
Resources and liabilities
1148
Federal Reserve note accounts of Federal Reserve
Banks and agents
1151
Fiduciary powers:
National banks granted, during the month
1100
Press statement issued in connection with applications of national banks to exercise
fiduciary powers
1086
First National Bank of Boston, foreign banking
operations of
1079-1081
Foreign countries, war debts of
1057-1077
Foreign exchange rates:
Monthly ranges of exchange rates
1162
Course of German exchange in neutral markets. 1162
Gold, imports and export of
1159
Index numbers of wholesale prices
1100-1103
Informal rulings of the Board:
Paper covering sale of agricultural implements. 1118
Right to alter notes
1118
Applications for fiduciary powers under recent
amendment to act
1118
Fiduciary powers, necessary capital and surplus 1118
Acceptance of drafts by State member banks.. 1119
Reasonable time for holding draft after presentment
1119
Advertising *' clearing member "
1119
Drafts drawn for purpose of creating dollar
exchange
1119
Limit on rediscounts
1120
Purchase of "finance bills" by Federal Reserve
Banks
1120




Interest and discount rates prevailing in various
cities
1106-1108
Law department:
Reserves of foreign branches
1123
Reserve of banks in outlying districts of reserve
and central reserve cities
1124
Liberty bonds, list of lost and recovered
1115-1117
Member banks:
Amounts of United States war securities held
by
1109-1113
Statement showing condition of
1154-1158
Money, stock of, in the United States
1160
National banks:
Acceptance liabilities of, in principal cities of
the United States
1114
Charters issued to, during the month
1099
Condition of, as of August 31,1918
1093
Press statenient in connection with applications
for fiduciary powers
1086
Philippine National Bank, branches and agencies
of
1084-1086
Reserve requirements, changes in, letter of New
York Federal Reserve Bank regarding
1086
Resources and liabilities of Federal Reserve
Banks
1148
Review of the month:
The fourth Liberty loan
1045
Growth of public debts
1046
Source of inflation
1047
Importance of reserves
1049
Operations of the Federal Reserve Banks
1050
Condition of member banks
1051
Restriction of production
1052
Restriction of foreign trade
1053
Gold imports and exports
1054
The acceptance situation
1054
Election of directors
1054
New reserve requirements
1055
Difficulties in rediscounting
1055
Charges for collection
1056
New member of Federal Reserve Board
1056
Rulings of the Division of Foreign Exchange
1121
Silver, imports and exports of
1159
Spear, R. B., article by, regarding State bank membership in New England
1081-1084
State banks:
Admitted to system during the month
1098
Article by R. B. Spear, Assistant Federal Reserve Agent of Boston, relative to State bank
membership in New England
1081-1084
Policy regarding examinations of
1079
Statistical tables, elimination of certain, from Bulletin
1142
Strauss, Hon. Albert, appointed member of Federal
Reserve Board
1056
Swedish prices and capital problems
1091
Total bank transactions, report of
1103-1106
War debts of principal European countries
1057-1077
War securities, amounts of, held by member
banks
1109-1113
W7ar Finance Corporation, quarterly report of
1081
War Trade Board:
Curtailment of consumption of iron and steel by
the agricultural implement industry
1090
New rules for obtaining export licenses
1089
Statements relative to curtailment of less essential productive activities
1078
Warehouse act; situation as to cotton loans under,
as stated by R. L. Nixon, of the Department of
Commerce
1094-1098
Wheat, guaranteed price of, suggestions of Food
Administrator relative to
1088
Wholesale prices, monthly index of
1100-1103
i

o


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102