Full text of Federal Reserve Bulletin : November 1920
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
NOVEMBER, 1920
WASHINGTON
GOVERNMENT PRINTING OFFICE
1920
FEDERAL RESERVE BOARD.
EX OFPICIO MEMBERS.
DAVID F. HOUSTON,
Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.
W. W. HOXTON, Secretary.
W. L. EDDY, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
J. F. HERSON,
Chief, Division of Examination and Chief Federal
Reserve Examiner.
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
W. P. ,G. HARDING, Governor.
EDMUND PLATT, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
D. C. WILLS.
WALTER S. LOGAN, General Counsel.
R. G. EMERSON, Assistant to Governor.
H. PARKER WILLIS,
Director, Division of Analysis and Research.
M. JACOBSON, Statistician.
E. L. SMEAD,
Chief, Division of Reports and Statistics.
OFFICERS OF F E D E ! ^ RESERVE BANKS.
Federal Reserve Bank
of—
Boston
Deputy governor.
Governor.
Chairman.
Cashier.
C. C. Bullen
W. W. Paddock
J. H. Case2
L. F. Sailer
E. R. Kenzel
G. L. Harrison
Frederic H. Curtiss... Chas. A. Morss
l
W. Willett.
L. H. Hendricks.3
J. D. Higgins.3 3
Channing Rudd.
A. W. Gilbart.3 3
Leslie R. Rounds.
J. W. Jones.3
W. A. Dyer.
H. G. Davis.
New York
Pierre Jay
Benj. Strong
Philadelphia
Cleveland
R. L. Austin
L. B. Williams4
George W. Norris
E. R. Fancher
Richmond
Caldwell Hardy
George J. Seay
Wm. H. Hutt, jr
M. J. Fleming
Frank J. Zurlinden...
Geo. H. Keesee.
C. A. Peple
A. S. Johnstone 5
JohnS. Walden 5
L. C. Adelson
C. R. McKay
T>
XT T5vrkQr1/-1 -Ma
rt. ±1. JDroaacius
M. W. Bell.
S. B. Cramer.
Atlanta
Chicago
Joseph A. McCord
Wm. A. Heath
M. B. Wellborn
J. B. McDougal
St. Louis..
Minneapolis
Wm McC Martin
JohnH. Rich
D C Biggs
R. A. Young
0 M. Attebery
W. B. Geery
Kansas City
Dallas
San Francisco
Asa E. Ramsay
Wm. F. Ramsey
John Perrin
J. Z. Miller, jr
R. L. Van Zandt
J. U. Calkins
C. A. Worthington
Lynn P. Talley
Wm. A. Day
Ira Clerk e
C. H. Stewart 6
i On leave of absence.
2
Acting governor.
* Controller.
"R P M^Plrm/4 5
* Acting chairman.
Q a
J W. White
B. V. Moore.
r^^v
& Assistant to governor.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.
6
Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—
New York:
Buffalo branch
Cleveland:
Cincinnati branch...
Pittsburgh branch...
Richmond:
Baltimore branch...
Atlanta:
New Orleans branch.
Jacksonville branch.
Birmingham branch.
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch. . .
Memphis branch....
Little Rock branch..
Manager.
Ray M. Gidney.
L. W. Manning.
Geo. De Camp.
Morton M. Prentis.
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
R. B. Locke.
Federal Reserve Bank of—
Manager.
Kansas City:
Omaha branch
L. H. Earhart.
Denver branch
C. A. Burkhardt.
Oklahoma City branch. C. E. Daniel.
Dallas:
El Paso branch
Houston branch
W. C. Weiss.
E. F. Gossett.
San Francisco:
Los Angeles branch...
Portland branch
Salt Lake City branch.
Seattle branch
Spokane branch
C. J. Shepherd.
Frederick Greenwood.
R. B. Motherwell.
C. A. McLean.
W. L. Partner.
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN is the Board's medium of communication with
member banks of the Federal Reserve System and is the only official organ or periodical
publication of the Board. It is printed in two editions, of which the first contains the
regular official announcements, the national review of business conditions, and other
general matter, and is distributed without charge to the member banks of the Federal
Reserve System. Additional copies may be had at a subscription price of $1.50 per
annum.
The second edition contains detailed analyses of business conditions, special articles,
review of foreign banking, and complete statistics showing the condition of Federal
Reserve Banks. For th^s second edition the Board has fixed a subscription price of
$4 per annum to cover the cost of paper and printing. Single copies will be sold at
40 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board.
No complete sets of the BULLETIN for 1915, 1916, or 1917 are available.
TABLE OF CONTENTS.
Pagr.
Review of the month
Business, industry, and finance, October, 1920
Condition of wholesale trade
Production of knit goods
Production o? finished cotton fabrics
:
Report of the gold committee of the American Bankers' Association upon the McFadden gold bill
Terms of sale in the principal industries
Foreign exchange rates in New York on belligerent, neutral, and silver-standard countries
Economic and financial conditions in Cuba
The investment trust as a channel for investment abroad
Official:
State banks and trust companies admitted to system
Banks granted authority to accept up to 100 per cent of capital and surplus
Charters issued to national banks
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
:
Regulations of the Federal Reserve Board, series of 1920
Miscellaneous:
November crop report
:
Commercial failures reported
Statistical:
Retail trade index
;
Foreign trade index
Wholesale prices abroad
Wholesale prices in the United States
Discount and interest rates prevailing in various centers.
Physical volume of trade
Debits to individual account, September and October
Discount and open-market operations of the Federal Reserve Banks
Operations of the Federal Reserve clearing system
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account
Condition of member banks in selected cities
Imports and exports of gold and silver
Estimated stock of money in the United States
Earnings and dividends of State bank and trust company members
Discount rates approved by the Federal Reserve Board
Diagrams:
Foreign exchange rates on belligerent, neutral, and silver-standard countries
Wholesale prices in the United States
IV
1123
1135
1143
1145
1145
1147
1149
1158
1162
1168
1174
1175
1175
1174
1176
1179
1175
1175
1195
1197
1198
1210
1215
1216
1225
1228
1234
1235
1240
1241
1248
-... 1250
1251
1250
1159,1160
1212
FEDERAL RESERVE BULLETIN
VOL. 6
NOVEMBER, 1920.
REVIEW OF THE MONTH.
The situation in public finance during October has shown no striking deT
r
e
a
s
u
r
y
y
For the month as
r
e l O pments.
finance.
a whole total ordinary receipts
were $220,034,805, while total ordinary disbursements were $426,497,372, the deficit on
ordinary account being thus $206,462,567. On
October 18 it was announced that the total
amount of subscriptions received for the issue
of Treasury certificates of indebtedness dated
October 15 and maturing March 15 next was
$185,076,500, the total amount of subscriptions
allotted under this offering being $124,252,500.
Ten of the Federal Reserve districts oversubscribed their quota. An important survey of
the present situation in connection with the
public debt was given by the Secretary of the
Treasury in an address before the American
Bankers' Association on October 20, in which
he said:
"On the basis of daily Treasury statements,
the gross debt of the United States on August
31, 1919, was slightly over 26^ billion dollars,
of which nearly 4 billions represented loan
and tax certificates maturing within the year.
On September 30, 1920, the gross debt was
$24,087,000,000, a reduction of over 2\ billions,while the floating debt was $2,347,000,000,
or approximately $1,600,000,000 less than on
August 31, 1919. These reductions were effected chiefly by the application of the proceeds of taxation and salvage and were made
possible to some extent by the reductions of
Treasury balances effected as a result of reduced expenditure and the retirement of large
amounts of loan certificates. The Treasury
expects that further reductions in both gross
and floating debt will be shown at the end of
the current month and that by the close of the
current quarter there will be a much more substantial decrease. * * * Sound fiscal policy dictates that the receipts from taxes and
salvage be kept sufficiently high not only to
meet current bills, including interest and sink-
No. 11
ing-fund charges, but also to retire the floating
indebtedness and a considerable part of the
Victory notes before the close of the fiscal year
1923. Earlier plans and expectations were
disarranged by the unexpectedly large burdens
placed upon the Treasury by the transportation act. According to the estimates there
will be paid on account of the railroads during
the current fiscal year probably a billion dollars, of which one-quarter billion has already
been called for and paid. It is obvious that
these payments will limit the progress which
the Government had expected to make in the
retirement of the floating debt. It is expected,
however, that perhaps the heaviest payments
on this account will have been completed by
the spring of next year, and then for the remaining months of the fiscal year the Treasury
looks forward to a more rapid reduction of the
floating debt. By the end of the fiscal year, in
the absence of unforeseen contingencies, it will
probably be reduced below two billions and it
may be brought as low as a billion and a half.
The balance should be retired during the fiscal
year 1922. By the end of that year the Victory loan should have been reduced by perhaps
a half billion dollars as a result of sinking-fund
operations. The remainder, say, 3 | billions,
will then have become substantially a floating
debt, as it will mature during the following
fiscal year. Provision should be made, therefore, under proper Treasury regulations, for the
acceptance of Victory notes during the fiscal
year 1923, before maturity, in payment of income and profits taxes. In this way and
through sinking-fund operations it should be
possible to reduce the Victory loan so that at
maturity it would stand at approximately
three billions of dollars."
During the past few weeks the Federal Reserve Board has held its usual
Condition
of
,
-n
£
^
Reserve System, autumn conferences with, trie
Federal Advisory Council and
the chairmen and governors of Federal Reserve
Banks. The Federal Advisory Council met in
Washington on September 20-21, while conferences with Federal Reserve agents and governors of Federal Reserve Banks took place on
1123
1124
FEDERAL RESERVE BUTJiETIK.
October 13-15. At this series of conferences
much attention was devoted to credit conditions throughout the country, the reports made
to the Board showing that the process of converting relatively nonliquid credit secured by
Government obligations into liquid credit was
proceeding satisfactorily. During the period
from July 2 to October 15 the following changes
have occurred in some of the principal items
of Federal Reserve Banks.
[Amounts in thousands of dollars.)
[Increase or decrease indicated by + or — sign.]
District.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
No.
Advances secured by
Government
obligations.
Other
bills discounted and
purchased.
-31,718
-31,379
-21,514
-43, 507
- 2,988
+10, 289
+27, 768
- 8,829
+ 1,736
+
289
- 5,568
+ 3,339
1.
2.
3.
4.
5.
6.
7.
8.
9.
10
11
12
+20, 235
+48,163
+41,168
+86,459
+13, 510
-
834
+ 4,850
+13,711
+ 3,768
- 3,878
+ 7,131
+25,910
On the other hand, the following changes
have occurred during the period from July 2
to October 8 in the condition of the member
banks in 100 selected cities which report weekly
to the Board:
[Amounts in thousands of dollars.]
[Increase or decrease indicated by + or — sign.]
District.
No. 1
No. 2
No. 3
No. 4
No. 5
No. 6
No. 7
No. 8
No. 9
No. 10
No. 11
No.12
Loans secured by
Loans and
bonds,
Bills
payable
investments,
stocks,
etc.
and bills re- (exclusive
including
discounted
Net
demand
rediscounts
of
loans
with Federal secured by
deposits.
with Federal
Reserve
Reserve
United
Banks.
Banks.
States
war obligations).
+ 17,182 - 11,352
+119,233 -270,047
- 5,405 + 15,358
+ 39,874 + 55,370
16,307 + 7,219
+ 23,476 - 14,411
- 4,572 - 23,287
+ 1,429 - 5,427
+ 4,490 - 19,920
+ 14,122 - 25,787
+ 21,205 + 5,152
+ 16,201 + 13,171
+
+
+
+
+
+
+
+
+
8,550 + 2,487
151,437 -23,114
34,650 +11,692
39,479 -10,904
2,335 + 3,499
31,594 + 1,608
16,432 -16,891
12,592 - 1,729
238
9,621 +
17,025 + 1,467
14,779 + 1,230
20,146 + 2,102
NOVEMBER, 1920.
During the past month the Federal Reserve
Board has heard statements
The credit situfrom
representatives of farmation.
ers' organizations relative to
the general condition of credit and the volume
of it available for the moving of crops. After
canvassing the whole situation thoroughly the
Board on October 16 issued a statement to the
press, in which it stated the situation as follows :
In view of the representations which have
recently been made to the Board as to the unavailability of credit in agricultural sections,
the Board requested information concerning
credit conditions throughout the country from
the chairmen and governors of Federal Reserve
Banks at their usual autumn conference here
this week. The Board is advised that credit
has been steadily available for the successive
seasonal requirements of agriculture, as well as
for the needs of commerce and industry, and
that there is no ground for expecting that its
availability for these purposes will not continue.
The present improved credit situation is due in
part to the timely steps taken last spring, following conferences between the Board and governors and directors of Federal Reserve Banks
to provide credit for crop-moving requirements,
and in part to the subsequent improvement in
transportation reported from all districts, except in a few localities.
JBetween January 2 and October 1 of the
present year about 800 leading member banks
irom all sections of the country, which report
their condition to the Board weekly and which
represent approximately 70 per cent of member
bank resources, have increased their loans for
agricultural, industrial, and commercial purposes by an amount exceeding $1,800,000,000.
This great increase in the credit extended to
their customers has in the main been made
possible by the accommodation extended member banks by the Federal Reserve Banks.
During the same period the twelve Federal
Reserve Banks have increased their holdings
of agricultural and commercial paper by more
than $500,000,000, and from January 23 to
October 1, 1920, increased their issues of Federal Reserve notes by over $460,000,000. At
the same time Federal Reserve Banks having
surplus funds have extended accommodation to
Federal Reserve Banks in agricultural and livestock districts by means of discounts, aggregating on October 1 over $225,000,000.
The disturbances in price and demand which
have recently manifested themselves in markets for various agricultural and other commodities, not only in the United States but in
other countries as well, are inevitable and un-
NOVEMBER, 1920.
FEDERAL RESERVE BIT
avoidable consequences of the economic derangements occasioned by the World War. The
United States continues to have a heavy
volume of exports, although foreign demand for
certain agricultural staples has somewhat decreased. But the chief market for our raw and
manufactured products is at home, and our
present huge crops of immense value may be
expected gradually and in regular course to
move from producers to consumers. The recent census, reckoning our population at 105,000,000, emphasizes anew our own capacity as
consumers, irrespective of the demands of other
countries.
An important feature of the meeting of the
„ , American Bankers Association,7
. American Bank- , . ,
, . „
, .
,
ers Association. w m c h occurred m Washington
on October 19-25, was the
statement contained in the address of the
Secretary of the Treasury already referred to,
in which he outlined the general position
assumed by the department in conjunction
with the Federal Reserve Board with reference
to the extension of credit for the accommodation of various branches of industry. On
this subject the Secretary said:
"The Treasury has no money to lend and no
money to deposit except for Government purposes. It is not in the banking business and
should not be. It is borrowing money periodically to meet current obligations in the intervals between large tax payments, at a cost of
about 6 per cent. On several occasions before
the Federal Reserve System was instituted the
Secretary of the Treasury, at a time when the
Treasury had a surplus, did deposit small sums
of money in banks in various sections of the
country to meet emergencies; but this necessity
is obviated by reason of the existence and practices of the Federal Reserve System, and it is
interesting to note that at this time Reserve
Banks in certain sections of the country are
rediscounting for banks in crop-moving sections approximately six times as much as was
ever deposited for crop-moving purposes by the
Secretary of the Treasury. * * * From
the member and nonmember banks of the
Nation, aided by the wise action of the Federal
Reserve Banks, must relief be sought and furnished. The Federal Reserve Board can not
furnish it. It has no lending power and no
money to lend. It is a supervisory body and
not a bank. The Federal Reserve Banks have
no money to lend to individuals, but can assist
in the creation of credit through the rediscount
of eligible paper from banks. Neither the
Board nor the Reserve Bank has any discretion
1125
JETIN.
as to the loans which member or nonmenber
banks may make or decline to make, or the
rates at which they extend their accommodation to customers. * * * All the authorities of the Federal Reserve System, including
the member banks, have a keen and sympathetic appreciation of the difficult problem.
They will, in my judgment, do everything in
their power to promote the orderly distribution
of products, and I believe that they will succeed,'although not to the satisfaction of every
individual. Facts widely published and well
known to you evidence this disposition and
they refute the assertion that there has been a
contraction of credits."
The substantial agricultural yields which
had been forecast at the openProduction and
ing of October have been in
trade.
process of realization in most
parts of the country. Business in most sections has continued upon a fairly active basis,
although there has been in some parts of the
country and in sundry lines of manufacturing
industry a sporadic shrinkage or change in
the volume of production. The Board's production statistics for the month show the
following results:
Aug., 1920.
Receipts of live stock
at 15 western markets (in thousands
of head)
Receipts of grain at
17 interior centers
(in thousands of
bushels)
Sight receipts of cotton (in thousands
of bales)
Shipments of lumber'
reported by 3 associations (in millions
of feet)
Bituminous coal production (in thousands of short tons).
Anthracite coal production (in thousands of short tons).
Crude petroleum production (in thousands of barrels)
Pig iron production
(in thousands of
long tons)
Steel ingot production (in thousands
of long tons)
Cotton consumption
(in thousands of
bales)
Wool consumption
(in thousands of
pounds)
Sept., 1920.
Total.
Relative.
Total.
Relative.
5,022
76.6
5,266
80.3
89,807
72.6 110,111
Sept., 1919.
Total. Relative.
6,555
100
89.0 123,682
100
305
48.2
762
120.4
633
100
784
101.4
716
92.6
773
100
48,389
102.1
51,093
107.8
47,402
100
7,332
100.0
5,125
69.9
7,333
100
39,397
117.0
37,845
112.4
33,667
100
3,147
126.5
3,129
125.8
2,488
100
3,000
3,000
483
98.4
458
93.3
491
100
32,850
62.0
30,928
58.4
52,986
100
With respect to retail trade conditions, the
monthly tabulations, published elsewhere in
1126
F E D E R A L RESERVE TUTT,T,WTTTTt
this issue, show that demand has been tolerably maintained. This reflects the large production of primary wealth growing out of the
heavy crop yield in nearly all parts of the
country. While it is true that in some parts
of the country there has been a retardation of
the movement of crops to market, partly due
to the continuation of rather unsatisfactory
transportation conditions and partly to the
disposition on the part of some groups of
producers to hold back their goods in the hope
of higher prices, these influences have been
sporadic and do not represent any general
check of the movement of goods to market.
On the contrary, as already noted, the transportation outlook has shown very decided
improvement, taking the country as a whole,
and the congestion of agricultural products in
warehouses at distributing points has in some
measure at least been reduced.
Business conditions during the month continued to exhibit a transitional
The
.. ,.
situation.
business
,
^n
•
xi
j«
aspect. Changes in the direc.
.
-I
.
-i
tion of production have already
been referred to. The employment index of
the Bureau of Labor shows a shifting of men
between industries, which indicates a redistribution of demand and leaves the net situation somewhat in doubt. In the steel trade,
despite some decline in unfilled orders, industrial leaders look forward to prosperous conditions and predict only a wholesome and reasonable readjustment. In other lines of trade
there is some uncertainty and maladjustment of
demand and supply. This situation is seen in
particular in the textile industry, where some
mills have either closed down or are working on
part-time schedule. In the agricultural regions, on the other hand, the large crop yields
have served to emphasize the problem of
marketing and have taken a position by
the side of the industrial situation in the
public mind. This process of industrial
and commercial readjustment is reflected in the relative decline of exportation.
Coupled with the comparative falling off in
exports there has also come a somewhat lessened necessity for transportation. On a
number of railroads there has been a reported
NOVEMBER,
1920.
decline in the number of men employed,
partly due to rearrangements and economies
of staff but partly also to a rather lower intensity of transportation demand. This situation
has, however, tended to further the process of
securing a better movement of freight and a
reduction of congestion on railways. Goods
have been shipped more steadily and in much
larger volume to points of destination, and
there is less accumulation of goods awaiting
shipment at the primary points of distribution. All of these factors have combined to
produce a better balance between production
and consumption and a more effective distribution of output both geographically and
between the varying branches of trade and
industry.
The factors which have made in an important
way for progress in readjustment during the
month of October have been seen in the investment market in a growing and considerably more active investment demand for
securities of all descriptions. One effect of
this demand has already been that of materially
advancing the quotations of Liberty bonds by
an average of about 1^- points during the month.
In corporate bonds the tendency toward advancing prices has been even more marked,
owing to the considerably larger demand for
them by individuals with savings which they
desire to place. Especially noteworthy has
been the advance in the price of railroad bonds,
some issues which previously sold upon an
exceptionally low basis of value being in special
request for investment purposes. Until recently there was also to be included among the
factors which have been tending to work
toward more normal conditions the approach
to a more normal relationship between the
home and foreign trade and .the equalization of
exports and imports in this country, coupled
with the growth of exporting power in other
countries. The British coal strike inaugurated
on October 18 and the troubles preceding it
constitute a notable movement of reaction
against the tendency toward improvement in
export power abroad and had the strike continued long would have gone far toward
neutralizing the improvement already gained.
FEDERAL RESERVE BUI^LETIF.
NOVEMBER, 1920.
The decline in the prices of building materials,
which has been in evidence in most parts of the
country and in many lines of production, should
tend to stimulate the resumption of building
operations upon a larger scale. Thus far, however, the actual issue of building permits has
not shown the effects of this influence.
The price movement during the month of
October has been of exceptional
p r k e s
t € r e s t
-
On
t h e whole
>
while
the price movement in the
United States has continued downward, it
would seem that in some foreign countries the
tendency toward reduction which had gained
ground during recent months had been checked.
The following table of index numbers continues
that previously furnished in the issue of August
for some of the principal countries.
Wholesale price indexes.
[Average prices 1913= 100.]
Sept.,
1919.
United States, Federal Reserve Board index
United Kingdom, Statist index .
France
Italy
Sweden..
....
Canada
Japan..
India
Australia -
211
.
252
360
370
319
223
257
200
185
Apr.,
1920.
263
313
584
679
354
261
300
200
217
May,
1920.
Aug.,
1920.
Sept.,
1920.
264
234
226
305
550
659
361
263
272
210
225
298
501
632
365
244
235
209
236
292
526
660
362
241
230
208
230
For September the Board's price index shows
a decline of 3.4 per cent, while that of Sauerbeck indicates a fall in British prices of 2 per
cent, that of the Economist pointing to a reduction of 1.3 per cent.
In studying agricultural prices it should be
noted that they show the effects of exceptionally large production or output in various
lines and that this exercises a special influence
in their case, which is hardly to be given the
same amount or kind of weight in dealing with
retail or wholesale prices of manufactured or
prepared goods. On the whole, however, the
price level has apparently approached a relaitvely greater degree of stability than it had
possessed during September, and to that extent
indicates a further progress toward a condition
of readjustment. The problem of complete
financial readjustment now centers around the
1127
placing of goods and accumulated stocks upon
a banking basis corresponding to the new level
of prices which has been established. It may
be expected that, as older accumulations are
disposed of and new goods at the revised price
levels take their places, a more normal situation will gradually develop.
During the month of August the favorable
trade balance of the United
S t a t e s fel1 t 0
situatkT
$65,000,000. By
some observers it was believed
that this reduction indicated a distinct turn
of the tide toward a more evenly balanced
relationship between export and import. September figures made public on October 26
now show that this expectation has been
disappointed. The exports in September
amounted to $605,000,000, against $579,000,000
in August of this year and $595,000,000 in
September of last year. For the nine months'
period ended with September, 1920, the exports were $6,081,000,000, as compared with
$5,867,000,000 for last year. The September
imports amounted to $364,000,000 against
$514,000,000 in August, 1920, and $435,000,000
in September, 1919. The pronounced drop of
over $150,000,000 in the imports of September
of this year as compared with August is accounted for to the extent of only about onetenth by diminished importations from Europe;
it is mainly accounted for by diminished importations from North America, Cuba, and
Asia, sugar alone accounting for almost fivetenths of the total decline noted, and rubber,
coffee, silk, and hides and skins for two-tenths.
The excess of merchandise exports over imports for September, 1920, was $242,000,000,
as against $65,000,000 for August, 1920, and
$160,000,000 for September, 1919. For the
nine months' period ended with September of
this year the imports were $4,358,000,000,
against $2,697,000,000 during the corresponding period last year. The imports of gold in
September amounted to $39,000,000 and exceeded those for August by $24,000,000. For
the nine months ended September of this year
the imports of gold amounted to $199,000,00,0
compared with $56,000,000 in the same period
of last year. Exports of gold during September totaled $17,000,000, while gold exports for
1128
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
the nine months ending September were paratively narrow limits and has shown little
$259,000,000, leaving a net balance of $60,- ability to gain ground, while the Continental
000,000 exported during the'period. Since the currencies have been almost continuously weak.
publication of the Board's estimate in Septem- The following table presents the situation of the
ber that there was a favorable unfunded bal- principal exchange quotations during the period
ance growing out of our post-armistice trade in question:
with the world at large, and amounting to
Week ending—
$3,000,000,000 or upward, other investigators
have pursued studies relating to the same subOct. 2,1920.
Oct. 9, 1920.
ject. Data for the precise determination of the
High. Low. High. Low.
balance are, as was explained in the BULLETIN
at the time, not likely to be fully available in
3.501
3.51|
3.48
the near future. This is due to the unavoid- England
6.74* 6!63|
6.70
6.64
France
4.201
4.121
3.89^
Italy
able presence of conjectural elements in any Spain
14.72
14.64
14!642 14.65
37.50
36.625
36.25
Argentina
36.00
such trade balance. It is, therefore, of interest China (Hongkong)..
76.00
75.00
72.75
75.50
107.00 106.00 104.00
100.00
China (Shanghai)...
to note that the other compilations to which Japan
51.125 51.125 51.125
51.00
(Yokohama)..
1.65
1.65
1.59
1.63
reference has just been made have afforded an Germany
16.07
16.02
16.00
Switzerland
15.97
20.20
20.00
19.85
Sweden (Stockholm)
19.80
even larger figure than that which was put for- Holland
31.125 30.9375 31.05
31.00
7.09J
7.08
7.03
ward in the September issue. A recent esti- Belgium
mate has placed the balance due to the United
Week ending—
States from the European countries alone at
not less than $3,500,000,000 and probably
Oct. 16,1920.
Oct. 23, 1920.
Oct. 30,1920.
nearly $300,000,000 more than that.
High. Low. High. Low. High.
Low.
The development of trade since these figures
and those of the Board previously published England
3.45J
3.46
3.401
3.48|
3.43i
6.51
6.481
6.40
6.46^
France
6.30
were prepared has shown a further growth in Italy
3.85J
3.75J
4! oo^ 3.91
3.77f
3.69J
14.24
14.36
14.10
14.08
Spain
14.50
13.65
the unfunded balance due to the United States Argentina
35.50
36.25
34.75
35.125
36.50
35.00
71.00
72.00
69.00
70.00
(Hongkong).. 73.50
69.50
from Europe, owing to the renewed exporta- China
96.00
97.00
94.00
94.00
China (Shanghai)... 101.00
94.00
51.125 51.00
51.00
Japan (Yokohama).. 51.125 51.00
50.875
tion of our agricultural and other staple pro- Germany
1.46
1.44
1.42i
1.44
1.55
1.301
15.79
15.87
15.74
15.88
15.94
15.64
ducts. The rate of this growth, until recently, Switzerland
19.80
19.55
19.55
19.42
Sweden (Stockholm) 19.65
19.30
30.875 30.65
30.65
30.875 30.85
30.36
was smaller than at any time since the armis- Holland
6.84
6.84
6.81*
6.84
Belgium
6.95i
6.67
tice, due to the larger volume of importations.
This does not alter the fact that a great body of
In the oriental field the important influence
obligations due to the United States is being of the month has been the decline in the price
carried upon the books of foreign banks and of silver, which has undoubtedly operated
business houses and that as a result the ex- powerfully to unsettle Eastern exchange quotachange situation will necessarily continue for a tions. As shown by the Eastern currencies
good while to come to be a subject of interest, which are cited in the foregoing table, the
while fluctuations in the exchanges may at any falling off has been practically continuous
time be severe because of the large unfunded throughout the month. With these quotabalance of indebtedness which overhangs the tions, however, may to advantage be compared
market. The influence of this condition of the price of silver on corresponding dates
affairs has been clearly seen in the sensitiveness during October, which may be presented as
of exchange during the past month or two, it follows:
Silver in New York.
being evident at times that an upward movement of quotations could not long maintain
Week e n d i n g High. Low.
itself because of the disposition of owners of
Cents. Cents.
foreign balances to dispose of them whenever October 2
93
914
9
improved conditions seem to offer a prospect of October
October 16
87
821
October 23
80|
76J
a better return. As a result sterling exchange October
30
801
791
has fluctuated during the month within com-
8
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
1129
In connection with the exchange situation, liquid capital. It was an international clearing
attention has been largely con- of obligations which, except in so far as actual
ng
gold moved from one country to another, left
i?
\
.
.x?"
centrated
upon
the settlement
French maturities. ,,
A i -^
i
i
matters
as they were before. In the opinion
oi the Anglo-French loan,
of
not
a
few capable students of the situation
amounting to $500,000,000, which fell due on
it
was
much
to be desired that this process of
October 15. This large settlement had apparsubstitution
or
mutual cancellation of credits
ently no direct effect upon the money market
might
have
been
brought about in a degree
of the month, because of the elaborate prepsufficient
to
avoid
any movement of specie.
arations which had been carefully made for
Be
this
as
it
may,
it
is undoubtedly true that
many weeks preceding on behalf both of the
the
preparation
for
meeting
the maturity of
British and of the French Governments. In
these
bonds
had
an
important
influence in
preparation for the settlement of the bonds
preventing
an
advance
in
sterling
and francs
the French Government placed in the New
in
the
New
York
market
which
otherwise
York market a loan of $100,000,000, while
might
have
occurred.
The
demand
for
dollars
there had been imported and deposited in the
which
originated
with
the
British
and
French
Federal Reserve Bank during the preceding
weeks considerable quantities of gold. There Governments in order to provide funds for
remains of the $500,000,000 which was due a making the adjustment tended to further the
substantial sum which had to be provided for fall in the value of the pound sterling which
by the accumulation of dollar balances through had brought that currency down to a point
purchase of exchange or by the sale of securities but little higher than $3.40.
The financial conference, including representin the American market. I t is around the
atives of some forty nations,
latter point that much of the interest involved
The Brussels
which convened at Brussels on
in this transaction centers. When analyzed conference.
September 22 and the following
it appears that the operation amounted largely
to a mere shifting of credits. American inves- days, and which continued its activity with
tors who previously held bonds of the Anglo- intervals up to October 9, resulted in a
French loan surrendered these bonds and thorough canvassing of the general financial
received in exchange new bonds issued by the and banking situation as it exists in the prinFrench Government or else were paid in cash cipal countries of Europe at the present time.
realized by the debtor Governments under the The work of the conference clearly showed that
loan, or from the sales in our market of stocks there is no general remedy which can be apand bonds of American corporations which had plied to the solution of foreign exchange probhitherto been held by their nationals. The lems at the present moment, but that, as has
rearrangement of obligations resulting from been believed by most persons, the eventual
this method of settlement amounted in one adjustment of existing conditions will be atsense to a "cancellation" of debt directly tained only through the slow process of saving
owed by the British and French Governments and reinvesting capital. I t probably accomto American citizens through the medium of a plished all that could reasonably be expected,
change in ownership which resulted in can- since it made a beginning of harmonious disceling the debt owed by American citizens cussion and cooperation between the nations
and American enterprises to English and concerned. As concrete suggestions, however,
French investors. The absorption of these the conference recommended consideration of
obligations by American investors, however, the pooling of the gold and credit resources of
amounted to a demand upon this market for the participating countries in a general fund
an equivalent amount of capital which would whose resources shall be used in effecting the
have been rendered available here had the exchanges upon some common basis or unit of
loan been paid in some other form. The pay- interchange, while valuable detailed suggestions
ment of the loan by means of such a redistri- are made as to uniformity in bills of exchange,
bution of claims was thus to be viewed as an reciprocity of treatment in regard to branch
indirect or potential draft upon our supply of banks in different countries, and a variety of
1130
FEDERAL RESERVE BULLETIN.
others. So far as immediate action is concerned, the conference thus results chiefly in
the recommendation that as soon as possible a
body of competent business men shall be convened to discuss on behalf of the participating
nations the conditions under which the suggested plan of central organization or "pooling" may be put into operation. What could
be done with reference to such a suggestion
would doubtless depend in no small degree on
the form in which it might be presented and
the character of the details with which it was
worked out. Although the Brussels conference
has thus laid the foundation for future discussion, it has apparently done little more than
that. The United States was not officially
represented at the conference, but it was in
touch with the work undertaken there through
an unofficial representative, Mr. Roland W.
Boyden, who presented the views of the United
States at one or two sessions. In so doing Mr.
Boyden called attention to the principles laid
down in the letter which Secretary of the
Treasury Glass issued in February, 1919, outlining the policy of the United States with
respect to further advances to European
countries.
In closing, the conference adopted a resolution which, as reported by cable, sketches the
general credit situation and recommends the
adoption of a plan for the extension on an
international basis of a system guaranteeing
credits for exports. This was in accord with
the recommendation of the committee on
credits. The committee also favored plans
whereby raw materials in process of being
worked up into completed products would
serve as security for advances either by the
banker or exporter, the proceeds of the sale of
the manufactured article going first to the
repayment of the credit.
"Realization of this system," says the resolution, "has met with serious obstacles in
many countries by reason of the absence of
legislation adequately protecting the exporter
during the stages of import, manufacture, reexport, and sale. The committee recommends
that the council of the league draw attention
of the various governments to this question
and that it intrust to a committee of legal and
business experts the task of proposing legisla-
NOVEMBER, 1920.
tive measures suitable for attaining the end in
view in each of the countries interested.'7
The committee on international credits also
states that' 'the outstanding financial questions
resulting from the war must be made the subject of definite settlement and put into execution. Finances can be restored, but the revival
of credits requires these primary conditions—
the restoration of order in public finances,
purging of. currencies, and freedom of commercial transactions."
The conference, however, has been of very
considerable interest as affordforeconfetJT i n S a f o r u m o f discussion and
thus as tending to analyze and
rectify the ideas of those in attendance. Of
the many and various proposals brought before
the organization four general groups stand
out prominently. Of these the first is represented and characterized by the proposal of
M. Delacroix, Belgian Prime Minister and Minister of Finance, for the establishment of an
international bank. Such a bank would be
designed to promote the international development of credit. On presenting it, M. Delacroix
"* * * it is urgent, indeed essential, to
set up an international bank of issue, in which
all States, without distinction, would be represented, and which would be managed by a committee consisting of a number of delegates.
The objects of this bank would be to issue
interest-bearing gold bonds in exchange for
genuine securities. The committee 01 this
bank would decide in each case whether the
securities offered were satisfactory; only after
thorough investigation of the proposed guarantees would it consent to issue to any State
requesting a loan, bonds to the value of these
securities. The guarantees would involve, in
certain cases, a direct control over the yield
obtained from the securities.
" The situation is so critical in certain parts
of Europe that common humanity calls for
intervention and for loans to prevent the populations dying of want. Yet these countries in
nearly every case still possess resources which
they can not immediately make use of.
"The bank of issue would give them the
means of using these assets, during a period to
be defined, and would permit them to obtain
at once the funds necessary to buy essential
supplies.
"There are some States, especially in Europe,
whose financial resources are at an end, but
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
who, nevertheless, possess considerable natural
wealth. The international bank, by means of
the financial control which it would introduce,
would be the means of saving them from ruin."
A second group of plans before the conference
.
had for object the establishment
credit 1On
°^ a s t e a ( ty fl°w °f capital and
business credit into the European
nations most seriously embarrassed and injured
by the war. Of these probably the best representative was the plan of Herr Meinl, put
forward especially for the purpose of restoring business in Austria, although the same machinery would hold good for other nations if
desired. This plan contemplated the organization of an international syndicate for the purpose of building up trade.
sion States are reestablished, and this can only
be brought about by a powerful combine which
can hold out the bait of a certain supply of raw
materials, on the condition that all restrictions
which might prejudice the successful working of
the business be removed."
"The business of the syndicate would be
confined to that of investigating, organizing,
and controlling the transactions entered into
by the participants. It would be empowered
by the participants to act as security holder
in much the same way as a local agent or banker
acted formerly, only in this case it would represent the joint and several interests of all the
participants. The latter might either take the
initiative themselves in entering into transactions or leave it to the syndicate to make proposals and recommendations.
"The object of combining the representation
of these interests into one agency is (1) to secure
greater authority in negotiating with the various
(governments and business groups in Austria;
(2) to insure the cooperation of prewar creditors with the new interests. This is most important, and satisfactory arrangements for the
settlement of these debts would be an essential
preliminary to any new business.
"The participants in the syndicate will be
free to accept or refuse any proposed business,
and if they accept they may do so on any lines
they choose and not only on those recommended
by the syndicate, but in order to secure for the
syndicate the necessary authority in conducting
negotiations, it would be desirable that participants should intrust the syndicate with the
widest possible powers to act on their behalf.
"The participants would make their own
financial arrangements, as it is not proposed that
the syndicate should have a large capital such
as would be required for the giving of credits.
The capital of the syndicate would be limited to
what is required for the expenses of management.
" The economic revival of the countries of the
former dual monarchy is only possible if economic union and free traffic between the succes-
(1) Countries desiring to join the International Currency Stabilization Association
(International Valuta Association "Iva")> •
adopt the " I v a " unit of currency standard.
(2) The monetary systems of the Iva countries remain national, but are based on unified
principles, valid in all circumstances and for all
stages of development.
(3) This unified national currency policy removes the chief cause of disturbances in the
balance of trade and of the resulting fluctuations of the exchanges.
(4) Small disturbances in the balance of
trade, caused, for instance, by the varying
yield of harvests, are still possible.
(5) To eliminate completely the effect of
these disturbances upon the exchanges, a
special international note is issued, guaranteed
by all the Iva States, which is imported and
exported without hindrance by all the countries of the Association and is recognized by
them as legal tender at par with the national
currency.
(6) This international note is issued at a
center—the Iva Office at Berne—to the countries of the Association and under their supervision. . The notes are issued free of cost, except
for the expense of printing and administration.
(7) The quantity of Iva notes is determined
solely by their regulating effect upon the exchanges, about 20 per cent of the national
issues being required for this purpose.
Third among the general groups of plans
offered are to be classed the various
Control of
schemes for an international conexchange.
trol and organization of exchange.
One of the representative examples of such
a plan for exchange control is seen in the
proposal for an "International Valuta Association" put forward by the Swiss League for
Free Economy. According to this the chief
elements in the plan for a uniform standard of
value would be as follows:
Finally, there was before the conference a
group of proposals based on the
Guarantee ^
^ ft g U a r a n t e e d international
loan. The suggestion oi M.
TerMeulen, of Holland, was possibly the most
interesting of the proposals in this group.
1132
FEDERAL RESERVE BULLETIH.
M. TerMeulen recommended that any government whose citizens have found themselves
unable, because of disturbed economic conditions, to get raw material on personal credit
may segregate certain assets or revenues and
that against these such a government may issue
bonds. These bonds would then be given to
the citizens who had put up the security for use
as collateral in obtaining credit for importation
of goods. Such transactions would be required
to meet the approval of the government concerned, while all such transactions would be
approved by a central commission acting under
the direction of the League of Nations.
One set of facts developed at the Brussels
conference which has thrown
situation? financial valuable light upon the problem
of financial reconstruction m
Europe is seen in the statements filed by the
various countries with respect to their financial
position. The bulk of the information furnished was already common property, although
the Brussels conference succeeded in developing some information which is relatively new.
What chiefly stands out as a result of the
compilation of these data, however, is the depressed financial prospect and the condition
of inflation of currency and credit which prevails approximately throughout Europe to-day.
It would appear from the figures made available at the conference that expenditures for
military and naval purposes are still on a high
level and that in some countries at least the
development of a system of taxation which is
adequate to take care of the present volume
of expenditures has not proceeded very far.
In these circumstances it seems doubtful
whether the immediate future of European
finance and banking is likely to result in very
decided progress, least of all in the development of a condition of affairs that will permit
the early settlement or adjustment, much less
cancellation, of any considerable fraction of
the indebtedness now outstanding. The plan
to have Great Britain cancel its claims upon
France, while the United States in turn cancels
an equal amount of claims upon Great Britain
and accepts in lieu thereof a share in the
German indemnity, was not officially proposed
but evidently reappeared as an element in
the discussions, at least unofficially. In this
NOVEMBEB, 1 9 2 0 .
aspect the Brussels conference has merely resulted in a new demonstration that far greater
effort to equalize budgets and to develop a
system of taxation that will provide for meeting expenditures will be essential as a condition
of financial settlement prior to the adoption
of any international plan either of currency
issue or of refunding. It is worthy of note,
also, that the conference was greatly handicapped from the very start by the fact that
there had been no earlier attempt to fix the
amount and terms of the German indemnity.
There was on the whole throughout the Brussels conference a more general recognition than
might have been expected of the fact that the
United States can not finance the whole world
and that the various countries must first of all
help themselves.
During the month ending October 10 the
net inward movement of gold
811 6 w a s
mo^emente. ' '
$56,503,000, as compared
with a net outward movement
of $9,342,000 for the month ending September 10. Net imports of gold since August 1,
1914, were $753,710,000, as may be seen from
the following exhibit:
[In thousands of dollars.]
Imports.
Aug. 1 to Dec.31 1914
Jan. 1 to Dec.31. 1915
Jan. 1 to Dec.31, 1916.
Jan. 1 to Dec.31, 1917
Jan. 1 to Dec.31, 1918
Jan. 1 to Dec.31, 1919
Jan. 1 to Oct. 10, 1920
Total
1
.
.
Exports.
Excess of
imports
over
exports.
1
23,253
451,955
685,745
553,713
61,950
76,534
238,715
104,972
31,426
155,793
372,171
40,848
368,185
264,760
81,719
420,529
529,952
181,542
21,102
1291,651
126,045
2,091,865
1,338,155
753,710
Excess of exports over imports.
England furnished $51,161,000, or over 70
per cent, and France $14,843,000 of the
$72,981,000 of gold imported during the
monthly period ending October 10; Argentina,
Russia in Europe, Canada, and Colombia
furnishing most of the remainder. Of the
gold exports, amounting to $16,478,000, over
one-half, or $8,398,000, was consigned to
Japan, $5,000,000 to China, $1,439,000 to
Hongkong, and the remainder principally to
Mexico and Canada. Since the removal of
the gold embargo on June 9, 1919, total gold
FEDERAL BESERVE BULLETIN".
NOVEMBER, 1920.
exports have amounted to approximately
$618,556,000. Of this total, $146,555,000 was
consigned to Argentina, $146,465,000 to
Japan, $68,728,000 to Hongkong, $64,396,000
to China, $40,804,000 to British India, $29,778,000 to Spain, and the remainder principally
to Mexico, Uruguay, the Dutch East Indies,
the Straits Settlements, Canada, and Venezuela.
During the same monthly period the net
inward movement of silver was $1,308,000,
as compared with a net outward movement of
$1,765,000 for the month ending September 10.
Net exports of silver since August 1, 1914,
were $454,289,000, as may be seen from the
following exhibit:
[In thousands of dollars.]
Excess of
Imports. Exports. exports
over
imports.
Aug. 1 to Dec. 31, 1914
Jan. 1 to Dec. 31, 1915
Jan. 1 to Dec. 31, 1916
Jan. 1 to Dec. 31, 1917
Jan. 1 to Dec. 31,1918
Jan. 1 to Dec. 31,1919
Jan. 1 to Oct. 10,1920
Total
:
12,129
34,484
32,263
53,340
71,376
89,410
75,211
22,182
53,599
70,595
84,131
252,846
239,021
100,128
10,053
19,115
38,332
30,791
181,470
149,611
24,917
368,213
822,502
454,289
Mexico furnished $4,395,000, or about 68
per cent, of the $6,477,000 of silver imported
during the monthly period ending October 10,
most of the remainder coming from Peru,
Chile, Canada, and Honduras. Of the silver
exports, amounting to $5,169,000, about twothirds, or $3,434,000, was consigned to China,
and the remainder principally to Hongkong,
Japan, Cuba, Canada, and Mexico.
Continued loan expansion, accompanied by
a more than commensurate inbanking c r e a s e i n
situat?on
borrowings from the
Federal Reserve Banks, is indicated by the weekly condition statements of
about 820 member banks in leading cities.
Holdings of United States bonds and Victory
notes show but nominal changes, while those
of Treasury certificates declined by about
54 millions between September 17 and October
15, notwithstanding the considerable increase in
this item shown on the latter date. A notable
development during the period is the increase
by 123 millions in loans supported by corporate
1133
securities—apparently the result of the calling
of street loans in anticipation of the redemption of the Anglo-French bonds by the fiscal
agents of the respective Governments and the
assumption of a large portion of these loans by
reporting members in Boston and New York
City. Loans secured by Government war
obligations declined by about 32 millions, while
other loans and investments, composed largely
of commercial loans and discounts, show an
increase of 191 millions. In consequence of the
above changes, loans and investments of all
reporting institutions on October 15 were
226 millions larger than four weeks before, the
corresponding increase for the New York City
memberbanks being 92 millions. Accommodation of reporting member banks at the Federal
Reserve Banks shows an increase for the period
from 1,972 millions to 2,249 millions, representing 11.6 and 13 per cent, respectively, of
the banks' total loans and investments. For the
member banks in New York City an increase
in this ratio from 11.7 to 14.6 per cent is noted.
For the four weeks between September 24
and October 22 the Federal Reserve Banks
report a decrease of over 21 millions in their
holdings of bills secured by United States war
obligations and Treasury certificates (so-called
war paper) and an increase of 66 millions in
the holdings of other discounted paper, the
share of war paper in the total discounts held
showing, in consequence, a further decline to
less than 44 per cent. Holdings of acceptances
purchased in open market declined by 7 millions, while Treasury certificates on hand show
an increase from 271 millions on September 24
to 302 millions on October 15, when six of the
Federal Reserve Banks held 26 millions of
special certificates to cover temporary advances
to the Government. By the following Friday
the amount of such special certificates had declined to 10 millions held by four Federal
Reserve Banks, while the total amount of
Treasury certificates held by the Federal Reserve Banks had declined to 281 millions.
Interbank discounting shows further growth
in volume, the total of paper held under discount for other Federal Reserve Banks showing an increase from 226.9 to 243.1 millions,
reported by the Boston, Philadelphia, and
Cleveland banks. The latter bank on October
1134
RESERVE BULLETIN.
22 reports a total of 137.9 millions of paper
discounted for other Federal Reserve Banks,
compared with 79.3 millions of paper held
under discount for its own members, while
over 40 per cent of the Boston bank's discounts
carried on the same date was for other Federal
Reserve Banks. At the close of the period
under review the list of accommodated Federal Reserve Banks includes, besides the seven
banks in the South and Middle West shown,
the month before, also the New York bank.
Interbank accommodation through the purchase of acceptances is reported by the Boston,
Philadelphia, and San Francisco banks, their
aggregate holdings of such paper on October
22 being 24.3 millions, all acquired from the
New York bank.
Net deposits increased from 1,658 millions on
September 24 to 1,710 millions on October 8,
but declined to 1,624 millions during the following two weeks. Federal Reserve note circulation shows a further expansion during
the four weeks from 3,280 millions to 3,356
millions, or at an average weekly rate of over 19
millions, substantial increases in the circulation
reported by the New York and Atlanta banks
being due partly to shipments to Cuba of newly issued notes.
The amount of gold held with foreign agencies
shows a decline for the period from 111.5 to
80.4 millions, as a result of physical transfer
to the Federal Reserve Banks of part of the
gold held earmarked for them by the Bank of
NOVEMBER, 1920.
England since September of last year. Total
gold reserves show a gain for the period of 4.8
millions, while total cash reserves show a
slightly larger gain of 5.7 millions.
The banks' reserve ratio declined almost continuously, from 43.6 per cent on September
24 to 42.7 per cent on October 15. On the
following Friday, largely because of the liquidation in some volume of bills and Treasury
certificates and a corresponding reduction in
deposit liabilities, the ratio shows a rise to 43.3
per cent.
The Federal Reserve Board, on October 14,
made the following announcePersonnel.
ment of changes in its staff:
Mr. W. T. Chapman, secretary, has resigned,
effective November 1, 1920. Mr. W. W. Hoxton, executive secretary of the Board, has
been appointed secretary, effective November
1, 1920, and has been designated acting secretary for the period October 16 to November 1.
Mr. R. G. Emerson, assistant secretary of the
Board, has been appointed assistant to the
governor, effective October 16, 1920. Mr.
Walter L. Eddy has been appointed assistant
secretary of the Board, effective October 16,
1920. Mr. James F. Herson, chief Federal
reserve examiner of the Board, has been appointed chief of the Division of Examination,
succeeding Mr. W. W. Paddock, resigned. Mr.
Herson will have the dual titles of chief Federal reserve examiner and chief of the Division of Examination.
NOVEMBEK, 1920.
FEDERAL EESEEVE BULLETIN.
1135
BUSINESS, INDUSTRY, AND FINANCE, OCTOBER, 1920.
October has been a month of continued
transition in business. Economic and business
readjustment, which has been much in evidence
in recent months, is still in process. The factors involved in the present readjustment
process are essentially the same as those which
have been, observed and noted in the past in
periods of acute transition, and include, conspicuously, price changes, uncertainty regarding future market conditions, and slackening
or suspension of activity in important lines of
industry. In a national survey of conditions,
however, it may fairly be said that the economic and business situation in the United
States is showing much inherent strength and
an ability to attain a position of relative stability through an orderly transition. Considering the industrial dislocations, the commercial disorganization, and the financial derangements occasioned by the Great War
everywhere throughout the world in one degree
or another, recovery and restoration are proceeding; apace in the United States, and the
natural forces in evidence which make for
stabilization carry assurance for the future.
Price revisions in textile lines and in other
branches of wearing apparel, as well as in
numerous staple commodities, have been the
outstanding elements in the situation, just as
during the preceding month. Caution in buying, due to a belief that price readjustment is
not yet complete, has been a noteworthy
factor, and in some quarters has tended to
slow down the activity of retail trade, although
more apparent in wholesale trade. Crop
yields have on the whole justified the expectations expressed at the opening of the month.
Banking reserves have held their own during
the month jtnd there has been a steady improvement in the liquidity of paper. Labor is
less fully employed. Notwithstanding some
sporadic cuts in wages here and there the general position is about as good as it has been so
far as actual payments or rates of wages are
concerned.
In district No. 1 (Boston) there is some curtailment of production due to the uncertainty
of prices, mills in various cases maintaining
their lessened schedule of hours. Nevertheless there is a general undercurrent of conviction that present conditions are temporary.
District No. 2 (New York) reports improvement in investment outlook, enlargement of
sayings deposits, advance in Liberty bond
prices, a broader bill market, better new
financing, slow expansion in demand for stocks,
decline in many exports, lower prices, and a
tendency to recession in employment.
District No. 3 (Philadelphia) states that
there is a diminution in demand for goods and
that little new business is being booked.
Fluctuation of prices has interfered with the
restoration of stable business conditions.
District No. 5 (Richmond) states that the
price recession movement has broadened and
that, due to this situation and its extension to
farm products, there has been some hesitation
in business.
In district No. 6 (Atlanta) there is active
retail trade, but the crop outlook has become
less favorable for certain products, while variation in lumber prices has been reduced to a
minimum and coal and iron are somewhat
harassed by strike conditions.
In district No. 7 (Chicago) the business situation is still confused by countercurrents of
opinion, with buying somewhat restricted and
price readjustments presenting some problems
to be overcome by producers and traders.
District No. 8 (St. Louis) finds fundamental
conditions satisfactory, but in all lines there is
hesitancy in purchasing goods for future requirements. Uncertainty as to future prices
is the chief obstacle in the way of recovery.
In district No. 9 (Minneapolis) crops are
large, grain is moving steadily to market and
railroad efficiency has improved, but there have
been declines in copper and iron production,
in building permits, and in lumber output.
Crop-moving needs have required large note
issues.
In district No. 10 (Kansas City) price recessions and readjustments have been steady but
without serious disarrangements, while retail
trade and consumption are proceeding quietly
and the labor outlook is favorable. The coal
supply is somewhat larger.
In district No. 11 (Dallas) abundant confidence in underlying conditions and in the
future of trade are expressed, while the seasonal peak of credit has been passed. There
has been some shrinkage in wholesale trade,
but retail trade is larger, transportation is
better, and the labor outlook improved.
In district No. 12 (San Francisco) business
conditions indicate a period of transition.
Retail trade is stable, despite a waiting attitude among the public. Good crops have been
grown, but in the wool and cotton regions
there is dissatisfaction with prices, while lumber is in less demand than heretofore. Grain
markets have been sluggish and declining.
The agricultural situation may be characterized as one of large yields and falling prices
for the principal crops, accompanied by a
spirit of dissatisfaction among a large part of
1136
FEDERAL RESERVE BULLETIN.
the farming community, with a disposition
in many cases to hold crops rather than to sell
them at prevailing levels. The Government
estimate of corn production has been further
increased as of October 1 to 3,216,000,000
bushels, which is the largest crop on record.
Some increase in the yield of oats is indicated,
the estimate now being 1,444,000,000 bushels,
but a decrease in the case of spring wheat from
the September 1 estimate brought the figure
to 751,000,000 bushels, which is below the
1919 estimate. Threshing is in progress, and
seeding is well under way.
District No. 9 (Minneapolis) "has produced
the largest corn crop in its history/7 estimated
at over 260,000,000 bushels, and the forecast
of the oats crop, 28,000,000 bushels, is also
large, the combined crops thus being "a more
important factor in the agricultural prosperity
of the West than the total wheat, crop/' which
is estimated at only 148,000,000 bushels.
Conditions in general are reported as favorable
for fall plowing and seeding. In district No.
10 (Kansas City) most of the corn was mature
enough to escape any great damage from the
early frosts during the last week of September.
Seeding of winter wheat has progressed rapidly
under favorable weather and soil conditions.
Threshing of this year's winter wheat from the
stack is progressing slowly, while harvesting of
spring wheat w^as generally completed in Colorado and Wyoming, and threshing is in progress.
In district No. 7 (Chicago) "production has
been stimulated by the seasonable weather
that has prevailed everywhere, except in
southern Michigan." In district No. 4 (Cleveland) "the agricultural year has been very
favorable/' wheat being the only principal
crop below the average, but "there is rather a
strong undertone of dissatisfaction among
farmers at the present time over the price
situation." "Preliminary forecasts of good
crops" in district Nc. 12 (San Francisco)
"have been justified by the harvest, which is
now practically complete." Farmers have
been holding grain for better prices, while
buyers have been slow to accumulate stocks.
A decrease of 75,000,000 pounds from the
September 1 figure brings the October 1 estimate of tobacco production to 1,479,000,000
pounds. Prospects for the crop in district
r^o. 8 (St. Louis) are reported "fair" and
"there is less apprehension relative to yield
than to marketing conditions." The tobacco
crop in district No. 5 (Richmond) is estimated
at 22 to 36 per cent larger than last year's
yield. LOWT prices at the opening of the markets caused many farmers to show a strong
tendency to hold their crops, but prices advanced steadily during September and early
NOVEMBER,
1920.
October. It is stated that the best tobacco
is being purchased freely, but low grades are
not in demand.
The Government forecast on October 1 of the
yield of cotton for the country as a whole was
12,123,000 bales, as compared with a September 1 forecast of 12,783,000 bales. The
deterioration is stated to have been largely
the result of the activity of weevils and worms,
following "an unusually wet growin'g season,"
although in certain sections, such as Florida,
it is ascribed more largely to the adverse
weather conditions. In many sections there is
practically no top crop. Nevertheless, it is
reported from district No. 11 (Dallas) that
the "most of the new crop is much superior
in quality to last year's crop." Fifty-seven
of 76 Texas counties from which data were
obtained, representing 40 per cent of the estimated total production for the State, report
marked improvement in the quality of the
1920 crop. Very little of the early ginnings
were withheld from the market, but during
October the decline in the price of the staple
gave " a distinct check to the marketing movement." A goodly portion of the South Texas
crop was sold before the heavy decline in the
market. Picking has been practically completed in the southern tier of counties in the
district and in the central zone half has been
gathered, but in the northern tier the crop is
about 30 days late, and picking has only "just
fairly started." Little shortage of pickers
is reported. Picking is proceeding well in
most sections of districts Nos. 6 and 8 (Atlanta and St. Louis). In Mississippi "ginning
is slow and farmers generally are holding for
better prices." In district No. 8 the crop
"has moved slowly to date and at a sharp
reduction in prices." September cotton on
18 markets in North and South Carolina
brought about 7 cents less than- four weeks
previously, but cotton seed brought an average of $40 a ton as against $30 a month ago.
In connection with agricultural products,
however, interest at this season of the year now
centers more largely in the movement of crops
to market and the prices realized. Grain in
district No. 9 (Minneapolis) is "moving to
market more rapidly." It is estimated that
38J per cent of the new wheat crop in South
Dakota, 22 per cent in Montana; 21 per cent in
Minnesota, and 20 per cent in North Dakota
had moved from the farms by October 1, and
shipments from country elevators increased
because of better railroad conditions. "The
movement of grain from the Northwest," says
the Minneapolis report, "may best be measured
by combined grain receipts at Minneapolis and
Duluth. During September these were 37,-
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
336,975 bushels, or double those of August and
of September, 1919. These figures indicate
that there has been a very satisfactory movement of grain from the Northwest in the month
of September, and considering the fact that a
very large part of the Minneapolis receipts in
August and September, 1919, were made up of
southwestern winter wheat, the comparative
showing for the Northwestern States in the
total movement for the season since August 1
is exceptionally favorable. The wheat receipts
at Duluth from August 1 to September 30 included 7,564,084 bushels of durum, 2,150,606
bushels of spring wheat, and only 125,720 bushels of winter wheat. It is estimated that between 70 and 90 per cent of the durum wheat
produced in this country is exported to Europe.
In view of this fact, it is plain that the European demand has fixed the durum price, and
through the European demand for durum
wheat the price of spring wheat has also been
influenced. The continuous demand of the
European market for our products is one of the
most important factors for us to consider now
in connection with the agricultural and business
situation in the Northwest. As Europe is still
buying very largely with credit, the sale of
wheat will inevitably be affected by the degree
of success attending the purchase of European
securities in this country.'1
"The large production of all crops, the increased volume of grain receipts, and the difficulties attending the financing of European
credits in this country have all had their effect
in depressing the price of the grains. Price
changes for the month in grains and flour were
uniformly downward, as is shown in the following table:
September daily closing prices.
Sept. 30.
Aug. 31.
High.
Low.
Cash wheat, Mo.
1 dark northern. $2. 47 -«2. 57 $2. 68J-S2. 751 j$2.35^-$2. 45* $2.35i~$2. 45^
Cash corn, No. 3
yellow
1. 40 - 1. 42 I 1. 36 - 1. 40 | 1.02 - 1. 03 1. 02 - 1.03
Cash oats, No. 2
.61J- .63}| .61J- . 6 2fj .52J- . 63J . 52|- . 53f
white
Flour, Washburn
Crosby's Gold
Medal,98-pound
cotton sacks
12.15
12. 15
13. 50;
The grain markets in district No. 10 (Kansas
City) during September were '' erratic and unsettled because of wide sweeps in prices, in
which wheat, corn, and oats declined to the
lowest levels since the war." Due principally
to a disposition on the part of farmers, as a
result of the declines, to hold wheat, September wheat receipts at markets in the district were 10 per cent below August and 25 per
1137
cent below September, 1919. "Declines in
corn prices were no less 7remarkable than the
decline in wheat prices.' In district No. 11
(Dallas) September showed a heavy increased
wheat movement, and it was estimated that by
October 1, 71 per cent of the crop had been
marketed. Slow movement of crops is reported in most of the States of district No. 7
(Chicago). Very little small grain has been
moved in Iowa, while in Indiana restricted
transportation facilities and declining markets
are retarding the movement.
Flour production in district No. 9 (Minneapolis) during the four weeks ending September
25 was the same as during the four weeks ending
August 28, although only two-thirds of the
output a year ago. In district No. 10 (Kansas
City) t production during the same period was
likewise less than a year ago, although the
decline was only 25.9 per cent. The latter
district ascribes
the slowing down of milling
operations u largely to the general decline of
the wheat market late in September and at the
beginning of October.'7 Short patents made
from hard winter wheat were quoted on October 5 at Kansas City at $10.90 to $11.10 per
barrel, as against $12.60 to $12.75 on September 7.
Live-stock movements are well under the
heavy figures of last year, which were swelled
by the drought conditions then existing.
Receipts of cattle at 15 western markets during
September were 1,736,009 head, as compared
with 1,459,565 head during August and 1,871,042 head during September, 1919, the respective index numbers being 172, 145, and 186.
Receipts of sheep at the markets during
September were 1,893,312 head, corresponding
to an index number of 139, as compared with
1,688,719 head during August, corresponding
to an index number of 124, and 2,890,831 head
during September, 1919, corresponding to an
index number of 212. Receipts of hogs during
September amounted to 1,597,622 head, as
compared with 1,818,245 head during August
and 1,704,944 head during September, 1919,
the respective index numbers being 73, 83, and
78. "A seasonal increase in the movement of
grass cattle and continued relative scarcity of
corn feds" are reported from Kansas City.
Grass-fed cattle were anywhere from $1.50 to
$3 lower at Kansas City than at the close of
August. The movement of stockers and feeders to the country was the heaviest of the year,
and materially greater than a year ago. The
light receipt of hogs during September is
attributed by stock men in the district to the
large corn crop. Declines in cattle prices, as
well as in sheep and lambs, were reported
during September. In district No. 11 (Dallas)
1138
FEDERAL RESERVE BULLETIN.
there was a notable increase in the supply of
hogs. The cattle market was "weak and listless." Hogs and sheep were in brisk demand,
but at the close of the month the prices of the
former declined as a result of the drop in the
corn market. During September "there were
heavy runs of grass cattle of mediocre quality," at St. Paul, stockers and feeders moved
to the country in large numbers early in the
month but later decreased, and prices as compared with August "exhibited mixed tendencies." Range and pasture conditions in district No. 10 (Kansas City) " are generally excellent for this season of the year," and all live
stock is reported in favorable condition.
There has, however, been some deterioration
in range conditions in certain parts of district No. 11 (Dallas) due to continued dry
weather, but on the whole stock men in the
district "are well equipped to carry their
cattle through the winter, having, as a rule,
an adequate supply of stock water and an
abundance of teed." Live-stock men in
district No. 12 (San Francisco) "have experienced an unsatisfactory year," and there
has been a tendency to decrease the supply
of stockers, but "some movement in the opposite direction is now evident, with cheaper
feed in prospect."
In the lumber industry cancellation of orders
continues and there have been further price
reductions. On October 1, 135 mills reporting
to the Southern Pine Association stated orders
to be 44,480,224 feet, shipments 63,735,239
feet, and production 62,769,563 feet. Normal
production of these same mills was given at
87,674,183 feet. In district No. 11 (Dallas)
the 28 mills belonging to the Southern Pine
Association located in that district report production about equal to that of August. Shipments increased as a result of an improvement
in transportation. Unfilled orders of these
mills amounted to only 58,448,655 feet on
October 1 as compared with 75,778,485 (August
27). It should be said, however, that four
additional mills are represented in the larger
total. Excepting the California redwood mills,
there was a heavy falling off in amount of new
business taken on by the mills in district No.
12 (San Francisco) during the week ending
October 2. "The market is reported to remain generally dull, and several mills are preparing to cease operations." For the four
weeks ending September 25, 32 mills belonging
to the .Western PineManufacturers' Association
report orders at the close of the period of only
33,075,000 feet, against a cut of 102,763,000
feet. Corresponding figures for the West
Coast Lumbermen's Association (123 mills) are
NOVEMBER, 1920.
orders, 202,008,000 feet, and cut, 286,440,000
feet, while the California Redwood Association
(10 mills) shows orders amounting to 19,388,000
feet, and a cut of 26,029,000 feet. District
No. 9 (Minneapolis) states that returns from a
selected list of eight lumber manufacturers
show September shipments and sales about
three-fourths those of August and only slightly
more than one-half those of September a year
ago. Reduced building activity and lessening
of demand in agricultural regions are the
causes most frequently assigned for the falling
off in demand.
Production of crude oil in Kansas and Oklahoma in September was estimated to be
12,023,250 barrels, an increase of 30.5 per cent
as compared with September, 1919. Production in the Rocky Mountain fields, amounting
to about 1,600,000 barrels, showed a slight
increase. The total production of the MidContinent field for the first nine months in
1920 amounted to 104,980,717 barrels, an
increase of 22,870,471 barrels, or 27.8 per cent
over the output for the same period in 1919.
Fewer wells were completed in September in
the Kansas, Oklahoma, and Wyoming fields
than in the same month last year; nevertheless
there was an increase in new production of
83,917 barrels, as against 75,296 in September,
1919. Crude oil prices remained virtually
stationary in the district. In district No. 11
(Dallas) there was a decrease in production as
compared with August, the September total
amounting to 11,489,510 barrels, which was
854,376 barrels less than the August total.
The Central West Texas field made the best
showing. The output of the Texas Coastal
field was affected by the falling off in output
of one of the largest wells, whose yield dropped
from 20,000 to 7,000 barrels per day. Also,
fewer completions of new wells were recorded,
and the output was less in the district as compared with August. A total of 636 wells were
completed, 435 of which proved to be producers
having an output of 80,587 barrels. In August
there were 441 new producers, with an output
of 103,205 barrels. Rainy weather, unfavorable to drilling operations, is reported to be
responsible for the decline. Crude oil prices
remained steady in the district. In district
No. 12 (San Francisco) a record production of
petroleum is reported from California, the
daily output amounting to 304,340 barrels.
The highest previous figure was recorded in
June, 1914, when the daily average was
302,400 barrels. The increase resulted from
new production in the Elk Hills. The following figures were furnished by the Standard Oil
Co. of California:
I September, August,
1920.
1920.
Production, daily average,barrels.
304,340
Shipments, daily average.. .do
313,533
Stored stocks, end of month.do
23,158,657
New wells opened
55
With initial daily production
barrels..
21,775
Wells abandoned
5
September,
1919.
290,590
321,955
23,434,464
56
279,169
310,271
24,406,753
51
20,550
5
21,330
6
Production of anthracite coal is now being
accelerated
with the return of the miners to
wrork, and, with a speeding up of transport
activities, the movement of coal is becoming
more satisfactory. The output during September, was 5,125,000 tons, as compared with
7,332,000 tons during August and 7,333,000
tons during September, 1919, the respective
index numbers being 69, 99, and 99. The
report from district No. 2 (New York) says
that the Lehigh Valley Railroad, a heavy
anthracite carrier, reports an increase of 37 per
cent in coal movement in the first 15 days of
October over the first 15 days of September,
and 6.3 per cent over the same period last year.
The production of bituminous coal for September was 51,093,000 tons, as compared with
48,389,000 tons during August, and 47,402,000
tons during September, 1919, the respective
index numbers being 138, 131, and 128. The
output of bituminous coal in September was
the largest for any month since October, 1919,
and while prices remain high, slight decreases
are reported. According to the report of
district No. 3 (Philadelphia), highest grade
coals are selling at about $11 to $12 and lower
grades at $8.50 to $9 per ton f. o. b. at the
mines. Bituminous coal receipts at lake ports
in district No. 4 (Cleveland) were promising,
amounting to 4,138,533 tons loaded into vessels
as compared with 2,505,827 tons in September,
1919. But the movement for the season is
still behind that for 1919, being only 15,469,783
tons as compared with 18,514,130 tons in 1919.
Commercial distribution within the district,
however, is stated to be far from satisfactory,
reasons alleged being priority orders for lake
shipments and for public utilities and lack of
cars. District No. 5 (Richmond) reports
better output, freer car movements, and fewer
labor troubles.
In district No. 6 (Atlanta), however, mining
is interfered with by the continuance of the
strike called September 8 in the Alabama district. In district No. 7 (Chicago) production
is increasing with improved car supply and the
same is true in district No. 8 (St. Louis).
There was anincreaseof 2,262 carsof coalmoved
through St. Louis in September, 1920, over
September, 1919. District No. 10 (Kansas
City) also reports increase in efficiency of distribution. Notwithstanding the speeding up
1139
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
of lake shipments, coal receipts at Lake Michigan ports are not only below 1919 totals, but
the percentage of the total going to Lake
Superior ports is less than last year, according
to the report from district No. 9 (Minneapolis),
which says that the average tonnage received
per day at Duluth-Superior Harbor during
September, 1920, was 39,243 tons. To equal
the tonnage received during 1919 would require an average of 60,639 tons per day, and to
equal the average for the 5-year period would
require daily receipts of 76,642 tons. Moreover, stocks were heavier at the beginning of
1919 than 1920. In district No. 10 (Kansas
City) weekly reports show that mines in Missouri and Oklahoma operated in September at
about 75 per cent of full capacity, while the
Kansas mines operated at 55.5 per cent.
Transportation difficulties and mine disability
are the reasons given for the greater part of
time lost, and in addition labor shortage, which
was more pronounced in the Kansas field than
elsewhere. The retail price of coal has advanced generally throughout the district,
prices of bituminous coal reaching $10 to
$11.50 for best grades of lump in Kansas City
during the first week in October. From district No. 11 (Dallas) come reports of a fuel
shortage of a serious nature in western Texas,
the Interstate Commerce Commission having
been petitioned to assign rolling stock to the
Colorado mines in order to supply the needed
coal for winter.
Increased shipments from the Joplin district
in September somewhat reduced surplus stocks
of zinc and lead ores in district No. 10 (Kansas
City), but severe drops in the prices of both
metals are recorded, leading to further curtailment of production. During the month
zinc-ore prices ranged from $50 as a maximum
base to $40 as a minimum. Base prices for
calamine ores were $30 to $35. Lead ores
fell in price from $110 at the beginning of the
month to $80 at the close, the drop being
attributed to importations of lead ore from
Australia and Mexico. In district No. 9
(Minneapolis) copper production fell below the
August figures and was less than that for September, 1919. Reports from companies producing about 75 per cent of the district output
were as follows:
Pounds of refined copper.
September, 1920.
Michigan
Montana
All copper
August,
1920.
Per
cent,
SepSeptemtem- ber, 1919.
ber of
August.
Per
cent,
1920 of
1919.
9,522,837 9,581,645
12,166,115 12,786,515
99.5 13,050,802
95.2 14,005,975
72.9
86.8
21,688,952 22,368,160
97.2 27,056,777
sa o
1140
FEDERAL RESERVE BULLETIN.
New business in the iron and steel industry
has decreased, and "for the first time in many
months the market now shows some of the
mills in earnest quest of orders." A decrease,
first remarked in the demand from the automobile industry, has been reflected in " a generally growing conservatism" on the part of
purchasers. From district No. 4 (Cleveland)
it is stated that " efforts are now being concentrated by the consumers on the reduction of
inventories. Cancellations and holding back of
specifications, as well as the decrease in new
purchasing, have resulted in a material curtailment of production by some steel companies.
At the same time there has been a decided improvement in the movement of iron and steel
products." Prices have reflected this general
situation and have also been influenced by the
drop in the price of coke. A tendency exists
toward easing of prices by certain independent
producers in the heavier lines, such as plates,
structural shapes, large bars, etc. Some purchasers, in particular automobile manufacturers, have obtained a revision of prices on
existing contracts, but it is stated from district
No. 3 (Philadelphia) that "in the main the producers are insisting upon the completion of the
contracts." In district No. 4 (Cleveland) "the
market still shows a condition of large demand
and sustained prices in some other lines, notably those of a lighter character." As a result
of improved transportation conditions in district No. 6 (Atlanta), " there have been heavy
movements of pig iron, cast-iron pipe, iron and
steel products out of the district." The unfilled orders of the United States Steel Corporation at the close of September had declined to
10,374,804 tons, corresponding to an index
number of 197, as compared with 10,805,038
tons at the close of August, corresponding to an
index number of 205. Pig-iron production
during September was 3,129,323 tons, as compared with 3,147,402 tons during August, the
respective index numbers being 135 and 136,
but daily average production in September was
in excess of August. Steel-ingot production
during September was 2,999,551 tons, as compared with 3,000,432 tons during August, the
index number for both months being 124.
Cotton mills continue to operate on parttime schedules due to lack of orders, and while
there are not many complete shutdowns, the
percentage of operating capacity in the industry is low. District No. 1 (Boston) reports
that Lowell cotton mills are operating at about
60 per cent of capacity. Some mills in the
district are said to be manufacturing for stock
in the absence of orders. Census figures show
that, with the exception of Rhode Island, the
consumption of cotton by New England mills
was less in September than in August, dropping
NOVEMBER, 1920.
from 168,167 bales to 148,442 bales for the
district. The active spindleage fell from 17,447,879 in August to 17,056,046 in September,
while the cotton held in the mills declined from
610,311 bales in August to 531,453 in September. District No. 5 (Richmond) reports no
change in the textile situation in September.
The mills were then working on back orders
and finding it very difficult to get new ones
even at the much lower quotations prevailing.
Data secured from 33 firms belonging to the
National Association of Finishers of Cotton
Fabrics, which represent about 70 per cent of
the white goods industry, 60 per cent of dyed
goods, and 30 per cent of printed goods, show
an average percentage of capacity operated
amounting to 41 per cent for all districts, the
percentages for district No. 1 (Boston) being
36 per cent and for No. 2 (New York) 33 per
cent. The average number of days of work
ahead at the end of September for all districts
was 6.9 days—5.3 days in district No. 1 (Boston) and 8 days in district No. 2 (New York).
In district No. 1 (Boston) woolen manufacturers are said to be "in a state of waiting."
Uncertainty prevails as to when mills which
have partially closed will be able to resume on
a full-time basis. At present very few orders
have been received and price reductions have
failed to stimulate buying for the 1921 spring
season. The effect of the absence of buying
demand is found in the market for raw wool,
representative dealers agreeing that prices for
standard grades have declined since May 1
about 35 per cent to 40 per cent. District No.
3 (Philadelphia) reports that woolen yarn
spinners are receiving practically no orders,
although September and October are usually
the busiest months. Mills in the district are
variously reported to be operating at from 10
per cent to 80 per cent of capacity, those more
fully employed running on back orders. One
factory, working at 30 per cent of its capacity,
stated that from 30 per cent to 40 per cent of
the work was being done for stock. Mills
engaged in the manufacture of underwear in
district No. 3 (Philadelphia) are also either
shutdown or running at a small fraction of
capacity.
Twenty-eight representative mills reporting to the Association of Knit Goods Manufacturers of America state that unfilled orders,
which amounted to 882,880 dozen on August 1,
had dropped to 493,006 dozen by September 1.
New orders during the months of August and
September were 28,378 dozen and 19,648
dozen, respectively. Shipments amounted to
401,225 dozen in August, while production
was 322,417 dozen. In September shipments
totaled 307,145 dozen, production 318,128
dozen. Cancellations rose from 35,598 dozen
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
during August to 44,617 dozen during September. Thirty-three mills state their production in September to have been 352,385 dozen,
or 69.9 per cent of normal production.
In the shoe and leather industry, as in textiles, reports bring news of curtailed operations,
and in some cases complete shutdowns have
occurred. Data from 15 representative boot
and shoe manufacturers in district No. 1
(Boston) indicate that operations are at from
40 per cent to 60 per cent of normal capacity
with little spring business placed. In Auburn,
Me., the shoe factories have been running full
time, employing one-half to two-thirds the
usual force. In district No. 8 (St. Louis) there
are increases both in shipments and in current
business in boot and shoe lines, but marked
falling off in future orders has reduced manufacturing activity. Plants within the district
are estimated to be operating at from 55 per
cent to 65 per cent capacity, the larger plants
being more active than the smaller ones.
Manufacturers are buying little leather, with
consequent reductions in the prices of both
upper and sole leathers. Tanneries have still
further reduced
the scale of operations or have
closed dowrn during the month. District No. 8
(St. Louis) reports that wet salted hides which
sold in St. Louis at 41 cents per pound October
15, 1919, were being quoted at 9 cents on the
same date this year. District No. 3 (Philadelphia) says: "Tanners report an absence of
demand for their product, which, following the
ever-increasing lack of interest of the last few
months, is now at its lowest ebb. Both sales of
finished stock for immediate use and orders for
future delivery are decreasing and all concessions in price fail to stimulate the trade."
Reports from 8 of the 12 Federal Reserve
districts, giving changes in the monthly volume of net? sales for several important wholesale lines, show somewhat divergent tendencies,
but in wholesale dry goods and in boots and
shoes the statistics fairly well reveal the lack
of demand which has been responsible for the
inactivity in allied manufacturing lines. In
dry goods the tendency has been downward,
comparing sales with the previous month in
the 4 reporting districts—No. 5 (Richmond),
No. 6 (Atlanta), No. 11 (Dallas), and No. 12
(San Francisco). As compared with a year
ago, sales show reductions in 3 reporting districts, namely, districts No. 5, No. 6, and No.
11. But in district No. 12 an increase of 14.3
per cent is estimated to have occurred on
the basis of statistics compiled from the returns made by 12 firms. In district No. 7
(Chicago) sales showed a negligible increase.
Reductions in sales of wholesale shoe houses
have taken place, ranging from 17.6 per cent in
district No. 12 (San Francisco), 15 firms report-
1141
ing, to 43.2 per cent in district No. 5 (Richmond), 6 firms reporting. District averages,
based on returns from 135 wholesale grocery
firms, indicate increases in 6 out of 8 reporting
districts as compared with September, 1919,
excepting district No. 6 (Atlanta), 7 firms
reporting, and district No. 11 (Dallas), with
5 reporting establishments. Generally speaking, there have been considerable increases in
wholesale hardware sales over September a
year ago. In district No. 11 (Dallas), with
3 reporting firms, sales show a decline. Obviously price changes, especially in lines in
which pronounced reductions have been experienced, make it impossible to estimate changes
in the physical volume of business done by
the reporting groups of wholesalers.
The retail trade situation shows a moderate
increase of net sales over the same period last
year, but it does not show the usual fall activity. The unseasonable weather conditions
throughout the country have had an appreciable effect upon the buying of certain articles,
such as men's clothing. Accompanying this
relatively light demand is a tendency on the
part of the retailer in many cases to reduce
prices in order to stimulate buying. This, it
is reported in certain districts, has had some
effect. On the whole, however, "the consumer
is not buying very actively." In some of the
agricultural sections the unsettled price situation relative to the principal crops, as well as
the tendency often found to hold instead of
marketing, has helped retard fall purchasing.
Reports from almost all districts state that
the retailer is purchasing very conservatively,
outstanding orders being very small, in spite
of the fact that at this time of the year "many
fall and winter goods are ordinarily received.77
Information received from the several Federal Reserve districts brings evidence of further
recessions in building activity for the country
taken as a whole. In district No. 12 (San
Francisco), however, the situation is exceptional, in that local reports show that, both in
number and in value of permits issued, September was ahead of August, and for the 19
principal cities the total valuation of permits was
50 per cent greater than in September a year
ago. But the Northwest is not sharing in these
increases, both Portland and Seattle showing
marked reductions in the value of permits as
compared with a year ago, amounting to 41.7
per cent and 35.4 per cent, respectively. On
the other hand, Los Angeles registered a 195.5
per cent increase and San Francisco 62.1 per
cent. In the other districts, with the possible
exception of district No. 6 (Atlanta), however,
there is fairly universal testimony to a general
decline in both number and in value of building permits as compared with September, 1019.
1142
FEDERAL RESERVE BULLETIN.
Although there is an increase in building activity in district No. 6 (Atlanta) as compared
with a year ago, in a majority of the 18 cities
from which reports are received it is noticeable
that three large cities—New Orleans, Atlanta,
and Nashville—report decreases in value of
permits. In district No. 1 (Boston) the value
of permits for new construction amounted to
only $2,580,313 in September, 1920, against
$5,673,930 in September, 1919, for the same
cities. Boston showed adeclinefrom $1,273,157
to $592,115 in new construction, but there was
an increase in other permits over the same
month of the preceding year, the respective
totals being $1,455,270 and $637,767. For the
rest of the district the totals for other construction remained almost the same.
In district No. 2 (New York) little change in
the building situation is reported. Building
projects in contemplation decreased in number
and value, although the value of contracts
awarded rose largely because of expenditures
for public works and public utilities. The estimated cost of permits issued in district No. 3
(Philadelphia) m September, 1919, was $8,633,827, while the total was $4,936,379 in September, 1920. The number of permits likewise declined from 2,268 to 1,943. There is also less
building in progress in district No. 4 (Cleveland), although labor is more plentiful and the
transportation situation is improved. In 12
leading cities of the district, with the exception
of Columbus, declines are recorded both in
number and in value of permits issued. In
Cincinnati and Toledo slight increases in value
of permits for alterations are more than offset
by reductions in value of projected new construction. In district No. 5 (Richmond) the
decrease in the value of building permits in 23
cities amounted to 13.5 per cent as compared
with September of the preceding year, the total
figures being $1,000,599 less than the total for
September, 1919. There was likewise a decrease in number of permits issued both for new
buildings and for alterations and repairs. The
decline in valuation of permits from the preceding month—23.4 per cent—was in part due
to seasonal factors. District No. 7 (Chicago)
also reports little building in progress, and in
the five leading cities of district No. 8 (St.
Louis) a shrinkage occurred in number and
value of permits as compared with September
a year ago. The heaviest decreases took place
in St. Louis, where new construction permits
in September, 1920, amounted to only $519,010,
as compared with $2,662,430 in September,
1919. In district No. 9 (Minneapolis) all important cities show a decline in the valuation
NOVEMBER, 1920.
of permits, except Fargo and Grand Forks. As
compared with a year ago, the decline in valuation amounted to 44.3 per cent, and there was a
reduction of 31.3 per cent from the preceding
month. District No. 10 (Kansas City) reports
severe declines in the value of building permits
as compared with September, 1919, the reduction being 53.4 per cent.
On the other hand, building operations for
the first nine months of 1920 were ahead of
those for the corresponding months of last
year in district No. 11 (Dallas). Although
Shreveport, Beaumont, and El Paso show an
increase in the value of building permits as
compared with September a year ago, six other
cities from which reports are received record
declines, especially marked in the case of Fort
Worth and Houston. The opinion most generally advanced as to the causes of hesitancy
in undertaking new construction in the face of
the prevailing need is, first, uncertainty regarding the prices of building materials;
secondly, existing high labor costs; and finally,
difficulty in securing capital for financing new
projects and the prevailing high interest rates.
Financially the month has shown comparatively few outstanding developments. There
has been an upward tendency in the prices of
bonds, including both the Liberty issues and
corporate securities. Discount rates have continued practically unaffected in most parts of
the country. Movements of gold into the
United States have been accelerated through
the action of the Federal Reserve System in
bringing home deposits which have been held
"earmarked" abroad. Some inward shipments of gold have occurred as a result of the
operations connected with the Anglo-French
maturities. One or two small foreign government offerings have been successfully made in
the New York market, but the cost has continued around 8 per cent. There has been a
somewhat broader demand for prime acceptances by outside banks and a rather better
distribution of commercial paper. Corporate
financing has somewhat revived, but the stock
market has been during most of the month in
a rather depressed condition. Call-money
rates have been steady, most of the time
around 7 per cent, but during the latter part
of the month have at times risen to 9 per cent
and 10 per cent. Foreign exchange has been
not far from stable, but rather depressed, with
a declining tendency, which is attributed to the
large outstanding balance of unfunded indebtedness, which gives rise to offerings on the
New York market from time to time whenever quotations show improvement.
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
1143
SPECIAL REPORTS ON BUSINESS CONDITIONS.
CONDITION OF WHOLESALE TRADE.
recovering from the setback brought on by the
bieak in sugar. Buying was slightly better
than in the preceding month, although it is still
very conservative. There is an unwillingness
to anticipate future needs and a tendency to
o
o
o
purchase in moderate quantities not ahead of
o
District.
|
actual and pressing requirements. The natuO
fi
z,
ral consumptive demand is the main support of
W
the market."
No. 3
+14.1
—0 4
48
21
No. 4
Reporting wholesale grocery firms state that
q — 37 7
8 _9q
6 4-1 6
6
No. 5 . . . +13.3
No. 6
+ 1.9
accounts outstanding at the end of September
7 -22 9
8 + 1.4
9 + 4.6
6
No 7
were 2.6 per cent greater than at the end of the
No. 10
+ 7.0
4
2
-3.6
3
5 — 99
5 —2 7
No. 11
— 1.1
preceding month and 9.2 per cent above the
No. 12
- 0.9
29 — 7
22 + 7.0
12 + 7.3
15
amounts outstanding a year ago. The ratio of
i
the accounts outstanding at the end of the
o
o
o
ft
2
month to net sales during the month w^as 88.1
District.
per cent.
"B
W A
<
A
Reporting wholesale hardware firms announce an increase of 3.1 per cent in accounts
No 3 .
No.4
outstanding at the end of September as com— 17 C
No 5
pared with the previous month and 27.9 per
No. 6
No 7
cent as compared with a year ago. The ratio
i
—13.7
4'
No 10
. . . .1 + 9.3
5-3.6 !
2
of outstandings at the end of the month to net
No. 11
+26.4
No. 12
-5.3
7
+13.3 17:
sales during the month was 151.9.
1
The reports from district No. 6 (Atlanta) are
Percentage of increase (or decrease) in net sales in September, based upon individual returns showing wide
1920, as compared with September, 1919.
variations according to the location of reporting establishments. In dry goods all reporting
o
6
firms
irrespective of location show a decrease
£
o
District.
as compared with the previous month, but
§>
s
in other lines reported decreases from firms
b
o
A
O
A
w A
located in one part of the district are fre+22.4
quently more or less offset by increases else+ 5 6 48
No 3
7
+ 12.4
+23.8 12
No. 4
where.
6 +26.6
9 -43.2
6 —il. 9
X -16.9
No 5 . - +23.3
q — 15.9
7 — 9.4 8 + 0.9
6
— 59
No 6
District No. 10 (Kansas City) states that
-20.9
8
+ 19.1 24 + 0.7 13
No. 7
4 11 wholesale dealers report purchases of dry
4
No. 10
+ 3.5 2
+ 17.4
+ 3.9
— 10 7
— 20.0
H
5 — 1.2
No 11
+30.9 29 + 14.3 12 +22.5 22 -17.6 15 + 19.9
15 goods and kindred lines slow and below^ the volNo. 12
ume of last year. Early orders for fall shipo
"3
o
1 A o
ments have been completed and there are praci o
fl
tically no urifilled orders and no advance orders
District.
o
yet
taken for spring delivery. Wholesalers are
PR
ft
Q
A
A
A
A
A
<
not buying on account of unsettled condition of
manufacturing prices. They report that reNo 3
4
+31 1
No 4
tailers are buying from hand to mouth, but do
No 5
No 6
not hesitate to buy for current wants, which in
No 7
the aggregate exceed sales for the same period
No 10
2
+21.3
5 i—ii. 2
No. 11
last year. Reductions of about 20 per cent
17
14
7
No. 12
+26.5
+ 31.6
-23.5
i
•
have been made on prices of well-known brands
of staple cotton goods. As foreign demand for
In district No. 3 (Philadelphia) "general con- manufactured goods is somewhat reduced durditions in the grocery trade during September ing recent months, there is no fear among buyers
show some improvement, with the business fast regarding scarcity of goods in the future/'
firms.
Dots ar
shoes.
umber
firms.
ard.var
umber
firms.
t>J
9
9
7
umber
firms.
arm i
lemeni
umber
firms.
O
atione
uto si
plies.
umber
firms.
umber
rugs.
umber
firms.
O
CO
i
1
S-t
umber
firms.
umber
firms.
umber
firms.
umber
firms.
arm n
lement
umber
firms.
umber
firms.
umber
firms.
umber
firms.
uto su
plies.
umber
firms.
rugs.
03
umber
firms.
O
M
9IJ900J
umber
firms.
Percentage of increase (or decrease) in net sales in September,
1920, as compared with the preceding month.
1144
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
District No. 11 (Dallas) comments as fol- volume of transactions for the month of Seplows: " Measured in dollar amounts, the Sep- tember. Following a rather quiet trade durtember sales of nearly all lines of wholesale ing August, buying took an upward turn, and
trade reporting to the Federal Reserve Bank the average sales for September showed an
of Dallas showed a diminished volume of trade increase of 9.3 per cent over August, 1920, and
both as compared with August, 1920, and 21.3 per cent over September, 1919. Retail
September, 1919. Reduced prices, of course, buying in this line manifested a spirit of inhad something to do with the showing made creased confidence on the part of the merby groceries and dry goods, as these lines bore chants. Price trends are reported to be downthe brunt of the price-cutting wave which set ward on drugs and chemicals, but on drug sunin about the 1st of September. Our reports dries the quotations generally have ruled firm
almost unanimously agree that the retailers and unchanged to higher."
are still restricting orders to present necessiIn district No. 12 (San Francisco) "reports
ties, postponing the matter of their future from 131 wholesale firms show a general inneeds until the probable demands and buying crease in volume of trade during September
power of their customers take more definite over the same month last year, except in the
form.
wholesale shoe and automobile tire business,
" Collections made by the wholesale trade which showed a decrease of 17.6 per cent and
during the month of September showed varied 23.5 per cent, respectively.
progress, the reports varying with different
"Collections during September show little
lines of merchandise and with geographical change over last month, the majority of
districts. On the whole, payments were slower firms still reporting collections good. Reports
than usual for the month, as evidenced by an are unanimous that the tendency of the trade
unusual number of requests for extensions of is to buy cautiously and only for current conaccount.
sumption. An increasing number reported
"The disturbed condition of business, re- an even greater preference than has recently
flected in the reports reaching us from whole- prevailed for staples as against fancy goods.
sale houses, is attributed by them largely to
"Demand in general is reported weak,
the discouraging outlook now confronting the buyers tending to hold off in anticipation of
district's cotton producers as a result of the further price reductions. This tendency is
recent decline in the price of that staple. To most noticeable among dealers in hardware,
meet the situation wholesale merchants have dry goods, groceries, and rubber goods, while
resolutely set themselves to overcome the in- furniture and stationery dealers notice it only
ertia of the demand. A number of them have to a limited extent.
tried special sales and price reductions with
"General improvement in transportation
varying degrees of success. In most instances conditions is noted by nearly all firms, only a
these measures have effectively stimulated few reporting any delays in shipments during
sales, while in some cases they are said to have the past month.
had the opposite effect by creating the belief
"Prices are reported as steady during Sepamong buyers that further reductions were tember by hardware dealers, while wholesale
imminent."
furniture and stationery firms report a slight
"Wholesale dry-goods firms report a shrink- increase in prices over last year. Reductions
age in sales and a heavy reduction in prices in prices are generally reported by dealers in
during the past month. Large stocks are gen- shoes, dry goods, and groceries."
erally held by wholesalers in this line, who are
The detailed report for district No. 12 (San
frank to admit that in order to turn some of Francisco) is given as follows:
the goods they purchased before prices started
downward they will be compelled to absorb a Percentage of increase or decrease in net sales for September,
1920, over September, 1919.
loss. It is significant of the general strength
of their condition, however, that they seem, as
a, rule, determined to use replacement values
. Los
San I P r t r f .
AnSeattle. tDisrict.
if necessary instead of cost values as a basis
geles.
Ss:|£S:
of their future selling prices, even though it
means a loss. Apparently they are both able B. Wholesale hardware
23.0 1 35.7
12.2
22.5
29.9
14.3
3.5 i 31.0
Wholesale dry goods
11.4
and willing to shoulder their share of the trade's C.
30.9
50.6
26.1
35.9
D. Wholesale groceries
26.5
price-adjustment burdens in order to hasten E. Wholesale drugs
42.3
10.9
-17.6
—19.9 —29.1
F Wholesale shoes. . . .
the arrival of a stabilized situation.
31.6
45.2
30.8
35.8
12.9
G. Wholesale stationery
19.9
4.6
18.1 | 33.4
27.6
Wholesale furniture
"In contrast with other lines of wholesale H.
2
3. 5
-20.8 -14.9
-24.1
I. Wholesale auto tires
activity, the drug trade reported an increased
i
"""
NOVEMBER,
Percentage of increase or decrease in net sales Jan.
30, 1920, over same period last year.
Los
Angeles.
B. Wholesale hardware
C. Wholesale dry goods
D. Wholesale groceries
E. Wholesale drugs
F. Wholesale shoes
G. Wholesale stationery
H. Wholesale furniture
I. Wholesale auto tires
50.9
"3O."6"
47.8
53.6
-9.2
San
Francisco.
45.7
37.8
30.7
25.6
9.2
44.9
60.9
1-Sept.
Los
An21.4
21.4
28.5
San
Francisco.
-2.0
-14.4
- 1.6
.1
-4.2
- 6.1
28.9
32.1
29.4
24.6
-14.8
36.8
51.3
22.0
48.1
24.8
18.5
-11.8
34.8
39.6
27.0
30.1
5.9
42.5
46.6
-2.6
DisPortland. Seattle. trict.
15.2
45.3
14.3
-6.1
38.6
32.1
74.5
-9.5
-14.6
- 9.1
21.3
7.3
-7.7
-0.9
-5.3
7.0
13.3
26.4
PRODUCTION REPORT OF THE KNIT GOODS
MANUFACTURERS OF AMERICA.
Total production of winter and summer underwear for the six
months ending Sept. 30, 1920.
Number
Actual Per cent
of mills production of norreporting. (dozens).
mal.
April
May
June
July
August
September.
Order and production report for month ending Sept.
1920.—Continued.
[33 mills.]
DisPortland. Seattle. trict.
Percentage of increase or decrease in net sales for September1
1920, over August, 1920.
B. Wholesale hardware
C. Wholesale dry goods
D. Wholesale groceries
E. Wholesale drugs
F. Wholesale shoes
G. Wholesale stationery
H, Wholesale furniture
I. Wholesale auto tires
1145
FEDERAL RESERVE BULLETIN.
1920.
781,315
678,287
560,034
583,190
585,071
606,257
82.1
82.2
80.3
73.4
67.3
74.2
Dozens.
Per cent
of actual
production.
Orders
Shipments
Cancellations..
22,804
344,496
44,815
4.5
68.4
8.8
Production
Normal production of these mills
352,385
503,579
Twenty-eight representative mills reporting
for August and September furnished the data
for the following table:
[In dozens.]
August. September.
Unfilled orders first of month..
New orders
Shipments
Cancellations
Production
882,
28,
401,
35,
322,
880
378
225
598
417
493,006
19,648
307,145
44,617
318,128
Loss.
Gain.
389, 874
8, 730
94, 080
4, 289
9,019
FINISHED COTTON FABRICS.
The National Association of Finishers of
Cotton Fabrics, at the request of the Federal
Reserve Board, have arranged for a monthly
survey within the industry. The results of
the inquiries are herewith presented in tabular
form. Mr. H. E. Danner, secretary of the
association, makes the following statement
concerning the tabulation:
The accompanying figures are compiled from statistics
furnished by 33 out of 59 members of the National AssoOrder and production report for month ending Sept. 30, 1920.ciation of Finishers of Cotton Fabrics.
It is probably fair to state that in the absence of having
Number of mills reporting
33 specific detail at hand, but according to our best estimate,
Unfilled orders first of month (dozens)
512,504 it is probably well within the fact that the figures given
New orders received during month (dozens)
•
22,804 for the various classes of work would cover approximately
the following percentages of the entire industry: White
535,308 goods, 70 per cent; dyed goods, 60 per cent; printed
Total (A) (dozens).
Shipments during month (dozens)
344,496 goods, 30 per cent. The figures given represent reports
Cancellations during month (dozens)
44,815 from exactly the same finishers for the two months, both
Total (B) (dozens)
389,311 for the totals and for the subdivisions, and therefore are
Balance orders on hand October 1 (A minus B)
145.997 strictly comparable.
FEDERAL RESERVE BULLETIN.
1146
NOVEMBER, 1920.
Production and shipments offinishedcotton fabrics, by Federal Reserve districts.
September, 1920.
August, 1920.
White
goods.
Total finished yards billed during
month:
District 1
. . .
2
3
5
6
8
Total
Total finishing charges billed during
month:
District 1
2
3
5
6
8
Total
Total average percentage of capacity
operated:
District 1
2
3
.
. . ..
5
6
. . ..
8
Average for all districts
Total gray yardage of finishing orders
received:
District 1
2
3
5
. . . .
6
8
Total
Number of cases of finished goods
shipped to customers (case equal
approximately 3,000 yards):
District 1
2
3
5
6
8
Total
Number of cases of finished goods
held in storage at end of month:
District 1
2
3
5
Dyed
goods.
Printed
goods.
Total.
Total average work ahead at end of
month, expressed in days:
District 1
2
3
5 .
.
6
8 .
Average for all districts
Printed
goods.
Total.
12,214,013
1,832,736
5,232,545
4,758,048
114,495
11,786,048
704,841
5,425,519
145,878
571,434
13,715,598
184,553
40,432,552
6,738,033
10,658,064
4,903,926
685,929
2,005,667
10,384,678
2,081,937
6,035,052
4,767,537
37,665
11,624,175
787,792
3,864,570
94,582
986,093
9,690,103
551,127
33,813,789
6,573,892
9,899,622
4,862,119
1,023,758
1,614,872
24,151; 837
18,633,720
13,900,151
65,424,171
23,306,869
17,357,212
10,241,230
57,788,052
$270,571
37,213
204,447
98,295
3,096
$457,829
24 437
210,979
3,238
22,866
$863,918
8,545
$1,904,683
189,833
431,962
101,533
25,962
33,235
$224,537
41 812
234,695
98,185
749
$497,744
26,746
164,313
1,835
37,813
$650,320
25 104
$1,558,885
192,546
414,980
100,020
38,562
27,693
613,622
719,349
872,463
2,687,208
599,978
728,451
675,424
2,332,686
54
69
63
69
43
25
54
57
40
48
41
56
69
44
86
46
41
82
74
34
19
30
31
47
36
33
53
74
59
72
59
42
54
50
57
31
34
41
10,161,679
581,851
4 470 523
97,653
497,606
4,904,721
1,210,785
25,450,350
5,340,236
11 647 630
2,529,001
520,719
2,615,080
8,819,825
2,398,403
6 518 929
3,658,050
31,895
7,771,112
903,225
2 963 242
' 47,251
256,330
3,743,385
1,564,039
21,688,638
5,802,899
9,991,674
3,705,301
288,225
2,291,351
19,064,166
15,809,312
6,115,506
48,103,016
21,427,102
11,941,160
5,307,424
43,768,088
4,514
427
527
1,429
3,229
2,797
22,205
2 650
4,941
2 579
2,989
] 066
486
1,729
2,731
1,436
16,141
2,940
4,299
2,588
6,897
3,444
2,797
32,802
6,270
2,875
1,436
26,204
4,160
1,078
330
513
4,214
2,910
26,586
4 264
5 678
1,913
4,253
1 106
451
544
4,089
2,565
29,495
4,128
5,812
1,980
6,081
4,545
2,910
38,884
6,354
4,438
2,565
42,079
7.9
15.3
17.5
16 8
4.6
3.0
9.0
9.2
15.9
6.7
7.8
12 4
16 8
14 0
21.0
6.2
15.2
13 9
10 9
4.1
2.9
7 0
6.9
19.0
5.3
8.0
9.9
10.9
2.6
16.0
11.7
5.2 j
10.2
8.6
9.4
4.5
8.7
6.9
8,400,959
1,627,409
6 581 337
2,431,348
23,113
215 .
; •
.
144
236
427
331
8
Total
Dyed
goods.
White
goods.
349
664
443
NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods, and reported
their totals only; therefore the column headed "Total" does not always represent the total of the subdivisions but is a correct total for the district
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Report of the Gold Committee of the American
Bankers' Association.
Herewith is reprinted the report of the gold
committee of the American Bankers' Association upon the so-called McFadden gold bill
(H. R. 13201), introduced in the last session
of Congress, u to provide for the protection of
the monetary gold reserve by the maintenance
of the normal gold production of the United
States to satisfy the requirements of the arts
and trades, by imposing an excise upon all gold
used for other than monetary purposes, and the
payment of a premium to the producers of
newly mined gold, and providing penalties for
the violation thereof."
The membership of the committee consisted
of Lawrence E. Sands, A. Barton Hepburn,
and George M. Reynolds, chairman.
The McFadden bill, so called, provides for a tax of 50
cents per pennyweight of fine gold for all gold manufactured, used, or sold for other than coinage or monetary
purposes, including jewelry and other purposes of ornamentation and dentistry (with some exceptions for children and charity cases). From such funds thus collected
and "any other funds in the Treasury of the United States
not used for specified purposes " there shall be paid a bonus
to the producers of new gold in the United States of $10
per fine ounce down to May 1, 1925, and that thereafter
both the tax and the premium shall be readjusted annually by certain Government officers in accordance with
the commodity price index number, as determined by the
Bureau of Labor Statistics. The tax and the premium are
both to rise or fall after May 1,1925, according as the index
number rises or falls. In behalf of the bill it is argued
that the general increase in prices and wages in the United
States has raised the cost of gold production, while the
price of gold is fixed at $1 for every 23.22 grains of fine
gold; that as a consequence of the fixed price and rising
costs the profits of gold production are cut r and the mines
where low-grade ore is worked are in some cases being
forced to close, with the result that gold production in the
United States, which stood at about $89,000,000 in 1913,
was cut to $58,488,000 in 1919—a reduction of around
$30,000,000—whereas the industrial consumption of gold
which stood at about $45,000,000 in 1913, increased to over
$80,000,000 in 1919. The result is that whereas we had a
large surplus for monetary purposes in 1913, we were
obliged to draw on our monetary stock of gold for industrial
purposes in 1919 to the extent of about $22,000,000. It is
urged that this consumption of gold money for industrial
purposes, cutting into our gold reserve, constitutes a
national emergency, and that a measure both to reduce
the industrial consumption of gold (by taxation) and to
increase the production of gold (by a bonus) is called for.
It is further argued that if relief is not given to gold miners
by some such measure some gold mines will be abandoned
permanently, particularly the deep mines which will fill
with water and other mines where timbering will deteriorate toj3uch an extent that the mines will become unsafe
for operation.
1147
CREDIT DEFLATION THE CURE.
It can hardly be contended that the loss of $22,000,000
of gold per year from our monetary stock of around $3,000,000,000 constitutes a national emergency. When the gold
embargo was removed the United States had the largest
gold supply of any country in the world's history, a supply
so abnormally great that every banker and economist knew
that it could not be permanently held, and practically all
students were agreed that it was desirable that a substantial part of it should leave the country. Its presence made
possible an overexpansion of credit in the United States
and the outflow which has since taken place of three or four
hundred millions has actually made our situation far safer
than it was, by imposing a check upon credit expansion.
The best banking opinion of the country looks forward to a
progressive and far-reaching contraction of our credit fabric
and regards it as the only alternative to such a disastrous
disruption of the credit system as Japan has recently seen.
The proper course to take is not by artificial methods to
seek to expand the gold basis of our credit system, but
rather to contract the superstructure of credit to a point
where it can be safely maintained under conditions of a
normal distribution of the world's gold supply. The
problem of gold production is an international and not a
national problem. Our national stock of gold is dependent
not upon the difference between gold production and gold
consumption in the United States, amounting to a few tens
of millions, but rather upon the world-wide consumption
and production of gold, and upon the course of international trade. If at any time the banking situation calls for
more gold in the United States, we can purchase it in the
international gold markets far more cheaply than we can
obtain it by the doubtful method of an expensive bonus
on new gold produced in the United States, which could at
best make a difference of only two or three tens of millions
per annum. Gold imports and exports of the United
States in the first four months of 1920, running between two
and three hundred million dollars, were far more significant
than any difference that could be made by the gold bonus
plan in our stock of gold would amount to in several years.
The increased industrial consumption of gold, following
the armistice, was partly temporary, a phenomenon
growing out of the relaxation of war-time economies. Our
people who had repressed their desire for luxuries during
the war, turned suddenly extravagant and bought jewelry
of all kinds lavishly. This tendency may be undesirable,
and probably is. Extravagance of all kinds should be
suppressed. The policy of a general tax on luxuries may
be commended, and a tax on jewelry, as part of such a
general tax, may well be advisable, but a differential tax
on gold as a raw material of production is a different matter,
and one which no national emergency calls for.
The essential elements of the gold standard are: (1) The
instant convertibility of all forms of representative money
in gold on demand; (2) the free coinage of gold bullion;
(3) the unrestricted melting down of gold coin into bullion;
(4) the uninterrupted flow of gold from money into the
arts, and the uninterrupted flow of gold from the arts into
money; (5) the free export and import of gold. A tax of this
kind, interfering with the free flow of gold into the arts,
1148
FEDERAL RESERVE BULLETIX.
NOVEMBER,
1020.
is the standard of value, the price of gold in terms of gold
money is necessarily fixed. The demand for gold, however, is always unlimited. The gold miner can always
sell at a fitted price as much gold as he can possibly produce. He finds his costs rising in periods of boom and
prosperity, and he suffers as a consequence. On the other
hand, periods of adversity, depression, and falling prices
bring to the gold miner, as to no one else, increased profits.
He has an unlimited market in the worst depression, and
the more severe the depression the lower his costs of production tend to be. He is at present suffering in an
intensified form from the upswing of prices and costs.
He has in the past, however, enjoyed periods of prosperity when the rest of the community was suffering, and
in the natural course of things he may look forward to
the recurrence of similar situations.
In reality, the propaganda in favor of doing something for gold is exactly on a par with the propaganda in
favor of doing something for silver, about which we heard so
much a generation ago. It has no more stable foundation
than did the silver propaganda. There is nothing to justify
Government interference in behalf of this industry, or to
justify a Government bounty upon the production of virgin
While some industries, owing to the rise in war-time gold. Per contra, there is very much to be said against
prices, have made very large profits, many others have such action on the part of the Government.
suffered. Among these were the gold mines producing
ARGUMENTS AGAINST BONUS.
low-grade ore. A number of these, because of the inWe may pass briefly over the difficulties of administracreased cost of production and labor shortage, were obliged tion of such an act; the danger that frauds would be practo suspend. This was true, however, of copper and iron ticed upon the Government; the difficulty of distinguishing
as well as gold. The well-known Tread well mine, possess- virgin from old gold melted down. Gold which differs
ing a large volume of low-grade ore, was obliged to suspend. from other gold merely in having a special history, and
Others very likely suspended production from the same which, by virtue of that special history rather than its incause. Some continued, hoping for a change in condi- trinsic qualities, commands a high premium, presents an
tions. But gold miners are not the only ones who have anomaly inconsistent with the normal functioning of a free
suffered. Traction companies, for example, having a gold market and the normal functioning of the gold standstipulated fare, usually a nickel, have suffered severely. ard. The temptation to manufacture history instead of
The different States have refused to make it possible for
mining gold would be very great.
the traction companies to earn expenses by allowing them
Again, the provisions in the McFadden bill introducing
increased compensation for their service, somewhat in
the index number of commodity prices as a basis for fixing
proportion to the general advance in costs. The steam
railways have a just claim upon the public for increased the rate of taxes on gold manufacture and of premium, on
compensation in order to enable them to maintain effi- gold mining constitutes an opening wedge for the general
ciency and to render the public good service. Universities introduction of the index number as a standard of value in
and charitable instutions, with income derived largely the United States, in accordance with Prof. Irving Fisher's
from bonds, have found themselves in many cases in plan for "Stabilizing the dollar." It is beyond the provdesperate plight as a consequence of the rise in prices, ince of this paper to deal with that plan in extenso. Your
with no increase in income. Widows and orphans, trust committee believes in the gold standard and does not befunds, public officers and in general all recipients of fixed lieve in tampering with it or interfering with it in the present critical condition of the world's monetary affairs,
incomes have suffered.
A large body of other industries whose costs have risen There is, moreover, another committee of the American
Bankers' Association, which is to make a detailed report
faster than their prices have similarly suffered.
Recognizing that no national emergency exists calling upon the project. We shall content ourselves, for the presfor special treatment of the gold-mining industry, it is ent, with pointing out that if this index number standard
difficult to make a case for singling out the gold-mining is to be adopted it should be considered on its own merit,
industry for special relief from the Government. That it and not introduced "by the back door" as a feature of the
has suffered is unfortunate, but it i3 one of the costs of the McFadden bill.
The greatest objection of all, however, lies in the
war. It is one among a large class of those which the war
danger which this measure would involve in the gold
has injured.
Gold mining, however, though suffering under present standard itself. Nearly all of the European States are
conditions, enjoys a peculiar advantage which few other on a paper basis. Only a: ew of the smaller countries of
industries enjoy. As a consequence of the fact that gold Europe are even approximately maintaining the gold
thus violates one of the basic elements of the gold standard.
From the outbreak of the great war in Europe our industrial system has been under an increasing strain. Our
markets have been drained increasingly of goods and supplies for Europe. The one-sided flow of commodities to
Europe has been financed from the beginning, in considerable part, by expanding bank credit in the United States;
the resultant shortages of goods, together with expanding
bank credit, have raised prices high, and as a consequence
costs of production of all kinds have risen. These conditions were intensified by our own entry into the war. Our
Government spent many billions of dollars, raised by taxes,
bond issues, and borrowing from banks, resulting in
increased shortages of goods and increased prices, which
increased the strain on our industrial system. During the
war 4,000,000 or 5,000,000 able-bodied men were withdrawn from the ranks of industry and entered the military
and naval service of the United States, while many
more millions were diverted from the production of
ordinary goods to the production of war-time materials and
supplies. A labor shortage necessarily resulted, with a
material increase in wages.
NOVEMBER,
1920.
FEDERAL RESERVE BULLETIN.
standard. The United States, par excellence, and Japan
as well, stand out conspicuously as nations maintaining
the gold standard. All the world believes that our dollars
are as good as gold. All the other nations of the world
are struggling and hoping to get back to the gold standard.
We enjoy a proud preeminence in this respect, and it
should be zealously guarded and maintained. The belief
which obtains in the world to-day that our dollars are as
good as gold must be maintained. The whole world must
be convinced that money can be deposited in this country
at any time and withdrawn at any time in any form which
the depositor may elect.
Offering to pay a premium for the production of gold
in this country instead of strengthening our position
would weaken it. Instead of .assuring the world that the
gold standard Would be maintained by the United States,
it would raise a doubt. Public sentiment throughout
the world would at once assume that our position is weak,
that we are in danger of going on a paper basis, and that
in order to guard against this we regard it as expedient
to pay a premium on the production of gold. Great
Britain, with far greater difficulties than we are facing,
has resolutely refused to do anything of the sort in reply
to the petition of her South African gold miners. Unable
to maintain the gold standard in its integrity, she has
frankly permitted an open gold market in which the
depreciation of her paper money could be measured.
The so-called "premium" on gold in London represents
not a real premium on gold bullion in standard gold coin,
but rather merely a "discount" on British paper money.
Action of the kind proposed by the United States would
be a red flag to the commercial world. The passage of
the McFadden bill instead of strengthening confidence
in the position of the United States would weaken it.
It would be considered as a confession of weakness. The
McFadden bill should be opposed by every well-wisher
of this country's credit and commercial and financial
prosperity.
The present situation of high costs of production is
abnormal and temporary. When our wholly abnormal
balance of trade is reduced, leaving $300,000,000 or $400,000,000 worth of goods per month for our domestic markets
to absorb, which they have not been absorbing; when
labor gets over its illusion that prosperity can be maintained by the shortening of hours and by reduced efficiency,
accompanied by higher wages; and when the strain in
our money market is relaxed through reduced extravagance and increased savings on the part of our people and
their Government, most of the present derangements in
our industrial system will disappear.
Increase of gold mining will return with normal conditions. It must not be forgotten, however, that part of the
automatic working of the gold standard depends upon an
increase in gold production when prices are low and upon
a decrease in gold production when prices are high. Increased gold production in a period of low prices and low
costs makes it easier for prices to rise again, while diminished gold production in periods of high prices and high
costs tends to reduce prices and costs again.
Moreover, the industrial consumption of gold tends to
increase in a period of high prices, since the price of gold
1149
does not rise as other prices rise, while in a period of low
prices the prices of gold manufactures are relatively high,
and purchasers of gold manufactures consequently tend to
diminish. Variations in the consumption of gold thus also
work toward diminishing the supply of free gold when
prices are too high and toward increasing the supply when
prices are too low, thus tending to correct both the rise and
the fall of prices. In this feature of gold production and
consumption we have one of the stabilizing factors in the
gold standard. The McFadden bill proposes to strike at
this automatic regulator and corrective. It would aggravate the very conditions which it seeks to remedy.
TERMS OF SALE.
The following is the eighth and last of a
series of articles giving data as to current practice and recent history of terms of sale in the
principal industries. Acknowledgment is due
the various branches of the Government and
the business houses, individuals, and trade
associations who have courteously furnished
the information.
AGRICULTURAL IMPLEMENTS.1
The ordinary method of distribution in the
industry is from manufacturer to branch house,
to retail dealer, to farmer, and the great bulk
of farm implements is marketed in this manner.
Smaller manufacturers, however, frequently
sell to jobbers, who in turn sell to the retail
dealers. These jobbers in certain cases act as
agents instead of purchasing the implements
outright. Many manufacturers distribute a
comparatively large amount of their implements
through other manufacturers' branch houses, in
sections remote from the former's central
offices, or where the sales are too small to support their own branch houses. At the same
time, the system of thus jobbing noncompeting
lines has the advantage of giving the manufacturers' branch houses a complete line of
implements. In some centers, e. g., Dallas,
it is stated that this has largely disappeared,
while there is little handling of such business in
certain sections, e. g., California. The branch
house system is found especially in the
upper
Mississippi Valley. A recent study 2 shows
that one-half the branch houses of 27 leading
manufacturers, having 282 branch houses and
selling to 140 jobbers, are located in nine
States—Ohio, Indiana, Illinois, Michigan, Wis1
In the preparation of this statement, extensive use has been made of
the following reports: Report of the Commissioner of Corporations on
The International Harvester Co., Mar. 3, 1913. Report of the Commissioner of Corporations on Farm-Machinery Trade Associations, Mar. 15,
1915. Report of the Federal Trade Commission on the Causes of High
Prices of Farm Implements, May 4, 1920. These have been supplemented by the reports of the terms committee and the proceedings of the
National Implement and Vehicle Association, and by inquiry of some
leading manufacturers and of jobbers in the various sections of the
country.
2
The 1920 report of the Federal Trade Commission.
1150
FEDERAL, RESERVE BULLETIN.
consin, Minnesota, Iowa; Nebraska, and Missouri. In these States sales are made to only
28 jobbing houses. Jobbing houses are mostly
located in the far Western and Southern States.
The above study shows that eight States,
namely, Oregon, California, Texas, Louisiana,
Arkansas, Kentucky, Georgia, and Virginia,
have 59 jobbing houses and only 47 branch
houses. It is stated that " perhaps more
tractors are sold through independent jobbers
or distributors than any other class of farm
machinery." One authority states that west
of the Mississippi River there is a tendency
for the manufacturer to do business through
branch houses, whereas east of the river he is
more likely to handle his goods direct from
factory to dealer or through transfer arrangements at convenient shipping points. As a
result of the shortening of terms which will
be considered below, as well as the fear of possible price declines, it is stated that dealers do not
place as large initial stock orders as formerly,
and direct shipments from factories to dealers
have decreased, so that manufacturers are
required to carry larger stocks at distributing
points. The two outstanding changes in distributive methods during recent years have
been the decrease in the consignment of goods
and the increase in the number of branch houses,
especially in the territories such as California,
where formerly they were less frequent.
In order to simplify the discussion, the principal kinds of agricultural implements, the
terms on which will be considered below, may
be conveniently classified as follows: Farm
wagons; seeding machinery, including planters,
grain drills, etc.; harvesting and haying machinery, including binders, mowers, hay rakes
and hay loaders; tillage implements, including
plows, harrows, and cultivators; and thrashing
machinery and tractors.
The history of terms in the industry may be
divided into two periods, the line of division
being the year 1916. Since that time the
standards of terms in the industry are represented by the set of terms prepared annually
by a committee of the National Implement and
Vehicle Association, which was appointed in
October, 1915. The terms on which implements are sold were a favorite competitive device with manufacturers in the past, additional
credit being granted as a means of increasing
the volume of business. Machines have been
sold to the farmer on credit through retail dealers, who act as local agents for the manufacturer. The farmer usually paid part cash at
the close*of the harvesting season and gave a
promissory note in payment for the remainder
in one or two annual installments. With the
NOVEMBER, 1920.
change from a commission to a sale basis,
dealers give their own notes to the manufacturer, whereas formerly a large amount of
farmers' notes were taken by the latter. Long
terms have been most prominent in the case of
harvesting machinery, and are stated to have
been established early in the fifties on reaping
machines. In 1902 it was stated that the
usual harvesting machine terms were onethird in the fall of the year when purchased
(called cash), one-third the fall of the following
season, and one-third the fall of the second
season. Excessive competition, however, frequently extended the time to three years,
while it also resulted in the grant of one year's
extra time without interest when crop conditions were unfavorable. Machines were also
sold at the close of the harvest on what was
called "next year's time" without interest,
the first payment then only being due the following fall. Plows and special tools were,
however, sold on short time or cash, while
twine was sold principally for cash in the fall
of the year when sold. About 1905 price
differentials were quoted as between payment in
cash and in two or three installments, while interest was added on the notes, but subsequently
only time prices were guoted, subject to specified
cash discounts for prior payment. Terms prevailing in 1911 for several leading types of
implements are shown in the following table:
Notes to bear
Payfrom Agent's cash
ments Notes to mature not interest
(or from date
discount
limited
later than—
of
delivery
of i
date,
to—
the machinery)
Grain binders
Corn binders.
Reapers
Mowers
Three
...do..
Two .
...do..
Nov. 1,1911-12-13. Sept. 1,1911 Oct. 1,1911
.....do
Oct. 1,1911 I Nov. 1,1911
Nov. 1,1911-12
Sept. 1,1911 I Oct. 1,1911
do
i
Do.
.....do
The system of long credits is stated to have
been extended to products other than harvesting machinery, such as manure spreaders and
wagons. The increase in the percentage which
credit sales are of total sales in the domestic
business of the International Harvester Co.
during the period 1904-1911 is as follows:
Year.
19041.
1905..
1906..
1907.,
1908.,
1909..
1910.,
1911.
Percentage Percentage
sales for
of sales for of
notes and
cash.
accounts.
70.9
74.4
70.3
67.3
69.4
68.9
66.4
64.2
Percentages as in original statement; do not equal 100.
31.1
25.6
29.7
32.7
30.6
31.1
33.6
35.8
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
The data in the following table, giving the
percentage each year of the total amount of
notes which matured the first year, second
year, etc., also bear on this matter. It is seen
that, while notes for the longer terms have
shown an almost uninterrupted decline, notes
maturing the first year have decreased slightly,
and those maturing the second year show a
great increase.
Year.
Percentage
Percentage Percentage
Percentage Percentage
maturing maturing
maturing
maturing maturing
second
fourth
third
year.
fifth year.
first year.
year.
year.
1904
1905....
1906....
1907
1908
1909....
1910....
1911
34.7
36.0
30.5
29.6
26.9
26.5
25.9
28.9
1
48.0
50.4
58.3
63.0
66.3
66.7
67.7
64.2
14.4
12.2
10.2
7.0
6.4
6.2
6.0
6.5
2.9
1.4
.9
.4
.4
.6
.4
.4
0.1
The efforts of the committee of the national
association have been along the line of more
uniform and shorter terms. A leading purpose
has been to reduce the amount of capital invested in relation to the volume of business
done; that is, to increase the rate of turnover.
The terms represent maximum terms only,
and it is stated in the committee's reports that
^it is recommended that shorter terms should
be adopted in many instances, especially
where States are divided by trade centers.'7
In the construction of these terms, the country
since 1916 hats been divided into four zones—
the central, northern (all that portion of the
United States lying north of the southern
boundary lines of Oregon, Idaho, Wyoming,
South Dakota, Minnesota, Wisconsin, Michigan, and New York), southern (the States of
North Carolina, South Carolina, Tennessee,
Arkansas, Louisiana, Mississippi, Alabama,
Georgia, and Florida), and the Texas. The
time granted differs in the various zones, according to the type of implement, the conditions of use in the particular zone, and the
time when crop returns are received. There
has been a gradual restriction of the use of the
" carry clause," granting additional time on
the portion of the original order or shipments
during the season unsold at the close of the
selling season for the implement in question.
In 1916 and 1917 the committee also provided "standard net terms" to apply to all
goods for all territories except the southern
zone. These were substantially on the basis
of 2 per cent 10 days, net 60 days, with certain
datings, as follows: Shipments between December 1 and March 1, 2 per cent March 10,
net May 1. Shipments between March 1 and
June 1, 2 per cent 10 days, net 60 days from
date of shipment. Shipments in June, 2 per
1151
cent July 10, net September 1. Shipments
between July 1 and December 1, 2 per cent 10
days, net 60 days from date of shipment. For
payment within 10 days after discount or net
due date, an extra 5 per cent trade discount
was permitted on first orders, understood to
be dated prior to dated ahead dates, and 3 per
cent on second orders. For certain types of
implements the dates were changed somewhat,
and in the northern zone were 30 days later
throughout.
The terms reports thus are exceedingly
complex. It will be possible to select here
only a small number of implements representative of the various classes.
Wagons.—Until recent years farm wagons
were manufactured largely by firms producing
this product only, and where manufacturers
have extended their efforts to other lines, this
has generally been in connection with motor
vehicles. In 1913 usual terms were " about
six months except in straight car-load lots,
which could be carried for a period of nine
months or a year," while some manufacturers required one-half the amount in four
months and the other half in six months, or
5 per cent 30 days, with an April 1 dating on
shipments made during earlier months. In
some cases 5 per cent 60 days was granted on
the second carload. Long terms were customary in the South prior to 1916. One manufacturer stated terms as "in extreme cases in
carload lots to good customers, 5 per cent off
for cash in six months or nine months net;
and in addition to this, sometimes about the
first of March we begin giving October 1
dating." These long terms caused much dissatisfaction, and in 1915 certain southern
manufacturers attempted to reduce terms to
5 per cent 30 days to 4 months, net 4 to 8
months, the longer periods, both for cash discount and net terms, applying on larger
quantity shipments. At a joint conference
meeting of the wagon department of the
National Implement and Vehicle Association
and the Southern Wagon Manufacturers' Association in October, 1916, it was stated that
"it was evident that terms are being shortened," due largely to the cash terms then in
force on articles purchased by the manufacturers, and the latter's narrow margin of profit.
In November, 1916, the National Implement and Vehicle Association recommended
terms on local shipments of 5 per cent 30 days,
net 4 months, with datings on car, half car,
and mixed shipments of 5 per cent June 1,
net September 1, 5 per cent one-half September 1, one-half October 1, net December 1, 5
per cent December 1, net February 1, on
shipments in December-March, April-August,
and September-November, respectively, ex-
1152
FEDERAL KESEKVE BULLETIN.
cept in cotton territory, where the months
bearing net due date of December 1 were from
February to August, and the months bearing
net due date of September 1 were only December-January. As an alternative, the use of
terms of 5 per cent 30 days, net 4 months,
with April 1 dating on December-March
shipments and the same datings as in cotton
territory, was provided. In 1916, replies to a
question indicated that the recommendation
of the terms committee were being followed,
" practically, without exception." Subsequent discussions were had relative to further
shortening of terms, and in 1918 the question
was referred to a special committee of the
wagon department, but practically no changes
in terms were made from those recommended
the previous year, and the reports for 191920 and 1920-21 made no change from those
for 1918-19. The less than carload terms
now recommended &re 5 per cent 30 days,
net 4 months, with terms on car, half car, or
mixed car shipments of 5 per cent June 1,
net September 1, 5 per cent September 15,
net November 15, and 5 per cent December
1, net February 1, on December-March,
April-July, and August-November shipments,
respectively, in the central zone, or the shorter
terms of the wagon department of 5 per cent
30 days, net 4 months, on car-load quantities,
and 5 per cent 15 days, net 60 days, on less
than car-load lots, December-March shipments
taking April 1 dating.
Seeding machinery.—In March, 1916, the
following terms were recommended for grain
drills and bar seeders for the central zone:
Spring terms—Net September 1, 5 per cent
cash discount May 1, 4 per cent June 1. Fall
terms—Shipments after June 1 net December
15, 5 per cent cash discount October 1. Twenty
five per cent of original spring purchases on
hand May 1 to be carried over to fall terms.
In such territories as have no fall trade, there
apply the following spring terms securing note
settlement. Twenty-five per cent of original
fall purchase remaining on hand October 1,
note due same maturity and discount dates
following year.
Discount dates were extended 30 days in the
northern zone and in the cotton States.
Some dissatisfaction was expressed by certain manufacturers in view of the earlier net
due dates and the absence of a carry clause
on plows and tillage implements. Certain
changes were made in subsequent years.
The terms recommended in 1920 vary from
zone to zone. Spring terms are as follows:
Central—5 per cent May 1, net September 1.
Northern—5 per cent June 1, net November
1, for shipments after November 1. Southern
NOVEMBER,
and Texas—5 per cent April 1, net July 1.
Fall terms are as follows: Central—5 per cent
October 1, net December 1 for shipments
after May 1. Northern—5 per cent October
15, net December 1 for shipments after June 1.
Southern—5 per cent, November 1, net January 1, for shipments after May 1. Texas—5
per cent October 1, net January 1, for shipments after April 1.
The carry clause, applying to all zones,
provides that "any portion of original spring
drill orders if on hand May 1, may be settled
by note on fall terms in such territories
as have
both spring and fall drill trade/ 7 except that
in the northern zone the date is June 1 instead.
Harvesting and haying machinery.—Little
change has occured in the terms noted on
this class of implements. The terms recommended by the association vary somewhat
between the different zones. Thus, while
grain binders and reapers in the central and
southern zones bore terms in 1917 of 5 per
cent September 1, net November 1, with a
carry clause covering 25 per cent of the original order unsold on September 1, which might
be settled for by note due November 1 of the
following year, less 5 per cent on September 1,
in the Texas zone the dates were one month
earlier, namely, August 1 and October 1, and
in the northern zone one month later, namely,
October 1 and December 1. The only changes
in the 1920 report related to the carry clause,
which now covers 25 per cent of shipments
during the season in all zones other than the
northern, where it applies to 50 per cent of the
original order. Terms and carry clauses on
mowers in 1916 were similar, with the exception of a July 1 discount date in the Texas
zone. In the 1920 report the net date in the
northern zone had been changed to November
1, and the carry clause applied to 25 per cent
of the season's shipments unsold on October 1.
Terms on hay tools (sulky rakes, sweep
rakes, stackers, loaders, and side-delivery rakes)
also vary somewhat between the different zones.
While in 1917 in the central zone they were 5
per cent July 1, net September 1, in the northern zone for shipments after November 1
and in the southern zone they were one month
later or 5 per cent August 1, net October 1,
and in the Texas zone 5 per cent July 1, net
October 1. No carry over was permitted. In
the 1920 report two exceptions were introduced
covering loaders and side-delivery rakes used in
peanut crop territory in the southern zone and
hay tools in the Texas zone shipped after
June 1.
Tillage implements.—In this class of implements relatively slight changes have occurred
in the recommended terms, and a recent re-
NOVEMBER, 1920.
FEDEKAL RESERVE BULLETIN.
1153
port states that they "appear to be receiving lem considered at their first meeting in 1884.
the substantial support of members of the In November 1909, a resolution was passed by
plow and tillage implement department," and the Thrasher Manufacturers7 Association limitthat "it appears that even shbrter terms are ing the cash discount for the year 1911 to 6 pei
favored." These terms for three types of cent, and on single sales fixing a maximum
discount to agents of 5 per cent 30 days. Nc
implement in 1917 were as follows:
Steel and chilled walking plows: Central— cash discount was to be allowed after 90 days
Spring, shipments after November 1, 5 per from delivery, and the date for the agent's
cent April 1, 4 per cent May 1, net July 1; fall, cashing all his season's business was to be fixed
shipments after May 1, 5 per cent September 1, in the contract. In November, 1910, the maxnet November 1. Northern—Spiing, ship- imum cash discount date was fixed at October
ments after November 1, 5 per cent May 1, 4 1, the maximum agent's cashing date at
per cent June 1, net September 1; fall, December 1, and his cash discount at not ovei
shipments after June 1, 5 per cent Octo- 6 per cent plus interest from October 1. In
ber 1, net December 1. Southern—Spring, 1912, it was reported that more complaints
shipments after October 1, February 1 dating had been received than ever before about selling
5 per cent 30 days, net 4 months; fall, ship- on extremely long terms, and in the following
ments June 1-September 30, September 1 year "resolutions were adopted recommending
dating 5 per cent 30 days, net 4 months. that members endeavor to increase cash payTexas—Spring, shipments after October 1, ments and bring about shorter terms. In 1917
January 1 dating 5 per cent 30 days, net 4 the National Implement and Vehicle Associamonths; fall, shipments after Apiil 1, Septem- tion established a tractor and thrasher departber 1 dating 5 per cent 30 days, net 4 months. ment, and terms have been regularly considered
In 1920 the only change was the elimination by a committee. In 1919 the committee again
of the 4 per cent discount in the central and recommended the terms adopted in 1918 for the
year 1919, but inasmuch as two members had
northern zones.
Lever and disk harrows: Central—Spring, modified them, recommended that the modified
shipments after November 1, 5 per cent May 1, terms be made known to all the members, and
net July 1; fall, shipments after May 1, 5 per that the adopted terms be changed to meet
cent September 1, net November 1. North- these modifications. It was also recommended
ern—Spring, shipments after November 1, 5 that one week's notice to the committee of
per cent June 1, net September 1; fall, ship- adoption of more liberal terms by any member
ments after June 1, 5 per cent October 1, net be required. The present recommended terms
December 1. Southern and Texas—Same as are as follows:
for plows above. There was no change in 1920.
Class I (of specified power, or costing not
Wheel cultivators: Central—5 per cent over $1,500 to dealer).—To consumers: Cash on
June 1, 4 per cent July 1, net September 1. delivery or one-half on delivery and one-half
Northern—5 per cent July 1, 4 per cent Au- in 6 months. Deferred maturity December 1.
gust 1, net October 1. Southern—March 1 Future dating shipments after November 1 and
dating 5 per cent 30 days, net 4 months. before April 1 bear April 1 (northern zone
Texas—February 1 dating 5 per cent 30 days, May 1).
To dealers: Class I.—Shipments after April
net 4 months. In 1920 the only changes were
the employment in the northern zone (other 1, cash deposit of $50 on first tractor and $25
than in New York and New England) of dis- on each additional one. Note for balance due
count dates one month earlier, and the addition October 1 or earlier. Small separators—if
in all zones of a clause covering alfalfa wheel necessary, 25 per cent on delivery, balance in
fall of that or next year.
cultivators for fall trade.
Thrashing machinery and tractors.—The man- Class II ($l,500-$2,500).—Not over two falls.
ufacture of thrashers was developed by a few- Class III ($2,500 and over).—Not over
large firms, which gradually extended "their three falls. Deposit required on all orders in
business into other lines, particularly
into Class I sold ior cash on delivery, of $50
tractors and portable engines.'7 Thrashing on first and $25 on each additional tractor.
outfits, including engine and separator with an Discounts for cash on delivery, or on first
attachment for stacking straw and chaff, have fall, not over 6 per cent; or by dealer
been usually sold to thrashermen, who thrash during first fall, not over 10 per cent, for
grain on contract. Due to the expense of the payment by the following dates: In southern
outfits, credit sales have been required, as- zone, September 1; central, October 1; northsignment of earnings being taken as security. ern and Texas, November 1. Reports from
The manufacturers early were interested in the various sources state that tractors are now
credit problem, and it was the principal prob- sold largely on a cash basis.
1154
FEDERAL HESEftVE BULLETIN.
Inasmuch as long terms have prevailed in
the implement industry, the usual practice has
been to take a promissory note to cover the
net period, rather than to have it run on open
account. These notes have varied in length
from a few months to three or four years.
During the last few years there has been a
strong advocacy of the trade acceptance by
the National Association. In 1916 a recommendation of the National Association of
Credit Men was indorsed "that sellers send
notes or acceptances for purchaser's signature
with all invoices." There has also been an
advocacy in some quarters of the elimination
of the cash discount. In February, 1918, the
wagon department recommended to the terms
committee that it "work along the lines of
the elimination of the cash discount,7 with the
wider use of the trade acceptance/ Accompanying these efforts has been an attempt to
have the retail dealer in turn obtain paper,
either note or trade acceptance, from the
farmer, rather than to permit the account to
run along on open account. It has been
stated from Dallas that branch houses are
reported to make very little use of the trade
acceptance, employing notes instead, while
jobbers use notes for the more expensive
implements and to a growing extentn trade
acceptances in the case of "net goods (small
implements, tools, etc.), "amounting to from
20 to 25 per cent of the total business.7'
Although the acceptance is used only to a limited extent, reports recently received indicate
that the users are generally satisfied with it.
During the last few years greater uniformity
of terms and lessening of the credit period has
existed. The financing burden has been
shifted "from the manufacturer to the
retail
dealer and the local country bank.77 This
change is reflected in the greater rapidity of
turnover of capital invested by manufacturers,
as is shown by the following table covering 22
companies:
Year.
1913
1914
1915
1916
1917
1918
Total investment in implement business.
$355,782,398
390,351,286
395,722,107
383,526,911
367,525,626
386,408,735
Total net
sales.
$215,684,945
195,647,453
181,700,918
200,848,125
261,509,319
326,636,666
Period
required
for one
turnover
(months).
20
24
26
23
17
14
The reduction of the length of the credit
period not only increased the rate of turnover,
but also decreased the amount of bills and
accounts receivable, as well as the amount of
capital required to carry on a given volume of
NOVEMBER, 1920.
business. This is illustrated in the following
table, showing the annual amount of notes
and bills receivable in the case of the above
manufacturers:
Year.
1913.
1914
1915.
1916
1917.
1918
Bills receivable.
$95,947,970
96,180,296
83,165,828
60,755,297
46,419,128
42,538,712
Accounts receivable.
$64,549,983
68,627,542
51,397,723
45,525,797
44,744,801
44,512,811
Total.
$160,497,953
164,807,838
134,563,551
106,281,094
91,163,929
87,051,523
It will be observed that from 1913 to 1918
the receivables have decreased almost 50 per
cent, notwithstanding the increased prices of
implements and the fact that gross sales of
these companies increased during the period
from $229,000,000 to $339,000,000. The decrease, it has been suggested, may be due
partly also to improved business conditions,
which make it possible for farmers and retail
dealers to pay cash for larger amounts of their
goods. The achievements of some concerns
are indicated in the following statement of a
leading authority: "For a period of 20 years
prior to 1915 it was not an unusual thing for
large branch houses here to have outstanding at
the close of their fiscal year accounts and notes
receivable equivalent to 60 per cent of their sales
for the year. During the last few years it has
not been an unusual thing for branch houses to
close their year's business with the total amount
of accounts and notes receivable not exceeding
20 per cent of the sales for the year, and some
of us closed with less than 10 per cent outstanding. Prior to 1915 only about 50 per
cent of our total sales were discounted; during
the last few years more than 80 per cent of our
sales to dealers were discounted.'7
The data which have been received relative
to jobbers7 operations indicate that in this, as in
other industries, the jobber purchases largely
on a cash basis, while selling on credit to a
considerable extent. Terms are cited as frequently sight draft with bill of lading attached,
but on larger sized orders sale may be made on
time instead. While in a considerable number
of cases it was stated that there is no difference
in terms made by manufacturers
to jobbers
and to manufacturers7 branch houses, it is
stated from a number of sources that there is
some difference. While in a majority of cases
no specific information on this point was obtained, from Richmond it was stated that
" terms to jobbers are usually
shorter than
7
those given
to
manufacturers
branch
houses.77
7
Jobbers terms to dealers are stated generally
to follow closely those made by manufacturers,
the latter providing the standard. In certain
NOVEMBER, 1920.
cases it was stated, however, that jobbers'
terms frequently were more liberal than were
manufacturers' terms, although from Portland,
Oreg., it was stated that manufacturers' branch
houses in some cases gave very long terms on
tractors and thrashing machines, which the independent jobbers were unable to do because
of their smaller financial ability.
DRUGS AND MEDICINES.
Manufacture and import.—The drug business
as a whole may be generally divided into four
classes: (1) Drugs and chemicals; (2) proprietary articles; (3) druggists' sundries, and (4)
druggists' and hospital supplies and utensils.
The first class may be subdivided into the
following groups: (1) Pharmaceutical, including pills, tablets, fluid extracts, etc.; (2) biological, including vaccines, bacterins, antitoxines, etc.; (3) medicinal and technical
chemicals; and (4) crude drugs and essential
oils. Perfumes, rubber goods, soaps, soda
fountain supplies, cosmetics, brushes, combs,
etc., are included in the general classification
of sundries. Surgical dressings, plasters, bottles, corks, funnels, filters, mortars, pestles,
scales, balances, bones, etc., properly belong
to the classification of druggists' and hospital
supplies and utensils. Proprietary articles
include generally speaking all so-called patent
medicines advertised and sold under trademarks. The method of distributing the greater
proportion of all these classes of goods is from
the first hands, either manufacturer or importer, to the wholesale druggist, who in turn
sells them to the retail druggist.
Crude drugs and essential oils are assembled
in the main by houses importing them as well as
distributing domestic goods of this character.
Terms on crude drugs, medicinal and technical
chemicals and essential oils are almost without
exception 1 per cent 10 days, net 30 days.
The same terms apply generally in the surgical dressing field, although the maturity date
is frequently extended to 60 days on shipments to the far southwest and to the Pacific
coast and Rocky Mountain territory.
While a large part of the general pharmaceutical line goes direct to the retail druggist
from the manufacturer, there are some manufacturers who market their entire line exclusively
through the wholesale druggist. Of the total
volume of the drug business to-day, the pharmaceutical branch, including pharmaceutical
specialties (semiproprietary and noncompetitive in character), aggregates not more than
from 15 to 20 per cent. The larger proportion, probably 85 per cent, of pharmaceutical
specialties is sold to the retail druggist through
the wholesaler, while about 25 per cent of the
1155
FEDEEAL RESERVE BULLETIN.
general pharmaceutical line goes through the
wholesaler, the balance going direct from the
manufacturer to the retailer. The following
are the results of a survey made in 1917:
Net terms.
30 days
60 days
10 days
4 months...
Whole
saler.
Retailer.
17
12
4
1
1
7
Discounts.
1 per cent 10 days (by all 30-day houses
except two, which give 2 per cent 10
days).
2 per cent 10 days (by all 60-day houses).
Private formula business, that is, the manufacture of specialties under formulas owned by
others, carried instead 1 per cent 10 days, net
30 days, except for two houses giving net terms
of 60 days. As a small number of the larger
houses, however, extend terms of 2 per cent 10
days, net 60 days, some of the firms having 30day terms occasionally extend 60 days when insisted upon. It is estimated, however, that 90
per cent of the number of wholesalers discount
their bills, while in the case of retailers from
40 to 50 per cent discount, although one of
the largest manufacturers shows 75 per cent.
One authority states that the percentage of
retailers discounting varies with the season of
the year, the percentage for his house during
the first six months averaging a little over 40
per cent, falling to almost 25 per cent during the
summer months, and then increasing during
the latter part of the year to almost 50 per cent.
Due to the frequency and small size of purchases, the trade acceptance is not employed
by the majority of manufacturers.
Sales of proprietary medicines are made by
manufacturers to wholesalers and to retailers,
the individual manufacturer usualty confining
his entire business to one of the two methods.
Sales to wholesalers, it is stated, in genera,
carry a cash discount of 2 per cent 10 daysl
although a limited number grant 1 per cent,
some 3 per cent, and quite a number 5 per
cent. Sales to retailers carry the same net
terms as those to wholesalers, maturity usually
being in 30, 60, and 90 days, with a discount
for cash varying from 1 to 5 per cent if invoice
is paid within 10, 20, or 30 days. In the case
of seasonable preparations, longer time to the
retailer is required in off seasons, and up to 4,
6, and 9 months may be given at times. The
general average for the industry has been estimated at 45 days.
Sales of druggists' sundries are made by manufacturers to both wholesalers and retailers.
Terms for some years have been largely 2 per
cent 10 days, net 30 days, from date of invoice,
but Pacific coast customers may be given 2 per
1156
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
cent 30 days, net 60 days. Several leading percentage of accounts taking the cash dismanufacturers report that from 50 to 70 per count and
the decrease of the average number
cent of their customers discount their bills. It of days7 business outstanding, are of interest
is stated that the trade acceptance is not em- in this connection. This change in terms reployed in the industry.
flects the movement for the abolition of sepWholesale.—Since January 1, 1905, recom- arate billing of different classes of items, and
mended terms of the National Wholesale 80 per cent of the replies in the recent survey
Druggists Association, to apply to mixed in- of the credits and collections committee of the
voices, have been 1 per cent 10 days, net 30 National Wholesale Druggists7 Association
days. These terms prevail practically over favored uniformity.
the entire country, with the exception of the
In connection with this item, difficulty is
entire State of Texas and a narrow belt run- experienced with competition from jobbers of
ning east from Texas to the Atlantic coast and stationery and school supplies who also carry
including parts of Arkansas, Tennessee, Ala- druggists' sundries. The situation in this rebama, and Georgia, where, with a few excep- gard appears substantially as follows: The
tions, the cash discount is 2 per cent, although retailer has expanded his business to include
net terms are 30 days. It is stated, however, side lines handled by other retailers also, and a
that in these territories the discount is gradually similar change is noted in the wholesaler's
being changed to a universal 1 per cent. An business. The latter, however, in this developincreasing tendency toward proximo terms ment comes to handle certain lines which are
was reported some years ago and found in par- distributed only to a small extent through the
ticular in the East and Southwest. In 1915 drug trade, and thus reaches out to sell these
data obtained from 135 houses of dates for the items to exclusive retailers as well as to rediscounting of city bills showed 88 houses tailers of drugs. In consequence, a measure of
which specified the 10th, 26 the 15th, 6 the 5th, diversity is introduced into the terms on which
and 1 the 20th, while 2 required settlement merchandise is purchased by the wholesale
any time during the following month, 10 twice druggist, which is reflected as well in the terms
a month and 2 four times a month.
on which he sells. He therefore has underIn. a few lines, when, sales are large enough to taken, as in the case of stationery, to induce the
be billed separately, 2 per cent 10 days, net 30 members of the other industries to employ the
days, is allowed. On druggists' sundries the regular drug terms of 1. per cent 10 days, net 30
cash discount now ranges from 1 per cent to 2 days. In pursuance of this policy, a committee
per cent. There has been a movement in was appointed in 1915, and reported in 1916
various sections to include the item in the that since January first of that year many leadgeneral terms of 1 per cent 10 days, net 30 days, ing stationery houses had reduced their cash
which is meeting with some success. New discount from 5 or 6 per cent to 2 per cent.
England and the Middle States in 1914 already Terms favored were 1 per cent 10 days, net 30
showed quite uniformly 1 per cent 10 days, net days, on the item, with the exception that
30 days, while on the Pacific coast all houses where competition from wholesale grocers,
have for the last three or four years employed book, stationery and school supply houses did
these terms. In 1916 data obtained from 130 not permit, 2 per cent might be granted. In
1917 employment of the regular terms was
houses were as follows:
recommended on sundries ordered in the regular course of business, leaving it to the discreDiscount.
Time.
tion of those who employed special salesmen
Newto make the cash discount 2 per cent instead.
EngPacific Days. NumMiddle SouthAs the retail drug trade is overcrowded, and
Per cent. Total. land
ern
and
West. States. States.
ber.
Middle
there
is a lack of financial responsibility on the
States.
part of its members, the enforcement of terms
It
30
1
1
81 by wholesalers is rendered more difficult.
Net
10
60
50
48 has recently been stated that 44.5 per cent
23
11
6
90
2
54
1
4
26
23
1
3
3
of the 50,000 retail druggists in the country
2
1
5
3
1
2
have either no capital rating or one of not
18
6 ..
18
8
1
over $2,000, 23.5 per cent a rating of from
$2,000 to $5,000, and 14 per cent a rating of
This is not representative, however, of pres- from $5,000 to $10,000. Ninety-two per cent
ent conditions, as terms have been shortened as of those in the first-mentioned class ha^e a
indicated in the preceding paragraph and the second or third grade credit rating or no capital
discount reduced. The figures given in the and credit rating at all, while two-thirds of
tables herewith, showing the increase in the those in the second class have a second or
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
third grade credit rating. In 1919 it was
estimated that, of annual sales of $420,000,000,
wholesalers carried past due accounts of about
$20,000,000. The practice of charging interest
on past due balances, or the use of interest
bearing notes, has been consistently advocated,
and all Pacific coast jobbers are now doing so.
The practice also prevails in Texas, Virginia,
and in isolated parts of other southern States,
although not all collect the full interest charged.
One house reports that it collects all interest
on past due accounts by adding it to the invoice.
Interesting in this connection also are the following figures showing percentage loss by bad
debts.
New England and Middle States
Middle Western States
Southern States
Pacific Coast States.
General average
1909
1914
0.37
.314
.56
.38
.40
0.33
.35
.713
.382
.442
1919
0.172
.219
.248
.16
.2 .
While all sections show a considerable decrease, that for the South is particularly pronounced. As would be expected, the percentage of cash discounters has been in the
past relatively small, the average in 1916 being
reported as approximately 20 per cent, but
there has been a substantial increase since
that time. An indication of the change in the
actual length of terms employed is afforded by
the following figures of number of days' sales
outstanding:
States.
1909
New England and Middle States
Middle Western States
Southern States
Pacific coast
General average
.
55
43
67
52
54
1914
53.7
48.0
68 0
56.0
55.2
1919
39.3
37.8
42 6
40.5
40.0
The greatest decrease is again evident in
the case of the southern States.
In view of the interest expressed by a few
members, the National Wholesale Druggists
Association appointed a special committee
which carefully considered the trade acceptance. A referendum vote was later held
which, however, " clearly demonstrated that
the trade in general does not look with
favor upon the use of the trade acceptance in
the industry."
CHEMICALS.
For the present purpose, the most satisfactory classification of chemicals will be into
"heavy" chemicals and organic chemicals.
The latter include drugs and pharmaceuticals
(which were considered above), and dyestuffs
and intermediates. The great majority of
chemicals are sold by manufacturers direct to
industrial consumers. It is estimated that on
1157
the basis of money value about 60 per cent of
all.the dyes of domestic manufacture are sold
direct by manufacturers to consumers, while
perhaps 15 per cent are sold to dealers for resale,
and the remaining 25 per cent are sold for export. Prior to the war about 90 per cent of the
dyestuffs sold in America were sold by importers. As a result of the shortage during the
war, dealers received little consideration, as
producers, it is stated, felt themselves obligated
to supply their established consuming trade.
Several leading producers of alcohol report
approximately one-half their output sold to
wholesalers, all or a majority of the remainder going to industrial consumers. In the
case of heavy chemicals, the situation varies
with the particular chemical in question. Thus
it is stated that the output of sulphuric acid is
sold almost entirely direct to the consumer,
whereas probably one-half the production of
caustic soda, soda ash, etc., is sold through jobbers. A considerable amount of heavy chemicals is imported, and distributed by the importing house. Jobbers in many cases handle also
apparatus and laboratory supplies.
The general terms in the several branches of
the chemical industry are 1 per cent 10 days,
net 30 days. Most manufacturers report that
there has been no general change in terms during the past decade, but several leading manufacturers report previous use, in one case piior
to about the opening of the present year and in
the other case prior to 1914, of a cash discount
of 2 per cent, the former with net terms of 60
days. It is stated from one source that
sellers since about August have been quoting
cash terms, even to responsible purchasers.
This is ascribed to present financial conditions,
merchandise being sold under cost, "merely to
convert inventory into cash." Longer terms
are granted in certain cases on shipments to a
distance. Thus while proximo terms are at
times granted by one manufacturer on such
shipments, 1 per cent 30 days, net 60 days, is
granted by another manufacturer to Pacific
coast purchasers. In some sections of the
country, states a leading manufacturer, "local
conditions have brought about a situation
where the terms are standard on practically all
chemicals in the form of net cash 30 days, no
discount."
For certain chemicals, different terms are
employed. Thus one manufacturer quotes a
discount of only one-half per cent on potash, as
against 1 per cent on the other products.
While denatured alcohol carries the regular
terms, ethyl or tax-paid alcohol is sold on cash
terms, specified as net cash 3 days or spot cash
(within 10 days). Some manufacturers and
dealers in dyes are stated to have allowed a 2
per cent discount as a concession to draw trade.
1158
FEDERAL RESERVE BULLETIN.
but the majority have employed the regular
terms.
Little use of trade acceptances in general is
reported in the industry. From one source,
however, they are reported to have become
popular in certain quarters about two years
ago, but were gradually abandoned until recently, when they have again been employed.
Last spring the majority of manufacturers
from whom data were obtained reported collections prompt, with the majority of accounts
taking the cash discount. It was recently
estimated that normally perhaps two-thirds of
the total sales of dyestuffs to consumers in the
country are discounted, many purchasers,
however, running 2 or 3 days over the 10-day
period. At the present time it is estimated
that " two-thirds of the invoices for dyestuffs
sold to consumers or dealers are not discounted,
and perhaps one-third of the total invoices run
beyond the 30-day period, some of them to 60
days or more."
Terms of jobbers handling also apparatus
and supplies vary somewhat. While certain
houses employ the regular chemical terms of 1
per cent 10 days, net 30 days, others either
omit the cash discount entirely, or else quote
it only to a small number of accounts. Special
terms may be granted to educational institutions, ranging in one case from 30 days to 12
months, and averaging 90 days. While several
houses report no change in terms during the
past decade, one notes a decrease in the cash
discount on laboratory apparatus from 2 per
cent to 1 per cent, and a tendency to closer
collections. Very little use of the trade acceptance is reported. One house, selling a
considerable amount of goods to retail druggists, estimates that 15 per cent of accounts are
discounted, 50 per cent paid promptly, 25 per
cent paid slowly, 9 per cent paid extremely
slowly, and 1 per cent losses or collections requiring legal aid. A middle western house
practically granting no cash discount and selling
largely to educational institutions reports onethird of receivables under one month old, 23
per cent under two months, 12J per cent under
three months, 11 per cent under four months,
and the remainder under eight months old,
being distributed in point of age between the
intervening months.
Foreign Exchange Rates.
In the following tables and charts are
shown, the movements of monthly exchange
rates in, New York on (1) principal former belligerent countries (rates on London, Paris,
Milan, Yokohama, Rio de Janeiro, Berlin, and
Vienna), (2) the principal centers in neutral
NOVEMBER, 1920.
countries (Amsterdam, Copenhagen, Stockholm,
Zurich, Madrid, Buenos Aires, and Valparaiso),1
and (3) the principal centers in countries hav
ing a silver standard (Bombay, Hongkong, and
Shanghai); also the average New York price
of silver per fine ounce. In the tables actual
rates and percentages of par are shown, while
the curves are plotted on the bases of percentages of premium or discount at which the currencies of the different countries were quoted
in the New York market.
Similar information is shown for the period
from the beginning of the war to the summer of
1918 in the FEDERAL RESERVE BULLETIN for
September, 1918, pages 837 et seq., and for the
calendar years 1918 and 1919 in the FEDERAL
RESERVE BULLETIN for January, 1920, pages
49 et seq. Explanations as to the bases of
calculations made in the earliest study apply
to the present table and charts which cover the
two-year period from October, 1918, to October, 1920. Attention is called to the fact
that only the highest quotations for each
month are shown, and that in the case of many
of the currencies the low quotations for the
month are considerably below those given in
the tables.
As is well known, the quotations on sterling,
francs, and lire began to decline when in March,
1919, the respective Governments discontinued
their support of exchange. In the case of sterling, the high rate dropped from 4.758 in March,
1919, to 3.4525 in February, 1920; in the case
of francs, from 18.30 in March, 1919, to 6.93
in April, 1920; and in the case of lire, from
15.72 in March, 1919, to 4.91 in April of the current year. All the three currencies rallied somewhat in the spring and early summer of 1920,
but declined again in the most recent months,
the latest high quotations of sterling being
only slightly above the February, 1920, level,
and those of francs and lire having fallen below
the low points reached last spring. Japanese
exchange showed a general downward tendency,
falling from 54.75 in November, 1918, to 48 in
March, 1920; by May it had improved to 52,
but declined again to 51.25 in October. Brazilian exchange fluctuated considerably during
the period under review, rising from 25 in
October, 1918, to 30.875 in December of the
following year, but declining to 18.375 in
October of the current year.
German marks were quoted in New York at
8 cents in July, 1919, when dealings in German
currency were resumed; since that time the
quotations declined, the lowest figure of 1.14
being shown for last February; in October
marks were quoted as nigh as 1.65 cents. Austrian crowns, worth 20.26 cents at par and
quoted at 3.5 cents in July, 1919, declined to
0.44 cent in October.
NOVEMBBE, 1920.
1159
FEDERAL RESERVE. B U L L E T I N .
EXCHANGE RATES IN NEW YORK
ONTORMER BELU6ERENT COUNTRIES.
!
20
60
SO
40
30
20
10
to
60
SO
40
30
••••-
0
0
!0
fO
20
20
30
30
40
40
SO
SO
60
60
70
70
SO
40
SO
SO
100
100
1919
1918
Movement
YOKOHAMA
PARUNE
BERUti
VIENNA
1320
of exchange rates {highest rates for sight drafts during month) in New York on principal
during period from October, 1918, to October, 1920.
financial
center
I. RATES ON MARKETS IN FORMER BELLIGERENT COUNTRIES.
[Sterling quotations are in dollars and cents; all other currencies are quoted in cents.]
London
(4.8665=100).
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
1918
1919
1920
Paris
(19.3=100).
Milan
(19.3=100).
4.755
4.7575
4.7585
Per ct.
97.71
97.76
97.78
18.29
18.55
18.34
Per ct.
94.77
96.11
95.03
15.75
15.75
15.75
4.7585
4.7585
4.758
4.6725
4.6925
4.6350
4.57
4.3525
4.2625
4.3225
4.1625
3. 9875
97.78
97.78
97.77
96.01
96.42
95.24
93.91
89.44
87.59
86.97
85.53
81.94
18.33
18.32
18.30
17.01
16.47
15.95
15.40
13.70
12.79
11. 93
11.31
10.08
94.97
94.92
94.82
88.13
85.34
82.64
79.79
70.98
66.27
62.14
58.60
52.23
15.71
15.72
15.72
14.25
13.33
12.74
12.71
11.60
10.56
10.26
9.94
8.10
3.7875
3.4525
3.9525
4.0175
3.9150
3.9875
3.95125
3.7075
3.5625
3.5075
77.83
70.94
81.22
82.55
80.45
81.94
81.19
76.18
73.20
72.07
9.28
7.48
7.56
6.93
7.95
8.39
8.54
7.61
7.01
6.75
48.08
38.76
39.17
35.91
41.19
43.47
44.25
39.43
36.32
34.97
7.55
6.20
5.74
4.91
6.04
6.21
6.15
5.29
4.69
4.18
Yokohama
(49.85=100).
Per ct.
81.61 54.63
81.61 54.75
81.61 53.25
Rio de Janeiro
(32.444=100).
Per ct.
109.59 25.0
109.83 27.0
106.82 27.20
Berlin
(23.82=100).
Per ct.
77.05
83.22
83.84
Vienna
(20.26=100).
Per ct.
Per ct.
26.75
26.10
26.375
27.00
28.25
28.25
28.00
27.00
25. 875
25.875
30.00
30.875
82.45
80.45
81.29
83.22
87.07
87.07
86.30
83.21
79.75
79.75
92.46
95.16
8.00
6.25
4.60
4.375
3.25
2.60
33.59
30.44
19.31
18.37
13.64
10.92
3.50
3.00
2.625
1.65
1.00
.73
17.27
14.80
12.95
8.14
4.93
3.60
39.12 50.375 101.05 27. 875
97.79 26.50
32.12 48.75
96.29 26-75
29.74 48.00
99.80 27.25
25.44 49.75
31.30 52.00 104.31 26.375
32.18 51.30 102.91 26.00
31.87 51.375 103.06 23. 875
27.41 51.50 103.31 21.75
24.30 51.50 103.31 19.625
21.66 51.25 102.81 18.375
85.92
81.68
82.45
83.99
81.29
80.14
73.59
67.04
60.49
56.64
2.05
1.14
1.57
1.95
2.94
2.75
2.65
2.29
2.03
1.65
8.61
4.79
6.59
8.19
12.34
11.54
11.13
9.61
8.52
6.93
.65
.40
.55
.55
.76
.80
.72
.61
.47
.44
3.21
1.97
2.71
2.71
3.75
3.94
3.55
3.01
2.31
2.17
81.40 52.25
81.45 51.50
81.45 51.00
73.83 51.375
69.07 51.75
66.01 51.75
65.85 51.25
60.10 50.75
54.72 50.75
53.16 50.75
51.50 50.75
41.97 50.50
104.81
103.31
102.31
103.06
103.81
103.81
102.81
101.81
101.81
101.81
101.81
101.30
1160
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
EXCHANGE RATES 1NNEWYORK
ON COUNTRIES NEUTRAL DURING THE WORLD WAR.
Movement of exchange rates {highest rates for sight drafts during month) in New York on principal financial centers
during period from October, 1918, to October, 1920—Continued.
II. RATES ON MARKETS IN COUNTRIES REMAINING NEUTRAL DURING THE WAR.
[All currency quotations are in cents.]
Amsterdam
(40.2=100).
Stockholm
(26.8=100).
Zurich
(19.3=100).
Ptrct.
46.75
42.25
42.75
Per ct.
116.29 28. 75
105.10 27.00
106.34 27.00
Per ct.
107.28 31.8
100.75 29.0
100.75 29.45
Per ct.
118.66
108.21
109.89
21.65
20.32
20.92
42.75
41.25
41.125
41.25
40.25
39.25
38.75
37.5625
38.125
38.0625
38.00
38.25
106.34
102. 61
102.30
102. 61
100.12
97.64
96.39
93.44
94.84
94.68
94.53
95.15
26.80
26.125
26.00
25.375
24.90
24.625
23.50
22.05
22.40
21.75
21.20
19.90
100.00 29.10
97.48 28.15
97.01 28.15
94.68 27.125
92.91 26.70
91.88 26.25
87.69 25.50
82.28 24.90
83.58 24.60
81.16 24.60
79.10 23.85
74.25 22.30
108.58
105.04
105.04
101.21
99.63
97.95
95.15
92.91
91.79
91.79
88.99
83.21
20.75 107.51
20.60 106. 74
20.70 107.25
20.33 105.34
20.33 105. 34
19.31 100.05
19.08 98.86
17.92 92.85
18.28 94.72
17.99
93.21
18.18
94.20
20.08 104.04
39.125
37.875
37.125
37.50
36.70
36.625
36.30
33.875
31.90
31.06
97.33
94.22
92.35
93.28
91.29
91.23
90.30
84.27
79.35
77.26
19.10
15.65
18.65
18.80
17.05
17.15
16.73
15.70
14.55
14.05
1918
October
November..
December..
Copenhagen
(26.8=100).
112.18
105.28
108.39
Madrid
(19.3=100).
Buenos Aires
(96.48=100).
22.65
20.70
20.20
Per ct.
117.36 103.00
107.25 102.85
104.66 102.75
Per ct.
106.76 30.17
106.60 25.51
106.50 22.78
20.14
21.10
21.10
20.375
20.25
20.06
19.72
19.75
19.25
19.28
20.10
19.90
104.35
109.33
109.33
105.57
104.92
103.94
102.18
102.33
99.74
99.90
104.15
103.11
102. 75
102.45
102.375
101.15
102.25
100.375
98.50
96.625
96.75
96.48
98.50
98.52
106.50
106.19
106.11
104. 84
105.98
104.04
102.09
100.15
100.28
100.00
102.09
102.11
21.19
20.45
18.97
20.33
20.92
21.10
20.00
19.00
19.75
20. 625
19.75
19.75
112.71 •
108. 78
100.90
108.14
111.28
112.23
106.38
101.06
105.05
109. 71
105.05
105.05
99.48
93.26
92.75
92.75
87.93
86.53
85.60
79.12
77.46
75.96
98.295
99.15
98.75
98.30
97.16
100.12
94.886
89.25
86.647
82.75
101.88
102.77
102.35
101.89
100.70
103. 77
98.35
92.51
89.81
85.77
22.75
21.625
22.00
22.00
20.25
19.625
20.875
20.125
19.125
16.00
121.01
115.03
117.02
117.02
107. 71
104.39
111.04
107.05
101. 73
85.11
1920
January.
February...
March
April
May
June
July
August
September..
October
Per ct.
160.48
135.69
121.17
!
1919
January.
February...
March
April
May
June
July
August
September..
October
November..
December..
Valparaiso
(18.80=100).
71.27
58.40
69.59
70.15
63.62
63.99
62.43
58.58
54.29
52.43
21.55
19.15
21.70
22.20
21.65
22.00
22.10
21.00
20.40
19.90
80.41
71.46
80.97
82.84
80.78
82.09
82.46
78.36
76.12
74.25
18.28
17.33
17.18
18.12
17.90
18.25
18.14
16.95
16.45
16.07
94.72 19.20
89.79 18.00
89.02 17.90
93.89 17.90
92.75 16.97
94.56 16.70
93.99 16.52
87.82 15.27
85.23 14.95
83.26 14.66
1161
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
EXCHANGE RATES IN NEW YORK
ON COUNTRIES WITH SILVER STANPARP.
ALSO NEWTORK PRICE OrSILVER.
i
160
/
ISO
s
160
\ \
/
MO
130
/
120
/ f
no
KJO
\
30
60
/
\
«—•"
\
/ >
>' /
s
\
*>
/
60
ISO
MO
\\
130
120
no
so
60
yn
\
60
\
OU
jm
\
40
30
20
10
0
\
/
...
J
1913
*
S
1919
1
3 -:
* i
^ *
9
'ass.
100
V
\
\
70
^
|
P.
k
oO
B0M8AT
40
30
20
10
0
BASELinE
19BO
1
Movement of exchange rates (highest rates for sight drafts during month) in New York on principal financial centers
during period from October, 1918, to October, 1920—Continued.
III. RATES ON MARKETS IN SILVER COUNTRIES.
[All currency quotations are in cents.]
Average New York
price of silver.
Bombay
(32.44=100).
. October
November
December
January
February
March
April
May
June
July
August
September.
October
November
December
1918.
1919.
Hongkong
(47.16=100).
Shanghai
(65.49=100).
Per cent
Price of average
per fine
price
for 1913
($0.60641).
36.00
35.65
35.875
Per cent.
110.97
109.90
110.59
87.75
80.00
82.00
Per cent.
186.07
169.64
173.88
134.00
124.00
125.00
35.65
35.65
35.875
35.65
42.50
42.50
43.00
43.50
45.00
44.00
44.75
46.25
109.90
109.90
110.59
109.90
131.01
131.01
132.55
134.09
138.72
135.64
137.95
142.57
81.00
78.00
75.25
80.25
87.00
84.00
83.00
86.00
88.50
96.00
106.00
106.50
171.76
165.39
159.56
170.17
184.48
178.12
176.00
182.36
187.66
203.56
224.77
225.83
126.00
123.00
114.00
117.75
125.50
127.50
125.00
135.00
136.50
142.00
175.00
170.00
192.40
187.81
174.07
179.80
191.63
194.69
190.87
206.14
208.43
216.83
267.22
259.58
1.01125
1.01125
1.01125
1.01125
1.07111
1.10430
1.06394
1.11398
1.14652
1.19154
1.27609
1.31976
166.76
166.76
166.76
166.76
176.63
182.10
175.45
183.70
189.07
196.49
210.43
217.64
46.25
49.00
50.00
47.25
45.75
43.50
38.50
37.25
34.75
32.50
142.57
151.05
154.13
145.65
141.03
134.09
118.68
114.83
107.12
100.19
100.00
103.00
100.00
97.50
94.00
84.00
78.50
81.50
78.75
75.00
212.04
218.41
212.04
206.74
199.32
178.12
166.45
172.82
166.98
159.03
165.00
165.00
155.00
148.00
130.00
116.00
109.50
114.00
107.50
105.00
251.95
251.95
236.68
225.99
198.50
177.13
167.20
174.07
164.15
160.33
1.32875
1.31273
1.25551
1.20576
1.03495
a.92789
a. 92935
219.12
216.48
207.04
198.84
170.67
153.01
153.25
159.87
155.85
138.83
Per cent.
204.61 $1.0113
189.34 1.0113
190.87 1.0113
166.77
166.77
166.77
1920.
January
February
March
April
May
June
July
August
September
October
a Price of domestic silver 99.535 cents per fine ounce.
a.94510
a. 84187
1162
FEDERAL RESERVE BULLETIN".
Exchange rates on neutral countries were
all above par at the beginning of the period
under review, and all, except the rate on Valparaiso began to decline at about the time
when the artificial link between the dollar and
the pound sterling was removed in the spring
of 1919; in October of this year all of the currencies in this group were quoted at considerable discounts. This is true of the European
as well as of the South American currencies.
Argentine pesos, which were quoted at about
par a year ago, declined in value to about 86
per cent of par in October, while Chilean pesos
declined from 20.6 cents a year ago to 16 cents
in October last.
Exchange rates on silver standard countries
moved in substantial accord with changes in
the price of silver, which in January of this
year reached $1.32875 per ounce, or about 219
per cent of its average price in 1913. It may be
noted that the widest fluctuations occur in the
value of the Shanghai tael, which is a silver
unit whose market value is not influenced by
governmental action; in the case of the Hongkong dollar, and, to a much larger extent, of
the Indian rupee regulations and actions by the
British Government have narrowed the range
of fluctuations in value.
ECONOMIC AND FINANCIAL CONDITIONS
IN CUBA.
Recent developments in Cuba, particularly
the banking crisis, resulting in the proclamation of a fifty-day moratorium, make a brief
study of Cuba's economic resources, her place
in the world's sugar market, and the effect of
the World War on Cuba's commerce, industry,
and finance appropriate at the present time.
Sugar is the basis of Cuba's prosperity. The
soil of the island is so fertile that sugar cane
needs to be planted only once in every 7 to 12
years, and the land needs cultivation only once
in a decade. Furthermore, the cane also suplies the fodder for the oxen which do the field
work, and after the sugar has been pressed out
of the cane the dry stalks supply a part of the
fuel for the operation of sugar mills. These
conditions place Cuba, with its three millions
of population, in a position to supply a large
part of the world's sugar requirements.
As a consequence of Cuba's concentration on
this one crop, with tobacco as a secondary but
much less important resource, economic and
financial conditions on the island are extremely
responsive to the price of sugar. During the
war a falling off in the beet-sugar production in
Europe, where large sugar-producing areas
were in the zone of military operations, together
with the constantly growing demand for sugar
NOVEMBER,
1920.
in the United States, which normally consumes
by far the larger portion of Cuba's production,
resulted in a large increase in sugar acreage and
production in Cuba. From about 2\ million
tons before the war Cuba's production increased
to nearly 4 million tons for the season 1918-19,
and nearly 3 | millions for the most recent
season. The price of sugar, while the war lasted,
was kept within reasonable limits by the action
of the United, States Government through the
Food Administration and later through the
Sugar Equalization Board, which in 1917-18
purchased the entire Cuban crop at 5i cents
per pound, allotting about one-third of the
amount to Great Britain. In 1918-19 the
United States did not accept the offer of the
sugar producers to sell the year's crop at 6J
cents, and consequently the price began to
respond directly to world conditions. Europe
continued to be short of sugar and was clamoring for the surplus product of the American
tropics. Prohibition in the United States increased the consumption of soft drinks and
candy, both of which require large quantities
of sugar, and these conditions resulted in a runaway market for sugar in Cuba. General prosperity, accompanied by much extravagance,
and speculation in real estate were the chief
features in Cuba during the past year. • In the
middle of the past summer the tide turned and
the price of sugar, which had been lifted not
only by market conditions but also by speculators in Cuba and abroad, began to decline, the
collapse of the speculative boom in this country
and Cuba and the decline of the purchasing
power of European countries being among the
important causes.
The wholesale price of raw sugar in New
York by months is shown below for the period
January, 1914, to October, 1920:
Average monthly price of raw sugar (96° centrifugal), spot or
prompt, duty paid, in cargo lots at New York.
[Cents per pound.]
Months.
January
February
March
April
May
June
July
August
September
October
November
December
1914
1915 1916
1917 1918 1919 1920
3.32
3.44
2.98
2.98
3.26
3.34
3.28
5.70
5.88
4.46
3.91
3.96
4.05 4.65
4.68 4.91
4.82 5.64
4.80 6.15
4.84 6.43
4.91 6.32
4.85 6.30
4.75 5.58
4.27 5.55
4.11 6.26
4.75 6.21
4.92 5.31
5.24
5.17
5.48
6.21
6.08
6.04
6.62
7.27
6.96
6.90
6.90
6.34
6.01 7.28
6.01 7.28
6.01 7.28
6.01 7.28
6.01 7.28
6.02 7.28
6.06 7.28
6.06 7.28
6.97 7.28
7.28 7.28
7.28 7.28
7.28 10.29
12.99
11.38
11.85
17.65
20.93
19.66
17.56
13.36
10.67
8.33
Falling sugar prices resulted in a heavy shiinkage of the value of sugar lands, bank loans
based on these lands, or on the sugar itself, became somewhat doubtful, the credit situation
became strained and was aggravated by the
NOVEMBER, 1920.
congestion in Havana harbor where vast quantities of goods were tied up thus preventing the
liquidation of commercial bills. These developments brought about a financial crisis which
caused the President to declare on October 10
a moratorium for 50 days. According to the
terms of this moratorium, the full text of
which is printed on page 1165, notes, bills of
exchange, orders and other documents of credit
which are due or may become due up to December 1 will not be collectible until that date.
Mortgage credits or deeds of trust are also extended to that date. Only 10 per cent on
checking accounts and 12 per cent on fixed deposits below $2,000 can be drawn by depositors. However, sums necessary to pay customs duties or taxes may be drawn against the
creditor's current account. This action gives
the banks time to rearrange their affairs, and it
is expected that some of the inflated values will
now be deflated and that Cuba will settle down
to the sober business of producing sugar, which
under present world conditions can be marketed at a price sufficient to make sugar growing profitable.
SUGAR PRODUCTION AND EXPORTS.
The following table shows the world production of sugar and Cuba's share in it for the past
five years and indicates the importance of the
island in the sugar markets of the world.
Sugar production of the world, exclusive of India.
[In thousands of long tons.]
Year.
1913-14.
1914-15.
1915-16.
1916-17.
1917-18.
1918-19.
1919-20.
America.
Total
All
world
other
(excluEurope. counOther
sive of
United
tries.
India). Cuba. States, i countries.
16,458
16,072
13,909
14,260
14,022
13,974
2,598
2,593
3,008
3,024
3,446
3,972
3,729
2,025
1,995
2,197
2,239
2,100
1,974
981
1,199
894
929
857
1,238
8,253
7,591
5,084
5,010
4,293
3,643
2,678
2,601
2,694
2,726
3,058
3,326
3,147
i Including production of United States, Porto Rico, and Hawaiian
Islands, also exports from Philippine Islands.
The importance of Cuban sugar in international commerce is even greater than production figures alone would indicate, because Cuba
with her small population can export nearly all
the sugar she produces, while much of the sugar
produced in other countries is retained for
domestic consumption. The United States
consumes about one-fourth of the world's sugar
and produces on the mainland and its outlying
possessions about one-half of its own requirements, the other half being supplied by Cuba
1163
FEDERAL UESERVE
and affording a market for the larger part of
Cuba's output. Note the great decline in
sugar production in Europe, which, however, is
expected to recover to 3,870,000 tons in the year
1920-21.
The table below shows the value of merchandise exports from Cuba and the value of suga r
and tobacco exports for the years 1914 to 1918:
Cuba's exports of merchandise, 1914-1918.
[In thousands of dollars.]
Year.
1914
1915
1916.
1917
1918
Total.
174,041
236,229
321,790
356,429
407,283
Sugar Tobacco All other
and other and
cane
tobacco merchanproducts. products. dise.
133,363
197,521
274,705
305,341
347,881
27,487
24,414
25,888
29,397
36,838
13,191
14,294
21,197
21,691
2?,564
Sugar, together with other cane products,
such as molasses and candy, constitutes about
85 per cent of Cuba's total merchandise exports, and tobacco, with its products, about 8
or 9 per cent more, so that all but a small fraction of the foreign trade of the island consists
of these two products. It is not surprising,
therefore, that variations in sugar prices are
immediately reflected in Cuba's economic condition. Cuban soil and climate are well adapted to the production of many other important
crops, such as sisal and fruits, and also to the
raising of cattle, but up to date the other industries have been subordinated to the two
principal staples of the island. Whether the
present financial crisis will tend to induce the
Cubans to diversify their production in order
not to be too much dependent on the market
for one or two products remains to be seen.
A table is also presented showing Cuba's exports to and imports from the different foreign
countries. It will be noted that the United
States, which enjoys preferential customs
treatment of 20 to 40 per cent on all merchandise imported from this country into
Cuba and grants reciprocal concessions of
20 per cent on the duties on sugar, tobacco,
and other imports from Cuba, receives about
three-fourths of Cuba's exports and supplies
about the same proportion of her imports.
Exports to Great Britain show a large increase,
as Cuban sugar took the place of sugar previously imported from Germany, Austria, and
Russia. Cuba's total exports consistently
exceed her imports, thus giving the island a
favorable balance of merchandise trade. In
1919 exports aggregated 573 millions, and
imports 358 millions, leaving a balance in
favor of Cuba of about 215 millions.
1164
FEDEKAL RESERVE BULLETIN.
Cuba's trade balance with principal foreign countries for the
y&ars 1914-1918.
[In 1,000 pesos.]
Countries.
1914
United States:
Imports
Exports
Other American countries:
Imports
Exports
Germany:
Imports
Exports
Spain:
Imports
Exports
France:
Imports
Exports
United Kingdom: .
Imports
Exports
Other European countries:
Imports
Exports
Other countries:
Imports
Exports
Total:
Imports
Exports
1915
1916
1917
1918
68,623
145,881
90,462
195,286
153,020
242,638
189,875
255,275
219,272
289,090
7,982
3,180
8,020
3,357
12,249
3,676
17,920
20,257
9,412
5,034
2,354
800
26
9,939
1,645
10,817
872
14,409
3,025
15,642
5,390
10,393
6,355
4,632
2,398
4,897
1,135
5,931
12,971
6,289
11,617
7,044
5,657
12,379
15,842
15,288
33,033
19,231
52,776
15,377
73,564
9,155
95,149
6,852
1,087
6,203
1,865
4,144
5,690
3,426
1,335
2,362
495
2,761
1,654
4,397
681
6,952,
1,014
7,555
858
26,149
1,125
118,202
174,041
140,884
236,229
215,962
321,790
256,085
356,428
294,632
407,283
MONETARY SYSTEM.
Before the American occupation, the monetary circulation of Cuba was composed largely
of Spanish gold and of various silver coins;
there was no paper money. As Cuba's industries developed, the need for a more modern
currency became urgent, and on October 29,
1914, a monetary law was enacted by which the
Cuban gold peso, equal to the American dollar
in weight and fineness, was made the standard,
and all owners of the then existing currencies
were required to turn them in at the National
Bank of Cuba to be shipped abroad. The total
amount so shipped during the years 1914 to
1917 was about 64 million dollars. The portion
shipped to America was melted and recoined into
the new Cuban currency at the United States
mint and about 31.2 millions of the new money
was sent to Cuba. The composition of the currency so shipped was as follows: Gold coins,
23.8 millions; silver coins, 6.7 millions; nickel
coins, 0.7 million. Recently Cuba has ordered
another 2\ millions in silver and nickel coins.
In addition to this circulation of hard money
Cuba uses American paper currency, largely
Federal Reserve notes, which are supplied to it
by American banks. It was estimated that at
the end of last year there were about 60 millions
of American paper money in Cuba; during the
current year up to the middle of June about 43
millions more were shipped, and shipments of
about 50 millions were made during the most
recent weeks. There is no record of the amount
of this currency returned to the United States,
but it may be estimated that the total amount
in circulation in Cuba is approximately 150 million dollars. The gold, of which there is about
NOVEMBER, 1920.
24 millions, is held largely by the treasury and
in the banks, while the active circulation consists of paper money and silver and nickel coins.
BANKS.
Cuba has no official or semiofficial banks, although the National Bank of Cuba, which has an
associated institution in New York City under
the name of the Bank of Cuba in New York, acts
as Government depositary and fiscal agent.
This bank was organized in 1901 with a capital
of $l,000,000>increased to $3,000,000 in 1904 and
to $5,000,000 in 1905. In addition, the bank had
in June of the current year a surplus and reserve
fund of $9,000,000. 'The rapid growth of the
bank's loans and discounts and of its deposits
is notable, especially for the period between December, 1919, and June of the present year.
Thebigbanks in Cuba follow asystem of branch
banking and have branches scattered throughout the island. The banks' chief functions consist of financing sugar and tobacco production
and exports, of handling foreign exchange, and
of distributing currency throughout the island,
as well as of extending credit to other commercial and industrial interests. Balance sheets of
some of the important banks for the past few
years are shown in the attached tables. Of
the domestic banks the Banco Espaiiolis next in
importance to the National Bank of Cuba. The
great increase in the volume of business of this
bank is seen from the attached statement. Attention is also called to the fact that among the
assets of that bank about $19,000,000 are in
stocks and bonds, indicating that in addition to
commercial banking this institution is a participant in many Cuban enterprises. The Banco
Internacional, organized about three years ago,
has over a hundred branches, with a comparatively small capital, and has been the hardest
hit by the recent financial crisis, being obliged
to suspend payments. The banking houses of
H. Uppman & Co. and N. Gelats & Co. are the
most important private banks which have been
operating in Cuba for many years and have close
connections with the sugar and tobacco interests.
In recent years foreign banks have opened
branches in Cuba, the most important being the
Royal Bank of Canada and theBank of Nova Scotia among the Canadian banks, and the National
City Bank, the Mercantile Bank of the Americas,
and the American Foreign Banking Corporation
among American institutions. The National
City Bank has about 25 branches in Cuba; the
Mercantile two branches, and the American
Foreign Banking Corporation one branch.
These banks, although primarily engaged in
financing exports from and imports into Cuba,
have also participated to a large extent in the
domestic affairs of the island. The increasing
need of credit and shortage of capital in Canada
and the United States during the last year
have doubtless caused a more conservative
credit policy on the part of these institutions
and thus contributed to the financial stringency
in the island. During the recent expansion of
sugar production American capital has been
invested in Cuba, largely in sugar machinery, to
an amount estimated at about 350 millions, the
American banks being the intermediaries in
these transactions. In view of the fact that
American money is legal tender in Cuba and is
supplied to Cuba through the Federal Reserve
Banks, American banks are intimately connected with the financial structure of the island
and American capital is largely represented in
the island's industries.
The very close connection between the
United States and Cuba in economic and financial affairs is apparent. During the recent
crisis Cuba turned to the United States for
assistance. Conferences were held in New
York and Washington, and plans for arranging
a loan of 50 to 100 millions by a group of
American banks to the Cuban Government or
for extending credits directly to Cuban
mill owners were discussed. The Cuban
banks are expected to form a clearing house
association for the purpose of handling the
proposed American loan. Cuban producers
are organized into a general committee which
seeks to stabilize the sugar market. A plan is
on foot in Cuba for the organization of a bank
of issue and rediscount along the lines of the
Federal Reserve Banks, but so far no legislative
action in that direction has been taken.
PUBLIC FINANCE.
Revenues of the Cuban Government in 191213 amounted to about 37.9 million dollars and
rose to 64.5 million dollars in 1918-19, the
expenditures each year being below the revenues. A large part of the revenue, about 37
millions, is derived from customs duties, about
15 millions from taxes on land, other sources of
revenue being the national lottery, the special
loan tax, telegraphs and post offices, consular
dues and harbor dues.
Cuba has a foreign debt amounting to about
51 million dollars floated through the banking
houses of Speyer and Morgan in the United
States and held largely in this country. In
addition, it has a domestic debt of about 39
million dollars.1 Cuba's revenues are amply
adequate to take care of her interest and
amortization payments, and her international
and domestic credit is in good condition.
Cuban municipalities impose taxes on trade and
industry, on purchases, on commercial establishments, and on arts and crafts. Taxes are
1165
R&SEftVE
NOVEMBER, 1920.
comparatively light, and municipal expenditures are not considerable.
Cuban Government publications:
Secretaria de Hacienda, Estadistica de Commercio Exterior.
Boletin Oficial de la Secretaria de Estado.
Industria Azucarera e sus Derivadas.
Other publications:
Annual Reports of the Comptroller of the Currency.
An Official Statement of the Sugar Situation, Commercial West,
Minneapolis, November, 1915.
Bernhardt, Joshua, Government Control of Sugar During the War,
the Quarterly Journal of Economics, August. 1919.
Cuba, Financial and Economic Conditions and Public Debt, a report
prepared for the Central Executive Council of the International
High Commission, December, 1919.
Cuba, Review of Commercial, Industrial, and Economic Conditions
in 1919, published by National City Bank.
Cuba Will Quickly Recover from its Economic Embarrassment,
the Americas, published by the National City Bank, October, 1920.
Diario de la Marina, Daily, Habana.
La Lucha, Daily, Habana.
Morales, William, Money and Banking in Cuba, the Pan American
Magazine, January, 1919.
Morales, William, Money and Banking in Cuba, the Cuba Review,
December, 1918.
Report on Business Conditions, June, 1920, N. Y. Federal Reserve
Agent's Report.
Showalter, William Joseph, Cuba—the Sugar Mill of the Antilles, the
National Geographic Magazine, July, 1920.
Weekly Market Letters of the Czarnikow-Rionda Co.
FULL TEXT OF CUBAN MORATORIUM DECREE.
The following is the official decree as printed in the
Official Gazette:
Considering that important banking institutions of this
city, represented by their directors and managers, have
called on this presidency to explain the extraordianary
and critical situation in which they find themselves with
deposits on current accounts amounting to over $400,000,000 and with an actual capital represented by cash, bonds,
stocks, valuables, sugar, properties and credits amounting
to $1,000,000,000, although the present price of sugar is
lower, all of which demonstrates the solvency of these institutions and their financial capacity to guarantee depositors; and,
"Considering that an unexpected situation of alarm
from the exaggerated rumors about the banking situation
has arisen in the past few days, said alarm being due
largely, as stated, to the large amount of business transacted and adverse action regarding credit by foreign
bankers and the drop in the price of sugar; and,
1
' Considering that it is a well-known fact that depositors
of current accounts and creditors have rushed the demand
for their funds, urged by the exaggerated rumors, in the
belief that thejr interests were endangered, and a situation
was created that could not be withstood by any banking
institution, and that is enough reason in any country to
force a temporary suspension of banking operations; and
"Considering that, although the price of sugar has
dropped, it is a fact that nine out of ten portions of the
sugar crop sold at high prices, and the movement of exports of all other products of the country show an era of
considerable prosperity, present difficulties being transitory and merely a question of circulation and without any
reflection on the vitality of the country, therefore the appeal from banking institutions has been taken into
consideration; and
"Considering that such an exceptional measure in connection with the hand ling of public moneys is only justified
whenever social interests of superior order, such as when
the organization and operation of public and private
credit transactions are endangered, since a panic of this
nature would lead to a great business crisis, and as such
would undoubtedly be the case should the Government
fail to adopt a rapid and energetic disposition that will
serve to safeguard all interests; and
"Considering that it is generally recognized that great
prosperity favors our agriculture, industry, and commerce,
to the extent that Cuba ranks first in the list of countries
exporting to the United States and third among those importing from the same place, therefore the measures sug-
» Mensaje del Presidente, Nov. 3, 1919, pp. 30-35.
1166
FEDERAL RESERVE BULLETIN.
gested and accepted by this Government will not endanger
any legitimate interest.
" Having heard the statements at the cabinet meeting
held in extraordinary session, I resolve
" 1 . That letters of exchange, drafts, notes, obligations,
orders and other credit documents due or that may be due
up to the 1st of December, next, will not be paid until
that date.
"2. Mortgage credits, transferable or simply deed binding, due and that may be due within the term referred to
in above paragraph will not be paid and are extended
until the 1st of next December.
"3. The auctions specified in court or administrative
proceedings are hereby suspended and may be fixed after
the 1st of December, next, until after which date neither
auctions or compulsory sale of any kind can be made.
"4. Within the term stated, from the date this decree is
issued, depositors with banks or bankers in the republic
can draw only 10 per cent on current accounts and 12 per
cent on savings accounts below $2,000, unless the commission appointed as per paragraph 6 of this decree will
grant extension of that percentage in accordance with the
stated accounts.
"5. This moratorium does not affect the obligations of
the National Bank of Cuba as fiscal agent and depositary
NOVEMBER, 1020.
of government funds, as per contract, or the current account of the Lottery Department.
"6. A commission composed of the secretaries of the
interior, finance, agriculture, commerce and labor will
have charge of inspection and supervision of banks for the
proper execution and fulfillment of this decree and will,
to that effect, practice suitable measures, undertaking
examination of values of deposits, inventory of safes and
realization of the current accounts.
"7. Creditors of current accounts may draw against
their accounts the necessary sums for the payment of
customs duties, taxes, fiscal revenues, and other taxations
from the Province or muncipality, in the names of the
respective collectors of customs, fiscal zones, and other
authorities concerned thereby.
"Said checks will be cashed by public officials within
24 hours of their issuance.
"8. The Government reserves the right to waive this
concession should public convenience so demand.
" Signed in the President's Palace, this 10th day of
October, 1920.
M. G. MENOCAL,
"President.
" E . SANCHEZ AGRAMONTE,
"Secretary of Agriculture, Commerce and Labor"
Assets and liabilities of Banco Nacional de Cuba on June 30 and Dec. 31, 1914-1920.
[In 1,000 pesos.]
1914
June.
1915
DecemJune.
ber.
1917
1916
December.
1918
June.
December.
June.
35,668
3,839
27,510
1,488
20,280
4,382
37,468
1,497
11
37,891
4,313
37,256
1,444
287
24,410
4,543
49,325
1,556
290
879
5,000
4,000
716
67,750
2,599
DecemJune,
ber.
1919
1920
DecemJune.
ber.
December.
June.
35,409
4,601
54,973
1,563
753
29,969
3,712
59,833
1,706
55,535
4,005
62,599
1,806
352
40,857
4,085
77,215
1,935
742
90,976
4,082
113,902
2,094
392
4,174
1
4,654
10
5,176
5,023
70
6,960
81,005 101,474 100,577 129,473 129,927
218,406
5,000
5,000
5,000
6,000
7,000
8,000
1,077
1,077
931
76,748 107,019 106,533
4,110
4,194
7,154
5,000
9,000
1,447
194,507
1,382
ASSETS.
Cash, including checks on banks
and transit items
Stocks and bonds
Discounts and loans
Real estate
Various accounts
Guaranties, acceptances, and letters of credit
Other assets
Total
15,615
4,079
16,652
1,526
167
8,292
4,056
18,492
1,447
277
19,027
4,056
20,520
1,487
135
16,926
3,762
22,724
1,507
170
210
38,229
32,653
45,225
45,089
68,540
63,638
145
2
81,338
5,000
1,300
416
29,314
2,199
5,000
1,500
360
23,714
2,079
5,000
1,500
624
37,539
562
5,000
2,000
548
36,145
320
5,000
2,300
648
60,039
555
5,000
2,800
551
54,843
404
5,000
3,000
854
71,574
715
40
145
50
63,638
81,338
LIABILITIES.
Capital paid in
Surplus and reserves
Profits, undivided
Deposits
Credits in current account
Guaranties, acceptances, and letters of credit
Other liabilities
Total..
1,076
38,229
32,653
45,225
45,089
68,540
5,000
5,000
730
80,486
6,014
4,174
70
4,664
5,176
91
5,023
100
6,960
110
81,005 101,474 100,577 129,473 129,927
218,406
Assets and liabilities of Banco Espanol de la Isla de Cuba on June 30 and Dec. 31, 1914-1920.
[In 1,000 pesos.]
1914
June.
Cash, including transit items and
checks on other banks
Stocks and bonds
Loans and discounts
Loan to Habana
Various accounts
Real estate
Furnishings
Other assets
Total..
1915
DecemJune.
ber.
1918
1916
Decem
ber.
June.
DecemJune.
ber.
DecemJune.
ber.
1919
1920
December.
June.
22,304
9,684
40,133
111
577
425
301
2
19,211
11,799
42,308
113
669
545
318
1
14,147
39,488
111
652
861
340
28,191
15,833
48,577
110
670
895
375
4
51,479
18,942
53,393
110
576
968
436
73,537
74,964
85,405 I 94,655
125,904
June.
12,153
4,255
15,249
123
1,008
475
192
9,636
4,356
16,134
123
879
476
193
9,779
4,472
14,510
118
979
476
192
9,767
6,727
16,617
122
700
462
230
14,949
7,707
18,671
111
737
421
218
12,322
7,504
24,514
111
683
438
243
10
17,481
8,078
26,472
112
601
425
261
33,455
31,797
30,526
34,625
42,814
45,824
53,430
7,273
450
323
22,085
2,597
727
7,273
500
240
20,135
2,922
727
7,273
500
309
21,010
707
727
7,273
600
329
24,320
1,375
728
7,273
545
364
34,580
51
1
7,273
654
330
36,382
1,185
7,273
645
365
44,562
583
2
7,273
700
355
53,519
2,041
7,273
1,150
371
62,374
7,273
1,900
354
60,915
4,522
7,273
2,700
302
73,961
1,169
7,273
4,000
325
78,115
4,942
7,273
5,500
513
112,127
487
4
33,455
31,797
30,526
64,625
42,814
45,824
53,430
63,888 j 73,537
74,964
85,405
94,655
125,904
16,683
8,921
36,717
112
752
437
265
1
LIABILITIES.
Capital paid in
Surplus and reserves
Profits, undivided
Deposits
Due to banks and bankers.
Other liabilities
Total.
1167
FEDEEAL RESERVE* BULLETIN.
NOVEMBER, 1920.
Condition of branches of National City Bank in Cuba, June SO, 1916-1920.
[ In thousands of dollars.]
Total for all branches.
Havana branch.
1916 (2
1917 (2
1918 (2 1919 (12 1920 (22
branches). branches). branches) branches). branches).
1916
1917
1918
1920
1919
ASSETS.
Loans and discounts, including overdrafts
Bonds
Due from home office
Due from branches
Due from other banks..
Checks and cash items
Cash...
Letters of credit and acceptances . .
Other assets
Total
1,883
19
1,714
5,272
18
1,153
7,497
6
319
118
470
186
1
373
219
824
11
95
4,710
56,060
7
7,614
1,521
1,585
3,924
846
2,009
1,771
19
1 714
4,534
18
1 133
7,086
6
400
452
763
40
14
26,213
7
6,512
464
980
2,377
161
377
3i7
373
183
7,965
9,112
37,081
73,566
4,566
1,000
39
1,000
80
8
1,000
168
176
195
3,342
1,296
5,543
121
13
27
11
135
6,670
66
47
1,001
295
5,688
14 338
2,629
12,348
1,000
. 642
4 891
33 714
1,974
29,351
789
1,190
15
4,710
7,965
9,112
73,566
94
112
419
603
40
12
15,711
7
6 512
344
798
1,092
155
288
41,271
7
3 815
1,315
1 434
2,131
732
1,719
6,922
8,278
24,907
52,424
1,000
39
1,000
69
1,000
165
176
1,000
245
1,000
475
195
3,200
1,296
4,536
It
11
14 336
2,345
6,687
253
41
33 714
l',500
13,861
120
12
135
5,845
62
45
4,566
6,922
8,278
24,907
52,424
118
440
186
1
567
LIABILITIES.
Capital
Profit
Due to branches
Due to home office.
Due to other banks
Individual deposits
Tiills Davablp
Letters of credit and acceptances.
Other liabilities
Total.
850
Assets and liabilities of Banco International on June SO
1919 and 1920, and Dec. SI, 1918 and 1919.
263
51
37,081
850
70Q
1,070
. 15
American foreign banking corporation—Havana branch.
[Authorized Feb. 25, 1918; opened for business Jan. 2, 1919.]
[In 1,000 pesos.]
1918
1919
Decem- June.
ber.
Decem- June.
ber.
ASSETS.
Cash, including checks on other
banks and transit items
Debits in current account
Stocks and bonds
Loans and discounts
. . .
Real estate
Due from stockholders
Acceptances and guaranties
Other assets
Total
2,852
414
106
4,621
350
4,000
389
38
6,843
597
8,585
552
2,281
715
65
7,954
731
1,181
14,573
846
19,186
23
1,306
22,121
666
1,616
3,536
357
12,770
19,638
26,901
47,195
5 000
5.000
5,000
6 624 12 fi.<V7 18,941
931
839
437
5,000
36,716
1,311
389
215
105
715
278
57
1,613
377
131
3,536
435
197
12,770
19,638
26,901
47,195
LIABILITIES.
Capital paid in
Deposits
Credits in current account
Accepted bills, guaranties,
letters of credit .
Profits and loss
Other liabilities
Total
and
j June 30,1919. Dec. 30,1919. June 30,1920.
1920
ASSETS.
Loans and discounts:
Secured
$1,332,320.59 $1,870,926.48 $2,754,220.37
Unsecured
282,762.00
165,178.00
228,977.00
Cash:
762.23
405.77
890.56
Gold and silver
4,349.00
12,433.92
Local currency
2,640.00
R eserve balances (foreign) 361,905.38
193,309.90 1,504,784.71
925,598.18 1,657,584.83
Due from banks (local)
615,262.77
5,008.83
12,221.77
Office fixtures
5,059.37
Customers liability for letters
22,512.33
65,608.49
of credit
Total
2,666,330.83
3,187,288.49
6,171,113.16
LIABILITIES.
1,607,191.67
Deposits (all demand)
108,192.31
Due to banks
777,146.51
Due to head office
8,825.29
Drafts payable
83,331.63
Interest on acceptance reserve
16,034.93
Undivided profits
65,608.49
Letters of credit
Suspense
Interest reserved
Total.
2,666,330.83
942,342.08 1,351,133.74
137,026.23 2,445,981.67
1,959,887.47 2,008,485.43
18,077.62
51,246. 79
61,907.21
355,900.83
16,861.09
9,611.49
3,187,288.49
6,171,113.16
1168
FEDERAL RESERVE BULLETIX.
Banco Mercantil Americano de Cuba—Havana branch.
[Date of incorporation, Oct. 22, 1918.]
June 30,1919. Dec. 31,1919.
ASSETS.
Loans and discounts:
Secured
Unsecured
Trade bills discounted
Cash on hand
Due from banks (local)
Furniture and fixtures
Installation expenses
Interest paid in advance
Accrued interest received
United States Liberty bonds
Sundry accounts received
Due from foreign branches
Customers'liability for letters of credit
$5, 443,097.20
873,365.52
641,085.69
62,794.69
823,263.23
22,092.59
33,701.36
65,467.54
100,000.00
3,004.14
8,067,871.96
Total.
$16,679,057.43
977,352.77
870,220.34
464,971.76
2.00
97,302.44
100,000.00
27,477.78
96,827. 68
544,670.35
19,857,882.55
LIABILITIES.
Capital
Surplus
Undivided profits
Due to Mercantile Bank of America
Other foreign banks and bankers
Deposits (in local currency)
Accrued interest received
Acceptances outstanding
Due to other local banks
Letters of credit issued
Sundry accounts payable
Reserved for taxes
Total.
2,000,000.00
2,000, 000.00
500,000.00 . 500, 000.00
112. 56
106, 671.35
3,860,977.90 12,441, 187. 49
402,941.35
744, 960. 28
1,185,798.38 2,346, 992. 79
118,041.77
271, 910. 51
12, 740. 67
846, 318.33
544, 670.35
6, 430.78
36, 000.00
8,067,871.96 19,857,882.55
The Investment Trust as a Channel for Invest
ment Abroad.
By means of the amendment to section 25 of
the Federal Reserve Act (sec. 25A, Public Act
106, 66th Cong., approved Dec. 24, 1919), there
is provided the machinery for the profitable and
secure investment abroad of the surplus capital
of the United States. This amendment, familiarly known as the Edge Act, vests in the Federal Reserve Board the administration of its
provisions.
European countries have long been familiar
with the process of issuing domestic securities
against a well-selected assortment of foreign
securities as one of the safest forms of profitable investment in foreign public utilities,
mineral, and agricultural enterprises, and
shipping, commercial, and industrial establishments. A survey of the methods and experience of the European countries in which
this form of investment has been most commonly and successfully used will not, therefore,
be lacking in interest. It is based upon a collection of material assembled for the use of the
Secretary General of the United States Section
of the Inter-American High Commission in the
Treasury Department. The facts were gathered
in connection with the Second Pan American
Financial Conference, in which it was expected
that considerable discussion of the volume,
NOVEMBER, 1920.
conditions, and general attractiveness of LatinAmerican investment would take place.1
The investment trust company is an organization issuing its own long-term debentures
against dependable securities of governments,
public utilities, mining, agricultural, shipping,
banking, commercial, and industrial establishments, domestic or foreign. The fundamental
principle of the investment trust is the distribution of risk by the investment of funds in the
securities and bonds of a great number of enterprises, investments in any one security usually
being limited to a fraction of the capital, say,
10 per cent. Such distribution of risk seems
to be one of the most practical forms yet devised of affording the investor a secure channel
for profitable investment. The security offered
is usually a 20 per cent margin, such as banks
require of gilt-edge paper.
The investment trust enjoys many advantages not usually available to the individual
investor. A company formed for the purpose
of investment is in a position to investigate the
financial condition of undertakings in which
funds may profitably be invested. The officers
of such a company develop the habit of forming
dependable judgments of economic conditions
in foreign countries and the conditions of the
investment market. Moreover, a company
enjoys the advantage of having available a
large amount of funds for investment purposes,
while the individual investor usually deals only
with small amounts.
It goes without saying that no investment
trust company can be successful except under
the most careful management and with the
assurance of expert reports on all its holdings.
On the other hand, the margin of return can not
be counted upon as great enough to support
too large an organization; so that the most
successful type of investment trust will get
along with relatively small technical and clerical staff, all, however, necessarily being of
unusual caliber as to judgment and accuracy;
and having a background of wide knowledge
of international financial conditions.
The field of investment depends upon the
purpose for which the investment trust company is formed. Some companies restrict
their business to foreign countries, while others
are practically unlimited as to field; some companies restrict their business to particular
kinds of enterprises in which they invest their
funds, for instance, exclusively to railways or
electrical enterprises or mining enterprises
The same considerations are a guide in each
1
The statutes, by-laws, and annual reports of the various European
investment trusts have been turned over to the Board and are now on
deposit in the office of its counsel. The study was prepared by T. H.
Thiesing, formerly legal research assistant of the Commission and now
practicing law in New York.
FEDERAL RESERVE BULLETIN".
NOVEMBER. 1920.
case, namely, that the investments must be
safe and that ample returns from investments
must be assured.
The institution of an investment trust has
found extended application in England, Scotland, and on the Continent, varying to some
degree according to the requirements of the
local investors. The investment trust companies in England and Scotland are largely
purely investment trusts—that is, the company
may not invest more than a certain percentage
of its capital in any one security—while the
continental investment trust companies are of
a more speculative character and are also
holding and financial companies—that is, they
acquire large quantities of stock in a few corporations so as to exercise control over their
affairs, create subsidiaries, and finance new
enterprises.
It is the purpose of the following survey to
show briefly the development of the idea of the
investment trust in Europe, to point out the
differences in the character of investment
trusts in different countries, and also to indicate the success attained by them in recent
years.
GREAT BRITAIN.
The principle of substitution of domestic for
foreign securities was first applied in Great
Britain. Institutions contemplating the acquisition of a variety of securities and the distributions of risks were created in Scotland
about 1860. They were formed because at
that time British Government bonds paid only
a little over 3 per cent interest. By investing
in obligations of foreign Governments and particularly in various obligations of railroads, an
interest of 5 per cent or 6 per cent or even
a higher rate could be secured, involving, of
course, greater risk. While a capitalist was
able to reduce this risk by appropriate distribution of his investments, small investors were
not in a position to make such distribution of
their investments. The latter began, therefore, to form associations and to combine their
capital.
The object of practically every one of thes<
new associations at the time,of formation was
to provide trustworthy means whereby British
investors could lend their surplus funds for
purposes of investment and at the same time
feel assured both that the principal would be
safe and that an attractive rate of interest
would be maintained. These companies thus
invested the funds intrusted to them, collected
the interest and premiums paid thereon, and
after making the necessary deductions for reserve and sinking funds, distributed the balances as dividends.
1169
The legal form which was adopted by such
companies was the institution of the old
English trust. A few persons were appointed
as trustees, to whom a certain amount of capital was entrusted for the purpose of acquiring
securities. Individual members received shares
in proportion to their investment, and a fixed
percentage of interest, about 5 or 6 per cent
per annum, was paid on such shares. Any
surplus profit, effected by the sale of obligations, was used for the amortization of the
stock certificates. It was provided that after
a period of 15 or 20 years such trust would be
liquidated. The trustees were, as a rule,
restricted to buying only particular kinds of.
securities. Furthermore, not more than onetenth of the capital could be invested in any
one type of security. There was also a limit to
the capitalization of the trust. If the authorized capital were oversubscribed, a second trust
under the same name, management, and
by-laws would frequently be created, separate,
however, from the first trust. Thus, for
example, we find that there exists of the
Foreign Colonial Trust a first, second, third,
and fourth trust, and of the Scottish American
Trust a first, second, and third.
From the very start, it was realized that since
the directors of a trust and the trustees had the
power to acquire and to sell securities, there
presented itself a great opportunity for speculation, with the restriction merely to keep
within the prescribed limit of investing not
more than the fixed percentage of the capital
in any one type of security.
Gradually the class of investment securities
was enlarged. While the first trusts which
were created possessed only about 18 different
Government obligations, trusts subsequently
formed acquired the obligations of cable, shipping, mining, and railroad companies. The
range of investments is perhaps fairly shown
by the following list of foreign and colonial
companies and corporations, whose securities
are at present among the holdings of English
and Scottish investment trusts:
Abitibi Power & Paper Co.; Advance Rumely Co.;
Alabama, New Orleans, Texas & Pacific Junction Railway
Co.; Alaska Steamship Co.; American Association (Inc.);
American Cities Co.; American Ice Co.; American Writing
Paper Co.; Anglo-Argentine Tramways Co.; Argentine
Tramways '& Power Co.; Arizona Copper Co.; Assets
Realization Co.; Associated Drygoods Corporation; Augusta-Aiken Railway & Electric Corporation; Australian
Mercantile Land & Finance Co.; Bahia Tramway Light &
Power Co.; Barcelona Traction, Light & Power Co.;
Bitter Root Valley Irrigation Co.; Bolivar Railway Co.;
British Canadian Lumber Corporation; Buenos Aires
Central Railway; Buenos Aires Lacrose Tramways Co.;
Buenos Aires Western Railway; Buffalo & Lake Erie
Traction Co.; Cambria Fuel Co.; Canada Cement Co.: Cape
Town & District Gas, Light & Coke Co.; Central Argentine Railway Co.; Chattanooga Gas & Coal Products Co.;
Chicago, Duluth & Georgian Bay Transit Co.; Chicago
1170
FEDERAL RESERVE BULLETIN.
Elevated Railways; Chicago Great Western Railway Co.;
Chicago, Rock Island & Pacific Railway Co.; City of
Chicago (bonds); Coast & Lakes Contracting Corporation;
Colorado Power Co.; Consolidated G'as Co. of New York;
Consumers Co.; Cordoba Central Railway Co.; Cordoba
Light, Power & Traction Co.; Corn Products Refining Co.;
Credit Foncier of Mauritius; Cuba Co.; Cuba Submarine
Telegraph Co.; Denver United Breweries; Dominion Iron
& Steel Co.; Durham Coal & Iron Co.; Eastern Pennsylvania Railway Co.; Emerald Rubber & Cocoanut Co.;
Erie Railway Co.; Fayette County Coal Co.; Federal Light
& Traction Co.; Gage Park Realty Trust of Chicago;
Georgia Coast & Piedmont Railway Co.; Great Northern
Railway Co.; General Southern of Spain Railway Co.;
Gulf States Steel Co.; Guantanamo Sugar Co.; Guayaquil
& Quito Railway Co.; Havana Cigar & Tobacco Factories;
H. B. Claflin Co.; Holly Manufacturing Co.; Houston Oil
Co. of Texas; Hudson & Manhattan Railway Co.; Illinois
Car & Equipment Co.; Indianapolis Breweries; Interborough Metropolitan Co.; International Railways of
Central America; International Traction Co. of Buffalo;
Interoceanic Railway of Mexico; Kansas City, Memphis &
Birmingham Railway; Kentucky Union Co.; Kesner
Realty Trust; Lake Superior Paper Co.; Madison & Wabash
Realty Trust; Majuli Tea Co.; Manaos Improvements Co.;
Manila Railway Co.; Mason City & Fort Dodge Railway;
Mexican Central Railway; Mexican Electric Light Co.;
Mexican Light & Power Co.; Mexico North-Western Railway Co.; Mexican Tramways Co.; Middle West Utilities
Co.; Milwaukee & Chicago Breweries Co.; Minneapolis, St.
Paul & Sault Ste. Marie Railway; Minnesota & Ontario
Power Co.; Missouri, Kansas & I'exas Railway Co.; Missouri Pacific Railway Co.; Montevideo Gas Co.; National
Bank of Australia; National Railway Co. of Mexico; New
England Breweries Co.; New Mexico Railway & Coal Co.;
New Mexico & Arizona Land Co.; New York Breweries Co.;
New Zealand Loan & Mercantile Agency Co.; Nicaragua
Government (bonds); Norfolk Southern Railway Co.;
Northern Pacific Railway Co.; North-Western Pennsylvania Railway Co.; Otis Steel Co. (Ohio); Pacific Coast Co.;
Pacific Oilfields Co.; Panhandle Lumber Co.; Para Electric Railways & Lighting Co.; Paraguay Central Railway
Co.; Paris & Mount Pleasant Railway Co.; Peninsular
Power Co.; Pennsylvania Water & Power Co.; Philadelphia & Western Railway Co.; Philippine Railway Co.;
Pittsburgh & Shawmut Railway Co.; Pittsburg, Shawmut
& Northern Railway Co.; Placerville Gold Mining Co.;
Platte Land Co.; Portland Railway, Light & Power Co.;
Prhnitiva Gas Co. of Buenos Aires; Puerto Cabello &
Valencia Railway; Railway Storage Battery Co.; RandolphMacon Coal Co.; Rhodesia-Katanga Junction Railway &
Mineral Co.; Rio de Janeiro City Improvements Co.;
Rubber Plantations Investment Trust; St. Louis-San
Francisco Railway Co.; St. Louis Southwestern Railway
Co.; St. Louis Transit Co.; Savannah River Lumber Co.;
Seaboard Air Line Railway; South African & General
Investment Trust Co.; South Barracas (Buenos Ayres)
Gas & Coke Co.; Southern Pacific Railway Co.; Southern
Railway Development & General Mortgage Bonds; Superior Rolling Stock Co.; Tampa & Jacksonville Railway Co.;
Tennessee Power Co.; Tennessee Railway, Light & Power
Co.; Toledo, St. Louis & Western Railway Co.; Union
Pacific Railway Co.; United British Oilfields of Trinidad;
United Electric Tramways Co. of Caracas; United Railways Investment Co.; Victor American Fuel Co.; Victoria
Falls & Transvaal Power Co.; Virginia Land Co.; Wabash
Railway Co.; Western Canada Flour Mills Co.; Western
Dry Dock & Shipbuilding Co.; Western Light & Power Co.;
Wichita Falls & North-Western Railway Co.
A considerable increase in the number of
investment trusts is noticeable after 1870. In
1886 there were only 12 investment trust companies, with a capital of £6,500,000, entered at
the London Stock Exchange. But it may be
NOVEMBER. 1920.
assumed that a far greater number existed,
and that not all of them were listed at the
exchange. At that time the character of
investment trusts was somewhat changed.
They acquired more and more a speculative
character. The directors could easily find the
assent of the stockholders to change the securities and to realize a great profit with a rising
market.
The general characteristics of investment
trust companies do not essentially differ either
in respect to constitution or methods
The scope of business carried on by these
companies may best be illustrated by a brief
outline of the purposes of a typical company,
the British Investment Trust (Ltd.), of Edinburgh. This company was organized in 1889
under the Companies Acts of 1862 and 1886,
and has been successful from the start.
I. Objects.—In the memorandum of association are set
forth the following objects:
(1) To raise money by share capital, on such terms and
conditions as may be thought desirable, and to invest the
amount thereof in or upon, or otherwise acquire and hold,
any of the securities or investments following, yidelicit,
the shares and stocks, whether preference, ordinary or
deferred, and whether fully paid or not, bonds, obligations,
debentures, debenture stock, scrip, and securities of any
company, corporation, or trust carrying on, or formed to
carry on, business in the United Kingdom, or the colonies,
or in any foreign country or State, or in the stocks, bonds,
debentures, scrip, or securities of any British, colonial, or
foreign Government, or authority—supreme, municipal,
local, or otherwise: Provided always, That no investment
imposing unlimited liability on the company shall be made.
(2) To borrow or raise money by the issue or sale of any
bonds, mortgages, debentures, or debenture stock of the
company, whether perpetual or otherwise, or in any other
manner, and to invest any money so raised in any such
securities or investments as aforesaid: Provided, That the
total amount outstanding at any one time on the company's debentures, or debenture stock, shall not in the
aggregate exceed a sum equal to the nominal amount of
the share capital of the company, for the time being
issued and subscribed.
(3) To acquire any such securities or investments by
original subscription, tender, participation in syndicates
or like negotiations, or otherwise, and to make payments
thereon as called up or in advance of calls, or otherwise
to acquire such securities or investments in excess of the
monies for the time being proposed to be invested, and to
sell or otherwise dispose of any excess thereof; and generally to sell, exchange, or otherwise to dispose of, deal
with, or turn to account, any of the assets of the company,
or any securities or investments of the company, and to
invest in or acquire by repurchase or otherwise any securities or investments of the kinds before enumerated, and
to vary the securities and investments of the company
from time to time.
(4) T.o make advances upon, hold in trust, buy, sell,
and dispose of on commission or otherwise, any such securities or investments as aforesaid, and upon the securities
of landed property, buildings, and hereditaments, in any
British, colonial, or foreign country or State, and to act
as agents or trustees for any of these purposes.
Then follow the ordinary, essential provisions for transacting the business of the company, for increasing its
capital from time to time, if desired, etc.
II. Share capital.—In the articles of association the
nominal capital of the company is £1,000,000 in 100,000
NOVEMBEE, 1920.
FEDEEAL RESERVE BULLETIN.
1171
shares of £10 each, and the first issue of the shares was or of any two or more of them, any shares or stock in
£600,000 in 60,000 shares of £10 each, and the directors any company purchased, acquired on behalf of, or for
were empowered to make, from time to time, any addi- the purposes of, the company; (i) enter into, rescind,
tional issue of share capital beyond the first issue until vary, and carry into execution any agreements, arrangethe whole original share capital of £1,000,000 had been ments, or compromises for the purposes of the company,
issued. It was provided that the shares of the company and enforce the performance of the same; (j) make and
when and as fully paid up should be converted into pre- give receipts, releases, and other discharges for moneys
ferred stock and deferred stock, in the proportions of and debts payable to the company, and for the claims
three-fifths preferred stock and two-fifths deferred stock; and demands of the company, and compound for the
the preferred stock to be entitled to a preferential charge same; (k) form a reserve fund out of the moneys of the
as to capital, and to receive a cumulative preferential company, and manage, appropriate, and dispose of such
dividend at the minimum rate of 4 per cent per annum, reserve, and declare the amount of the profit of the comand also to receive one-half of the surplus profits that might pany; (I) refer any claims and demands of and against
be divided after the deferred stock had received a divi- the company to arbitration, and perform and observe
dend of 8 per cent, the deferred stock receiving the other the awards thereon; (m) from time to time provide for
half; but the preferred stock should in no event receive the management of the affairs of the company abroad in
more than 5 per cent (being 1 per cent, contingent on the such manner as they think fit, and in particular appoint
profits of each year and noncumulative, in addition to the any persons to be attorneys or agents of the company,
aforesaid 4 per cent which is cumulative), the deferred with such powers and upon such terms as may be thought
stock receiving any further surplus profits that might be fit; (n) do all things requisite for compliance with the
requirements of the statutes; (o) execute in the name
divided.
III. Debenture capital.-—The directors were authorizedof the company, in favor of any director or other person
to raise debenture capital by the issue of debentures or who may incur, or be about to incur, any personal liability,
debenture stock, at such price and on such terms and whether as principal or surety, for the benefit of the
conditions as they might think fit, but no debenture company, when required by such director, sufficient
stock could be raised or issued by the directors to bear bonds of indemnity, mortgages of or charges on the cominterest at a rate exceeding 4 per cent per annum. The pany's property; (p) negotiate and make arrangements
debenture capital was made a charge upon the whole for and carry into effect any lawful amalgamation or
undertaking and property of the company. All amounts combination of the interest of the company with any
received by the company in respect to such debenture other company, corporation, or persons, but not so as
capital were required to be invested in some of the to amount to a complete amalgamation of the company,
securities or investments authorized by the memorandum except with the sanction of a special resolution.
of association. It is a fundamental principle of the
V. The placing^ of money.—The directors are required to
constitution of the company that the total amount of invest or otherwise deal with the moneys of the company
debenture capital outstanding at any one time shall not in accordance with the memorandum of association: Proexceed the amount of share capital for the time being vided, That no purchase or acquisition of any^ particular
issued; and this provision is not capable of being altered. security, other than Government stocks, public funds, or
IV. Powers of directors.—Far-reaching authority in the securities of the United Kingdom, shall be made, by which,
management of the company is vested in the directors. at the current market value at the time of such purchase
There is little qualification or limitation of their general or acquisition, the holding of the company in such security
powers. They (a) commence, conduct, and manage all would exceed in value one-twentieth of the issued share
or any of the business of the company mentioned in the and debenture capital of the company for the time being.
memorandum of association, as they from time to time No investment shall be made in shares of companies upon
think expedient, and in particular carry on and settle, which there is unlimited liability and not more than oneat their discretion, all the details of the business of the twentieth of the capital in all shall at any time be inseveral concerns for the time being carried on by the vested in shares of companies with limited and uncalled
company, and obtain all powers, and make all agreements liability, and then only with the unanimous consent of
and arrangements incidental or conducive thereto; (b) the directors.
allot and issue the shares of the company, and exercise
The directors must, on making any change of investment
their discretion as to the registration of or refusal .to or other financial transaction of the company, maintain
register, transfers of shares, and all other discretions as strictly as possible the relative rights of separation behaving reference to the shares of the company; (c) make tween capital moneys and income and deal with the same
calls on shares not fully paid, accept payment in advance accordingly and have power to make all apportionments
of calls, determine the terms of such acceptance, issue necessary in that behalf.
shares as fully or partially paid up, credit shares with
VI. Dividends.—The profits made during the financial
moneys as if paid up, and make and issue share warrants; year are applicable to payment of dividends: Provided,
(d) settle and determine upon the investment of the That if any new shares or capital are issued with any
company's capital, whether share or debenture, in the preference, priority, or guaranty, regard must be had
securities or investments authorized by the memorandum thereto in the distribution of the net income. Before
of association, and purchase and pay for the same; (e) recommending any dividend, the directors shall set apart
appoint and remove, and determine the duties, and fix such sums or sum as in their judgment may be necessary
the salaries and other remuneration of the secretary, to meet any claims or contingent liabilities against the
clerks, agents, and other officers and servants of the com- company or which they may think it expedient to set
pany; (/) institute, conduct, defend, take part in, com- apart for any purpose of the reserve fund, or other purpose,
promise, refer, or abandon legal proceedings by or against or they may retain any part of the profits of the company
the company; (g) do and carry on all such acts and things as an undivided balance of revenue account without
as the company is by the memorandum of association specially setting the same apart. The company in general
authorized to do anol carry on, except any requiring, meeting may declare a dividend to be paid to the members
under the statutes, the sanction of a special resolution; or any class thereof, according to their respective rights
(h) acquire, upon any terms the directors think fit, any and interests; but no larger dividend shall be declared
rights, privileges, or property which the company can than is recommended by the directors. The declaration
under the memorandum of association acquire or become of the directors as to the amount of the profit shall be conpossessed of, and use the same for the purposes of the clusive. When in the opinion of the directors the income
company, and, in particular, have transferred into or of the company, as shown by a balance sheet made out to
registered in the names of the company or of the directors, the end of the half year, permits half-yearly payments on
1172
FEDERAL RESERVE BULLETIN.
account of dividend, such interim dividends may be declared and paid by the directors for such half year, and
may be so paid on both the preferred and deferred stock
of the company; and if the net income for the whole year
shall in such case prove insufficient to pay the full minimum dividend of 4 per cent for such year on the preferred
stock, the holders of such preferred stock shall be entitled
to have such deficiency made up out of subsequent profits
up to the rate of 4 per cent for such year.
VII. Expenses of management.—A sum equal to onehalf per cent upon the first £500,000 of the share capital
and debenture capital of the company subscribed, and
one-quarter per cent upon all such capital subscribed
beyond £500,000 during any financial year shall be set
aside and received by the directors out of the revenue of
the company for ordinary expenses of management.
This sum includes the remuneration of the directors.
This remuneration is divided among the directors as they
may think fit. The ordinary expenses of management
shall not be deemed to include law costs, nor expenses of
the issue of the share and debenture capital, nor the expenses and charges connected with the purchase or sale
of securities.
VIII. Growth of the company and character of holdings.—
In February, 1890, there was a new issue of 30,000 shares
of £10 each. In March, 1900, the then capital of the
company was increased to £1,500,000 by the creation of
50,000 shares of £10 each. In December, 1907, the share
capital was increased to £2,000,000 by the creation of
50,000 new shares of £10 each. The report of the directors
for the year ended December 31, 1918, showed that the
number "of the company's investments was 274, and they
were distributed as follows:
£
s. d.
Bonds of United States railways...
1, 093, 447 0 5
Guaranteed and preference shares of
United States railways
293,179 1 1
Common shares of United States railways
161,098 5 5
Bonds, debenture stocks, and guaranteed
and preference shares of railways other
than in United States
889, 351 15 3
Ordinary shares of railways other than in
the United States
57,359 0 0
Total in railways, including street"""
railways
2,494,435
Bonds and debentures
£
a. d.
of other companies...
919,928 15 4
Stocks and shares of
other companies
812,234 7 11
Foreign, State, and city
loans
2 2
83,776 18 8
British Government securities
1,100,080 13 6
—
2, 916, 020 15 5
Investments as per balance sheet. . 5, 410, 455 17 7
The company paid dividends in that year of 5 per cent
on £1,200,000 preferred stock and 14 per cent on £800,000
deferred stock. Since 1898, when the dividend on deferred stock was 5 per cent, till 1912, when the present
rate of 14 per cent was reached, there were only two years
when the dividend was not increased. In 1919 the valuation of the capital showed a rise of about 4 per cent.
There was a market depreciation of £473,250 against
which the company has the reserve and carry forward,
amounting in all to £1,206,369. The revenue for the year,
after providing for interest on temporary loans, income
tax, expenses of management, etc., was £187,752 3s. 3d.
Deducting therefrom interest on debenture stock and
debentures for the year (£55,425 8s. lOd.) there remained
a balance of £132,326 14s. 5d., which, added to the balance
brought forward from the preceding year (£66,593 4s. 4d.)
makes the amount carried forward to next year £76,369
18s. 9d.
NOVEMBER, 1020.
The powers granted to the trust just reviewed
are apparently as broad as could be desired for
such an organization. There are, however,
additional powers exercised by other companies, e. g., to establish and carry on the
business of a bank, to negotiate loans for
Governments, to promote companies, etc. In
the case of one organization the articles of
association provide for an advisory board in
North America, and the powers of that board
shall be cited in full in order to indicate the
exact relation of its members to the home
organization:
ART. 119. A body called in these presents the advisory
board is constituted in the manner and for the purposes
herein mentioned.
ART. 120. The advisory board shall consist of not more
than seven members or Jess than three. The qualification
of any member of the advisory board shall be the same as
that of a director. Any member of the advisory board shall
be entitled to be present and speak, but not to vote at all
meetings of the board held whilst such member shall be in
England, and also, upon giving to the secretary an address
for service in the United Kingdom, to have sent by post
to him at such address notice of all board meetings in the
same manner as if he were a director. A director may be
a member of the advisory board.
ART. 121. The advisory board shall superintend and
assist in the conduct of the company's business by any
managing director or manager or agent or agents in North
America, and no investment shall be made by such managing director or manager, or agent or agents unless the same
shall have been previously approved by resolution of the
advisory board, evidenced in writing under the hand of
the secretary and of the chairman of the meeting at which
such resolution was passed.
ART. 122. The advisory board shall in all respects
observe and conform to such directors as may from time to
time be given to it by the board, who may from time to
time and at any time intrust to and confer upon the
advisory board such of the powers exercisable under these
presents by the board as it may think fit, and may confer
such powers for such time and upon such terms and conditions and with such restrictions as it thinks expedient,
and it may confer such powers either collaterally with or
to the exclusion of and in substitution for all or any of the
powers of the board in that behalf, and may from time to
time revoke, withdraw, alter, or vary all or any such
powers.
ART. 123. The advisory board at any time may act, notwithstanding any vacancy in its body.
ART. 124. Except where otherwise expressly provided
all the provisions of these presents, with reference to the
rotation of directors and proceedings of the board, shall
mutatis mutandis apply to the rotation and proceedings of
the members of the advisory board, except that .the members of the advisory board shall in no case be elected by
the company, but every vacancy on such board shall be
filled by the appointment thereto of such person as the
continuing members for the time being of the advisory
board may nominate with the previous approval of the
board.
Two members of the advisory board, other than the
managing director or manager, present in person, shall
form a quorum.
ART. 126. The advisory board may from time to time
appoint any person to be its secretary, and subject to the
terms of such appointment may from time to time remove
such secretary and appoint another in his place, or otherwise act in relation to such secretary, as the advisory board
in its discretion may think fit. The remuneration of such
secretary shall be from time to time fixed by the board.
FEDERAL RESERVE BULLETIN.
NOVEMBER. 1920.
A variation in the organization of investment trusts is to be found in another company.
Its revenue is derived from three sources: First,
interest and dividends from investments.
These, after deducting interest on money borrowed and loaned during the year, aggregated
£47,061. Secondly, trusteeships, registrarships, and secretaryships. The company is
now acting as trustee for sums involving
£64,292,107, as well as registrar for securities
and shares having a total nominal value of
£10,880,380. The revenue during the year derived from these sources amounted to £10,383.
Thirdly, carrying on the business of an industrial branch, arranging and financing industrial
undertakings, underwriting, issuing new capital.
This company says that of its investments at
the end of a recent financial year over 61 per
cent were in railways, electric railways, electric
light, and gas or water power companies, and
over 60 per cent were quoted on the London
Stock Exchange. The scope of this company
is restricted to that of an investment trust
company, but in normal times a large and
profitable general financial business in which
privacy is an essential element is carried on.
In their annual reports some of the trusts
give full lists of their holdings of securities,
which show widespread and varied dealings.
As a rule, however, the companies do not publish this detailed information, which, of course,
is useful only to holders of shares or debenture
stock or to intending investors. The directors
of these corporations are somewhat proud, and
rightly so, of their success in the past, in a department of finance requiring accurate knowledge of conditions abroad, a nicely balanced
scheme not only attractive to investors but
also affording ample security to share and debenture holders, and a certain subtlety in
working out the averaging process and in providing and utilizing to the best advantage the
reserve fund.
*y*
^p
*7^
?jC
*7^
It must not be understood from the foregoing survey that all investment trusts had uniformly good results from their investments.
During the years of the war, particularly,
investment trust companies in Great Britain
have passed through critical times, owing to
the serious fall in values. The degree of seriousness depended, of course, upon the kind of
securities and the particular country in which
a company was interested. An organization
dealing mostly in Russian securities, for example, has had a very interesting and sad history
to relate in progressive degree during the war.
The company was organized November 1, 1909,
and devoted most of its attention to invest-
1173
ments in Russia. In 1912 the investments at
middle market prices had an aggregate value,
as stated in the assets, of £1,482,000. In the
vear 1913 the assets had increased to some
£2,000,000. In May of 1913, in conjunction
with a powerful syndicate, this trust
issued
Russian-South Eastern Railway Co.7s government guaranteed bonds to the amount of
£3,096,300. For the period January to June,
1914, the trust had earned substantial profits,
a large part of which was absorbed in the second half of the year by losses caused by the
war. The directors recognized that the • war
would lead to reduced revenues, necessitating
drastic reduction in the trust's expenditures,
but such reduction could only be made gradually. The assets in the balance sheet of 1915
were carried at middle market prices of December 31, 1913, and those subsequently acquired
were carried at cost, making a total amount
of investment of over £2,000,000. The directors were able to report an increase in the trust
investments in 1916, owing to the liquidation
of syndicates which had in the previous year
been included in the list of debtors, but^ the
gradual falling off in revenue and the noninterest paying investments of the trust were
affected generally by the war conditions. The
latter reports of the trust do not enter into any
of the peculiar conditions of the turmoil -in
Russia, but continue the statement of investment in the trust owned debenture stock at
costs, while the other investments are taken at
middle market prices at the 31st of December,
1913.
The prewar position enjoyed by investment
trust companies in Great Britain was to a
large extent retrieved during 1919 by the substantial rise which took place in prices. One
effect of the war on the business of these
companies is, however, noticeable. Prior to
the war there was available in Great Britain
every year a large surplus of funds for foreign
investment. Owing to the tremendous expense
to which the country has been put in connection with the prosecution of the war, which
has brought the national debt up to $40,000,000,000 and has obliged the British Government
to avail itself of every possible expedient not
only to keep money in the country and to
attract it into Government coffers, but to
obtain money and credit from abroad as well,
the surplus funds available for foreign investment have dwindled, and the directors of these
investment trusts have been forced to reverse
their former methods of business and to endeavor to push the sale of British securities
abroad. In this endeavor, however, they have
met with considerable difficulty on account of
the present British income taxes.
1174
FEDERAL RESERVE BULLETIN.
NOVEMBER,
1920.
State Banks and Trust Companies Admitted. Fiduciary Powers Granted to National Banks.
The following list shows the State banks and trust comThe applications of the following banks for permission
panies which have been admitted to membership in the to act under section 11 (k) of the Federal Reserve Act have
Federal Reserve System during the month of October, been approved by the Board during the month of October,
1920:
1920.
DISTRICT NO. 1.
One thousand four hundred and forty-six State institutions are now members of the system, having a total Trustee, executor, administrator, registrar of stocks and bonds, guardian
capital of $506,068,000, total surplus of $499,149,680,
of estates, assignee, receiver, committee of estates of lunatics:
The Third National Bank of Springfield, Springfield, Mass.
and total resources of $10,129,881,264.
The New Haven Bank, N. B. A., New Haven, Conn.
DISTRICT NO. 2.
Capital.
Surplus.
Total
District No. 8.
Lewis County Trust Co., Lowville, N . Y
$100,000
$50,000
$950,400
District No. S.
Dime Trust <fe Safe Deposit Co.,
Shamokin, Pa
The MiU Hall State Bank, Mill
Hall, Pa
125,000
125,000
1,461,025
35,000
15,000
323,698
50,000
100,000
4,000
14,800
213,109
368,845
District No. 6.
Bank of Commerce, Clayton, Ala.
Exchange Bank of Valdosta, Ga..
125,000
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The Huntington National Bank, Huntington, W. Va.
District No. 9.
Citizens State Bank of St. Peter,
St. Peter, Minn
First State Bank, Walnut Grove,
Minn
Clarks Fork Valley Bank, Fromberg, Mont
Farmers & Merchants State Bank
of Saco, Saco, Mont
First State Bank, Golden Valley,
N.Dak
Citizens Bank & Trust Co., Rapid
City, S. Dak
50,000
20,000
770,763
50,000
2,500
400,627
25,000
1,000
210,756
25,000
1,000
223,469
25,000
2,500
220,789
50,000
10,000
636,930
2,000,000
200,000
23,886,704
25,000
12,500
198,551
District No. 10.
Midwest Reserve Trust Co., Kansas City, Mo
DISTRICT N O . 4.
1,348,455
Bank,
125,000
DISTRICT NO. 3.
Guardian of estates, assignee, receiver, committee of estates of lunatics:
The First National Bank of Lansdale, Lansdale, Pa.
The Southwark National Bank, Philadelphia, Pa.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The First National Bank of Port Allegany, Port Allegany, Pa.
The Chelsea National Bank of Atlantic City, Atlantic City, N. J.
The First National Bank of Camden, Camden, N. J.
The Ephrata National Bank, Ephrata, Pa.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
Brotherhood of Locomotive Engineers Cooperative National Bank
of Cleveland, Ohio.
District No. 7.
Madison County State
Winterset, Iowa
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The Peoples National Bank of Hudson Falls, Hudson Falls, N. Y.
The Wyoming County National Bank of Warsaw, Warsaw, N. Y.
The First National Bank of Garfield, Garfield, N. J.
District No. 11.
DISTRICT NO. 5.
DISTRICT NO. 6.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The Whitney-Central National Bank of New Orleans, New Orleans,
La.
DISTRICT NO. 7.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The Manufacturers National Bank of Eacine, Racine, Wis.
The First National Bank of Ripon, Ripon, Wis.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver:
The First National Bank of Paulina, Paulina, Iowa.
DISTRICT NO. 9.
Kilgore State Bank, Kilgore, Tex.
District No. 12.
Aurora State Bank, Aurora,
Central Point State Bank, Centi
Point, Oreg
Bank of Iron County, Parowan,
Utah
State Bank of Payson, Payson,
Utah
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The First National Bank of Windom, Windom, Minn.
25,000
13,000
369,217
DISTRICT N O . 10.
25,000
5,000
328,866
35,000
21,000
324,656
50,000
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
The Southwest National Bank of Oklahoma City, Oklahoma City,
Okla.
10,000
425,253
WITHDRAWALS.
Elizabeth State Bank, Elizabeth, 111.
Oyster Bay Bank, Oyster Bay, N. Y.
DISTRICT NO. 11.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, committee of estates of lunatics:
Dallas National Bank, Dallas, Tex.
The Citizens National Bank of Waxahachie, Waxahachie, Tex.
The State National Bank of El Paso, El Paso, Tex.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver:
The First National Bank of Brenham, Brenham, Tex.
CHANGE OF NAME.
Farmers Savings Bank, Walla Walla, Wash., to The Farmers and
Merchants Bank of Walla Walla.
CONVERSION.
• The Marine Bank of Seattle, Seattle, Wash., to The Marine Nationa
Bank of Seattle.
Foreign Branches.
A branch of the National City Bank, New
York City, was opened at London, England,
on October 1, 1920.
NOVEMBER,
FEDERAL RESERVE
1020.
1175
BULLETIN.
back to April of 1915. When separated according to
Federal Reserve districts, the September statement
The Comptroller of the Currency reports the following reveals more failures than in that month of 1919 in each
increases and reductions in the number and capital of of the 12 districts, aside from the third district, and only
national banks during the period from September 25 to in the fourth and sixth districts is there any reduction in
October 29, 1920, inclusive:
the indebtedness. In several instances, notably in the
second and seventh districts, the September liabilities
Banks.
are very much above those of that month of last year.
New National Bank Charters.
New charters issued to
With capital of.
Increase of capital approved
for
With new capital ofJ
Aggregate number of new charters and banks increasing capital
With aggregate of new capital authorized
Number of banks liquidating (other than those
consolidating with other national banks under
the act of June 3, 1864)
Capital of same banks
Number of banks reducing capital
Reduction of capital
Total number of banks going into liquidation or
reducing capital (other than those consolidating
with other national banks under the act of June
3,1864)
Aggregate capital reduction
Consolidation of national banks under the act of
Nov. 7,1918
Capital
The foregoing statement shows the aggregate of increased capital for the period of the banks embraced in statement was
Against this there was a reduction of capital owing
to liquidation (other than for consolidation with
other national banks under the act of June 3,
1864), and reductions of capital of
Net increasse
Failures during
$2,660,000
"'2*975*666
5,635,000
775,000
"75*666
850,000
*i,'666"666
5,635,000
850,000
4,785,000
1
Includes an increase in capital of $100,000 incident to a consolidation
under act of Nov. 7,1918.
Dollar Exchange.
Under the provisions of section 13 of the
Federal Reserve Act, which provides that member banks, with the approval of the Federal
Reserve Board, may accept drafts for the purpose of furnishing dollar exchange, drawn upon
them by banks or bankers located in foreign
countries or dependencies or insular possessions of the United States in which it is determined that the usages of trade require such
acceptance facilities, the Board has designated
as such the following countries and insular
possessions: Argentina, Bolivia, Brazil, British
Guiana, British Honduras, Chile, Colombia,
Costa Rica, Cuba, Dutch Guiana, Ecuador,
French Guiana, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Porto Rico,
San Salvador, Santo Domingo, Trinidad, Uruguay, and Venezuela.
Number.
Liabilities.
District.
First
Second
Third
Fourth
Fifth... . .
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Total...
1920
1919
73
145
25
65
54
44
67
35
16
26
36
91
52
92
29
48
42
40
48
18
9
20
7
68
$1,360,762
14,551,283
1,417,524
1,348,681
1,646,417
500,371
5,679,728
352,873
99, 730
466,451
864,924
1,265,544
677
473
29,554,288
1920
1919
$1,037,546
2 335 120
816,230
1,559,307
704,352
771,880
661,371
210,616
90,282
152,458
48,883
403,274
8,791,319
Acceptances to 100 Per Cent.
Since the issuance of the October BULLETIN the following banks have been authorized by the Federal Reserve
Board to accept drafts andibills of exchange up to 100 per
cent of their capital and surplus:
National Bank of Commerce, Detroit, Mich.
Manufacturers & Traders National Bank, Buffalo, N. Y.
Citizens Commercial Trust Co., Buffalo, N. Y.
First National Bank, Greensburg, Pa.
November Forecast of Corn Production.
November crop reports do not differ from October forecasts for any of the principal crops, with the exception of
corn. Figures of corn production issued by the Bureau of
Crop Estimates as of November 1 are shown by Federal
Reserve districts in the table below. Although the corn
crop is expected to be about 17,000,000 bushels below the
October forecast, yet it is the largest crop ever produced.
November forecasts are lower than those of the previous
month for all the important corn-producing districts, except the Chicago district, where an expected increase of
25,000,000 bushels is shown. The corn crop of the Chicago district in the statement reaches 965,000,000 bushels,
a larger total than the crop raised in the entire United
States in any year prior to 1870.
Production of corn by Federal Reserve districts.
[Forecasts of the Bureau of Crop Estimates.]
[In thousands of bushels.]
Commercial Failures Reported.
Federal Reserve district.
Continuance of the increase in the country's business
mortality is reflected in the 576 commercial failures
reported to R. G. Dun & Co. during three weeks of October, Boston
as against only 297 in the corresponding period of 1919. New York
Philadelphia.
The returns for September, the latest month for which Cleveland
complete statistics are available, disclose 677 defaults R i c h m o n d . . . .
for $29,554,288 of liabilities, whereas in September of last Atlanta
year there were but 473 insolvencies, involving $8,791,319 Chicago
St. Louis
of indebtedness. Excepting the 681 reverses of July of Minneapolis..
the present year, the September failures exceed in number Kansas City...
those of any month since December, 1918, and the liabil- Dallas
San Francisco.
ities, owing to an unusual number of large defaults, are
Total....
the heaviest of any month, excepting June of this year,
September.
Nov. 1 I O c t . l
forecast
forecast
for 1920.
for 1920.
8,101
38,533
63,423
206,932
199,037
251,145
964,830
456,070
250,088
554,258
197,541
9,168
3,199,126
8,166
39,171
62,563
211,282
199,349
259,043
939,972
468,004
260,030
561,543
197,680
9,389
3,216,192
Sept.l
forecast
for 1920.
7,692 !
37,866 i
61,769 !
212,077 |
202,334 !
259,295 !
896,181 i
464,938 |
234,226 !
548,679 |
196,997 I
Estimate
for 1919.
10,276
41,089
66,444
212,297
188,994
240,315
927,852
380,722
242,363
372,870
225,743
8,485
9,295 !
3,131,349 ; 2,917,450
1176
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
RULINGS OF THE FEDERAL RESERVE BOARD.
Eligibility of paper incident to cotton factorage business.
On page 1054 of the FEDERAL RESERVE
BULLETIN for November, 1919, the Federal
Reserve Board published a ruling to the effect
that the note of a cotton factor, the proceeds
of which are used by the cotton factor, to lend
to a third party, is finance paper rather than
commercial or agricultural paper and is, therefore, ineligible for rediscount, even though the
third party to whom such loan is made may
use the proceeds for a commercial or agricultural purpose. The Federal Reserve Board has
recently been requested to reconsider this
ruling.
This ruling has, in effect, been incorporated
in the regulations of the Board, Series of 1920,
which have just been issued. Section A,
Paragraph II of Regulation A provides in
part as follows:
section 13 of the Federal Reserve Act, however?
the test of eligibility is not the character of
the business of the borrower, but is the use of
the proceeds of the particular instrument.
Inasmuch as the loaning of money is in itself
a finance rather than a commercial operation,
a note, the proceeds of which are loaned by
the borrower to a third party, is ineligible for
rediscount, irrespective of the general character
of the borrower's business.
The Board desires to call attention to the
fact that the ruling does not preclude cotton
factors' notes from being eligible under some
circumstances. In the first paragraph of the
ruling it was said:
* * * In view of the fact that it is apparent from all
the evidence on hand that the circumstances and conditions under which so-called cotton factors' paper is issued
vary so much in different cases, it is impossible to give
any categorical answer to the question presented, or to
make any general ruling that cotton factors' paper, as
The Federal Reserve Board, exercising its statutory such, is eligible or ineligible for rediscount.
right to define the character of a note, draft, or bill of
exchange eligible for rediscount at a Federal Reserve
In reiteration of this statement the Board
Bank, has determined that—
points out again that the fact that a cotton
(a) It must be a note, draft, or bill of exchange which factor is the maker of a note does not of itself
has been issued or drawn, or the proceeds of which have
been used or are to be used in the first instance, in pro- determine the eligibility or ineligibility of the
ducing, purchasing, carrying, or marketing goods in one note for rediscount. The test of the eligibility
or more of the steps of the process of production, manu- of paper is whether it complies with the terms
facture, or distribution, or for the purpose of carrying or of the Federal Reserve Act and the Board's
trading in bonds or notes of the United States.
The words "in the first instance" did not
appear in the Board's previous regulations
and were inserted in Regulation A of the
series of 1920 for the express purpose of making
it clear that the making of loans to third
parties is a finance rather than a commercial
or agricultural purpose, even though it appears
that the third parties are to use the funds for
commercial or agricultural purposes.
After a very full and careful review of the
facts which have been presented to the Board,
and of the questions of law involved, the
Federal Reserve Board is of the opinion that
the ruling as published and as in effect incorporated in the Board's regulations is correct
in principle, and that under the terms of the
Federal Reserve Act as it now stands a contrary ruling is not possible. It is urged that
since the loans made by a cotton factor to his
customers are merely incidental to the main
business of the factor which is the marketing
of cotton, and since the marketing of cotton
is a commercial business, a cotton factor's
note should be considered eligible commercial
paper even though the proceeds are loaned to
the factor's customers. Under the terms of
regulations, and this in turn involves the
question of the use of the proceeds. In last
analysis this is a question of fact, and it is the
function of the Federal Reserve Banks, rather
than of the Federal Reserve Board, to determine questions of fact in the light of the circumstances of particular cases. As was said
in the last paragraph of the ruling in question:
In order to ascertain the necessary facts it may be proper
for a Federal Reserve Bank to require statements or affidavits from the maker of the note as to the exact nature
of the transaction out of which it arises. With these
principles as a guide, the Federal Reserve Bank must
determine the eligibility of any particular paper in the
light of the circumstances in which it was issued, and its
proceeds disposed of.
In connection with the request made to the
Federal Reserve Board that it reconsider its
previous ruling, the argument was made that
section 13 of the Federal Reserve Act makes
notes of cotton factors eligible for rediscount
when secured by cotton, irrespective of whether
or not the proceeds have been, or are to be,
used for commercial or agricultural purposes.
It was urged that this is the effect of that
part of section 13 which immediately follows
the definition of eligible commercial and
agricultural paper and which provides that—
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Nothing in this act contained shall be construed to
prohibit such notes, drafts, and bills of exchange, secured
by staple agricultural products, or other goods, wares, or
merchandise from being eligible for such discount; but
such definition shall* not include notes, drafts, or bills
covering merely investments or issued or drawn for the
purpose of carrying or trading in stocks, bonds, or other
investment securities, except bonds and notes of the
Government of the United States.
The Board is of the opinion that the word
"such," qualifying notes, drafts, and bills of exchange, in the sentence quoted must necessarily
be construed as referring to notes, drafts, and
bills of exchange defined above—that is,
notes, drafts, and bills of exchange which are
eligible by reason of the fact that the proceeds
have been or are to be used for agricultural,
industrial, or commercial purposes. The Board
is of the opinion, therefore, that the provision
quoted is merely a declaration that paper
which is eligible for rediscount by reason of the
use of the proceeds is not made ineligible by
reason of being secured, and that the provision can not be construed, as the Board was
urged to construe it, to make eligible for rediscount paper which is secured in the manner
specified but which is not eligible commercial
or agricultural paper as defined in the preceding part of the section.
This being so, the precise meaning of the
phrase "covering merely investments" is of no
importance in the case under consideration.
The clause in which this phrase appears provides in effect that "notes, drafts, and bills
covering merely investments" shall under no
circumstances be eligible. This can not, of
course, be construed as an affirmative enactment making eligible all paper other than that
"covering merely investments." The clause
merely adds another condition with which
paper must comply in order to be eligible for
rediscount. Since the Board has determined
that paper the proceeds of which have been
used to lend to a third party does not meet the
requirement as to the use of the proceeds for a
commercial or agricultural purpose, such paper
is ineligible irrespective of whether or not it is
paper "covering merely investments."
The Federal Reserve Board has frequently
suggested that if the cotton factor's loans to7
customers were evidenced by the customers
notes, these notes could be indorsed and discounted by the factor and might then be eligible for rediscount by Federal Reserve Banks
upon satisfactory evidence that the proceeds
of the loans represented by the notes have
been, or are to be, used for agricultural or commercial purposes. The Board has also had
occasion to rule recently that drafts drawn by
1177
cotton growers, accepted by a cooperative marketing association organized for the purpose of
marketing the cotton delivered by the growers,
and discounted by the growers at their banks,
may be eligible for rediscount by Federal Reserve Banks when it is shown that the proceeds
of the accepted drafts have been, or are to be,
used by the growers for agricultural purposes.
The principle of this ruling is, of course, applicable to cotton factors as well as to cooperative
marketing associations, so that under it drafts
of cotton producers or owners drawn upon and
accepted by the cotton factors may be eligible
for rediscount by Federal Reserve Banks when
discounted by the drawers. This would not be
true, however, if the factor should retain the
drafts after acceptance and should discount
them at his bank. In that case the factor and
not the producer would be the borrower in the
first instance and the use of the proceeds by
the factor would determine the eligibility of
the drafts.
The Board understands that it has always
been the practice in the cotton factorage business for the factor's loans to his customers to
be evidenced merely by open accounts, and it
has been said that it is not possible to change
that practice, established by long custom, so
as to require customers to give their notes to
evidence these loans. The Federal Reserve
Board can not help but feel that this difficulty
will not prove as great as is feared. This is
not the first time that the plea has been made
that business usage does not permit of compliance with requirements which those administering the Federal Reserve System consider
mandatory as a matter of law or essential as a
matter of banking prudence, and in many instances, notably with respect to the requirement of borrowers' statements, what has at
first seemed impossible has proved by experience to be both practicable and beneficial.
Another suggestion has been made by one of
the Federal Reserve Banks which may be of
assistance to the cotton factors. When the
factor sells cotton on credit terms which are
customary and which are not unnecessarily or
unreasonably long, if the purchaser gives a note,
or accepts a draft drawn on him by the factor,
for the amount of the purchaser's obligation,
that note or accepted draft will have been
"issued or drawn" for a commercial purpose
within the meaning of section 13 of the Federal
Reserve Act and will be eligible for rediscount
by Federal Reserve Banks if it complies in
other respects with the law and the Board's
regulations.
1178
FEDEKAL RESERVE BULLETIN.
NOVEMBER. 1920.
Member banks required to vote for Federal Reserve name of the first, second, and other choices for a director
of Class A and for a director of Class B, but shall not vote
Bank directors.
more than one choice for any one candidate. * * *
Any candidate having a majority of all votes cast in the
The Federal Reserve Board has designated column
of first choice shall be declared elected. If no
Tuesday, November 16, 1920, as the date for candidate have a majority of all the votes in the first
the opening of the polls for the coming election column, then there shall be added together the votes cast
of Class A and Class B directors to succeed by the electors for such candidates in the second column
the votes cast for the several candidates in the first
the directors whose terms will expire on and
column. If any candidate then have a majority of the
December 31, 1920. Heretofore comparatively electors voting, by adding together the first and second
few ballots have been cast in such elections, choices, he shall be declared elected. If no candidate
and in order that each member bank belonging have a majority of electors voting when the first and second
choices shall have been added, then the votes cast in the
to a group which is to elect a Class A or Class B third
column for other choices shall be added together in
director will participate in the coming election like manner, and the candidate then having the highest
of such directors the Federal Reserve Board number of votes shall be declared elected.
desires to point out that the terms of the
Federal Reserve Act are mandatory with
respect to the authorization by member banks
of officers to cast the votes of member banks
and with respect to the casting of proper
ballots by the officers so authorized.
Under the terms of section 4 of the Federal
Reserve Act as amended September 26, 1918,
each member bank is permitted to nominate
to the chairman of the board of directors of the
Federal Reserve Bank of the district one
candidate for director of Class A and one
candidate for director of Class B, and the
candidate so nominated shall be listed by the
chairman indicating by whom nominated, and
a copy of said list shall, within 15 days after
its completion, be furnished by the chairman
to each member bank. Section 4 then provides that—
Each member bank by a resolution of the board or by an
amendment to its by-laws shall authorize its president,
cashier, or some other officer to cast the vote of the member
bank in the elections of Class A and Class B directors.
Within 15 days after the receipt of the list of candidates the duly authorized officer of a member bank shall
certify to the chairman his first, second, and other choices
for director of Class A and Class B, respectively, upon a
preferential ballot upon a form furnished by the chairman
of the board of directors of the Federal Reserve Bank of the
district. Each such officer shall make a cross opposite the
While it is optional with member banks
whether or not they shall nominate candidates
for Class A or Class B directors, under the
terms of the provisions just quoted it is mandatory upon each member bank to authorize,
by a resolution of the board of directors or by
an amendment to its by-laws, some officer to
cast a vote in behalf of the bank, in the election
of such directors, and upon the officer so authorized to certify to the chairman of the Federal
Reserve Bank his first, second, and third
choices for such directors. Inasmuch as each
Class A or Class B director is elected by one
group of member banks, nominations may be
made and ballots shall be cast only by those
member banks which belong to the group
which is to participate in the particular
election.
The law also makes it mandatory upon the
officer casting the ballot to designate his first,
second, and other choices, and provides that
under some circumstances votes for second and
third choices may determine the election.
The Federal Reserve Board has heretofore
ruled that when there are three or more
nominees no ballot is valid unless the first,
second, and third choices are designated
thereon.
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
1179
REGULATIONS OF THE FEDERAL RESERVE BOARD.
WASHINGTON, October 6, 1920.
The Federal Reserve Board transmits herewith a new
issue of all of its regulations of 1917 applicable to member
banks. Regulation L, relating to "Interlocking bank
directorates under the Clayton Act," is entirely new.
Regulation F of the new series supersedes Regulation F,
Series of 1919, and Regulation K of the new series supersedes Regulation K, Series of 1920, issued in March of the
present year. The other regulations of the new series
supersede the corresponding regulations of the 1917 series.
Regulations A, B, and I have been materially amended.
Regulation C has been amended only by the insertion of
two sentences in the first paragraph with reference to the
question of when trust receipts and bills of lading drafts
may be considered "actual security" within the meaning
of section 13 of the Federal Reserve Act. There have
been no amendments to Regulation D with the exception
of two changes intended to make clear that in the case of
"time deposits, open accounts," the 30 days' written
notice of withdrawal must be actually required by the
bank, whereas in the case of "savings accounts" and
"time certificates of deposit" the requirement of notice
will be complied with if the bank reserves the right to
demand 30 days' written notice of withdrawals. The only
substantial change in Regulation K is an amendment to
the paragraph entitled "Acceptances," which permits
corporations organized under the provisions of section 25a
of the Federal Reserve Act to accept, subject to substantially the same conditions as are imposed by law upon
member banks, drafts drawn by banks or bankers located
in foreign countries, or dependencies or insular possessions of the United States, for the purpose of furnishing
dollar exchange as required by the usages of trade in those
countries, dependencies, or possessions. There have been
no substantial changes in Regulations F and H, and
Regulations E and G are identically the same as in the
1917 series.
Regulation J, relating to "Check clearing and collection," has not been changed in substance except that
certain provisions have been struck out which are no
longer applicable. Nothing has been added to this regulation and it contains only very general provisions. At
the present time conditions vary so much in the different
districts that it is impracticable to formulate detailed
regulations on this subject to be applied in all districts.
The Federal Reserve Board will consider a revision of
this regulation if and when future developments make it
seem practicable and advisable to issue a more comprehensive regulation.
Instructions which concern only Federal Reserve Agents
or Federal Reserve Banks will be covered in separate
letters or regulations, as in the past.
W. P. G. HARDING, Governor.
W. T. CHAPMAN, Secretary.
REGULATION A, SERIES OF 1920.
(Superseding Regulation A of 1917.)
REDISCOUNTS U N D E R SECTION 13.
A. NOTES,
DRAFTS,
AND BILLS
I. General statutory
OF EXCHANGE.
provisions.
Any Federal Reserve Bank may discount for any of its
member banks any note, draft, or bill of exchange, provided—
(a) It has a maturity at the time of discount of not more
than 90 days, exclusive of days of grace; but if drawn or
issued for agricultural purposes or based on live stock,
it may have a maturity at the time of discount of not more
than six months, exclusive of days of grace.
(b) It arose out of actual commercial trasactions; that
is, it must be a note, draft, or bill of exchange which has
been issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been
used or are to be used for such purposes.
(c) It was not issued for carrying or trading in stocks,
bonds, or other investment securities, except bonds and
notes of the Government of the United States.
(d) The aggregate of notes, drafts, and bills bearing the
signature or indorsement of any one borrower, whether a
person, company, firm, or corporation, rediscounted for
any one member bank, whether
State or National, shall at
no time exceed 10 per cent l of the unimpaired capital and
surplus of such bank; but this restriction shall not apply
to the discount of bills of exchange drawn in good faith
against actually existing values.
(e) It is indorsed by a member bank.
(/) It conforms to all applicable provisions of this regulation.
No Federal Reserve Bank may discount for any member
State bank or trust company any of the notes, drafts, or
bills of any one borrower who is liable for borrowed money
to such State bank
or trust company in an amount greater
than 10 per cent 2 of the capital and surplus of that State
bank or trust company, but in determining the amount
of money borrowed from such State bank or trust company
the discount of bills of exchange drawn in good faith
against actually existing value and the discount of commercial or business paper actually owned by the person
negotiating the same shall not be included.
Any Federal Reserve Bank may make advances to its
member banks on their promissory notes for a period not
exceeding 15 days, provided that they are secured by
notes, drafts, bills of exchange, or bankers' acceptances
which are eligible for rediscount or for purchase by Federal Reserve Banks, or by the deposit or pledge of bonds
or notes of the United States, or bonds of the War Finance
Corporation.
I I . General character of notes, drafts, and bills of exchange
eligible.
The Federal Reserve Board, exercising its statutory
right to define the character of a note, draft, or bill of exchange eligible for rediscount at a Federal Reserve Bank,
has determined that—
(a) It must be a note, draft, or bill of exchange which
has been issued or drawn, or the proceeds of which have
been used or are to be used, in the first instance, in producing, purchasing, carrying, or marketing goods 3 in one or
1 Under the terms of section 11 (TO) as amended by the act of Mar. 3,
1919, a Federal Reserve Bank may, until Dec. 31, 1920, rediscount for
any member bank, whether State or National, notes, drafts, and bills
bearing the signature or indorsement of any one borrower in an amount
not to exceed 20 per cent of the member bank's capital and surplus, provided that the excess over and above 10 per cent be secured by not less
than a like face amount of bonds or notes of the United States issued
since Apr. 24,1917, or certificates of indebtedness of the United States.
2 Under the terms of section 11 (TO) as amended by the act of Mar. 3/
1919, a Federal Reserve Bank may, until Dec. 31, 1920, rediscount for a
member State bank or trust company paper of any one borrower secured
by not less than a like face amount of bonds or notes of the United States
issued since Apr. 24, 1917, or certificates of indebtedness of the United
States, even though such State bank or trust company may already have
loaned to the borrower under his regular line of credit in excess of the 10
per cent limit defined above. If, however, the member State bank or
trust company has loaned to one borrower in excess of that 10 per cent
limit under his regular line of credit the Federal Reserve Bank can not
rediscount for that State bank or trust company any of the paper of that
borrower taken under that regular line of credit, but may rediscount
any paper so secured by Government obligations of the kinds specified
up to an amount not in access of 20 per cent of the capital and surplus of
such State bank or trust company.
3
When used in this regulation, the word "goods" shall be construed
to include goods, wares, merchandise, or agricultural products, including
live stock.
1180
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
more of the steps of the process of production, manufacture,
or distribution, or for the purpose of carrying or trading in
bonds or notes of the United States.
(b) It must not be a note, draft, or bill of exchange the
proceeds of which have been used or are to be used for permanent or fixed investments of any kind, such as land,
buildings, or machinery, or for any other capital purpose.
(c) It must not be a note, draft, or bill of exchange the
proceeds of which have been used or are to be used for investments of a purely speculative character or for the purpose of lending to some other borrower.
(d) It may be secured by the pledge of goods or collateral
of any nature, including paper, which is ineligible for rediscount, provided it (the note, draft, or bill of exchange)
is otherwise eligible.
to the order of a specified person; and a trade acceptance
is defined as a draft or bill of exchange, drawn by the
seller on the purchaser of goods sold,1 and accepted by
such purchaser.
(b) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank shall take such steps
as it deems necessary to satisfy itself as to the eligibility
of the draft, bill, or trade acceptance offered for rediscount
and may require a recent financial statement of one or more
parties to the instrument. The draft, bill, or trade acceptance should be drawn so as to evidence the character of the
underlying transaction, but if it is not so drawn evidence
of eligibility may consist of a stamp or certificate affixed
by the acceptor or drawer in a form satisfactory to the
Federal Reserve Bank.
III. Applications for rediscount.
VI. Six months' agricultural paper.
All applications for the rediscount of notes, drafts, or bills
of exchange must contain a certificate of the member bank,
in form to be prescribed by the Federal Reserve Bank,
that, to the best of its knowledge and belief, such notes,
drafts, or bills of exchange have been issued for one or
more of the purposes mentioned in II (a), and, in the case
of a member State bank or trust company, all applications
must contain a certificate or guaranty to the effect that the
borrower is not liable, and will not be permitted to become
liable during the time his paper is held by the Federal
Reserve Bank, to such bank or trust company for borrowed
money in an amount greater than that specified in I above.
IV. Promissory notes.
(a) Definition.—A promissory note, within the meaning
of this regulation, is defined as an unconditional promise,
in writing, signed by the maker, to pay, in the United
States, at a fixed or determinable future time, a sum certain in dollars to order or to bearer.
(b) Evidence of eligibility and requirement of statements.—A Federal Reserve Bank must be satisfied by reference to the note or otherwise that it is eligible for rediscount. The member bank shall certify in its application
whether the note offered for rediscount has been discounted
for a depositor other than a bank or for a nondepositor and,
if discounted for a bank, whether for a member or a nonmember bank. The member bank must also certify
whether a financial statement of the borrower is on file
with it.
A recent financial statement of the borrower must be
on file with the member bank in all cases, except with
respect to any note discounted by a member bank for
a depositor other than a bank or another member bank if—
(1) It is secured by a warehouse, terminal, or other
similar receipt covering goods in storage, or by bonds or
notes of the United States; or
(2) The aggregate of obligations of the borrower rediscounted and offered for rediscount at the Federal Reserve
Bank by the member bank is less than a sum equal to
10 per cent of the paid-in capital of the member bank
and is less than $5,000.
The Federal Reserve Bank shall use its discretion in
taking the steps necessary to satisfy itself as to eligibility.
Compliance of a note with II (b) may be evidenced by
a statement of the borrower showing a reasonable excess
of quick assets over current liabilities. A Federal Reserve Bank may, in all cases, require the financial statement of the borrower to be filed with it.
(a) Definition.—Six months' agricultural paper, within
the meaning of this regulation, is defined as a note, draft,
bill of exchange, or trade acceptance drawn or issued for
agricultural purposes, or based on live stock; that is, a
note, draft, bill of exchange, or trade acceptance the proceeds of which have been used, or are to be used, for
agricultural purposes, including the breeding, raising,
fattening, or marketing of live stock, and which has a
maturity at the time of discount of not more than six
months, exclusive of days of grace.
(b) Eligibility.—To be eligible for rediscount, six
months' agricultural paper, whether a note, draft, bill of
exchange, or trade acceptance, must comply with the
respective sections of this regulation which would apply
to it if its maturity were 90 days or less,
B. BANKERS' ACCEPTANCES.
(a) Definition.—-A banker's acceptance within the
meaning of this regulation is defined as a draft or bill of
exchange, whether payable in the United States or abroad
and whether payable in dollars or some other money, of
which the acceptor is a bank or trust company, or a firm,
person, company, or corporation engaged generally in the
business of granting bankers' acceptance credits.
(b) Eligibility.—A Federal Reserve Bank may rediscount any such bill having a maturity at time of discount
of not more than three months, exclusive of days of grace,
which has been drawn under a credit opened for the purpose of conducting or settling accounts resulting from a
transaction or transactions involving any one of the
following:
(1) The shipment of goods between the United States
and any foreign country, or between the United States
and any of its dependencies or insular possessions, or between foreign countries. While it is not necessary that
shipping documents covering goods in the process of shipment be attached to drafts drawn for the purpose of financing the exportation or importation of goods, and while it is
not essential, therefore, that each such draft cover specific
goods actually in existence at the time of acceptance,
nevertheless it is essential as a prerequisite to eligibility
either (a) that shipping documents or a documentary export draft be attached at the time the draft is presented
for acceptance, or (b) if the goods covered by the credit
have not been actually shipped, that there be in existence
a specific and bona fide contract providing for the exportation or importation of such goods at or within a specified
and reasonable time and that the customer agree that the
accepting bank will be furnished in due course with
shipping documents covering such goods or with exchange
V. Drafts, bills of exchange, and trade acceptances.
arising out of the transaction being financed by the credit.
(a) Definition.—A draft or bill of exchange, within the A contract between principal and agent will not be conmeaning of this regulation, is defined as an unconditional sidered a bona fide contract of the kind required above,
order in writing, addressed by one person to another,
1
A consignment of goods or a conditional sale of goods can not be
signed by the person giving it, requiring the person to
"goods sold" within the meaning of this clause. The purwhom it is addressed to pay in the United States at a considered
chase price of goods plus the cost of labor in effecting their installation
fixed or determinable future time a sum certain in dollars may be included in the amount for which the trade acceptance is drawn.
NOVEMBER, 1020.
nor is it enough that there be a contract providing merely
that the proceeds of the acceptance will be used only to
finance the purchase or shipment of goods to be exported
or imported.
(2) The shipment of goods within the United States,
provided shipping documents conveying security title
are attached at the time of acceptance, or
(3) The storage of readily marketable staples,1 provided
that the bill is secured at the time of acceptance by a
warehouse, terminal, or other similar receipt, conveying
security title to such staples, issued by a party independent of the customer, and provided further that the acceptor
remains secured throughout the life of the acceptance.
In the event that the goods must be withdrawn from storage
prior to the maturity of the acceptance or the retirement
of the credit, a trust receipt or other similar document
covering the goods may be substituted in lieu of the
original document, provided that such substitution is conditioned upon a reasonably prompt liquidation of the
credit. In order to insure compliance with this condition, it should be required, when the original document
is released, either (a) that the proceeds of the goods will
be applied within a specified time toward a liquidation of
the acceptance credit or (b) that a new document, similar
to the original one, will be resubstituted within a specified
time, and a Federal Reserve Bank may also rediscount any
bill drawn by a bank or banker in a foreign country or dependency or insular possession of the United States for the
purpose of furnishing dollar exchange, as provided in
Regulation C, provided that it has a maturity at the time
of discount of not more than three months, exclusive of
days of grace.
(c) General conditions.—(1) Acceptances
in excess of 10
per cent.—In order to be eligible, acceptances for any one
customer in excess of 10 per cent of the capital and surplus of the accepting bank must remain actually secured
throughout the life of the acceptance. In the case of
acceptances of member banks this security must consist
of shipping documents, warehouse receipts or other such
documents, or some other actual security growing out of the
same transaction as the acceptance, such as documentary
drafts, trade acceptances, terminal receipts, or trust receipts which cover goods of such a character as to insure
at all times a continuance of an effective and lawful lien
in favor of the accepting bank. Other trust receipts are
not security within the meaning of this paragraph if they
permit the customer to have access to or control over the
goods.
(2) Maturity.-—Although a Federal Reserve Bank may
legally rediscount an acceptance having a maturity at the
time of discount of not more than three months, exclusive
of days of grace, it may decline to rediscount any acceptance the maturity of which is in excess of the usual or
customary period of credit required to finance the underlying transaction or which is in excess of that period reasonably necessary to finance such transaction. Since the
purpose of permitting the acceptance of drafts secured by.
warehouse receipts or other such documents is to permit
of the temporary holding of readily marketable staples in
storage pending a reasonably prompt sale, shipment, or
distribution, no such acceptance should have a maturity
in excess of the time ordinarily necessary to effect a reasonably prompt sale, shipment, or distribution into the
process of manufacture or consumption.
(3) Renewals.—While a national bank may properly
enter into an agreement having more than six months to
run by which it obligates itself to accept drafts of the kinds
described in Regulation C, each individual draft accepted
under the terms of that agreement must, in order to be
eligible, conform in all respects to the provisions of the law
iA readily marketable staple within the meaning of these regulations
may be defined as an article of commerce, agriculture, or industry of
such uses as to make it the subject of constant dealings in ready markets
with such frequent quotations of price as to make (a) the price easily
and definitely ascertainable and (6) the staple itself easy to realize upon
by sale at anytime.
1181
FEDERAL RESERVE BULLETIN.
and these regulations. Inasmuch as each individual acceptance must itself conform to the terms of the law, no
renewal draft whether or not contracted for in advance,
can be eligible if at the time of its acceptance the period
required for the conclusion of the transaction out of which
the original draft was drawn shall have elapsed. The
question of the eligibility of renewal drafts, therefore,
must necessarily depend upon the stage of the transaction
at the time the renewal drafts are drawn.
(d) Evidence of eligibility.—A Federal Reserve Bank
must be satisfied either by reference-to the acceptance
itself or otherwise that it is eligible for rediscount. The
bill itself should be drawn so as to evidence the character
of the underlying transaction, but if it is not so drawn
evidence of eligibility may consist of a stamp or certificate
affixed by the acceptor in form satisfactory to the Federal
Reserve Bank.
REGULATION B, SERIES OF 1920.
(Superseding Regulation B of 1917.)
OPEN-MARKET PURCHASES OF BILLS OF EXCHANGE.
TRADE ACCEPTANCES, AND BANKERS' ACCEPTANCES
UNDER SECTION 14.
I. General statutory provisions.
Section 14 of the Federal Reserve Act provides that
Federal Reserve Banks under rules and regulations to be
prescribed by the Federal Reserve Board may purchase
and sell in the open market, at home or abroad, from or to
domestic or foreign banks, firms, corporations, or individuals, bankers' acceptances and bills of exchange of the
kinds and maturities made eligible by the act for rediscount, with or without the indorsement of a member bank.
II. General character of bills and acceptances eligible.
The Federal Reserve Board, exercising its statutory
right to regulate the purchase of bills of exchange and acceptances, has determined that a bill of exchange or acceptance to be eligible for purchase by Federal Reserve
Banks under this provision of section 14—
(a) Must conform to the relative requirements of Regulation A, except that a banker's acceptance growing out
of a transaction involving the storage within the United
States of goods which have been actually sold, may be
purchased, provided that the acceptor is secured by the
pledge of such goods and, provided further, that the bill
conforms in other respects to the relative requirements of
Regulation A.
(b) Must have a maturity at the time of purchase of not
more than 90 days, exclusive of days of grace, unless it is
a bill drawn on a banker, when it may have a maturity of
three months, exclusive of days of grace.
(c) Must have been accepted by the drawee prior to
purchase by a Federal Reserve Bank unless it is either
accompanied and secured by shipping documents or by
a warehouse, terminal, or other similar receipt conveying
security title or bears a satisfactory banking indorsement.
III. Statements.
A bill of exchange, unless indorsed by a member bank,
is not eligible for purchase until a satisfactory statement
has been furnished of the financial condition of one or
more of the parties thereto.
A bankers' acceptance, unless accepted or indorsed by
a member bank, is not eligible for purchase until the acceptor has furnished a satisfactory statement of its financial
condition in form to be approved by the Federal Reserve
Bank and has agreed in writing with a Federal Reserve
Bank to inform it upon request concerning the transaction underlying the acceptance.
1182
FEDERAL RESERVE BULLETIN.
REGULATION C, SERIES OF 1920.
(Superseding Regulation C of 1917.)
ACCEPTANCE BY MEMBER BANKS OF DRAFTS AND BILLS
OF EXCHANGE.
A. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN
AGAINST DOMESTIC OR FOREIGN SHIPMENTS OF GOODS
OR SECURED BY WAREHOUSE RECEIPTS COVERING
READILY MARKETABLE STAPLES.
I.. Statutory provisions.
Under the provisions of the fifth paragraph of section 13
of the Federal Reserve Act, as amended by the acts of
September 7,1916, and June 21, 1917, any member bank
may accept drafts or bills of exchange drawn upon it,
having not more than six months' sight to run, exclusive
of days of grace, which grow out of transactions involving
the importation or exportation of goods; or which grow
out of transactions involving the domestic shipment of
goods, provided shipping documents conveying or securing
title are attached at the time of acceptance; or which are
secured at the time of acceptance by a warehouse receipt
or other such document conveying
or securing title covering readily marketable staples.x This paragraph limits the
amount which any bank shall accept for any one person,
company,firm,or corporation, whether in a foreign or domestic transaction, to an amount not exceeding at any time, in
the aggregate, more than 10 per centum of its paid-up and
unimpaired capital stock and surplus. This limit, however, does not apply in any case where the accepting bank
remains secured either by attached documents or by some
other actual security growing out of the same transaction
as the acceptance. A trust receipt which permits the
customer to have access to or control over the goods will
not be considered by Federal Reserve Banks to be " actual
security" within the meaning of section 13. A bill of
lading draft, however, is "actual security" even after the
documents have been released, provided that the draft is
accepted by the drawee upon or before the surrender of the
documents. The law also provides that any bank may
accept such bills up to an amount not exceeding at any
time, in the aggregate, more than one-half of its paid-up
and unimpaired capital stock and surplus; or, with the
approval of the Federal Reserve Board, up to an amount
not exceeding at any time, in the aggregate, more than 100
per centum of its paid-up and unimpaired capital stock
and surplus. In no event, however, shall the aggregate
amount of acceptances growing out of domestic transactions exceed 50 per centum of such capital stock and surplus.
II. Regulations.
1. Under the provisions of the law referred to above the
Federal Reserve Board has determined that any member
bank, having an unimpaired surplus equal to at least 20
per centum of its paid-up capital, which desires to accept
drafts or bills of exchange drawn for the purposes described
above, up to an amount not exceeding at any time, in the
aggregate, 100 per centum of its paid-up and unimpaired
capital stock and surplus, may file an application for that
purpose with the Federal Reserve Board. Such application must be forwarded through the Federal Reserve Bank
of the district in which the applying bank is located.
2. The Federal Reserve Bank shall report to the Federal
Reserve Board upon the standing of the applying bank,
stating whether the business and banking conditions prevailing in its district warrant the granting of such applications.
3. The approval of any such application may be rescinded upon 90 days' notice to the bank affected.
i A readily marketable staple within the meaning of these regulations
may be denned as an article of commerce, agriculture, or industry of such
uses as to make it the subject of constant dealings in ready markets with
such frequent quotations of price as to make (a) the price easily and
definitely ascertainable and (6) the staple itself easy to realize upon by
sale at ajiy time.
NOVEMBER, 1920.
B. ACCEPTANCE OF DRAFTS OR BILLS OF EXCHANGE DRAWN
FOR THE PURPOSE OF CREATING DOLLAR EXCHANGE.
I. Statutory provisions.
Section 13 of the Federal Reserve Act also provides that
any member bank may accept drafts or bills of exchange
drawn upon it having not more than three months' sight to
run, exclusive of days of grace, drawn, under regulations
to be prescribed by the Federal Reserve Board, by banks
or bankers in foreign countries or dependencies or insular
possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the
respective countries, dependencies, or insular possessions.
No member bank shall accept such drafts or bills of
exchange for any one bank to an amount exceeding in the
aggregate 10 per centum of the paid-up and unimpaired
capital and surplus of the accepting bank unless the draft
or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security.
No member bank shall accept such drafts or bills in an
amount exceeding at any time in the aggregate one-half
of its paid-up and unimpaired capital and surplus. This
50 per cent limit is seperate and distinct from and not included in the limits placed upon the acceptance of drafts
and bills of exchange as described under section A of this
regulation.
II. Regulations.
Any member bank desiring to accept drafts drawn by
banks or bankers in foreign countries or dependencies or
insular possessions of the United States for the purpose of
furnishing dollar exchange shall first make an application
to the Federal Reserve Board setting forth the usages of
trade in the respective countries, dependencies, or insular
possessions in which such banks or bankers are located.
If the Federal Reserve Board should determine that the
usages of trade in such countries, dependencies, or possessions require the granting of the acceptance facilities applied
for, it will notify the applying bank of its approval and
will also publish in the Federal Reserve Bulletin the
name or names of those countries, dependencies, or possessions in which banks or bankers are authorized to draw on
member banks whose applications have been approved for
the purpose of furnishing dollar exchange.
The Federal Reserve Board reserves the right to modify
or on 90 days' notice to revoke its approval either as to any
particular member bank or as to any foreign country or dependency or insular possession of the United States in
which it has authorized banks or bankers to draw on member banks for the purpose of furnishing dollar exchange.
REGULATION D, SERIES OF 1920.
(Superseding Regulation D of 1917.)
TIME DEPOSITS AND SAVINGS ACCOUNTS.
Section 19 of the Federal Reserve Act provides, in part,
as follows:
Demand deposits, within the meaning of this act, shall
comprise all deposits payable within 30 days, and time
deposits shall comprise all deposits- payable after 30 days,
and all savings accounts and certificates of deposit which
are subject to not less than 30 days' notice before payment,
and all postal savings deposits.
Time deposits, open accounts.
The term "time deposits, open accounts" shall be held
to include all accounts, not evidenced by certificates of
deposit or savings pass books, in respect to which a written
contract is entered into with the depositor at the time the
deposit is made that neither the whole nor any part of such
deposit may be withdrawn by check or otherwise, except
on a given date or on written notice which must be given
by the depositor a certain specified number of days in
advance, in no case less than 30 days.
1183
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Savings accounts.
The term "savings accounts" shall be held to include
those accounts of the bank in respect to which, by its
printed regulations, accepted by the depositor at the time
the account is opened—
(a) The pass book, certificate, or other similar form of
receipt must be presented to the bank whenever a deposit
or withdrawal is made, and
(6) The depositor may at any time be required by the
bank to give notice of an intended withdrawal not less than
30 days before a withdrawal is made.
Time certificates of deposit.
A "time certificate of deposit" is defined as an instrument evidencing the deposit with a bank, either with or
without interest, of a certain sum specified on the face of
the certificate payable in whole or in part to the depositor
or on his order—
(a) On a certain date, specified on the certificate, not
less than 30 days after the date of the deposit, or
(b) After the lapse of a certain specified time subsequent
to the date of the certificate, in no case less than 30 days, or
(c) Upon written notice, which the bank may at its option
require to be given a certain specified number of days, not
less than 30 days, before the date of repayment, and
(d) In all cases only upon presentation of the certificate
at each withdrawal for proper indorsement or surrender.
REGULATION E, SERIES OF 1920.
(Superseding Regulation E of 1917.)
PURCHASE OP WARRANTS.
Statutory requirements.
Section 14 of the Federal Reserve Act reads in part as
follows:
Every Federal Reserve Bank shall have power—
(6) To buy and sell, at home or abroad, bonds and notes of the United
States, and bills, notes, revenue bonds, and warrants with a maturity
from date of purchase of mt exceeding six months, issued in anticipation
of the collection of taxes or in anticipation of the reseipt of assured revenues by any State, county, district, political subdivision, or municipality in the continental United States, including irrigation, drainage,
and reclamation districts, such purchases to be made in accordance with
rules and regulations prescribed by the Federal Reserve Board.
For brevity's sake, the term "warrant" when used in
this regulation shall be construed to mean "bills, notes,
revenue bonds, and warrants with a maturity from date of
purchase of not exceeding six months," and the term
"municipality" shall be construed to mean "State,
county, district, political subdivision, or municipality in
the continental United States, including irrigation, drainage, and reclamation districts."
(c) They are issued by a municipality—
(1) Which has been in existence 1 for a period of 10
years;
(2) Which for a period of 10 years previous to the purchase has not defaulted 2 for longer than 15 days in the
payment of any part of either principal or interest of any
funded debt authorized to be contracted by it:
(3) Whose net funded indebtedness 1 does not exceed
10 per centum of the valuation of its taxable property, to
be ascertained by the last preceding valuation of property
for the assessment of taxes.
II. Except with the approval of the Federal Reserve
Board, no Federal Reserve Bank shall purchase and hold
an amount in excess of 25 per centum of the total amount
of warrants outstanding at any time and issued in conformity with provisions of section 14 (6) above quoted,
and actually sold by a municipality.
III. Except with the approval of the Federal Reserve
Board, the aggregate amount invested by any Federal
Reserve Bank in warrants of all kinds shall not exceed at
the time of purchase a sum equal to 10 per centum of the
deposits kept by its member banks with such Federal
Reserve Bank.
IV. Except with the approval of the Federal Reserve
Board, the maximum amount which may be invested at
the time of purchase by any Federal Reserve Bank in
warrants of any single municipality shall be limited to the
following percentages of the deposits kept in such Federal
Reserve Bank by its member banks:
Five per centum of such deposits in warrants of a municipality of 50,000 population or over;
Three per centum of such deposits in warrants of a
municipality of over 30,000 population, but less than
50,000;
One per centum of such deposits in warrants of a municipality of over 10,000 population, but less than 30,000.
V. Warrants of a municipality of 10,000 population or
less shall be purchased only with the special approval of
the Board.
The population of a municipality shall be determined
by the last Federal or State census. Where it can not be
exactly determined the Board will make special rulings.
VI. Opinion of recognized counsel on municipal issues
or of the regularly appointed counsel of the municipality
as to the legality of the issue shall be secured and approved
in each case by counsel for the Federal Reserve Bank.
VII. Any Federal Reserve Bank may purchase from
any of its member banks warrants of any municipality,
indorsed by such member bank, with waiver of demand,
notice, and protest, up to an amount not to exceed 10 per
centum of the aggregate capital and surplus of such member bank: Provided, however, That such warrants comply
with provisions I and III of these regulations, except that
where a period of 10 years is mentioned in I (c) hereof a
period of 5 years shall be substituted for the purposes of
this clause.
APPENDIX TO REGULATION E.
Regulation.
'' Net funded indebtedness.''
I. Any Federal Reserve Bank may purchase warrants
issued by a municipality in anticipation of the collection
of taxes or in anticipation of the receipt of assured revenues, provided—
(a) They are the general obligations of the entire municipality; it being intended to exclude as ineligible for
purchase all such obligations as are payable from "local
benefit" and "special assessment" taxes when the municipality at large is not directly or ultimately liable;
(b) They are issued in anticipation of taxes or revenues
which are due and payable on or before the date of maturity
of such warrants; but the Federal Reserve Board may
waive this condition in specific cases. For the purposes
of this regulation, taxes shall be considered as due and payable on the last day on which they may be paid without
penalty;
The term "net funded indebtedness" is hereby defined
to mean the legal gross indebtedness of the municipality
(including the amount of any school district or other bonds
which depend for their redemption upon taxes levied
upon property within the municipality) less the aggregate
of the following items:
(1) The amount of outstanding bonds or other debt obligations made payable from current revenues;
(2) The amount of outstanding bonds issued for the purpose of providing the inhabitants of a municipality with
public utilities, such as waterworks, docks, electric plants,
transportation facilities, etc.: Provided, That evidence is
submitted showing that the income from such utilities is
sufficient for maintenance, for payment of interest on such
See appendix to this regulation.
1184
FEDERAL RESERVE BULLETIN".
bonds, and for the accumulation of a sinking fund for their
redemption;
(3) The amount of outstanding improvement bonds,
issued under laws which provide for the levying of special
assessments against abutting property in amounts sufficient to insure the payment of interest on the bonds and
the redemption thereof: Provided, That such bonds are
direct obligations of the municipality and included in the
gross indebtedness of the municipality;
(4) The total of all sinking funds accumulated for the
redemption of the gross indebtedness of the municipality,
except sinking funds applicable to bonds just described in
(1), (2), and (3) above.
'' Existence'' and '' Nondefault.''
Warrants will be construed to comply with that part of
I (c) of Regulation E relative to term of existence and
nondefault, under the following conditions:
(1) Warrants issued by or in behalf of any municipality
which was, subsequent to the issuance of such warrants,
consolidated with or merged into an existing political
division which meets the requirements of these regulations,
will be deemed to be the warrants of such political division:
Provided, That such warrants were assumed by such
political division under statutes and appropriate proceedings the effect of which is to make such warrants general
obligations of such assuming political division and payable,
either directly or ultimately, without limitation to a special
fund from the proceeds of taxes levied upon all the taxable
real and personal property within its territorial limits.
(2) Warrants issued by or in behalf of any municipality
which was, subsequent to the issuance of such warrants,
wholly succeeded by a newly organized political division
whose term of existence, added to that of such original
political division or of any other political division so succeeded, is equal to a period of 10 years, will be deemed to
be warrants of such succeeding political division: Provided,
That during such period none of such political divisions
shall have defaulted for a period exceeding 15 days in the
payment of any part of either principal or interest of any
funded debt authorized to be contracted by it: And provided further, That such warrants were assumed by such
new political division under statutes and appropriate proceedings the effect of which is to make such warrants general obligations of such assuming political division and
payable, either directly or ultimately, without limitation
to a special fund from the proceeds of taxes levied upon
all the taxable real and personal property within its territorial limits.
(3) Warrants issued by or in behalf of any municipality
which, prior to such issuance, became the successor of one
or more, or was formed by the consolidation or merger of
two or more, preexisting political divisions, the term of
existence of one or more of which, added to that of such
succeeding or consolidated political division, is equal to a
period of 10 years, will be deemed to be warrants of a political division which has been in existence for a period of 10
years: Provided, That during such period none of such
original, succeeding, or consolidated political divisions
shall have defaulted for a period exceeding 15 days in the
payment of any part of either principal or interest of any
funded debt authorized to be contracted by it.
REGULATION F, SERIES OF 1920.
(Superseding Regulation F of 1919.)
NOVEMBER, 1920.
executor, administrator, registrar of stocks and bonds, guardian of estates,
assignee, receiver, committee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies, or other corporations which come into competition with national banks are permitted
to act under the laws of the State in which the national bank is located.
Whenever the laws of such State authorize or permit the exercise of
any or all of the foregoing powers by State banks, trust companies, or
other corporations which compete with national banks, the granting to
and the exercise of such powers by national banks shall not be deemed
to be in contravention of State or local law within the meaning of this
act.
National banks exercising any or all of the powers enumerated in this
subsection shall segregate all assets held in any fiduciary capacity from
the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subsection. Such books and records shall be open to inspection by the State authorities to the same extent as the books and records
of corporations organized under State law which exercise fiduciary powers, but nothing in this act shall be construed as authorizing the State
authorities to examine the books, records, and assets of the national
bank which are not held in trust under authority of this subsection.
No national bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for collection or exchange purposes. Funds
deposited or held in trust by the bank awaiting investment shall be
carried in a separate account and shall not be used by the bank in the
conduct of its business unless it shall first set aside in the trust department United States bonds or other securities approved by the Federal
Reserve Board.
In the event of the failure of such bank the owners of the funds held in
trust for investment shall have a lien on the bonds or other securities so
set apart in addition to their claim against the estate of the bank.
Whenever the laws of a State require corporations acting in a fiduciary
capacity to deposit securities with the State authorities for the protection of private or court trusts, national banks so acting shall be required
to mate similar deposits and securities so deposited shall be held for the
protection of private or court trusts, as provided by the State law.
National banks in such cases shall not be required to execute the bond
usually required of individuals if State corporations under similar circumstances are exempt from this requirement.
National banks shall have power to execute such bond when so required by the laws of the State.
In any case in which the laws of a State require that a corporation
acting as trustee, executor, administrator, or in any capacity specified
in tnis section, shall tase an oath or make an affidavit, the president,
vice president, cashier, or trust officer of such national bank may take
the necessary oath or execute the necessary affidavit.
It shall be unlawful for any national banting association to lend any
officer, director, or employee any funds held in trust under the powers
conferred by this section. Any officer, director, or employee making
sucn loan, or to whom such loan is made, may be fined not more than
$5,000 or imprisoned not more than five years, or may be both fined and
imprisoned, in the discretion of the court.
hi passing upon applications for permission to exercise the powers
enumerated in this subsection, the Federal Reserve Board may take
into consideration the amount of capital and surplus of the applying
bank wnetner or not such capital and surplus is sufficient under tne circumstances of the case, the needs of the community to be served, any
and other facts and circumstances that seem to it proper, and may grant
or refuse tne application accordingly: Provided, Tnat no permit shall be
issued to any national banKing association having a capital and surplus
less than tne capital and surplus required by State law of State banks,
trust companies, and corporations exercising such powers.
II. Applications.
A national bank desiring to exercise any or all of the
powers authorized by section 11 (k) of the Federal Reserve
Act, as amended by the act of September 26, 1918, shall
make application to the Federal Reserve Board, on a
form approved by said Board, for a special permit authorizing it to exercise such powers. In the case of an original
application—that is, where the applying bank has never
been granted the right to exercise any of the powers
authorized by section 11 (k)—the application should be
made on F. R. B. Form 61. In the case of a supplemental
application—that is, where the applying bank has already
been granted the right to exercise one or more of the
powers authorized by section 11 (k)—the application
should be made on F. R. B. Form 61-b. Both forms are
made a part of this regulation and may be obtained irom
the Federal Reserve Board or any Federal Reserve Bank.
TRUST POWERS OP NATIONAL BANKS.
III. Separate departments.
I. Statutory provisions.
The Federal Reserve Act as amended by the act of SepEvery national bank permitted to act under this section
tember 26, 1918, provides in part:
shall establish a separate trust department, and shall place
SEC. 11. The Federal Reserve Board shall be authorized and empow- such department under the management of an officer or
ered:
(k) To grant by special permit to national banks applying therefor, officers, whose duties shall be prescribed by the board of
when not in contravention of State or local law, the right to act as trustee, directors of the bank.
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
IV. Custody of trust securities and investments.
The securities and investments held in each trust shall
be kept separate and distinct frpm the securities owned
by the bank and separate and distinct one from another.
Trust securities and investments shall be placed in the
joint custody of two or more officers or other employees
designated by the board of directors of the bank and all
such officers and employees shall be bonded.
V. Deposit offunds awaiting investment or distribution.
Funds received or held in the trust department of a
national bank awaiting investment or distribution may be
deposited in the commercial department of the bank to the
credit of the trust department, provided that the bank
first delivers to the trust department, as collateral security,
United States bonds, or other readily marketable securities
owned by the bank, which collateral security shall at all
times be equal in market value to the amount of the funds
so deposited.
VI. Investment of trust funds.
(a) Private trusts.—Funds held in trust must be invested
in strict accordance with the terms of the will, deed, or
other instrument creating the trust. Where the instrument creating the trust contains provisions authorizing
the bank, its officers, or its directors to exercise their discretion in the matter of investments, funds held in trust
may be invested only in those classes of securities which
are approved by the directors of the bank. Where the
instrument creating the trust does not specify the character
or class of investments to be made and does not expressly
vest in the bank, its officers, or its directors a discretion in
the matter of investments, funds held in trust shall be
invested in any securities in which corporate or individual
fiduciaries in the State in which the bank is located may
lawfully invest.
(b) Court trusts.—Except as hereinafter provided, a
national bank acting as executor, administrator, or in any
other fiduciary capacity, under appointment by a court of
competent jurisdiction, shall make all investments under
an order of that court, and copies of all such orders shall be
filed and preserved with the records of the trust department of the bank. If the court by general order vests
a discretion in the national bank to invest funds held in
trust, or if under the laws of the State in which the bank is
located corporate fiduciaries appointed by the court are
permitted to exercise such discretion, the national bank
so appointed may invest such funds in any securities in
which corporate or individual fiduciaries in the State
in which the bank is located may lawfully invest.
VII. Boohs and accounts.
All books and records of the trust department shall be
kept separate and distinct from other books and records of
the bank. All accounts opened shall be so kept as to
enable the national bank at any time to furnish information
or reports required by the Federal or State authorities, and
such books and records shall be open to the inspection of
such authorities.
VIII. Examinations.
Examiners appointed by the Comptroller of the Currency or designated by the Federal Reserve Board will be
instructed to make thorough and complete audits of the
cash, securities, accounts, and investments of the trust
department of the bank at the same time that examination
is made of the banking department.
IX. Conformity with State laws.
Nothing in these regulations shall be construed to give
a national bank exercising the powers permitted under the
provisions of section 11 (k) of the Federal Reserve Act, as
amended, any rights or privileges in contravention of the
laws of the State in which the bank is located within the
meaning of that act.
1185
X. Revocation of permits.
The Federal Reserve Board reserves the right to revoke
permits granted under the provisions of section 11 (k),
as amended, in any case where in the opinion of the Board
a bank has willfully violated the provisions of the Federal
Reserve Act or of these regulations or the laws of any State
relating to the operations of such bank when acting in any
of the capacities permitted under the provisions of section 11 (k), as amended.
XI. Changes in regulations.
These regulations are subject to change by the Federal
Reserve Board; provided, however, that no such change
shall prejudice any obligation undertaken in good faith
under regulations in effect at the time the obligation was
assumed.
REGULATION G, SERIES OF 1920.
(Superseding Regulation G of 1917.)
LOANS ON FARM LAND AND OTHER REAL ESTATE.
Section 24 of the Federal Reserve Act provides in part
that—
Any national banking association not situated in a central reserve
city inay make loans secured by improved and unencumbered farm
land situated within its Federal reserve district or within a radius of
one hundred miles of the place in which such bank is located^ irrespective of district lines, and may also make 1 oans secured by improved
and unencumbered real estate located within one hundred miles of
the place in which such bank is located, irrespeoti e of district lines;
but no loan made upon the security of such farm land shall be made
for a longer time than five years, and no loan made upon the security
of such real estate as distinguished from farm land shall be made for a
longer time than one year nor shall the amount of any such loan, whether
upon such farm land or upon such real estate, exceed fifty per centum
of the actual value of the property offered as security. Any such bank
may make such loans, whether secured by such farm land or such real
estate, in an aggregate sum equal to twenty-five per centum of its capital
and surplus or to one-third of its time deposits and such banks may
continue hereafter as heretofore to receive time deposits and to pay
interest on the same.
National banks not located in central reserve cities
may, therefore, legally make loans secured by improved
and unencumbered farm land or other real estate as provided by this section.
Certain conditions and restrictions must, however, be
observed—•
(a) There must be no prior lien on the land; that is, the
lending bank must hold an absolute first mortgage or
deed of trust.
(b) The amount of the loan must not exceed 50 per cent
of the actual value of the land by which it is secured.
(c) The maximum amount of loans which a national
bank may make on real estate, whether on farm land or
on other real estate as distinguished from farm land, is
limited under the terms of the act to an amount not in
excess of one-third of its time deposits at the time of the
making of the loan, and not in excess of one-third of its
average time deposits during the preceding calendar
year: Provided, however, That if one-third of such time
deposits as of the date of making the loan or one-third of
the average time deposits for the preceding calendar
year is less than one-fourth of the capital and surplus of
the bank as of the date of making the loan, the bank in
such event shall have authority to make loans upon real
estate under the terms of the act to the extent of onefourth of the bank's capital and surplus as of that date.
(d) Farm land to be eligible as security for a loan by a
national bank must be situated within the Federal reserve
district in which such bank is located o.r within a radius
of 100 miles of such bank irrespective of district lines.
(e) Real estate as distinguished from farm land to be
eligible as security for a loan by a national bank must be
located within a radius of 100 miles of such bank irrespective of district lines.
1186
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920,
(/) The right of a national bank to "make loans" under
IV. Approval of application.
section 24 includes the right to purchase or discount loans
In
passing
upon
an application the Federal Reserve
already made as well as the right to make such loans in
the first instance: Provided, however. That no loan secured Board will consider especially—
1. The financial condition of the applying bank or trust
by farm land shall have a maturity of more than five
years from the date on which it was purchased or made company and the general character of its management.
2. Whether the corporate powers exercised by the applyby the national bank and that no loan secured by other
real estate shall have a maturity of more than one year ing bank or trust company are consistent with the purposes
of the Federal Reserve Act.
from such date.
3. Whether the laws of the State or district in which the
{(]) Though no national bank is authorized under the
provisions of section 24 to make a loan on the security of applying bank or trust company is located contain proreal estate, other than farm land, for a period exceeding visions likely to prevent proper compliance with the proone year, nevertheless, at the end of the year, it may visions of the Federal Reserve Act and the regulations of
properly make a new loan upon the same security for a the Federal Reserve Board made in conformity therewith.
If in the judgment of the Federal Reserve Board an
period not exceeding one year. The maturing note
must be canceled and a new note taken in its place, but applying bank or trust company conforms to all the rein order to obviate the necessity of making a new mortgage quirements of the Federal Reserve Act and these regulaor deed of trust for each renewal, the original mortgage tions, and is otherwise qualified for membership, the
or deed of trust may be so drawn in the first instance as to Board will issue a certificate of approval subject to such
cover possible future renewals of the original note. Under conditions as it may deem necessary to insure compliance
no circumstances, however, must the bank obligate itself with the act and these regulations. When the conditions
in advance to make such a renewal. It must, in all imposed by the Board have been accepted by the applying
cases, preserve the right to require payment at the end bank or trust company the Board will issue a certificate of
of the year and to foreclose the mortgage should that action approval, whereupon the applying bank or trust company
become necessary. The same principles apply to loans shall make a payment to the Federal Reserve Bank of its
district of one-half of the amount of its subscription, i. e.,
of longer maturities secured by farm lands.
(h) In order that real estate loans held by a bank may 3 per cent of the amount of its paid-up capital and surplus
be readily classified, a statement signed by the officers and upon receipt of this payment the appropriate certifimaking a loan and having knowledge of the facts upon cate of stock will be issued by the Federal Reserve Bank.
which it is based must be attached to each note secured The remaining half of the subscription of the applying
by a first mortgage on the land by which the loan is secured, bank or trust company shall be subject to call when
certifying in detail as of the date of the loan that all of the deemed necessary by the Federal Reserve Board.
requirements of law have been duly observed.
V. Powers and restrictions.
REGULATION H, SERIES OF 1920.
(Superseding Regulation H of 1917.)
MEMBERSHIP OF STATE BANKS AND TRUST COMPANIES.
I. Statutory requirements.
•Section 9 of the Federal Reserve Act, as amended by the
act approved June 21, 1917, which authorizes State banks
and trust companies to become members of the Federal
Reserve System, is quoted in the appendix to this regulation.
II. Banks eligible for membership.
A State bank or a trust company to be eligible for membership in a Federal Reserve Bank must comply with the
following conditions:
1. It must have been incorporated under a special or
general law of the State or district in which it is located.
2. It must have a minimum paid-up unimpaired capital
stock as follows:
In cities or towns not exceeding 3,000 inhabitants,
$25,000.
In cities or towns exceeding 3,000 but not exceeding
6,000 inhabitants, $50,000.
In cities or towns exceeding 6,000 but not exceeding
50,000 inhabitants, $100,000.
In cities exceeding 50,000 inhabitants, $200,000.
III. Application for membership.
Any eligible State bank or trust company may make
application on F. R. B. Form 83a, made a part of this
regulation, to the Federal Reserve Board for an amount
of capital stock in the Federal Reserve Bank of its district
equal to 6 per cent of the paid-up capital stock and surplus
of such State bank or trust company. This application
must be forwarded direct to the Federal Reserve Agent of
the district in which the applying bank or trust company
is located and must be accompanied by Exhibits I, II, and
III, referred to on page 1 of the application blank.
Every State bank or trust company while a member of
the Federal Reserve System—
1. ShaH retain its full charter and statutory rights as a
State bank or trust company, subject to the provisions
of the Federal Reserve Act and to the regulations of
the Federal Reserve Board, including any conditions embodied in the certificate of approval.
2. Shall maintain such improvements and changes in
its banking practice as may have been specifically required of it by the Federal Reserve Board as a condition
of its admission and shall not lower the standard of banking then required of it; and
3. Shall enjoy all the privileges and observe all those
requirements of the Federal Reserve Act and of the regulations of the Federal Reserve Board made in conformity
therewith which are applicable to State banks and trust
companies which have become member banks.
VI. Examinations and reports.
Every State bank or trust company, while a member of
the Federal Reserve System, shall be subject to examinations made by direction of the Federal Reserve Board or
of the Federal Reserve Bank by examiners selected or
approved by the Federal Reserve Board.
In order to avoid duplication, examinations of State
banks and trust companies made by State authorities will
be accepted in lieu of examinations by examiners selected
or approved by the Board wherever these are satisfactory
to the directors of the Federal Reserve Bank and where,
in addition, satisfactory arrangements for cooperation
in the matter of examination between the designated examiners of the Board and those of the States already
exist or can be effected with State authorities. Examiners from the staff of the board or of the Federal Reserve
Banks will, whenever desirable, be designated by the
Board to act with the examination staff of the State in
order that uniformity in the standard of examination may
be assured.
Every State bank or trust company, while a member
of the Federal Reserve System, shall be required to make
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
1187
No applying bank shall be admitted to membership in a Federal
in each year not less than three reports of condition on
Reserve Bank unless it possesses a paid-up unimpaired capital sufF. R. B. Form 105. Such reports shall be made to the ficient
to entitle it to become a national banking association in the place
Federal Reserve Bank of its district on call of such bank, where it is situated under the provisions of the national bank act.
Banks becoming members of the Federal Reserve System under
on dates to be fixed by the Federal Reserve Board. They
of this section shall be subject to the provisions of this section
shall also make semiannual reports of earnings and divi- authority
and to those of this act which relate specifically to member banks, but
dends on F. R. B. Form 107. As dividends may be shall not be subject to examination under the provisions of thefirsttwo
declared from time to time, each State bank or trust paragraphs of section fifty-two hundred and forty of the Revised Statas amended by section twenty-one of this act. Subject to the procompany member shall also furnish to the Federal Reserve utes
visions of this act and to the regulations of the board made pursuant
Bank of its district a special notification of dividend thereto, any bank becoming a member of the Federal Reserve. System
declared on F. R. B. Form 107a. F. R. B. Forms 105, shall retain its full charter and statutory rights as a State bank'or trust
company, and may continue to exercise all corporate powers granted it
107, and 107a are made a part of this regulation.
by the State in which it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal Reserve
Bank shall be permitted to discount for any State bank or trust company
APPENDIX TO REGULATION H.
notes, drafts, or bills of exchange of any one borrower who is liable for
borrowed money to such State bank or trust company in an amount
Section 9 of the Federal Reserve Act as amended by greater than ten per centum of the capital and surplus of such State
bank or trust company, but the discount of bills of exchange drawn
the act approved June 21, 1917, provides that:
against actually existing value and the discount of commercial or busiAny bank incorporated by special law of any State, or organized ness paper actually owned by the person negotiating the same shall
under the general laws of any State, or of the United States, desiring to not be considered as borrowed money within the meaning of this secbecome a member of the Federal Reserve System, may make applica- tion The Federal Reserve Bank, as a condition of the discount of
tion to the Federal Reserve Board, under such rules and regulations as notes, drafts, and bills of exchange for such State bank or trust company,
it may prescribe, for the right to subscribe to the stock of the Federal shall require a certificate or guaranty to the effect that the borrower is
Reserve Bank organized within the district in which the applying bank not liable to such bank in excess of the amount provided by this section,
is located. Such application shall be for the same amount of stock that and will not be permitted to become liable in excess of "this amount
the applying bank would be required to subscribe to as a national bank. while such notes, drafts, or bills of exchange are under discount with
The Federal Reserve Board, subject to such conditions as it may pre- the Federal Reserve Bank.
It shall be unlawful for any officer, clerk, or agent of any bank admitted
scribe, may permit the applying bank to become a stockholder of such
to membership under authority of this section to certify any check
Federal Reserve Bank.
In acting upon such applications the Federal Reserve Board shall drawn upon such bank unless the person or company drawing the
consider thefinancialcondition of the applying bank, the general char- check has on deposit therewith at the time such check is certified an
acter of its management, and whether or not the corporate powers amount of money equal to the amount specified in such check. Any
check so certified by duly authorized officers shall be a good and valid
exercised are consistent with the purposes of this act.
Whenever the Federal Reserve Board shall permit the applying bank obligation against such bank, but the act of any such officer, clerk, or
to become a stockholder in the Federal Reserve Bank of the district its agent m violation of this section may subject such bank to a forfeiture
stock subscription shall be payable on call of the Federal Reserve Board, of its membership in the Federal Reserve System upon hearing by the
and stock issued to it shall be held subject to the provisions of this act. Federal Reserve Board.
All banks admitted to membership under authority of this section
shall be required to comply with the reserve and captial requirements
REGULATION I, SERIES OF 1920.
of this act and to conform to those provisions of law imposed on national
banks which prohibit such banks from lending on or purchasing their
(Superseding Regulation I of 1917.)
own stock, which relate to the withdrawal or impairment of their capital
stock, and which relate to the payment of unearned dividends. Such
banks and the officers, agents, and employees thereof shall also be sub- INCREASE OR DECREASE OF CAPITAL STOCK OF FEDERAL
ject to the provisions of and to the penalties prescribed by section fiftyRESERVE BANKS AND CANCELLATION OF OLD AND
two hundred and nine of the Revised Statutes, and shall "be required to
ISSUE OF NEW STOCK CERTIFICATES.
make reports of condition and of the payment of dividends to the Federal
Reserve Bank of which they become a member. Not less than three of
I. Increase of capital stock.
such reports shall be made annually on call of the Federal Reserve Bank
on dates to be fixed by the Federal Reserve Board. Failure to make
1. New national banks.—Each newly organized national
such reports within ten days after the date they are called for shall subbank which shall
ject the offending bank to a penalty of $100 a day for each day that it bank (including any nonmember State
fails to transmit such report; such penalty to be collected by the Federal have converted into a national bank) 1 shall file with the
Reserve Bank by suit or otherwise.
Federal Reserve Bank of its district an application on
As a condition of membership such banks shall likewise be subject to F. R. B. Form 30, made a part of this regulation, for an
examinations made by direction of the Federal Reserve Board or of amount of capital stock of the Federal Reserve Bank of its
the Federal Reserve Bank by examiners selected or approved by the
district equal to 6 per cent of the paid-up capital stock
Federal Reserve Board.
Whenever the directors of the Federal Reserve Bank shall approve and surplus of such national bank. When such applicathe examinations made by the State authorities, such examinations and tion has been approved by the Federal Reserve agent and
the reports thereof may be accepted in lieu of examinations made by
examiners selected or approved by the Federal Reserve Board: Pro- by the Federal Reserve Board, the applying national
bank shall make a payment to the Federal Reserve Bank
vided., however, That when it deems it necessary the board may order
special examinations by examiners of its own selection and shall in all of its district of one-half of the amount of its subscription,
cases approve the form of report. The expenses of all examinations, i. e., 3 per cent of the amount of its paid-up capital and
other than those made by State authorities, shall be assessed against
surplus, and upon receipt of this payment the appropriate
and paid by the banks examined.
Tf at any time it shall appear to the Federal Reserve Board that a certificate of stock shall be issued by the Federal Reserve
member bank has failed to comply with the provisions of this section Bank. The remaining half of the subscription of the
or the regulations of the Federal Reserve Board made pursuant thereto,
it shall be within the power of the board after hearing to require such applying bank shall be subject to call when deemed
bank to surrender its stock in the Federal Reserve Bank and to forfeit necessary by the Federal Reserve Board.
all rights and privileges of membership. The Federal Reserve Board
2. State banks becoming members.—Any State bank or
may restore membership upon due proof of compliance with the conditions imposed by this section.
trust company desiring to become a member of the Federal
Any State bank or trust company desiring to withdraw from member- Reserve System shall make application as provided in
ship in a Federal Reserve Bank may do so, after six months' written
notice shall have been filed with the Federal Reserve Board, upon Regulation H, and when such application has been apthe surrender and cancellation of all of its holdings of capital stock in the proved by the Federal Reserve Board and all requireFederal Reserve Bank: Provided, however, That no Federal Reservements of Regulation H have been complied with the FedBank shall, except under express authority of the Federal Reserve
Board, cancel within the same calendar year more than twenty-five eral Reserve Bank shall issue an appropriate certificate of
per centum of its capital stock for the purpose of effecting voluntary stock as provided in Regulation H.
withdrawals during that year. All such applications shall be dealt
with in the order in which they arefiledwith the board.
1
Whenever any State member bank is converted into a national bank
Whenever a member bank shall surrender its stock holdings in a Federal Reserve Bank, or shall be ordered to do so by the Federal Reserve under section 5154 of the Revised Statutes, as amended by section 8 of
the
Federal Reserve Act, it may continue to hold as a national bank its
Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision shares of Federal Reserve Bank stock previously held as a State bank,
and
need not file any application for Federal Reserve Bank stock, unhas been made for any indebtedness due or to become due to the Federal Reserve Bank it shall be entitled to a refund of its cash paid sub- less the aggregate amount of its capital and surplus is increased, in which
event
it should file an application for additional stock, as provided in
scription with interest at the rate of one-half of one per centum per month
from date of last dividend, if earned, the amount refunded in no event paragraph III. The certificate of stock issued in the old name of the
member
bank, however, should be surrendered and canceled, and a
to exceed the book value of the stock at that time, and shall likewise
be entitled to repayment of deposits and of any other balance due from new certificate should be issued in lieu thereof, in the new name of the
member
bank,
as provided in the last paragraph of this regulation.
the Federal Reserve Bank.
1188
FEDERAL. RESERVE BULLETIN.
3. Increase of capital or surplus by member banks.—
Whenever any member bank shall increase the aggregate
amount of its paid-up capital stock and surplus, it shall
file with the Federal Reserve Bank of which it is a member
an application on F. R. B Form 56, made a part of this
regulation, for an additional amount of the capital stock
of the Federal Reserve Bank of its district equal to 6 per
cent of such increase. After such application has been
approved by the Federal Reserve agent and by the Federal Reserve Board, the applying member bank shall pay
to the Federal Reserve Bank of its district one-half of the
amount of its additional subscription, and when this
amount has been paid the appropriate certificate of stock
shall be issued by the Federal Reserve Bank. The remaining half of such additional subscription shall be subject to call when deemed necessary by the Federal Reserve Board.
4. Consolidation of member banks.—Whenever two or
more member banks consolidate and such consolidation
results 2in the consolidated bank acquiring by operation
of law the Federal Reserve Bank stock owned by the
other consolidating bank or banks, and which also results in the consolidated bank having an aggregate capital
and surplus in excess of the aggregate capital and surplus of the consolidating member banks, such consolidated bank shall file an application for additional stock,
as provided in the preceding paragraph.
5. Certifying increases of Federal Reserve Bank stock.—
Whenever the capital stock of any Federal Reserve Bank
shall be increased the board of directors of such Federal
Reserve Bank shall certify such increase to the Comptroller
of the Currency on F. R. B. Form 58, which is made a
part of this regulation. Such certifications shall be made
quarterly as of the last days of December, March, June,
and September of each year. A duplicate copy of each
certificate shall be forwarded to the Federal Reserve
Board.
I I . Decrease of capital stock.
NOVEMBER, 1920.
2. Insolvency of member bank.—Whenever a member
bank shall be declared insolvent and a receiver appointed
by the proper authorities, such receiver shall file with the
Federal Reserve Bank of which the insolvent bank is a
member an application on F. R. B. Form 87, which is
made a part of this regulation, for the surrender and cancellation of the stock held by such insolvent member bank,
and for the refund of all balances due to it. Upon approval
of this application by the Federal Reserve agent and the
Federal Reserve Board, the Federal Reserve Bank shall
accept and cancel the stock surrendered, and shall adjust
accounts between the member bank and the Federal
Reserve Bank by applying to any indebtedness of the
insolvent member bank to such Federal Reserve Bank
all cash-paid subscriptions made by it on the stock canceled with one-half of 1 per centum per month from the
period of last dividend, if earned, not to exceed the book
value thereof, and the balance, if any, shall be paid to the
duly authorized receiver of such insolvent member
bank.a
3. Voluntary liquidation of member bank.—Wnenever
member bank goes into voluntary liquidation and a
liquidating agent is appointed, such agent shall file with
the Federal Reserve Bank of which it is a member an
application on F. R. B. Form 86, which is made a part of
this regulation, for the surrender and cancellation of the
stock held by and for the refund of all balances due to such
liquidating member bank. Upon approval of this application by the Federal Reserve agent and the Federal
Reserve Board, the Federal Reserve Bank shall accept
and cancel the stock surrendered, and shall adjust accounts
between the liquidating member bank and the Federal
Reserve Bank by applying to the indebtedness of the
liquidating member bank to such Federal Reserve Bank
all cash-paid subscriptions made by it on the stock canceled with one-half of 1 per centum per month from the
period of last dividend, if earned, not to exceed the book
value thereof, and the balance, if any, shall be paid to the
duly authorized liquidating agent of such liquidating
member bank.
4. Consolidation of member bank.—Whenever there is a
1. Reduction of capital or surplus by member bank.—
Whenever a member bank reduces the aggregate amount consolidation of two or more member banks which results
of its paid-up capital stock and surplus and, in the case of in the consolidated bank acquiring by operation of law
reduction of the paid-up capital of a national bank, such (see note 2) the Federal Reserve Bank stock owned
reduction has been approved by the Comptroller of the by the other consolidating banks, and which also results
Currency and by the Federal Reserve Board in accordance in the consolidated bank having a paid-up capital and surwith the provisions of section 28 of the Federal Reserve plus less than the aggregate paid-up capital and surplus
Act, it shall file with the Federal Reserve Bank of which of the consolidating member banks, the consolidated bank
it is a member an application for the surrender and can- shall file with the Federal Reserve Bank of which it is a
cellation of stock on F. R. B. Form 60, which is made a member an application for the surrender and cancellation
part of this regulation. When this application has been of stock on F. R. B. Form 60a, which is made a part of this
approved by the Federal Reserve agent and the Federal regulation. Upon the approval of this application by the
Reserve Board, the Federal Reserve Bank shall accept Federal Reserve agent and the Federal Reserve Board,
and cancel the stock which the applying bank is entitled the Federal Reserve Bank shall accept and cancel the
to surrender and shall refund to the member bank the stock which the applying bank is entitled to surrender,
proportionate amount due such bank on account of the and shall refund to the applying bank the proportionate
stock canceled.
amount due such bank on account of the stock canceled.
5. Certifying reductions of Federal Reserve Bank stock.—
2 Section 5 of the Federal Reserve Act provides that "Shares of the All reductions of the capital stock of a Federal Reserve
capital stock of Federal Reserve Banks owned by member banks shall Bank shall, in accordance with the provisions of section 6
not be transferred or hypothecated." This provision pre >
• ents a transfer of Federal Reserve Bank stock by purchase, but does not prevent a of the Federal Reserve Act, be certified to the Comptroller
transfer by operation of law. When there is a merger of member banks of the Currency by the board of directors of such Federal
involving the liquidation of one of such banks and the purchasing of the Reserve Bank on F. R. B. Form 59, which is made a part
assets of the liquidating bank by the bank continuing in existence, it is
necessary for the liquidating bank to surrender its Federal Reser e of this regulation. Such certifications shall be made
Bank stock and for the purchasing bank to apply for new stock. On quarterly as of the last days of December, March, June,
the other hand, if member banks consolidate under a statute which
does not require the liquidation of any of the consolidating banks, and and September of each year. A duplicate copy of each
the consolidted bank continues the corporate identity of one of the con- certificate shall be forwarded to the Federal Reserve Board.
solidating banks, and the assets and obligations of the other consolidating banks are transferred to the consolidated bank by operation of law, III. Cancellation of old and issue of new stock certificates.
the consolidated bank becomes the owner of the Federal Reserve Bank
stock of the other consolidating banks as soon as the consolidation takes
Whenever a member bank changes its name or, by coneffect and such stock technically need not be surrendered. The certif- solidation with another member bank acquires by operaicates of stock issued in the names of the consolidating
banks,
hove
er
should be surrendered and canceled, and a new certificate should be tion of law (see note 2) the Federal Reserve Bank
issued in lieu thereof, in the new name of the consolidated bank, as stock previously held by such other member bank, it shall
pro ided in the last para^ranh of this re Tilation. A consolidation of
national banks under the act of Congress entitled "An act to pro ide surrender to the Federal Reserve Bank the certificate of
for the consolidation of national banking associations," approved Nov. Federal Reserve Bank stock which was issued to it under
7,1918, meets all of these conditions.
its old name, or which was issued to such other member.
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
bank. The certificate so surrendered shall be indorsed
by the member bank surrendering it or by the member
bank to which it was originally issued and shall be accompanied by proper proof of the change of name or consolidation. Upon receipt of such certificate of stock so indorsed, together with such proof, the Federal Reserve
Bank shall cancel the certificate so surrendered and shall
issue in lieu thereof to and in the name of the member bank
surrendering it a new certificate for the number of shares
represented by the certificate so surrendered, or if the
member bank is entitled to surrender some of the stock
which is represented by the surrendered certificate, and
an application for the surrender and cancellation of such
stock is at the same time made in accordance with this
regulation, the new certificate shall be for the number of
shares represented by the surrendered certificate less the
number of shares canceled pursuant to such application.
All cases where certificates of stock are surrendered and
new certificates issued in lieu thereof and in a different
name shall be reported to the Federal Reserve Board by
the Federal Reserve agent.
REGULATION J, SERIES OF 1920.
(Superseding Regulation J of 1917.)
CHECK CLEARING AND COLLECTION.
Section 16 of the Federal Reserve Act authorizes the
Federal Reserve Board to require each Federal Reserve
Bank to exercise the function of a clearing house for its
member banks, and section 13 of the Federal Reserve Act,
as amended by the act approved June 21,1917, authorizes
each Federal Reserve Bank to receive from anynonmember bank or trust company, solely for the purposes of exchange or of collection, deposits of current funds in lawful
money, national-bank notes, Federal Reserve notes, checks
and drafts payable upon presentation, or maturing notes
and bills, provided such nonmember bank or trust company maintains with its Federal Reserve Bank a balance
sufficient to offset the items in transit held for its account
by the Federal Reserve Bank.
In pursuance of the authority vested in it under these
provisions of the law, the Federal Reserve Board, desiring
to afford both to the public and to the various banks of the
country a direct, expeditious, and economical system of
check collection and settlement of balances, has arranged
to have each Federal Reserve Bank exercise the functions
of a clearing house for such of its member banks as desire
to avail themselves of its privileges and for such nonmember State banks and trust companies as may maintain with
the Federal Reserve Bank balances sufficient to qualify
them under the provisions of section 13 to send items to
Federal Reserve Banks for purposes of exchange or of collection. Such nonmember State banks and trust companies will hereinafter be referred to in this regulation as
nonmember clearing banks.
Each Federal Reserve Bank shall exercise the functions
of a clearing house under the following general terms and
conditions:
(1) Each Federal Reserve Bank will receive at par from
its member banks and
from nonmember clearing banks in
its district, checks 1 drawn on all member and nonmember
clearing banks and on all other nonmember banks which
agree to remit at par through the Federal Reserve Bank of
their district.
(2) Each Federal Reserve Bank will receive at par from
other Federal Reserve Banks, and from all member and
nonmember clearing banks, regardless of their location, for
the credit of their accounts with their respective Federal
1
A check is generally defined as a draft or order upon a bank or banking
house, purporting to be drawn upon a deposit of funds, for the payment
at all events of a certain sum of money to a certain person therein named,
or to him or his order, or to bearer, and payable instantly on demand.
1189
Reserve Banks, checks drawn upon all member and nonmember clearing banks of its district and upon all other
nonmember banks of its district whose checks are collected
at par by the Federal Reserve Bank.
(3) Immediate credit entry upon receipt subject to final
payment will be made for all such items upon the books of
the Federal Reserve Bank at full face value, but the proceeds will not be counted as part of the minimum reserve
nor become available to meet checks drawn until such time
as may be specified in the appropriate time schedule referred to in subdivision 7.
(4) Checks received by a Federal Reserve Bank on its
member or nonmember clearing banks will be forwarded
direct to such banks and will not be charged to their accounts until sufficient time has elapsed within which to
receive advice of payment, as shown by the appropriate
time schedule referred to in subdivision 7.
(5) Under this plan each Federal Reserve Bank will
receive at par from its member and nonmember clearing
banks checks on all member and nonmember clearing
banks and on all other nonmember banks whose checks
can be collected at par by any Federal Reserve Bank.
Member and nonmember clearing banks will be required
by the Federal Reserve Board to provide funds to cover
at par all checks received from or for the account of their
Federal Reserve Banks: Provided, however, That a member
or nonmember clearing bank may ship currency or specie
from its own vaults at the expense of its Federal Reserve
Bank to cover any deficiency which may arise because of
and only in the case of inability to provide items to offset
checks received
from or for the account of its Federal
Reserve Bank.1
(6) Section 19 of the Federal Reserve Act provides
that—
The required balance carried by a member bank with a Federal
Reserve Bank may, under the regulations and subject to such penalties
as may be prescribed by the Federal Reserve Board, be checked against
and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make
new loans or shall pay any dividends unless and until the total balance
required by law is fully restored.
Items can not be counted as part of the minimum reserve
balance to be carried by a member bank with its Federal
Reserve Bank until such time as may be specified in the
appropriate time schedule referred to in subdivision 7.
Therefore, should a member bank draw against items
before such time, the draft would be charged against its
reserve balance if such balance were sufficient in amount
to pay it; but any resulting impairment of reserve balances
would be subject to all the penalties provided by the act.
Inasmuch as it is essential that the law in respect to the
maintenance by member banks of the required minimum
reserve balance shall be strictly complied with, the
Federal Reserve Board, under authority vested in it by
section 19 of the act, has prescribed as the basic penalty
for any deficiency in reserves a sum equivalent to an
interest charge on the amount of the deficiency of 2 per
cent per annum above ninety-day discount rate of the
Federal Reserve Bank of the district in which the member
bank is located, and has announced that it will prescribe
for any Federal Reserve district, upon the application of
the Federal Reserve Bank of that district, as an additional progressive penalty for any subsequent deficiency
by the same member bank during the same calendar year
a sum equivalent to an interest charge on the amount of
the subsequent deficiency at a rate increasing one-half
of 1 per cent for each such subsequent deficiency.
(7) Each Federal Reserve Bank will determine by
analysis the amounts of uncollected funds appearing on
its books to the credit of each member bank. Such
analysis will show the true status of the reserve held by
1
In accordance with instructions issued by the Federal Reserve Board
on A.pr. 24,1917, the various Federal Reserve Banks have issued circulars
setting forth the conditions under which their respective member banks
may dra v drafts on their Reserve Bank accounts payable with or through
any other Federal Reserve Bank.
1190
FEDERAL RESERVE BULLETIN.
the Federal Reserve Bank for each member bank and will
enable it to apply the penalty for impairment of reserve.
Each Federal Reserve Bank will publish time schedules
showing the time at which any item sent to it will be
counted as reserve and become available to meet any
checks drawn.
(8) In handling items for member and nonmember
clearing banks, a Federal Reserve Bank will act as agent
only. The Board will require that each member and nonmember clearing bank authorize its Federal Reserve Bank
to send checks for collection to banks on which checks
are drawn, and, except for negligence, such Federal
Reserve Bank will assume no liability. Any further
requirements that the Board may deem necessary will be
set forth by the Federal Reserve Banks in their letters of
instruction to their member and nonmember clearing
banks. Each Federal Reserve Bank will also promulgate
rules and regulations governing the details of its operations
as a clearing house, such rules and regulations to be binding upon all member and nonmember banks which are
clearing through the Federal Reserve Bank.
REGULATION K, SERIES OF 1920.
(Superseding Regulation K of 1920, issued in March, 1920.)
B A N K I N G CORPORATIONS AUTHORIZED TO DO F O R E I G N
B A N K I N G B U S I N E S S UNDER THE T E R M S OF SECTION
25 (a) OF THE F E D E R A L R E S E R V E ACT.
I. Organization.
Any number of natural persons, not less in any case
than five, may form a Corporation 1 under the provisions
of section 25 (a) for the purpose of engaging in international or foreign banking or other international or foreign
financial operations or in banking or other financial
operations in a dependency or insular possession of the
United States either directly or through the agency,
ownership, or control of local institutions in foreign
countries or in such dependencies or insular possessions.
II. Articles of association.
Any persons desiring to organize a corporation for any
of the purposes defined in section 25 (a) shall enter into
articles of association (see F. R. B. Form 151 which is
suggested as a satisfactory form of articles of association)
which shall specify in general terms the objects for which
the Corporation is formed, and may contain any other
provisions not inconsistent with law which the Corporation
may see fit to adopt for the regulation of its business and
the conduct of its affairs. The articles of association shall
be signed by each person intending to participate in the
organization of the Corporation and when signed shall be
forwarded to the Federal Reserve Board in whose office
they shall be filed.
III. Organization certificate.
All of the persons signing the articles of association
shall under their hands make an organization certificate
on F. R. B. Form 152, which is made a part of this regulation, and which shall state specifically:
First. The name assumed by the Corporation.
Second. The place or places where its operations are to
be carried on.
Third. The place in the United States where its hom(
office is to be located.
Fourth. The amount of its capital stock and the numb©
of shares into which it shall be divided.
NOVEMBER, 1920.
Fifth. The names and places of business or residences
•f persons executing the organization certificate and the
number of shares to which each has subscribed.
Sixth. The fact that the certificate is made to enable
the persons subscribing the same and all other persons,
firms, companies, and corporations who or which may
thereafter subscribe to or purchase shares of the capital
stock of such Corporation to avail themselves of the
advantages of this section.
The persons signing the organization certificate shall
acknowledge the execution thereof before a judge of some
court of record or notary public who shall certify thereto
under the seal of such court or notary. Thereafter the
certificate shall be forwarded to the Federal Reserve
Board to be filed in its office.
IV. Title.
Inasmuch as the name of the Corporation is subject to
the approval of the Federal Reserve Board, a preliminary
application for that approval should be filed with the Federal Reserve Board on F. R. B. Form 150, which is made
a part of this regulation. This application should state
merely that the organization of a Corporation under the
proposed name is contemplated and may request the approval of that name and its reservation for a period of 30
days. No Corporation which issues its own bonds, debentures, or other such obligations will be permitted to have
the word "bank" as a part of its title. No Corporation
which has the word "Federal" in its title will be permitted
also to have the word "bank" as a part of its title. So far
as possible the title of the Corporation should indicate the
nature or reason of the business contemplated and should
in no case resemble the name of any other corporation to
the extent that it might result in misleading or deceiving
the public as to its identity, purpose, connections, or
affiliations.
V. Authority to commence business.
After the articles of association and organization certificate have been made and filed with the Federal Reserve
Board, and after they have been approved by the Federal
Reserve Board and a preliminary permit to begin business
has .been issued by the Federal Reserve Board, the association shall become and be a body corporate, but none of its
powers except such as are incidental and preliminary to
its organization shall be exercised until it has been formally
authorized by the Federal Reserve Board by a final permit
generally to commence business.
Before the Federal Reserve Board will issue its final permit to commence business, the president or cashier, together with at least three of the directors, must certify (a)
that each director elected is a citizen of the United States;
(b) that a majority of the shares of stock is owned by citizens of the United States, by corporations the controlling
interest in which is owned by citizens of the United States,
chartered under the laws of the United States, or by firms
or companies the controlling interest in which is owned by
citizens of the United States; and (c) that of the authorized
capital stock specified in the articles of association at least
25 per cent has been paid in in cash and that each shareholder has individually paid in in cash at least 25 per cent
of his stock subscription. Thereafter the cashier shall certify to the payment of the remaining installments as and
when each is paid in in accordance with law.
VI. Capital stock.
No Corporation may be organized under the terms of
section 25 (a) with a capital stock of less than $2,000,000.
The par value of each share of stock shall be specified in
the articles of association, and no Corporation will be permitted to issue stock of no par value. If there is more
than one class of stock, the name and amount of each class
and the obligations, rights, and privileges attaching thereto
i Whenever these regulations refer to a Corporation spelled with a
capital C, they relate to a corporation organized under section 25 (a) of shall be set forth fully in the articles of association. Each
class of stock shall be so named as to indicate to the inthe Federal Eeserve Act.
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN'.
1191
vestor as nearly as possible what is its character and to put zen of the United States, or to a firm, company, or corporahim on notice of any unusual attributes.
tion approved by the board of directors as an eligible stockholder. When such notice has been given by the board
VII. Transfers of stock.
of directors the shares of stock so held shall cease to confer
any vote until they have been transferred as required
Section 25 (a) provides in part that—
A majority of the shares of the capital stock of any such corporation above and if on the expiration of two months after such
shall at all times be held and owned by the citizens of the United States, notice the shares shall not have been so transferred, the
by corporations the controlling interest in which is owned by citizens shares shall be forfeited to the Corporation.
of the United States, chartered under the laws of the United States or
The board of directors shall prescribe in the by-laws of
of a State of the United States, or by firms or companies the controlling
the Corporation appropriate regulations for the registration
interest in which is owned by citizens of the United States.
shares of stock in accordance with the terms of the
In order to insure compliance at all times with the re- of the
and these regulations. The by-laws must also provide
quirements of this provision after the organization of the law
the certificates of stock issuedby the Corporation shall
Corporation, shares of stock shall be issuable and transfer- that
contain provisions sufficient to put the holder on notice
able only on the books of the Corporation. Every applica- of
the terms of the law and the regulations of the Federal
tion for the issue or transfer of stock shall be accompanied Reserve
Board denning the limitations upon the rights
by an affidavit of the party to whom it is desired to issue of transfer.
or transfer stock, or by his or its duly authorized agent,
stating—
VIII. Operations in the United States.
In the case of an individual.—(a) Whether he is or is
No Corporation shall carry on any part of its business in
not a citizen of the United States and if a citizen of
the United States, whether he is a natural born citizen the United States except such as shall be incidental to its
or a citizen by naturalization, and if naturalized, whether international or foreign business. Agencies may be eshe remains for any purpose in the allegiance of any tablished in the United States with the approval of the
foreign sovereign or state; (6) whether there is or is not Federal Reserve Board for specific purposes, but not genany arrangement under which he is to hold the shares erally to carry on the business of the Corporation.
or any of the shares which he desires to have issued or
IX. Investments in the stock of other corporations.
transferred to him, in trust for or in any way under the
control of any foreign state or any foreigner, foreign corpoIt
is contemplated by the law that a Corporation shall
ration, or any corporation under foreign control, and if so,
conduct its business abroad either directly or indirectly
the nature thereof.
In the case of a corporation.—(a) Whether such corpora- through the ownership or control of corporations, and it is
tion is or is not chartered under the laws of the United accordingly provided that a Corporation may invest in the
States or of a State of the United States. If it is not, no stock, or other certificates of ownership, of any other corfurther declaration is necessary, but if it is, it must also poration organized—
(a) Under the provisions of section 25 (a) of the Federal
be stated (b) whether the controlling interest in such corporation is or is not owned by citizens of the United States, Reserve Act;
(6) Under the laws of any foreign country or a colony or
and (c) whether there is or is not any arrangement under
which such coropration will hold the shares or any of the dependency thereof;
(c) Under the laws of any State, dependency, or insular
shares if issued or transferred to such corporation, in trust
for or in any way under the control of any foreign state or possession of the United States;
any foreigner or foreign corporation or any corporation provided, first, that such other corporation is not engaged
in the general business of buying or selling goods, wares,
under foreign control, and, if so, the nature thereof.
In the case of a firm or company.—(a) Whether the con- merchandise, or commodities in the United States; and
trolling interest in such firm or company is or is not owned second, that it is not transacting any business in the United
by citizens of the United States and, if so, (b) whether States except such as is incidental to its international or
there is or is not any arrangement under which such firm foreign business.
Except with the approval of the Federal Reserve Board,
or company will hold the snares or any of the shares if issued or transferred to such firm or company in trust for or no Corporation shall invest an amount in excess of 15 per
in any way under the control of any foreign state or any cent of its capital and surplus in the stock of any corporaforeigner or foreign corporation or any corporation under tion engaged in the business of banking, or an amount in
excess of 10 per cent of its capital and surplus in the stock
foreign control, and, if so, the nature thereof.
The board of directors of the Corporation, whether acting of any other kind of corporation.
No Corporation shall purchase any stock in any other
directly or through an agent, may, before making any issue
or transfer of stock, require such further evidence as in corporation organized under the terms of section 25 (a) or
their discretion they may think necessary in order to de- under the laws of any State, which is in substantial comtermine whether or not the issue or transfer of the stock petition therewith, or which holds stock or certificates of
would result in a violation of the law. No issue or transfer ownership in corporations which are in substantial compeof stock which would cause 50 per cent or more of the total tition with the purchasing Corporation. This restriction,
amount of stock issued or outstanding to be held contrary however, does not apply to corporations organized under
to the provisions of the law or these regulations shall be foreign laws.
X. Branches.
made upon the books of the Corporation. The decision
of the board of directors in each case shall be final and conNo Corporation shall establish any branches except
clusive and not subject to any question by any person, with the approval of the Federal Reserve Board, and in
firm, or corporation on any ground whatsoever.
no case shall any branch be established in the United
If at any time by reason of the fact that the holder of any States.
shares of the Corporation ceases to be a citizen of the United
States, or, in the opinion of the board of directors, becomes XI. Issue of debentures, bonds, and promissory notes.
subject to the control of any foreign state or foreigner or
foreign corporation or corporation under foreign control,
Approval of the Federal Reserve Board.—No Corporation
50 per cent or more of the total amount of capital stock shall make any public or private issue of its debentures,
issued or outstanding is held contrary to the provisions of bonds, notes, or other such obligations without the approval
the law or these regulations, the board of directors may, of the Federal Reserve Board, but this restriction shall
when apprised of that fact, forthwith serve on the holder not apply to notes issued by the Corporation in borrowing
of the shares in question a notice in writing requiring such from banks or bankers for temporary purposes not to exceed
nolder within two months to transfer such shares to a citi- one year. The approval of the Federal Reserve Board
1192
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Limitations.—(1) Individual drawers: No acceptances
will be based solely upon the right of the Corporation to
make the issue under the terms of this regulation and shall be made for the account of any one drawer in an
shall not be understood in any way to imply that the amount aggregating at any time in excess of 10 per cent
Federal Reserve Board has approved or passed upon the of the subscribed capital and surplus of the Corporation,
merits of such obligations as an investment. The Federal unless the transaction be fully secured or represents an
Reserve Board will consider the general character and exportation or importation of commodities and is guaranteed
scope of the business of the Corporation in determining by a bank or banker of undoubted solvency. (2) Aggrethe amount of debentures, bonds, notes, or other such gates: Whenever the aggregate of acceptances outstanding
obligations of the Corporation which may be issued by it. at any time (a) exceeds the amount of the subscribed
Application.—Every application for the approval of capital and surplus, 50 per cent of all the acceptances in
any such issue by a Corporation shall be accompanied by excess of the amount shall be fully secured; or (6) exceeds
(1) a statement of the condition of the Corporation in such twice the amount of the subscribed capital and surplus, all
form and as of such date as the Federal Reserve Board the acceptances outstanding in excess of such amount
may require; (2) a detailed list & the securities by which shall be fully secured. (The Corporation shall elect
it is proposed to secure such issue, stating their maturities, whichever requirement (a) or (6) calls for the smaller
indorsements, guaranties, or collateral, if any, and in amount of secured acceptances.) In no event shall any
general terms the nature of the transaction or transactions Corporation have outstanding at any one time acceptances
upon which they were based; and (3) such other data as drawn for the purpose of furnishing dollar exchange in an
the Federal Reserve Board may from time to time require. amount aggregating more than 50 per cent of its subscribed
Advertisements.—No circular, letter, or other document capital and surplus.
advertising the issue of the obligations of a Corporation
Reserves.—Against all acceptances outstanding which
shall state or contain any reference to the fact that the mature in 30 days or less a reserve of at least 15 per cent
Federal Reserve Board has granted its approval of the shall be maintained, and against all acceptances outstandissue to which the advertisement relates. This require- ing which mature in more than 30 days a reserve of at least
ment will be enforced strictly in order that there may be 3 per cent shall be maintained. Reserves against acceptno possibility of the public's misconstruing such a refer- ances must be in liquid assets of any or all of the following
ence to be an approval by the Federal Reserve Board of kinds: (1) cash; (2) balances with other banks; (3) bankthe merits or desirability of the obligations as an invest- ers' acceptances; and (4) such securities as the Federal
ment.
Reserve Board may from time to time permit.
XII. Sale of foreign securities.
XIV. Deposits.
Approval of the Federal Reserve Board.—No Corporation
shall offer for sale any foreign securities with its indorseIn the United States.—No Corporation shall receive in
ment or guaranty, except with the approval of the Federal the United States any deposits except as are incidental
Reserve Board, but such approval will be based solely to or for the purpose of carrying out transactions in foreign
upon the right of the Corporation to make such a sale countries or dependencies of the United States where the
under the terms of this regulation and shall not be under- Corporation has established agencies, branches, correstood in any way to imply that the Federal Reserve spondents, or where it operates through the ownership or
Board has approved or passed upon the merits of such control of subsidiary corporations. Deposits of this
securities as an investment.
character may be made by individuals, firms, banks, or
Application.—Every application for the approval of other corporations, whether foreign or domestic, and may
such sale shall be accompanied by a statement of the be time deposits or on demand.
character and amount of the securities proposed to be sold,
Outside the United States.—Outside the United States a
their indorsements, guaranties, or collateral, if any, and Corporation may receive deposits of any kind from indisuch other data as the Federal Reserve Board may from viduals, firms, banks, or other corporations: Provided,
time to time require.
however, That if such Corporation has any of its bonds,
Advertisements.—No circular, letter, or other document debentures, or other such obligations outstanding it may
advertising the sale of foreign securities by a Corporation receive abroad only such deposits as are incidental to the
with its indorsement or guaranty shall state or contain any conduct of its exchange, discoimt, or loan operations.
reference to the fact that the Federal Reserve Board has
Reserves.—Against all deposits received in the United
granted its approval of the sale of the securities to which States reserve of not less than 13 per cent must be mainthe advertisement relates.
tained. This reserve may consist of cash in vault, a balance with the Federal Reserve Bank of the district in
X I I I . Acceptances.
which the head office of the Corporation is located, or a
Kinds.—Any Corporation may accept (1) drafts and balance with any member bank. Against all deposits rebills of exchange drawn upon it which grow out of transac- ceived abroad the Corporation shall maintain such reserves
tions involving the importation or exportation of goods, as may be required by local laws and by the dictates of
and (2) drafts and bills of exchange which are drawn by sound business judgment and banking principles.
banks or bankers located in foreign countries or dependXV. General limitations and restrictions.
encies or insular possessions of the United States for the
purpose of furnishing dollar exchange as required by the
Liabilities of one borrower.—The total liabilities to a Corusages of trade in such countries, dependencies, and
possessions, provided, however, that, except with the poration of any person, company, firm, or corporation for
approval of the Federal Reserve Board and subject to such money borrowed, including in the liabilities of a company
limitations as it may prescribe, no Corporation shall exer- or firm the liabilities of the several members thereof, shall
cise its power to accept drafts or bills of exchange if at at no time exceed 10 per cent of the amount of its subthe time such drafts or bills are presented for acceptance scribed capital and surplus, except with the approval of
it has outstanding any debentures, bonds, notes, or other the Federal Reserve Board: Provided, however, That the
discount of bills of exchange drawn in good faith against
such obligations issued by it.
Maturity.—Except with the approval of the Federal actually existing values and the discount of commercial or
Reserve Board, no Corporation shall accept any draft or business paper actually owned by the person negotiating
bill of exchange which grows out of a transaction involving the same shall not be considered as money borrowed
the importation or exportation of goods with a maturity within the meaning of this paragraph. The liability of a
in excess of six months, or shall accept any draft or bill of customer on account of an acceptance made by the Corexchange drawn for the purpose of furnishing dollar poration for his account is not a liability for money borrowed within the meaning of this paragraph unless and
exchange with a maturity in excess of three months.
1193
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
until he fails to place the Corporation in funds to cover the banks and trust companies doing business in the District
payment of the acceptance at maturity or unless the Cor- of Columbia, regardless of the sources of their charter.
The term "resources" shall be construed to mean an
poration itself holds the acceptance.
Aggregate liabilities of the Corporation.—The aggregate ofamount equal to the sum of the deposits, capital, surplus,
the Corporation's liabilities outstanding on account of ac- and undivided profits.
ceptances, average domestic and foreign deposits, debenThe term "State bank " shall include any bank, banking
tures, bonds, notes, guaranties, indorsements, and other association, or trust company incorporated under State law.
such obligations shall not exceed at any one time ten times
The term "private banker" shall apply to any unincorthe amount of the Corporation's subscribed capital and porated individual engaging in one or more phases of the
surplus except with the approval of the Federal Reserve banking business as that term is generally understood and
Board. In determining the amount of the libilities within to any member of an unincorporated firm engaging in such
the meaning of this paragraph, indorsements of bills of ex- business.
change having not more than six months to run, drawn,
The term "Edge Act" shall mean section 25 (a) of the
and accepted by others than the Corporation, shall not be Federal Reserve Act, as amended December 24, 1919.
included.
The term "Edge Corporation" shall mean any corporaOperations abroad.—Except as otherwise provided in the tion organized under the provisions of the Edge Act.
law and these regulations, a Corporation may exercise
The term "city of over 200,000 inhabitants'' includes
abroad not only the powers specifically set forth in the law any city, incorporated town, or village of more than 200,000
but also such incidental powers as may be usual in the inhabitants, as shown by the last preceding d ecennial cendetermination of the Federal Reserve Board in connection sus of the United States. Any bank located anywhere
with the transaction of the business of banking or other within the corporate limits of such city is located in a city
financial operations in the countries in which it shall of over 200,000 inhabitants within the meaning of the Claytransact business. In the exercise of any of these powers ton Act, even though it is located in a suburb or an outlying
abroad a Corporation must be guided by the laws of the district at some distance from the principal part of the city.
country in which it is operating and by sound business
judgment and banking principles.
II. Prohibitions of Clayton Act.
XVI. Management.
The directors, officers, or employees of a Corporation
shall exercise their rights and perform their duties as directors, officers, or employees, with due regard to both the
letter and the spirit of the law and these regulations. For
the purpose of these regulations the Corporation shall, of
course, be responsible for all acts of omission or commission
of any of its directors, officers, employees, or representatives in the conduct of their official duties. The character
of the management of a Corporation and its general attitude toward the purpose and spirit of the law and these
regulations will be considered by the Federal Reserve
Board in acting upon any application made under the
terms of these regulations.
XVII. Reports and examinations.
Reports.—Each Corporation shall make at least two reports annually to the Federal Reserve Board at such
times and in such form as it may require.
Examinations.—Each Corporation shall be examined at
least once a year by examiners appointed by the Federal
Reserve Board. The cost of examinations shall be paid
by the Corporation examined.
XVIII. Amendments to regulations.
These regulations are subject to amendment by the
Federal Reserve Board from time to time: Provided, however, That no such amendment shall prejudice obligations
undertaken in good faith under regulations in effect at
the time they were assumed.
REGULATION L, SERIES OF 1920.
INTERLOCKING BANK DIRECTORATES UNDER THE CLAYTON ACT.
I. Definitions.
Within the meaning of this regulation—
The term ''member bank" shall apply to any national
bank and any State bank or trust company which is a
member of the Federal Reserve System.
The term "national bank" shall be construed to apply
not only to national banking associations, but also to all
Under section 8 of the Clayton Antitrust Act—
(1) No person who is a director or other officer or employee of a national bank or Edge Corporation having resources aggregating more than $5,000,000 can legally serve
at the same time as director, officer, or employee of any
other national bank or Edge Corporation, regardless of its
location.
(2) No person who is a director in a State bank or trust
company having resources aggregating more than
$5,000,000 or who is a private banker having resources aggregating more than $5,000,000 can legally serve at the
same time as director of any national bank or Edge Corporation, regardless of its location.
(3) No person can legally be a director, officer, or employee of a national bank or Edge Corporation located in a
city of more than 200,000 inhabitants who is at the same
time a private banker in the same city or a director, officer,
or employee of any other bank (State or national) located
in the same city, regardless of the size of such bank.
The eligibility of a director, officer, or employee under
the foregoing provisions is determined by the average
amount of deposits, capital, surplus, and undivided profits
as shown in the official statements of such bank, banking
association, or trust company filed as provided by law
during the fiscal year next preceding the date set for the
annual election of directors, and when a director, officer,
or employee has been elected or selected in accordance
with the provisions of the Clayton Act it is lawful for him
to continue as such for one year thereafter under said
election or employment.
When any person elected or chosen as a director, officer,
or employee of any bank is eligible at the time of his election or selection to act for such bank in such capacity his
eligibility to act in such capacity is not affected by reason
of any change in the affairs of such bank from whatsoever
cause, until the expiration of one year from the date of
his election or employment.
III. Exceptions.
The provisions of section 8 of the Clayton Act—
(1) Do not apply to mutual savings banks not having a
capital stock represented by shares.
(2) Do not prohibit a person from being at the same time
a director, officer, or employee of a national bank or Edge
Corporation and not more than one other national bank,
Edge Corporation, State bank, or trust company, where the
1194
FEDERAL RESERVE BULLETIN.
entire capital stock if one is owned by the stockholders of
the other.
(3) Do not prohibit a person from being at the same time
a class A director of a Federal Reserve Bank and also an
officer or director, or both an officer and a director, in one
member bank.
(4) Do not prohibit a person who is serving as director
of a national bank, or Edge Corporation, even though it
has resources aggregating over $5,000,000, from serving at
the same time as director of any number of State banks
and trust companies, provided such State institutions are
not located in the same city of over 200,000 inhabitants
as the national bank or Edge Corporation, and do not have
resources aggregating in the case of any one bank more than
$5,000,000.
(5) Do not prohibit a person from serving at the same
time as director, officer, or employee of any number of
national banks, provided no two of them are located in the
same city of over 200,000 inhabitants and no one of them
has resources aggregating over $5,000,000.
(6) Do not prohibit a person who is not a director, officer,
or employee of any national bank or Edge Corporation from
serving at the same time as officer, director, or employee
of any number of State banks or trust companies, regardless of their locations and resources.
(7) Do not prohibit a person who is an officer or employee
but not a director of a State bank from serving as director,
officer, or employee of a national bank, or Edge Corporation, even though such State bank has resources aggregating over $5,000,000, provided both banks are not located
in the same city of over 200,000 inhabitants.
(8) Do not prohibit a person who is an officer or employee
but not a director of a national bank or Edge Corporation
from serving at the same time as director, officer, or employee of a State bank, even though such State bank has
resources aggregating over $5,000,000, provided both
banks are not located in the same city of over 200,000 inhabitants.
(9) Do not apply to persons who have obtained the
consent or approval of the Federal Reserve Board under
the provisions of the Kern amendment, section 25 of the
Federal Reserve Act, or the Edge Act, as hereinafter
provided.
Exceptions cumulative.—The above exceptions are cumulative.
IV. Permission
of the Federal Reserve Board under
amendment.
Kern
By the Kern amendment, approved May 15, 1916, as
amended May 26, 1920, the Clayton Act was amended so
as to authorize the Federal Reserve Board to permit any
private banker or any officer, director, or employee of any
member bank or class A director of a Federal Reserve
Bank to serve as director, officer, or employee of not more
than two other banks, banking associations, or trust
companies coining within the prohibitions of the Clayton
Act, provided such other banks are not in substantial
competition with such private banker or member bank.
Substantial competition.—If the institutions involved are
not in substantial competition, the Board is authorized, in
its discretion, to grant, withhold, or revoke such consent;
but if they are in substantial competition, the Board has
no discretion in the matter and must refuse such consent.
When obtained.—Inasmuch as the Kern amendment excepts from the prohibitions of the Clayton Act only those
" who shall first procure the consent of the Federal Reserve
Board," it is a violation of the law to serve two or more
institutions in the prohibited classes before such consent
has been obtained. Such consent should be obtained,
therefore, before becoming an officer, director, or employee
of more than one bank in the prohibited classes. Such
consent may be procured before the person applying therefor has been elected as a class A director of a Federal Reserve Bank or as a director of any member bank.
NOVEMBER, 1920.
Applications for permission.—A person wishing to obtain
the permission of the Federal Reserve Board to serve
banks coming within the prohibitions of the Clayton Act
should:
(1) Make formal application on F. R. B. Form 94, or, if
a private banker, on F. R. B. Form 94d. Each of these
forms is made a part of this regulation.
(2) Obtain from each of the banks involved a statement
on F. R. B. Form 94a, which is made a part of this regulation, showing the character of its business, together with
a copy of its last published statement of condition, and, if
a private banker, make a statement on F. R. B. Form 94a
showing the character of his or his firm's business.
(3) Forward all these papers to the Federal Reserve
agent of his district, who will attach his recommendation
on F. R. B. Form 94b, which is made a part of this regulation, and forward them in due course to the Federal
Reserve Board.
Approval or disapproval.—As soon as an application is
acted upon by the Board, the applicant will be advised of
the action taken.
If the Board approves the application, a formal certificate of permission to serve on the banks involved will be
issued to the applicant.
Rehearing.—If the Board decides that the banks are in
substantial competition and that it can not approve the
application, it will, upon petition of the applicant, reconsider its decision and afford him every opportunity to
present any additional facts or arguments bearing on the
subject.
Effect of permits.—Permission once granted is continuing
until revoked, and need not be renewed.
Revocation.—All permits, however, are subject to revocation at any time in the discretion of the Federal
Reserve Board. The issuance of a permit to any person
shall have the effect of revoking any or all permits which
may have been issued previously to that person.
V. Permits under section 25 of the Federal Reserve
Act.
With the approval of the Federal Reserve Board, any
director, officer, or employee of a member bank which has
invested in the stock of any corporation principally engaged in international or foreign banking or financial operations or banking in a dependency or insular possession of
the United States, under the provisions of section 25 of
the Federal Reserve Act, may serve as director, officer, or
employee of any such foreign bank or financial corporation.
Applications for approval.—The approval of the Federal
Reserve Board for such interlocking directorates may be
obtained through an informal application in the form of a
letter addressed to the Federal Reserve Board either by
the officer, director, or employee involved, or in his behalf
by one of the banks which he is serving. Such application
should be sent directly to the Federal Reserve Board.
VI. Permits to serve Edge corporations.
With the approval of the Federal Reserve Board—
(1) Any officer, director, or employee of any member
bank may serve at the same time as director, officer, or
employee of any Edge Corporation in whose capital stock
the member bank shall have invested.
(2) Any officer, director, or employee of any Edge
Corporation may serve at the same time as officer, director,
or employee of any other corporation in whose capital
stock such Edge Corporation shall have invested under the
provisions of the Edge Act.
Applications for approval.—Such approval may be obtained through an informal application in the form of a
letter addressed to the Federal Reserve Board either by
the director, officer, or employee involved, or in his behalf
by one of the banks or corporations involved. Such applications should be sent directly to the Federal Reserve
Board.
1195
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
RETAIL TRADE.
In the following tables is given a summary
of the results obtained during the past few
months in the 12 Federal Reserve districts on
the regular retail trade index form from representative department stores. In districts Nos.
1, 5, 11, and 12 the data were received in
(and averages computed from) actual amounts
(dollars). In districts Nos. 2, 3, 4, 6, 7, 8, 9,
and 10 the material wTas received in the form
of percentages, the averages for the cities and
districts computed from such percentages be-
ing weighted according to volume of business
done during the calendar year 1919. For the
month of September, the tables are based on
reports from 24 stores in district No. 1, 14 in
district No. 2, 35 in district No. 3, 19 in district No. 4, 24 in district No. 5, 10 in district
No. 6, 6 in district No. 7, 8 in district No. 8,
5 in district No. 9, 13 in district No. 10, 16 in
district No. 11, and 31 in district No. 12. The
number of stores vary somewhat, due to the
inclusion of new stores from time to time in the
reporting list.
Condition of retail trade in the twelve Federal Reserve districts.
[Percentage of increase.]
Comparison of net sales with those of corresponding period previous year.
District and city.
Jan. 1,1920, to close of—
Aug., Sept.,
1920. 1920. Feb.,
1920.
Jan.,
1920.
Feb.,
1920.
Mar.,
1920.
Apr.,
1920.
May,
1920.
June,
1920.
July,
1920.
33.2
43.5
15.4
36.1
38.9
29.4
16.8
26.0
19.4
25.5
27.8
28.5
16.3
27.2
11.6
9.1
16.0
14.7
District...'..
34.8
18.3
37.5
18.5
20.7
28.0
19.9
10.9
District No. 2:
N.Y.City and
Brooklyn...
Outside
54.6
29.9
66.6
50.4
15.0
22.4
26.4
32.3
22.4
26.9
10.9
26.4
District No. 1:
Boston
Outside
District
17.6
22.2
District No. 3
28.6
District No. 4
14.2
District No. 5
District No. 6
District No. 7
"48*2" ""51 ".7*
District No. 8
District No. 9
"
District No. 10
District No. 1 1 . . .
District No. 12:
Los Angeles... 83.8 51.6
San Francisco. 53.5 26.9
Oakland
27.4
41.4
Sacramento... 54.2
22.6
Seattle
23.9 22.4
Spokane
36.2
23.6
11.5
Salt Lake City 23.8
District
51.7
31.1
J u l y l , 1920, to end of—
Mar.,
1920.
Apr.,
^920.
May,
1920.
June,
1920.
July,
1920.
24.9
41.6
30.7
36.4
26.1
33.1
24.7
30.5
25.3
30.0
16.3
27.2
24.1
18.1
15.9
16.9
15.4
32.5
31.6
27.5
25.8
26.2
19.9
15.1
15.2
i 3.2
16.9
39.8
59.3
38.1
35.0
33.6
35.3
30.1
32.7
31.7
22.4
26.9
13.0
27.1
3.6
23.4
Aug., Sept.,
1920. 1920.
64.8
15.8
41.1
22.8
35.4
28.4
24.4
15.9
34.9
33.7
33.8
24.4
17.5
10.2
37.5
45.5
23.1
27.4
65.2
12.4
18.4
.9
23.4
33.3
50.7
31.3
11.0
31.0
49.7
34.3
31.5
21.4
24.3
59.6
23.8
29.9
15.7
11.6
41.2
30.9
32.1
9.3
28.1
49.6
31.0
34.6
11.4
29.3
58.7
23.8
29.9
15.7
11.6
41.2
17.0
19.6
4.3
10.9
11.8
12.9
11.6
14.1
• 25.9
20.3
26.2
15.2
36.0
38.2
24.6
5.3
12.1
7.5
29.9
12.6
28.6 "50.7" 57.4
11.8
.3
*"26".9"
7.8
12 4
20.5
33.6
8.8
22.0
43.5
19.8
24.9
5.6
21.2
24.9
27.3
21.1
19.6
29.6
18 0
19.6
25.9
14.1
16.9
35.5
16 8
24".6"
22.6
25.7
20.9
27.6
33.2
20.8
8.8
9.9
25.6
12.0
17.9
29.1
10.4
68.3
58.9
34.8
36.6
23.0
30.1
18.1
61.2
39.7
32.3
60.9
21.8
26.8
15.1
56.1
36.6
27.9
47.5
16.2
23.1
12.8
52.2
37.6
25.6
39.4
13.9
29 1
16.4
49.8
35.3
23.3
38.3
13.4
35 7
14.7
35.1
21.0
16.9
20 1
.2
22 7
20.6
42.4
19.6
14.7
13 3
1 4.4
16 8
16.1
46.5
41.0
36.9
34.7
33.2
21.2
21.4
58.4
35.4
31.0
65.1
19.2
19.8
10.5
43.6
28.5
14.9
33.9
4.3
10.9
7.1
38.2
40.9
17.1
34.4
6.3
48.8
26.4
39.0
23.6
15.2
32.1
11.1
62.8
18.3
35.1
21.0
16.9
20.1
.2
22.7
20.6
48.9
18.6
15.3
3.1
!8.0
12.7
11.6
37.8
13.8
31.2
27.8
21.2
21.7
1
Decrease.
57.0
3.6
14.5
14.5
ii.6
14.1 "i4*2
25 9 25 2
ii.i
20 9
37.9
17.3
M.2
19.8
1196
FEDERAL RESERVE BULLETIN.
NOVEMBER, 192O._
Conditions of retail trade in the twelve Federal Reserve districts—Continued.
[Percentage of increase.]
Stocks at end of month compared with—
Same month previous year.
District and city.
Previous month.
Jan., Feb.,
Mar., Apr., May, June, July, Aug., Sept., Jan., Feb., Mar., Apr., May, June, July, Aug., Sept.,
1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1920.
District No. 1:
Boston
Outside
District.
District No. 2:
New York Cit y and
Brooklyn
29.7
28.4
38.1
37.5
42.3
44.9
45.2
43.2
44.5
43.8
32.1
30.4
26.3
26.4
20.7
21.7
15.2
13.7
7.4
9.7
11.9
4.0
2.8
X
36.3
15.6 17.0
15.1
.2
4.9
3.2
9.5
9.7
29.6
38.0
42.8
44.7
44 . 3
41. 4
31.5
26.4
21.0
15.1
7.8
10.2
3.7
12.9 15.5 14.7
4.3
9.5
30.7
26.3
18.0
20.2
11.9
8.4
27.9
1 .3 16.6 15.4 14.3
11.7 17.7
4.6
7.3
5.6
5.7
9.3
District
District
District
District
No. 3
No 4
No. 5
No. 6
No 7
6.8
6.9
No
No
No
No
49.6
47 .9
51.7
38.4
46.2
30.9
68.6
53.6
49.1 1 43.2
39.5
24.3
56.1
51.5
41.1
42.7 *5i.*8" 64.9
25.7
63.9
59.5
29.9
39.9
30.4
57.0
67.1
50.2
49.7
38.9
27.6
43.3
18.7
40.7
42.1
59.4
27.7
37.1
*44."5* 53.7
25.4 35.0
58.3
62.2
35.2
61.8
53.8
63.3
64.9
60.7
34.4
29.4
55.5
39.0
65.0 62.9
54.9 58.5
29.7 33 9
34.1
46.7 "35 h'
59.6 57 3
47.5
43.1
27.7
23.4
45.8
31.2 33.4
9.7
27.1 16.2
4.7
22.5
18.4
11.4
18.4 *"3.*9" 12.6
45.5
9.4
48.4
58.0
56.5
52.6
40.1
25.3
16.4
48.6
57.0
44.0
45.9
10.6
District
a
53.8
51.6
8
9
10
11
San Francisco
Oakland
Sacramento
Seattle
45.
69.6
60.6
44.0
9.9
District No. 12:
38.0
-
26.7
53 3 28.4
48.3
57. 2 44.6
47 2 51.6
77 1 70.1
30 7
12.6
43.6
69.5
52.5
18.7 . . .
31.0
40.4
29.6
39.8
64.1
24.2
17.7
39.1
59.5
20.6
34.0
21.1
37.2
55.5
35.4
22.6
29.1
52.8
1
1.4
25.8
15.0 16.1
1.5
•
20.6
13.4
"£4.7*
7.0
45.1
10.5
"55.*9
12.3
11.6
14.1
4.7
10.1
5.4 16.7
7.3
1.9
i.l
2.3
3.0
1.5
.0
2.1
4.7
7.8
2.6
12.1
12.7
18.6
"ii.8
10.9
14.0
3.1
.8
16.1
0
13.0
11.0 1 1.4
2.5
19.2
5.6
15.6
.0 14.7
0
3.1
14.7
8 9
8.3
:
6.2
9.4
2.3
5.4
14.6
5.6
2.9
9 8
22.3
1.5
1.4
1.8 12.5
16.5 15.2 l 1.5
1.4
1.6 12.6 2 . 9
2.3
3.7
.1
9.8
14.9
16.'7 18.7 14.2
27.9 140.2 15.7 14.4
9.1
1.8
7.8
6.1
6.5
3.7
2.4
1.5
14.7
9.6
13.0
1.8
.7
8.4
9 2
10.2
13.1
4.8
11 6
6 9
4 6
6.6
13.7
7 4
6 3
**
4.9
Percentage of outstanding orders at end of month to
total purchases during previous calendar year.
Jan., Feb., Mar., Apr., May, June. July, Aug., Sept.,
Feb., Mar.,
May,
1920.
June,
1920.
July,
1920.
Aug., Sept.,
1920. 1920.
1920. 19iO. 1920. 1920. 1920. 1920. 1920. 1920. 1920.
1920.
1920.
Apr.
1920
320.8
229.8
382.2
402.5
509.5
320.5
389. £
464.7
348.4
442.5
339.2
431.7
419.2
436.4
447.1
472.1
412.7
485.9
26.5
16.7
19.6
19.7
18.8
18.6
15.8
15.5
15.4
7.5
15.4
10.0
18.5
9.1
13.7
14.2
11.4
14.7
306.0
385.5
389.9
405.5
366. 5
358.0
425.1
455.1
433.5
24.0
19.6
18.7
15.7
12.7
12.3
12.0
14.0
13.1
336.9
405.6
384.7
372.3
403.1
392. g
392. 4
415. 7
379.9
349.5
390.0
485.8
489.3
506.3
613.7
492.1
22.8
22.9
18.8
20.3
17.6
21.8
15.5
13.9
16.8
17.7
15.7
18.9
16.8
14.3
14.7
12.0
383.4
402. C
399. 4
369.9
440.1
496.7
573.9
19.0
18.2
14.8
17.2- 17.4
15.9
13.6
380.0
369.1
423.8
347. C
439. C
422.2
382.6
362. S
421. 5
357.5
362.3
407.0
399.8
403.6
505.9
471.2
412.7
560.7
500.3
468.8
512.9
21.0
27.9
18.6
20.4
298.6
332.1
305.8
328.3
ii.i
29.7
23.5
34.8
12.1
20.1
31.2
17.6
13.2
9.9
20.6
31.9
19.3
16.2
9.7
17.0
19.5
19.8
18.9
16.1
17.4
19.3
31. 8
285 4
iO9.6
353.7
427.9 410.7
432.6 377.0
107.9
384.1 *334." 6* "346!4"
24.8
19.4
16.9
20.9
31.4
9.6
"i4."6- 18.0
19.5
5.4
20.0
25.3
13.7
15.6
18.6
19^0.
Outside
District
District No. 2:
New York City
and Brooklyn.
Outside
District
District No. 3 .
District No. 4
District No. 5
District No. 6.. . .
District No. 7
District No. 8
District No. 9
District No. 10
District No. 11
District No. 12:
Los Angeles
San Francisco..
Oakland
Sacramento
Seattle.
Spokane.
Salt Lake City..
District
3.4
U.8
July 1,1920,
to end of—
Jan. 1,1920, to end of—
Jan.,
District No. 1:
Boston
9.3
29.3
Percentage of average stocks at end of each month to average
monthly sales for same period.
District and city.
9.9
•-
District
District
District
District
District
District
43. 8
386.3
456.8
189.4I
"337." 6* 272.1
422.7
405.2
490.6
418.3
477.5
581.6
468.3
494.9
610.7
429.0
534.7
515.3
390.' I 480.4
492. C) 469.8
585.1> 589.5
533.4
"427." i" 665." 6" *542."6" "527."<)' 539.7
508.8 755.9 605.8 528 i 605 *
456. ()
508.0
432.7
425.5
523.9
14.2
10.1
17.0
13.3
8.4
14.8
15.6
11.0
15.7
23.2
9.2
17.2
9.1
9.7 ***8"8
12.7
10.0
12.0
481.3 522.5 454.2 486.0 33.3 37.1 33.9 39.0 29.7 26.2 22.8 15.5
10.8
508.8 539.9 512.8 511.5 18.2 31.9 31.0 27.7 23.9 26.0 25.9 21.1
573.8 625.1 598.3
531.3
423.3
"22*6" "17'. h' "i7."2" "U.2 *i6.*3" *i6."3* *i2*2* "**8.*6
524.6 *476."2" 532.7 "508." 6"
31.1 25 1 29 9
579 4 652 6 675 5
37 2 40 6 34.7
18.7
516.0
536.5
1
489.6
Decrease.
504.0
28.0
31.7
27.2
21.6
23.2 23.1 22.3 14.2
9.5
NOVEMBER,
1197
FEDERAL RESERVE BULLETIN.
1920.
FOREIGN TRADE INDEX.
There is presented below a series of indexes
designed to reflect movements in foreign trade
of the United States, with fluctuations due to
price changes eliminated. The commodities
chosen for these indexes are those for which
prices are compiled by the Federal Reserve
Board in the preparation of its international
price index. The list includes 25 of the most
important imports, the value of which in 1913
formed 47.7 per cent of the total import values,
and 29 of the most important exports, the
value of which in 1913 formed 56.3 per cent
of the total export values. The list of the
commodities is given in the July BULLETIN. 1
After their decline in August total exports,
as measured in physical quantities of goods
rather than in values, again showed a slight
increase during September, though they were
still considerably less than for July. The
exports of producers' goods again showed a
decrease, but this was more than compensated
for by the increase in raw materials, due to
the seasonal movements of agricultural products. Total imports showed a further decline, being the lowest point reached during
the year 1920. A very large decrease is
noticeable in every class of imports, though
the largest decrease is shown in producers'
goods.
Value of exports and imports of selected commodities at 1918 prices.
[In thousands of dollars; i. e., 000 omitted.]
[Monthly average values, 1913=equal 100.]
Imports.
Exports.
Raw materials
(^commodities).
Value.
Producers'
Consumers'
Producers'
Grand total
Consumers'
Raw materials
Grand total
goods (10 com- goods (7 com- exports (29 com- (10 commodi- goods (12 com- goods (3 com- imports (25 commodities).
modities).
modities).
modities).
modities).
ties).
modities).
Index
Index
Index
num- Value. num- Value. number.
ber.
ber.
1913.
January . . . 100,027 116.8 11,762 101.4 30.715
71,074 83.0 12,266 105.8 30,790
February...
61,681 72.0 11,836 102.1 28,698
March
71,446 83.0 14,128 121.8 28,708
April
68,856 80.4 11,661 100.6 29,923
May
46,963 54.8 11,612 100.1 28,242
June
51,325 59.9 11,109 95.8 27,686
July
74,869 87.4 11,547 99.5 29,370
August
September.. 103,614 120.9 10,622 91.6 32,190
137,772 160.9 12,608 108.7 34,612
October
November.. 126, me 148.1 9,987 86.1 31,246
December.. . 113,326 132.3 10,053 86.7 33,089
Year. 1,027.789 100.0 139,191 100.0 365,269
=====
1919.
January
84,066 98.2 18,444 159.0 56,748
February...
58,488 68.3 14,598 125.9 53,338
March
57,659 67.3 16,161 139.3 61,585
April
65,112 76.0 19,356 166.9 80,639
May
67,595 78.9 15,972 137.7 58,731
June
98,335 114.8 28,618 247.1 96,088
July
71,917 84.0 17,150 147.9 52,553
August
81,250 94.9 19,574 168.8 49,194
September..
70,209 82.0 19,365 167.0 43,108
October
70,240 82.0 16,844 145.2 45,983
November..
99,589 116.3 15,740 135.7 46,473
December..
89,585 104.6 13,208 113.9 43,563
Year..
914,045
1920
January
February...
March
April
May
June
July
August
September..
93,141
70,130
90,805
68,048
63,650
55,200
66,924
67,225
70,699
88.9 215,030
154.5 688,003
108.7 15,647 134.9 35,406
81.9 14,198 122.4 41,645
106.0 17,279 149.0 56,428
79.4 17,063 147.1 51,689
74.3 17,546 151.3 62,457
64.5 14,663 126.4 46,113
78.1 19,138 165.0 43,325
78.5 15,708 135.4 28,594
82.5 13,883 119.7 28,599
100.9
101.2
94.3
94.3
98.3
92.8
91.0
96.5
105.8
113.8
102.7
108.7
Value.
142,504 111.6
114,130 89.4
102,215 80.1
114,282 89.5
110,440 86.5
86,817 68.0
90,120 70.6
115,786 90.7
146,426 114.7
184,992 144.9
168,069 131.6
156,468 122.5
100.0 1,532,249
186.4
175.2
202.3
264.9
192.9
315.1
172.7
161.6
141.6
151.1
152.7
143.1
61,347 121.9 40,107
55,332 110.0 41,060
55,555 110.4 45,753
52,271 103.9 42,346
50,089 99.5 38,409
40,822 81.1 38,606
40,298 80.1 35,990
42,470 84.4 37,385
52,659 104.6 41,184
44,407
88.2 22,721
48,107 95.6 28,788
60,904 121.0 31,929
100.0 604,261
100.0 444,278
159,258 124.7 44,552 88.5
126,424 99.0 47,774 94.9
135,405 106.1 54,947 109.2
165,107 129.3 63,385 125.9
142,298 111.4 81,274 161.4
223,041 174.7 86,256 171.4
141,620 110.9 86,443 171.7
150,018 117.5 85,571 169.9
132,682 103.9 123,456 245.3
133,067 104.2 99,127 196.9
161,802 126.7 98,690 196.1
146,356 114.6 79,965 158.9
188.4 1,817,078
116.3
136.8
185.4
169.8
205.2
151.5
142.4
94.0
94.0
Index
Index
Index
Index
num- Value. num- Value. num- Value. number.
ber.
ber.
ber.
144,194
125,973
164,512
136,800
143,653
115,976
129,387
111,527
113,181
53,071
66,708
82,546
88,017
89,782
61,886
77,448
42,128
70,033
74,730
79,198
71,886
108.3 14,219 108.0
110.9 14,335 108.9
123.6 13,378 101.6
114.4 10,896 82.7
103.7 7,718 58.6
104.3 8,382 63.7
97.2 9,698 73.6
101.0 11,078 84.1
111.2 15,883 120.6
61.4 15,929 121.0
77.8 15,059 114.4
86.2 21,446 162.9
100.0 158,021
143.3
180.2
223.0
237.7
242.5
167.2
209.2
113.8
189.2
201.9
213.9
194.2
14,434
14,230
25,223
18,869
24,861
18,512
29,492
20,953
25,240
20,386
21,254
21,521
115.1
110.1
114.1
104.9
95.7
87.3
85.4
90.4
109.2
82.6
91.5
113.7
100.0 1,206,560
100.0
108.1
109.6
191.6
143.3
188.8
140.6
224.0
159.1
191.7
154.8
161.4
163.4
112,057
128,712
162,716
170,271
195,917
166,654
193,383
148,652
218,729
194,243
199,142
173,372
111.4
128.0
161.8
169.3
194.9
165.7
192.3
147.8
217.5
193.2
198.1
172.4
161.4 2,063,848
171.1
157.5 857,434
193.0 254,975
112.9
98.7
128.9
107.1
112.5
91.1
101.3
87.3
88.6
206.2 90,655
173.0 107,162
192.8 125,496
174.0 97,187
127.5 84,074
149.5 95,699
121.0 93,893
121.8 95,159
102.1 61,163
244.9 24,064 182 7
289.5 19,964 151.6
339.0 25,999 197.4
262.5 29,076 220.8
227.1 14,887 113.1
258.5 21,463 163.0
253.6 24,562 186.5
257.0 22,624 171.8
165.2 17,226 130.8
i An additional list of 11 commodities of imports is given in the October BULLETIN.
Index
number.
115,673
110,727
114,686
105,513
96,216
87,810
85,986
90,933
109,726
83,057
91,954
114,279
118.6 951,440
103,796
87,086
97,039
87,588
64,177
75,225
60,942
61,321
51,388
Value.
218,515
214,212
248,534
213,851
163,138
192,387
179,397
179,104
129,777
217.3
213.1
247.2
212.7
162.3
191.3
178.4
178.1
129.1
1198
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
WHOLESALE PRICES ABROAD.1
Index numbers of wholesale prices (all commodities).
[1913 = 100.]
United
United
France;
States;
States;
Bulletin
Italy;
United
Federal
Bureau of Kingdom;
dela
Prof.
Reserve
Labor
Statistique Bachi (40
Statist
Board (90 Statistics
G enerale commodi(45 comquota(328 quota- modities).
(45 comties).
tions).
tions).
modities).
100
1913
1914
1915
1916
1917
1918
100
100
101
124
174
197
100
101
126
159
206
226
100
101
137
187
262
339
100
95
133
202
299
409
Sweden;
Svensk
Handelstidning
(47 quotations).
2
Japan;
Bank of
Japan for
Tokyo (56
commodities).
100
116
145
185
244
339
100
96
97
117
• 149
197
Australia;
Calcutta,
CommonCanada;
India;
wealth
DepartDepartBureau
m e n t of
ment
of
Census and L a b o r (272 Statistics
Statistics
quota(75
com(92 comtions).
modities).
modities).
3 100
141
132
& 155
170
100
101
110
135
177
206
4
100
1919.
September
October
November
December
211
212
219
226
221
223
230
238
252
264
271
276
360
382
405
423
370
388
436
455
319
307
308
317
257
271
280
288
185
200
199
197
223
222
227
240
200
1920.
January. .
February
March
April
Mav
June
July
August .
September
242
242
248
263
264
258
250
234
226
248
249
253
265
272
269
262
250
242
288
306
307
313
305
300
299
298
292
487
522
555
584
550
493
496
501
526
504
556
619
679
659
615
613
632
660
319
342
354
354
361
366
363
365
362
301
313
321
300
272
248
239
235
230
203
206
209
217
225
233
234
236
230
248
254
258
261
263
258
256
244
241
218
209
198
200
210
206
209
209
208
1 The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the
BULLETIN for January, 1920. In all cases except that of the United States the original basis upon which the index numbers have been computed
has been shifted to the 1913 base. The monthly and yearly index numters are therefore cnly approximate. The latest f gures are received by
cable and are subject to correction.
2 July 1, 1913, to June 30,1914=100.
3 July, 1914=100.
4 End of July, 1914=100.
& Last six months of 1917.
Current price studies of foreign countries
show that with the exception of Australia and
India, the present level is in each case below
that of last spring. In France and Italy, however, the decline which marked the summer
months has been reversed, and prices are again
rising. Japanese prices have fallen by almost
one-third from the high point of March, but in
the last two months the recessions have been
less marked than in the period just previous.
Although declines have occurred in prices in
Canada, the United Kingdom, and Sweden,
they have been less pronounced than in the
United States.
ENGLAND.
The coal strike inaugurated on October 16
exceeds in importance any event of a strictly
economic nature which has occurred in England
since the armistice. Called originally for September 25, by a vote of 606,782 for and 238,865
against, it was temporarily avoided at that time
by the suggestion of the Prime Minister that
wages be fixed according to national output.
The earlier proposal of the Government for an
impartial tribunal to decide upon wages had
been rejected by the miners' delegates. Wages
fixed according to output apparently appealed
to the mine leaders but there was some difficulty
in deciding upon the "datum line"—i. e., the
point of production above which wage increases
would be made. However, after conferences
between mine owners, the miners' delegates,
and Government representatives, the u datum
line •" was decided upon, and the wage increases
to be allowed for output above this point agreed
to. Annual output of 240,000,000 tons, it was
agreed, would allow for an increase of Is. per
day, 244,000,000 tons an increase of Is. 6d. per
day, and so on up to 256,000,000 tons, which
would provide an increase of 3s. a day. This
proposal was put to the miners but was rejected
by them by a vote of 635,098 against, and 181,428 for. Meanwhile, some of the miners' leaders, such as Robert Smillie, had come out
frankly in favor of accepting the proposal. In
view of the fact that the vote was so strikingly
against the suggestion of the Government, however, the strike was called October 16.
The strike continued until November 8, although the basis for adjustment was agreed
upon on October 28. Delay in returning to
work was caused by the fact that the terms of
the agreement entered into by the mine owners
and the miners1 delegates had to be submitted
by ballot to the miners themselves. The agreement provides for an immediate wage increase
of 2s. a day. September output is made the
basis or datum line of production; 6d. will be
added to the daily wage if this output is exceeded, subtracted from it if output falls short
of this figure. The 2s. increase is to be effective
until January 1, when output will be under review again. For the future the rate of increase
during a given month will be fixed according to
output for the preceding month. The increase
in wages is to be financed from export coal
profits. To this extent the adjustment is along
the lines suggested by the Prime Minister prior
to the strike. New features which have been
introduced are the arrangement for owners7
profits to increase or decrease with output and
for the creation of the national wages board.
The latter can not begin functioning until the
end of March, but after that time will handle
all questions connected with the adjustment of
wages. If output falls below the datum line,
owners' profits will be reduced as well as miners'
wages. In this way a stimulus is given to all
factors in the industry to increase production.
Financial conditions during September were
substantially unchanged as compared with
August. The ratio of reserves to deposit liabilities of the Bank of England declined from 14.3
per cent for the week ending August 25 to 11.07
per cent for the week ending September 29.
Coin and bullion held by the bank and the
treasury fluctuated somewhat above £151 ; 000,000. Bank-note circulation increased approximately £2,500,000 during the month, but
the currency note circulation was decreased by
£2,200,000, leaving the issue with a margin of
£14,000,000 under the limit fixed by law.
With the increase in the sale of treasury bills.
temporary advances by the bank to the Government were materially decreased. The total
floating debt, however, was £32,000,000 higher
at the end of September than a month earlier.
Repayment of the Anglo-French loan accounts
for the increase.
Failure of the funding operations initiated by
the treasury in the spring has revived the old
issue of how to handle the floating debt. Some
appear to favor a forced loan. Press reports
indicate the possibility of 4 per cent bonds with
the income exempt from supertax. As was reported in the BULLETIN for September, powerful
commercial interests oppose any action likely
to decrease the floating debt at the risk of
higher taxes, or tighter money.
Discount rates were slightly easier during the
week ending September
24 than in the preceding weeks, 3-months7 bank bills being quoted
at 6 \%, as compared with 6 {i~i during the week
before. As the end of the quarter approached,
however, money was very scarce and higher
rates were obtainable.
A survey of the foreign-exchange situation
and the trade of England with her former allies
since the armistice discloses some interesting
facts regarding the extent of thefinancialsupport which England has given the Continent
during the past two years. It will be remembered that in making its final report in December, 1919, the committee on currency and the
foreign exchanges after the war recommended
that preference be given to exports to countries
which could pay for them currently, since England herself would be expected to pay for her
imports on the usual short-term basis. This
view was not concurred in by all interests, however, and it seems clear that traders and bankers have done considerable long-time foreign
financing.
Deposit and note accounts.
1920
End of—
January...
February.
March
April
Mas'
June
July
August
September
1
1199
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Bank
notes.1
000's.
£84,258
92,426
99.371
101,284
103,614
106,658
106.869
106,294
108,791
Currency
notes and Deposits,
certificates public and
outstandother.
ing.
000's.
£329,554
324,994
335,372
337.377
348,316
357,356
361,911
356,012
353,795
Less notes in currency notes account.
000's.
£155,272
190,147
137,170
140,381
117,784
191,715
133.796
115,955
127,167
Government floating debt.
Coin and
bullion.*
Treasury
bills. '
000's.
000's.
£128,434 £1,111,000
1,070,000
138,946
1,107,000
140,672
141,018 1,048,000
140,955 1,062,000
1.050,000
146,382
1,058,000
151,734
1,067,000
151,529
151,615 1,139,000
Discount rates.
Temporary Total float- 3 months' 6 months'
advances. ing debt. bank bills. trade bills.
000's.
000's.
£208,0C0 £1,319,000
1,258.000
188,000
1,312,000
205,000
1,297,000
249,000
1,283,000
221,000
1,294,000
244,000
1,262,000
204,000
183.000 1,250,000
1,282,000
143,000
Per cent.
Per cent.
W
5]
2 Held by the Bank of England and by the Treasury as note reserve.
In 1913, 12 per cent of the value of British In contrast with this small ratio for 1913, for
exports went to France, Belgium, and Italy. the 18 months from January, 1919, LO July
1200
FEDERAL RESERVE BULLETIN.
1920, 26 per cent of her export values went to
these same countries. In other words, over
one-fourth of British exports, when expressed
in terms of money values, went to France,
Belgium, and Italy in the 18 months following
the close of the war.
Imports from these three countries into England did not figure largely in the prewar trade,
amounting to only 10 per cent in 1913. In
the 18 months following the armistice, however, when England was sending a comparatively large proportion of her goods to these
countries, she was receiving only 6 per cent of
her imports from them. In the table below
are presented, on a quarterly basis, the value
of the goods exported by the United Kingdom
to each one of these countries between January, 1919, and July, 1920.
NOVEMBER,
1920.
Value of imports into the United Kingdom from France,
Belgium, and Italy, quarterly, January, 1919, to July,
1920.
[In millions of pounds sterling.]
Quarter e n d i n g Mar. 31, 1919
June 30
Sept 30
Dec. 31 . . .
Mar. 31,1920
June 30
Total.
France. Belgium.
Italy.
8.7
11.2
13.6
15.3
19.3
21.6
0.2
0.5
2.3
6.3
12.0
12.7
3.9
4.1
5.4
5.1
89.6
34.0
25.3
3.4
o o
While England has been accumulating a
large favorable balance with her former allies
on the Continent, amounting to something
over £300,000,000 for the 18 months between
January, 1919, and July, 1920, her unfavorable
balance with the United States has been rapidly
Value of exports from the United Kingdom to France, Bd- increased. Her total imports from the United
gium, and Italy, quarterly, January, 1919, to July, 1920. States during the period were valued at £854,[In millions of pounds sterling.]
000,000, her exports to the United States at
£146,000,000. Detailed quarterly figures are
Quarter e n d i n g France. Belgium. Italy.
presented below.
Mar. 31 1919 .
June 30
Sept 30
Dec. 31
Mar 31 1920
June 30
Total exports
Imports from
Balance of exoorts
47.3
41.3
45.8
48.4
56.8
47.4
287.1
89.6
5.5
18.9
19.2
21.9
21.6
18.6
6.9
7.1
8.1
11.4
12.6
12.5
105.8
34.0
58.6
25.3
197.5
71.8
33.3
Exports to France have been made on a
large scale ever since the armistice and show
little sign of diminishing in later months. The
total for the period amounts to £287,000,000,
which gives England a so-called favorable
balance of £197,500,000. It is impossible to
state how this trade balance has been financed,
but it undoubtedly has taken from England a
large vplume of current funds.
Belgium has received goods to the value of
£105,800,000 from the United Kingdom, and
has sent in return goods to the value of £34,000,000, leaving a balance to be credited to
the United Kingdom of £71,800,000. Italy
has taken a far smaller amount than France or
Belgium, and her unfavorable balance with
England is appreciably smaller, amounting to
only £33,300,000.
Some light is thrown on England's prospect
of repayment by the figures showing her
imports from these countries by quarters.
Imports from France and Belgium have increased steadily since the armistice. In the
case of Italy, the same rate of increase has not
been attained. On the other hand, Italy's
debts to Great Britain are smaller than those
of France.
Value of trade of the United Kingdom with the United Statest
quarterly, January, 1919, to July, 1920.
[In millions of pound>s sterling.]
Quarter e n d i n g -
Imports. Exports.
Mar. 31,1919
June 30
Sept. 30
Dec. 31
Mar. 31,1920,
June 30
137.2
112.4
158.6
134.8
186.1
125.2
7.4
10.8
17.9
29.3
45.9
34.8
Total..
854.4
146.1
As has been pointed out by practically all
investigators of the foreign exchange situation
since the war, the exchanges do not correctly
reflect the trade balances between countries,
but are greatly influenced hj domestic credit
expansion. Speculative buying of exchange
likewise has been so prevalent in London and
New York that certain exchanges have at
times been maintained at a level higher than
either the financial or trade position of the
country justified. When such has been the
case, however, the improvement caused by
fictitious demand has usually been of short
duration. With these facts in mind it may be
worth while to review the fluctuations of francs,
lire, and dollars in London. Pegging of the
French, British, and Italian exchanges ceased
toward the end of March, 1919. The pound
sterling began to depreciate almost at once in
the New York market, although various favorable factors partially supported it during the
spring of the year. The movement was downward, with occasional reactions, until February,
1920, when it reached its lowest value. It
began to improve following the announcement that the British would repay their share
of the Anglo-French loan and under the
influence of gold shipments from London.
The upward movement continued until July,
when another reaction set in, and since that
time the movement has been generally downward. Although the seasonal demand for
dollars had some influence in causing the reaction it was by no means entirely responsible
for it.
With the removal of Government control in
March, 1919, lire and francs depreciated in
terms of the pound and the dollar, and continued their downward course until May, 1920.
They improved again for two or three months
following the conference at Lympne and prospects of the payment of the indemnity, but
have been depreciating since then.
In view of the situation as disclosed by the
trade figures for France, Italy, and Belgium, it
has become increasingly important to London
that conditions on the Continent should improve. The financing which is being done for
other European countries in less favorable
circumstances makes the problem even more
difficult.
Foreign exchange rates,* London on-
Statist index number of wholesale prices (1913=100).
Date.
1913
1914
1915
1916
1917
1918
1919:
September
October
November
December
1920:
January
February
March.
April
May
June
July
August
September.
Vege- Ani- Sugar, Food-I- Min- Textable mal coffee,
foods. foods. tea. stuffs. erals. tiles.
j
i
100
Sun- Mate- New
dries. rials. York.
Paris.
StockBerlin. Buenos
Aires. holm.
Italy.
100
110
155
193
252
248
100
125
152
192
210
100
107
130
161
213
238
100
105
137
169
218
229
100
90
109
140
152
167
100
97
111
152
228
265
100
105
131
163
212
243
100 2 4.8665 25.2250 25.2250
98
I
119
153
198
225
258
260
266
270
208
226
226
228
328
322
332
336
245
253
258
260
206
222
226
234
287
305
325
334
278
284
292
296
257 4.1629 35.7287
270 4.1934 35.5900
280 4.1142 38. 2450
286 3. 8646 41.4566
274
297
345
346
351
359
343
317
319
. 230
237
237
265
244
244
278
295
291
356
415
393
392
473
496
425
404
334
265
286
300
315
318
325
325
319
308
256
267
263
263
273
269
276
281
283
343
362
360
354
308
308
298
298
286
312
329
318
321
311
282
277
278
279
302
318
312
311
298
285
283
285
282
1
Average of weekly quotations from London Times.
The English commodity price situation contrasts with the American in that, although in
many ways trade conditions are similar in the
two countries, price reduction has gone further
on this side of the Atlantic than in England.
According to the Statist index number, the decline from the peak of April amounts to 7 per
cent in England; the Board's index for the
United States shows a decline of 14 per cent
since May. Cable advices from England seem
to show, however, that price reductions have
been widespread there during October, so it is
possible that in industries where a deadlock
existed during earlier months concessions have
been made which will lead to lower prices and
more active trade. The coal strike intervening,
however, may lead to a retardation in the fall
of prices.
Price trends during September were largely
in the same direction as in August. Those industries which were most depressed and in
which prices appear to have been weakest are
cotton and wool. In the latter, free auction
1201
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
3. 6904
3.4612
3.6907
3.9J81
3. 8462
3.9421
3.8256
3. 6294
3.5053
42.9375
48. 2125
52.3375
63.2937
56. 7125
48.9200
47.0425
50.3375
52.3650
20.430
47.580
18.159
40. 8125
41. 6000
47. 7937
49. 6166
101.937
106.500
156. 375
183. 333
55.500
55.125
56. 750
61.110
17.050
17. 265
17. 676
17. 784
51. 2375
60.3812
70.4700
88.0000
76.3120
66.9550
66.1875
73. 6875
80.6190
239.375
327.750
304.100
239.500
183.870
154.700
150. 813
171.250
202.875
63. 390
69. 660
64.660
60.125
60.220
58.190
56. 700
57.310
57.773
17.804
18. 208
18.244
17.935
18.208
18.081
17.716
17.120
17.391
Calcutta.
24
2 Par.
sales have again been begun in Australia after
a period of five years of Government control.
Prices for certain grades of wool have declined
in England from 33 J to 50 per cent from the
high levels of last spring, and inactivity prevails
in many branches of the industry. Some sections of the fine wool trade are apparently still
working full capacity, reports from the west of
England stating that most of the firms in that
section have orders to occupy their mills for
from 4 to 12 months. The spinning and
weaving trade as a whole, however, reports
considerable inactivity. Conditions in the cotton trade7 are equally depressed, and the Cotton
Spinners Association has recommended a limitation in output, to be made effective by shorttime work on Saturday and Monday for a
month following October 23. Prices for Egyptian as well as American cotton have declined
radically from former high levels. The boot
and shoe industry is, on the whole, doing little,
although reports from some regions show a
certain amount of trading.
1202
FEDERAL RESERVE BULLETIN.
With the exception of sugar, coffee, and tea,
September food prices were not strikingly different from August pripes. Vegetable foods,
according to the Statist index, increased slightly
and animal foods declined. British sugar prices
are now at approximately world levels, having
declined from the somewhat higher levels of
last spring. Due to the fact that sugar had
been bought by the Government before the
boom in prices occurred, the exorbitant American level was never reached there.
As a result of the decline in the price of tea,
the Indian Tea Association is recommending
that the crop for next year be no greater than
90 per cent of the average crops 1915-1919
or as an alternative that proprietors cease
plucking on November 15, 1920. A scheme for
the restriction of rubber production is likewise
receiving the support of growers' associations
in London and the east.
Stocks of coal throughout England were reported reasonably ample at the time the strike
was called. Nevertheless, the Government
gave out orders for decreased personal consumption of coal, exports were prohibited, and
lighting restrictions which were effective during
the war were reestablished. No statistics are
available showing the extent of coal supplies
held by metal industries and the railroads.
On these depend the future activity in these
lines. A press report of October 19 states
that the iron and steel trades of the country
will be closed by the end of the week. On
October 17 another press report stated that the
NOVEMBER, 1920.
majority
of textile mills held less than two
weeks7 coal supply.
In striking contrast with the situation in the
United States, where tonnage under construction has been steadily decreasing, in the United
Kingdom there was an increase of 153,000 tons
in the shipping under construction between
June and September.
Foreign trade figures for September were
only reasonably favorable. Imports were
slightly less than for August and exports
slightly more. The trade balance was more
favorable than that of any month of the year
with the exception of July. Comparing exports for September, 1920, with those for the
same month last year, it is found that in spite
of the inactivity complained of by the textile
trades, exports of cotton yarns and manufactures were over twice as large in terms of
money this year as last. Exports of woolen
and worsted yarns and manufactures were
50 per cent greater, and an increase of almost
100 per cent had been made in the exports of
iron and steel and manufactures thereof during the same period. Exports of these three
groups of commodities and of rubber manufactures were more important in the September returns than were coal exports. The
value of the coal exported was £6,600,000 for
the month, the value of iron and steel, etc.,
£10,900,000; cotton yarns and manufactures, £37,900,000; woolen yarns, etc.,
£10,900,000, and rubber manufactures,
£7,800,000.
Production (metric tons).
Value of foreien trade.
Date.
Imports. | Exports.
000's.
13J,061
Monthly average, 1913.
1920.
January
February
March
April
May
June
July
August
September
183,498
170,514
176,648
ie7,154
166,816
170,491
163,312
153,255
152,692
1 Average of four quarterly estimates.
Five weeks in the month.
Reexports.
Coal.
£43,771
000's.
£9,131
000's.
24,336
105,880
85,964
103,699
106,252
119,319
116,352
137,452
114,903
117,456
25,464
22,604
27,031
20,407
20,200
20,124
17,848
13,368
13,351
2 22,057
19,435
19,505
17,131
2 22,131
19,048
2 22,926
16,970
18,885
000's.
Ship
tonnage
under
Steel ingots construcPig iron.
and
tion (gross
castings.
tons).
000's.
000's.
i 2,002, 699
676
656
710
655
738
726
750
752
766
811
854
779
848
745
800
709
3,394,425
3,578,000
' 3,'73 i,* 000
Figures following are estimates taken at the end of each quarter.
2
The index number of the cost of living compiled hj the ministry of labor increased three
points in September as compared with six
points in August. An increase in the price of
bread, resulting from the removal of the Government subsidy, occurred in October.
Trade union unemployment shows a rather
pronounced increase during the month of Sep-
tember, but even so does not give an accurate
picture of total labor unemployment, since it
covers only something over a million and a half
workers. It represents full-time unemployment only, whereas much idleness has been
caused in the textile and mining industries by
part-time employment. The miners7 strike
forced something like a million men out of work
NOVEMBER,
1203
FEDERAL RESERVE BULLETIN.
1920.
in the coal industry alone, and probably caused
a reduction in employment in many other lines
in which production had not already been curtailed. Three hundred forty-four thousand
men and women were registered with the employment exchanges of the labor ministry on
September 24.
Percent
Average of tradepercentunion
age in- members
crease m unemcost of
ployed
living, 1
(membase,
July,
1914.
.bership
1,636,012
at end of
September).
1920.
2 9
1.6
1.1
.9
1.1
1.2
1 4
1.6
2 2
125
130
130
132
141
150
152
155
161
164
January
February
March
April
May
June
July
August
S ept em b er
October
Just after the 1st of October, however, the
coal controller announced decreased prices for
metallurgical coke and some grades of coal.
This reduction was immediately followed by
the announcements of some of the most important iron and steel manufacturers in France
reducing prices of their products from 140 to
250 francs a ton. If price decreases are maintained in this basic industry they will ultimately have a very important effect upon
prices in general in France.
There was a distinct change in the position of
the Bank of France during September. Gold
holdings of the bank declined steadily throughout the month, and note circulation steadily
increased. The decline in the gold reserve,
representing a net decrease of 81,000,000
francs, was due to shipments to the United
States to meet the Anglo-French loan which
matured in October. Weekly figures on holdings of gold and on note circulation are as
follows:
Bank of France.
1
Food, rent, clothing, fuel, light, etc.
Figures applying to increase in cost of living are for the beginning of
the month and those for trade-union unemployment are for end of month.
[In millions of francs.]
Gold
FRANCE.
Note circulation.
2, 1920
j
3,612
38,333
Prices continued to fluctuate in France dur- Sept.
Sept. 9, 1920
3,592
38,622
ing September, but the general trend was again Sept.
16, 1920
3,542
38,666
Sept. 23, 1920
3,533
38,690
upward. Purchasers who had refused to buy Sept.
30,1920
3,531
39,208
during the summer were obliged to do so, and
they Found stocks lower than had been anticipated. This fact brought about more compeThe following table presents the financial sittition and higher prices, although there were uation of the Bank of France and the French
few markets where trading was really active. Government in 1920.
French financial situation.
[In francs.]
Bank of France.
Situation of the Government.
Advances
to the
Price of
Gold
Silver Deposits Circula- Govern- GovernPublic
ment
for ment 3
3 per cent
reserves reserves
tion
debt
revenue 000,000's)
perpetual
; 000,000's) 000,000's) (000,000's ; 000,000's) purposes
of the
000,000's)
rente.
war 2
(000,000's)
1913, average..
1920, end of—
3,343
4
4
4
January...
February.
March
April
May
June
July
August
September
3,602
3,603
3,606
4 3,608
4
3,609
4
3,610
4
3,611
4
3,612
4
3,531
1
5,665
255
251
247
244
240
241
248
255
255
3,172
3,277
4,039
3,469
3,751
3,653
3,416
3,267
3,307
37,583
37,889
37,569
37,688
37,915
37,544
37,696
37; 905
39,208
25,300
25,800
26,300
25,300
26,050
26,000
25,550
25,800
26,600
Includes Treasury and individual deposits.
23 Under the laws of Aug. 5 and Dec. 26, 1914, July 10, 1915, and Feb. 16, 1917.
From
indirect taxation and Government monopolies.
4
Not including about 1,978 million francs held abroad.
» As of Dec. 31, 1919.
' Foreign debt calculated at par.
320
35,000
86.773
885
794
859
1,057
857
908
1,109
882
1,120
206,616
58.75
57.60
58.82
57.40
59.35
57.25
58.90
56.30
54.15
233,729
1204
FEDEKAL RESEBVE BULLETIN.
As the table indicates, returns from indirect
taxation and Government monopolies were
smaller in August than in July, in spite of the
newly enacted taxes which went into effect
July 1st. The August returns were, however,
203,000,000 francs greater than the budget estimate for that month. Receipts for September
exceed those for August by 238,000,000 francs,
but they fall 322,000,000 francs below the budget estimate for September. This difference is
due to the fact that the new tax on total business turnover brought in only 292,791,000 francs
during September instead of the estimated
monthly yield of 700,000,000 francs. As this
tax has only been in force three months it
seems probable that receipts will increase when
it is fully understood and thoroughly enforced.
Receipts from the registration tax and from
some of the Government monopolies exceeded
expectations and partly made up for the small
returns from the tax on total business turnover.
The discussion of the 1921 budget is now
under way. The original estimates for 1921 expenditure total 50,000,000,000 francs, but the
finance minister, M. Francois Marsal, and the
rest of the cabinet are at work on a reduction
of the estimates. The French Parliament will
meet in the middle of November to vote upon
the budget.
Meanwhile subscriptions are being received
for the 1920 6 per cent internal loan, although
they are not regularly open until October 20.
The treasury offered to pay interest on subscriptions sent in after August 25 at the rate
of 5.75 per cent a year until November 30,
1920 (the date when subscriptions close). This
offer resulted, it is said, in the immediate payment of several billion francs to the treasury.
The offering of this latest issue of bonds at 6
per cent has depressed the price of 3 per cent
rentes (which are not convertible into the new
loan) during September, and they were quoted
as low as 53 francs 15 on the 28th of the month.
French exchange fluctuated slightly throughout September, with the general level on the
last Thursday of the month slightly less favorable to France than on the last Thursday of
the month previous.
From the point of view of the French consumer, the most serious of the price increases
which took place in France during September
were those of foodstuffs. Government control
of sugar was removed September 1, and prices
rose, although it was hoped that the price would
not continue excessive because of the large
beet-sugar crop this season. (The Government
still sells a limited amount of sugar at lower
prices for the use of aged persons, children, and
invalids.) The Government also transferred
part of the bread subsidy to the shoulders of
the public on September 1. There is a distinct
NOVEMBER,
1920.
shortage of meats in France this fall, and meat
prices are very high. The Government is
urging the people to reduce meat consumption
and is also arranging for a large importation of
frozen meats and for increased consumption of
fish. The sale of veal has been prohibited in
order to increase the beef supply next year.
By the middle of October the food situation in
France was becoming so serious that exports of
fish, milk, butter, cheese, and potatoes were
prohibited by cabinet order.
The following table shows the index numbers of the Statistique G6n6rale:
Group index numbers—France.
[Bulletin de la Statistique Generale.]
[1913=100.]
Date.
1913
1914
1915
.. .
1916
1917
.. .
1918
1919, end of—
September..
October
November.. .
December... .
1920:
January
.
February... .
March
April
Mav .
June . .
July
August
September.. .
Animal
food.
Raw
Sugar,
Vege- coffee,
Min- Tex- Sun- matetable and Foods
rials
dries.
(20).
erals.
tiles.
foods. cocoa.
(25).
100
103
126
162
215
286
100
103
126
170
243
298
100
106
151
164
201
231
100
104
131
167
225
281
100
98
164
232
271
283
100
109
132
180
303
460
100
99
145
199
302
420
100
101
145
206
291
387
387
402
424
432
308
337
351
380
264
268
271
278
334
353
369
375
279
295
323
357
476
554
620
649
402
403
415
419
381
405
435
454
452
484
500
522
480
482
501
515
531
432
474
516
511
480
400
370
359
412
419
436
439
429
424
392
405
399
544
440
474
498
506
472
434
432
432
487
413
444
460
498
459
428
469
475
468
787
828
884
953
841
734
746
737
715
465
503
548
587
601
517
500
524
540
525
561
600
646
614
540
548
558
558
All coal prices in France are still controlled
by the Government, and different rates are
charged to different classes of consumers.
Coal for domestic purposes is sold at the lowest
price, coal for central heating plants, small shops
and factories, and for hygienic or food services
at a somewhat higher price, and coal for other
purposes at higher rates still. The price paid
by French consumers for German coal and coke
is fixed by the Government. The purchaser
of French, Saar, or Belgian coal has to pay,
beside the original purchase price, a surtax to
the Government, which varies from 75 to 125
per cent of the price, according to the grade of
coal. The buyer of English or American coal,
of the other hand, receives a drawback on each
ton of the coal he purchases. The drawback
on English coal is 100 francs a ton, but that on
American coal has recently been increased to
150 francs. In this way the price paid for coal
from all sources is made as nearly equal as
possible. In the case of special industries,
however, the Government fixes coal prices at
slightly lower rates. The grapegrowers of
southern France who ferment their own wine
have just received such a reduction, and a
NOVEMBEE, 1920.
1205
FEDERAL RESERVE BULLETIN.
decree of the last of September decreases the livered by Germany to the allies and during
price of metallurgical coke from 245 francs a September 1,936,865 * tons. Of these amounts
ton to 175 francs. At the same time the price France received about 1,555,000 tons in
of "boulets" and of lignite briquettes was re- August, and about 1,478,000 1 tons in Septemduced for family use, and the price of all grades ber. In addition to the increased deliveries
of coal for use by central heating plants, small of coal from Germany, France is receiving
shops and factories, and hygiene and food more from her own mines. Reconstruction
services was decreased 60 francs a ton.
is proceeding satisfactorily in the departments
These reductions were possible because on of the Nord and Pas de Calais. The first
October 1, France was better supplied, with delivery of coal from one of the rebuilt pits in
coal than at any other time since the beginning Lens was made in September, and an output
of the war. At the July conference it was of from 30 to 40 tons a day is expected from it
agreed that Germany should deliver to the before long. It will probably take three or four
allies 2,000,000 tons of coal a month for the years, however, to bring the mines back to
ensuing six months. She is, according to the their prewar level of production.
terms of the Versailles Treaty, to be credited
M. Le Troquer, French Minister of Public
for this coal by the Reparations Commission Works, has recently announced that stocks
at the rate of the prevailing market price in of coal carried by the railroads have risen from
Germany. It was arranged at this conference, 180,000 tons in January to 800,000 tons in
however, that the allied countries were to September and that other stocks have inreceive the kinds and qualities of coal which creased proportionately.
they should specify, and in return were to pay
The most recent statistics on coal (not includa premium of 5 gold marks per ton of coal. ing coke or lignite) available in France follow:
This premium is invested in food for the
Coal available in France.
Tons.
German miners. The allies also declared their 1913, monthly average.
4, 541, 750
willingness to make advances to Germany 1920:
equal in amount to the difference between the
January
3, 991,486
February
3, 954,301
market price of coal in Germany and the exMarch
3, 781,544
port price of coal in German ports, or in EngApril
3, 603, 602
lish ports, whichever should be higher. If
May
3,352,177
the total deliveries from Germany to the allies
June
4,392, 217
for August, September, and October have not
July
4,238,132
August
4, 295,515
reached 6,000,000 tons by November 15, the
September 1-20
2,808,154
allies announced at this same conference that
Complete figures on French foreign trade
they would proceed to occupy the Ruhr, or
some other portion of German territory. This for September have not yet reached this
arrangement seems to have brought about the country. Cabled figures on total imports and
desired results. The Reparations Commission exports for the month show a slight decrease
announces that during August 1,975,000 tons as compared with the previous month.
of coal, coke, and lignite briquettes were de- \
i Subject to revision.
Foreign trade of France.1
[In thousands of francs.]
Imports.
Food.
Raw
materials.
Manufactured
articles.
Exports.
Total.
Food.
Raw
materials.
Manufactured
articles.
Parcels
post.
Total.
301,420
412,144 138,169
47,182
573,351
154,841
151,465
701,778
1913 average 32 . .
80,805 161,401
440,314
726,097
43,577
719,122 1,101,811 660,610 2,481,543
1919 average . .
1920:
35,204
722,398
538,365
985,410 478,408 2,002,183
415,007
84,561 187,626
January
58,866 1,323,829
653,630 1,336,987 651,299 2,641,916 150,060 347,480
767,423
February..
39,884 1,337,659
871,857 1,478,987 772,007 3,122,851 114,223 349,521
834,031
March
52,987 1,376,910
665,799 1,398,592 813,216 2,887,607 125,678 353,344
844,901
April
31,658 1,210,028
547,825 1,193,960 644,911 2,386,696 103,355 348,361
726,654
May 4
726,856
2,588,674
216,849
421,735
69,862 1,809,377
558,951 1,302,867
1,100,931
June
July 5
6
723,749
1,171,091 905,613 2,800,453 210,888 440,482 1,631,883 116,255 2,399,508
August ...
2,150,862
2,627,805
September.
1
Not including gold, silver, or the reexport trade.
»3 Calculated in 1913 value units.
Calculated in 1918 value units.
* January-June, 1920, figures are calculated in 1918 value units. French foreign trade figures are originally recorded in quantity units only,
and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly statements of trade appear computed at the rates of the year previous, and only at the end of the year is the trade evaluated at the prices prevailing
during that year. Because of the disturbed price conditions in France this year, however, it was not until July that the 1919 price units were decided
upon5 and applied.
Monthly French foreign trade figures are published only in cumulative form, and as the value rates used were changed in July it is impossible
to give
separate figures for that month.
6
Calculated in 1919 value units.
1206
GERMANY.
There is no index number by which price
fluctuations in Germany may be traced for
the period of the war or the period since the
armistice, nor has it been easy since 1914 to
find complete series of price quotations. There
is, however, some interesting material available on the prices which have been fixed by
the German Government since the beginning
of the war. The most valuable sources available on this subject are articles on "Laws
affecting the Economic Situation" by Johannes
Muller, and other articles in the Jahrbiicher
fur Nationalokonomie und Statistik, articles
in the Frankfurter Zeitung, and decrees published in the Reichsanzeiger. Unfortunately,
however, the files of these periodicals are incomplete for 1916 and 1917 and there are gaps
which it is impossible to fill.
Price fixing in Germany began with a law
of August 4, 1914, which authorized the
Government to fix maximum prices for articles of daily necessity, especially food and
fodder of all kinds, as well as for raw materials,
and materials for heat and light. Violators of
the price regulations were made subject to a
fine of 3,000 marks or to 6 months' imprisonment. (The penalties were later increased.)
Maximum prices were first set for the cereal
crops, then for other agricultural products,
and for metals. By the end of March, 1915,
maximum prices were fixed for wheat, oats,
rye, barley, bran, potatoes, sugar, wool and
wool products, ammonia, aluminum, aluminum
products, antimony, old bronze, copper, copper
products, old brass, brass products, nickel,
nickel products, bronze, and tin. Price regulations increased from that time on, and maximum prices were also fixed for butter and
margarine, oil seeds and vegetables (peas,
beans, lentils, cabbages, carrots, and so on),
for meats, flour, macaroni, marmalade, fats,
news print paper, matches, fertilizer, chemicals,
cement, coal, and iron and steel products.
The Government tried in all cases to fix
prices in relation to production costs. German writers on the subject, in criticizing
the system of maximum prices, say that in
some cases the set price was dictated from
Berlin without proper consultation with experts in the industry concerned. In theory,
however, the fixed price was based upon a
"just price" submitted by the producers of
the article in question. This "just price"
was calculated as follows: The cost of production (including purchase of raw materials,
management expenses, general charges, interest on capital, compensation for risk, and
wages of management) was subtracted from
NOVEMBER, 1 9 2 0 .
FEDERAL RESERVE BULLETIN.
the proposed price, and if the difference (the net
profit) did not exceed what was considered
lair and suitable profit in the business before
the war, the price was considered just. German business men have pointed out that
interest on capital invested, the compensation
for risk, and the wages of management are
very difficult to define. In the case of commodities where it seemed impractical to set a
maximum price, merchants were often required to prove their profits "just" before the
courts upon the basis just explained. The care
with which such prices were controlled is illustrated by a decree of January 25, 1917, which
states that charges for shoe repairing may only
be high enough to yield, in consideration of the
costs, a suitable profit, and that excessive
charges may be redressed by an appeal to the
courts.
Of the prices fixed by the Government,
those first and most thoroughly applied were
the prices for the cereal crops. On November
6, 1914, the Bundesrat fixed prices for oats for
32 different cities, the price for different regions
of the country to be that of the nearest city
of the 32. In December prices for wheat, rye,,
and barley were also fixed by the same method.
Prices for the region of Berlin have been as
follows:
Wholesale cereal prices—Germany.
[In marks per ton.]
[Region of Berlin.]
Government prices.
Aver-1
age, Dec.
1913.
Rye...
Wheat
Oats..
Barley
For the crops of—
24-31,
1914.
164 220
199 I 260
162 214
156 220
1915
1916
1917
1918
220
260
300
300
220
260
300
300
270
290
270
270
305
325
300
300
1919 1920 *
405
455
405
1,400
1,5401,350^
1,350
1 Statistisches Jahrbuch fur das Deutsche Reich.
2 Minimum price.
Prices for the 1920 crop were originally
fixed at 1,100 marks per ton for wheat, and at
1,000 marks for other grains, with the promise
that an index number for costs of production
should be calculated and prices revised, if
increased costs warranted it. The index
number was made, taking costs in January r
1920, as 100. It rose to 169.24 as of June 1,
and the Government accordingly fixed the
prices indicated in the above table.
Price regulations for agricultural products
were as a rule enforced b}^ a war committees"
appointed for the purpose. Prices for industrial products were sometimes regulated simply
by committees, but as the war progressed,,
manufacturers were often forced to unite in
associations regulated by " control committees" responsible to the Government. The
earliest of these associations were established
in the coal industry. In July, 1915, the
State authorities were authorized to unite in
associations the owners of hard or brown coal
mines, either according to districts or kinds
of coal produced. These associations regulated
the output of the mines and marketed their
product. Coal syndicates were formed for
the Rhenish-Westphalian district, for lower
Saxony, Saxony,
Silesia, and central and east
Germany. u Just selling prices" for coal were
decided at meetings of these associations, and
the Goverment fixed prices in accordance with
their recommendations. The trend of the "just
prices" of the Rhenish-Westphalian Syndicate
has been as follows:
Coal prices (Rhenish-Westphalian Syndicate1).
[In marks per ton.]
Bituminous coal (nut I and
II)
Coking coal
Anthracite (nut I)
Foundry coke
1
January,
1914.
April, 1918.
April, 1920.
14.25-15.00
12.25-13.00
20.50-22.00
15.00-17.00
27.60-29.40
25.50-27.30
35.40-37.20
32.40-34. 80
230.90-232.70
196.10-198.70
254.60-277.30
278.60-280.20
Frankfurter Zeitung and Deutscher Reichsanzeiger.
The completeness with which "essential"
industries were regulated is illustrated by the
forced associations in the shoe industry. In
March, 1917, the Imperial Chancellor was
authorized to unite manufacturers of every
kind of shoe material in associations (with or
without their consent). for the purpose of
regulating the manufacture and sale of shoes,
according to the raw materials available and
the needs of the people. A decree of March 24,
1917, established 11 of these associations and
appointed a "control committee" for the purpose of giving detailed instructions as to
production, sale, and selling prices. This
committee was required to divide the available
raw materials among the members of the association and adjust the apportionment of army
and navy contracts. It could also demand
that one member of the association give up
stocks of raw materials, half-manufactured
products, and finished products, as well as
machinery, to another member. If necessary,
it could confiscate property. In July, 1917,
the chancellor was authorized to unite retail
dealers in new shoes of all kinds into associations for the purpose of apportioning the
stocks placed at their disposal by the "Shoe
Manufacturing and Selling Association." The
1207
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
members of this second association were required to take, pay for, and sell the stocks
allotted to them according to the directions of
the "main apportionment committee."
The effect of such forced associations upon
German industry will not soon disappear.
The Government has been authorized to
"socialize" both the coal and potash industries. In the iron and steel industry the
"Steel Works Union" has been succeeded by
the "Eisenwirtschaftsbund," which is to regulate the production and marketing of iron and
steel products through a committee consisting of
22 representatives of the producers (both the
employers and employees), 8 of trade, and 14
of the consumers. In case the committee can
not come to an agreement on any question, the
Minister of Industry may decide the matter.
Government control of agricultural products
is gradually being relaxed because of the
urgent demands of the public. It is hard to
say whether
it ever was very successful. A
writer 1 in the Jahrbiicher fur Nationalokonomie and Statistik for 1918 says that an official
estimate placed the number of dealers who
systematically violated price regulations at
500,000. "Can you wonder at it," says he,
"when you remember that the official price of
butter is 2.50 marks per pound, and that 15
to 18 marks are paid in the contraband trade V
As near as can be determined here, the following
are the commodities which have already been
released from control: Vegetables (except potatoes), fruits, coffee and tea, meats, margarine,
fats, edible oils, fodder, nonferrous metals,
leather, textiles (except linen and artificial silk).
The control of bread, sugar, milk, and home-produced cheese will continue through the winter.
JAPAN.2
According to reports from Yokohama, the
silk market was remarkably firm during the
first three weeks of September, and stocks of
raw silk were increasing. The general attitude
of dealers was still, however, one of uncertainty.
The improvement is due to the organization
by representative dealers in raw silk of the
Imperial Raw Silk Corporation. The new
company has a capital of 50,000,000 yen, and
its purpose is to facilitate the financing of
exports of raw silk. In order to assist in the
recovery of the silk industry the Japanese Government has agreed to make loans from its
Savings Bank Department through the Industrial Bank to the Raw Silk Corporation.
12 Jahrbiicher fur National okonomie, 1918, vol. 55, p. 311.
The September BULLETIN contained a statement to the effect that
the July excess of exports over imports amounted to 3,000,000 yen. This
was an error due to a mistake in the cable. The trade figures for the
month of July were: Imports, 157,000,000 yen; exports, 154,000,000 yen.
1208
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
These loans are not to exceed 50,000,000 yen,
and will run for a period of two years. Interest is to be paid at the rate of 5.6 per cent per
annum (5 per cent to the Savings Bank Department, and 0.6 per cent as the commission of
the Industrial Bank). As this rate is very low,
considering the present state of the market, silk
dealers feel that the arrangement is a favorable
one.
The following quotations for Yokohama raw
silk spot (for 100 kin) will be helpful in indicating the condition of the raw silk market.
From January through July, 1920, the value
of Japanese exports was less than that of
imports into Japan. From May on, however,
this "unfavorable" balance steadily decreased,
and in August exports exceeded imports by
almost 52,000,000 yen. The September balance was also " favorable/' the excess of exports being 36,000,000 yen. The monthly
trade figures are shown in the following table:
[000 omitted.]
Exports.
Month.
Yokohama raw silk spot.
Date of cable.
....
Aug. 2
Aug. 16
Sept. 2
Sept. 16
Oct. 2
Oct. 18
Oct. 23
Yen.
1,100
1, 260
1,130
1,180
1, 500
1,500
1,500
1920.
Yen.
176,347
174,288
193,134
218,792
192,918
183,407
154,320
174,487
154,000
January
February...
March
April
May
June
July
August
September..
Excess of
Imports. imports (—)
or exports
(+)
Yen.
204,701
270,630
328,500
296,520
293,533
218,317
156,658
122,645
118,000
Yen.
- 28,354
- 96,342
-135,366
- 77,728
-100,615
- 34,910
2,338
+ 51,842
+ 36,000
Cotton yarns are still weak. The price
dropped steadily from the middle of September
to the middle of October, but recently cabled
Detailed figures in regard to Japanese forfigures for Osaka cotton yarn futures indicate eign trade for August which are now available
slight improvement.
show that the increased exports of that month
were largely caused by exports of cotton goods,
Osaka cotton yarn futures (bale of 400 pounds).
for which the ministry of agriculture and commerce is now issuing permits. Cotton-yarn
Date of cable.
Yen.
Sept. 16
284. 90 exports in August were valued at 20,970,000
Sept. 24
264.00 yen and cotton cloth at 31,800,000 yen. The
Oct. 2
242. 50 total value of raw silk exported in August
Oct. 8
232. 40
reached 33,700,000 yen, as against 72,040,000
Oct. 18
241.00
Oct. 23
267. 90 yen for the same month last year.
Group index numbers—Australian Commonwealth—Bureau of Census and Statistics.
[July, 1914=100.]
Textiles,
leather,
etc.
Agricultural
products.
Dairy
products.
Groceries
and
tobacco.
100
117
154
213
220
100
93
131
207
232
100
202
113
110
135
100
127
124
116
121
100
110
127
131
138
100
150
155
155
147
100
116
136
194
245
100
149
172
243
315
182
186
184
186
225
243
254
259
200
236
238
224
138
141
142
142
149
152
151
156
152
154
132
132
259
271
278
281
263
272
267
266
189
192
205
205
214
214
211
209
211
273
283
281
277
265
260
252
251
222
227
226
226
234
252
261
244
238
231
143
149
162
169
177
187
188
189
209
156
161
160
192
197
195
193
193
196
147
149
126
160
170
208
261
284
273
282
287
298
298
307
307
307
312
295
268
272
280
280
297
297
283
282
276
Metals and
coal.
Date.
July, 1914
1915
1916
1917
. .
1918
1919.
September
October...
November
December . .
. .
. . .
.
. .
1920.
January
February
March . . .
April
Mav
June
July
A ugust
September . .
(
Meat.
Building
materials.
Chemicals.
NOVEMBER, 1920.
1209
FEDERAL RESERVE BULLETIN.
Group index numbers—Canadian Department of Labor?
[1913=100.]
Grains
and
fodder.
Date.
Fruits
and
vegetables.
Animals
Dairy
and
meats. products.
•
1913.
1914
1915
1916
1917
1918.
1919.
September.
October
November
December
January
February
March
April
May
June
July .
August
September
Textiles.
Hides,
leather,
etc.
100
96
100
107
100
100
100
99
100
104
100
102
100
105
136
142
206
231
104
121
161
197
105
119
149
168
93
130
233
214
121
136
180
213
114
148
201
273
110
143
168
169
232
201
193
195
232
240
251
283
256
204
221
230
178
240
240
227
180
176
182
228
230
232
290
298
306
252
252
231
269
275
280
291
301
302
292
271
254
195
195
198
200
207
206
211
204
202
228
216
206
196
189
183
194
198
211
265
290
295
316
358
338
295
142
190
245
251
254
264
275
274
283
277
261
316
321
322
366
323
314
305
300
296
237
245
222
239
215
186
183
173
169
191
199
210
214
213
207
209
209
207
1
Imple- Building: Fuel and
ments. materials,
lumber. lighting.
Metals.
100
114
. . .
1920.
Other
foods.
Drugs
and
chemicals.
100
100
100
94
128
167
217
229
106
128
174
213
97
100
118
147
92
113
163
188
160
222
236
250
171
231
183
200
165
171
181
225
232
232
188
194
224
201
201
209
197
198
181
235
231
237
237
237
238
242
243
259
232
243
268
268
294
295
282
285
273
212
215
215
245
257
279
294
298
296
100
101
100
106
189
190
189
194
201
203
206
218
218
217
Unimportant groups omitted.
Group index numbers—Calcutta, India, Department of Statistics.
[End of July, 1914=100.]
Date.
End of July, 1914.
August, 1918
September, 1918..
September, 1919..
1920.
January
February
March
April
May
June
July
August
September
Build- ManuJute
Hides Cotton
facing
manu- Raw manuand
mate- tured Metals. skins.
facfacrials. articles.
tures. cotton. tures.
100
118
118
127
114
128
131
139
142
158
100
225
217
218
201
215
233
235
235
237
100
317
314
214
100
83
75
156
100
226
215
222
219
248
244
249
257
245
253
233
211
209
160
116
100
99
105
356
364
351
357
365
364
364
360
347
1
Other I
Raw Oil Tea. Sugar. Pulses. Cereals. Other
tex- | Oils, jute.
seeds.
foo^s.
tiles.
100
240
217
215
100
328
331
199
100
240
217
215
100
214
185
179
158
135
144
132
139
154
181
164
150
170
142
147
151
163
163
153
158
159
161
164
164
168
168
164
159
155
135
116
123
119
119
115
115
100
105
131
125
123
118
119
120
83
89
91
105
100
96
116
200
190
166
163
169
171
169
167
179
100
100
95
93
109
100
179
292
377
363
321
377
511
482
503
477
456
207
191
160
159
150
149
159
160
170
100
100
1119
1134
1177
167
158
151
156
157
156
151
154
154
204
199
192
185
183
180
188
185
186
Includes pulses.
Group index numbers—Sweden, Svensh Handelstidning.
[1913=100.]
Date.
Vegetable
food.
Animal
food.
Raw materials for
agriculture.
Coal.
Metals.
Building
material.
Paper
pulp.
Hides and
leather.
Textiles.
100
103
116
166
247
100
111
120
149
212
308
328
350
170
204
204
353
380
380
368
374
368
336
328
310
204
226
275
275
275
303
303
322
340
1913-14
1914 i
1915
1916
1917
1918
100
136
151
152
181
221
100
101
140
182
205
419
100
114
161
180
198
304
100
123
177
266
551
856
100
109
166
272
405
398
100
104
118
165
215
275
116
233
267
300
100
118
158
229
206
195
1919.
September...
October
November...
December...
255
230
230
241
386
360
361
362
323
323
317
319
893
893
840
213
213
225
237
282
281
280
294
292
316
343
235
223
228
258
1920.
January
February—
March
April
May
June
July
August
September..
248
273
270
265
269
250
252
271
273
328
305
304
284
283
273
277
307
312
317
319
318
320
320
311
312
310
864
936
960
1,008
1,069
1,252
1,252
1,117
1,085
248
259
291
283
324
318
293
286
273
295
371
367
367
367
381
388
388
388
476
682
767
788
778
767
756
753
258
269
268
263
252
212
202
191
180
1
Average for six months ending Dec. 31,1914.
100
!
j
I
!
Oils.
1210
FEDERAL RESERVE BULLETIN.
NOVEMBER,
1920;
Group index numbers—Italy.
Prof. Bachi.
Cereals
and
meats.
1913
1914
1915
1916
1917
1918
..
.
100
102
132
156
215
315
Other
foodstuffs.
100
84
93
135
171
229
Textiles.
Minerals
and
metals.
100
96
113
184
326
475
100
100
207
380
596
75C
319
326
328
338
357
366
371
373
429
499
633
658
Cereals
and
meats.
Other
goods.
100
96
133
197
266
391
1919.
September
October
November
December
[1913=100.]
442
459
568
584
342
341
351
405
Other
foodstuffs.
Textiles.
Minerals
and
mgtals.
Ill
840
962
1,064
840
742
759
794
837
671
857
996
1,076
i,088
917
903
957
1,040
Other
goods.
1920.
January
February
March
April
May
June
.
July
August
September
...
396
399
418
494
499
511
508
510
520
363
365
381
395
441
445
434
445
459
418
443
48£
535
525
534
542
540
541
m
Group index numbers— United States, Bureau of Labor Statistics.
[1913=100.]
Date.
1913
1914
1915
1916
1917
1918
September
October
November
December
January
February
March
April
May
June
July
August
September
Cloths and
clothing.
Metals and
metal
products.
Lumber
and
building
material.
House
Chemicals
and drugs. furnishing
goods.
Miscellaneous.
100
98
99
123
181
240
100
96
92
114
175
163
100
88
94
142
208
181
100
98
94
100
124
152
100
101
109
157
198
221
100
99
99
115
145
195
100
98
99
117
153
192
306
313
325
335
181
181
179
181
160
161
164
169
229
231
236
253
173
174
176
179
262
264
299
303
217
220
220
220
350
356
355
353
347
335
317
300
278
184
187
192
213
235
246
252
267
284
177
189
192
195
193
190
191
193
192
268
300
325
341
341
337
333
328
318
189
197
205
212
215
218
217
216
222
324
329
329
331
339
362
362
363
371
227
227
230
238
246
247
243
240
239
1919.
1920.
WHOLESALE PRICES IN THE UNITED
STATES.
Extent of the price decline.—The
Board's
index number of wholesale prices declined less
rapidly in September than in August. Prices
as a whole were 150 per cent above the 1913
level during July, 134 per cent in August, and
126 per cent in September. The total decline
from the peak of May, 1920, amounts to 14 per
cent.
Decline in imported goods.—Prices of imported
goods continue to decline more rapidly than
those of exported
goods. Among the imports,
producers7 goods felt the decline more than raw
materials. This was probably due in large
measure to the rapid fall in sugar and rubber
prices. Although certain grades of silk continued to decline, some quotations showed an
advance over August prices. In the same
way, quotations for Australian wools showed a
Fuel and
lighting.
considerable decline from those of the preceding month, but the South American grade used
in making the index number was quoted at the
same figure as for the preceding month. Foreign hides continued to decline, as did coffee,
tea, and pig tin.
Export prices.—The accompanying chart
shows clearly that the fall in the prices of
goods which are exported is proceeding considerably more rapidly than the fall in the
general domestic price level. Both in the upward swing of prices from April, 1919, to May,
1920, and in" the downward swing since then,
prices of export goods have fluctuated in
advance of prices of home produced goods and
of the all-commodities index. This seems to
indicate the important influence of our export
trade upon the general price level.
Amo.ng goods exported the greatest declines
occurred in raw materials. Cotton is the most
important commodity in the index, and with
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
the decline in the price of upland middling at
New Orleans from $0.3456 per pound in August
to $0.2875 in September, the index number as a
whole was lowered. Other important exports
to show weakness were wheat, lumber, and
copper. Coal and pig iron advanced, and
petroleum was unchanged in price.
Producers' goods do not figure as largely in
our export trade as raw materials or consumers'
goods, and the price movement during September was not particularly noteworthy. Gasoline and cottonseed oil advanced; fuel oil,
steel products (an average of four important
heavy steel products), and copper wire declined slightly, and leather somewhat more
heavily.
Finished consumable goods which we export
did not decline in price, but instead showed a
small increase. In this index wheat flour,
lard, and kerosene, all of first-rate importance
in our foreign trade, advanced in price. Other
commodities, such as pork products, cotton
fabrics, and shoes, declined.
Difference in index numbers, Federal Reserve
Board and Bureau of Labor Statistics.—Ac-
cording to the Board's index, as well as the
index of the Bureau of Labor Statistics, prices
of consumers' and producers' goods are declining more rapidly than raw materials. The
two indexes disagree somewhat as to the actual
price level, the Board's index registering 226
for September, on the basis of 1913 prices =
100, while the Bureau of Labor Statistics registers 242. This difference may be due in part
to the difference in the size of the two indexes,
and also to the difference in methods of weighting them. A large index, such as that of the
Department of Labor, is apt not to be so sensitive to fluctuations in prices as a smaller one.
Although larger, the index of the Bureau of
Labor Statistics reached a level in the spring
some 10 points higher than that reached by the
Board's index. Certain commodities are given
somewhat different weights in the two index
numbers, and where this has occurred in the
case of commodities whose prices have been
abnormal, it has made for a difference in the
two index numbers.
Consumers'
goods decline more than
raw
materials.—Consumers' goods are leading the
downward turn in prices, according to the
Board's index. Raw materials as a whole
1211
have declined less. This is because, in spite of
declining prices in the agricultural field, prices
of coal, pig iron, and oil have continued at old
levels or are higher. Among consumers' goods
practically all commodities, including food
products, textile fabrics, and shoes, have receded in price.
During recent weeks the tendency in the
steel industry has been to make price recessions.
Decline in demand from the automobile
industry gave the first impetus to the movement, but since then reductions in the demand
from the building and shipping trades and from
the railroads have caused weakening in the
markets for heavy steel. The independent
mills have made the concessions, as their prices
were considerably higher than those of the
United States Steel Corporation. Premium
prices have disappeared along with abnormal
demand. Prices of lighter steel products continue to be sustained.
With regard to coal prices the Federal
Reserve Agent in Philadelphia reports that
" prices are still high but have eased off" during recent weeks. Export demand continues
heavy, but it is too early to judge of the effect
of the British coal strike upon prices here.
Reports from oil districts show that prices
are unchanged, although the Federal Reserve
Agent at Dallas states that buyers of crude oil
are showing an unwillingness to pay premiums. Posted prices are firm. As yet there
is no evidence of the influence of the decline in
automobile demand upon gasoline prices.
Agricultural prices.—Important agricultural
products have almost uniformly declined during recent weeks. This statement applies to
live stock as well as to cereals, although cattle
and hog prices have not been so much affected
as lamb prices.
Textiles and leather.—Prices continue to decline in the cotton, wool, and leather markets.
The Boston Federal Reserve Agent reports
wool prices during the current month more
depressed than a month previous. The cotton
crop in the Eleventh Federal Reserve District
has suffered a 40 per cent depreciation in
market value between seed time and harvest,
according to the agent in Dallas. Sole and
upper leather are both quoted at lower figures
for October than for September and demand
has not improved.
1212
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Index numbers of wholesale 'prices in United States—Federal Reserve Board.
[Average prices 1913=100.)
Date.
Goods pro- Imported. Exported. Consumed. R a w mate- Producers' Consumers'
rials.
goods.
goods.
duced.
-I-
1913.
January
February
March
April
May
June
July
August
September
October
November
December
100
100
100
101
100
100
100
100
101
101
105
104
103
101
100
101
100
100
100
99
99
99
100
99
99
102
103
102
99
100
101
101
101
100
100
100
101
101
100
98
97
100
99
100
101
100
100
98
101
102
102
100
98
105
105
105
103
102
101
101
100
98
96
95
91
101
102
101
101
101
101
99
100
100
101
101
100
100
100
101
101
100
99
97
200
192
194
194
211
214
224
219
212
226
242
245
195
190
191
196
201
202
211
218
212
211
217
225
195
190
196
201
209
208
217
217
211
213
220
229
192
191
185
181
184
192
200
206
203
207
213
223
196
188
188
197
202
202
211
224
216
214
219
225
195
189
191
196
202
203
211
218
211
212
219
226
255
252
256
264
262
256
248
229
211
240
242
247
263
264
257
249
234
227
245
242
246
263
263
258
249
237
233
236
247
263
274
274
265
251
235
225
240
240
241
257
261
255
250
229
218
242
242
248
263
264
258
250
234
226
1919.
January
February
March
April
May
June
July
August
September
October
November
December
197
191
193
198
204
204
214
221
215
215
222
231
168
168
163
165
172
180
176
174
170
174
179
203
244
244
250
265
266
260
253
238
231
212
216
218
242
246
226
208
182
164
I
I
|
j
!
I
|
i
i
All.
99
1920.
January
February
March
April
May
June
July
August
September
INDEX NUMBERS OFWHOLESALEPRICES
INTHE UNITED STATES- J919.I9Z0
inDEXMMBERSOFHMOLBSALtPRICES
INTlfE UttlTED STATES -1919,1920.
—
fllL CommadUies.
Goods imparted'.
• Goodsexported*
AVERAGE PRICE LEVEL 0F!9i3=I00.
producers'Goods.
'••• Cbnsumers'Goodg.
AVERAGE
PRICE LEVEL OF 1913 =? 100.
1—: 1
1
1
1
1
\3OO
300
230
280
Z80
280
260
260
260
260
240
240
240
240
220
220
220
220
200
200
200
200
ISO
ISO
180
300\
300
ISO
y
160
160
160
160
140
I4O
I4O
140
120
120
120
120
IOO
IOO
IOO
IOO
1913
1920
1_
1919
•1920
1213
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Index numbers of wholesale prices in the United States for principal classes of commodities.
[Bureau of Labor Statistics.!
[Average price for 1913= 100.]
Raw materials.
Year and month.
Farm
products.
July, 1914
September, 1914
September, 1915
September, 1916
September, 1917
September, 1918
September, 1919
January, 1920...
February, 1920..
March, 1920
April, 1920
May, 1920
June, 1920
July, 1920
August, 1920....
September, 1920
Animal
products.
102
104
101
138
216
256
240
291
278
288
304
314
301
287
259
232
Forest
products.
Mineral
products.
97
96
92
95
129
143
227
273
315
348
367
367
363
359
351
344
106
110
104
125
195
220
215
213
206
200
196
179
186
184
181
186
In order to give a more concrete illustration of actual
price movements, there are also presented in the following
table monthly actual and relative figures for certain commodities of a basic character, covering the period January,
All commodities
Producers' Consumers1 (Bureau of
Labor Stagoods.
Total raw
tistics index
materials.
number).
91
92
97
121
171
183
184
190
194
197
224
234
245
250
258
270
101
99
122
182
206
216
239
240
247
260
260
261
258
251
247
103
108
99
129
175
213
226
259
256
263
280
285
279
272
250
240
101
99
143
201
201 j
212 |
245 |
246 I
246
263
271
262
251
238
224
j
!
i
j
100
104
99
128
183
207
221
248
248
253
265
272
268
263
250
242
1920, to September, 1920, compared with like figures for
August of previous years. 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.
Year and month.
July, 1914
September, 1914.
September, 1915
September, 1916
September, 1917
September, 1918
September, 1919
January, 1920...
February, 1920..
March, 1920
April, 1920
May, 1920
June, 1920
July, 1920
August, 1920....
September, 1920
Average
price per
bushel.
Relative
price.
Average
price per
pound.
SO. 7044
.7748
.7269
.8522
2.0613
1. 5313
1.5410
1.4750
1.4125
1.5515
1. 6913
1.9825
1. 8390
1. 5388
1. 5310
1.2938
114
126
118
138
335
249
250
240
229
252
275
322
299
250
249
210
$0.1331
.0838
.1053
.1532
.2160
.3578
.3078
.4035
. 3944
.4060
.4144
.4038
.4030
.3950
.3380
.2706
Hogs, light,
Chicago.
Year and month.
July, 1914
September, 1914
September, 1915
September, 1916
September, 1917
September, 1918
September, 1919
January, 1920
February, 1920
March, 1920
April, 1920
May,1920
June, 1920
July,1920
August, 1920
September, 1920
Wheat, No. 1,
Cotton, middling, northern
spring,
New Orleans.
Minneapolis.
Average
price per
100
pounds.
$8.7563
9.0188
7.7000
10.7750
18.4250
20.0700
18.2100
15.1250
14.9813
15. 5000
15. 7125
14. 7550
15.3500
15. 8875
15. 7350
17.0688
Relative
price.
104
107
91
127
218
237
215
179
177
183
186
175
182
188
186
202
Relative
price.
105
66
83
121
170
282
242
318
311
320
326
318
317
311
266
213
Wool, Ohio, 1-f
grades, scoured.
Ayerage
price per
pound.
$0.4444
.4583
.5714
.6857
1.3714
1.4365
1.2182
1.2364
1.2364
1.2364
1.2000
1.1636
1.0000
.9091
.8727
.8364
Relative
price.
Average
price per
bushel.
$0. 8971
1.1364
.9811
1.6080
2.2213
2.2169
2. 5350
2. 9313
2. 6875
2.7550
3.0063
3.0750
2.9000
2.8313
2. 5500
2. 4903
Relative
price.
103
130
112
184
254
254
290
336
308
315
344
352
332
324
292
285
Hemlock, New
York.
Ayerage
price per
M feet.
94 $24.5000
97 24.2500
121 20. 5000
146 23.7500
291 30. 5000
305
259 43.0000
263 53.0000
263 57.0000
263 57.0000
255 57. 0000
247 57. 0000
212 57.0000
193 57.0000
185 57.0000
178 57.0000
Relative
price.
Wheat, No. 2,
red winter,
Chicago.
Average
price per
bushel.
$0. 8210
1.1069
1.0760
1. 5344
2.1775
2.2363
2.2385
2. 6338
2.4900
2.5000
2.7725
2.9750
2. 8950
2. 8050
2.4735
2. 4919
Relative
price.
112
109
156
221
227
227
267
252
253
281
302
294
284
251
253
Yellow pine,
flooring,
New York.
Ayerage
price per
M feet.
101 $42.0000
100 42.0000
85 38. 5000
98 38.0000
126 57.0000
63.0000
177 95.0000
219 112.0000
235 139.0000
235 139.0000
235 160. 0000
235 160.0000
235 160.0000
235 160.0000
235 157.0000
235 157.0000
Relative
price.
94
94
86
85
128
141
213
251
312
312
359
359
359
359
352
352
Cattle, steers, | Hides, packers,
good to choice,
heavy native
Chicago.
steers, Chicago.
Ayerage
price per
pounds.
$9.2188
9. 7313
8.9500
9. 8000
14.9875
18. 4100
16. 8050
15.9375
14.9688 i
14.4000
13.9063
12.6000
15.0313
15.3813 !
15.3500
15.2500
Relative
price.
108
114
105
115
176
216
198
187
176
169
163
148
177
181
180
179
Average
price per
pound
S
!
j
i
|
I
i
|
$0.1938
.2100
.2650
.2600
.3300
.3000
.4638
.4000
.4025
.3640
.3613
.3538
.3410
.2944
.2850
.2840
Relative
price.
105
114
144
141
179
163
252
218
219
198
196
192
185
160
155
154
Coal, anthracite, Coal, bituminous,
stove, New York,
run of mine,
tidewater.
Cincinnati.
Ayerage
price per
long ton.
$4.9726
5.1794
5.1529
5.6625
6.1303
6.9000
8.4020
8.4291
8.4118
8.4109
8. 4368
8.9964
9.3672
9.4580
9.6087
10.4363
Relative
price.
102
102
112
121
136
166
167
166
166
167
178
185
187
190
206
Ayerage
price per
short
ton.
$2.2000
2.2000
2.?000
2.5000
3.3000
4.1000
4.5000
4.1000
4.1000
4.1000
5.5000
6.0000
6.0000
6.0000
6.0000
7.1000
Relative
price.
100'
100
10O
114
150
186
205
186
186
186
250
273
273
273
273
323
1214
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Average monthly wholesale prices of commodities-—Continuec
Coal, Pocahontas, Norfolk.
Coke, Connellsville.
Copper, ingot,
electrolytic,
New York.
Lead, pig,
desilverized,
New York.
Petroleum, crude,
Pennsylvania,
at wells.
Pig iron basic.
Year and month.
Average
price per
long ton.
J u l y 1914
September 1914
September 1915
S e p t e m b e r 1916
S e p t e m b e r , 1917
S e p t e m b e r 1918
September 1919
J a n u a r y 1920
February 1920
March, 1920
April 1920
May, 1920
J u n e , 1920
J u l y , 1920
August 1920
September, 1920
. . .
.
- -
.
.
--
Rela- Average
price per
tive
price. short ton.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
barrel.
Relative
price.
Average
price per
long ton.
$1.8750
1.7250
1.6750
2.7500
11.7500
6.0000
4.5920
6.0000
6.0000
6.0000
10.5000
12.0000
14.3000
14.3750
15.5500
15.3125
77
71
69
113
482
246
188
246
246
246
430
492
586
589
637
628
$0.1340
.1238
. 1775
.2775
.2525
.2600
.2220
.1931
.1906
.1858
.1919
.1906
.1900
.1900
.1900
.1869
85
79
113
176
161
165
141
123
121
118
122
121
121
121
121
119
$0.0390
.0388
.0490
.0650
1.0380
.0805
.0609
.0872
.0881
.0923
.0896
.0856
.0848
.0860
.0898
.0816
89
88
111
148
236
183
138
198
200
210
204
195
193
195
204
185
$1.7500
1.4500
1.6000
2.3000
3.5000
4.0000
4.2500
5.0625
5.5125
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
6.1000
71
59
65
94
143
163
173
207
225
249
249
249
249
249
249
249
$13.0000
13.0000
14.7500
18.3100
42.7500
32.0000
25.7500
37.7500
42.2500
41.6000
42.5000
43.2500
44.0000
45.7500
48.1000
48.5000
$3.0000
3.0000
2.S500
4.0000
3.9080
4.6320
100
100
95
133
130
154
4. 6320
4.6320
4.6320
6.4800
6.4800
6.4800
6.4800
6.4800
7.2800
154
154
154
216
216
216
216
216
243
Cotton yarns,
northern cones,
10/1.
A
Steel billets,
Bessemer,
Pittsburgh.
Steel plates,
tank, Pittsburgh.
Steel rails,
open hearth,
Pittsburgh.
Relative
price.
88
88
100
125
291
218
175
255
287
283
289
294
299
311
327
330
Worsted yarns,
2-32's crossbred.
Year and month.
J u l y 1914
September 1914
September 1915
September, 1916
September' 1917
September 1918
•September' 1919
J a n u a r y , 1920
Februa*rv 1920
March 1920
April, 1920
Mav 1920
J u n e , 1920 .
J u l v 1920
August, 1920September, 1920
.
....
Average
price per
pound.
Relative
price.
$0.2150
.1700
.1700
.2750
.4200
.6100
.5903
.7271
. 7465
.7549
.7784
.7672
.7299
.7009
.6310
.5429
97
77
77
124
190
276
267
329
337
341
352
347
330
317
285
245
Beef, carcass,
good native
steers, Chicago.
Average Relaprice per tive
pound. price.
Average
price per
long ton.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
long ton.
Relative
price.
$0.3050
108
.3100
.3700
.4800
.4900
.5700
.5600
.5700
.5700
.5700
.5700
.5700
.5700
.5500
.5100
110
131
170
174
202
199
202
202
202
202
202
202
195
181
$19.0000
21.0000
24.1000
45.0000
66.2500
47.5000
38.5000
48.0000
55.2500
60.0000
60.0000
60.0000
60.0000
62.5000
61.0000
58.7500
74
81
93
174
257
184
149
186
214
233
233
233
233
242
237
228
$0.0113
.0120
.0135
.0350
.0800
.0325
.0253
.0274
.0350
.0365
.0375
.0375
.0355
.0338
.0325
.0325
76
81
91
236
541
220
171
185
236
247
253
253
240
228
220
220
$30.0000
30 0000
30.0000
35.0000
40.0000
57.0000
47.0000
50.7500
54.5000
54.5000
54.5000
54.5000
54.5000
54.5000
54.5000
54.5000
100
100
100
117
133
190
157
169
182
182
182
182
182
182
182
182
Coffee, Rio, No. 7.
Year and month.
July, 1914 .
September, 1914
September, 1915
September^ 1916
September, 1917
September, 1918
September 1919
January, 1920.
February, 1920
March, 1920
April, 1920
May, 1920
June, 1920
July, 1920
August 1920
.September, 1920.
.
- .
. .
Flour, wheat,
standard patents
(1918, standard
war),
Minneapolis.
Average Relative
price per
pound.
price.
$0.6500
6600
.8500
1.2000
1.7000
2.1500
1.7500
2.2500
2.2500
2.2000
2.2000
2.0000
2.0000
1.7500
1.7500
1.6000
84
85
119
154
219
277
225
290
290
283
283
258
258
225
225
206
Hams, smoked,
Chicago.
Illuminating oil,
150°firetest,
New York.
Sugar, granulated,
New York.
Average Relaprice per
tive
gallon.
price.
Average Relaprice per tive
pound.
price.
Average
price per
pound.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
barrel.
Relative
price.
Average
price per
pound.
Relative
price.
$0.1350
.1438
.1350
.1375
.1900
.2450
.2275
.2320
.2125
.2050
.2090
.1950
.2225
.2550
.2550
.2600
104
111
104
106
147
189
176
179
164
158
161
151
172
197
197
201
$0.0882
.0763
.0675
.0988
.0913
.0959
.1663
.1628
.1478
.1500
.1514
.1559
.1498
.1306
.0936
.0819
79
69
61
89
82
86
149
146
133
135
136
140
135
117
84
74
$4.5938
5.9400
5.3313
8.4250
11.2625
10.2100
11.6200
14.4438
13.5375
13.1650
14.2813
15.0313
14.1600
13.6688
12.2350
12.5938
100
130
116
184
246
223
254
315
295
287
312
328
309
298
267
275
$0.1769
.1905
.1447
.1900
.2675
.3281
.3480
.2944
.3056
.3155
.3313
.3556
.3650
.3769
.3725
.3634
106
115
87
114
161
197
209
177
184
190
199
214
220
227
224
219
$0.1200
.1200
.1200
.1200
.1300
.1750
.2200
.2240
.2400
.2500
.2600
.2600
.2600
.2600
.2600
.2750
97
97
97
97
105
142
178
182
195
203
211
211
211
211
211
223
$0.0420
.0680
.0506
.0637
.0823
.0845
.0882
.1537
.1495
.1372
.1919
.2247
.2120
.1910
.1490
.1426
98
159
119
149
193
198
207
360
350
321
449
526
497
447
349
334
DISCOUNT AND INTEREST RATES.
In the following table are presented actual discount and interest rates
prevailing during the 30-day period ending October 15, 1920, in the various
cities in which the several Federal Reserve Banks and their branches are
located. A complete description of the several types of paper for which
quotations are given will be found in the September, 1918, and October,
1918, FEDERAL RESERVE BULLETINS.
As was the case during the previous period, changes in rates have occurred
only in a relatively small number of centers, and there are approximately
an equal number of increases and decreases. These changes in rates are
scattered and are not pronounced, either for particular centers or for particular types of paper. In the great majority of centers rates remain unchanged.
Present rates continue higher in almost all centers than rates during the
same period of 1919.
Quotations for new types of paper
will be added from time to time as deemed of interest.
Discount and interest rates prevailing in various centers during 30-day period ending Oct. 15, 1920.
Prime commercial paper.
District.
Open market.
Customers.
City.
30 to 90
days.
Bankers' acceptances,
60 to 90 days.
4 to 6
months.
30 to 90
days.
Collateral loans—stock exchange
or other current.
Cattle
loans.
Interbank
loans.
4 to 6
months.
Secured by
warehouse
receipts,
etc.
Indorsed.
Unindorsed.
Demand.
3 months.
3 to 6
months.
Ordinary
loans to
customers
secured by
Liberty
bonds and
certificates
of indebtedness.
O
No. 1..
No. 2..
No. 3..
No. 4..
No. 5..
No. 6..
No. 7..
No. 8..
No. 9...
No. 10..
No. 11..
No. 12..
Boston
New York 1
Buffalo
Philadelphia
Cleveland
Pittsburgh
Cincinnati
Richmond
Baltimore
Atlanta
Birmingham
Jacksonville
New Orleans
Nashville
Chicago
Detroit
St. Louis
Louisville2
Memphis
Little Rock
Minneapolis
Kansas City
Omaha
Denver
Dallas
El Paso
Houston
San Francisco
Portland
Seattle
Spokane
Salt Lake City...
Los Angeles
L. C.
6 7
6
7
6
6 6
6 7
. C.
7
7
6-7
L. C.H. L. C. H. L. C.
H. L. c. H.
7 6 6J 6i
61
61 6*
8 7f 8 74 6 7
61
5| 6*
8 6 7 74
6 6 6 6* 61
6|
6
7 6
6| 6^
6 6
6
61 6
6* 6i
7 6
6 64 6
61 61
64 71 6J 64 74 6 64-7
64
6 6 6
6
6 6 6 6 6
6
6
8 7 7 8 7
7
7 8 7
7
8
6
6-7
8i8
8
7
7
7
7
8 7 8 7 6 6 8 7
7
8 7 74-8 8 7 7J-8 8 64 7-74 8 7 74-8
7 74-8
74-8
8 6 6
7 7
7 7
7 7
7 7
7
7 6
7
64 6J
8 7|
6 6-6|
6
6
6
6
7
7
6
7
6
7
6 7^-8
6
7
6J 7
6
7
6* 7
8 7
7| 7i
8 6
8 7
8 6
8 7
.0 6
7 6
8 6
7 6
8 64
8 7
8 7
81 5
1
H. X.
8 7f
8 8
8J 8
8J7f
n
8 6J
6 6
7
6
8 74
10
7
8
7
8
8
8
7
6
7
6
6
6
6
7
7
7
?
3
S
9 7
8 7
8 7
8
8 7
81
8
81 7
54 51
81 8
5i
81 8
81 8
81 6
8
8 6
9 7
8 6
7 6J
8 8 6
64 6
8 7 6
6
6
51
8 7 64
8 64
8 7
7 5
61 64
64 6J
4i 41
61 7 7
. C. H. L. C. H. L.
8 74 8
7 6 6
8 6 6-7
6-7 6 6 6
6 6 6
7 74
6 6 67
7 6 6
6 8 7
6 8 6
7
7
8
7 8J 7
6J
74-8
8
6 7
ri-8 8
7 7 7 7 7
7 7 6 7
8 6§ 7
6
L. C.
?
6
7
6 6-7
64 74-8
6J
64
6
8 7
61 8 74
8 6
84 8
9 7
8 6
10 7
8 6
61 8 6
4i 6 6
8 7
8 7
8 7
8 6
a
7
7
7
8 7
1
61
7 6
6 6
10
10 8
7
8 6
9 7
8 6
Rates for demand paper secured by prime bankers' acceptances—high, 7; low, 5f; customary, 6.
C.
7 6 64
64 41 6
7 6
6*
6 6
7 7
7
7
7 6
6
6 6
6
6 6
6
74 6 | 7
64 6
6
6 6
6
6 6
6 6
6
8 7 7 8 7
7
7
8 6 7-8 8 6
8 7 7 8 7
7
8 61 7f-8 8 5< 6-74
8 6 7 7 6
7 7 7 7 6
8
10
10
H. L. C.
2
N o report.
•tr 1
7
82 6
8 64
8 6
8 6
10 6
7
7 6
7
8 6J
8 7
8 7
8 6
5*
7
?
7
8
8
7
to
1216
FEDERAL RESERVE BULLETIN.
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the October FEDERAL RESERVE BULLETIN, there are presented in the following
tables certain data relative to the physical volume of trade
The January, 1919, issue contains a description of the
methods employed in the compilation of the data and the
construction of the accompanying index numbers. Beginning with this issue, stocker and feeder shipments are
shown in addition to live-stock movements. Receipts
and shipments of lumber at St. Louis have also been added
and are combined with receipts and shipments of lumber
at Chicago.
After showing some indication of increase in activity
during August, the woolen industry during September
showed signs of inactivity. The amount of wool consumed
during the month was about 6 per cent less than that for
August and about 40 per cent less than for September, 1919.
However, there was a slight tendency for the percentage
of idle woolen machinery to decrease on October 1 as compared with September 1. It is to be noted that in each
case the percentage of idle woolen machinery is very mucn
greater than during the corresponding month of last year.
Cotton consumption showed a still further decrease during
September from the August figure and was somewhat
less than during September, 1919. There was a corresponding decrease in the number of cotton spindles active
during the month. Imports of raw silk during September
were almost one-fourth less than for August and less than
one-third of imports during September, 1919.
The production of bituminous coal during September
exceeded the August figure by about 6 per cent and the
September, 1919, figure by about 8 per cent, while the
production of anthracite coal during September was considerably less than for August, 1920, and for September,
1919. Crude petroleum production also showed a falling
off during September, but still remains substantially
above the figure for September, 1919. Pig-iron production showed a slight decline for September when compared
with August, although the daily average for September was
slightly greater, and showed a considerable increase over
September, 1919, toward the close of which month the
strike in the industry commenced. Pig-iron production
showed a small increase during October. Steel-ingot pro-
NOVEMBER, 1920.
duction during September was practically the same as
during August, but increased slightly during October.
The unfilled orders of the United States Steel Corporation at the close of September and October showed a
decrease as compared with August, 1920, and a considerable increase over the corresponding months of 1919.
Receipts of lumber at Chicago and St. Louis showed a
slight increase during the month of September but were
considerably less than for September, 1919. The production of eastern white pine and North Carolina pine
showed a substantial increase over August. 1920, and a
very large increase as compared with September, 1919.
Western pine showed a decrease during September, but
is well above the figure for September, 1919.
A considerable decrease is shown in the production of Douglas
fir and southern pine, both when compared with last
month and the same month last year. California shipments of citrus fruits showed a further seasonal decline, the figure being considerably less than last month
and for the same month last year. Shipments of deciduous fruits were marked by a seasonal increase, being
considerably greater than for August, 1920, and for September, 1919. Receipts and meltings of sugar during
September at North Atlantic ports showed a very great
decrease, both when compared with August, 1920, and
with September, 1919. Stocks of raw sugar at these ports,
while substantially in excess of September, 1919, showed
a decrease when compared with August, 1920.
Receipts and shipments of live stock at 15 western
markets were in excess of those for August, but considerably less than for September, 1919. Stocker and feeder
shipments from 35 markets during the months since February of 1920 showed a decrease every month when compared with the corresponding months of 1919, but it is to
be remembered that 1919 shipments were far in excess of
normal. Receipts of grain and flour at 17 interior centers
during September, although considerably less than for
September, 1919, showed a substantial increase over
August, 1920.
The railroad net-ton mileage during August was considerably in excess of that for July, 1920, and for August,
1919. The tonnage of vessels cleared during September
decreased materially when compared with August, but
was considerably above the figure for September, 1919.
Live-stock movements.
[Bureau of Markets.]
Shipments.
Receipts.
September, 1919
Hogs, 60
markets.
Head.
2,376,680
Head.
2,403,250
Head.
3,810,254
Head.
140,848
1,868,723
1,468,370
1,803,073
1,542,150
1,766,394
1,870,121
1,657,743
1,952,086
2,279,345
5,275,412
3,423,992
3,963,245
3,030,801
1,234,022
3,741,202
2,837,685
2,516,240
2,435,589
1,560,051
1,387,111
1,255,490
1,441,072
1,421,00.9
1,592,450
2,000,758
2,561,661
2,826,693
138,541
108,056
82,584
48,036
40,901
32,199
35,668
73,423
57,468
1920.
January
February
March
April
May...
June
July
August
September
Cattle and
calves, 60
markets.
Sheep, 60
markets.
Horses and
mules, 44
markets.
Horses and
mules, 44
markets.
Cattle and
calves, 54
markets.
markets.
Head.
8,731,032
Head.
1,150,303
Head.
862,550
Head.
2,472,438
Head.
135,724
Head.
4,621,015
8,842,727
6,387,5.29
7,104,392
6,062,059
7,462,326
7,235,972
6,531,854
7,103,410
7,599,095
752,605
591,691
570,323
593,362
771,865
789,953
721,328
869,849
1,079,170
1,665,274
1,287,169
1,399,485
1,119,205
1,374,902
1,295,936
1,095,470
953,088
931,261
669, 458
572,634
483,550
724,718
769,718
768,172
1,015,612
1,459,150
1, 581,680
138,145
110,827
87,896
47,998
40,021
33,539
37,152
69,971
60,414
3,225,482
2,562,321
2,541,254
2,485,283
2,956,506
2,887,600
2,869,562
3,352,058
3,652,525
nil
Hogs, 54
Sheep, 54
markets.
Total, all
kinds.
NOVEMBER,
1217
FEDERAL RESERVE BULLETIN.
1920.
Receipts and shipments of live stock at 15 western markets.
[Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth, Indianapolis, Louisville, Wichita.]
RECEIPTS.
[Monthly average, 1911-1913=100.]
Hogs.
Cattle and calves.
Head.
Relative.
1,871,042 I
September, 1919
1920.
January
February
March...
April
May
June
July
August
September
Head.
Relative.
1,704,944
186
Sheep.
Horses and mules.
Relative.
Head.
78 | 2,890,831
Head.
Relative.
88,003
191
6,554,820
142
58
74
95
124
139
90,662
76,048
57,880
31,235
25,469
21,316
26,697
55,371
38,950
197
168
126
68
55
46
58
120
85
6,438,733
4,532,410
5,072,587
4,150,610
5,159,534
5,064,499
4,631,813
5,021,900
5,265,893
139
105
110
90
112
110
100
109
114
202
3,313,375
231
221
207
153
76
60
55
69
127
100
2,069,616
1,654,973
1,703,339
1,531,783
1,678,588
1,748,455
1.918,847
2,219,470
2,428,583
144
124
119
107
117
122
134
155
114
119
103
120
128
118
145
172
3,912,449
2,440,154
2,910,909
2,150,281
3,128,249
2,746,390
2,115,639
1,818,245
1,597,622
872,541
214
502,211
104
1,855,639
367
548,841
427,608
418,310
414,967
515,062
528,273
508,199
640,295
819,371
135
113
103
102
127
130
125
157
202
1,026,763
814,253
923,526
712,087
822,907
797,946
737,923
627,670
540,812
212
180
191
147
170
165
152
130
112
403,382
334,012
298,878
373,381
316,002
399,613
644,557
899,342
1,027,510
80
71
59
74
63
79
128
179
204
1,035,591
948,116
900,299
928,191
796,160
1,006,528
1,301,458
1,688,719
1,893,312
Relative.
212
1,400,031 |
1,068,092 !
1,203,499
1,040,903
1,209,656
1,290,265
1,188,019
1,459,565
1,736,009
178
119
132
98
142
125
96
83
73
Head.
Total, all kinds.
SHIPMENTS.
September, 1919
1920.
January
February
March
April
May
June
July
August
September
90,630
79,100
62,625
31,348
24,617
22,623
28,168
52,163
40,890
Shipments of stockers and feeders from 35 markets.
Cattle and
calves.
Hogs.
Sheep.
Total, all
kinds.
40,492
114,510
114,024
115,227
100,571
76,372
210,332
523,944
1,099,386
1,238,810
762,595
358,959
520,003
1,051,865
1,812,682
2,047,625
1,481,301
799,347
Cattle and
calves.
1918.
Hogs.
all
Sheep. Ji Total,
kinds.
1919.
July....
August
September.
October
November..
December..
269,179
413,411
599,272
693,588
618,135
364,016
1919.
362,205
262,722
273,558
386,286
439,123
269,545
234,200
394,586
606,881
January.
February...
March
April
May
June
July
August
September.
48,704
46,445
85,741
125,096
95,322
49,398
43,243
49,808
72,809
227,732
130,653
135,505
205,550
158,775
221,474
340,059
1,037,971
1,502,391
638,641
439,820
494,804
716,932
693,220
540,417
617,502
1,482,365
2,182,081
October
November
December
Total, 1919
830,825
714,662
462,767
106,625
88,994
67,730
1,384,404
859,162
723,975
2,321,854
1,662,818
1,254,472'
5,263,993
879,915
6,928,409
13,044,926-
346,430
237,939
240,121
242,996
291,895
270,053
217,292
279,402
474,852
80,719
82,981
104,962
72,834
66,144
42,156
25,826
34,479
44,483
300,449
140,219
135,246
267,664
252,221
226,696
322,869
567,430
789,773
727,598'
461,139'
480,329J
583,494
610,260>
538,905
565,987
881,311
1,309,108
1920.
January
February
March
April
May
June
July
August
September
Exports of certain meat products.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Beef, canned.
Sept., 1919
Pounds.
Relative.
1,213,709
183
7,285,951
1,081,643
163
735,132
119
847,397
128
243
1,606,737
902
5,976,493
6,787,622 1,024
788
5,217,838
186
1,231,070
37
244,261
22,872,223
13,010,793
6,036,166
17,687,306
4,304,038
12,526,669
5,506,812
343,352
1,964,543
Pounds.
Hams and shoulders, cured.
Bacon.
Lard.
Pickled pork.
Pounds.
Relative.
Pounds.
Relative.
Pounds.
Relative.
Pounds.
Relative.
Pounds. g £ -
587
3,523,887
132
57,179,511
341
18,209,239
122
36,960,364
' 84
2,792,439
63
1,844
1,124
487
1,426
347
1,010
444
28
158
1,670,500
1,631,457
2,290,8352,241,460
3,056,449
2,563,702
1,973,004
2,152,982
1,613,657
63
65
86
84
114
96
74
81
60
77,501,002
75,891,195
75,002,410
24,356,349
50,412,388
60,730,935
31,562,761
23,333,156
41,371,561
463
486
448
145
301
363
188
139
247
13,905,923
24,217,706
31,088,859
15,640,236
17,896,764
21,277,089
8,385,089
9,360,469
8,997,124
93
174
208
105
120
143
56
63
60
38,823,902
88
36,644,906
89
69,429,785
158
40,758,401 \ 93
55,544,483
126
45,069,517
102
47,061,422 ' 107
31,020,802 : 71
46,326,353
105
4,251,187
3,710,308
3,160,456
2,784,535
3,816,157
3,962,649
2,926,247
2,257,511
3,279,902
96
90
71
63
86
90
66
51
74.
Relative.
1920.
January
February
March
April
May
June...
July
August
September
Beef, pickled,
and other cured.
Beef, fresh.
1218
FEDERAL RESERVE
BULLETIN.
NOVEMBER 1920.
Receipts of grain and flour at 17 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Indianapolis. Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria,
s St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane, Toledo,
and Wichita.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Oats.
Corn.
Wheat.
Rye.
Barley.
Total grain.
Total grain
and
flour.1
Flour.
RelaRela- Bushels. Rela- Bushels. Rela- Bushels. Rela- Barrels. Rela- Bushels. RelaBushels. Relative.
tive.
tive. Bushels. tive. Bushels.
tive.
tive.
September,
9,953,295
1919....
1920.
January
February
March
April
May
June
July
August
September...
25,074,624
18,115,324
18,007,798
15,260,236
20,510,063
21,020,640
29,714,399
43,039,021
46,181,275
16,267,145
93 24,:
,139,094
7: 26,051,855
67 24,306,196
5' 11,326,509
\ 107,950
7612;:
', 251,166
78 27,:
110
10 20,824,268
160 9,840,320
17120,696,955
1
72 26,721,0
108 20,925,941
124 20,575,654
108 19,149,624
12,952,593
54 16,724,389
12114,260,053
18,734,180
30,728,748
92 31,031,569
5,446,3711
492 5,294,256
74 123,682,097
159 3,073,034
157137,510,750
159
104 4,378,610
109 3,263,686
95 3,548,739
64 2,914,553
83 3,758,507
7113,177,770
9313,096,026
152 3,191,103
154 5,571,428
396 3,298,544
316 2,470,622
321 2,928,440
263 2,245,881
340j2,690,076
28712,721,367
280 2,659,921
28813,007,508
503|6,630,856!
46 77,816,813
37 70,477,141
4167,940,797
31 44,699,772
38 55,790,985
38 68,430,996
37 75,028,794
42 89,806,700
92 110,111,283
100 2,298,692
97 2,059,421
87
""1,617,544
1
57 888,423
72 11,913,075
88 2,113,979
96 2,052,110
115 1,949,339
141 1,843,954
117 88,160,927
113 79,744,536
83 75,:
'5,219,745
45 48,1
8,697,676
98 64
14,399,823
108 80,057,876
105 84,263,289
99 98,578,726
94 118,409,076
102
99
87
56
74
92
97
114
137
Flour reduced to its equivalent in wheat on basis of \\ bushels to barrel.
Shipments of grain and flour at 14 interior centers.
[Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Cmaha, Peoria, St. Louis, Toledo, Wichita;
shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.
Cats.
Corn.
Rye.
Barley.
Total grain.
RelaRelaRelaRela-|I
RelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. I Bushels. tive. Bushels.
Total grain and
flour. 1
Flour.
Barrels.
§£*-
Bushels.
September,
37,844,148
1919.
245 6,624,129
4716,656,000
110 2,318,680
328 2,943,217
75 66,386,174
134 4,757,850
140 87,796,499
136
1920.
January
February
March
April
May
June
July
August
September...
11412,3326,051
9811,9977,640
7111,1165,894
371,811
72
939,145
134
131 10; 088,237
123
100,527
162
260,144
284,075
8715,822,099
9113,073,089
~:4,243,957
38 8,691,440
!0,444,288
7112,805,056
64 11,345,429
4412,814,067
4412,690,866
104 3,685,914
5212,007,718
92 2;!, 113,505
320 1,306,340
94 31,062,530
433 1,574,887
57 8!1,811,500 1,2451,651,509
"""1,488,387
135 6;i,977,479
986
i:
76: 1,905,225
84 5,i,428,886
632 2,092,672
2:
75 41,476,238
407 2,231,851
84 2!1,880,003
613 3,556,180
84 4!,339,057
5151 ,355,869
36 42:!, 584,789
40 41',074,604
42 35:i,584,903
38 55:», 569,420
49 50;1,469,450
54 46,>, 016,965
57 491,120,881
9155; .,570,771
104 4
9213
83!2
721
112 2
102|3
9313
99!3
112|3
122 69,987,282
100156,791,118
87,54,395,392
50 43,244,497
85 68,516,469
9167,233,435
111)62,971,516
10665,343,854
94 69,914,314
108
94
84
67
106
104
97
101
108
17,514,087
14,114,215
11,027,336
11,058,643
20,720,121
20,242,046
19,002,099
24,934,816
28,700,593
1
140,314
156,962
960,175
702,132
877,122
725,330
767,678
605,105
187,454
Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.
Receipts of grain and flour at 9 seaboard centers.
[Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for
Seattle and Tacoma.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.1
Corn.
Wheat.
Rye.
Barley.
Total grain.
Flour.
Total grain and
flour.*
Rela- Bushels. RelaRelaRelaRelaI Relative.
tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels.
RelaBushels. tive.
1919.
August...
28,700,593
186 6,284,075
1920.
January..
February—
March....
April
May
June
July
August
5,711,009
4,898,690
6,486,745
5,441.434
10,621,723
13,374,721
18,710,633
28,098,022
51
43
84
106
149
223
Oats.
491,759
244,393
203,649
317,555
767,332
878,334
305,542
576,842
1
4412,690,866
84 4,339,057
613 3,556,180
9155,570,771
112 3,187,454
94 69,914,314
108
42
38
34
37
22
53
93
44
56 2,643,611
53 3,212,668
77 4,119,986
33
3
""3,440,350
50 5,117,836
67 6,506,053
6;
74 5,048,019
56 1,407,799
3
1,8611,29',
2,4231,315,291
2,9001,300,871
2,421 685,054
3,602 556,764
4,5791,191,767
3,553 2,098,083
2,398 2,289,791
78513,807,492
• ".3,002,288
8513
6,757,978
78 16,'
4112,2,430,983
*.
3419,445,896
72 26,145,772
126 32,661,378
138 38,043,819
6111,561,693
61I 1,102.606
74 1,752,860
74i:
55 843,916
8611,301,211
1151,486,365
1441,660,849
1681,390,077
150 20,835,111
11317,964,015
168 24.645,848
6,228,605
!5,301,346
142 32,834,415
159 40,135,198
133 44,299,166
70
90
59
92
120
146
162
2,663,274
2,331,246
3,646,727
1,546,590
2,382,271
3,194,897
3,499,101
2,671,365
Flour reduced to its equivalent in wheat on basis of 4§ bushels to barrel.
1219
FEDERAL RESERVE BULLETIN.
NOVEMBER,, 1920.
Stocks of grain at 8 seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.]
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
Corn.
Wheat.
Oats.
Rye.
Barlev.
Total grain.
1919.
August
17,396,269
155,491
2,216,989
578;250
5,414,183
25,761,182
8,485,491
6,634,682
6,280,682
7,704,155
10,781,927
8,492,819
11,923,745
13,915,892
711,501
948,239
851,287
967,475
437,521
459,568
744,167
1,097,945
2,398,639
1,571,209
1,351,457
389,958
819,790
901,756
1,323,940
1,532,272
2,397,156
2,671,743
2,389,321
1,944,350
1,889,965
2,035,334
1,275,554
777,445
2,587,543
2,340,787
1,891,862
2,031,983
1,071,920
1,193,082
3,187,611
4,052,189
16,580,330
14,166,660
12,764,609
13,040,921
15,001,123
13,082,559
18,455,017
21,375,743
1920.
J amiary
February
March..!
April
May
June
July
August
NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.
Cotton.
[New Orleans Cotton Exchange.]
[Crop years 1911-1913=100.]
Sight receipts.
Bales.
1919-20.1
Relative.
|
!
!
i
!
!
I
J
August
September
October
November
December
January
February
March
April
May
Relative.
Bales.
Bales.
American spinners'
takings.
Relative.
Relative.
Bales.
Stocks at ports and
interior towns at
close of month.
Relative.
Bales.
238,271
260,698
1,029,331
1,178,443
1,069,693
982,030
725,515
621,808
499,187
289,809
26
28
112
128
116
107
85
68
54
32
49,630
26,138
110,202
245,237
242,940
205,233
138,084
108,573
48,565
57,661
47
25
105
233
231
195
141
103
46
55
302,238
300,001
621,784
1,155,324
1,214,337
793,453
374,093
270,269
276,805
214,678
67
66
137
254
267
175
88
59
61
47
1,412,048
1,501,805
2,340,881
2,616,383
2,765,040
2,470,496
2,510,482
2,276,737
2,148,038
1,913,407
120
127
199
222
235
210
213
193
182
162
I 12,432,856
7,299,667
66
1,674,828
133
6,365,990
117
1,461,000
124
305,418
761,740
159,586
443,149
1,365,397
1,607,602
116
136
26
50
146
195
177
126
90
64
44
29
327,001
632,902
1,835,273
2,445,698
2,218,773
1,583,473
1,050,964
796,632
I
552,943
360,607
Season total
Overland movement.
Port receipts.
1920-21.
August
September.
25,322
17,324
251,841
254,460
i Figures of sight receipts revised.
California shipments of citrus and deciduous fruits.
[October, 1920, on, California Fruit News and Bureau of Markets.]
[1911-1913=100.]
I
Oranges.
Carloads.
....
September, 1919
1920.
January
February
March
April
May
June
July
August
September
i
i
[
Lemons.
Relative.
Total citrus fruits.
Carloads.
Relative.
Carloads.
Relative.
Total
deciduous
fruits.
Carloads.
1,840
75
414
102
2,254
79
6,781
2,457
2,683
4,715
3,720
5,048
3,294
2,822
1,707
1,409
100
118
193
152
206
135
115
70
58
630
852
651
508
1,353
1 576
664
751
464
156
225
161
125
334
389
164
185
115
3,087
3,535
5,366
4,228
6,401
4,870
3,486
2,458
1,873
108
133
188
148
225
171
122
86
66
123
139
155
22
24
1,263
3,179
7,239
9,021
1220
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Sugar.
[Data for ports of New York, Boston, Philadelphia.]
[Weekly Statistical Sugar Trade Journal.]
[Tons of 2,240 pounds. Monthly average 1911-1913=100.]
Relative.
Tons.
1919.
September
1920.
January
February
March
Raw stocks at
close of month.
Meltings.
Receipts.
Tons.
Relative.
Receipts.
Relative.
Tons.
Relative.
Tons.
Raw stocks at
close of month.
Meltings.
Tons.
Relative.
Relative.
Tons.
1920.
262,137
142
292,000
159
45,531
26
208,554
316,667
335,532
113
184
182
181,000
269,000
333,000
99
157
182
37,986
85,653
88,185
22
50
51
April
May
June
July
August
September
169
138
164
210
168
59
310,580
254,616
301,318
386,328
308,313
109,302
307,000
286,000
319,000
325,000
287,000
164,000
167
156
174
177
156
89
91,765
60,381
42,699
104,027
125,340
70,642
53
35
25
60
73
41
Naval stores.
[Data for Savannah, Jacksonville, and Pensacola.]
[In barrels.]
[Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
1919.
September, .
1920.
January
February
March
Spirits of turpentine.
Rosin.
Receipts.
Stocks at
close of
month.
Receipts.
Stocks at
close of
month.
21,574
27,021
72,616
190,580
8,300
3,762
1,876
24,910
17,900
4,819
47,874
29,303
14,660
165,927
140,559
103,443
Stocks at
close of
month.
Receipts.
1920
April
May
June
July
August
September.
7,644
23,473
33,522
39,158
33,997
32,162
3,996
6,174
19,654
30,906
27,963
44,396
Rosin.
Receipts.
Stocks at
close of
month.
27,029
68,163
94,904
117,088
111,497
97,797
98,517
78,113
108,656
135,979
144,109
176,612
Coal and coke.
[U. S. Geological Survey.]
[Monthly average, 1911-1913=100.]
Bituminous coal, estimated monthly production.
Short tons.
September, 1919
1920.
January
February
March
April
May
June
July
August
September
Anthracite coal, esti- Beehive coke, estimated
mated monthly promonthly production.
duction.
Relative,
Short tons.
47,402,000 I
|
128
7,333,000
4S,689,000
40,127,000
46,792,000
37,939,000
39,753,000
43,710,000
45,523,000
48,389,000
51,093,000
131
116
126
102
107
118
123
131
138
7,366,000
6,335,000
7,240,000
6,543,000
7,745,000
7,641,000
7,785,000
7,332,000
5,125,000
Relative,
100
92
98
88
105
103
105
99
69
Short tons.
Relative.
1,755,000
67
1,982,000
1,731,000
2,025,000
1,602,167
1,689,500
1,710,333
1,693,000
1,776,000
1,820,000
76
71
77
61
65
65
65
68
70
Lumber.
[From reports of manufacturers' associations.]
[Mfeet.]
Southern pine.
Douglas fir.
Western pine.
Num- Produc- ShipNumShip- ber
Ship- Numof
ber of Producof Produc- ments.
ments.
ments. ber
mills. tion.
mills. tion.
mills. tion.
September, 1919..
1920.
January
February
March..
April
May
June
July
August
September
Eastern white pine.
North Carolina pine.
Num- ProducProduc- Ship- ber
Shipof tion.
tion.
ments. mills.
ments.
202
416,640 372,727
154,102
138,537
126 332,905
261,797
16,913
22,574
33,146
35, 468
202
203
205
205
205
204
207
204
204
386,481
383,239
436,944
438,056
430,271
385,293
385,842
383,540
376,566
85,583
130,425
167,165
183,621
197,461
177,262
171,143
164,312
144,180
147.180
156,211
133,114
132.181
125,770
103,500
123,344
98,806
128
124
123
126
124
127
127
123
127
344,568
295,934
329,012
274,597
383,346
271,815
225,666
322,908
238,965
38,007
32,551
43,771
45,222
12,731
25,771
37,459
46,149
48,962
63,614
59,687
61,620
61,757
26,323
41,557
49,668
55,991
45,445
24,678
15,534
29,633
13,659
15,992
14,259
20,756
19,511
21,887
26,283
15,203
29,892
10,616
18,657
10,481
15,217
14,130
16,04:5
404,706
369,047
424,775
359,461
347,404
287,487
331,273
337,677
378,195
327,568
332,511
342,948
359,651
424,687
343,801
242,612
366,433
299,277
1221
FEDERAL RESERVE BULLETIN.
NOVEMBER,, 1920.
Receipts and shipments of lumber at Chicago and St. Louis.
[Chicago Board of Trade and Merchants' Exchange of St. Louis.]
[Monthly average, 1911-1913=100.]
Receipts.
M feet.
Receipts.
Shipments.
Relative.
M feet.
1918,
January
February
March
April
May
June
July
August
September
October
November
December
201,747
230,077
402,084
523,862
491,862
431,412
419,125
398,202
341,053
259,401
268,901
291,899
Year
113,555
115,068
215,278
276,626
258,947
227,023
218,084
212,258
169,575
136,079
152,138
160,442
45
49
85
109
102
4,259,625
2,255,073
74
271,769
254,667
281,236
316,579
136,362
140,328
158,723
191,616
215,442
43
53
86
113
106
93
90
86
73
56
58
63
356,488
1919.
June
July
August
September
October
November
December
Relative.
404,989
437,517
382,377
432,025
440,216
380,186
445,226
Year
Relative.
M feet.
256,603
275,297
266,797
274,894
272,571
235,274
245,477
79
4,403,275
101
108
105
108
107
93
97
2,669,384
1920.
1919.
January
February
March
April
May
M feet.
Relative.
Shipments.
403,604
421,692
500,230
236,975
313,447
393,738
399,615
370,352
375,456
January
February
March
April
May
June
July
August
September
97
108
51
67
85
81
219,783
224,286
296,047
131,933
195,965
212,339
184,767
220,368
242,857
87
95
117
52
77
84
73
87
96
Crude petroleum.
[U. S. Geological Survey.]
[Barrels of 42 gallons each.]
Produced.
Barrels.
September, 1919..
Relative.
33,667,000
176
33,980,000
33,212,000
36,461,000
177
186
190
Barrels.
127,164,000
126,339,000
125,597,000
Relative
Stocks at end
of month
(barrels).
1920,
137,131,000
1920.
January
February
March
Produced.
Stocks at end
of month
(barrels).
April
May
June
July
August
September
124,991,000
124,689,000
126,763,000
128,168,000
129,043,000
128,779,000
36,283,000
36,931,000
37,295,000
38,548,000
39,397,000
37,845,000
Total output of oil refineries in United States.
[Bureau of Mines.]
Gasoline
(gallons).
Kerosene
(gallons).
32,362,057
326,846,167
219,502,888
5,702,461
72,920,214
30,815,160
29,208,723
33,592,004
32,852,040
34,578,282
34,906,078
37,024,052
39,757,770
336, 719,157
322, 588,697
367, 137,678
355, 597,451
381, 079,291
415, 158,911
423, 419,770
444, 141,422
195,956,392
194,523,334
191,110,175
184,469,017
180,877,089
173,581,000
172,213,511
189,010,450
617,555,156
589,684,857
686,945,963
643,088,785
707,198,355
689,878,061
751,193,898
834,322,503
75,878,635
74,243,073
81,818,973
85,568,064
89,252,410
94,964,222
92,369,504
91,078,569
Crude oil run
(barrels).
August, 1919
Gas and fuel
(gallons).
Lubricating
(gallons).
1920.
January
February
March
April
May
June
July
August
STOCKS A T CLOSE O F M O N T H .
Aug. 31, 1919
15,131,549
434, 531,446
296,065,646
830,329,785
170,572,819
13,200,727
13,500,599
14,346,458
15,145,691
15,331,375
16,172,280
17,086,253
17,960,558
515,934, 364
562,996,489
626,393, 046
643, 552,644
577, 671, 795
504,055, 601
413, 279,319
323, 239,991
327, 548,646
330, 120,942
334, 617,117
376,358,123
419,077,605
421,343,353
410, 853,047
378,548,791
652, 080,901
590,322,125
580, 182,858
590, 687,009
618,939,135
641,968,363
655, 152,293
708, 608,472
141,690,177
132,759,244
130,630,597
140,355,972
135,882,485
133,212,551
131,866,455
130,797,810
1920.
Jan. 3 1 . . Feb. 29.-.
Mar.31
Apr.30
May 31
June 30
July 31
Aug. 31
1222
FEDERAL EESERVE BULLETIN.
NOVEMBER, 1920.
Iron and steel.
[Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100; iron ore, monthly average, May-November, 1911-1913=100.]
Iron-ore shipments
from the upper
Lakes.
Steel-ingot production.
Pig-iron production.
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative Gross tons. Relative. Gross tons, j Relative. Gross tons. Relative.
September, 1919.
October, 1919....
8,178,483
6,201,883
135
102
2,487,965
1,863,558
107
80
3,015,181
2,978,879
3,375,907
2,739,797
2,985,682
3,043,540
3,067,043
3,147,402
3,129,323
3,278,104
130
138
146
118
129
131
132
136
135
141
6,284,638
6,472,668
119
123
123 9,285,441
127 9,502,081
137 9,892,075
109 10,359,747
119 10,940,466
123 10,978,817
116 11,118,468
124 10,805,038
124 10,374,804
125
176
180
188
197
208
208
211
205
197
1920.
January..
February.
March
April
May
June
July.
August
September.
October
230,854
6,976,085
9,233,566
9,638,606
9,270,763
8,923,482
115
152
159
153
147
2,968,102
2.865,124
3,299,049
2,638,305
2,883,164
* 2,980,690
2,802,818
3,000,432
2,999,551
3,015,982
Imports of fig tin.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Pounds.
September, 1919
January
February
March
April
Relative. I
11,087,403
1920.
8,772,953
13,925,843
11,980,019
10,345,130
97
164
132
114
Pounds.
Relative
1920.
May
June
July
August
September
9,102,341
11,232,325
17,584,167
11,195,937
9,596,819
10O
124
193
123
106
Raw stocks of hides and skins.
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
[In pieces.]
Cattle
J u n e 30,1919
Sheep and
lamb.
Calfskins.
Kipskins.
4.696,332
2,285,015
558,033
16,991,195
2,521,016
1,697,754
8,118,702
6,773,360
6,559,337
6,558,300
6,072,895
5,849,375
6,212,946
1,920,184
1,859,697
1,930,218
2,281,370
2:724,056
3,107,393
1,036,372
1,141,620
966,850
834,711
924,042
915,499
13,474,529
16,481,328
15,968,660
14,666,590
14,131,330
14.562,713
927,436
665,524
468,188
156,871
791,150
60,999
1,893,614
2,197,683
2,047,519
1,947,499
2,253,785
2,070,471
8,902,067
9,460,914
9; 227,252
8,911,681
9,004,621
10,993,228
hides.
Goat.
1920.
J a n . 31
F e b . 29
Map. 31
Apr. 30
May 31
J u n e 30
N O T E . — F i g u r e s for J u n e 30 are provisional.
Textiles.
[Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.]
[Cotton, monthly average crop, years 1912-1914=100; silk, monthly average, 1911-1913=100.]
Cotton consumption
Bales.
September, 1919.
1920.
January
February
March
April
May
j
June
I
July
!
August
j
September
[
October
Relative.
Percentage of idle woolen machinery on first of month
to total reported.
Cotton
spindles
active
during
month.
Wool consumption
(pounds).
Imports of raw silk.
[ Spinning spindles.
Looms.
Wider Under Sets of
than 50- 50-inch cards. Combs.
Woolen.
inch reed reed
space.
space.
491,069
109
34,219,991
52,985,961
19.9
22.8
8.1
591,725
516,594
575,704
567,839
541,080
555,521
525,405
483,193
457,647
132
123
128
126
120
124
117
107
•102
34,739,071
34,668,643
34,667,747
34,346,737
34,066,236
34,503,754
34,666,842
34,471,515
34,040,806
63,059,862
55,247,652
58,344,602
57,887, 832
50,649,381
40,679,920
32,372,064
32,849,956
30,928,337
14.5
12.2
14.9
13.1
15.2
26.8
42.5
49.5
51.8
49.0
18.5
17.6
19.8
16.9
18.2
22.4
32.3
29.9
34.8
34.9
8.8
7.6
9.8
9.6
10.6
21.1
38.0
39.6
30.6
38.3
5.5 I
7.2
6.9
7.0
7.1
6.7
15.9
35.0
33.4
37.3
26.3
1
:
j
!
!
9.1
7.1
10.3
9.5
11.5
23.1
42.0
45.5
44.6
43.2
Worsted
Pounds.
Relative.
12.8
6,755,271
330
10.2
4,855,989
3,696,121
2,491,651
2,227,857
2,505,798
3,221,177
2,581,920
2,690,690
1,968,801
237
194
122
109
122
157
126
132
96
7.9
11.7
7.0
7.0
14.2
32.7
37.6
38.0
26.0
1223
FEDERAL EESERVE BULLETIN.
NOVEMBER, 1920.
Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.]
Wood
pulp.
September, 1919
Newsprint.
266,915 111,434
Paper
board.
Wrapping.
Fine.
81,024 184,897
63,353
31,923
211,934
176,855
207; 863
199,395
70,109
61,574
68,403
75,347
32,886
29,202
33,671
33,493
Book.
1920.
January
February
March
April
302,541
266,191
327,143
350,194
129,663
114,235
127,847
128,269
96,419
85,532
95,851
95,251
1920.
May
June
July
August
September.
Wood
pulp.
Newsprint.
363,815
337,115
312,334
305,965
293,913
129,230
130,380
129,853
128,81S
121,005
Paper
Book. board.
Wrapping.
Fine.
213,475
215,131
218,771
215,633
218,743
70,511
72,987
73,487
75,226
70,917
31,575
34.121
34,078
33.122
34,207
92,856
94.957
95;526
94,424
94,142
Sale of .revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands),
[Commissioner of Internal Revenue.]
Cigars.
Cigarettes.
Small.
Small.
Large.
Number.
Number.
September, 1919.. 575,777,829 53,735,960
Number.
4,283,247,387
Pounds.
36,623,005
1920.
January
February
March
4,528,760,833
3,536,117,847
4,373,778,917
33,608,313
31,531,460
38,422', 481
663,634,243
593,832,200
753,239,955
58,837,900
43,358,500
55,052,100
Cigars.
Manufactured
tobacco, i
Large.
1920.
April
Mav
June
July
August
September
Number.
663,577,579
676,227,828
708,112,284
678,751,956
672,020,289
678,640,116
Cigarettes.
Manufactured
tobacco.
Small.
Small.
Number.
56,548,853
59,943,280
52,735,587
51,766,100
48,171,240
50,175,580
Number.
3,756,989,397
3,953,345,380
4,088,834,583
3,053,336,563
3.569,397,443
3;557,482,503
Pounds.
34,327,970
34,875,839
34,23-1,058
30,988,646
32,138,941
32,094,569
Output of locomotives and cars.
[Locomotives, United States Railroad Administration; February on, reports from individual producers; cars, Railway Car
Association.]
Locomotives.
Output of cars.
Locomotives.
Domestic
shipped.
Foreign
completed.
Domestic.
Foreign.
Total.
1919.
September
Number.
Ill
Number.
51
Number.
19,980
Number.
4,302
Number.
24,282
1920.
January
February
March..
4S
43
45
22
85
59
4,650
3,960
3,053
1,914
1,066
2,040
6,564
5,026
5,093
1920.
April .
Mav
June
July....
August
September
Manufacturers'
Output of cars.
Domestic
shipped.
Foreign
completed.
Domestic.
Foreign.
Total.
Number.
36
83
99
122
114
126
Number.
96
112
72
54
125
69
Number.
2,313
2,792
2 780
2,731
3,409
3,955
Number.
1,934
1,402
731
434
1,210
1,203
Number.
4,247
4,194
3,511
3,165
4, fil9
5,058
Vessels built in United States, including those for foreign nations, and officially numbered by the Bureau of Navigation.
[Monthly average, 1911-1913 = 100.]
September, 1919
Number.
Gross
tonnage.
Relative.
202
378,858
1, 568
1920.
January
February
March
April
115
140
170
164
253,680
267,231
279,709
251,442
1, 050
1, 185
1, 157
1, 040
Relative.
1920.
May
June
July
August
September
185,145
267,076
217,239
259,210
261,962
1,073
1,084
1224
FEDERAL RESERVE BULLETIN.
NOVEMBER,
1920.
Tonnage of vessels cleared in the foreign trade.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Net tonnage.
American. Foreign.
Net tonnage.
Per
centRela- age
Relative. Ameri- tive.
can to
total.
Total.
1919.
September
2,627,480
2,481,676
5,109,156
131
51.4
203
1920.
January
February
March
1,933,385
1,702,407
2,040,031
1,949,798 3,883,183
1,628,212 3,330,619
2,040,538 4,080,569
100
92
105
49.8
51.1
50.0
197
202
188
American. Foreign.
1920.
April
Mav
June
July
August
September
2,504,038
2,729,790
3,199,274
3,302,538
3,616,267
3,421,531
1,960,634
2,436,247
3,141,913
3,616,052
3,929,602
3,513,599
Total.
4,464,672
5,166,037
6,341,187
6,918,590
7,545,869
6,935,130
Per
centRela- age
Relative. Ameri- tive.
can to
total.
115
133
163
178
194
178
222
209
200
189
190
195
56.1
52.8
50.5
47.7
47.9
49.3
Net ton-miles, revenue and nonrevenue.
[United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.]
36,361,653,000
August, 1919.
1920.
34,769,722,000
32,758,789,000
37,990,993,000
January
February
March
1920.
April
May
June
July
August
28,490,595,000
37,884,967,000
38,179,565,000
40,435,508,000
42,706,835,000
Commerce of canals at Sault Ste. Marie.
[Monthly average, May-November, 1911-1913=100.]
EASTBOUND.
Grain other than
wheat.
Bushels.
2,918,591
4,351,059
September, 1919.,
October, 1919
April
May
June
July
August
September
October
Relative.
1920.
6,008,000
11,904,942
3,076,986
3,133,419
2,315,909
3,102,770
7,198,311
134
35
35
26
35
81
Wheat.
Bushels.
Flour.
Relative.
Barrels.
Total.
Iron ore.
Relative.
Short tons.
Relative.
Short tons.
10,180,991
22,252,196
53
116
917,420
1,544,510
79
133
7,978,562
6,059,450
134
102
8,525,794 i
7,063,120
122
101
4,274,611
13,497,995
5,976,125
7,838,470
7,512,510
11,624,488
28,470,696
70
31
41
39
60
148
658,910
1,082,521
1,171,250
1,038,221
621,010
1,142,991
57
93
101
89
53
162,630
6,683,820
8,707,350
9,235,086
8,784,821
8,721,412
8,656,823
113
146
156
148
147
146
454,726
7,483,836 ,
9,153,884 !'
9,749,701
9,278,071 !
9,290,129 !
9,876,641
107
131
139
132
133
141
WESTBOUND.
Hard coal.
September, 1919
October, 1919
April
May
June
July
August
September
October
1920.
Soft coal.
Short tons.
Relative.
Short tons.
231,030
75
161
1,156,841
1,848,511
10,000
202,000
271,020
300,150
341,690
177,123
376,388
65
87
97
110
57
121
50,831
531,375
966,382
1,294,162
2,533,614
2,040,774
2,493,907
Total freight.
Total.
Relative.
28
50
67
132
106
130
Short tons.
Relative.
Short tons.
Relative.
1,677,123
2,650,799
67
107
10,202,917
9,713,919
107
102
82,483
937,374
1,493,935
1,827,978
3,147,219
2,458,002
3,123,658
38
60
73
127
99
126
537,209
8,421,210
10,647,819
11,577,679
12,425,290
11,748,131
13,000,299
89
112
122
131
124
137
1225
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
BANK DEBITS DURING SEPTEMBER OCTOBER.
Aggregate debits to individual account; as reported by 155 important clearing house associations, fluctuated between 8,069 millions for
the week ending October 13, and 10,535 millions for the following week. The weeks ending
October 6 and October 20 saw a much larger
volume of debits than the immediately preceding weeks, the reason being largely that the former included end-of-month and end-of-quarter
payments, while during the latter heavy Government transactions, including interest payments on Liberty bonds of the fourth issue,
took place.
A comparison with figures for corresponding
weeks in 1919 is made in the statement below,
separate totals being shown for New York City
and for the other 154 centers. For the centers
outside of New York City this year'sfiguresare
larger than last year's for every week included
in the statement. The difference of two days
in the dates included in each week, however,
causes considerable variations in the weekly
totals for 1920 as compared with 1919.
For New York City bank debits in 1920 were
much smaller than in 1919 for each of the four
weeks under review. No particular significance
attaches to the changes in the differences between the two years from week to week, as
these changes depend largely on the inclusion
or exclusion of a particular date, such as October 1 or October 15. Thus in 1919, October 1
was included in the week ending on that date,
with the result that the 1919 total for that
week exceeded that for the corresponding week
of 1920 by more than a billion, while this year
October 1 was included in the week ending
October 6, with the consequence that the total
for that week was only 416 millions less than
the total for the corresponding one in 1919.
[In millions of dollars.]
154 important centers,
other than New York
City.
New York City.
Week e n d i n g -
Sept. 22,1920
Sept. 24,1919
Sept. 29,1920
Oct. 1,1919
Oct.6,1920
Oct. 8,1919
Oct. 13, 1920
Oct. 15,1919
Oct. 20,1920
Oct. 22,1919
Excess
in 1920.
Excess
in 1919.
1920
1919
760
4,407
4,993
586
273
4,273
5,366
1,093
4 ; 998
5,414
416
3,885
4,680
795
5,712
404
1920
1919
} 4,966
4,206
4,365
4,092
4,839
4,280
559
4,184
4,166
18
j 5,227
4,651
576
5,308
In general, it should be kept in mind that the
significance of the totals of debits appears only
when a general trend over a comparatively
long period is studied, as weekly totals are
affected by many fortuitous circumstances, such
as holidays and payment dates, which often
result in radical changes in the volume of
business for a given week, without being indicative of changes in economic conditions.
Debits to individual accounts at clearing-house banks.
SUMMARY BY FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.]
Federal Reserve district.
1919
Week ending—
1920.
Week ending—
Number
of centers
included.
Sept. 29.
Oct. 6.
Oct. 13.
Oct. 20.
Oct. 1.
Oct. 8.
Oct. 15.
Oct. 22.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
:...
San Francisco.
13
7
13
13
7
15
23
5
11
15
13
20
463,659
4,412,645
425, 955
369,096
169,680
236,286
1,125,493
211,587
188,045
325,716
173,790
536.691
495,287
5,179,661
468, 649
430, 786
197, 078
252,235
1,234,896
239, 734
213,688
343,513
187,127
594,353
395,344
4,023,467
386,362
362,391
170,109
226,560
1,055,357
227,592
211,474
320,813
170,675
517,938
553,314
5,479,619
501,270
449,211
200,106
263,978
1,411,333
258,912
223,156
345,806
195,831
642,261
421,702
5,499,882
422,931
360,714
178,973
228,927
1,009,278
210,854
188, 662
286, 751
145, 067
504,345
471,787
5,551,003
422,452
363,309
186,977
246,304
1,075,203
230,684
191,720
301,029
149,532
504,336
479,473
4, 808,777
356,478
364,290
188,322
248,039.
1,010,118
248,324
190,621
287,602
161,922
502,671
576,899
5,865,13G
455,187
356,055
206,785
276,531
1,134,212
259.728
195,231
300,182
176,803
550,959
Total....
155
8,638,643
9,837,007
8,069,082
10,534, 797
9,458,086
9,694,336
8,846,637
10,363,712
NOTE.—Figures for the following center?, while shown in the body of the statement, are not included in the summary, complete data ft
for
these centers not being available for each wreek under review: Manchester, N. H.; Cheyenne, Wyo.; Sioux Falls, S. Dak.; Huntington, W. Va.; Mi
line, 111.; Washington, D. C.; Pittsburgh, Pa.
1226
FEDERAL RESERVE BULLETIN.
NOVEMBER,, 1920.
Debits to individual account at clearing-house banks—Continued.
DATA FOR EACH REPORTING CENTER.
[In thousands of dollars.]
1920
W e e k ending—
1919
W e e k ending—
Federal Reserve district.
Sept. 29.
No. 1—Bos ton:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
Manchestor
New Bedford
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York...
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil City
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Huntington
Norfolk
Raleigh.
Richmond
Washington
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7—Chicago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur
DesMoines
Detroit
Dubuque
Oct. 6.
Oct. 13.
Oct. 20.
Oct. 1.
Oct. 8.
Oct. 15.
Oct. 22.
4,033
302.343
7,850
28,281
4,166
5,473
4 532
7,331
17,508
8,913
36,137
16,703
6,947
17,974
5,245
308,505
8,680
31,682
4,778
6,148
5 721
7,169
17,508
11,063
44,960
17,736
10,800
21,013
4,036
246,755
6,407
22,050
3,574
5,212
4,545
6,374
17,325
10,191
33,741
14,274
8,200
17; 205
4,508
365,609
9,328
27,205
5,075
6,886
5,762
8,999
25,632
10,406
48,015
19,043
9,400
23,208
3,184
271,665
7,522
27,374
4,171
4,948
3,200
311,552
8,797
27,832
3.941
5,017
3,100
324,726
8,398
20,794
3,426
5,191
3,416
382,293
10,177
25,316
4,135
5,916
6,812
16,714
9,635
31,426
15.483
6; 719
16,049
7,180
18,318
9,710
34,952
16,449
7,217
17,622
7,236
17,396
10,255
36,772
17,717
6,967
17,495
9,070
20,162
7,788
51,008
20,628
6,547
30.443
18,293
4,240
64,410
4,272,957
5,506
29,317
17,922
22,170
5,299
84,646
4,998,459
5,064
41,203
22,820
18,757
4,606
63,109
3.885,092
4,968
27,278
19,657
22,628
4,815
81,874
5,308,198
5,960
35,563
20,581
18,420
3,346
62,965
5,365,713
4,217
28,873
16,348
21,860
3,893
62,091
5,414,266
4,412
28,222
16,259
19,979
3,357
59,628
4,680,034
5,131
28,049
12,599
22,569
3,976
72,122
5,712,080
5,879
32,126
16,378
4,460
5,411
1,628
5,337
5,902
347,015
4,274
15,950
12,090
7,952
4,021
7,163
4,752
3,950
6,422
2,670
4,997
7,043
376,799
5,176
21,174
12,309
10,229
4,878
7,760
5,242
3,900
5,785
1,042
5,110
5,465
306,136
3,385
17,795
11,078
10', 531
4,176
7,651
4,308
3,640
6,947
2,789
5,674
6,580
406,428
5,799
17,613
15,403
10,891
5,638
8,389
5,479
3,039
4,759
3,900
3,465
5,342
345,454
4,269
16,510
9,929
8,287
3,549
10,453
3,975
3,540
4,666
4,458
3,859
5,919
345,720
4,045
13,895
10,098
7,859
3,722
10,255
4,416
2,922
2,431
4,226
3,142
5,347
283,458
3,841
13,192
10,634
9,394
3,190
11,086
3,615
3,612
5,504
4,075
3,404
6,235
377,703
4,555
12,622
11,093
7,776
3,690
10,615
4,303
21,490
63,263
160,104
29,511
11,138
7,703
6,662
4,870
3,721
234 724
3,827
29,968
9,651
17,188
23,891
70,429
200,913
30,963
12,327
9,033
6,843
5,164
3,999
234 208
3,635
34,578
9,935
19,076
19,008
59,136
167,912
27,309
11,743
7,612
6,400
4,448
2,534
3,668
26,661
8.524
17, 436
22,419
76,273
210,185
34,790
11,831
9,001
7,113
5,719
4,785
257,026
3,614
36,658
11,369
15,454
24,001
63,081
157,980
27,445
12,131
7,171
6,256
4,516
2,412
186.596
3,537
27,455
7,096
17,633
26,136
55,490
162,109
28,872
11,465
7,440
4,560
4.419
3; 407
156,107
2,891
30,963
7,656
17,901
18,639
57,562
167,589
30,184
11,874
6,320
6,664
3,865
2,610
171,756
3,593
31,365
9,213
14,812
25,546
63,902
162,212
30,396
11,832
7,326
6,190
4,891
3,301
192,566
3,426
22,074
11,527
13,442
106,171
5,500
6,704
5,756
5 856
18^309
4,500
22,740
33,961
124,101
7,461
7,360
6,928
6 196
19^359
4,280
27,589
38,992
98,298
6,500
7,808
5,954
5 618
19^166
4,280
28,103
36,560
123,995
6,875
8,222
6,356
6,893
21,059
4,300
29,299
39,664
103,600
9,380
5,800
8,797
105,051
10,118
4,300
9,753
103,178
10,540
6,400
8,938
111, 169
12,713
4,000
10,714
17,712
4,600
29,084
21,315
4,800
31,640
20,687
4,963
33,616
22,243
5,000
40,946
26,942
8,835
16,687
10,295
12,465
6,205
6,873
7,393
4,635
22,442
86,600
2,416
17,669
5,433
1,396
31,243
9,598
18,745
12,343
14,019
8,064
6,722
8,897
5,276
29,982
79,029
2,518
17,435
6,560
1,804
30,056
9,370
17,554
12,570
13,282
6,569
6,265
8,088
5,180
23,906
68,054
2,370
15,580
6,068
1,648
32,851
10,054
19,203
12,196
14,780
7,166
6,999
7,850
5,400
26,923
94,096
2,440
17,058
5,259
1,703
32,294
11,963
15,630
11,103
12,006
6,627
8,844
6,792
5,296
21,351
70,782
2,334
18,481
4,336
1,088
34,632
14,072
15,401
12,220
10,981
6,966
9,094
8,344
6,562
23,238
72,919
2,618
22,350
4,856
2,051
38,772
12,858
15,139
13,032
11,265
6,855
9,809
8,001
6,181
22,367
71,809
2,273
22,452
4,805
2,421 |
41,388
15,879
16,241
12,130
12,053
6,642
11,835
8,182
6,183
23,208
84,556
2,386
28,664
4,800
2,384
3,703
2,770
12,197
730,626
7,692
4,104
19,450
141,545
3,385
3,868
3,001
11,995
812,003
9,519
4,017
21,692
151,212
4,054
3,013
2,855
12,400
672,649
7,489
3,601
20,778
131,401
3,412
3,360
3,014
12,260
924,767
7,485
4,332
20,911
195,167
3,829
2,545
2,904
7,740
654,015
8,051
3,471
19,531
133,288
2,265
3,164
2,896
12,039
700,787
9,077
4,180
25,337
136,873
2,815
2,917
2,515
7,055
626,381
7,008
3,117
22,229
153,759
2,578
3,269
3,042
9,759
739,158
8,024
3,900
23; 165
145,039
2,977
1227
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Debits to individual account at clearing-house banks—Continued,
DATA FOR EACH R E P O R T I N G CENTER—Continued.
[In thousands of dollars.]
1920
Week ending-
Federal Reserve district.
Sept. 29.
No. 7—Chicago—Continued.
Flint
Fort Wayne
Grand Rapids
Indianapolis
Jackson
Kalamazoo
Lansing
Milwaukee
Moline
Peoria
Rockford
Sioux City
South Bend
Springfield
Waterloo
No. 8—St. Louis:
Evansville
Little Rock
Louisville
Memphis
St. Louis
No. 9.—Minneapolis:
Aberdeen
Billings
Duluth
Fargo
Grand Forks
Great Falls
Helena.
Minneapolis,
St. Pau
aul...
Sioux Falls.
Superior
Winona
No. 10.—Kansas City:
Atchison
Bartlesville,
Cheyenne
Colorado Springs
Denver
Joplin
Kansas City, Kans..
Kansas City, Mo
Muskogee
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
No. 11.—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana
Tucson
Waco
No. 12.—San Francisco:
Berkeley
Boise
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Spokane
Stockton
Tacoma
Yakima
Oct. 6.
Oct. 13.
1919
Week ending—
Oct. 2a
Oct. 1.
Oct. 8.
Oct. 15.
Oct. 22.
8,193
7,490
20,990
35,321
5,095
5,531
5,391
70,461
2,492
9,389
6,233
13,521
4,927
3,563
3,916
10,319
8,272
21,312
40,207
5,741
7,004
6,782
65,887
2,703
10,370
7,145
16, 744
4,739
4,414
4,599
7,816
6,985
21,578
33,020
4,303
5,577
5,828
70, 465
2,857
8,484
6,391
15,715
5,197
3,560
3,840
8,940
9,244
22,895
42,553
5,711
6,435
6,117
86,371
3,125
11,089
6,475
16,944
6,130
2,997
4,307
10,208
5,732
18,015
30,342
4,239
3,756
5,587
56, 642
9,553
6,208
18,686
30,596
4,330
4,273
5,735
55,581
8,433
5,572
16,541
33.111
4,317
4,175
6,078
61,493
10,736
7,480
1.8,684
34,578
5,421
4,193
6,480
66,962
9,092
4,964
14,146
3,671
5,705
3,369
9,507
6,608
14,853
4,639
3,707
3,759
9,670
5,883
14.458
5^208
4,382
3,238
10,217
5.684
14; 720
2,111
4,759
3,854
5,120
8,650
27,556
25,839
144,422
5,150
17,011
29,418
28,856
159,299
5,292
11,963
25,439
31,800
153,098
5,340
15,186
32,284
35,919
170,183
4,451
8,907
30,077
27,052
140,367
4,164
11,899
30,983
34,432
149,206
4,647
13,097
32,708
42,099
155,773
4,620
11,762
34,653
42,007
166,686
1,932
2,036
36,603
3,688
1,651
2,892
2,314
100,615
33,105
6,099
2,170
1,039
2,221
2,500
40,115
4,811
2,247
2,915
2,962
115,113
37,504
6,274
1,980
1,320
2,153
2,440
39,969
4,505
2,057
2,331
2,671
116,725
35,076
8,285
2,021
1,526
1,978
3,200
40,030
4,135
2,272
2,591
2,776
110,562
51,572
6,700
2,188
1,852
1,930
2,226
23,892
9,181
2,226
2,174
2,531
98,807
42,102
2,465
2,385
24,482
9,336
2,609
2,773
3,431
103,328
37,227
1,988
2,555
23,498
9,860
2,708
2,142
2,817
101,901
39,806
2,154
2,823
24,534
10,147
2,376
2,441
2,765
104,046
39,690
2,189
1,404
2,169
1,515
2,131
1,215
2,081
2,174
563
3,933
2,305
3,474
50,202
3,381
4,236
99,423
5,100
27,926
56,768
4,136
18,085
3,343
30,425
14,721
570
3,485
2,756
3,651
56,171
3,874
4,318
102,651
5,870
29,408
58,887
6,179
18,831
4,633
27,822
17,163
543
3,584
1,990
3,584
48,351
3,989
4,410
94,577
5,496
30,287
54,565
7,016
17,638
4,301
28,843
13,629
504
3,70-4
1,913
3,123
51,477
3; 703
4,501
112,355
7,328
24,777
61,608
7,247
18,933
4,399
29,026
13,121
448
3,477
510
3,212
2,7
541
3,193
2,841
34,068
3,206
3,322
88,571
4,580
17,764
66,295
4,258
14,177
5,234
24,778
13,732
2,704
31,875
3,479
3,422
92.754
6,002
19,328
73,564
6,264
17,330
6,328
21,841
12,416
3,085
34,112
3,660
3,421
83,484
5,775
18,344
66,359
4,061
17,437
6,311
26,586
11,644
3,143
35,218
3,526
3,322
91,887
5,977
19,619
66,407
3,462
21,457
5,932
23,696
12,802
1,523
5,193
4,474
43,744
8,089
28,440
13,540
43,509
8,453
8,172
1,725
1,708
5,220
2,228
5,263
5,026
50,961
8,814
29,880
13,835
46,369
9,540
6,936
1,892
1,686
4,697
2,030
4,680
4,797
45,459
9,?36
28,997
13,529
36,061
8,247
8,220
2,157
1,490
5,772
2,043
5,300
5,621
54,206
9,276
30,432
13,708
45,905
9,743
9,413
2,210
2,180
5,794
1,372
3,395
3,869
44,960
6,517
22,831
8,749
33,252
6,696
6,220
1,773
988
4,445
1,910
4,690
3,948
43,485
7,995
24,217
10,054
30,418
8,373
6,666
1,744
1,156
4,876
1,590
3,602
4,138
50,805
8,540
24,822
10,304
35,111
7,949
8,573
1,793
1,043
3,652
1,937
4,220
4,427
53,532
25,387
13,223
40,934
7,824
6,579
2,089
1,240
5,889
2,874
2,662
13,218
4,938
96,214
19,675
4,800
4,473
44,637
2,603
19,154
17,517
7,447
214,370
6,227
43,637
13,189
5,880
10,230
2,946
3,238
3,470
15,597
5,984
101,831
24,265
5,400
5,615
48,567
3,153
18,113
20,571
9,204
238,649
7,047
46,866
15,602
6,430
11,240
3,511
2,518
3,470
16,563
4,931
88,8S6
21,871
4,486
4,358
47,480
2,587
15,367
15,907
7,856
201,449
6,794
39,228
14,202
5,777
11,004
3,194
3,643
3,130
19,452
6,582
109,784
23,229
4,686
5,342
53,890
3,153
21,651
19,255
9,738
261,577
8,312
49,141
16,563
6,913
12,041
4,179
2,314
2,810
10,132
3,450
81,000
14,192
4,686
4,849
46,463
2,579
16,264
16,883
4,568
199,631
7,102
53,801
14,554
5,555
10,471
3,041
2,469
3,407
11,069
3,946
74,690
20,150
4,239
4,122
51,959
3,058
15.755
14,399
5,368
191,786
7,684
53,666
15,006
5,952
11,797
3,814
2,334
3,435
11,651
3,729
74,120
16,450
4,159
3,863
56,040
2,958
16,305
17,749
5,162
192,515
7,105
51,993
14,524
3,650
11,634
3,295
2,696
3,764
14,077
3,899
86,318
18,595
4,330
3,982
55,096
3,729
16,464
19,749
6,836
205,646
9,419
58,270
15,297
6,159
12,100
4,533
9,522
1228
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS
DURING SEPTEMBER, 1920.
Discount and open-market operations of the The amount of such accommodation extended
Federal Reserve Banks during September and or received is also shown.
August, 1920 and 1919, are shown in summary
[In millions of dollars.]
form for the system as a whole in the table
below. Detailed figures for each Federal ReInter-Federal ReVolume of discounts
serve B a n k acserve Bank for the most recent month are
for member banks.
commodation (net
given on pages 1230 and 1231.
amount).
Summary of discount and open-market operations of Federal
Reserve Banks in September and August, 1920 und 1919.
Federal Reserve Bank.
September.
[In thousands of dollars.]
1920
September.
August.
1919
SepAugust.
tember.
Total discount and open-market
purchases
8,446,264 8,366,565 8,801,291 6,808,747
Discounts—Total
7,298,969 7,982,524 6,726,155 6,433,662
Secured by. Government war
obligations
4,164,115 4,932,902 6,238,286 6,171,309
Otherwise secured and unse3,134,854 3j\, 049,622 487,869 262,353
cured—Total
17,131
Trade acceptances
13,985 10,619
6,427
Bankers' acceptances
7,945
5,491
388
182
All other (commercial n. e.
s., agricultural and livestock paper)
3,109,778 3,030,146 476,862 255,744
Average maturity (in days)
9.44
14.27
9.33
12.38
Average rate (365-day basis),
6.33
percent
4.18
4.12
6.19
Open-market operations:
257,988 259,708 205,048 194,211
Bills purchased—Total
Bankers' acceptances—Total... 249,268 242,012 201,962 192,405
In the domestic trade
51,027 48,557 36,654
52,961
In the foreign trade
196,307 190,985 153,405 155,751
Trade acceptances—Total
2,773
12,270
1,425
2,130
In the domestic trade
479
267
203
In the foreign trade
12,270
2,294
1,158
1,927
Dollar exchange
5,426
381
313
6,590
Average maturity (in days) —
36.78
46.15
50.73
41.71
Average rate (365-day basis)
percent
6.04
6.04
4.25
4.25
United States securities purchased:
Bonds
13
Certificates of indebtedness... 889,307 124,3201,870,088 180,874
Discount operations of the Federal Reserve
Banks in September aggregated 7,299 million
dollars, or 684 millions less than the 7,983
millions reported the month before. During
September and August, 1919, corresponding
totals were 6,726 and 6,434 millions. These
figures are exclusive of bills discounted for
other Federal Reserve Banks, which totaled
440 millions during September and 298 millions
during August of this year, and 189 millions
during September and 196 millions during
August, 1919.
The following statement shows the volume
of discounts for each Federal Reserve Bank
during September and August of the current
year. The banks are arranged in two groups—
those extending accommodation to other Federal Reserve Banks and those receiving accommodation from other Federal Reserve Banks.
Excess
SepAugust. tember
over
August.
Banks extending accommodation to other Federal Reserve Banks:
Boston
Philadelphia
Cleveland
San Francisco
Total
Excess
September
over
August.
Accommodation extended.
385
419
164
245
417
521
198
228
— 32
-102
- 34
+ 17
171
48
212
160
10
157
10
+ 11
+38
+ 55
1,213
1,364
-151
431
337
+94
Banks receiving accommodation from other Federal Banks:
4,412 5,092
New York.
281
265
Richmond.. .
208
208
Atlanta
622
511
Chicago
207
206
St. Louis . .
74
81
Minneapolis
158
145
Kansas City
124
111
Dallas
-10
Accoinmodatic n recerv^ed.
-680
+ 16
+ 111
+
- \
III
36
95
52
30
48
33
57
80
31
80
42
8
48
35
27
66
+ 5
+ 15
+ 10
+ 22
- 2
+30
+ 14
Total . .
6,086
6,619
-533
431
337
+94
Grand total
7,299
7,983
-684
431
337
+94
The volume of member bank discounts by the
Federal Reserve Banks granting accommodation to other Federal Reserve Banks was about
151 millions smaller in September than in
August, the San Francisco bank being the only
one in that group for which a larger volume of
discounts is shown for the most recent month.
At the same time the total accommodation
granted by the four banks in this group to the
eight other Federal Reserve Banks increased
by 94 millions (net). On the other hand, the
volume of discounts granted to their member
banks by the Federal Reserve Banks receiving
accommodation from other Federal Reserve
Banks was larger in September than in August
in the case of every bank, except those of New
York, Atlanta, and Minneapolis. In the case
of the New York bank it is to be noted that the
volume of discounts declined by 680 millions.
Discounts of paper secured by Government
war obligations, including Treasury certificates,
were smaller by 769 millions in September
than in August, while all other discounts increased by 85 millions. Trade acceptances
discounted totaled 17 millions in September,
as against 14 millions in August; bankers' acceptances totaled 8 millions in September,
compared with 5 millions in August; and all
other discounts, including commercial, agricultural, and live-stock paper, aggregated
3,110 millions, as against 3,030 millions the
month before, and 477 millions in September
of last year.
The average maturity of all the paper discounted in September figures out at 14.27 days
after discount by the Federal Reserve Banks,
compared with 12.38 days in August of this
year and 9.44 days in September of the year
before. An advance from 6.19 to 6.33 per
cent in the average rate of discount is noted,
the average rates for the two corresponding
months in 1919 being 4.12 and 4.18 per cent.
Total bills purchased in September were
about 2 millions less than the month before,
increases of about 7 millions in bankers' acceptances and of about 1 million in dollar
exchange purchased being more than offset
by a decline of 10 millions in trade acceptances
bought in the open market. Of the bankers'
acceptances purchased 53 millions were in the
domestic trade and 196 millions in the foreign
trade, while of the 2 millions of trade acceptances purchased all but about $200,000 were
in the foreign trade. The average maturity
of all paper purchased by the Federal Reserve
Banks in September was 41.71 days, compared
with 36.78 days in August. The average rate
charged on acceptances remained unchanged
at 6.04 per cent.
During the month under review 28 banks
were added to the membership of the system,
the total number of member banks increasing
from 9,487 on the last day of August to 9,515
on the last day of September, while the number of member banks accommodated through
discount of paper further declined from 4,780
in August to 4,768 in September. The number of member banks in each district at the end
of August and of September and the number
accommodated during each of the two months
are shown in the following statement:
Member banks in
district.
Member banks
accommodated.
Federal Reserve Bank.
31.
September.
434
776
694
866
610
436
1,404
569
988
1,080
841
817
4S9
775
693
866
609
445
1 400
568
985
1 073
83S
808
219
323
348
258
356
320
772
303
410
547
521
391
201
323
365
282
371
294
742
285
488
488
527
414
9,515
9 487
4,768
4,780
Sept. 30.
Boston
New York.
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis .
Kansas City
Dallas
San Francisco
Total
1229
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Aug
August.
Federal Reserve Bank holdings of discounted
and purchased paper, by classes of paper, at the
end of September and of August, 1920, and
1919, are shown in detail on page 1233, and
are summarized in the following table:
Summary of discounted and purchased paper held by the Federal Reserve Banks at the end of September and of Augustt
1920 and 1919}
[In thousands of dollars.]
1920, end of—
" August.
1919, end of—
Septem- August.
ber.
Discounted paper, total
2,704,464 2,667,127 1,882,282 1,815,134
Secured by Government war
obligations
,
1,220,423 1,314,830 1,572,503 1,609,296
Otherwise secured and unsecured, total
1,484,0411.,352,297 309,779 205,838
Agricultural paper
32,932
120,998 117,050
30,363
Live-stock paper
103,426
99,228 27,273
27,538
Trade acceptances
22,080
19,476 10,961
9,001
Bankers' acceptances
8,072
9,013
439
479
Commercial paper, n. e. s. 1,229,465 ,107,530 238,134 138,497
Purchased paper, total....
301,211 307,104 300,129 367,163
Bankers' acceptances, total... 298,223 299,960 297,153 365,373
Member banks
200,976 202,868 208,784 264,827
Nonmember trust companies
8,255
3,009
3,111
2,631
Nonmember State banks
38,939 41,499 24,821 32,665
Private banks
29,788 31,225 33,420 43,815
Foreign banks, branches
and agencies
20,955
25,511
21,737
21,873
Trade acceptances, total
2,988
7,144
1,790
2,976
Domestic
207
1,334
561
591
Foreign
1,229
2,385
2,781
5,810
1
For discounted paper, the figures are for the last Friday of each month;
for purchased paper, for the last day of each month.
Among the principal changes between August and September in holdings of discounted
paper the following are to be noted: A decrease
of 94 millions in paper secured by Government
war obligations and an increase of 132 millions
in paper not so secured. Holdings of agricultural paper were about 4 millions larger at
the end of September than at the end of August,
the most recent amount of 121 millions being
comparable with 33 millions shown for the end
of September, 1919. Holdings of live-stock
paper show an increase of 4 millions as compared with the end of August, 1920, and of 76
millions as compared with the end of September, 1919. Holdings of discounted trade
acceptances were about 3 millions larger at the
end of September than a month earlier, while
holdings of discounted bankers' acceptances
declined by about 1 million. Holdings of
commercial paper proper increased from 1,108
at the end of August to 1,229 millions at the
end of September, compared with 238 millions
a year earlier.
Holdings of purchased acceptances at the
end of September were about 301 millions,
marking a fm ther reduction of 6 millions from
the total of 307 millions shown for the end of
August. Bankers' acceptances declined by
about 2 millions from the end of August to the
end of September and were about 1 million
1230
FEDERAL RESERVE BULLETIN.
larger at the latter date than at the end of
September of the past year. Of the bankers'
acceptances held at the end of the month
67.4 per cent were accepted by member banks,
14.1 per cent by nonmember trust companies
and State banks, 10 per cent by private banks,
NOVEMBER, 1920.
and 8.5 per cent by foreign bank branches
and agencies. Holdings of trade acceptances
decreased from 7 millions at the end of August
to 3 millions at the end of September, all but
$207,000 of the latter amount being acceptances drawn in the foreign trade.
Total discount and open-market operations of each Federal Reserve Bank during the month of September, 1920.
United States securities
purchased.
Federal Reserve Bank.
$385,188,282
4,412,393,284
418,472,197
164,377,331
281,011,950
207,733,821
621,677,416
207,292,854
73,704,677
158,104,969
124,038,279
244,973,791
$31,989,930
111,729,554
1,502,624
24,535,676
3,888,254
2,039,421
32,332,316
1,345,000
552,563
2,857,110
532,500
•44,683,641
$60,102,500
669,964,500
9,063,000
134,518,000
1,500
7,298,968,851
6,726,155,257
60,427,824,934
56,408,280,795
257,988,589
205,048,335
2,450,863,929
1,748,511,692
889,307,000
1,870,087; 500
6,256,516,000
3,848,462,000
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total,
Total,
Total,
Total,
September, 1920
September, 1919
9 months ending Sept. 30, 1920
9 months ending Sept. 30, 1919
Total.
Bills discounted Bills bought in
for member
open market. Bonds and
banks.
Certificates of
Victory
indebtedness.
notes.
1
2,951,000
3,996,500
2,128,500
292,500
6,289,000
$300
240,600
1,751,975
September,
1920.
$477,280,712
5,194,087,338
429,037,821
323,431,007
284,901,704
209,773,242
656,960,732
212,634,354
76,385,740
161,254,579
124,570,779
295,946,432
September,
1919.
$365,574,774
4,419,116,180
1,020,490,694
503,632,546
366,747,953
235,739,496
1,054,796,746
215,577,975
132,942,610
146,971,107
125,337,284
214,364,027
8,446,264,440
8,801,291,392
19,135,445,463
162,007,007,462
Includes $1,000 of municipal warrants.
Average daily amount of earning assets held by each Federal Reserve Bank during September, 1920, earnings from each class of
earning assets, and annual rates of earnings on basis of September, 1920, returns.
Average daily holdings of—
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Discounted
bills.
,
Total, September, 1920
Total, September, 1919
Purchased
bills.
i $181,125,922
'
869,681,948
|
178,134,074
> 211,611,413
!!
109,403,831
121,759,811
I
451,341,396
!
114,560,945
!
83,596,000
j
110,206,323
76,236,838
169,390,708
$27,778,971
96,822,192
15,319,227
47,819,815
7,401,613
1,623,817
46,143,936
1,758,667
1,159,000
3,613,080
625,917
! 2,677,049,209
1 1, 777,333,922
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, September, 1920
Total, September, 1919
Discounted
bills.
United
Purchased States
sebills.
curities.
Total.
63,797,654
$30,315,242
93,641,783
34,288,950
30,545,833
13,493, 950
15,781,924
44,156,517
18,672,966
8,669,000
21,699,933
1,229,933
13, 999, 900
$239,220,135
1,060,145,923
227,742,251
289,977,061
130,299,394
139,165,552
541,641,849
134,992.578
93,424; 000
135,519,336
78,092,688
247,188,262
313, 863,889
353,935,606
326,495,931
340,245,819
3,317,409,029
2,471,515,347
Earnings from—
Federal Reserve Bank.
United States
securities.
Annual rates of earnings on—
Total.
$957,429
4,526,208
831,458
1,082,861
521,987
565,612
2,447,656
538,614
459,138
542,931
353,987
829,680
$139,676
482,361
75,217
238,467
37,012
8,119
226,655
8,997
5,794
17,864
3,131
315,325
$61,658
180,924
64,518
66,342
22,236
26,048
76,283
32,517
14,333
37, 709
21,178
24,533
$1,158,
5,189,
971,
1,387,
581,
599,
2,750,
580l
479,
598,
378,
1,169,
13,657,561
6,095,904
1,558,618
1,243,488
628,279
605,669
15,844,458
7', 945,061
Discounted
bills.
PurUnited
chased States se- Total.
bills. curities.
Per cent. Per cent. Per cent. Per cent.
6.45
5.91
6.13
2.48
6.35
5.97
6.08
2.36
5.69
5.20
5.99
2.29
6.22
5.82
6.07
2.64
5.82
5.44
6.10
2.01
5.67
5.26
6.10
2.01
6.62
6.20
5.99
2.11
5.74
5.24
6.24
2.12
6.70
6.26
6.10
2.02
6.01
5.39
6.03
2.12
5.66
5.18
6.00
2.09
5.98
5.77
6.03
2.14
6.22
4.17
6.06
4.27
2.35
2.17
5.83
3.91
.NOVEMBER,
1231
FEDERAL RESERVE BULLETIN.
1920.
Bills discounted during the month of September, 1920, distributed by classes; also average rates and maturities of bills dis counted by each Federal Reserve Bank.
Federal Reserve Bank.
Boston
New York
Philadelphia
•Cleveland
Richmond
Atlanta
Chicago
St.
"• TLouis.,
'
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total, Sept., 1920
Total, Sept., 1919
1
Member banks' collateral
notes.
Customers'
paper
secured by
Trade acGovernment Secured by
ceptances.
war obliGovernment Otherwise
gations.
war oblisecured.
gations.
$10,926,790
j 57,032,668
13,018,592
! 4,004,509
i 2,468,989
8,809,663
| 11,727,046
4,665,238
1,149,113
5,039,555
2,277,296
2,809,072
$293, 743,720
2,214, 587,510
260, 421,244
120, 491,180
229, 190,568
132, 100,770
304, 655,060
112, 442,492
31, 108,730
95, 758,298
87, 970,421
157, 716,711
123,928,531
122,478,924
4,040,186,704
6,115,822,300
Bankers'
accept-
$170,417
$23,373
$64,000 13,988,969 ^2,243,958
230,744
30,000
75,000
87,000 2,137,598 1,567,720
3,144,100 1,207,388
758,042
713,000
124,584
6,529,785 2,249,647
584,700
822,756
846,775
70,520
165,745
1,976,711
1,601,089
766,000
46,550
1,624,917
690,888
181,222
345,600 3,107,245 2,251,436
15,351,633
29,801,567
17,130,528
10,608,322
7,945,318
388,454
2
Includes $1,322,581 in the foreign trade.
All other
(commercial,
n. e. s., agricultural, and
live-stock
paper).
Average Average
rate
maturity (365-day
in days. basis).
Total.
$80,323,982 $385,188,282
2,134,476,179 4,412,393,284
418,472,197
144,696,617
164,377,331
36,089,324
281,011,950
45,000,905
207,733,821
65,227,762
621,677,416
295,931,178
207,292,854
88,445,073
73,704,677
39,304,378
158,104,969
54,893,477
124,038,279
31,293,535
244,973,791
, 78,743,727
12.81
7.63
10.93
15.93
15.29
26.21
39.39
27.59
42.99
33.72
28.43
26.00
Per cent.
6.50
6.47
5.58
5.82
5.98
6.04
6.76
6.06
6.81
6.78
5.88
5.97
7,298,968,851
6,726,155,257
14.27
9.43
4.18
3,094,426,137
447,055,690
6.39
Includes $55,110 in dollar-exchange bills.
Bankers' and trade acceptances in the foreign and domestic trade and dollar-exchange bills purchased during September, 1920;
also average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Trade acceptances.
Federal Reserve Bank.
Domestic.
Boston
New York
Philadelphia
Cleveland
Richmond.
Atlanta
€hicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, Sept., 1920...
Total, Sept., 1919...
Amount
$7,792,572
18,940,716
157,000
5,734,381
516,773
1,405,003
7,062,075
790,000
152,563
17,500
532,500
9,859,548
Foreign.
Total
Domestic. Foreign.
823,;, 897,358 $31,689,930
86,597,407
105,538,123
""'
1,215,624
1,372,624
18,426,295
24,160,676
3,371,481
3,888,254
634,418
2,039,421
25,114,482
32,176,557
555,000
1,345,000
400,000
552,563
2,839,610
2,857,110
532,500
33,256,021 43,115,569
52,960,631196,307,696
48,557,231153,405,199
87,525
380,547
468,072
1,100,000
203,771
479,592
1,926,831
2,293,845|
2,130,602
2,773,437
6,589,660
312,468
257,988,589
205,048,335
$1,662,530
$300,000
4,528,901
130,000
375,000
Average Average
rate
maturity (365-day
in days. basis).
Total
bills purchased.
$31,989,930
111,729,554
1,502,624
24,535,676
3,888,254
2,039,421
32,332,316
1,345,000
552,563
2,857,110
532,500
44,683,641
$116,246 $1,546,284
249,268,327
201,962,430
Total.
Dollarexchange
bills.
155,759
35.63
. 31.31
54.66
51.88
46.07
41.24
58.98
28.64
78.50
52.44
34.20
52.54
Per cent.
6.16
5.97
6.13
6.03
6.08
6.08
6.08
6.29
6.08
6.12
6.08
6.05
41.71
46.15
6.04
4.25
of bills discounted and acceptances bought by each Federal Reserve Bank during July, August, and September,
1920 and 1919, distributed by maturities.
15-day maturities.
Federal Reserve Bank.
Discounts.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Acceptances.
30-day maturities.
Total.
Discounts.
Accept-
60-day maturities.
Total.
Discounts.
Accept-
Total.
$892,249,618 $33,020,048 $925,269,666 1151,874,459 $11,916,055 $63,790,514 $84,650,290 $25,068,039 $109,718,329
13,094,658,054 178,327,724 13,272,985,778 66,549,677 54,558,752 121,108,429 85,547,990 68,847,628 154,395 618
1,351,566,354
322,807 1,351,889,161 13,656,262
1,240,208 14,896,470 11,969,183 6,950,918 18,920,101
476,794,447 4,895,737
481,690,184 11,141,413 12,104,670 23,246,083 19,862,352 32,679,373 52,541,725
683,477,032
298,000
683,775,032 17,550,090 3,890,350 21,440,440 44,029,454 2,396,595 46,426,049
440,573,686
640,000
441,213,686 18,977,852
1,274,280 20,252,132 43,762,486 1,329,928 45,092,414
933,359,778 16,635,203
949,994,981 67,592,465 13,684,275 81,276,740 219,236,188 35,938,425 255,174,613
399,740,327 2,630,770
402,371,097 19,753,782
145,000 68,626,605
30,000 19,783,782 68,481,605
107,754,545
107,754,545 18,053,816
175,274 28,708,965
259,470 18,313,286 28,533,691
309,577,732
348,352
309,926,084 16,420,595
658,692 17,079,287 41,912,696 6,329,403 48,242,099
248,729,306
248,894,306 9,261,548
165,000
265,000 9,526,548 29,415,819 1,285,000 30,700,819
569,366,474 4,719,716
574,086,190 15,039,439 15,979,636 31,019,075 38,100,143 37,585,623
75,685,766
Total, 3 months ending:
19,507,847,353 242,003,357 19,749,850,710 325,871,398 115,861,388 441,732,786 715,501,897 218,731,206 934,233,103
Sept. 30,1920
19,724,933,943 139,693,055 19,864,626,998 77,702,507 103,618,943 181,321,450 160,421,409 189,829,765 350,251,174
Sept. 30,1919
1232
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Amount of bills discounted and acceptances bought by each Federal Reserve Bank during July, August, and SeptemberT
1920 and 1919, distributed by maturities—Continued.
Over 90-day maturities.
90-day maturities.
Federal Reserve Bank.
Acceptances.
Acceptances.
Total.
Total.
Acceptances.
Total.
Discounts.
$69,076,352
359,943,810
53,535,216
72,027,966
55,844,167
86,816,614
417,843,249
115,368,538
68,044,100
68,836,231
46,105,304
113,690,911
$5,135
52,109
17,004
428,107
2,007,192
7,496,866
19,232,614
3,795,855
8,210,635
15,859,571
11,148,235
12,374,868
$5,135 $1,088,449,300 $79,410,696 $1,167,859,996
52,109 13,548,509,962 359,975,782 13,908,485,744
17,004
1,429,081,507 10,176,445 1,439,257,952
428,107
558,922,868 71,011,197
629,§34,065
2,007,192
797,814,690 11,678,190
809,492,880
7,496,866
596,204,110 4,667,602
600,871,712
19,232,614
1,628,925,345 94,596,852 1,723,522,197
3,795,855
605,575,107
4,370,770
609,945,877
8,210,635
227,179,241 3,852,290
231,031,531
15,859,571
451,507,940 8,435,332
459,943,272
11,148,235
344,355,212 2,020,000
346,375,212
12,374,868
719,891,422 86,965,388
806,856,810
Total, 3 months
ending:
Sept. 30,1920. 1,366,567,865 160,564,593 1,527,132,458
Sept. 30,1919. 361,189,640 242,602,027 603,791,667
80,628,191
19,005,117
80,628,191 21,996,416,704 737,160,544 22,733,577,24^
19,005,117 20,343,252,616 675,743,790 21,018,996,406
Discounts.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$59,669,798 $9,406,554
301,702,132 58,241,678
51,872,704
1,662,512
50,696,549 21,331,417
50,750,922
5,093,245
85,393,220
1,423,394
389,504,300 28,338,949
113,803,538
1,565,000
64,626,554 3,417,546
67,737,346
1,098,885
45,800,304
305,000
85,010,498 28,680,413
Discounts.
Total.
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from July 1 to Sept. SO, 19il.
[In thousands of dollars.]
Rediscounted or sold by the Federal Reserve Bank of—
Discounted or purchased by the Federal
Reserve Bank of—
]New York.
July.
Boston
New York
Philadelphia
Cleveland
San Francisco
August.
Richmond
September.
30,000
10,014
25,012
10,051
15,050
10,014
Total
35,026
35,115
Purchased bills
Discounted bills
35,02&
35,115
July.
50,000
August.
September.
50.000
80,000
25,000
45,000
30.000
55,000
95,000 !
80,000
55,000
95,000
Atlanta.
80,000
15,000
95,000
95,000
July.
August.
Chicago.
September.
5,086
16,241
2,931
3,974
11,980
39,146
16,077
32,127
33,307
42,071
52,178
52,178
33,307
42,071
July.
SepAugust. tember.
6,000
20,575
31 001
11
8 661
30 001
57,576
8,001
30,012
10,076
47,500
8,001
10,012
20,000
Rediscounted or sold by the Federal Reserve Bank of—
Discounted or purchased by the Federal
Reserve Bank of—
July.
Boston
New York
Philadelphia
Cleveland
San Francisco
Minneapoli 3.
St. Louis.
14,999
7,000
August.
47,977
14,000
September.
July.
August.
]Kansas
September.
July.
Dallas.
City.
August.
September.
July.
SepAugust. tember.
5,500
4,000
24,000
8,500
11,035
7,022
10,800
13,000
16,999
17,160
7,003
21,500
20,511
24,000
4,000
13,000
12,000
16,500
11,500
4,000
20,500
9,017
15,711
33,067
13,750
37,502
54,750
17,998
Total
35,999
47,977
47,997
26,000
35,500
33,000
27,074
26,511
57,230
55,761
65,502
79,750
Purchased bills
Discounted bills
35,999
47,977
47,997
26,000
35,500
33,000
27,074
26,511
57,230
55,761
65,502
79,750
NOVEMBER, 1920.
1233
FEDERAL RESERVE BULLETIN.
Rediscounts and sales of discounted and purchased paper between Federal Reserve Banks from July 1 to Sept. SO, 1920—
Continued.
[In thousands of dollars.]
Rediscounted or sold by all Federal Reserve Banks since Jan. 1,
1920.
Rediscounted or sold by all Federal Reserve Banks.
Discounted or purchased by the Federal
Reserve Bank of—
August.
September.
114,120
75,349
10,014
141,248
159, 708
4.000
10,051
158,904
170,632
19,014
48,077
212,444
25,012
10,014
365,743
340,677
450,167
457102
320,641
43,116
297,581
10,012
440,155
July.
Boston..
New York
Philadelphia .
Cleveland
Atlanta ...
Chicago
St. Louis
Minneapolis.
Kansas City... .
Dallas
San Francisco.
4-
.
.
Purchased Discounted
bills.
bills.
Total.
444,460
98,363
68 142
510,596
86
20,065
43,053
35,026
35,026
* 444,460
98,277
48,077
467,543
677,042
490,634
68,142
939,203
57,087
173,590
13,000
40,029
25,049
143,000
64,305
.
Total
Purchased bills
Discounted bills ..
1,156,587
Purchased
bills.
Total.
Discounted
bills.
8,582
11,053
20,065
72,710
5,087
5,090
668,460
479,581
48, 077
866,493
52,000
168,500
13,000
40,029
20,000
143, OOC
23,500
5,049
40,805
2,691,081.
98,230
168,441
1 058 357
2,522,640
Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in September,
1920, distributed by classes.
[In thousands of dollars.]
Member banks' collatCustomers'
eral notes.
paper
Live-stock secured by Secured by
paper.
Govern-*
Govern- j Otherwise
ment war ment
war
secured,
obligations. obligations.
Agricultural
paper.
Federal Reserve Bank.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total, 1920.
Total, 1919.
140
256
598
9,984
15,549
21,060
4,585
16,912
9,661
20,249
22,004
120,998
32,932
2,033
44,560
28,197
11,462
13,938
21,879
145,158
45,662
12,905
5,911
13,204
19,471
10, 621
3,936
8,376
3,074
5,176
92,124
347,052
85,935
59,674
31,696
50,475
133,930
29.150
2,743
26,633
18,136
47,502
103,426
27, 273
295,373
214,027
5
208
107
2,916
Trade
acceptances.
,
30
36
1,023
255
5,333
18
930
553
530
169
158
4,688
294
2,617
1,650
1,047
4,307
1,022
175
1,886
531
3,705
925,050 i
1,358,476 !
8,877
17,230
22,080
10,961
!
j
;
i
I
i
Bankers'
acceptances.
All other
(commercial paper
n. e. s.).
Total.
55
181
2,155
69,147
347,083
55,014
145,611
60,791
39,246
288, 709
67.826
14', 995
34,424
22,235
75,507
183,331
847,059
187,315
221,667
111,162
122,949
473,908
116,483
84,251
109,785
76,398
170,156
8,072
479
1,220,588
. 220,904
2,704,464
1,882,282
119
18
257
1,098
1,228
Acceptances purchased by each Federal Reserve Bank and held Sept. SO, 1920, distributed by classes of accepting
institutions.
[Tn thousands of dollars.]
bankers' acceptances
Non-
Federal Reserve Bank.
Boston
. .
Atlanta
Chicago
St Louis
Minneapolis . .
Kansas City Dallas
San Francisco
Total:
Sept
Auc
Sept
Sept
30, 1920
31 1920
30 1919.. .
30 1918
. .
Foreign
member
trust
companies.
Nonmember
State
banks.
26,079
56)092
5,195
28,431
7,045
1,894
35,010
1,630
1,448
3.301
663
34,188
8
2,397
786
15,249
1,333
8,777
1,931
8,665
1,798
6,708
9,333
562
6,009
2,300
250
2,042
270
187
10,244
8,644
8,490
200,976
202,868
208,784
233,926
3,009
2,631
8,255
2,859
38,939
41,499
24,821
2,479
29,788
31,225
33,420
27,551
25,511
21,737
21,873
13,999
Member
banks.
.
New York
Philadelphia
Cleveland
Richmond
Trade acceptances.
192
225
bank
Private branches
banks.
and
Grand
total.
Domestic.
Foreign.
116
2,321
2,437
61,753
<ji
460
551
29 601
94 173
8,888
50 117
7,045
1,894
39 847
1,880
1,498
3 301
663
62,304
298,223
299,960
297,153
280,814
207
1,334
591
2,745
2,781
5,810
2,385
5,761
2,988
7,144
2,976
8,506
301,211
307,104
300,129
289,320
Total.
Total.
agencies.
797
50
29 601
91,736
8,888
50,117
7 045
1,894
39,847
l'88O
1,498
3,301
663
1234
FEDERAL RESERVE BULLETIN.
NOVEMBER,, 1920.
OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM SEPT. 16 TO
OCT. 15, 1920.
[Amounts in thousands of dollars.]
Items drawn on banks in own district.
Federal Reserve Bank
or branch.
Located in Federal Reserve
Bank and branch
cities.
Located outside
Federal Reserve
Bank or
branch cities.
Items drawn on
Treasurer of
United States.
Items forwarded
to other
Federal Reserve
Banks and
their branches.
Total.
Items forwarded
to parent
bank or to
branch in
same district.
Number. Amount. Number. Amount. Number. \ Amount. Number. Amount. Number. Amount.
621,109
Boston
1,109,962
New York
156,168
f ' Buffalo
1.433,3191
Philadelphia
357,239!
Cleveland
t , Cincinnati
i. 169,219
311,128
' . ^Pittsburgh
112,729
Richmond *
196,678
Baltimore
110,118:
Atlanta*
41,890
Birmingham
31,202
Jacksonville
43,5741
Nashville*
57,955
New Orleans
762,433
Chicago
216,225
Detroit*
254,245
St. Louis*
41,085
Little Rock
83,900
Louisville
68,711
Memphis *
267,748
Minneapolis *
254,784
Kansas City*
76,899
Denver *
44,398
Oklahoma City*..
90,018
Omaha
81,844
Dallas
31,726
El Paso
63,238
Houston
126,910
San Francisco.
128,947
Los Angeles.
Portland
54,725
57,211
Salt Lake City....
58,024
Seattle
28,490
Spokane
677,138
190,342
116,119
912,701
309,429
165,894
367,265
173,887
202,054
80,183
23,586
21,037
38,944
66,052
851,681
228,747
317,583
28,417
72,249
37,562
190,378
371,290
75,795
78,655
73,792
94,023
12,966
60,324
117,545
104,930
45,171
33,689
49,369
24,324
472,863
2,862,637
4,024,590 1,424,763
60,508
359,398
290,980
1,925,131
214,517
1,168,000
101,330
781,035
752,001
107,168
307,853
1,565,058
95,462
686,532
69,046
311,180
14,121
145,966
14,151
112,362
194,356
25,635
97,108
17,970
3,377,834
466,132
368,014
54,661
1,356,237
115,715
277,011
21,641
354,944
29,266
147,024
12,024
1,746,467
149,915
2,034,220
167,626
351,431
31,651
941,312
116,758
545,048
52,456
330,567
1,617,614
122,990
13,828;
370,127
57,889
329,216
38,058
742,482
66,266
197,100
15,790
377,284
41,327
207,615
19,730
163,605
16,272
118,693
,031,356!
15,060;
151,919,
49,596;
42,8931
43,438!
43,718
52,160
15,532
11,626
11,125,
14,163
16,903
295,274
31,327
116,179
5,911
25,965
8,009
40,702
92,248
17,405
40,101
25,460
11,896
43,113
53,669
19,687
17,750
12,832
25,519
9,415
15,157 3,602,439
129,389 6,165,908
530,626
1,218
32,527 3,510,369
4,821 1,574,835
3,443
993,147
6,194 1,106,5671
5,513 1,721,505
935,370
11,272
4,171' 436,830
1,076! 199,482j
982| 154,689;
252,093|
1,194
2,758
171,966!
55,800 4,435,54lf
2,685
615,566
8,875 1,726,661
1,332
324,007
3,429
464,809
1,485
223,744
4,269 2,054,917
7,876 2,381,252
2,723
445,735j
985,710
2,432
675,167
3,556 1,724,918
2,955
166,612
2,408
476,478
70,590
509,795
11,067
891,116)
7,774
269,575
4,960
447,327
12,500
291,158
967
201,510
,165,158
128,728
;, 744,494 :, 021,931
177,845
138,048
,236,208
799,716
528,767
33,464
270,667
15,235
480,627
62,837
487,253
129,230
156,673
308,788
22,389
153,400
38,783
16,999
36,170
24,887
65,773
28,554
86,780
48,235i
,373,613
302,025
286,093
9,887
442,173
27,332!
51,390
7,094;
8,985
104,944
2,489
51,071
344,5621 110,419
281,639
546,792
110,169
95,572
195,413
36,694
128,680
35,624
428,146
78,006
29,749
18,147
120,621
17,688
226,193
24,069
182,263
62,712
68,735
2,975
79,976
11,794
81,599
16,706
7,595
41,563
84,565
648,808
36,339
237,670
36,870
20,984
57,940
78,974
130,881
20,387
13,666
7,697
4,794
12,779
52,965
15,191!
9,298
2'367|
9751
45,187j.
75,811! 118,875
23,2291 49,744
11,922
19,816
9,490
19,148
40,447! 65,275
7,960! 13,3421
37,497
11,372
4,806
53,602i
9,710
26,965!
1,787
30,500
8,225;
21,727
34,096;
6,091
2,374; 18,591'
Total:
Sept. 15 to Oct. 15,
7,543,851 8,213,12130,1,612,929 5,033,939 2,510,644
427,398,40,667,424| 13,674,458! 3,784,3781 1,773,070
1920
Aug. 16 to Sept. 15,
7,303,690 7,700,39129,1,237,412 4,613,487 1,992,827
564,334J38,533,929 12,878,212 2 3,584,781 2 1,627,567
1920
Sept. 16 to Oct. 15,
1919
5,515,877 7,130,239 19,
1,530,165 4,309,693 2,354,925 1,132,918 27,400,967 12,572,850 3 2,719,102 31,632,134
Federal Reserve district.
Number of member
banks in district Oct.
15—
1920
Boston. *
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas C i t y . . .
Dallas
San Francisco.
Total.
1919
Number Of nonmember banks on par list
Oct. 15—
1920
1919
434
782
696
867
610
448
1,403
568
992
1,083
842
819
430
746
674
841
575
431
1,363
530
909
1,019
748
258
322
434
1,072
778
416
4,278
2,516
2,920
3,395
1,258
1,028
242
322
409
1,025
443
348
3,211
1,848
1,504
2,828
750
922
9,544
8,955
18,675
13,852
38,920
9,645
29,382
8,027
9,685
53,405
24,6211
6,319;
13,8461
6,110
11,906!
6,380
14,915
29,629
2,645
3,999
16,235
4,786
9,336
11,950
10,170
9,861
42,751
2,114
2,657
1,179
5,790
1,744
1,922
4,325
511
1,165
31,981
21,036
17,976
10,395
13,747
2,787
3,102
9,188
5,289
5,004
10,980
6,557
794,991; 305,812
853,084
311,877
589,404; 291,035
Number of incorporated banks other than
mutual savings banks
not on par list Oct. 15—
1920
1919
800
174
64
1,019
1,220
986
801
1,369
451
405
142
6,457
* NOTE.—Number of business days in period was 25 in all Federal Reserve Bank and branch cities except in those marked with an asterisk,
where the number was 26.
1
Includes 7,078 items, amounting to $2,640,000 forwarded direct to member banks in other Federal Reserve Districts.
Includes 7,210 items, amounting to $2,115,000 forwarded direct to member banks in other Federal Reserve Districts,
s Includes 5,055 items, amounting to $2,999,000 forwarded direct to member banks in other Federal Reserve Districts.
2
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
1235
CHANGES IN CONDITION OF FEDERAL
A summary of the weekly changes in the
principal asset and liability items of the Federal
RESERVE BANKS.
Reserve Banks follows:
During the four weeks between September
24 and October 22 the Federal Reserve Banks Principal asset and liability items of the 12 Federal Reserve
Banks combined on Fridays, Sept 24 to Oct. 22, 1920.
increased their holdings of discounted bills by
about 45 millions, from 2,704 to 2,749 millions,
[In millions of dollars.]
the largest increase for the period occurring
during the week ending October 8, when conSept. Oct. Oct. Oct. Oct.
22.
24.
1.
8.
15.
siderable net withdrawals of Government funds
caused the member banks to rediscount more
heavily with their Federal Reserve Banks. Reserves:
2,152 2,165 2,158 2,155
Total
2,157
1,995
Gold
1,990 2,003 1,996 1,992
The increase in discounts held does not affect Bills discounted:
paper secured by United States war obligations
2,704 2,710 2,796 2,774
Total
2,749
Secured by Government
(including Treasury certificates), the holdings
1,220 1,183 1,217 1,193
1,199
war obligations
1,484 1,527 1,579 1,581
1,550
Allother
of which, after a 34 million increase during the Bills bought
301
in open market
308
302
306
320
early part in October, declined to 1,199 millions Certificates of indebtedness
281
271
271
274
302
3,310 3,310 3,402 3,422
3,358
earning assets
on October 22, marking a decrease of over 21 Total
15
Government deposits
46
46
43
14
1,801 1,776 1,826 1,868
1,779
millions for the period under review. Other Members' reserve deposits
1,658 1,646 1,710 1,695
1,624
Net deposits
discounted paper, on the other hand, shows con- Federal Reserve notes in circula3,280 3,305 3,322 3,353
3,356
tion
tinuous advances for the first 3 weeks to 1,581 Federal
Reserve Bank notes in
214
214
214
213
213
millions, and on October 22 stood at 1,550 circulation
42.7
43.3
43.6
42.9
43.7
millions, or about 66 millions above the total R eserve percentage
reported four weeks before.
From about 55 per cent on September 24;
Fiscal operations of the Government included the payment on October 15 of the half- the share of 15-day paper in the total discounts
yearly interest on the fourth Liberty bonds, held increased to nearly 60 per cent on October
the redemption on the same date of the bulk 8. Two weeks later this class of paper had
of the outstanding balance of about 118 millions declined to 56 per cent of the total discounts
of loan certificates issued six months previous, held. Changes in the holdings of 30-day paper
and the issuance of over 124 millions of tax cer- are in the reverse order, though changes m the
tificates, besides the gradual withdrawal from holdings of 15-day paper are apparently due as
depositary institutions of balances due to the much, if not more, to new short-term borrowGovernment on account of the more recent ing by the member banks as to the gradual
certificate issues. On October 15 the Anglo- maturing of 30-day paper into the 15-day
French bonds issued 5 years ago fell due, neces- class. Holdings of 90-day paper show a slow
sitating the redemption by the fiscal agents but steady increase, while those of 6-month
of the foreign Governments concerned of about agricultural and live-stock paper at the close
200 millions of these securities. The effect of the period—about 23 millions—were 3.4
of these operations may be seen in an increase millions below the September 24 total.
of 27.7 millions in the Federal Reserve Bank
Holdings of acceptances purchased in open
holdings of Treasury certificates between Oc- market fluctuated between 319.5 millions on
tober 8 and 15, largely to cover overdrafts of October 15 and 300.7 millions a week later.
the Government, and in an increase of 13.-8 Treasury certificates on hand increased from
millions in the holdings of purchased bills, 270.6 millions on September 24 to 301.7 millions
rather than in any increase of the amount of on October 15, when six of the Federal Reserve
discounted bills held. Federal Reserve Bank Banks reported 26 millions of special certifiholdings of paper secured directly or indirectly cates to cover advances to the Government
by Treasury certificates declined from 268 to pending receipt of funds from depositary in241 millions, constituting slightly over 20 per stitutions. By the following Friday the Treascent of all the war paper held on October 22, ury had outstanding only 10 millions of such
while holdings of paper secured by Govern- certificates which were held by four reserve
ment war obligations proper, i. e., Liberty banks.
bonds and Victory notes, show a slight increase
Interbank discounting shows further growth
from 952 to 958 millions during the four weeks in volume, the total of paper held under disunder review. Of the total amount of dis- count for other Reserve Banks showing an
counted paper carried on October 22 by the increase from 226.9 to 243.1 millions, held by
Federal Reserve Banks, the share of paper the Boston, Philadelphia, and Cleveland banks.
secured by Government obligations was 43.6 The latter bank on October 22 reports a total
per cent, compared with over 45 per cent of 137.9 millions of paper discounted for other
shown four weeks earlier.
Reserve Banks, compared with 79.3 millions of
1236
FEDERAL RESERVE BULLETIN.
paper held under discount for its own members,
while over 40 per cent of the Boston bank's
discounts are for other Reserve Banks. The
list of accommodated Reserve Banks includes,
besides the seven banks in the South and
Middle West shown about the close of September, also the New York bank. Among the
rediscounting banks are found all the four
banks which appfy graduated discount rates.
During the four weeks under review three of
these banks, viz, those of Atlanta, St. Louis,
and Kansas City, increased their member
bank discounts from 473 to 490.7 millions,
while their combined liabilities on account of
aper rediscounted with other Federal Reserve
•anks show but a slight increase, from 123.7
millions to 123.9 millions. In the case of
the Dallas bank a reduction in total member
bank discounts, from 113.8 to 108.7 millions, is accompanied by a decrease of interbank accommodation from 37.4 to 33.9 millions. Holdings of acceptances purchased from
other Reserve Banks fluctuated between 19.9
millions on October 1 and 34.9 millions two
wepfc later. At the end of the period the total
was^ 24.3 millions, composed of bank acceptTOcei sold by the New York bank without
indorsement to the Boston, Philadelphia, and
San Francisco banks. No change is shown in
ttie banks' aggregate guarantors' liabilities of
16.2 millions on bankers' bills purchased for
account of foreign correspondents.
., Government deposits show a decline during
tHe period from 46.5 to about 15 millions.
Members' reserve deposits, after reaching a
High 'of 1,868 millions on October 15, declined
to: 1,779 millions on the following Friday,
'while other deposits, composed largely of foreign Government credits and nonmembers'
clearing accounts, declined during the period
g
NOVEMBER, 1920.
from 34.9 to 21.9 millions. Calculated net
deposits reached a high of 1,710.2 millions on
October 8, but declined to 1,624.5 millions
during the following two weeks.
Federal Reserve note circulation shows a
further expansion during the four weeks from
3,280 to 3,356.2 millions, or at an average
weekly rate of over 19 millions. A considerable proportion of the increase in circulation
is due to shipments of Federal Reserve notes
to Cuba from the New York and Atlanta districts. Practically no change is shown in the
circulation of Federal Reserve Bank notes.
During the period under discussion the
amount of gold held with foreign agencies declined from 111.5 to 80.4 millions as the result
of transfers to the Federal Reserve Banks of
part of the gold held earmarked by the Bank
of England since September, 1919. These
transfers, while figuring among the gold imports of the period, do not affect the total
gold reserves of the Federal Reserve Banks,
since gold held with foreign agencies was
always counted as part of the Reserve Banks'
gold reserves. Total gold reserves, notwithstanding considerable withdrawals for export
to the Far East ; more than held their own,
largely because of substantial receipts from
England and France, and on October 22 stood
at 1,994.6 millions, or 4.8 millions above the
September 24 total. Total cash reserves show
a slightly larger increase during the period
from 2,151.6 to 2,157.3 millions.
The banks' reserve ratio shows an almost
steady decline from 43.6 per cent on September 24 to 42.7 per cent on October 15. On the
following Friday, largely by reason of the
liquidation in some volume of bills and Treasury certificates and a corresponding reduction in
deposit liabilities, the ratio rose to 43.3 per cent.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920.
RESOURCES.
[In thousands of dollars.]
Gold and gold certificates:
Oct.l..
Oct. 8
Oct. 15
Oct. 22....
Gold settlement fund—Federal
Reserve Board:
Oct.l..
Oct.8
:
Oct. 15
Oct.22.
Gold with foreign agencies:
Oct.l.
Oct.8.
Oct. 15.
Oct.22.
Boston.
NewYork.
7,660
7,696
7,823
7,884
110,897
133,402
110,165
78,567
46,199
49,149
54,555
27,835
8,136
6,535
6,322
5,878
Philadelphia.
MinneSt.
Chicago. Louis.
apolis.
Cleve- Richland. mond.
Atlanta.
2,402
2,410
2,416
2,436
7,434
7,549
6,644
6,360
24,492
24,665
24,708
24,405
3,205
3,122
3,015
2,910
42,729 45,243 80,863 23,863
37,807 47,868 75,508 28,163
63,835 34,991 61,858 22,496
46,425 55,179 81,619 26,049
7,447
6,384
4,736
6,120
41,466
44,897
54,468
54,147
6,745
13,373
7,535
13,224
40,905
32,856
31,780
29,473
4,013
3,223
3,118
2,898
13,263
11,117
10,653
9,582
5,238
4,208
4,070
3,784
1,417
1,403
1,391
1,363
8,916
7,162
6,442
10,443
10,465
10,477
10,517
9,139
7,660
7,101
6,603
5,461
4,387
4,243
3,945
City.
San
Dallas. Francisco.
Total.
676
4,901
4,684
4,728
4,915
20,333
13,475
13,289
14,207
201,046
216,763
192,499
161,438
8,526 24,875
8,637 20,692
10,057 25,685
8,613 25,326
3,936
10,321
5,362
4,132
30,576
49,175
36,175
40,400
362,468
391,974
381,753
389,069
5,350
4,297
4,157
3,865
2,898
2,429
2,328
2,093
5,127
4,118
3,983
3,704
111,455
90,409
87,021
80,441
7,210
7,206
7,179
7,198
3,009
2,417
2,338
2,174
652
NOVEMBER, 1920.
1237
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920—Continued.
RESOURCES-Continued.
[In thousands of dollars.]
Gold with Federal Reserve
agents:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Gold redemption fund: Oct. 1
Oct. 8
Oct. 15
Oct. 22
Total gold reserves:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Legal-tender notes, silver, etc.:
Oct.l
Oct. 8
Oct. 15
Oct. 22
Total reserves:
Oct.l
Oct. 8
Oct. 15
Oct. 22
Bills discounted: 1
Secured by Government
war obligations—
Oct.l
Oct. 8
Oct. 15
Oct. 22
All other—
Oct.l
Oct. 8
Oct. 15
Oct. 22
Bills bought in open market: 2
Oct.l
Oct. 8
Oct. 15
Oct. 22
United States Government
bonds:
Octl
Oct8
Oct 15
Oct. 22
United States Victory notes:
Oct. 1
".
Oct. 8
Oct. 15
Oct. 22
.
United States certificates of
indebtedness:
Oct. 1
Oct. 8
Oct. 15.
Oct. 22
Total earning assets:
Oct. 1 . . .
Oct. 8
Oct. 15
Oct. 22
Bank premises:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Uncollected items and other
i deductions from gross deposits:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
5 per cent redemption fund
against Federal Reserve
Bank notes:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Boston.
New
York.
Philadelphia.
Cleveland.
134,999
133,424
130,915
143,801
266,519
235,642
234,475
264,013
121,610
123,753
129,794
119,942
142,238
140,674
140,037
141,977
18,440
19,499
21,385
17,707
35,982
37,925
37,924
37,911
9,275 12,408
10,406 13,486
11,002 14,800
11,613 13,725
215,434
216,303
221,000
203,105
497,032
477,632
478,179
456,389
186,461
190,592
184,106
194,539
6,564
6,745
7,072
7,912
127,993
127,834
129,281
128,429
931
1,018
923
735
221,998
223,048
228,072
211,017
625,025
605,466
607,460
584,818
187,392
191,610
185,029
195,274
257,733
250,018
236,329
256,424
106,750
104,042
79,580
98,133
490,677
509,645
500,403
521,930
123,844
121,544
130,095
116,581
53,013
69,684
77,189
61,004
77,462
78,283
75,708
75,946
383,453
434,576
446,646
407,365
62,049
54,544
59,161
54,392
30,038
30,045
49,494
42,901
96,465
97,752
81,784
73,564
8,255
18,221
19,880
18,803
49,586
48,378
46,250
40,350
555
555
555
555
1,462
1,462
1,462
1,462
1,434
1,434
1,434
1,434
834
834
834
834
5
5
50
50
50
50
21,578
21,593
32,581
22,655
Atlanta.
Chicago.
44,403
42,494
45,332
43,744
52,647
52,554
58,479
64,740
188,930
187,099
183,486
181,264
47,580
48,328
48,421
49,396
27,569
27,312
27,691
27,264
7,572
8,750
9,762
10,583
6,656
7,540
5,686
6,513
25,106
26,315
29,551
31,203
6,224
5,670
6,156
5,588
3,235
3,447
2,759
2,912
83,701 78,197
86,204 77,250
84,249 78,663
86,757 86,631
293,257
294,093
302,866
300,601
68,992
74,701
6.9,197
74,902
1,245
1,398
1,518
1,547
9,188
9,103
8,719
8,675
7,622
7,479
7,330
7,204
84,103 79,442
87,030 78,648
84,946 ~ 1,181
87,432 I 88,178
302,445
303,196
311,585
309,276
36,537
36,155
39,823
37,129
64,294
65,713
63,693
68,365
148,350 73,342
153,493 72,457
150,359 71,240
156,166 72,759
255,091
247,793
234,273
254,441
2,642 t
2,225
2,056
1,983
St.
Minne- Kansas
Louis. apolis. City. Dallas.
Total.
39,959 29,613 84,326 1,180,393
40,979 28,911 81,242 1,142,412
41,061 30,767 98,580 1,169,038
41,219 29,610 96,270 1,203,2404,105
4,703
4,188
4,648
5,030
5,396
5,666
6,446
13,677
11,629
12,911
11,574
147,710
154,766
161,790
160,423
49,549 74,941
49,019 71,357
50,024 75,755
48,161 75,734
46,378
51,741
48,851
47,196
154,039
159,639
164,938
166,155
2,003,072
1,996,324
1,992,101
1,994,611
138
121
227
145
1,915
1,860
1,930
1,935
2,900
2,791
2,637
3,014
583
544
420
405
162,123
161,944
162,810
162,659
76,614
82,180
76,527
82,106
49,687
49,140
50,251
48,306
76,856
73,217
77,685
77,669
49,278
54,532
51,488
50,210
154,622
160,183
165,358
166,560
2,165,195
2,158,268
2,154,911
2,157,270
147,384
146,537
142,738
144,874
38,978
38,394
40,153
39,241
11,043
9,166
10,256
8,308
35,238
38,179
35,736
29,431
21,551
22,798
19,756
18,358
53,708
55,241
53,388
55,785
1,183,017
1,217, .098
1,192,810
1,199,139
57,379
56,983
61,452
68,939
325,364
325,411
325,682
315,268
80,034 73,691
77,212 78,054
79,990 73,677
79,465 75,282
6,932
6,184
5,908
5,261
1,886
2,393
2,743
2,690
39,786
41,573
49,183
50,325
1,880
960
1,428
1,498
1,408
1,358
1,210
3,534
3,160
2,478
2,272
585
310
1,265
1,370
61,065
55,306
57,749
60,927
301,510
305,690
319,520
300,666
1,233
1,233
1,233
1,233
113
114
113
114
4,490
4,490
4,490
4,490
1,153
1,153
1,153
1,153
116
116
116
116
8,867
8,867
8,867
8,867
3,966
3,966
3,966
3,966
2,632
2,632
2,633
2,632
26,855
26,856
26,856
26,856
402
697
675
10
10
10
10
69,513 31,458
71,958 31,361
79,558 35,505
74,242 31,960
Francisco.
71,866 52,752 120,842 1,526,584
71,614 54,919 121,027 1,578,573
70,991 53,986 112,168 1,581,060
81,256 56,392 106,913 1,550,143
69
69
69
1
1
1
1
23,299
23,299
23,299
24,299
12,262
12,262
13,262
12,262
15,666
15,668
16,666
15,666
39,728
39,633
42,631
41,614
17,297
17,363
17,353
17,340
8,481
8,481
8,516
8,482
12,826
12,826
12,826
12,826
8,300
8,300
8,300
8,300
11,074
11,207
11,164
11,1.61
271,482
273,951
301,661
280,807
275.092
295', 698
297,941
282,663
130,306
128,291
131,466
128,644
139,341
140,874
144,670
155,777
556,752
557,644
564,724
556,571
139,342
135,082
140,077
138,192
94,829
97,225
93,923
93,398
132,332
134,647
130,899
134,653
87,154
90,293
87,273
88,386
249,321
245,413
237,102
237,418
3,309.517
3,402,237
3,421,976
3,357,680
1,172
1,177
1,178
1,178
1,206
1,253
1,285
1,285
620
622
622
623
2,123
2,128
2,128
2,128
866
603
603
848
885
885
885
1,230
1,233
1,237
1,240
232
232
232
232
15,455
15,634
15,766
15,864
69,142 79,494
63,667 73,208
89,263 102,216
70;958 83,455
56,350
57,983
70,187
62,666
28,785
30,774
31,780
30,898
113,953
108,807
122,330
103,838
44,147
52,379
57,901
46,527
23,402
27,565
28,589
28,059
69,162
73,629
72,948
69,508
54,893
54,339
71,007
57,867
43,843
43,050
52,602
47,041
820,280
796,723
998,488
825,740
451
451
451
451
499
527
506
503
1,745
1,516
1,866
2,486
573
429
343
485
617
916
586
586
586
586
665
665
665
665
11,856
11.666
12,158
12,953
236,388
234,523
237,923
240,195
1,041,620
1,115,443
1,109,903
1,078,613
227,040
227.104
246,075
223,170
1,877
1,950
2,045
2,066
4,026
4,028
4,028
4,101
652
657
657
657
61,915
53,273
81,203
61,489
175,194
158,049
218,462
163,434
1,072
1,072
1,072
1,072
2,481
2,528
2,549
2,595
1,300
1,300
1,300
1.300
1,139
1,139
1,139
1,139
866
623
623
916
916
1238
NOVEMBER,, 1920'.
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22, 1920—Continued.
RESOURCES-Continued.
[In thousands of dollars.]
Boston.
All other resources:
Oct. 1
Oct. 8
Oct. 15
Oct. 22
Total resources:
Oct 1 .
Oct. 8
Oct 15
Oct. 22
1
Includes bills discounted ior
other
Federal
Reserve
Banks:
Oct 1
Oct. 8
Oct 15
Oct 22
. .
2Includes bankers' acceptances
bought from other Federal
Reserve Banks without their
indorsement:
Oct 1
Oct 8
Oct 15
Oct 22
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
233
179
273
191
394
338
344
341
768
921
1,004
969
545
601
633
644
251
267
280
240
589
401
511
398
523,644
514,204
550,659
516,180
1,849,114
1,886,435
1,943,406
1,834,530
486,071
484,939
522,957
492,003
614,881
621,507
639,083
625,099
273,005
275,409
288,846
280,876
52,641
52,450
43,694
72,926
19,003
31,485
30,577
32,384
32,273
122,906
140,440
139,032
137,874
4,911
13,711
12,525
10,449
10,000
9,441
6,030
15,000
12,970
Minne- Kansas Dallas.
St.
Chicago. Louis.
apolis. City.
464
507
968
815
San
Francisco.
Total.
382
383
521
439
90
74
84
94
306
295
309
328
1,013
565
1,691
606
379
302
333
336
5,414
4,833.
6,951
5,401
248,920 977,482 261,924
251,624
973,798 271,513
258,032 1,003,601 276,515
276,170
975,114 268,753
169,040
174,950
173,935
171,077
280,420
283,589
283,642
283,959
194,154
201.548
213,282
198,895
449,062
449,845
456,292
452,252
6,327,717
6,389,361
6,610,250
6,374,908
226,035
223.467
215,110
243,073
4,951
2,073
1,345
886
19,862
25 225
34 900
24,300
LIABILITIES.
Capital paid in:
Oct 1
Oct. 8 . . .
Oct. 15
Oct. 22
Surplus fund:
Oct.l
Oct.8
Oct. 15
Oct. 22.
Government deposits:
Oct.l
Oct.8
Oct. 15
Oct. 22
Due to members—reserve account:
Oct.l
Oct.8
Oct.15
Oct. 22
Deferred availability items:
Oct.l
Oct.8
Oct. 15
Oct. 22
Other deposits, including foreign Government credits:
Oct.l
Oct.8
Oct. 15
Oct. 22
Total gross deposits:
Oct.l....:
Oct.8
Oct. 15
Oct. 22
Federal reserve notes in actual
circulation:
Oct.l
Oct.8
Oct. 15
Oct.22
Federal Reserve Bank notes in
circulation, net liability:
Oct.l
Oct.8
Oct. 15
Oct. 22
All other liabilities:
Oct.l
Oct.8
Oct. 15
Oct. 22
I
7,644
7,644
7,644
7,644
25,272
25,294
25,297
25,307
8,417
8,417
8,426
8,426
10,253
10,299
10,299
10,300
5,214
5,216
5,242
5,257
3,926
3,930
3,948
3,958
13,720
13,720
13,720
13,759
4,304
4,306
4,306
4,307
3,334
3,337
3,353
3,384
4,439
4,505
4,505
4,506
3,970
3,970
3,973
6,867
6,881
6,884
6,871
97,35897,519'
97,594
97,692-
12,351
12,351
12,351
12,351
51,308
51,308
51,308
51,308
13,069
13,069
13,069
13,069
13,712
13,712
13,712
13,712
8,067
8,067
8,067
8,067
7,050
7,050
7,050
7,050
23,917
23,917
23,917
23,917
5,884
5,884
5,884
5,884
5,178
5,178
5,178
5,178
8,395
8,395
8,395
8,395
4,152
4,152
4,152
4,152
11,662
11,662
11,662
11,662
164,745164,745
164,745
164,745.
3,183
1.394
982
1,120
16,082
16,979
257
453
6,190
3,147
1,451
1,153
3,350
3,254
3,715
1,116
385
872
1,621
1,868
634
1,212
2,389
2,253
380
1,557
1,492
2,246
2,104
2,079
1,241
1,274
659
560
2,153
1,987
2,607
2,156
1,939
2,906
1,362
1,144
3,099
4,941
1,213
1,870
46,454
43,365
13,975
15,015
119,201
1118,387
! 130,876
|121,882
685,654
726,592
744,132
675,180
109,370
109,681
116,781
111,057
151,567
152,246
151,757
153,453
56,032
57,835
60,357
58,707
49,147
49,066
46,585
44,455
253,824 61,165 44,120 79,312 49,493
256,476 62,053 46,261 76,358 52,023
265,154 61,729 46,389 73,119 50,957
253,555 61,757 42,490 79,140 53,190
117,358
118,928
120,180
124,479
1,776,24a
1,825,906
1,868,016
1,779,345-
I 49,622
| 43,364
| 67,652
48,735
110,846
108,667
147,614
115,444
51,483
49,523
76,937
57,869
61,938
60,801
81,555
07,338
44,420
46,379
56,792
49,742
23,925
25,560
24,311
26,209
33,216
34,848
40,951
34,748
608,056
609,980776,887
634,097
! 1,097
i 867
I 1,315
I 566
I
173,103
1164,012
i200,825
172,303
16,745
15,333
20,077
12,252
1,425
1,264
2,043
1,032
1,427
1,733
957
1,273
603
472
598
278
423
457
347
2,283
2,763
2,174
2,145
681
949
525
513
451
440
829,327
867,571
912,080
803,329
168,468
163,615
197,212
171,111
218,282
218,034
236,210
222,903
104,770
105,802
118,132
109,599
75,161
76,917
71,987
72,223
336,802
330,414
358,765
329,553
102,948
112,112
115,529
107,530
68,272
73,032
72,110
68,779
140,188 86,415 162,380 12,466,116
141,403 92,793 161,194 2,506,899
140,598 103,344 165,826 2,692,618"
140,735
163,435 2,450,386
j309,586
308,936
308,155
301,833
866,091
864,895
875,737
875,027
270,892
274,065
278,147
273,103
345,751
352,480
351,657
350,553
141,463
143,056
143,871
144,001
147,538
147,883
158,982
176,408
554,238
555,872
556,684
556,587
135,888
136,084
137,565
137, 770
81,964
82,958
82,824
83,190
108,823
110,566
111,394
111,456
89,940
90,947
92,042
91,974
252,516
254,381
256,213
254,297
3,304,690
3,322,1233,353,271
3,356,199
16,648
16,733
16,922
17,119
40,219
39,113
39.506
38;989
21,333 21,916
21,681 21,791
21,615 21,684
21,625 21,776
11,233
10,900
11,101
11,346
12,764
13,253
13,358
13,620
36,545
37,021
37,051
37,309
10,321
10,426
10,374
10,287
8,129
8,096
8,033
15,651
15,649
15,520
15,345
7,724
7,627
7,683
7,744
10,962
10,831
10,623
10,645
213,412
213,154
213,533
213,838
4,312
4,528
4,762
4,930
36,897
38,254
39,478
40,570
2,258
2,368
2,433
2,606
2,481
2,591
2,707
2,911
12,260
12,854
13,464
13,989
2,579
2,701
2,857
2,975
2,196
2,316
2,374
2,513
2,924
3,071
3,230
3,522
1,955
2,059
2,091
2,166
4,675
4,896
5,084
5,342
81,39684,9.1
3,892
4,092
4,488
4,669
4,967
5,191
5,521
5,855
78,306 39,410 22,281 58,057
68,922 47,132 24,984 62,298
91,057 50,747 24,611 64,016
72,296 43,169 25,289 58,983
666
760
856
456
34,552
37,502
50,644
34,275
431
362
381
277
8,707 i
2,477 i
3,482
2,338
35,36a
27,648
33,740
21,929
92,04S
NOVEMBER, 1920.
1239
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Oct. 1 to Oct. 22,
1920—Continued.
LIABILITIES—Continued.
[In thousands of dollars.]
Total liabilities:
Oct. 1
Oct. 8
Oct 15
Oct. 22
Ratio of total reserves to net
deposit and Federal Reserve note liabilities combined—percent:
Oct. 1
Oct 8
Oct. 15
Oct. 22
Boston.
New
York.
Philadelphia.
523,644
514,204
550,659
516,180
1,849,114
1,886,435
1,943,406
1,834,530
486,071
484,939
522,957
492,003
614,881
621,507
639,083
625,099
273,005
275,409
288,846
280,876
52.8
53.1
53.3
51.1
41.1
38.5
38.7
38.6
50.6
51.2
47.9
52.3
53.2
50.3
48.7
52.3
44.3
45.6
44.3
45.8
41.0
40.5
40.3
40.5
25,000
24,234
20,000
19,900
48,856
47,496
44,642
37,758
Cleve- Richland. mond.
Atlanta.
Chicago.
San
Minne- Kansas
St.
Louis. apolis. City. Dallas. Francisco.
248,920 977,482 261,924
251,624 973,798 271,513
258,032 1,003,601 276,515
276,170 975,114 268,753
38.9
39.0
39.3
39.5
39.4
42.0
39.2
41.3
Total.
169,040
174,950
173,935
171,077
280,420
283,589
283,642
283,959
194,154
201,548
213,282
198,895
449,062
449,845
456,292
452,252
6,327,717
6,389,361
6,610,250
6,374,908
39.2
38.3
39.8
39.0
42.7
41.1
43.4
42.5
40.6
42.1
41.4
40.9
41.7
43.0
44.8
44.9
43.7
42.9
42.7
43. a
MEMORANDA..
Contingent liability as indorser on discounted paper
rediscounted with otner
Federal reserve banks:
Oct.l
Oct. 8
Oct. 15
Oct. 22
Bankers' acceptances sold to
other Federal reserve banks
without indorsement:
Oct.l
Oct. 8
Oct. 15
Oct. 22 .
Contingent liability on bills
purchased for foreign correspondents:
Oct.l
Oct.8 . . .
Oct. 15
Oct 22
25,000
9,862
15,784
28,870
24,305
1,168
1,168
1,168
1,168
6,076
6,080
6,081
6,081
18,550 35,051 18,631 41,986 37,961
17,750 39,384 19,749 40,166 34,688
14,500 35,348 23,272 43,063 34,285
13,050 40,410 27,204 45,807 33,944
226,035
223,467
215,110
243,07a
10,000
9,441
6,030
1,280
1,280
1,280
1,280
1,312
1,312
1,312
1,312
784
784
784
784
576
576
576
576
1,904
1,904
1,904
1,904
19,862
25,225
34,900
21 305
752
752
752
752
432
432
432
432
768
768
768
768
416
416
416
416
736
736
736
736
16,204
16,208
16,209
16,209
Maturities of bills discounted and bought, also of Treasury certificates of indebtedness.
[In thousands of dollars.]
Within 15
days.
Bills discounted:
Oct.l . .
Oct 8
Oct. 15
Oct. 2 2 . . .
Bills bought:
Oct 1
Oct. 8
Oct. 15
Oct 22
United States certificates of indebtedness:
Oct.l
Oct 8
Oct. 15 .
.
. .
...
Oct 22
. . . .
16 to 30
days.
31 to 60
days.
61 to 90
days.
1,515,472
1,618,998
1,551,801
1,558,148
307,789
281,399
295,140
304,552
514,192
516,868
547,622
497,628
346,734
356,532
356,779
365,967
106,484
121,443
138,646
107,424
92,432
55,922
56,543
77,329
85,555
105,890
97,466
88,171
17,039
22,435
26,865
27,742
23,748
19,547
54,957
33,641
13,500
14,000
6,400
5,650
18,870
22,284
25,293
31,090
23,260
22,328
19,877
14,993
Over 90
days.
25,414
21,874
22,528
22,987
Total.
2,709,601
2,795,671
2,773,870
2,749,282*
301,510
305,690319,520
300,666
192,104
195,792
195,134
195,433
271,482"
273,951
301,661
280,807
1240
NOVEMBEK, 1920.
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE NOTES.
1
Federal Reserve agents accounts at close of business on Fridays, Oct. 1 to Oct. 22, 1920.
[In thousands of dollars.]
Philadelphia.
Cleve- j Richtend. i mond.
San
AtMinne- Kansas
St.
lanta. Chicago. Louis. apolis. Citv. Dallas. Francisco.
Boston.
New
York.
64,600
67,300
71,100
71,700
143,000
143,000
140,800
141,000
35,880
28,280
35,280
35,280
27,680
25,400
31,200
28,800i
26,
26,538
24,078
24,219
71,675
69,705
61,465
51,955
60,640
62,520
58,760
57,480
20,480
19,220
18,020
16,620
7,040
5,040
7,270
8,020
6,270
6,970
6,920
6,920
16,480
13,660
12,715
12,295
323,686
326,111
321,802
321,188
974,483
973,365
980,188
979,389
284,618
289,361
289,402
2S7,550
367,726
369,961
368,524
368,465^
146,998
148,309
150,567
150,739
152,142
153,538
162,663
181,085
624,505
626,554
627,661
630,799
153,564
154,582
154,455
155,590
82,960
84,203
84,152
85,015
114,026
115,406
117,038
117,096
93,252
95,370
96,651
95,915
285,189 3,603,149
288,966 3,625,726
289,604 3,642,707
290,894 3,663,725
5,900
• 5,900
5,900
5,900
209,607
209,608
209,608
209,608
32,025!
32,025J
32,025
32,025
3,810
3,860
3,860
3,860
13,052
13,052
13,052
13,052
12,331
12,331
12,331
11,831
279,225
279,276
280,276
279,776
18,099
21,524
19,015
22,901
11,912
11,034
9,867
9,405
15,221 20,213
17,364 18,649
15,405 18,012
18,553 19,952!
3,739
2,037
3,630
4,005
1,31-7
1,060
1,439
1,012
111,000
106,000
106,000
115,000
45,000
15,000
15,000
45,000
106,389
106,389
114,389
101,389
90,0001
90,000
90,000
90,000
42,500
39,500
41,500
41,500
46,000 180,144 40,031
46,000 178.145 42,431
52,100 175,144 40,931
57,000 173,145 41,531
188,687
192,687
190,887
177,387
707,964
737,723
745,713
715,376
163,008
165,608
159,608
167,608
225,488
229,287
228,487
226,488
102,595
105,815
105,235
106,995
99,495
100,984
104,184
116,345
435,575
439,455
444,175
449,535
231,946 9,353
279,443 5,887
252,816 24,350
10,270
7.720
7)881
6,257
24,015
24,096
23,627
23,625
330,664
330,876
333,093
331,954
Total.
RESOUKCES.
Federal Reserve notes on hand:
Oct.l
Oct. 8
Oct. 15
Oct. 22
Federal Reserve notes outstanding:
Oct.l
Oct.8
Oct. 15
Oct. 22
Collateral security for Federal
Reserve notes outstanding:
Gold and gold certificates—
Oct.l
Oct.8
Oct. 15
Oct. 22
Gold redemption fund—
Oct.l
Oct.8
Oct. 15
Oct. 22
Gold settlement fund—Federal Reserve Board—
Oct.l
Oct.8
Oct. 15
Oct. 22
Eligible p a p e r Amount required—
Oct.l
Oct.8
Oct. 15
Oct. 22
Excess amount held—
Oct.l
Oct.8
Oct. 15
Oct. 22
Total resources:
Oct.l
Oct.8
Oct. 15
Oct.22
25,563
19,683
13,895
39,593
2,500
2,500
3,500
3,500
1,903
2,994
3,832
2,244
4,147
4,054
2,879
4,240
8,786
8,954
8,342
8,119
5,380
4,880
4,880
4,880
485,523
472,513
472,488
459,169
5,548
6,846
6,202
5,045
12,714
17,946
16,305
14,936
107,198
115,081
108,629
113,271
13,200
13,200
13,200
13,200
36,360 11,734
38,360 9,734
37,360 12,234
38,360 12,734
71,612
63,296
82,275
81,334
793,970
748,055
780,133
810,193
105,984
106,254
106,034
106,194
55,391
56,891
56,461
57,751
74,067
74,427
75,977
75,877
63,639
66,459
65,884
66,305
76,117
73,950
73,177
60,923
14,864
10,232
15,354
13,294
16,966
22,095
10,771
8,251
34,051
38,326
33,170
36,944
11,249
11,568
9,123
9,815
3,599
2,619
3,701
2,859
200,863 2,422,756
207,724 2,483,314
191,02412,473,669
194,624 2)460,485
256,289
8,750
22,519
39,726
42,594
28,321
737,535 2,323;,912
739,205 2,369;1,173
728,599 2,3531,992
753,
t; 356,067
614,469
612,889
638,434
619,130
785,651
805,048
810,842
794,051
399,1,974 1 ,385,767
400,877 1,389,578
410,418 %
x 387,259
437,7501 ,380,001
342,472
338,616
342,284
341,094
189,926
195,541
186,345
186,301
268.373
276)108
274,166
278,056
214,233
215,968
215,140
213,940
597,208|8,190,184
593,912 8,267,791
600,273j8,280,845
605,027 8,297,040
675,600 2,279,520
682,300 2,288,260
684,300 2,296,400
686,400 2,298,600
651,380 675,500 371,260 382,0001,140,440
651,380 677,020 374,620 383,020 1,146,200
660,380 684,020 376,580 385,080 1,147,160
660,380
378,480 395,i, 580 1,151,240
373,;
375,340
376,420
377,780
176,680
176,680
179,680
181,720
253,660
256,720
259,220
260,120
194,180
194,180
195,160
195,160
509, 540 7,',683,640
515, 900 7',721,620
519, 200 7',763,600
522,800 7,792, 880
287,3141,162,037
288,889 1 171,895
2 9 1 " " " ' 175,412
293,,5121 178,211
330,882
333,739
335,698
337,550
280,094
281,659
284,296
287,355
197,1
199,773
201,935
203,522
158,183
159,777
160,952
162,540
455,295
457,126
460,739
462,961
199,836
201,538
203,945
205,570
86,680
87,437
88,258
88,685
133,364
134,344
135,262
136,104
84,448
85,150
85,794
86,950
218, 9713,
3,594,968
222,
",623,381
224, 716 3;,648,405
227, 026 3i, 669,986
388, 2861 ,117,483
393, 4111 ,116,365
392, 9021,120,988
392, 8881',120,389
320,498
317,641
324,682
322,830
395,406
395,361
399,724
397,265
173,396
174,847
174,645
174,958
223,817
223,243
224,128
233,040
685,145
689,074
686,421
688,279
174,044
173,802
172,475
172,210;
90,000
89.243
91)422
93,035
120,296
122,376
123, 958
124,016
109,732
109,030
109,366
108,210
290, 569 4,088,672
293, 846 4 ,098,239
294,484| 4,115,195
' 122,894
295,"""
774 4.
266,519
235,642
234,475
264,013
121,610
123,753
129,794
119,942
142,238
140,674
140,037
141,977
44,403
42,494
45,332
43,744
47,580! 27,569
48,328 27,312
48,421 27,691
49,396 27,264
39,959
40,979
41,061
41)219
214,250 939,910 172,361 248,007
212,370 ,017,166 171,495 269,013
204,782 998,529 183,958 271,081
216,980 971,665 176,358 254,809
112,865
113,535
113,116
113,252
123,510
125,080
127,811
139,970
511,692
513,405
517,352
510,458
120,848
116,486
121,388
119,488
72,357
78,986
67,232
66,002
108,118
112,753
109,147
112,821
74,888
78,027
75,007
76,120
737, 535 2, 323,912 614,469
739,205 2!,369,173 612,889
728, 599 2;,353,992 638,434
753,669 2;,356,067 619,130
330,664
330,876
333,093
331,954
399,974 1.385,767
400,8771,389,578!
410,4181,387,259'
437,7501,380,001
342.472
338,616
342,284
341,094
189,926
195,541
186,345
186,301
268,373
276,108
274,166
278,056
214,233
215,968
215,140
213,940
21,450
11,100
16,185|
18,359
498,363
543,826
522,943
510,421
LIABILITIES.
Federal Reserve notes received
from Comptroller of the Currency—gross:
Oct.l
Oct.8
Oct.15
Oct.22
Less amounts returned for destruction:
Oct.l
Oct.8
Oct. 15
Oct.22
Net amount of Federal Reserve
notes received from Comptroller of Currency:
Oct.l......:..........-..-.
Oct.8
Oct. 15
Oct.22
Collateral received from Federal
Reserve Bank:
Gold—
Oct.l
i
Oct.8
Oct. 15
Oct.22
Eligible paper—
Oct.l
Oct.8
Oct. 15
Oct.22
Total liabilities:
Oct.l
Oct.8
Oct. 15
Oct.22
134,999
133,424
130,915
143,801
785,651
805,048
810,842
794,051
52,647 188,930
52,554 187,099
58,479 183,486
64,740 181,264
29,613 84, 326 1^,180,393
28,911 81, 2421 ,142,412
30,767 98, 5801 ,169,038
29,610 96, 2701.,203,240
222, 313 2,!, 921,119
218, 824 3;
;, 027,140
207, 209 2^,996,612
212, 983 2;!, 970) 906
597,',208
593,912
600,1,273
605,02
8,190,184
8,
\ 267,791
8,267;
8,!, 280,845
8,297.040
NOVEMBER, 1920.
1241
FEDERAL RESERVE BULLETIN.
Amounts of Federal Reserve notes received from and returned to other Federal Reserve Banks for redemption or credit during
the period Jan. 1 to Sept. 30, 1920.
Philadelphia.
New York.
Boston.
Cleveland.
Federal Reserve Bank.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
•St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco..
Total:
Jan. l t o Sept. 30,1920.
Jan. 1 to Sept. 30,1919.
Jan. 1 to Sept. 30, 1918.
Received.
Returned.
$46,498,900
4,424,000
1,994,300
2,643,000
1,568,550
4,009,200
1,045,670
364,000
574,750
389,750
1,579,185
$44,085,250
5,079,600
2, 827,100
2,398,100
2,128,500
4,884,800
816,500
632,400
831,000
991,400
1,042,000
65,091,305
41,667,915
13,815,990
65,716,650
68,557,100
20,594,000
Received.
Returned,
Received.
Returned.
Received.
$43,736,750
$47,321,300
52,430,100
34,277,250
20,624,400
13,809,950
38,148,550
5,561,250
4,117,350
4,959,650
4,922,000
13,024,750
$4,958,600
51,095,850
41,585,750
16,762,500
12,534,750
9,641,250
21,317,500
6,598,405
1,959,500
3,803,550
3,365,000
9,131,695
$4,638,000
43,659,100
$1,615,000
14,327,000
7,585,000
9,765,300
8,455,250
2,192,750
4,605,500
1,515,410
372,000
715,150
539,050
1,619,595
10,457,500
8,480,250
3,210,500
5,604,000
1,170,265
512,250
1,021,750
1,179,500
1,041,630
$2,784,790
34,535,750
10,087,750
6,508,000
4,419,650
17,988,000
6,444,430
855,000
1,686,050
960,100
2,440,150
3,832,500
2,530,500
13,875,500
1,864,000
898,000
1,383,000
1,117,500
824,500
170,436,650
181,666,130
77,239,900
239,196,550
201,106,650
76,868,150
85,834,455
48,355,455
26,282,675
80,974,745
72,412,550
40,733,160
88,709,670
71,949,565
26,126,950
49,852,500
50,302,900
12,715,200
Richmond.
Chicago.
Atlanta.
Returned.
St. Louis.
Federal Reserve Bank.
Received.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
:..'.
Total:
Jan. 1 to Sept. 30,1920
Jan. 1 to Sept. 30, 1919
Jan. 1 to Sept. 30. 1918
Returned.
Received.
Returned.
Received.
Returned.
Received.
Returned.
! $2,428,550
20,549,800
! 8,123,505
! 5,207,400
!
! 6,257,950
i 3,264,000
1,711,765
!
266,500
794,600
;
571,750
! 1,236,900
592,750
267,750
689,750
379,250
$2,127,400
13,554,050
3,056,000
3,047,500
9,265,750
$1,486,650
9,582,050
2,171,700
4,291,550
5,918,800
135,250
006,250
,777,750
538,750
,613,750
,240,750
485,000
$4,921,000
38,204,200
5,297,500
16,367,400
5,145,000
6,558,900
$4,015,000
21,154,500
4,859,500
18,090,500
3,208,500
4,869,000
4,872,500
7,353,460
361,500
1,400,850
3,477,550
2,164,530
6,048,750
9,591,200
607,400
1,398,900
3,964,600
869,700
$819,900
5,527,550
1,066,000
2,387,800
1,848,000
9,342,300
10,981,500
$1,052,910
6,591,440
1,598,457
6,470,145
1,691,095
7,297,215
26,202,990
26,128,190
12,034,500
10,559,250
2,811,900
10,469,910
10,993,000
16,626,000
9,174,000
2,858,500
7,563,500
686,500
6,007,800
3,407,100
2,119,760
1,384,185
8,181,735
6,424,267
2,103,045
50,412,720
55,159,445
17,956,075
50,727,000
58,439,500
17,629,050
50,681,090
44,434,365
14,539,460
45,931,300
41,062,955
14,871,700
138,497,750
109,302,345
31,123,820
103,412,000
97,795,700
37,893,100
44,194,210
37,906,795
9,877,675
68,997,484
56,811,190
24,362,130
Minneapolis.
Kansas City.
Dallas.
San Francisco.
Total.
Federal Reserve Bank.
Received. Returned Received. Returned Received. Returned. Received. Returned, Received.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$630,400 $354,500 $863,100 $570,250
4,117,350 1,966,000 4,867,650 3,814,050
996,000
764,150
377,500
498,250
859,500 1,812,000 1,732,050
1,152,000
670,400
261,500 1,647,250
542,000
368,500 1,463,050 1,437,850
598,950
16,714,500 12,005,000 9,277,500 10,829,750
686,500 8,312,470 6,094,800
1,378,185
1,722,000 2,301,750
2,303,250 1,739,500
328,850 ' 4," 035," 600 5,'405," 200
407,700
3,743,995 2,610,500 5,379,265 4,379,900
Returned
$1,008,160 $396,850 $1,137,800 $1,740,650 $65,416,450 $65,783,860
4,556,800 3,101,200 12,860,150 I 9,599,155 236,368,050 170,147,495
1,135,250
965,000 1,701,985 77,235,005 85,781,692
523,950
1,239,250
944,500 ! 2,528,830 60,679,950 88,827,475
913,800
2,244,250
504,750 ; 1,243,800 51,338,000 48,861,145
531,800
3,834,450 3,350,250
897,000 2,188,860 46,774,800 50,326,375
2,865,500 2,635,400 7,985,500 i 10,585,180 103,881,200 135,826,170
6,300,872 3,313,650 2,116,165 ! 2,140,500 68,905,022 44,009,415
298,000
405,950 2,759,000 ! 3,796,295 21,678,500 31,820,330
5,328,650 3,768,500 4,292,400 5,329,385 37,466,300 39,401,170
3,237,550 3,109,745 23,203,050 32,542,312
42,923,075 36,741,575
3,038,090 2,797,050
Total:
Jan.ltoSept.30,1920. 32,086,580 21,557,850 40,375,885 38,000,150 31,849,272 121,738,400 37,699,815 43,964,385 835,869,402 '830,069,014
Jan. 1 to Sept. 30,1919. 29,409,985 23,058,500 39,894/075 28,144,700 18,859,270 11,210,000 30,666,345 26,582,805 709,271,690 J735,484,550
Jan. 1 to Sept. 30,1918. 10,117,700 5,405,800 25,783,030 3,980,505 8,238,350 8,884,100 10,157,065 i 4,723,685 271,258,690 268,660,580
CONDITION OF MEMBER BANKS IN LEADING CITIES.
Further increases in loans and investments,
accompanied by commensurate increases in
borrowings from the Federal Reserve Banks for
the four-week period between September 17
and October 15 are indicated by the statements
of condition of about 820 member banks in
leading cities. A notable development during
the period is the increase shown in loans sup-
ported by corporate securities, reflecting to
some extent recent corporate financing and
operations connected with the redemption of
the Anglo-French loan. Loans secured by
Government war obligations show & continuous
reduction, while other loans and investments,
composed largely of commercial loans and discounts, show the largest growth for the period.
1242
FEDERAL RESERVE BULLETIN.
Government operations, comprising chiefly
the redemption and issuance of Treasury certificates on October 15, the payment of the
semiannual interest on the fourth Liberty
bonds, and the gradual withdrawal of balances
on account of the more recent certificate issues,
affect primarily total Treasury certificate holdings and the item of Government deposits,
while the increase in loans on corporate securities reflects to a large extent the calling of
NOVEMBER, 1920.
street loans by the fiscal agents in New York of
the Governments concerned, preparatory to the
redemption on October 15 of the Anglo-French
bonds and the assumption of these loans by
reporting members largely in Boston and New
York City.
A summary of the weekly changes in the
principal asset and liability items of all reporting member banks, also of corresponding figures for the first Friday in the year, follows:
Principal resources and liabilities of member banks in leading cities on Jan. 2, 1920, and on Fridays from Sept. 17 to Oct.
IS, 1920.
[In millions of dollars.]
Jan. 2.
Number of banks
United States bonds
United States Victory notes
*
United States certificates of indebtedness
Total United States securities owned
Loans secured by Government war obligations, including rediscounts
with Federal Reserve Bank
Loans secured by corporate stocks and bonds
All other loans and investments, including rediscounts with Federal
Reserve Bank
Total loans and investments, including rediscounts with Federal
Reserve Bank
Reserve balance with Federal Reserve Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
Bills discounted and rediscounted with Federal Reserve Bank, total...
Secured by Government war obligations
AH other
As against nominal changes in their holdings
of United States bonds and Victory notes the
reporting banks show considerable fluctuation
in the amounts of Treasury certificates held, a
decline of about 98 millions during the first
three weeks being followed by an increase of
about 44 millions on October 15, the date of
allotment by the Government of over 124 millions of 5-month tax certificates. The total of
certificates held by reporting banks at the close
of the period under review, 361.7 millions,
marks, however, an increase of 29.7 millions
since the beginning of the year. For the member banks in New York City an increase for the
four weeks of 5.4 millions in the holdings of
United States bonds and Victory notes, as
against a reduction of 34.5 millions in Treasury
certificates, are noted.
Loans secured by Government war obligations show a slow but steady decline and on
October 15 totaled 924 millions, a decrease of 32
millions since September 17 and of 365 millions since the beginning of the year. On the
other hand total loans supported by corporate
securities increased during the four-week
period by 123 millions, this being the combined
increase of the item for the New York and Bos-
Sept. 17.
Sept. 24.
i
Oct. 1.
Oct. 8.
Oct. 15.
798
818
818
820
822
822
906
238
857
879
191
416
873
191
384
873
190
326
879
190
318
877
191
362
2,001
1,486
1,448
1,387
1,430
1,289
3,406
956
3,039
950
3,056
949
3,100
937
3,091
924
3,162
9,892
11,577
11,686
11,706
11,774
11,768
16,588
17,058
17,140
17,144
17,189
17,284
1,442
431
11,609
2,334
1,390
370
11,392
2,781
331
1,362
358
11,161
2,787
315
1,344
351
11,230
2,794
275
1,385
376
11,212
2,796
247
1,422
381
11,473
2,808
1,871
1,210
661
1,972
937
1,035
2,151
949
1,202
2,165
914
1,251
2,250
946
1,304
2,249
928
1,321
ton banks. All other loans and investments,
composed largely of commercial loans and discounts, show a further advance of 191 millions
for the four weeks under review and an advance of 1,876 millions since January 2 of the
present year. In consequence of the changes
shown in the principal loan and investment
accounts, total loans and investments on October 15 were 226 millions larger than on September 17 and 696 millions in excess of the corresponding January 2 total. For the New York
City banks increases of 40.6 millions in other
loans and investments and of 91.7 millions in
total loans and investments are shown. The
ratio of combined holdings of United States
war securities and loans supported by such securities to total loans and investments, shows a
further decline from 12.7 to slightly over 12 per
cent for all reporting banks and from 16.2 to
about 15 per cent for the member banks in New
York City.
As the result of gradual withdrawals of funds
from depositary institutions Government deposits with the reporting banks show a continuous reduction from the high level of 331.4
millions on September 17 to 188.4 millions on
October 15. Other demand deposits (net)
1243
FEDERAL RESERVE BULLETIN.
NOVEMBER 1920.
fluctuated between 11,160.5 millions on September 24 and 11,472.9 on October 15, the large
increase on the latter date reflecting in part
substantial transfers of deposit credits from
Government to individual account, deposits of
funds received in payment of matured home
and foreign Government obligations, also additional credits to deposit account extended to
borrowers on corporate securities. Time deposits show a moderate but steady growth during the period, the October 15 total, 2,808.3 millions, being 27.6 millions larger than the September 17 total. For the New York City banks
decreases from 199.9 to 86.9 millions in Government deposits and from 340.4 to 335 millions
in time deposits, as against an increase from
4,629.2 to 4,647.7 millions in net demand deposits, are shown.
Accommodation of reporting member banks
at the Federal Reserve Banks, as shown on the
books of the latter, shows a continuous growth
from 1,972 millions on September 17 to 2,249
millions four weeks later, the weekly increases
in the borrowings of reporting member banks
from their Federal Reserve Banks correspond-
ing fairly closely to the increases in the loan
accommodation extended by these banks to
their own customers. The ratio of member
bank borrowings at the Federal Reserve Banks
to total loans and investments of reporting
banks, which affords a rough index of the extent to which the loan burden of these banks is
shifted to the Reserve Banks, shows a rise during the four weeks from 11.6 to 13 per cent.
For the New York City banks an even larger
increase in this ratio, from 11.7 to 14.6 per cent
is seen.
Reserve balances declined from 1,390.1 millions on September 17 to 1,343.6 millions on
October 1. During the subsequent two weeks
as a consequence of both the increase in the
loans and deposits of the reporting banks and
the larger borrowings from the Federal Reserve Banks, these balances went up to 1,422.1
millions. Cash in vault reached a total of
381.1 millions, marking an increase of 11.4
millions for the period. For the New York
City banks increases of 14.7 millions in reserve balances and of 2.9 millions in cash on
hand are shown.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays frovi Sept. 24 to Oct. 15, 1920.
1. ALL REPORTING MEMBER BANKS.
[In thousands of dollars.]
Boston.
Number of reporting
banks:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
United States bonds to
secure circulation:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Other United States
bonds,including Liberty bonds:
Sept. 24
Oct.l
Oct. 8
Oct. 15
United States Victory
notes:
Sept. 24
Oct.l
Oct. 8
Oct. 15
United States certificates of indebtedness:
Sept. 24
Oct.l
Oct. 8
Oct. 15
Total United States
securities owned:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank:
Sept. 24
Oct.l
Oct. 8
Oct. 15
New
York.
Philadelphia.
Cleveland.
Richmond.
AtMinne- Kansas
St.
lanta. Chicago. Louis. apolis. City. Dallas.
113
113
113
114
106
108
108
108
San
Francisco.
Total.
68
818
820
822
822
83
12,459
12,507
12,507
12,608
46,492
46,753
46,498
46,798
11,347
11,347
11,347
11,347
42,243
42.279
42.280
42,273
28,709
28,708
14,285
14,335
14,380
14,380
21,550
21,552
21,550
21,550
16,923
16,923
16,923
16,923
7,371
7,371
7,371
7,371
15,471
15,471
14,701
14,701
19,573
19,573
19,573
19,573
32,638
32,638
32,638
32,648
269,061
269,457
268,576
268,980
17,785
18,076
18,171
18.081
250,477
249,885
255,535
253,139
28,919
28,479
28,802
28,932
60,180
60,018
59,653
60,682
33,610
33,901
33,839
33,675
28,077
28,658
28,049
28,163
52,083
53,064
51,976
52,407
13,463
13,110
13,217
13,361
9,605
9,632
9,807
10,005
24,710
23,503
24,965
23,391
21,113
21,375
22,365
21,849
63,782
63,301
63,919
64,061
603,804
603,002
610,298
607,746
5,711
5,808
5,863
5,838
81,119
81,379
79,666
82,995
9,175
9,258
9,039
9,155
19,634
19,515
20,025
18,548
7,231
7,402
7,372
7,245
4,625
4,281
4,103
4,078
39,021
38,273
38,607
38,699
2,569
2,664
2,572
2,615
1,032
1,032
996
1,025
5,151
4,828
5,313
5,080
3,332
3,065
3,046
3,066
12,872
13,264
13,638
13,074
191,472
190,769
190,240
191,418
20,363
19,336
19,332
25,328
200,637
156,961
155,871
166,951
19,286
17,729
16,248
26,701
20,264
18,206
16,110
25,552
8,417
7,345
7,421
7,764
9,127
8,461
7,803
6,944
58,366
54,665
51,866
54,810
3,880
3,935
3,882
5,175
2,060
1,789
1,994
2,103
10,421
8,077
7,924
8,554
4,836
4,616
4,575
5,842
25,463
24,584
24,823
26,029
383,420
325,704
317,849
361,753
56,318
55,727
55,873
61,855
579,025
534,978
537,570
549,883
68,727
66,813
65,436
76,135
142,321 77,967 56,114
140,018 77,356 55,735
138,068 77,440 54,335
147,055 77,492 53,565"
171,020
167,554
163,999
167,466
36,835
36,632
36,594
38,074
20,068
19,824
20,168
20,504
55,753
51,879
52,903
51,726
48,854
48,629
49,559
50,330
134,755
133,787
135,018
135,812
1,447,757
1,388,932
1,386,963
1,429,897
48,716
48,319
47,307
47,400
464,358 82,685
465,081 79,655
462,447 75,862
455,985 75,350
74,791 31,195 32,387
73,652 31,827 33,472
72,232 30,810 32,140
71,455 30,528 31,090
97,457
97,099
96,355
93,678
31,079
32,204
31,858
31,672
16,015
16,275
15,831
15,538
27,461
27,912
28,129
27,648
10,735
10,981
10,842
10,610
33,445
32,538
33,121
32,768
950,324
949,015
936,934
923,722
1244
NOVEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve:
Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from, Sept. 24 to Oct. 15, 1920—Con.
1. ALL REPORTING MEMBER BANKS—Continued.
[In thousands of dollars.]
Boston.
New
York.
Philadelphia.
Cleveland.
Rich- Atmond. lanta. Chicago.
Loans secured by
stocks and bonds,
other than United
States securities:
Sept. 24
187,199 |l, 284,431 1215,328
323,754 108,839
Oct. 1
195,660 ,327,009 212,561 326,005 108,359
194.536 ,318,888 211,364 326,087 108,213
Oct. 8
202,274 1,370,820 214,430 328,219 107,891
Oct. 15
All other loans and investments, including
rediscounts with Federal Reserve Bank:
Sept. 24
821,893 4,149,412 594,072 965,249 405,727
Oct. 1
820,785 4,156,820 593,508 973,195 408,009
Oct. 8
815,180 4,203,976 592,735 985,504 409,019
Oct. 15
815,947 4,188,201 " " 2 7 1
980,420 403,227
Total loans and investments, including rediscounts with Federal Reserve Bank:
Sept. 24
1,114,126 6,477,226 960,812 1,506,115 623,728
Oct.l
1,120,491 6.483.888 952,537 1,512,870 625,551
Oct. 8
1,112,896 6,522,881 945,397 1,521,891 625,482
Oct. 15
1,127,476 6.564.889 964,186 1,527,149 619,138
Reserve balances with
Federal Reserve
Bank:
Sept. 24
81,511 651,105 69,247 101,074 35,274
Oct.l
83,072 624,985 67,609
106,554 35,507
Oct. 8
80,922 665,980 68,764 103,680 36,213
Oct. 15
90,568 681,564 73,260 101,177 37,409
Cash in vault:
Sept. 24
24,588 114,726 17,445
32,836 16,126
Oct. 1
25,113 108,145 17,382
34,287 15,816
Oct. 8
120,942 17,738
36,645 18,559
27,333
Oct. 15
122,576 17,123
37,218 17,273
27,783
Net demand deposits
on which reserve is
computed:
Sept. 24
806,492 5,010,977 i690,209 928,816 338,851
Oct.l
825,877 5,028,351 690,432 955,790 339,514
Oct. 8
810,213 5,022,424 692,210 949,281 343,307
Oct.15
860,706 5,154,324 693,119 955,757 344,815
Time deposits:
Sept. 24
154,465 468,562 38,895 376,942 107,741
Oct. 1
158,218 464,666 ! 38,767 378,793 108,359
Oct. 8
158,625 460,573 ! 39,073 377,938 107,515
Oct.15
159,335 472,242 39,435 378,786 106,236
Government deposits:
17,441 194,512 20,159
Sept. 24
28,426 3,556
15,182 173,076 17,855
20,748 3,178
Oct.l
13,684 156,197 16,110
18,465 2,889
Oct. 8
16,261
19,035 2,754
89,482 20,692
Oct.15
Bills payable with Federal Reserve Bank:
Secured by United
States war obligations—
17,416 33,871
27,780 318,690 50,682
Sept. 24
15,105 33,440
24,616 303,647 45,333
Oct.l
17,574 32,698
26,545 336,492 44,369
Oct. 8
23,410 32,070
15,429 333,148 49,193
Oct. 15
All other36
807
Sept. 24
36
Oct.l
36
Oct. 8
36
Oct. 15
Bills rediscounted with
Federal Reserve
Bank:
Secured by United
States war obligations12,496 3,727
17,198 143,281 42,694
Sept. 24
11,729 3,941
17,155 143,001 41,048
Oct.l
11,796 3,976
16,528 141,794 38,357
Oct. 8
15,706 138,570 38,539
11,878 4,664
Oct. 15
All other56,852 344,944 27,652
39,618 44,345
Sept. 24
68,314 367,996 32,553
35,525 45,950
Oct. 1
64,949 423,533 28,086
36,665 44,551
Oct. 8
60,834 436,754 34,853
39,032 41,653
Oct. 15
Minne- Kansas
St.
Louis. apolis. City. Dallas.
127,106 I 30,941
126,580 30,691
126,206 30,827
126,098 32,946
41,521
41,245
37,847
40,858
80,406
79,144
82,094
82,776
Ran
Francisco.
Total.
147,623
146,432
146,291
145,861
3,055,942
3,100,175
3,091,151
3,162,257
62,140
61,060
61,280
60,082
446,654
445,427
447,518
450,002
429,437
434,013
429,190
425,398
,825,458
,837,116
,831,534
,840,774
407,023
411,489
418,172
415,686
286,803
286,470
297,525
298,223
544,020
522,791
524,341
539,942
263,804 993,325 11,686,223
264,283 997,787 11,706,266
263,970 1,002,410 11,773,556
263,837 998,194 11,768,120
580,078
584,280
576,945
170,135
2,540,589
2,547,196
2,539,406
2,551,920
602,043
606,905
612,830
611,530
353,827
353,260
|364,351
|367,211
707,640
681,726
687,467
702,092
364,914
365,138
362,218
365,635
1,309,148
1,310,544
1,316,840
1,312,635
17,140,246
17,144,38ft
17,188,604
17,283,996
29,909
31,917
30,336
29,773
187,113
187,342
189,400
194,766
40,965
38,791
38,838
38,121
19,394
18,476
20,213
21,693
42,788
45,626
45,812
43,681
23,401
23,762
24,369
27,133
80,019
79,910
80,153
82,937
1,361,800
1,343,551
1,384,680
1,422,082
13,788
13,669
14,121
14,685
65,817
65,686
66,803
70,203
9,641
9,389
9,986
9,538
8,911
8,668
9,287
8,675
14,843
14,170
1^821
14,971
11,429
11,810
12,101
12,061
28,233
27,022
28,134
29,008
358,383
351,157
376,470
381,114
258,455
260,866
257,734
260,056
1,363,590
1,373,377
1,373,884
1,433,086
307,995
307,969
307,465
308,610
!
186,971
!
185,836
193,943
193,456
412,468
404,849
400,875
'389,526
224,373
227,306
228,649
229,548
631,340
629,907
632,245
649,921
11,160,537
111,230,074
11,212,230
11,472,924
151,318
150,961
149,423
148,824
629,214
632,789
635,489
635,404
126,016
126,308
128,063
128,291
63,996 i
• 64,824 I
68,043 |
68,898 I
1,790
1,680
1,449
2,078
19,597
17,135
15,558
14,378
33,737
33,475
32,980
32,001
i
!
!
|
6,857 2,831 j
6,049 i 2,430 \
5,458 2,230 j
5,167
1,956 j
19,338
87; 667 20,069
84,420 20,377
82,252 20,332 ;
55
4,965
4,100
1,750
1,750
10,754
11,463
10,869
9,980
17,105
17,680
18,109
16,873
8,548
8,979
9,140
8,855
74,010
74,471
73,492
73,781
290,889
293,371
292,657
289,987
75,750
78,002
86,190
84,996
97,457
97,393
96,779
97,146
55,021
59,601
55,414
55,663
1,814
5,267
4,572 1,571
4,120 1,414
4,219 2,200
4,779
5,207
5,566
6,009
30,104
26,748
28,270
25,726
400
450
483
533
525
34
25
1,100
18,935
18,767
19,406
18,452
517,184 j 2,786,811
513,182 2,793,861
519,241 2,796,176
518,043 2,808,303
13,114 | 315,364
11,561
275,037
9,562
247,136
10,179
188,401
28,621
30,698
32,206
30,601
677,935
644,772
680,903
85
85
210
190
6,873
4,705
3,445
4,339
i 1,773 7,485
| 1,820 7,234
I 1,415 7,381
I 1,517 7,146
2,466
2,524
2,511
2,427
3,803
2,963
3,288
3,046
271,330
269,537
265,164
259,201
74,110
76,188
75,133
86,163
26,266
29,463
27,482
28,390
79,108
84,501
84,370
76,418
1,194,772
1,246,435
1,300,450
1,316,807
! 61,228
I 60,101
i 63,342
63,946
1245
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Principal resource and liability items of member banks in leading cities, including member banlcs located in Federal Reserve
Bank, cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15, 1920.-—Con.
2. MEMBER
BANKS IN F E D E R A L R E S E R V E
BANK CITIES.
fin thousands of dollars.1,
Boston.
Number of reporting
banks:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
United States bonds to
secure circulation:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Other United States
bonds, including Liberty bonds:
Sept. 24
Oct 1
Oct. 8
Oct 15
United States Victory
notes:
Sept 24
Oct.l
Oct 8
Oct. 15
United States certificates of indebtedness:
Sept. 24
Oct 1
Oct 8
Oct. 15
Total United States securities owned:
Sept 24
Oct. 1
Oct. 8
Oct 15
Loans secured by G overnment war obligations, including rediscounts with Federal Reserve Bank:
Sept. 24
Oct 1
Oct. 8
Oct 15
Loans secured by stocks
and bonds,other than
United States securities:
Sept 24
. . . .
Oct.l
Oct 8
. . .
Oct 15
All other loans and investments, including
rediscounts with Federal Reserve Bank:
Sept .24
Oct 1
Oct. 8
Oct 15
Total loans and investments, including rediscounts with Federal Reserve Bank:
Sept. 24
Oct 1
Oct. 8
Oct 15
Reserve balances with
Federal Reserve
Bank:
Sept 24
Oct 1
Oct. 8
Oct 15
Cash in vault:
Sept. 24
Oct 1
Oct. 8
Oct.15
New
York.
Philadelphia.
Cle eland.
Richmond.
Atlanta.
Chicago.
St.
Minne- Kansas
Louis. apolis. City.
Pallas.
San
Francisco.
Tolal.
24
24
24
24
71
71
71
71
44
44
44
44
12
12
12
12
9
9
9
9
8
8
8
8
49
51
51
51
13
13
13
13
9
9
10
10
20
20
19
19
8
8
8
8
15
15
15
15
282
284
284
284
2,281
2,281
2,281
2,281
36,795
37 056
36,801
37,101
7,337
7,337
7,337
7,337
3,664
3,671
3,672
3,671
2,777
2,776
2,776
2,776
3,100
3,100
3,100
3,100
1,438
1,440
1,439
1,439
10,293
10,293
10,293
10,293
2,791
2,791
2,791
2,791
5,046
5,046
4,276
4,276
4,560
4,560
4,560
4,560
16,650
16,650
16,650
16,650
96,732
97,001
95,976
96,275
6,217
6,583
6,690
6,616
217,471
216,640
222,837
220,593
21, 754
21,594
21,9322,012
7,754
7,786
7,659
7,768
4,686
4,686
4,686
4,686
1,536
1,536
1,536
1,536
16,880
17,965
16,981
17,377
5,183
5,213
5,305
5,298
1,756
1,823
1,879
1,953
9,111
7,789
9,426
7,932
6,140
6,406
6,391
6,329
38,225
38,156
38,919
38,758
336,713
336,177
344,245
340,858
344
462
486
455
71,738
71,860
70,275
73,695
6,646
6,653
6,613
6,628
2,244
2,236
2,234
2,337
159
159
159
159
176
186
176
176
10,962
10,814
11,105
11,212
538
651
551
539
208
208
214
216
2,934
2,587
3,044
2,613
1,020
750
753
754
5,101
5,112
5,474
5,405
102,070
101,678
101,084
104,189
8,532
8,736
9,131
12,737
185,705
142,802
141,817
151,238
17,617
16,170
14,824
25,009
1,833
1,504
1,456
2,265
711
622
578
589
587
557
517
507
17,130
16,576
15,631
19,230
2,413
2,567
2,614
3,653
478
414
458
537
4,708
2,378
2,256
2,732
1,676
1,454
1,392
1,532
14,047
13,785
13,864
15,042
255,437
207,565
204,538
235,071
17,374
18,062
18,588
22,089
511,709
468,358
471,730
482.627
53,354
51,754
50,710
60,986
15,495
15,197
15,021
16,041
8,333
8,243
8,199
8,210
5,399
5,379
5,329
5,319
46,410
46,795
45,156
49,258
18,427
18,724
18,763
19,783
5,233
5,236
5,342
5,497
21,799
17,800
19,002
17,553
13,396
13,170
13,096
13,175
74,023
73,703
74,907
75,855
790,952
742,421
745,843
776,393
40,282
39,892
39,011
39,269
434,912
435,712
433,570
427,402
78,668
75,643
71, 851
71, 590
18, 844
18,346
19,029
19,171
8,570
8,646
8,565
7,895
6,167
7,200
6,649
6,648
65,867
64,629
64,204
62,299
18,626
19,701
19,581
19,306
9,125
9,086
8,956
8,898
11,600
12,064
11,980
11,430
2,427
2,709
2,660
2,576
15,698
14,857
15,171
14.810
710,786
708,485
701,227
691,294
142,503
150,157
150,138
154 220
1,131,898 196,775
1,175,049 194,017
1,169,848 192,024
1 221 229 195 041
113,003
112,956
115,431
112,351
15,743
15,770
15,764
15,441
7,152
6,847
7,230
6,664
330,914
330,149
333,045
334,777
87,356
86,896
86,522
87,019
15,803
15,700
16,084
18,080
33,904
34,960
35,055
35,104
13,117
12,879
9,151
12,381
70,147
69,103
68,645
69,055
2,158,315
2,204,483
2,198,937
2,261,362
601,172
601 482
593,304
594 032
3,670, 828
3,673,708
3,720,510
3,698,733
521,114
522.181
521,737
527,900
309,930
309,168
313,872
308,831
79,633
81,286
81,122
77,911
76,803
76,521
75,386
75,372
],093,749
1,103,131
1,099,647
1,103,563
273,106
275,257
281,091
278,964
143,513
142,692
146,884
146,163
193,438
183,100
183,624
179,060
64,372
65,538
64,746
66,587
485,122
487,588
491,276
490,322
7,512,780
7,521,652
7,573,199
7,547,438
801,331
809 593
801,041
809 610
5,749,347
5,752,827
5,795,658
5,829,991
849,911
843,595
836,322
8o5^ 517
457,272
455,667
463,353
456,394
112,279
113,945
113,650
109,457
95,521
95,947
94,594
94,003
1,536,940
1,544,704
1,542,052
1,549,897
397,515
400,578
405,957
405,072
173,674
172,714
177,266
178,638
260,741
247,924
249,661
243,147
93,312
94,296
89,653
94,719
644,990
645,251
649,999
650,042
11,172,833
11,177,041
11,219,206
11,276,487
65 090
66,872
64,619
71,433
614,380
581,542
628,922
640,552
62,836
60,676
62,671
65,393
28,203
28,996
27,693
25,675
5,991
5,526
5,990
6,675
4,871
5,473
5,618
5,282
134,809
132,718
135,959
138,640
30,975
28,898
29,058
29,123
8,804
8,298
8,408
10,265
16,529
15,336
14,974
12,087
5,645
6,090
5,722
8,916
36,75G
37,696
37,755
37,993
1,014,889
978,121
1,027,389
1,052,034
14,817
16,086
16,897
17,005
101,785
96,206
106,985
107,949
14,077
13,868
14,505
13,811
8,452
8,908
9,204
9,979
1,646
1,530
1,852
1,720
2,549
2,286
2,562
2,990
37,715
37,890
38,147
41,160
4,857
4,853
4,965
4,808
2,811
2,584
3,062
2,980
3,788
3,709
3,836
3,796
1,918
1,651
2,073
2,109
10,386
9,817
10,547
10,536
204,801
199,388
214,635
218,843
1246
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15, 1920—Con.
MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Net demand deposits
on which reserve is
computed:
Sept. 24
Oct.l
Oct.8
Oct. 15
Time deposits:
Sept. 24
Oct.l
Oct. 8
Oct.15
Government deposits:
Sept. 24
Oct.l
Oct.8
Oct.15
Bills payable with Federal Reserve Bank:
Secured by United
States war obligationsSept. 24
Oct.l
Oct. 8
Oct. 15
All o t h e r Sept.24
Oct.l
Oct. 8
Oct. 15
Bills rediscounted with
Federal Reserve
Bank:
Secured by United
States war obligationsSept. 24
Oct.l
Oct.8
Oct. 15
All o t h e r Sept.24
Oct.l
Oct.8
Oct.15
San
Francisco
Total.
61,681
64,509
64,186
63,456
301,496
300,949
304,842
310,312
7,813,064
7,847,118
7,849,073
8,031,637
11,377
11,384
11,195
11,279
5,462
5,489
5,449
5,449
239,260
239,853
240,353
238,937
1,283,164
1,289,575
1,286,711
1,299,437
861
774
694
514
4,586
3,973
3,585
3,326
1,646
1,423
1,283
1,061
11,713
10,368
8,482
8,674
261,293
232,136
208,668
145,491
367
525
224
527
16,480
13,017
13,839
12,351
5,069
4,831
5,445
4,481
15,664
16,705
18,342
17,329
442,212
415,986
456,808
438,527
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
Chicago.
623,242
632,041
617,912
660,064
4,528,310
4,524,529
4,527,268
4,647,698
602,048
601,481
604,757
605,457
230,660
241,131
237,619
238,920
53,446
53,483
55,193
54,216
41,150
42,005
42,243
43,209
930,933
944,993
955,006
980,594
215,330
217,660
215,627
217,809
85,620
83,996
86,255
85,437
139,148
140,341
138,165
124,465
55,912
59,463
59,705
60,349
333,681
329,183
324,035
334,984
28,613
28,479
28,712
29,019
182,358
183,992
182,152
182,670
21,138
21,208
21,400
21,562
21,113
21,136
21,342
21,222
285,883
289,990
291,167
291,731
74,560
74,890
76,277
76,287
23,807
24,508
24,924
25,948
12,582
11,078
9,997
11,186
189,452
168,684
152,238
86,854
19,622
17,381
15,684
20,102
5,233
4,718
4,222
2,096
394
389
349
543
173
159
139
109
9,330
8,156
7,473
6,897
5,701
5,033
4,542
4,129
23,207
20,115
23,558
10,062
287,530
274,352
309,990
303,773
47,214
41,660
40,283
44,617
1,528
2,225
3,658
2, £58
.,823
i, 934
.,030
i,587
1,295
1,278
1,225
1,225
26,379
22,461
22,208
23,223
10,656
11,883
12,006
11,794
[
I
;
|
St.
Minne- Kansas
Louis. apolis. Citv. Dallas.
500
4,965
4,100
1,750
1,750
16,513
16,245
15,648
15,051
139,135
138,849
137,957
134,710
42,215
40,649
37,878
38,160
56,477
67,673
64,498
60,428
322,362
338,107
398,256
409,808
25,814
31,037
26,770
33,371
5,465
4,109
1,750
2,550
800
1,660
2,290
2,100
1,803
10,260
10,425
9,854
9,139
4,670
5,005
4,774
4,554
1,278
1,212
1,067
1,081
4,232
4,098
4,090
3,790
5S1
454
503
462
2,454
1,538
1,545
1,395
225,521
222,983
217,618
212,822
30,314 13,264 15,952
24,210 13,187 16,660
27,977 12,731 15,248
31,502 9,843 14;295
215,191
212,824
209,943
210,068
55,162
55,927
64,813
61,364
43,497
44,297
47,585
48,856
32,623
34,883
34,489
34,256
8,608
9,389
7,831
9,483
44, 956
49, 308
47, 246
41, 217
864,220
897,502
957,387
964,491
2,523
2,218
2,202
2,677
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES.
[In thousands of dollars.]
New
CleveRichAtlanta4 Chicago St. Louis
York
land
mond
district.1 district.? district.* district. districts district.
Number of reporting banks:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
United States bonds to secure circulation:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Other United States bonds, including
Liberty bonds:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
United States Victory notes:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
United States certificates of indebtedness:
Sept.24
Oct. 1
Oct. 8
Oct. 15
10
10
10
11
Total.
•
i
I
!
19
19
19
18
24
24
23
23
1,599
1,599
1,599
1,599
25,164 !
25,193 I
25.193 I
25,187 I
5,608
5,608
5,608
5,608
6,930
6,980
6,980
6,980
1,905
1,905
1,905
1,905 j
5,280
5,280
5,280
5,280
72,177
72,256
72,256
72,250
11,275
11,253
10,725
10,627
40,916 !
40,761 I
40,604 !
41,590 I
9,368
9,361
9,276
9,055
22,118
22,683
22,118
22,172
7,778
7,388
7,382
7,536
147,328
146,982
145,338
146,492
1,951
2,235
2,118
2,030
14,215
14.194
14,675
13,099
2,852
2,840
2,837
2,703
3,225
2,877
2,705
2,682
17,509 j
17,532
17,530
17,582
I
18,759 j
18,249 i
18,302 !
18,295 !
73916
7,313
7,277
8,622
14,280
12,577
10,454 I
18,436 j
840 !
1,315 j
6,973
6,365
6,165
30,654 i
28,707 j
27,413
26,651
40
40
40
40
12
12
12
12
|
|
i
|
i
1 Buffalo.
2 Pittsburgh and Cincinnati.
3 Baltimore.
4 New Orleans, Birmingham, Jacksonville, and Nashville.
5 Detroit.
1,926
1,910
1,908
1,963
1,337 I
1,238
1,137
1,391
1,063
1,087
1,130
1,092
j
I
S
:
1,196
1,196
1,180
1,196
3,800
3,777
3,770
3,776
i
|
1
)
1,479
1,479
1,480
2,540
I
;
i
i
7,315
7,695
7,707
7,212
52,502
52,283
52,562
50,272
9,588
9,758
9,790
77,654
72,512
68,494'
78,686
e Louisville, Memphis, and Little Rock.
i Omaha, Denver, and Oklahoma City.
s El Paso and Houston.
Spokane, Portland, Seattle, Salt Lake City, and Los Angelas
9
1247
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
Principal resource and liability items of member banks in leading cities, including member banks located in Federal Reserve
Bank cities and in Federal Reserve Branch cities, as at close of business on Fridays from Sept. 24 to Oct. 15,1920—Con.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued.
(In thousands of dollars.]
New
York
district.
Total United States securities owned:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Loans secured by Government war obligations, including rediscounts with
Federal Reserve Bank:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Loans secured by stocks and bonds, other
than United States securities:
Sept. 24
Oct.l
Oct. 8
Oct. 15
A11 other loans and investments, including rediscounts with Federal Reserve
Bank:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Total loans and investments, including
rediscounts with Federal Reserve
Bank:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Reserve balances with Federal Reserve
Bank:
Sept. 24
Oct.l
Oct. 8
Oct. 15
Cash in vault:
Sept. 24
Oct.l
Oct. 8
Oct. 15
Net demand deposits on which reserve
is computed:
Sept. 24
Oct.l
Oct. 8
Oct. 15
Time deposits:
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Government deposits:
Sept. 24
Oct.l
Oct. 8
Oct. 15
Bills payable with Federal Reserve Bank:
Secured by United States war obligationsSept. 24
,
Oct.l
Oct. 8
Oct. 15
All other—
Sept. 24
Oct. 1
Oct. 8
Oct. 15
Bills rediscounted with Federal Reserve
Bank:
Secured by United States war obligationsSept. 24
Oct.l
Oct. 8
Oct. 15
All o t h e r Sept. 24
Oct.l
Oct. 8
Oct. 15
Cleveland
district.
Richmond
district.
Atlanta
district.
Chicago
district.
St. Louis
district.
Kansas
City
district.
Dallas
district.
San Fran
Cisco
district.
Total.
22,741
22,400
21,719
22,878
94.575
92,725
90,926
98,312
18,729
18,669
18,561
18,681
39,862
39,513
38,168
37,999
68,827
66,393
65,150
64,433
16,321
15,816
15,707
16,170
19,326
19,388
19,263
19,142
17,030
17,027
17,007
18,095
52,250
52,102
52,149
51,990
349,661
344,033
338,650
347,700
11,234
11,430
11,368
11,253
44,408
43,357
41,959
41,333
8,982
9,131
8,677
9,296
20,230
20,076
19,467
18,704
15,342
16,602
16,076
15,454
11,108
11,143
10,903
11,049
10,696
10,679
10,622
10,574
2,913
2,843
2,809
2,896
16,542
16,504
16,801
16,817
141,455
141,765
138,682
137,376
52,912
53,240
53,092
53,267
150,750
153,529
152,674
154,683
33,504
33,083
33,002
32,074
41,643
40,810
40,450
40,030
59,325
59,452
58,957
59,533
36,817
36,746
36,732
36,139
27,657
25,237
28,513
28,782
16,302
16,138
16,127
16,055
68,800
68,759
68,556
487,710
486,994
488,477
489,119
187,090
188,030
189,729
192,653
480,424
488,306
492,956
495,995
123,630
124,104
123,493
121,029
265,593
271,068
266,598
261,782
355,368
354,305
357,118
356,540
118,358
119,883
120,606
120,360
201,200
201,726
199,461
199,336
85,402
83,765
84,678
83,537
473,675
476,007
477,154
473,752
2,290,740
2,307,194
2,311,793
2,304,984
273,977
275,100
275,908
280,051
770,157
777,917
778,515
790,323
184,845
184,987
183,733
181,080
367,328
371,467
364,683
358,515
496,752
497,301
495,960
182,604
183,588
183,948
183,718
258,879
257,030
257,859
257,834
121,647
119,773
120,621
120,583
611,267
613,372
615,034
611,115
3,269,566
3,279,986
3,277,602
3,279,179
13,196
16,481
11,743
16,073
55,194
58,731
57,200
57,260
12,852
12,813
13,045
13,168
19,146
19,935
17,897
18,650
26,956
27,748
26,930
30,565
9,003
8,955
15,541
17,984
18,141
17,353
8,753
8,640
39,497
38,695
39,261
41,319
200,023
209,171
201,867
211,116
2,378
2,408
2,778
3,627
14,605
15,098
15,650
16,198
5,258
5,277
6,037
5,926
7,312
7,725
7,443
7,896
12,343
12,166
12,640
13,139
3,966
3,633
4,130
3,829
6,181
6,097
6,370
6,299
3,223
3,337
3,425
3,481
15,973
15,302
15,778
16,600
71,239
71,043
74,251
76,995
152,841
168,410
169,782
171,782
519,248
530,774
530,308
532,345
112,090
114,911
114,594
111,836
165,623
167,542
162,812
164,834
197,769
193,743
183,090
217,183
81,407
79,255
81,242
80,109
155,736
147,353
145,886
148,442
68,970
68,648
70,313
69,313
297,933
297,524
296,152
307,825
1,751,617
1,768,160
1,754,179
1,8
65,516
65,481
66,198
66,708
117,008
117,180
117,489
117,384
20,607
20,707
20,614
19,116
90,185
89,897
88,490
88,249
225,611
225,287
226,243
225,472
42,221
42,127
42,315
42,496
59,033
58,927
58,986
58,853
22,513
22,570
22,649
22,950
263,491
259,607
264,873
265,190
906,185
901,783
907,857
906,418
2,896
2,519
2,273
1,606
21,611
14,618
12,983
16,201
1,850
1,648
1,514
1,440
1,291
1,233
1,054
1,693
6,134
5,346
4,804
4,516
1,131
993
896
1,026
39
30
27
531
130
115
101
1,123
1,299
1,129
1,042
580
36,381
27,631
24,694
28,716
14,910
14,448
13,190
15,572
13,701
10,409
11,684
18,745
10,141
9,784
9,812
8,918
27,200
26,943
26,665
26,172
42,951
40,048
38,019
36,019
8,182
7,784
7,969
8,211
9,880
9,928
10,851
9,932
7,374
7,124
7,534
7,294
11,409
12,446
12,296
11,705
145,748
138,914
138,020
142,568
85
85
210
190
165
110
235
1,179
55
25
25
25
300
2,534
2,618
2,434
2,511
9,395
8,418
8,429
8,142
1,793
1,834
1,887
2,607
7,502
7,358
7,068
6,706
4,114
4,498
5,329
4,880
3,820
3,902
4,294
4,281
2,134
2,026
1,980
1,808
637
603
781
1,212
1,258
1,578
1,550
33,092
32,549
33,602
6,970
12,262
7,951
11,197
4,125
6,420
4,614
4,229
14,006
13,841
14,075
13,832
48,225
47,636
47,690
48,599
15,341
19,066
22,699
19,037
20,000
21,013
20,098
22,443
27,654
26,848
25,600
26,030
8,812
9,923
9,751
9,435
30,034
30,625
32,615
30,724
175,167
187,634
185,093
185,5
1248
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports into and exports from the United States, distributed by countries.
Exports.
Imports.
During During
10 days 10 days
ending
ending
Sept. 20, Sept. 30,
1920.
1920.
During
month
of September.
During
10 days
ending
Oct. 10,
1920.
Belgium
$1,224
$1,224
Denmark
21,150 "*$68,*340
199,294
France
10,843,425 14,843,425
4,000,000
Germany
Greece
8,700
Iceland
Ttfllv
Netherlands
$1,158
Norway
Portugal
Russia in Europe. 339,636 904,506 1,244,142
24,489
Spain
53,262
62,341
132,916
Sweden
790
790
Switzerland
United Kingdom:
England
5,928,897 5,879,611 16,402,244 39,352,924
Scotland
Total Europe
10,344,169 17,759,013 32,832,735 39,378,571
British Honduras.
Canada
625,220
486,363 1,465,388
16,593
Costa Rica
13,932
59,452
41,721
Guatemala
Honduras
3,200
207
3,407
30,845
Nicaragua
32,811
78,984
120,745
53,910
Panama
420
17,499
19,519
58,150
Salvador
180,000
551,873
228,367 "*263,527
562,530 """*96,'399
Mexico
Newfoundland
Cuba
282
9,082
British West Indies
18,000
7,430
48,697
66,697
Virgin Islands of
United States...
Dominican Republic
Dutch West Indies
157,800
160,951
Haiti
13
13
Total North
America.. 1,088,031 1,007,291 3,019,657 305,048
Argentina
1,585,866
1,586,373
Bolivia
Brazil
Chile
Colombia
Ecuador
25,345
192,000
3,291
British Guiana ...
Dutch Guiana
28,605
Peru
Uruguay
Venezuela
Total South
America.. 1,835,107
China
Chosen (Korea)...
British India
40
27,173
720,922 1,129,476
48,032
90,332
13,475
26,108
5,558
5,558
48,603
77,431
9,850
During During During During
From
From
From
From
10 days Jan.
days 10 days
Jan. 1 to Jan. 1 to 10
to Jan. 1 to
ending Oct. 110,
ending ending month
Oct.
10,
of
SepOct. 10, Oct. 10, Sept.
20, Sept. 30, tember. Oct. 10,
1919.
1919.
1920.
1920.
1920.
1920.
1920.
$337,130
199,294
16,587 644
$422,242
128,700
95,000
$10,000
2,604
136,329,002 1,045,708
45
1,523
846,480 2,970,203
233,113
13,235
156,221,254 1,562,950
20
31,895,533 33,444,937 $281,052 $150,350
531,333
524,344
14,872
6,000
215,947
226,078
1,010,335 1,125,825
232,334
3,401
905,765
635,915
3,709,583 3,639,548 213,936 274,734
61
5,085 50,000
14,762
184,546
$602,082 $293,119
19,000
697,062
276,949
130,000
50,000
26,666
17,208,167
475,000
2,082,824
21,300
10,000
390,000
1,933,020
7,035,387
7,940
39,000
365,638
27,920,000
661
10,000
525
331,881
13
277,514
15,000
268,014 34,914,209
10,000
4,583,963 4,257,712
18,838
10,000
5,200
39,046,924 39,635,757
1,663,104
97,274
6,878
1,069
24,585
26,200
368,472
217,757
5,770
4,233,631
538,077
189,822
523,893 379,911
32,929
111,201
79,694
681
7,945
19,743
706,209
654,312
2,388
27,752
912
241,263
40,107
1 163 121
3,324
25,364
1,268,631
132,916
1 039
4,937
$31,900
1,002,666
3,583,644
544,988
425,084 1,429,144
620,068
50,000
250,003
185,535
250,003
8,011,556 2,199,572
3,500,000 1,500,000 5,000,000
1,260
1 714
22,355,130 13,675,359
89,995,000 32,960,000
2,500,000
425,000
280,000
100,000
400,000
700,000 4,803,620
206,000
5,005
19,795
6,300
3,653,376 2,893,369
12,850,000 7,405,000
184,000 11,232,220
50,000 108,274,676 62,344,009
25,286,750 29,163,121
6,503,741 8,454,286
S t r a i t s Settlements
250,000
6,683,454
Dutch East Indies.
83,928
12,065,105 4,371,000
2,672,994 2,951,001
French East Indies
2,290,000
Hongkong
l,083,i05 238,750 1,581,130 117,550 28,642,202 27,824,801
30,191,910
Japan
52,351,025
58,078,715
8,968,813
4,640,000
1,957,530 1,800,000
Russia in Asia
23,000
Total Asia..
83,928
32,866,164 12,952,715 6,540,635 3,538,750 15,549,943 4,757,550 133,822,277 128,164,923
New Zealand
90,471
151,019
40,897
1,587,908 683,123
Philippinelslands.
52,466
52,466
2,500
419,942
700,212
British S o u t h
Africa
8 150
British
West
Africa
39,446
Portuguese Africa.
280,358
499,324
Total, a l l
countries. 13,267,307 19,755,721 39,110,008 39,957,629 1238,714,376 57,961,533 7,085,623 3,963,834 17,229,090 5,427,618 2264,759,543 239,101,000
Excess imports or
exports
6,181,684 15,791,887 21,880,918 34,629,114
25,946,064 181,139,467
16,666,666
fixcess of gold imports over exports since August 1,1914, $753,710,000. Excess of gold exports over imports since June 10,1919, $347,309,000.
1 Includes: Ore and base bullion, $13,793,000; U. S. Mint or Assay Office bars, $3,846,000; other bullion, refined, $156,181,000; U. S. coin,
$14,775,000; foreign coin, $50,120,000.
2 Includes: Domestic exports—ore and base bullion, $11,000; U. S. Mint or Assay Office bars, $24,849,000; other bullion, refined, $1,034,000;
CDin, $237,820,000. Foreign exports—bullion, refined, $498,000; coin, $548,000.
1249
FEDEKAL RESERVE BULLETIN.
NOVEMBER, 1920.
Silver imports into and exports from the United States, distributed by countries.
Imports.
During
During
10 days 10 days
ending
ending
Sept. 20, Sept. 30,
1920.
1920.
$8,161
Belgium
Denmark
Finland
Italy
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland
United Kingdom—
England
Total Europe .
British Honduras
Canada
....
2,508
78,115
Arista Rica
2,800
Guatemala
14
Panama
Mexico
During During
During
From
From
days 10 days
10 days Jan.
to Jan. 1 to 10
ending Oct. 110,
ending
Oct. 10, ending
Oct. 10,
Sept.
Sept.
1920.
1919.
1920.
20,1920. 30,1920.
During
month
of September.
$8,161
$20,087
24,041
34,710
Exports.
22,595
$750
24,041
$1,797
106,640
24,026
54 861
14,453
7,978
67,848
31 395
17,176
13,144
1,097
802,158
37,824
$71,141
$71,141
4,591,383 15,226,982
160,269
1,847
1,117,520
56,797
71,141
71,141
4,679,263 24,979,316
215,129
1,600
1*083
22,831
1,674
44,696
571,071
5,188
3,347
2,800
1,083 ""296*898
51,820
18,226
93,367
2,326
37 251
4,209,' 069 1,142,269
3,965
3,965
417
36,000
417
63,367
255,637
3,212,420 5,808,828
60,253
152,368
24,534
2,045,492 "2,*i34,"i64
614,372
691,043
139,685
89,273
3,685,083
329,896
45,936,854 47,263,983
11
6,225
7,017
59,374
66,515
120,800
1,867
20
J
Total South
America
4,577
60,511
2,667
850
10,080
105,305
9,705
227,611
42,601
5,397
420,966
52,864
10,637
167,542
363
5,149
258,661
448,826
28
740,752
28
21,422
44
377,188
724,463 1,290,335
China
Chosen (Korea)
British India
Dutch East Indies
French East Indies.
Hongkong
i5,"666
6,358,050
4,076,521
4,500
391,505
3,000
542,000
5,400
121,550
2,858,181
204,250
1,500
1,016,745
194,758
18,080
1,247,904
10,328
161
30,000
261,500
36,463
91,827
142,096
171,869
820
18,269
25,000
267,520 156,074
574,065
64,657
28,063
60,577
1,006,594
108,487
293
2,155
2,774,074 1,475,373
644,601
157,979
62,812
13,670
42
33!
6,390
14
9,807,870 6,662,820
144
577
150,000
5,586,455
12,138
2,230
*52
2,000
1,910,014 255,245 4,558,168 1,269,055
1,289,974
11,718,720
2,333
204,600 14,330,883 8,481,685
1,402
2,493
5,063
10,000
50,000
25,873
62,638
57,685,987 31,632,561
3,328
223,211 109,180,718
37,124
2,327,337 1,260,440
315,654 300,501
447,573
1,650
Turkey in Asia
926,487
447,573
"4*658*373
111,932 20,126,082 5,278,750
1,602,512 3,946,453
970
52,759
38,511
37,124
Total Asia
NPW Zealand
PhiliDoine Islands
British South Africa
British West Africa.
'"i'5',000
192,211 $46,388
9,000
TJntp'h O-niflTift
Peru
44,188 $63,427
300
Total North
America— 1,595,498 1,985,321 5,012,031 1,507,762 55,978,279 56,792,147
VpnP7iipla
1,092,497
1,180,494
1,950
228
111,430
172,203
44,567
54,960
1,105
Tiritisti Guiana
$587,897
17,438
6,588,197
67,848
24,480
N P wfouiid land.
Argentina
Bolivia
Brazil
Chile
Colombia
$32,920
From
Jan. 1 to
Oct. 10,
1919.
24,480
. . . . . 1,514,569 1,738,622
British West Indies.
Cuba
Virgin Islands of
United States
Dominican Republic
Dutch West Indies.
French West Indies.
Haiti
$8,161
During
During 10
From
days Jan.
m o n t h ending
1 to
of Sep- Oct. 10, Oct. 10,
tember.
1920.
1920.
97
1,172
3,657,472 1,263,768
97
1,172
Portuffiipsp Africa
11,714
15,852
6,097
586
8,698
76,822
93,321
52,252
2,673,241 555,746 5,932,228 1,380,987
83,697,135 50,091,241
7,480
Total, all coun2,007,396 2,755,620 6,501,028 1,714,209 175,211,138 66,732,755 3,011,902 711,820 6,577,434 1,445,644 2100,128,471 80,719,650
tries
Excess imports or
exDorts
2,043,800
268,565
1,004,506
76,406
24,917,333 113,986,896
Excess of silver exports over imports since Aug. 1,1914, $454,289,000.
1 Includes: Ore and base bullion, $59,366,000; U. S. Mint or assay office bars, $3,000; other bullion, refined, $6,467,000; United States coin,
$1,755,000; foreign coin, $7,620,000.
2 Includes: Domestic exports, ore and base bullion, $737,000; U. S. Mint or assay office bars, $4,346,000; other bullion, refined, $56,044,000; coin,
$14,268,000. Foreign exports—ore and base bullion, $1,000; bullion, refined, $20,608,000; coin, $4,124,000.
1250
FEDERAL, RESERVE BULLETIN.
NOVEMBEB, 1920.
General stock of money in the United States, money held by the Treasury and the Federal Reserve System, and all other money
in the United States, Oct. 1, 1920,
General stock.
Gold coin (including bullion in Treasury).
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes
National-bank notes
Total:
Oct. 1,1920
Sept. 1,1920
Aug. 1.1920
July 1,1920
Jan. 1,1920
July 1,1919
Jan. 1,1919
July 1,1918
Jan. 1,1918
July 1,1917
Held in the
United States
Treasury as
assets of the
Government.
Held outside
Held by or for
United States
Federal Reserve Treasury and
Federal Reserve
Banks and
System.
agents.
316, 681,016
3,593, 909,335
232, 113,800
726, 477,082
9,292,769
20,61S, 824
2,384,940
16,042,510
* 57,764,836
294,906,515
17,718,464
2,576,850
$426,089,165
234,298,909
71,636,354
83,309,424
258,515,704
1,642,138
279,623.411
3,278,383,996
212,010,396
707.857,692
8,136,332,855
7,997, 080,820
7,927, 844,377
7,887] 181,586
7,961, 320,139
7,588, 473,771
7,780, 793,606
6.742; 225,784
6,256, 19«,271
5,480, 009,884
472,464,953
485,884,277
483,824,265
485,057,472
604,888,833
578,848,043
454,948,160
356,124,750
277,0-43,358
253,671,614
2,110,500,713
2,031,514,938
2,059,010,192
2,021,271,614
2,044,422,303
2,167,280,313
2.220,705,767
2,018,361,825
1.723,570,291
1, 280,880,714
5,553, 367,189
5,479, 681,605
5,385, 009.920
5,380. 852,500
5,312! 009,003
4,842; 345,415
5,105. 139,679
4,367j 739,209
4,255, 584,622
3,945, 457,556
$2,704,672,504
i$410,961,468
269, S57,494
9," 058," 492'
262,621,624
4,105,920
1,271,546,942
361.776,020
3 64'. 395,445
39,815,641
Amount per
capita outside
United States
Treasury and
Federal Reserve System.
$51.70
51.06
50.22
50.19
49.81
45.00
47.83
41.31
40.53
37.88
i Includes reserve funds held against issues of United States notes and Treasury notes of 1R90 and redemption funds held against issues of
national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the
redemption of outstanding gold and silver certificates and Treasury notes of 1890.
^ Exclusive of amounts held vyitb United States Treasurer in gold redemption fund against Federal Reserve notes, and of gold held with foreign
agencies
but inclusive of balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents
8
4 Includes subsidiary silver.
Includes Treasury'notes of 1890.
FEDERAL RESERVE BANK DISCOUNT RATES.
Rates on paper discounted for member banks approved by the Federal Reserve Board up to Nov. 1, 1920.
Paper maturing within 90 days.
Federal Reserve Bank.
Secured b y Treasury
certificates of
indebtedness.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
Liberty bonds
and Victory
notes.
Trade
acceptance
Allother.
Bankers'
acceptances
maturing
within
3 months.
Agricultural
and live-stock
paper maturing
after 90 but
within 180 days.
f
6
5}
6
5i
6
6
1
Discount rate C9rresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia,
Atlanta,
Kansas City, and Dallas, and 5£ per cent in the case of Cleveland, Richmond, Chicago, and San Francisco.
2
5^ per cent on paper secured by 5£ per cent certificates and 5 per cent on paper secured by 4f and 5 per cent certificates.
NOTE.—Rates shown for St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of basic linesfixedfor each
member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a £ per cent progressive increase for each
25 per cent by which the amount of accommodation extended exceeds the basic line.
1251
FEDERAL RESERVE BULLETIN.
NOVEMBER, 1920.
EARNINGS AND DIVIDENDS OF STATE BANK AND TRUST COMPANY MEMBERS.
Abstract of reports of earnings and dividends of State bank and trust company members of the Federal Reserve System for the
first six months of 1920, arranged by Federal Reserve districts.
[In thousands of dollars.]
Capital stock, paid in
Surplus
Total capital and surplus
Gross earnings:
Interest and discount
Exchange and c o l l e c t i o n
charges
C ommissions
Other earnings
Total gross earnings
Expenses:
Salaries and wages
Interest and discount on borrowed money
Interest on deposits
Taxes
Other expenses
Total expenses
Net earnings since last report
Recoveries on charged-off assets
Total net earnings and recoveries
District
No. 1
District
No. 2
(36
(132
banks). banks).
District
No. 3
(40
banks)-
DisDisDisDis- District trict trict trict trict
No. 4 No. 5 No. 6 No. 7 No. 8
(109
(53
(72
(339
(86
banks). banks). banks). banks). banks).
32,400 167,792
36,550 185,832
23,423
47,674
39,841
68,561
13,200
9,159
24,615
15,312
94,784
80,310
26,885
20,756
9,147
2,965
6,555
2,978
11,691
4,739
43,295
19,733
493,628
494,569
68,950 353,624
71,097 108,402
22,359
39,927 175,094
47,641
12,112
9,533
16,430
63,028
988,197
DisDisDisDis- Total
trict trict trict trict United
No. 9 No. 10 No. 11 No. 12 States
(160
(107
(56
(184 (1,374
banks). banks). banks). banks). banks).
17,732
87,357
9,499
19,125
4,190
10,455
45,387
11,325
3,280
3,325
4,091
19,413
235,179
88
330
1,853
696
2,656
18,258
72
164
2,254
214
234
5,139
59
59
617
823
226
1,213
871
993
4,858
456
401
1,195
73
64
149
50
53
390
126
10
149
471
253
1,837
3,999
5,443
37,912
20,003 108,967
11,989
24,712
4,925
12,717
52,109
13,377
3,566
3,818
4,376
21,974
282,533
3,050
15,479
1,712
3,734
660
1,903
8,121
2,070
705
720
879
3,973
43,006
849
6,696
1,209
2,011
6,526
32,703
5,356
10,637
962
2,667
557
1,025
936
8,393
1,017
3,403
560
1,287
276
526
1,655
2,693
715
1,619
3,157
15,844
3,438
5,315
1,685
3,168
506
1,623
272
1,388
225
468
356
1,006
144
631
368
521
216
576
942
8,216
934
2,245
18,268
84,582
14,593
30,079
13,815
70,701
6,923
17,483
3,309
8,585
35,875
9,052
3,058
2,857
2,560
16,310
190,528
6,188
91
38,266
965
5,066
24
7,229
1,091
1,616
25
4,132
142
16,234
1,239
4,325
111
508
19
961
73
1,816
122
5,664
425
92,005
4,327
6,279
39,231
5,090
8,320
1,641
4,274
17,473
4,436
527
1,034
1,938
6,089
96,332
Losses charged off:
On loans and discounts
On bonds, securities, etc
Other losses
222
243
71
951
7,184
827
48
1,882
32
88
498
343
35
200
12
184
419
185
1,185
1,760
425
62
243
109
16
29
8
119
15
25
147
4
36
590
523
535
3,647
13,000
2,608
Total losses charged off
Net addition to profits
536
8,962
1,962
929
247
788
3,370
414
53
159
187
1,648
19,255
5,743
30,269
3,128
7,391
1,394
3,486
14,103
4,022
474
875
1,751
4,441
77,077
2,191
14,345
2,226
3,266
621
1,402
5,977
1,816
362
481
417
2,616
35,7 0
13.5
17.1
19.0
16.4
9.4
11.4
12.6
13.5
7.9
14.7
7.1
12.1
14 5
6.4
8.1
6.3
6.0
5.6
7.0
6.8
7.6
6.0
10.1
5.1
8.3
7.2
16.7
17.1
8.8
13.6
12.5
17.5
16.1
16.9
7.8
18.4
21.3
14.1
15.6
Dividends declared
Ratio of dividends declared to capital stock (annual basis), per cent..
Ratio of dividends declared to capital stock and surplus (annual
basis), per cent
Ratio of net profits to capital and
surplus (annual basis), per cent..
INDEX.
Page.
Acceptances:
Banks granted authority to accept up to 100 per cent of capital
and surplus
1175
Dollar exchange, countries in which banks may accept drafts
to furnish
1175
Purchased during September
1231
Purchased during three months ending September
1231
Agricultural implement industry, terms of sale in
1149
American Bankers Association, address of Secretary of Treasury
before
1123,1125
Anglo-French loan
*
1129
Banking situation, discussion of
1133
Brussels financial conference
1129
Business and financial conditions, October
1135-1142
Condition of wholesale trade
1143
Production of knit goods
1145
Production and shipments of finished cotton fabrics
1145
Chapman, W. T., resignation of, as secretary of Board
1134
Charters issued to national banks
1175
Charts:
Exchange rates in belligerent, neutral, and silver-standard
countries
1159,1160
Wholesale prices in the United States
1212
Chemical industry, terms of gale in
1157
Clearing and collection:
Number of banks on par list
1234
Operations of system during October
1234
Clearing-house bank debits, October
. . . . 1225-1227
Commercial failures reported
1175
Condition statements:
Cuban banks
1166-1168
Federal Reserve Banks
1235-1239
Member banks in leading cities
1241-1247
Cotton fabrics, production and shipments
1145
Cotton factor paper, eligibility of
1176
Countries in which banks may accept drafts to furnish dollar
exchange
1175
Crop moving, credit for, statement of Board regarding
1124
Crop report for November
1175
Cuba, economical and financial conditions in
1162-1168
Currency, stock of, in the United States
1250
Debits to individual account, October
1225-1227
Directors of Federal Reserve Banks, voting for, by member banks. 1178
Discount and open-market operations of Federal Reserve
Banks
1228-1233
Acceptances purchased—
During September
1231,1233
During three months ending September
1231
Agricultural paper held during September
1
1233
Bills discounted—
During September
1231
During three months ending September
1231
Collateral notes held
1231
Dollar exchange bills purchased
1231
Earning assets held
1230
Live-stock paper held
1233
Number of banks discounting during September
1229
Rediscounts and sales of paper between Federal Reserve
Banks, July-September
1232
Discount rates:
In effect November 1
1250
Prevailing in various centers
1215
Dollar exchange, countries in which banks may accept drafts to
furnish
„
1175
Drugs and medicines, terms of sale in the industries
1155
Earnings and dividends of State bank and trust company members
1251
Eddy, W. L., appointed assistant secretary of Board
1134
Edge Act, investment of surplus capital abroad under
1168-1173
Emerson, R. G., appointed assistant to Governor of Board
1134
Failures, commercial, reported
1175
Federal advisory council, meeting of
1123
Federal Reserve agents, meeting of
1123
Federal Reserve Banks:
Discount and open-market operations of
1228-1233
Resources and liabilities of
1235-1239
Federal Reserve Board:
Changes in staff of
„
1134
Conferences with Advisory Council, Federal Reserve agents,
and governors of Federal Reserve Banks
1123
Regulations of, series of 1920
1179-1194
Statement of, on credit for crop moving
1124
Federal Reserve notes:
Federal Reserve agents' accounts
1240
Interdistrict movement of
1241
Fiduciary powers granted to national banks
1174
Financing of the Treasury during October
1123
Foreign branch of National City Bank ol New York opened in
London
1174
Foreign exchange rates:
October
1128
In belligerent, neutral, and silver-standard countries
1158-11
Page.
Foreign trade, index of.
1197
Foreign trade situation, discussion of
1127
Gold bill (McFadden), report of committee on
1147
Gold imports and exports
1132,1248
Governors of Federal Reserve Banks, meeting of
1123
Herson, J. F., appointed chief of Division of Examination
1134
Hoxton, W. W., appointed secretary of Board
1134
Imports and exports:
Cuban
1164
Gold
1132,1248
Silver
1133,1249
Index numbers:
Foreign trade
1197
Physical volume of trade
1216-1224
Retail trade
1195
Wholesale prices abroad
1198
Wholesale prices in the United States
1212
Intere? rates prevailing in principal centers
1215
Invest ent trust as a channel for investment abroad
1168-1173
Knit gvX)ds production
1145
McFadden gold bill, report of committee on
1147
Maturities:
Acceptances purchased
1231,1239
Bills discounted and bought
1231,1239
Certificates of indebtedness purchased
1239
Member banks:
Condition statement
1241-1247
Earnings and dividends of State bank members
1251
Number discounting during September
1229
Number in each district
1229
State banks admitted to membership
1174
Money, stock of, in the United States
1250
National banks:
Charters issued to
1175
Fiduciary powers granted to
1174
National City Bank of New York, foreign branch of, opened in
London
1174
Paddock, W. W., resignation of, as chief of Division of Examination....
I....?
.
1134
Physical volume of trade
,
1216-1224
Prices:
Discussion of
1127
Wholesale, abroad
1198-1210
Wholesale, in the United States
1210-1214
Rates:
Acceptances purchased—
During September
1231
During three months ending September
1231
Bills discounted—
During September
1231
During three months ending September
1231
DiscountIn effect November 1
1250
In principal centers
1215
Earning assets held by Federal Reserve Banks
1230
Foreign exchange—
October
;
1128
In belligerent, neutral, and silver-standard countries.. 1158-1162
Rediscounts and sales of paper between Federal Reserve Banks.. 1233
Regulations of the Federal Reserve Board, series of 1920
1179-1194
Resources and liabilities:
Cuban banks
1166-1168
Federal Reserve Banks
1235-1239
Member banks in leading cities
1241-1247
Retail trade, index of
1195
Review of the month
1123
Rulings of the Federal Reserve Board:
Eligibility of paper incident to cotton factorage business
1176
Member banks required to vote for directors of Federal Reserve Banks
1178
Secretary of the Treasury, address of, before American Bankers
Association
1123,1125
Sliver:
Imports and exports of
1133,1249
Price of
1128
State banks:
Admitted to system
1174
Earnings and dividends of members....
1251
Sugar, production and price of, 1914-1920
1162,1163
Terms of sale in the principal industries
1149-1158
Agricultural implements
1149
Chemicals
,
1157
Drugs and medicines
1155
Trade:
Foreign, index of
.
1197
Physical volume of
1216-1224
Retail, index of
1195
Wholesale, reports on
1143
Treasury financing during October
1123
Wholesale prices:
Abroad.
1198-1210
In the United States
1210-1214
Wholesale trade, reports on
1143
ALA.
\
GA-
6 (
FEDERAL RESERVE DISTRICTS
FEDERAL RESERVE BANK CITIES
O FEDERAL RESERVE BRANCH CITIES
The branches at Helena, Mont., and Oklahoma City, Okla., have been authorized by the Federal Reserve Board but are not yet open for business.
@FedFRASER