Full text of Federal Reserve Bulletin : October 1918
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FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
OCTOBER, 1918
WASHINGTON
GOVERNMENT FEINTING OFFICE
1913
FEDERAL RESERVE BOARD.
W. P. G. HARDING, Governor.
EX OFFICIO MEMBERS.
WILLIAM G. MCADOO,
Secretary of the Treasury, Chairman.
JOHN SKELTON WILLIAMS,
, Vice Governor.
ADOLPH 0. MILLER.
CHARLES S. HAMLIN.
Comptroller of the Currency,
J. A. BRODERICK, Secretary.
M. C. ELLIOTT, Counsel.
L. G. ADELSON, 1
H. PARKER WILLIS,
W. T. CHAPMAN, J
Assistant Secretaries.
W. M. IMLAY, Fiscal Agent.
M. JACOBSON, Statistician.
n
Director, Division of Analysis and Research.
F.I.
KENT,
Director, Division of Foreign Exchange.
SUBSCRIPTION PRICE OF BULLETIN.
The Federa! Reserve Bulletin is distributed without charge
to member banks of the system and to the officers and directors
of Federal Reserve Banks. In sending the Bulletin to others the
Board feels that a subscription should be required. It has
accordingly fixed a subscription price of $2 per annum, Single
copies will be sold at 2.0 cents. Foreign postage should be added
when it will be required. Remittances should be made to the
Federal Reserve Board. Member banks desiring to have the
Bulletin supplied to their officers and directors may have it sent
to not less than ten names at a subscription price of $1 per annum.
No complete sets of the Bulletin for 1915 or 1916 are
available. Bound copies of the Bulletin for 1917 may be had at
$5 per copy.
TABLE OF CONTENTS.
±'age.
Review of the month
Conservation of productive power and credit
The fourth Liberty loan
...
Dollar exchange
Meal tickets of drafted men en route to camp received for collection
Establishment of an acceptance corporation
Issuance of British treasury bills in t h e United States
Statement of Hon. R. C. Leffingwell relative to foreign-exchange situation
Foreign business of the National City Bank of New York
T e x t of amendments to the Federal Reserve Act
Circular on cattle-loan agencies issued b y the War Finance Corporation
Election of directors of Federal Reserve Banks under the new amendments
New issues of Treasury certificates of indebtedness
Condition of the savings institutions in the United States
British bank amalgamations
Status of bank clerks under the draft law
The fourth Liberty bond act
Report of the committee of five of the American Bankers' Association on clearing and collection of checks
Membership of State banks and trust companies
State banks and trust companies admitted to the system during the month
Fiduciary powers granted to national banks
Charters issued to national banks
Banks granted authority to accept up to 100 per cent of capital and surplus
Commercial failures reported
Lost and recovered Liberty bonds
Informal rulings of the Board
Rulings of the Division of Foreign Exchange
Law Department
Business conditions throughout the Federal Reserve districts
Comparative statement of leading banks of issue, 1914 and 1918
Reserves, circulation, and security holdings of the Bank of England, Bank of France, and German Reiclisbank.
Charts showing
Reports of total b a n k transactions
I n d e x of wholesale prices
Discount and interest rates
Gold settlement fund
Operation of the Federal Reserve clearing system
Discount operations of the Federal Reserve Banks
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account of Federal Reserve Banks and agents
Member bank condition statement
Earnings on investments of Federal Reserve Banks
Gold and silver imports and exports
Estimated stock of money in the United States
Discount rates in effect
IV
921
931
937
938
938
939
940
940
942
947
950
950
951
952
954
957
961
962
964
966
967
967
967
967
968
971
973
974
979
996
998
999
1002
1005
1016
1019
1021
1022
L030
1033
1035
1040
1041
1042
1043
FEDERAL RESERVE BULLETIN
VOL.
4
OCTOBER 1, 1918.
REVIEW OF THE MONTH.
Since the last number of the FEDERAL R E ..fi f
f SERVE BULLETIN two issues of
Indebtedness8.
certificates of indebtedness (the
fifth and sixth of the present
series) have been placed and the results of the
sale announced. In each case there was an
oversubscription. The amount of the fifth
offering was $500,000,000, and the oversubscription was $139,493,000. The sixth issue,
fixed at $600,000,000, was oversubscribed by
$25,216,500. Experience with the successive
issues shows that the banks throughout the
country are steadily adapting themselves to
the requirements of the Government and are
endeavoring to withdraw their resources, as
they find it practicable, from unessential
loans, placing them at the service of the
Treasury. Elsewhere in this issue there are
published figures showing the holdings of certificates of indebtedness by member banks,
holdings of Liberty bonds, and loans made by
the [member banks upon certificates or bonds
as collateral securities. These figures furnish
fresh evidence of the extent to which the
banks are supporting the burden of the Government's financial program. In the following [table are given combined figures showing
by districts the total of the certificates offered
in all six of the issues which have thus far been
placed, oversubscriptions having been received
in each issue.
No. 10
Four and one-half per cent Treasury certificates of indebtedness issued in anticipation offourth Liberty loan—Con.
Aug. 6. ; Sept. 3.
c
Treasury
Boston.'
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Citv
Dallas
'
San Francisco
Total
Payable
4, 581
49,509
207,287
38,400
52,500
14,397
14,968.5
87,292.5
24,066
j 12,260
i 25,126
! 7,5 79.5
| 37,750
3, 000
;
57,424 i
210,068.5 ;
42,061 i!
74,088
18,957 :
16,205.5
88.279
25j 501.5
17,200
25,913
11,295.5
49,500
! 575,706.5 : 639,493
|
Sept. 17.
Dec. 5 <
3,000
54,710
216,264.5
45,778
59,321.5
18,449
15,872
88,878.5
24,178.5
17,700
22,816
11,898.5
46,350
| 625,216.5
Jan. 2 \
Jan. 16
The fact that there are now outstanding
$4,018,751,000 of certificates of indebtedness
which constitute a prior claim upon the proceeds of the fourth Liberty loan shows in a
striking way the necessity for an early and general sale of the new bond issue. Such an issue
is provided in the fourth Liberty loan whose
terms were announced by the Secretary of the
Treasury on September 24. The intention is to
place an issue of $6,000,000,000 of bonds, bearing 4£ per cent as in the last preceding issue and
sold under substantially similar terms except in
so far as relates to exemption from taxation—a
matter more fully explained at a later point in
this issue. The banks of the country have come
actively to the support of the Government
in largely making advances for the purpose
of paying for the commodities and services
Four and one-half per cent Treasury certificates of indebtednessneeded in the conduct of the war. The mainissued in anticipation offourth Liberty loan.
tenance of our financial soundness now requires
(In thousands of dollars.)
that these obligations shall be promptly funded
June 25.
July 9.
July 23. into long-term bonds taken and held by bona
fide investors as generally as possible, in order
35,653 : 4,327
Treasury
11,938
56,273.5 !! 48,267.5
Boston
! 64,590
that all parts of the country may bear their
New York
! 312,844.5 273,219.5 211.714
53,100 ; 36; 872.5
53,000
Philadelphia..
share in supporting the war.
80,000
66,550 i 55,927
Cleveland
19,013
15,073.5 "j 16,886
Richmond
The fourth Liberty loan campaign, which
17,233.5
16,021.5 ! 13,168.5
Atlanta
131,481.5 101,203 j 83,310.5
Chicago
opened on. September 28, will
25,952.5
34,654
31,260.5
St. Louis
contiime U
20,000
22,100 I 16,800
Minneapolis...
P to October 19.
23,369
28,410.5 30,031.5
Kansas C i t y . . .
10,156
18,481.5
14,452
Dallas
While the amount of bonds
38,000
48,_000_
39,000_
San Francisco.
~839~ 646.5 753,938
Total....
584,750.5 now offered to the public is set at 86,000,000,000
Nov. 7
Nov. 21 for the current issue as a minimum, it should be
Oct. 24
Payable
921
922
FEDERAL RESERVE BULLETIN.
OCTOBKR 1, 1018.
borne in mind that the program originally an - [power along those lines which are fundamental
nounced by the Secretary of the Treasury in- j to the war must be scientifically and effectually
volved the placing of at least $10,000,000,000 i carried forward according to a skillfully preadditional for the fiscal year ending June 31, arranged program.
1919. That amount would have been necesThus far it has been sought to effect such
sary in order to obtain the entire $24,000,000,- |
a readjustment of industry by
out o f n i
.
,x
•,
* i \
000 called for by the program of expenditure j , " Order
„
following the
plan ol voluntary
laid before Congress at the time when the war I
rationing with such aid as could
revenue bill was presented to the Ways and •! be given by financial control and curtailment
Means Committee of the House of Represonta-1 of banking credit. The inadequacy of voluntives recently. The deficiency appropriation j tary methods in the face of our rising national
plans have now raised the required total to per- requirements has, however, necessitated rehaps $30,000,000,000. While there are some course to more direct and authoritative conestimates which indicate that the new revenue trol in order, to use the language of the War
bill may yield $9,000,000,000 rather than Industries Board in its statement elsewhere
$8,000,000,000 of income from taxation, the printed in full in this BULLETIN, to " bring
sums expected from loans under the original order out of chaos."
program thus seem to be in all probability far
Such a program of control is now in process
within the limits of Government requirements of development at the hands of the War Indusfor the current fiscal year, and the fourth Lib- tries Board, the various Government bodies
erty loan must be regarded as only a beginning engaged in the reorganization of labor, and the
in the great financial program whose success is Provost Marshal General's office, which has
essential to the carrying out of our military issued instructions with reference to the appliplan.
cation of the "man power bill."
In order to encourage and facilitate a wider
The program of the War Industries Board
distribution of the fourth Liberty loan, in disis based upon a comprehensive
Rationing m
tricts which feel the need of such support the dustry.
" application of the principle of
Federal Reserve Board, on September 30, ap"priority." The system of
proved a new preferential rate of discount in priorities thus far announced, with reference
favor of customers' notes of 16-90 days7 matur- to the apportionment of fuel, material, labor,
ity, secured by fourth Liberty loan bonds, fix- and transportation among different entering the rate at 4 per cent. This rate, however, prises, constitutes an effective beginning of a
was conditioned upon the extension to the cus- system for the rationing of industry. The
tomers in whose favor the discount was orig- President, in his message of April 2,, 1917, it
inally made of a rate not greater than the will be recalled, had forecast what is now
coupon rate of 4J- per cent, so that those banks being done, saying at that time, with referwhich act as intermediaries in placing the ence to our war program: " I t will involve
paper with Federal Reserve Banks may enjoy the organization and mobilization of all the
a margin on such paper not greater than one- material resources of the country to supply
fourth of 1 per cent.
the materials of war and serve the incidental
It is clear that success in obtaining this needs of the Nation in the most abundant
great sum of money must be conditioned upon and yet the most economical and efficient way
the most careful adaptation of resources to possible."
requirements. Not only must the utmost
The attainment of the object now aimed at by
economy be practiced by the individual, but these Government bo dies has long been regarded
the reorganization of industry upon a basis as essential by the Federal Reserve Board, which
which will eliminate every unessential element has from time to time announced either officially
and will concentrate the Nation7 s productive or through its members the necessity of a care-
OCTOBBtt 1, 1918.
FEDERAL RESERVE BULLETIN.
fill adaptation of business to war requirements.
In an address before the American Academy
of Political and Social Science in November,
1917, Mr. A. C. Miller, member of the Federal
Reserve Board, called attention to the requirements of the case in the following language:
Sound finance will require that the limits of taxation
should be extended as borrowing reaches the point of
inflation. Hardly less clear to my mind, and certainly
not less cogent, is the inference that finance alone will not
achieve the needed results: consumption will have to be
controlled and production will have to be directed on
some adequate basis in order that any plan of finance we
may adopt shall be certainly equal to the task of providing
the Government with the vast masses of goods and services
it will require for the war. * * * The financial problem at best is only partly a financial or money problem—
a problem of getting the wherewithal to buy and pay.
Chiefly it is a problem of getting the goods and services
to buy. * * * In sum, we must, as a nation, produce
more and consume less. This, in its simplest terms, must
be our national formula of finance. We must produce
more of the things which the nation at war requires and,
in order to set free the nation's productive forces to accomplish this result, we must consume less of the things which
the nation in war time does not require, even though it
has been our national habit in peace time to consume such
things in unstinted measure.
So far as lay within its power the Federal
Reserve Board has attempted to pave the
way for adequate industrial organization by
urging a program which it has designated as
conservation and curtailment of credit. The
problem, however, is so broad and far-reaching in its connections that it has always been
obvious that control of credit could not alone
be relied upon to produce the necessary results. In substance, the new plan amounts to
the regulation of supply of goods for the general
consumption by determining conditions under
which their manufacture may proceed. This
is a much more direct and effective and powerful means of control than any that could have
been exerted through the withholding of credit
from unessential or unnecessary enterprises.
Thus is (1) the production of those things
needed for the war to be stimulated and facilitated, and (2) the consumption of those
things which the community in war time does
not need for its health, efficiency, and happiness to be restricted. Necessarv industries are
923
to have the first claim on the productive power
of the country; less essential industries will
be limited by what is left. The consumer will
be practically rationed by being kept from the
full use of his spending power, and his savings
will therefore be made available for the purchase of Government bonds.
The voluntary system of rationing or controlling credit was, moreover, lacking in uniformity since it was based upon the assumption that practically all individuals must rely
upon the banks for accommodation. Such is
not the case, inasmuch as there are many businesses of an unessential type whose receipts
consist chiefly of cash and which accordingly
pay in cash. These enterprises are selffinancing and hence do not find themselves
obliged to rely upon the banks, thus leaving
an inevitable gap in what otherwise might be
a uniform system of oversight. Within the
past year or two, moreover, the general prosperity of many classes, due to the payment of
very high wages and the consequent practice
of paying cash for goods, has resulted in enabling many concerns which formerly had to
rely in part upon bank loans to finance themselves, to do without such advances, so that it
is probably true to-day that the number of
concerns which are not subject to banking
control is very much greater than at any time
in the past. For these and other reasons any
effort at rationing based upon regulation of the
supply of credit was certain to be more or less
unsuccessful, even if conscientiously and carefully carried out. A much more drastic and
fundamental method was needed to exert the
requisite control over the direction to be taken
by business under existing conditions.
The bearing of this situation on the outlook
for the Federal Reserve system is very evident.
For some time past—indeed, since the opening
of the war—the question of controlling the
expansion of banking credit has been of foremost importance. The new departures in administration, to which reference is made, simplify the banking aspects of this question and
at length render possible the adoption of a
wisely conceived system or plan of control of
credit expansion.
924
FEDERAL RESERVE BULLETIN.
In effect the policy of rationing industry will
Controlling ex- operate to control expansion of
pansion at the credit and thus avoid what are
source.
usually described as the evils of
inflation. As has been explained on former oc-casions, what is ordinarily called "inflation7' is
an increase in|the means of exchanging goods,
whether through the use of currency or of
bank credit in excess of or out of proportion
to the quantity of goods thus to be passed from
one part of the community to another. As the
situation was stated in the FEDERAL RESERVE
BULLETIN for June last:
"Whenever the volume of current purchasing power in terms of money, whether in
the form of actual currency or in the form of
credit, grows or is increased faster than the
volume of available goods, the resulting situation may be ascribed to the excess of currency or credit, or both, above normal requirements, or, more briefly, to the distension of
currency and credit. This alteration of the
proportion between existing goods and purchasing power eventually results in increasing
prices, not necessarily in the exact degree in
which the volume of purchasing power has
been increased, but in the degree in which it
is actively used to effect purchases and the
transfer of goods."
The existence of large quantities of goods
produced by industries which of necessity have
to make demands upon the banks of the country for the credit needed to maintain them implies a continuous effort to obtain from bankers a favorable decision on the question whether
the maintenance of such businesses is or is not
essential. This question is always difficult to
answer in any definite way, but the difficulty
of giving such an answer is much increased
when the plant and goods whose future is to
be settled by the banker's decision are already
in existence. The policy which is much more
likely to be effective is that of determining
what goods shall and what goods shall not come
into existence. This operates not only to the
end designed by the War Industries Board—
that of conserving men, fuel, transportation,
and materials—but, as already indicated, and
what is of most immediate concern to the Fed-
OCTOBER 1,1918.
eral Reserve system and the strength and
soundness of our whole banking situation, also
conserves credit and thus reduces the likelihood
of expansion of banking credit running an uncontrolled course.
ill though the plan of rationing both labor and
materials thus affords a needed
°f c o n t r o 1 o f t h e general scope of
business, it remains true that the
function of banking credit, in determining the
direction of business within the area marked
off for it, is still of basic importance. No
broad and general plan of fundamental control
can be expected to operate automatically with
such immediate and complete success as to
dispense entirely with the cooperation of
the auxiliary agencies afforded through the
supervision of credit by bankers. Credit, like
everything else of value, is limited in supply
and inadequate to meet all requirements that are
brought to bear upon it. It must therefore be
carefully protected in amount and fully safeguarded for the uses for which it is considered
most important. The fact that a control of business has been established through another means
thus in no sense reduces the need for a wise use
of credit from the banker's own standpoint.
Steady demand on the part of the Government
for more and more funds to meet its requirements may be expected to continue, and the
use of bank funds to carry current Government
requirements can not be kept upon a safe and
sound basis unless it is possible to bring about
a corresponding diminution of the accommodations extended by banks in other directions.
They can not, in a word, enlarge their support of the Government and at the same
time go on lending as heavily as before to
individuals and corporations if their aggregate
of loanable funds remains only the same as
was previously the case. They must, therefore,
choose from the business offered to them
that which is likely to be most serviceable
in the maintenance of national requirements,
and which at the same time will be most
likely to keep their own lending power up
to high level without absorbing it in the making of nonliquid or long-period advances. The
time has, however, arrived when the banker
FEDERAL RESERVE BULLETIN.
OCTOBER 1, 1018.
925
can consider this question of conservation of necessary to r e n d e r possible a subscription to
credit primarily from the banking standpoint t h e new securities b y n o m e a n s m e e t s t h e s u b rather than from that of the national economic s t a n t i a l r e q u i r e m e n t s of t h e case.
interest over which he has perforce been obliged
While t h e wide distribution of G o v e r n m e n t
to stand guard during the past months in which Loans on Gov- b o n d s obtained during t h e
a consistent and adequate policy concerning ernment securi- course of t h e third L i b e r t y loan
the elimination of unnecessary business was wies '
w a s highly satisfactory, a n d
still awaiting development at the hands ofj while t h e a m o u n t s of G o v e r n m e n t obligations
governmental agencies set up for the specific | actually subscribed for b y t h e b a n k s were compurpose of shaping the needed plan of con- | p a r a t i v e l y small, investigation shows t h a t in
trol.
'
| m a n y cases p r i v a t e individuals who h a d s u b What has been said once more emphasizes scribed t o bonds h a v e n o t liquidated their obthe necessity of obtaining not ligations as p r o m p t l y as is necessary b u t are
Absorbing the o r j y t } l e technical but the ac- I still carrying t h e m a t b a n k s which from time
bonds.
*.
_
.
.
.
i
i
i
'
to time renew t h e notes of their customers col-
tual absorption oi tne bonas j lateraled b y these securities. T h e compilaof the fourth Liberty loan and of achieving this !tion of d a t a relating t o t h e condition of savend through the self-denying process of saving, jings b a n k s which h a s been prepared b y t h e
The action taken by the War Industries Board Isavings b a n k s section of the American B a n k e r s
and by the draft authorities renders it easier to Association a n d is printed i n this issue of t h e
save in that the number of objects to which ex- F E D E R A L R E S E R V E B U L L E T I N shows t h a t cuspenditure can be devoted is less than before. tomers of savings b a n k s are still in m a n y cases
Nevertheless, the essential duty of providing new in d e b t t o these institutions in considerable
wealth from which to supply the requirements a m o u n t . This is a situation which in t h e
of the Government and thereby to enable the n a t u r a l course of events would t e n d t o b e wide and genuine distribution of the now bonds come m o r e r a t h e r t h a n less pronounced as
is greater than ever before. This necessity is more G o v e r n m e n t loans are placed o n t h e
doubly emphasized by the fact that the fourth m a r k e t . I n effect i t implies t h a t t h e b a n k s
Liberty loan and those which will necessarily are actually carrying a considerable p a r t of t h e
succeed it have assumed such great dimensions, bonds pending t h e time when t h e subscribers
making it evident that the utmost use must be themselves p a y for their securities o u t of saved
made of the resources of the country in order income. T h e necessity of greater saving in
to bring about a genuine sale of the new bonds. order t o render possible t h e definite absorption
More than ever before investors are called upon of t h e bonds b y p r i v a t e holders h a s t h u s become
not only to place their subscriptions but to incontestable, since i t is only in t h a t w a y t h a t
look forward to the early settlement of these new b u y i n g power c a n b e applied in t h e p u r subscriptions out of the proceeds of their own chase of t h e securities. Nor does mere converefforts, to the end that the banks may be re- sion of other i n v e s t m e n t s into funds which are
lieved of the certificates of indebtedness they used t o reduce t h e d e b t of individuals t o t h e
are now carrying, and may have their funds b a n k s contracted for t h e purpose of b u y i n g
left free to as great an extent as practicable for j G o v e r n m e n t bonds satisfy t h e requirements of
the continuous financing of the Government. the situation, unless accompanied b y some
This will be necessary so long as the warfurther action o n t h e p a r t of t h e buyer, since
lasts, since under the present plan of financing j t h e securities wilich are t h u s disposed of are
each loan is preceded by a series of certifi- necessarily t a k e n b y some one w h o p a y s for
cate issues designed to anticipate the actual t h e m either o u t of his own income or savings
placing of an issue of Liberty bonds. It j (by check on his deposit account), or else b y
should be evident by this time that the mere | borrowing from his banker.
hasty borrowing from banks of the amount |
83463—18
2
926
FEDERAL RESERVE BULLETIN.
The war revenue bill was passed by the House
of Representatives on September 20 and the measure n o w
nue^ii?^ ^ ^
goes to the Senate for action.
It is not only by far the greatest revenueraising measure in the history of the world,
intended as it is, to produce between $8,000,000;000 and $9,000,000,000 of income, but it
must also have a profound effect upon public finance and the banking position of the
country. Its significance in these aspects lies
in the relationship it must bear to the question
of the distribution and absorption of the new
issues of bonds and certificates of indebtedness
which the Treasury must place in order to obtain funds for the prosecution of the war. The
revenue act will render it more than ever necessary to bring about a definite curtailment of
unessentials both in industry and in consumption in order that there may be a sufficient
amount of actual fluid wealth to provide for
national necessities. From the banking standpoint the significance of the measure is found
in the effect to be exerted upon the ability of
the various institutions to pass on their securities to individual buyers. If as the result of
the operation of the new taxes incomes which
have already contributed what they deemed
their utmost to the purchase of Government
bonds are less able to support the Government's
loan policy than in the past there must be resort to two kinds of remedy. More intense
saving must be practiced by those who are
already the possessors of a savings margin which
they have been devoting to the needs of the
Government; and this margin must be further
enlarged in order that payment for taxation
need not infringe upon the bond purchasing
power of the individual. Looking at the question purely in its financial aspects, a second
remedy for the situation could be found in the
extension of taxation to those classes in the
community which have participated in the
"prosperity" resulting from the war but who
have not yet been called upon to make their
contribution to the revenue needs of the Government. The recipients of war wages and of
war prices for natural products do not under
OCTOBER 1,1918.
existing or proposed legislation contribute in
the same relative proportion out of surplus income to the needs of the Treasury as recipients
of money incomes above the present level of
exemption. Larger saving on the part of those
who are already paying taxes and purchasing
bonds to the extent of their present margin,
together with the extension of taxation to
classes not now heavily burdened, and increased
participation in Government loans may have
to be resorted to, otherwise the inevitable result of the situation will be that of transferring
the task of carrying the Government securities
to the banks in an even larger measure than
would otherwise be the case.
The legislation affecting the taxable status
of the new bonds which has
been ad
° P t e d h? Congress at
the recommendation of the Secretary of the Treasury has also an important
bearing on the banking outlook. This legislation, reprinted elsewhere in the present issue of
the BULLETIN, restores the principle of exemption from taxation which was a feature of the
original or first Liberty loan issue, but upon
a partial and limited basis. The legislation
will give to investors in Government bonds a
limited exemption from the surtaxes upon income up to a maximum of $75,000, of which
$30,000 must be subscribed to the new loan.
The bonds being exempt from normal tax the
prospective bondholder is able to reckon upon
complete freedom from income taxation up to
a reasonable figure. He is thus able to compare a yield, of 4£ per cent on Government
bonds with a yield from other securities which
would have to be appreciably higher in order to
afford an equality of return under the new revenue legislation. As the size of the income advances the inducement to purchase Government
bonds in lieu of private securities is increased, because the surtax upon the income of the private
securities becomes so much greater. Inasmuch,
however, as the smaller investors are those who
might conceivably obtain entire relief from
taxation by putting their means into Government bonds, the effect of the bond legislation
combined with the new revenue bill is that of
OCTOBER 1.1918.
FEDEKAL RESERVE BULLETIN.
927
appealing very strongly to the small or modIt should be noted that the figures given
erate investor as compared with the person of above relate to coin and currency not held in
larger resources. This is, of course, in the the Treasury or in the Federal Reserve Banks,
interest of the wider distribution of the secu- these, properly speaking, constituting no part
rities, since exemption from taxation ceases of the outstanding circulation in actual use as
as soon as a comparatively low principal hold- currency. It should also be noted that being has been reached. From the banking tween February 1, 1917, and September 17
standpoint the effect of the exemption should 1918, there was a decrease in the "outstandbe that of strongly encouraging the investor to ing" volume of gold and gold certificates,
become the actual owner of securities and, not offset by a substantially commensurate inonly this, but to hold them as well, since the ex- crease in the holdings of gold b^^ the Federal
emption privilege is so closely hedged about by Reserve system, to the extent of about a billion
restrictions that in effect make it nontra-nsfer- | dollars. There has also been a slight decrease
able. This should tend to prevent the practice j in the outstanding volume of other forms of
of borrowing heavily at banks for the purpose j currency, with the result that the net increase
of carrying large amounts of bonds, and should ; in the total outstanding volume of currency
similarly tend to encourage the small investor \ between the two dates has been, in round
to borrow moderately and devote himself to i numbers, $736,000,000.
the actual payment of his subscription with a : The fact that at the beginning of the month
view to retaining the securities as a permanent ; of September there were outstanding about
holding
| $2,100,000,000 Federal Reserve notes (inApprehension having not infrequently been : creased by the end of the month to $2,300,expressed in recent months at! 000,000) has led to hasty inferences regarding
Growth of Federal the rapid increase of the vol- jthe volume and condition of the country's
Reserve notes, umc of Federal Reserve notes, i currency since the Federal Reserve note bethe following table is presented ! came the most important constituent of its
to show the outstanding volume of gold coin •circulation. The truth is that, while there has
and certificates, Federal Reserve notes, and j been a material increase in the country's total
Federal Reserve bank notes, and all other • circulation, the increase is far from commenforms of currency issued in the United States, surate with the figures for the increase of
Federal Reserve note circulation. What has
for selected dates:
been overlooked by careless observers is that
Total money held outside the United States Treasury and an important change has been taking place
the Federal Reserve Banks on Feb. 1, 191:7, and Sept. 1, j
in the composition of our circulating medium by
1918.
':
the substitution in large volume of the Federal
Reserve note for the gold certificate.
Feb. 1,1917.
Sept. 1,1918.
Moreover, to get a faithful picture of the
Gold coin and gold certificates
I SI, 923,388,291
8913,282,661 ! situation, deduction from the total figures
Federal Reserve notes and Federal I
2,111,896,668 !,' should be made of the normal increase in cirReserve bank notes
I
261,944,910
1,627,467,179
All other currency
1,731,139,217
Total
] 3,916,472,418
4,652,646,508 j culation, which would, in any case, have taken
place. Based upon comparative figures of
population this normal increase in currency
Decrease.
Increase.
would have been about $100,000,000, so that
11,010,105,630
Gold coin and gold certificates
the residual figure representing the growth of
Federal Reserve notes and Federal
$1,849,951,758
Reserve bank notes
our circulation is reduced to about $636,000,000.
""iO3,"672*038 ,
All other currency
But even from this figure deduction should be
736,174,090
Total.
made if a full statement of the situation were
!
923
FEDEEAL KESEBVE BULLETIN.
OCTOHKK 1, 1018.
to be atlompLed, because of the increased | credit which does not correspond to immediate
activity of industry, measured not simply by resources or represent a genuine demand for
value of output but also by physical volume. means of exchanging goods.
Increased holdings of war-loan paper in conAllowance should also be made for the very
Operations of n e c t i ° n with the placing of the
considerable amounts of currency which, it is
understood, are being carried on their persons the Federal Re- two new issues of Treasury certificates and some curtailment
by prosperous wage earners who have not sorve Banks.
in the holdings of other discounts are indicated
developed the banking habit.
There should furthermore be deducted the by the comparative weekly figures of principal
currency consisting largely of Federal Reserve earning assets of the Federal Reserve Banks
notes which has been drawn from the United for the 4-weeks period, August 23 to SeptemStates in substantial volume (probably in ox- ber 20.
Between these two dates the banks increased
cess of 50 'millions since September, 1917) for
their
holdings of war-loan paper by 292.9 miluse notably in Canada, Mexico, and Cuba.
lions,
or over 3.4 per cent, while their holdings
Finally, the fact that the period of the year in
of
other
discounted paper actually fell off about
which the most rapid increase in the issue of
26.5
millions.
All the banks show substantial
Federal Reserve notes has occurred synchro|
increases
in
their
holdings of war paper. New
nizes with tlie crop-moving season and that at
I
York
reports
the
largest
absolute increase under
a time when the prices of all agricultural staples
I
this
head
of
about
120
millions,
while Boston,
rule abnormally high, may be taken as indicatwith
an
absolute
increase
of
about
30 millions,,
ing that the increase in the circulation of the
reports
the
largest
relative
increase
of over 64
Federal Reserve note has been in the main in reper
cent.
All
the
eastern
banks,
as
well as
sponse to actual needs. In consequence of all of
Richmond
and
Chicago,
show
some
falling
off in
which whatever inflation of prices maybe said
their
holdings
of
discounts
other
than
war
paper,
to exist can not properly be said to have been
induced by overissue of Federal Reserve notes. Since August 23 the proportion of war paper
The really striking increase in the available i in the total discounts on hand has gone up
purchasing power of the country has been fur- ! from 61.2 per cent to over 69 per cent. For
nished by the deposit accounts of the banks. 1 the Boston and Now York banks this percentFor the national banks alone this enlargement ! age is over 80 per cent, against 55.4 and 73.3
between March 5, 1017, and. June 29, 1918, ! per cent on August 23.
was about a billion dollars and is probably 1 Acceptances on hand show an increase from
materially greater to-day. Members of the 236.5 to about 250 millions, the New York
Federal Reserve Board have on various occa- bank reporting under both dates about 53 per
sions—most recently Governor Harding, in an cent of this class of investments. An increase
address before the Ohio Bankers Association ! of 18.5 millions in United States short-term
on September 5—called attention to the funda- ; obligations represents largely investments by
mental truth of the situation that the expan- . the banks in 1-year 2 per cent Treasury cersion, or so-called '''inflation,7' of which coin- -, tificates to secure Federal Reserve bank note
plaint is currently made, is not clue to the issue | circulation, issued by all the banks in place of
of Federal Reserve notes, the notes being ' the silver dollars and certificates broken up or
merely an incident or result of a process i canceled by the Treasury. United States bond
begun at the individual lending banks. "In- ;1 holdings show a decrease of 1.6 millions, the
flation," in short, occurs when loans are made present holdings of 29 millions being made up
upon some basis other than current produc- ; almost altogether of bonds deposited with the
tion. In so far as they represent advances I United States Treasurer to secure circulation.
based upon long-term investment or nonliquid I During the period under review the banks'
wealth they are likely to result in inflation— ; gold reserves increased from 2,003.1 to 2,023.6
that is to say, the creation of currency or millions and their net deposits from. 1,594 to
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
1,679.3 millions. Federal Reserve notes in
actual circulation show an increase from 2,032.8
to 2,295 millions, or at the rate of over 65 millions per week. The ratio of cash reserves to
aggregate net deposit and Federal Reserve note
liabilities declined from 56.7 to 52.9 per cent.
In the following table are shown the changes
between August 23 and September 20, 1918, in
the total discounted and purchased bills held
by each of the Federal Reserve Banks, as well
as changes between the two dates in the holdings
of other classes of investments:
929
But little change is noted in the aggregate
of loans secured by United States war bonds
and certificates, the September 13 total, 473
millions, being slightly more than 3 millions
in excess of the total given four weeks earlier.
For the banks in the central reserve cities the
September 13 total of 252.3 shows practically
no change from the earlier figure. The net
result of Government financing during the
four weeks under review is seen in an increase
of the aggregate of United States securities
other than circulation bonds and of loans
secured by United States war obligations from
[000 omitted.]
2,003 to 2,130 millions. For the same period
the central reserve city banks report an inNet
Federal Reserve .Hank.
Aug. 23. i Sept. 20.
increase.
crease of this composite item from 1,062.8 to
1,130.4 millions and the Greater New York
819,5.16
Boston
:
893,854 j £113,370
:
111,680 member banks an increase from 885.2 to 946.5
New York
077,685
789,365
14,465
Philadelphia
96,218 I
110,683
12,410 millions.
Cleveland
108,623 I
121,033
8,271
70,426
Kichmond
•
62,155
22,310
72,397
Atlanta
50,087
:
Aggregate loans and investments, exclusive
255,720
31,377
Chicago
224,343
70,047
20,425
St. Louis
;
49,022
71,000
6,277 of fixed investments, of all reporting banks deMinneapolis
64.723
71,322
8,704
Kansas City
O^OiS
52,284
8,733 clined from 13,002.7 to 12,998.4 millions, while
Dallas
.'
43,551
112,531
j
15,689
San Francisco
;
<)(>,842
the combined share of United States war obli:
Total
1,630,821
1,910,178 ;
279,857 gations and loans secured by such obligations
United States long-term seen- '
in the totals just given rose from 15.4 to 16.4
29,022
rities
'
30, C24
United States short-term sec a- •
For the central reserve city banks
rities
23,479
41,878 !
18,399 per cent.
22 a rise from 16.7 to 18 per cent and for the
Other earning assets
62
' 84 I
Total investments held
' 1,6S4,48(5
1,981,162
296,676 Greater New York banks a rise from 17.7 to
19.1 per cent in this ratio are shown.
„ Weekly' member bank reports from leading Considerable net withdrawals of Government
cities for the period August 16 deposits are shown for each week, except the
l
rf t o
2Sj
l!SL.
September 13 show k mod- week of the certificate issue, the banks reportB
erate though steady reduction ing a total net withdrawal of Government
from 554c5 to 480.2 millions in United States funds of 502.1 millions for the period under
bonds, other than circulation bonds, on hand review. Central reserve city banks report a
and a similar decrease In the holdings of reduction under this head of 306.2 millions and
Treasury certificates up to September 6, when, the Greater New York banks a reduction of
as the result of the 600-million issue of Septem- 264.2 millions. Net demand deposits of all
ber 3, these holdings increased 272.4 millions reporting banks, on the other hand, show a
for the week and reached a total in excess of continuous gain during the period of 351.1
1,200 millions. Since then this total declined millions, of which 173.9 millions comprises the
to 1,176.7 millions. For the central reserve gain at the central reserve city banks and 165.4
cities a similar movement is noted, maximum millions—the gain at Greater New York banks.
holdings of these certificates on September 6
Small gains are also shown for the total of
being 672.9 millions, of which about 575 reserve balances (all carried with the Federal
millions, or nearly one-half of the reported Reserve Banks) and of cash in vault. As the
total, represented holdings of the member banks result largely of the heavy withdrawals of
in Greater New York.
Government deposits, the ratio of combined
930
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
reserve and cash to deposits shows a rise from weeks that have intervened since the enterprise
14.4 to 14.7 per cent for all reporting banks, was first projected there have been not a few
and from 14.9 to 15.8 per cent for the banks in ' changes in the cotton situation and outlook,
the central reserve cities. " Excess reserves/' \ The size of the expected crop has been mate* in the calculation of which no account is taken ; rially reduced and the price, which had shown a
of Government deposits, reached the high level j disposition to decline, has again risen. On the
of 136.5 millions on August 30. Since then a j other hand, the War Industries Board has
large reduction is noted, the low level of 46.1 i announced the adoption of a definite policy
millions being shown on September 13. For \ probably involving the Government purchasing
the central reserve cities a similar development j of cotton and possibly the fixing of basic prices
is noted, the maximum of 109.3 millions being I for at least some grades of the staple. Nevershown on August 30, and the minimum of 29.4 [ theless, the new corporation has a large field
millions on September 13.
of activity before it. Governor Harding, in
During the month ending September 10 the j his addresses before the Cotton Conference in
net outward movement of gold j New York City last June, strongly indorsed the
of
Movement
was
$1,755,000, as compared j application of the acceptance plan in the cotton
gold.
with a net outward movement j trade, pointing out that it was practically a
of 84,376,000 for the month ending August 10. j further application of the same idea that has
Gold imports for the month, amounting to j already been adopted in connection with interSi,790,000, came largely from Mexico, Canada,j national trade in staples whose movement
and Colombia, while gold exports, totaling j gives rise to prime bills which are readily mar$3,545,000, were consigned chiefly to Mexico, j keted. It is in this and similar directions that
The gain in the country's stock of gold since j the proper field for the development of the
August 1, 1914, was $1,072,252,000, as may be acceptance is to be found, and not in the finanseen from the following exhibit:
cing or carrying of stored products or in the
collection of accounts of long or doubtful stand[000 omitted.]
j ing, some of which represent goods already
F.xcess of
consumed. The introduction of the acceptimports
Exports.
Imports.
over exance plan in moving the cotton crop may have
ports.
results of very considerable immediate im$23,253
| portance, but success in it will necessitate an
Aus. 1 to Dec. 31, 1914
8104,972
453,955
420.529
Jan.. 1 to Dec. 31, 1915
31,426
and modification of previously
685,745
Jan. 1 to Dec. 31, 1916
155,793
529,952 adjustment
Jan. 1 to Dec. 33, 1917
553,713
372,173
181,542
This work can be better
Jan. 1 to Sept. U), 1918
32,813
21,948 existing practices.
34,761
1,072,232 done, it seems likely, through an actual busiTotal
I 1,769,427
697,175
ness enterprise engaged in financing the accepti Excess of exports over imports.
ances growing out of cotton movement, than
The formation of the Union Discount Cor- through purely general or theoretical explanaporation, whose projected plan tion or discussion.
of
organization is elsewhere
The bill embodying amendments to the Fedpublished, is of special interest Amendments to e r a l E e serve Act was signed by
because of the bearing it has upon the financing the Federal Re- the President on September 26.
of the cotton crop. While the enterprise is serve Act
T h i g m e a s u r e k a s ] j e e n u n der
authorized to do a general commercial discount consideration for several months past, and the
business, it has been announced that one of its agreement now arrived at represents the outprincipal functions will be that of financing the come of elaborate legislative discussion. So
cotton crop through the use of acceptance fully has the scope of these amendments been
paper—both bankers' and trade. During the dealt with in past issues of the FEDERAL R E -
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN".
931
The Federal Advisory Council held its regular
that no comment upon them
quarterly session on September
is called for further than to say that the effects
16 and 1 7 t w o o i n t isessions
of the new measure will be to place national and
>
J
State banks and trust companies more nearly
being held with the Federal
upon a basis of equality of opportunity and com- Eeserve Board. The existing financial situapetition than in the past, and that the Board tion was fully discussed, and the CounciFexbelieves the tendency of the legislation will con- pressed itself as being in entire accord with the
sequently be toward strengthening and broad- discount policy at present pursued by the
ening the Federal Eeserve system. The change Board, feeling that satisfactory progress is
made by the bill in the methods of electing being made in the curtailment of nonessential
directors at Federal Keserve Banks is expected and less essential credits, and that proper
to bring about a more equitable and reasonable regulation of the entire credit situation can be
representation for all classes of banking insti- accomplished without further advances in
tutions.
discount rates.
With the view of easing the movement of
Other topics discussed had to do with the
currency from point to point gold export situation and allied problems.
Easing the cur- ifxn e rFepar eWr aall "RPQPTVP TV»^rrl h<*o.
rency
movement.
reserve .tfoara nas Discussion also necessarily dealt to some extent
proposed a plan under which with the conditions under which loans to the
the Federal Eeserve Banks would absorb the Government are to be placed and the relationcost of distributing Federal Eeserve notes to ship between the banking situation and public
their member banks—a charge which has here- finance. It was the feeling that present
tofore been imposed upon the banks that policies should be continued and that, all
applied for issues of new notes. Federal Ee- things considered, as good progress as could be
serve Banks are now paying the cost of trans- expected is being made in the protection and
portation on Federal Eeserve notes from Wash- conservation of banking credit.
ington, and these notes are available to banks
located in Federal Eeserve and Federal Eeserve Conservation of Productive Power and Credit,
branch cities without charge for delivery.
During the month of September several
The banks have also abolished their service important steps were taken that will be a
charges for collecting checks, and in many cases material factor in furthering the policy which
they are paying all transportation charges in the Federal Eeserve Board has long urged—
connection with the exchange of currency for the conservation of credit and productive power
and their application to the maintenance of
gold, as well as charges on currency forwarded necessary
enterprises to the exclusion of those
b}^ country banks to offset debits made against deemed less requisite.
them represented by the total footings of
letters containing checks for collection. It is GOVERNMENT ACTION TO INSURE CONSERVATION.
thought that the extension of the privileges
Believing that fundamental action designed
above indicated to member banks will remove to mark out the line of distinction between
the feeling that many country banks have essential and unessential industries is necessary
way of supplementing and making effective
that the Federal Eeserve Act discriminates by
the efforts hitherto underta ken for the control of
against them in favor of the banks in the larger j industrial operations, the War Industries Board
cities, and will at the same time prove an added j on September 8 made public an authoritative
stimulus to the State banks to apply for mem- !list of preferred industries to serve as the basis
bership. Should the plan be adopted thej for the allocation of labor, material, transportation, and fuel and as the basis for industrial
Board would, of course, reserve the right to j exemption
from the draft:
modify or rescind it at any time upon reason-!
The preference list of industries and plants, compiled
able notice.
by the priorities division of the War Industries Board, is
SERVE BULLETIN
932
OCTOliEU 1, 1918.
FEDERAL BESBEVE BULLETIN.
herewith presented. This list is the master-key governing
the flow of basic industrial elements to the industries
essential t©f the war program. It supersedes all previous
listing.
It is the basis for industrial exemption from the draft,
and may be regarded as the governing factor in the distribution of labor, capital, facilities, material, transportation,
and fuel.
MAJOR INDUSTRIES GROUPED.
confusion. The unprecedented expansion of the Army
and of the Navy of the United States, the creation of the
Emergency Fleet Corporation to engage in shipbuilding on
an extraordinary scale, and the demands made by our
allies for munitions, material, equipment, fuel, foods and
feeds, the abrupt change from a peace to a war basis have
all combined to create abnormal industrial conditions in
the United States, to regulate which the law of supply and
demand and other 7economic laws applicable to normal
conditions are whollj " inadequate. . The administration of
priorities is calculated to bring order out of chaos and to
develop an evenly balanced industrial program to meet the
requirements of the military program, and at the same time
supply the essential requirements (as distinguished from
the mere wants or desires) of the civilian population. Now
that it is understood that priority and preference can not be
purchased, the tendency is for prices to assume more nearly the normal level. It is now the public interest rather
Chan the dollars of the purchaser that determines precedence in production and delivery."
Closely associated with the promulgation of this new
preference list by the War Industries Board is the great
necessity for conservation in every possible way of men,
material, transportation and all energies that go to placing
the United States with all its power and resources behind
its men at the front in winning the war. It is necessary
now more than ever to save to the point of sacrifice so that
demand may be held to the bone, enabling supply to go as
far as possible.
The priorities division has grouped major industries
according to their relative importance into four great
•classes, consideration being given in this grouping to these
factors: (1) Intrinsic importance of the product for use
during the war and the urgency; (2) necessity for maintaining or stimulating and increasing the total quantity of
production; (3) proportion of the capacity of the industry
or plant devoted to the production of essential products.
Each industry or plant is given a class number.
Judge E. B. Parker, chairman of the priorities division.
states the determination of the relative importance of all
industries and plants for both production and delivery by
a single agency, the War Industries Board, renders it
possible to maintain a well-balanced program with respect
to the several factors entering into production, which
includes, among other things, plant facilities, fuel supply,
or electrical energy, labor, and transportation, without all
of which production is impossible.
Where it is imperative not only to maintain, but to stimulate and increase, production to supply abnormal deTHE PREFERENCE LIST.
mands created by war requirements, a high rating is necessary even though the intrinsic importance of the product
The preference list follows:
may be less than that of other products placed in the lower t NOTE.—The list is complete, except for the table showclassification, due to the fact that the supply of such other ing industries grouped by classes. The list is given alphaproducts equals the demand without the stimulus of high
priority. Certain plants produce commodities of more betically with the class number opposite each group.
relative importance, but at the same time produce other
WAR INDUSTRIES BOARD,
commodities of less relative importance and under such
PRIORITIES DIVISION,
circumstances consideration and weight is given to the
Washington, D. C, Septembers, 1918.
ratio of production between the more important and less
[Circular No. 20.]
important commodities.
NOT INTENDED AS EMBARGO.
The inclusion of the industries and plants on this preference list does not operate as an embargo against all others,
but the effect is to defer the requirements of all other industries and plants until the requirements of those on the
preference list shall have been satisfied. The paramount
purpose of priorities is the selective mobilization of the
products of the soil, the mines, and factories for direct and
indirect war needs in such a way as will most effectually
contribute toward winning the war.
In listing industries as such or individual plants, while
a number of factors are taken into account, the ultimate
test is: To what extent, if at all, will according preference
contribute directly or indirectly toward winning the war:
and, if at all, how urgent is the need.
A high priority classification does not always mean that
the product of the industry of plant so classified is of greater
intrinsic importance than those of industries and plants
in a lower classification or not appearing at all on the preference list, but that talcing into account the urgency of the
demand and the relation of supply to demand, it is in the
public interest that the artificial stimulus of priority should
be applied. All priority is relative and implies purposeful discrimination.
Continuing, Judge Parker says:
''Without a central agency to determine the relative
needs, importance and urgency of the requirements of
each department of this Government, of its allies and of the
civilian population, there would be hopeless conflict and
PREFERENCE LIST NO. 2, ISSUED SEPTEMBER 3S
1918.
[Superseding Preference List No. 1, issued Apr. 6, 1918, and all amendments and supplements thereto.]
FOREWORD.
The President has placed upon the chairman oi the
War Industries Board the responsibility for determining
and administering all priorities in production and delivery.
The determination of the relative importance of all industries and plants for both production and delivery by
a single agency renders it possibly to reasonably maintain
a well-balanced program with respect to the several factors entering into production, which include (a) plant
facilities, (b) fuel supply or electric energy, or both (c)
supply of raw materials and finished products, (d) labor,
&nd (e) transportation by rail, water, pipe lines, or otherwise. Without all of these—speaking generally—production is-impossible.
In compliance with the directions oi the President that
plans be formulated whereby there may be ''common,
consistent, and concerted action" in carrying into effect
I all priority policies and decisions, the chairman of the War
| Industries Board has created a priorities board, with the
j priorities commissioner of the War Industires Board as
I chairman, consisting of (1) the chairman of the Wai- In| dustries Board, (2) the priorities commissioner, (3) a mera| ber of the I-tailroad Administration, (4.) a member of the
United States Shipping Board Emergency Fleet Corpo! ration, (5) a member of the War Trade Board, ((>) a member
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
of the Food Administration, (7) a member of the Fuel
Administration, (8) a representative of the War Department, (9) a representative of the Navy Department, (10)
a member of the Allied Purchasing Commission, and (11)
the chairman of the War Labor Policies Board.
The decisions of the priori lies board are subject to review only by the chairman of the War Industries Board
and by the President.
For the guidance of all governmental agencies and all
others interested in (1) the production and supply of fuel
and electric energy, (2) in the supply of labor, and (3)
in the supply of transportation service by rail, water,
pipe lines, or otherwise, in so far as such service contributes to production of finished products, the accompanying designated Preference List No. 2 has been adopted
by the priorities board superseding Preference List No. 1
adopted April 6, 1918, and all amendments and supplements thereto.
Where advisable industries as such have been classified
and listed. In numerous instances individual plants have
been found to be entitled to preference, although the
industries to which they belong are not, and in other
instances where an industry as such has been accorded a
degree of preference particular plants in such industry
have been placed in a higher class. This has necessitated
classifying and listing not only industries as such but to
a limited extent individual plants, some of which are
accorded a higher rating than that accorded the listed
industry to which they belong.
The Preference List is made up of industries and plants
which in the public interest are deemed entitled to preferential treatment. The inclusion of these industries and
plants on this list does not operate as an embargo against
all others, but the effect is to defer the requirements of
all other industries and plants until the requirements of
those on the Preference List shall have been satisfied.
In the compilation of this list industries and plants have
been divided according to their relative importance into
four classes, viz, Class 1, Claso II, Class III, and Claps IV.
In determining such relative importance consideration and
weight have been given not solely to any one, but to all
of the following factors: (1) The intrinsic importance of
the product itself for use during the war, and the urgency,
as measured by time, of the demand or of the use to which
it is to be put; (2) the necessity for maintaining or stimulating and increasing the total quantity of production,
which in turn depends largely upon the relation of the
supply to the demand for essential uses; (3) the proportion
of the capacity of the industry or plant which is devoted
to the production of the essential product.
Where it is imperative not only to maintain but to
stimulate and increase production to satisfy abnormal
demands created by war requirements, a high rating is
necessary, even though the intrinsic importance of the
product may be less than of other products placed in a
lower classification due to the fact that the supply of such
other products equals the demand without the stimulus
of high priority. Where it is necessary to speed the production of a particular product required at a particular
time to carry into effect an important program, a high
priority is given, although changing conditions may thereafter suggest and demand a reclassification. Certain plants
produce commodities of great relative importance, but at
the same time produce other commodities of less relative
importance, and under such circumstances consideration
and weight is given to the ratio of production between the
more important and less important commodities. Instances
occasionally arise where individual plants are given pref-
83463—18
3
933
erence so long as they are rendering, and so long as it is in
the public interest that they should render, a particular
service, even though, taking the country as a whole, the
supply of their product is ample to meet all demands.
No distinction has been made between any of the industries or plants within any one class, and no significance
attaches to the order in which industries and plants are
listed within any class.
The industries and plants grouped under Class I are
only such as are of exceptional importance in connection
with the prosecution of the war. Their requirements must
be fully satisfied in preference to those of the three remaining classes.
Requirements of industries and plants grouped under
Class II. Class III. and Class IV shall have precedence
over those not appearing on the preference list. As between these three classes, however, there shall be no complete or absolute preference. The division into classes is
for the purpose of presenting a composite picture of the
relative importance of the industries and plants embraced
within each group. It is not intended that the requirements of Class II shall be fully satisfied before supplying
any of the requirements of Class III. or that those of Class
l i t shall be fully satisfied before supplying any of those of
Class IV. The classification does, however, indicate that
the industries and plants grouped in Class II are relatively
more important than those in Class III, and that those in
Class III are relatively more important than those in Class
IV. It will often happen that after satisfying the requirements of Class I the remaining available supply will be
less than the aggregate requirements of the other three
classes, in which event such supply will be rationed to the
industries and plants embraced within those classes. In
determining a basis for such rationing the relative importance of each industry and plant, according to its class
rating, must be considered. It has been found impracticable to prescribe for rationing purposes any general and
uniform rule or formula, but the priorities board will from
time to time, after conference, and in cooperation with
each of the several governmental agencies charged with
the distribution thereof, determine particular principles,
values, and methods of application which may be followed
in allocating fuel, power, transportation, and labor, respectively, to the end that proper recognition and weight
may as far as practicable in each case be given to the relative importance of Class II. Class III, and Class IV.
Each plant listed as such shall, not later than the 15th
of each month, file with the secretary of the priorities
board, Washington, D. C, a report on P. L. Form No. 3
(a supply of which will be furnished on application)
covering its activities during the preceding month. Any
plant failing to file such report will be dropped from the
preference list.
Priorities in the supply and distribution of raw materials,
semifinished products, and finished products shall be governed by circular No. 4 issued by the priorities division
of the War Industries Board under date of July 1, 1918,
and all amendments and supplements thereto or substitutes therefor.
The term "principally"' as used in listing industries
shall be construed to mean plants whose output is not less
than 75 per cent of the products mentioned.
This preference list shall be amended or revised from time
to time by action of the priorities board to meet changing
conditions. The priorities commissioner shall, under the
direction of and with the approval of the priorities board,
certify additional classes of industries and also certify additional plants whose operations as a war measure entitle
934
FEDERAL RESERVE BULLETIN.
OCTOBER 1, 1918.
Class.
them to preference treatment, which industries and
(large): Plants engaged prinicpally in manufacturing same
plants when so certified shall be automatically included Guns
for the United States Government and the allies
I
Hospitals. (See Public institutions and buildings.)
in the preference list.
EDWIN B. PARKER,
Priorities Commissioner.
Approved.
BERNARD M. BARUCH,
Chairman, War Industries Board.
INDUSTRIES.
[Listed alphabetically.]
Class.
Agricultural implements. (See Farm implements.)
Aircraft: Plants engaged principally in manufacturing aircraft or
aircraft supplies and equipment
I
Ammunition: Plants engaged principally in manufacturing same
ior the United States Government and the allies
I
Army and Navy: Arsenals and navy yards
2
Army and Navy: Cantonments and camps
I
Arms (small): Plants engaged principally in manufacturing same
for the United States Government and the allies
I
Bags: Hemp, jute, and cotton—plants engaged principally in
manufacturing same
IV
Blast furnaces (producing pig iron)
I
Boots and shoes: Plants engaged exclusively in manufacturing
same
IV
Brass and copper: Plants engaged principally in rolling, and drawing copper" brass, and other copper alloys in the form of sheets,
rods, wire, and tubes
II
Buildmgs. (See Public institutions and buildings.)
Chain: Plants engaged principally in manufacturing iron and steel
chain
Ill
Chemicals: Plants engaged principally in manufacturing chemicals
for the production of military and naval explosives, ammunition,
and aircraft, and use in chemical warfare
I
Chemicals: Plants, not otherwise classified and listed, engaged
principally in manufacturing chemicals
IV
Coke: Plants engaged principally in producing metallurgical coke
and by-products, including toluol, i
I
Coke: Plants not otherwise classified and listed, producing same..
II
Copper and brass. (See Brass and copper.)
Cotton: Plants engaged in the compression of cotton
IV
Cotton textiles. (See Textiles.)
Cranes: Plants engaged principally in manufacturing locomotive
or traveling cranes
II
(The term "principally" means 75 per cent of the products
mentioned.)
Domestic consumers: Fuel and electric energy for residential
consumption, including homes, apartment houses, residential
flats, restaurants, and hotels
Domestic consumers: Fuel and electric energy not otherwise
specifically listed
Ill
Drugs: Medicines and medical and surgical supplies, plants engaged principally in manufacturing same
IV
Electrical equipment: Plants engaged prinicpally in manufacturing same
*
Ill
Explosives: Plants engaged principally in manufacturing same
for military and naval purposes for the United States Government and the allies
Explosives: Plants not otherwise classified or listed, engaged
principally in manufacturing same
Ill
Farm implements: Plants engaged principally in manufacturing
agricultural implements and farm-operating equipment
IV
Feed: Plants engaged principally in preparing or manufacturing
feed for live stock and poultry
Ferroalloys: Plants engaged principally in producing ferrochrome,
ferromanganese, ferromolybdenum, ferrosilicon, ferrotungsten,
ferrouranium, ferrovanadium, and ferrozirconium
II
Fertilizers: Plants engaged principally in producing same
IV
Fire brick: Plants engaged principally in manufacturing same.. IV
Foods: Plants engaged principally in producing, milling, refining,
preserving, refrigerating, wholesaling, or storing food for human
consumption embraced within the following description: All
cereals and cereal products, meats, including poultry, fish,
vegetables, fruit, sugar, sirups, glucose, butter, eggs, cheese,
milk and cream, lard, lard compounds, oleomargarine and
other substitutes for butter or lard, vegetable oils, beans, salt,
coffee, baking powder, soda and yeast; also ammonia for refrigeration
Foods: Plants engaged principally in producing, milling, preparing, refining, preserving, refrigerating or storing food for
human consumption not otherwise specificalty listed; excepting herefrom plants producing confectionery, soft drinks, and
chewing gum
Ill
Food containers: Plants engaged principally in manufacturing
same
'.
Foundries (iron): Plants engaged principally in the manufacture
of gray iron and malleable iron castings
iv
Fungicides. (See Insecticides and fungicides.)
Gas. (See oil and gas, also Public utilities.)
Ice: Plants engaged principally In manufacturing same
Insecticides and "fungicides: Plants engaged principally in manufacturing same
.•
Laundries
Machine tools: Plants engaged principally in manufacturing
same
Medicines. (See Drugs and medicines.)
Mines: Coal
Mines: Producing metals and ferroalloy minerals
Mines: Plants engaged principally in manufacturing mining tools
or equipment
Navy. (See Army and Navy.)
Navy Department. (See War and Navy Departments.)
Newspapers and periodicals: Plants engaged principally in printing newspapers or periodicals which are entered at the post
office as second-class mail matter
Oil and gas: Plants engaged principally in producing oil or natural
gas for fuel, or for mechanical purposes, including refining or
manufacturing oil for fuel, or for mechanical purposes
Oil and gas: Pipe lines and pumping stations engaged in transporting oil or natrual gas
Oil and gas: Plants engaged principally in manufacturing equipment or supplies for producing or transporting oil or natural
gas, or for refining and manufacturing oil for fuel or for mechanical purposes
'.
Paper and pulp. (See Pulp and paper.)
Periodicals. (See Newspapers and periodicals.)
Public institutions and buildmgs (maintenance and operation
of) other than hospitals and sanitariums
Public institutions and buildings (maintenance and operation
of) used as hospitals or sanitariums
Public utilities: Gas plants producing toluol
Public utilities: Street railways, electric lighting and power companies, gas plants not otherwise classified, telephone and telegraph companies, water-supply companies, and like general
utilities
Public utilities: Plants engaged principally in manufacturing
equipment for railways or other public utilities
Pulp and paper: Plants engaged exclusively in manufacturing
same
Railways: Operated by United States Railroad Administration..
Railways: Not operated by United States Railroad Administration (excluding'those operated as plant facilities)
Railways (street). (See Public utilities.)
Rope. (See Twine and rope.)
Rope wire. (See Wire rope.)
Sanitariums. (See Public institutions and buildings.)
Ships (maintenance and operation of): Excluding pleasure craft
not common carriers
Ships: Plants engaged principally in building ships, excluding
(a) pleasure craft not common carriers, (h) ships not built for the
United States Government or the allies nor under license from
United States Shipping Board
Soap: Plants engaged principally in manufacturing same
Steel-making furnaces: Plants engaged solely in manufacturing
ingots and steel castings by the open-hearth, Bessemer, crucible,
or electric-furnace process, including blooming mills, billet
mills, and slabbing mills for same
Steel-plate mills
Steel-rail mills: Rolling rails, 50 or more pounds per yard
Steel: All plants operating steel rolling and drawing mills, exclusive of those taking higher classification
Surgical supplies. (See Drugs and Medicines.)
Tanners: Plants engaged principally in tanning leather
Tanning: Plants engaged principally in manufacturing tanning
extracts
Textiles: Plants engaged principally in manufacturing cotton
textiles, including spinning, weaving, and
finishing
Textiles: Plants engaged principally in manufacturing woolen
textiles, including spinners, top makers, and weavers
Textiles: Plants engaged principally in manufacturing cotton or
woolen knit goods
Textiles: Plants engaged principally in manufacturing textile
machinery
Tin plates: Plants engaged principally in manufacturing same...
Tobacco: Only for preserving, drying, curing, packing, and storing
same—not for manufacturing and marketing
Toluol. (See Coke; also Public utilities.)
Tools: Plants engaged principally in manufacturing small or hand
" tools for working wood or metal
Twine (binder and rope): Plants engaged principally in manufacturing same
War and Navy Departments: Construction work conducted by
either the War Department or the Navy Department of the
United States in embarkation ports, harbors, fortified places,
flood-protection operations, docks, locks, channels, inland
waterways, and in the maintenance and repair of same
Wire rope and rope wire: Plants engaged principally in manufacturing same
.*...!
Woolen textiles. (See Textiles.)
(The term "principally" means 75 per cent of the products
mentioned.)
Ill
IV
IV
II
I
II
Ill
IV
I
I
Ill
Ill
I
I
II
II
IV
I
II
I
IV
I
I
II
Ill
IV
IV
IV
IV
IV
IV
Ill
IV •
Ill
IV
II
n
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
RESTRICTIONS ON SPECULATION.
935
I am also directed by the committee to express its
cordial appreciation of the spirit of cooperation which
has always been shown by the officers and members of
the stock exchange in matters of this kind, which feeling
is shared by the officers of the Federal Reserve Bank.
Very truly, yours,
In order to insure that there be devoted
to the operations in the security markets only
the amount of credit resources absolutely
BENJ. STRONG,
necessary and to prevent the use of additional
Chairman of the Liberty Loan
credit beyond the funds now so used, thereby
Subcommittee on Money.
checking any tendency to expand the collateral- W. PI. G. NOBLE, Esq.,
loan account, there has been transmitted by
President, Neiu York Stock Exchange,
New York, N. Y.
Mr. Benjamin Strong, chairman of the Liberty
loan subcommittee on money for the New York
The recommendations made by Mr. Strong
district, to Mr. W. H. G. Noble, president of on behalf of the committee are, it is underthe stock exchange, a letter as follows:
stood, being followed by the members of the
stock exchange as requested.
SEPTEMBER 5, 1918.
MY DEAR SIR: As you are aware, a subcommittee of the
Liberty loan committee of this district was appointed on
CURTAILMENT OF LOANS.
September 5, 1917, and has undertaken certain duties in
connection with the New York City money market, for
the purpose of securing the most complete cooperation
Most of the Federal Reserve Banks have
with the Government in its financial program by all the endeavored in their various appropriate ways
financial interests of the city. The members of the
subcommittee are the following gentlemen: Benj. Strong to encourage the conservation of credit in
(chairman), James S. Alexander, George F. Baker, Walter their several districts. The methods pursued
E. Frew, Gates W. McGarrah, Charles H. Sabin, Frank A. have been in the main those of obtaining genVanderlip, James N. Wallace, Albert II. Wiggin.
eral informal agreement among bankers as to
The work of the subcommittee has met with the cordial
cooperation of the important interests connected with the the classes of enterprise that were to be reNew York money market and there has been maintained garded as essential and so far as practicable
an orderly course of affairs in which the supply of funds has encouraging the development of a systematic
been ample for the essential needs. We believe this condi- plan on the part of individuals and corporation can be continued. It is obvious, however, that for
the present there should be devoted to the security market tions for the support of the Government. The
no additional credit beyond the funds now so used. Any Federal Reserve Bank of New York on August
tendency to expand the collateral loan account should, 23 transmitted to the banks of its district and
for the general good, under present conditions, be checked. to their depositors letters as follows:
In order that this important situation may be handled
DEAR SIR: The Federal Reserve Board wrote you on
in a way that will result in the least possible inconvenience,
it is desirable that we should have a complete daily view July 6 relative to the necessity of conserving credit in order
of stock exchange loans. We recognize the disposition to furnish the Government the increasing volume of credit
of the stock exchange to cooperate in every way toward 1 it requires to finance the war, and the directors of this bank
contributing to the orderly conduct of the money market have instructed its officers to discuss the subject further
and, depending upon that patriotic disposition, we now with every bank in the district. While no general rules or
ask the governors of the stock exchange to collect, for the program for the conservation of credit can be laid down,
confidential use of this committee, daily statements from : the duty of each bank is to do its share in securing the
each member of the exchange showing, in such detail as desired results, acting reasonably and judiciously, in such
may be agreed upon in conference, the amount of time ways as its own conditions make practicable and as will
spare borrowers undue embarrassment. We have no doubt
and call loans of each stock exchange house.
This information will be for the confidential use of the that, like most bankers, you have already made some
committee in whose hands has been placed the responsi- progress toward conserving credit, and our directors wish
bility for maintaining an orderly money market. The to supplement the Federal Reserve Board's letter by askreports will bo asked i'or during a temporary period. At | ing you now to take up this necessary work systematically
the present time it is impossible for us to say for just how j and conscientiously.
long a period they will be needed. We will be obliged | Saving of credit by banks, in order to help the situation
if you will ask the members of the exchange to begin | as a whole, must be the result of saving on the part of borI rowers. Shifting loans from one institution to another, or
these reports at the earliest date practicable.
Lest any possible misunderstanding arise as to the object sales of collateral which merely throw the burden upon
of this request, I am directed by the committee to explain other shoulders, save no credit. Credit conservation can
that this is only one of the number of measures being only be accomplished by business or personal economies,
undertaken by the committee with the object of exercising, and requires cooperation between banks and their borrowby mutual understanding among the institutions and firms ers, and education of borrowers by their banks.
Producers, manufacturers, and merchants may do their
in this city, such reasonable and necessary control of the
employment of credit as will insure no interference with part and reduce their credit requirements—
the financial operations of the Government in conducting
By not overbuying;
the war.
By carrying as small stocks as practicable;
By postponing new construction, or expansion of their
Accurate information as to the amount of bank credit
being employed for stock exchange purposes will be useful business;
By effecting business economies.
in attaining these objects.
936
FEDERAL RESERVE BULLETIN.
Individuals may do their part by studying their personal
expenses and effecting economies which will enable them
gradually to pay off their loans.
May we suggest that you make a careful analysis of your
loans and lines of discount in order to determine definitely
what credit now in use is not directly connected with
Government financing, or the production or distribution
of things necessary to maintain the health and efficiency
of our armed forces and our civilian population. While
the majority of bank loans will prove to be for these
purposes, most institutions also have a considerable
volume of loans to individuals made for other purposes,
many of them of long standing. It is to loans of this
character as well as to the less necessary commercial borrowings, that credit conservation should first be applied.
New commercial lines or new loans to acquire or improve
property, or for nonproductive purposes, will rarely be
justified unless they are to aid directly in the prosecution
of the war. A spirit of saving in the use of credit will
naturally lead the banks themselves to exercise restraint
in offering new or additional lines of credit in competing
for business. A frank discussion of the principles and the
necessity of credit conservation with a borrower will
usually gain his cooperation, and where a borrower is
asked to reduce a loan having securities or commodities as
collateral, emphasis should be laid on the necessity of
gradual and steady reduction by personal economies rather
than by selling the collateral.
Several of our member banks, wishing to discuss the
matter with their borrowers, have asked us to prepare a
brief statement on the subject. We have prepared such a
statement, which banks, if they so desire, may either use
as a form letter or inclose with a letter of their own. We
shall be glad to furnish either statement in any quantity
to any bank in the district. Copies are herewith inclosed.
Will you be so good as to acknowledge this letter, advising us what you are doing or are willing to do in order to
save credit and giving us your views as to the best method
of accomplishing the necessary results? We suggest that
one most effective step would be for all the banks in your
city or county to reach an agreement for common action.
Whenever this bank can properly assist, you may count
upon our cooperation.
OCTOBER 1,1918.
By postponing new construction or expansion of their
business;
By effecting business economies.
The way for individuals to do their share and reduce
their loans is to study their personal expenses and effect
economies.
Borrowers whose loans are secured by Government bonds
or other collateral should remember that reduction of loans
by selling collateral is not helpful, since it usually merely
shifts the burden to other shoulders.
The hanks are asked to save their credit, which means
that their customers must use less of it. The saving of
credit is an integral part of the great saving policy which
the war requires the Government to adopt, and every man,
woman, and child to support to the utmost. Saving to
reduce loans is a patriotic sendee only second in importance to saving to buy Liberty bonds and war savings
stamps. Both help to transfer to the Government the
ability to command the labor and materials of which
President Wilson has said the allies are in such desperate
need. Both also help to accumulate for the saver a purchasing power which hs may need when the war is over.
The Federal Reserve Bank of New York asks the banks
in its district to send this message to their depositors,
feeling sure that it will meet with their prompt cooperation.
FEDERAL RESERVE BANK OF NEW YORK.
NEW YORK, August 23, 1918.
USE OF CREDIT FOK GOVERNMENT NEEDS.
The effort to bring about a general conservation of credit by preventing its use for unessential purposes has been paralleled and extended by the effort to bring about the definite application of credit so saved or conserved
to the needs of the Government. Most of the
banks have already been doing their utmost
to meet the requirements of the Treasury
Department, but in various parts of the country it has been sought to bring about a complete or more general cooperation. The following letter sent to banks in the State of
To bank depositors:
Nothing is more vital to the winning of the war than Utah by the banking commissioner of that
State furnishes an example of the work that
credit.
The Government often has to borrow immense sums, is being done in that direction:
temporarily, and the banks must stand ready at all times
to lend the Government what it needs. The ability of the
banks to lend is not unlimited. It is just as necessary for
them to conserve their lending power as it is to conserve
coal, food, steel, and other commodities for which the war
brings abnormal demands. Those who are producing,
manufacturing, or distributing things needed to prosecute
the war or maintain the health and efficiency of the civilian
population, will be able to obtain the credit to which their
needs and their standing entitle them; but new loans will
rarely be justified unless they are to aid directly in the
prosecution of the war, and every bank has been asked by
the Government to request all it borrowers to keep their
demands for credit down to the very minimum.
Patriotic citizens, whether in business or not, will wantto cooperate with this necessary Government policy.
The way for producers, manufacturers, and merchants
to do their share and reduce their credit requirements is—
By not overbuying;
By carrying as'small stocks as practicable;
AUGUST 26,
1918.
To the bank or trust company addressed:
In anticipation of the fourth Liberty loan, the Government a short time ago made a demand upon all banks of
the United States to invest 20 per cent of their total
resources in 4} per cent United States temporary Treasury
certificates.
Upon my recent visit to San Francisco, I had occasion
to go over the files in the office of E. W. Wilson, director
of sales, showing what our State banks have purchased in
these certificates. To my great surprise, I discovered
that some of the banks have not purchased a single certificate of any offering. Others have taken a part of their
allotments, while some have taken their allotments of
every offering. A. few of our banks can not carry the
entire load, but there is an equal responsibility resting
upon every bank and each should do its full part.
Bankers, we must win this war and every bank must do
its full duty. Nothing short of taking your full allotment
937
FEDERAL EESEEVE BULLETIN.
of these Treasury certificates at this time will accomplish
the demands and needs of our Government.
Banks who have not yet purchased your allotments of
these certificates, get busy and take up your delinquent
allotments, as well as the future ones, as the calls are
made, so that when these offerings are withdrawn every
bank in this State will be a 100 per cent purchaser of these
certificates.
If your institution has not the money with which to
make these purchases without injury to your business,
your needs can be supplied through your correspondent
bank, who will loan you the money on your note at 4J per
cent, the same rate the certificates bear, so that you are
out nothing, but at the same time you are helping meet
the needs of the Government.
The following resolution was unanimously passed by
the Salt Lake Clearing House Association at a special
meeting called July 23, 1918:
"Resolved, That the Salt Lake City Clearing House
Association does hereby pledge and agree that each of its
members will purchase its full allotment of United States
Treasury 4J per cent certificates as and when they are
offered; and
"Resolved, That each bank member hereby agrees to
carry its bank customers located in Utah that are nonmembers of the Federal Reserve system for their full allotment of Treasury certificates at the rate of 4£ per cent per
annum, upon the promissory note of said bank running
for a period not to exceed 90 days."
Similar resolutions have been passed by other clearing
house associations in this State.
You may argue that you do not want to show bills payable on your books, but in the minds of big bankers in
the United States this dread has passed. _ Banks that
have never shown borrowed money in their history of
banking are now showing bills payable upon their books,
and are doing their utmost to help win the war, and which
should be the object of every banker in the United States,
both large and small.
Your banks receive from time to time circular letters,
telegrams, etc., from E. W. Wilson, director of sales.
United States Treasury certificates of this district All
these communications should be given careful consideration, with the result of prompt action.
Yours, very truly,
(Signed)
W. E. EVANS,
Bank Commissioner.
LIMITATION OF SECURITIES ISSUED.
The Fourth Liberty Loan.
The Secretary of the Treasury announced on
September 24 that the amount of the fourth
Liberty loan would be $6,000,000,000; that
the rate of interest would be 4i per cent, and
the bonds would mature on October 15, 1938,
but would be redeemable at the pleasure of the
United States at par and accrued interest on
and after October 15, 1933.
The campaign will open September 28 and
close October 19, 1918, and all subscriptions
must be filed on or before the latter date, accompanied by an initial payment of 10 per
cent. Subscribers are given the privilege of
paying in full for their subscription without
rebate of interest at the time of application.
Quotas assigned to the several Federal Reserve districts are as follows:
Per cent. |
Boston
New York
Philadelphia...
Cleveland
,
Richmond
Atlanta
,
Chicago
,
St. Louis
Minneapolis
Kansas City....
Dallas
San Francisco.
Total
Amount.
$500, 000,000
30.00 1,800, 000,000
8.33J
500, 000,000
10.00
600, 000,000
4.66§
280, 000,000
3.20
192, 000,000
870, 000,000
14. 50
260, 000,000
4.33J
210, 000,000
3.50
260, 000,000
4. 33}
126, 000,000
2.10
402, 000,000
6.70
100.00 ! 6,000,000,000
In alloting these quotas the Treasury Department has taken into account the conditions existing in various parts of the country^
as well as the banking resources.
The Capital Issues Committee, in a resolution adopted on September 9, directed that
further issues of securities during the period Purchase of Stock of International Banking
of the loan should be suspended, the resolution
Corporation.
in question reading as follows:
Resolved, That in view of the paramount importance of
The Federal Reserve Board has granted permeeting the Government's financial requirements for war
mission,
under section 25 of the ^Federal
purposes, the Capital Issues Committee will not pass any
application respecting the sale or offer for sale of shares or Reserve Act, to the National City Bank of
securities during the period from September 15,1918, until
after the close of the fourth Liberty loan campaign, except New York to invest in the stock of the Interapplications which the committee may regard as urgently national Banking Corporation a sum not exceednecessary. Investment houses, brokers, corporations, ing 10 per cent of its capital and surplus. The
and others offering the unsold portion of security issues
heretofore passed by the Capital Issues Committee are National City Bank has a capital of $25,000,000
asked to withdraw the same from public offering or solicitation during the period from October 1 to the close of the and surplus of $35,000,000. The International
Liberty loan campaign in order to give the Government Banking Corporation is incorporated under the
the right of way. This action is not intended to restrict laws of the State of Connecticut and is engaged
counter sales or sales of listed securities made in ordinary
course of business on stock exchanges.
primarily in the business of foreign banking.
938
FEDERAL RESERVE BULLETIN.
Branch of the National City Bank in Cuba.
Permission has been granted by the Federal
Reserve Board to the National t!ity Bank of
New York to establish in Sagua La Grande,
Kepublic of Cuba, a subbranch, agency, or
office of its branch, with main office in Habana.
OCTOBER 1,1918.
Q. M. C. Form 40.
Approved by Comptroller of Treasury.
'June 15,1918.
[FRONT.]
UNITED STATES WAR DEPARTMENT.
QUARTERMASTER CORPS.
W.'S. S. No.
MEAL TICKET.
ORIGINAL.
Dollar Exchange.
Up to the present time banks and bankers
in the following countries have been authorized by the Federal Reserve Board to draw
drafts for the purpose of furnishing dollar
exchange: Argentina, Bolivia, Brazil, Chile,
Colombia, Costa Rica, Ecuador, Nicaragua,
Peru, Porto Rico, Santo Domingo, Uruguay,
Venezuela, and Trinidad. In this connection
the following letter was sent out under date of
August 20, in answer to an inquiry by a member bank:
To any Hotel, Restaurant, Dining Car, or Eating House:
Please furnish to
(name of individual in charge of party) and
other selected men en route to
(name of camp or destination) one meal each not to exceed 60 cents per meal. This ticket not
valid unless signed by representative of the Local Board. This ticket
is good for
days.
[Put Local Board stamp here.]
By.
R. E. WOOD,
Acting Quartermaster General.
(Representative of Local Board.)
(Signature of person in charge of party
to be signed in presence of Board's
representative.)
- at
has furnished
meals to the
I certify that
cents
each; total $ above on*this request, at (In charge of party.)
I certify that
- meals at - - cents, total $
, were furnished
to the above party.
(Party furnishing meals.)
Date used This ticket is not assignable and when completelyfilledout should be
indorsed on the back by the party furnishing the meals. It may then be
Referring to your letter of August 19, you are correct in deposited for collection with any bank and will be paid by the Quartermaster General, Washington, D. C., or if preferred, the party furnishing
your understanding that if the Board subsequently the meals may send this ticket direct to the Quartermaster General,
increases the number of countries whose usages of trade Washington, D. C, for payment.
[BACK.]
require dollar acceptance facilities, member banks theretofore given authority to accept such drafts may properly
(Indorsement.)
accept for those additional countries without further per- (name of bank).
Pay to the order of mission from the Board, the Board of course reserving its
(Signature of party furnishing meals.)
right to revoke its approval as to any particular member
[Indorsement by bank, stamps.]
bank or as to any country, it being understood that such
drafts comply with the provisions of the Federal Reserve
(This is for use of paying quartermaster.)
Act.
Subvoucher No.
to Voucher No. — . Abstract of disbursements
at — . for
, 19—..
Meal Tickets for Use by Drafted Men En Route
to Camps.
At the request of the acting Quartermaster
General of the United States Army, the Federal
Reserve Board at its meeting on Friday, September 6, 1918, voted that Federal Reserve
Banks be instructed to request all member
banks to receive such meal tickets for collection only, the tickets when so accepted to be
forwarded through their respective correspondents for collection.
These tickets are issued to drafted men and
are for their use in procuring meals and lodging
while en route from local draft boards to camps
to which they are assigned, and read as follows:
INSTRUCTIONS.
This meal ticket is issued by the United States War Department and
all hotels, restaurants, dining cars, and eating houses are enjoined to
honor it.
It is intended for the use of selected men traveling from the seat of their
Local Board to training camps, and when going to and from Medical
Advisory Boards under orders from the Local Board. It should be prepared by inserting the name of the person in charge of the party and that
person will sign the certificate for the meals at the bottom. The certificate of the party furnishing the meals must be invariably obtained.
One ticket will be prepared for each meal period (breakfast, dinner, or
supper) that will be necessary during the time in which the men are en
route to camp or away from' their homes in attendance upon Medical
Advisory Boards.
Only the original meal ticket will be delivo T,d to tho men going into
camp. The duplicate will be immediately mailed to the Quartermaster
General, Washington, I). C, the triplicate remaining in the book for
future reference.
The tickets are printed in triplicate, the
original being in black, the duplicate in green,
and the triplicate in red. The original only is
deposited for collection, the duplicate forwarded by payee to the Quartermaster General,
and the triplicate retained by payee.
OCTOBER 1, 191.8.
FEDERAL RESERVE BULLETIN.
It is the desire of the Board that all member
banks accept these meal tickets and thus
render assistance to the War Department in
facilitating the movement of troops.
Establishment of an Acceptance Corporation.
Following is the prospectus and plan for the
formation of an organization committee to
incorporate the Union Discount Corporation.
The undertaking is the outgrowth of the proposal to finance the cotton crop by the use of
the acceptance method which was discussed
during June last and has since been under consideration among trade authorities. The prospectus briefly reviews the history of the enterprise and the reasons for believing that the use
of this method of financing is desirable and
explains how it is intended to introduce the
new mode of dealing in acceptances:
Preamble.—On May 4, 1918, a general conference was
called and held under the auspices of the National Association of Cotton Manufacturers at the Hotel Biltmore, New
York, at which were present prominent northern spinners,
southern shippers, bankers, and others interested in the
cotton industry.
This conference resulted in the appointment of a committee of nine, composed of three northern spinners, three
southern shippers, and three bankers, to report on better
and more effective methods of financing cotton.
On June 8,1918, at a further conference held at the Hotel
Biltmore for the purpose, this committee unanimously
recommended that, in connection with present methods,
bank and trade acceptances be employed, so far as practicable, by shippers and spinners in financing cotton.
As a result of this report, the Union Discount Corporation is to be organized under the banking laws of the State
of New York for the purpose of dealing in both trade and
bankers' domestic and foreign commercial acceptance
paper.
Charter and capital.—The charter of the corporation will
be sufficiently broad to cover all phases of commercial
credit banking.
Among other powers it will have power to discount bills
of exchange, drafts, notes, acceptances or other choses in
action; to purchase and sell negotiable bonds or notes
secured by deeds of trust or mortgages on real property
wherever situated; to buy and sell notes and bills of
exchange or other choses in action owned, issued, or other
choses in action; to accept drafts or bills of exchange drawn
upon it, negotiated, or guaranteed by it; to advance money
on the security of bonds, notes, payable on demand or on
939
time not exceeding one year from date of acceptance; to
issue letters of credit authorizing the holder to draw drafts
upon the corporation payable on demand or on time not
exceeding one year from sale of letter of credit.
Subject to the approval of the Superintendent of Banks
of the State of New York, the corporation may establish
and conduct branch offices both within and outside the
State of New York.
The capital stock proposed will be $3,000,000, all common; divided into 30,000 shares of $100 par value each.
This stock will be offered for subscription at 110, and
will yield, when fully subscribed, $3,300,000. Of this
sum 2 per cent, or so much of it as may be necessary, will
be used for preliminary expenses, to be expended under
the super vision of the board of directors; 8 per cent will
be set aside as a reserve fund; the balance, or $3,000,000,
will be used for the purpose of creating banking credit
for the business of the corporation.
It is the purpose to distribute the capital stock as widely
as possible among banks, bankers, merchants, manufacturers, and others whose business brings them into the
market as sellers or purchasers of acceptance paper.
Plan of operation.—The primary object of the corporation
will be to buy, sell, and otherwise trade in acceptance
paper arising out of transactions in cotton, cotton goods,
and all other textiles. It is the purpose, however, to deal
in trade and bankers' acceptances covering transactions
in all other commodities as well.
In general, the plan of operation of the corporation will
be modeled after that so successfully followed for many
years by the large British discount houses which have contributed so much to the commercial supremacy of Great
Britain and the prestige of the pound sterling.
The principal office of the corporation will be located
in New York City. Agencies will be established, as
occasion arises, in the large commercial and financial
centers of the country.
Management.—The management of the corporation will
be placed in the hands of a board of directors, composed of
not less than 15 men.
No payment against subscriptions will be called until
3,000 shares have been subscribed. There wall be no
promotion stock issued; every share of stock issued will
represent cash at the rate of $110 per share.
ORGANIZATION COMMITTEE.
The National Association of Cotton Manufacturers now
desires to form an organization committee and from its
members and others obtain subscriptions for the first
3,000 shares of capital stock. These subscribers will be the
incorporators of the corporation.
SUBSCRIPTION AGREEMENT.
The undersigned, having read the foregoing prospectus
and plan for the formation of an organization committee
to incorporate the Union Discount Corporation, and approving the same, hereby agree to serve as a member of
940
FEDERAL RESERVE BULLETIN.
said committee, and to subscribe to the amount of the
capital stock of said corporation set opposite our respective
names below, and agree to pay for the same under the
following specific conditions, namely:
No subscriptions shall be due and payable until at least
3,000 shares of said capital stock shall have been subscribed,
and the approval of the incorporation has been received
from the Superintendent of Banks of the State of New
York.
Of the amount so subscribed, 10 per cent shall be payable when called by the chairman of the organization committee, but not until at least the said 3,000 shares shall
have been subscribed. Said 10 per cent of said subscription shall be expended under the direction of the said
organization committee.
The balance (90 per cent) of said subscription shall be
payable in three equal installments at 30. 60, and 90 day
periods, when called by the chairman of the organization
committee after subscriptions shall have been obtained
for the proposed 30,000 shares.
British Treasury Bills.
The FEDERAL RESERVE BULLETIN is able to
make the following statement about the issuance in this country of British treasury bills,
which have gradually become a well-known
feature of the short-term investment market:
The first issue of these 90-day bills was dated
August 23, 1917. The bills were issued under
authority of the act of Parliament of the
United Kingdom of Great Britain and Ireland
VI and VII, George V, c. 24, and the total
issue authorized was $150,000,000. It was,
however, stated by the British financial agents
in this country at the time that the bills were
placed on sale that not over $ 15,000,000 bills
would mature in any one calendar week.
The first lot of $15,000,000 was offered on a
5-J per cent basis and was immediately oversubscribed. Further lots of bills were put on
sale each successive week at the same rate
until September 18, 1917, when the basis was
increased to 5-| per cent. The sales were discontinued during the Liberty loan campaign
of last fall, but recommenced in November,
and on the 20th of that month the rate was
made 6 per cent, which has been the ruling
rate since that time. The dates on which the
various discount rates on British treasury
bills were made effective are as follows: August
23, 1917, 54 per cent; September 18, 1917, 5£
per cent; November 20, 1917, 6 per cent; Feb-
OCTOBER 1,1918.
ruary 6, 1918, 5f per cent; February 13, 1918,
o-J per cent; February 26, 1918, 6 per cent.
The amounts issued during the different
weeks varied, but at no time has the amount
outstanding exceeded the figure of approximately 8100,000,000, and recently the amount
outstanding has been substantially below
$90,000,000.
There has developed a substantial market for
the bills, and as the different series approached
maturity they have been rediscounted at
rates between 5 | per cent and 4J per cent,
depending upon the maturity.
The issue of the bills by the British Government did not increase the outstanding debt of
the United Kingdom of Great Britain and
Ireland in this country, as the proceeds of all
the bills were used to liquidate other obligations payable in this country and outstanding
at the time of issuance.
Foreign Exchange Problem.
Hon. R. C. Leffingwell, Assistant Secretary
of the Treasury, in testifying before the Committee on Ways and Means of the House of
Representatives, on September 12, 1918, with
reference to a bill to supplement the second
Liberty Bond Act (printed elsewhere in this
issue of the BULLETIN, as enacted), made a
statement concerning the foreign exchange situation, as follows:
Great Britain, France, Italy, and Canada are examples
of countries associated with us in tho war whoso currencies
in relation to the dollar suffered depreciation. Steps
taken to correct this depreciation have been comparatively
simple, consisting of the loan by the United States of dollars to be emploj^ed by the borrowing country in the
United States in support of its rate of exchange. Measures to this effect have been in operation for over a year in
regard to Great Britain and France. Owing to various
causes, it ha3 but recently been possible to take effective
action in regard to Italian rates.
Assistance was extended to Canada through Great
Britain for the correction of the Canadian exchange. The
dislocation of business between Canada and the United
States, much of which is war business of the highest importance, which was threatened through the fall in Canadian exchange, at one time seemed very serious. The
following table shows the lowest rate, expressed in percentage, at which these exchanges have sold as compared
with the rates at the present time:
.FEDERAL EESERVE BULLETIN.
OCTOBER 1,1918.
Lowest rate of foreign
currency (of the exchanges mentioned)
since August, 1914.
Great Britain
France
Italy
Canada
$4.50, or 7.53 per cent,
below par in September, 1915.
§0.1666 per franc, or
14.72 per cent, below
Dar in April, 1916.
$0.1003 per lira, or 34.37
per cent below par
in May, 1918.
23 per cent below par
in July, 1918.
Present rate.
§4.755, or 2.29 per cent,
below par.
SO. 1821, or 5.65 per cent,
below par.
S0.1570, or 18.65 per
cent below par.
About If per cent below par.
941
tina to stand to their credit with the Federal reserve
bank of New York, the Argentine Government arranging
for the payment in Argentina of the corresponding amount
of Argentine pesos at a discount of 3 per cent below the
par of exchange, the discount representing the estimated
cost of the ultimate shipment of gold.
An arrangement similar to the Argentine arrangement
but limited to $5,000,000, with an agreement looking to
an extension to a total of §20,000.000 by mutual consent.
of the two Governments, has been concluded with Bolivia.
An arrangement has just been concluded with Spain
whereby a group of Spanish banks agree to open to a
group of American banks credits amounting to 250,000.000
pesetas. These credits will to a great extent be required
for Army purposes in Spain. Negotiation of this credit
carrying as it does information that the United States
Government will not be in the market as a purchaser of
pesetas, has had a remarkably favorable effect on the rate
for Spanish pesetas.
The following, similar to statistical matter in the table
under paragraph 1, shows the low price of the dollar and
the present market price in the country named:
2. The countries in which the dollar has sold at a discount have been more difficult to deal with inasmuch as
the power to correct the decline has not been in the hands
solely of the Secretary of the Treasury, and it has been
possible only so far as the Secretary of the Treasury has
been able to induce the countries in question or their
banks to cooperate to that end by means of credits.
I would like to say, in connection with that, that the
exchange problem is not of Treasury creation. Exchange
is a question of settling trade balances. Ordinarily balCountry, India; par per United States dollar, 3.1 rupees;
ances are settled by exchange of goods. We have a ballowest rate of United States dollars of the exchange
ance to settle only when our exports to a foreign country mentioned since August, 1914, 2.5 rupees per United
are less than our imports from that foreign country. That States dollar September-October. 1917; United States
situation has been created by the whole-hearted participa- dollar was below r>ar 19.42 per cent; present rate (Sept. 6),
tion of the United States in the war, because the War 2.80 rupees per tjnited States dollar (stabilized rate on
transfers); United. States dollar is 9.75 per
Department, the War Industries Board, the Shipping telegrapMc
cent below par.
Board, and the War Trade Board said we can not ship the
Below par because of the cost of the bullion plus the
commoditites necessary to settle our neutral balances
because we need those commodities to help Gen. Pershing, cost of shipping.
India ships vast amounts of jute and things which can
as well as because of our loans to the allies. To the extent
we do not settle for the purchases in a foreign country in' not be gotten anywhere else, and we have little or nothing
goods we have to settle for them in gold cr in credit. The to send there. Our exchange problem is the result of
neutral-exchange problem existed even before the regu- our whole-hearted fighting of this war, and the Treasury
lation of gold exports was determined upon, simply be- feels it has been very successful in dealing with the
cause some of these countries did not want our gold. They situation. It has been the subject of careful study in the
were experiencing what we had begun to experience before Treasury from the beginning. We are dealing with new
we, entered the war—the evil results of a plethora of gold; conditions created by the war and must deal with them
besides, exchange rates are affected by the cost oi* shipping cautiously and not allow ourselves to be hurried into
gold, and that cost under war conditions is very groat; the I inconsidered action, but Secretary McAdoo and his
advisers were hard at work on the problem and feel now
insurance against risk is great.
An arrangement was made in relation to Indian exchange that very tangible results have been obtained. On the
whereby unlimited credits for approved war needs of the other hand, experience in meeting the problem shows
United States were opened in India. At one time the that some further latitude will make it possible to operate
condition of the exchanges between India and the United more effectively in the future, and it is with that in mind
States had become so difficult that exchange on India was that this analysis is put before you.
I have the figures for Argentina and Spain, showing in
unprocurable. The present arrangement stabilizes the
value of the rupee at a small premium, which premium is relation to the latter that the maximum discount was
rendered necessary by the rise in the price of silver, .the 35.11 per cent, and that the.discount now is 16.11 per cent,
India circulating medium, consisting to a great extent of which, in view of the fact that our efforts are by no means
silver. It is highly inadvisable to permit shipments of completed, is peculiarly gratifying:
gold to India because the precious metals that find their
Argentina, par per United States dollar, 2.36 paper
way to India disappear as in a morass and never reappear pesos; lowest rate of United States dollar since August,
1914, 2.1 paper pesos per United States dollar, December,
in the circulation.
1917; United States dollar was below par 10.87 per cent;
An arrangement was negotiated with Argentina whereby present rate (Sept. 6), 2.24 pesos per United States dollar.
credits amounting to $100,000,000 were allowed by Argen- United States dollar is 4.94 per cent below par.
83463—18
4
942
FEDERAL RESERVE BULLETIN.
Spain, par per United States dollar, 5.18 pesetas; lowest
rate"of United^ States dollar since August, 1914, 3.36 pesetas
per United States dollar, April, 1918; United States dollar
was below par 35.11 per cent; present rate (Sept. 6). 4.35
pesetas per United States dollar. United States dollar
is 16.11 per cent below par.
3. Arrangements with the Governments of Chile, Peru,
and Uruguay are at present in various stages of incompleteness.
4. Arrangements have been made with the Government
of Switzerland providing at the par of exchange for an
amount of Swiss currency sufficient for the needs up to
the present time of the American Expeditionary Forces.
Swiss exchange with the United States is at a rate where
the dollar is quoted at 13.72 per cent discount. This
arrangement at the par of exchange is therefore effecting
an important saving.
In attempting to deal with these varied situations many
difficulties are encountered. In almost all countries the
consent of the Government or the governmental bank is
required for transactions of such magnitude. Neutral
countries, especially whore they are in proximity to
Germany, often hesitate to undertake such transactions
with the Government of one of the belligerents. All
kinds of objections and obstacles are met with, and it
requires the fullest powers to enable the Secretary to deal
adequately with the various situations that present themselves.
Foreign Business of the National City Bank of
New YorkIn accordance with the policy already announced in the issue of the BULLETIN for
August, there is herewith presented an account
of the foreign banking operations of another
institution which has been engaged in the
development of American foreign trade—the
National City Bank of New York. As in
former cases, the statement has been prepared
by the institution to which it relates.
PART I.
The National City Bank of New York, at this waiting,
has 17 foreign banking houses established under the Federal Reserve Law, 14 of them located in Latin America, 2 in
Russia, and 1 in Italy. For a full practical understanding
of the foreign banking extension of the bank, it is necessary also to consider the branches throughout the world of
the International Banking Corporation, which the National
City Bank of New York controls through ownership of
practically all its stock and which is so closely affiliated
with the National City Bank of New York as to enable
the two organizations to work closely as parts of one banking system. The latter haB 15 branches in the Orient,
OCTOBEK 1, 11)18.
covering India, China, Japan, the Philippines, and the
Malay Archipelago, also a branch in London, and a spread
of branches and subbranches in Central America and the
West Indies. The combined system has 40 banking
houses abroad. The International Banking Corporation
maintains a banking house at San Francisco, Cal. The
National City Bank of New York has an office and a representative in Copenhagen.
The organization of the National City Bank of New York
is a unique thing in international banking. There is no
other great international bank in the world with quite
the same unity, or homogeneity, of organization. This
gives it distinct advantages in the effectiveness of its service of banking and general commercial assistance to its
American and foreign customers. The foreign banking
houses of the National City Bank of New York are American branch banks abroad by reason of their authorization
under the Federal law of the United States. At the same
time they are full functional local banks by reason of
authorization under the laws of the countries where they
are located. In either aspect, whether of foreign banking
houses of the American bank or of local foreign banks considered above, they are all giving a complete service of
banking, including the taking of deposits (both commercial
and savings in some places), extension of loans and discounts (or of permitted commercial overdrafts where that
custom prevails), and these services are offered primarily
to the communities of local merchants, for whom they also
conduct the foreign exchange transactions with every
part of the world which the community's business call for.
It is necessary for the National City Bank's foreign banking houses to conduct these full functions, including
foreign exchange with any part of the world, and it also
offers certain distinct advantages not only to the international organization of the bank but to American commerce for it to do so.
They are thus all complete local banks, but in another
aspect they are to be regarded as banking houses of one
great international bank; the personnel and the policies
of their organization are purposely kept homogeneous;
they are not permitted to grow apart in the spirit of
separatenoss they would necessarily feel if they were just
foreign subsidiaries of some American institution. The
American and foreign customers of the National City Bank
of New York are thus all in one family, in a sense. The
National City Bank of New York, in New York, or the
National City Bank of New York in Buenos Aires, or the
banking house wherever located, is in reality all the one
bank.
. This is essentially a different system from that of the
typical foreign extension of European banking. The
typical British system has consisted of spreads of branch
banks covering certain parts of the world, with a head
office in London, most of the branch banks emphasizing
exchange business. To-day the movement in England,
seen in the current amalgamations and expansion of bank
capital there, is to have great "world systems" of British
OCTOBER 1, 1018.
FEDERAL RESERVE BULLETIN.
943
Empire banks with branches all over England and spreads If official figures were available, they would show a comof branches over the rest of the world.
parative standing of importance for the Habana, MonThe National City Bank ox New York has devoted con- tevideo, and Genoa banking house of the National City
siderable energy in foreign bank extension to the very Bank of New York. The most lately established foreign
important work of systematizing credit information regard- banking houses have not all attained this rani:, of course.
ing foreign merchants, etc., not alone as to its foreign
The bank has adhered to the policy of accumulating at
justomers, but including all the important firms in the its banking houses in different parts of the world sufficient
countries where it has branches. In several foreign coun- stocks of commercial bills to enable it to have on hand at
ties where it was not usual to obtain definite statistical all these points, at all times, ''dollar exchange" ready for
tacts about a firm, such as are included in balance sheets, sale to United States exporters and importers. In this way
the bank has been able to overcome the prejudice and get the bank is able to sell exchange at a much steadier rate,
the information, along with other pertinent commercial from day to day, than if it had to go into the local markets
data of great benefit to its customers.
and bid for bills on a hand-to-mouth basis in order to meet
In connection with all its own banking houses abroad, the demands of its customers. The fact that these stocks
ana as far as is practicable with the International Banking are distributed at convenient points abroad gives an imCorporation branches, the National City Bank of New portant advantage to American business and has enabled
York conducts a foreign trade service for the interna- the bank to contribute with good effect to the building up
tional benefit of its customers and of business in general. of ''dollar credits" in general international banking.
By a special organization it has systematized the exARGENTINA.
change and distribution of commercial information, some
of it obtained as a by-product of regular banking, other
The banking house of the National City Bank of New
secured by special commercial representatives employed York at Buenos Aires was the first branch of a national
especially for this business. This service is intended to bank opened abroad under the Federal Reserve law. It
be of mutual benefit to United States and foreign custom- was established in November, 19M. Through this banking
ers. The value of the service is increased by the inti- house the National City Bank of New York conducted the
mate form of the international organization of the bank, ! negotiations and the financing of the Argentine loan of 19.15
it consists not only of systematically handled credit and ; and subsequent international public financing that siggeneral information about firms individually, of reports nalized the expansion of United States banking into the
on business conditions in general and the current situa- larger phases of its foreign activities. Through the medium
tion in specific lines of trade, but also includes a large of this house, also, the Industrial Union of Argentina convolume of mail between the New York banking house ducted its notabio negotiations in .19.16 with United States
and the hanking houses abroad relating to definite nego- | exporters for the settlement of a large number of claims
tiation for goods and for business connections, in which due to commercial misunderstandings in the flood of early
the bank acts as mutual friend and mediary only, getting war-time business between this country and Argentina.
its international customers acquainted with each other, There is no phase of modern international banking which
using its good offices in smoothing over misunderstandings, this banking house does not conduct as a part of its ordiundertaking no activities of buying or selling for its own nary routine. It has a large clientele of leading Argentine
account.
business houses as customers. The growth of its business
Owing to the typical, relationships of the foreign bank- has made advisable a notable extension of the city bank
ing houses of the National City Bank of New York in the system in Argentina to come in the near future.
general international organization of !:he bank, it does
BRAZIL.
not seem necessary to describe the business of each, the
The representation of the National City Bank of New
capitalization devoted to it, etc. The publication of
the Argentine Bank figures in the August issue of the York in Brazil consists of the large banking house in Rio de
FEDERAL RESERVE BULLETIN" shows the deposits of the Janeiro and the banking houses at Sao Paulo, Santos, and
Buenos Aires banking house to have been $20,420,300 Bahia, the Rio branch having a position of authority in
(roughly converted from Argentine pesos) in April. At the group, but all doing the complete business, with full
the first of the year the banking house at Rio de Janeiro power to negotiate and close business transactions, which
stood sixth among the leading native and foreign banks is characteristic of the international organization.
there, having resources of 136,860 contos, the other bank Through these banking houses the National City Bank of
totals being Banco do Brazil. 556,855 contos; London and New York has assumed an important position in the local
Brazilian Bank, 192,444 contos; Banco Mercantil do Rio business situation in this part of Brazil, and has estabde Janeiro, 158,627 contos; Banco Nacional Ultramarino, lished cordial relations with governmental authorities and
138,957 contos; London and River Plate Bank, 137,447 agencies. Current developments forecast an early extencontos. The banking houses at Sao Paulo, Brazil, stood sion of the Brazilian group into other important commerfifth among the institutions of Sao Paulo and Santos. cial territories of the great Republic. Subject to warThere is also a National City banking house at Santos. time governmental control, and the limitations of law,
944
OCTOBEB 1, 1918.
FEDEKAL RESERVE BULLETIN.
the Brazilian banking houses of the National City Bank of extension of its facilities, working closely with the spread
New York are doing a large volume of banking in all its of branches of the International Banking Corporation here,
phases in commercial financing of business between the may be looked for.
ITALY.
United States and Brazil, and of Brazil's own commerce
with all the world.
The banking house of the National City Bank of New
URUGUAY.
York in Genoa, Italy, is an imposing structure in that
The banking house at Montevideo occupies a position important center of Italian industry and commerce.
of influence among the foreign institutions there, and is Its sphere of banking influence extends all through the
worldng closely with the local banking system of the Lombardy region, where it. lias made important conneccountry in conducting every phase of financing which the tions with clients whose business will include activities
National City Bank of New York handles. When the in Italo-American after-war commerce. Effective relaheavy balances of merchandise trade between the "River tionships with the local Italian banking system have been
Plate markets and us and the nations associated with us in built up also. This banking house lias been one of the
the war turned exchange rates adversely to the dollar, mediums for a large volume of exchange transactions conthis banking house and the Buenos Aires banking house ducted by the bank between Italy and America since
went as far as they could safely and legitimately go as the early stages of the war.
purely commercial banks, through liberal credit transacSCANDINAVIA.
tions accorded to American business, in ameliorating the
disadvantages of the situation; and since the United
The National City Bank of New York has an office at
States Government, through establishment of large credits Copenhagen, where its Scandinavian representative makes
on Government account in the Government institutions his headquarters. Through the medium of the strongest
there, and negotiation of arrangements by which our banks of Norway, Sweden, and Denmark, with which, the
Federal Reserve banks sell, exchange, and settle the bank has particularly close relationships, this office is able
accounts of our importers without necessity of shipping to offer American business interests complete banking
gold, the banking houses of the National City Bank of facilities connected with exchange, establishment of forNew York have continued to cooperate in a way to assist eign credits, also commercial information for purposes of
in this important service to our commerce in the abnormal promotion of commerce.
situation,
CHILE.
In 1916 the banking house at Valparaiso, Chile, was
organized and opened for business. The bank has just
opened a subordinate office in Santiago, which will later
probably carry on full functional banking locally, although
it now does practically a full business by means of the
Valparaiso facilities. The Chilean representation has not
only conducted full local and international activities, but
the Valparaiso banking house did pioneer work in the
present very important monetary development in Chile,
importing gold for the purpose.
RUSSIA.
A branch of the National City Bank of New York was
opened in Petrograd on January 15, 1917, and up to the
time of the Bolshevik revolution last November this
branch was doing a large and rapidly increasing business
with both Americans and Russians. A branch of the
bank was opened in Moscow on November 28, but due to
the unsettled political situation tho opening of this latter
branch was of a very informal character.
In the latter part of December all private banks in
Russia, including our branches, were seized by the Soviet
| Government, who thereupon instituted a process of
THE WEST INDIES AND CARIBBEAN.
nationalizing the banks by making them branches of the
Two years ago the National City Bank of New York Sfcat-e bank. Our branches were excepted from this
concluded an arrangement with the stockholders of the process, but at the same time their business was greatly
Bank of Habana by which that important bank in Cuba restricted, being put under the general banking regulations
of the other Russian banks.
was absorbed in the National City Bank of New York and
became the Kabana banking house of the latter. A subPART II.
ordinate, but completely equipped and full-functioned,
banking house was a little later opened at Santiago de
The International Banking Corporation is the pioneer
Cuba. This year a new banking house was organized and American bank to organize and operate a system of foreign
began business at San Juan, Porto Rico. For nearly a branches. For nearly 17 years it has been specializing
year a banking house has been fully organized and doing in the finance of American trade with Asia, particularly
the National City Bank's full banking activities at Ca- China and the Philippines.
racas, Venezuela. The importance of this region of Latin
The first foreign agent of the corporation was appointed
America to United States business interests is fully recog- in Shanghai early in January, 1902, for the purpose of
nized by the National City Bank of New York, and further assisting the United States Government in the collection
OCTOBBB 1, 1918.
of the Chinese Boxer indemnity. Since that date various
branches have been opened until now the corporation
controls 24 branches in 10 different countries.
The corporation derives its powers from a special charter
granted by the General Assembly of the State of Connecticut , approved June 14, 1901. Its formation was the
outcome of the widespread interest in oriental trade which
was aroused by the United States obtaining control of
the Philippines. The capital at first paid in (December,
1901) was $500,000. This capital has subsequently been
increased until at present it is $3,250,000, with a surplus
of $3,250,000 and undivided profits of $2,118,000.
Recently, with the approval of the Federal Reserve
Board, practically all the stock has passed to the National
City Bank of New York, under the act of Congress authorizing such investments by national banks. The directors
of the corporation are now in the main officials of the National City Bank. Since 1915. with the powerful support
of the National City Bank, the business of the corporation
has rapidly expanded until on June 30, 1918, the total
resources of the institution were in excess of §100,000,000.
It has been demonstrated by the experience of the International Banking Corporation that a banking machine,
however perfect, without very large resources can make
little impression on a foreign trade amounting to hundreds
of millions of dollars annually. At the same time large
banking power not coordinated with long experience in
the intricacies of the eastern exchanges and with a ripe
knowledge of the customs and banking practices of oriental peoples is ineffective. The application under Government sanction, therefore, of National City Bank power
to the International Banking Corporation machine should
produce increasing benefits for American business. It
marks a long step forward in the finance of American
import and export trad® with China and other eastern
countries.
The system of branches now in operation extends to the
following cities: Yokohama and Kobe, the two principal
ports of Japan; Shanghai, Hankow, and Tientsin, the most
important ports of North China; Peking, the capital and
center of political activity; Hongkong, the chief port for
the trade of south China, and Canton, on the Chinese
mainland; Manila and Cebu, the principal cities of the
Philippines; Singapore, the capital and trade center of the
Straits Settlements; Batavia and Surabaya, the leading
ports of Java, in the Dutch East Indies; Calcutta and
Bombay, the financial centers of British India, the one on
the eastern and the other on the western side of the peninsula; and London, England. In addition, the corporation
maintains two branches in Panama, one in the Republic of
Colombia, and four on the Island of Santo Domingo. An
agency in San Francisco completes the chain.
The business of the corporation very largely consists of
the financing at its branches of the export and import
trade centering at that given point The function of the
head office in New York is to provide financial facilities,
to purchase export bills, to make shipments of gold and
945
FEDERAL BESERVE BULLETIN.
silver in cover of branch purchases of American bills of
exchange, to grant credits to American and foreign firms,
to authorize credits at branches and generally to supervise
the operations carried on in the various countries. The
London office acts as the clearing agency for the sterling
and European transactions of the branches.
CHINA.
The parent bank branch for North China is situated in
Shanghai. Under its immediate supervision are the
branches in Hankow, Tientsin, and Peking. The Shanghai office was opened for business on May ]5, 1902. The
Peking, Hankow, and Tientsin offices were opened a few
years later, the first with the distinct purpose of being of
assistance to the American group which had just become
interested in the Chinese reorganization or six power loan.
The corporation has subsequently acted as the financial
agent of the American group in China. The staff of the
north China branches now numbers 131.
In Shanghai is centered a large part of the import and
export trade of China. The principal exports are raw
silk, cotton, yarn, and tea. The foreign business houses
which handle tthis vast trade are located not in the native
city but in the foreign settlements, where they are outside
of the jurisdiction of the Government of China. The
International Banking Corporation occupies a large building in the center of the business section. Shanghai, because of this grouping of foreign firms, through which the
bulk of the foreign trade of China is handled, is an international port rather than a Chinese port and the business
generally has an international aspect. There are many
important firms which have had their establishments in
China for a generation or more and these firms compete
actively for business of all kinds regardless of the country
from which the goods in question are to come or go. The
more important firms represent in particular a long list of
British and American concerns who are exporters of
manufactured articles to China. "With their large resources they arrange, to purchase China products in the
interior from season to season and to export them to
various countries. Russian business, French business,
British business, Chinese business, and American business is keenly competed for by both firms and banks regardless of nationality. In recent years Japanese firms
and banks have become increasingly important factors.
There are now 12 foreign banks, including the International Banking Corporation, in Shanghai offering facilities to merchants of all countries interested either in
placing their manufactured products with the Chinese or
in the purchase of raw materials in China.
Hankow and Tientsin are much like Shanghai, except
that they are on a somewhat smaller scale. Europeans and
Americans reside and do their business within the settlements. Hankow, situated 600 miles up Yangtze River, is
the great interior trading post of China. It is known
especially as the tea center, although from it is shipped a
large amount of raw cotton, hides, wood oil, and oil seeds.
946
FEDERAL RESERVE BULLETIN.
OCTOBER 1, .1918.
Near Hankow are situated important iron works now con- | to the need of American trade which has arisen since the
trolled by the Japanese. It is expected that some day war through the direct shipment of Java's products to this
Hankow will be the railway center of China. At present country as against the former practice of consigning them
it is the terminus of a line which runs to Peking and which to Holland for resale. The staffs of the two offices already
also connects with the Manchurian railways and the j number 21. The Batavia manager is of Dutch nationality
Trans-Siberian. Tientsin, which is only a few hours away with long experience in the east and London. The prinby rail from Peking, is much more of a business center cipal exports are petroleum, coffee, copra, sugar, tea, tin,
than the capital itself. From it are shipped large quanti- j and tobacco. Imports come chiefly from Holland, alties of wool, hides and skins, bristles, straw braid, and pre- though those from America have recently shown an enserved eggs.
couraging increase. A large trade is done with the Straits
Hongkong is a British colony. It is situated principally Settlements and British India.
on an island and its harbor is one of the finest in the
BRITISH INDIA.
world. An immense business is carried on here as in
Shanghai. Similarly, there are important manufacturing
The Indian branches of the corporation are at Calcutta
industries, cotton mills, sugar refineries, cement works, and Bombay. The staffs of the two offices number 125,
rope, glass, and ice factories. The trade of the port is which gives an idea of the magnitude of the business translargely in cotton goods, sugar, flour, and metals.
acted and the extent of the facilities which are at the disCanton, the greatest city of south China, is only four or posal of American merchants interested in trade with
five hours (112 miles) by train from Hongkong and is an British India. India is more than a country. It is in
overnight run by boat. The net value of its trade in 1916 every sense an empire. Its problems, political, trade,
was Haikwan taels 108,000,000. The business of the cor- financial, and exchange, are quite foreign to those of China
poration's Canton branch largely consists of loans and ex- and other eastern countries, and banks operating there
change operations against silk, tea, cotton, rattans, and require specially trained staffs. The corporation fortuother commodities. The Hongkong and Canton staff i nately has been able to be of material assistance in financing
numbers 74.
j the shipment to this country of large quantities of Indian
PHILIPPINE ISLANDS.
products essential to the prosecution of the war, chief
Manila is approximately two days distant from Hong- among which have been jute, gunny bags, hides, and
kong by steamer. The office of the corporation here in con- J skins. India is also a country where import cover for
junction with the branch at Cebu, located on one of the j purchases of exchange against exports is not readily secured
southern islands, finances not only an important import and necessitates the employment of staffs familiar not only
trade from the United States in various commodities, but j with local practices but who are capable of rapidly taking
also large exports of hemp, copra, sugar, tobacco, and j advantage of exchange situations arising in the Dutch
cocoanut oil. For many years the corporation, with two i East Indies, the Straits Settlements, Hongkong, Shanghai,
or three other banks, acted as depositary of Philippine j and Japan. That such a large American organization
Government funds. These funds are now lodged with the exists to-day and has not yet to be created through long
Government bank. The Philippine staff numbers 74.
painful years of experience is of great importance to American foreign-trade interests.
STRAITS SETTLEMENTS.
The corporation's branch in the Straits Settlements is
located at Singapore. Its principal activities are in connection with the purchase of exchange covering exports of
tin and rubber in which there is a vast trade. The imports and exports of the colony in 1916 totaled 3600,000,000.
The currency of the colony is the Straits dollar, worth
about 56 cents. The problem of securing exchange cover
against purchases is a difficult one. Competition between
the nine British, French, Japanese, Dutch and American
banks represented in Singapore is exceptionally severe.
Nearly ail the important trading firms are British. The
staff of the branch numbers 20. The manager has spent
many years in the Straits and has an experience which
should be of value to American merchants, especially
those interested in the products of the colony.
DUTCH EAST INDIES.
JAPAN.
The Japan branches of the corporation are situated in
Yokohama and Kobe, the former the chief port for the
exportation of Japan's principal product, silk, and the
latter the chi-jf port for the importation of cotton and other
materials entering into the manufactures of the country.
Although, the Japanese banks have offices in this country,
American merchants, for the most part, prefer to pass their
business through an American organization. It is fortunate, therefore, that the facilities of such a complete organization are at their disposal. The staff in the two offices
numbers 74. Relations of close friendship exist between
the corporation and the Japanese banks, whose managers
are keen business men and ready to help in every way in
j the development of trade between our two countries.
PANAMA.
The Dutch East Indies branches of the corporation at
The Panama branches of the corporation are situated in
Bata via and Soerabaya on the island of Java are of more the cities of Panama and Colon. They were established a
recent organization. They were established in response j number of years ago for the purpose of affording banking
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
947
111. R. 112*3.]
facilities to Americans employed in connection with the
construction of the canal, and now are of special utility as AN ACT To amend and reonact sections four, eleven, Fixtccn, nineteen,
and twenty-two of the act approveu December twenty-third, ninerespects the payment of canal tolls by vessels of all nations. teen
hundred and thirteen, and known as the Federal'Reserve Act,
and sections fifty-two hundred and ei£?ht and fifty-two hundred and
A considerable commercial business is also done.
nine, Revised Statutes.
COLOMBIA.
A branch was established in Medellin, Department of
Antioquia, in 1916. At this branch a commercial and
exchange business is transacted. Owing to the difficulties
of transportation and communication, however, the operations of this branch are more or less of a local character
unrelated to business in other cities of the Republic, such
as Bogota, the capital.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled, T h a t
section four of the act approved December twenty-third,
nineteen hundred and thirteen, known as the federal
Reserve Act, be amended and rcenacted by striking out
that part of such section which reads as follows:
"Directors of class A and class B shall be chosen in the
| following manner:
4
'The chairman of the board of directors of the Federal
Reserve Bank of the district in which the bank is situated
or, pending the appointment of such chairman, the organization committee shall classify the member banks of
DOMINICAN REPUBLIC.
the district into three general groups or divisions. Each
The corporation in 1917 purchased the private banking group shall contain as nearly as may be one-third of the
number of the member banks of the district,
business in Santo Domingo of Mr. S. Michelena. With aggregate
and shall consist, a,| nearly as may be, of banks of similar
the principal office in Santo Domingo City, there are capitalization. The groups shall be designated by numbranches in the cities of San Pedro de Macoris, Puerto ber by the chairman.
"At a regularly called meeting of the board of directors
Plata, and Santiago. Mr. Michelena, who remains with
each member bank in the district it shall elect by ballot
the corporation as one of its managers, has lived in Santo of
a district reserve elector and shall certify his name to the
Domingo for 25 years. With his long experience as the chairman of the board of directors of the Federal Reserve
leading private banker, the Santo Domingo offices of the Bank of the district. The chairman shall make lists of the
corporation are enabled' to do much in connection with, district reserve electors thus named by banks in each of the
three groups and shall transmit one list to each
the finance of growing Dominican crops, the chief of which aforesaid
elector in each group.
are sugar, tobacco, and cacao. The several branches also
"Each member bank shall be permitted to nominate to
afford every facility in connection with the import and i the chairman one candidate for director of class A and
one candidate for director of Class B. The candidates so
export trade of the country.
nominated shall be listed by the chairman, indicating by
whom nominated, and a copy of said list shall, within
GREAT BRITAIN.
fifteen, days after its completion, be furnished by the
The London office of the corporation was opened on chairman to each elector.
"Every director shall, within fifteen days after the reApril 15, 1902. It is located at 36 Bishopsgate, E. C, ceipt
of the said list, certify to the chairman his first,
and forms an important part of the banking mechanism second, and other choices of a director of class A. and
of the corporation. Through it pass all the sterling bills class B, respectively, upon a preferential ballot, on a
purchased by the head office and various branches, and by form furnished by the chairman of the board of directors
of the Federal Reserve Bank of the district. Each elector
it are made all financial arrangements in connection with shall make a cross opposite the name of the first, second,
their discount or collection. The London office also and other choices for a director of class A and for a director
keeps in close touch with the silver markets, upon which of class B, but shall not vote more than one choice for any
depend to a large extent fluctuations in the Eastern ex- one candidate," and by substituting therefor the following:
of class"A and class B shall be chosen in
changes. At the same time it keeps branches informed j the"Directors
following manner:
regarding the trend of money discounts. It is likewise a
"The Federal Reserve Board shall classify the in ember
source of a vast amount of credit information regarding banks of the district into three general groups or divisions,
European firms engaged in foreign trade the world over. ' designating each group by nitmher. Each group shall consist as nearly as may be of banks of similar capitalization.
It is at present the designated depositary of the War, ; Each member bank shall be permitted to nominate to the
Navy, and State Departments of the United States Gov- \ chairman of the board of directors of the Federal Reserve
eminent. It is in a position to take care of the require- Bank of the district one candidate for director of class A
ments of American firms having offices in or transacting and one candidate for director of class B. The candidates
so nominated shall be listed by the chairman, indicating by
busiri.es with the United Kingdom.
whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each member bank. Each member bank by a
resolution of the board or by an amendment to its by-laws
Amendments to the Federal Reserve Act.
shall authorize its president, cashier, or some other officer
to cast the vote of the member bank in the elections of
The bill embodying amendments to the class A and class B directors.
"Within fifteen days after receipt of the list of candiFederal Reserve Act was signed by the Presi- dates
the duly authorized officer of a member bank shall
dent on September 26. The text of the bill certify to the chairman his first, second, and other choices
follows:
for director of class A and class B, respectively, upon a
948
FEDERAL KESEEVE BULLETIN".
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 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 more than one choice for any one candidate. No
ofncer or director of a member bank shall be eligible to
serve as a class A director unless nominated and elected
by banks which are members of the same group as the
member bank of which he is an officer or director.
Any person who is an oflicer or director of more than
one member bank shall not be eligible for nomination as a
class A director except by banks in the same group as the
bank having.the largest aggregate resources of any of those
of which such person is an oflicer or director.
SEC. 2. That section eleven (k) of the Federal Reserve
Act be amended and reenacted to read as follows:
" (k) To grant by special permit to national banks applying therefor, when not in contravention o| State or
local law, the right to act as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates,
assignee, receiver, committee of estates1 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 ail of the powers
enumerated in this subsection shall segregate all assets
held in any fiduciary capacity from the general assets of
the bank arid shall keep a separate set of books and records
showing in proper detail all transactions engaged in under
authorty 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
ia 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 make
similar deposits and securities so deposited shall be held
for the protection of private or court trusts, as provided by
the State lav/.
"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.
OCTOBER 1,1918.
"'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 this section shall take 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 banking 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 such loan, or to
whom such loan is made, may be fined not more than
§5,000, or imprisoned not more than live years, or may be
both fined and imprisoned, in the discretion of the court.
"In 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, whether or
not such capital and surplus is sufficient under the circumstances of the case, the needs of the community to be
served, and any other facts and circumstances that seem,
to it proper, and may grant or refuse the application
accordingly: Provided, That no permit shall be issued to
any national banking association having a capital and surplus less than the capital and surplus required by State
law of a State banks, trust companies, and corporations
exercising such powers."
SEC. 3. That the ninth paragraph of section sixteen of
the Federal Reserve Act, as amended by the acts approved
September seventh, nineteen hundred and sixteen, and
June twenty-first, nineteen hundred and seventeen, be
further amended and reenacted so as to read as follows:
"In. order to furnish suitable notes for circulation as
Federal reserve notes, the Comptroller of the Currency
shall, under the direction of the Secretary of the Treasury,
cause plates and dies to be engraved in the best manner to
guard against counterfeits and fraudulent alterations, and
shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, §10, 820.
$50, $100, S500, $1,000, $5,000, $10,000 as may be required
to supply the Federal Reserve Banks. Such notes shall
be in form and tenor as directed by the Secretary of the
Treasury under the provisions of this act and shall bear
the distinctive numbers of the several Federal Reserve
Banks through which they are issued."
SEC. 4. That paragraphs (b) and (c) of section nineteen of the Federal reserve Act, as amended by the acts
approved August fifteenth, nineteen hundred and fourteen, and June twenty-first, nineteen hundred and seventeen, be further amended and reenacted to read as follows:
"(b) If in a reserve city, as now or hereafter defined,
it shall hold and maintain with the Federal \ eserve Bank
of its district an actual net balance equal to not less than
ten per centum of the aggregate amount of its demand
deposits and three i>er centum of its time deposits: Provided, however, That if located in the outlying districts of a
reserve city or in territory added to such a city by the
extension of its corporate charter, it may, upon the affirmative vote of five members of the Federal "reserve Board,
hold and maintain the reserve balances specified in paragraph (a) hereof.
"(c) If in a central reserve city, as now or hereafter
defined, it shall hold and maintain with the Federal Keserve Bank of its district an actual net balance equal to
not less than thirteen per centum of the aggregate amount
of its demand deposits and three j>er centum of its time
deposits: Provided,, however. That if located in the outlying districts of a central reserve city or in territory
added to such city by the extension of its corporate charter,
OCTOBER 1,
1918.
FEDSKAL RESERVE BULLETIN.
949
it may, upon the affirmative vote of five members of the
"Any member bank may sell securities or other propFederal I'eserve Board, hold and maintain the reserve erty to any of its directors, or to a firm of which any of its
balances specified in paragraphs (a) or (b) thereof."
directors is a member, in the regular course of business on
SEC. 5. That section twenty-two of the Federal Peserve terms not more favorable to such director or firm than those
act, as amended by the act of June twenty-first, nineteen offered to others, or when such sale is authorized by a
hundred and seventeen, be further amended and re- majority of the board of directors of a member bank to be
evidenced by their affirmative vote or written assent: Proenacted to read as follows:
"(a) No member bank and no officer, director, or em- vided, however, That nothing in this subsection contained
ployee thereof shall hereafter make any loan or grant any shall be construed as authorizing member banks to purgratuity /to any bank examiner. Any bark officer, direc- chased sell securities or other property which such banks
tor, or employee violating this provision shall be deemed are not otherwise authorized by law to purchase or sell.
" (e) No member bank shall pay to any director, officer,
guilty of a misdemeanor and shall be imprisoned not exceeding one year or fined not more than So,000, or both, attorney, or employee a greater rate of interest on the deand may be fined a further sum equal to the money so posits of such director, officer, attorney, or employee than
that paid to other depositors on similar deposits with such
loaned or gratuity given.
"Any examiner accepting a loan or gratuity from any member bank.
" (f) If the directors or officers of any member bank shall
bank examined by him or from an officer, director, or
employee thereof, shall be deemed guilty of a misde- knowingly violate or permit any of the agents, officers, or
meanor and shall be imprisoned one year or fined not more directors of any member bank to vi olate any of the provisthan 85,000, or both, and may be fined a further sum equal ions of this section or regulations of the board made"under
to the money so loaned or gratuity given., and shall forever authority thereof, every director and officer participating
thereafter be disqualified from holding office as a national in or assenting to such violation shall be held liable in his
personal and individual capacity for ail damages which
bank examiner.
"(b) No national bank examiner shall perform any the member bank, its shareholders, or any other persons
other service for compensation while holding such office shall have sustained in consequence of such violation.''
for any bank or officer, director, or employee thereof.
SEC. 7. That section fifty-two hundred and eight of the
"No examiner, public or private, shall disclose the . Revised Statutes as amended by the act of July twelfth,
names of borrowers or the collateral for loans of a member ; eighteen hundred and eighty-two, and section fifty-two
bank to other than the proper officers of such bank without I hundred and nine of the Revised Statutes as amended by
first having obtained the express permission in writing | the acts of April sixth, eighteen hundred and sixty-nine,
from the Comptroller of the Currency, or from the board of | and July eighth, eighteen hundred and seventy, be, and
directors of such, bank, except when ordered to do so by a ! the same are hereby, amended and reenacted to read as
court of competent jurisdiction, or by direction of the |, follows:
Congress of the United States, or of either House thereof, I "SEC. 5208. It shall be unlawful for any officer, director,
or any committee of Congress or of either House duly | agent, or employee of any Federal Reserve Bank, or of any
authorized. Any bank examiner violating the provisions | member bank as defined in the act of December twentvof this subsection shall be imprisoned not more than one | third, nineteen hundred and thirteen, known as the Fed! eral Reserve Act, to certify any check drawn upon such
year or fined not more than S5,000, or both.
"(c) Except as herein provided, any officer, director, | Federal Reserve Bank or member bank unless the person,
employee, or attorney of a member bank who stipulates for j firm, or corporation drawing the check has on deposit with
or receives or consents or agrees to receive any fee, commis- | such Federal Reserve Bank or member bank, at the times
sion, gift, or thing of value from any person, firm, or corpo- ! such check is certified, an amount of money not less than
ration for procuring or endeavoring to procure for such per- the amount specified in such check. Any check so certison, firm, or corporation, or for any other person, firm, or fied by a duly authorized officer, director, agent, or emcorporation, any loan from or the purchase or discount of ployee shall be a good and valid obligation against such
any paper, note, draft, check, or bill of exchange by such Federal Reserve Bank or member bank; but the act of any
member bank shall bo deemed guilty of a misdemeanor officer, director, agent, or employyee of any such Federal
and shall be imprisoned not more than one year or fined not Reserve Bank or member bank in violation of this section
shall, in the discretion of the Federal Reserve Board, submore than So,000, or both.
"(d) Any .member bank may contract for, or purchase ject such Federal Reserve Bank to the penalties imposed
from, any of its directors or from any firm, of which any of by section eleven, subsection (h), of the Federal Reserve
its directors is a member, any securities or other property, Act, and shall subject such member bank if a national
when (and not otherwise) such purchase is made in the bank to 1he liabilities and proceedings on the part of the
regular course of business upon terms not less favorable to Comptroller of the Currency provided for in section fiftythe bank than those offered to others, or when such pur- two hundred and thirty-lour, Revised Statutes, and shall,
chase is authorized by a majority of the board of directors in the discretion of the Federal Reserve Board, subject
any other member bank to the penalties imposed by secnot interested in the sale of such securities or property, tion
of said Federal Reserve Act for the violation of
such authority to be evidenced by the affirmative vote or any nine
provisions ol said act. Any officer, director,
written assent of such directors: Provided, however, That agent,of ortheemployee
any Federal Reserve Bank or memwhen any director, or firm of which any director is a mem- ber bank who shall of
violate the provisions of this
ber, acting for or on behalf of others, sells securities or other section, or who shallwillfully
resort to any device, or receive any
property to a member bank, the Federal Reserve Board fictitious obligation, directly
or collaterally, in order to
by regulation may, in any or all cases, require a full dis- evade the provisions thereof, or
who shall certify a check
closure to be made, on forms to be prescribed by it, of all before the amount thereof shall
have been regularly
commissions or other considerations received, and when- entered to the credit of the drawer upon
the books of the
ever such director or firm, acting in his or its own behalf, bank, shall be deemed guilty of a misdemeanor and shall,
sells securities or other property to the bank the Federal on conviction thereof in any district court of the United
Reserve Board, by regulation, may require a full dis- States, be fined not more than §5,000, or shall be imclosure of all profits realized from such sale.
83463—185
950
FEDERAL RESERVE BULLETIN.
OCTOBKK 1, 1918.
prisoned for not more than five years, or both, in the
discretion of the court.
"SEC. 5209. Any officer, director, agent, or employee
of any Federal ReserveJBank, or of any member bank as
defined in the act of December twenty-third, nineteen
hundred and thirteen, known as the Federal Reserve Act,
who embezzles, abstracts, or willfully misapplies any of
the moneys, funds, or credits of such Federal Reserve Bank
or member bank, or who, without authority from the
directors of such Federal Reserve Bank or member bank,
issues or puts in circulation any of the notes of such Federal reserve bank or member bank, or who, without such
authority, issues or puts forth any certificate of deposit,
draws any order or bill of exchange, makes any acceptance,
assigns any note, bond, draft, bill of exchange, mortgage,
judgment, or decree, or who makes any false entry in any
book, report, or statement of such Federal Reserve Bank or
member bank, with intent in any case to injure or defraud
such Federal Reserve Bank or member bank, or any other
company, body politic or corporate, or any individual person, or to deceive any officer of such Federal Reserve Bank
or member bank, or the Comptroller of the Currency, or
any agent or examiner appointed to examine the affairs of
such Federal Reserve Bank or member bank, or the Federal Reserve Board; and every receiver of a national banking association who, with like intent to defraud or injure,
embezzles, abstracts, purloins, or willfully misapplies any
of the moneys, funds, or assets of his trust, and every person who, with like intent, aids or abets any officer, director,
agent, employee, or receiver in any violation of this section shall be deemed guilty of a misdemeanor, and upon
conviction thereof in any district court of the United
States shall be fined not more than $5,000 or shall be
imprisoned for not more than five years, or both, in the
discretion of the court.
14
Any Federal Reserve Agent, or any agent or employee
of such Federal Reserve Agent, or of the Federal Reserve
Board, who embezzles, abstracts, or willfully misapplies
any moneys, funds, or securities intrusted to his care, or
without complying with or in violation of the provisions
of the Federal Reserve Act, issues or puts in circulation any
Federal Reserve notes shall be guilty of a misdemeanor
and upon conviction in any district court of the United
States shall be fined not more than $5,000 or imprisoned
for not more than five years, or both, in the discretion of
the court.'*
Approved September 26, 1918.
old of either sex. It will also make loans on corresponding classes of sheep and goats.
Its object in making advances on stock cattle is to preserve breeding herds, so that an adequate supply of meat
may be assured for the future. As the breeding herds in
greatest danger are those in the drought-stricken district
in the Southwest, it was thought that prompt and adequate relief may be given by encouraging cattlemen in
localities where conditions are good, to buy stock cattle
in the drought-stricken area and move them to other
localities where they have adequate range, water, and
feed, and proper facilities for taking care of them.
££j
To aid in accomplishing this result, and to supplement
the facilities of banks and cattle loan companies the War
Finance Corporation has created cattle loan agencies in
Kansas City, Mo., and Dallas, Tex., through which it
will make loans, in proper cases, preferably to banks and
bankers under section 7, and in exceptional cases to cattle
loan companies under section 9 and direct to the owners
of stock cattle.
If a stock raiser has been unable to procure a loan from
his bank or cattle loan company, and can give ample
security for the amount needed, he should apply to the
cattle foan agency of the War Finance Corporation, either
at Kansas City, Mo., or Dallas, Tex.
Applicants residing in, or whose principal place of
business is in the Atlanta, Dallas, or Richmond Federal
Reserve districts should make application to the cattle
loan agency of the War Finance Corporation at Dallas,
Tex. Those residing in, or whose principal place o
business is in Kansas City, St. Louis, San Francisco, and
Minneapolis Federal Reserve districts should make
application to the cattle loan agency of the War Finance
Corporation at Kansas City, Mo. Those residing in, or
whose principal place of business is in the Chicago, Cleveland, Philadelphia, New York, and Boston Federal
Reserve districts should apply direct to the War Finance
Corporation, Washington, D. 0.
The security offered for all cattle loans must be worth
at least 25 per cent more than the amount borrowed, and
the borrower must agree to give additional security at
any time upon demand of the War Finance Corporation.
on live stock. All banks have been advised by the
Federal Reserve Bank of their respective districts how
this assistance may be obtained.
As the banks, trust companies, and cattle loan companies
throughout the country have ample funds to loan for short
periods of time on "feeder" cattle, the assistance of the
War Finance Corporation is not needed to carry this class
of cattle, and it will consider only loans on stock cattle,
meaning cows, bulls, calves, and cattle under two years
Directors of Class A and Class B shall be chosen in the
following manner:
The Federal Reserve Board shall classify the member
banks of the district into three general groups or divisions,
designating each group by number. Each group shall
consist as nearly as may be of banks of similar capitalization. Each member bank shall be permitted to nominate
to the chairman of the board of directors of the Federal
Reserve Bank of the district one candidate for director of
Election of Directors.
In connection with the coming election of
Class A and B directors of Federal Reserve
Banks, the following letter was sent to Federal
Cattle Loan Agencies.
Reserve Agents under date of September 19:
The War _Finance Corporation on September
House bill No. 11283, generally known as
7 issued the following circular:
the Phelan bill, has passed both Houses of
INFORMATION FOR BORROWERS.
Congress and now awaits the signature of the
The corporation considers that the business of raising- President. Section 4 of the Federal Reserve
live stock is contributory to the prosecution of the war, Act, which relates to the election of directors
and, in proper cases, is willing to give financial assistance I of Class A and Class B, amended by this bill,
where needed, preferably by lending to banks, trust companies, and other financial institutions which make loans I read as follows:
OCTOKEIt 1. 1918.
FEDERAL RESERVE BULLETIN.
951
the election of directors and in the qualification of candidates.
Each bank in your district should be requested either to amend its by-laws so as to
authorize one of its officers to cast the vote of
the bank in the election of Class A and Class B
directors, or to pass a resolution to this effect,
and to file with you a copy of the amendment
to its by-laws or of the resolution adopted.
As soon as the Federal Reserve Board has
classified the banks in your district arrangements should be made to hold an election of
directors to succeed those whose terms expireon December 31, 1918,
The Board will, therefore, be glad to have
your suggestions as to grouping of banks in
No officer or director of a member bank shall your district as early as possiblebe eligible to serve as a Class A director unless
nominated and elected by banks which are
members of the same group as the member
Treasury Certificates of fadebtediaessbank of which he is an officer or director.
The following statements were issued by the
Any person who is an officer or director of
more than one member bank shall not be Treasury Department under date of September
eligible for nomination as a Class A director 12 and 13:
SEPTEMBER 12, 1918.
except by banks in the same group as the bank
having the largest aggregate resources of any Secretary McAdoo to-day announced that the fifth
biweekly issue of United States Treasury certificates of
of those of which such person is an officer or indebtedness
in anticipation of the fourth Liberty loan
director.
was oversubscribed §144.529.500. The Secretary "stated
It will bo observed that the Federal Reserve that this is a most gratifying result, the oversubscription
Board is now required to classify the member being the largest ever recorded on any issue of United
Treasury certificates of indebtedness.
banks of each district into three groups or States
Ten of the twelve Federal Reserve districts oversubdivisions as a preliminary to the election of scribed their quotas. The total subscriptions aggregate
directors. The Board will be glad to have 8644,529,500. ^ The aggregate of subscriptions for certifisuggestions from you as to the proper classifi- cates in anticipation of the fourth Liberty loan to date is
$3,404,071,000.
cation of banks in your district.
It will also be observed that under this
1B.subscription.
Federal Reserve Bank.
Quota.
amendment each member* bank is required
by resolution of its Board, or by amendment United States Treasury.
S3,000,000
to its by-laws, to authorize its president, Boston
843.300,000
57,424,000
New
York
160,600,000
210,0G8,500
cashier, or some other officer to cast the vote Philadelphia
35,300,000
42,061,000
45,300,090
74,088,000
of the member bank in the election of Class A Cleveland
Richmond
17,300,000
18,957,000
and Class B directors instead of having a dis- Atlanta
14,000,000
21,242,000
Chicago.
70,000,000
88,279,000
trict reserve elector perform this service.
St. Louis
! 20,000,000
25,501,500
17,300,000
17,200,000
This amendment also prohibits any officer Minneapolis.
Kansas City...
20,000,000
25,913,000
or director of a member bank from serving as a Dallas
12,000,000
11,295', 500
49,500,000
35,300,000
Class A director unless nominated and elected San Francisco.
Total
500,000, Q00
644.529,500
by banks which are members of the same
group as the member bank of which he is an
SEPTEMBER 13, 1918.
officer or director. Any person who is an
officer or director of more than one member Secretary McAdoo, under the authority of the act apSeptember 24, 1917, as amended by the act apbank is not eligible for nomination as a Class A proved
April 4, 1918, offers for subscription, at par and
director except by banks in the same group proved
accrued interest, through the Federal Reserve Banks,
as the bank having the largest aggregate $600,000,000 or more Treasury certificates of indebtedness,
resources of any of those of which such person Series IV-F, dated and bearing interest from September
17,1918, payable January ] 6,1919, with interest at the rate
is an officer or director. The attention of the of
per cent per annum. Applications will be received
member banks in your district should be called at 4-|
the Federal Reserve Banks. Subscription books will
to this change in the method of procedure for close at the close of business September 24, 1918. Certifi-
A and one candidate for director of Class B. The
candidates 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. 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 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 Glass .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 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 more than one choice for any one candidate.
952
FEDERAL EESEBVE BULLETIN.
OCTOBER 1,1918.
cates will be issued in denominations of §500, .151,000, $5,000 having been received after tabulation of the
$10,000, and $100,000. Said certificates shall be exempt, answers upon which the report is based, the
both as to principal and interest, from all taxation now or
hereafter imposed by the United States, any State, or any analysis hereinafter made is taken from 330
of the possessions of the United States, or by any local tax- banks, or between 55 and 60 per cent of the
ing authority, except (a) estate or inheritance taxes, and mutual savings banks in the United States,
(6) graduated additional income taxes, commonly known
as surtaxes, and excess profits and war profits taxes, now or with about 65 per cent of the total resources.
The data hereinafter contained are from 169
hereafter imposed by the United States upon the income
or profits of individuals, partnerships, associations, or cor- banks in New England out of 405, having 60
porations. The interest on an amount of bonds and cer- per cent of the total assets of such banks. The
tificates authorized by said act approved September 24, Eastern States, 105 banks out of a total of 196,
1917, or by said act as amended by said act approved April
4, 1918, or by the act approved July 9, 1918, the principal with more than 60 per cent of the total assets.
of which does not exceed in the aggregate S5,000, owned by Ohio is represented by 100 per cent of the total
any individual, partnership, association, or corporation, savings bank assets. California is represented
shall be exempt from the taxes provided for in clause (6) by 38 banks with about 60 per cent of total
above. Upon 10 days' public notice, given in such manner as may be determined by the Secretary of the Treasury, resources.
the certificates of this series may be redeemed as a whole at
Total present holdings of Liberty loan bonds.
par and accrued interest on or after any date, occurring
The answers permitted a calculation of the
before the maturity of such certificates, set for the payment
of the first installment of the subscription price of any percentage of Liberty bond holdings to total
bonds offered for subscription by the United States after assets of the banks.
the offering and before the maturity of such certificates.
Per cent.
The certificates of this series, whether or not called for re4. 9
demption, will be accepted at par, with adjustment of ac- Maine
Hampshire
3. 9
crued interest, if tendered on such installment date in New
3. 8
payment on the subscription price then payable of any Vermont
3.4
such bonds subscribed for by and allotted to holders of Massachusetts
Island
1. 4
such certificates. The certificates of this series do not bear Rhode
4. 5
the circulation privilege and will not be accepted in pay- Connecticut
ment of taxes. The right is reserved to reject any subNew England States
3. 7
scription and to allot less than the amount of certificates
applied for and to close the subscriptions at any time with- New York
3.8
out notice. Payment at par and accrued interest for cer- New Jersey
3. 4
tificates allotted must be made en and after September Delaware/.
2. 5
17, 1918, and on or before September 24, 1918. After Pennsylvania
2. 4
allotment and upon payment, Federal Reserve Banks Maryland
3. 8
will issue interim receipts pending delivery of the definitive certificates. Qualified depositaries will be permitted
Eastern States
3. 7
to make payment by credit for certificates allotted to them
for themselves and their customers up to an amount for Ohio, representing Middle West
1. 4
which each shall have qualified in excess of existing de2. 9
posits when so notified by Federal Reserve Banks. As fis- | California
cal agents of the United. States, Federal Reserve Banks j Partial-payment subscriptions to first, second,
are authorized and requested to receive subscriptions and I and third Liberty loans, still unpaid.
to make allotment in full in the order of the receipt of
applications up to amounts specified in the respective i This answer permitted a calculation of the
districts.
percentage of Liberty-bond subscriptions on the
Condition of Savings Institutions In the United
States.
The following abridged statement presents
some important facts relative to the condition
of the savings banks of the country:
Since the beginning of the war it has been
the purpose of the savings bank section, American Bankers' Association, to make a semiannual analysis of the savings bank situation
as gathered from, questionnaires submitted to
all mutual savings banks, of which there are
622 in the country, and to representative stock
savings banks and trust companies, the chief
business of which is savings.
Out of 650 banks communicated with 420
answered. On account of about 90 answers
partial-payment plan remaining unpaid to the
total partial-payment subscriptions.
Maine
New Hampshire
Vermont. "
Massachusetts
Rhode Island
Connecticut
New England States
New York
New Jersey
Delaware
Pennsylvania
Maryland
Eastern States
Per cent.
11. 3
51. 7
53. 8
41
79. 4
17. 4
33.47
22. 2
35. 2
2
8. 5
39. 8
23.5
Ohio
13. 2
California
11.1
953
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
J
Approximately, what was the proportion of sub- ers acceptances as an investment. These
scribers who paid on partial-payment plan reg- objectors showed rather definitely by their
! answers that they did not appreciate the
ularly?
Percentage totals are given as follows:
Per cent.
Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
72.8
65. 2
75
71. 2
33
65. 8
:
New England States
70. 0
New York
New Jersey
Delaware /.
Pennsylvania
Maryland
71. 5
65
90
40. 7
75
Eastern States
68.4
Ohio
California
82
82
meaning of the bankers' acceptance as an
investment. Many have not bought such acceptances, and express an opinion that they
"believe in them heartily and as soon us possible shall invest in them7 liberally.77 Another
would invest in bankers acceptances, except
that Treasury certificates of indebtedness at 4J
per cent and tax exempt appeal to them more.
Several have the opinion that the rates were
unattractive. The Maine banks are inclined
to think well of the bankers' acceptance,
although some were still imbued with the old
savings-bank thought that it was "foreign to
the underlying principles governing the work
of savings banks.77 Another New England
banker stated
that he had "no objection to
the bankers7 acceptance, except that demand
collateral loans of Boston pay a better rate."
Purchases of Treasury certificates of indebtedness.
HOLDINGS OP IXVESTMENTS.
The larger part of the banks, of course, have
purchased certificates of indebtedness. An interesting indication is found in the probability
of a greater subscription from the savings banks
to the fourth Liberty loan than to any previous
war loan, and in some respects greater than the
combined subscriptions of the three previous
loans. The following table evidences the activity in this respect:
Maine
New Hampshire.
Vermont
Massachusetts
Rhode Island
Connecticut
Now England States .
New York
New Jersey...
Delaware
Pennsylvania.
Maryland
State.
State
RailPublic
and
| road muni- utility
i bonds. cipal bonds.
bonds.
Heal
estate
mortgage
loans.
Personal
security
loans.
Other
securities.
Per ct. Per ct. Per ct. Perct. Per ct. Per ct.
Maine
j 38.2
0.8
9.7
16.8
21.3
13.2
New Hampshire
| 20.4
9.3
4.0
24.7
10.4
31.2
Vermont
i
1.6
2.1
2.2
20.2
73.9
3.4
Massachusetts
| 17.0
3.2
11.0
51.9
13.5
Rhode Island
\
Connecticut
| 35.6
15.4
39.3
1.7
1.9
7.0
Now York State
I 16.1
.1
4.9
23.0
55.9
New York City
| 16.6
2
3.9
23 7
55 6
.2
' 38.3
34.2
.1
42.5
4.7
Per cent of Banks sub- Banks not New Jersey
32.8
7.2
.2
3.6
12.6
43.6
sub! Delaware.*
total
scribing.
57.fi
2.1
.1
4.7
24.8
10.7
scribing. ! Pennsylvania
assets.
55.8
Maryland
5.3
12.6
It. 5
14.8
i District of Columbia.
8.0
.2
6.8
60.5
24.5
2.8
California
13.4
2.3
4.9
57.6
19.0
6.6
5.5
3.8
3.1
1.9
ANALYSIS OF PURCHASES OF LIBERTY BONDS BY
2.5
3.2
4.7
5.3
11.3
BANKERS7 ACCEPTANCES.
VARIOUS BANKS.
132
2.8
9.7
4.6
10.5
16.3
Eastern States.
Ohio
California.
I;
90
In order to investigate the variation of holdings of Liberty bonds by different groups of
banks, the statistical data as contained in the
individual questionnaires were divided into five
main groups, as follows:
1.
2.
3.
4.
5.
Banks with assets in excess of 880,000,000.
Banks with assets from $10,000,000 to $80,000,000.
Banks with assets from $5,000,000 to $10,000,000.
Banks with assets from $2,000,000 to $5,000,000.
Banks with assets below $2,000,000.
Only 15 banks out of a total of 333 hold
Expressing the holdings of Liberty bonds in
bankers' acceptances—6 in Massachusetts, 4 in
Connecticut, 3 in New York, and 2 in Califor- percentages of total assets, there is obtained
nia. Only 8 banks had objections to the bank- the following table for various parts of the
954
FEDERAL RESERVE BULLETIN.
OCTOKKX 1, 1018.
country (class 1 refers to banks with assets in ; There seems to be a well-defined movement
excess'of $80,000,000, and so on):
i both in New York and Massachusetts, while
I the figures from Maine and New Hampshire
I show" a rather erratic movement. For New York
j
New Jersey, I
! there is a very marked clustering in the interval
Ponnsyl- !
Maine,
vania, Dela- j
Cali- i between 2 and 3, while the most important
and
Massa- Connec- ware, Mary-j New
Now chusetts. ticut.
land, and j York. fornia. ! group in Massachusetts falls in the interval
HampDistrict of i
shire.
; between 3 and 4. On the other hand, 10.5 per
Columbia. I
i cent of the New York figures fall above a perPer cent Per cent Per cent. Percent. [Per cent. \ Per cent \ centage holding of 6, while the corresponding
2.70
2.63 I
Class 1
3.05 ! figure for Massachusetts is 3.7 per cent only.
3.90
4.15 j
3.58
Class 2
3.20
5.46
6.92 i The Central Atlantic States
5.43
6. SI i
(Pennsylvania,
Class 3
4.07
3.51
4.90
3.30 |
5.91 |
4.44
Class 4 . . . .
3.65
3.93
3.99
4.94 I Maryland, New Jersey, Delaware, and the
4.83 i
5.93
Class 5
3.35
3.52
1.89
i District of Columbia) show a movement similar
to New York, except for an exceptionally high
From this table it appears that the average- frequency of percentage holdings above 8 per
size banks with assets between $5,000,000 and cent.
$10,000,000 have relatively been the heaviest
iurchasers of bonds, except in the States of
British Bank Amalgamations.
fame and New Hampshire, where the largest
banks have led in the purchasing of bonds.
In view of the interest generally felt by
Massachusetts seems as a whole to have purchased a relatively lower share of Liberty American bankers in the development of
bonds through its savings banks than the other British bank amalgamations which have been
States, while New York relatively holds the in progress during the past year, the following
highest position. The reports available from report of a special committee appointed by
other States are too few in number to possess the British Government, which completed its
work not long ago, is reprinted as a matter of
any significance.
While the above figures give the summary information:
result by various localities and States as a j To the Lords Commissioners of Tils Majesty's Treasury:
whole, still more pronounced variations are j 1. We, the undersigned committee, appointed by
shown by analyzing; the returns for individual | treasury minute of the 11th March last, beg to submit
banks. For instance, in the State of New York our report to your lordships.
We have held eight meetings, and have examined
it appears that among 72 savings banks, with the2. following
witnesses, viz: (List of witnesses omitted.)
almost $1,000,000,000 in assets, the percentage We have also received a number of communications in
holdings of Liberty bonds to total assets varied writing from gentlemen in various parts of the country,
in response to a notice which we inserted in the press
from 0.91 per cent to 25.46 per cent.
representations from the public generally.
A fairly good idea of the variation of the inviting
Unfortunately, time did not permit of our taking oral
percentage holdings to total assets may, how- evidence from more than a limited number of witnesses.
ever, be secured from the following frequency 3. Bank absorptions and amalgamations are, of course,
distributions relating to New York, Massa- no new phenomenon in this country. About 300 instances
occurred in the past, more than half of which have
chusetts, Maine, New Hampshire, Connecticut, have
taken place in the last 50 years. Jn one or two cases
and the Central Atlantic States:
arrangements made provisionally for amalgamations have
S
Percentage holdings of Liberty bonds to assets.
c-i
1-2
2-3
3-4. .
4-5
5-6
6-7
7-8
8-9
9-10
10-11
11-12
12 and over
New
York.
Maine
Massa- and New Central
chusetts. Hamp- Atlantic
States.
shire.
Per cent. \ Per
8.9 i
10.6
34.7
18.7
12.9
3.7
4.4
1.2
.9
3.0
.8
.2
cent. Per cent. Per cent.
8.3
15.3
.7
12.9
19.6
16.3
19.6
48.0
10.5
28.5
10.6
12.7
16.7
5.8
3.0
12.3
1.4
13.1
1.6
1.2
25.8
1.0
2.6
.6
8.0
.4
5.4
been defeated by the opposition of local customers of the
bank which it was proposed to absorb; but, on the whole,
banking policy has gradually but steadily pursued the
path of consolidation and absorption and, until recently,
the amalgamations affected have, generally speaking, been
carried through without stirring up serious opposition or
arousing public interest. As a result, the number of private
banks has fallen from 37 to 6 since 1891, and the number of
English joint-stock banks from 108 to 34 during the same
period.
4. Several recent amalgamations, however, have undoubtedly provoked an unusual amount of interest, and
have been seriously criticized in certain quarters. This
change in public opinion appears to be due mainly to
the fact that amalgamations have changed their type
and consist no longer in the absorption of a local bank by
a larger and more widely spread joint-stock bank, but in
the union of two joint-stock banks, both already possessing
large funds and branches spread over a wide area. These
two types of amalgamation differ very materially from
one another, and arguments used to justify the former
type do not necessarily apply to the latter.
THE OLD TYPE OF AMALGAMATION—ABSORPTION OF LOCAL
BANKS BY A LARGER AND MORE WIDELY SPREAD JOINT
STOCK BANK.
5. As modern amalgamations are mainly of the new
type, it is unnecessary for us to elaborate the various
arguments used in connection with amalgamations of the
older type. Very briefly, what the arguments amount to
is that both the local (or more or less local) bank and the
larger widely spread bank secure to their customers certain advantages of a different kind, but that, like other
institutions, "each has also the defects of its qualities.
Some districts—notably Lancashire and Yorkshire—have
clung to their local banks. But in most instances amalgamation schemes have been carried out without serious
difficulty, and if material hardship had resulted to the
trade generally in the districts affected, there would no
doubt have been greater local opposition to subesquent
absorption schemes, and new local banks would even
have "been opened.
THE NSW TYPE OP AMALGAMATION—UNION OF ONE LARGE
JOINT STOCK BANK WITH ANOTHER SIMILAR BANK.
6. As regards the new type of amalgamation, the main
arguments laid before us in support of the policy of amalgamation are as follows:
(a) The convenience and gain to trade secured by an exten-
sion of bank areas.—Just as the large banks of the past
secured certain advantages to trade by collecting deposits
from parts of the country where they were not required,
and placing them at the disposal of other parts which
stood in need of advances, so it is claimed that*this process
can be carried still further with advantage by amalgamating large banks with one another.
This is no doubt true, though, of course, the degree to
which an extension of area is in fact secured by amalgamating banks differs considerably in each case. The following table is an analysis of two recent amalgamations
and one proposed amalgamation in this respect:
TABLE I.—Numbers in 1918 (in round figures).
Provincial
branches
(excluding
subLondon branches Foreign
branches. and includ- held.
ing onlv
one branch
in each
place).
f
(i) National Provincial
Union of London and Smith's
(&) London County and Westminster
(c) London City and Midland
London Joint Stock
26
31
251
73
107
41
419
109
110
35
180
160
the first bank in each case secured the following number of new places
out of the total number taken over, viz. (a) 51 (out of 78), (&) 152 (out of
160), (c) 54 (oat of 109). In cases (a) and (c) very few of the new Places
secured were in towns of importance. The 55' overlapping places in
case (c) include such towns as Barnsley, Barrow. Darlington,"Doneaster,
Gatoshead, Grimsby, Hull, Leeds, MiddlesborbuRh, Newcastle, Portsmouth, Sheffield, West Hartlepool, and York; and in case (a) the 21
overlapping places included Bath, Birmingham, Bournemouth, Bradford, Brighton, Bristol, Derby, Donoaster, Exeter, Grimsby, Huddorsfield, Hull, Leeds, Lincoln, Nottingham, Plymouth, Sheffield, Southampton, and York.
it should be added that in case (c), in addition to the branches shown
above, the Joint Stock Hank have 106 subbranches in small places
where they lia"C no branch, and that in onlv about nine of those places
are the City and Midland represented. Similarly, the Union of London
and Smith's had a number of subbranches in small places, at most of
which the National Provincial wore not represented.
There must come a point when the policy of substituting one large bank for two will usually mean a, very small
extension of area, if any, and some reduction of competition. That point has already* been reached in London,
and is being approached in a few of the largest towns where
most of the important competing banks are already
established.
It should be added that if both the amalgamating units
have, before amalgamation, lent up to their full resources,
home trade as a whole can not gain any increase in accommodation as a result of the amalgamation. Except at the
expense of smaller traders, large trade combines could not.
obtain larger advances in all from the combined resources
of the amalgamation than they obtained from the separate
banks before.
This is an important point. Various Government committees have drawn special attention to the question of
banking facilities after the war, and it is very desirable
that all possible steps should be taken to adapt the banking interest to the new position which will then arise.
The point, however, with regard to the size of banks is one
of degree only, and it is a question whether the continued
practice on the part of exceptionally large firms of resorting to two or more banks, instead of one, for advances
would not suffice to meet all their needs, and whether the
existing large banks are not in fact large enough to meet
the requirements of the immediate future, at any rate if
supplemented, as far as may be necessary, by combinations for special purposes on the lines of German "Konsortiums" or otherwise. We have received no conclusive
evidence on this point. But the following table shows,
at any rate, that the resources of our leading banks were
very substantial even before the recent amalgamations:
TABLE II.—Paid-up capital, reserve, and deposits of the
following hanks as shown in their balance sheets of Slst
December, 1913, and Slst December, 1917.
31st December, 1.913.
London City and Midland
London County and Westminister
Parr's
31 National Provincial
,
150 Union of London and Smith's
400 Lloyds
35 Barclays
850 London Joint Stock
70
NOTE.—in London an amalgamation can secure no material extension
of area, and usually means a net reduction in the number of competing
banks in the city, as all other important competitors are already represented there and can not, therefore, as is sometimes the case in othor
districts, add a new element of competition to counterbalance the amalgamation. Should no such new element arise, there will be a similar
net reduction in the number of competing banks in nearly all the most
important towns outside London at which the second of the two banks
was represented in cases (a) and (c) above, as the first bank in each case
was established at most of them already. As regards the provinces
generally, excluding subbranches and subagencies, in the above cases
955
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
31st December, 1917.
£101,882,230
\ 143,000,000
£230,033,434
228,000,000
} 118,804,590
98,720,663
166,940,207
41,678,237
185,223,175
183.078,718
135;675,971
62,274,280
1 June, 1914.
The above argument with regard to post-war trade can
of course only be used with some caution as regards foreign
trade, in view of the special dependence of English banks
on deposits withdrawable at call or on short notice. This
is especially the case as regards long-term advances for
such trade, "to which special reference is sometimes made.
The following figures, taken from the "Economist," show
956
FEDERAL RESERVE BULLETIN.
OCTOBKIS 1, 1 9 1 8 .
how comparatively small are the capital and reserves of for traders, and particularly for large traders, than small
English joint stock banks:
banks because, with their larger resources, they can
safely make individual advances on a more generous
scale. And it is argued that banks must grow now to
TABLE III.
keep pace with the growth in size of business houses
generally, and to enable them to deal with the demands
Paid-up
of after-the-war trade both at home and abroad.
Ratio.
capital and Deposits.
(b) Dangers of reduced competition.—Although, in the
reserves.
past, we believe that amalgamations have not, in most
instances, led to a reduction of bank competition, yet, as
Million £. Million £. Per cent.
we have pointed out in paragraph 6 (a) above, in London
68
18 (and possibly before long in certain large towns) amalga3G9
1890
1895
69
15
450
79
13 mations between large joint stock banks'must now usually
1900
. . .
- .
587
1905
82
13 mean a net reduction in the number of competing banks.
G28
81
721
1.1 It is true that this reduction is only slight in each case, and
1910
1915
993
82
S
1917
1,365
81
0 that there still remain at present a fair number of competing banks. But we have received representations
from certain municipal corporations to the effect that
7. We have endeavored to review impartially the banks vary very much in their willingness to allow reasonarguments which have been put forward as justifying the able overdraft facilities to corporations, and that sufficient
necessity in the public interest—quite apart from questions money, and cheap enough money, has only been obtained
of profit to shareholders—of bringing about the new type hitherto by resorting to different banks; the number of
of bank amalgamation. There is undoubtedly much resolutions have been forwarded to us by corporations
weight in these arguments as far as they go. And even protesting against further amalgamations, and suggesting
if the absolute necessity of large new amalgamations is that it is not in the national interest that large funds benot clearly proved, yet the absence of proof of the public longing to the public should be in the hands of a few
necessity for business reorganizations is* not, in itself, any companies.
Strong representations have, on similar grounds, been
reason for objecting to them, and it is a serious step at
any time to interfere with the natural developments of made to us on behalf of the stock exchange and the money
trade. Before, therefore, considering any restrictive pro- market. It is claimed that the world-wide fame of the
posals, we endeavored sto ascertain what is the real basis London market before the war was due to the freedom with
of the fears—often vaguely felt, and vaguely expressed, which London bills could be negotiated, owing to the ease
which have undoubtedly been aroused by recent amalga- with which discount houses obtained ample funds from a
mation schemes. The' main grounds for objecting to wide number of banks, and that the fewer the lending
further amalgamations appear to be as follows:
constituents in the discount market the less flexible is
(a) Writing down of bank capital.—The proportion of the market and the less fine the rates. It is added that the
capital to deposits is now so small in the case of English number of members in the clearing house is already becomjoint stock banks, even excluding the temporary war ing very small, and that any further decrease in the numincrease in the amount of deposits, that any further ber of its constituent members, or any greatly preponderant
shrinkage of bank capital is clearly undesirable, in the power on the part of particular members, might impair
interest of depositors, if it can be avoided. Attention has confidence in its smooth working and raise apprehensions
been drawn to the fact that amalgamation schemes usually in the market. Moreover, it is pointed out that a reducmean a reduction in the total paid-up capital and uncalled tion in the number of important banka must mean, and
liability of the two preamalgamation units. This has has already meant, a reduction in the number of first-class
frequently been the case in the past, and it has also been acceptors of bills, and that if this reduction proceeded
a feature "of recent amalgamations and proposed amalga- very far it would become a question whether the Bank of
mations. The amalgamation of the National Provincial England would not have to place a limit on the amount
Bank of England, Ltd., with the Union of London and of acceptances which they would take from any particular
Smith's Bank, Ltd., resulted in a reduction of over bank doing a large accepting business, and whether conti£1,000,000, or 16 per cent, in the total paid-up capital, nental buyers would not limit the number of bills taken
and oi over £9,000,000, or over 48 per cent, in the uncalled by them.
liability of the Union shareholders. The amalgamation of
(c) The danger of monopoly.—It has been represented to
Parrs Bank, Ltd., with the London County and West- us that there is a real danger lest one bank, by the gradual
minister Bank, Ltd., while it resulted in an addition of extension of its connections, may obtain such a position
£243,000 to the total paid-up capital, brought about a that it can attract an altogether preponderant amount of
reduction of nearly £1,770,000, or 17 per cent, in the banking business; or, alternatively, lest two banks may
uncalled liability of Parr's shareholders. The proposed approach such a position independently, and then achieve
amalgamation of the London City and Midland Bank, Ltd., it by amalgamation.
with the London Joint Stock Bank, Ltd., would effect a
Any approach to a banking combine or money trust, by
reduction of nearly £1,000,000 in the total paid-up capital, this or any other means, would undoubtedly cause great
and of over £9,000,000, or over 50 per cent, in the uncalled apprehension to all classes of the community and give rise
liability of the Joint Stock Bank shareholders. In each to a demand for nationalizing the banking trade. Such a
of these three cases, therefore, substantial benefits to combine would mean that the financial safety of the counshareholders are purchased at the expense of some of the try, and the interest of individual depositors and traders
security of the depositors. But the reduction of capital would be placed in the hands of a few individuals, who
(as opposed to the reduction of uncalled liability) resulting would naturally operate mainly in the interests of the
in two of the cases appears to be only nominal, the sum shareholders. Moreover, the position of the Bank of
written off, or some sum approximating to it, being added England—which would, it may be assumed, stand outside
to the inner reserves, at any rate at present.
of any such trust—would be seriously undermined by so
(6) The argument from size.—Numerous representations overwhelming a combination, and the bank might find it
have reached us to the effect that large banks are better extremely difficult to carry out its very important duties
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN*.
957
as supporter and regulator of the money market. Any- and of the Board of Trade should be obtained and that
such result would, in our opinion, be a grave menace to legislation should be passed requiring the two departments
the public interest.
to set up a special statutory committee to advise them, the
Further, it has been represented to us that the Govern- members of which should be nominated by the department of the day might not find it easy to adopt a course of ments from time to time, for such period as may seem desirable, and should consist of one commercial representawhich the combine, for its own reasons, disapproved.
While we believe that there is at present no idea of a tive and one financial representative, with power to apmoney trust, it appears to us not altogether impossible point an arbitrator, should they disagree.
that circumstances might produce something approaching
to it at a comparatively early date. Experience shows
that, in order to preserve an approximate equality of
resources and of competitive power, the larger English
Status of Bank Clerks Under Draft Law.
banks consider it necessary to meet each important amalgamation, sooner or later, by another. If, therefore, the
There is printed below correspondence relatargument from size, referred to in paragraph 6 (b) above,
is to prevail, it can only lead, and fairly rapidly, to the ing to ruling of the Provost Marshal General
creation of a very few preponderant combinations; and if in the matter of classification and reclassificathose combinations amalgamated, or entered into a joint
agreement as to rates and policy, etc., the money trust tion of bank clerks under the selective draft
i law:
would immediately spring to birth.
SEPTEMBER 23,1918.
8. Siich are the main arguments laid before us against
further amalgamations. Undoubtedly some of the dan- i DEAR SIR: For your information there is inclosed heregers feared are somewhat problematical and remote, and | with copy of letter from this office to the Provost Marshal
we should very much have preferred to avoid the neces- ! General submitting certain questions and photostat copy
sity for any interference by Government with the admin- I of reply received, both of which explain themselves.
istration of banking. But on a careful review of all the i From inquiries received and complaints filed with this
above considerations, we are forced to the conclusion that • office by several banks it appears that the interpretations
the possible dangers resulting from further large amalga- | given to the rulings of the office of the Provost Marshal
mations are material enough to outweigh the arguments | General by the local or district boards have not been enagainst Government interference, and that, in view of the tirely uniform and that in some instances bank employees
exceptional extent to which the interests of the whole who were originally given a deferred classification on other
community depend on banking arrangements, some grounds than that of their employment have had their
measure of Government control is essential. Our con- deferred classification withdrawn under regulations dated
clusions on this point were confirmed by the resolution May 23, 1918, and generally referred to as the "work or
passed at the recent annual meeting of the Association of fight" regulations. This, although the Provost Marshal
Chambers of Commerce, in which it was proposed that General under date of July 5, 1918, ruled that bank emsteps should be taken to guard against amalgamations, etc., ployees were not subject to reclassification under this
shown to be injurious to commercial interests.
order.
We therefore recommend that legislation be passed reThe forces of the banks have already been materially
quiring that the prior approval of the Government must depleted by the loss of registrants between the ages of 21
be obtained before any amalgamations are announced or and 31. Under the new selective draft law which extends
carried into effect. And in order that such legislation may the age limits so as to include those from 18 to 45, inclusive,
not merely have the effect of producing hidden amalga- it is of course obvious that some steps must be taken to
mations instead, we recommend that all proposals for in- secure deferred classification for those employees who are
terlocking directorates, or for agreements which in effect vitally necessary to the successful operations of the bankwould alter the status of a bank as regards its separate ing business.
entity and control, or for purchase by one bank of the
With the constantly increasing demands made upon the
shares of another bank, be also submitted for the prior banks a further material depletion of their forces would
approval of the Government before they are carried out. render it difficult for the banks to perform the services
As general principles to be acted upon at present by the required of them by the United States in the present
Government at its discretion, we would suggest that a emergency.
scheme for amalgamating or absorbing a small local bank,
While the Federal Reserve Board, of course, realizes
or any scheme of amalgamation designed to secure im- that the officers of the Federal Reserve Banks will not deportant new facilities for the public or a really consider- sire to ask for deferred classification for employees who
able and material extension of area or sphere of activity may be spared to enter the military service, it is of prime
for the larger of the two banks affected, should normally importance to our Government that its fiscal operations
be considered favorably, but that if an amalgamation conducted through the banks shall be maintained at the
scheme involves an appreciable overlap of area without highest standard of efficiency and to this end that all
securing such advantages, or would result in undue pre- necessary steps should be taken to procure a proper classidominance on the part of the larger bank, it should be fication of necessary employees in accordance with the
refused. Consideration should also, in our opinion, be letter and spirit of the selective draft act and regulations
given to the question of the clerical labor—usually very of the War Department.
large—involved by amalgamations during the war, and to
To this end it is necessary that some uniform practice
the undesirability of permitting an unusual aggregation of should be adopted by the several banks in presenting
deposits without'fully adequate capital and reserves.
claim for deferred classification and that the regulations
9. It only remains to make a suggestion to which Gov- and rulings of the War Department which specifically
ernment department or departments should be charged I affect bank employees should be called to the attention of
with the responsibility of approving or disapproving amal- j all local boards.
gamation schemes, etc., under our proposal above. On | The accompanying memorandum which suggests a
the whole, we think that the approval both of the Treasury ! method of procedure to be followed has accordingly been
83.463—18
6
958
FEDERAL RESERVE BULLETIN.
OCTOBER 1',
1918.
prepared for the information of the officers of Federal
In your letter to this office, dated July 5,1918, you state:
Reserve Banks and member banks.
" I beg to advise you that bank clerks are exempted from
Respectfully,
the operations of the regulations which provide for the
W. P. G. HARDING,
withdrawal of deferred classification and order number of
Governor.
registrants found to be idlers or engaged in nonproductive
The CHAIRMAN FEDERAL RESERVE BANK.
occupations or employments."
It is assumed that this ruling will also apply to clerks and
employees of the Federal Reserve Board, but this view
SEPTEMBER 11, 1918.
has apparently not been taken by your local board, and has
Maj. Gen. E. H. CROWDER,
, not been regularly applied by other local and district
Provost Marshal General,
boards to bank clerks and employees. In other words, it
War Department, Washington, D. C.
appears to tins office that some of the local boards have conSIR: Receipt is acknowledged of your letter of Septem- fused your regulations which relate to the original classifiber 6, addressed to the Secretary of the Federal Reserve cations of registrants with your work or fight regulation,
Board, and which relates to a ruling reported by the press which requires re classification of registrants in a'deferred
as having been made by your office to the effect that bank class who are engaged in nonessential occupations.
In order that the Board may be advised as to the proper
clerks may be given a deferred classification on the ground
that they are engaged in an essential occupation or em- procedure to be followed in cases which affect its employees and may advise the Federal Reserve Banks and memployment.
You state that your office has not ruled that employees ber banks in cases affecting officers and employees of such
of banking institutions as such are entitled to deferred banks, this office will greatly appreciate a specific ruling on
the following cases:
classification.
First. Are employees of the Federal Reserve Board
The Board understands that bank clerks as a class are not
by reason of their employment entitled as a matter of right excepted from the operations of the regulations which
to a deferred classification, but has understood your previ- provide for the withdrawal of deferred classification and
ous ruling to be that where a bank clerk has for other order number of registrants found to be idlers or engaged
reasons been given a deferred classification, it is not neces- in nonproductive occupations or employment?
Second. Is it within the province of a local or district
sary for a local or district board to reclassify him under
board to reclassify a registrant engaged in an occupation or
what is known as the work or fight order.
As pointed out in previous correspondence with your employment which has been excepted from the operation
office, the forces of the banks have already beon materially of the work or fight regulation, where the deferred classidepleted and the officers of the banks are endeavoring to fication of such registrant is not based upon his employreplace as rapidly as possible those who have been called ment but upon other grounds?
under the selective-draft law with women or with men who
Third. If a local or district board reclassifies a registrant
are not of draft age. It is difficult at best, however, for under the work or fight regulation on the ground that he is
the banks to maintain a force sufficient to meet the de- engaged in a nonproductive occupation or employment,
mands made upon them in the present circumstances and, is the finding of the board conclusive or may it be reviewed
since the age limit has been extended so as to include most other than by the President?
of the officers as well as the employees of the bank, the
Fourth. If a local or district board reclassifies a regisproblem of maintaining the banking forces has become an trant onthe ground that he is engaged in a nonproductive
even more serious one.
occupation or employment and the attention of the Board
While there, is no desire on the part of the Federal Re- is called to the fact that the occupation or employment
serve Board, nor of the officers of the Federal Reserve engaged in is one which has been excepted by your office
Banks, to ask for the exemption or deferred classification from the operations of the work or fight order, can the Board
of nonessential officers or employees who may be utilized annul such reclassification?
in the military service, you will, of course, understand
The Board would like to issue a circular to the banks
that if such officers and employees are required under the outlining procedure to be followed in cases where local
work or fight order to seek other employment, it will be boards have reclassified employees under the work or fight
impossible for the banks to perform the services required order in violation of your ruling of July 5, and also as to the
of them by the United States.
procedure to be followed in obtaining a deferred classifiThe same problem is involved in the maintenance of the cation for essential officers or employees when those who
force of the Federal Reserve Board. A case has arisen are required to register on September 12 are classified.
during the past week which illustrates the difficulties that It is understood, of course, that none of such registrants
are being encountered. One of the messengers employed will be given a deferred classification because of their
by the P edoral Reserve Board who is within the. draft age employment, even though banking is classified as an
was classed in Class 4 (a) by the local board in January, essential occupation, unless the officer pr employee is one
1918, because of the fact that he had dependents and not whose services can not be dispensed with without serious
because of the fact that he was employed by the Board. detriment to the work of the bank.
Under the work of fight order he was recently summoned
If your office has prepared any forms to be used in this
before the draft board to show cause why he should not be connection or any specific regulations as to the method of
reclassified, and has been advised that he must find another procedure to be followed, the Board will greatly appreciate
position within 10 days or he will be subject to the draft. it if you will have it furnished with copies. It desires to
The effect of this ruling appears to be that the work of cooperate with your office in every way in facilitating the
the Federal Reserve Board is classified by the local or dis- proper classification of the employees of the Federal
trict board as nonessential. It is, of course,., obvious that Reserve Board and the officers and employees of the
if this position is to be taken by your local board, and if several banks. To this end the Board will be glad to
every employee of the Federal Reserve Board who for receive any and all instructions you may desire to have
other reasons has been given deferred classification, is transmitted to the banks or to have published in its
required under the work or fight order to seek other em- monthly bulletin. It will also be glad to have its counsel
ployment or to be subject to the draft, it will not be possible confer with a representative of your office if agreeable to
for the Board to perform its functions.
you, in order that the Board may obtain the information
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
959
necessary to enable it to deal with questions arising under as the "work or fight" order. This order, which was promulgated on May 23, 1918, provides in part that:
your regulations.
"Whenever, after July 1, 1918, any registrant in Class I,
Respectfully,
II, III, or IV, wherever he may be located, is reported to
W. P. G. HARDING, Governor.
or observed by any local board * * * to be an idler,
or to be engaged in any occupation or employment defined
CLASSIFICATION OP REGISTRANTS UNDER THE ACT OP MAY and described in these regulations or any amendments
thereof as a nonproductive occupation or employnemt,
18, 1917.
such local board shall, by notice as hereinafter prescribed,
As originally enacted.—Under the act of May 18, 1917' notify him and set a day and hour when the registrant may
entitled'"An act to authorize the President to increase appear and present such evidence, by affidavit or othertemporarily the military establishment of the United wise, bearing upon the reasons for his status, as he may
States," registrants may be given a deferred classification care to submit."
In answer to inquiry submitted by the Federal Reserve
by reason of their employment when "engaged in industries, including agriculture, found to be necessary to the Board, the Provost Marshal General, on July 5, 1918, ruled
maintenance of the military establishment, or the effective that bank clerks were not subject to reclassification under
operations of the military forces, or the maintenance of this order,and under date of September 16,1918,ruled that—
| " I t is not within the province of a local or district board
national interests during the emergency."
The district board has exclusive jurisdiction over cases | to withdraw deferred classification or order number on the
of this sort, and local boards are not authorized to give a j ground that the registrant is engaged in a nonproductive
registrant a deferred classification on the ground of his | occupation in any case which has been excepted from the
employment. It is understood that the district boards | operation of the regulations authorizing such withdrawal."
have ruled that banking is not an industry within the | In any case in which a bank employee has been reclassimeaning of this statute, and that bank clerks can not, I fied under the "work or fight" order, the officers of the
therefore, be given a deferred classification by reason of bank should call the matter to the attention of the adjutant general of the State for correction.
their employment.
As amended by the act of August 31, 1918.—The act of
August 31,1918, amends the act of May 18,1917, in several
particulars. The provision quoted above is amended so
that registrants may now be given a deferred classification
when "engaged in industries, occupations, or employments, including agricultural, found to be necessary to the
maintenance of the military establishment," etc.
In response to an inquiry submitted by the Federal
"Reserve Board, the Provost Marshal General, under date
of September 16, 1918, has ruled as follows:
"Under this amendment district boards may properly
consider claims for deferred classification of those engaged
in banking, and as with industrial claims, so with occupational claims, each case must be considered by the district
board on its merits. It must be shown both that the enterprise in which the registrant is engaged is necessary and
that he is necessary to the enterprise."
CLAIM FOR DEFERRED CLASSIFICATION OF BANK CLERKS
WHO REGISTERED ON SEPTEMBER 12.
While the Provost Marshal General has ruled that under
the selective draft act as amended bank clerks may be
given a deferred classification by reason of their employment, he has repeatedly called attention to the fact that
each individual case must be considered on its merits and
that no employees will be entitled as a class to automatically receive a deferred classification. Officers of banks desiring to file claims for deferred classification of necessary
employees, should therefore procure a copy of extract from
Revised Selective Service Regulations, which sets forth
! very clearly the procedure to be followed and character of
| proof required in each case.
I As each case must be considered OIL its own merits it is
suggested that banks seeking to obtain deferred classification for necessary employees should proceed as follows:
First. Prepare and submit to the district board evidence
RECLASSIPICATION OP REGISTRANTS BETWEEN THE AGES
showing the nature and extent of the bank's operations and
OP 21 a n d 31 ENGAGED IN ESSENTIAL EMPLOYMENT.
character of service rendered to the Government, together
It is understood that a number of bank employees whose with any information that may be necessary to satisfy the
claims for deferred classification were based on the ground i board that the bank itself is "a necessary occupation,"
of their employment have not yet been called to the mili- within the meaning of the act of May 18,1917, as amended
tary service. The question, therefore, arises whether in by the act of August 31, 1918.
Second. A list of those employees necessary to the bank
view of the amendment above quoted, these employees
may now be given a deferred classification if it can be should be carefully prepared and arrangements should be
demonstrated that they are necessary to the successful made with such employees to submit their questionnaires
to a committee appointed by the bank before they are filed.
operation of the banks employing them.
Proper notation should be made by the bank on the
The Provost Marshal General has been asked for a ruling
on this question. If he rules that such cases may be re- questionnaire of claim for deferred classification, using
opened by the district boards, a copy of his ruling will be Series XI, entitled, "Industrial occupation."
The Provost Marshal General has called attention to the
furnished upon request for presentation to the district
boards, and in such cases banks should apply for a re- fact that it was necessary to print the questionnaires before
classification of those employees who are necessary to the Congress amended the law, so that the necessary changes
operations of the bank. fiach case will, of course, have could not be made therein. While, therefore, banking
has been held not to be an industry, claim for deferred
to be considered on its merits.
classification is made under this general head.
It is further suggested that such questionnaires should
WITHDRAWAL OP DEFERRED CLASSIFICATION UNDER THE
be accompanied by an affidavit of an officer of the bank conWORK OR PIGHT ORDER.
taining the following information as to the status of each
It appears that in some instances registrants between the employee for whom a deferred classification is claimed.
ages of 21 and 31 have been given a deferred classification
(a) Character of service rendered;
on grounds other than their employment and have subse(6) Length of time the employee has been in the sendee
quently been reclassified under what is usually referred to of the bank;
960
FEDERAL EESEBVE BULLETIN.
(c) The capacity, training, and experience of employee, I
and the extent and value of his services;
'
(d) The effect on the operations of the bank that might
be expected to result from the loss of his services;
(e) Difficulty that would be experienced in filling the
place of employee;
(/) That officers of the bank have no reason to believe or
to suspect that the employee obtained service with the
bank for the primary purpose of evading military service.
APPEALS.
In cases where district boards decline to give a necessary
employee deferred classification the vote of the board
should be ascertained, and if one or more members voted
in favor of deferred classification the case may be appealed
to the President. Such appeal must be accompanied by
the written and signed recommendation of one member
of the local board and either the Government appeal agent
or adjutant general of the State
[Copy of Photostat.]
WAR DEPARTMENT,
OFFICE OF THE PROVOST MARSHAL GENERAL,
Washington, September 16, 1918.
Hen. WILLIAM P. G. HARDING,
Governor, Federal Reserve Board,
Washington, D. C.
DEAR SIR: I am in receipt of your letter of September 11,
in which you ask for specific rulings in regard to the recent
amendments to the selective-service regulations which
prescribe certain occupations as nonproductive.
First. Employees of the Federal Reserve Board are not
included within the operation of the regulations which
provide for the withdrawal of deferred classification and
order number of registrants found to be idlers or engaged
in nonproductive occupations or employments, unless they
are engaged in certain occupations enumerated in paragraphs (a) and (6) of section 121-K, selective-service regulations, a copy of which is herewith inclosed.
Second. It is not within the province of a local or district board to withdraw deferred classification or order
number on the ground that the registrant is engaged in a
nonproductive occupation in any case which has been
excepted from the operation of the regulations authorizing
such withdrawal.
Third. The findings of a local and district board are
conclusive unless there is at least one negative vote in the
district board and the appeal is accompanied by the
written and signed recommendation of one member of the
local board and either the Government appeal agent or the
adjutant general of the State, in which case it may be reviewed by the President, as provided in section 121-J.
Fourth. If a local or district board reclassifies a registrant on the ground that he is engaged in a nonproductive
occupation or employment, and the person, as a matter of
fact, is not engaged "in such nonproductive employment,
the matter should be called to the attention of the adjutant
general of the State for correction, or, if as outlined above,
there is a negative vote in the district board, etc., it may
be appealed to the President.
Fifth. A messenger should not have his deferred classification and order number withdrawn, as he is not within
the provisions of section 121-K of the selective-service
regulations.
With reference to occupational claims for deferred classification for employees of the Federal Reserve Board,
OCTOBER 1,1918.
am sending you herewith two copies of the questionnaire,
the key list of occupations, an explanatory memorandum
to be inserted in each questionnaire, and an extract from
the revised selective-service regulations, which states the
amended rules with respect to classification on occupational grounds.
As you are aware, Congress has amended the selective
service act, so that district boards now have jurisdiction
to consider and grant claims for deferred classification on
the ground of engagement in necessary industries, occupations, or employments, including agriculture. Under
this amendment district boards may properly consider
claims for deferred classification by those engaged in banking; and as with industrial claims, so with occupational
claims, each case must be considered by the district board
on its merits. It must be shown both that the enterprise
in which the registrant is engaged is necessary, and that he
is necessary to the enterprise. As stated in the explanatory memorandum inclosed herewith, all such claims
should be made on the questionnaire, using Series XI,
entitled "Industrial occupation." It was necessary to
print the questionnaire before Congress amended the lw,
so that the necessary changes could not be made therein.
This office is not fully informed .as to the status of employees of the l?ederal Reserve Board, but if they are
legally employees of the United States it is suggested that
claims for their deferment might be made under the provisions for the deferred classification of necessary Federal
employees, for which provision is made in Series VIII,
Part A, of the questionnaire, and in section 77 of the
selective-service regulations. A copy of this last-mentioned section is herewith inclosed, together with a copy
of telegram B-2710 of August 20, giving further instructions
with respect to the proof required in support of such claims.
Attention is invited to the fact that claims for necessary
Federal employees are within the jurisdiction of the local
boards; whereas the district boards have exclusive original
jurisdiction of occupational claims.
E. H. CROWDER,
Provost Marshal General.
By JOSEPH FAIRBANKS,
Lieutenant Colonel, Judge Advocate.
SEPTEMBER 25, 1918.
DEAR SIR: In further reference to circular letter of
September 23,1918, on the above subject, there is inclosed
herewith photostat copy of ruling of the Provost Marshal
General to the effect that the act of May 18, 1917, as
amended by the act of August 31, 1918, applies without
distinction to the registrants of all registrations and that
the district board having jurisdiction over a registrant may
up to the time of induction by the local board, reopen the
case previously determined and grant a deferred classification where the case on its merits entitles the registrant
to such classification.
In cases where employees between the ages of 21 and 31
are necessary to the successful operation of the bank, but
have been placed in class 1, t£e district board should be
asked to reconsider their cases under authority of the
ruling of the Provost Marshal General and to give them a
deferred classification on the grounds of their employment.
In all such cases it will be necessary to submit the same
character of proof that is required in the case of an original
classification.
Respectfully,
J. A. BRODERICK, Secretary.
The CHAIRMAN'FEDERAL RESERVE BANK.
FEDERAL BESEBVE BULLETIN'.
OCTOBER 1,1918.
961
est on an aggregate principal amount of such bonds exceeding one and one-half times the principal amount of bonds
of the fourth Liberty loan originally subscribed for by
such owner and still owned by him at the date of his tax
Washington, September 21, 1918.
return; and
Hon. W. P. G. HARDING,
(3) The interest on an amount of bonds, the principal of
which does net exceed $30,000, owned by any individual,
Governor, Federal Reserve Board,
partnership, association, or corporation, issued upon conWashington, D. C.
SIR: This office is in receipt of your letter under date version of 3J per centum bonds of the first Liberty loan
of September 20, making inquiry whether the act of in the exercise of any privilege arising as a consequence
August 31, 1918, amending the "act of May 38, 1917, of the issue of bonds of the fourth Liberty loan, shall be
will apply to bank employees between the age of 21 and 31 exempt from such taxes.
who have heretofore been placed in Class I, who (a) have m The exemptions provided in this section shall be in addinot been called to the military service, the finding of tion to the exemption provided in section 7 of the second
the local board having been appealed from and the appeal Liberty bond act in respect to the interest on an amount
being pending before the district board, or (b) whose of bonds and certificates, authorized by such act and
appeal has been confirmed by the district board but who amendments thereto, the principal of which does not
exceed in the aggregate $5,000, and in addition to ail other
has not been called.
With respect to the foregoing you are advised that the exemptions provided in the second Liberty bond act.
SEC. 2. That section 6 of the second Liberty bond act
act as amended applies without distinction to the registrants of all registrations, and that the district board hav- is hereby amended by striking out the figures "$2,000.ing jurisdiction over a registrant may, up to the time of 000,000," and inserting in lieu thereof the figures " $4,000 r
actual induction by the local board, reopen a case pre- 000,000." Such section is further amended by striking
viously determined, and grant deferred classification out the words "The amount of war-savings certificates sold
upon a finding that the registrant is actually and com- to any one person at any one time shall not exceed $100,
pletely engaged in an industry, occupation, "or employ- and it shall not be lawful for any one person at any one
ment, including agriculture, that is necessary to the main- time to hold war-savings certificates to an aggregate amount
tenance of the military establishment, or' the effective exceeding .$1,000." and inserting in iieu thereof the words
operation of the military forces, or the maintenance of the " I t shall not be lawful for any one person at any one
national interest during the emergency, and that such time to hold war-savings certificates of any one series to
registrant occupies such a necessary status with respect an aggregate amount exceeding $1,000."
thereto that he can not be replaced without direct subSEC. 3. That the provisions of section 8 of the second
stantial material loss and detriment to the adequate and Liberty bond act, as amended by the third Liberty bond
effective operation of the same.
act, shall apply to the proceeds arising from the payment
of war-profits taxes as well as income and excess profits
E. H. CHOWDER,
taxes.
Provost Marshal General.
SEC. 4. That the Secretary of the Treasury may, during
By ROSCOE S. CONKLING,
the war and for two years after its termination, make
Lieut. Colonel, J. A.,
arrangements in or with foreign countries to stabilize the
Chief, Classification Division.
foreign exchanges and to obtain foreign currencies and
credits in such currencies, and he may use any such credits
and foreign currencies for the purpose of stabilizing or rectifying the foreign exchanges, and he may designate
New Bond Legislation.
depositaries in foreign countries with which may be deposited as he may determine all or any part of the avails of
[H. R. 12923.]
any foreign credits or foreign currencies.
AN ACT To supplement the second Liberty bond act, as amended,
SEC. 5. That the subdivision (b) of section 5 of the
and for other purposes.
trading-with-the-encmy act be, and hereby is, amended
Be it enacted by the Senate and House of Representatives to read as follows:
"(b)That the President may investigate, regulate, or
of the United States of America in Congress assembled, That
until the expiration of two years after the date of the ter- prohibit, under such, rules and regulations as he may premination of the war between the United States and the scribe, by means of licenses or otherwise, any transactions
Imperial German Government, as fixed by proclamation in foreign exchange and the export, hoarding, melting, or
earmarkings of gold or silver coin or bullion or currency,
of the President—
(1) The interest on an amount of bonds of the fourth transfers of credit in any form (other than credits relating
Liberty loan the principal of which does not exceed solely to transactions to be executed wholly within the
$30,000, owned by any individual, partnership, associa- United States), and transfers of evidences of indebtedtion, or corporation, shall be exempt from graduated addi- ness or of the ownership of property between the United
tional income taxes, commonly known as surtaxes, and States and any foreign country, whether enemy, ally of
excess-profits and war-profits taxes, now or hereafter im- enemy, or otherwise, or between residents of one or more
posed by the United States, upon the income or profits of foreign countries, by any person within the United States;
and, for the purpose of strengthening, sustaining, and
individuals, partnerships, associations, or corporations;
(2) The interest received after January 1, 1918, on an broadening the market for bonds and certificates of indebtamount of bonds of the first Liberty loan converted, edness of the United States, of preventing frauds upon
dated either November 15, 1917, or May 9, 1918, the sec- the holders thereof, and of protecting such holders, he
ond Liberty loan, converted and unconverted, and the may investigate and regulate, by means of licenses or
third Liberty loan, the principal of which does not exceed otherwise (until the expiration of two years after the date
$45,000 in the aggregate, owned by any individual, part- of the termination of the present war with the Imperial
nership, association, or corporation, shall be exempt from German Government, as fixed by his proclamation), any
such taxes: Provided, however, That no owner of such bondstransactions in such bonds or certificates by or between
shall be entitled to such exemption in respect to the inter- any person or persons: Provided, That nothing contained
[Copy of photostat.]
W A R DEPARTMENT,
OFFICE OF THE PROVOST MARSHAL GENERAL,
962
FEDERAL RESERVE BULLETIN.
OCTOBBJI 1, 1918.
in this subdivision (b) shall be construed to confer any 28, 1917, the Committee of Five made a full and careful
power to prohibit the purchase or sale for cash, or for notes survey of the operations of the Federal Reserve clearing
eligible for discount at any Federal Reserve Bank, of and collection system. It found:
1. That section 13 of the Federal Reserve Act had been
bonds or certificates of indebtedness of the United States;
and he may require any person engaged in any transac- amended with the view of according to all banks the
tion referred to in this subdivision to furnish, under oath, privilege of making reasonable charges, under regulations
complete information relative thereto, including the pro- of the Federal Reserve Board, to cover service and expense
duction of any books of account, contracts, letters, or incurred in collecting and remitting for checks presented
other papers in connection therewith in the custody or through any Federaf Reserve Bank as agent.
2. That the Federal Reserve Board had taken no steps
control of such person, either before or after such transacto prepare a schedule of charges to be allowed to remitting
tion is completed."
SEC. 6. That section 5200 of the Revised Statutes, as banks as provided for by the amended law.
3. That the Federal Reserve Banks, presumably under
amended, be, and hereby is, amended to read as follows:
"SEC. 5200. The total liabilities to any association, of instructions from the Federal Reserve Board and by
any person, or of any company, corporation, or firm for authority of sections 13 and 16 of the Federal Reserve Act,
money borrowed, including in the liabilities of a company ! were making charges ranging from 1 to 2 cents per check
or firm, the liabilities of the several members thereof, shall against their respective members on checks deposited
at no time exceed ten per centum of the amount of the with the Federal Reserve Banks for collection.
4. That the Federal Reserve clearing and collection
capital stock of such association, actually paid in and
unimpaired, and ten per centum of its unimpaired sur- system as being operated was unsatisfactory, failed to
plus fund: Provided, hoivever, That (1) the discount of provide adequate facilities and by requiring a real service
bills of exchange drawn in good faith against actually to be rendered without proper compensation therefor
existing values, (2) the discount of commercial or business kept many eligible banks from joining the Federal Reserve
paper actually owned by the person, company, corpora- system, thus preventing a unification of the banking
tion, or firm, negotiating the same, and (3) the purchase or system.
MEETING OF COMMITTEE OF FIVE.
discount of any note or notes secured by not less than a _
like face amount cf bonds of the United States issued since j
April twenty-fourth, nineteen hundred and seventeen, or | The committee held its initial meeting in Washington,
certificates of indebtedness of the United States, shall not j January 15, 1918, previous arrangements having been
be considered as money borrowed within the meaning of made for a conference with the Federal Reserve Board on
this section; but the total liabilities to any association, of the following day.
The committee had at its disposal the information accuany person or of any company, corporation, or firm, upon
any note or notes purchased or discounted by such, asso- mulated by the committee of 25 and the survey referred
ciation and secured by such bonds or certificates of indebt- to above. After thorough consideration of all the facts it
edness, shall not exceed (except to the extent permitted was decided to submit to the Federal Reserve Board for
by rules and regulations prescribed by the Comptroller of its consideration a plan covering a sliding scale of per
the Currency, with the approval of the Secretary of the item service charges, these charges to be based on the
Treasury) ten per centum of such capital stock and surplus average amount of the check and arranged with due
regard to the population of cities and towns and fluctuatfund of such association."
SEC. 7. That the short title of this act shall be "Sup- ing from nothing to 10 cents per S100.
plement to second Liberty bond act."
CONFERENCE WITH THE FEDERAL RESERVE BOARD.
Approved September 24, 1918.
A conference was held with the Federal Reserve Board
January 16, 1918, the board being represented by its clearing committee: Messrs. F. A. Delano, Chas. S. Hamlin,
W. P. G. Harding, and Adolph C. Miller. The Committee
Report of "Committee of Five."
of Five was represented by Messrs. Fred Collins, cashier,
Milan Banking Co., Milan, Tenn.; M. J. Dowling, presiBelow are reprinted extracts from the report dent, Olivia State Bank, Olivia, Minn.; Thos. B. Me Adams,
vice president, Merchants' National Bank,
of the "Committee of Five" of the American chairman,
Richmond, Va.; Thos. B. Paton, general counsel, AmeriBankers' Association which was originally ap- can
Bankers' Association; and Jerome Thralls, secretary,
pointed to consider the question of domestic No. 5 Nassau Street, New York City.
exchange under a resolution of September 29, The purpose and activities of the committee of 25 and
the Committee of Five, were carefully re1917. The committee in question has sent its its successor,
All angles of the Federal Reserve clearing and
report to all members of the association, ac- viewed.
collection system were carefully considered and a general
companied by a set of questions, designed to plan for per item service charges was outlined.
ascertain the views of member banks which The representatives of the Federal Reserve Board stated
it would be necessary for them to confer with the
receive them. The extracts from the report that
members of the Board and get the opinion of the
are reprinted for the purpose of giving readers other
Attorney General of the United States on certain phrases
of the BULLETIN as complete a record as pos- of the law before they could give the committee a definite
sible of the development of the situation affect- answer. They requested that the Committee of Five
name a subcommittee of two or three and have such subing clearings and collections:
committee present to the Board, in writing, full details of
Proceeding under instructions given by the American its plan covering a schedule of per item service charges;
Bankers' Association in convention at Kansas City, Mo., also submit an opinion of the counsel of the American
September 28, 1916, and Atlantic City, N. J., September Bankers' Association in support of thi3 plan.
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
PLAN OF PER ITEM SERVICE CHARGES SUBMITTED TO THE
FEDERAL RESERVE BOARD.
WASHINGTON. D. C, March 12, 1918.
GENTLEMEN: In accordance with your request made at
the conference held on January 1.6 between Messrs. Harding, Delano, Hamlin, and Miller of the Federal Reserve
Board, and members of the Committee of Five of the
American Bankers' Association, our committee respectfully submits the following:
1." The Federal Reserve collection system is inadequate,
and is satisfactory neither to the member nor nonmember
banks. It is fundamentally unsound, in so far as it
attempts to build up a system of service without providing proper compensation for such service. It is not
comprehensive in that it provides for the collection of
items on only about one-half of the banks of the country,
and it has failed to give member banks a proper collection
service as an offset for the exchange lost through remitting
for items at par. It is unpopular with a large majority of
the member and nonmember banks of the country in
that its operations, in the final analysis, have resulted in
adding to the profits of large jobbers, manufacturers, and
merchants at the expense of the banks. It is hindering
the development of the Federal Reserve system as a whole,
and the unification of the ban king interests of the country.
2. The banks are entitled to reasonable compensation
for their services in collecting and remitting for items and
making provision for the payment of their checks at
points distant from their counters; it is impracticable for
banks generally at this time to so educate their customers
as to require the drawer of the check to absorb these
charges, but, on the other hand, it is in accord with the
prevailing custom for these charges to be absorbed by
the depositor of the out-of-town items, either through the
maintenance of compensating balances or by the payment
of a reasonable exchange or sendee charge. This principle
has already been recognized by the Federal Reserve
Board in establishing a service charge in the various Federal Reserve Banks to cover the cost of handling items deposited therein, such charges being made against the depositing banks rather than against the drawers of the
checks, or the banks upon which the items are drawn.
3. The collection system as now operated, by the Federal Reserve Banks has not resulted in a material reduction of clerical or other expenses of the depository banks;
they are still being compelled to maintain outside accounts for the purpose of dealing their sundry items, not
collectible through the Federal'Reserve Banks, and to
employ a large number of transit clerks for handling these
items, including in several centers the maintenance of
country clearing houses.
4. A collection system to be successful, should be universal, and through cooperation between the Federal
Reserve Board and the American Bankers' Association, it
should be possible to make the collection system practically universal, provided a reasonable schedule of service
charges is adopted by the board, these charges to be made
by the Federal Reserve Banks against the depositing
banks and turned over to the remitting banks in accordance
with such regulations as the Federal Reserve Board may
prescribe.
In augurating this system, it is well to give consideration
to the advisability of making the service charge allowances
as liberal as possible at the outset, to be subsequently
modified as actual experience may dictate.
5. Since the amount of the average itemdrawnyari.es
largely according to the population of the town or city in
which the drawee bank is located, it was tentatively suggested at our conference that the following schedule of
service charges be adopted by the Federal Reserve Board:
In our opinion, through the provisions of the law which
963
authorize and make it the duty of the Federal Reserve
Board to determine "reasonable" charges, a fair interpretation of the word "reasonable" would justify the board
in fixing the varying rates according to the size of the place,
as a rate which would be reasonable for a city of 50,000
would be unreasonable for one of 5,000, and vice versa.
Four cents per item in towns or cities of 3,000 population
or less;
Three cents per item in towns or cities of from 3,000 to
6,000 population;
Two cents per item in cities with population of from
6,000 to 50,000;
One cent per item in cities with population above 50,000—
provided no charge shall be allowed banks in cities in
which are located a Federal Reserve Bank or branch
thereof; provided, further, that none of the above charges
as made shall exceed the maximum fixed by law, viz, 10
cents per S100 or fraction thereof.
Since the above schedule was suggested, an investigation has been made as to the average amounts of items on
cities and towns of different population in the States of
Virginia, West Virginia, North Carolina, and South Carolina handled through the Richmond Country Clearing
Association, from which we find:
Class 1. In cities under 3,000 the items are at present
averaging $60 or slightly over 16 items per §1,000.
Class 2. From 3,000 to 6.000, the items are averaging
from $80, or about 12 items to the §1,000.
Class 3. From 6,000 to 25,000, the items are averaging
S98, or about 10 items to each SI,000.
Class 4. Twenty-five to fifty thousand inhabitants, the
items average $202, or 5 items for each $1,000.
We believe these figures may be taken as a fair basis for
items on towns and cities of similar size in the various
sections of the country. While there may be some variations from the above in various sections of the country and
different seasons of the year, we are convinced, from our
previous investigations,' that the amounts of the items
vary in approximately the above ratio, according to the
size of the places upon which they are drawn. It would
seem, therefore, that a service charge of 6 cents for class 1/
and 4 cents for class 2 would provide revenue of approximately one-tenth of 1 per cent for the small country banks
or those located in cities and towns of 6,000 population and
less. In class 3 a charge of 2 cents per item would provide
a revenue of about 30 cents per $1,000, while 1 cent per
item for class 4 would equal 5 cents per $1,000.
6. The provision in the Federal Reserve Act, as originally passed, that nothing therein contained should prevent a bank from charging its actual expenses incurred in
transactions of this character, is subject to a more liberal
interpretation than has been placed upon it by the Federal
Reserve Board. The Federal Reserve Board's ruling
recognized but one of the many items of expense, viz, that
of transportation charges upon currency.
7. The amendments to the Federal Reserve Act, passed
in 1917, charge the Federal Reserve Board with the responsibility of fixing and allowing remitting banks reasonj able compensation for their services and give the Federal
! Reserve Board the right to fix and determine what reason! able charges shall be made by said remitting banks upon
all items received by them from any Federal Reserve
Bank where such Federal Reserve Bank is acting as an
agent. The provision that no such charge shall be made
against the Federal Reserve Banks refers only to checks
and drafts which belong to the Federal Reserve Bank as
principal. * * *
The Committee of Five is anxious to cooperate with the
Federal Reserve Board in working out a collection system
which will be fair to the public and just to the banks, and,
after consideration has been given to the various phases of
the situation covered by this plan, our committee would
964
FEDERAL EESERVE BULLETIN.
be glad to arrange for a further conference with the board,
if desired, and to render every possible service in bringing
about a happy solution of the problem.
The committee feels, however, that the matter should
not longer be left in abeyance and respectfully urges the
adoption at an early date of a schedule of reasonable
charges, as alcove outlined.
Respectfully submitted.
(Signed)
THOS. B. MCADAJVIS, Chairman,
JEROME THRALLS, Secretaey.
In conclusion, the committee says:
The Committee of Five is of the opinion that the law,
as it now stands, definitely gives every bank and trust
company in America the right to make a charge in any
case"" not to exceed 10 cents per $100 or fraction thereof
based on the total of checks presented at any one time,
to cover service and expense incurred in remitting for
checks presented through the Federal Reserve Banks as
agents; and further, prohibits the making of any charge
on checks handled by the Federal Reserve Banks in the
capacity of owners.
The committee further believes that the law imposes
upon the Federal Reserve Board the duty of regulating
such charges and that the Board has no legal authority to
deny any bank the right to make a charge for such service
and expense so long as the charge is within the limit fixed
by the law. It would seem that it is now clearly up to
the individual bank to determine as to whether it will
make a charge for the service and expense it incurs in
collecting and remitting for checks sent to it by the Federal Reserve Bank acting in the capacity of agent. If
the Federal Reserve Bank seeks to deny such charges it
may do so through proper legal stens only. The committee believes the courts will sustain the right of any
bank to make a charge. Copy of the opinion of General
Counsel Paton of the American Bankers' Association sustaining the views of the Committee of Five is given herewith.
Even though sections J3 and 16 of the Federal Reserve
Act as amended give the banks the right to compensation
for service and expense involved in collecting and remitting for checks, both sections are ambiguous and confused
and might, to the advantage of all concerned, be clarified.
Appended is a suggested amendment designed to clarify
the language and remove anv possible doubt as to the
meaning of these sections, feoes the suggested amendment meet with your approval? And is it your desire
that steps shall be taken to have it enacted into law—or
should legislative attempts be deferred as a matter of
expediency until after the war?
SUGGESTED AMENDMENT.
Amend the Federal Reserve Act by repealing the fourteenth and fifteenth paragraphs of section 16 and by
amending and reenacting the first paragraph of section 13
to read as foliows:
"Every Federal Reserve Bank shall receive on deposit
from member banks or from Federal Reserve Banks or
from the United States, current funds in lawful money and
Federal Reserve notes, and for collection and credit checks
and drafts drawn upon any of its depositors, and when
remitted by a Federal Reserve Bank for collection and
credit checks and drafts drawn by any depositor in any
other Federal Reserve Bank or member bank upon funds
to the credit of said depositor in said reserve bank or
member bank.
"Every Federal Reserve Bank may receive—
"(a) On deposit from member banks and from the
United States, Federal Reserve Bank notes and national
bank notes and for collection and credit checks and drafts
payable upon presentation.
OCTOBEK 1, 1918.
il
(b) Solely for purposes of exchange and collection from
member banks, other Federal Reserve Banks and the
United States, checks and drafts payable upon presentation and maturing notes and bills.
"(c) From any nonmember bank or trust company deposits of current funds in lawful money, national bank
notes, Federal Reserve notes, Federal Reserve Bank notes
and solely for purposes of exchange and collection checks
and drafts payable upon presentation and maturing notes
and bills, provided such nonmember bank or trust company maintains with the Federal Reserve Bank of its district a balance sufficient to offset the items in transit held
for its account by the Federal Reserve Bank.
"The Federal Reserve Board may by rule fix the charge
which may be imposed by each Federal Reserve Bank
upon its depositors for the service of collection of checks,
drafts and maturing notes and bills rendered by the
Federal Reserve Bank, and shall determine and regulate
reasonable charges to be made by member and nonmember
depository banks for collection or payment of checks and
drafts and remission therefor by exchange or otherwise
in no case to exceed 10 cents per $100 or fraction thereof,
based on the total of checks and drafts presented at any
one time, no such charges to be made, however, against
the Federal Reserve Banks upon checks and drafts drawn
to the order of the Federal Reserve Banks or owned by the
the United States Government.
"The Federal Reserve Board shall make and promulgate from time to time regulations governing the transfer
of funds and charges therefor among Federal Reserve
Banks and their branches, and may at its discretion exercise the functions of a clearing house for such Federal
Reserve Banks or may designate a Federal Reserve Bank
to exercise such functions.
"The Federal Reserve Board p a y also require each
Federal Reserve Bank to exercise 'the functions of a
clearing house for its member banks."
Membership of State Banks and Trust
Companies.
On October 13, 1917, the President made
public a statement calling attention to "the
importance of developing to the maximum our
banking power and of providing machinery
adequate for meeting the very great financial
requirements imposed
upon our country by
reason of the war.7' In the course of this
statement the President said:
I believe that cooperation on the part of the banks is a
patriotic duty at this time and that membership in the
Federal Reserve System is a distinct and significant evidence of patriotism. * * * Permit me to urge that
every bank officer and bank director owes a solemn obligation to the country which I am sure they wish to discharge . I therefore wish again to impress upon them my
solemn conviction that they can best measure up to their
duties and responsibilities through membership in the
Federal Reserve System.
The accompanying tables show by districts
to what extent eligible banks have availed
themselves of the privilege of membership during the 12 months following this appeal from
the President. It is interesting to note that,
while less than 9 per cent in the number have
become members of the system, the resources
OCTOBER 1,1918.
965
FEDERAL RESERVE BULLETIN.
of this small percentage represent more than
50 per cent of the total resources of banks reported as eligible. This indicates that the
larger institutions are alive to the necessity for
mobilizing our resources and unifying our banking system in order to meet the increasing demands made upon our banking resources as a
result of the war.
It may also be noted that the resources
of the Federal Reserve Banks and the number
of members have been increased to a greater
extent during the last three months than during the preceding six months. The indications are that the next three months will likewise show a very decided increase in membership.
T A B L E 1.—Number and total resources of State banks and trust companies, members of Federal Reserve system, by districts.
[Resources in thousands of dollars.!
May 10,1918.
Dec. 31,1917.
June 29,1918.
Sept. 1,1918.
Oct. 1,1918.
Federal Reserve district.
Number. Resources. Number. Resources. Number. Resources. Number. Resources. Number. Resources.
16
9
11
17
339,722
2,707,541
228,440
369,147
43,804
150,656
792,425
209,694
27,527
68,099
11,133
65,697
250
5,013,885
14
Boston
New York
Philadelphia
ClovolEtnd
Richmond
Atlanta
Chicaco
St. Louis
.
44
8
13
14
-.
20
71
13
Kansas City
Dallas
San Francisco
Total
.
35
16
43
40
528,584
3,099,215
244,336
442,848
60,405
180,700
878,542
266,436
46,899
79,695
26,694
84,392
449
5,938,746
23
63
16
26
20
30
114
23
40
16
58
53
533,264
3,026,540
244,034
452,907
60,313
177,031
944,596
273,186
47,127
78,632
31,271
125,923
513
5,994,824
24
66
16
30
20
38
128
24
53
22
87
66
539,451
3,084,551
367,053
494,140
81,695
200,461
1,212,651
299,537
60 180
83,355
47,316
139,020
713
6,609,410
25
82
20
48
26
42
206
36
59
22
91
68
564 301
3,104,110
371 455
508,512
91 263
201 672
1,237,411
299 537
6° 948
83*355
49*189
139,499
785
6,713,252
28
89
22
57
31
45
237
36
T A B L E 2.—Ratio of number and total resources of State banks and trust companies which have joined the Federal Reserve
system to total State banks and trust companies reported as eligible for membership on basis of capital requirements.
Dec. 31, 1917.
May 10,1918.
June 29,1918.
Sept. 1, 1918.
Oct. 1, 1918.
Federal Reserve district.
Number. Resources. Number. Resources. Number. Resources. Number. Resources. Number. Resources.
7.1
12.4
New York
Philadelphia
3.0
2.1
2.7
2.6
3.4
1.3
Richmond
Atlanta
St. Louis
Minneapolis
Dallas
San Francisco
Total
35.0
62.1
30.7
29.7
Federal Reserve district.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
83463—18
6.2
4.3
3.9
4.0
5.4
2.3
9.8
2.5
1.0
33.8
32.7
28.7
7.8
13.1
2.3
2.3
5.4
6.5
9.0
5.4
3.3
37.3
5.3
T A B L E 3.—Number, capital stock, surplus,
54.5
71.8
32.8
35.7
13.5
40.5
36.3
36.4
13.2
15.3
12.8
11.7
17.7
5.5
1.7
12.2
18.5
8.4
6.3
1.7
12.2
7.1
55.0
69.4
32.8
36.5
13.4
39.7
39.0
37.4
13.3
15.1
15.0
12.5
44.2
6.0
44.6
6.2
4.9
3.9
5.0
6.1
2.4
and total resources of State banks
Reserve system on Oct. 1, 1918.
[In thousands of dollars.]
Number.
Per cent
of total
eligible
banks.
Capital.
12.7
23.0
9.0
55.6
70.7
49.3
39.8
18.2
44.9
50.0
41.0
17.0
16.0
22.7
13.8
8.4
49.1
7.8
7.9
5.0
5.6
9.8
3.7
8.3
2.4
18.3
and trust companies
Estimated
Estimated
per cent
cent
and ofper
of total of Capital
total of
surplus.
eligible
eligible
banks.
14.2
25.0
9.2
58 2
71 2
49 9
41 0
20 3
45.2
51 1
41.0
17.8
16 0
23.6
13.8
9.2
49.9
8.6
9.3
6.0
6.0
11.3
3.7
9.3
2.4
19.1
members of Federal
Total resources.
Estimated
per cent
of total of
eligible
banks.
28
89
22
57
31
45
237
36
59
22
91
14.2
25.0
8.6
9.3
6.0
6.0
11.3
3.7
9.3
2.4
19.1
9.2
$25,850
112,364
18,361
26,930
8,907
15,165
68,640
22,860
5,582
4,675
6,192
10,735
43.8
66.1
26.2
29.0
17.5
27.6
36.9
28.2
15.1
10.9
20.6
12.5
$53,179
264,477
62,006
83,668
15,093
25,034
129,332
42,105
7,400
7,686
8,045
14,758
49.7
67.0
39.0
42.5
19.4
22.8
43.1
33.7
13.5
13.0
21.2
12.3
§1564,301
3,104,110
371,455
508,512
91,263
201,672
1,237,411
299,537
62,948
83,355
49,189
139,499
58.2
71.2
49.9
41.0
20.3
45.2
51.1,
41.0
17.8
16.0
23.6
13.8
785
9.2
326,261
34.0
712,783
40.9
6,713,252
49.9
966
FEDEEAL BESEEVE BULLETIN.
OCTOBER 1, 1918.
State Banks and Trust Companies Admitted.
Capital.
The following list shows the State banks and
trust companies which have been admitted to
membership in the Federal Keserve System
during the month of September.
Seven hundred and eightv-nve State institutions are now members of the system, having a
total capital of $326,360,807, total surplus of
$386,534,881, and total resources of $6,727,0©0,709.
Capital.
Surplus.
Total
District No. 1.
$200,000 $200,000 $7,029,638
Security Trust Co., Lynn, Mass
250,000 150,000 4,670,740
Naumkeag Trust Co., Salem, Mass....
1,000,000 500,000 13,148,870
Union Trust Co., Providence, R. I
District No. 2.
Seacoast Trust Co., Asbury Park, N. J .
Bayonne Trust Co., Bayonne, N . J . . .
State Bank Chatham, Chatham, N. Y .
Bank of Millbrook, Millbrook, N. Y . . .
Yorkville Bank, New York, N. Y . . . .
Rockland County Trust Co., Nyack,
N. Y
The State Bank of Trumansburg,
N.Y
100,000
200,000
50,000
50,000
200,000
100,000
25,000
75,000
150,000
50,000
50,000
400,000
1,806,605
3,916,189
1,582,742
634,850
9,224,896
25,000
2,059,290
15,000
334,431
District No. S.
The Colonial Trust Co., Philadelphia,
Pa
American Bank of Commerce, Scranton, Pa
270,825
270,825
3,622,066
290,356
33,470
780,379
40,000
60,000
596,297
25,000
4,000
213,010
District No. 4.
Lodi State Bank, Lodi, Ohio
The Peninsula Banking Co., Peninsula, Ohio
The Home Banking Co., St. Marys,
Ohio
Brighton Bank & Trust Co., Cincinnati, Ohio
State Bank & Trust Co., Richmond,
Ky
Ambridge Savings & Trust Co., Ambridge,Pa
Beaver Trust Co., Beaver, Pa
Federal Title & Trust Co., Beaver
Falls, Pa
Woodlawn Trust Co., Woodlawn, Pa.
100,000
20,000
200,000
200,000
150,000
50,000
125,000
300,000
50,000
100,000
200,000
125,000
25,000
62,500,
26,070
525,000
100,000
8,035
375,000
50,000
Mercantile" Trust* & Savings Bank",
Chicago, 111
First State Bank of Wenona, Wenona,
$75,000 $3,113,359
10,500
8,000
20,000
50,000
15,000
322,135
205,064
793,261
918,784
510,263
5,000
12,000
25,000
798,920
385,427
443,737
8,000
371,588
25,000
10,000
487,189
212,202
194,065
1,000
180,750
5,000
7,500
242,133
312,474
100,000
1,450,846
5,000
264,416
15,000
10,000
6,000
320,811
381,946
461,734
1,3
100,000
6,000
954,120
100,000
2,736,365
40,000
1,243,517
32,500
937,361
544,536
10,000
310,516
30,000
20,000
844,949
30,000
25,000
30,000
5,000
520,494
302,806
25,000
42,000
30,000
300
298,827
282,093
7,500
519,334
100,000
11,000
1,195,144
25,000
35,000
50,000
3,000
15,000
5,000
176,464
:f 192,755
308,830
6,250
334,485
District No. 10.
239,399
4,359,138
1,254,228
200,000
50,000
100,000
60,000
3,206,773
508,861
50,000
50,000
5,000
241,899
237,492
731,859
200,000
District No. 7.
Capital State Savings Bank, Chicago,
District No. 7—Continued.
Depositors State & Savings Bank,
Chicago, 111
8300,000
Gandy State Bank, South Whitley,
In d
"...
25.COO
Farmers State Bank, Bargersville,Ind.
25,000
The Avoca State Bank, Avoca, Iowa..
50,000
Commercial State Bank, Britt, Iowa..
60,000
Citizens Savings Bank, Eldora, Iowa..
50,000
Jefferson Savings Bank, Jeff<
fferson,
Iowa
50,000
Farmers & Traders State Bank, Leon,
Iowa.
100,000
Lowden Savings Bank, Lowden, Iowa
25,000
Malcom Savings Bank, Malcom, Iowa.
50,000
Farmers State Bank of St. Olaf, St.
Olaf, Iowa
25,000
Farmers Savings Bank, Barnes City,
Iowa
25,000
The Home Trust & Savings Bank",
Osajre, Iowa
50 000
25,000
Ricoville State .Itank, Riceville. Towa.
Commercial State Savings Bank,
Lakeview, Mich
25,000
Farmers & Merchants State Bank,
Lakeview, Mich
25,000
Farmers State Bank, Armada, Mich..
25,000
Stale Savings Bank, Ionia, Mich
100,000
Farmers & Merchants State Bank,
25,000
Carson City, Mich
Elk Rapids State Bank, Elk Rapids,
35,000
Mich
Commercial Savings Bank, Fenton,
Mich
25,000
25,000
First State Bank, Milford, Mich
The Ullrich Savings Bank, Mount
100,000
Clemens, Mich
Isabella County State Bank," Mount
60,000
Pleasant, Mich
Traverse City State Bank, Traverse
200,000
City, Mich
Plymouth Exchange Bank, Ply100,000
mouth, Wis
,
State Bank of Plymouth, Plymouth,
125,000
50,000
State Bank of WanpiVnVwaiVpiinj Wis
Lcelanau County Savings Bank, Sut25,000
tons Bay, Mich
State Bank, Clarkfield,
5,756,047 Clarkfield
Minn
First
State
Bank of Spring Valley,
981,883
Spring Valley, Minn. 7 . . . . . . . . .
Security
State
Bank, Noonan, N. Dak.
1,549,829
1,505,497 little Missouri Bank, Camp Crook,
S. Dak
1,223,535 First State Bank, Glenwood City, Wis.
1,658,252 La Crosse County Bank, West Salem,
District No. 6.
Jackson Banking Co., Jackson, Ga...,
Farmers Bank, Winder, Ga
American Bank & Trust Co., Savannah, Ga
Total
District No. 9.
District No. 5.
Hamilton Bank, Hamilton, Md....
American Trust Co., Charlotte, N. C
Bank of Darlington, Darlington, S. C.
Carolina Savings Bank, Charleston,
S.C
The Greensville Bank, Emporia, Va..
Surplus.
200,000
20,000
1,139,955
250,000
50,000
3,320,190
50,000
35,000
532,417
Guaranty State Bank, Okmulgee,
Okla
District No. 11.
Citizens State Bank, Richardson, Tex
First State Bank, Royse City, Tex.
First State Bank, Leonard, Tex
District No. 12.
Farmers and Stockgrowers Bank,
Sweet, Idaho
'
Peoples State Bank, Enumclaw.
Wash
145,039
25,000
25,000
NOTE.—Tho Clinton Jounty Bank & Trust Co., Frankfort, Ind., has
decided not to complete its membership by making payment on account
of capital stock, and it is therefore not a member of the Federal Reserve
system.
OCTOBBU 1, 1918.
967
FEDERAL RESERVE BULLETIN.
Fiduciary Powers.
Acceptances to 100 Per Cent.
The applications of the following banks for
Since the issue of the September BULLETIN
permission to act under section 11 (k) of the the following banks have Been authorized to
Federal Reserve Act have been approved since accept drafts and bills of exchange up to 100
the issue of the September BULLETIN:
per cent of their capital and surplus:
DISTRICT NO. 3.
Trustee, executor, administrator, and registrar of stocks
and bonds:
Wyoming National Bank, Wilkes-Barre, Pa.
Registrar of stocks and bonds:
National Bank of Topton, Toptan, Pa.
DISTRICT No. 4.
Trustee:
First National Bank, Grove City, Pa.
DISTRICT No. 9.
Trustee, executor, administrator, and registrar of stocks
and bonds:
First National Bank, Manistique, Mich.
New National Bank Charters.
The Comptroller of the Currency reports the
following increases and reductions in the number of national banks and the capital of national banks during the period from August 24,
1918, to September 27, 1918, inclusive:
Banks.
New charters issued to
With capital of
Increase of capital approved for
With new capital of
24
$1, 535,000
16
2,109,000
Aggregate number of new charters and
banks increasing capital
40
With aggregate of new capital authorized
3, 644,000
Number of banks liquidating .(other than
those consolidating with other national
banks)
2
Capital of same banks
75,000
Number of banks reducing capital
1
Reduction of capital
150,000
Total number of banks going into liquidation or reducing capital (other than those
consolidating with other national banks). 3
Aggregate capital reduction
225,000
The foregoing statement shows the aggregate of
increased capital for the period of the banks
embraced in statement was
£3,644,000
Against this there was a reduction of capital
owing to liquidation (other than for consolidation with other national banks) and reductions of capital of
225,000
Net increase
3,419,000.
Fiaet & Security National Bank, Minneapolis, Minn.
First National Bank, Nogales, Ariz.
First National Bank, New York City.
Commercial Failures Reported.
With only 443 insolvencies reported to R. G.
Dun & Co. during three weeks of September,
against 681 in the corresponding period of
1917, statistics of commercial failures maintain
their highly favorable showing. The statement for August, the latest month for which
complete figures are available, discloses only
720 defaults for $7,984,760, as compared with
1,149 for $18,085,207 in August, 1917. Not
only is the number of August failures the
smallest of the present year, but so few business
reverses have not occurred in any previous
month back to July, 1901, and the indebtedness is the lightest of all other months since
September, 1906. Comparing with last year,
the August returns show a smaller number of
failures in all of the 12 Federal Reserve districts, except in the ninth district, where
the increase is trifling. Moreover, only in the
ninth district are the liabilities larger than in
August, 1917, and the expansion there of about
$200,000 appears insignificant in comparison
with the reductions in some other districts.
Failures during August.
Number.
Liabilities.
Districts.
1918
1917
1918
1917
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh...
Twelfth....
86
105
34
73
31
41
135
23
38
20
46
88
124
184
52
91
66
92
165
80
36
58
56
145
1,588,169
560,510
1,225,745
398,200
495,234
1,342,282
124,281
374,466
184,171
298,340
769,760
$1,498,956
6,668,474
636,050
3,122,756
501,156
909,870
1,577,130
563,647
171,142
450,646
344,273
1,641,107
Total
720
1,149
7,984,760
18,085,207
$623,002
968
FEDERAL RESERVE BULLETIN.
FIRST 3} PER CENT BONDS, DUE 1947—Continued.
Lost and Recovered Liberty Bonds.
Following is a list of lost and stolen Libertybonds furnished this month to the American
Bankers' Association.
If any of these bonds or coupons are presented, banks should write, telephone, or telegraph, collect, to L. W. Gammon, manager
protective department American Bankers'
Association, No. 5 Nassau Street, New York
City.
FIRST 3£ PER CENT BONDS, DUE 1917.
Number
1514
1515
3314
12252
12298 ..
72796
79749
129806...
147033...
1484.07...
148408...
148409...
148410...
148411...
167348...
189843...
205165...
205806...
205607...
223012...
263835...
263836...
272670...
277544...
294064...
3230S2...
362865...
368760...
371395...
379135...
381229...
381231.. 381232...
381233...
381241...
398607...
412084...
412285 -. 460124:..
465493...
474746...
478872...
483400...
536892...
540836...
562865...
569644...
569645...
569646...
627573...
634144...
652781...
659581...
690135...
697272...
697273...
726682...
738138...
741762...
741763...
768228...
807579...
812056...
812057...
812058...
812059...
833422...
Amount.
§50
50
50
50
Number.
853646
863295...
864988...
865102...
872224...
50 877858...
50 877859...
50 892879...
50 898951...
50 906261...
50 961108...
50 967175...
50 1005482..
50 1005483..
50 1005484..
50 1007746..
50 1007760..
50 1020175..
50 1037960..
50 1093800..
50 1097337..
50 1097359..
50 1099949..
50 1127288..
50 1182649..
50 1194845..
50 1219638..
50 1241623..
50 1244581..
50 1256008..
50 1256009..
50 1269636..
50 1269637..
50 1270924..
50 1305737..
50 1325485..
50 1353601..
50 1360660..
50 1360601...
50 | 1360662..
50 1360663..
50 1360664..
50 1373761
50 1385689..
50 1385690..
50 1385691
50 1385692..
50 1385693..
50 1 1385694..
50 : 1385695..
50 1385696..
50 . 1385897..
50 i 1385898..
50 i 1385699..
50 i 1385700..
50 ! 1385701..
50 ! 1385702..
50 ! 1385703..
50 | 1385704..
50 i 1385705..
50 i 1385706..
50 ! 1385707..
50 I 1385708..
50 1385709..
50 1404562..
50 1410410..
50 1425045..
A m o u n t . 1 Number.
850
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
1434919...
145,7300...
1444429...
1504830
1510602
1525232
1525233
1565639....
1565640....
1575326....
1576534....
1608676....
1622150....
1627474....
1636042....
1644758...1644759..-.
1654266..-1656725...167S358...
1758892....
1763264...
1763265...
1857639...
1914719...
1916168...
1916169....
1929145....
2078030....
2100662....
2181625...
2844811...
2850688....
3125901...
3125902....
3125903...
3889674....
3865431....
3865432...
4961859...
2136
2186
10717
10718
12298
28414
28415
28416
91270
109664....
112341....
116029....
116030....
117486....
117487....
117488....
117*489....
117490....
117518....
117519....
140140....
140141....
140142....
140143....
140144....
140833....
150449....
OCTOBER 1,1918.
Number.
151467....
152233....
158238....
167340....
167341....
167342....
167343....
167344....
167345....
167345....
167347....
167349....
183519....
183520....
222971...
223977...
22S978...
Amoim
228979...
228980...
229051...
$50 229102...
50 239625...
50 i 243496...
50 j 243497...
50 ' 243498...
50 243499...
50 244119...
50 318875...
50 341447...
50 368965...
50 380057...
50 380058...
50 382392...
50 382393...
5()I 382394...
50 i 460498...
50 I 466882...
50 469261...
50 491205...
50 530325...
50 554598...
5(J 554599...
50 554600...
5u 554801...
50 554602...
50 5 6 7 7 1 7 . . .
50 5S8500...
50 ! 597182...
50 ! 610430...
50 610431...
50 634999. .
50 675887...
50 675888...
50 675S89...
50 675890...
50 675891...
50 675907...
50 675908...
50 675909...
50 675910...
100 ! 675011...
100 695104...
100 695996...
100 • 695997...
100 : 695998...
100 710786...
100 748389...
100 748390...
100 • 749740...
100 755458...
100 785414...
100 79513;)...
100 832036...
100 847794...
100 : 853433...
100 865511...
100 ;
100 892027...
100 8Q2042...
100 ! 905958...
100 i 918644...
100 !i 923948...
100, ; 923949...
100I 923950..
100I | 923951...
100 923952..
100
Amount.
$100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Number.
923953....
923954....
923955....
923956....
923957....
923958....
923959....
923960...
923961....
923962....
923963....
923964....
923965....
923966....
923967....
945052....
954797....
958292....
958900....
972308....
972309....
1007817..
1007818..
1022545..
1022546..
1022547..
1022548..
1022549..
1042057..
1046426..
1050951..
1061774..
1092185..
1093672..
1093673..
1093674..
1124039..
1124040..
1127863..
1153123..
1159040..
1159041..
1169447..
1169448..
1220321..
1237133..
1240802..
1240803..
1240804..
1296569..
1305737..
1378897..
1379f>98..
1379769..
1381626..
1698662..
2589616..
2589617..
2589618..
24801....
24802....
24803....
24804....
24805....
24806....
24807....
24808....
24809....
24810....
24811....
•24812....
24813....
24814....
24815....
24816....
24817....
24818....
24819....
24820....
24821....
24822....
24823....
35582....
35583....
42187....
Amount.
Number.
$100 53053....
100 53054....
100 53055....
100 53056....
100 53057....
100 53058....
100 53059....
100 53060....
100 53061....
100 53062....
100 63038...,
100 75783....
100 78749....
100 79697....
100 129063..
100 129064..
100 129065..
100 129066..
100 134655..
100 137264..
100 II 147966..
ioo |i 147967..
100 I 150706..
100 ! 152233..
100 182967..
100 182968..
100 182969..
100 182970..
100 195760..
100 281303..
10.0 281304..
100 890037..
ioo ; 211955..
100 I 211956..
100 211957..
100 211958..
100 211959..
100 211960..
100 211961..
100 212081..
100 246519..
100 246520..
100 278697..
100 278698..
100 278699..
100 307130..
100 307131..
100 307132..
100 307133..
100 310121..
100 310122..
100 362255..
100 382236..
100 446311..
100 634114..
100 634115..
100 634116..
100 634117..
100 634118..
500 634119..
500 634120..
500 634121..
500 634122..
500 634123..
500 634124..
500 634125..
500 634126..
500 634127..
500 634128..
500 634129..
500 634130..
500 634131..
500 634132..
500 634133..
500 639811..
500 639812..
500 639813..
500 639814.
500 639815.
500 639816.
500 639817.
500 639818.
500
500 639820...
500
500
mount.
$500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
500
5Oo
500
500
500
500
500
500
500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1.000
SECOND 4 PER CENT BONDS, DUE 1942—Continued.
FIRST 4 PER CENT CONVERTED BONDS, DUE 1947.
Number
Amount.
Number.
Amount.
$50 1034646
50 1142219
50 1147418
50 . 1147419
50j 1167375
50 | 1191981
50 i 1191982
50 | 1219638
50 127(5590
50 I! 1354376
50 I" 1357013
50 | 1386087
50 1386088
50 1386089
50 1472635
50 1508624
50 1611511
50 1620216....
50 1626211
50 1841114
50 1859417
50 1874702
50 1881134
50 1942306
50 1942307
50 1950218
50 1939916
50 3482287
50 3482288
50 3482289
50 6967697
50 57931 ...
50 325682
50 139195
50 152252
50 215986
50 215987
50 215988
50 224568
50 283444
50 333776
28150.
46532.
57931.
65979.
133460.
133461,
145824.
171375
212066
233460
303338
350797
39499.5.
406382
418448
605202
717285.
735974.
735975.
768278.
770449.
795482.
822990.
876917.
876918.
876919.
876920.
876921.
876923.
876924.
876927...
876928...
921025...
921027...
962965...
967169...
1012451...
§50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100
100
100
100
100
100
•100
100
100
Number.
786881.
801942.
801943.
801944.
1084586
1261309
49157..
72314..
88486..
95553..
131414.
180105.
62244..
139196.
139197.
139198.
139199.
139200.
139201.
139202.
SECOND 4 PER CENT BONDS, DUE 1942.
11332...
12415...
17459...
17460...
20712...
24858...
79787...
97432...
99126...
99127...
101894..
111172..
116889..
124350..
125571..
149377..
157140..
157617..
157625..
160400..
162719..
198579..
200612..
211100..
229646..
24U98..
250160..
256818..
261512..
261513..
261514..
288030..
288094..
293538..
294546..
294547..
294548..
326070..
326071..
329113..
340441.. ..I
969
FEDERAL EESERVE BULLETIN.
OCTOBER 1,1918.
355755
370442
382543
i 382544
! 391959
| 434160
I 435964
435965
! 436395
442746
483424
483425
490902.
5 0 • 494473.
50 : 508777.
50 525086.
50 525769.
50 530081.
50 541860.
50 551116.
50 551812.
50 : 551813.
50 j 551814.
50 551815
50 551816
50 551817
50 551818
50 551819
50 551820
50 551821
50 553889
50 559157
50 560836
50 587493
50 571745
50 578468
50 580939
50 600196
50 620221
50 620223
50 627038
$50
50
50
50
50
50
50
50
50
50
50
50
50
II
|
j
1
!
$50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
638855..
639857..
640352..
652721..
678280..
716594..
734318..
734319..
734320..
734321..
734322..
744074..
764788..
761789..
767986..
790015..
793709..
793710..
793711..
798293..
798299..
800221..
805075..
806674..
806739..
806811..
844930..
844931..
844932..
844933..
844934..
844935..
844936..
874496..
937730..
937731..
981.837..
1011332.
1020748.
1025190.
1027757.
§50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
1027758....
1027759....
1027760....
1027761....
1094269
1109200....
1113852....
1126691....
1126602 ..
1147031
1180512
120:5665....
1209460....
1238372....
12-10236....
1240237....
1243279
1279243
1284626
1305737
1312334
1313270
1313271
1318883
1319000
1325133
1325134
1325135
1325901
1325902
1325903
1381101
1381102
1381103
1411285
1421007
1421130
1425300
1512035
1512036
1541313
1563007
1577015
1629363
1629364
1629365
1629366
1629367
1666881
1670473
1771975
1771976
1801893
1801894
1820013
1821915
1823789
1825985
1847685
1855637
1855638
1862757
1871956
1881927
1912023
1913188
1955565
1955566
2008896
2046405
2055510
2056161
2061050
Amount.
550
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
.50
50
50
50
50
50
50
50
Number.
2061051
2061052
2128501
2150140
2L95695
2205092
2205093
2205096
2205097
2214922
2254355
2301446
2385148
2411548
2411549
2411558
2411953
2411954
2411955
2440721
2440722
2441308
2441309
2441548
2471808
2651093
2651094
2720086
2733475
2814847
2850688
3150387
3357912
3357913
3357914
3482287
3482288
3482280
3570042
3723034
3956431
3973390
4090132
4090133
4132527
4368428
4598053
5207184
5207982
5256644
5256653
5346115
5375344
5401134
5401135
5465468
5743716
5743717
5743718
5743719
6684917
6799402
7475844
7626011
99313
116872
116873
116874
116875
116876
116877
116878
199540
Number.
Amount.
S50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
50
100
100
100
100
100
100
100
100
100
$100
199541....250378
100
279846..
100
358428..
100
3889J3..
100
586570..
100
586571
100
659006
100
659067
100
100
760266
1035539....
100
1102485
100
1183982
100
1308321
100
1308334....
100
1361960
100
1436402
100
1436403
100
1548675
100
100
17201SI
1806059
100
1877624
100
1877630....
100
2010738....
100
100
2010739
2282210
100
22S2211
100
2282212....
100
2589616
100
2589617
100
2589618
100
261.9119.
100
2643073.
100
2704.446.
100
2798846.
100
3083S04..
100
3216177.
100
3216178..
100
3283978..
100
3500657..
100
3500658..
100
3500659..
100
3500660..
100
3540750..
100
100
3606564..
36S8102..
100
4286951..
100
100
4290320.. '.".
4290321
100
4290322
100
4290323
100
! 10267
•
500
j 10268
500
500
1 10269
500
! 10270..
500
133673
500
: 321196..
500
381465..
500
381466.. !!i
381467.. ..;
ooo
500
381468..
500
435407..
500
435408.. I'.
435409
500
444021
500
474766
500
605919
500
908433
i 1,000
1304053
1,000
! 1304054
1,000
1605363
1,000
i
THIRD 4J PER CENT BONDS, DUE 1928.
14488....
263166...
293982...
326240...
456590...
456603...
456604...
552005...
550
50
50
50
50
50
50
50
50
633583
656194
705913
705914
835407
835408
1222424
1222425
1222426
Amount.
$50 1222427...
50 1222428...
50 1286366...
50 1479123...
50 ;: 1485531...
50 1507276...
50 1541238...
50 1680124...
50 : 1771894...
970
7729125....
Number.
$50 7822592
50 8201450
50 8459339
50 -,8789067
50 9270011
50 i 9934918
50 129400
50 118315
50 ; 148316 .
50 289207
50 1196318
50 1196319
50 1196320
50 1196321
50 1196322
50 1219970
50 1339758
50 1352460
50 1355982
50 1413665
50 158(5009
50 1586010
50 1665709
50 1665710
50 1795514
50 1843195
50 1926693
50 2006013
50 2239152
50 2239153
50 2420726
50 2527873
50 2677878
50 2815S37
50 3016364.
50 3016365
Amount.
Number.
$50 3975532..
50 4121174..
50 4934226..
50 4934227..
50 4934228..
50 4934229..,
100 4982708..
100 4982709..
100 5017028..
100
100 | 6491027...
100 6570831...
100 6570S32...
100 6570834...
100 6570839...
100 86821
100 111061....
100 142837....
100 198835....
100 ! 198839....
100 198882....
100 205118....
100 260818....
100 285718....
100 336392....
100 664421....
100 706462....
100 74386..
100 85875..
100 335256
100 356958
100 480726...,
100 480727....
100 946486...,
100 919732...
100 1306178..
Amount.
$100
100
100
100
100
100
100
100 !
100 I
100 |
100 I.
100 i
100
100
100
500
500
500
500
500
500
500
500
500
500
500
500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
FIRST 3& PER CENT BONDS DUE 1947.
Number.
Amount.
148407
148408
148409 .
148410
148411
$50
50
50
50
50
Number.
Amount.
263835
263836
478872
807579
1654266
$50
50
50
50
50
Number.
Amount.
3865431....
10717
109664
151467 ...
890037
$50
100
100
100
500
[FIRST 4 PER CENT BONDS CONVERTED DUE 1947.
$50
876917
876918
876923
876924
350
876925
876926
876927..
876928
ggg
1771895
1777759
1777760
1936612
1936613
2001037
2255570
2682961
2682962
2826966
2826967
2988021
3073529
3077085
3091776
3116809
3124928
3181009
3223613
3223614
3382137
3251153
3571458
3590794
4096557
5167038
5314393
6147896
6161331
6198361
6309358
6341699
6341700-...
6492806....
7400551....
Amount.
Below is a list of lost and stolen Liberty
bonds, which have been recovered and returned to their proper owners:
ggg
THIRD 4J PER CENT BONDS, DUE 1928—Continued.
Number.
OCTOBEB 1, 1918.
FEDERAL RESERVE BULLETIN.
921026.. ..
921027
1611511
1979916
$50
50
50
50
SECOND 4 PER CENT BONDS DUE 1942.
1577015....
1629363.... •
1629364....
1629365....
1629366....
1629367....
2254355....
$50 3150387
50 3723034
50 4132527....
50 6799402....
50 7475844....
50 99313 ....
50 250378
$50
50
50
50
50
100
100
279846
586570
586571
1806059
2704446
474766
$100
100
100
100
100
500
THIRD 4i PER CENT BONDS DUE 1928.
3382137
3198361
1586009
$50
50
100
1586010
2239152
2239153
!
1
1
$100
100
100
$500
971
PEDEBAL RESERVE BULLETIN.
OCTOBER 1,1918.
INFORMAL RULINGS OF THE BOARD.
Below are reproduced letters sent out from
time to time over the signatures of the officers
or members of the Federal Reserve Board
which contain information believed to be of
general interest to Federal Reserve Banks and
member banks of the system:
Eligibility of farmers' notes given for purchase of silos.
(To an individual.)
Referring to your letter of the 12th instant,
inquiring as to the eligibility for rediscount of
farmers' notes given for the purchase of silos,
I wish to advise that in the opinion of the
Board silos are considered to be permanent or
fixed improvements, and it would require a
forced construction of the act to treat paper
of this kind as eligible for rediscount as agricultural paper.
SEPTEMBER 21,
1918.
Eligibility of chain of banks for membership.
(To aSFedoral Roserve agent.)
Trade acceptance.
(To an individual.)
Your letter of August 27, requesting certain
information in regard to trade acceptances, has
been received.
The first question submitted by you reads
as follows:
"When the trade acceptance has been accepted by the person on whom it is drawn,
does it become an order on the bank at which
it is payable to pay the amount involved at
maturity date, or does it merely authorize the
bank to make payment if it so desires ?"
Section 87 of the negotiable instruments act
reads as follows:
" Where the instrument is made payable at
a bank it is equivalent to an order to the bank
to pay the same for the account of the principal debtor thereon."
The negotiable instruments law has been
adopted in all of the States of the Union except
California, Georgia, Maine, Mississippi, and
Texas, but in Illinois, Nebraska, and South
Dakota this section was omitted, and in Minnesota the word "not" is interpolated, so that
the section reads " shall not be equivalent,
etc." In Illinois it has been held that when a
note is made payable at a particular bank or
banker's, the bank or banker has no authority
to apply the funds of the maker to pay the
note at maturity without being so ordered by
him verbally or by check or draft or other
writing, although the maker may have funds
there on deposit sufficient to pay it. (Wood v.
Merchants Savings, etc., Co., 41 111., 247.)
Your letter also raises the question whether
you would be permitted to discount a trade
acceptance having a definite maturity of one
year made to cover certain machines bought
from you and which the purchaser found necessary to carry over to the next season. You
are advised that neither notes nor acceptances
having maturity in excess of 90 days can be
discounted with Federal Reserve Banks.
Receipt is acknowledged of your letter of the
15th, inclosing letter from the vice president of
the
Bank, in which the following question is submitted for a ruling:
" Would a chain of banks having a capital of
say, $100,000 be eligible for membership, and
this membership extend to all its branches, or
would it be necessary to have sufficient capital
to cover the membership in each town as required by an individual bank?"
In reply you are advised that counsel is of
the opinion that if each bank composing the
chain referred to is a separate corporation, it
will be necessary for each to file separate application and to have sufficient capital to entitle
it to become a national bank in the place in
which its business is conducted. On the other
SEPTEMBER 9, 1918.
hand, if there is one corporation, with branches
in other cities or towns, it will be sufficient if
the capital of the parent bank is sufficient to Custody of shipping documents or warehouse receipts.
(From and to an individual.)
entitle it to become a national bank in the place
in which its head office is located.
Section 13 of the Federal Reserve act provides in part that "any member bank may
AUGUST 23, 1918.
972
FEDERAL RESERVE BULLETIN.
accept drafts * * * drawn upon it * * *
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."
A depositor of this bank purchases from
time to time cotton seed at various points in
the South and at the time of purchase orders
shipment to his mills in that section. He
desires to finance these shipments by acceptances to be drawn on us under the above section of the Federal Reserve act. On account
of the location of the mills, it is not feasible to
send the bills of lading to New York City and
have them returned in time to obtain timely
delivery of the goods.
Our client suggests that he will hand the
bills of lading, on the day the draft is presented to us for acceptance, to our correspondent in the South, who would certify to
us by letter or telegram that they are holding
such bills of lading for our account.
This seems to comply with the spirit of the
law, but we would like the ruling of the Federal
Reserve Board before undertaking this business.
SEPTEMBER 7,
1918.
Your letter of the 7th instant was duly received and the question raised was referred to
counsel, with whom the Board agrees in the
opinion that "it is entirely consistent with the
purposes of the act and a sufficient compliance
with its terms if shipping documents are in
the possession of the bank and the bank has a
lien on the property represented by such documents at the time that such bill is accepted.
If placed in the possession of the bank's agent
and under the control of the bank such documents could clearly be considered as in the
possession of the bank. * * * There would
seem to be no greater reason for requiring shipping documents or warehouse receipts to be
physically attached or fastened to the bill than
there is for requiring other documents securing
such bill to be attached or fastened.7' Care
should, however, be taken that the documents
be held for account of the accepting bank by
a third party who is in no way interested in the
acceptance transaction. A trust receipt of the
party for whom the acceptance is made would
not be looked upon with favor by the Board.
SEPTEMBER 19,
1917.
OCTOBER 1,1918.
Revenue stamps on drafts drawn to finance sales of
goods to Allied Purchasing Commission. fH
|(To;;Federal^eserve Banks.) 1 j
The Board's attention has been called to the
fact that in some districts banks are requiring
revenue stamps to be affixed to drafts drawn
to finance sales of goods to the Allied Purchasing Commission, while in others this requirement is not enforced by the banks.
It is, of course, desirable that the practice
should be uniform. Attention is, therefore,
called to the ruling of the Commissioner of
Internal Revenue, published on page 614 of
the July, 1918, BULLETIN, which reads •' as
follows :
Referring to your letter of June 5 and my acknowledgment of June 10, it seems from Mr. Curtis's letter that under
credit agreements conforming with the regulations of the
Federal Reserve Board packers may draw bills of exchange
on domestic banks against sales of goods to the Allied
Purchasing Commission, such bills running for a period of
time covering approximately the transit of the shipment
from the interior point to the seaboard, where the goods
are taken on board ship for the ocean voyage at the convenience of the Allied Purchasing Commission.
In Win. E. Peck & Co. (Inc.) v. Lowe, decided in the
United States Supreme Court May 20, 1918, which held
that the income tax of 1913 was valid as applied to net
income derived from sales in foreign commerce, the court
has occasion to discuss the effect of the constitutional
prohibition against taxing articles exported, and it referred to and distinguished certain of its former decisions
on the subject. It concluded that when the tax is not
laid on the articles themselves while in course of exportation the true test of its validity is whether it so directly
and closely bears on the process of exporting as to be in
substance a tax on the exportation. In the present circumstances it can probably fairly be said that the tax on
the drafts, although they are to be paid before the actual
ocean voyage begins, bears so directly and closely on the
process of exporting as to be in substance a tax on it.
The goods are doubtless "in course of exportation" from
the time the first carrier receives them.
The same principle would seem to apply as in the case
of the transportation tax. In article 31 of Regulations
No. 42 rules for determining when property may be
deemed to be in the course of exportation are laid down,
and apparently the present situation is within their scope.
It is accordingly held that the stamp tax imposed by
subdivision 6 of schedule A of Title VIII of the act of
October 3, 1917, does not attach to drafts on domestic
banks in connection with the shipment of articles from
the interior to the seaboard, where such articles have been
sold to the United States agent of a foreign purchaser for
export under circumstances entitling the transportation
within the United States to exemption from the transportation tax.
SEPTEMBER 16, 1918.
OCTOBER 1, 1918.
FEDERAL RESERVE BULLETIN.
973
RULINGS OF THE DIVISION OP FOREIGN EXCHANGE.
Following are formal and informal rulings
made by the Federal Reserve Board, Division of Foreign Exchange, under Executive
Order of January 26, 1918, and subsequent
to the issuance of "Instructions to Dealers77
of January 26, 1918. The terms "person,"
"dealer/ 7 "correspondent,'7 "customer,77 and
such other terms as have a special meaning, are
used in these rulings as prescribed in the
Executive Order above.
Cotton brokers.
$5,000, customs authorities have been requested to advise
the Federal Reserve Bank of their district, in writing, the
names of the beneficiaries and the banks issuing the
credits.
APRIL 25,
1918.
Securities purchased in the open market.
In the case of securities purchased by dealers in the open
market in the United States since February 20, 1918, for
account of their foreign correspondents, Form F. E. 113
need not be executed in connection therewith unless
otherwise instructed, provided such foreign correspondents
have signed Form F. E. 114.
MAY 22, 1918.
Shipment of securities from the United States.
Dealers shipping securities out of the country should
imprint their censorship stamp on the package containing
the securities when sent t by mail or express. No special
license from a Federal Reserve Bank ia required in this
connection, but proper declarations on Form F. E. 113
should be forwarded to the Division of Foreign Exchange,
Federal Reserve Board, 15 Wall Street, New York City,
with a report showing the changes in securities held.
j Persons not holding registration certificates who desire
MARCH 14, 1918.
to send securities out of the United States, must advise
Transactions in foreign exchange by banks through the Federal Reserve Bank in their district of the detail of
domestic correspondents.
the transaction, and must accompany such advice with
Banking institutions which come under this heading will declaration on Form F. E. 113, and must obtain from the
be obliged to take out class A registration certificates, but Federal Reserve Bank a license authorizing the shipment.
will not be required to make reports to the Federal ReIn all cases where shipments of securities do not bear
serve Board, until otherwise instructed.
the imprint of the U. S. F. R. B. stamp, customs officers
FEBRUARY 11, 1918.
and post-office officials are instructed to require special
Banks which do all of their foreign exchange business licenses from a Federal Reserve Bank.
MAY 25, 1918.
through their domestic correspondents, and do not draw
foreign exchange against the accounts of such correspond- Foreign exchange credits.
ents, are customers.
Until otherwise instructed, foreign correspondents
MARCH 29, 1918.
which have filed declarations on Form F. E. 114, when
drawing drafts directly upon, or making deposits directly
Foreign dividend checks.
Beneficiaries of foreign dividend checks are obliged to with, a dealer in the United States, are not required to
execute the regular customers' statement when deposit- file information otherwise required with foreign exchange
ing such checks with their banks in the United States. credits.
The order with regard to credits from foreign correspondAPRIL 2, 1918.
ents is particularly aimed to cover transactions made
Travelers carrying letters of credit and travelers' checks. through third parties, and does not refer at all to checks
Travelers leaving the country and carrying upon their which may be drawn against deposit accounts, except
porson or in their baggage travelers' checks and letters when such checks are themselves used as a means of credit
of credit are not required by the customs authorities to to another foreign account.
have special licenses. When such letters of credit exceed
JULY 6, 1918.
83463—18
8
Cotton brokers do not require registration certificate?
unless they carry balances abroad or carry balances in
this country for foreign correspondents.
Cotton brokers who may be carrying small balances on
their books with foreign correspondents to provide for
slight variations in shipping and receiving weights, until
otherwise instructed need not take out registration certificates, provided such balances are not used to check
974
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
LAW DEPARTMENT.
In the case under consideration, however, if
The following opinions of counsel have been
the
railroad company, as the purchaser of a
authorized for publication by the Board since
commodity,
accepts the draft of the seller and
the last edition of the BULLETIN :
the seller or a third party to whom the draft is
sold in good faith discounts it with a member
Rediscount of draft for railroad supplies.
bank, such a draft would seem to comply with
Where a railroad company purchasing supplies accepts the regulations of the Board defining trade
the draft of the seller and the seller or a third party to acceptances and would be eligible for rediswhom the draft is sold in good faith discounts it with a count with a Federal Reserve Bank.
member bank, such draft is eligible for rediscount with a
Respectfully,
Federal Reserve Bank.
M. C. ELLIOTT, Counsel.
AUGUST 14, 1918.
To Hon. W. P. G. HARDING,
SIR: This office has been requested to conGovernor, Federal Reserve Board.
sider the question whether a draft drawn by a
railroad company for the purchase price of
supplies or other material and accepted by the
railroad company may be discounted as a Trade acceptances as bills of exchange drawn against
actually existing values.
trade acceptance by a member bank, and
whether such acceptance would be eligible for A trade acceptance may or may not be classified as a
rediscount with a Federal Reserve Bank.
bill of exchange drawn against actually existing values.
National banks are authorized under section The distinction is not important in so far as the limita5136, "Revised Statutes, to discount and nego- tions of section 5200 are concerned, since such a trade actiate "promissory notes, drafts, 7 bills of ceptance negotiated in good faith by the bona fide owner
exchange and other evidence of debt. '
would be exempt from the limitations of section 5200 as
There would seem to be no question, there- "commercial or business paper actually owned by the
fore, of the right of a national bank to discount person negotiating the same,'' even if it is not exempt as
such an acceptance as a bill of exchange or a "bill of exchange drawn in good faith against actually
evidence of debt. Whether or not such an existing values."
acceptance would be eligible for rediscount Section 13 of the Federal Reserve Act, however, limits
under the provisions of section 13 of the Federal the amount of paper of any one borrower rediscounted for
Reserve Act would depend upon whether the any one bank to ]0 per cent of such bank's capital and
proceeds of the discount were to be used for surplus; and trade acceptances axe subject to this limitaan agricultural, industrial, or commercial pur- tion, unless they can be classified as "bills of exchange
pose/ This would seem to depend upon drawn against actually existing values."
whether the acceptance is discounted by the Bills drawn by the seller against the purchaser and acacceptor or by the bona fide owner. If dis- cepted before the sale or delivery of the goods should not
counted by the acceptor, the railroad com- be treated as bills drawn against actually existing values,
pany, it would constitute a direct loan to the since such goods are not in the possession of the drawee
railroad company, and the question would either in the original form or in the shape of the proceedsthen arise whether the railroad company had of their sale; except where the goods have passed out of
used the proceeds for a commercial purpose, or the possession of the drawer and have been placed in storfor permanent or fixed investmentsf In a age subject to the control or order of the drawee.
broad general sense the use of the proceeds to
AUGUST 21, 1918.
purchase supplies might be said to constitute
a commercial purpose, but if this test should
SIR: In the accompanying letter it is stated
be adopted paper which does not conform to the that in a recent issue of the BULLETIN there apregulations of the Board might be treated as peared the following ruling:
eligible. To illustrate by an extreme case, the
"Only those trade acceptances which are
customer of a bank might execute his note drawn at the time of, or within a reasonable
using the proceeds to purchase a house and time after, the shipment or delivery of goods
this purchase might be treated as a commercial sold can be treated as bills of exchange drawn
transaction. It is, of course, obvious that against actually existing values."
such an interpretation is not consistent with
I have not been able to locate this exact
the spirit and purposes of the act.
language in the ruling of the Board, but in sub-
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
975
stance it is in accord with an opinion approved ! The distinction is not important in so far as
by the Board and published on page 195 of the | the limitations of section 5200 are concerned,
March, 1917, BULLETIN.
*
| since such a trade acceptance negotiated in
In this opinion the conclusion is reached i good faith by the bona fide owner would be
that "An accepted bill of exchange unaccom- \ exempt from the limitations of section 5200
panied by shipping documents or other such ' as "commercial or business paper actually
papers, may be considered as drawn against j owned by the person negotiating the same,"
actually existing values, if drawn against the even if it were not exempt as a "bill of exdrawee at the time of, or within a reasonable change drawn in good faith against actually
time after, the shipment or delivery of the existing value.55
goods sold."
! Of course, if such an acceptance were disIn this latter case there must be reasonable ; counted by the acceptor and not by the owner,
grounds to believe that the goods are in exist- j it would be subject to the limitations of secence in the hands of the drawee either in their ! tion 5200, since in that case the loan would
original form or in the shape of the proceeds of; be made to the party primarily liable on the
their sale.
j bill and not to the owner of the bill.
It appears from the accompanying letter that
The distinction in question becomes importhe significance and purpose of this ruling has tant, however, when such trade acceptances
apparently been misunderstood by some of ! are offered for rediscount to a Federal Reserve
those interested in the development of the trade : Bank. Section 13, Federal Eeserve Act, proacceptance and some confusion of thought seems j vides in part that—
to have developed as to the distinction between j T h e a g g i ; g a t e of Sl]ch notes and bills bearing the signaa trade acceptance, withm the meaning ot j ture or indorsement of any one borrower, whether a person,
in the meaning of section 5200, Revised Stat- shall not apply to the discount of bills of exchange drawn
utes, and section 13 of the Federal Eeserve Act. in good faith against'actually existing value.
this limitation, and unless a trade acceptance
offered for rediscount could be classified as a
But the discount of bills of exchange drawn in good "bill of exchange drawn against actually existfaith against actually existing values, and the discount of ing value" it would necessarily be subject to
commercial or business paper actually owned by the
person negotiating the same, shall not be considered as this limitation.
money borrowed.
The question has also been raised whether
A trade acceptance may or may not be das- : b i l l f drawn by the seller against the purchaser
sified as a bill of exchange drawn against ac- ! ana accepted before the sale or delivery of the
tually existing value.
~
i goods may be treated as bills drawn against
If "it'is drawn at the time of or within a ! actually
exis ting value.
reasonable time after the sale and delivery of n o lt nb ethe
opinion
of tms office, such bills should
so
the goods, when there is reason to believe
treated, since tne goods are not in the
that the goods are in the possession of the pur- f possession
of the drawee, either m the original
chaser, either in their original form or in the s ou rc mb o r m tl\e shape of the proceeds of sale of
shape of the proceeds of sale, it may be treated
goods.
as a bill of exchange drawn against actually j n The
seller nas not in such case furnished to
* e ppurchaser the value out of winch the draft
existing
isting value.
b
id t
t i t
On the other hand, if a bill is drawn for the . may be
paid situation
at maturity.
ifferent
would, of course, be prepurchase price of goods sold, in order to convert a balance carried on open account into a sented it the goods had passed out ot the
negotiable instrument, such a bin, when ac- i possession of the drawer and had been placed
cepted, might comply with the Board's defini- j in storage subject to the control or order of the
tion of a trade acceptance, but could not be \ drawee,
treated as bill of exchange drawn against i
Kespecttully,
M. C. ELLIOTT,^Counsel.
existing value, unless drawn within a reasonTo Hon. W. P. G. HARDING,
able time after the sale and delivery of the
goods.
Governor, Federal Reserve Board.
contains the following proviso:
976
Acceptance of drafts of Food Administration Grain Corporation.
The Federal Keserve Board has authority to permit
member banks to accept drafts of the Food Administration
Grain Corporation secured by some form of receipt or notation on the draft itself, signed by a trustee holding warehouse receipts covering grain stored in warehouses, identifying it as a draft secured by the grain stored.
SEPTEMBER 16,
1918.
SIR: From the accompanying letter it appears that the Food Administration Grain Corporation proposes to purchase large quantities
of this year's crop of grain and to store a considerable portion of their purchases in various
grain elevators or warehouses, one of the main
objects being to conserve from this year's crop
a surplus against a possible shortage next year.
The corporation desires to finance this grain
in part by means of bankers' acceptances and
has asked for a ruling of the Board on the eligibility of acceptances made by banks under the
following conditions:
1. If the accepting, bank is not secured by
a warehouse receipt or other such document
conveying or securing title to the grain.
2. If the various warehouses receipts or other
such documents conveying or securing title to
the grain are lodged with a custodian who holds
tHem as security on behalf of the various accepting banks.
First. As this is a domestic transaction, the
Board is without authority to authorize a member bank to accept drafts drawn under this
credit unless the bank is secured at the time of
acceptance by warehouse receipt or other such
document conveying or securing title to the
grain. There is no discretion vested in the
Board to waive this specific requirement of the
statute.
Second. Following the precedent established
in the American Tobacco Co. credit, the Board
might permit the warehouse receipts to be delivered to a trustee or agent and to accept as a
similar document some form of receipt or some
notation on the draft itself, signed by the trustee, identifying it as one secured by the grain
stored.
The accompanying letter calls attention to
the fact that it is contemplated, however, that
the grain will be moved from time to time, and
for this reason it is impracticable to identify
collateral for the drafts. It does not appear
from the papers submitted just what procedure
is to be followed when this grain is moved.
The Board's regulations require that the commodities securing the drafts in such cases
OCTOBEB 1, 1918.
FEDERAL RESERVE BULLETIN.
should be placed in the custody of some person, firm, or corporation other than the
borrower. This regulation has been and should
be consistently enforced. If, therefore, the
plan of the Food Administration Corporation
is to be tentatively approved by the Board, it
should be made clear that the custodian
holding the collateral can not release such
collateral to the grain corporation except when
other satisfactory collateral is substituted, and
that the food corporation can not exercise
control over the grain while it is in storage.
Respectfully,
M. C. ELLIOTT, Counsel.
To Hon. W. P. G. HARDING,
Governor, Federal Reserve Board.
Drafts growing out of transactions involving the importation or exportation of goods.
Drafts drawn under an agreement whereby the drawer
agrees to manufacture and import into the United States
in time to meet the maturity of such drafts certain products
which shall have been sold by the shipper and are to be
ready for immediate delivery and consigned to a firm of
bankers procuring the acceptance of such drafts for the
drawer are not eligible for acceptance by member banks;
since they do not grow out of "transactions involving the
importation or exportation of goods " within the meaning
of section 13 of the Federal Keserve Act.
SEPTEMBER 16,
1913.
SIR: It appears that a certain products
company desires to arrange through a firm of
private bankers, with certain member banks
to accept drafts of the products company having 90 days maturity and to agree to three
renewals of 97 days each, thus extending the
credit for one year.
The question arises whether such drafts may
be treated as "growing out of transactions
involving the importation or exportation of
goods" within the meaning of section 13 of the
Federal Reserve Act.
According to the papers submitted the
products company proposes to enter into an
agreement with the private bankers to pay
these bankers a commission for procuring the
acceptance of certain member banks of drafts
drawn by the products company. If this
credit can be arranged the products company
agrees with the private bankers to obtain title
to and consign to such bankers or their agents,
when manufactured and shipping facilities
become available, quebracho extract and meat
products in an amount of which 50 per cent
OCTOBER 1,1918.
of the proceeds thereof will suffice to fully cover
all drafts drawn and outstanding under the
agreement.
The products company apparently owns
certain forests and pastures in South America
and desires these funds for the purpose of
cutting down trees and manufacturing the
bark into quebracho extract and for the purpose of purchasing, fattening, and shipping
cattle. In other words, the substance of this
agreement is that if the banks will accept these
drafts at the instance of the private bankers
and that the bankers will arrange to sell such
acceptances and turn over the proceeds to the
products company, the products company
agrees to produce or purchase and to consign
to such bankers "in time to meet the maturity
of each draft or its agreed renewals sufficient
merchandise to equal twice the amount of the
draft."
The products company further agrees that
" the goods shall all have been sold by the shipper at the time of arrival for immediate delivery."
Without going into other details of the
agreement the question is presented whether
drafts drawn under these circumstances can be
said to grow out of transactions involving the
importation of goods.
The language of the statute is broad and has
been given a liberal construction by the Board.
From the facts submitted in this case I am of
the opinion, however, that the Board would
not be justified in approving the acceptance by
a member bank of the drafts in question. It
is obvious that the products company desires
to borrow money with which to carry on its
operations in South America, and in consideration of a loan being made to that company it is
agreed that at some future time it will manufacture and import into the United States
quebracho extract and meat products.
If the Board should rule that drafts drawn
under these circumstances could be treated
as drawn "in a transaction involving the
importation of goods/' it would follow that
a domestic corporation engaged in business in
the United States might in any case arrange
for member banks to accept its drafts upon
executing an agreement that it would use the
proceeds to manufacture or purchase goods
intended ultimately for export.
It is, of course, obvious that if this ruling is
adopted the requirement of the statute that
such drafts should grow out of transactions
involving the exportation or importation of
goods would have little meaning.
977
FEDERAL RESERVE BULLETIN.
The Board's regulations require that the
person for whom the draft is accepted must
have " a definite bona fide contract for the
shipment of the goods involved within a
specified and reasonable time." The present
case does not meet this requirement. To
modify or relax this requirement would be to
establish a very dangerous precedent. It is
no doubt true that the products to be imported
are very necessary and that it is desirable
from the standpoint of public interest that
some arrangement should be made to finance
the transaction involved, but in the opinion of
this office the drafts in question could not
consistently be classified as having been drawn
in a transaction involving the importation of
goods within the meaning of that language as
used in section 13, and in the absence of shipping documents and warehouse receipts securing such drafts they could not be accepted as
drawn in a domestic transaction.
Respectfully,
M. C. ELLIOTT, Counsel,
To Hon. W. P. G. HARDING,
Governor, Federal Reserve Board.
Stamp tax on trade acceptances.
The following ruling has been made by the
Deputy Commissioner of Internal Revenue as
to who should affix the revenue stamps to trade
acceptances:
TREASURY DEPARTMENT,
Washington, September 13, 1918,
GENTLEMEN: Answering your letter of the 27th ultimo
received by reference from the Federal Reserve Board,
you are advised that the drawer, as the person " who makes,
signs, or issues " a trade acceptance, should affix and cancel
stamps covering the tax required thereon under subdivision 6, schedule A, act of October 3, 1917.
There is nothing in the law, however, that would prevent
the acceptor from affixing the requisite stamps to a trade
acceptance and agreeing with the drawer of the draft as to
which of the parties would ultimately bear the expense.
Respectfully,
B. C. KEITH, Deputy Commissioner.
Stamp tax on promissory notes.
The following ruling as to the taxability of
renewals of promissory notes under the act of
October 3, 1917, has been rendered by the
Solicitor of Internal Revenue:
TREASURY DEPARTMENT,
Washington, September 17, 1918.
DEAR SIR: Replying to your inquiry of the 30th ultimo,
with respect to the application of the stamp tax imposed
by the act of October 3, 1917, upon promissory notes, to
978
FEDERAL RESERVE BULLETIN.
promissory notes renewed by indorsements, there are
inclosed herewith two copies of T. D. 2265. This decision
was issued under the act of October 22, 1914, but the rule
laid down therein is being applied to the existing statute.
Respectfully,
(Signed)
ARTHUR A. BALLANTINE,
Solicitor of Internal Revenue.
(T. D. 2265.)
EMERGENCY REVENUE LAW.—RENEWALS OF PROMISSORY
NOTES.
OCTOBER 1,1918.
provides for the examination of such bank and
trust companies by the Federal authorities and
for the acceptance of such examinations by the
State authorities in lieu of those required under
the State law; and authorizes the State authorities to disclose to Federal authorities information as to the condition and affairs of State
banks and trust companies becoming members
of the Federal Reserve System.
The act reads, in part, as follows:
SECTION 1. Be it enacted by the General Assembly of
the State of Georgia, and it is hereby enacted by authority
of the same, that any bank or trust company organized
Washington, I). C, November 22, 1915. under the laws of this State which is or which becomes a
SIR: In response to your communication of the 16th member of a Federal Reserve Bank shall keep and maininstant, you are advised that a promissory note issued tain as a lawful reserve the same reserves as are required
prior to December 1, 1914, and renewed or extended after of other banks members of the Federal Reserve System,
that date would be taxable under the act of October 22, and a compliance by any such bank or trust company in
this State with the reserve requirements of the Federal
1914. (See T. D. 2170.)
Reserve Act shall be held to be a full compliance with the
With respect to what constitutes a renewal of a promis- provisions
of the laws of this State on the subject of bank
sory note, this office has made the following ruling:
and such bank or trust company shall not be
"A written agreement, either attached or unattached to reserves,
to carry reserves other than such, as are required
a promissory note, or in the1 form of an indorsement on the required
note, such as * Renewed or * Extended' to a certain under the terms of the Federal Reserve Act.
SEC. 2. Any bank or trust company chartered under the
date, evidencing payment and acceptance of interest in
advance to a time certain, subsequent to maturity, con- laws of this State and doing business therein which bestitutes a renewal of the note and is subject to tax as such comes a member of the Federal Reserve System shall be
subject to the examinations required under the terms of
under the above act."
On the other hand, part payment of a note after it has the Federal Reserve Act by the proper officers thereof, and
authorities of this State having supervision over such
become due, or payment of accrued interest after maturity, the
banks or trust companies may in their discretion accept
the note being allowed to run, and the holder neither such
in lieu of the examinations required
losing nor postponing his right of action, is merely in the underexaminations
the laws of this State; provided, that the fees for
nature of a forbearance, and is not taxable under said act examination
of banks under this act shall be paid to the
as a renewal.
^ • ,^ State bank examiner
as now required by the laws of this
Respectfully,
DAVID A. GATES, H>
Acting Commissioner of Internal Revenue. State.
SEC. 3. Be it further enacted that the authorities of this
State having supervision over such banks or trust companies may in their discretion furnish to the Federal
Reserve Board or the Federal Reserve Bank of which any
Amendments to Georgia banking laws.
bank or trust company in this State may become a memor to the examiners duly appointed by the Federal
An act of the General Assembly of Georgia, ber,
Reserve Board or such Federal Reserve Bank, copies of
approved August 20, 1918, provides that banks all
examinations made of banks and trust companies beand trust companies chartered under the laws coming members of the Federal Reserve System, and
of the State, which join the Federal Reserve may disclose to such Federal Reserve Board," or to such
Reserve Bank or such examiners, in their discreSystem, shall be subject to the reserve require- Federal
any information with reference to the condition or
ments of the Federal Reserve Act instead of tion,
affairs of such banks or trust companies as become members
the reserve requirements of the State law; of the Federal Reserve Bank in this State.
TREASURY DEPARTMENT,
OFFICE OF COMMISSIONER
OF INTERNAL REVENUE,
SUMMARY OFJBUSINESS CONDITIONS, SEPTEMBER 23, 1918.
O
a
District.
No. 1—Boston
General
business.
Good
; Railroad, post office, Labor conditions.
; a n d other receipts.
I
Scarce, especially
Very quiet except on j Increased over last! Steady at 0 per Increase..
farm help.
building,!| foreign
ForoiVn trarJp
Crop condition. Industries of the district. Construction,
and engineering.
trade.
J
j
= Good
Busy
No. 2—New York. Continues very; Cereals good, ex- Intensified activity to Government construe-1: Balance of exports Very firm
tion heavy; other
over imports inmeet expanding Govactive.
cept corn.
ernment program.
creased 22 per
light.
cent over July,
1917.
No. 3-Philadelphia.
Good
No. 4—Cleveland..
....do
!
Very little building...
Good
Busy
Satisfactory
Production at maxi- Very quiet.
1\ Post
office returns in- Continued scarcity.
crease 25.20 per cent
over 1917; railroad
! net c arnings increase
over last year.
Increasing
Supply." of labor
short.
j Increase..
Demand exceeds
supply.
Firm
i
No. 5—Richmond.. Continues very!
active.
j
do.
Very firm
Limited only by sup- Practically confined to Restricted by Very active de- ' Railroad, imprqve- Somewhat impliesgand labor.
Government work.
mand; 6 per i rnent; post office,
shipment.
proved; in decent.
| volume large.
mand; high
wages.
!
No. 6—Atlanta
Good
Fair to good
Operating full capacity. Dull
Good
E s s e n t i a l industries ....do
busy.
Active
....do
; Dull
Slight increase
Increase..
Unsatisfactory.
i
No. 7—Chicago
do
No. 8—St. Louis... ....do
Fair
No. 9—Minneapolis
do
Harvesting re- Very active.
turns excellent.
No. 10—K a n s a s
City.
do
Fair
No. 11—Dallas
Good
Active
.do.
Firm...
Scarce and restless.
Increase in postal receipts.
Good demand.
Slow.
Very firm.
Little change..
Limited..
Firm.,
Satisfactory... Fair, except in Active; operations lim- Inactive
western Texas. ited by shortage of labor and materials.
No. 12—San Fran- Active
cisco.
Active
Steady.
Fair
Increase in industrial Increasing..
centers; elsewhere
inactive.
i
Fair to good.
Improved.
Steady to Arm...
Railroad receipts in- Unsatisfactory.
creased: post office
receipts increased.
Unchanged
Postal receipts in- | Demand exceeds
creased.
j supply.
CO
---i
CO
980
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
GENERAL BUSINESS CONDITIONS.
There is given on the preceding page a sum- standstill, with contractors and allied lines
mary of business conditions in the United trying to keep their organizations together
States by Federal Reserve districts. These until after the war.
The money market remains on a fixed basis,
reports are furnished by the Federal Reserve with a nominal rate of 6 per cent quoted for
agents, who are the chairmen of the boards of practically all kinds of paper, regardless of
directors for the Federal Reserve Banks of the date or name. Prime banks7 acceptances, 90
several districts. Below are the detailed re- days to run, are quoted at 4i per cent to 4^per cent, while loans on Liberty bonds are
reports as of approximately September 23:
being made at 4 | per cent to 4 | per cent. The
policy of credit conservation is being followed
DISTRICT NO. 1—BOSTON.
everywhere. Banks are able to care for the
A canvass of the important centers in New legitimate needs of their customers but are
England during the past month confirms the restricting those engaged in less essential
opinion that business as a whole is good, and industries. Rates are not a consideration in
that industries engaged on war orders are as making loans and borrowers who would willbusy as labor and supplies of material will ingly pay higher than existing rates for money
permit. The public generally is making prep- for less essential purposes are being curtailed
arations for the fourth Liberty loan, with so that necessary industries may be given
indications that the offering will meet withr required accommodation.
generous response. The people are thoroughl}
The weather during the month of August
aroused to the needs of the country, and a was very favorable for maturing crops. Grain
fixed determination to conduct affairs so each yields generally promise high averages; corn
can do his individual share is everywhere has made fair improvement, while potatoes
apparent.
where dug are yielding well.
" Garden
^
crops
The period of transition from peace to war are generally good and are maturing early,
work is practically over, and business is settling As the fruit orchards were damaged last
into the new routine. The adjustment of labor winter, the yield of winter apples is fight but
offers an interesting study. In some commu- the quality is fair. Fall apples are more
nities, especially in the country, many local plentiful.
people, who for one reason or another have not
A recent frost did considerable damage
previously been large earners, are now em- through the northern and central portions
of
ployed in newly established shipyards. Their the section, corn being particular!}7" affected
wages are spent freely, and are a source of in Maine, New Hampshire, and Vermont.
benefit to local merchants, although banks are Only light frosts occurred in the southern
having loans paid which have been running for section, with no damage resulting.
years. Pay rolls continue to increase, in a
The boot and shoe industry is busy, with
textile city one bank shows that in August, factories running as full as conditions will
1918, it required nearly twice the amount j permit. Leather prices on the whole are firm,
needed in August, 1916, to pay an equal num- | Especially heavy Army and Navy contracts
ber of men. This community, too, is prosper- | have been awarded and these will absorb
ing through the liberal expenditures of work-! large quantities of material. Civilian trade is
men.
somewhat unsettled, due to the impending
Sections having no war industries are feeling ! regulations from Washington restricting styles,
the reflection of general business activities in Cotton mills are extremely busy, being sold
other places, and this is indirectly helping!; as far ahead as the managements care to
their local condition. A comparison of busi- j accept orders. Under present conditions manness in the large centers' for the past summer j ufacturers are unwilling to commit themselves
period discloses the volume in dollars as well! to new contracts, not laiowing how large will
sustained, although in many cases the number j be the Government requirements for the everof articles sold decreased.
increasing Army or how badly they will be
Labor of all kinds is scarce, this being par- affected by the loss of skilled workmen in the
ticularly true of farm help. Building, except draft. What few new orders mills are acceptfor Government needs, is practically at a ing are from old customers and more a matter
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
981
of accommodation than of business. Cotton though mounting costs of production are narhas advanced materially since the present prices rowing profits, there is general prosperity.
were fixed and manufacturers, even if in a Collections are reported good.
position to accept new contracts, would rather
Labor.—The labor problem, complicated by
hold goods than sell until after the prices are the extension of the draft, gives concern to
revised October 1.
many interests. From manufacturing centers,
Woolen and worsted mills are running at both in the northern part of the district and in
capacity. Each month shows a larger per- New York City and vicinity, there is constant
centage devoted to war orders until on Septem- complaint of shortage of unskilled and semiber 2, according to the National Association of skilled labor. Community boards composed
Wool Manufacturers, over 57 per cent of the I of representatives of the Government, of emwoolen spindles and 62 per cent of the worsted | ployers, and of employees, respectively, are
spindles were engaged on this work. Wool being organized in the districts by the United
dealers are handling wool on a commission States Employment Service, and the transfer
basis for the Government and no wool has yet of labor to the more essential occupations has
been allotted for civilian trade. The Govern- already begun. Notwithstanding handicaps,
ment has named two representatives to pur- New York State manufacturing plants show a
chase wool in South America, superseding the gain of 6 per cent in the number of workers as
syndicate appointed some time ago.
compared with July, 1917, the metal group
Boston Clearing House figures compare as | alone reporting a gain of 19 per cent. The
follows:
I total wages paid were 36 per cent above those
of July last year.
Merchandising.—Sales of clothing, at retail,
! Sept. 14,1918. Sept. 7, 1918. Sept. 15,1917.
show the usual autumn revival. Sales at
auction in the fur trade have been in large
494,005,000 j
451,491,000
Loans and discounts
! 490,167,000
429,883,000
365,822,000 volume at extraordinarily high prices.
Demand deposits
| 428,494,000
Cham
29,929,000
Time deposits
i
15,682,000
15,914.000
121,412,000 stores are very prosperous. Mail-order busiDue to banks
114,202,000
112,822', 000 !
240,342,095 ness is reported heavier than last year.
Exchanges..
279,000,840 1244,152,983 \
Ketail
trade is generally active, but with scarcity of
i Five days.
goods in various lines apparent.
Iron and steel.—Attention in the iron and
Building and engineering operations in New
England from January 1 to September 11, steel industry is centered on the question of
1918, amounted to $118,367,000, as compared prices for the fourth quarter. Users of pig
with $147,973,000 for the corresponding period tin have been deferring active purchases,
of 1917. It is estimated that between one- awaiting the determination of the price at
third and one-fourth of this amount is due to | which tin is to be distributed under the international pooling arrangement recently anGovernment building operations.
The receipts of the Boston post office for nounced.
Coal.—Anthracite receipts are slightly imAugust 1, 1918, show an increase of $142,809.15,
or about 21 per cent, more than August, 1917. proved. Bituminous deliveries, though comFor the first 15 days of September, 1918, re- ing in steady volume, are inadequate to meet
ceipts were about 8 per cent, or $29,791.40, I demand, and concern as to winter suppfy is
more than for the corresponding period of last j generally expressed.
Textiles.—Fully 50 per cent of the current
year.
production of cotton, wool, and knit goods is
| under Government contract, and the balance,
DISTRICT NO. 2—NEW YORK.
consisting largely of cotton materials in process
While there is great activity in most of the of manufacture, is not being released by the
principal industries of this district, war work mills pending the determination of a new
is more and more the dominating influence, schedule of prices to take effect October 1.
with private enterprises everywhere subordi- Wool is being allocated to the mills in amounts
nated to the needs of the Government. In sufficient to fill Government orders only, and
mercantile channels there has been a decided there is some uncertainty as to how much raw
lessening of quantity and variety of goods material will be available for civilian use.
Building.—The F. W. Dodge Co. estimates
available for civilian uses, and merchants are
increasingly cautious. In the industrial field, that building contracts actually awarded in
982
FEDEKAL RESERVE BULLETIN.
OCTOBER 1,1918.
New York and northern New Jersey for the savings banks as of July 1, 1918, show that
month of August amounted to $24,734,000, their deposits were somewhat larger than on
less than 3 per cent under the figure for August the corresponding date a year ago, as divia year ago. The estimate for the first eight dends credited slightly more than offset a
months of 1918 is $181,322,000, as compared $72,000,000 excess of withdrawals over dewith $212,238,000 for the same period last posits during the year.
year, a decrease of approximately 14 per cent.
Corporate financing.—Incorporations in the
Of the total, it is estimated about 130.9 per Eastern States in August decreased 69 per
cent now represents Government work.
cent in amount as compared with a year ago,
Building permits issued in New York City and new securities offered by railroad, indusare 6 per cent under the total for August, trial, and public-utility companies amounted
1917, and the Borough of Brooklyn shows an to only $86,614,000, against $160,855,000 in
increase of 17 per cent attributed primarily July of this year and §161,781,000 in August,
to governmental activity. Close supervision 1917. The request of the Capital Issues Comof ordinary construction is assured by a permit mittee on September 9, that offers to the public
system instituted by the War Industries be postponed until after the fourth Liberty
Board on September 6.
loan campaign, resulted in general absence
General manufacturing,—The action of the of new security issues on the market in SepWar Industries Board, on September 9, in tember.
classifying industries as to priority in allotInterest rates.—The volume of commercial
ment of materials, has further limited the use paper outstanding continues approximately
of materials and labor to war work. Several the same as during August, and the customary
large automobile manufacturers have an- rate remains at 6 per cent. Prevailing rates
nounced their intention to discontinue pro- for bank acceptances were 4 | per cent and for
duction of pleasure cars.
time paper secured by United States bonds
Wholesale dealers in metal products have and certificates 4J to 5 per cent. Other time
difficulty in replenishing stocks, even when paper rules at 6 per cent. Six per cent was
placed on a priority list under agreement to the prevailing rate for call loans on mixed
sell only to concerns engaged in war work.
collateral, with the supply of funds limited.
The market for drugs and chemicals is comSecurities.—Stock prices have tended slightly
paratively quiet outside of Government de- downward, and bond prices have been fairly
mand, with prices so firm as to be in some steady. Liberty loan issues advanced slightly,
cases nominal.
following the recommendation of the Secretary
Agriculture.—Shipments of grain and under- of the Treasury to Congress for their partial
grades of dairy products, particularly eggs and exemption from income tax under certain
fresh-killed poultry, have been heavy, but conditions.
receipts of both butter and cheese have been
lighter than in 1917. The Food Administra- DISTRICT NO. 3—PHILADELPHIA.
tion order that 60 per cent of all creamery
butter in storage August 1 should be reserved I General conditions throughout the district
for Government use was followed by a vigor- | continue favorable, trade in most lines surpassing last year's records. An excellent fall
ous upward movement in price.
With the exception of corn, cereal crops business is expected, as the working classes
throughout the State are bountiful, the yield are in receipt of good wages and there is an
of wheat in some sections being estimated at inclination on the part of the public to anticipate a further rise in the prices of goods.
47 bushels per acre.
Manufacturers in all important lines are
Banking conditions.—The banks of the district and the Federal Reserve Bank have dur- operating to the fullest extent permitted by
ing the month shown increases in loans and the available supplies of materials and labor.
investments, due partly to seasonal causes,
Retailers report a steady demand for all
including the movement of the heavy grain kinds of staple commodities, but they are
crop from the Northwest, in part to the heavy experiencing increasing difficulty in obtaining
subscriptions to certificates of indebtedness sufficient merchandise to meet the requirements
in anticipation of the fourth Liberty loan, I of their customers. Retail distributors of
and also to movement of funds from this women's wearing apparel are doing a large
district to other districts through the gold- business, the demand for high-class goods being
settlement fund. Reports of New York State ; greater than ever before.
OCTOBER 1,1918.
FEDEBAL RESERVE BULLETIN.
983
Wholesale dry goods houses report the which are readily furnished to concerns doing
receipt of large orders, but in some instances Government work.
actual sales have been running behind last
The chemical market has been fairly active.
year owing to the physical impossibility of Dyestuffs are in excellent demand. Manugetting out orders due to the deficiency in the facturers of paint report that a satisfactory
supply of labor. Collections are said to be business is being done with the various Govvery good, and the fall and winter outlook is ernment departments, and the outlook is for
excellent.
increasing orders from these sources. DoThe transportation situation continues to mestic consumption of painting materials conshow improvement. Total freight car move- tinues disappointing, due to the curtailment
ments over the Pennsylvania Railroad, during of building operations.
August, at Lewistown Junction amounted to
Advices from Lancaster County indicate a
207,088 cars, compared with 210,575 in July remarkable growth in tobacco during the past
(the record figure) and 173,932 during August, month, and the crop is pronounced both by
1917. Eastbound bituminous coal increased j growers and packers as unusually fine in
34.9 per cent, compared, with August of last j quality. Buyers, however, are holding back,
year; miscellaneous westbound fell off 30 per j expecting a break in prices-on account of the
cent.
I large increase in the number of pounds on
It is estimated that if the coal production j hand. Labor troubles arc being somewhat
can be maintained at the average level of the j relieved by the use of a new machine for
last three months during the rest of the year, making cigars.
requirements will have been met. Anthracite
The commandeering by the Government of
operators and miners are working most indus- 60 per cent of the butter in cold storage retriously to meet the emergency. This is sulted in considerable competition by dealers
indicated by the statement of shipments for for supplies of butter, and prices rose rapidly.
the month of August as reported to the
Money rates have remained firm, being
Anthracite Bureau of Information which es- quoted at 6 per cent. Banks are buying little
tablished a new high record for that month, or no paper from brokers and loans are being
the quantity sent to the market being 7,180,923 closely scrutinized.
tons, compared with 7,084,775 in July and
Discount operations at the Federal Reserve
166,927 tons in excess of the shipments for Bank during August exceeded previous recAugust, 1917. Total shipments for the first ords, total loans and discounts amounting to
five months of the present coal year begin- $165,420,382, of which 67 per cent were notes
ning April 1, 1918, have amounted to 34,388,986 secured by Liberty bonds or certificates of intons, compared with 33,297,109 tons for the debtedness. Acceptances purchased amounted
corresponding period last year, a gain of a to $4,432,670.
little over 3 per cent.
Bituminous production is being maintained DISTRICT NO. 4—CLEVELAND.
at a high tonnage, but is not sufficient to allow
Business conditions in the Fourth Federal
any margin of safety over the demands as Reserve District have undergone very little
estimated by the Fuel Administration.
change during the past month. There is more
Production of steel during August was about or less complaint about the shortage of labor,
80 per cent of capacity, the falling off being but business generally seems to be adjusting
due chiefly to the unusually hot weather.
itself to new conditions and to be getting along
The raw cotton market has been unsettled with facilities which at one time would have
by the price-fixing plans. The demand for appeared entirely inadequate. In fact, it is
cotton yarns by mills engaged on Govern- rather astonishing to note the readiness and
ment work is greater than the supply. The apparent ease with which manufacturers,
Government has entire control over the wool merchants, and individuals are conforming to
business.
Government requirements.
Hosiery and underwear mills are busy. The
Agriculture.—In nearly all sections of the
Government needs for hosiery have been well district the crops are fairly well harvested and
taken care of; mills can now work on civilian are very satisfactory. Corn has been greatly
trade, but it is said that they hesitate to take benefited by the recent rains. The crop looks
advance orders for this class of business, fearing very promising, and in many localities the
they will be unable to obtain fuel and materials quality is much better than last year's crop,
984
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
Employers are at a loss to know just what
The oat crop proved to be particularly good.
Fall plowing for wheat is now under way, and the effect of the 18-to-45 draft will be with
it is believed that a very large crop will be reference to their organizations. While exemptions will be asked in some cases, the general
put in.
Recent rains have benefited the tobacco feeling among business men and manufacturers
crop very much, and it gives promise of being is that the winning of the war is paramount
one of the largest and best crops ever raised. and that nothing not directly connected thereThe exceedingly cool weather has made planters with ought to impede the Government program.
Women are gradually taking the places of
somewhat uneasy about an early frost, but it
is hoped that the crop will be housed before men in offices and banks and in factories where
the work is comparatively light.
the frost overtakes it.
Transportation.—There has been a decided
Fall grass is probably better than it has been
for years, a condition which has been very improvement in transportation conditions.
helpful to cattle feeders, who are shipping Congestion is very much less marked at tercattle very rapidly and obtaining high prices minals, indicating a freer movement of freight.
Lake transportation- is being taxed to its
therefor.
Manufacturing.—--Concerns engaged in the utmost capacity to insure the delivery of as
manufacture of essentials seem to find it less much material and fuel as possible before
difficult to obtain a reasonable amount of raw navigation closes.
materials, and their labor difficulties are not
Mercantile business.—Mercantile concerns
as numerous as they were a few months ago. report good business and, although they are
The Government has made such demands still somewhat hampered by inability to obtain
upon the steel manufacturers, as well as other goods from the mills, the condition in this
producers, for war supplies, that practically respect is considerably better than it was last
everything in the steel line is being devoted month. Those with good records for prompt
to munitions and ships. In the Pittsburgh payment and good credit at bank seem to have
district the steel mills are operating at capacity, less difficulty than heretofore in obtaining goods
and during the past month they have appar- promptly. Terms are shorter and trade disently been making up a large part of the loss counts are being discontinued inmanyinstances.
which naturally occurred during the extremely
Retail stores say that business is good,
warm weather.
although there is a continued tendency on the
The pottery business continues good, and part of consumers to purchase cheaper and
the sand and brick business shows considerable more stable articles.
Collections.—Collections are good, indicating
activity.
Fuel.—The demand for coal is exceptionally from a jobber's standpoint that retail merstrong. The output by many companies is chants are adjusting themselves to conditions
below that of a year ago owing to the number requiring additional capital.
One large manufacturer reports payments
of men who have joined the colors. Mining
is being pushed through southern and eastern for the current month of 104 per cent of shipOhio, and every effort is being made to get the ments, and out of a total of $13,000,000 colcoal to the Northwest before navigation closes lected less than $500,000 was accepted in paper.
on the Great Lakes. Ohio coal roads have These figures are believed to be fairly indicabeen pushed to the limit to take care of the coal tive of the situation generally. Failures confor lake trade. While there has been some tinue to decrease and but little complaint as
storing of coal by manufacturers, reports from to payments is heard.
Post-office receipts in all of the nine principal
all sections indicate that unless there is a
speeding up of this class of business there will cities in the district show a substantial increase
over last year's figures.
be a scarcity of coal in many localities.
Labor.—TThere has been little if any relief of Money and investments.—In anticipation of
the labor shortage, but the shifting of workers the largest Liberty loan yet to be floated, the
from place to place is being checked to some extent of the over-subscriptions to the later
extent by the United States labor and employ- issues of Treasury certificates is believed to
have stabilized the money market. In consement officials.
During the week of September 9 12 breweries quence little disturbance is expected when subin the Pittsburgh district closed for the dura- scriptions are paid. Money, however, contintion of the war, thus turning considerable labor ues scarce and member banks make liberal use
of the rediscount privilege.
into essential channels.
OCTOBER 1,1018.
FEDEEAL RESERVE BULLETIN.
Trade acceptances are growing in favor and
have greatly facilitated the movement of staple
commodities in the process of their distribution.
Governmental requests and unusual demands
work together to restrain banks from loaning to
other than essential commercial enterprises,
and there is a hearty spirit of cooperation
exhibited by both bank and customer.
Building.—Practically the only building
being done is that of dwellings for workmen and
additions to plants engaged on war work.
DISTRICT NO. 5—RICHMOND.
985
trade, though rail deliveries continue to show
marked improvement.
Shortage of labor is reported generally
throughout the district, and while by no means
satisfactory in efficiency this condition is better
than it has been for several months past.
There has been less shifting of labor than heretofore, attributable perhaps to the effectiveness of the policy inaugurated by the Government of discouraging labor from leaving employment in one section to seek it in another.
Plans for the fourth Liberty loan are completed.
Demand for Government uses have been the DISTRICT NO. 6—ATLANTA.
feature in trade activities throughout the disBusiness conditions throughout the district
trict during the month, and this demand is show little change with preceding month,
increasing. To shorten the period of exposure except that the shortage of experienced help
for our boys at the front as much as possible in all lines is causing a slight decrease in prois the endeavor of all, and in building up at duction, with corresponding increase in costs.
home our great military machine, the feeling is Vacancies in clerical lines are being filled by
growing that their work should be accomplished women not heretofore engaged in the comthoroughly and without unnecessary delay.
mercial world.
Except for Government work and housing,
Until the question of cotton price fixing is
building in the district is very inactive and disposed of there will remain an element of
real estate transactions at a minimum. Collec- uncertainty both with the producer and the
tions are reported generally good and 1918 fail- buyer, and coming as this does at marketing
ures in the fifth district for the corresponding time it is likely to further disturb prevailing
months (January to September) of last year conditions. The favorable cotton - picking
show a decrease of 66 per cent in number and weather has largely offset the labor shortage.
77 per cent in volume. Bank clearings show Gins are operating on full time on the days
a largely increased volume for the month as allowed by the Fuel Administrator but can not
compared with the corresponding month of last keep up with the ginning, as producers inyear. Postal receipts also show an increase.
variably sell on a fair market sufficient bales
Crops have shown improvement as harvest- to acquire some ready cash and pay for ading nears, though considerable damage has re- ditional picking. Wages for pickers run as
sulted from heat, drought, and hail storms. high as $1 per 100 pounds, and planters will
Cotton has perhaps suffered most, and the out- probably have to pay more before the crop is
look is not as favorable as a month ago. While gathered. Second growth has started, but
the conditions appear unfavorable for quantity, with the deterioration of the past 30 days
under good weather conditions the crop can be prospects for a top crop are very slight. The
gathered free from dirt or stain, and at the corn crop will approximate that of last year,
present prevailing price almost any shortage in with sufficient peanuts and velvet beans to
volume will be overcome to the producer by more than feed the hogs and cattle. The
the enhanced price. Tobacco is good and the brightest feature of the situation is that
prices in the Virginia markets are higher in where cotton is worst corn and velvet beans
comparison than the earlier sales in the Caro- are best. There has been considerable increase
linas, Virginia now averaging around 40 cents, in Irish and sweet potatoes, with an apple crop
with the largest crop for years. There is a fair reported good.
crop of fruits and vegetables of rather inferior
The condition of the orange crop remains
quality, though canning industries report thus unchanged from a month ago, but is well above
far satisfactory operations.
the average condition for a number of years.
Wholesale trade in staple commodities is ex- Reports indicate that the citrus crop as a
ceptionally good, though shorter terms are indi- whole will ripen somewhat earlier than in forcated and advance sales curtailed. The ques- mer years.
tion of delivery, both by manufacturers and by t Since the beginning of the war the productransportation companies, is affecting retail ! tion of the castor bean has grown to be a factor
986
FEDERAL RESERVE BULLETIN".
OCTOBER 1,193 S.
!
in north Florida farming. This year's crop is j moderate quantities and often. Overall manuripening rather slowly, though up to the present facturers are far behind on July deliveries,
time one of the largest hulling plants of the owing to Government demands, and can not
section has handled about 400,000 bushels, solicit new business until the mills are in posiwith an estimated value to the farmer of tion to contract for future deliveries. While
$1,200,000.
there is a slight pessimism among dealers in
Sirup crops are below average, and it is too men's lines on account of the 18 to 45 draft,
late to make a crop equal to that of last year. the general feeling is that this will not affect
Sirup manufacturers report outlook for fall j the fall and winter trade.
3
and winter business as good, with high prices
Post-office data furnished by 20 of the more
indicated. On account of the scarcity of sugar, important offices in the district show receipts
consumers are using a good deal of sirup for for August, 1918, $737,939; August, 1917,
"sweetening," and the manufacturers are $458,819; an increase of $279,120.
having more business at present than they can
Bank deposits continue to increase, with
take care of, on account of the scarcity of labor slight decrease in loans, caused largely by
and inability to get box material.
i curtailment of credits to what is deemed
The tobacco crop of southeast Georgia is nonessentials and the result of the work of the
reported good and is about harvested. Ten- Capital Issues Committee in passing on the comnessee reports an estimated tobacco crop of | patibility of certain expenditures at this time.
53,000,000 pounds, as compared with 81,000;- Collections are good and with prevailing high
000 pounds last year. Cutting and. housing is prices prompt payment of obligations are
progressing under favorable conditions.
looked for.
Production of wool in Tennessee shows an
Some uneasiness is felt as to the effect of the
increase of 10 per cent over last year.
new draft law in the reduction of man power
Cotton-oil mills report their line of business in lines that are considered essential to the
in a rather uncertain state, due to consideration national interest at this time, but the more
of price fixing of cotton seed and cottonseed conservative business element are of the
production, as the deterioration in the crop opinion that the Government will work out
will cut short their supply of raw material.
some plan to insure the working organizations
Flour mills are reported as running less than in the financial and industrial fields, especially
30 per cent of their normal capacity, indicating in those forming a part of the war work.
that they are producing but a little more than
one-fourth the normal quantity of mill feed of DISTRICT NO. 7—CHICAGO.
previous years, which is having material effect I As Government wants expand beyond all
in the cattle-raising centers. It is felt that I previous calculations, the necessity for intenthe September 1 Food Administration regula- | sive productive efforts becomes daily more aption on the 80-20 basis will relieve the situation parent. With the concentration of industries
considerably and probably lead to an operation on demands of the most essential character,
of 50 per cent capacity.
manufacturers and dealers alike hesitate to
The lumber market shows signs of improve- accept civilian orders, awaiting calls for
ment, with the Government requirements still supplies from official sources. In values comthe principal item. Building lines, except for mercial business remains at a high level, yet
Government operations and industrial plants, transactions are diminishing in number as
are very dull. Few building permits are being greater caution and more rigid economy is
issued, and probably 90 per cent of such permits being practiced by dealers as well as consumers.
issued are for repair work.
! Caution and conservation seem to be the
Coal production is greater compared with watchwords in all lines not catering to Governlast year, but labor conditions prevent a larger ment needs. A concrete evidence to this
output. Iron and steel business continue very effect is afforded by the remarkable exhibit
active, with enormous demands and good as to commercial failures reported by R. G.
prices. There is a continued labor shortage, Dun & Co. This report for August for the
but no complications exist, as laborers are well whole country is numerically the smallest
employed at high wages and are cooperating on record with the single exception of the same
with operators in a satisfactory manner.
month in 1899, while the indebtedness involved
Wholesalers and jobbers of dry goods and has been smaller in August of only four other
notions, while reporting good fall and winter years, namely, 1905, 1900, 1899, 1898. While
business, state retailers prefer to buy in i these figures are for the whole country, the
OCTOBER 1,1918.
FEDEEAL RESERVE B U L L E T I N .
987
showing for the Seventh Federal Reserve Dis- output. As a result of this, civilian needs are
trict is practically reflected in proportion.
being steadily set aside. Jobbers are relying
From manufacturer down to the retailer a on stocks on hand, awaiting further allotments
strong effort is being made to get closer to a of production for civilian wants. New stocks
cash basis as evidenced by the very general of woolens have practically disappeared from
reports of satisfactory collections. There is a the market, and cotton goods trading is held
great deal of money in circulation and the back awaiting a new price fixing period. Other
common people have more money in their lines are affected by influences that tend to
pockets than ever before. This situation, make all trading conservative. The situation
contrary to expectations, has not resulted in seems to depend on adjustment of supply and
extravagance except in a few instances, the demand, and the problem, aside from price
conservation campaign seeming to have had fixing, lies in the quantity of future production
the desired effect.
that can be allotted for civilian requirements.
There is a continued heavy demand for Retail merchants seem well prepared to supply
money, with interest rates firm at 6 per cent. the demand for fall and winter merchandise,
While deposits are reported off, and loans have having anticipated their requirements well
increased, making for a tight money market, in advance.
banks are caring for necessaiy loans comIf the good transportation facilities of the
fortably, discriminating more and more against present continue throughout the winter months,
borrowers for nonessen^ial purposes as much no serious shortage of bituminous coal in the
as such discrimination can be practiced without- district is anticipated. Illinois and Indiana
entailing hardships or embarrassment to the mines are now supplying large quantities of
borrowers.
coal to consumers in other localities in addition
Crop conditions in this district are good. to filling the requirements of the territory
Wheat has all been harvested with a satisfac- allotted to them.
tory yield and. very good quality. Reports inThe induction of millions of men into military
dicate an increased acreage for the coming year. service, who in normal times would have
That the price has been satisfactory, is evi- married and established homes, has had a telldenced by" the extremely heavy shipments of ing effect upon the retail furniture trade.
wheat recorded during the past 30 days. While Relief from this situation has been accorded
the extremely hot weather in August caused the manufacturer by the placing of Governsome damage to the corn crop, reports seem to ment contracts for certain wood products,
point to a reasonably satisfactory though dis- while the retailer expects a stimulus to his
appointing yield. The condition of this crop business as a result of the enormous amount
is good and no soft corn is anticipated. Late of money now being paid out for labor to those
corn needs more growing weather and the workers who remain at home.
arrival of the first killing frost remains an all- High price? prevail in the live-stock market,
important factor in its development. Other the price of hogs reaching the highest level
small grains have been harvested with good ever recorded in the Chicago market. In spite
yields. Meadows and pastures are in better of price advances, there is a continued demand
condition and the general farm outlook is for fresh meats. Good trade is reported in
very optimistic.
packers' by-products—hides, glue, tallow, ferThe transportation supply has been ade- tilizer, and grease. Receipts of live stock at
quate. Only two of the important factors in Chicago for the four weeks ending Septemindustry have been troublesome. These are ber 14, 1918, as compared with a like period
material and labor, and the scarcity of each is, in 1917:
of course, attributable to our concentration
Cattle.
on war activities. While it is expected that
Year.
Calves.
Hogs.
Sheep.
the labor problem will be intensified by the
. .
300,194
35,735 349,351
514,957
process of the new draft, it is certain that 1918
35,827
226,988
269,926
279,531
strong efforts will be made to safeguard 1917
essential industries and business. Available
labor, though well employed at good wages,
The volume of business in wholesale grostill manifests an impatient, independent, and ceries continues good. The removal of the
migratory attitude.
restrictions on flour effective September 1 will
The Government is dominating the dry result in a large increase in flour sales for the
goods market, in some lines taking the entire balance of the year. In spite of higher prices,
988
FEDERAL RESERVE BULLETIN.
the demand for all kinds of foodstuffs, especially canned goods, is very large. Confectioners, already handicapped by the sugar shortage,
fear a further curtailment of their allotment.
The retail candy trade is good but is feeling
the effects of inability to obtain the desired
stocks.
Wholesalers of hardware furnish favorable
reports, though suffering the hardship entailed
by increased difficulties in securing supplies,
especially in the heavy hardware line. The
volume of trade compares satisfactorily with
last year. Retailers are quite generally permitting their stocks to diminish in anticipation
of coming price changes. Dullness prevails in
all agricultural implement lines, though normal
sales for this season of the year are reported.
Only modest future demands are expected.
Lumber business is much reduced in ordinary lines, but some concerns keep employed
through Government work. All other lines of
building material report continued dullness,
with the outlook for improvement very problematical. Paper mills are very busy and are
weeks behind their orders. Prices are advancing daily.
The demand for men's shoes is surprisingly
strong. Retailers in their anxiety to obtain
footwear are paying the advanced prices asked
by the manufacturers. Labor difficulties in
the East have flooded the western nmufacturers with orders. Business continues very
active in the textile and wearing apparel trades,
many of the manufacturers being months
behind their usual time for opening up their
lines. With the demand for raw material
exceeding the supply, with a consequent shortage in yardage, manufacturers and the cuttingup trade are experiencing the most difficult
season in their history.
The refusal of the Capital Issues Committee
to permit the sale of any new bond issues until
after the next Liberty loan, while slowing down
trading, has created a satisfactory situation in
allowing bond houses to concentrate on issues
they are now carrying, thereby reducing their
loans prior to the arrival of new demands on
banks and individuals resulting from the
Liberty loan subscriptions.
Brewers and distillers report a continued
decline in sales, while many liquor retailers
contemplate going out of business as soon as
they are able to dispose of their stocks. Business of the mail-order houses continues to run
well ahead of last year. Jewelers anticipate
no ill effects from Government administration
OCTOHKJl 1, 193 S.
of gold and silver bullion, as stores are in the
main well stocked with gold and silver merchandise. With many piano factories turning
their attention to Government needs, some
operating 100 per cent on war work, the output
of instruments will fall far short of meeting the
demand.
The steel business has only one customer,
the United States, but authorities state that
after the war prospects are excellent for a
satisfactory continuance of volume due to the
present need for many constructional operations held up for the duration of the war.
Shipbuilders, busily engaged on contracts with
the United States Shipping Board Emergency
Fleet Corporation, are meeting with very good
success in keeping up with their schedules.
The demand for provisions has been seasonable. Government requirements, both domestic and foreign, are in most cases about equal
to the supply of the kinds of product required
by them.
Clearings in Chicago for the first 13 business
days of September were $1,207,000,000, being
$264,000,000 more than for the corresponding
13 business days in September, 1917. Clearings reported by 21 cities in the district outside of Chicago amounted to $293,000,000 for
the first 15 days of September, 1918, as compared with $268,000,000 for the first 15 days
of September, 1917. Deposits in 12 central
reserve city member banks in Chicago were
$882,000,000 at the close of business September 17, 1918, and loans were $630,000,000.
Deposits show an increase of approximately
$5,000,000 over last month, and loans a decrease of approximately $23,000,000.
DISTRICT NO. 8—ST. LOUIS.
General business in this district continues
active, with Government work as the overshadowing factor. Manufacturers, wholesalers, and retailers, generally, report that the
volume of their business is in excess of the
volume at this time last year, especially when
measured in dollars. Reports indicate that
business men are moving carefully and that
the public is practicing economy in buying.
Manufacturers of iron and steel continue
especially busy, as do also manufacturers of
boots, shoes, clothing, etc. For several months
past many of the shoe houses have had no
salesmen in the field, but they are now starting
them out for spring business. It is reported
that some are limiting their sales, as they will
not accept orders until they have sufficient
OCTOBER 1,1918.
FEDERAL EESEEVE BULLETIN.
989
leather on hand to cover all goods sold. Whole- ! condition of oats on September 1, in the 3
salers of dry goods also report an active trade, \ States mentioned, is estimated to yield 104,but some state that they; are not taking orders j 846,000 bushels, which is 4,624,000 bushels
for future delivery. It is reported that many | more than the estimate of August 1, and
large merchants are buying in the smaller | 17,981,000 bushels more than the 5-year
markets, due to the scarcity of merchandise average.
in the larger markets and a tendency for :1 The cotton crop has been severely damaged in
higher prices to prevail there.
this district and the crop is considerably beDepartment stores and retail merchants also low normal. On August 25 the condition of
report a good business. In response to the the cotton in Mississippi, Arkansas, Tennessee,
appeal of merchants the public has already ! and Missouri was estimated by the Governbegun to do its Christmas shopping. Collec- ! ment to be 59.2 per cent, which is 25 per cent
I less than the estimate of July 25 and 16.5 per
tions are reported to be good.
Reports from the banks in this district ; cent below the 10-year average. Both in the
show an increased demand for money during picking and ginning of cotton rapid progress
September. This demand has been reflected \ is being made.
in the rediscounts of the Federal Reserve • Plowing for winter wheat is completed in
Bank, which have steadily increased. In the most localities and sowing is well under way.
larger cities the bank rate to customers is still Reports indicate that the acreage will be in
6 per cent for practically all classes of loans excess of that sown last fall.
and in the country districts it is somewhat
Shipments of cattle and hogs to market conhigher. Many of the banks are now discrim- tinue heavy. The report of the St. Louis
inating against loans for nonessential pur- National Stock Yards for August shows a
poses, in response to the request of the Federal perceptible increase in the receipts of cattle
Reserve Board. Practically none of the large and hogs, in comparison with the same month
city banks are in the market for commercial last year, but a slight falling off in comparison
paper, though some of the banks in the coun- with July of this year. The report also shows
try districts are buying. The commercial substantial increases in the shipments of live
paper rate prevails at 6 per cent for all names stock, both in comparison with the previous
and maturities.
month and August of last year.
At the writing of this report the interest of
The labor situation in this district is pracbankers, business men, and others is centered tically settled, and there is a good demand for
in the flotation of the fourth Liberty loan, the for both skilled and unskilled workers. Women
campaign for which opens on September 28 are more and more being called upon to fill
and closes October 19. Every effort is being places formerly occupied by men.
made in this district to insure its success.
Postal receipts during August in St. Louis,
The recent rains have revived pastures and Louisville, Memphis, and Little Rock all show
helped the late truck and forage crops, but substantial increases in comparison with the
they came too late in many sections materially same month last year.
to benefit the corn. The condition of the corn
Reports for August from leading cities in
in the seven States included in this district was this district show perceptible decreases in the
estimated by the Government on September 1 number of building permits issued and the
to be 63.7 per cent, which is 10.7 per cent be- estimated cost of construction, both in comlow the estimate of August 1 and 14.7 per parison with the previous month and the corcent below the 10-year average. The con- | responding month last year.
dition of the corn in this district on September ! A branch of the Federal Reserve Bank of
1 is estimated to yield 132,389,000 bushels of St. Louis was opened in Memphis on Septemcorn, which is 20,249,000 bushels less than the ber 2.
estimate of August 1, and 6,693,000 bushels DISTRICT NO. 9—MINNEAPOLIS.
less than the 5-year average.
The money returns from the 1918 crop in
The oats crop is progressing satisfactorily
and indications point to a good crop. The this district will be highly satisfactory. In
condition of oats in Indiana, Illinois, and Mis- terms of bushels the 1 crop may not attain
souri was estimated by the Government on record proportions, but its cash equivalent will
September 1 to be 90.6 per cent, which is 11.6 be considerably in excess of that of any preper cent better than the 10-year average. The vious season. Harvesting is completed except-
990
FEDERAL RESERVE BULLETIN.
ing for e, small amount of late flax and the corn
crop, and thrashing is in progrv^s everywhere.
A satisfactory feature of the ».rop year is that
thrashing returns have in many instances been
more satisfactory than was anticipated, and
this has been particularly true in western North
Dakota, where the crop outlook early in the
fall was not good.
The ninth district will contribute to the
Nation's necessities a very large crop of spring
wheat of good quality. A large barley crop
has also been produced, which with the reduction in the malting demand will probably be
used more than in previous years for feeding
purposes. The oat crop is large and the flax
yield is satisfactory. A considerable crop of
rye is likewise an important contribution to
the production of foodstuffs.
Corn in the ninth district has escaped damage
from frosts, and over the district as a whole
was beyond the danger point before cold
weather came on. The corn yield is extremely
satisfactory and the quality of the crop is very
good. The cutting of corn is in progress
throughout the central northern portion of the
district, while in the southern portion the crop
is safely in storage.
Marketing conditions show some unusual
features. There has been a noticeable shortage of help, and it has been difficult for farmers to move thrashed grain to the country
elevators. There has likewise been a shortage
of help at terminal points and the unloading of
grain arriving from the country has been slow.
The grain movement is, however, in full swing
and in spite of the difficulties of transportation,
both by wagon and by rail, the arrivals at terminals are satisfactory.
Wheat is moving in good volume, and farmers have apparently chosen to defer the shipment of barley and oats until the wheat is out
of the way.
Farm labor has been scarce throughout the
fall, and at high rates of pay there has been a
noticeable loss in efficiency. Skilled and experienced farm help is extremely hard to
obtain.
It has cost more to move the 1918 crop than
any previous crop in the history of the Northwest. The amounts of money involved because of the extremely high prices are very
large. The slow and laborious movement of
the crop at terminal markets has injected an
element of time and added to the burden of
financing. The demand on the banks has consequently been very active and has continued
farther into the crop-moving period than is
OCTOBER 1,1918.
usual. The financial institutions of the district have performed a notable service in
promptly satisfying the requirements of the
country, and such delays as have occurred in
the marketing of this year's production can
not be charged to them.
With very high returns for both fine and
coarse grains, and the record prices farmers
have been and are enjoying for cattle, hogs,
dairy products, and poultry, the flow of money
into the hands of those engaged in agricultural production is very considerable.
The high prices have materially helped the
sections that have suffered from scant crop
returns, while in the remainder of the district
the farmers are close to a period when they
will have ready cash to liquidate their obligations. There is, therefore, reason to expect
a continuation of prosperous conditions that
have prevailed up to this point and to anticipate a satisfactory volume of business at
country points during the late fall and winter
months.
The conversion of industry to war production has been slow but very persistent. Each
week is witnessing an increase in the number
of enterprises engaged in war work. Most of
the industrial concerns in this district are
small, but the point has apparently been
reached when the Government is able to
classify these institutions according to their
ability to serve and apportion to them items
of manufacture suited to their respective lines.
Much progress has been made during the last
30 days in classifying and organizing manufacturing enterprises of the district for the
purpose of putting the maximum production
of concerns that can assist the Government at
the disposal of the Federal authorities.
Substantial progress has also been made in
restricting the offer for sale or subscription of
stocks, bonds, and other forms of securities not
compatible with the interests of the United
States in war time. The erection of effective
supervision and control has naturally been
slow and difficult, but it has demonstrated the
fact that notwithstanding the very excellent
work done by the Blue Sky Commissions in the
various States, there has still been floated a
considerable volume of so-called investment
securities which ordinarily absorb very considerable amounts of money and which give
little prospect of any return to the investor
except experience.
The banks of the district are undergoing a
difficult period due to the gradual withdrawal
of experienced help, which is being replaced
OCTOBER 1,1918.
FEDEEAL RESERVE BULLETIN.
with female employees. The loss of purely
clerical labor would not have been so serious if
it had not been accompanied by the withdrawal of a considerable number of the younger
men charged with departmental or executive
responsibility. This has involved the training
of an unusual percentage of new and inexperienced help and consequent disadvantage to
institutions that have been heavily burdened
with the activities of the crop moving period
and with war work.
DISTRICT NO. 10—KANSAS CITY.
g Generally improved conditions following a
cessation of hot and dry weather and news of
successes overseas have heartened the people
of this district. The outlook for agriculture is
encouraging and preparations for larger food production next year are in progress. An unprecedented movement of grain and live stock to
the markets continues. War prices for products
of farms, mines, wells and factories, and war
wages to labor, are putting more money into
people's hands, enlarging their purchasing
power and their ability to pay their obligations. Fall trade has assumed active- proportions, restricted only by difficulties of merchants replenishing stocks. Manufacturing is
more and more confined to essentials, but,
like|mining and oil industries, it is handicapped
by shortage of labor—now the greatest problem—and uncertainty as to how future activity
is to be affected by the new draft.
Financial.—The larger volume of business
at this season is reflected in the bank clearings
of 15 cities in the district which show a total
for August of $1,516,180,000 as compared
with $1,051,472,000 for August of last year,
the increase being 44 per cent.
The seasonal demands for crop moving,
combined with the sale of United States
Treasury certificates of indebtedness anticiatory of the fourth Liberty loan, maintained
le money market steady and interest rates
firm. Treasury certificates anticipatory of the
fourth loan have been placed in this district
aggregating $132,760,000 and subscriptions
are now being received to an issue dated
September 17.
The district organization for the conduct of
the fourth Liberty loan campaign is more complete than in any of the previous loans, which,
together with the experience of the past loans,
gives assurance of raising the quota for the
fourth Liberty loan, although it is certain the
B
991
will be considerably higher than any
Stieuotadistrict
has yet been called upon to raise.
The War Finance Corporation Cattle Loan
Agency established in Kansas City to serve
Federal Reserve Districts Nos. 8, 9, 10, and 12
is a subject of absorbing interest to the eattle
industry at this time. While the formation
of the agency is just being completed, there is
already apparent among the banks and cattle
loan companies an easier feeling with respect
to the fall demands which will be made upon
them by breeders and raisers throughout the
section.
Agriculture.—Moderate to heavy rains and
lower temperature have put the ground into
good condition for fall planting, and with the
Government's guarantee of a minimum price
on 1919 wheat, an increased acreage is to be
sown. The moisture came too late to
materially help the corn and the yield will be
about 25 per cent of a normal crop. Late
crops are turning out well, pastures revived and
much rough food for animals is assured.
Sugar beets will show a larger tonnage per
acre than last year but with 20 per cent smaller
acreage.
Eeceipts of wheat since July 1 are three
times those for the corresponding period of last
year and in excess of current needs. The
Food A-dministration is attempting to relieve
congestion by finding storage at terminal
points rather than attempt to find an outlet
for wheat as fast as it comes from the farms.
Interior millers, fearing exhaustion of home
supply, attempted to check the outflow, but
without success. With elevators full and
yards congested, the railroads were forced, on
September 16, to declare a temporary embargo at Kansas City, St. Joseph, and Omaha,
to permit a cleaning out of the surplus. Practically all of the wheat has been sold at guaranteed prices. The receipts of corn are larger
than at this time last year but the new corn
movement is hampered by wheat congestion
at the markets, with a tendency to lower corn
prices. Receipts of oats are about the same
as last year.
Milling operations in August were maintained at 98 per cent capacity at mills in the
district and 33 per cent above last year's output, but slowing down slightly the first half of
September with a slackening of the demand
for flour.
Live stock.—Receipts of cattle at the six
markets in this district in August were 21 per
992
FEDEKAL BESERVE BULLETIN.
OCTOBER 1,1918.
cent larger than for the same month in 1917, same month last year. Wyoming maintained
a new record for the eighth month. Hog and a steady pace, with a tendency toward a good
sheep receipts were 40 per cent larger for the increase in the year's output.
month as compared with receipts for August
Completed wells in August were 147 more
of last year. A large proportion of the cattle for the three States than in the same month
and hogs was light and unfinished. While dry of 1917, but new production fell off 22,740 barweather is conceded to have influenced larger rels daily capacity. No wells of the gusher
marketing, live-stock men point to the figures class were brought in and there was a larger
as indicating an increased supply of meat per cent of dry holes and gassers. At the
animals and an expansion of the live-stock beginning of September wells drilling were
industry.
1,849 in Oklahoma, 491 in Kansas, and 221
Cattle prices are higher than last year, in Wyoming.
finished steers reaching $18.50 as top price,
Building and construction.—Inspectors in the
and other grades $1.50 to $4.50 higher than a principal cities of this district report little work
year ago. Hogs went to 820.55 early in Sep- in progress or in early prospect, except that
tember, the record price. The average weight which is clearly indispensable. Permits in
for August was 4 pounds below last year's number were 12 per cent less than in August,
figure. Sheep generally are in better condi- 1917, but 50 per cent less money was required
tion with prices ruling higher for good lambs. for their construction. The tendency is toward
Purchases by packers were 2 per cent above smaller buildings and repairs until the war is
the August, 1917, record on cattle, 19 per cent ended. Municipal improvements and general
above on hogs, and 64 per cent above on sheep. construction are in like manner and proporWith heavy war orders the packers are in- tion subordinated to the war. Aside from supcreasing the meat output in about the same plying Government needs there is little activity in the lumber trade. Building hardware
proportion.
Mining.—Further reduction in tonnage of and other materials are restricted in supply
ore produced in Colorado is reported. Gold by demands for Government use.
operators say 2,000 more miners are needed to
Labor.—September finds few strikes and
make production normal, and they are looking wage controversies in this section, and these
for additional reduction of their forces in the of a local character. But the man-power
new draft. A number of mines may be forced shortage is keenly acute. Government agento close. A wage increase, effective Septem- cies are classifying labor for distribution
ber 1, is also having a depressing influence on among essential industries. State labor busmall mines, the operators contending the j reaus, commercial bodies, and manufacturing
margin of profit is too narrow.
associations are cooperating, hoping to relieve
The demand for lead increases, with the the situation. Nebraska reports calls for 6,692
premium price reaching $104.50 this month, men and 3,617 places filled, Wyoming calls for
and $100 as the basis. There is less of a de- 1,945 men and 120 places filled, New Mexico
mand for zinc ore, sales of zinc blende ranging about the same, with the added report that
many men have left the State to work in shipfrom $50 to $60.
Improved transportation conditions and a yards and other industries, on account of high
somewhat better labor situation at the mines wages offered. Colorado is working hard to
have slightly increased the coal output, but adjust the labor-supply problem, with a show
the improvement offers no assurance the sup- of success, but still needs 2,000 more miners.
ply will be ample when winter's pinch comes. The Missouri-Kansas-Oklahoma lead, zinc, and
Oil.—Renewed activity is seen in practi- coal fields are short of men. Oil operators
cally every field in this district. Operators have appealed to the oil division for a ruling
are attempting under difficulties to bring pro- on the policy to be pursued in drafting men
duction up to the demand. More than 300 for these essential industries, as they are
wells were shut down in mid-August because unable to figure on future production until
of inability to obtain water for their operation, they know what the draft is going to do to
but these conditions have been practically them.
eliminated.
Mercantile.—Wholesale and retail merchants
The Kansas output in August was slightly report an active business this month. The
below that of July, but 9 per cent better than difficulty of obtaining supplies is increasing,
August of last year. Oklahoma was 10 per owing to the diverting of essentials to war
cent short in production compared with the channels, but patrons are taking what they can
OCTOBER 1,1918.
FEDERAL EESERVE BULLETIN.
get without complaining. With such conditions retailers are able to clean up stocks on
hand at good prices. Department stores report
trade surprisingly large, while in dry goods and
shoes it is especially good on medium lines.
The millinery trade is active, with liberal country orders. Demand for men's clothing and
•furnishings is less this fall than the trade has
known, Being further influenced by the new
draft, but good prices are maintained. Demand for groceries is active and at high prices.
Collections are good and cash purchases are
proportionately larger than for spme time,
enabling merchants to pay- their bills. Business failures are at a low ebb. The August
record for the Tenth Federal Reserve District
was 20 failures, with $184,171 liabilities, as
compared with 58 failures, with $450,646 liabilities, in August, 1917.
DISTRICT NO. 11—DALLAS.
Trade continues in good volume and the outlook at present is generally promising, considering the uncertain conditions which have
prevailed for some time past, and continue
more apparent, as the result of the war, when
considered in connection with the severe
drought which has prevailed over a large part
of the district. Notwithstanding the higher
prices of all merchandise and an unusually hot
summer, when a slump in trade is to be expected, merchants report that trade largely
exceeds last year, and returns for the season
are quite satisfactory. As in other districts,
however, there continues a strong tendency
to curtail the purchase of luxuries and nonessentials and restrict buying to necessities
only.
Wholesalers and jobbers, with few exceptions, report that traveling salesmen are booking good orders, and their volume is far ahead
of last season. Recent rains over most of the
agricultural belt have materially helped business and stimulated buying among the country
trade. In the west and southwest, however,
where conditions have been unfavorable on
account of drought, general business is rather
quiet and buying is restricted. Orders from
those sections are not as heavy as in previous
seasons. Collections there are also slow.
The large mail-order houses of the district
are transacting a good business, and an increase
of from 25 to 40 per cent in sales is reported
over last year. This increase is applicable to
all classes of merchandise rather than any
special line.
993
Rains have fallen over a large area of the
district and the agricultural outlook is more
promising than for several weeks past. While
too late to be of benefit to cotton, except in
parts of north, northeast, and east Texas,
where the crop was in condition to better withstand the excessive heat and drought, the
moisture has put a good season in the ground,
revived pastures and meadows, and will permit
of extensive fall plowing and seasonal preparations for next year's crop.
The cotton crop is being rapidly marketed,
though in some quarters reports indicate a disposition to hold in anticipation of higher
prices. As previously reported, the crop "suffered a heavy deterioration during August.
While earlier estimates, which we believe conservative, placed the Texas yield at around
3,000,000 bales, more recent advices are that
the crop may not exceed 2,500,000 bales.
The demands of our member banks are still
heavy, and although some liquidation has taken
place, with the marketing of cotton, it is as yet
hardly noticeable. Another 30 days, however,
should bring relief to banks, and there should
be a more general liquidation. Such reports
of condition of member banks, on the call
of August 31 as have been received and
analyzed, indicate a slight decrease in loans
and a corresponding increase in deposits,
since the June report was rendered.
Clearings at the principal cities of the district in August were 8278,627,473, an increase
of 33.1 per cent over the same month last year,
when $209,316,620 was reported.
Currency orders for crop moving purposes
have been unusually heavy during the past
month, and. the outstanding Federal Reserve
notes of this institution have increased some
$20,000,000 during that period.
Post-office receipts at the principal cities of
the district show an increase of 39.2 per cent
for August over the same period a vear ago.
The detailed figures are: 1917, $310,315; 1918,
$432,128; increase, $121,813.
The building industry is inactive, and while
the number of permits issued at the principal
cities of the district in August show an increase
of 236, a decrease of 62.6 in valuation is
reported during the same period. All building
operations are subordinated to the Government's needs, and other than construction
necessary for actual requirements no large
contracts are undertaken.
The lumber trade is unsettled, due to governmental restriction, and the outlook at this
994
FEDERAL RESERVE BULLETIN.
time is not promising, although the belief is
prevalent that no undue hardships will be
imposed. The various governmental departments are still calling for large orders of material, and such requests are receiving first consideration by producers. There is, however,
only a limited production of logs applicable to
Government requirements, and the disposition
of the accumulation of stock remaining presents a serious problem. The car supply is
still inadequate, but it is better than usual at
this season. The mills report a labor shortage,
which it is expected will be further aggravated
by the operations of the new draft.
The labor situation in the district presents no
material changes since our August letter.
Very little shortage is apparent in skilled labor,
although the new draft will have a serious
effect, and tend to accentuate the shortage
now existing in some localities.
Live-stock conditions are improved somewhat, as the result of partial rains over the
range country. In New Mexico, particularly,
more encouraging reports are received, and our
correspondents in Albuquerque, Roswell, and
that vicinity, advise that cattle will go into
the winter season in fair condition. Farther
to the west and southwest, however, the rain
did not so materially relieve range conditions,
and the situation as regards live stock is
discouraging.
To summarize general business and banking
conditions in the district, it may be conservatively stated that while the effects of the war
are everywhere felt, and adjustments are being
made accordingly, the outlook is as promising
as could be expected. As the cotton crop is
marketed, the excellent price of the staple will
put money into circulation in the more favored
agricultural sections and tend to largely offset
the situation in the w^est and southwest, where
a two years' drought has all but paralyzed the
cattle industry and farming pursuits. We see
nothing alarming in the conditions obtaining,
although conditions can not become normal
until the cattle industry of the west is on its
feet, farming again active, and the war ends.
OCTOBER 1,1918.
ience to both producers and banks. Warehousing facilities are too limited to provide for
the accumulating products. War industries are
steadily expanding under increasing demands,
although some have been handicapped by inability to obtain materials.
There is a continued shortage of water for1
irrigation and power in northern California.
Some little relief was given by rains September
12 and 13 with unusual precipitation for that
time of year, amounting to 3.56 inches in
Sacramento, 2.53 inches in San Francisco, and
6.25 inches in the Santa Clara Valley. Collections are good and retail business is limited by
inadequate supplies.
With strong demand for loans, interest
rates remain firm at 6 per cent in industrial
and 7 per cent in agricultural centers. Increasing returns from crops should offset the
borrowing demand in agricultural districts.
There is growing recognition among bankers of
the district of the importance of discriminating
against extensions of credit for nonessentials,
but frequently the fear of losing a profitable
account to a competitor prevents desirable restriction, which could be had if the bankers of
each city would act jointly.
Total discounts by this bank from August
1 to September 19 increased from $86,000,000
to $112,000,000. Of the latter amount
$43,000,000 were secured by Government obligations, having increased from $20,000,000 on
August 1. The district's total subscriptions to
five issues of United States certificates of
indebtedness have aggregated $212,250,000,
the quota being $211,900,000.
Bank clearings for 20 principal cities of the
district in August increased 24 per cent over
the corresponding month of 1917. Portland,
Tacoma, Seattle, San Francisco, and Los
Angeles increased 81, 70, 64, 13, and 8 per
cent, respectively. Building permits for 17
cities amounted to $5,629,000, increasing 15
per cent over the previous month and 26 per
cent over August, 1917. The increase is
found principally in the coast industrial
centers.
The Government report of September 1
DISTRICT NO. 12—SAN FRANCISCO.
gives the following estimated production of
During the last month there has been great grain, hay, and potatoes for the district:
activity in all essential lines of commerce and
industry in this district. Harvesting of the
1918
1917
great variety of crops of the district is well
along, and first returns are being received. Wheat
82,369,000
bushels
70,899,000
39,380,000
do..
43,037,000
Delayed payments for Government purchases Oats
49,987,000
59,573,000
Barley
do..
and postponed selection by the Government of Com
7,833,900
7,263,000
do..
34,561,000
47,158,000
do..
those portions of food products whieh have Potatoes
11,591,000
Hay
tons
8,936,000
been commandeered are causing inconven-
OCTOBEE 1, 1918.
FEDERAL EESERVE BULLETIN.
995
Rice in California on September 1 was rated June of 250,697 barrels. Stored stocks inat 90 compared with 83.7 for the United creased from 25,424,337 barrels on July 1 to
States, forecasting a yield of 6,318,000 bushels 25,632,813 barrels on August 1. Stored stocks
compared with 5,600,000 bushels in 1917.
on August 1, 1917, were 35,781,323 barrels.
Prune growers of Oregon and California
At rortland, Oreg., and Salt Lake City about
have been requested by the Food Administra- 15,300,000 and 15,000,000 pounds, respectively,
tion to make no shipments of any part of of the 1918 clip of wool nave been received.
their crop until the Government requirements, Of these amounts only 10 per cent had been
estimated at 65,000,000 pounds, have been graded and paid for on September 1, the reprovided for. The Oregon crop is estimated mainder being stored in warehouses.
at about 50,000,000 pounds, the largest that
During the first half of 1918 coal production
State has ever produced. The California crop in Utah increased 20 per cent over the correwas estimated September 1 at 150,000,000 sponding period of 1917. The same rate of
ounds, but it is feared that the damage done production for the remainder of the year is
y the unseasonable rainfall of September 12 expected. Utah consumes 41 per cent of this
and 13 will decrease the California crop production, the remainder going to adjacent
possibly as much as 40 per cent, so that only States.
a small supply may be available for civilian
In 1917 Arizona was the leading copper proconsumption.
ducing State of the Union, with a production
Carload shipments of fresh fruits from Cali- of 712,166,891 pounds, 38 per cent of the counfornia this season to September 17 are 17,118 try's output. This was 9,666,278 pounds less
cars compared with 13,434 cars to the same than the production of 1916. With more settled labor conditions this year all previous
date last year.
The September 1 Government report gives figures will probably be exceeded with an outthe condition of cotton as 92 in California and put estimated at more than 800,000,000 pounds.
Gold production in California in 1917
96 in Arizona compared with 55.7 for the
United States. A yield of 100,000 bales is ex- amounted to $20,087,504 compared with a propected in California compared with 67,000 duction of $21,410,741 in 1916. Owing to the
bales last year. In Arizona a crop of about increasing cost of labor and supplies, gold
52,000 bales is predicted compared with 35,000 mining is showing a continually decreasing
bales in 1917. About 80 per cent of the Ari- ! profit and the 1918 output will fall materially
zona crop is of the Pima variety of Egyptian I below that of 1917.
long-staple cotton.
Shipbuilding continues to be the most promOn September 1 the condition of oranges, inent industry of the district. Although hamaccording to the Government estimate, was 65 | pered by a shortage of unskilled labor and slow
compared with 50 in 1917 and 84 for the 10-year deliveries of materials from the East, the westaverage, and the condition of lemons was 86 ern shipyards continue to lead those of the
compared with 55 in 1917 and 84 for the 10- country in speed of production. The pennants
awarded monthly by the Emergency Fleet
year average.
During the past month the lumber producers Corporation to leading ship constructors were
of the Pacific Northwest have maintained nor- won in July as follows:
mal production, about 80,000,000 feet weekly.
The draft is naturally disorganizing the lumberWooden-ship
Steel-ship
ing forces, and the difficulties of lumber proconstructors.
constructors.
ducers are further increased by inability to
secure needed supplies such as steel cable.
Aberdeen, Wash.
Seattle, Wash
First place pennant...
Portland, Oreg.
place pennant.
Alameda, Cal
Petroleum production in California during Second
Third place pennant..
Kearney, N. J.
Portland, Oreg
July was 8,737,629 barrels, an increase over
S
996
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
COMPARATIVE STATEMENT OF LEADING BANKS OF ISSUE, 1914 AND 1918,
Tn continuation of similar figures printed on
pages 681 of the September, 1917, JBULLETIN
there is presented below a comparative statement showing the condition of the leading central banks of issue in 1914 immediately preceding the outbreak of the war and correspond- |
ing dates in 1918. Figures have also been
added showing changes in the condition of the
Federal Reserve Banks between the end of 1914
and the last Friday in July of the present year.
As in the previous number of the BULLETIN,
the principal items in the foreign bank state- j
Comparative statement showing principal
ments were rearranged and combined under
uniform heads commonly used in American
bank statements. This necessarily implied
some arbitrary grouping, especially in cases
where the true meaning of the original items
seemed doubtful. It is believed, however, that
the figures in the statement are on a fairly
comparable basis, and show quite clearly the
relative effect of the war upon the principal
assets and liabilities of these banks since its
commencement.
assets and liabilities of the leading central banks of issue at dates specified.
[In thousands of dollars; i. o., 000 omitted.]
Federal Reserve
Banks.
Dec. 31, Julv 26,
1918. '
1914.
Bank of England.
July 29,
1914.
July 31,
1918.
il85,567
327,318
Bank of France.
July 30,
19.14.
July 25,
1918.
Bank of Italy.
German
Reichsbank.
Bank of
Netherlands.
Dec. 31, June 20;
1914.
1918.
July 31,
1914.
J 159,161
298,261
558,653
65,140
287,479
I 14,914
65,409
28,659
3,307
3,133
363,670
587,312
68,477
290,612
7,960
440,663
5,003
5,091
7,960
440,663
5,003
5,091
745
2,740
495,296 3,805,299
35,430
24,447
1,998
29,465
435,823
24,798
3,612
928
45,144
3,600
39.831
633,690 2,220,474 1,064,081 5,301,305
138,248
408,725
70,822
35,222
35,222 34,740
34,740
42,840
42,840
16,713
8,206
8,292 13,515
18,037
22,569
17,726
183,900
73,834
26,710 40,320 6 59,541 \ 299,515 2,024,160
673,723 182,881 742,103 118,035 756,559
276,760 1,2S9,885 5,625,577 417,352 1,465,731 692,442 3,023,671
49 105,914 177,794
9,728
4,948
11,558 188,065
8,040
2,011
1,904
124,796
1,497
8,040
2,042
30,865
365,719
2,059
138,248
408,725
July 31, July 25, July 27,
1914.
1918.
1918.
ASSETS.
Gold coin and bullion
Silver and other metallic
reserve
Total metallic vault
reserve
241,321 1,962,572
17,823
259,144 1,971,372
Total
Notes of other banks of
issue
Loans and discounts
Advances on bullion and
specie, securities, merchandise, etc
Securities
Sundry assets
Total
185,567
f 799,279
655,128
1 120,689
53,491
919,968
708,619
236,633
174,075
393,162
281,643
8,195
112,919
f 41,019
41,067
963 663,920
374,969 1
I 38,600 3,686,300
105,865
868,999 I
13,102
80,582 4,391,287
105,865
882,101
a 5,416
180,297
29,700
835,624
29,180
39,468
28,618
113,198
42,595
30,262
327,318
11,628
Gold held abroad
Government securities:
Bonds, consols, etc
Short-term securities.
Other Government securities
. ..
8,800
205
8,755
8,960
40,090
16,922 |l43,343
46,329
103,341
4,624
11,277
9,909 1,507,425
734
9,237
143,343
23*6,222
13,245
374,969
519,6S0
471,746
420,339
146,443
172,913
77,173
247,735
292,608 % 618,288 559,132 1,221,967 1,695,912 6,615,698
[-236,633
48,121
94,392
51,901
LIABILITIES.
76,441
18,051
Capital paid in
1,134
Surplus
233,040
Government deposits
263,948 1,401,107
Other deposits
Bank notes in circulation. 10,000 1,881,919
Sundry liabilities
24,647
Total
292,608 3,818,288
70,822
16,992
61,869
264,830
184,566
53
559,132 1,221,967 1 695,912 6,615,698
Includes 11,737,000 of foreign bank notes.
633,690 2,220,474 1,064,081 5,301,305
6 Overdraft.
FEDERAL RESERVE
OCTOBER 1 , 1 9 1 8 .
997
BULLETIN.
Comparative statement showing principal assets and liabilities of the leading central banks of issue of dates
specified—Continued.
Kiksbank,
Sweden.
Norgos Bank,
Norway.
National Bank,
Copenhagen,
Denmark.
Bank of Spain.
Swiss National
Bank.
Bank of Japan.
July 31, June 29, July 31,1 July 31, July 31, July 31 July 24, July 27, July 23, July 31, June 30, July 27,
1918.
1918.
1918.
1914.
1918.
1914.
1918.
1914.
1918.
1914.
1914,
1914.
Gold coin and bullion
24,746
Silver and other metallic reserve— 1,408
Total metallic vault reserve.. 26,154
Gold held abroad
Foreign credits
13,564
Government securities:
Bonds, consols, etc
Short-term securities
. 17,332
Other Government securities....
Total.
1
Capital paid in
Surplus
Government deposits
Other deposits.
.
Bank notes in circulation
Sundry liabilities
Total.
4,405
32,902
oi Am |/50,859
24,410
| ' 6 4 6 I 105,798
143j063
413,728 ! 34,753 73,847
130,374 ! 3,656 10,495
258,757
325,272
14,405
32,902
24,410
544,102 | 38,409 | 84,342 258,757
325,272
51,505 | 248,861
4,550
9,199
8,166
16,566
17,149
18,774 i
I
125,853
7,332 125,853 |
a
Notes of other banks of issue
1,893
Loans and discounts
, 42,303
Advances on bullion, and specie,
securities, merchandise, etc
,
Securities
Sundry assets
813
Total.
>9,144
.2,737 i
2,399
3,494
2,3
3,494
23,6
844,970
2,307 !
27,098 | 60,425
3,106 I
28,287 .
1,484 !.
41,133 •.
9,627 \
7,974
67,047
95,426 !l
"29,"i99
"i^oo'i]
96,246
114,726 !
152,579
168,372
2,249
13,228
'
17,339
V - - - . -il 11,176
3,829 ; 28,515 |
10,956
*85
16,611
28,052
18,099
56,925 | 76,061
20,697
2,699
2,446
5,594
10,100 !
1,919 i 9,775
7,645 ! 204,488
286,760
130,675
92,059
238,203 j
66,548 j .
861,451 i,67,247
169,310 | 577,598
'791,456
11,900
! 2,975
\ 11O8 .4 An
j > 40
54,367
4,377
13,400
3,350
29,925
178,895
12,633
28,950 4,825
7,236 i
,
471
5,404
2,199 ;
/ a 1,905 |-28,819
22,731
5,496
\230,370
39,525 97,908 373,557 568,267 83,176
12,092
30,365 2,606
4,825
18,675
664 18,551
22,104 /254,585
\ 10,913
137,759 274,854
3,958
18
IS, 675
19,944
371,371
18,069
362,616
781
92,059
238,203
32,859
19,933
99,744
66,548
861,451
67,247
169,310
577,596 4791,456
1 Includes both Government and corporate securities.
2 Included foreign bank notes; also drafts and bills payable at sight.
> Due from Government in current account.
« Does not include 59,017,000 yen=S29,419,975 of fractional paper currency, issued by the Government and reported among the bank's liabilities: also an equal amount held by the bank for redemption of said currency and reported among the bank's assets.
NOTE.—For latest statements of the Russian State Bank (Oct. 29,1917) and the Austro-Hungarian Bank (Dec. 7, 1917) see pages 244-245
of the March (1918) BULLETIN.
998
FEDERAL RESERVE BULLETIN.
OOTOBKB 1, 1918.
Reserves, Circulation, and Security Holdings of volume of bank notes outstanding, the Bank of
the Banks of England and of France; also of France having a monopoly of note issue. For
the German Reichsbank.
the nine months under review the note circula-
tion of the Bank of France shows an increase
In the following tables and accompanying of 6,743 million francs, or over 1.3 billion doldiagrams are shown changes in the reserves, lars (at the nominal rate of 19.3 cents per
notes, circulation, and security holdings of the franc). The gold vault reserve of the bank
three leading European banks since the end increased meanwhile by over 100 million francs,
of November, 1917. These tables are in con- while the ratio of this reserve to notes in circutinuation of similar tables printed on pages lation declined from 14.5 to 11.5 per cent.
943-946 of the December, 1917, BULLETIN.
BANK OF ENGLAND.
The statement for the Russian State Bank has
[In millions of pounds sterling and dollars.]
been dropped for the reason that the bank has
Total gold and Bank of Eng- rota! securities
ubiished no accounts for a date later than
silver in issue
land notes in
in banking
and banking
actual
'ctober 29, 1917, for which date the figures are
department.
departments.
citculation.
shown in the December publication.
Date.
Since November, 1917, the circulation of
MilMilMilMilMil- | Milnotes issued by the three leading institutions,
lions of lions of lions of lions of lions of lions of
pounds. dollars. pounds. dollars. pounds, dollars.
especially the French and German banks, has
shown a continuous increase, largely in response
to the cash requirements of the Governments. Nov. 281917.
150.2
56.5 275.0
43.1 209.7
730.9
153.2
58.3 283.7
45.9. 223.4
In Great Britain the increase in circulation is Dec. 26
745.5
made up not merely of the additional 70.6 mil1918.
30
147.8
58.6 285.2
45.9 223.4
719.3
lions of Bank of England notes, but to a much Jan.
Feb. 27
289.1
59.4
47.3 230.2 155.0
754.3
294.9
232.6
168.3
Mar.
27
60.6
47.8
819.0
larger extent of new currency notes issued by Apr. 24
235.5 161.6
61.0 296.9
48.4
786.4
the Treasury principally against commercial May 29 ,
163.2
63.5 309.0
51.1 248.7
794.2
261.3 152.5
June 26
65.2 317.3
53.7
742.1
paper deposited by the "banks of the country. July 31
165.4
67.3 327.5
56.9 276.9
804.9
69.5 338.2
57.6 280.3 158.7
772.3
On August 28 of the present year the amount Aug. 28
of these notes outstanding was SI,303,463,000,
BANK OF FRANCE.
as against $944,757,000 on November 28, 1917,
[In millions of francs and dollars.]
while the gold cover against these notes remains unchanged at $138,695,000. In GerNotes in circula- War advances to
Gold in vault.
tion.
Government.
many, besides the considerable increase in the
Date.
circulation of Reichsbank notes, there has been
MilMillions lions
Millions Mil-of Millions Millions
of
of
an even larger relative gain in the circulation
of francs. lions
dollars. of francs. dollars. of francs. dollars.
of loan bank notes, the so-called DarlehnsTcassensclieine. The amount of such notes in Nov. 1917.
3,296.3 636.2 22,690.9 4,379.3 12,550.0 2,422.2
29
circulation on August 23 of the present year Dec. 27
3,314.4
639.7 22,336.8 4,311.0 12,500.0 2,412.5
1918.
was 7,934 million marks, compared with 5,860 Jan. 31
4,542.1 12,800.0 2,170.4
3,325.1 641.7 23,534.3
million marks on November 30, 1917, as Feb. 28
3,331.0 642.9 24,308.3 4,691.5 12,950.0 2,499.4
3,336.4
Mar. 28
643.9 25,179.3 4,859.6 14,000.0 2,702.0
against an increase in the circulation of Reichs- Apr.
3,341.8 645.0 26,395.3 5,094.3 15,650.0 3,020.5
25
3,346.6 645.9 28,012.2 5,406.4 17,500.0 3,377.5
May 30
bank notes from 10,622 million marks on No- June
3,361.7 648.8 28,550.4 5,510.2 18,450.0 3,560.9
27
vember 30 to 13,639 million marks on the last July 25
3,394.4
655.1 29,148.1 5,625.6 18,900.0 3,647.7
3,398.3 655.9 29,434.0 5,680.8 19,150.0 3,696.0
Aug. 29
of August of the present year. As the amount
of Imperial Treasury notes in circulation reGERMAN REICHSBANK.
[In millions of marks and dollars.]
mained almost constant at about 345 millions
during the entire period, the increase in national
Discounts and
Notes in circulaGold in vault.
advances.
tion.
paper currency between the end of November,
Date.
1917, and the end of August of the present year
Millions Mil- Millions Millions Millions
Milof
lions of
of
of
of
lions of
was in excess of 5 billion marks, or about 1.2
marks. dollars. marks. dollars. marks. dollars.
billion dollars (at the nominal rate of 23.8 cents
per mark). As against this enormous increase Nov. 1917.
30
2,405.3 572.5 10,622.3 2,528.1 12,234.2 2,911.7
in paper circulation the gold reserve of the Dec. 31
2,405.6 572.5 11,467.7 2,729.3 14,596.1 3,473.9
1918.
Reichsbank shows a decline from 2,405 to 2,348 Jan, 31
2,406.1 572.7 11,138.9 2,651.1 13,105.5 3,119.1
million marks, the per cent gold cover of the Feb.28
2,107.8 573.1 11,310.8 2,692.0 13,048.5 3,105.5
Mar.
30
2,408.5
573.2 11,977.8 2,850.7 16,034.3 3,816.2
total circulating notes showing a decline from Apr. 30
2,344.0 557.9 11,820.8 2,813.4 13,887.8 3,305.3
Mav31
2,345.7
558.3 12,002.7 2,856.6 14,544.7 3,461.7
14.3 to 10.7 per cent.
June 29
2,346.2 558.4 12,510.4 2,977.5 16,670.9 3,967.7
2,347.3 558.7 12,704.5 3,023.7 15,988.5 3,805.3
It is only in France that the increase in paper Tuiy31
2,318.1 558.8 13,639.1 3,246.1 17,674.2 4,206.5
circulation is measured by the increase in the Aug. 31
g
II
GOLD IN VAULT, BANK NOTES IN CIRCULATION, ETC,
OF THE BANK OF ENGLAND, SINCE THE OUTBREAK OF THE WAR.
noo-
f/00
tOOQ-
WO
po.
WO
800
wo-
V-
700
JKL
600-
600
:
500
sv
400
400300-
300
200-
ZOO
il 3
!
3
! B
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1002
OCTOKHR 1, 3 018.
FEDERAL RESERVE BULLETIN.
REPORTS OF BANK TRANSACTIONS.
In the accompanying table are given figures
of debits to deposit account of clearing-house
banks in about 125 cities for the weekly periods
ending Wednesday, September 4, 11, 18, and
25, in continuation of similar tables in the
September Federal Reserve Bulletin, giving
data for three weekly periods in the month of
August. The number of centers from which
reports are received has been gradually increased, and arrangements are being perfected
whereby data for practically all the important
centers will be sent to the Federal Reserve
Board for use in its consolidated weekly
statements.
Separate figures are shown for debits to
individual account and for debits to banks' and
bankers' account. In a considerable number of
cases the earlier reports published in the previous issue of the "BULLETIN gave merely one
combined total for both items, but at the request of the Board separate figures are now
reported by practically all centers. Debits to
individual account represent the volume of
business transactions, while debits to banks'
and bankers' account represent the volume of
interbank transactions. The former give rise
to and are partially represented in the latter.
A check passing in settlement of a business
transaction between two individuals carrying
accounts with the same bank does not appear
in the figures of debits to bank account. On
the other hand, a check passing between two
individuals carrying accounts with separate
banks may pass through a number of other
banks in its course from the payee's bank to
the drawer's bank, giving rise to a debit to
bank account on the books of each of the banks
through which it passes, until it reaches the
bank on which it is drawn. As a result, figures
of debits to bank account are not inclusive of all
business transactions, and on the other hand
comprise duplications and reduplications of
such transactions whenever the checks in settlement of such transactions pass through more
than one bank. Debits to bank account as an
index of business transactions are thus subject
to the same objections as are generally raised
against figures of clearings where used as a like
index.- The debits to bank account have,
however, their specific use, as they show the
volume of interbank transactions as distinct
from debits to individual account, which represent the volume of business transactions. It
follows that a cumulation of these two classes
of items is not only of little value, but may be
positively misleading. It is for this reason
that figures for the two items have not been
combined in the tables which follow.
Figures of reporting clearing houses by Federal Reserve districts are as follows:
Weeklyfiguresof clearing-house bank debits to deposit account.
[In thousands of dollars; i. e., 000 omitted.]
Debits to banks, and bankers' account.
Debits to individual account.
District.
Sept. 4.
No. 1—Boston:
Bangor
Boston
Fall River
Hartford
Holyoke
Lowell
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
Sept. 11.
2,429
170,111
5,452
2,733
204,212
7,045
2,395
3,858
4,477
13,193
Sept. 18.
Sept. 25.
Sept. 4.
Sept. 11.
432
176,730
319
37
154
122
416
21,048
6,295
6,947
11,622
2,386
200,072
7,419
16,914
2,930
4,120
5,674
12,603
6,155
25,383
7,631
6,485
12,728
334
141,030
238
2,547
4,724
5,005
13,456
6,905
23,174
7,391
6,809
12,609
2,346
219,705
6,778
19,875
2,801
5,563
5,837
14,363
7,889
26,531
7,830
7,726
14,323
14,485
2,147
47,253
2.997,636
' 2,788
19,835
10,575
15,563
2,623
55,276
3,512,698
3,385
19,992
7,233
15,205
2,923
60,532
3,014,507
3,984
23,706
13,205
19,497
2,561
58,231
3,077,011
3,544
20,894
8,292
1,812
4,416
5,350
3,595
4,716
6,439
3,478
260,842
4,859
4,198
259,117
4,151
2,135
5,768
6,410
2,952
4,340
282,786
5,480
2,672
5,125
5,981
2,180
4,005
277,000
6,419
Sept. 18.
Sept. 25.
1,363
112
498
824
516
287
224
389
2,856
1,373
185
319
899
462
199,692
443
1,092
840
261
390
531
2,893
1,651
153
370
843
445
191,703
191
1,138
693
316
135
279
2,810
1,474
133
356
1,572
10,866
15,063
12,082
12,659
9,709
1,267,249
218
342
800
i3,967
1,432,572
130
495
14,769
1,511,209
295
534
395
12,895
1,548,827
317
555
140
249
19
258,627
1
198
1,634
307,667
288,910
7
22
1,371
24
291,868
1
OCTOBER 1 , 1 9 1 8 .
1003
FEDERAL RESERVE BULLETIN.
Weekly figures of clearing-house bank debits to deposit
account—Continued.
[In thousands of dollars; i. c , 000 omitted.]
Debits to banks' and bankers' account.
District.
Sept. 25.
No. 3—Philadelphia—Continued.
Scranton
Trenton
Wilkes-Barre
Williamsport
Wilmington
York
No. 4—Cleveland:
Akron
51,334
Cincinnati
21,946
Columbus.
11,006
Dayton.
7,054
Erie....
2,705
Greensburg, Pa,
3,302
Lexington, Ky,
1,949
2,033
Newcastle
1,958
2,132
Oil City
2,643
Spiingfield
2,623
3,136
23,786
Toledo
21,856
17,012
6,887
Wheeling
9,183
11,138
15,857
Youngstown
6,183
No. .5.—Richmond:
76,302
73,294 I
Baltimore
68,713
Charlotte
17,145 !
Norfolk
3,266 !
Raleigh
21,218 I
Richmond
19,829
24,125
No. 6.—Atlanta:
23,339 I
19,172 |
22,173
Atlanta
9,946 j
6,625 |
9,662
Augusta
12,040 !j
12,330
12,680 i
Birmingham
8,753
7^763 !
9,308
Chattanooga
9,750
7,445 I
9,056
Jacksonville
5,657
5,513
5,955
Knoxville
7,324
5,666 !
6,596
Macon
6,193
,
5,594
6,021
Mobile
5 222 !
3,398
4,485
Montgomery
19,242
Nashville
18,094
20,047
52,791
Now Orleans
48,477 !
53,884
1,851
Pgnsacola
1,727
1,650
13,099
16,580
Savannah
17,602
3,030
3,253
3,686
Tampa
1,266
1,566
Vicksburg
1,428
No. 7.—Chicago:
2,390
2,233
2,251
Bay City.
2,258
2,432
2,273
Bioomington, 111.
110,576
114,521
113,171
Cedar Rapids
428,084
610,176
396,781
Chicago...
6,002
6,200
Davenport
5,306
3,020
2,936
Decatur, 111
2,854
148,944
143,640
i 35,595 j
Des Moines
82,993
105,211
87,739
Detroit
1,966
2,242
1,587
Dubuque
1 5,107
13,283
1 3,580
Flint.
5,663
4,312
3,657
Fort Wayne
7,890
14,030
10,853
Grand Rapids...
26,754
30,759
22,457
Indianapolis
12,872
1 2,633
Jackson, Mich...
3,085
"2,532 i
2,995
Kalamazoo
2,830
Lansing
30,552 !
52,252
""*54,"62o'
Milwaukee
9,382 j
11,977
10,464
Pooria
4,448
3,659 I
4,654
Rockford.Ill....
10,769
11,693
1,740
Sioux City, Iowa
3,004
4,429
'897 I
South Bend
4,390
3,949 I
4,667
Springfield, 111...
2,901
2,392 l
2,832
Waterloo, Iowa..
No. 8.—St. Louis:
3,219
4,066
4,391
Evansville
5,342
8,194
7,395
Little Rock
25,250
27,091
20,720
Louisville
24,210
22,572
15,440
Memphis
139,877
127,962
118,837
St. Louis
Springfield
No. 9—Minneapolis:
1,890
2,280
1,796
Aberdeen
2,011
2,255
Billings
6,158
Butte
52,535
14,033
30,259
Duluth
3,581
Fargo
Grand Forks
3,275
Great Falls
1 Figures comprise debits to both individual as well as to
10,945
9,422
5,810
2,915 !
7,972
2,896
14,305
51,442
21,221
10,968
6,445
2,639
3,357
2,082
3,385
2,181
20,880
7,482
11,835
76,175
5,788
15,911 i
3,574 j .
23,112 i
24,575 !
10,728 '
13,680
8,720
9,388
4,918
7,237
6,323
4,656
19,891
54,256
1,656
15,664
3,485
1,629
2,535
l!o37
2; 614
2,693
7,906
9,033
34
2,630
1,617
2,465
2,187
7,361
9,121
27
39,807
8,271
23,836
2,419
70,589
48,930
66,394
23,838
1,813
65,193
15,755
889
2,513
3,004
3,887
1,042
2,894
662
505
12,251
31,341
1,518
7,307
714
22,826
1,690
3,664
4,552
6,381
1,601
3,648
841
673
13,852
32,006
990
13,530
816
120
22,136
3,436
3,900
4,285
5,905
1,493
3,879
969
614
15.163
40,538
923 I
14,154
1,495
234
27,394
3,516
4,574
4,802
5.531
1,229
4,118
966
413
17,007
40,556
1,194
15,188
1,567
102
4.42 j
1,011
420
730
i
i
!
i
So I
371 I
I
!
I
I
i
j
!
i
i
j
940 j
516
843
441,922 !
2,192 !
709 i
477,242
1,408
855
651,333
1.048
'735
580,204
935
656
37,188 I
1,070 I
44,478
1,007
44,685
813
1,241
2,809
20,500
1,817
14,382
25,874
1,504
4,823
26,372
44,879
1,300
47
1,250
4,464
22,982
376
"18*756
1,969
85
12,111
2,314
960
819
462
150
32,564
2,302
62
1,106
1,932
1,106
1,309
29, 337
2,249
168
9.861
1,970
947
772
4,700
7,212
26,120
38,750
136,202 .
1,299 I
1,077
4,163
11,320
9,340
114,140
2,111
5,243
15,600
17,148
136,870
1,888
6,549
14,787
25,155
137,612
1,937
1,832 I
1,276
1,667
2,005
2,383 j
1,947 i
113,496 I
527,579
5,972 |
2,875 !
i 39,717
98,369
1,800
4,105
5,408
16,959
29,184
2,993
3,103
49,102
10,612
4,370
11,012
2,838
4,253
3,224
5,518
63,802 I
4,800
1,468
3,602
banks' and bankers' account.
372
176
28,541
2,394
126
12,215
1,759
1,879
947
421
1,941
1,196
4,403
6,600
3,431
1,212
6,504
14,986
24,380
140,850
1,185
j
!
I
I
6.216 I
1,738
1,189
3,624
3,982
2,079
6,837
1004
OCTOBER 1,191S.
FEDERAL BESEEVE BULLETIN.
Weeklyfiguresof clearing-house bank debits to deposit accounts—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Debits to banks' and bankers' account.
Debits to individual account.
District.
Sept. 4.
No. 9—Minneapolis.
Helena
Minneapolis
St. Paul
Superior
No. 10—Kansas City:
Atchison
Bartlesville.Okla..
Colorado Springs...
Denver
Joplin
Kansas City, Kans.
Kansas City. Mo...
Muskogee, Okla
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Wichita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
Shreveport
Texarkana
Tuscon
Waco
No. 12—Sas Francisco:
Fresno
Long Beach
Los Angeles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
Seattle
Spokane
Stockton
Tacoma
Yakima
Sept. 11.
1,760
6(5,058
23,086
1,401
2,198
1,216
1,654
1,929
22,255
3,048
2,283
88,654
1,827
7,947
62,186
2,106
35,231
3,620
10,937
15,918
Sept. 18.
Sept. 25.
2,238
1,920
107,739
33,357
2,235
2,099
113,331
35,696
2,145
913
1,793
2,401
29,216
3,777
3,356
105,876
2,246
13,231
74,663 i
2,903
19,193
4,848
15,067
11,230
1,064
2,251
2,484
26,395
4,037
3,032
103,855
3,960
13,968
59,811
2,804
18,208
4,354
18,168
8,324
1,574
2,274
25,303
3,369
3,719
100,411
2,944
12,128
76,350
2,394
18,328
4,122
15;626
6,322
2,464
3,069
25,687
3,720
12,524
6,669
35,547
4,488
1,231
3,252
3,816
30,595
4,393
14,892
7,919
29,614
6,031
1,289
3,786
3,736
32,714
5,216
14,833
7,869
25,775
5,854
1,849
4,455
5,073
5,614
1,905
35,942
9,274
2,861
1,797
33,533
4,802
1,640
31,226
10,527
3,594
1,836
38,512
9,779
4,015
14,139
4,591
34,248
6,814
43,056
9,989
8,347
1,610
13,306
2,290
6,262
2,098
53,995
8,194
3,607
1,987
43,604
1,753
16,118
11,686
5,040
48,579
9,865
5,150
13,103
1,750
981
2,742
4,146
30,523
4,878
16,390
7,252
36,715
5,639
1,228
1,413
3,738
6,262
2,004
46,382
12,015
3,808
1,766
51,126
1,460
11,857
15,530
4,480
148,046
51,368
9,742
3,855
9,625
1,568
Sept. 4.
Sept. 11.
Sept. 18.
Sept. 25.
2,379
53,761
28,180
113
3,746
80,645
40,597
91
3,088
93,723
43,385
141
2,893
99,859
45,691
193
321
158
642
15,015
501
4,806
153,778
1,553
48,948
559
20,106
1,204
6,847
14,430
67
134
• 559
21,414
911
5,440
185,694
2,130
10,918
70,254
792
18,924
2,792
7,930
18,544
59 0
197
511
22,749
880
5,763
177,851
3,024
13,775
61,410
754
15,354
1,720
8,222
16,517
545
341
452
20,278
822
5,754
181,317
3,125
11,971
66,772
998
16,445
1,731
8,081
12,342
5,510
362
56,052
4,650
27,245
6,136
49,232
2,470
254
5,929
460
60,114
6,083
32,960
5,578
60,188
3,428
354
4,793
458
64.197
5!945
30,384
7,219
58,131
4,436
428
4,368
3,357
3,119
432
62,545
6,210
35,116
6,982
59,911
4,431
512
1,449
3,183
4,577
49
26,606
1,800
1,644
206
20,373
4,137
43
21,971
2,308
2,967
164
27,037
12,882
281
16,078
241
5,762
40
43,632
2,492
4 554
224
29,168
1,510
9,902
17,658
193
14,901
7,312
20,377
9,317
3,494
100
7,242
179
5,362
76
34,170
3,255
4,849
- 128
28,243
1,362
5,102
19,235
447
103,734
38,129
10,394
2,161
11,324
212
20,624
10,090
3,184
7,486
145
Recapitulation showing figures for clearing-house centers reporting for each of the four weeks.
[In thousands of dollars; i. e., 000 omitted.]
Number of
centers included.
District.
No. 1—Boston
No. 2—New York
No. 3—Philadelphia
No. 4—Cleveland
No. 5—Richmond
No. 6—Atlanta
No. 7—Chicago
No. 8—St. Louis
No. 9—Minneapolis
No. 10—Kansas City
No. 11—Pallas
No. 12—San Francisco
Total
.
Debits to banks' and bankers' account.
Debits to individual account.
Sept. 25.
Sept. 4.
Sept. 11.
Sept. 18.
Sept. 25.
Sept. 4.
Sept. 11.
Sept. 18.
11
7
12
9
2
15
21
5
6
15
9
13
247,827
3,094,719
316,512
110,359
88,542
159,549
681,868
183,558
108,134
260,811
95,399
155,739
289,705
3,616,770
322,028
135,664
100,427
1S2,428
6S8,429
1S8,369
163,767
290,713
101,801
179,508
313,803
3,134,062
350,000
133,561
94,512
184,962
935,717
202,639
199,676
272,715
101,632
209,770
287,431
3,190,030
341,162
129,693
99,287
186,716
838,198
212,984
219,010
275,847
109,513
215,676
145,128
1,289,184
259,088
49,W?0
83,472
84,367
546,332
140,040
88,377
275,850
151,911
94,225
181,673
1,462,227
310,306
60,136
106,320
107,190
609,265
176,972
132,264
346,503
175,094
112,061
205,636
1,539,284
291,030
63,477
103,304
119,124
778,491
185,991
148,868
329,317
175,991
142,068
197,302
1,575,253
294,066
56,244
110,396
128,157
706,100
187,932
153,998
330,980
179,258
156,824
125
5,483,017
6,259,609
6,133,049
6,105,547
3.206,994
3,780,011
4,082,581
4,076,510
OCTOBER 1,1918.
FEDERAL RESERVE BULLETIN.
WHOLESALE PRICES.
In accordance with the plans announced in
the September FEDERAL RESERVE BULLETIN,
there are presented in the table below monthly
index numbers of wholesale prices since Januuary, 1914, using the average prices in the year
1913 as a base. The general index number,
comprising at present 287 commodities, is that
of the United States Bureau of Labor Statistics,
which has kindly agreed to place its compilation of index numbers and data employed in
their construction at the disposal of the Federal
Reserve Board for use each month in the
FEDERAL RESERVE BULLETIN. The technical
method of construction employed by the
bureau has been described at some length in
previous issues of the BULLETIN.
In addition to the bureau's general index
number, separate numbers for certain particular classes of commodities are presented. The
principle of grouping employed has been a
composite one. It is generally believed that
for the study of business conditions comparison
of the prices of raw materials with those of
manufactured products, and comparison of the
prices of producers' goods with those of consumers' goods, are of most significance. The
former may be termed an approach to the
problem from the supply side, the latter from
the demand side. In addition, the nature or
origin of the commodity, whether a farm, animal, forest, or mineral product, is often taken
into account.
It was deemed desirable to so classify the
commodities included in the general index
number that the above comparison may be
readily instituted. Each of the commodities
included in the final number was assigned
to one of the groups, the composite of the
groups thus coinciding with that forming the
basis for the general index number. The
grouping chosen comprises raw materials, including farm, animal, forest, and mineral
products; producers' goods, such as steel
rails, copper wire, and cotton yarn; and consumers' goods, such as flour, beef, and cotton
1005
textiles. In some instances, the classification
of commodities has been somewhat arbitrary,
as certain commodities are used both as producers' and consumers' goods. Flour is a
consumers' commodity to the housewife and a
producers' commodity to the baker. In such
cases the assignment has been made in accordance with the principal use of the commodity.
Again, it is often difficult to distinguish between
the classes of raw materials and producers'
goods. Iron and lumber provide cases in
point. The latter, while subject to some degree
of manufacture, is nevertheless believed to be
most satisfactorily classed under the head of
"raw materials," and accordingly forms the
forest products subgroup of the raw materials
group. In certain cases, however, notably
with respect to certain foodstuffs such as
prunes, lemons, and milk, it was deemed
preferable for the present purpose to include the commodity with the consumers'
goods group, although the manufacturing
process undergone may have been practically
negligible.
Owing to the rapid change in the character
of commodities on the market at the present
time, duo to conditions brought about by the
war, the list of commodities included in both
the general number of the Bureau of Labor
and the several groups here presented is subject to monthly revision. Prior to the present
year, revision of the list had been made yearly.
The statistical methods employed insure continuity in the index number, so that figures
from month to month are entirely comparable.
The list of commodities included in each of the
groups is given below. Changes in the list
will be noted from month to month and at
intervals the revised list will be published for
purposes of convenient reference. The index
numbers for the latest month are provisional,
due to the fact that certain of the data are not
received in time to render them available for
use in the calculations. Up to the present,
however, these changes have been so slight in
amount as to render unnecessary revision of
figures previously published.
1008
FEDERAL RESERVE BULLETIN.
UST OF COMMODITIES AT PRESENT INCLUDED IX EACH OF TILS GROUPS.
.. R A W MATERIALS (69 articles)—Continued.
i. MINERAL PRODUCTS (23 articles)—Continued.
A. R A W MATERIALS (69 articles).
1. ITA M PRODUCTS (16 articles):
Barley, fair to good or standard grade matting, Chicago.
Corn, No. 2, contract; mixed, Chicago.
No. 3, mixed, Chicago.
Cotton, middling, New Orleans.
upland middling, New York.
Flaxseed, No. lf cash, Minneapolis.
Hay, timothy No. 1, 2 and 3 wire, Chicago.
Hops, prime to choice, State, New York.
Oats, cash, contract, Chicago.
Rye, No. 2, cash, Chicago.
Tobacco, Burjey, good leaf, dark red, Louis\iiie.
Wheat, No. 1, northern spring, cash, Chicago.
No. 1, northern spring, cash, Minneapolis.
No. 2, red winter, Chicago.
No. 2, hard winter, Kansas City.
bluestem, Portland.
2. ANIMAL PRODUCTS (19 articles):
|
•
i
Douglas fir, No. 1, common, surfaced one side, Washington State.
drop siding, No. 2 and bettor, Washington
State.
Maple, hard and soft, lsts and 2ds, New York.
Oak, white, plain mixed rock, mountain and West Virginia stock, lsts and 2ds, Now York.
white, quartered, New York.
Pine, white, No. 2 barn, rough, New York rail.
white-, No. 2 uppers, rough, New York rail.
yellow, flooring, long-leaf, New York.
North Carolina, surfaced, boards, Norfolk.
Poplar, yollow, rough, New York.
Spruce, eastern, New York.
•4. MINERAL PRODUCTS (23 articles):
Coal, anthracite, broken, New York tidewater.
anthracite, chestnut, New York tidewater.
anthracite, egg, New York tidewater.
anthracite, stove, New York tidewater.
bituminous, run of mine (ICanawha), Cincinnati.
bituminous, prepared sizes, Chicago.
bituminous, run of mine, Chicago.
bituminous, screenings, Chicago.
bituminous, run of mine, St. Louis.
bituminous, prepared sizes, Pittsburgh.
semibituminous, Pocahontas, Norfolk.
semibituminous, run of mine, Cincinnati (New
River).
Coke, Connelisville, furnace.
Copper, ingot, electrolytic, New York.
Iron ore, Mesabi, Bessemer, 55 per cent, lower Lake ports.
Lead, pig, desilverized, New York.
Petroleum, crude, Pennsylvania, at wells.
Pig iron, basic, f. o. b . Mahoning or Shen&ngo Valley
furnace.
Bessemer, Pittsburgh,
foundry No. 2, northern, Pittsburgh.
foundry No. 2, southern, Cincinnati.
Tin, pig, New York.
Zinc, pig (spelter), western, New York,
! .1.5. PRODUCERS' GOODS (77 articles):
i
I
j
I
Cattle, steers, choice to prime, heavy beeves, Chicago.
j
steers, good to choice, corn-fed, Chicago.
Hides, Brazilian goatskins, New York.
calfskins, No. 1, country, 8-15 pounds, Chicago,
green salted, packers', heavy native steers, Chicago.
green salted, packers', heavy Texas steers, Chicago.
Hogs, heavy, range fair to choice, Chicago.
light, range common to good, Chicago.
Poultry, live fowls, Chicago.
live fowls, New York.
Sheep, ewes, native, plain to fancy, Chicago.
lambs, western, good to prime, Chicago,
wethers, common to best, Chicago.
Silk, raw, Japan, special extra, 13/15, New York,
raw, Japan, No. 1, Kansai, 13/15, Now York.
Wool, Ohio, fine de laine, scoured.
Ohio, medium fleece, 1/4 and 3/8 grades, scoured.
Ohio, fine clothing, scoured.
Ohio, half-bred, scoured.
3. FOREST PRODUCTS (11 articles):
OCTOBER 1, 1918.
Acetic; acid, 28 per cent. New York.
Alcohol, denatured, 180 proof, New York.
grain, ISO proof, V. S. P., New York,
wood, refined, 95 per cent, New York.
Alum, himp, New York.
Ammonia, anhydrous, New York.
Bar iron, best refined, Pittsburgh.
common, Pittsburgh,
Borax, crystals and granulated, New York.
Brick, common, run of kiln, salmon, Chicago,
common, red building, Cincinnati,
common, red domestic building, New York.
Carbonate of soda (sal soda), New York.
Caustic soda, 76 and 78 per cent, solid, New York.
Cement, domestic Portland, spot, New York.
Copper sulphate, 95 per cent, crystals (blue vitriol), New York.
Copper wire, bare, No. 8, B. & S. gauge and heavier (base size).
Cotton thread, 6-cord, 200 yard, J. <fc P. Coats.
Cotton yarns, white, northern, mule spun, 10/1 cones,
white, northern, mule spun, 22/1 cones.
Cottonseed meal, prime, New York.
Gasoline, motor, to garages. New York.
Glass, plate, polished, area 3 to 5 square feet, f. o. b. New York,
plate, polished, area 5 to 10 square feet, f. o. b. NQ~W York
window, Amerinnn, single, AA, 25 inches, 6 by 8 to 10 by
15, New York,
window, American, single, B, 25 inches, 6 by 8 to 10 by
15, New York.
Glycerin, chemically pure, in bulk, New York.
Jute, raw, M-double triangle, New York.
Lath, eastern spruce, U-inoh siab, New York.
Lead, carbonate of (whitfc lead), in oil, American, New York.
Lead pipe, New York.
Leather, chrome calf, dull or bright, range of B grades,
harness, California oak No. 1, Chicago.
sole, hemlock No. 1, middle.
solet-oak, scoured backs, heavy, Boston.
glazed kid, black, top grade, from Brazilian skins,
Boston.
side, black chrome, Boston,
tanned, B grade, Boston.
Lime, eastern, common, Now York.
Linen shoe thread, 10's, Barbour.
Linseed oil, raw, car lots, New York.
Lubricating oil, paraffin, 903 sp. gr., New York.
Malt, standard keg beer, New York.
Muriatic acid, 20 degrees, Now York.
Nails, wire, eightpenny fence and common, f. o. b . Pittsburgh,
Nitrate of soda (Chile saltpeter), 95 per cent, New York.
Nitric acid, 42 degrees, Now York.
Oleo oil, extra, Chicago.
Opium cases. U. S. P., New York.
Paper, news-print, rolls, contract.
Pipe, cast iron, f. o. b. New York.
Putty, common, New York.
Rope, pure manila, first grade, base size, New York.
Rosin, common to good, New York.
OCTOBEB 1, 1918,
FSDEEAL RESERVE BULLETIN.
B. PRODUCERS' GOODS (77 articles)—Continued.
Rubber, Para Island fine, New York.
Shingles, cypress, best, 5 inches wide, 16 inches long.
red cedar, clear, random width, 16 inches long.
Silver, bar. imo, New York.
Soda ash, light, 58 per cent, New York.
Steel billets, Bessemer, Pittsburgh.
plates, tank, •} inch thick, 6 to 100 inches wide, f. o. b.
Pittsburgh.
rails, Bessemer, standard, Pittsburgh,
rails, open hearth, standard. Pittsburgh,
structural, Chicago.
Sugar, 96 degrees, centrifugal, New York,
Sulphuric acid, 66 degrees, New York.
Tallow, packers' prime, Chicago.
Tin plate, domestic, coke, 14 by 20 inches, f. o. b. Pittsburgh.
Turpentine, southern, barrels, New York.
Wire, barbed, galvanized, L o. b. Chicago.
plain, annealed, Nos. 6 to 9, f. c. b. Pittsburgh.
Wood pulp, suiphits, domestic, unbleached, New York.
Worsted yarns, 2-40's, hall" blood.
2-50's, fine domestic.
2-32's, crossbred.
Zinc, oxide of (white zinc), American, standard, Now York.
sheet, f. o. b. La Saile, 111.
0.*CONSUMERS' GOODS (141 articles):
Beans, medium choice, New York.
Blankets, all-wool, 5 pounds to pair.
Boots and shoes, men's split seamless Creedmcro.
men's vici calf, Blueher bal.
men's vici kid, Goodyear welt,
men's gun metal, Blueher, Goodyear weit.
men's gun metai, button, Goodyear welt,
women's gun metal, button, McKay sowed.
women's gun metal, button, Goodyear welt.
women's patent leather pump, McKay sewed,
misses', vici, patent tip, button,
children's, gun metal, button,
iittie boys', gun metai, Blucher.
youths', gun metal, Bluc-nor.
Butter, creamery extra, Boston,
creamery firsts, Boston,
creamery seconds, Boston.
creamery extra, Chicago,
creamery extra firsts, Chicago,
. creamery firsts, Chicago.
whole milk, extras, Cincinnati,
centralized firsts, Cincinnati,
centralized seconds, Cincinnati.
creamery extra, St. Louis,
creamery fancy. New Orleans.
creamery choice, New Orleans.
creamery extra, Now York,
creamery firsts, New YorJr.
creamery seconds, New York.
creamery extra, Philadelphia,
creamery extra firsts, Philadelphia.
creamery firsts, Philadelphia.
creamery extra, San Francisco.
creamery prime firsts, San Francisco.
Canned goods, tomatoes, standard New Jersey No. 3.
Carpets, Lowell, Axminster.
Brussels, 5-frame Bigelow.
Wilton, 5-frame Bigelow.
Cheese, whole milk, American twins, Chicago.
State, fresh, whole milk, New York.
California Flats, fancy, San Francisco.
Coffee, Brazil grades, Ilio No. 7, New York.
Denims, Massachusetts, Mo. 220.
Drillings, brown, 30-inch, Massachusetts, T) standard.
1007
, CONSUMERS' GOODS HI articles)—Continued.
- S P , western •ilrsvs, Boston.
fresh firsts, Chicago.
prime firsts, Cincinnati.
Louisiana, at the market, New Orleans.
fresh gathered firsts, New York.
western extra firsts, Philadelphia.
iresh extra selected pullets, San Francisco.
Fish, cod, large shore (pickled, cured).
herring, pickled, domestic, large, split, New York.
mackerel, sail;, large 3s.
salmon, canned, Alaska red, New York.
Flannels, all wool, whice, Baliard Vale,
Flour, rye, pure, Minneapolis.
wheat, new Admin, std., 95 por cent, from hard winter
wheat, Kansas City.
wheat, standard war, from spring wheat, Minneapolis.
wheat, patents, Portland.
wheat, from soft wheat, 95 per cent, St. Louis.
wheat, patent, regulation, soft winter wheat, Toledo.
Fruit, apples, Baldwin, fresh, Chicago.
bananas, Jamaica 8s, New York.
currants, uncloaned, barrels, New York.
lemons, California (300-360 count), Chicago.
orange-?, navels-1 and valencias, Chicago.
primes, California, New York.
raisins, coast seeded, New York.
Ginghams, Amoskeag, 27-inch.
Lancaster, staple, 261 -inch.
Gluoose (corn eirup), 42 degrees mixing, New York.
Hosiery, men's half hose, combed yarn, 188 needle??, 17 ounces,
fasi black,
women's combed peeler cotton hose, double sole, full
fashioned,
women's single thread, 200 needles, combed yarn,
double sole.
Illuminating oil, 110 degrees, for export, New* York,
150 degrees fire test, water white, jobbing lots,
New York.
Lard, prime contract, New York.
Matches, No. 5, New York.
Meal, corn, Chicago.
corn, white table, Philadelphia.
Meat, bacon, shore clear sides, smoked loose, Chicago,
bacon, rough sides, Chicago.
beef, carcass, good native steers, Chicago.
beef, fresh native sides, New York.
beef, moss, New York.
hams, smoked, loose, Chicago.
lamb, dressed, round, Chicago.
mutton, dressed, New York.
pork, mess, old to new, New York.
poultry, dressed, iced, scalded fowls, Chicago.
poultry, fowls*, dressed, dry-picked, New York.
veal, city dressed, good to prime, New York.
Milk, .fresh, Chicago.
fresh, New York.
fresh, San Francisco (vicinity).
Molasses, Now Orleans open-kettle, New York.
Oleomargarine, Chicago.
Peanuts, No. 1 grade, Norfolk.
Print cloths, 27-inch, 6-J by 60.
Quinine, New York.
Rice, Honduras, hard, clean, New Orleans.
Salt, American, medium, Chicago.
Sheetings, bleached, 10-4, "Wamsutta.
brown, Indian Head, 36-inch,
brown, 4-4 Ware Shoals, LL sheeting, 36-incb.
Shirtings, bleached, 36-inch, Lonsdale.
bleached, 4-4 Wamsutta,
1008
FEDERAL RESERVE BULLETIN.
C. CONSUMERS' GOODS (141 articles)—Continued.
OCTOUEB 1, 1918.
C. CONSUMERS' GOODS (141 articles)—Continued.
Soap, laundry, Philadelphia.
laundry, 72 bars to pound, Cincinnati.
Spices, pepper, black, Singapore, New York.
Starch, laundry, New York.
Sugar, granulated, in barrels, Near York.
Suitings, serge, 11-ounce.
Tableware and glassware:
Plates, white granite, 7 inches.
Teas, white granite.
Nappies, 4-inch, common.
Pitchers, ^-gallon, common.
Tumblers, table, common.
Tea, Formosa fine, New York.
Tickings, Amosfceag, 32-inch.
Tobacco, plug, 12 pieces to pound, New York.
Trouserings, ll-ll^-ounce worsted.
Under wear, cotton, men's shirts and drawers,
cotton, women's union suits.
Underwear, merino, shirts, and drawers, natural, 50 per cent
wool.
merino, union suits, natural, 33£ per cent wool.
Vegetables, fresh cabbage, Florida white, New York,
onions, fresh, Chicago.
potatoes, white, fresh, good to choice, Chicago.
Vinegar, cider, Monarch.
Whisky, Bourbon, barrels, -1 years in bond.
Bourbon, bottled in bond.
Rye, Pennsylvania, barrels, 4 years in bond.
Rye, Pennsylvania, bottled in bond.
Women's dress goods, French serge, all wool, 35-inch,
storm serge, all wool, 50-inch,
broadcloth.
cotton-warpcashmere, 36-Inch Hamilton,
poplar cloth, cotton warp, 36-inch.
Sicilian cloth, cotton warp, 50-inch.
Movement of wholesale prices in the United States since January, 1914j by principal classes of commodities.
(Average for 1913=-100.)
Raw materials.
Year and month.
Farm
products.
Animal
products,
Forest
products.
Mineral
products.
Total raw
materials.
j
All commodities
(Bureau
Producers' Consumers1 of
Labor
goods.
goods.
Statistics
index
number).
1914.
90
Average for year..
103
104
January
Febraarv...
March.;....
April
May
June
July
August
September..
October
November..
December..
101
101
102
103
105
106
102
109
104
100
98
99
101
102
102
103
102
101
106
109
110
105
103
99
Average for year.
111
January
February...
March
April
May
June
July
August
September..
October
November..
December..
108
116
114
120
119
108
112
111
102
105
104
109
100 |
1
97
95
96
95
99
102
104
104
104
105
101
97
85
87
88
87
89
91
92
91
92
92
96
100
99
95
101
100
100
100
100
99
98
98
101
100
96
95
94
94
95
94
94
94
93
92
99
100
95
92
92
101
100
99
97
98
100
103
106
108
102
103
102
102
103
99
98
97
99 i
100
102
100
90
98
98
99
101
99
101
100
98
99
99
100
94
95
95
96
97
97
98
98
99
101
108
115
103
104
101
102
102
100
101
100
99
102
105
107
100
99
99
100
99
101
100
98
101
102
105
123
118
140
123
123.
108
111
114
115
114
114
112
112
117
133
153
174
108
108
110
111
113
112
113
117
121
128
139
143
119
123
130
137
141
142
111
140
142
148
155
164
111
111
112
114
115
117
119
124
130
135
143
142
110
111
114
116
118
118
119
123
127
133
143
146
100
99
99
1915.
91
1916.
Average for year.,
128
119
January
February...
March
April
May
June
July
August
September..
October
November..
December..
116
115
110
114
116
112
115
130
138
151
164
153
102
106
114
115
118
122
122
123
125
122
127
131
95
96
97
97
98
97
96
95
95
96
98
99
1009
FEDERAL RESERVE BULLETIN.
OCTOBER 1 , 1 9 1 8 .
Movement of wholesale prices in the United States since January, 1914, by principal classes of commodities—Continued.
(Average for 1913-100.)
Raw materials.
Year and month.
Farm
products.
Animal
products.
Forest
products.
Mineral
products.
Producers' Consumers1
goods.
goods.
Total raw
materials.
All commodities
(Bureau
of Labor
index
number).
1917.
Average for year..
210
169
118
179
173
187
172
175
January
February...
March
April
May
June
July
August
September..
October
November..
December..
161
157
169
198
225
227
230
232
214
227
238
233
136
145
156
163
168
166
168
181
195
190
187
178
99
100
103
105
108
120
126
128
129
129
129
129
175
185
191
189
196
205
198
175
167
150
157
158
147
151
160
169
180
185
187
183
181
178
182
178
166
168
171
181
189
199
212
211
203
185
181
180
147
155
156
172
179
178
174
175
175
181
183
185
150
155
160
171
181
184
185
184
182
180
182
181
240
242
249
243
226
232
237
246
174
176
178
193
201
198
209
215
130
131
135
137
138
138
140
143
171
172
172
170
173
171
180
180
183
184
187
190
189
189
196
200
181
184
187
190
192
194
196
199
192
193
189
193
194
197
202
205
185
187
187
191
191
193
198
j
I
!
I
1918.
January...
February..
March
April
May
June
July
August
Examination of the table discloses the inter- other hand the index number for the farm
esting fact that, measured by the crude test of products subgroup shows particularly large
range of price fluctuation,
the group of articles increases mainly through the combined influclassed as consumers7 goods has shown greater ence of the price movement of cotton and
stability 7of price than the group comprising wheat, tkougn other members of the group
producers goods, and, with the exception of have played their part in an increasing measthe two earlier years, also the aggregate of ure, especially since the institution of price
articles included "in the raw materials group. fixing for wheat in the fall of 1917.
While care must be used in drawing conclusions
The phenomenon of greater stability of
from data covering such a limited period of price for the consumers7 goods group rioted
time, it may be observed that this is in har- above is manifested also in another manner.
mony with the generally accepted view that Changes from month to month are with few
stability of price increases as a commodity exceptions gradual rather than abrupt, as is
passes from the raw toward the finished state. the case with both producers' and consumers'
It should be noted, however, that the • goods groups. Moreover, there is apparent a
accepted doctrine is not borne7 out. if the price ! certain continuity of movement, especially in
fluctuations of the producers goods group be | the latter part of the period, in contrast with
compared with those of the ^raw materials j the relatively abrupt rises and declines shown
group, as the former shows a somewhat greater j by the other groups. The direction in which
range of price fluctuation. This inconsistency ' prices move changes7 much less frequently in
apparently is due to special conditions brought the case of consumers goods, prices of the latter
about by the war.. Thus the minerals sub- moving in somewhat the same manner as
group, ordinarily exhibiting the greatest oscil- those of the forest products subgroup. The
lation among the several subgroups of the raw phenomenon observed may, however, be due
materials group, as a result of the price fixing to the fact that there is a much larger 7number
activities of the Government has had its price of articles included in the consumers goods
fluctuations during the present year confined group; hence any abrupt change in the indiwithin narrower limits than any of the other vidual item becomes much less pronounced
three subgroups, even the group of forest when merged in the figures for the group.
products, notably sluggish in its price moveCotton obviously plays a much larger part
ments. The effect of price fixing is also mani- in the farm products subgroup than do any
fest in the producers' goods group. On the particular classes of cotton textiles in the con-
1010
FEDERAL EESEEVE BULLETIN.
sinners' goods group. This means that certain commodities may at times dominate the
price movements of the particular groups, a
consider able change in the price of the commodity serving in some instances to determine
the direction of the price movement of the subgroup, even though "the prices of the remaining
members of the subgroup show some movement in the opposite direction. The decrease
of seven points in the index number for themineral products subgroup between June and
July, 1917, was of this character, being due
entirely to a decrease in the prices of the two
classes of semibituminous coal, even though
pig iron had shown a slight increase of price.
At first sight this may appear an anomalous
situation. But further consideration merely
serves to confirm the reliability of the quotation. For a change of considerable magnitude
in the price of an important article is of more
significance than slight changes in the prices
of articles of less importance. This accords
fully with a system of weighting which
allots to commodities influence upon the index
number commensurate with their relative
importance.
In order to give a more concrete illustration
of actual price movements, there are also presented in* the accompanying tables monthly
actual and relative figures since January, 1914,
for certain commodities of a basic character.
Index numbers have been calculated again on
the basis of average prices prevailing in 1913.
OCTOBER l, 3918.
The actual average monthly prices shown in
the table have been abstracted from the records
of the United States Bureau of Labor Statistics.
The list of commodities which follows is
arranged in the same manner as the list of commodities included in the table giving the course
of general prices:
Corn, No. 3, mixed, Chicago.
Cotton, middling, New Orleans.
Wheat, No. 1,-northern spring, cash, Minneapolis.
No. 2, red winter, Chicago.
Cattle, steers, good to choice, corn-fed, Chicago.
Hides, green salted, packers', heavy native steers, Chicago.
Hogs, light, range common to good, Chicago.
V/ooi, Ohio, medium fleece, { and % grades, scoured.
Lumber, hemlock, Pennsylvania and West Virginia stock, base price.
New York.
yellow pine, flooring, long-leaf, New York.
Coal, anthracite, stove, New York tidewater.
bituminous, run of mine, Cincinnati (Pittsburgh, 1914-1918;
Kanawha, 191.7-18).
semibituminous, Poeahontas, Norfolk.
Coke, Connellsville, furnace.
Copper, ingot, electrolytic, New York.
Lead, pig, desilverized, New York.
Petroleum, crude, Pennsylvania, at wells.
Pig iron, basic, f. o. b. Mahoning or Shenango Valley furt ' K
Cotton yarns, white, northern, mule spun, 10/1 cones.
Leather, sole, hemlock. No. 1, middle.
Steel, billets, Bessemer, Pittsburgh.
plates, tank, \ inch thick. 6 to 100 inches wide, f. o.b. Pittsburgh,
rails, open hearth, standard, Pittsburgh,
Worsted yarns 2-32's crossbred stock.
Beef, carcass, good native steers, Chicago.
Coffee. Brazil grades, Rio No. 7, New York.
Flour, wheat, Minneapolis, standard patents, 1914-1917; standard war,
1918.
Hams, smoked, loose, Chicago.
Illuminating oil. 150° fire test, water-white, jobbing lots, New York,
Sugar, granulated, in barrels. New York.
1011
.FEDERAL RESERVE BULLETIN".
OCTOBER, 1 , 1 9 1 8 .
Average wholesale prices of commodities for each month since January, 191.4.
(Average for 1913=100.)
Corn, No. 3,
Chicago.
Cotton, middling,
New Orleans. '
"Wheat,
No. 1,
northern spring,
Minneapolis.
packers",
Hides,
heavy,
. native
steers, Chicago.
Wheat, N o . 2, r e d
winter, Chicago.
Cattle, steers, good.
to choice, Chicago.
Average
Relative
price p e r
price.
bushel.
Average
price per Relative Average Relative
price p e r
price.
price.
'pound.
pounds.
Year and month.
Average
Average
Average
Relative
price per
price r>er Relative price per
price.
price.
'bushel.
bushel.
"pound.
Relative
price.
1914.
$0.6826
Ill
SO.1126
. 5913
. 5988
. 6245
. 6580
. 6916
.7038
. 7044
. 8035
.7748
. 7266
. 6806
.6340
96
97
101
107
112
114
114
131
126
118
111
103
. 1296
. 1291
.1295
. 1314
. 1335
. 1378
. 1331
Average for y e a r . . .
.7217
117
"Februarv
March
April
Hay
June... .
July
August
September
October
November
December
. 7056
.7460
. 7133
. 7438
. 7647
.7355
.7806
. 7828
. 7269
.6335
6495
. 6794
115
121
116
121
124
119
127
127
118
103
106
Average for y e a r . . .
.8118
January.
Fobru ary
Ma^ch
April
May
June
July
August
September
October
November. . .
Decent be?
.7356
. 7385
. 7150
. 7525
.7293
. 7341
.8041
.8505
.8522
.9463
. 9663
.9125
Average for y e a r . . .
Janu&rv
February
March
Aoril
May
June
July
Augi i st
September
October
November
December
Average for year
January...
Fehruarv
March
Aoril
May
June
July
August
September
October
November
"December .
§1.0031
115
51.0051
102
$9.0387
106
-SO. 1963
107
100
306
106
104
107
104
103
122
130
126
133
136
. 9690
. 9602
. 9495
.9386
.9763
. 8918
. 8210
. 9563
1.1069
1.1086
1.1486
1.2023
98
97
96
95
99
90
83
97
112
112
116
122
8.7563
8.6375
8.6550
8.7125
8. 7250
8.7950
9.2188
9.5200
9.7333
9.4313
9.4063
8.9125
103
302
102
102
103
103
108
66
54
58
57
. 8750
. S229
. 9209
. 9119
.9384
. 9125
. 8971
1.0632
1.1364
1.1020
I.1594
1.1921
114
ill
111
105
.3800
. 1825
.1813
. 1800
. 1825
.1850
. 1938
. 2050
.2100
.2125
.2175
. 2250
99
93
99
101
105
111
114
IIP
118
122
.0961
70
1.3061
150
1.3067
132
8.7015
102
.2420
132
. 0783
. 0804
.0836
. 0'M7
.0906
. 0911
. 0869
.0895
. 1053
.1203
.1155
.1185
62
63
66
75
71
72
68
70
83
95
91
93
1.3527
1.5135
1.4724
1.5407
1.5767
1.2869
1.3901
1.3730
.9811
1.0190
1.0182
1.1311
155
173
169
176
181
147
159
157
112
117
117
129
1.3910
1.6091
1.5311
2.5936
1.5700
1.2265
1.1611
1.0963
1.0760
1.1325
1.1250
1.2322
141
163
155
161
159
124
118
111
109
115
114
125
8.5333
8.1750
8.2333
8.0313
8.5900
8.9563
9.2125
9.2300
8.9500
8.8750
8.8450
8.4875
100
96
97
94
101
105
108
108
105
104
104
100
. 2300
.2350
. 2300
. 3 875
. 2075
. 2325
. 2575
.2738
. 2650
.2650
. 2625
.2575
125
102
113
123
14C
149
1*4
144
143
140
132
. 1410
111
1.4108
162
1.3505
137
9.5730
113
. 2618
142
120
120
116
122
118
119
131
138
138
154
157
148
.1205
.1142
.1177
. 1188
. 3.257
.1280
. 1303
. 1417
. 1532
.1723
. I960
. 1757
95
90
93
94
99
101
103
112
121
136
154
138
1.2894
1.2825
1.1409
1.2169
1.2146
1.1113
1.1703
1.4854
1.6080
1.7569
1.9800
1. 7011
148
147
131
139
139
128
134
170
184
201
221
202
3.2896
1.2585
1.1328
1.2153
1.1554
1.0413
1.1597
1.4706
1.5344
1.6809
1.8116
1. 7275
131
128
115
123
117
106
118
149
156
170
184
175
8.6650
8.4688
8.9688
9.1188
9.4600
10.2-625
9.9850
9.8500
9.8000
9.9050
10.3500
10.2917
102
100
105
107
111
321
117
116
115
116
122
121
.2300
. 2375
. 2275
.2225
. 2475
. 2675
. 2700
. 2625
. 2600
. 2663
.3150
. 3350
12c
129
124
121
135
145
147
14S
141
145
1.G200
263
.2259
178 -
2.3248
266
2.2779
231
12.8085
151
. 3273
178
.9753
1.0053
1.1181
1.3906
1.6180
1.7119
2.0393
1.9181
2.0613
l.9620
2.1238
1.5875
158
163
182
226
263
278
331
312
335
319
329
258
. 1735
. 1708
. 1764
.1950
. 1999
. 2421
. 2525
.2513
.2160
. 2659
. 2804
. 2894
137
334
139
154
157
191
199
198
170
209
221
228
1.9136
1.8080
1.9844
2.3814
2.9806
2.6935
2.5815
2.7875
2.2213
2.1700
2.1700
2.1700
219
207
227
273
341
308
296
319
254
248
248
248
1.9024
1.7969
1.9781
2.4672
2.9705
2.6388
2.3310
2.2563
2.3775
2.1700
2.1700
2.1700
193
182
201
250
301
288
236
229
221
220
220
220
10.5300
11.1313
11.8688
12.3100
12.4750
12.5560
12.5600
13.3750
14.9875
34.0750
14.3875
13.2350
124
133
140
145
147
148
148
155
176
173
169
156
.3350
.3175
. 3050
.3050
. 33 50
. 3300
.3300
. 3200
. 3300
. 3375
. 3525
.3500
182
173166
171
179
179
174
176
ISA
192
190
1.6S50
1.6375
1.5563
1.5850
3.5250
1.5125
1.5900
1.6225
274
266
253
258
248
246
258
264
.3105
.3097
. 3291
.3350
.2894
.3066
.2945
. 3038
244
244
259
26 i
228
241
232
239
2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.2231
248
248
248
248
248
248
248
255
2.1700
2.1700
2.1700
2.1700
2.1700
2.1700
2.2470
2.2325
220
220
220
220
220
220
228
226
13.1125
13.0750
13.2313
15.1750
16.4167
17.1750
17.6250
17.8250
154
154
156
178
193
202
207
210
.3280
. 2925
. 262?
.2719
. 3110
. 3300
. 3240
.3000
178
159
143
148
169
175
376
163
. 0838
. 0692
.0742
. 0721
89
102
102
J02
103
105 •
]09
105
98
1915.
no
125
1916.
182
1917.
. . .
1918.
January
February
March
April
Mav
June
July
August
1012
FEDERAL RESERVE BULLETIN.
OCTOBER 1 , 1 9 1 8 .
Average wholesale prices of commodities for each month since January,
1914—Continued.
(Average for 1913=100.)
Hogs, light,
Chicago.
Year and month.
Hemlock,
New York.
Wool, Ohio, H
grades, scoured.
| Average Rela- Average Rela| price per tive price per tive
100
pounds. price. pound. price.
Coal, anthracite, Coal, bituminous,
i; stove. New York
tidewater.
i
;
r u n of mine,
Cincinnati.
Average Rela- Average Relaprice per tive price per tive
long ton. price. short ton. price.
Average Rela- Average Relaprice per tive price per tive
M feet. price. M feet. price.
1914.
i
Average for year...
January..
February„
March
irifr -NTPwYnrir
mg,New*ork.
i
April.
May
June
July
August
September..
October
November..
December..
88.3816
99 ! SO.4398
8.3031
8.6156
8.6600
8.7313
8.3875
8.1975
8.7563
9.1500
9.0188
7.9313
7.4813
7.1313
102
102
103
99
97
104
108
107
94
88
84
.4167
.4028
.4028
.4167
.4306
.4300
.4444
.4583
.4583
.4583
.4722
.4861
85
93 ! §24.3958
86
86
88
91
91
94
97
97
97
100
103
24.5000 j
24.5000
24.5000
24.5000
24.5000
24.5000
24.5000
24.2500
24.2500
24.2500
24.2500
24.2500
.5714
121
21.5909
.5143
.5429
.5571
.5571
.5714
.5571
.5571
.5714 I
.5714! I
.6000
. 6143
.6429
24.2500
109
24.2500
115
21.5000
118
21.5000
118
21.5000
121
20.5000
118
118
20.5000
121
20.5000
121
127 i 20.5000
21.2500
130
21.2500
136
101 $42.7500
85.0607
96
44.0000
44.0000
44.0000
44.0000
43.0000
43.0000
42.0000
42.0000
42.0000
42.0000
42.0000
41.0000
6.2000
5.2000
5.1938
4.6974
4.7715
4.8673
4.9726
5.0805
5.1794
5.1947
5.1912
5.1796
89 i 39.5909
5.0440
101
101
101
101
101
101
101
100
100
100
100
100
100 1 $2.2000
100
103
103
103
93
94
96
98
100
102
103
103
102
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
100
100
100
100
100
100
100
100
100
100
100
100
100
2.2000
100
102
102
102
93
94
95
98
100
102
102
102
102
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
100
100
100
100
100
100
100
100
100
100
100
100
1915.
Average for year
j
7.1870
January
February
March
April
May
June
July
August
September
October
November
December
I
\
'
6.9875
Q. 7281
" """
6.7500
7.2813
7.6000
7.5781
7.5750
7.2650
7.7000
8.0125
6.6450 .
6.2438
100
100
5.1767
5.1866
92
92
5.1816
92
4.6904
90
4.7506
90
4.8300 .
86 j 4.9571 !
86 | 5.0796
86 i 5.1529
85 : 5.1826
85 !i 5.1766
85 ;: 5.1710
i
85
41.0000
41.0000
41.0000
41.0000
40.0000
40.0000
38.5000
38.5000
38.5000
38.0000
38.0000
38.0000
97
39.3750
5.4540
108
2.6750
122
92
92
95
99
98 !
98
98
5.2639
5.2588
5.2742
5.2876
5.2740
5.3713
5.4495
5.5570
5.6625
5.6744
5. (5946
5.6801
104
104
104
104
104
106
108
110
112
112
113
112
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.2000
2.5000
3.7500
3.7500
4.5000
100
100
100
100
100
100
100
100
114
170
170
205
1916.
Average for year...
9.4000
111
.6798
144 |
I 7.1400
j
8.1375
! 9.4688
! 9.5438
j
9.7050
|
9.3813
! 9.7650
j 10.4063
! 10.7750
|
9.6550
I 9.4063
9.7500
84
96
112
113
115
.6429
.6571
.6714
. 6857
.6714
.6714
.6857
. 6857
. 6857
.6857
.6857
.7286
136 I
Average for year
j 15. 4594
183
1.1452 |
January
February
March
April
May
June
July
August
September
October
November
December
I 10.6050
!
"1.2063
L3688
•.2750
i. 5000
i.2125
i.3750 !
125
144
170
181
183
180
182
205
218
208
205
198
.8143 !
.8286 I
.9286 !
1.0000 i
1.0714 |
1.1000 !
1.2143
1.3429
1.3714 I
1.3571
1.3571
1.3571
192
197
206
207
207
184
213
234
1.4545
1.4545
1.4515
1.4545
1.4182
1.4182
1.4365
1.4365
January
February
March
April
May
June
July
August
September
October
November
December
in
116
123
127 !
114
111
115
23.5417
22.2500
140 | 22.2500
143 ' 23.2500
146 i 24.0000
143 i 23.7500
143 i 23.7500
146 ;j 23.7500
140 ij 23.7500
146 ij 23.7500
146 j1 23.7500
146 ! 23.7500
1 5 5 ! 24.5000
98
101
39.5000
40.0000
40.0000
40.0000
40.0000
39.0000
38.0000
3S.O00O
38.0000
39.0000
40.0000
41.0000
243
27.7083
114
50.9091
114 ! 5.8724
4.5833
208
173
176 I
197
212
227
234 !
258
285 :.
291 I
288
288
288 j
24.5000
25.5000
25.5000
25.5000
26.0000
26.0000
28.0000
29.5000
30.5000
30.5000
30.5000
30.5000
101
105
105
105
107
107
116
122
126
126
126
126
41.5000
41.5000
42.0000
43.0000
93
94
96
50.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
112
128
128
128
128
128
128
5.6899
5.6826
5.6744
5.1916
5.6826
5.7884
5.8859
5.9797
6.1303
0.1426
6.1469
6.4736
112
112
112
103
112
114
116
118
121
121
121
128
4.5000
5.0000
5.0000
5.0000
6.0000
6.0000
5.0000
4.4000
3.3000
3.3000
3.7500
3.7500
205
227
227
227
273
273
227
200
150
150
170
170
309
309
309
309 !
301
301
305 j
305 !
30.5000
30.5000
30.5000
33.5000
33.5000
34.5000
34.5000
126
126
126
138
138
142
142
57.0000
57.0000
60.0000
60.0000
60.0000
60.0000
60.0000
63.0000
128
128
135
135
135
.135
135
141
6.5000
6.5000
6.4642
6.2606
6.3000
6.3212
6.5968
6.5992
128
128
128
124
124
125
130
130
3.6000
3.6000
3.6000
3.6000
3.8500
3.7500
4.1000
4.1000
164
164
164
164
175
170
186
186
90
90
90
90
87
85
85
85
87
90
92
,
!i
I
!
j
|
!!
il
i
1917.
18.4250
17.5550
| 17.3500
! 16.7150
1918.
January
February
March
A pril
May
June
July
August
|
16.2125
16.6938
17.4250
17.5100
17.5000
15.5250
18.0000
19.7750
I
1013
FEDERAL. RESERVE BULLEHH".
OCTOBER 1,1918.
Average wholesale prices of commodities for each month since January, 1914—Continued.
(Average for 1913=100.)
Coal, Pocahontas,
Norfolk.
Coke, Conneilsville.
Copper, ingot,
electrolviic. New
York.'
Lead, pi*?, desilverized, New
York.
Petroleum, crude,
Pcnnsyb ania, a!:
wells.
Pig iron, basic.
Year and month.
Average
price per
ong ton.
Relative
price.
$3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3. 0000
3-0000
3.0000
3-0000
3.0000
3.0000
100
100
100
100
100
•100
100
100
100
100
100
100
100
&.80S3
2.8500
2.8500
2.8500
2.8500
2.8500
2.8500
2.8500
2 8500
2.8500
2.8500
2.8500
2.8500
2.8500
95
95
95
95
95
95
95
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.
1.7250
3.6750
1.5500
1.6250
74
79
79
77
79
79
77
77
7-*
71
66
' 84
37
30.1338
.1488
.1475
.1438
. 1438
. 1420
.1400
. 1340
.1250
.1238
.1170
.. 1125
.. 1275
85
95
94
91
91
90
89
85
70
79
74
72
SI
SO.3890
.0415
.0415
. 0400
.03*0
.0390
. 0390
.0390
. 0390
.0388
.0375
. 0350
.0380
88
94
94
91
86
89
89
89
89
88
85
80
86
$1.9167
2.5000
2.5000
2.5000
2.5000
2.0100
1.8000
1.7500
1.6500
3.4500
1.-1500
1.4500
1.4500
78
102
102
102
102
82
73
71
67
59
59
59
59
$12.8733
12.5000
13.1900
13.0000
13.0000
13.0000
13.0000
13.0000
13 0000
13.0000
12.8100
12.4800
12.5000
88
85
90
88
88
88
88
88
88
88
87
85
85
73
67
85
65
67
. 67
67
72
69
69
82
S7
9-1
,1726
. 1300
. 1475
. 1103
. 1588
.1863
95
95
95
95
95
1.7854
1.6250
1.5750
1-5750
1.6250
l.«250
1.6250
I.7500
1.6750
1.6750
2.0000
2.3750
2.3000
.1775
. 1800
. 1788
.1975
110
83
94
93
101
118
119
126
116
113
114
114
426
.0459
.0380
, 031J0
. 0390
.0420
. 0420
. 0490
.0575
.. 0500
. 0490
• 0450
.0-190
.0525
104
86
86
S9
95
95
111
131
114
111
102
111
119
1.5292
1.4500
1.5000
1.5000
1.4000
1.3500
1.3500
1.3500
1.3500
1.6000
1.7000
1.8000
2.0000
62
59
61
61
57
55
55
55
55
65
G9
73
13.7408
12.5000
12.5000
12 5000
12.5000
12.5000
32.5900
12.7400
14 0600
14.7500
15 0000
15.7500
17.5000
85
85
85
85
85
86
87
96
100
102
107
119
3.7292
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.0000
3.2500
4.0000
4.5000
8.0000
6.0000
124
100
100
100
100
100
100
300
108
133
150
200
200
3.2458
2.8750
2.6250
3.000(1
2.8250
2.3750
2.6250
2,6250
2.6250
2.7500
3.1250
5.7500
5.7500
133
..2754
.2288
-.2538
. 2700
.2688
. 2«50
.2S00
. 2650
.2600
.2775
.2850
.2863
.3450
175
145
161
172
171
181
178
168
165
176
181
182
219
.0680
.0550
,0610
. 0640
. 0750
.0725
.0685
. 0610
. 0650
.0705
.0700
.0730
155
125
139
145
182
170
165
156
139
148
360
159
166
2.4883
2.2500
2.3500
2.4000
2.6000
2.6000
2.6000
2- 6000
2.5000
2.3000
2-4000
2.6000
2.6000
101
92
96
98
106
106
10fi
106
102
94
08
100
106
19.7600
17.8100
17.6900
18.2000
18.1300
18.0000
18.0000
18.0000
18.0000
18.3100
19.8800
25.1000
30.0000
134
121
120
124
123
122
122
.122
122
125
135
171
204
5.4320
6.0000
6.5000
6.5000
6.5000
7.0000
7.0000
5.1400
3.9080
3.9080
3.9080
4.--1120
4.4120
181
200
217
217
217
233
233
171
130
130
130
147
147
3.2500
7.2500
7.5000
8.5000
7.2500
7.00C0
9.5000
12.2500
10.0000
13.7500
6.0000
*>. 0000
6.0000
338
297
307
3-JS
297
2S7
389
502
410
482
246
216
246
.2940
.2950
.3300
.3625
.34.00
.3100
. 3250
.3175
. 2900
.2525
. 2350
. 2350
.2350
187
188
210
230
216
197
207
202
18*
161
149
14:9
149
.0912
.0750
. 0850
.0950
.0935
. 0988
1.1500
1.18*0
1.0880
1.03*0
. 0795
.0513
.0650
207
170
1S3
216
213
225
261
259
247
236
381
139
1-4,8
3.2000
2.8500
3.0500
3.0500
3.0500
3.1000
3.1000
3.1000
3.1000
3.5000
3.5000
3.5000
3. 5000
131
116
124
124
124
127
127
127
127
143
143
143
143
38.9038
30.0000
30.0000
32.2500
3S.7500
41.6000
48.7509
52.5000
51.2000
42.7500
33.0000 j
33.0000
33.0000
265
204
204
219
264
o283
on
4.4120
4.4120
4.4120
4.2440
4.2190
4.2320
4.6320
4.6320
147
147
147
141
141
141
154
154
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6.0000
6-0000
246
216
246
246
246
246
246
246
.2350
.2350
. 2350
. 2350
.2350
.2350
.2550
. 2600
149
149
149
149
149
149
162
165
. 06*4,
.0706
.0721
. 0698
.0691
.0728
.0802
.080S
155
160
3.7500
3-9375
4.0000
4.0000
4.0000
4.0000
4.0000
4.0000
153
361
163
163
163
163
163
163
33.0000
33.0000
33.0000
32.0000
32.0000
32.0000
32.0000
Average
price per
short ton.
Relative
price.
1914.
Average for year
Januarv
February.
March
April.
May. . .
June
Julv
August
September
October
November
j.9250
1.9250
1.8750
1.92;"0
1.9250
1.8750
1.8750
1915.
January..
February.
March...".
A-pril.
May
.
June
August
Septerv-bCMr
October..
November
December.....
1916.
Average for year
Januarv..
February
March
\pril
May.... .
June
July
. .
August
.
September...*
October
November..
December....
11?
108
123
116
97
108
10S
108
113
128
236
236
* 1(5?
i
!
i
!
|
3917.
Average tor vear
Januarv..
February
March -.
April
Mav
.
.
. . .
June . . .
July
Angus*.
. . .
Scptem ber
October
No vein ber..
December
... ..
1
i
i
1
!
i
357
348
291
224
224
224
1918.
Januarv
February
April
May
June
Julv
Auihisi.
159
157
165
182
183
224
224
224
218
218
218
218
1014
OCTOBER 1. 1018.
FEDERAL RESERVE BULLETIN.
Average wholesale prices of commodities for each month since January,
1914—Continued.
(Average for 1913=100.)
Cotton yarns,
northern cones,
10/1.
Steel, plates, tank,
Pittsburgh.
Leather, sole,
hemlock, No. 1.
Steal, rails, open
hearth,
Pittsburgh.
Worsted yarns,
2-32's, crossbred.
Year and month.
Average j Relprice per I ative
pound. ! price.
i
Average
price per
pound.
RelEel- i Average
ative ! price per ative
price, j long ton. price.
!
Average
price per
long ton.
Relative
price.
Average
price per
pound.
SO. 0116
$30.0000
100
$0.6400
.0120
.0123
.0123
.0118
.0115
.0113
.0113
.0113
.0120
.0115
.0110
.0105
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
100
100
100
100 I
100
100
100
100
100
100
100
100
.0127
30.0000
.0110
.0110
.0113
.0113
.0115
.0115
.0120
.0125
.0135
.0140
.0150 i
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
30.0000
Relative
Price.
Average
price per
pound.
Relative
price.
1914.
Average for year.
SO. 1967
$0.3019
107
§20.0775
.6400
.6400
.6400
.6400
.6400
.6400
.6500
.6500
.6600
.6300
.6300
.6200
82
82
82
82
82
82
84
84
85
81
81
100
.7875
101
100
100
100
100
100
100
100
100
100
100
100
100
.6200
.6200
.6200
.8200
.8^00
.8^00
.8500
.8500
.8500
.8500
. 8500
.8800
80
80
80
106
106
106
119
119
119
119
119
115
33.333
111
1.0500
135
30.0000
30.0000
30.0000
30.0000
30.0000
35.0000
35.0000
35.0000
35.0000
35.0000
35.0000
40.0000
100
100
100
100
100
117
117
117
117
117
117
133
.8800
.8800
.9200
.9500
1.0000
1.1000
1.1000
1.1000
1.2000
1.1500
1.2000
1.2000
115
115
118
122
129
142
142
142
154
148
154
154
375
40.0000
133
1.5558
200
291
296
296
355
389
473
608
608
541
220
220
220
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
40.0000
133
133
133
133
133
133
133
133
133
133
133
133
1.2500
1.2500
1.2700
1.3000
1.4000
1.5500
1.6000
1.6500
1.7000
1.8000
1.9000
2.0000
161
161
164
167
180
200
206
212
219
232
245
257
220
220
220
220
220
220
220
220
46.8000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
57.0000
156
1*90
190
190
190
190
190
190
2.0000
2.0071
2.1000
2.1500
2.1500
2.1500
2.1500
257
258
270
277
277
277
277
.2200
. 2150
.2150
.2200
.2100
.2100
. 2150
.2000
.1700
.1700
. 1550
.1600
.3000
.3000
.3000
.3050
.3050
. 3050
.3050
.2950
106
106
106
108
108
108
108
105
20.1300
21.0000 |
21.0000
20.8000
20. 0000
19.5000
19.0000
20.2500
21.0000
20.0000
19.2500
19.0000
Average for year.
.1727
.3094
110
22.4408
87
January
February...
March
April
May
June
July
August
September.
October
November..
December..
.1650
. 1650
.1450
. 1650
. 1650
.1600
.1600
. 1675
.1700
.1950
.2050
.2100
108
105
105
108
110
110
113
113
115
75
76
76
78
78
79
.83
90
95
.3050
. 2950
.2950
.3050
.3100
.3100
.3200
.3200
.3250
19.2500
19.5000
19.7000
20.0000
20.0000
20.5000
21.3800
23.1300
24.1000
24.6300
26.5000
30.6000
103
119
Average for year
.2646
120
.3883
138
43.9458
170
0324
219
January
February..
March
April
May
June
July
August
September.
October
November.
December..
.2100
. 2250
.2200
. 2250
.2425
.2500
.2525
. 2575
. 2750
.3000
.3325
.3850
95
102
99
102
110
113
114
116
124
136
150
174
.3250
.3250
.3350 I
.3600
.3700
.3700
.3700
.3700
.3700
.4050
.4900
.5700
115
115
119
128
32.0000
33.5000
42.4000
45.0000
45.0000
43.5000
41.0000
44.2000
45.0000
46.2500
52.0000
57.5000
124
130
164
174
174
169
159
171
174
179
202
223
0208
0225
0255
0325
0338
0345
0345
0345
0350
0350
0375
0425
• 141
152
172
220
228
233
233
233
236
236
253
287
Average for year.
.3971
179
.5354
190
69.8558
271
.0557
January
February..
March
April
May
June
July
August
September.
October
No'/ember .
December..
.3400
. 3200
.3100
.3000
.3650
. 3750
.4500
.4400
.4200
.4200
. 4700
.4950
154
149
140
163
165
169
203
199
190
190
212
224
.5700
.5800
5950
.5700
.5700
.5800
.5400
.5000
.4800
.4600
.4800
.5000
203
206
211
202
202
206
191
177
170
163
170
177
63.0000
65.0000
66.2500
73.7500
86.0000
98. 7500
100.0000
86.0000
66.2500
49.3750
47.5000
47.5000
244
252
257
286
333
383
388
333
257
191
184
184
.0430
.0438
.0438
.05%
.0575
.0700
.0900
.0900
.0800
.0325
.0325
.0325
.5363
. 5536
. 5745
.6162
.6332
.6437
.6412
242
250
260
278
286
291
290
.4900
.4900
. 4550
.4550
.4900
.4900
.4900
174
174
161
161
174
174
174
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
47.5000
184
184
184
184
184
184
184
184
.0325
.0325
.0325
.0325
.0325
.0325
.0325
.0325
January
February..
March
April
May
June
July
August
September.
October
November.,
December..
1915,
1916.
1917.
January...
February.
March
April
May
June
July
August
SI
131
131
131
144
174
202
i
i
!
i
;
1918.
1015
FEDERAL RESERVE BULLETIN.
OCTOBER 1 , 1 9 1 8 .
Average wholesale prices of commodities for each mo?ith since January, 1914—Continued.
(Average for 1913=-100.)
Beef carcass,
good, native
steers, Chicago.
Year and month.
Flour, wheat,
standard patents
Coffee, Bio No. 7. 1914-1917, standard war, 1918,
Minneapolis.
Hams, smoked,
Chicago.
Average ! Rcla- Average Rela- Average Rela- Average Relapricc per I tiye price per tive price per tive price per tive
pound. : price. pound. price. barrel. price. "pound. price.
1914.
Average for year.,
105
$0.1364
SO. 0816
73
$0.1670
S5.0962
Illuminating oil,
150° fire test,
New York.
Average j Rela- Average Relaprice per
tye price per tive
gallon, price. pound. price.
100
$0.1200 I
92
92
94
95
96
100
106
115
115
103
100
.1200 I
.1200 j
.1200 !
.1200 i
. 1200
.1200
.1200
.1200
.1200
. 1200
. 1200
. 1200
.1300
. 1300
.1300
.1316
. 1325
.1325
.1350
.1419
.1,438 I
.1438 '
. 1438
.1428
100
100
100
102
102
102
104
110
111
111
111
110
.0913
.0950
.0925
.0894
.0875
.0913
. 0882
. 0750
.0763
.0656
.0638
.0631
4.5000
4.5875
4.6250
4.5500
4.6.125
4.4900
4.5938
5.5125
5.9400
5.7563
5.8813
5.9500
100
101
99
101
98
100
120
130
126
128
130
1915.
Average for year...
.1289
100
.0745
6.6630
145
.1531 |
.1208 I
January
February
March
April
May
June
July
August
September
October
November
December
.1300
.1213
.1175
.1175
.1213
.1253
. 1315
.1325
.1350
.1375
.1375
.1375
100
94
91
91
94
97
102
102
104
106
106
106
.0725
. 0825
.0775
.0806
.0775
. 0700
.0738
.0738
.0675
. 0675
.0750
.0763
6.8563
7.7068
7.4S50
7.7063
7.8813
6.5950
7.0313
6.3100
5.3313
5.5188
5.5000
6.2250
150
168
163
168
172
144
153
138
116
120
120
136
.1538 |
.1525 !
.1425 I
.1438 i
.1513 |
.15^5 !
.1610 !
.1495 i
.1447 i
.1613 i
.1625 !
.1556 j
.1200 !
.1200 I
.1200 I
.1200
. 1200
.1200
.1200
. 1200
.1200
.1200
.1200
. 1300
1916.
Average for year...
.1382]
107
.0924
7.2839
158
.1850 i
January
February...
March
April
May
June
July
August
September.
October
November..
December..
. 1375
. 1375
. 1375
.1375
. 1375
. 1415
.1413
.1375
. 1375
. 1375
. 1375
. 1375
106
106
106
106
106
109
109
106
106
106
106
106
.0763
. 0825
.0925
.0950
.0975
.0988
.0900
.0950
. 0988
. 0950
. 0950
. 0925
6.8438
6.4400
5.8813
6.2188
6.1900
5.7625
6.1000
7.6050
8.4250
9.2800
9.8250
8.6813
145
140
128
136
135
126
133
166
184
202
214
.1588
.1675
.1769
.1831
.1845
.1850
.1900
.1900
.1900
.1935
.2031
1917.
Average for year...
. 1672
129
.0927
11.3909
249
.2520 j
.1375
.1413
. 1490
. 1600
.1600
.1615
. 1638
.1713
.1900
. 1900
.1900
.1870
106
109
115
124
124
125
120
132
147
147
147
144
.0975
.1000
. 0975
.0950
.1013
.1038
. 0950
.0913
. 0913
. 0850
. 0794
.0756
9.2105
9.0688
9.6313
11.6188
14.8800
13.8938
12.7500
13.0688
11.2625
10.5000
10.2250
10.1313
201
198
210
253
325
303
278
285
246
229
223
221
.1915 '
. 2113
.2288
. 2450
.2655
. 2594
.2395
. 2413
. 2075
.2860 i
.2900 I
.3010 i
117
127
138
147
160
156
144
145
161
172
174
181
. 1750
. 1750
. 1750
. 2050
.2250
.2338
.2400
. 2420
135
135
135
158
174
181
185
187
. 0853
.0833
.0891
. 0903
.0873
.0841
. 0855
.0853
10.0850
10.3000
10.0938
9.9850
9.5250
9.8250
10.7020
10.2100
220
225
220
218
208
214
233
223
.2950 I
.2984 I
.3028
.3075
.3025
. 2994
.3025
.3225
177
180
182
185
182
180
1S2
194
January
February...
March
April
May
June
July
August
September.
October
November..
December..
January
February. - March
April
May
June
July
August
September.
October
November..
December..
. 1531
.1525
.1555
.1575 :
.1588 |
.1655 \
.1769 I
.1903 |
.1905 i
.1719 i
.1663 !
.1633 !
i
Sugar, granulated,
New York.
SO. 0471
97 1
97
97
97
97
97
97
97
97
97
97
105 I
110
.0392
.0392
.0382
.0372
. 0397
. 0417
.0420
.0649
.0680
.0593
.0493
. 04S3
92
92
89
87
93
98
98
152
159
139
115
113
.0556
130
.0488
.0554
.0571
. 0578
. 0588
.0558 i
.0582
.0549 !
.0506 !
.0197
. 0568
.0592
114
130
134
135
138
138
136
129
119
116
133
139
!
!
!
i
!
•
!
i
;
I
!
111
.1217
99
.0688
161
96
101
106
110
111
111
114
114
114
116
122
120
. 1300
. 1.300
.1200
.1200
. 1200
.1200
.1200
. 1200
. 1200
. 1200
. 1200
. 12C0
105
105
97
97
97
97
97
97
97
97
97
97
0573
0597
0659
0706
0748
0736
0750
0700
0637
0708
0735
0692
134
140
154
165
175
172
176
164
149
166
172
262
.1212 i
101
. 0771
181
.1200
. 1200
. 1200
. 1200
.1200
.1200
.1200
.1200
. 1300
.1300
. 1300
. 1400
97
97
97
97
97
97
97
97
105
105
105
114
0662
0086
0706
0815
0794
0754
0745
0818
0823
0818
0818
0804
155
161
165
191
186
177
174
192
193
192
192
188
.1600
. 1600
. 1600
. 1675
. 1700
.1700
. 1.710
. 1750
130
130
130
136
138
138
139
142
.0744
. 0730
.0730
. 0730
.0730
.0731
.0735
. 0735
174
171
171
171
171
171
172
172
1918.
January..,
February.
March
April
May
June
July
August...
I
1016
FEDEKAL RESERVE BULLETIN.
DISCOUNT AND INTEREST RATES.
In the following tables are presented actual
discount and interest rates prevailing in the
various cities in which the several Federal
Reserve Banks and their branches are located,
during the 30-day periods ending August 15
and September 14, 1918. Quotations are
given for prime commercial paper, both customers' and purchased in open market, interbank loans, bankers' acceptances, and paper
secured by prime stock exchange or other current collateral. Separate rates are quoted
for paper of longer and shorter maturities in
the first named and last named classes. In
addition, quotations are given for commodity
paper secured by warehouse receipts and for
cattle loans, as reported from centers in which
such paper is current.
For the 30-day period ending September 15,
quotations have been added of rates charged
on ordinary loans to customers secured by
Liberty bonds and certificates of indebtedness.
Assistance to customers to enable them to purchase such Government obligations is generally
extended at lower rates, either at the rate
borne by such obligations or at a rate slightly
higher. For the first time the table also
shows quotations in New York for demand
paper secured by prime bankers' acceptances, a
type of paper which has recently made its
appearance in the New York market. Quota-
OCTOBEK I ,
tions for new types of paper will be added from
time to time as deemed of interest.
Progress has been made in gathering data
concerning the rates for the several classes of
paper prevailing in these same cities during
the 30-day periods ending on the 15th day of
I each month in the years 1911, 1912, and 1913,
| Difficulty has been experienced in some cases
| in securing satisfactory data, though in the
| great majority of cases data fairly comparable
| with present quotations have been furnished.
It is expected that in a future number of the
BULLETIN the material thus secured will be
collated, thus making possible the presentation
of current quotations as percentages of the
averages of quotations for the same periods in
each of the three earlier years.
"Between. August and September of the
present year there has been in general a continuance of the slight upward movement in
interest rates noted for the period ending
August 15. This rise is not confined to any
one district. Thus, Boston and San Francisco rates among others show a distinct upward tendency. Customary rates in general,
with few exceptions, remain unchanged, movements in rates being confined largely to fractional changes in high or low quotations. Kates
charged on loans to individuals, secured by
Liberty bonds and certificates of indebtedness, on
the whole are lower than on ordinary commercial
loans, or on loans secured by other collateral.
Discount and interest rates prevailing in various centers*
o
I
D U R I N G 30-DAY P E R I O D E N D I N G A U G . 15,1918.
District.
Interbank
Joans.
City.
Bankers' acceptances, Collateral loans—Stock exchange or
60 to 90 days.
other current.
Unindorsed.
Indorsed.
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
Philadelphia..
Cleveland.
Pittsburgh
Cincinnati
Richmond
Baltimore
Atlanta
Birmingham..,
Jacksonville
New Orleans...
Chicago
Detroit
St. Louis
Louisville
Minneapolis
Kansas City....
Omaha
Denver
Dallas
Ei Paso
San Francisco..
Portland
Seattle a
Spokane
Salt Lake
II.
4*
5
4^
44
41
4|
8
54
6
54
L.
4*
44
44
4
4-1
44
6
&1
8
5j
C.
4*
4i
4'4
4-1
44
8
64
6
54
0
6
4f 6
54 54
Demand.
L. C.
6 6 8
54 5J 54
6
54
4|
8
6
0
6
5
44
6
4|
54
6
6
6
8
8
8
6
8
7
8
7
6
6
5
8
6
6
7
6
7
8
54
I
7
8
6
54 4-|
41 4 |
44 44
8
7
54 6
10
6
7
Secured bySecured by Liberty
warehouse bonds and
receipts, certificates
of indebtetc.
edness.
months.
L. C. ii. L.
f
6
5&
..
6
6
54
3 to 6
3 months.
4.
5
5
5
8
8
Cattle
loans.
10
8
8
6
41
54
5
5
6
6
5*
6
6
6
II. L. C.
a
6
8
6
6
0
6
6
6
6
6
7
6
8" 6
8 8
54 6
6 6
6 64
8 6'
6 8
54 6
6' 6
8
8
5
6
m
L.
a
II. L.
a
5 41
64 6 6
1" 6 6
7 6 8
6} 5^ 6
8
10
10
6
6
6
6 j.
8!.
7 j .
8
54
54
5"
6
8
8
54
54
6
8
6
6
54
54
6"
8
6
6
6
6
6
6
6
6
6
0
7
6
6
8
6
6
6
6 64-7
6
8
8
8
DURING 30-DAY PERIOD ENDING SEPT. 14, 1918.
No. 1.... Boston
No. 2.... New York &
No. 3.... Philadelphia
No. 4 . . . . Cleveland
Pittsburgh
Cincinnati
No 5
Richmond
Ba'timore
No. 6.... Atlanta
Birmingham
Jacksonville
New Orleans
No. 7
Chicago
No. 8.... Detroit
St. Louis
Tionisvi-le
Memphis
61
6
6
6
6
6
6
8
8
5544
54
5"
5:J
6'
54
5*
54
6"
6
54
6"
5
54
6
6
6
6
6
6
6
6
52
6
6
7
6
6
6
8
6
6"
6
6
i 8
! 15
!?
i 8
: 8
6
6
1
5
D
\l
I?6
6
6
54 54
5 54
5 54
5 5
8 6
54- 6
5 5:1-6
5 54
54 6"
6~ 6
6 8
51 54
54 6
5 6
5 54
5 5"
6 6
44
4 * :: &
41 ii 6
4*
! *
41
4£
4f 41 4§ i 4 ^
44 41 4 ^ ; 4 }
6
6
8
6
6
6
|b4
i1 6
5-4 51 54 6
3 41 41
8 42 6
i6
I 6
6
6
6
8
6
6
3
64
6
6
4-1 6
6
64
6"
6
6
74
6
6
7
8
5
5
5
6
6
5
54
54
6
"64
6
6
6
54
6
51
54
5
6
6
6
6
6
6
6
6
6
i.
o The 10 per cent rates represent rates charged on loans for small amounts.
& Rates for demand paper secured by prime bankers7 acceptances, high 6, low 4£, customary 54.
I
6
6
8
54
8
6"
8
6
64 6
6
7
6
6
5
6
5
6
54
54
6'
54
41
4
41
44
4k
44
44
4J
44
4i-5
42
....
54
5
5
54
7
8
8
6
5
6
5
5
54
6
8
54
6
41
6
6
4
5
5
6
Discount and interest rates prevailing in various centers—Continued.
O
DURING 30-DAY PERIOD ENDING SEPT. 14, 1918-Continued.
OO
Prime commercial paper
District.
Customers.
City.
30 to 90
days.
No. 9 ... Minneapolis
No. 10... Kansas City
Omaha
Denver
No. 11 .. Dallas .
Ei Paso
Francisco
No. 12... San
Portland
Seattle
Spokane
Sa>t Lake. .
II. L.
6 5J
C.
6
6
ft
6
ft
8
5 54-6
6 "ft
o ft
7
6
6
7
7 5
7 fi
8 6
8 G
8
61
8
s
8
8
4 to 6
months.
II L.
¥
8
8
8
8
8
8
8
6
5
ft
6
ft
6-V
5
ft
6
6
Interbank
loans.
Open m a r k e t .
C.
6
6
ft
6
ft
8
6
ft
7
7
30 to 90
days.
II
6
6
7
L.
G
ft
ft
G 6
ft"'
ft1- ft
6
6
c.
6
6
ft
6
tt
ft
6
G
4 to 6
months.
IL L.
6 G
6
2
C.
G
6
ft
G
67
ft
ft1
G 6
ft ft
<\ ft
6
i\
ft
B a n k e r s ' acceptances,
60 t o 90 days.
Unindorsed.
Indorsed.
77.
C.
6
6
6 0 6
7 o-V ft
7
0 f>
7 6
tt 0 3-5.',
6
4i
G
ft
7
^3
AS
A-J,
77. L.
C.
IT. L.
J)C in and.
C.
4^ 4£ 4!
S
6
7
ft
ft
6
G
G
o
Col atcral loans—Stock exchange or
jtlier current
8
6
i ,ja
6
0
i
8
4^ 8
^s
^
8
6
3 to 6
n: onths.
3 months.
II. L. C. II.
7 6 63,7 8 G"
ft G R
8 G G 8
8
7
8
ft
6
9
8
6
7
8
8
G
6
ft
0
6
6
G
6
8
5
8
6
6
G
6
6
7
Cattle
loans.
77.
7
7
8
8
L. a
6
6 62
6 ft
6 6
8
8
0
8
6
ft
0
6
7
7
•'
; • ;
8
8
i
r. L. a
6 8
s8\ 66 6-7
6
10 6 8
8 9
10
8
Secured by
Secured by Liberty *
warehouse bonds and
receipts, certificates
of indebtetc."
edness.
ii. L. a
6
6
6
IT.
6
6
7
6
8
8
6
L. C.
5 5-51
5 6
6 6
4-i 6
5 5
8 8
4i 6
G
8
6
41 4 |
4| 6
6 6
OCTOHKB 1, .1918.
1019
FEDERAL RESERVE BULLETIN.
GOLD SETTLEMENT FUND.
Operations through, the gold settlement fund
for the four-week period from August 22 to
September 19 show a continued heavy movement of funds away from New York through
the daily settlements, largely on account of
the interior banks paying for their subscriptions to Treasury certificates of indebtedness
in New York exchange. The New York
Federal Reserve Bank's net aggregate debits
in the daily settlements during the four-week
period amounted to $270,903,000. Thore was
a return movement of funds to New York
through transfers from other Federal Reserve
Banks aggregating 8197,000,000, largely on account, of fiscal operations of the Treasury of the
United States. The net result is seen in. a loss
of gold by the Now York bank through transfers and settlements of §73,908,000. Combined
clearings and transfers through the fund for the
four-week period, amounted to $3,713,793,000,
averaging $928,448,250 per week, against a
like average of $904,651,600 for the preceding
live-week period and an average of $869,243,000
per week for the current year. Average weekly
balances adjusted between the Federal Reserve
Banks amounted to $82,254,000, as compared
with $77,548,500 during the preceding period.
Changes in the ownership of gold in the
banks* fund through transfers and settlements
during the four-week period amounted to 2.45
per cent of the total obligations settled, as
against 3.42 per cent for the preceding liveweek period. Net changes in the ownershiD
of gold since the commencement of the operation of the fund on May 20, 1915, to September
19, 1.918, amount to 1 per cent of the total
obligations settled during that period.
Net deposits of gold in the banks' fund from
August 22 to September 19 amounted to
839,429,000, the Chicago, -San Francisco, New
York, and Cleveland banks being the heaviest
depositors. Net withdrawals of gold by
the Federal Reserve agents amounted to
$14,400,000, largely for transfer to their credit
in the gold redemption fund against Federal
Reserve notes. The resulting gain of gold in
the combined funds was §25,029,000.
Below are given figures showing the operations of the fund between August 23 and
September 19, 1918, both inclusive:
Amounts of clearings and transfers through the gold settlement fund by Federal Reserve Banlcs from Aug. ,3, 1918, to
Sept. 19, 1918, both inclusive.
[In thousands of dollars.]
Total
Settlements of—
Aup. 23-29
Aus. 30-Sopt. 5.
Sept. (3-12
Sept. 13-3 S
89-1,369
787,282
852,452
959,528
Total
Previously reported for 1918..
Total sinno Jan. 1,1918.
Total for 1917
3,493.631
26, 380, G27
29,880,258
24,319,200
Balances
adjusted.
Transfers.
j
93,923 1
47,531 '
126,024
61,518
47,000
79,000
35,102
59,000
329,010
1,990,452
220,162
2.929,330
2,319,408
2,154,721
3.149,992
2,830,604.5
CLEARINGS AMD TRANSFERS.
Total
Total
Total
Total
for
for
for
.or
1918 to date
1917
1916
1915
Total clearings and transfers from May 20,1915, to Sept. 19,1918
33,030,250
27,154,704.5
5,533,966
1,052,649
66,771,569.5
1020
FEDEKAI, EESEJRVE BULLETIN.
OCTOBER 1,1913.
Changes in ownership of gold.
[In thousands of dollars.]
Total to Aug. 22,
1918/'
changes from
From Aug. 23,1918, to Sept. 19,1918, both Total
May 20, 1915, t o
inclusive.
S e p t . 19, 1918. -
Decrease.
Balance to
credit Aug.
22, 1918. Balance
Sept. 19,
plus net
1918.
deposits of
sold since
that date.
Federal Reserve Bank,
Increase.
78.
116,
57,
42.
20,
9,
51,
01,238
Boston
New Yorlc
Philadelphia. Cleveland
Richmond
Atlanta
Chicago
, St. Louis
Minneapolis...
Kansas City...
Pallas
San Francisco.
593,150
86,944
135,755
18,150
38,291
47,987
53,290
67,683
42,716
71,539
53,355
25,117
11,040
80,089
21,116
20,823
23,748
7,622
40,339
4,146
26,
52,449
18,617
84,575
Total
597,296
597,290
465,787
Increase.
Decrease.
10,731
73,903
Increase.
Decrease.
50,507
667,053
13,701
10,734
'(,005
1,776
28,903
100,645
146,489
23,155
40,067
76,950
49,043
8,712
50,182
30.338
90)965
4,247
12,858
'"2*267*
4G5,787
11,721
6,390
91,148
91,148
667,053
667,053
i Debit balance.
Gold settlement fund—Summary of transactions from Aug. 23, 1918, to Sept. 19, 1918, both inclusive,
[In thousands of dollars.]
Aggrogate
withdrawals
and
transfers
to
agents'
fund.
Balance i
last | Gold
state- !| with-
Federal Ileserve Bank.
—"-+•
draw-
Aug. 22,! als.
1918.
i 1.921
76,493
121,256
! o)363
62,390
100 ! 3,043
SO,662 2,042 ! 5,001
26,767
4 i
849
21,886
30 ! 2,158
76,529 .1
i 13,410
29,180
683 j 1,866
10,21.5
!
750
34,129
I
886
8,591
1,910 |
220
42,718
2,040 i 10,771
Boston
"Now York
Philadelphia
Cleveland
Richmond
Atlanta.
Ch
icago
St. Louis
.Minneapolis
Kansas City
Dallas....."...
San Francisco
I
Total
569,816
Aggr.
Transfers.
gato doposits
and
transfers
from
Debit. Credit.
agents'
fund.
20,000
11,100
22,042
7,501
24,880
41,226
5,683
3,000
9,000
12,910
19,540
1,921
15,393
6,548
5,001
8"49
12,858
15,823
1,866
750
886
220
10,771
6,809 | 46,238 | 176,885 j 72,856
2,000
17,000
5,000
162
70,000
59,000
23,000
44,000
220,162
Daily settlements, Aug. 23, 1918, to
Sept. 19,1918, both inclusive.
Net
debits.
Total
debits.
Total
credits.
17,250 284,765
197,000 270,903 1,211,780
13,062
363,270
16,322 320,058
1,575 187,017
7,304 114,581
Balance
in
fund at
elos? of
Net business
19,
credits. Sept.
1918.
8,519
276,034
940,877
380,909
335,792
192,022
116,522
503,719
227,959
113,3$9
197,012
90,501
l!8,94r>
17,639
32,056
0,.ri80
9,242
98,863
4,479
14,794
58,733
29,721
50,390
67,683
42,716
71,539
53.355
25)117
11,640
80,089
21,116
20,823
23,74.8
7,622
40,339
220,162 j 329,016 3,493,631 3,493,631
329,016
465,787
100
"5,"666'
8,726
6,930
5,000 i
404,856
232,206
105,481
140,279
60,780
68,555
Federal Reserve agents9 fund—Summary of transactions from Aug. 23, 1918, to Sept. 19, 1918, both inclusive.
[In thousands of dollars.]
Balance
last statement, A us;.
F e d e r a l "Reserve a g e n t at—
22,1918."
B^'-ton
New York
.
.
Philadelphia..
Atlanta...
St. Louis
Kansas City
Dallas
San Francisco
To t al
,
.
.
Gold
withdrawals.
48,500
100,000
92,314
90 000
36,500
20,620
154,205
50,131
8,300
46,360
584
70,201
2,500
718,315
14,400
Gold
deposits.
Withdrawals
fur transfers
to bank.
1,000
10,COO
3,505
2,000
3,000
1,500
10,700
2,413
1,400
3,000
26,618
Deposits
through
transfers
Irom'
ban!?.
Total
withdrawals.
2 500
10,000
4,505
Total
deposits.
Balance
a t close of
business
Sept. 19,
1918.
1,400
3,000
11.000
20',000
7,500
24,850
41,226
5,000
3,000
9,000
11,000
17,500
40,000
110,000
99,409
110,000
44,000
32,770
190,018
53,631
11,300
55,360
10,184
84,701
41,018
170,076
847,373
20,000
11,000
20,000
7.500
24.850
41,226
5,000
3,000
9,000
11,000
17,500
12, 700
5,413
1,500
170,076
26.666
OCTOBER 1,1018..
1021
FEDERAL BESERVE BULLETIN.
OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM, AUG. 16 TO SEPT. 15, 1918.
Items d r a w n on
banks in Federal
Reserve city (daily
average).
Number.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals:
Aug. 16 to Sept. 15, 1918
July 16 to Aug. 15, 1918
June 16 to July 15, 1918
May 16 to June 15, 191S
Apr. 16 to May 15, 1918
Mar. 16 to Apr. 15, 1918
Feb. 16 to Mar. 15, 191S
Jan. 16 to Feb. 15. 1918
Dec. 16, 1917, to Jan. 15, 1918
Nov. 16 to Dec. 15, 1917
Oct. 16 to Nov. 15, 1917
Sept. 16 to Oct. 15, 1917
Aug. 16 to Sept. 15, 1917
July 16 to Aug. 15, 1917
June 16 to July 15, 1917
May 16 to June 16, 1917
Apr. 16 to May 15, 1917
Amount.
,
,
Number. | Amount. | Number.j Amount.
817,374,473
79,681,300
21,845,793
6,320,000
5,507,000
1,741,593
22,022,000
8,129,980
7,279,516
8,488,077
1,363,432
2,668,463
57,839
79,297
32,781
44,121
35,170
17,931
46,786
25,251
15,473
41,872
20,439
25,019
182,321,867
172,600,132
192,220,658
164,539,000
178,372,385
159;441,188
153,701,375
1153,847,568
il48,033,108
!
171,723,439
1166,552.773
|128,271',466
1100,331,694
I 98,075,919
109,722,256
97,322,883
87,370,859
60,288,002
441,979
406,330
391,261
295,056
287,061
271,506
259,531
227,312
253,458
240,756
232,723
212,935
182,191
175,625
182,622
179,193
171,093
168,607
6,082
10,767
10,671
2,524
1,773
1,797
10,057
3,958
2,847
2,362
1,156
1,129
".
Items drawn on Items drawn on
banks in district
banks in other disoutside F e d e r a l
tricts (daily averReserve city (daily
age).!
average).
;
88,811,516 •
51,598,324 !
4,375,772 j
20,142,478 I
11,531.291 i
5,210^972 i
11,505,000
5,149,596
1,698,493
11,225,146 !
6,323,155
7,803,061
145,374,804
131,047,263
143,751,620
113,407,619
114,099,520
98,201,962
113,134,162
80,248,466
89,065,135
84,440,761
64,296,210
47,476,204
41,323,621
40,353,278
41,004,720
38,599,461
36,473,163
32,666,959
6,207
34,983
15,328
2,745
5,438
1,667
4,457
914
892
5,712
1,760
452
§8,112,675
17,998,399
10,70S,949
4,390,129
6,621,784
2,738,120
1,035,000
1,215,077
1,798,092
5,191,636
1,544,586
1,410.513
80,555
76,404
74,128
54,132
54,888
53,725
51,259
44,654
49,342
46,353
45.393
40,216
32,564
31,273
33,941
33,150
33;428
32,008
62,764,960
58,502.291
72,555; 997
55,703,310
58,513,363
53,391,691
46,556,709
42,852,372
52,175,578
58,458.952
53.089; 827
44'. 98-1,581
40;648,168
37,981.022
46,762; 698
38,314,393
36,836,934
34,693.542
Items handled by
both parent bank
and branches
(daily average).i
Total, exclusive of Items drawn on
it ems d r a w 11 0 n Treasurer
of Number Number
Treasurer
of
United States of mem- of nonUnited States
ber banks! member
(daily
average).
(daily average).
in dis- j banks on
Number. | Amount.
Number.
trict.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals:
Aug. 16 to Sept. 15, 1918
July 16 to Aug. 15, 1918... J
June 16 to July 15, 1918
May 16 to Juno 15, 1918
Apr. 16 to May 15. 1918
Mar. 16 to Apr. 15', 1918
Feb. 16 to Mar. 15, 1918
Ja». 16 to Feb. 15, 1918
Dec. 16, 1917, to Jan. 15, 1918
Nov. 16 to Dec. 15, 1917
Oct. 16 to Nov. 15, 1917
Sept. 16 to Oct. 15. 1917
Aug. 16 to Sept. 15, 1917
July 16 to Aug. 15, 1917
June 16 to July 15, 1917
May 16 to Juno 16, 1917
A pr. 16 10 M a y 15, 1917
Mar. 16 to Apr. 15, 1917
1,300 i 82,271,070
180
637,857
2,933
623,754
249
237,000
540
289,396
2.5S6 I
862,461
881 !
184,380
2,384 i 1,760,387
j
70,128
125,047
58,780
50,690
42;561 I
24,328
61,549 !
30,663 ;:
19,212
52,532 i
24,236
28,984 •'
Amount.
534,298,904
149,178,023
36,930,514
33,128,677
24,297,932
10,314.439
34,799; 000
14,784,049
10,776,101
25,767,320
9,415,553
13,642,424
11,053 i 6,866,305 588,710 i397,327,936
546,358 I373,404,503
13.395 • 11,254,817
19,212,816 538,98-1 '427,741,091
7, G23 12,355,115 407,866 346,005,044
8,294 15,141,604 i 399,812 :366,126,872
7.793 8,942,976 | 388,058 319,977,817
7; 700 6,413,071 ' 369,898 321,805,317
7,128
5,836,958 325,301 :282,785,364
?; 718 3,402,035. 359,067 :292,585,856
343,787 '314,623,152
325,690 ;283,938,810
293.742 !220,732,251
251,061 182,303,483
243,625 176,410,219
255,039 197,489,674
250,241 174,236,737
238,288 160,680,956
231,777 j127,648,503
! par list.
Number. Amount.
9,143 85,922,140
41,776 19,436,129
6,815
1,177,042
•3.877 2,466,923
X640
488,891
3,324
1,189,629
8,639 4,773,000
4,650 I 1,151,354
517 i
171,099
2,483 j
412,041
2,066 i
495,278
2,283 ' 8,012,117
87,213
81,323
82,536
77,750
60,771
69,228
58,991
48,224
38,130
33,806
30,426
26,797
23,492
19,533
19,100
16,344
15,925
12,582
45,695,643
41,063,646
47,181,467
39,054,003
30,928,185
31,563,675
25,827.757
21,316', 033
21,116,293
27,179,053
17,496,974
13,518,566
11,006,515
9,701,569
11,637,899
4,414,508
3,597,865
2,643,408
418 !
703 !
630 !
798
554
4.14
1,253
502
842
986
707
621 I
8,428
8,294
8,212
8,165
8,113
8,059
8,013
7,972
7,909
7,823
7,826
7,747
7,718
7,683
7,666
7,651
7,634
7,625
267
346
325
697
356
317
2,409
1,049
1,196
2,208
245
1,134
10,549
10,206
9.761
9', 710
9,475
9,450
9.425
9', 319
9,268
9,321
9,210
9,052
8,934
8,837
8,805
8,789
8,926
8,607
1 Items drawn on banks in other districts (columns 5 and 6), also items handled by both parent bank and branches (columns 7 and 8),
represent duplications of items shown in columns 1 to 4. Such items are counted both by the Federal Reserve Bank or branch at which.; they
are deposited and also by the Federal Reserve Bank or branch to which they are forwarded for ultimate collection.
1022
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
DISCOUNT OPERATIONS OF THE FEDERAL RESERVE BANKS.
Discount operations of the Federal Keserve
Banks during the month of August aggregated
$3,762,359,098, compared with $3,343,456,443
for July and $3,161,920,534 for June. Of the
total bills discounted during the month, the
share of war paper, i. e., member banks' notes
and customers' paper secured by United States
war obligations, was 83.1 per cent, compared
with 73.9 per cent the month before and 82.9
per cent for June of the present year. About
61.3 per cent of the total discounts and over
65 per cent of the war paper discounted during
the month, as against 58 and 64 per cent the
month before, are reported by the New York
bank. Outside of New York the largest increases in discount operations for the month,
as compared with July, mainly under the head
of war paper, are shown for the Minneapolis,
Philadelphia, Atlanta, and Dallas banks.
Owing to reclassification of the discount material by the Chicago bank the amount of collateral notes secured by eligible paper shows adecreasefrom $162,910,586 for July to $56,476,330
for August, the amount reported by the Chicago
bank declining from $126,593,975 to $25,383,495. Inversely, "All other discounts " reported
by that bank show an increase from $48,814,937
for July to $116,413,498 for August. Trade acceptances discounted by all the banks during
the month totaled $13,568,349, of which $11,774,139 (as against $13,712,264 in July) represented transactions in the domestic trade and
$1,794,210 (as against $562,776 in July) transactions in the foreign trade. Nearly 38 per
cent of the discounted domestic trade acceptances are reported by the New York bank
and about 18 per cent by Cleveland, Chicago
being the only other bank showing over one
million of this class of paper for the month.
The totals above given are exclusive of
$6,134,247 of foreign trade acceptances and of
$1,645,720 of domestic trade acceptances bought
during the month in the open market by the
BostonJNew|York,T!leveland, and San Franciscojbanks.f
fgOver 92|per cent of all the paper discounted
during the month was 15-day paper, i. e., maturing within 15 days from date of discount
with the Federal Eeserve Banks. For the New
York bank this percentage, because of the
large amount of member banks' notes handled,
runs as high as 96.8 per cent. Marketing of
the wheat crop is apparently responsible for
the large decrease in the discounts of 6-month
paper from $25,263,873 in July to $8,840,308
in the month under review.
Average maturities of the paper discounted,
except by the three Eastern and the Cleveland
banks, were shorter than for the month before,
the decreases being especially marked in the
case of the Minneapolis, Kansas City, and
Dallas banks because of the large reduction in
the amounts of 6-month paper handled by
these banks. For the system as a whole the
average maturity of the paper discounted during the month works out at 12.7 days, compared with 12.85 days in June. Average rates
of discount show the largest declines for the
same banks, for which the average maturities
show the greatest decreases. Minneapolis,
Dallas, and Kansas City in the order named
show the longest average maturities of the
paper discounted during the month, while
Dallas, Minneapolis, and San Francisco show
the highest average rates of discount charged
during the month. For the system as a whole
the average rate works out at 4.25 as against
4.37 per cent in July.
On the last Friday of the month the banks
held a total of $1,428,195,000 of discounted
paper as against $1,302,151,000 on the last
Friday in July. Of the total discounts on hand
the share of war paper was 62.7 per cent, compared with 52.2 per cent about the end of July
and 48.8 per cent about the end of June. At
the New York bank this share was over 74 per
OCTOBER 1,1918.
cent, and at the Boston and Philadelphia banks
over 71 per cent. Discounted trade acceptances on hand totaled $15,487,000, as against
$17,379,000 about a month before. Of the
former total over one million were foreign trade
acceptances all held by the New York bank.
Nearly one-half of all the discounted trade acceptances are held by the New York and
Cleveland banks. Agricultural paper holdings
totaled $38,293,000, as against $36,456,000 the
month before, while live-stock paper totaled
$50,906,000, of which nearly one-half' is reported by the Kansas City bank.
The month witnessed 130 new accessions to
membership, the total membership at the end
of August being 8,453 banks. Over 43 per cent
of this number, or 3,671 member banks, as
against 3,462 in July, discounted with their
1023
FEDERAL RESERVE BULLETIN".
Federal Reserve Banks during the month
under review.
In the following exhibit are given the number
of member banks in each Federal Reserve district at the end of August and the number of
discounting member banks during that month:
Federal Reserve Bank.
Boston
New Y o r k . . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas Citv...
Dallas
San Francisco.
Total...
Number of member banks in district.
Number of member banks accommodated.
August. I July.
August.
417
703
653
796 '
554
412
1,251
503
843
989
715
617
416
695
851
787
550
414
1,190
8,453
July.
984
704
610
215
335
270
144
261
207
562
170
395
290
436
386
182
323
245
166
268
214
543
139
399
327
4.24
232
8,323
3,671
3,462
1024
FEDERAL RESERVE BULLETIN".
OCTOBER 1,1918.
Bills discounted during the month of August, 1918, distributed, by classes.
Member banks' collateral !
notes.
Customers'
paper
secured bySecured by
Liberty
Liberty
Trade acbonds or
bonds or
ceptances.
Otherwise
United
United
secured.
States cerStates certificates of
tificates of
indebtedness. indebtedness.
Federal Reserve Bank.
Boston
New York
Philadelphia.
Cleveland.. *.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
.526,591,023 $88,800,196
* 51,817,705 1,997,927,111
91,960,382
19,026,615
89,755,710
4,622,533
151,944,645
5,008,415
55,559,1(J2
284,729
6,056,940 256,902,885
71,292,183
736,719
45,844,500
2,867,225
39,849,829
503,000
50,661,040
1,188,771
66,924,933
1,303,396
Total...
120,007,071 3,007,422,576
1
Includes $1,711,375 in the foreign trade.
$918,000
1,655,000
1,925,500
345,000
25,383,495
50,000
16,053,903
8,442,332
1,703,100
Another
discounts.
Total.
$602,986
i 6,141,658
557,442
2,048,621
772,059
175,920
1,073,997
742,458
100,510
525,548
146,213
2 680,937
$6,828,518
250,200,396
35,721,623
33,174,966
9,168,682
25,980,985
116,413,498
19,238,289
21,941,036
9,427,334
13,881,097
22,908,348
$123,740,723
2,306,086,870
147,266,062
131,256,830
168,819,301
82,345,796
405,830,815
92,059,649
86,807,174
58,748,043
67,580,221
91,817,614
13,568,349
564,884,772
3,762,359,098
56,476,3
2 Includes $82,835 in the foreign trade.
Amounts of discounted paper, including member banks' collateral notes, held by each Federal Reserve Bank, on the last Friday
in August, 1918, distributed by classes.
[In thousands of dollars, i. e., 000 omitted.]
Banks.
Agricultural
paper.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
14
587
421
84
4,998
3,153
5,629
397
4,825
3,453
5,985
8,747
Total.
Percent
:8,293
Member banks' collateral
notes.
Customers' i
paper sccuredi;
by Liberty
Secured by
Live-stock
bonds or" i Liberty"
paper.
Otherwise
united States bonds or
certificates of .United States secured.
jindebtedness.-, certificates of
I indebtedness.
"l
921 !
972 j
1,112 I
91 !
472 ;
10,923 i
24,764 j
5,198 :
6,449 :
50,903 j
3.6 i
1
22,872 i
65,639 i
26,096 i
6,173 |
6,581 :
389
11,281
1,236 .
3,766 ;
oil i
950 I
1,950 ,
147,444 ;
10.3 !
28,787
350,082
39,355
37,691
33,658
26,435
109,253
31,4.77
21,001
16,398
23,511
30,804
748,452 !
52.4 !
Trade
All other
discounts.
3,735
742
14,092
735
3,539
1,456
429
1,639
1,127
257
420
1,051
19,773
141,239
23,742
39,893
10,615
18,259
44,022
17,854
10,676
9,654
6,787
27,555
57,544
4.0
15,487
1.1
370,069
25.9
1,640
1,330
79
42,237
Total.
72,188
561,639
91,270
89,992
58,642
49,855
214,152
1,428,195
100.0
59,941
58,935
42,431
76,556
Includes SI, 043,450 in the foreign trade.
Bills discounted by each Federal Reserve Bank during August, 1918, distributed by rates of discount; also average maturities
and rates of bills discounted by each bank during the month.
4 per cent.
Amount.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
SanFrancisco
Total
4£ per cent.
! Discount.
$93,785,795 |
$97,433
2,231,080,672 I 1,408,203
I 127,631,075
192.543
! 72,094,815 .
106,178
Amount.
Discount.
85,062
117,129
$24,759,746
50,790,141
16,597,956
49,775,836
157,203,489
328,169
0,492,779
729,149
2,537,225
41,891,783
1,020,332
2,431,323
8231,402
475.580
151,573
105,193
163,187
2,072
48.500
6:i3S
19', 592
74,605
7,755
13,751
3,168,507,546 ' 2,841,711
354,557,928
1,299,348
! 73,489,437 \
! 304,449,053 j
! 77,793,852 '
| 63,514,617 :
i
52,626,653 i
71,441,677 1
118,553
492,855
120,236
103,519
44 per cent.
Amount.
4| per cent.
! Discount.
|
$002,987
1,749,258 I
548,606 !
1,707,391 !
65,744 ;
148,029
76,611,246
5,961,901
' 88,127
7.815,521
146,213
495,256
95,940,279
S3,708
13,045
2,535
12,369
Amount.
Discount.
150,927
11,823
489
13,405
982
3,751
$4,576,062
22,442,240
2,483,175
7,078,788
4,250,914
8,170,401
17,406,652
7,326,908
8,609,446
466,947
4,732,746
14,935,418
$27,876
198,932
13,544
55,489
11,008
62,933
132,832
55,504
51,582
3,058
28,282
131,713
214,089
102,479,697
772,753
1025
FEDERAL RESERVE BULLETIN.
OCTOBER 1 , 1 9 1 8 .
Bills discounted by each Federal Reserve Bank during August, 1918, distributed by rates of discount; also ave rage maturities
and rates of bills discounted by each bank during the month—Continued.
5 per cent.
5\- per cent.
5J per cent.
Total.
" i
Amount.
Boston
New York...
Philadelphia.
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Discount. Amount. Discount. Amount. Discount. \ Amount.
$16,133
24,059
5,250
$239
164
88
I 7,187,024
!
209; 760
!
:
58,989
3,316
i 11,122,496
I
! 7,250,324
i
220,976
118,187
j 26,036,622
262,815 I 8,772,832 \
$112,130
51,813 ;.
6,856,749 I
79,358 1,803,953 \
2,474 |
•
$871,085 I
247,839 |
935,263
1,717.043 i
818,344
4,854
17,850
34.091
".....; 2,292,964LT
43,713
60,200
34,074
Discount, i
Average Average
rate (per
maturity cent).i
$123,740,723~r 5300,658 |
2,300'. 080.870 2,095,924 ;
147,206,062
300/283 I
131,256,830
279,229 j
108,819,301
235,003 |
82,345,796
187,863 I
405.830,815
843,458 !
92;059,649
198.555 ;
86,807,174
311.; 219 !
58.748.043
185,419 ;
O7'.5SO;221
235,513 i
91; 817,614
312,531 i
0,147 j 6,004,194 | 118,852 J3.762,359,093 5,005,715 j
4.22
4.12
4.13
4.25
4.4b
4.24
4.23
4.25
4.55
4.77
4.56
4.50
25.23
8.05
21.32
18.03
11.27 I
19.35
17.69
18.26
28.34
23.81
27.50
27.26 '
12.70 |
2
4. 25
1
2
Boston and New York calculated on a 365-day basis; ail other Federal Reserve Banks on 360-day basis.
Average discount rate on all paper discounted works out at 4.22 per cent if calculated on a 360-day basis, and at 4.28 per cent if calculated en a
uniform 365-day basis.
Acceptances bought in open market and held by all Federal Reserve Banks on dates specified, distributed by classes of accepting
institutions.
];ankers' accepI:ances.
Date.
Feb. 22.
Apr. 5 . .
July 3 . .
Oct. 4 . .
Jan. 3..
Apr. 3 .
July 3 .
Oct. 2.
Jan.1
Apr. 2
July 14-16.
Sept. 2 9 . . .
Dec. 3 1 . . . .
Jan. 3 1 . .
Feb. 28.
Mar. 31.
Apr. 30.
May 31..
June 29.
July 31..
Aug. 31.
1915.
1916.
1917.
1918.
Member
banks.
Nonmembor Nonmembcr
trust
companies. State banks.
S93,000
3,653,000
4,342,000
9,000,000
S7,820,000
5,207,000
4,898,000
15,494,000
21,000,000
32,989,000
37,798,000
Foreign
bank
branches
and
agencies.
Private
banks.
Total.
"i32,"666
8110,000
161,000
343,000
893,000
11,593,000
9.770.000
14;373; 000
7,100,000
13,572,000
18,921,000
21,782,000
362,000
473,000
471,000
712,000
822,000 I
3,262,000!
11,830,000
9,944,000
23,838,000
38,308,000
64,211,000
70,236,000
66,803,000
43,979,000
108,597,000
131,997,000
227,717,000
34,625,000
20,328,000
30,390,000
14,987,000
8,163,000
1,502,000
089,000
3,333,000
2,193,000
3,179,000
18,224,000
16,830,000
38,082,000
21,708,000
20,137,000
!
I
I
!
'
240,259,000
252,747,000
275,144,000
248,390,000
207,917,000
173,698,000
154,614,000
188,366,000
5,547.000
1,048; 000
1,360,000
654,000
1,330,000
1,992,000
1,129,000
1,717,000
3,522,000
3,Son,000
1,884,000
2,907,000
5.168.000
'459;000
7,302,000
8,264,000
22,099,000
28,419,000
31,779,000
25,921,000
26,217,000
21,478,000
18,082,000
19,167,000
"• 6,947,000 ! 278,374, 000 ;
I 7,097,000 ! 293,767, 000 !
; 8,562,000 : 318,729, 000!
j 10,304,000 288,176, 000
! 8.398,000 249,030! 000
i 12;315,000 ! 209,942; 000
! 8,975,000 i 190,102, 000
i 8,450,000 : 225,964' 000
!
810,000
121,154,000
3200,000 i 82,020,000
3,805,000 ! 184,785,000
2,286,000 , 173,171,000
7,657,000 ! 266,853,000
Trade
acceptances
Total,
bought in acceptances.
open
market.
$93,000
11,593,000
9,770,000
14,373,000
$722,000 !
3,422,000 i
2,306,000 i
23,838,000
39,030,000
67,633,000
72,542,000
4,585,000
1,144,000
4,660,000
6,942,000
6,383,000
'
i
I
!
i
125,739,000
83,170,000
189,445,000
180,113,000
273,236.000
6,363,000
5,456,000
8,015,000
9,279,000
8,276,000
7;418.000
7,781;000
8,806,000
I
i
j
i
!
.
!
!
284,737,000
299,223,000
326,744,000
297,455,000
257,306,000
217,360,000
197,883,000
234,770,000
1026
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
Acceptances bought in open market and held by each Federal Reserve Bank, on August SI, 1918, distributed by classes of
accepting institutions.
[In thousands of dollars; i. o., 000 omitted.]
Federal Reserve
Bank.
Boston."
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Member
banks.
Nonmcm- Nonmember trust
ber State
companies.
banks.
Private
banks.
26,243
90,804
8,609
23,746
4,782
3,577
15,502
1,672
297
136
554
12,444
250~
761
6,284
752
349
1,000
18
47
100
188,366
1,717
8,264
426"
Foreign
banks,
branches,
and
agencies.
1,010
14,671
433
1,727
130
7,939
Total.
Domestic.
Foreign.
Total.
Total
acceptances.
398
1,379
259
378
657
1,757
424
53
477
220
28,144
120,118
9,794
26,233
4,782
3,577
16,520
1,695
297
136
554
14,114
5.915
5,915
28,801
121,875
9,794
26,710
4,782
3,577
16,520
1,695
297
136
554
20,029
8,450
225,964
2,201
6,605
8,806
234,770
161
23
1,303
19,167.
Trade acceptances bought in open
market.
Amounts of bills discounted and acceptances and warrants bought by each Federal Reserve Bank during August, 1918,
distributed by maturities.
15-day maturities.
Discounts.
Acceptances.
Warrants.
30-day maturities.
Total.
Discounts.
Acceptances.
Boston
Now York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
$93,918,843
§994,968
2,231,922,572 13,931,865
127,793,462
451,049
118,418,935
173,846
156,488,559
249,600
73,586,243
9,400
381,635,279
20,800
83,169, 738
90,000
250,300
17,347,038
49,194,750
80,000
52,626,654
72,680,772 2,234,280
$94,913,811
2,245,854,437
128,244,511
118,592,781
156,738,159
73,595,643
381,656,079
83,259,738
17,597,338
49,194,750
52,706,654
74,915,052
$2,279,846
3,746,514
2,344,326
1,765,132
1,463,946
1,098,471
2,700,382
1,444,047
11,800,199
710,998
1,005,277
1,877,615
$2,247,528
19,546,798
Total....
Percent
3,458,782,845
3,477,268,953
32,236,753
27,840,126
18,486,108
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Per cent
Accept-
j $4,920,658
j 8,420,032
I 2,529,153
| 3,844,740
! 3,571,279
! 3,270,484
i 7,681,602
; 3,122,821
j 1,032,327
! 2,589,122
! 4,234,429
\ 3,542,458
,6
550,000
:, 061, 161
48,759,105
44,821,640
733.894
461,019
555,779
125,872
121,274
149,880
843,146
170,000
Warrants.
Total.
$4,527,374
23,293,312
2,344,326
2,514,542
4,857,346
1,292,999
3,323,842
1,469,047
11,832,199
710,998
1,059,491
2,851,403
749,410
3,393,400
194,528
623,460
25,000
32,000
54,214
973,788
60,076,879
1.5
90-day maturities.
60-day maturities.
| Discounts.
Warrants.
Total.
Discounts.
Acceptances.
S40,610
$7,654,552
35,881,051
3,084,932
9,970,612
4,692,553
3,460,974
9,524,748
3,292,821
1,032,327
2,638,737
4,784,429
7,603,619
$22,605,243 $13,135,349
61,973,093 30,922,336
14,593,871 2,073,342
7,208,494 8,238,194
999,000
7,183,387
1,223,755
4,173,038
12,941,692
635,225
4,075,205
140,000
54,764,487
10,000
4,545,130
30,000
7,908,969
5,389,242
11,767,478
40,610
93,621,355
2.4
213,740,087
71,027,379
Warrants.
Total.
$5,075
$35,740,592
92,895,429
16,667,213
15,446,688
8,182,387
5,401,868
21,172,628
4,710,430
54,904,487
4,555,130
7,938,969
17,156,720
5,075
284,772,541
7.3
1027
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
Amounts of bills discounted and acceptances and v:arrants bought by each Federal Reserve Bank during August, 1918,
distributed by maturities— Continued.
Over 90-day maturities.
Discounts. Acceptances.
Boston
New York . .
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City
Dallas
San Francisco..
$16,133
$28,000
24,659
5,250
19,529
112,130 "*"243,6o6*
217,560
20,000
871,860
300,160
247,838
1,863,123
1,708,043
1,804,892
1,949,291
30,000
Total
Per cent
8,840,308 |
621,160
Warrants.
•
Total.
Total.
Acceptances.
Discounts.
Per cent.
Warrants.
Dis- Accept- Warcounts. ances. rants.
Total.
$44,133 $123,740,723 819,139,739
24,659 2,306,086,870 91,862,018
147,266,062
3,080,170
5,250
131,256,830 15,287,322
19,529
168,819,301
6,006,274
355,130
$4,591 242,151
82,345,796
1,597,563
1,172,020 405,830,815 11,018,502
92,059,649
920,225
247,838
86,807,174
422,300
1,863,123
58,748,043
59,615
1,708,043
67,580,221
714,214
1,804,892
91,817,614 12,688,471
1,979,291
$142,880,462
2,397,948,888
150,346,232
146,544,152
174,825,575
83,993,635
$50,276
416,849,317
92,979,874
87,229,474
58,807,658
4,591 9,466,059 3,762,359,098 162,796,413
0.2
fiS 294.425
! 104,'506,'685
86.6
96.2
98.0
89.6
96.6
98.0
97.4
99.0
99.5
99.9
99.0
87.9
13.4
3.8
2.0
10.4
3.4
1.9
2.6
1.0
.5
.1
10
12.1 !
50,276 3,925,205,787
100.0
95.9
41
Total.
100
100
100
100
100
I0O
100
100
100
100
100
100
0.1
!
I
100
!
Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, Aug. 80, 1918.
fin thousands of dollars; i. e., 000 omitted.]
1 to 15 days.
Banks.
Boston
New York
Philadelphia,
Cleveland...
Richmond..
Atlanta
Chicago
St. Louis...
Minneapolis
Kansas City
Dallas....:
San Francisco
Bills disoounted.
i
.!
-|
!
i
!
Total
Per cent
32,033
459,513
53,710
58,669
42,225
37,401
164,651
38,819
31,511
,
25,646
25,363
40,224
j 1,009,765 |
I
\
16to30davs.
Municiapl
warrants.
5,637
17,622
2,002
4.269
1,484
919
1,294
113
335
3,994
37,749
Total.
Bills discounted.
37,670
477,135
55,712
62,938
43,709
38,320
165,945
38,932
31,591
25,646
25,698
44,218
7,519
19,939
3,989
10,640
2,574
2,317
13,574
5,280
3,353
5,073
1,659
7,931
3,540
40,668
1,637
4,672
1,417
731
1,116
127
85
1,047,514
63.1
83,848
58,252
31 to 60 days.
Banks.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total.
Percent
11,815
28,351
19,889
10,821
7,234
6,589
13,036
5,124
8,562
13,330
5,641
16,266
j.
798 |.
4 082
394 .
146,658
79,753 I
3,
137 i!
704
7, 452
856
40
126
200
101
Municipal!
warrants. !
Ti o ,t a ,L
11,050
60,607
5,626
15,312
3,991
3,048
14,690
5,407
3,438
5,073
1,713
12,136
54
4,205
142,100
8.6
61 to 90 days.
Municipal
warrants.
Bills discounted.
Acceptances
bought.
41
41
Total.
20,897
65,149
23,283
22,684
8,371
7,334
20,488
5,980
8,602
13,456
5,841
24,367
226,452
13.6
Bills discounted.
20,
53,
13,
9,
6,
3,
19,
3
9,009 j
167,791 I
j warrants
Municipal
bought.
10,487
26,787
2,729
5,278
704
I
...
;..
:.
:.,
...
1,203 •
5,878 .
605 i..
131 .
10 i.
30 i.
3,012 i.
56,849 \
-
Total.
31,294
80,621
16,396
15,098
7,083
4,365
24,880
?>}666
12,948
9,864
6,409
12,021
224,645
13.5
1028
FEDERAL RESERVE BULLETIN.
OCTOBER 1, 1918.
Maturities of discounts, acceptances, and municipal warrants held by each Federal Reserve Bank on Friday, Aug. 30,
1918—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Tstal.
Percentages.
Bills j A c c e p t - 11^ 0 "
disancos | A '" Total,
counted, bought, j , . ; ';(" |
! rants, j
..!
Acceptances
bought.
Boston
New York,
Philadelphia.
Cleveland
Richmond.
Atlanta
Chicago
St. Loins
Minneapolis
Kansas City
Dallas
San Francisco
!
391
! 3,889
i
309
' 3,698
! 5,032
; 3,389
I 3,120
20,133
Total
Percent
309
3,098
5J032
3,389
3,126
.934
! 100.
,514
! 683'
j 101;032
116, ,069
, 3S4
!
23,745
121,875
9,762
20,077
4,742
3,557
151740
1,701
336
136
619
19,312
49,
214,
52,
59.
58.
42,
76,
28. i
17.!
9.'
22. i
xoo
,480
892
294
277
071
.050
868
100
100
100
100
100
100
100
100
100
100
100
0.1
21 20,151 1,428,195 232,603
11.0 .
1.2
100
Total investment operations of each Federal Reserve Bank during the months of August, 1918 and 1917.
Bills discounted for
member and
Federal lieserve Banks.
Federal Reserve Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Lo'uis
Minneapolis
Kansas City
Dallas
San Francisco
Total, August, 1918.,
Total, August, 1917
Bills bought in open market.
Bankers'
acceptances.
Trade acceptances.
Municipal warrants.
City.
Total.
State.
§123,740,723 !
2,306,086,870 j
147,266,062 !
131,256,830 :
168,819,301 !
82,345,796 i
405,830,815 |
92,059,649
86,807,174
58,748,043
67,580,221 I
91,817,614 !
§398,340 !
818, 741,399
89, 799,746 12,062,272 I
3,'080,170
14, 868,573 ""V4is"749"|
6,006.274
1,597;563
11, 018,502
920,225
422,300
59,615
714,214
7,787,865 ' 4,900, 606j
319,139,739
91,862,018
3,080,170
15,287,322
6,006,274
1,597'563
11,018,502
920,225
422,300 i
59,615 i
714,214. I
12,688,471 j
S45,68o"|
3,762,359,098 j
220,939,974 j
155, 016,446
67, 510,898
162,796.413
72,122;802
45,685 !.
125,938 j.
7,779,967 j
4,611,904 1
United States \
ccrtificates of j
indebtedness. 1
3£ per
cent.
Boston
New York...
Philadelphia
Cleveland
Richmond,
Atlanta...
Chicago...
St. Louis
Minneapolis
Kansas City
Dallas
.*
San Francisco
'•
j
|
150
25,200
27,000 I 140,000
I
!
j
Total, August, 1918
Total, August, 1917
|
1
•
Incudes $1,263,246 in foreign trade.
* Includes 113,000 in foreign trade.
369,900
396,950
1 3,825,460
I
'
92,000
257,600
Total.
! . . . ! . . " S4**59i'
S50,276
4,591
9,278
50,276
135,216
Total investment
operations.
United States securities.
Federal Reserve Bank.
All
other.
Total.
1918
19174
§142,880, 762 §34,008,633
29,285,000 12,427,233,
63,537,219
20,150 i 150,366,
26,064,872
45.200
146,589,
31,344,170
l'.OOO 174', 826,
31,303,845
177,000
84,170;
416,849,
26,317,759
92,979,
18,839,427
82,500
174,500
87,403,
14,148,906
52,500
52,500
58,860,
22,323,333
750,500 I 1,120,400
69,414,
5,742,224
14,514,168
104,506,
$29,285,000
20,000
20,000
1,000
10,000
30,221,500
30,876,050 3,956,081,837
^3,825,460
3 Includes 84,858,001 in foreign trade.
* Exclusive of purchases of Treasury certificates of indebtedness.
297,023,452
1.029
FEDERAL RESERVE BULLETIN.
OCTOBER i, 1918.
Untied States securities held by each Federal Reserve Bank on Aug. 31, 1918, distributed by maturities.
United States bonds with circulation
privilege.
!
Federal Reserve
Banks.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Cil v
Dallas....."
San Francisco
Total
Other United States securities, including 1-year Treasury notes and
Treasury certificates of indebtedness available as security for Federal
reserve bank notes under silver act of Apr. 23,1918.
~
per
: 3 per cent I 3 per 3^cent
1-year I cent
Liberty
j Treasury ! loan ol loan of
notes. ' 1961.
1947.
•
:
;
8750
915,100
240.600
1,862)500
: '
100
>
i 7,155,850
; 2,450,900
2,428,750
:
6100
237,000
21,000
367,300
22,240
281,500
; 15,054,550 929,-100 |
$529,000 SI, 416,000
il.255)400 i 1,476,000
! ' 549,200 1,181,000
414,800 1,660,000
1,285,000
!
! 10,300
965,000
!Sl,7G8.000 ' 427,400 2,112,000
321,000
!
'.
: 1,153,300
j
• 114,800
880,000
! 82-1,400 ! 838,500 1,168,000
!
jl, 233'. 600
901,000
; 1,000,000
I 1,000,000
I
i
!
£383,900
| 196,700
! 11,850
j 1,468.300
•12,850
40)000
900 J2,539,300 1,246,000
459,4 ] 7 | 12,132,000 56,845,267
S400
$26,550
3,800
789)250 I1
37,750
273.350
83,050
500
I 21,900
! 370,600
|
5,200
8,100
Total United States bonds with circulation privilege; 819,576,350. Other United States securities, >37,2
Total,
27,150
;
| 3,592,400 6,526,300 114,365,000 j
U rited
States ceriincat'js oi
ijidebted-
1,722 j
|82,357,922
810.945,000 13,876,900
29,500 2.558,050
150
35.000 3,986,450
410.350
225!000 2.743,200
j
500
2<\ 000 l', 611,550
I 35,300
i
6,620,650
1,474,400
1,045 ;
5, 000 1,021,605
76,000 10,114,990
10,350
750,500 5,938,450
20,000 4,481,100
:
!
;
:
•
'
;
;
i
;
4 per
4* per
cent
cent
Liberty Liberty
loan o?
loan of
19-12-19-17. 192S.
1080
FEDERAL RESERVE BULLETIN.
OCTOBER 1, 1918.
RESOURCES AND LIABILITIES OF FEDERAL RESERVE BANKS.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays
Aug. 30 to Sept. 20, 1918.
RESOURCES.
[In thousands of dollars; i. e., 000 omitted.]
I
New i 1'hilaYork. Idelphia.
Gold in vault and in transit:
Aug. 30
3,598
Sept.6
2.819
Sept. 13
3;i63
Sept, 20
3,423
Gold settlement fund, Federal
Reserve Board:
Aug. 30
76,874
Sept. 6
71,540
Sept. 13
77,965
Sept. 20
68,050
Gold with foreign agencies:
Aug. 3 0 . . . : . . . :
408
Sept. 6
408
Sept. 13
408
Sept.20
408
Gold vvith Federal Reserve
agents:
!
Aug. 30
| 59,953
Sept.6
59,705
Sept. 13
| 59,450
Sept.20
| 59,242
Gold redemption fund:
Aug. 30
; 4,199
Sept. 6.
4,446
Sept. 13
4,599
Sept.20
4,812
Total goid reserves:
j
Aug. 30
|145,032
Sept.6
1138,918 i
Sept. 13
1145,585 |
Sept.20..
1135,935
Legal tender notes, silver, etc.: !
Aug. 30
| 2,371
Sept. 6
! 2,074
-Sept. 13
i 2,315
Sept. 20
! 2,616
Total cash reserves:
Aug. 30.
147,403
Sept. 3
1140,992
Sept. 1;)
Ii47 900
Sept .20
!i38,551
Bills discounted:
I
Secured by Government
yrar obligations—
Aug. 30
51,439
Sept.6-...
62,611
Sept. 13
651887
Sept.20
67,555
All other—
Aug. 30
20,749
Sept.6
19,374
Sept. 13
17,617
Sept.20
16,504
Bills bought in open market:
Aug. 30
28,746
Sept.6
29,353
Sept. 13
29,821
Sept.20
29,311
United States Government
long-term securities:
Aug. 30
942
Sept. 6
742
Sept. 13
538
Sept.20
538
United States Government
short-term securities:
Aug.30
1,416
Sept.6..
1,416
Sept. 13..
1)416
Sept. 20..
I 1,416
289,110
287,998
288,712
272,357
6,179
6,161
6,198
6,294
268 22,823
279 22,866
290 25,010
186 24,898
73,052
107,592
43,235
41,391
53,030
59,317
62,016
69,605
68,372
55,713
69,052
64,220
29,919
26,400
27,003
26,392
2,011
2,011
2,011
2,011
408
408
408
525
525
525
525
204
204
204
204
297,613
297,165
297,165
286,910
112,195
111,795
110,466
111111
111,111
14,955
14,955
15,000
15,000
San I
Minne- Kansas
St.
Fran- i Total,
Louis. apolis. City. Dallas. cisco.
;
Richmond.
135,052
134,576
,! 134,306
.
1144024 |
|144,O24
5,000 : 1,478
5,000 i 1,560
5,000 ! 812
5,000 ! 1,023
676,741
709,721
646,123
617,669
1170,901
il76,799
178,180
186,310
J228,25O
213,240
229,705
234,690
45,175
45,705
45,358
44,808
784
6,782 26,577
6,829 26,761
6,881 26,651
6,712 26,345
19,578
12,862
13,776
7,783
89,643
! 64,450
63,299
77,541
175
816
175 I 816
175 1 816
175 • 816
1,416
1,200
1,411
1,223
8,226
8,222
8,259
8,177
207
353
207
182
30,216
25,286
21,694
22,430
12,667
10,011
22,463
13,115
30,060
23,965
20,662
21,932
233
233
233
233
233
233
233
233
291
291
291
291
2,456
3,684
3,953
3,121
i
!
j
!
4,632 2, 602 2,499
4,919 2,592 ; 2,620
5,162 2, 588 : 2,716
5,356 2, 579 : 2,833
(228,560
1213,635
1230,032
|234,983
77,086
75,862
78,376
79,565
51,077 1291,129
49,194 1277,601
56,120 i288,879
58,'468 J309* 424
86,611
81,829
83,065
j 83,'533
415,221 65,452
453,900 70,280
487,811 70,745
524,966 80,609
43,875
52,564
54,295
54; 158
41,587
45,187
51,048
47,726
26,783 120,533
31,314 146,992
36,024 151,361
39,650 1157,717
32,712
36,481
38,877
44,763
1 46,117
44,983
I 40,644
j 36,775
17,055
19,020
17,656
18,100
23,073
23,728
25,807
28,125
121,875
120,762
123,016
131,978
9,762
8,856
9,693
9,044
1,452
1,450
1,449
1,448
12,438
13,881
18,330
22,279
520,926
496,531
465,298
459,997
317
164
162
159
1,448
1,430
1,707
1,707
425
798
471
400
321
322 1
321 !
321 ;
86,936
91,927
91,736
95,052
I
i
i
!
1,546
1,846
2,146
2,146
84,360
83,409
79,870
81,109
I
!
I
I
31,396 127,872
32,700 137,143
38,039 144,487
40,967 146,894
56
74
75
54
251
291
246
272
!
j
I
!
46,432
43,897
59.350
51,928
84,611
83,700
80,116
81,381
!
j
!
!
4,742
4,649
4,548
4,600
1,348
1,347
1,348
1,348
2,292
2,292
2,292
1,791
1,233
1,233
1,233
1,233
620
620
621
581
4,509 1,153
4,508 1,154
4,50S | 1.153
4,509j 1,153
1,211
1,211
2,410
3,220
1,695
1,725
1,725
2,760
1,510
1,510
1,510
1,510
991
991
991
991
2,112
2,112
2,112
4,112
1,701
1,619
1,600
1,829
321
321
321
1,321
! 1,061,397
I 1,087,760
i 1,123,132
1,145,950
61
61
235 !
418 i
41,433
43,634
44,086
44,122
1 2,013,794
I 2,016,983
2,024,559
2,023,558
964
635
622
516
220
214
175
169
!
!
!
I
53,168
53,511
53,173
52,481
32,360
33,335
38,661
41,483
128,092
137,357
144,662
147,063
i
!
!
!
2,066,962
2,070,494
2,077,732
2,076,039
I 93,619 19,881 35,174 42,026 17,702 44,230
i 97,367 24,306 39,071 39,742 21,666 45,654
j 92,500 24,942 51,457 41,243 21,924 47,375
80,792 23,455 44,985 42,078 23,085 46,439
3,557 15,740
3,436 16,549
3,702 16,393
4,622 17,211
5,829
5,830
5,829
24,767 16,909 24,729 32,326
896,333
25,774 17,595 23,906 40,877 1,007,481
25,911 23,820 24,435 41,251 1,071,465
25,873 29,108 28,504 45,728 j 1,146,357
26,077
27,653
29.476
30,100
I
I
i
!
8,833 28,682 i
9,340 32,055 i
4,327 39,806 !
7,257 40,281
204
204
204
204
11,872
12,778
12,389
10,822
1,159
1,157
1,148
1,142
76,239 10,760 j289,681 j 86,186 ; 46,376
74,998 49,030 |276,171 81,031 j 43; 823
77,571 55,958 287,172 82,594 i 59,275
| 78,951 58,309 307,717 83,133 j 51,874
847
864
805
614
25,818
29,413
26,583
21,030
384,009
383,228
386,214
367,660
'I '
846
794
727
692
310
395
327
293
146,418
130,199
134,034
132,421
j
j
!
i
!
39.091 21,769 ! 168,013 51, 719 1 2'?, 751 52,643 13,862
41,439 25,480 179,225 51, 720 22,737 57,643 : 14,348
;
43,439 31,173 1191,244 56, 668 25,604 57,562 i 2-1,319
45,369 40,518 |197,659 56,668 27,516 57,562. I 24; 319
910
873
171,685
177,666
179,090
;187,183
721,916
755426
755,426
691,481
662,477
6,951
6,962
7,043
7,041
531,862
534,493
541,782
513,789
336
259
262
142
136
136
136
136
619
554
634
695
19,312
19,915
20,469
20,364
232,603
233,741
239,750
250,032
122
116
116
116
8,871
8,868
8,867
8,867
4,347
3; 977
3,977
3,977
3,461
3,461
3,461
3,461
30,350
29,768
29,563
29,022
912
940
984
1,035
1,244
1,269
1,324
1,324
902
1,651
1,651
902
1,020
1,003
1,003
1,008
25,772
28,030
33,777
41,878
1031
FEDERAL RESERVE BULLETIN.
OCTOBEB 1, 1918.
Resources and liabilities of each Federal Reserve Bank and of the Federal Reserve system at close of business on Fridays
Aug. 30 to Sept. 20,1918.—Continued.
RESOURCES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Boston.
All other earning assets:
!
Aug. 30
i
Sept. 6
!
Sept. 13
!
Sept. 20
i
Total earning assets:
i
Aug. 30
103,292
Sept. 6
113,496
Sept. 13
115,279
Sept. 20
115,324
Uncollected items (deduct from |
gross deposits):
j
Aug. 30
| 38,683
Sept. 6
43,491
Sept. 13
! 56,185
Sept. 20
! 49,198
5 per cent redemption fund
against Federal Reserve Bank
Aug. 30
Sept. 6
Sept. 13
Sept. 20
All other resources:
Aug. 30
Sept.6
Sept. 13
Sept. 20
Total resources:
Aug. 30
Sept.6
Sept. 13
Sept. 20
San
New- | Phila- Cleve- RichSt. Minne- i Kansas
FranYork. jdelphia. land. mond. Atlanta Chicago Louis, apolis. City. Dallas. cisco.
67
67 :
70 i
697,404
720,192
764,640
813,092
103,591
111,107
110,779
115,251
120,056
129,217
128,432
125,584
162,779 53,084 46,805
172,017 j 64,461 55,102
170,440 i 64,760 50,042
168,918 ! 60,977 47,845
290,217
298,828
320,236
|303,992
55,768
63,906
66,893
72,521
61,311
66,130
78,730
72,151
69,186
67,610
75,390
81,513
48,299
51,754
52,621
57,163
38,311
40,713
48,063
47,142
40,328
41,854
42,601
55,163
11,650
14,373
17,960
15,614
45,441
53,514
52,697
52,610
20,071
22,792
24,173
19,530
25,192
25,925
54,571
30,155
568,655
642,377
697,225
654,843
400
400
391
402
137
137
137
138
84
84
84
84
1,164
1,313
1,405
2,112
904
918
912
908
710
779
1,074
1,622
1,292
1,382
1,851
1,176
11,787
12,076
13,013
12,610
119,608
124,602
156,253
139,904
1200,542
206,142
209,506
211,814
101,577
108,797
116,666
119,936
255,009
275,666
314,738
295,496
4,365,555
4,559,873
4,705,793
4,726,766
2,879
2,883
2,888
2,890
3,580
3,590
3,597
3,600
3,052
3,059
3,063
3,076
! 26,064 | 60,247
| 31,661 i 76,474
I 32,217 83,516
! 30,338 77,353
19 !
18 i
18 !
48 !
42
631
597
617
673
1,049
828
716
895
1,584,312 1329,968
1,650,032 !1354,949
1,629,018 356,882
1,647,434 1365,013
396,052
398,551
409,153
409,127
182,573
189,002
203,150
200,771
1,939 I
!
66,127 55,091 236,513
71,599 I 60,156 267,528
75,995 67,215 1266,874
73,169 74.035 1264,341
1,558
1,973 ! 1,665
2,033 . 2,153
; 2,023 i 1,452
|
!
'
]
67
75
81
84
11
18
100,349
110,918
113,570
117.018
50
50
100
150
274
424
424
924
Total.
764
757
776
794
200
200
200
280
10
: 1,262
i 1,565
' 1,279
1,429
624
561
538
542
133,015 .589,351 183,331
141,786 j 623,368 188,150
j 156,346 ! 640,748193,097
163,683 i 652,827 211,769
215 !
202
213 i
211 |
1,716,987
1,833,613
1,916,418
1,981,162
LIABILITIES.
Capital paid in:
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Surplus:
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Government deposits:
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Due to members—reserve account: *
Aug. 30
Sept. 13
Sept. 20
Collection items:
Aug. 30
,
Sept. 6
Sept. 13
Sept. 20
Other deposits, i n c l u d i n g
foreign government credits:
Aug. 30
Sept. 6
,
Sept. 13
Sept. 20
,
Total gross deposits:
Aug. 30
Sept.6
Sept. 13
Sept. 20
I
7,302
7,334
7,351
7,351
8,746
8,751
8,756
8,768
6,510
6,510
6,555
6,557
20,092
20,109
20,162
20,173
75
75
75
75
649
649
649
13,070
25,259
25,975
17,391
28,582
31,789
21,487
18 792
5,227
16,928
14,459
15,682
! 9,036
j 20,979
! 19,182
i 15,996
91,311
90,751
91,283
94,972
640,700
661,057
633,944
677,909
87,618
92,549
85,655
89,047
119,977
110,500
116,843
107,351
40,148
31,988
49,323
36,307
104,636
123,988
134,280
116,804
42,738 50,271 32,290
45,570 43,222 33,409
51,823 ; 42,200 41,050
53,522 j 52,502 40,258
114,896
116,831
111,289
95,974
144,529
147,998
166,581
148,670
888,814
933,665
901,000
909,479
•I-
3,921
3,948
3,978
3,9S8
3,126
3,137
3,140
3,142
10,760
10,796
10,811
10,890
116
116
116
116
40
40
40
40
216
216
216
216
38
38
38
4,697 7,463
8,011 33,839
6,898 26,018
10,083 24,748
6,354 3,136
8,946
9,158
9,696 35,354
12,017 12,242
6,527
6,138
9,746
7,330
3,687
3,721
3,731
3,731
6,163
11,890
7,564
7,145
7,933 6,241
6,281 18,104
8,799 j 21,555
10,129 | 17,056
104,729
197,325
206,733
169,141
30,917 i 67,131
31,659 55,286
32,282 66,442
35,502 72,866
1,478,639
1,465,102
1,469,603
1,524,528
16,124
26,124
45,869
19,284
437,885
461,640
527,752
490,265
2,948
2,724
1,994
2,258
120,300
119,960
115,302
100,173
51,467 92,444
51,567 102,238
50,515 135,860
56,449 111,464
2,141,553
2,244,027
2,319,390
2,284,107
52,659
50,724
53,537
54,020
35,639
36,129
39,923
41,424
! 69,048
I 60,632
| 66,851
i 70,865
22,035 44,244
21,738 47,086
21,349 | 57,433
22,723 ! 56,475
34,321
35,396
31,428
42,797
14,497
9, S97
8,832
9,587
23,964
29,538
28,731
29,188
14 2,091
169
1(58
476
207
22
2,5
18
26
! 135.583 1179,444 84,763
il55;047 J174,885 86,759
:151,947 178,435 ! 97,055
|158,251 176,071 93,030
15
30
63,554
64,237
67,017
66,948
1,300
1,456
254,683 93,503
275,078 95,446
282,565 95,137
283,697 109,071
78,168
78,359
78,553
78,689
1,134
1,134
1,134
1,134
45,946 38,808 '200,885
47,152 34,510 1194,153
46,259 38,755 1197,814
45,442 34,112 |201,018
160
184
210
222
4,513
4,521
4,521
4,523
53,594 99,175
54,997 102,060
84,132 103,146
63,279 107,698
12,617
13,624
15,434
10,818
1032
OCTOBER 1, 1918.
FEDERAL RESERVE BULLETIN.
Resources and liabilities of each Federal Reserve Bant and of the Federal Reserve system at close of business on Fridays,
Aug. 30 to Sept. 20, 1918.— Continued.
LIABILITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
San
Dallas. Francisco.
Clove- j RichNcv,"Boston.; York. •dciohia. land. mond.
federal Reserve iiot-cs ir, actual
circulation:
Aug. 30
Sept. 6
Sept. 13
Sept. 20
Federal Reserve bank notes in
circulation—net liability:
Aug. 30
1
Sept. 6
Sept. 13
Sept. 20..
All other liabilities:
Aug. 30
Sent. 6
Sept. 13
Scot.20
Totai liabilities:
Aug. 30
Sept. 6
Sept. 13
Sept. 20
•136,817 !
iMi, 340 ;
I Mi, 288 i
j 14"))576 !
::•
659.766
678)298
683,399
693,083
185,243
1190,452
1195,109
[196,028
3,179
5,892
8,364
11)244
J
311
i
547
j
831
| 1,640
i20f>. 501 92.316
i212)398 96)678
;219'. 108 LOO, 450
|22l)084 102,003
I 65,345
| 73.303
i 85)078
• 92,294
314,806 ; 8-1,938 .
328,297 ! 87)705 !
J337,548 ; 92.866
i347.805 37)294 I
61,939
65,410
67.772
72'. 267
i
I
!
!
87,997
90,500
92,850
95,386
!
!
272
608
2,271
i 2.286
11, 812 : 1. 499
2,313
11, 419 I
569
i 2,405
12, 444 :
2,396
614
1 2,465
12, 806 ! i , 743
2,435
i 2,506
:
,290,217 !l,584, 312 :329, 968 I.39R, 052
1208,828 11,650! 032 -.354, 949 398,551
1320,236 '1,629! 018 J355, 882 1409,353
!:IO9,127
|3()3.992
I:
110
._ 4,881 :
159
.59 I 4,767 '
1;.59 ! 5,236 i
288
'«« ' 5,685 I
204
458
7(59
1.457
1)501
1,551
1,594
182,573
189)002
203,150
200,771
840
860
912
971
4,005
4,214
4,372
4,531
1133,015
;
141.786
il56)346
1163,683
589,351
623,368
640,748
652,827
!
I
!
!
:
43,304
50,384
53,223
56,398
154,666
105,411
170,738
175,813
rota!.
2.092.708
2!180)679
2;245,429
2) 295! 031
2,696
2,717
2,751
2,872
1.660
l)(>80; :
1,680
16R*)
20,687
23,964
27,672
33,208
1,970
1)994
2,044
2,107
1,058
1,070
1,114
1,141
1,72(5
1,813 ;
1)939 •
31,305 •
31,710
33,615
34,597
183,331 1119,608 200,542
1188.150 1124,602 206,142
j 193) 097 156,253 209,506
!2.1 J,769 139,904 216,814
101,577
108,797
116,666
119,936
:
i
!
!
'
I
52 !
320 i
1,223
1,278
1,311
1,353
! 7,820
! 7,998
! 7,869
39 i 8,023
! 1,158
i 1)274
' 1,423
1,391
2,016
255,009 :
275,666
314,738 :.
295,496
4,365,555
4,559,873
4.705,783
4) 726) yfiri
1033
FEDERAL RESERVE BULLETIK.
OCTO.SEtt 1, 1 9 1 8 .
FEDERAL RESERVE NOTES.
Federal Reserve note account of each Federal Reserve Bank, at close of business on Fridays, Aug. 30 to Sept. 20, 1918.
[In thousands of dollars; i. e., 000 omitted.]
_Nov.delphia.
Fedora! Reserve notes received ;
!
from agent—not:
I
'<
Aug. 30
141,743 !
Sept. 6
1145,949 !
Sept. 13
149,073 !
Sept. 20
1149,365 i
;
Federal Reserve notes held bv !
bank:
i
I
Aug. 30
! 4,926 !
Sept.6
4,109 i
Sept. 13
4,785!
Sept. 20
! 3,789 •
Federal Reserve notes in actual j
j
circulation:
i
!
Aug. 30
1136,817 j
Sept.6
...14.1,840
Sept. 13
; 144,288
Sept. 20
j 145,576
Gold.clcposited with or to credit I
of Federal Reserve agent:
i
Aug. 30.
'• 59,953
Sept.6
i 59.705
Sept. 13
1 59,450
:
Sept. 20
59,242
Paper delivered to Federal Re- j
serve agent:
I
;
Aug. 30
iOO, 934
Sept. 6
'111,338
Sept. 13
i 113.324 I
Sept. 20
ill3;370 1
705,941
742,293
747,038
760,576
198,283
200,583
207,053
210,938
46,175
63,995
60,634
67,493
13,040
10,131
11,944
14,910
Cleve- Rich- :
land. mond.
Louis.
333,188 91,451
344,400 94,666
356,419 99,990
362,834 102,985
Minneapolis.
San i
"Fran- \
Cisco. .
Total.
City."
Dallas.
62,677 93,823
66,313 94,868
89,460 98,359
73,552 100,955
43,626
51,037
53,917
57,121
166.840
177', 391
186,940
186,756
2,218.938
2,319;772
2,388,845
2,440,194
216,232 96,889
222,656 103,164
228,786 104,631
235,104 110,499
68,245
76,452
87,1S4
95,509
4,573
6,486
4,181
8,498
2,900
3,149
2,106
3,215
18,382
16,103
18,871
15,029
8,533
6,961
7,124
5,691
738
903
1,688
1,285
5,826
4,368
5,509
5,569
322
653
694
723
12,174
11,977
16,620
10,943
126,230
139,093
143,434
151,163
659,766 185,243 205,591 92,316
678,298 190,452 212,398 96,678
686,399 95,109 219,108 .1.00,450
693,083 196,028 22!., 084 102,003
65,345
73,303
85,078
92,294
314,806
328,297
337,548
347,805
84,918
87,705
92,886
97,294
61,939
65,410
67,772
72,267
87,997
90,500
92,850
95,380
43,304
50,384
53,223
58,398
154,666
165,414
170,738
175,813
2,092,708
2,380.679
2,245;429
2,295,081
39,091
41,439
43,439
45,369
21,769
25,480
31,173
40,518
168,013
179.225
191,244
197,659
51,719
5.1,720
58,668
56', 668
22,751 52.643
22,737 57; 6-13
25,604 57,562
27,516 j 57,562
13,882
14,348
24,319
24,319
86,936
91.9.27
91', 736
95,052
1,061,597
1,08?; 7G0
1,123,132
1,145,950
46,888
51,333
56, 090
SI, 105
229,256
280,908
280,254
255,720
48,317
48,385
54,853
62,138
54,202
57,434
88,867
04,490
43,050
46,126
46,993
52,284
81.447
92;950
93,411
99,441
1,613,814
1,719,854
1,797,546
1,864,987
112,195
111,795
110.466
111,111
297,613
297,165
297,165
286,910
10,641
10,258
9,678
14,020
135,052
134,576
134.306
144,024
•
!
683,514 89,145 115,581 1 62,409
704,861 98,538 124,574 j 66,014
744,881 102,022 122,146 1 69.720
789,365 104,0(11 ! 119,385 69! 306
i
1
59,07.1
57,473
65,199
71,322
1034
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Aug. 30 to Sept. 20, 1918.
[In thousands of dollars; i. e., 000 omitted.]
!
San
St. ; Minne- Kansas
Louis. ! apolis. City. Dallas. Francisco.
Atlanta.
i Cleve- I Richi land, j mond.
New
Boston. York.
Total.
FEDERAL EESERVE NOTES. '
Received from Comptroller:
|
Aug. 30
1195,940 1,061,880
Sept. 6
1198,140 1,078,080
Sept. 13
j205,540 11,093,080
Sept. 20
210.300 jl, 108,280
Returned to Comptroller:
243,139
Aug. 30
37,597
Sept. 6
38,391 243,587
251,047
Sept. 13
39,267
255,904
Sept. 20
39,975
Chargeable to Federal Reserve
agent:
j
821,741
Aug. 30
,158,343
834,493
Sept. 6
1159,749
842,033
Sept. 13
166,273
852.376
Sept. 20
170,323
In hands of Federal Reserve
agent:
g
16,600
A
115,800
Aug.
30
p. 6
13,800
92,200
Sept.
i 17,200
95,000
S ep t.
t 13
91,800
Sept. 20
! 20,960
Issued to Federal Reserve
Bank, less amount returned j
to Federal Reserve agent for j
redemption:
:
Aug? 30
il41,743
705,941
Sept. 6
J145,949
742,293
;
747,038
Sept. 13
149,073
S e pt. 20
149,365. 760,576
Collateral held as security for !
outstanding notes:
J
Gold coin and certificates j
on hand—
i
Aug.30
j 5.000
163,710
Sept. 6
' 5', 000
163,740
Sept. 13
i 5,000
163,740
Sept. 20
1 5,000
163,740
In gold redemption fund— j
Aug.30
| 7,453
13,873
Sept.6
! 7,205
13,425
Sept. 13
i 8,450
13,425
Sept. 20
i 8.242
13,170
Gold settlement fund, Fed- i
oral Reserve Board—
i
120,000
Aug.30
i 47,500
120,000
Sept. 6
i 47,500
120,000
Sept. 13
i 46,000
110,000
Sept. 20
! 46,000
Eligible paper
(minimum j
l
required) —
I
40S, 328
Aug.30
i 81,790
Sept. 6
i 86,244
445,128
449,868
Sept. 13
i 89,623
Sept. 20
! 90.123
473,666
250,240
251,940
263,540
267,780
1258,740
|261,220
1269.840
1
27i. 0-10
45,837 I 22,568
46,237 j 23,044
47,567 23.314
47,922 i 23,596
204.403
205' 703
215,973
219,858
6.120
5,120
8,920
8.920
1236,172
'238,176
'246,526
1247,444
402,420
414,740
423,680
138,440
28,331 21,865
28,656 ! 22.203
28,989 I 22,411
29,541 j 22,566
27.892
28,620
29,361
30,346
117,880 i 84.080 121,700
122,500 : 84)080 123,700
124,900 ! 90,080 125,700
127,800 j 93.080 ! 129.700
71,420
74,340
82,640
86,860
180,200 2,995,480
190,760 3,057,280
200,500 3,153,080
200,500 3,229,400
20,629
21,274
21,770
22,415
!
i
l
!
16.083
16)097
16,310
16.398
,
!
!
i
20,857
21,112
21,321
21,425
17,874
17,978
18,153
18,294
13,360
13.369
13)560
13.744
516,032
520,568
533,070
542.126
103,789 ! 93.995 1374,528 97,251
108,264 98; 657 1386,120 101,226
112,131 i 110.049 394,319 103,130
117,739 i 125)774 1108,094 105,385
I
i
!
i
i
67,997
67,983
73,770
76,682
• 100,843
,102,588
,104,379
108,275
!
53,546
56,362
64,487
68,560
166,840
177,391
186,940
186,756
2,479,448
2,536,712
2,620,010
2,687,274
! 5,320 j 7,020
: 1,670 ! 7,720
. 4,310 ! 6,020
i 3,130 i 7,320
i
|
9,920
5,325
10,570
11,445
19.940 6,900
15,520 5,100
17,740 j 7,500
12.340 7,240
216,232
200,583 222,650
207,053 228,786
210,938 235,104
!
115,860
!l20,860
! 132,460
'148,340
1132,120
J136.920
1141,120
i 147,280
96,889
103,164
104,631
110,499
25,750
22,205
22,865
30,265
41,340
41,720
37,900
45,260
5.800
6)560
3,140
2.400
68,245
76,452
87,184
95,509
333,188
344,400
350,419
362,834
91,451
94,666
99,990
102,985
i
62,677 93,823
66.313 94,868
69)460 98,359
73,552 100,955
i
!
I
|
43,626
51,037
53,917
57.121
260,510
216,940
231,165
241,080
166,840
177,391
186,940
186,756
2,218,938
2,319,772
2,388,845
2,446,194
I
2,504
2,504
2,504
2,504
23,812
2-3,813
21,813
21,813
9,996
9,874
10,874
10,874
11,240
10.763
12,493
12,211
1,591
1,439
1,439
1,369
102,199
101,921
99,592
100,237
100,000
100.000
100,000
110,000
37,500
40.000
42)000
44,000
i
i
i
|
13,102
13,102
13,102
13,102
2,589
2,589 i
3,037 i
3,037
219,239
219,240
217,240
217,240
2,283
2,283
2,202
2,202
2,097
2,583
2,754
3,054
17,820
20,870
26,770
35,270
167,956 j 49,130! 8,300 50,360
'178,863 j 49,131 8,300 55,360
190,766 53,631 i 11,300 55,360
1195,419 53,631 13,300 55,360
684
684
10,484
10.184
79,201
84,201
84,201
84,701
S6,088 81,180 J 57,798 46,476
88,788 ! 88,080 ; 61,72550,972
96,587 94,480 ! 61,192 56,011
I ""
99)827
—- 9 1 0 8 0 j 05,130 54,991
165,175 I 39,732 : 39.926 41, ISO
165,175 42,916 i 43,576 37,225
165,175 43,322 . 43,856 40,797
:165,175 46.317 ! 46,036 43,393
29,764
36,689
29,598
32,802
79,904
85,464
95,204
91,704
1,445 .
57
2,106 i 362
1,899 i 478
2,744 i 2.240
1.349
1)335
1,202
1,114
11,081
11,081
11,081
11,081
i For actual amounts see item "Paper delivered to Federal Reserve agents," on p. 1033.
7,735 |
7.726 •
7.535
10,351
61,708
61.690
65,788
70,60S
780,650
806,830
840,104
858,102
!
|
!
]
1,157,341
1,232,012
1,265,713
1,300,244
FEDEEAL BESEEVE BULLETIN.
OCTOBER 1,1918.
1035
MEMBER BANK CONDITION STATEMENT.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as ai dose of
business on Fridays, from Aug. 23 to Sept. 13, 1918.
I. TOTAL FOR ALL REPORTING BANKS.
[In thousands of dollars; i. e., 000 omitted.]
Boston.1
Pliiladelpiiia.
New
York.
Number of reporting banks:
102
50 =
85 .
77
45 ;
Aug. 23
42 !
102 :
50 i
85 !
77 !
45 :;
Aug. 30
j
42 i
49 i
85 i
77 |
45
102 i
Sept. 6
1
42 i
51
i
85
i
77
i
45 !
102
i
Sept. 13
'
42 !
United States bonds to se- j
|:
cure circulation:
i
267.879
Aug. 23
i 14,371 i 50,154 12,770 ! 42,131 :'' 24,521 " 15,465 : 18,822 ! 17,070
207,539
Aug. 30
i 14,361 : 50,172 12,770 : 42,209 ! 24,331 ' 15,667 \ 18,408 j 17,408
266,599
Sept. 6
1 14,352 | 50,222 11,492 ' 42,410 24,251 \ 15,465 i 18,407 .' 17,414
Sept. 13
• 14,352 \ 50,503 11,492 ' 42,410 ! 24,251 . 15,465 i 18461 ! 17676
267,331
Other 'Urnted States bonds, j
including Liberty bonds:
30,292 • 23,051 ! 65,011 i 18,049
526,864
Aug. 23
12,405 226,264 ! 29,118 ' 52,219 !
I 22,304 ! 56,368 I 16.090
!
514,979
Aug. 30
12,092 234,009 | 28,277 i 47,996 28,301
27,944 i 22,548 i 53,904 ! 14;740
496,028
Sept. 6
11,802 220,250 | 28,749 ' 50,111 |
i 21,427 ; 49,570 i 14,470
i
480,166
Sept. 13
11,881 217,911 : 20,742 : 46,077 27,592
United States certificates of
!
indebtedness:
1
:
51,271 I 481,062 50,030 70,539 26,900 ! 27,197 j 107,769 ! 28,973 18,547 I 31,449 ! 14,512 51,055 I 959,304
Aug. 23.
Aug. 30
i 49,084• ! 460.753 ! 48,457 i 70,573 27,658 i 27,222 j 106,734 I 27,666 18,412 I 30,547 I 14,428 ! 49,580 ! 931,114
88,369 32,584 ! 34,051 ! 134,402 j 35,168 21,617 38,244 ! 16,435 ! 62,2631,203,503
j ( 2i\. j 61,387
Sept. 6
| 75,262
Sept. 13
71,973 j 581,591 | 59,442 ! 87,411 33,884 j 33,980 j 132,411 ; 35.117 21,567 I 38,656 j 16,925 ! 63,773 1,176,730
Total United States securities
j
owned:
\
:
Aug. 23
1 78,047 i 757,480 j 91,918 1164,889 j 81,713 j 65,713 I 191,602 !i 64,092 37,287 j 61,445 ! 47,415 112,446 1,754,047
Aug. 30
! 75,537 744,934 j 89,504 ,160,778 i 80,290 '• 65,193 I181,510 61",164 36,171 ! 59,813 j 47,045 111,693 1,713,632
Sept.6
1101,476 874,193 1101,628 j 180,890 | 84,779 ! 72,064206,833 i 67,322 38,518 I 65,793 j 49,537 1123,097 1,966,130
Sept. 13
j 98,206 850,005 97,676 !l75,898 j 85,727 i 70,872 200,442 ! 67,263 38,299 ! 65,699 J 49,650 1124,490 1,924,227
Loans secured by United :
States bonds and certifl- !
cates:
i
• ,20,745 i 683 ! 61,854 i 13,182 i 10,389 4,326
,9
Aug. 23
i 39,891 219,889 44,040 ! 36,955
5,325 ! 9,233 i |473,512
245 I 35,844 I 20,632 j , 802 ; 59,017 ;13,089 ! 11,442
Aug. 30
i 40,000 204,924
4,326
455,031
5,144 ! 8,656 i
153 i 36,601 i 19,848 i 9, 067 ! 60,899 I 14,778 l 12,221
212,860
Sept.6
i 40,029
4,396
470,074
5,204 "' 9,018 i
473 i 36,707 ! 19,717 I 9, 182
62,748 i 14,904 ;11,821 4,656
Sept. 13
| 39,164 214,312
£473,136
5,057 j 8,395 i
O thcr loans and investments: I
474 1982,160 "366,922 1288. 476 !l,434,308 :383,598 |267,876 i465,081 1178,273 '532,933 110,657,692
Aug. 23
;770,650 4,379,941
Aug. 30
1766,717 14,361,771 '609, 794 ;977,656 :357,86G =289'. 746 11,421.425 '378,5-12 275,535 '461,626 il78,062 :537,125 '10,615,868
1373,094
289;; 335 !l, 414', 872 !372,893 :280,687 '466,250 178,210 '540,763 10,563,004
,
,
Sept.6
762,252 ;4,303,899 1606, 284 1974,465
536 1974585
366419 '298,962
'298
1974,585 ,366,419
11,434,523 '375,439 '286,033 ;467,347 .180,130 ;542; 5oo -.10,601,088
Sept. 13
",748,121 14,318,438
Total loans and investments: i
Aug. 23
1888,588 5,357,310 1743,432 11,184,004i469,380 j361,872 jl, 687,764 j460,872 1315,552 :530,852 J23l,013 !ti54,612 il2,S85,251
Aug. 30
'"882,254 ."5,311,629 1743,543 ; 1,174,278 458,791 .362,741 11,661,952 ,452,795 ,323,148 !525,675 230,251 '657,474 12,784,531
Sept. 6
|903,757 15,390,952 •'753,065 '1,191,956 477,721 '370,466 11,682,604 :454,993 331,426 1536,439 1232,951 :(>72,878 12,999,208
Sept. 13
885,491 15,380,755 1754,685 'l,187.190!47i,863 |379,016 11,697,713 1457.606 !336,153 1537,702 1234,837 J675.440 '32,998,451
Reserve with Federal Reserve Banks:
i
Aug. 23
1 64,145 613,978 i 52,892 80,030 30,727 27,410 ! 138,724 35,510 i 18,107 ; 44,839 j 14,771 ; 44,610 : 1,165,743
55,311 ! 86,500 i 30,275 i 26,528 j 143,442 34,598 i 17,475 ! 48,830 j 14,834 ! 45,815 ' 1,232,163
Aug. 30
| 64,742 663,815 |55,311
8
59447 i 83,182
, 31,033
31,779 | 130,857 32,701 I 17,720 40,075 15,130 ! 44,393 i 1,192,072
31033 i 31779
Sept.6
j 63,782 635,973 !59,447
57,869
! 84,334 ! 29,785 •: 25.040 j 143,144 34,746 ' 19.189 45,293 16,017 i 43,059 1.166,565
601,047
Sept. 13
| 67,036
Cash in vault:
j
119,679
224 29,440 ; 15,998": 13,955 53,344 11,897 : 8,121 15,377 10,601 , 19,881
342,893
Aug. 23
j 24,376
: 16,651 j 13,472 68,761 11,569 ; 7,674 15,567 11,303 ! 19,836 I 351,236
617 ,29,720
,
Aug. 30
! 22,930 115.336
118',
048
••
1
4
,
8
8
6
365
i
"
34,137
'
"
"
"
'
1
6
6
1
0
•
•
~
~
55,650
9,026
12,989
:
12,002
!
19,730
i
352,806
15,443
Sept. 6
! 24,920
122,640
638 i 28.828 17,214 i 14,190
59,402 11,340 j 7.945 17,631 11,772 i 22,110 ; 354.907
Sept.13
j 21)897
Net demand deposits on j
which reserve is computed:
137.921 389,194 i 9,110,457
Aug. 23
644,017 4,297,813 '579, 239 |720,989 J295,68S i205,328 1,036,635 i271,379
138,571 1383,440 i 9.230,897
Aug. 30
654,927 4,352,751 1584, 633 733,552 313,736 |206,894 1,052,463 !267,883
597,785
1715;
207
'298',
445
!206j289
1,032,977
4,428,862
,
,
1263,568
[160,434
1384,509
142,762 1394,372 ! 9'. 290.965
Sept.6
1659.755
Sept. 13
i674^935 4,470,056 1611,573 1721,956 304,779 i'210,609 1,070,113 !266,922 ,179; 787 |388,244 148,070 404,488 | 9'. 451'.532
Time deposits:
I
359,965 ! 75,575 45,367 63,738 24.579 116,090 I 1,445,282
Aug. 23
i 96,953 269,825 14,261 1235,258 53,389 j 90,282
269,982 14,311 1236,001 52,144 91,444
357,189 j 76,028 I 45,403 67,279 25;615 116,742 • 1,450,020
Aug. 30
! 97,882
358,441 | 73,995 ! 45,439 73,846 25,324 121.027 i 1,461.373
Sept.6
! 97,273 271,167 13,930 1236,390 52,524. 92,017
269,325
16.521
1236,774
52,969
368,526
i 73,744 I 45,225 62,746 25,139 122'. 187 ! 1.462; 136
91,849
Sept. 13
i 97,131
Total net deposits on which I
reserve is computed:
i
Aug. 23
i682,072 14,367,670 1584,354 794,748 314,070 1232,879 1,135,958 1291,075 (175,212 1392,552 1146,012 1424,021 j 9.540,621
Aug. 30
1693,299 ,4,422,787 .589,768 1807,550 331,755 |234,790 1,151,183 1287,694 |174,227 1404,399 146,968 1418,463 j 9,062,883
•"'"* — 1789,315 316,611 1234,357 1,132,101 1282,841 182,854 1406,663 151,070 |430,680 9,726,380
Sept.6
,697,917 ,499,193 1602,778
Sept. 13
713,038 :, 539,966i J617,361 i'796,193 323,075 1238,621 1,171,608 1286,041 196,145 '407,068 156,331 '441,144 ! 9,886,591
i
i
:
;
!
m
1088
FEDERAL RESERVE
BULLETIN.
OCTOBEK 1, 1918.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close oj
business on Fridays, from Aug. 28 to Sept. 13, 1918—Continued,
1. TOTAL FOR ALL REPORTING
BANKS—Continued.
[In thousands of dollars; i. c , 000 omitted.]
Boston.'
—
-
" •
" "
" "
—
GGV3i".nrnorit deposits:
A ug. 23
j^ug 30
•" ~
68,230
46,963
56,215
39,510
Sept. 6
Sept. 13
Ratio of combined reserve
and cash to total net deposits—Der cent:
Aug. 23
A -Lm' *5o
S'r-r>r i';
York.
Philadelphia.
Cleve- Richland. mond.
45,656
32,066
35,371
22,795
61 615
39?
61, 794
53, 132
Atlanta.
|
St. j Minne- Kansas
Louis. j apoiis. City. Dallas.
Chicago.
i
|
T
i 365, 040
: 'J57j
! 285, 100
j 221, 657
19,040
14.426
17; 155
10,337
17,700
]3,822
15.894
10,369
25,393
15,761
16,801
14,188
82, 380
57, 913
55, 025
37, 542
!
i
!
j
28,825
26.045
29,704
8,970
29,222
21,678
23,162
18,276
10, 525
i
653
555
230
San
Francisco.
Total.
12,153
12,139
12,009
29
765,773
547,910
615,785
441,035
i
|
i
1
14.6
15 5
14.9
14. 7
|
. .
i
I
!
2. MEMBER BANKS IN CENTRAL RESERVE
CITIES.
CENTRAL SESEJIVE CITIES. ;
Number of report!r.g baiVks: i
Aug. 2 3 . . :
'
'
!
Aug. 30
.
Sept. 6
!.
Sept. 13
j.
United States bonds to so- j
cure circulation:
•
Aug. 23.
!
Aug. 30
L
Sept. 6
Sept. 13.
i
Other United States bonds, |
including Liberty bonds: i
Aug. 23
Aulr. 30
1
Sci) t. (>
!
Sept. 13
1
¥nited Slates certificates of
indebtedness:
Aug. 23
i
Aug. 30
J
Seat. 6
!
Scp t. 13
j
Total United States securi- i
ties owned:
i
Aug. 23
i
Aug. 30
SoDt. 6
Sept. 13....
.
Loans secured by United
States bonds and cortificates:
I
A u g . 23
'•
Aug. 30
;
Sept. 6
1
Sept. 13
!
Ottior loans and irivastments: i
Aug. 23
!
Aug. 30
;
Sept. 6
i
Sept. 13
i
Total loans and in vestments: i
Aug. 23
<\.ug. 30
Sept. 6
!
Sept. 13.
Reserve with Federal lieserve Banks:
Aug. 23
Aug. 30
!
Sept. 6
j
Sept. 13
I
Cash in vault:
j
Aug. 23
,
Aug. 30
•
3ept. G
i
>t
Sept.
fe
fe
!
123
123
123
124
36,260
36,278
1,132,
), 970
1,132
10,308
,132 10,314
1,132
10,576
36,328
36,609
i
j
!
|
j
j
i
i
j
i
j
|
47,362
47,718
47,774
48,317
203,985
212,406
199,445
197,773
28,842
23,770
21,200
20,551
11,998
10,280
9,073
8,706
244,825
246,456
229.718
227'. 030
456,880
436,929
574,985
553,266
56,654
55,463
71,084
70,933
21,410
20,642
26,805
26,954
531,914
513,034
672,874
651,153
697,125
685,613
810,758
| 787,648
;
|
I
86,628
80,365
93,416
92,616
43,378 I.
41,230 .
46,192 |.
46,236 j.
827,131
807,208
950,366
926,500
!
!
i
!
!
198,817
184,052
193,479
195,468
'4,035,712
i4,016,821
3,956,509
..iS, 970,040
i
,4,931,654
!4,886,486
:4, 960,746 :
14,953/156 i
:
'
!
:
!
!
588,019
i 638,007
611,230 !
!
572,886 •
!
'•
I 106,993
i 103,379
-!1 104,982
" ""' ;
! 109,364
!
! 9,761
i 9,986
I 11,827
j 11,915
i*
i
i
!
875,537
863,431
856,753
875,626
1280,619 =
j275,745
270,117 I
272,583
' 5,191,868
i 5,155,997
i 5,033,379
| 5,118,249
i 333,758
1328,961
,328,136
[330,734
\ 6,271,989
j 6,199,313
i 6,282,871
! 6,297,009
,006,577
985,866
993,989
1,013,119
'
i
i
i
i
i
:
;
44,412
42,070
43,820
44,877
j
!
96,914 27,553
99,896 27,083
93,438 25,618
100,321
31,664
32,330
32,467
35,407 !
5,960
5,774
6,045
5,735
252,990
236,108
249,126
252,260
712,488
764,986
730,286
700,169
144,617
141,483
143,494
150,566
1037
FEDERAL RESERVE BULLETIN.
OCTOBER 1,1918.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, from Aug. 23 to Sept. 13,1918—Continued.
2. MEMBER BANKS IN CENTRAL RESERVE CITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
I Boston.
Net demand deposits on
which reserve is computed:
Aug. 23
Aug.30
Sept. 6
Sept. 13
Time deposits:
Aug. 23
Aug.30
Sept. 6
Sept. 13
Total not deposits on which
reserve is computed:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Government deposits:
Aug. 23...T.
Aug. 30
Sept. 6
Sept. 13
Ratio of combined reserve
and cash to total net deposits—percent:
Aug. ~~
Aug. 30
Sept. 6
Sept. 13
New
York.
•
3,992,146
14,050,583
!4,127,044
4,156,256
!
i
•
;
':
•'
'
'
:
:
218,515
i 217,843 !
' 218,277
! 216,921 "
,
•
'
•
14,042,573
14,100,854 '
'4,177,416 I
.14,206,315 j .
:
;
!
;
!
:
'
!
..J
i
;
i
!
i
:
:
:
-
i
I
!
I
I!
j
:
,
•
:
•
•
'
j
'
!
698,684
704,313
683,066
714,405
198,984
195,806 |.
189,347 |.
192,428 j.
133,324
129,975
129,617
139073
139,073
53,705 !.
i 54,097
, |
:53082
53,082
| 54144
54,144 j
729,451
, 7
734,307
712,978
746,499
211,377 !
, , 9 !
;208,290
201,597 j
1204,923 •
889,814
.'
16.5
17.1 :
16.9
17.6
15.9
17.1
16.1
15,5
I
950,702
I 4,951
!
:::::r:::|:::::::j:::::::r
:
'•
,
I
;
i
'
j
999,457
0
405,544
401,915
400,976
410,138
! 4,983,401
5,043,451
: 5,091,991
5,157,737
!
51,124 j 20,531 i
37,739 i 12,°™
_ , — ]. 13,751! i
24,828 11,887
336,569 !.
237,075 !.
262,608 !.
203,208 i.
|
1
!
Total.
[
'••
"
=
:
San
St.
Minne- j Kansas Dallas. FranChicago. Louis.
apolis.; City.
cisco.
Rich- ! Atmond. I lanta.
phia. I land.
:
408,224
287,713
310,291
239,923
14.5 i
14.8 !
14.7 !
15.1 !
15.9
17.0
16.2
15.8
3. MEMBER BANKS IN OTHER RESERVE CITIES.
OTHER RESERVE CITIES.
Number of reporting banks:
Aug. 23
Aug.30
Sept. 6
Sept. 13
United States bonds to secure
circulation:
Aug. 23
Aug.30
Sept. 6
Sept. 13
Other "United States bonds,
including Liberty bonds:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
United States certificates of
indebtedness:
Aug. 23
Aug.30
Sept. G
Sept. 13
Total United States securities owned:
Auer.23
Aug.30
Sept. 6
Sept. 13
Loans secured by United
States bonds and certificates:
Aug. 23
Aug. 30
Sept. 6
Sept, 13
O ther loan s and investments:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
j
I
I
!
1 "
|
i
!
|
i
19i
191
19|
19
!
4,287j
4,287
4,278i
1 4,278;
j
j
6,979|1
6,669,
! 6,4561
6,532i
i!
7,796
7,796
7,796
7,796
oil
51!
52!
45!
451
45!
61!
61
611
446
446
447
449
35;
35
35
35
38
61 i
45j
39
52 i
8,765
8,765
7,487
7,487
34,477)
34,555'
34,555!
34,555'
14,147|
13,957;
13,9571
13,957|
13,465
13,667
13,465
13,465
16,940i
16,526!
16,585:
16,579;
5,330
5,330
5,330
5,330
3,440
3,440
3,440
3,440
23,976 45,528; 19,1361 22,319
23,196 41,4101 17,7531 21.735
23,797 43,785! 17,527! 21J982
22,523 40,275: 17,545 20,919!
34,592!
30,985!
31,202;
27,468!
4,198
4,052
3,911
4,239
34,505
34,505
34,505
34,480
172,400
171,714
170,584
170,773
10,307
9,428
8,584
8,401
16,224 12,477 26,886
15,556 11,911 27,608
13,839 12,154 26,329
13,113 11,784 26,237
230,352
217,871
216,378
205,803
13,772
13,710
13,710
13,930
15,476i
15,1761
15,476'
15,476
!
7,730
7,568
6,812
6,767|
35,576!
33,759:
54,256:
52,170:
10,951!
11.276J
12,884)
12,367
41,544.
40,141
51,410
49,424
63,994;
64,077^
79,881,
78,763
20,559
21,041
25,058
26,108
26,431
26,44i;
33,130]
33,099
49,861i
49,997:
61,798!
59,938:
5,244
5,165
6,491
6,216
11,537
11,377
12,000
11,991
31,449
30,547
38,244
38,656
12,814
12,750
14,637
15,137
51,055
49,580
62,263
63,773
361,015
356,151
452,052
447,642
46,842
44,715;!
64,990
62,980!:
26,477;
26,640
27,492
26,930
74,285 143,!
72,102' 140,042
82,694; 158,221
79,434 153,593
53,842
52,751
56,542
57,610
62,215
61,843
68,577
67,483
101,393::
97,508
109,585:
103,985!
14,772
14,547
15; 732
15,785
25,284
24,245
24,024
23,832
61,445.
59,813
65,793!j
65,699
40,787
39,837
42,267
42,397
112,446!
111,693
123,097'
124,490:
763,767
745,736
839,014
824,218
10,510:
10,400::
9,031
8,789:
42,269.
42,492
43,380!
44,689
17,453
17,441
17,002
16,887
7,620l
7,723
8,998
9,115
16,876;
16,375!
16,490;
17; 304:
2,255
2,416
2,253
2,264
9,987
11,099
11,838
11,510
4,326! 4,709
4,236. 4,505
4,396 4,581
4,656! 4,443
9,233j
8,656
9,018!
8,395!
193,043
192,125
194,503
195,408
256,381
246,589
262,845
258,672
276,034
277,588
277.196
286; 820)
548,014;
547,419!
547,755
548,200:
81,346 204,976 465,081! 149,04
80,163 212,508 461,626; 149,115
80,032; 217,449 466,250; 148,584
79,906! 221,156 467.347 149,350
532,933;
537,125!
540,7631
542,555!
4,649,912
4,633,684
4,649,136
4,666,101
:
i
31,901:
32,0111
31,915:
31,708j
;
546,906!!
542,897 :
536,851
533,411i
144,055:
144.404
144; 128;
145,801;
35,904!
34,7711
35,541 i
35,648
545,585: 899,554
540,974. 893,276
537,622; 889,661
542,237 890,646
1038
Principal
OCTOBER 1, 1918.
FEDERAL RESERVE BULLETIN.
resources and liabilities of member banks located in central reserve, reserve, and other; selected cities, as at close of
business on Fridays, from Aug. 23 to Sept. 13, 1918—Continued.
3. MEMBER BANKS IN OTHER RFSERVE CITIES—Continued.
[In thousands of dollars: i. e., 000 omitted.]
Boston.!
Total loans and investments:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Reserve with Federal Reserve Banks:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Cash in vault:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Net demand deposits on
which reserve is computed:
Aug. 23
Aug. 30
Sept. 6
Sept.13
Time deposits:
Aug. 23
Aug. 30
Sept. 6
Sept. 13
Total net deposits on which
reserve is computed:
Aug. 23
Aug. 30
Sept. 6
Sept.13
Government deposits:
Aug. 23
Aug. 30
Sept. 6
Sept.13
Ratio of combined reserve
and cash to total net deposits—percent:
Aug. 23
Aug.30
Sept. 6
Sept. 13
Sept. 20
Philadelphia.
New
York.
Atlanta.
St.
Louis
Minne- Kansas Dallas.
apolis. I City.
San
Francisco.
Total.
327,676
316,781
336,449
333,169
345,869j
347,154
354,771
363,418|
661,302
673,830
98,373
97,126
98,017
97,955
240,247!
247,852!
253,311i
256,498]
530,852
525,675
536,439
537,702
194,523
193,457
195,432
196,190
654,612i
657,474!
672,878J
675,440
5,606,722
5,571,545
5,682,653
5,685,727
73,960
80,356
76,793
77,121
23,559
23,090
23,886
22,984
26,433;
25,620;
30,845!
24,1511
41,007
42,770
42,644
42,038
6,218
6,164
5,763
6,164
I
14,062i
13,258!
13,7311
14,985;
44,839
48,830
40,075
45,293
12,732
13,028
13,028
13,916
44,610
45,813!
44,393!
43,059!
397,828
413,929
408,319
407,841
16,650
15,053
16,129
15,853
24,756
24,861
28,836
24.072
11,092
11,960
11,692
12,012
13,290!
12,801i
14,180!
13,369|
21,230
36,114
22,824
23,657
4,715
4,492
5,061
3,991
5,106;
4,700i
5,967
5,144
15,377
15,567
15,443
17,631
10,055
10,736
10,336
19,881
19,836
19,730
22,410
161,858
175,543
172,235
166,777
509,116
513,383
526,079
538,764
652,053
664,055
645,919
650,754
212,611!
230.8651
214,186!
219,434
194,9441
196,804!
195,590!
199,541j
329,103i
339,613
341,194
347,131 j
55,751
55,711
56,474
57,043
112,645
113,370
121,156
131,953|
373,431
384,215
384,509
388,244
116,414|
117,5391
121,8291
125,850!
389,194
383,4401
394,372!
404,488
3,566,005
3,630,859
3,632,819
3,707,554
19,908i 7,759
20,067| 7,769
21,061! 7,599
20,283' 10,050
210,511
211,127
211,568
211,852
34,992
33,664
33,795
34,268
86,657
87,841
88,416
88,288
222,278!
222,838i
224,4221
225,059|
16,099
16,119
15,085
13,808
23,75o|
23,821j
23,752!
23,51"
63,738
67,279
73,846
62,746
19,001i
20,075J
19,797
19,547
116,090
116,742
121,027
122,187
847,976
855,168
867,798
859,020
395,787'
406,464]
408,520
414,649;
60,581i
60,547,
60,999!
61,185|
119,770
120,516!
128,282!
139,008;
392,552
404,399:
406,6631
407,068:
122,114!
123,562;
127,768j
131,714
424,021
418,463
430,680
441,144
3,820,398
3,887,410
3,893,158
3,965,260
9,574J 12,153
12,139
12,009
4,060!
29
309,796
227,584
267,397
172,785
662,1391,079,457
655,5681,068,089
663,6961,083,423
666,3601,079,887
625,649!
619,623!
633,756:
181,042
181,444
180,651
181,520
51,046:
51,985;
50,966!
52,008;
12,159
13,271
11,865
13,815
47,203
49,744
54,330
52,307
15,784:
15,175;
16,4561
13,062;
4,708
4,929
5,181
5,240
494,895
505,502
507,503
516,377
125,848
126,362
124,008i
127,975j
27,193
27,826
27,430
27,414
Clove- | Richland. | mond.
503,053
513,850
515,732
524,601
131,820'.
132,382;
130,326!
134,060;
511,444
515,714
528,359
541,779
715,206
727,393
709,389
714,310
53,388
36,574
44,927
31,391
13,078;
10,038!
9,870!
7,600l
40,869
28,714|
32,077
20,545
59,140
40,653
59,639
51,264
223,109! 220,941
240,964! 223,156
224,325! 222,115
229,715 226,027
14,433
11,270
13,651
8,472
30,851i
19,909,
20,872!
12,538:
17,572
13,727
15,829
10,244
4,152! 25,364! 2 9 /
2,457! 23,426! 21,678
2,680; 25,790! 23,162
6,280i 18,276
i
13.5
14.3
14.0
13.9
4. MEMBER BANKS OUTSIDE R E S E R V E CITIES.
COUNTRY BANKS.
I
Number of reporting banks: |
26
Aug.23
23
Aug. 30
26
23
26
Sept.6
23.|
Sept.13
26
United States bonds tosecure
circulation:
10,084 : 6,098
Aug. 23
10,074 ! 6,098
Aug.30
10,074 ! 6,098
Sapt.6
10,074 i 6,098
Sept. 13
Other United States bonds,
including Liberty bonds:
5,426
14,549
Aug. 23
5,423
14,035
Aug. 30
Sept.6
5,406
13,993
Sept. 13
5,349
13,371
United States certificates of
indebtedness:
Aug. 23
13,231
15,695
15,325 i 12,548
Aug. 30
Sept.6..
21,006 i 15,852
Sept. 13.
19,803 I 15.958
13
13
13
13
24
24
24
24
32
32
32
32
4,005
4,005
4,005
4,005
7,654
7,654
7,855
7,855
10,374
10,374
10,294
10,294
2,000
2,000
2,000
2,000
5,142
5,081
4,952
4,219
6,691
6,586
6,326
5,802
11,156
10,548
10,417
10,047
566
508
8,486
8,316
9,977
10,018
6,545
6,496
8,488
8,648
6,341
6,617
7,526
7,776
732
766
781
921
,
i
!
;
10
10
10
10
165
165
165
165
2,929
2,929
2,942
2,942
2,453
2,453
2,453
2,453
48,117
48,107
48,241
48,241
1,577 ,i
,853
1,613
,758
1,562 < ,756
1,551 !
,525
2,064
1,962
1,935
1,949
2,497
3,077
3,019
3,012
51,687
50,652
49,932
47,333
1,254
1,274
1,520
1,540
7,010
7,035
9,617
9,576
1,698 !
1,678
1,798
1,788
63,345
61,929
78,577
77,935
750 ! 1,770
750 ; 1,770
750 ! 1,770 !
750
1,770 i
2,319
1,859
1,872
1,947
OCTOIJEIi 1, 1918.
1039
FEDERAL KESEEVE BULLETIN.
Principal resources and liabilities of member banks located in central reserve, reserve, and other selected cities, as at close of
business on Fridays, from Aug. 23 to Sept. 13, 1918—Continued.
4. MEMBER BANKS OUTSIDE HESEHVE CITIES—Continued.
[In thousands of dollars; i. e., 000 omitted.]
Atlanta.
Boston.
Total United Statessecurities
owned:
Aug. 23
31.205
Aug. 30
30,822
Sept.6
36,486
Sept. 13
35,226
Loans secured by United
States bonds and certificates:
|
Aug.23
! 7,990
Aug.30
1 7,989
Sept.6
! 8,114
Sept. 13
i 7,456
Other loans and investments: :
Aug.23
;223,744
Aug.30
1223,820
Sept.6
1225,401
Sept. 13
i214,710
Total loans and investments: I
Aug. 23
!262,939
Aug.30
1262,631
Sept.6
|270,001
Sept. 13
257,392
Reserve with Federal Reserve Bank:
Aug.23
13,099
Aug.30...
I 12,757
Sept.6
1 12,816
Sept. 13
| 15,028
Cash in vault:
j
Aug.23
! 8,592
Aug.30
i 7,755
Sept.6
1 8,464
Sept. 13
8,835
Net demand deposits on
!
which reserve is computed:
I
Aug.23
149,122 !
Aug. 30
J149,425 !
Sept.6
!l52,252 i
Sept.13
~ ' "
•
158,558 |
Time deposits:
69,760 I
Aug.23
70,056 |
Aug.30
69,843 i
Sept.6
69,717
Sept. 13
Total net deposits on which
reserve is computed:
179,019
Aug.23
179,449
Aug.30
182,185
Sept. 6
188,437
Sept. 13
Government deposits:
14,842
Aug.23
10,389
Aug.30
1.1,288
Sept.6
8,119
Sept. 13
33,878 : 17,633 I 20,890 27,871
32,681 17,402 I 20,736 27,539
35,943 ! 18,934 | 22,66928,237
35,427 " 18,242 I 22,305 28,117
10,562 : 1,771
10,472 i 1,753
10,350 j 1,773
10,055 1,784
1,051
1,073
1,060
1,059
3,292
3,191
2,786
2,830
St.
Minne- Kansas Dallas.
Chicago. Louis.
apolis. City.
3,350 |
.3,487 j
63 j
79 i
69 !
67 ;
3,581
3,637
3,832
3,841
566
572
589
567
5,942 ! 12,003
5,387 I 11,926
5,398 : 14,494 1
5,24.2 ! 14,467
1,166
687
698
725
|
i
j
!
Total.
...j 0,648
7,208
7,270
7,253
402
343
383
311
163,149
KM), 688
176,750
173,509
616
639
623
614
27,479
26,798
26,445
25,468
j
110,541 12,442 !:
111,280 12,158 !
110,249 12,139
107,747 12,142
10,757 21.633 | 62,900
10,575 22.634 63,027
10,364 22,744 63,238
10,697 22,950 64,877
29,226
28,947 ::::::::!
29,626
30,780
244,614 81,293 104,547
243,699 87,975 106,189
249,555 89,369 108,533
246,079 88,325 107,303
141,704
142,010
141,272
138,694
16,003
15,587
15,695
15,598
14,904 28,741
14,784 28,708
14,785 28,840
15,105 28,917
75,305
75,296
78,115
79,655
36,490
36,794
37.519
38,647
200,174
200,546
203,262
200,597
! 61,889
j 68,820
; 68,662
68,299
82,606
84,380
84,804
83,939
815,912
826,187
830,489
816,738
.1 1,006,540
.1 1,013,673
.1 1,033,684
.! 1,015,715
I
13,800
12,537
12,878
14,346
5,689
5,567
5,117
5,562
6,070
6,144
6,389
7,213
7,168
7,185
7,147
6,801
977
908
934
895
776
775
785
1,739
1,351
1,320
1,620
4,045
4,217
3,989
4,204
2,039
1,806
2,102
2,101
55,429
53,248
53,467
58,555
7,978
6,828
7,885
8,036
3,574
3,564
3,236
3,785
4,684
4,859
5,301
4,756
4,906
4,691
4,918
5,202
665
671
706
821
450
317
359
278
1,222
1,303
1,883
1,614
3,015
2,974
3,059
2,801
1,332
1,248
1,266
1,436
36,418
34,210
37,077
37,564
179,819
175,806
177,810
185,825
70,123
71,250
71,706
72,809
68,930
69,497
69,288
71,202
! 10,384 !
J10,090 |
"
'
10,699
11,068
8,848
8,537
8,717
8,577
6,502
6,542
6,331
6,471
24,747
24,874
24,822
24,922
3,625
3,603
3,601
3,561
4,363
4,376
4,402
4,394
46,178 !
44,462 !
45,278 j
47,834 i
21,617 [
21,582 :i
21,687
21,707 i
! 21,507;
I 21,032
! 20,'
22,220
5,578
5,540
5,527
I 5,592!
654,638
649,336
658,689
680,889
31,402
32,072
31,829
32,121
83,077
82,871
84,259
85,345
18,397
18,480
18,729
18,701
193,277
189,551
191,451
199,591
72,910
74,054
74,419
75,582
79,542
80,157
79,926
81,883
90,961 11,938
90,791 11,634
92,286 12,242
93,360 12,594
10,718
10,412
10,603
10,460
19,117
18,857
20,245
19,933
23,898
23,406
i 23,302
24,617
736,822
732,022
741,231
763,594
15,393
9,939
12,622
10,849
4,787
3,352
3,294
2,250
2,475
1,739
2,155
1,868
128
95
65
125
405
265
221
176
710
405
370
215
4,607
3,156
3,504
1,865
I 5,77:
5,81
5,82
55,442 :
53,711 i
54,572 !
57,137
3,461
2,619
3,914 !;
2,690
!
I
951
654 I
664 j
170 ••
191,762
192,937
192,599
192,978
47,759
32,613
38,097
28,327
1040
FEDERAL BESERVE BULLETIN.
OCTOBER 1,1918.
EARNINGS ON INVESTMENTS OF FEDERAL RESERVE BANKS.
Average amount of earningg assets held
held,by
byeach
eachFederal
Federal Reserve
Reserve Bank
Bank during
during August,
August, 1918,
1918, earnings
earnings from each class of earning
assets, and annual rates of earnings on basis
of August, 1918, returns.
'JO//
Average balances for the month of the several classes of earning assets.
i
Bills dis• counted for
| members and
Federal .Reserve Banks.
Federal Reserve Bank.
Boston
New York....
Philadelphia..
Cleveland
Kichmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas Citv..
Dallas.../....
San Francisco.
§74,412,382
464,390,976
88,101,492
93,736,044
58,910,217
44,925,417
217,747,554
52,149,004
58,442,000
68,016,349
39,270,508
77,599,551
Total...
1,337,701,494
I
Federal Reserve
Bank.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas.........
San Francisco.
Total
Bills bought
in open market.
8271,688
1,640,915
316,526
352,422
225,679
163,840
800,116
193,717
233,798
287,940
156,510
299,973
4,943,124 |
Bills
bought
in open
market.
§78,768 !
418,111 j
41,849 :
80,130 !
22,190 !
11,797 i
45,045 ;
8,468 !
1,948
587 |
2,785 •
76,602 .
$2,356,195
8,319,634
2,562,608
4,615,932 i
2,743,652 j
1,681,247 .
6,620,650 i
1,753,110 :
1,575,000
10,149,224 i
5,105,913 :
4,682,283 j
217,108,523
52,165,448 !
327.415
Total.
38,273
$99,044,840
588,834,497
102,304,319
120,525,409
87,154,334
49,964,306
236,139,136
56,051,046
60,490,006
78,299,208
45,110,225
103,792,101
64,348
1,607,709,421
$26,075
Calculated annual rates of earnings from—
Total.
Bills discounted for
members
and
Federal
Reserve
Banks.
Bills
bought
in open
market.
United Municipal
States
securities. warrants.
149
S312,380
2,080,906
365,629
445,816
254,199
180,259
860,781
205,911
238,494
309,149
173,841
387,415
Per cent.
4.30
4.16
4.23
4.43
4.51
4.29
4.33
4.39
4.71
4.98
4.69
4.55
Per cent.
4.16
4.24
4.23
4.25
4.74
4.18
4.51
4.64
4.85
5.17
4.47
4.32
Per cent.
3.11
3.08
3.33
3.38
2.71
3.13
2.78
2.50
2.05
2.39
3.35
2.78
253
5,814,780
4.35
4.38
United
Municipal
States
securities. warrants.
86,216
21,776
7,254
13,264
6,330
4,473
15,620
3,726
2,748
20,662
14,546
10,840
Municipal
warrants.
$22,276,263 j
116,073,366 |
11,640,219 !
22,173,433 I
5,500,465
3,319,369
11,770,932
2,148,932
473,000
133,635
733,804
20,865,105
Earnings from—
Bills discounted for
members
and
Federal
Reserve
Banks.
united States
securities.
8104
2.87
Total.
Per cent.
4.71
"4." 59*
4.63
4.27
1041
FEDEBAL KESEBVE BULLETIN.
OCTOBBB 1 , 1 9 1 8 .
IMPORTS AND EXPORTS.
Gold imports and exports into and from the United States.
(Tn thousands of dollars; i. e., 000 omitted.]
Ten days
Eleven days
ending Aug. ending Aug.
20,1918.
31, 1918.
en
Total, Jan. 1
to Sept. 7,
1917.
i0??918. P '
IMPORTS.
Ore and base bullion
United States Mint or assay office bars
Bullion refined
United States coin
Foreign coin
Total
193
328
735
i70
187
225
9,734
6
38,078
6; 774
169
11 034
114
381 390
53,186
94,388
363
515
961
54,761
540,112
2
110
732
6,846
24,708
136
44,668
29 205
242,796
32,396
316,805
417
31
5,476
EXPORTS.
Domestic:
Ore and base bullion
United States Mint or assay office bars
Bullion refmed
Coin
Total
Foreign:
Bullion refined
Coin
Total
Total exports
.
....
a!
1,035
i, 299
30
1,02-1
1,067
1,338
1,056
81
3
81
3
1,148
1,341
1,056
417
5,507
32,813
322.312
Excess of gold imports over exports since Jan. 1,1918, $21,948,000; excess of gold imports over exports since Aug. 1,1914, $1,072,252,000.
Silver imports and exports into and from the United States.
[In thousands of dollars; i. e., 000 omitted.]
j Ten days | Eleven days j Ten (lavs j Total since
j ending
i ending
i ending
j
i Aug. 20,1918.! Aug. 31,1918.! Sept. 10,1918.! Jan. 1,1918.
•
Ore'and base bullion
United States Mint or assay office bars..
Bullion refined
United States coin
Foreign coin
'
I
1,502 |
38 I
54 ;
1,656 !
Total
2,357 |
2,576 !
27 j
59 i
27,550
50
18,823
748
3 ; 400
2,866 |
2,960 i
50,571
17,504 j
1,351 !
3I
12
21,702
123,425
2,588
18,127 ;
1,300 !
147,727
62 I
186
8
EXPORTS.
Domestic:
Ore and base bullion
United States Mint or assay office bais
Bullion refined
Coin
Total.
Foreign:
Bullion refined.
Coin
2S j
564 I
149 !
92 :
171
187
805 i
18,485
Total.
Total exports..
3,644
5,016
35S |
S, 660
!
156,387
Excess of silver exports over imports since Jan. 1, 1918, $105,816,000; excess of silver exports over imports since Aug. 1, 1914, .$204,G65,C<D0.
1042
FEDERAL RESERVE BULLETIN.
OCTOBER 1, 1918.
Estimated general stock of money, money held by the'Treasuryand by the Federal Reserve system, and all other money in the
' United States Sept. 1, 1918.
General stock
of money in
the United
States.
Gold coin =
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:
Sept. 1, 1918.
Aug. 1, 1918..
July 1, 191S..
Juriel, 1918..
May 1, 1918..
Apr. 1, 1918..
Mar. 1, 191"..
Feb. 1,1918..
Jan. 1, 1918..
Dec. 1, 1917..
Nov. 1, 1917..
Oct. 1, 1917..
Sept. 1, 1917..
Aug. 1, 1917..
July 1, 1017..
j S3,079,300,229
I
j
460,253,959
j
i
231,874,845
!
I
346,681,016
j 2,225,838,710
!
24,687,960
|
724,318,652
7,092, 955,371
6,895, 089,799
6,742, 225,784
6,615, 007,782
6,540, 954,630
6,480, 181,525
6,351, 548,056
6,271, 603,039
6,256, 198,271
6,026, 127,909
5,823, 854,335
5,642, 264,856
5,553, 661,154
5,513, 292,894
5, 480, 009,884
Held in the
by or for
United States Held
Federal ReTreasury as serve
Banks
assets of the
Government.1 and agents.
$261,241,260
81,421,604,718
483,171,590
34,242,617
"l6," 592," 279'
6,286,424
34,502,755
247,635
22,824,090
369,937,060
390,798,058
356,124,750
348,322,704
321,192,308
339,856,674
330,927,176
332,576,125
277,043,358 I
248,167,148 }
242,265,377 ;
242,469,027 i
239,654,267 ;
248,268,325 )
253,671,614 '
7,050,082
a
762,814
* 45,174,282
100,530,120
3,349,492
8,728,705
2,070,371,803
2,054,455,993
2,018,361,825
1,983,796,097
1,909,594,674
1,873,524,132
1,827,126,208
1,834,102,608
1,723,570,291
1,646,773,746
1,546,124,691
1,429,422,432
1,373,987,061
1,395,982,728
1,280,880,714
Held outside
the United
States Treasury and Federal Reserve
system.
Amount per
capita outside
the United
States Treasury and the
Federal Reservo system.
8436,720,562 '..
476,553,099 i.
79,480,196 •
337,646,831 !
220,519,752
1,834,233 i
295,220,310 !
2,090,805,835
21,090,833
692,765,857 ;
4,652,646,508
4,449,835,748
4,367,739,209
4,282,888,981
4,310,167,648
4,266,800,719
4,193,494,672
4,104,924,306
4,255,584,622
4,131,187,015
4,035,464,267
3,970,373,397
3,940,019,826
3,869,041,841
3,945,457,556
I
$43.S3
41.97
41.31
40.51
40.82
40.47
39.83
39.04
40.53
39.40
38.54
37.97
37.73
37.10
37.88
1
Includes reserve iunds against issues of CJnited States notes and Treasury notes of 1890 and redemption funds held against issues of national
bank notes, Federal Reserve notes and Federal Reserve Bank notes.
2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
3 Includes standard silver dollars.
* Includes Treasury notes of 1890.
OCTOBEIt 1, 1918.
1043
FEDERAL EESEEVE BULLETIN.
DISCOUNT KATES.
Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Sept. SO, 1918.
Maturities.
Trade acceptances.
Discounts.
Fedora! Reserve Bank.
Boston
New York i . . .
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis. - Kansas Cilv...
Dallas.....'....
San Francisco.
Within 15
days,
including
member
banks'
collateral
notes.
Secured by U. 8. certificates of indebtedness or Liberty loan
bonds.
16 to 60
days.
61 to 90
days.
Agricultural and
live-stock
paper
Within 15 i
over 90 days.includ.-j
da vs.
ing member! 16 to 90
banks'
days.
collateral
notes.
1 to 60
days,
inclusive.
61 to 90
days,
inclusive.
4
4
4
%\
'i
1
Hate of 3 to Q per cent for 1-day discounts in connection with the loan operations of the Government.
Kate for trade acceptances maturing within 15 days, 4£ per cent.
NOTE
CE 1.—Acceptances
1.—A
purchased in open market, minimum rate 4 per cent.
NOTE
PE 2.—Rates for commodity paper have been merged with those for comn
Lmercial paper of corresponding maturities,
H3 3.—In case the 60-day trade "acceptance
acceptance rate is higher
NOTE
1 igher than the 15-day discount rate, trade acceptances maturing within 15 days will be
taken at the lower rate.
NOTE 4.—Whenever application is made by member banks for renewal of 15-day paper, the Federal Reserve Banks may charge a rate not
exceeding that for 90-day pa~per of the same class.
2
INDEX.
Page.
Acceptance corporation, establishment of, for financing cotton
939
Acceptances:
Banks granted authority to accept up to 100 per
cent of capital and surplus
967
Distribution of, statement showing
1025
Amendments to Federal Reserve Act as passed by
Congress
947-950
American Bankers' Association:
Report of Committee of Five to consider check
clearing and collection charges
.. 962-964
Statement fey, relative to conditions of savings
banks in the United States
952-954
Assets and liabilities of leading central banks of
issue, 1914 and 1918
996
Bank clerks, status of, under draft law
957-961
British bank amalgamations, report of special committee on
954-957
British treasury bills, issuance of, in the United
States
:
940
Business conditions throughout the Federal Reserve
districts
979-995
Charters issued to national banks during the month. 967
Charts showing condition of Bank of England, Bank
of France, and German Reichsbank
999-1001
Check clearing and collection system:
Operation of
".
1021
Report of committee of American Bankers' Association relating to
962-964
Commercial failures reported
967
Comparative statement of leading banks of issue,
1914 and 1918
996
Conservation of credit:
Letter of .Liberty loan subcommittee relative to
restrictions on speculation
935
Letter of New York Federal Reserve Baiak relative to curtailment of loans
935
Letter of Utah banking commissioner relative t®
936
List of preferred industries issued by War Industries Board in connection with
931-934
Countries in which banks are authorized to draw
drafts for purpose of furnishing dollar exchange.. 938
Cuba, branch of National City Bank of New York
established in
938
Directors of Federal Reserve Banks, amendment to
act relating to election of
950
Discount and interest rates prevailing in various
cities
1016-1019
Discount operations of the Federal Reserve
Banks....'
1022-1029
Discount rates in effect
1043
Dollar exchange, list of countries in which banks are
authorized to draw drafts to furnish
938
Earnings on investments of Federal Reserve Banks. 1040
Federal Reserve Act, amendments to:
Relating to election of directors of Federal Reserve Banks
950
Text of, as passed by Congress
947-950
Federal Reserve agent's fund, transactions through. 1020
Federal Reserve note account of Federal Reserve
Banks and agents
1033-1034
Fiduciary powers granted to national banks
967
Foreign banking operations of the National City
Bank of New York
5)42-946
Foreign banks of issue, assets and liabilities, 1914
and 1918
996
Foreign banks, statements showing condition of
Bank of England, Bank of France, and German
Reichsbank
998
Foreign exchange, statement regarding, by Hon.
R. 0. Leffingwell before Ways and Means Committee
-V
940-942
Gold, imports and exports of
1041
Gold settlement fund, transactions t h r o u g h . . . .1019-1020
Index numbers of wholesale prices
1005-1015
Informal rulings of the Board:
Page.
Eligibility of farmer's notes given for purchase
of silos
971
Eligibility of chain of banks for membership. .
971
Trade acceptances
~
971
Custody of shipping documents or warehouse
receipts
971
Revenue stamps on drafts drawn to finance sales
of goods to Allied Purchasing Commission
972
Interest and discount rates prevailing in various
cities
1016-1019
International Banking Corporation, stock of purchased by National City Bank of New Yorkt...
937
Law department:
Rediscount of draft for railroad supplies
974
Trade acceptances as bills of exchange drawn
against actually existing values
974
Acceptance of drafts of Food Administration
Grain Corporation
976
Drafts growing out of transactions involving
the importation or exportation of goods. ..T 976
Rulings of Commissioner of Internal Revenue
as to stamp tax on trade acceptances and
promissory notes
977
Amendments to Georgia banking laws
978
Leffingwell, Hon. R. C , statement by, before
Ways and Means Committee regarding foreign
exchange
940-942
Liberty Bond Act, fourth, text of
961
Liberty bonds, list of lost and recovered
988-970
Liberty loan, fourth, announcement regarding
937
Meal tickets for use by drafted men en route to
camp, member banks requested to receive for
collection
93s
Member banks, statement showing condition of. 1035-1039
Money, stock of, in the United States
1042
National City Bank of New York:
Branch of, established in Cuba
938
Foreign banking operations of
942-947
Stock of International Banking Corporation
purchased by
937
Resources and liabilities of Federal Reserve
Bank
1030-1032
Review of the month:
Certificates of indebtedness
921
The fourth Liberty loan
921
Program of rationing
922
Conservation of credit
924
Loans on Government securities
925
The new revenue bill
926
New bond legislation
926
Growth of Federal Reserve notes
927
Operations of Federal Reserve Banks
928
Condition of member banks
<r.
929
Gold imports and exports
930
A new discount corporation
930
Amendments to Federal Reserve Act
930
Easing the currency movement
931
Meeting of the Advisory Council
931
Rulings of the Division of Foreign Exchange
973
Savings banks in the United States, statement by
American Bankers Association relative to condition of
952-954
Silver, imports and exports of
1041
State banks and trust companies:
Admitted to the system during the month
966
Statement showing number, resources, etc., of
banks admitted to system during 1918
964
Total bank transactions, reports of
1002-1004
Treasury certificates of indebtedness, new issues of.
951
Union Discount Corporation, organization of, for
financing cotton
939
War Finance Corporation, circular on cattle loan
agencies issued by
950.
War Industries Board, preference list of industries
and plants compiled by, in connection with conservation program
\'.
931-934
Wholesale prices, index numbers of
1005-1015
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@FedFRASER