Full text of Federal Reserve Bulletin : October 1919
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FEDERAL RESERVE BULLETIN ISSUED BY THE FEDERAL RESERVE BOARD AT WASHINGTON OCTOBER, 1919 WASHINGTON GOVERNMENT PRINTING OFFICE 1919 FEDERAL RESERVE BOARD. W. P. G. HARDING, Governor. EX OPFICIO MEMBERS. ALBERT STRAUSS, Vice Governor. CARTER GLASS, Secretary of the Treasury, Chairman. ADOLPH C. MILLER. JOHN SKELTON WILLIAMS, CHARLES S. HAMLIN. Comptroller of the Currency. HENRY A. MOEHLENFAH. GEORGE L. HARRISON, General Counsel. W. T. CHAPMAN, Secretary. R. G. EMERSON, Assistant Secretary. I ! W. M. IMLAY, Fiscal Agent. W. W. PADDOCK, Chief, Division of Operations and Examination. W. W. HOXTON, Executive Secretary. II. PARKER WILLIS, Director, Division of Analysis and Research. M. JACOBSON, Statistician. J. E. CRANE, Acting Director, Division of Foreign Exchange. OFFICERS OF FEDERAL RESERVE BANKS. Federal Reserve Bank of- Chairman. Deputy governor. Governor. Boston Frederic H. Ciirtiss... Chas. A. Mores.. New York. Pierre Jay Benj. Strong, jr. Philadelphia Cleveland R. L. Austin D.O.Wills E. P. Passmore. E. R. Fancher. Richmond Caldwell Hardy. George J. Seay. Atlanta Chicago • Joseph A. McCord. | Wm. A. Heath M. B. Wellborn.. J. B. McDougal.. St. Louis Minneapolis Kansas City Dallas ." San Francisco ! ! i ! • D. C. Biggs R. A. Young J. Z. Miller, j r . . . R. L. VanZandt. J. IT. Calkins 1 Wm. McC. Martin John H. Rich Asa E. Ramsay Wm. F. Ramsey John Perrin 2 Assistant to governor. Cashier. Chas. E. Spencer, j r . . C. C. Bullen R. H. Treman J. H. Case L. F. Sailer J. F. Curtis Wm. H. Hutt.. j r . M. J. Fleming 1 . Frank J. Zurlinden C. A. Peple R. II. Broaddus L. C. Adelson 0. R. McKay 1 B. G. McCloud 0. M. Attebery W. Willett. L. II. Hendricks. W. A. Dyer. H. G. Davis. Geo. H. Keesee. M. W. Bell. S. B. Cramer. J. W. White. S. S. Cook. C. A. Worthington .. J. W. Helm.2 Lynn P. Talley Lynn P. Talley. Wm. A. Day 3 Ira Clerk. Acting cashier. 1 3 Assistant deputy governor. MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS. Manager. Federal Reserve Bank of— New York: \ Buffalo branch ; Ray M. Gidney. Cleveland: Cincinnati branch Pittsburgh branch j L. W. Manning. ! Geo. De Camp. Richmond: Baltimore branch I Morton M. Prentis. Atlanta: New Orleans branch. Jacksonville branch. Birmingham branch. Marcus Walker. Geo. R. De Saussure. A. E. Walker. Chicago: Detroit branch R. B. Locke. Federal Reserve Bank of— Manager. St. Louis: Louisville branch... Memphis branch... Little Rock branch. W. P. Kincheloe. J. J. Heflin. A. F. Bailev. Kansas City: Omaha branch. Denver branch. 0. T. Eastman. 0. A. Brukhardt. Dallas: E3 Paso branch Houston branch San Francisco: Salt Lake City branch... Seattle branch Spokane branch Portland branch \ R. R. Gilbert, fSam R. Lawder. C. H. Stewart. C. J. Shepherd. C. A. McLean. C. L. Lamping. SUBSCRIPTION PRICE OF BULLETIN. The FEDERAL RESERVE BULLETIN IS distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the BULLETIN to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be'required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the BULLETIN supplied to their officers and directors may have it sent to not less than 10 names at a subscription price of $1 per annum. Xo complete sets of the BULLETIN for 1915, 1916, or 1917 are available. TABLE OF CONTENTS. Page, Review;of the month . 909 Business and financial conditions: Summary 921 Special reports by Federal Reserve agents. . . 927 Statement of the Secretary of the Treasury on the budget system -. 937 Course of the price of silver and currency conditions in India 945 Exports from the United States before and after the outbreak of the war 952 Official: Issues of Treasury certificates of indebtedness in pursuance of program outlined by the Secretary of the Treasury 958 Conversion of 4 per cent coupon Liberty bonds 958 Fiduciary powers granted to national banks 960 Banks granted authority to accept up to 100 per cent of capital and surplus 961 State banks and trust companies admitted to the system 961 Charters issued to national banks 961 Foreign branches of American banks 962 Rulings of the Federal Reserve Board. 963 Law department: Status of Federal banking legislation 965 Amendment to the Federal Reserve act 965 Status of antiproiiteering legislation 967 Amendment to Alabama banking laws 967 Sale of warehouse receipts representing whisky ~. 968 Miscellaneous: War securities and war paper held by banks on June 30, 1919 942 Discount rates of the Federal Reserve Banks during the war period 943 Commercial failures reported 960 Crop statistics, by Federal Reserve districts 962 Statistical: Wholesale prices in the United States 969 Discount and interest rates prevailing in various centers 972 Physical volume of trade 974 Debits to individual account, August-September.. 983 Discount and open-market operations of the Federal Reserve Banks 987 Operation of the Federal Reserve clearing system 992 Resources and liabilities of the Federal Reserve Banks 993 Federal Reserve note account.. 997 Condition of member banks in selected cities 999 Imports and exports of gold and silver 1005 Estimated stock of money in the United States 1006 Loans and discounts of State bank members 1007 Condition of foreign banks of issue, 1913-1919 1007 Discount rates approved by the Federal Reserve Board 1006 Diagrams: Note circulation, metallic and other reserves, also price of silver per ounce, in India, 1914-1919 951 Par point map 992 FEDERAL RESERVE BULLETIN VOL. 5 OCTOBER 1, 1919. REVIEW OF THE MONTH. Fiscal operations of the Government during September were unusually large Public finance and included issues on Septemin September. ber 2 of $573,841,500 of five months' 4-J per cent loan certificates and on September 15 of two series of tax certificates, of which one for six months, and bearing interest at the rate of 4-1- per cent, yielded $101,131,500, and the other, for 12 months, and bearing interest at the rate of 4-J- per cent, yielded $657,469,000. An analysis of the amounts taken in each Federal Reserve district of each of the three series is given in the following exhibit: Federal Reserve district. Series C-1020. Boston $45,76.5, 500 New York 252,079,000 Philadelphia.... 27,15"). 000 Cleveland 39,088; 500 Richmond 10,493,500 Atlanta 19,312,000 Chicago 03,193,500 St. Louis 17,975.500 Minneapolis 16,000,000 Kansas City 16,000,000 Dallas 23,179,000 San Francisco... 43,000,000 Total 573,841,500 Series T-9. Series T-10. All 3 series. 85,70-1,000 §31,752,000 25,582,500 412,319,000 5,503,000 54,580,500 8,7S8,000 53,802,000 2,999,500 10,339,500 3,706,000 5,6.18,000 24; 097,500 35,172,000 3,614,500 12.232,500 4,750,000 7,750,000 2,835,000 4,105,000 3,491,600 8.232,500 10,000,000 21; 500,000 10J,131,500 657,469,000 §83,221,500 690,580,500 87,304,500 101,678,500 23,832,50C 28,636,000 122,463,000 33,822,500 28,500,000 23,000,000 34,903,000 74,500,000 1,332,442,000 Redemptions of outstanding Treasury certificates were considerably larger and included: (1) The redemption on September 9 (when a 20 per cent installment on the Victory loan was due) of outstanding balances of the last two series of certificates issued in anticipation of the Victory loan and due Septembei 9 and October 7, respectively. (2) The redemption on September 15 (when the third installment of the income and war profit taxes was payable) of the outstanding balances of two series of tax certificates. No. 10 At the beginning of the month it was calculated that the aggregate amount of certificates maturing or called for redemption during the month was in the neighborhood of 1,800 millions, and that this amount, somewhat reduced by exchanges and cash redemptions, would be fully covered from the cash in bank and payments on account of Victory loan subscriptions, also income and profit taxes due on September 9 and 15, respectively. In his circular of September 8 the Secretary of the Treasury announced that there remained no other maturities of certificates to provide for prior to 1920? as the certificates maturing December 15, of which over 750 millions had been issued, were more than covered by the income and profit tax installment due on that date. The total amount of Treasury certificates outstanding at the end of September is slightly over 3.5 billions (as against 6.25 billions on April 30) of which only about 1.6 billions are loan certificates requiring to be refunded. In view of the success attaining the most recent tax-certificate issues, which realized 757.5 millions in the three days during which subscriptions were taken, and the very large cash balance of the Treasury, it is expected that no new certificate issues will have to be resorted to during the month of October. More than this, material improvement in the financial position of the Treasfor Outlook ury and the favorable condiliquidation. tions on which recent issues of loan certificates have been placed carry confirmation of the views expressed by the Secretary of the Treasury in his letter of July 25, and repeated in his letter of September 8, that the borrowing operations incident to the financ909 910 FEDERAL RESERVE BULLETIN". ing of the war would be carried to completion without another great funding loan, So far as such operations are concerned, they may be said to have come to a close with the Victory loan. Such financing as is still to be provided can clearly be carried through by issues maturing on tax dates. The outlook is distinctly encouraging, therefore, for an improvement in the investment status of the outstanding funded securities of the Government and, with it, for an improvement in the loan and investment accounts of the banks. The extent to which the banks of the country subscribed to war bonds of the different issues which they did not intend as a matter of policy to carry permanently as a part of their long-term investments, can not be accurately determined. Neither can the volume of loans made by the banks to customers on account of their subscriptions to Government war issues and still outstanding be accurately determimed. Details of an estimate made for this purpose and elsewhere presented in the BULLETIN indicate that the volume of unabsorbed war securities is undoubtedly large. Liquidation of these war finance investments and loans is clearly a necessary preliminary to any large and genuine improvement in the banking and credit situation. Such liquidation means the purchase of war securities by actual investors. That such liquidation will be stimulated through improvement in the market for Government bonds is clear. The recent improvement in the Government bond market, foreshadowing as it probably does a progressive improvement because of increased realiza_ tion that Government long-term financing is over, is, therefore, of good augury for the general banking situation. Liquidation, in the natural course, of war loan acccounts seems likely before long to become a characteristic of the - banking trend. Whether such liquidation, however, will result in a lasting decline in the total volume of outstanding bank credits will depend upon the state of industry and trade and upon the movement of prices. October 1,1919. As the period of war financing begins to ap_. . .. proach^ its , end,' ,the Federal ReDiscount policy. x . _ serve Banks will again be in a position to shape their policies without being under the necessity of giving first consideration to the interests or needs of the Treasury. Since the entry of the United States into the great war, the Federal Reserve Banks have from the necessities of the situation utilized their resources in every legitimate way in support of war finance. Their discount policy, in particular, has been shaped first with the view of facilitating the placement of the great issues of both long-term and short-term obligations brought out by the Treasury, and secondly with the view of stabilizing the market for Liberty bonds. With these objects in view, differential rates (details of which are elsewhere presented in the BULLETIN) have been maintained at Federal Reserve Banks in favor of borrowings bymember banks either on their own or their customers7 notes, when secured by war obligations. The effect of this policy of differential rates has reflected itself in the successful placement of five great loans aggregating $21,500,000,000, and many issues of tax and loan certificates. The preferential treatment thus extended to borrowers on Government finance account has justified itself not only by the results achieved but also was justified by the unquestionable fact that during the war and until the financial operations incident to the war were completed the main business of the Nation was the efficient prosecution of the war, and the first duty of its financial and credit system, therefore, the constant support of the Government's financial program. The disappearance of the Treasuiy from the long-term loan market and the rapid reduction in its requirements for short-term accommodation foreshadows the approach of the time when the financial operations of the Government will cease to be the important factor in shaping Reserve Bank policies which they have been, and Federal Reserve Bank rates once more will be fixed solely "with a view of accommodating commerce and business,'7 October 1,1919. FEDERAL RESERVE BULLETIN. The extent to which Federal Reserve Bank „ rates may normally be expected Expansion and , x u & ,. „ . ,-. discount rates. t o b e "effective," in the sense in which that term is used in England and Continental Europe, still remains to be determined. Our experience under the Federal Reserve system is too brief to enable definite conclusions to be drawn with reference to this matter. It seems doubtful, however, whether, for a long time to come and taking the country as a whole, there will be any such close connection of Federal Reserve Bank rates with the volume of credit in use as was to be noted, for example, in prewar days in England, the home of central banking. Our nearest approach to an effective Federal Reserve Bank rate was reached in the closing months of the year 1916. The habitual temper of the American business community is sanguine and American business is, for the most part, done on liberal margins. The bulk of the requirements for credit facilities comes from industry and trade mainly domestic in its origin and character. Such a condition does not make for sensitiveness to the influence of changing rates such as was the case in England, where much business is done on a narrow margin of profit and where banking resources were normally employed largely in the international loan market. At any rate it seems fairly clear that little desirable restraining influence could have been exercised by Federal Reserve Bank rates in recent months. While repeated tendencies toward speculation of one kind or another have manifested themselves and, at times, given rise to an undesirable situation, there is no reason to believe that an advance of rates would have held these tendencies in check, at any rate no such advances as could have been undertaken without serious injur}^ to legitimate business and desirable enterprise which were entitled to encouragement and support. There is no ready method in reserve banking by which the use of reserve facilities can be withheld from use in undesirable lines of activity without, also, being withheld from use in desirable lines. 911 The problem of controlling the volume and uses of credit in a country with so much diversity of business interests and business temper as the United States is far from simple and far from certain of solution. Experience alone can determine whether and in what manner a technique of control through rates can be developed which will secure the desired results. The objects to be obtained are, however, clear and vastly important. They are to regulate the volume and uses of credit so as to give to productive industry at all times the beneficial effects of credit stimulus and support without, however, opening the way to the costly evils of credit and price inflation. The dependence of prices on credit has had convincing exemplification in Credit and the past few years. That exprices. pansion of credit has been a considerable factor in our financial and price situation has often been pointed out in the BULLETIN. The way in which credit affects prices nevertheless requires discriminating analysis. Of itself and alone, credit can not be said to determine prices. Credit affects prices only as it is used in the purchase and payment of things. It can affect prices, therefore, only when acting in conjunction with other favoring conditions. There are times when the banking organization has large reserves of credit power, and yet industry and trade being "slow" there is little demand for additional credit and consequently little credit is added to the volume of credit in use and consequently little effect is exerted by credit in changing prices. A bank may offer a customer credit but it can not make him take it. It is the credit which is taken and used, not the credit which is offered, that counts in the movement of prices. There are other times when the reserves of credit power are low and yet the demand for credit, because of buoyancy in industry and trade, is large and the volume of credit in use consequently large and its influence on prices unmistakable. The volume of credit in use depends, therefore, quite as much upon the state of trade as it 912 FEDERAL EESERVE BULLETIN. does upon the state of credit. The limits within which the use of credit can be forced by the banks are pretty narrow. Credit, as 3uch, can not, therefore, be said to be the cause of price changes. By enabling and facilitating transactions in the purchase and sale of materials and goods and labor, which require the use of a large volume of purchasing media, credit nevertheless is a decisive factor in the price situation. It is the business of the banking organization to create and supply purchasing media. Thus, at times, when trade is brisk and the spirit of industrial enterprise runs high, the increased volume of credit supplied by the banks sustains and facilitates, if it does not indeed induce, the purchasing movement, and thus supports the rise in price levels. Without such an enlargement in the volume of circulating credit or purchasing media in other suitable forms, the accommodation of prices to changing conditions in a period of activity would be impeded. While credit, therefore, can not create a situation which results in high prices, it is equally true that a situation which results in high prices can not eventuate without the assistance and mediation of credit. While there must be a desire for the use of credit before credit can expand, once under way an expansion of trade gets so much encouragement, stimulus, and support from an expansion of credit that it is at times difficult to sB,y which is more cause and which is more effect, so closely interdependent and interwoven are the two. Questions of theoretical formulation apart, however, the close connection of credit and prices, or of prices and credit, does not admit of reasonable doubt. What is still to be tested is the kind and measure of control at once effective and beneficial in its effects that can be exercised on credit through the instrumentality of Federal Reserve Bank rates and operations—that is, the extent to which the volume and character of Federal Reserve Bank operations will be sensitively responsive to changes of rate. October 1,1919. The responsiveness of the volume of Federal Reserve note circulation to flueFederal Reserve , ,. . , . tuating requirements is again noteg in process of demonstration. A year ago attention was called in the BULLETIN to the increase of Federal Reserve notes in the months synchronizing with, the crop-moving period. The same phenomenon is now being repeated. Beginning with August 1, 1919, when the total volume of outstanding Federal Reserve notes was $2,506,820,000 (the year 1919 opening with a circulation of $2,647,605,000, as reported on January 3), there has been a steady increase in the volume of Reserve notes in circulation, week by week, as seen in the following statement showing an increase for the period August 1 to September 26 of $148,534,000: August 1, 1919 August 8 August 15 August 22 August 29 September 5 September 12 September 19 September 26 §2, 506,820,000 2,532,057,000 2, 540,904,000 2, 553, 534,000 2, 580, 629,000 2, 611, 697,000 2, 621,228,000 2, 621, 258,000 2, 655, 354,000 While seasonal requirements thus appear to be the principal cause of short-period changes in the volume of outstanding Federal Reserve notes, the fundamental influence determining their normal volume is the movement of general prices and the volume of outstanding bank credit. No mathematically definite and quantitative relationship between the volume of bank credit and the volume of circulating; notes can be specified, but a close connection between the two exists. The connection is indeed so close that an increase in the volume of circulating notes may ordinarily be expected to follow closely upon an increase in the volume of circulating bank credit. This is particularly true in times when a close connection is observed between changes in the volume of bank credit in use and general prices. At such times, and generally in times of increasing October 1,1919. FEDERAL RESERVE BULLETIN. trade activity, prices at wholesale rise first. In their wake there follows of necessity a rise of retail prices and in consequence a need for increase of circulation. It may be stated as a general proposition, therefore, that changes in the volume of currency in times of expansion follow price changes. They do not precede them. There is, therefore, no foundation in present American experience for the view still sometimes urged that changes in the volume of currency are responsible for changes in prices. While it may be true as a theoretical proposition that prices at retail could not rise without an increase in the volume of currency and that refusal to supply currency might impede an upward movement of retail prices (though it is much more likely that refusal to supply currency would lead the community to adopt devices such as due bills or bearer checks, etc., of small denominations to meet the demand for currency substitutes), it is also true that such a method of controlling prices, if successful, would be at the cost of business disaster. Prices at wholesale are not appreciably affected by the volume of pocket money. It is the volume of circulating bank credit that influences the trend of wholesale prices. Restriction of bank-note issues would not, therefore, act as a direct restraint upon the movement of wholesale prices. Such effect as might conceivably be exerted from this source would at best be indirect, and would effectuate itself by what would be tantamount to a breakdown in the organization of trade by making it difficult for retail prices to adjust themselves to changes, proceeding from more or less fundamental influences, in the movement of wholesale prices. The pocket currency of the country is a function of the general money volume of the country's business. To attempt to turn it into an instrument of credit control would be a perversion of the currency function of the bankingsystem. The correction of the price situation will come in a more natural and economic manner. Prices at retail will fall to more normal levels as prices at wholesale do. Prices at wholesale 913 will fall as savings accumulate and liquidation of the war-loan accounts of the banks ensues and production advances to the point where it more nearly matches the great increase in the volume of circulating or purchasing media which have been called forth during the successive emergencies of recent years. The manner in which liquidation of the warloan business of the banks will operate a reduction of currency may be explained. It should also be noted that such liquidation will be most effective if those who are now debtors to the banks on account of Liberty loan subscriptions take up their obligations out of their own savings. Repayments of funds borrowed from the banks may take the form either of bank-deposit credit or of Federal Reserve notes. In the latter case, Federal Reserve notes would begin to accumulate in the hands of the member banks. They would take them to the Federal Reserve Banks for credit to their reserve accounts. Since the reserve accounts of most of the member banks have been brought to their present levels through extensive rediscounting, the return of the Federal Reserve notes to the Federal Reserve Bank would be in effect a reduction of the member bank's liability to its Federal Reserve Bank and a retirement of the Federal Reserve note through such process of redemption. There would thus be a direct reduction in the volume of Federal Reserve notes in circulation and a corresponding reduction of rediscounts. In the former case, where the debtor of the member bank made payment by credit, there would take place a reduction in first instance of the volume of the member bank's liabilities and in the second instance of the Federal Reserve Bank's deposit liabilities—and, it may be added, on the asset side of the statement a reduction of its discounts. The whole volume of outstanding bank credit would thus contract itself, and the same causes that brought about the contraction would result in a lowering of prices, which would necessitate a smaller volume of pocket currency and a return flow of redundant currency to the banks and eventually to the Federal Reserve Banks. 914 FEDERAL RESERVE BULLETIN. Taking things as they are, the bulk of outstanding Federal Reserve notes may properly be regarded as supplied to the borrowing member banks against rediscounts. Expense in the shape of a discount charge is, therefore, entailed to member banks in obtaining increased supplies of notes. While Federal Reserve notes are freely issued to the banks in the sense that no limits have been imposed upon the amount, they are not issued without cost. As increases in the volume of Federal Reserve note currency, particularly in times of expansion, will be obtained against rediscounts or* bills payable of member banks, the Federal Reserve note, as long as it is out, involves serious cost to the bank that takes it. The member bank, therefore, has every inducement, as notes accumulate in its hands, to use them in reducing its borrowings from, the Federal Reserve Bank. Thus has an automatic machinery been provided, operating by the method of profit and loss, for sending into retirement and redemption such part of the Federal Reserve note circulation of the community as may at any time be in excess of requirements. The main condition, as already observed, determining currency requirements is the level of prices. The reduction of the volume of the currency is, therefore, a price problem far more than the reduction of prices is a currency problem. That the high price levels which have been attained in the United States P r e s e n t a g r a v e situation is robtem° clear from the attention which current discussion of the causes of industrial unrest is directing to the cost of living problem. It presents the most urgent and immediate phase of the problem of postwar business and industrial readjustment. It promises to remain a persistent phase of postwar conditions unless its nature and cause are understood and a rational economic attitude toward it is developed. So far as the profiteering practices, which current discussions assume have developed widely and rapidly since the armistice, are responsible for the price aggravations which October 1,1919. have been experienced in recent months, some considerable mitigation of the cost of living situation may be expected and, indeed, is already in sight, The activity of "fair price" committees in different parts of the country, local action by the States, investigations and publicity by the Federal Trade Commission, and prosecution by the Department of Justice, under Federal law, which, as elsewhere noted, is in process of amendment, are already producing results. FThe problem of reducing the cost of living is, however, mainly that of restoring the purchasing power of the dollar. The dollar has lost purchasing power because expansion of credit, under the necessities of war financing, proceeded at a rate more rapid than the production and saving of goods. The return to a sound economic condition and one which will involve as little further disturbance of normal economic relationships as possible will be a reversal of the process which has brought the country to its present pass. In other words, the way in must be the way out7 As the way in was expansion of credit at a raftT more rapid than expansion of production and saving, so the way out must be an increase in production and in saving. The effect of increased production will be to place a larger volume of goods against the greatly enlarged volume of our purchasing media and thus to reduce prices. The effect of increased saving will be a reduction in the volume of purchasing media in use and, by consequence, a reduction of prices also. "What is needed is the restoration of a proper balance between the volume of credit and the volume of goods,?; said Gov. Harding, speaking before the annual convention of the American Bankers Association at St. Louis, September 30. "Because of the war financing of the Government it is not practicable to reduce the volume of credit except gradually, and the best and probably the only remedy for the present unrest is to increase the volume of goods and the facilities for their distribution. Shorter hours and higher wages do not tend to increase production, but rather the reverse, October 1,1939. FEDERAL RESERVE BULLETIN. and strikes and walkouts are doubly harmful in that they stop production without materially reducing consumption." The cost-of-living problem on its financial side is misconceived unless it is conceived as the problem of restoring the value of the dollar. To accept the depreciation worked in the dollar by war conditions and to standardize the dollar of the future on this basis would be to ratify the inflation wrought by the war and the injustices it produced. No artificial solution for an economic situation of this kind is likely to commend itself to the better judgment and the sense of equity of the country, even could some artificial method of dealing with the question of monetary depreciation be devised which would not bring in its train a crop of new difficulties and problems, So far as the main incidence of the high cost Cost-of-living o f l i v i l ) S i s t 0 be found in the index and wage ranks of labor, its correction adjustment. presents an industrial problem rather than a monetary problem—a problem to be met not by a change in the monetary standard but by a change in the machinery of industrial remuneration. The successful handling of the cos t-of-living situation, so far as concerns labor, is in first instance a matter of determining the extent to which the actual cost of living to different grades of labor in different parts of the country has been increased by rising prices, and, secondly, of devising some effective "method of adjusting money wages to changes in the money cost of living. The former is a technical statistical problem and is having the attention of the Bureau of Labor Statistics, which is accumulating data on the basis of which can be constructed a cost-of-living index number that will show variations in total expenses of families dependent upon wages because of price changes. The latter is the practical problem of improving the status of labor by the establishment of new working principles governing the relations of employers and employed. Speaking on this subject at the annual meeting of the American Association of the Baking 915 Industry in Chicago September 24, Mr. Miller, of the Federal Reserve Board, said: "There has been no general policy, either public or private, governing the action of industry in the matter of wage adjustment to changed living conditions. All sorts of influences have been at work in determining the outcome; the maintenance of the standard of living has not been the controlling consideration. The state of the labor market in different industries has at times resulted in increase of wages more than the increase in the cost of living, and at other times wages have lagged. * * * It must be said that there has been on the whole a lack of close correspondence of changes of wages with changes in the cost of living. "The facts and indications, fragmentary as they are; reveal a situation which from every reasonable point of view must be regarded as unsatisfactory. Much as was achieved in certain industries during the war through the action of public or private agency, the maintenance of the standard of living does not occupy the decisive place it should in the determination of wages. Chance and circumstance play too large a r61e, and principle too little. Wages must be regarded as the first charge on industry, and the maintenance of at least those living standards which were customary before the war must be made secure. The first duty of the Nation is to preserve the health and strength of its workers. The standard of living is, therefore, a matter of public and national concern as well as of individual concern. The Nation can not afford, industry can not afford, to run the risk of impairing its working forces through lack of some effective method of adjusting wages to the cost of living. This is, in an immediate sense, the most pressing aspect of the cost of living problem with which we are confronted. Close study should, therefore, be given by different industries in every section of the country to methods of handling the problem in an effective and equitable way. Beginnings have been made in some business and industrial enterprises, but the problem should be taken hold of on a systematic and national scale in 1 order that the needed results shall be achieved. Some mechanism by which wages may promptly be adjusted to changes in the cost of living must be accepted as an essential part of the American wage system. * * * Such action is particularly urgent in view of the extremely uncertain and disturbed course 916 FEDERAL RESERVE BULLETIN. which prices and the cost of living seem likely to follow for a good many years to come, or until the affairs of the world are once more in a state of settled equilibrium. It will not do to leave the adjustment of wages to changes in the cost of living, either to the slow and uncertain action of the forces of competition, or to the costly and disruptive action of industrial warfare. So far as the strike is a method of securing an adjustment of wages to rising prices, it should become an obsolete feature of the American industrial system." Little change is reflected in the recent volume of our foreign trade shown by eexportsitu . ™ the latest statement of the a Bureau of Foreign and Domestic Commerce covering the month of August. Exports for August were $646,259,000, as compared with $570,083,000 for July, the first month in the fiscal year 1920, and, $602,090,000, the monthly average for the fiscal year 1919. Largely increased exports, as compared with July, are shown for unprepared foodstuffs, partial manufactures, and manufactures ready for consumption, while smaller exports for the month are shown for prepared foodstuffs, mainly meat and dairy products. Raw cotton exports show a further decline for the month, while exports of mineral oil, cotton goods, and automobiles show considerable gains. August imports were $307,331,000, as compared with $344,000,000 for the month of July and $257,990,000, the monthly average for the fiscal }^ear 1919. Excess exports for August were $338,928,000, compared with $226,083,000 for July and $344,100,000, the monthly average, for the fiscal year 1919. The first two months of the current fiscal year are, therefore, characterized by a diminution in the outward movement of goods. It is clear that the large American credits at the disposal of foreign governments and their disposition to- draw heavily on American supplies for the purpose of l stabilizing n the first steps in the process of after-war readjustment, were mainly responsible for the heavy outflow of goods during the last fiscal year. It is not yet clear how much should be undertaken in further financial and economic support of Europe in October 1,1919. the further process of her readjustment. Nor is it clear what should be done in support of certain of our industries which attained conspicuous importance as export industries under the pressure of the artificial situation produced by the war. It seems highly probable, however, that new outlets for the excess products of these industries will have to be found if anything approaching their volume of production during the war is to be sustained. In the meantime it should be noted that some improvement in our cost of living situation is likely to result from the diminished outflow of goods to countries not in a position to make payment by return shipments of goods. Elsewhere in the BULLETIN are given the results of an attempt to estimate the growth of the physical volume of our export trade in recent years by eliminating the price factor. While the data available for such an estimate are not as comprehensive as might be desired and the results are not, therefore, to be taken as conclusive, they are believed, nevertheless, to be of very great value as giving a more faithful picture of changes in our export situation than can be derived from totals stated in terms of money value. Taking the prewar five-year period 1910-1914 as a base for purposes of comparison and noting the increase for each of the succeeding five years as compared with the prewar average, the following index numbers are reached for changes in the physical volume of some of our leading exports: 1910-1914 1915 191G.1917 1918 1919 100 126 121 123 109 135 It is noteworthy that the fiscal year 1919 shows the greatest increase over the prewar average—an increase of 35 per cent—a rate of increase almost fourfold that shown for the preceding fiscal year 1918. Such a gain in the rate of increase suggests that heavy exports (effectuated for the most part by credit advances) to Europe have been a very considerable factor in our cost of living situation. It October 1,19.19. FEDERAL RESERVE BULLETIN. 917 Changes in the condition of selected memis also noteworthy that an estimated 35 per ber banks affected the United cent of the physical volume of exports in the situation. *" 1Kg States security account, which, last fiscal year consisted of foodstuffs. as the result of the above deIn the field of foreign financing there are to be noted the regular weekly scribed treasury operations, shows a reduction Janfexchange. b r i n g s o f B r i t i s h a n d F r e n < * of over 110 millions. Loans secured by United treasury bills, the acceptance States war securities (war paper) went up 22.7 by the Bank of Montreal on behalf of the India millions, and slightly more in New York City, Government of tenders for immediate tele- while loans secured by stocks and bonds show graphic transfers to India of about 11,150,000 an increase of over 100 millions, largely outside rupees at rates ranging between 41.98 and 43,12 of New York City, and other loans and investcents per rupee. On September 4 about 10 ments an increase of 340.1 millions, of which millions of the Belgian 90-day export credit over 80 per cent constitutes the increase at the were renewed. No major operations have New York City banks. While there had been been effected, though financing of some Ger- a steady increase in the loan and investment man orders, also investments on a small scale account during the weeks under review, the largest increases occurred about the middle of in German public securities, are reported. Fluctuations in foreign-exchange rates con- September, when the third tax installment tinued during the month within wide ranges, became due. Aggregate amounts of United though quotations at the close of the month, States war securities and war paper, held by with the exception of French franc quotations, selected member banks on September 19, were show but little change from those given at the 3,405.9 millions, or 88.8 millions less than five close of August. The biggest drop occurred weeks before. Of the total loans and investabout the middle of the month, when the cable ments of these banks the combined amount of rates for the pound sterling declined to $4.14, Government war securities and war paper conthose for francs to 9.20, and those for lire to stituted 22.3 per cent, as against about 20 per about 10. Since then an improvement took cent, the share of loans secured by stocks and place, sterling cable rates at the close of the bonds. month quoting at $4.19, francs at 8.24, and For the five weeks between August 22 and lire at 9.70. Silver shows a steady increase in September 26 the Federal -Reserve Banks show price from 108J on August 30 to 118| on the a total increase of about 100 millions in earning last of September. assets, largely discounts other than war paper, increased borrowings of member banks being Movement of leading foreign exchange rales during September. reported by the Chicago, Atlanta, St.Louis, and Kansas City Federal Reserve Banks, apparQuotations Per ently in connection with the crop movement in Gil— cent High Low bedur- durthese districts. War-paper holdings increased low ing ing Par. par Sep- Sepby 9.5 millions, while acceptances on hand fell Aug. Sept. on tem- tem30. Sept. ber. ber. 30. off 20.4 millions during the five weeks under 30. review. Total earning assets of the Federal 4.19 4.8965 Pound sterling.,. dollars.. 4.21 13.9 4.27 4.14 Reserve Banks show an increase of over 100 5.18 8.50 39.1 7.80 9.20 French francs. per dollar.. 8.11 5.18 9. 70 9. 65 46.3 9.45 10.0 millions, and on September 26 stood at 2,503.1 Italian lire do 23.8 Berlin mark cents.. 5.0 4.6 80.7 5.0 3.2 19.12 19.15 . 8 19.35 18.90 millions. 19.3 Spanish peseta do 7.5 5.45 5.69 5.18 Swiss francs.. .per dollar.. 5.655 5.60 6.1 39.375 37.125 40.2 Dutch florin cents.. 37.375 37.75 During September about 79.4 millions of gold 24. 50 24.65 8.0 24.85 24.25 26.8 Swedish crown . . . .do 32.44 44.0 43.5 i 34.1 45.25 43.25 out of a total of 160.6 millions held on the conIndian rupee do 135. 5 136.0 137.0 130. 5 Shanghai taol do 54.62 25.50 25.875 ""52"6 25.875 25.0 tinent for the account of the Federal Reserve Brazilian milreis do 42.46 . 3 43. 58 42.35 42.35 42.35 Argentine p e s o 2 . . . .do Bank of New York and representing payments 8 1 Paper. Above par. for food furnished to the German Government • 918 October 1,1919. FEDERAL RESERVE BULLETIN. by the United States Grain Corporation were transferred to the Bank of England vaults, the amounts thus transferred being shown as additions to the reserve banks7 gold reserves. Further gains in the gold reserves are due to gold deposits by the Treasury. These increases are partly offset by export withdrawals of gold. By September 26 gold reserves totaled 2,117.9 millions, a net increase for the five-week period of 43.6 millions. Mainly as the result of large Government transactions the net deposits of the Federal Reserve Banks show considerable fluctuations during the period, though the September 26 figures, $1,634,074,000, were only 13 millions in excess of the August 22 total. Federal Reserve note circulation increased at the rate of over 20 millions during the five weeks, and at the end of the period aggregated $2,655.4 millions, or only slightly below the record total shown about the end of 1918. The banks' reserve ratio fluctuated between 50.4 and 52.5 per cent, and on September 26 stood at 51 per cent, compared with 50.7 per cent five weeks earlier. During the month ending September 10 the net outward movement of gold m ° v e " was $40,998,000, as compared with a net outward movement of $49,959,000 for the month ending August 10. The gain in the country's stock of gold since August 1, 1914, was $918,589,000, as may be seen from the following exhibit: [In thousands oi" dollars; i. e., 000 omitted.] Imports. Aug. 1 to Dec. 31,1914 Jan. 1 to Dec. 31,1915 Jan. 1 to Dec. 31,1916 Jan. 1 to Dec. 31,1917 Jan. 1 to Dec. 31,1918 Jan. 1 to Sept. 10,1919 Total Exports. Excess of imports over exports. 23,253 451,955 685,745 553,713 61,950 55,123 104,972 31,426 155,793 372,171 40,848 207,940 181,719 420,529 529,952 181,542 21,102 1152,817 1,831,739 913,150 918,589 i Excess of exports over imports. Gold imports for the monthly period, amounting to $2,018,000, were received principally from England, Canada, and Mexico. Of the gold exports, amounting to $43,016,000, $16,031,000 were consigned to Japan, $9,531,000 to China, $6,489,000 to Hongkong, and $3,792,000 to British India, the remainder going principally to France, Venezuela, and Dutch East Indies. Since the removal of the gold embargo on June 7 total gold exports have amounted approximately to $193,500,000. Of this total about $52,000,000 was shipped to Japan, $33,000,000 to Argentina, $27,000,000 to Spain, $22,000,000 to Hongkong, $19,000,000 to China, and the remainder largely to Uruguay, Venezuela, British India, Canada, and France. On September 5 the President nominated ^T • , Mr. Henry A. Moehlenpah, of New of Board. member ™. , ™ , „ Clinton, Wis., as member of the Federal Reserve Board to fill the unexpired term of Mr. F. A. Delano, who resigned in July, 1918, in order to accept a commission in the United States Army Engineer Corps engaged in railway construction in France. On September 23 the nomination was confirmed by the Senate. The appointment will become effective when Mr. Moehlenpah takes the oath of office. Mr. Moehlenpah is 52 years of age, was born in Joliet, 111., and is a graduate of Northwestern University. He entered upon the career of banking in Joliet, 111., in 1888, removing to Clinton, Wis., in 1893, where he engaged in the banking business.. At the time of his appointment he was president of the Citizens Bank of Clinton, Wis., president of the Wisconsin Mortgage & Security Co., of Milwaukee, Wis., and director of the Rock County Savings & Mortgage Co. In view of the very large increase in the . volume of the work of its staff, organiza«oiT ' " ^ F e d e r a l Reserve Board has decided to divide the duties heretofore performed by Mr. J. A. Broderick, recently resigned as secretary of the Board. Mr. Broderick, in addition to his duties as secretary, was chief Federal Reserve examiner and chief of the division of audit and examination. Accordingly, the Board makes public announcement of the following appointments: W. T. Chapman, secretary; R. G. Emerson, assistant secretary; W. W. Hoxton, executive October 1, 11)19. FEDERAL RESERVE BULLETIN. secretary; W. W. Paddock, chief of division of operations and examination; J. A. Will, chief Federal Eeserve examiner, western division: J. F. Herson. chief Federal Reserve examiner, eastern division. Mr. Chapman, who succeeds Mr. Broderick as secretary, became connected with the Board's staff upon its organization in 1914 as secretary to Hon. Paul M. Warburg. Upon retirement of Mr. Warburg in August, 1918, Mr. Chapman was assigned to the office of the secretary of the Board as general assistant, and was appointed assistant secretan?- on September 1, 1918. Mr. Emerson, who succeeds Mr. Chapman as assistant secretary, comes from Haverhill, Mass., is a graduate of "New York University, and was formerly financial statistician with a leading investment service company in New York. He entered the Board's service as an accountant in the statistical division in December, 1917, and subsequently was appointed general assistant in the secretary's office, with the designation of acting assistant secretary. Mr. Hoxton will be connected with the administrative work of the Board, performing such duties in connection with technical banking matters as may be assigned to him by the Board. Mr. Hoxton was formerly with the St. Louis Clearing House Association, for eight years as assistant manager and ten years as manager, which latter position he resigned to become deputy governor of the Federal lieserve Bank of St. Louis. After four years' service as such he resigned to head the acceptance department of an investment banking house in Cleveland, Ohio, whence he comes to join the Board's staff. Mr. Paddock, who succeeds Mr. Broderick as head of the examination division, is a former national bank examiner, assigned first to the southern New Jersey district, and then with the chief national bank examiner at Philadelphia. In August, 1918, he was appointed examiner by the Federal Reserve Bank of Philadelphia. He resigned from the Philadelphia bank in the fall of 1918 to accept appointment as a Federal Reserve examiner. 919 Mr. Will and Mr. Herson will be in charge of the field forces of the Board engaged in the examination of Federal Reserve Banks and their branches. Mr. Will's territory embraces the Federal Reserve Banks of St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco and their branches, while that of Mr. Herson embraces the Federal Reserve Banks of Boston, Philadelphia, Cleveland, Richmond, and Atlanta and their branches. The two forces are combined in the examination of the larger Federal Reserve Banks at New York and Chicago. After an extended banking and accounting experience, Mr. Will became auditor of the Federal Reserve Bank of St. Louis. He resigned this position and was appointed a Federal Reserve examiner on August 15, 1918. Mr. Herson was associated for a number of years with one of the largest trust companies in New York, leaving which he was for two years with a private banking house in Montreal, Canada, and London, England. He then became connected with the New York State Banking Department and was appointed a Federal Reserve examiner in August, 1917. Mr. It. A. Young on October 1 succeeded Mr. Theodore Wold as governor of the Federal Reserve Bank of Minneapolis, Mr. Wold having retired to accept the position of vice president of the Northwestern National Bank of Minneapolis. Mr. Young was formerly deputy governor of the Federal Reserve Bank. The appointment of the following directors - of the Nashville branch of the Directors oi T_ , T> -,., , « , , Nashville branch. * e d e r a l Reserve Bank of Atlanta was announced on September 24: Mr. W. II. Hartford, Mr. P. M. Davis, Mr. J. E. Caldwcll, Mr. E. A, Lindsey, and Mr. T. A. Embiy. The first two gentlemen have been appointed by the Federal Reserve Board, while the last three are the appointees of the Federal Reserve Bank of Atlanta. Mr. W. 11. Hartford of Nashville, who is a class B director of the Federal Reserve Bank of Atlanta, has been designated chairman of the branch board of directors. Mr. P. M. "Davis is vice president of the Ameri- 920 can National Bank at Nashville, Tenn. Mr. J, E. Caldwell is president of the Fourth and First National Bank of Nashville, and also president of the First Savings Bank and Trust Co. of Nashville. Mr. E. A. Lindsey is president of the Tennessee Hermitage National Bank, Nashville; and Mr. T. A. Embry is president of the Farmers National Bank, Winchester , Tenn. October 1, 1019. FEDERAL, RESERVE BULLETIN. A regular statutory meeting with the Federal Advisory Council was held Meeting of Ad- • visory Council. ln TTT -u- / -» r i i Washington on Monday and Tuesday, September 15 and 16. Among the questions affecting the bankingsituation generally and the status of the Federal Reserve Banks, particular attention was given to the subjects of check collection and discount rates. October 1,1919. FEDEEAL EESERVE BULLETIN. 921 BUSINESS AND FINANCIAL CONDITIONS DURING SEPTEMBER. During the month of September labor unrest has become the most prominent factor in the business situation. Prevailing unrest found expression in various forms, including demands for improved working conditions and increased wages, also in local strikes, and found its culmination in the strike in the steel industry. In spite of the resulting uncertainty injected into the business situation, the customary autumnal swell in the volume of business is noted. The high retail prices prevailing do not appear as yet to have a noticeable effect in checking consumption, and the demand for higher grade products continues. While the official wholesale price index number shows a further rise from 219 in July to 222 in August, some readjustments in wholesale prices have taken place during the present month, involving price reductions in several leading foodstuffs and in various cotton textiles, hides, and other lines in which advances had hitherto been most marked. A spirit of conservatism, however, manifests itself in various trades and greater attention is paid to the probable future trend of prices. In agriculture the exceptional promise of the spring has not been fulfilled. In particular the winter wheat crop has been considerably below expectations. This, however, is partly made up by the larger yield and harvest of corn. The official forecast for cotton is less favorable than last month, indicating an unusually late crop. The credit demand for crop-moving purposes has been less heavy than was anticipated in many quarters and was easily met by the local banks with the assistance of the Federal Reserve Banks, the latter reporting substantial increases during the month of discounts secured by commercial paper and corresponding increases in their note circulation. Conditions in the New York money market have become easier, but no great increase in the volume of speculation is noted. For the present the labor difficulty overshadows in importance all other factors in the business 139895—10-—2 situation, but a feeling of confidence generally prevails that a satisfactory solution of the present troubles will be found. Reports received from the several Federal Keserve agents as of September 20 indicated little change in the Dusmess situation from the conditions prevailing during the previous months. Although the labor situation was generally remarked as the principal factor in rendering conditions somewhat unsettled, the feeling was expressed in a number of districts that there was " a growing realization on the part of the workmen that their interests are bound up with the interests of the community as a whole and that increased efficiency resulting in greater productivity" is imperative. In district No. 1 it was stated that "business on the whole continues very active, although manufacturers are cautious in buying raw material ahead of immediate demands, while retail purchasing activity continues apparently unabated." In district No. 2 financial conditions are good, the readjustment of prices is progressing, declines in "certain products at the core of the cost of living" being noted, and the outlook is generally favorable. In district No. 3 "general business continues to show a high degree of activity and all the outward marks of prosperity." In district No. 4 general business, both wholesale and retail, continues active. Reports from all sections of district No. 5 contain "optimistic notes of general business conditions, the few unfavorable comments heard being confined to high living costs, extravagant expenditures for luxuries and nonessentials, and the shortage of farm labor." In district No. 6 it is stated that "activity in all lines of business has continued to exceed in volume activity for the same period of any previous year." In district No. 7 there continues, alike among all classes, a rather marked disposition to "capitalize" present price conditions, in particular to attempt to make|the price situation the basis of addi* 922 FEDERAL RESERVE BULLETIN. tional profit, although " business is generally reported as very good." From district No. 8 it is reported that " a tendency to await developments before making larger commitments for the future has been in evidence and the expansive impetus of the early summer months has been checked in a measure by a growing conservatism." While the effect has been to retard somewhat the growth of commerce and industry in the district, business continues active. In district No. 9 a fair crop of small grains is compensated by the very satisfactory situation with respect to corn and hay, and general business is very good. Conditions in district No. 10 have become somewhat more settled, "the volume of trade is at its highest peak of the year," and the farmer "has found 1919 a far better year than the average," both as to size bf crops and prices received. In district No. 11 it is stated that "renewed activity is noted in many lines as the fall season opens," and crops other than cotton are in good condition, although "an atmosphere of conservatism is rather noticeable in business on account of the uncertainties of the future." District No. 12 states that "business conditions have been characterized by activity in manufacturing, and increasing activity in nearly every line of wholesale and retail trade." 1 The labor problem has become the paramount issue during the present month, the question of the cost of living receding from its former position of prime importance. Reports indicate a desire of the workers to secure a larger share in the returns of industry, demands for increased wages being accompanied by demands for shorter hours. At the same time, however, public opinion appears to be awakening to the reaction which increased wages and decreased output may have upon commodity prices, and the vicious circle which may result. Production has been hindered in various lines in which the demand is greatest, both by a shortening of hours, by decreased efficiency, and by disinclination in certain cases to work more than part time. The labor unrest, exhibited frequently heretofore by new demands as to wages, hours, and conditions October 1,1919. of employment and by strikes, actual or threatened, in various industries, as well as by the agitation against high prices, has now found expression on a widespread scale in the present strike in the steel industry, and has forced itself sharply upon public attention. It had been generally hoped in the industry that intervention by the President would result in a postponement of the call for the strike pending the conference of labor and capital called by the President to meet in Washington on October 6, at which the question could be thoroughly discussed. New wage demands and strikes are frequentin certain districts, prominent among those noted during the present month having also been the "strike ;7 of the Boston police and the formulation of new wage demands by the bituminous coal miners. Although the railroad shopmen have returned to work, the transportation situation continues to occupy a prominent position in public discussion, both in consequence of the consideration of plans for the future operation of the railways and because of the car shortage which is hampering business activity in various lines. Commodity prices reached new high levels during the month of August, though since the middle of the month a downward movement appears to have set in affecting the prices of some leading staples. The general index number of the Bureau of Labor Statistics for that month stands at 222, as compared with 219 for the month of July. The increase in prices, while again general, was greater for the groups of consumers7 and producers' goods than for the group of raw materials, the index number for consumers7 goods increasing from 230 to 241, for producers7 goods from 205 to 215, and for raw materials from 214 to 217, the corresponding percentages of increase being 4.8, 4.7, and 1.5. Among the subgroups included in the group of raw materials, the index number for forest products shows a considerable increase, from 166 to 193, the numbers for animal products and for mineral products lesser increases, from 233 to 236 and from 177 to 178, respectively, while the index number for October 1,1919. FEDERAL RESERVE BULLETIN". the subgroup of farm products alone shows a decrease, from 261 to 251. The prices of a considerable number of commodities on September 1 were lower than on August 1. Since the opening of the present month, price declines in certain foodstuffs, as well as in raw cotton and various cotton textiles and in hides, have continued. The more conservative feeling noted last month still prevails and moderation in naming prices is urged in certain lines, rather than the policy of exacting all that "the traffic will bear." Retailers' sales during the present fall season have been closely watched in some lines in view of the possibility of a curtailment of consumption in consequence of the higji prices demanded. In agriculture, the relatively unsatisfactory situation prevailing with respect to wheat as compared with earlier prospects is compensated by the favorable situation with respect to corn, the bulk of which will soon be past danger of damage, and to hay, the yield of which is much above the average. Corn is of good quality, but in the case of spring wheat the grain is light. In consequence of deficiency of rainfall in district No. 9, all small grains are showing a poor return, with many sections in North Dakota, South Dakota, and Montana reporting " a complete failure." Although good returns have been received by farmers in district No. 10, it is stated that indications point to a decrease in the wheat acreage sown this fall, due partly to unfavorable soil conditions for fall plowing and seeding and partly to " a desire to return to the pre-war plan of diversified farming." District No. 11 "made the heaviest and best corn crop ever raised," and " the small grain crop was also large beyond precedent." The harvesting of grain, except corn and rice, is now practically completed in district No. 12. Deficiency of rainfall has damaged tobacco in Kentucky and Ohio, and "the outlook is rather discouraging," while in the Carolinas the crop ranges " from extra good in the interior to very poor in extreme eastern counties." The condition of cotton showed a further decline to 54.4 on September 25, and the lateness of 923 the crop is reflected in the small amount ginned to date. Additional injury has been done in Georgia and Alabama by constant rains and by the boll weevil and heavy damage by insects is reported in Texas, although improvement is noted in the Carolinas. Prices have been irregular, with a downward tendency. It is reported from Kansas City and Minneapolis that flour mills are operating at almost full capacity. There is good demand for flour, although trade reports indicate that eastern buying has lagged somewhat, and the demand for first clears has been especially light. Flour production during August, as reportedly the United States Grain Corporation, was 12,042,000 barrels, as compared with 8,339,000 barrels during July. Prices of grain and flour have shown a downward tendency. With the increase in receipts of raw sugar, meltings have again increased, although the scarcity previously remarked continues and the situation in this industry is reported to have reflected the uncertainty as to the conditions under which the new crop would be marketed. Receipts of cattle at 15 primary markets increased slightly, from 1,527,881 head during July to 1,541,133 head during August, as compared with 1,588,553 head during August, 1918, the respective index numbers being 152, 153, and 158. Receipts of hogs show a continued falling off, from 2,411,539 head during July to 1,595,759 head during August, as compared with 1,970,086 head during August, 1918, the respective index numbers being 110, 73, and 90. Receipts of sheep again show a considerable increase, being 2,220,229 head during August, corresponding to an index number of 162, as compared with 1,538,767 head during July, corresponding to an index number of 114, and 1,424,677 head during August, 1918, corresponding to an index number of 104. Prices of live stock, in particular hogs, showed a downward tendency. Hogs at Kansas City on September 13 reached a low figure of $16.23 per hundredweight, as compared with $19.50 at the close of August. The outstanding feature in the iron and steel industry has, of course, been the labor situa- 924 FEDERAL RESERVE BULLETIN. tion. Up to the actual day of the strike a feeling prevailed that it would be avoided, and the industry as a whole, as well as consumers, viewed the situation calmly. While there was a decrease in new buying during the first half of the month as conditions became unsettled, the further increase in production which had been noted for the month of August continued. Pig-iron output increased from 2,428,541 tons during July to 2,743,388 tons during August, the respective index numbers being 105 and 118. Steel-ingot production increased from 2,508,176 tons during July, corresponding to an index number of 104, to 2,746,081 tons during August, corresponding to an index number of 114, while the unfilled orders of the United States Steel Corporation at the close of August were 6,109,103 tons, as compared with 5,578,661 tons at the close of July, the respective index numbers being 116 and 106, although it is reported that new orders booked are running below those of a month ago. It is reported that the demand for pig iron during the month has not been active, with the chief interest in foundry iron, but stocks are stated to have decreased during August for the third month in succession, and merchant furnaces are well sold over the remainder of the year. A lessened demand, but with little output available for delivery before the first of the year, is reported in the lines which have hitherto been most active, such as steel bars, sheets, wire, tin plate, and lap-weld pipe. Regular consumers in many cases are stated to be well covered in their requirements for the remainder of the year, while there has been relatively little inquiry as yet for the next year's delivery, and manufacturers were not disposed to quote thereon. Certain of the heavier lines, such as rails and shapes and plates, continue to lag, the latter showing weakness in price. Price declines have been noted in the old-material markets since the middle of August. Although the volume of domestic business booked has diminished somewhat the interest in the export field, it is reported that the export agency of the independent producers shortly after the middle of the month requested from their October 1, 1919. principals an increase in the tonnage allotted to foreign business from the present figure of 10 per cent of output, The machine-tool industry continues active. The strike called for September 22 had varying effects in the several districts. Reports indicate that the strike was most widespread in the Colorado, Cleveland, and Chicago districts, a practical failure in the Birmingham district, while considerable interruption to production was noted in the Pittsburg district. The fact that for many of the independent producers agreements negotiated annually were in effect, aided materially in maintaining the output of lines for which the demand had been greatest, such as sheets and tin plate. The production of tubular goods was considerably curtailed, while the manufacture of wire products was stated to have been well maintained at all points except Cleveland. The greatest effect of the strike is reported to be on the heavier products, such as bars, structural shapes, plates, and rails, for which demand has hitherto been lightest. The claim is made that the strikers are largely foreign workers? performing the lower classes of work, and that in certain cases the strike on their part has forced out other employees who desired to continue work. The employers have been optimistic and, where a sufficient number of the regular working force has not reported, have suspended operations. Efforts have been made by the workers to enlist the aid of unions covering related trades, such as ore carrying on the Great Lakes. Reports indicate that a strike called for Monday, September 29, against the leading independents had relatively slight success, likewise efforts at the same time to force a shutdown of the leading independent producer at Pittsburgh. At the close of the month, the situation is reported to have been relatively little changed, as far as production was concerned, from conditions prevailing during the early days of the strike. Production of bituminous coal during August amounted to 42,883,000 tons, as compared with 42,946,000 tons during July, the index numbers for both months being 116. A strong demand October 1.1919. FEDERAL RESERVE BULLETIN. for anthracite coal is reported, resulting in increased shipments during August of 6,144,144 tons, corresponding to an index number of 109, as compared with 6,052,334 tons during July, corresponding to an index number of 108. Production is being impeded in certain sections by car shortage and by labor difficulties. Notice has been given by the bituminous miners of the abrogation of the existing wage scale in the central competitive field on November 1, and a conference of operators and miners has been proposed by the latter to meet at Buffalo on September 25 to consider their demands. The output of beehive coke showed a continued increase up to the month of September, 1,808,595 tons being produced during August, as compared with 1,512,178 tons during July, Due to the situation in the steel industry, decreased production has since been reported* Furnace coke has declined in price, but foundry coke has been in good demand and price increases have been noted. Continued quiet is reported in the nonferrous metal industries, with little buying by consumers. In view of the steel strike, a waiting attitude at present prevails. Transactions have consisted in large part of resales by speculators at prices below those asked by producers. The greatest strength has been shown by lead; the price of which increased about the middle of the month. Continued weakness in zinc is reported, demand from the steel industry for both that metal and tin being curtailed, in view of the present situation. It is reported from the Kansas City district that the reduced shipments are due largely to "the difficulty of obtaining cars for shipping out the ore purchased/7 but that production grew noticeably during the month of August. The activity in general manufacturing continues, although markets in certain cases present a quiet appearance due to the fact that some manufacturers are well sold ahead, while in certain quarters a more cautious purchasing policy is noted. The cotton-yarn market during the month has been relatively quiet and prices of medium and coarse count carded yarns have shown a tendency to decline. The 925 demand for cotton goods on the whole has been quiet, and price declines in gray goods are reported. This condition is reflected in the prices obtained at the second Government auction held at New York on September 4, at which most of the fabrics did not bring more than 90 per cent of the current prices, although market prices were well below those prevailing at the close of July, the time of the first auction, when market prices then prevailing were exceeded in some instances. The allotment of finished goods for spring delivery continues, at prices which are regarded as moderate by the trade in view of existing conditions, and the goods are readily taken. The raw-wool market continues quiet, with prices firm, greatest strength being shown by the finer grades. Worsted yarns are quiet but strong, spinners being sold up to the end of the year and displaying as yet but little disposition to discuss offerings for next season. The market for men's wear woolens is again quiet, such spring offerings as mills have made being largely sold up. The women's clothing industry has been protesting against the high prices of fabrics, and anxiety is expressed lest the next spring season see a restriction of purchasing by the consumer. During the month price reductions by jobbers have been reported in some lines of dress goods. Underwear shows quietness characteristic of the between-season period, mills having a relatively large amount of orders booked, though few openings for the spring season have as yet occurred. A spirit of greater caution on the part of buyers was also noticeable about the middle of the month. The demand for silk and high-grade cotton hosiery continues. While silk manufacturers state that they are sold ahead for some time to come, trade reports indicate a noticeable slackening in demand, and staple fall silks are stated to have been offered by jobbers at concessions in price. The industry has been handicapped by labor difficulties, in particular by the Paterson dyers' strike and the recent Pennsylvania strike. During the past month the feature of the hide and leather markets has been the decrease in 926 FEDERAL RESERVE BULLETIN. the prices of hides which commenced in country hides toward the close of August, although about the middle of the present month prices for both country and packer hides have again become firmer. In leather the influence on prices has been chiefly felt by the less desirable grades, though concessions on both upper and sole leather are reported. The leather market has been quiet for some time, but tanners are well sold up. Manufacturers of shoes continue to operate at capacity, and favorable reports are received from salesmen now on the road. Demand for the better grades of footwear continues. The customary seasonal swell in the volume of business is noted in many sections. Both wholesalers and retailers report a large volume of business, and the fears which had been expressed that high prices might serve to check demand continue to represent a future possibility rather than a present actuality. From practically all districts it is reported that extravagant purchasing, both in respect to the character and quality of goods, continues unabated. There is a continued heavy demand for automobiles, jewelry, and high-grade wearing apparel. Retailers7 stocks are being depleted, and in many cases difficulty continues to be experienced in obtaining merchandise, although in Philadelphia and St. Louis improvement in deliveries is noted. Merchants are, however, operating cautiously in view of present conditions. Further increase in building activity is reported. Permits issued during August exceeded the figures for July, the previous record month of the present year. The increase has been especially great for New York City, where it is stated that "for the first time in several years the amount of building now under way is fully up to normal." In several other districts, however, it is stated to be still below normal, and a further increase is anticipated. Great activity in the industry prevails in spite of high wages and the shortage of both lumber and labor, and higher costs thus far apparently have had little influence in checking construction. Orders and shipments of lumber in October 1,1919. general have continued to exceed production, which has been hampered in certain sections by car and labor shortage and weather conditions, and stocks have been further depleted. Recently, however, a decrease in demand has been noted. Official figures for the month of August show a recovery to $338,900,000 in the export balance from the "low figure of $226,000,000 for the month of July, though this amount is still far below the June figure of $624,000,000. As compared with July figures some gains are shown in the exports of breadstuffs, largely wheat, and of mineral oils, while the August exports of meat and dairy products, also of raw cotton, show a further decline both in quantities and values. While June exports to Europe were approximately equal to the entire August exports, a growth of South American business is noted. Iron and steel exports, after a sharp decrease in July, recovered somewhat during August, liberal purchasing by the Orient and South America being recorded. The foreign trade conference to be held at Atlantic City, which has been postponed from September 30 until October 20 in order to permit the attendance of the foreign delegates, will be watched with interest. A short period of fair activity in the stock market at the opening of the month was succeeded by a period of relative quiet, and public participation has again become a small factor in the general situation. No sharp decreases in the prices of stocks such as characterized the previous month have been noted, while strength has been displayed since the opening of the steel strike. In the bond market the bulk of transactions was in United States securities, and prices show a rise, while one-year United States certificates of the September 15 issue are selling above par, recent sales being on a 4£-per cent basis. Railroad bonds have been dull, but relatively unchanged in price, and industrial bonds have declined. The absorption of new securities has continued to be much larger than usual for this season of the year. Fluctuations in the call-money rate have again been confined within narrower limits than during previous months. October 1, 1919. FEDERAL RESERVE BULLETIN. the extreme rates being 4 per cent and 8 per cent until the close of the month, when, high levels were again reached. Decline in rates in the New York money market is noted, following heavy redemption of United States certificates of indebtedness, and accompanying a smaller demand than anticipated for crop-moving funds. Interest rates in general, however, remain firm, a strong demand for funds being noted in certain districts both for crop-moving purposes and to meet the seasonal requirements of manufacturers, although an easier situation is noted in some of the agricultural districts. The Board's figures of the volume of check transactions continue at a high level. Foreign exchange rates have shown a downward tendency since the opening of the month, sterling, francs, and lire among the more important exchanges again reaching new IOY/ levels, being quoted on September 6 at 4.135, 9.21, and 10.14, respectively. Recovery has since been noted. The banking situation continues to be regarded as sound, credit and collection conditions are good, and failures continue unprecedentedly small and few. SPECIAL REPORTS. (Prepared as of September 20.) 927 requirements measured by August receipts in five of the leading cotton-manufacturing centers—New Bedford, Fall River, Manchester, Lawrence, and Lowell—is 72,587 bales, as against 73,824 in August, 1918, and 58,184 in August, 1917. The demand for cotton goods is strong, though there is apparent some recession from the activity of a few weeks ago, and the volume of business both in staples and fancies is greater than many mills can handle, and, being booked through to the end of the year with orders, are declining any further new business at present, a situation partly due to the inability of the mills to utilize their full productive capacity because of a shortage of weavers and consequent idle looms in many instances. General retail trade.—The demand of the pii'blic for nearly all kinds of merchandise, particularly high-priced goods, shows no sign of abatement, jobbers reporting that business was never better so far as orders are concerned, the retailer being still short of his normal prewar supply of goods, but complaining that he can not get quantity production from the mills to meet the demand of customers. This is true of nearly everything the people need, or which they want to buy regardless of necessity, from automobiles to the minor articles of personal adornment. Retail dealers are under these circumstances able to meet bills promptly. REPORTED BY DISTRICT NO. 2. Money and hanking.—The extraordinary event in the money market during the last Wool and woolen goods.—The wool situationmonth was the redemption on September 15 of has not materially changed during the past United States certificates of indebtedness. On month, and such activity as is in evidence that day the Federal Reserve Bank of New does not appear sufficiently pronounced to York paid $348,000,000 of certificates aside indicate a general conviction as to probable from those received in payment of taxes. On developments of the next six months. While succeeding days this amount increased to about it is not anticipated that prices are likely to go $360,000,000. The effects of the release of this much higher, there is a feeling, on the other large sum of money were widespread. Call hand, that they will not go lower, or if and when money on the New York market declined imthey do, that the recession will be quite gradual mediately to 4 per cent; within three days the in the face of the continued demand by the borrowings of member banks at the Federal public for fine goods and the fact that manufac- Reserve Bank fell off about $225,000,000, inditurers in general have no surplus of the finer cating a heavy, though perhaps transient, liqgrades of the raw material on hand. The wool uidation; time money became easier and comsituation, accordingly, and naturally, remains mercial-paper rates declined to 5J and 5 per firm, with some houses not anticipating any cent for best names, and the dealers reported increasing demand. Moreover, as the Treasury widespread activity for some time to come. Cotton and cotton goods.—The cotton mar- Department foresaw, the decline in rates created ket continues for the most part quiet, with a particularly favorable market for the new prices irregular and few quotations as yet on issues of certificates of indebtedness, subscripnew crop staples. The supply for current tions for which opened on September 15. In REPORTED BY DISTRICT NO. 1. 928 FEDERAL RESERVE BULLETIN". three days subscriptions received at the Federal Reserve Bank amounted to $435,000,000, most of which were for the one-year certificates bearing 4J per cent. A second and highly important factor in effecting a decline in the money market was a smaller demand than usual for crop-moving funds. Prior to the establishment of the Federal Reserve System the West drew heavily on New York for funds with which to move the crops, but in the last five years there has been a perceptible decrease. This decline appears to be particularly heavy this year not only on account of the operations of the system, but because the wheat crop promises to be some 300,000,000 bushels less than early reports indicated, a fact which releases a corresponding amount of credit. Moreover, the West has enjoyed a period of great prosperity. Coupled with the high prices realized on cereals, live stock, and lumber is the activity of new manufacturing enterprises, and the result is an increasing selfdependence of the West in financing its crops. The comparative ease of the money markets in the last 30 days is shown in a comparison of the rates with those of the preceding month. In the earlier period call-money rates rose as high as 20 per cent, whereas.in the AugustSeptember period they have ranged between 3 | and 8 per cent. The low rate was touched only one day and the high rate twice. On August 20 the rate rose to 8 per cent in anticipation of the repayment to the Federal; Reserve Bank of Government deposits. The renewed stock exchange activity in September was attended by a second rise to 8 per cent on September '8. This high rate attracted funds from the interior, where accumulations of money had been established in anticipation of crop movements and then found to be in excess of requirements. The time-money market up to the last few days of the period has been quiet and featureless. Dealings were light and confined chiefly to the shorter maturities. Rates remained virtually unchanged at 5f to 6 per cent, with practically no loans at the lower rate. During the last week there was greater freedom in the offerings of funds for four and six months' periods by interior banks, a fact taken as a further indication that requirements for crop moving were not as large as had been expected. Throughout the period there was an active demand for acceptances from both out-of-town and New York buyers. By September 15 dealers reported that their portfolios were nearly exhausted. Rates remained unchanged. October 1,1919. Aside from purely technical deficits in lawful reserves shown in the clearing-house statements of August 23 and September 20, the experience of New York banks did not deviate from the ordinary. On August 23 the precipitating cause for the deficiency, which amounted to $813,000, was the withdrawal of Government deposits in the amount of $50,000,000. The deficiency was converted into an excess of reserves, as shown in the statement of the following week, chieffy through rediscounting at the Federal Reserve Bank. Concurrently the loans and discounts item increased $105,000,000. In the week ended September 20 the banks reduced their borrowings at the Federal Reserve Bank to such a degree that the clearing-house statement showed a deficit in lawful reserves of about $53,000,000. With the payment of the September 15 maturities of certificates the deposits increased. Stock market.—It appears that the stock market on or about August 21 entered upon a new phase of development. The New York Stock Exchange houses and their customers, especially the latter, did not become deeply impressed with the necessity of adapting their dealings to the new conditions in the money market which developed in June and July until about the middle of the latter month. Thereafter the general process of reducing the aggregate amount of call loans, and inducing the margin buyers of stocks either to take up the shares bought, or else increase the margins behind them, required a little more than a month. The liquidation incidental to this readjustment brought down theiWall Street Journal's average price of 20 industrials from 112.23 July 14 to 98.46 August 20. Money conditions had been quite readjusted by about the 1st of August; but the adaptation of the stock market to new conditions proved as usual to be a rather slow process. So it was that the past month which we are now considering proved to be the first one in very recent times wherein the stock market ceased to respond to the general expectations of expanding business and growing prosperity, and began to recognize the money conditions incidental to the crop movement and autumn business. During the last week in August, while investment opinion as to the new situation was forming itself, the volume of dealings was relatively small, being only about 700,000 shares per day. But the first week of September was characterized by substantial buying in a group October 1,1919. FEDERAL RESERVE BULLETIN. of industrial shares, which were thought to be cheap; arid this activity, in which the public as well as the professional traders participated, brought the dealings up to more than 1,400,000 shares daily. By the beginning of the second week in September the public buying seemed to have largely spent itself, at least for the time being; and the dealings became more professional as well as smaller. They centered, too, in stocks less highly approved by conservative judges of values. Money and labor conditions, as well as the crop conditions disclosed by the September report for the Government, have been fully considered by the buyers and sellers of stocks; and thus at this writing the market seems to have worked itself into the neutral or balanced position of having discounted the factors which have thus far come into sight. The second week of the month was distinctly one of equilibrium rather than of development along any definite line. Bond market and new financing.—The bond market of the past month has been a continuation of that of the previous month or six weeks, except that it acts as though the adjustment ,to new investment conditions were now more nearly complete. At least, this adjustment is going forward more slowly. In railroad bonds the pronounced weakness of July and August has been succeeded by mere heaviness and dullness. Reports of railroad net earnings have not improved of late, but the bonds in declining 5 to 6 points since the end of last year arp perhaps considered by investors to have discounted the unsatisfactory railroad situation. Public utility bonds are generally selling no lower than they were a month ago. There was weakness in the local traction issues during the second week of September, but lighting and power company bonds have been generally firm. Industrial bonds within the past month have been the heaviest group, but their reaction amounts to nothing more than the loss of a portion of the substantial rise which they enjoyed during the year ended June, 1919. The dealings on the stock exchange have centered mostly in United States bonds, while transactions in State and municipal issues have been light, and those in railway and industrial bonds have been very light. The absorption of new securities by the investing public is much larger than usual for this season of the year. The general rule is that as the volume of capital required to finance the crop movement increases, the amount of 929 liquid capital seeking investment in stocks and bonds diminishes. Preliminary reports show, however, that for the month ended September 15 there have been issued in this market $48,216,100 of preferred stocks paying 7 per cent and yielding 6 to 8 per cent on the offering price; $10,678,000 of municipal bonds, not including short-term loans, the income basis of which varied from 4.3 to 4.9 per cent; $24,500,000 industrial bonds, paying 6 per cent and offered on a 6 to 6f basis; and $40,920,000 of common stocks. This is a total of $83,394,100 of new investment issues, not counting the common stocks. Railroad securities play an insignificant part in this total and public utility issues not a large part. Besides these there is the usual assortment of petroleum and real estate securities. In general character the securities offered show no change from recent months. REPORTED BY DISTRICT NO. 3. Clothing.—Business has been going at a fast rate during the last month. More goods can be sold and have been sold than can be delivered within the next few months. Labor conditions are very unsatisfactory, largely due to the impossibility of securing enough workmen to keep production up to normal. Shorter hours are playing an important part in curtailing production. While the demand for goods continues to be pressing, manufacturers profess their inability to tell how long this condition will last. Leather.—Leather had been in such continuous demand for the last few years that prices had reached a speculative level because of comparatively scant supply. Trading conditions in the leather market have lately received a decided setback owing to the actions of the Government aimed at the reduction of the high cost of living. Very little new business in sole leather has been consummated during the last few weeks and hide prices have declined 8 to 10 cents per pound. This decline is said to be due to the unfavorable criticism, of the large packers, who are the principal producers of domestic hides. South American hides declined in sympathy, but there has been a small rally from the low prices registered during the height of the agitation. Tanners claim that the high cost of hides, labor, and tanning material warrant a price 10 cents per pound higher than at present. Leather tanners hope that business will be good for the balance of the year, but feel that the outlook 930 FEDERAL RESERVE BULLETIN. is uncertain. Foreign trading has been largely stopped. Domestic demand for footwear, however, seems to be in excess of the available supply, if the firm price levels can be taken as an indication. Patent leather is becoming more popular in the better grades of shoes. Footwear manufacturers feel that the outlook for the next two or three months is particularly good. No trouble with collections is reported from either source. Labor problems are receiving much attention, as there seems to be no limit to the compensation desired. One large tanner reports tnat wages have increased 300 per cent over 1914. Slackening of productive effort and inefficiency have accompanied these increases, according to many manufacturers. Leather belting sales during August were the largest for a long time past. Activity in this line is usually held to be an index of general manufacturing conditions, and this satisfactory report is therefore particularly noteworthy. x Silk.—There has been no let-up in the demand for silk goods during the past month. Prices have risen considerably on account of increased cost of raw material, increased cost of preparation for such operations as throwing, dyeing, etc., and the rise in wages of workmen, The suppty of merchandise is evidently not large enough to fill the present demand and customers do not seem to manifest any particular objection to paying these higher prices. The more conservative manufacturers feel that it would be desirable if consumers would oppose the continuous increase in prices which has been rendered necessary by higher production costs. Reports indicate that the conservative element of the silk workers are satisfied in those districts where wages have been properly raised, but the shutting down of some mills has been forced by the violent tactics of the radical and rougher element. Wool.—The wool market has ruled quiet for the last few weeks. The demand for finished goods and yarns shows no diminution, but manufacturers had already accumulated large stocks of raw material during the late spring and summer. Manufacturers have all the business that they can handle but are cautious in making commitments too far in the future, due to the general disturbance in labor conditions. The finer grade wools are at present in most demand and there is but little call for the poorer qualities. Eventually there is some expectation that demand wili shift over to the lower qualities due to the limited supplies of fine materials. October 1, 1019. REPORTED BY DISTRICT NO. 4. Buyers and sellers of iron and steel apparently have continued to take a calm and conservative view of the labor troubles in the industry, and the latter factor has produced little effect on the growth of the market. While during August there was some interruption of production by sporadic labor disturbances and in the Chicago district especially, by the lack of cars and motive power growing out of the shopmen's strike, the total output of the mills and furnaces advanced to new high ground. The tendency all along the line has been toward increased output to satisfy the growing volume of orders. The obligations of the producers, however, have been increasing faster than the mills have been able to enlarge their production. The result has been a further lengthening of the period of deliveries and a greater unwillingness on the part of the makers to accept additional orders for delivery in the near future. Labor and car shortages have been a factor tending to restrain, the plants from reaching the maximum output. At the present time producers of wire products, tubular goods, sheets, tin plate, and steel bars are sold up for several months ahead. Some very attractive orders in these lines are being declined because of the heavy obligations of the mills. The export trade in iron and steel, which slumped sharply in July, recovered some ground in August. The indications are that this growth is continuing. European purchases are comparatively light, but the Orient and South America have been buying in liberal volume. The steel situation still shows the lack of railroad buying which has continued to impart an irregularity to the market in that the heavier lines are still lagging. There are signs, however, of renewed negotiations in shipbuilding work, which should tend to help the backward plate market. More new vessel construction has been placed than in some time and some of this is for foreign account. In prices, producers of steel continue to follow a very conservative policy and are opposing advances at this time, notwithstanding the oversold condition of the plants in various lines and the extended deliveries. In merchant pig iron, buyers are now well covered on their requirements to the end of the year and the furnaces all hare well filled order books. Many users are endeavoring to cover their requirements after January 1, but producers as a rule are discouraging this buying October 1,1919. FEDERAL RESERVE BULLETIN. at this time because of its more or less speculative character and the uncertainty over future costs. At the same time a very appreciable tonnage has been sold for next year by producers in some districts. In Chicago the sales are estimated to have reached 200,000 tons. In some cases higher prices are being obtained on iron for next year and also for this year, but there has been no general advance and the furnaces are inclined to let matters stand and await developments. All grades of coal are hard to obtain. A great indifference exists among the miners. Many of them are satisfied to work but half time, which decreases production very materially. All mines are running far behind in their shipments. As in the steel industry, thegreatest disturbance in the coal fields is among the foreign born. In the Big Sandy and Kentucky River coal sections of Kentucky very little labor trouble is found, as most of the miners are native-born Americans. Reports from the coke regions indicate that production is being held very close to contract obligations. In the past 30 days there has been less pressure for sfjot coke; the price has remained firm even with small increase in production, small lots moving remarkably easy at $5 per net ton f. o. b. cars at ovens. With present labor conditions and no hope for improvement it would seem impossible to increase production to such an extent as to soften prices, and the tendency to advance rather than decrease will no doubt be shown before the end of the present month. Foundry coke is scarce, and high grades are quotable and easy to move at $6.50 per net ton f. o, b. at ovens in the Connellsville region. REPORTED BY DISTRICT NO. 5. The continued damaging effects of the July excess rainfall, the unfavorable weather conditions, including hot days, cool nights, and drought seasons that followed, have resulted in crops generally throughout the district making slow progress during the month. Heavy abandonment of corn acreage in the overflowed areas of the eastern Carolinas and damage to cotton and tobacco by excess rainfall are the most noticeable destructive factors. Tobacco is reported variable, or from extra good in the interior sections to very poor in extreme eastern counties. There are also estimates varying from 60 to 70 per cent of normal crop, but at present high prices the planters expect to offset the shortage in production. The sale of the crop in South Caro- 931 lina is practically completed and the farmers have obtained profitable average prices. In North Carolina the market opened September 2, fancy brights, wrappers, and the better grade fillers selling at extremely high prices) averaging 25 per cent higher than last season's opening, and the lower grades selling at about the average of last year. Continued wet weather generally over the district prevented cultivation of the com crop at the proper time, and later the drought injured the maturing of late corn. The result is reflected in the forecast by the United States Department of Agriculture (based on condition of crop September 1) that production for 1919 indicates a decrease in the fifth district as compared with 1918, although the 1919 acreage shows an increase. The forecast of production in oats shows a similar result, while the 1919 acreage in hay is estimated to produce an increased tonnage as compared with like acreage in 1918. Cotton, as a result of more favorable weather conditions since our last report, shows improvement both in the cultivation of the crop and the fruiting of the plant. The crop in the Carolinas shows about the average deterioration for the same period in recent years. Usually at this season of the year the crop begins to suffer from lack of moisture, but so far only a small area has needed rain. There is some shedding, less, however, than usual, as is also true of plant disease, but there is a general complaint of the sappy and heavy growth of the plant, which is fruiting lightly, attributed to continuous wet weather in the early season. Forecasts indicate a crop yield for the United States approximating 11,000,000 to 12,000,000 bales, exclusive of linters. Reports indicate a good apple crop throughout the fruit sections of the district, that along the Chesapeake & Ohio Railroad in Virginia being estimated at approximately 100,000 barrels more than last year. The prices at which the growers have contracted to sell apples are better than have been obtained for some years, and in most instances the sale has been made at materially increased prices. Grape shipments from North Carolina have been satisfactory, with good prices to the growers. Reports also indicate satisfactory returns for a somewhat short crop of peaches. In the trucking districts of Virginia and eastern North Carolina, crops of canteloupes and watermelons this year have been good and prices realized are quite satisfactory to the growers. Earlier estimates as to the Irish 982 FEDERAL RESERVE BULLETIN. October 1,1919. potato crop wiliberealized, the Virginia yield ex- cotton crop and other damage caused by exceeding other eastern districts, both in quality cessive rains. Agricultural activities throughand quantity, no cause being assigned for this. out the State have been handicapped because of unfavorable weather. In west Florida the REPORTED BY DISTRICT NO. 6. corn crop will be about 75 per cent of normal. Constant rains and the boll weevil have Sweet potatoes are doing well, and indications greatly injured the Georgia and Alabama cot- are for a record-breaking crop. The tobacco ton crop since the last report. Reports from crop will be good. Cotton is virtually ruined a large number of counties indicate only half a by bad weather and boll weevil; what is crop, and in many instances the estimate left of both long and short cotton is now openranges from 40 per cent down to as low as 25 ing and some is being marketed. Sugar cane and velvet beans are in satisper cent. In the southern parts of these States the damage is particularly severe. In Tennes- factory condition, with fair prospects for a good see, however, cotton has made some improve- crop. Corn is reported at 65 per cent to 70 per ment, though the crop as a whole is 18 days cent of an average crop. late, and frost may yet overtake a part of it. REPORTED BY DISTRICT NO. 7. The tobacco crop in Goergia has been probBusiness in this district is generally reported ably reduced several million pounds on account of weather damage. The first big year for to- as very good. Retailers are selling all the bacco in the State has been unfortunate, owing goods they can get, at high prices, making first to a shortage of plants, trouble in obtaining money enough to cover the increased cost of suitable fertilizers, followed by a period of doing business, collecting their bills promptly heavy washing rains and then by hot sun. In and banking satisfactory profits. The demand some counties as much as 33 per cent of the for the best qualities of merchandise is insistent crop has been abandoned. Other crops ma- and, regardless of newspaper headlines, the terially injured in the last few weeks are pea- people appear to have money in pocket to pay nuts, sweetpotatoes, velvet beans, and cowpeas. for whatever they fancy. Nothing but the In Alabama it is reported that some corn has shortage of stocks in first hands, reduced probeen damaged, but it is now believed the total duction, and delays in transportation prevents production will be greater than that of last a much greater volume of merchandising. year, on a slightly reduced acreage. Peanuts Business mortality is next to nil, credits are will not yield heavily on account of unfavorable well in hand everywhere and the physical condiweather." From Tennessee reports state that tions which restrict buying ahead tend to make early corn was too far gone to be benefited by the outlook more secure than it would be ordirecent rains, but late corn, of which there is narily on so high a price level. Keeping in more than usual, was helped. Tobacco bene- mind the possibility of a "break"—if any unfited greatly by these rains. Some tobacco foreseen event should disturb the chain of had been housed previous to the rains, but all supply, demand, and prices—merchants of all standing is showing marked improvement. grades are proceeding with more than usual The late cuttings of hay were rather short caution. Timid merchants, who can not bring on account of dry weather, pastures were cut themselves into harmony with the state of short in many places, and the acreage of clover things, are liquidating at a profit rather than for seed is much loss than formerly. Potatoes place orders at ruling prices for future deliverof both kinds lacked moisture, but sweets, be- ies. Others, taking the middle course, are ing more of a dry-weather crop, suffered least, placing orders ahead, but protecting themselves and the rains have been of decided benefit. against a possible "slump" by restricting Gardens suffered greatly, and are the poorest quantities to come and limiting their money for many years, the same being true of all vege- liability to the ordinary total. tables. Melons of all kinds are late, and the Speaking generally,' the volume of retail acreage short. Few Tennessee melons are on trade measured in dollars is very large, about the market. Sorghum acreage for sirup is 40 per cent over 1918, and, because of the short on account of the late wet spring, while "holding off" policy of many people, the indipeanuts with a greatly reduced acreage show cations are that it will increase this fall and some improvement. winter. Returning soldiers are a large factor Reports from Florida indicate that condi- in the buying of staples and as they settle tions in the farming sections of that State are down to normal civil life they will afford a good somewhat depressed due to the failure of the prop for producers and distributors alike. October 1,1919. FEDERAL RESERVE BULLETIN. Textiles and shoes rule at high and higher prices, with ginghams 20 per cent advanced for 1920 delivery and shoes "pegged" at the present level at least until January. Raw leather, however, is " steadying," indicating a gradual readjustment. The demand for silks is characterized as "extravagant" and the high prices merely signify scarcity. Diminished output is attributed in part to labor and in part to short supplies of raw materials. Luxuries are gobbled up faster than they can be produced. The people will have jewelry and they want the costliest. The watch factories can not keep up with orders, partly because it is impossible to obtain materials and efficient labor. Prices would go higher but for the policy of one dominant factor, stated thus: "We do not want to see this vicious circle of advanced prices and costs go on any longer." In the wool and woolens department matters are in an uncertain state, Merinos and the high-grade apparel wools are higher. Off grades trend downward. Radical advances in prices for 1920 clothing are announced on the basis of higher costs due to shorter hours of mill labor and much reduced production. Stocks in retail hands are very low and deliveries are being made in some cases at contract prices representing actual loss to manufacturer and jobber. Present costs are figured about 30 per cent up, and this increased cost put against prices made to dealers a few months ago, means doing business for nothing. Hand to mouth deliveries are the rule, cutting against orders being the necessary rule. Overcoats are scarce and likely to command a good price. In furniture there is an interesting situation. Suitable woods are scarce and competent labor even scarcer. Poor housing facilities, due to high building costs, account for some of the trouble. Sales are reported from 50 to 60 per cent over 1918 and some manufacturers have advanced prices about 10 per cent. Factories are booked to 75 per cent oi the year's capacity if no new orders are received Buyers are already in the market for 1920 shipments; local stocks are low and sold out as soon as uncrated. The enormous mobility of the American people and the increase of migratory club and hotel existence have made necessary a great increase in transient housing capacity at all trade and industrial centers. How these new hotels are to be outfitted is the problem. Furniture makers are unable to furnish the needed equipment, and in some cases are refusing to book orders. The grocery trade is worrying along with 933 small- stocks and some irritation over executive attempts to interfere with the usual routine of warehousing future requirements when the supply is abundant. Sugar is scarce and fruit also, indicating a small winter ration of sweets and preserves. Stocks are hardly normal. Shipments are very slow and the shelves show gaps in important items. Volume ofv trade is far ahead of last year. Few "no pay customers are left. Credits are at peak^ collections good, with few failures in the trade. REPORTED BY DISTRICT NO. 8. The shortage of coal is hampering manufacturing in some lines, while others are handicapped by the scarcity of raw materials and the lack of skilled labor. These difficulties, however, indicate a large demand for manufactured products, and are partly due to the exceptionally rapid increase of business within the past few months. There is a general expectation of a large fall and winter trade. Clothing manufacturers" report increases in their business during August as high as 50 per cent over the corresponding month last year. One concern states that it made no sales during the past month because its season's business was sold up. There are complaints of difficulty in obtaining silks and woolens. Retail merchants have built up their stocks of goods to a better point than at this time last month. Some concerns have placed larger orders under the belief that the factories will only be able to fill part of their demands. While the retail trade continues to show material gains over last year, it has steadied from its previous rapid growth and is on a par with or shows only slight increases over July. Dealers anticipate a good fall and winter trade, but in some sections say the prevailing warm weather has delayed the urgency of the demand for seasonable merchandise. REPORTED BY DISTRICT NO. 9. We have had very little rainfall since the 1st of July and all small grains are showing a poor return, .with many sections in North Dakota, South Dakota, and Montana reporting a complete failure. The irrigated districts in Montana show good crop returns. Prices for farm products and the very satisfactory condition of the corn and hay crop will, however,, practically make up to the farmer for any loss caused by the short small-grain crop, rota- 934 FEDERAL RESERVE BULLETIN. toes in Minnesota and Wisconsin are about 50 per cent of normal, with not a sufficient increase in acreage to bring the total yield up to anywhere near a satisfactory figure. The outlook for corn is very encouraging at the present time. Light frosts have been reported in various sections of the country, but no damage has been done as yet. The hay crop this year is far above normal, especially in Minnesota and Wisconsin. Good tame hay is selling at approximately $20 per ton in the stack. This will be an important item, so far as the farmer's income is concerned this year. Considerable activity in farm lands is again reported, caused by a lull in farm work after harvest. Many farmers from Iowa and Illinois are looking about for good opportunities to invest surplus cash. Every day farmers from sections south of here are passing through on their way to North Dakota, Canada, northern Minnesota, and northern Wisconsin. The milling of flour is progressing satisfactorily. Most of the mills are now running at full capacity, but all are reporting a low grade of wheat. REPORTED BY DISTRICT NO. 10. Grain movement.—Since the 1919 crop of wheat began to move marketward the receipts at the terminal centers of this district have been in larger volume than last year, the increase varying from 15 per cent to 35 per cent at different centers. As a consequence there have been large accumulations of wheat stock in elevators, in addition to a large shipping demand. Since the heavy run of wheat began grain has been shipped, except at brief intervals, under the blanket permit system, owing to the congestion of railroad yards, which was largely due to inadequacy of cars for out-shipments of grain, flour, and mill feed. Blocking of the Gulf ports with grain is also said to have been partly responsible for the congestion. Corn receipts in August were only about onehalf as large as in July and about one-fourth as large as the receipts a year,ago. There is little corn in the country and receipts are expected to continue light until the new crop comes in. Receipts of oats are also about one-half the volume of a year ago at this time. The very large receipts and accumulated supplies of wheat brought about a lower range of prices this month, dark-head wheat commanding not more than 10 cents premium above the Government guaranty, with large quantities of wheat selling at the guaranteed October 1, 1919. price. Abundant supplies in sight, despite substantial reductions from the early estimates, brought a downward turn to corn prices. From the high levels obtaining early in August around $2 basis, September corn dropped to $1.40 by September 16. September oats at the same date were down to 67 cents, a decline of 9 cents from the selling price on August 15. With a generally satisfactory demand, and orders booked for 30 to 60 days ahead, the flour mills of the district are operating this month at a little below full capacity and millers have not been pushing sales. Prices have shown some slight weakening in the past four weeks. On September 16 car-lot quotations (Kansas City) on hard-wheat flour were, per barrel, as follows: Short patent, $10.40 to $10.70; long patent, $10 to $10.40; straight, $9.50 to $10; clears, $7.50 to $9.50; low grade, $6.50 to $7. Live-stock movement.—The heavy fall movement of cattle, which started about the middle of August, brought the receipts for that month up to within 20,542 of the high August record of last year, the movement continuing through September to date with a supply slightly in excess of the corresponding period last year. August receipts of hogs were 256,188 less than in August a year ago, and for the first half of September the supply at the six markets has been about the same as at this time last year. Receipts of sheep have been unprecedently heavy this year, the August marketings totaling 1,149,075 at the six markets, of which Omaha received 687,071, the receipts for the first 16 days of September showing no appreciable change in the volume of sheej) marketed. The increase of common to fair kinds of cattle was reflected in sharp declines in prices, which had a tendency to weaken the price on choice grass-fed cattle. The supply of prime finished fed steers was hardly up to the demand and prices on this grade were not materially affected, the top price for the month being $19 and around $18.50 at the close of the month; about the same on September 16. The hog market in August was uneven, opening with prices well above $22 and closing at $19.50. Further declines and demoralization came during the first half of September as a result of diminishing export demand and unsettled feeling in the meat trade. By September 6 packers'droves were selling at $19.02; one week later the}' sold at $16.23; on September 16 they were sold at $16.75 to $17.25. Mutton prices have shown a downward tendency, the big movement from the ranges October 1, 1919. FEDERAL RESERVE BULLETIN. having started two weeks earlier than last year. Choice range lambs sold up to $17.75 at the middle of August and at the close of the month the extreme top was $15, while native lambs were $2.50 to S3 lower. A strong killing demand in September checked further sharp declines, and on September 16 the best western lambs were $15.25 and natives $14.50. With an increased supply of rough feed in the country and pastures freshened by seasonal rains, conditions for feeding live stock were materially improved in the district, and it is predicted an increased supply of well-fed stock will come to the markets later on. Mining.—There was quite a little improvement in metal mining conditions in Colorado during August. The evidence of this is not so much in any great increase in production as in renewed interest in mining, which is shown by several important deals in mining property throughout the State which are now pending or have recently been consummated. In the Missouri-Kansas-Oklahoma district there was a slowing down of the market for zinc ores in August from the promise of the preceding month which reacted on the general economic situation. This came largely as a result of the difficulty of obtaining cars for shipping out the ore purchased, the market range being dependent on the movement of ore. The range for zinc blende ores was $45 to $50 per ton for the month, closing with $46 for the high grades and $45 for second grades. The average price for calamine was $29.48 for the month. Shipments of blende ores totaled 34,148 tons and of calamine ores 892 tons for the month. Production grew noticeably during the month and unless shipments reach very much greater tonnages the surplus stocks will again reach beyond record heights. Lead ores were decidedly strong all month, the range being $62.50 to $70, closing strong. Some outside buying brought the price up to $70, local buyers holding their bids to $65. Many mines have again started up operations and production is rated close to 8,800 tons weekly. How long this will continue is a mooted question in view of the fact that it is impossible to obtain cars for shipment. The cars that are supplied are being repaired by the shippers in order to get out the ore. The lumber bill for car repairs was yerj large. Any car that can be pressed into service is used, no matter what it costs the shipper to repair it. 985 REPORTED BY DISTRICT NO. 11. Agriculture.—In general, it is not likely that the crop in Texas will much exceed that of last year, and it is possible that it may fall slightly below last year's crop". However* with ideal conditions, fair weather, and a late frost, it is possible, though not likely, that Texas might make the three to three" and a quarter million bales of cotton. A report issued under Government authority estimated the Texas cotton crop at a condition of 61 per cent of normal on August 25. 'Undoubtedly, in many sections there has been a heavy loss and deterioration since that time, though in the western and northwestern parts of the State there has not been any considerable deterioration, while over great areas of the State the crop has done very well. The damage by insects has been very heavy, especially in counties of central, south and southeast Texas. Undoubtedly, tne crop all over south Texas is going to be very short. There has, too, in recent weeks been great loss in the black waxy belt of north Texas, due to the boll-weevil and army worm. The crop is everywhere late, and there is considerable shortage of labor, and, where obtainable, prices being paid are abnormally high. The crop is very spotted, and the ultimate result will depend veiy much upon seasonal conditions from this time on. We have made the heaviest and best corn crop ever raised in the State, and for the first time within recollection the price of corn on the exchange in Chicago has been seriously affected by the heavy receipts of corn from Texas. The grain crop was also large beyond precedent, though, due to heavy rains and the shortage of labor, a considerable portion of the wheat was damaged, a small portion of it being entirely destroyed. The crop of other grains was good, while the hay and forage crop pretty well over the State is the best in recent years. The rice crop is late and has suffered from unfavorable weather conditions. The acreage in Texas and Louisiana is heavier than it was last season and the present condition of the crop, according to Government estimates, is above normal. Last year when prices were controlled by the Government the average paid for rough rice was $7.25 per barrel, 986 FEDERAL RESERVE BULLETIN. whereas, the same production is selling for $10.50 per barrel. These high prices were brought about by the heavy inquiry for export during the latter part of last season. I t is predicted that prices will continue higher than those paid last year for both rough and clean rice, due to the high price of the foreign product. Oil.—The development in the oil fields of Burkburnett and Ranger continues to increase and new wells are being brought in from time to time. As the result the production is in excess of the pipe-line capacity; and this has caused a decline in prices. Prices offered by the smaller companies have ranged from $1.25 to $1.75 per barrel and those offered by the larger companies around $2.25 per barrel. Production in the Burkburnett field is conservatively estimated at 150,000 barrels' per da}-, of which it is estimated about 95,000 barrels per day is being marketed. The scarcity of material, such as pipe casing and other machinery necessary in the production, has a "tendency to slow up the development. The labor situation is ample, attributable to a great extent to the fact that drilling operations have fallen off in the last thirty days. REPORTED BY DISTRICT NO. 12. The harvesting of grain, excepting corn and rice, is now practically completed throughout the district. The movement of the heavy crop of Washington and Oregon 7apples is well under way at prices which will 3 ield the grower approximately $2.25 per box, as compared with $2 for last year's' crop. The percentage of fancy apples is considerably larger this year than usual. The gathering of the peach crop, nearing completion in California and Utah, is at its height in Washington and Idaho. Transportation facilities are insufficient to handle the unusually large crop of California grapes, which before the present acute shortage of cars were being shipped at the rate of about 300 cars daily. Wine grapes, at record prices, are being shipped to eastern points in greater quantities tlian ever before. An interesting development is the measure of relief thus afforded from heavy losses anticipated through the enactment of the prohibition law. Favorable weather conditions, so essential to California's sun-dried fruit, have prevailed generally, although showers have caused a slight damage in some parts, and high temperatures October 1,1919. are reported to have injured the raisin crop. The estimated yield of 200,000 tons of raisins will be somewhat reduced, but last year's crop of 167,000 tons will be considerably exceeded. The Associated Raisin Co. has set opening prices for this year's crop which are calculated to yield the growers an average return of 10 cents on Muscats, l l f cents on Thompsons, and 11 cents on Sultanas, compared with 5-|- cents, 6f cents, and 6-J cents, respectively, for last year. Dried apricots are safely housed, peaches nearly so, while the drying of prunes, which are reported to be running somewhat smaller in size than anticipated, is now at its height. While the prune crop will be the largest ever raised, later reports indicate that the yield wilj fall somewhat below the former estimate of 150,000 tons. The almond crop of California, approximately 98 per cent of the country's production, sets a record both as to volume and price. Present estimates place the crop at 7,000 tons compared with 5,100 tons for 1918. Opening prices set by the association are 23J cents to 32J cents per pound, compared with 20 cents to 2 7 | cents for the previous crop. Likewise, the walnut crop, approximately 95 per cent of the country's production, sets a record production in an estimated crop of 23,000 to 25,000 tons, compared with 20,000 tons for 1918. Opening prices will be set by the association on October 1, probably close to 35 cents per pound. Returns of $75,600,000 to citrus growers for the year ended August 31 are the largest ever received by the industry in California. The total production for the State was 35,778 carloads of oranges and grapefruit and 9,914 carloads of lemons. The crops of lemons and Valencia oranges were the largest ever shipped from the State, lemons showing an increase of 70.2 per cent over last year and 22.3 per cent over 1917, the largest preceding year, while Valencias show an increase of 78 per cent over 1917, the last normal year. Scientists recently returned from an exhaustive investigation of the salmon fishing industry report that this invaluable species of fish is on the way to rapid extinction, and that the industry will require the most rigid Government regulation for its rehabilitation. Reliable estimates place this year's entire coast pack, including British Columbia, Siberia, and Japan, at 5,500,000 cases, compared with 10,100,000 cases in 1918. October 1,1919. FEDERAL RESERVE BULLETIN. THE BUDGET SYSTEM. Following is a statement by Secretary Glass on the budget, delivered before the Select Committee on the Budget of the House of Representatives on October 4, 1919: I am heartily in favor of a budget system. Without effective control over governmental expenditures and limitation of them to the Government's income we shall bring down upon our heads the splendid structure which our fathers have built, and which we have preserved. The very success (which you will pardon me if I call brilliant) with which the Treasury has financed the stupendous requirements imposed upon America by the great war may become a menace. All sense of values seems to have departed from among us. The departments, bureaus, and boards, all inspired by a laudable enthusiasm for their work, but some by a less laudable instinct to magnify its importance, bombard the committees of Congress with projects, some more or less meritorious, some of no merit whatever, but all conceived in sublime indifference to the fact that the great business of Government is being run at a loss and that each one of these projects increases the deficit of the Government and consequently the burden to be thrown upon the great body of people, whether the deficit be met by increasing taxes or by floating additional loans. For no fallacy is more grotesque than the assumption that by issuing bonds or notes or certificates of indebtedness now we may pass on to future generations the burden of our own extravagance. The burden of these issues will have to be met to-day, not only in the interest and sinking fund charges added to an already heavy load but in the expansion of credit which is inevitable as a result of the issue of such securities, constituting as they do a prime basis for additional credit in the hands of the holders, whoever they may be. I shall not elaborate upon that point, but I want to say to you in all solemnity that 100,000,000 American people will pay for the extravagance of the Government, whether that extravagance finds its incidence in governmental waste or in the desire to accomplish real or fancied benefits for a portion of the community. Let us now get back to bedrock. Let us remember that there can be no spending by the Government without paying by the Government, and that the Government can not pay except out of the pockets of the people. Let us remember, too, that in the last analysis taxes and the cost of Government loans are borne by 100,000,000 people. The burden of taxation, the burden of credit expansion, is inevitably shifted to the whole people of the United States. Some methods of finance are better than others. Some taxes are less readily adapted to being shifted from the backs of the original taxpayers, presumably better able to bear them, to the backs of the people as a whole, but in the long run the burden of governmental waste and extravagance falls more heavily upon the poor than 139895—19 3 937 upon the well-to-do and more heavily upon the well-to-do than upon the rich. By graduated income taxes we tend to mitigate this consequence, but we can not wholly avoid it. Let us not fail to remember that the Government of the United States is simply a name for the people of the United States, and that all of the people of the United States will pay in inverse order to their ability for extravagances of the Government perpetrated in the interest of a portion of the people or a section of the country. You gentlemen, I am sure, have learned as well as I by long service in Congress that the instincts and enthusiasms of departments, bureaus, and boards find support in the committees of Congress appointed to have charge of their particular affairs. As a result we find that governmental expenditure initiated in a department of the Government charged with the specific business of creating an army, or of creating a navy, or of creating a merchant marine, or of stimulating commerce, or of protecting labor, or of aiding the development of agriculture, is submitted to the Congress without consultation with or approval by the finance officer of the Government, the Secretary of the Treasury, who serves merely as a messenger, and whose office is charged with the heavy burden of finding financial means in loans and taxes to meet expenditures; and when it reaches Congress is referred to the corresponding committees of the Congress, whose specific function is also to see to the development of the Army, the Navy, the merchant marine, etc. And the Congress passes upon all of these projects—good, bad, and indifferent—without a report from the Committee on Ways and Means or the Committee on Finance, the committees of Congress which share with the Secretary of the Treasury the heavy burden of finance. It undoubtedly is true that, oftener than otherwise, the sum of department estimates is greater than allowed by the committees of Congress. I have heard it said that this is invariably so. I suspect that estimates are frequently contrived with a confident expectation of such a fate. Nevertheless, it must be admitted that each jurisdictional committee deals with estimates in a singularly sympathetic spirit, that would not be manifested by a budgetary official charged with the responsibility of advising the Congress as to the levying of taxes as well as with the responsibility of collecting the money of which appropriations are made. Moreover, it will not be denied that these various jurisdictional committees, acting separately and without complete information concerning the activities of one another, accentuate the importance of the departments, bureaus, and boards which they respectively have under their care. This would not be so if appropriations were made by a single committee, any more than would the initial estimates be allowed so far to exceed the probable revenues if the Finance Minister of the Government were given power to assemble, review, and alter them before transmitting them to the Congress. Extravagance of executive departments and bureaus would thereby be appreciably restrained. I think it 938 FEDERAL RESERVE BULLETIN. amazing that under such a system the Congress has done so well for so long a time; but I feel constrained to warn you gentlemen, in view of the greatly expanded activities of the Government and the extraordinary financial burdens which the country must endure, that it would be hazardous to continue on the old way of transacting the public business. The Government of the United States is like a great company whose operating managers, publicity managers, sales managers, purchasing department, are given carte blanche to make expenditures, conceived by them to be in the interest of the development of the business, without consultation with or control by those officers of the company who are charged with the business of ascertaining its revenues and borrowing the money to make good their deficiencies. Or, again, the Government -oi the United States is like a private family in which the wife, having charge of the spending part of the family's business, were given carte blanche to buy houses, yachts, automobiles, clothes, and food, and to employ servants, as she might find wise with a view to increasing the comfort, improving the education, cultivating the taste, and enhancing the prestige and social standing of the family; and the husband's sole business were to see that there was money in the bank to meet her checks as they were presented. That is a most pronounced hyperbole, but it is literally true that the Secretary of the Treasury under existing law and practice is unable to obtain from any department of the Government an accurate or approximately accurate estimate of its expenditures for a few weeks in advance, not to say months or years. He must be guided not by information furnished by them, but by his own shrewd guess as a result of putting together an infinite number of little facts and figures. That the Treasury has been able, notwithstanding these intolerable conditions, to finance the Government through the great war and up to this date without impairing the credit but, on the contrary, with enhancement of the credit of the Government of the United States, is due, first, to the loyalty and devotion of the whole American people throughout the period of the war, to the magnificent efforts of the patriotic Liberty loan organizations, to the unqualified support given the Treasury by the Congress without regard to party, and if I may say so, to the rather exceptional skill and ingenuity with which the Treasury has been conducted during this difficult period. But I say to you, it is an intolerable thing that such conditions should exist and that the welfare and economic life of the American people should be at the hazard of such things as these. As a former colleague, and in a spirit of frank comradeship .vhich such association inspires, I am prompted here to snteT a complaint which may not be ascribed to a desire to be critical, but to a hope that it may be given serious attention in behalf of administrative efficiency. The Congress votes with a lavish hand stupendous sums conceived in a magnificent spirit of generosity with a view to the enhancement of the prestige of the Nation, or for the benefit of this October 1,1919. or that element in the community. This it does upon the advice of the committee of Congress charged with the business of caring for such special interests. Then, speaking through the great Committee on Appropriations, it pursues a policy of restriction with relation to the expenditures of some of the departments of the Government which makes it impossible for those departments to conduct the vast affairs imposed upon them with efficiency and economy. The Government of the United States to-day is spending hundreds of millions of dollars, even billions of dollars, for armies, for navies, for merchant fleets and other magnificent activities, and at the same time refusing the payment of a living wage to the faithful clerks and employees in departments of the Government charged with the stupendous responsibility of transacting these vast affairs honestly, expeditiously, and economically. While your committee is considering a budget and an audit in the interest of the Government, the Government of the United States is in danger of losing millions of dollars because some of the departments charged with the conduct of its business are undermanned, limited to the employment of less efficient help than they should have, and provided with insufficient space to house those employees. While you are considering the reform of the audit, the work in the office of the auditors is months behind because of the failure to provide an adequate force or adequate space to transact their business. While you discuss the budget plans and audit plans the Congress withholds the necessary funds to erect an adequate vault for the protection of the vast gold store of the United States. It withholds the necessary appropriation to enable the Treasury of the United States to count Federal Reserve Bank notes and national-bank notes turned in for redemption, with the result that the Treasury is unable to take credit for those notes and is obliged to borrow corresponding sums of moneys at interest running at 4£ and 4£ per cent and this notwithstanding that any appropriation made for this purpose will be charged back to the banks and cost not one penny to the Government of the United States. Bonds, notes, and gold, with the custody of which the Treasury is charged, are inadequately protected. There is an insufficient force to care for them. The force we have is underpaid. The work in the Treasurer's office is behind; the work in the Division of Loans and Currency is behind; the work in the Division of Public Moneys is behind; the work in the Register's office is behind; the work in the offices of all the auditors is behind; and the securities and moneys of the United States are inadequately protected because the Congress withholds the necessary appropriations. I have spoken of the need of an executive budget covering all appropriations asked for by the executive departments. But let us be honest with ourselves and honest with the American people. A budget which does not cover the initiation or increase of appropriations by Congress will be a semblance of the real thing. I note that not a little has been said aboutjthe constitutional October 15 1919. FEDERAL RESERVE BULLETIN. prerogatives of Congress, but I know of no clause in our Constitution that will prevent the Congress exercising self-control. The houses of Congress can, by amendment of their own rules, surround with proper safeguards the initiation and the increase of appropriations by Congress. To-day the credit of the United States is imperiled by projects initiated and supported on the floor of Congress with a view to capturing the so-called soldier vote. I do not believe for a minute there is any such thing as the soldier vote. I do not believe that that magnificent body of strong, brave, lusty young men who went out to France, or were ready to go, want to see the people of the United States exploited in order that each of them may receive a donation. I do not believe these fine young men, if they realized what it is that is proposed in their behalf, would accept a gift made at the expense of their fathers and mothers and sisters and the children that are to come after them in order to give them a-holiday. While, of course, you can not commit to terms of money the value of the service rendered by the Army of America, I call your attention to the fact that the actual pay of our soldiers was doubled at the outset of the war; that our soldiers have been paid with liberality never dreamed of in the history of this or any other country, and that the projects now advocated so lavishly and with so little regard for the welfare of the American people are not limited to those heroic men who suffered injury or death at the hands of the enemy—not even to those who actually saw the front, not even to those who were sent to France. These projects extend to everyone of some four and one-half million mena mostly young men, who were included in the military and naval forces of the United States, even to those of their number who sought and obtained employment of a character which would relieve them from being exposed to personal risk. It has been the disheartening task of the Treasury to examine scores and scores of bills drawn and presented with a view to benefiting a section of the country or a portion of its citizenship at the expense of the whole. Many of these bills were apparently devised to avoid the appearance of an appropriation by requiring the Secretary of the Treasury to issue bonds, notes, or certificates of indebtedness to meet the expenditure involved, and all of these bills were such as would not be reached by a purely executive budget. I have said the finances of the United States are in excellent condition. I have said in substance that I do not anticipate a deficit in the current fiscal year in excess of SI,000,000,000, and that that deficit is covered by deferred installments of the Victory loan, payable within the fiscal year. I have said that there need be no more Liberty loans. But I say to you in all solemnity that if a prompt and immediate halt is not called to this great peril, there must be another Liberty loan, and you gentlemen will have to go out to the people of the United States and call upon them to subscribe for bonds, the proceeds of which are to be given away to the well and strong young men who you and I and the American people know went out in a 939 spirit of unselfishness—not one of self-seeking—to fight for their country. You may ask the old men and the widows, the school children, the rich and the poor, who responded to the call of their country to the number of twenty millions during the period of the war to respond again to this call for a donation. I hope I shall never shrink from the performance of any public duty, yet I do not covet the task of making such an appeal, and I shall not willingly be a party to offering this affront to the generous, heroic, unselfish Army and Navy of America that saved the freedom of the world. The Congress may propose to pay this gift in bonds themselves, but that should not fool anyone. If bonds are given away to the soldiers the issuance in that manner of those bonds will depress the prices of existing bonds so, gravely as to imperil the credit of the United States and force additional sacrifices from the twenty million people who participated in financing the war, in providing the pay, food, and munitions which made it possible for our splendid Army to contribute decisively to the grea$ victory. I have spoken of the initiation of appropriations in Congress. Let me speak also of the increase of appropriations. As you all know, and as I know after 17 years in Congress and not more than half as many months in the Treasury, the processes employed in framing and passing public buildings and rivers and harbors bills lead to a great waste of the money of the people. The continuance of the United States Government's activities where they are not needed, whether those activities be Army posts or subtreasuries, or hospitals, would have scant consideration in a real business budget submitted by a Finance Minister, duly empowered by law, and managed through Congress by a single committee under rules of limitation imposed by the Congress on itself. In my belief, you can not make a real budget unless you face these facts and deal with them. The Congress of the United States, in attempting this great reform in the interest of economy and efficiency, will fail and fail utterly if, while imposing the necessary firm control over the expenditures of the executive departments, it fails to exercise the sublime quality of selfcontrol. Coming to matters of detail, let me summarize briefly my views as follows: First, a budget, to be effective, must cover all appropriations and all increases of appropriations, whether initiated in the executive departments or in the Congress. The Bureau of the Budget should be in the office of the Secretary of the Treasury, the officer of the Government charged with the heavy burden of finding the means to finance its requirements. The division of responsibility is the bane of our Government. It is intolerable that the Secretary of the Treasury should have no voice in the determination of the expenditures of the Government. It is intolerable to think that his function should be merely to go out and borrow the money when someone else has spent it without consultation with him or consideration of the means to raise it. The preparation of the budget should be the principal duty of the 940 FEDERAL RESERVE BULLETIN. Finance Minister. We all know that the President can not do this thing. We all know that a bureau chief in the office of the President would be helpless to assert his opinion in opposition to the members of the President's Cabinet. Projects of the Government involving expenditures should be determined in conference between the members of the Cabinet concerned, and the President's decision should be final. So far as concerns the question how much money can be raised in loans and taxes and to what amount, therefore, the total expenditures of the Government should be limited and for all budgetary work, the President should obtain his advice from the Secretary of the Treasury and not from a bureau chief appointed for the purpose, and paralleling the work of the Secretary of the Treasury. The budget plans presented to this committee generally do not contemplate increasing the voice of the Secretary of the Treasury in determining the Government's expenditures but, on the contrary, contemplate depriving him of such voice as he already has. I ask you what there is in the record of the Treasury of the United States from the time of Alexander Hamilton to this present day which justifies this distrust? Which of the departments of the Government has deserved better of the American people or of this Congress? What reason have you to believe that the Secretary of the Treasury, with the support of the great institution over which he presides, the oldest of Government departments, can not, if due authority be conferred upon him, undertake this task so vital to the welfare of the people and so vital to the success of the administration of his office? We multiply boards and bureaus, we multiply clerks and statisticians, and perpetually we attempt to hobble those great officers of the Government upon whom rest the responsibility for producing the necessary results. Why not go back to first principles and trust these men until they fail you and then get rid of them? What good can come of a policy of imposing tremendous responsibility upon the great officers of the Government and then tying their hands so that they can accomplish nothing? Whether the budget service should be in the form of a bureau in the Treasury is a matter of detail which can be worked out. Whatever form such a staff of the Secretary of the Treasury should take, I am inclined to believe that it should be composed of experts whose tenure of office, with the possible exception of the head, would be in the nature of permanence. If thi3 additional duty should be imposed upon the Secretary of the Treasury, I think it would be wise to relieve him of activities which have no relation to the financial operations of the Government. The department should retain all the fiscal bureaus and divisions, and the Coast Guard, which has to do with the collection and protection of the revenue, but in a readjustment of this character I think that it could well dispense with the Bureau of War Risk Insurance, the Bureau of Public Health, and perhaps the Supervising Architect's Office. Second, when the budget has been received by the Congress it will be accepted as the President's program October 1, 1919. of finance. If I may venture an opinion as to whether the budget should be considered in one committee or distributed among the present committees that consider appropriations, I should say that it would be preferable to consider it as a whole and by one committee. The forum of consideration, however, is not quite so important as the question of the disposition of the budget at the hands of Congress. That, in my judgment, is of the essence of an effective budget. While Congress should retain the right to reduce the estimates, I believe that it should, as far as the budget itself is concerned, put some distinct limitation on the right to increase any item either in committee or on the floor unless recommended by the Secretary of the Treasury, or, in the absence of such recommendation, unless approved by two-thirds of the membership of Congress. The only increase on the floor which should be permitted would be the restoration of an item reduced by the committee to the original figure recommended by the Secretary. Under such a scheme the budget would come out of Congress practically as the President's budget and for which he must stand definitely responsible before the country. If the Congress desired to propose new expenditures, it should be done in a separate bill, and if the expenditure which such legislation would entail would make the total expenditures exceed the estimated revenues, the Congress should provide in the bill of appropriation specifically for the required revenue to make up the deficit. In this way Congress would not forfeit any right to initiate appropriations, but such right would be only separated from the budget. The program would stand before the country with a clear line of demarcation as to the appropriations for which the President was responsible and those for which the Congress assumed the principal responsibility. Third, there should be an audit and an effective audit. The audit now provided by law is effective when made to insure that expenditures have been made in accordance with law. The first step before Congress is to appropriate funds sufficient to enable the auditors to make the audit which is provided for under existing law. The second step is to enlarge the scope of the audit, strengthen the powers and enlarge the force so that there may be covered also the question whether expenditures have been made efficiently, economically and without duplication. For this purpose it is vitally necessary that there should be only one auditor instead of half a dozen. It is desirable that the offices of the comptroller and auditors should be rolled into one. As a step in that direction Secretary McAdoo on October 25, 1918, issued an order directing the Comptroller of the Treasury to exercise administrative super vision and direction of all the auditing offices. This was the first time that the auditors were placed under the administrative control of the comptroller, and the order was as far as it was possible to go without amendment of the law. In connection with the suggestion that the Comptroller of the Treasury and the auditors be divorced from the October 1,1919. FEDERAL RESERVE BULLETIN. Treasury Department and erected as an independent establishment, it is not clearly defined in any of the proposals just what change is contemplated in the accounting system. It must be remembered that the comptroller and the auditors are not merely auditors ol expenditures with respect to their regularity and legality, but they are the accounting officers of the Treasury. They pass upon and check the accounts in connection with every financial transaction, whether it relates to the receipt of money, to direct payments out of the Treasury, to repayments to the credit of appropriations, to credits to disbursing officers, or to payments by disbursing officers. In the management of the Nation's finances the Secretary of the Treasury must have an effective system of accounting and bookkeeping. If the comptroller and auditors were transferred from the Treasury I am inclined to think that it would be necessary to duplicate much of this accounting and bookkeeping in their offices. If the comptroller, as an independent officer, is to be in a position to give information to the Congress, as the suggestions seem to contemplate, unquestionably it would be necessary for him to duplicate the bookkeeping operations of the Division of Public Moneys and the Division of Bookkeeping and Warrants of the Treasury Department, and also some of the bookkeeping operations of the office of the Treasurer of the United States. At the present time, however, I express no definite opinion on this suggested change because it has not been put forward in such detail as to permit the expression of judgment from the standpoint of the accounting and bookkeeping requirements of the Treasury. If the auditing department should be without the walls of the Treasury, it is vital that the auditor or comptroller, whatever he may be called, should be as free from interference by the members of the legislature and by members of the other departments of the Government as he is now in the Treasury. It has been the duty and the pleasure of the Treasury Department to uphold the comptroller in his independence as a quasi-judicial officer even in cases where his determinations did not commend themselves to the Treasury. It is^ of course, only human for the comptroller to favor his own personal elevation from a subordinate to an independent position. There is nothing blameworthy in that. The present comptroller has my support and confidence. He is a brave, upright and on the whole wise public servant. Whether any comptroller would be able to exercise his functions as effectively and freely, deprived of the support and prestige of the great Treasury Department and left to stand upon his own feet as the head of an independent office, I am doubtful. On the whole, I am inclined to the view that the best interests of efficiency and economy require that the audit be conducted under the supervision of the Finance Minister of the Government, the man upon whose shoulders will fall the consequences of extravagance and waste. The act of March 4, 1909, provides— Immediately upon the receipt of the regular annual estimates of appropriations needed for the various branches 941 of the Government it shall be the duty of the Secretary of the Treasury to estimate as nearly as may be the revenues of the Government for the ensuing fiscal year, and if the estimates for appropriations, including the estimated amount necessary to meet all continuing and permanent appropriations, shall exceed the estimated revenues the Secretary of the Treasury shall transmit the estimates to Congress as heretofore required by law and at once transmit a detailed statement of all of said estimates to the President, to the end that he may, in giving Congress information of the state of the Union and in recommending to their consideration such measures as he may judge necessary, advise the Congress how in his judgment the estimated appropriations could with least injury to the public service be reduced so as to bring the appropriations within the estimated revenues, or, if such reduction be not in his judgment practicable without undue injury to the public service, that he may recommend to Congress such loans or new taxes as may be necessary to cover the deficiency. It has been stated that this section of law contemplates the preparation of an adequate book of estimates along budgetary lines. Such, in*my judgment, is not the case. In the first place the act states that in case the estimates for appropriations exceed the estimated revenues, a detailed statement shall be made to the President by the Secretary of the Treasury, in order that he may adviee the Congress how in his judgment the estimated appropriations could with least injury to the public service be reduced, or, if they can not be reduced, inforder that he may recommend such loans or new taxes as may be necessary to cover the deficiency. I call your particular attention to the fact that the act states that in the contingency mentioned the President may recommend how the appropriations may be reduced.|; That is an implicit sanction by law of the present situation, or at least a recognition in the statute that the estimates as now submitted are compiled without regard to the Nation's income. When the estimates go to Congress under any proper system, they should represent in the first instance the minimum requirements of the Government as related to its prospective receipts. In the second place, I invite attention to the fact that this law applies only to the regular annual estimates of appropriations, that is to say, the appropriations which are submitted for the ensuing fiscal year. It does not apply to estimates for deficiencies and supplemental appropriations. When the Secretary of the Treasury sends the book of estimates to the Congress, less than one-half of the current fiscal year has expired, but there is no requirement in law for any action whatever on the part of the executive in case of an estimated deficit in the Treasury at the end of that current fiscal year as a result of deficiency and supplemental estimates. In the third place, I should point out that this law compares estimated receipts and estimates of appropriations, whereas it should compare estimated receipts and estimated expenditures. At the time it was drawn, however, it was not customary for the Secretary of the Treasury to estimate the expenditure for the ensuing fiscal year. 942 FEDERAL RESERVE BULLETIN". It has been stated that no attention has been paid to the statute. The facts are these: The estimates for the fiscal year 1911 were transmitted to Congress December 6, 1909, and, therefore, were the first regular annual estimates of appropriations to be transmitted after the passage of the law. The 1911 estimates showed an estimated excess of ordinary receipts over ordinary appropriations of S35,931,327.49, but with the Panama Canal appropriations added instead of a surplus there'would be shown a deficit of $12,132,197.21. As authority existed for the issue of Panama Canal bonds, undoubtedly it was held that the act of March 4, 1909, did not apply, there being more than sufficient revenue to meet the estimated ordinary appropriations for 1911. This assumption is confirmed by the fact that the annual report of Secretary MacVeagh for 1909 refers to the sale of bonds or certificates of indebtedness to meet anticipated deficit shown in estimates. For the year 1912 the same condition was presented, it being estimated that the ordinary receipts would exceed the ordinary appropriations by approximately 849,500,000, but taking the Panama Canal appropriation into account there would be a deficit of more than §7,000,000. A similar condition existed for 1913. The estimates for 1914, sent to Congress on December 2, 1912, were $732,556,023.03 and estimated receipts $710,000,000, showing an estimated deficit of $22,556,023.03, exclusive of Panama Canal appropriations. President Taft reported this deficiency in his message to the Congress December 6, 1912, and in his annual report submitted to the Congress in December, 1912, Secretary MacVeagh made the following observation: •'These estimates of appropriations, of course, are based upon conditions that now exist and upon the laws which now prevail; and between now and the end of the fiscal year 1914 much may occur through legislative action to change the basis upon which they are made. There are also included in these estimates items for projected public works the payments for which will not be concluded during the fiscal year in question." Estimates for 1915, transmitted to Congress December 1, 1913, showed estimated ordinary receipts of $728,000,000 and estimated ordinary appropriations of $714,684,675.02, the estimated surplus of ordinary receipts being $13,315,000, exclusive of Panama Canal appropriations. When the Government's revenue was largely decreased by reason of the European war, President Wilson delivered a special message to Congress on September 4, 1914, urging that additional revenue of $100,000,000 be raised through internal taxation. For 1916, the estimated excess of ordinary receipts over ordinary appropriations was $21,234,895.20. / The Annual Kep'ort of the Secretary of the Treasury of December 6, 1915, p&ges 48 to 52, deals with receipts and disbursements for 1916 and 1917, and recommended the means of obtaining the additional revenue required for October 1,1919. the fiscal year 1917. In conformity with the statute, President Wilson similarly dealt with the situation in his message to Congress December 7. The Annual Report of the Secretary of the Treasury, sent to Congress in December, 1916, referred to the estimates for the fiscal year ending June 30, 1918. The estimates indicated that there would be a deficit on account of the program of preparedness. The Secretary pointed out that on account of the untried new revenue laws relating to taxation of inheritances and war munitions, and the uncertainties as to the actual expenditure that might be made was on account of the large program for preparedness, it was very difficult to estimate with accuracy the receipts and expenditures for the fiscal year 1917 and particularly for the fiscal year 1918. He urged upon the attention of Congress the necessity of passing such measures as would provide additional revenue to meet the preparedness program. This was only a feAv months before the declaration of war. After war was declared, the Secretary of the Treasury was in constant touch with the Committee on Ways and Means of the House and Finance Committee of the Senate, advising them periodically of the needs of the Government, As a result of these advices the Congress levied taxes and authorized issues of securities as the needs of the Government developed. Bank Holdings of United States War Obligations and Loans Secured by Such Obligations. In the table below is given an estimate of the bank holdings on June 30, 1919, of the several classes of United States war securities, including Liberty bonds, Victory notes, and Treasury certificates, also of so-called war paper, i. e., loans carried by the banks secured by United States war obligations. Of the 16,304 millions of Liberty bonds outstanding at the close of the fiscal year, national banks owned about 770 millions, while other member banks report a net investment of 293 millions in these securities. It is estimated that the banks outside of the Federal Reserve system held about 400 millions of Liberty bonds on that date, making the total amount of Liberty bonds held by all the banks somewhat less than 1,500 millions, or about 9 per cent of the total outstanding. Of the Victory notes, the amount owned by national banks on June 30 is reported as 405 millions; other member banks give their net holdings of these notes as 192 millions, while the banks outside of the Federal Reserve system, it is estimated, held about 250 millions of October 1,1919. these securities. Of the 3,468 millions outstanding at the close of the fiscal year, about 847 millions, or nearly 25 per cent, are thus shown among the banks7 holdings. Of the 3,634 millions of Treasury certificates outstanding on June 30, it is estimated that less than 50 per cent were held by the banks, the distribution by classes of banks being as follows: National banks report a total of about 1,722 millions of United States bonds, other than Liberty loan bonds, but including certificates owned. Of this total, it is assumed, the amount of United States bonds proper, largely bonds with circulation privilege, was about 715 millions, of which over 700 millions were held by the United States Treasury to secure circulation and deposits. The balance of about one billion would, therefore, represent the national bank holdings of Treasury certificates. Like holdings of other member banks are given as about 360 millions, while certificate holdings of all other banks are estimated at about 400 millions, the total of Treasury certificates held by all banks thus being about 1,760 millions. Between March 4 and June 30, 1919, the amount of war paper held by State bank and trust company members increased from about 422 to about 645 millions. On the basis of this increase, also of the increase in war paper holdings of member banks in selected cities during about the same period, the national bank holdings of war paper on June 30 are estimated at 1,400 millions. For the banks outside of the Federal Reserve system war-paper holdings of about 450 millions are assumed. This makes an estimated total of 2,495, or, say, a round 2.5 billions of war paper held by all the banks of the country at the close of the past fiscal year. It is understood that the amount just given includes both loans to carry war security subscribers as well as loans to customers for industrial and commercial purposes, when secured by Government war obligations. What portion of the total represents the result of war finance operations of the banks and what portion the result of commercial loan operations it is impossible to state. Combining the totals of the investments and loans above given we obtain an estimated total of approximately 6.5 billions as the amount of united States war securities and war paper held by the banks of the country on June 30, 1919. 943 FEDERAL RESERVE BULLETIN". Estimated amounts of Liberty bonds, Victory notes, Treasury certificates, and "War paper" held by the banks of the country on June 30, 1919. [In millions of dollars.] Liberty bonds outstanding June 30, 1919... 16,304 Held b y National banks 770 Other member banks 293 All other banks (estimated) 400 Victory notes outstanding June 30, 1919 Held b y National banks.... Other member banks All other banks (estimated) 3,468 405 192 250 Treasury certificates outstanding June 30, 1919 3,634 Held b y National banks (approximate) 1,000 Other member banks ( a c t u a l ) . . . . 360 All other banks (estimated) 400 War paper held by— National banks (estimated) Other member banks (actual) All other banks (estimated) Total 1,400 645 450 1,463 847 1,760 2,495 6,565 Discount Rates of the Federal Reserve Banks During the War Period* Changes in discount rates of the Federal Reserve Banks affect primarily the 15 and 90-day rates on war paper, which constitute about 90 per cent of all the discounts made by Federal Reserve Banks during the war period. In May, 1917, the Federal Reserve Board authorized a rate of 3 per cent for both member banks' notes and customers' paper secured by United States war obligations and having a maturity of not exceeding 15 days. This was the rate at which the first two series of Treasury certificates were issued. At the same time a 3i per cent rate, corresponding to the interest rate on the first Liberty loan bonds, was adopted for 90-day paper secured by such bonds. The 3 per cent rate adopted by six banks remained in force during part of the year and was raised successively to 3J and 4 per cent. Other Federal Reserve Banks adopted a 3J per cent rate on this class of paper, which rate commonly prevailed at the close of the year. This rate allowed a margin of one-half per cent to the banks, the rate on certificates having successively been raised 944 FEDERAL. RESERVE BULLETIN. during 1917 to 3i, 3J, and, beginning with the September 26, 1917, issue, to 4 per cent, while the interest rate on the second Liberty loan of November 15, 1917, was likewise fixed at 4 per cent. In April, 1918, in accordance with the higher rates fixed for Government loans, the 3J per cent rate on 15-day war paper was raised to 4 per cent and at the same time the rate on 90-day war paper was raised from 4 to 4 | per cent. These rates remained unchanged during the remainder of the year 1918 and during the present year in the New York district. In some of the other districts a differential of one-fourth of a per cent was adopted early in 1919 in favor of 15-day paper secured by certificates by raising the 4 per cent rate to.4£ per cent on 15-day paper secured by other Government war securities. As regards the rates on ordinary commercial paper maturing within 15 days, the New York bank's rate has always been the same as for war paper of the same maturity. In other districts the 15-day rate on ordinary commercial paper during 1917 has been from J to 1 per cent higher than in New York, ranging between 3J and 4 per cent. The raise of the 15-day rate by the New York bank to 3£ and subsequently to 4 per cent reduced the difference between the rates on 15-day commercial paper maintained in the New York and practically all other districts to between one-fourth and one-half per cent. Rates on ordinary 60-day paper, which at the beginning of 1917 stood at 4 per cent at nearly all banks, during the last two months of the year were raised to 4J per cent, and in April, 1918, to 4 | per cent. This is the 60-day October 1,1919. rate at present prevailing in all except the Kansas City and San ^Francisco districts, where a 5 per cent rate is maintained. The 90-day rate on ordinary commercial paper, which in the beginning of 1917 ranged between 4 and 4J per cent, was raised by one-half per cent during November and December of the year and by another one-fourth per cent by most of the banks in April, 1918. Since then this rate has ranged between 4f and 5 per cent. Six-month paper rates, which ranged between 4J and 5 per cent at the beginning of 1917, were raised in some districts by one-half to 1 per cent and range at present between 5 and 5i per cent. Rates on trade acceptances, as a rule, have been running from one-fourth to one-half per cent lower than the corresponding rates on other commercial paper, except that during the more recent period the rate on 15-day paper has applied equally to trade acceptances and to commercial paper of the ordinary type. As a general rule changes in the rates on war paper have caused corresponding changes in the rates on ordinary commercial paper, though, so far as 15-day paper is concerned, four banks, viz: Boston, New York, Philadelphia, and St. Louis have at present a uniform 4 per cent rate on all such paper, whether secured by Government war obligations or not. In the other Federal Reserve districts a differential of one-fourth to one-half per cent obtains at present between the two classes of paper of the shortest maturity. Rates on ordinary commercial paper maturing within 90 days have been running from 1 to one-half per cent higher than the corresponding rates on war paper. October 1,1919. FEDERAL RESERVE BULLETIN. 945 COURSE OF THE PRICE OF SILVER AND speculation on the other. To relieve the situation a royal commission recommended in CURRENCY CONDITIONS IN INDIA.1 PRIOR TO 1914. India's monetary system is based upon gold. Its actual circulation is composed mainly of silver rupees and rupee notes. In order to understand the present situation, it is essential to have a brief statement of historical developments. The summary here presented is based mainly on the Report of the Royal Commission on Indian Finance and Currency of 1914. Prior to 1893 Indian mints were open to the free coinage of silver and the exchange value of the rupee, which contains 165 grains of fine silver, was dependent upon the gold value of its silver content. The table below shows the average annual price of an ounce of pure silver and the gold value of the silver in a rupee for each year, 1873-1918. From the beginning of the period covered in the table, a rapid decline in the price of silver is shown. A rupee was worth on the basis of its silver content $0.48225 in 1875, but only $0.42869 in 1878. In that year the Bland Act was passed in the United States, under the terms of which the Secretary of the Treasury was instructed to purchase not less than $2,000,000 and not more than $4,000,000 of silver each month. This act remained in force until July 14, 1890. The effect of this act was temporarily to slacken, but not to stop, the decline in the value of silver. Neither was the fall in the price of silver stopped by the Sherman Act of 1890, which provided for the purchase by the Secretary of the United States Treasury of 4,500,000 ounces of silver monthly. In 1893, when the silver-purchase provision of this act was repealed, the value of the silver in a rupee stood at $0.28998, or nearly 40 per cent below the average for 1873. This constant and heavy decline in the value of the rupee worked a serious hardship on India, as all its payments for foreign goods and all its large remittances to England for pensions and interest on loans had to be made in depreciated currency and, therefore, considerably larger quantities of Indian products had to be exported in payment for her imports and in settlement of her debts. This also had the effect of increasing taxes in India. Furthermore, the uncertainty of the rate of exchange resulted in trade depression on the one hand and in a great deal of i Sources: Report of Royal Commission on Indian Finance and Currency, 1914 (Cd. 7236). Statistical tables relating to banks in India, Department of Statistics, India, 1919. Also: Weekly and annual bullion letters of Samuel Montagu & Co., and Indian letters published from time to time in the London Economist. 1893 that the free coinage of silver in India be discontinued. This measure relieved the Indian exchange situation, and was indorsed by a later royal commission, reporting in 1898, which recommended that the rate of exchange be fixed at 1 shilling 4 pence per rupee, or 15 rupees per pound sterling, making the par 32.44 cents per rupee. This commission also recommended the establishment of a gold-standard reserve, to be made up of the accumulated profits from the coinage of rupees, this reserve to be used for the purpose of purchasing exchange at the fixed rate, whenever the market price would show a tendency to rise above this rate, and thus to assure stability to the actual rate. The commission also recommended measures looking toward the introduction of gold as a medium of exchange in India; for that purpose it advised that the sovereign be made legal tender in India, that free coinage of gold be introduced in India, and that no silver be coined except when the proportion of silver to gold in circulation would fall below a certain rate. In so far as its efforts to introduce gold into actual circulation in India were concerned, the commission did not achieve its purpose. Earnings of the Indian population are so low that gold coins are necessarily of too high denominations for general circulation; notes and gold were accepted only at a discount, and the Indian government was forced to resume the coinage of silver rupees in large quantities, regardless of the amount of gold in circulation. No further efforts were made to force gold into circulation, and the plan for a gold mint in India was dropped at that time. The rate of exchange remained at 1 shilling 4 pence, with only a short interruption during the panic of 1907-8, up to the time of the recent rise in the price of silver. It should be mentioned that while the Indian population does not take kindly to gold as currency, it uses gold for ornaments and for hoarding. Thus, since 1873, a total of nearly l i billions of dollars in gold was absorbed in India, the annual absorption in recent years being: 1913-14, 111 millions; 1914-15, 58.4 millions; 1915-16, 17.5 millions; 1916-17, 26.3 millions; and 1917-18, 49.6 millions. REPORT OF THE ROYAL COMMISSION OF 1 9 1 4 . A commission appointed to consider the entire problem of Indian currency and exchange held hearings in 1913 and made its report early 946 FEDERAL RESERVE BULLETIN. in 1914. This commission concluded that there was nothing to be gained by trying to popularize gold as currency in India, that there was no need of a gold mint in India, and that the currency best adapted to Indian needs and preferences was one consisting of silver rupees and notes convertible for purposes of external obligations into sterling at a fixed rate. The commission indorsed the creation of the goldstandard reserve, recommended that it be continued, that it consist largely of gold in London, and that it be used exclusively for the purpose indicated by its name.1 India's paper currency has been a Government monopoly since 1862, when the privilege of note issue was withdrawn from the presidency banks. Notes are issued in denominations of 5, 10, 50, 100, 500, 1,000, and 10,000 rupees, and in 1910 the notes in denominations of 100 rupees or less were made legal tender throughout India, the 500, 1,000, 10,000 rupee rates being legal tender only within the districts where they were issued. Against the notes the Indian government was permitted to hold securities to a maximum of 14 crores (140,000,000 rupees), of which not to exceed 4 crores (40,000,000 rupees) might be held in sterling securities, the remainder to be composed of Indian or rupee securities. The commission recommended that 500 rupee notes be " universalized," i. e., be made legal tender all over India, that the fiduciary portion of the cover for the notes be raised to 200,000,000 rupees at once, and thereafter to an amount not to exceed the amount of notes held by the Government in reserve treasuries plus one-third of the net circulation, and that this portion of the reserve be eligible for investment in temporary or permanent securities, or in loans to presidency banks in India or on the London market, at the Government's discretion. The commission also recommended the continuation of the practice of selling council drafts for the purpose of transferring from India to London funds required for the use of the secretary of state for India. This custom was inherited by the India office from the East India Co. and forms "the central feature of the machinery by which the Indian finance and currency system is managed." The procedure in selling council drafts is as follows: On each Wednesday a notice is exhibited at the Bank of England inviting tenders, to be submitted on the following Wednesday, for bills of exchange and telegraphic transfers on the Indian governi A part of it had previously bsen loaned to the Indian railroads for construction purposes. October 1,1919. ment authorities at Calcutta, Madras, and Bombay. The notice states a limit which the aggregate amount will not exceed. The secretary of state does not bind himself to allot the whole amount mentioned in the notice, and as a matter of policy, prior to 1914, did not accept any applications at prices lower than 1 shilling 3-ff pence per rupee for bills and 1 shilling 3ff pence for telegraphic transfers ("T. T.s"). The price charged for telegraphic transfers is ordinarily higher by -^ pence per rupee than that charged for bills, but when the bank rate of the Calcutta or Bombay bank exceeds 8 per cent, and telegraphic transfers are consequently much in demand, tenders for transfers are considered for allotment with tenders for bills only if the former are ^ pence higher. Allotment is made to the highest bidder and, when the total amount tendered exceeds the amount offered, allotment is made pro rata. When the tenders received on a Wednesday have been disposed of, the amount to be offered for tender on the following Wednesday is decided upon, the main considerations being the requirements of theu India office and the strength of the demand. Intermediate" or "special" bills and transfers can be obtained on other days of the week at a price fixed by the India office at not less than -^ pence higher than the lowest price at which allotments have been made on the preceding Wednesday, the exact rate and the maximum amount of such " intermediates" being fixed for the week each Wednesday. The arrangements made each Wednesday are laid for approval before the next meeting of the finance committee of the council of the secretary of state for India, usually on the same day, and subsequently before the council itself. The rate at which these drafts are sold to the public varied in normal times from the fixed rate of exchange of 1 shilling 4 pence within the narrow limits of the cost of shipping gold from India to England and, as already mentioned, did not ordinarily fall below 1 shilling 3f-| pence per rupee for bills and 1 shilling 3f| pence for telegraphic transfers. Owing to India's normally large excess of exports over imports, the system of drafts offered a convenient and profitable way to settle balances due from England to India, and these drafts are the machinery through which the Government regulates the rate of exchange. The drafts are also used for the transfer to London of excessive accumulations of gold in the note currency reserve. The money so received in London is either earmarked as a portion of the Indian currency re- October 1,1919. FEDERAL RESERVE BULLETIN. serve held with the Bank of England or used to purchase silver with which to coin rupees to take the place in India of those issued to pay for the council drafts. The drafts are also used to effect transfers from India to London of profits from the coinage of rupees as these profits accumulate in the gold-standard reserve, the policy being to hold this reserve normally in London. The customary procedure in recent years before the war was to sell council drafts freely; that is to say, to sell as long as there was a demand and as long as it could be met from the resources of the Government in India. It must be kept in mind, however, that the underlying principle is that these drafts must be "sold for no other reason and to no larger amount than is necessary to meet the requirements, present or prospective, of the secretary of state for India in London." 947 40 millions in 1915-16, and about 60 millions the following fiscal year. The gold-standard reserve, which had gone to India as a result of government support of the exchange rate in 1914, was transferred back to London in 1915. India's industries were very active, prices were high, India was buying back securities from its creditors, and investing large sums in British war loan and other securities. At the same time her equipment for production was suffering from the difficulty of obtaining railway and other material required for the distribution and expansion of industry. Silver, which had continued to decline in value until July, 1915, began to rise rapidly after that date. A table is attached showing the average price of silver and the bullion value of a rupee for each month from July, 1914, to August, 1919. From 17 cents during July, 1915, the value of the silver in a rupee rose to DEVELOPMENTS SINCE 1914. 19.9 cents by the end of that year, to 27.4 cents by the end of 1916, and to 38.5 cents on SepAt the outbreak of the world war India was tember 30, 1917. The sharp rise in September enjoying a period of prosperity; the crops had was followed by an abrupt decline to 33.4 cents been good, and, furthermore, the war began at the end of October and a gradual decline to during the slow season in India and therefore 32.3 cents at the end of February, 1918. Since did not immediately have a great effect on her then there has been an almost continuous rise business activities. But it was not long before in the price of silver, the average for August, the effects of the war began to be felt in India. 1919, being 44.3 cents for the silver content of Both imports and exports fell off very heavily a rupee coin. This great increase in the price as the result of the shortage of cargo space, the of silver was caused in part by the increased activities of the Emden in the Bay of Bengal, demand throughout the world for the metal, and the preoccupation of European nations in part by the great demand for silver currency with their own pressing affairs. Germany had for the increased industrial and commercial been a large importer of Indian cotton, jute, activities of India and the war expenditures rice, and coconut products, and the war by pre- of the Indian government; and also by the venting exports to Germany had a depressing demand for rupees in other English dependeffect on these industries. The government encies, notably Mesopotamia, Egypt, and East came to the assistance of the business com- Africa. A great deal of hoarding of gold and munity by increasing its balances in the silver is also reported to have taken place in presidency banks.1 The depression caused by India. As a result of the rise in the price of the interference with India's foreign trade did silver and the increased trade balance in favor not last long, however. Soon the great demand of India, together with the prohibition of the for India's products by the Allies and by the export of gold from England in settlement of Orient, to which the belligerent European Indian balances, the rate of exchange for council nations were no longer able to supply goods, drafts was raised from 1 shilling 4 pence per resulted in increased activity throughout India. rupee, the rate maintained since 1893, to 1 Japan was in the market for all the cotton she shilling 5 pence on September 1, 1917; to 1 could buy, jute was in great demand, and so shilling 6 pence on April 11, 1918; later to 1 were tea, hides and skins, raw wool, and indigo. shilling 8 pence; on August 12, 1919, to 1 The excess of India's exports over her imports shilling 10 pence, and on September 10, to 2 was about 16 millions sterling in 1914-15, about shillings. In its turn, the Indian government issued a regulation by which all imports of sili There are three banks in India, known as the presidency banks, viz., the Bank of Bengal, with head offices at Calcutta, and 25 branches and ver were to be turned over to the government agencies; the Bank of Bombay, with head offices in that city, and 17 and also enacted drastic legislation against the branches and agencies; and the Bank of Madras, with head offices in Madras, and 24 branches and agencies. Prior to 1862 these banks had breaking up or melting of rupees. During reissue privileges, while at present they are fiscal agents of the government cent weeks council drafts have been sold in and their functions are strictly limited by law. 948 FEDERAL. RESERVE BULLETIN. New York, through the New York branch of the Bank of Montreal. These sales met with a decided success, the offerings being greatly oversubscribed at rates above the minimum price fixed. The great scarcity of silver in India menaced the convertibility of the Indian currency, and failure to maintain redemption of rupee notes in silver would have entailed most serious consequences to public order in India and to the prosecution of the war. The United States, therefore, on April 23, 1918, enacted the law known as the Pittman Act, authorizing the Secretary of the Treasury to break up and melt for export silver dollars up to the maximum of $350,000,000 and to arrange for the issue in place of the retired dollars of equal amounts of Federal Reserve Bank notes. By the law the Secretary was instructed to purchase in the open market whenever obtainable at $1 per ounce an equivalent amount of silver bullion. Under this act 200,000,000 ounces of silver were sold to the British Government at $1 per ounce of fine silver plus certain costs of transportation, melting, and recoinage. Total silver exports from the United States to India from May 1, 1918, to May 16, 1919, when the breaking up and melting of silver was discontinued, were $248,580,000, this total represen ting largely the amount of silver shipped on British Government account. A new gold coin—the mohur— was minted in India, of the same weight and fineness as the sovereign, but of the face value of 15 rupees, which was the par of exchange. The moliur, however, did not remain in circulation, some of the coins finding their way into hoards, while the bulk of them were returned to the treasury, where they were added to the currency reserve. NOTES IN CIRCULATION AND RESERVES. A table is attached showing; the note circulation in India, the different classes of reserves held against it, and the percentage of metallic reserve from the outbreak of the war to August, 1919. A chart shows in graphic form the data on notes in circulation, reserves, and price of silver. It will be seen that during the last five months of 1914 and during 1915 the note circulation in India was below the figure for July 31, 1914, this amount, 755 million rupees, not being equaled until the end of November, 1916. From that time the note circulation increased very rapidly, standing at 1,083 million rupees on "December 31, 1917, at 1,477 millions on December 31, 1918, and at 1,689 millions on August 31, 1919. The silver reserve held October 1,1919. against this circulation varied in proportion, as the Government was able to secure silver|to replace the constant drain for circulation purposes. On March 31, 1918, immediately before the United States intervened, the silver reserve stood at its lowest ebb, 107.9 million rupees, as against 339.4 millions at the outbreak of the war. Since that time the silver reserve has increased almost without interruption, and on August 31, 1919, stood at 509.9 millions. The gold reserve stood at 275.1 million rupees on July 31, 1914, but fell to 138.1 millions by August 31, and remained comparatively low through the remainder of 1914 and most of the year 1915; on December 31, 1915, the gold reserve stood at 189 millions, and while it has fluctuated considerably since that time, reaching a low ebb of 114.5 millions on July 31, 1917, it has generally been over 150 millions, and on February 28, 1918, when the silver reserve was low, reached the maximum of 289.7 million rupees. On August 31, 1919, there were 193.5 millions in the gold reserve. During 1914, 1915, and 1916 considerable portions of the gold reserve were held in England, but during 1917 most of the gold was transferred to India, and recently the portion of the gold reserve held in England has been, except for brief periods, insignificant in amount. Securities held against circulation remained at 140 million rupees, the legal maximum before the war, until February, 1916, but rose above this amount during that month and since then increased with the expansion of circulation in accordance with the currency commission's recommendations. Since January 31, 1919, this amount has stood at 985.8 million rupees, of which 160.6 millions are invested in Indian and 825 millions in British securities. Gold and silver in the currency reserve constituted 81.4 per cent of the note circulation on July 31, 1914. This percentage gradually declined as the amount of notes increased, and on June 30, 1917, fell as low as 34.4 per cent. Additions both to gold and silver reserves improved the reserve position after that date, and the percentage rose to 45.6 on November 30, 1917. Continued expansion in note circulation, however, together with rapid diminution of the silver reserve, brought the reserve ratio down to 31.3 per cent on May 31, 1918. Since then the shipments of silver from United States steadily increased the silver reserves, and the ratio gradually advanced, standing on August 31 last at 41.6 per cent. A royal commission is now making a new investigation of Indian currency and exchange October 1,1919. 949 FEDERAL KESEKVE BULLETIN. problems in the light of developments since United States equivalent of London price of silver, 1,000 and gold value of silver in a rupee, July, 19141914, and the commission's report is awaited fine, August, 1919—Continued. with interest by those who have followed the [Monthly averages.] changes produced in the situation by the great increase in the price of silver. United States equivalent of London price of silver per ounce, 1,000 fine, and value of silver in a rupee, 1873-1918. On basis of sterling at par. Date. Price of silver per ounce. [On basis of sterling at par=$4.8665.] Date. 1873 1874. . 1875 1876 1877 1878.... 1879 .. 1880 1881 1882. .. 1883 1884 1885 1886 1887 1888 1889 . 1890 1891 1892 1893 1894 1895 London Gold price of of silver per value silver ounce, in rupee. 1,000 fine. SI.40291 J 38252 L. 34306 ]L. 25853 ]L. 29934 L. 24711 ]L. 21505 L. 23791 L. 22410 L. 22770 :L. 19864 L. 20073 ]L. 15146 L. 07531 1.03887 L.01593 L 01093 .13118 1.06811 .94211 .84357 .68626 .70709 80.48225 .47524 .46168 .43261 .44665 .42869 .41767 .42553 .42078 .42202 .41203 .41275 .39581 .36964 .36399 .34923 34751 .38884 .36716 .32385 .28998 .23590 .24306 Date. 1896 . . 1897 1898 1899 1900 1901 . . . 1902 1903 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 . . . 1918 London Gold price of of silver per value silver ounce, in rupee. 1,000 fine. SO. 73043 .65338 .63794 .65031 .67035 .64426 .57076 .58656 .62569 .65975 .73177 .71516 .57827 .56233 .58462 .58300 66454 .65360 .59797 .56099 .74213 .94627 1.12602 SO.25109 . 22460 .21929 .22354 .23043 .22147 .19620 .20163 . 21508 .22679 .25155 .24583 .19878 19330 .20096 .20041 22844 122468 20555 .19284 .25511 32528 .38707 NOTE.—In 1893 the official ratiolbetween the British pound sterling and the rupee was fixed at 1 pound=15 rupees. United States equivalent of London price of silver, 1,000 fine, and gold value of silver in a rupee, July, 1914August, 1919. [Monthly averages.] On basis of sterling at par. On basis of average monthly rate oi exchange. Date. Price of silver per ounce. 1914. July August September October November December 1915. January February.... Gold value of silver rupee. Price of silver per ounce. Gold value of Silver rupee. $0.55201 SO. 18975 .53159 .50555 .49630 .50145 .iS273 .17378 .17060 .17237 . 54573 . 511199 . 500337 .50268 .18759 .175725 .171991 .17279 .496784 .500070 .17076 .17189 .496366 .494262 .170625 .169902 $0.55408 SO. 1904.7 On basis of average monthly rate of exchange. 1915. March April May June July August September October November December $0.518227 .51925 .51706 .51035 .49556 .49973 .517613 .52441 .549856 .5781152 w 1916. January February March April May June July August September October November December 1917. January February March April May June July August September October November December 1918. January February March April May June July August September October November December 1919. January February March April May June July August Gold value Price of ; Gold value of silver silver per ! of silver rupee. ounce. ; rupee. .511334 .60496 .672145 . 779886 .680876 .65632 . 690403 ! . 7146868 ! .70942 | .748516 ! .798154 , , , , , SO. 17814 SO.5126715 ! .17849 .51227 .17773 .5090258 .17543 .50080 .17034 .48865 .17178 . 48157 .17792 .49728 . 18026 .503778 .18901 .52751 .19872 .5607036 .20315 .17577 .20795 .23104 ! .23405 .22561 .23732 . 24567 . 24386 .25730 .27436 .578047 .578560 . 59211 . 658126 . 762563 . 66567 . 64175 .675342 .698709 .73163 SO. 176231 . 17609 . 174978 .17215 .16797 .16554 .17094 .173174 .18133 .192742 .198704 .198880 .20354 .226230 . 262131 .22882 .22060 .232149 .240181 .23837 .25150 .80412 . 82721 .79844 .811020 . 83163 . 857116 .87913 .94409 1.11965 . 97170 .95557 . 94329 .27641 .28435 .27446 .27878 .28587 .29463 .30220 .32453 .38487 ! .33402 i .32847 .32425 .97222 .93825 .95795 1.03501 1.07403 1.07140 1.07003 1.07561 1.08510 1.08510 1.07438 1.06264 .33420 .32252 .32929 .35578 .36919 .36829 .36782 .36974 .37300 .37300 .36931 .36528 1.01120 1.04942 1.04664 1.04512 1. 05112 1.06022 1.06022 1.05033 1.03883 .31503 .32164 .34760 .36074 .35978 .35926 .36132 .36445 .36445 .36105 .35710 1.06181 1.05309 1.05464 1.07164 1.13527 1.18146 1.18722 1.28984 .36499 .36199 .36253 .36837 . 39024 . 40612 .40810 .44338 1.03812 1.02955 1.02064 1.02420 1.08656 1.11922 1.07838 1.12888 .35685 .35391 .35085 .35207 .37351 .38473 .37069 .38805 .786157 .808306 .77999 .792035 .81265 .83663 . 860905 . 93007 1.09401 . 94859 .93304 .92104 .94950 .91646 . 270241 .277855 .26812 .272262 .27935 .28759 .31971 .37613 .32608 .32073 .31661 950 October 1,1919. FEDERAL RESERVE BULLETIN. Notes in circulation in India, composition of reserve, and percentage of metallic reserve at the close of each month, July, 19H, to August, ^1919. [In thousands of rupees.] Metallic reserves. Date. 1914. July 31.. Aug. 31.. Sept. 30. Oct. 31... Nov. 30. Dec. 31... 1915. Jan. 31... Feb. 28... Mar. 31.. Apr. 30.. May 31... June 30.. Julv31... Aug. 31.. Sept. 30.. Oct. 31... Nov. 30., Dec. 31... Jan. 31... Feb. 29... Mar. 31... Apr. 30... May 31... June 30.. July 31... Aug. 31.. Sept. 30., Oct. 31.., Nov. 30. Dec. 31... Jan. 31... Feb. 28.. Mar. 31.. Apr. 30.. May 31... June 30.. July 31.. Aug. 31., Sept. 30. Oct. 31.. Nov. 30. Dec. 31.. Jan. 31... Feb. 28... Mar. 31... Apr. 30.. May 31... June 30.. July 30... Aug. 31. Sept. 30. Oct. 31.. Nov. 30. Dec. 31.. Notes in Silver Gold coin Gold coin | circulation. coin and and bul- and bul- Total. lion in silver lion in bullion. India. England. 339,400 379,800 349,500 327,800 306,800 298,700 183,600 61,600 39,200 63,400 88,600 93,100 91,500 76,500 76,500 76,500 76,500 76,500 614,500 517,900 465,200 467,700 471,900 468,300 81.5 78.7 76.9 77.0 77.1 77.0 140,000 140,000 140,000 140,000 140,000 140,000 602,500 303,000 595,400 311,900 616,300 323,400 602,400 309,000 619,900 325,900 664,700 370,600 680,600 ! 400,900 664,100 399,200 638,000 377,400 635,800 363,900 620,600 336,000 623,400 294,400 83,000 67,000 76,400 76,900 77,500 77,600 78,200 63,400 59,100 70,400 83,100 127,500 76,500 76,500 76,500 76,500 76,500 76,500 61,500 61,500 61,500 61 500 61,500 61,500 462,500 455,400 476,300 462,400 479,900 524,700 540,600 524,100 498,000 495.800 480,600 483,400 76.8 76.5 77.3 76.8 77.4 79.0 79.4 79.0 78.1 78.0 77.4 77.5 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 140,000 127,400 122,400 122,400 122,400 121,100 125,100 122,900 116,600 109,900 125,500 123,700 119,100 81,700 119,200 119,200 119,200 119,200 119,200 119,200 119,200 119,200 119,200 119,200 119^200 469,300 481,600 472,200 436,600 427,300 480,700 524,100 509,500 484,700 501,000 442,500 411,900 77.0 75.3 70.2 67.2 65.0 63.4 69.4 68.8 67.8 68.4 58.6 50.1 140,000 158,400 200,000 212,800 230,600 230,600 230,600 230,600 230 600 232 000 312,800 409,600 125,600 104,200 89,200 121,600 66,700 120,000 51,700 113,900 51,700 99,300 48,000 70,700 44 200 70 300 25.500 121,200 16', 400 159 500 219,000 I 19,300 246,500 ! 23,100 267,300 | 10,500 403,300 392,900 379,400 319,300 306,300 321,100 378,300 436,700 469,600 532,900 514,500 468,300 47.9 45.4 44.0 38.6 34.6 34.4 38.1 41.5 43.3 46.4 45.6 43.2 438.900 473,300 484,400 507 900 576,800 611 800 614,800 614 800 614 800 614,800 614 800 614,800 754,000 657.900 605,200 607,700 611,900 608,300 1916. 609,300 640,000 672,200 649,400 657,900 711,300 754,700 740,100 715,300 733,000 755,300 821^500 260,200 240,000 230,600 195,000 187,000 ! 236,400 282,000 273,700 255,600 256,300 199,600 173,600 i 1917. 842,200 173,500 866,200 182,100 863,800 192,700 827,200 153,700 883,100 155,300 932,900 202,400 993,100 263,800 1,051 500 290,000 j 1,084,300 293,700 1,147,700 294,600 1,129 300 244,900 1,083,100 | 190 500 1918. 1,048,200 1,034,600 997,900 1,059,600 1,115,300 1,147,900 1,214,100 1,314,100 1,343,800 1,364,300 1,407,600 1,477,900 151,000 130,100 107,900 137,200 155,600 149,500 184,200 249,600 278,800 299,100 341,900 321,300 i 272,000 10,400 I 283,000 6,700 j 268,500 6 700 ! 226,000 4,500 191,100 , 2,700 210,000 j 4,500 202,100 1 200 203,300 1,200 203,800 1 200 ; 204 000 1 200 1,200 204,500 1 200 196,800 433,400 419,800 383,100 367,700 349,400 364,000 385,500 454,100 483,800 504,300 547,600 519,300 41.3 40.6 38.4 34.7 31.3 31.7 31.7 34.5 36.0 37.0 38.8 35.1 614,800 614,800 614,800 691 900 765,900 783,900 826,600 860,000 860,000 860,000 860,000 951,600 1,497,400 1,514,800 1,534,600 1,537,200 1,551,800 1,627 600 1,671,100 1,689,200 ; 321,200 346,500 I 373,900 j 375,900 389,900 465,000 494 000 i 509,900 ! 1,200 189,200 I 1,200 181,300 ' 1,200 I 173,700 30,000 ! 145,500 15 000 161 100 176,800 191,300 i 900 192,600 ! 511,600 529,000 548,800 551,400 566,000 641 800 685,300 703,400 34.2 35.0 35.7 35.8 36.5 39.4 41.0 41.6 985.800 985;800 985,800 985,800 985,800 985,800 985,800 985,800 1919. Jan. 31.. Feb. 28.. Mar. 31.. Apr. 30.. M a y 31.. June 30. July 31.. Aug. 31. Securities Percent- held in age of reserve. • circulation. O I NOTE CIRCULATION, METALLIC AND OTHER RESERVES, ALSO PRICE OF SILVER PER OUNCE, IN INDIA, 1914- -1919. ! HHg Stiver Reserve IHH Gol&Jteserv& I SecartUes held in Reserve H H JotalJVoteCirculation,: WMh Jhicc of Silver ~o~o—o-o- CD O mm® i W h!o fc gs 1914 £ %nmm H^!-> m\tm^%mwm %Hvm%!k m^.% 1^1^^ 1916 IQ1P 1918 bi^^^P^ 5 5S-. V£S\*1 ?x lM ^ 1919 CO 952 FEDERAL RESERVE BULLETIN. October 1,1919. EXPORTS FROM THE UNITED STATES was 4,897,600 short tons, of which more than BEFORE AND AFTER THE OUTBREAK OF 50 per cent undoubtedly belong to the group designated in the export returns as " manuTHE WAR. A comparison of our export trade for the five years since the beginning of the European war, and particularly the period following our entrance into the war, with conditions in the five years preceding the breaking out of the European war, is herewith presented. In the attached statement there are given for each fiscal year separately and for each of the five-year periods combined the amounts and percentages of the large groups of articles of domestic manufacture exported during the period 1910 to 1919, together with the total value of all exports. Our exports of domestic merchandise for the years 1910 to 1914, inclusive, amounted to $10,652,143,000, or an annual average of $2,130,429,000. For the five years 1915 to 1919, inclusive, our domestic exports amounted to $26,128,184,000 (an annual average of $5,225,637,000), of which $19,139,828,000 represents export of domestic merchandise for the years 1917, 1918, and 1919, and $7,074,012,000 domestic exports for the last fiscal year 1919. Our average annual domestic exports for the five years from the beginning of the war exceeded our average in the earlier period, 1910 to 1914, by $3,095,208,000, or 145.3 per cent. For the three-year period since we entered the war, the amount by which exports exceed those which were normal before the war, is $4,249,514,000, or 199.5 per cent. For the last fiscal year 1919, the excess is $4,943,583,000, or 238.2 per cent. Of equal significance with the increase of the totals of our export trade in the last five years are figures indicating changes in its composition. The largest relative increases in exports are shown for the two groups of foodstuffs, prepared and unprepared. Manufactures ready for consumption show the largest absolute inc^fease. As regards the latter group the largest percentages of the total exports are shown for the fiscal years 1916 and 1917, when the shipments of arms and munitions for the use of the Allies were at their height. The decline during the following year does not disclose the true development oi affairs, since these figures are exclusive of foreign shipments for the use of our own Army and Navy. Some% idea of the volume of the latter shipments may be had from the information given on pages 753-754 of the 1918 United States Statistical Abstract. It appears that the aggregate weight of the Army shipments for the period June 1917, to October, 1918, factures ready for consumption." Navy shipments for the period May, 1917, to December, 1918, inclusive, are given as 1,090,724 net tons, of which only 79,245 short tons are reported under the caption " provisions," while the remainder constitute undoubtedly manufacrured articles. For the fiscal year 1919 the share of manufactures ready for consumption in the total exports shows a decline from 37.43 to 33.71 per cent, though the total value of these exports, because of the higher price averages, was about $200,000,000 larger than the year before, the decline in percentage being due to the great increase in food exports. It is seen that the group of crude foodstuffs shows the largestr gain during 1915, the first year of the war, w hen the share of this group in the total domestic exports jumped from 5.9 to 18.66 per cent. The group of prepared foodstuffs shows a continuous increase since the beginning of the war, though its relative importance in the total domestic exports declined for the fiscal years 1916 and 1917. In 1918 the percentage of this group was 19.76 as against 13.84 for the five-year period preceding the war. For 1919 both groups of foodstuffs show further large increases, their aggregate percentage to total exports exceeding 35 per cent, compared with about 20 per cent for the five years before the war. The only group that showed an absolute loss in exports for the early years of the war were crude materials, largely because of the decline in raw cotton exports from 610 in 1914 to about 375 millions in 1915 and 1916. The loss in relative importance of this group in the total export movement is seen from a comparison of the average percentage for the five years preceding the war—33.1 per cent, with the percentage for the war period, 14.89 per cent. EXPORTS BY COUNTRIES. Additional light upon the changes in the currents of our foreign trade is thrown by the table showing distribution of our total exports by countries and groups of countries in each year during the 10-year period 1910-1919, and for the two 5-year periods 1910-1914 and 1915-1919. In the table the first group of countries comprises those European nations which formed the alliance against the central powers, i. e., Great Britain, France, Belgium, Italy, and Russia. For the five years before the war these October 1, 1919. .FEDERAL RESERVE BULLETIN. countries are shown to have taken an average of about 849 millions a year, or about 40 per cent of a total yearly average of 2,165.8 millions exported during these years. During the war years exports to the allied countries of Europe show a considerable increase, averaging for the 1915-1919 war period 3,111.8 millions, or 58.6 per cent of an average of 5, 307.4 exported to all countries during these five years. As against an increase of 267 per cent in our exports consigned during the period 1915-1919 to the allied countries in Europe over like exports consigned during the preceding live-year period, exports during the war period to the rest of the world increased but 67 per cent, which is probably less than the average rise in the price level, in other words, the large increase in exports shown for the war period was caused apparently altogether by the larger exports to the allied countries in Europe; exports to the rest of the world were probably less in volume than before the war. The largo increases in exports to allied Europe are due in the first place to the large shipments of explosives, which in 1917 reached a total in excess of §800,000,000, of which about 90 per cent was consigned, to belligerent Europe (as against negligible amounts shipped before the war), and the considerable increases in the shipments of breadstuffs (mainly oats, wheat, and wheat flour) and of meat products (largely bacon, hams, and lard for the use of the warring armies). "Under the general head of "Iron and steel" greatly increased exports to the allied countries are shown principal!}' for steam and other engines, metal-working machinery, steel rails, tin plates (of which considerable quantities went even to the United Kingdom), tools, barbed and other wire, etc., most of which, itis safe to say, were used as munitions of war. SHARE OF DOMESTIC PRODUCTS EXPORTED. Comparisons between quantities of different commodities produced in the United States and quantities exported are possible only for a few staple articles, such as breadstuffs, cotton, coal and coke, and the like. In most cases neither the quantities or values of the domestic output are known, while exports leave the country in the shape of partly or fully prepared manufactures, rendering meaningless comparisons of exports with the figures of the output of the respective raw materials. Thus, for example, the Geological Survey gives the total copper production for the calendar years 1915 to 1918 as 7,110,516,000 pounds, while the exports of unrefined and refined copper for the same period 139895—19 4 953 are stated as 3,337,229,000, or slightly below 50 per cent—or much below the prewar ratio of about 70 per cent. The explanation* of the apparent relative fall in copper exports is to be found in the fact that the official figures of copper exports are exclusive of the very considerable amounts used by American manufacturers engaged in the production of shells for the use of the allied armies, the exports of which are returned under general caption "explosives." For some items, such as corn and corn meal, wheat and flour, cotton, coal, and coke, the changes in the quantities and relative shares exported arc shown in the attached table, but it is apparent that the percentages calculated, especially in the case of corn, a large proportion of which is fed to live stock and exported in the form of meat products and lard, are not to any extent indicative of the total percentages of our national output that is sent out of the country. . QUANTITIES AND VALUES OF EXPO11TS. With the view of getting some idea as to what portion of the large increase in our exports since the beginning of the great war was due to increase in quantity and what portion to the increase in value of the articles shipped, the attached table has been compiled from the original tables of foreign commerce for the period 1910-1919 issued by the Department of Commerce. In the first column are given average 19101914 values for certain leading export items, for which the Department of Commerce shows both quantities and values, the aggregate average value of these exports for the live-year period preceding the war constituting 6Q.5 per cent of the average total domestic exports for that period. Unit values for the items were then calculated and these unit values applied to the actual yearly quantities of each, of the selected items exported during each fiscal year 1914 to 1919. In this manner yearly totals of the items were calculated for each of the war years which are substantially lower than those shown in the official records. It is seen that if the price factor is eliminated in the crude manner described above, the adjusted figures show, instead of a steady increase in exports, an index, on the basis of the 19101914 average as 100, of 126 for the fiscal year 1915, of 121 for the following year, of 123 for the fiscal year 1917, of only 109 for the fiscal year 1918, and finally of 135 for the year ending June 30, 1919. As explained above, the f6reign 954 October 1, 1919. FEDERAL RESERVE BULLETIN. trade figures for the fiscal years 1918 and 1919 by no means disclose the total volume or value of our foreign shipments, since they are exclusive of foreign shipments for the use of the American Army and Navy. As compared with domestic exports for 1910-1914 like exports for the five war years 1914-1919 when adjusted to a prewar basis show an increase of about 23 per cent, as against 97 per cent, if no adjustment of values is made. It is but proper to add that as the result of the changed character of our European exports the percentages of the aggregate values of the selected articles to the total values of domestic exports for the fiscal years 1916, 1917, and 1918 are considerably below the average of 60.4 \)Gr cent shown for the five-year period preceding the war. i t would clearly not be safe to assume that the above percentages are indicative of the growth in volume of our total exports, but they afford sufficient proof that by far the larger portion of the extraordinary growth of our exports during the war period is the result of a raise in valuation rather than of an increase in volume. EXPORTS AND LOANS TO THE ALLIES. A table is also presented showing for the period beginning with our entry into the European War, advances by the United States Treasury to each of the Allies, month by month, together with exports to each respective country. For the'entire period covered, April, 1917, to June, 1919, the aggregate value of exports from the United. States to allied countries in Europe was 8,623.8 millions, while the advances granted to these countries during the same period totaled 9,092.2 millions. In the case of England, Belgium, and Russia the value of exports exceeded the aggregate advances, while in the case of France and Italy the advances were greater than the value of exports. The figures show conclusively that exports from the United States to European allies since America's entry into the war were made practically on the basis of credits extended by the United States Treasury to the allied powers. Domestic merchandise exported from the United States, 1910-1919. (In thousands of dollars; i. c., 000 omitted.) Cru do materials lor use in manufacturing. Value. Year ended June 30— 1910 1911 1912 1913 1914 Per cent of total exports. Foodstuffs Foodstuffs in crude condition partly or wholly and food animals. prepared. Per cent of total exports. Value. Value. Per cent of total exports. Manufactures for further use in manufacturing. Value. Per cent of total exports. Manufactures ready for consumption. "\ alue. Percent of total exports. Mis ce 11 ane ous. Per cent of Value. total exports. Total exports, value. 565,935 713,018 723,009 731,759 792,716 33.1.0 35.41 33.31 30.13 3.1.03 109,828 103,402 99', 899 181.907 137;495 6.42 5.13 4.60 7.49 5.90 267,766 309.152 348,150 408,807 374,224 15.66 15.35 16.04 16.83 16.06 499,215 598,368 672,268 776,297 72.1,90S 29.19 29.72 30.98 31.97 31.11 8,080 7,593 8,156 8,532 7,122 Total, 1910-1911. 3,520,437 Yearly average 705,287 33.10 632,531 | 126,506 ! 5.94 1,474,537 | 13.84 1.708,099 '341,620 294,908 i 16.04 3,271.056 654;211 30.71 39,483 7,896 18.80 12.55 11.76 15.37 17.19 506,993 380,638 531,806 374,978 719,716 355,862 16.74 657,923 14.02 11.85 1,191,263 19.76 1,201,439 25.24 952,776 13.10 15.40 19.13 20.58 13.47 807,460 1.998,298 2,912;577 2,185,420 2,381,801 29.73 80,827 46.77 100,307 47.25 91.672 37.43 25', 788 33.71 15,578 2.97 2.35 1.47 .44 .22 18.11 4,359,263 871,853 16.69 10,318,562 2,063,712 39.49 :314,172 i 62,834 1.20 26,128,184 5,225,637 Year ended June 30— 1015 1910 1917 1918 1919 510,456 535,952 731,990 897,324 1,215] 901 Total, 1915-1919. 3,891,083 Yearly average 778,337 259,260 2S2.017 318; 838 321,204 293,218 454,575 i 18.66 ! 8.91 599;059 | 8.54 737,795 j 6.42 1,153,702 ! 10.17 1,785,180 14.89 ,2,514.191 1 ! 0O2;838 ! 9.62 -1,730,311 916,062 . I 1 1 i , 15.16 14.01 14.69 13.23 12.59 0.47 .38 .38 .35 .31 1,710,084 2,013,549 2,170,320 2,428,506 2,329,684 .37 10,652,143 ! 2,130,429 2,716,178 4,272,178 6,227,164 5,838,652 7,074,012 October 1, 1919." 955 FEDERAL RESERVE BULLETIN. Total (foreign and domestic?) exports by geographic divisions and leading countries. [In thousands of dollars; i. c , 000 omitted.] 1910 Destination. 1914 1913 19.il Total, 19.10-191.4 1917 1918 Total, 1915-1919 1919 |= ALLIED "NATIONS. 911,795 1,526,685'2.046.81.3 1L, 995, S63:2,147,412j 8,628,568 309". 397 G28;852!l!01l'.667 883,735' 976,6971 3,870,348 A *7*7 O/WV Ai\t* 1*7" "I ^7GC *7 A O 1,788,748 496,175 184', 820 209'. 2461 36()! 608 477,899 498,210 95,391 322,941 2O'.662i 2l',848| 37; 368 772,952 11,390 37; 474j 178,695 428,688 116,705 United Kingdom Franco '1 Italy Belgium Russia (in Europe) 505.553 117', 627 53,467 4i; 117 16,790 576.6N 135;272 60,581 45,017 23,524 564,372 135,389 65,2611 oi; 388! 21,516! SJ., OL'J, 597.14S 146', I 76,285, 66.845! 25,301' ZU, Olli 594.272 2,837,960 159J8I9J 694,207 74,235! 329,829 61,220j 205; 587 117,283 •iVfKtCiV] 1 1 1 , AOO Total allied nations... AH other Europe 734. o?A 401,301 841,008 467,208 837,9201 503,807; 91.1,743 567,332 91.9,635: 4,244,866 .1,524.148 2,025.326 3.885,1A4 3,569,593 3,954,615| 15,558.826 566,864. 2,506,032 ' 147; 287 373; 979: '439,309 162,581 680,202! 2, WS, 418 1,135,9.1.5 1,308,276 , 341,733'!., 479,075; 1,480,4991 6,751,498 1,971,435 2,999,305 4,324,513 3,732,174 4,634,817,17,662,244 Total E u r o p e AMERICA. ! 215,990 242,124 20,053 209,806 273,525 22,623 329,257 290.142 23; 7-49 415,450323,7761 344,7! 71 1,575,220 282', ()70i 1,41.7,637 26,398; 117,758 300,687 251.470 24; 243 468,785: 787.177 411,194: 581,955 33; 2211 54,106 478,767! 565,954 649,118; 703.50!.; 653, >.85; 3,110,615 576.400 913,200; 1,423,238 1,550,918 1,692,834 6.156,590 Jaoan China British E a s t Iudies A l l o t h e r Asia... I 21,959 '• Its', 321. ! 9,495 I 13,087 36,72!. 19,288 11,938 17,475 53.4' 2i; 361 18.7 ' 2(V 824! 57,742 21.; 327 15,109 20;878 Total Asia Africa Oceania j 85,122 23,607 66,061 Canada L a t i n America All other America Total America 778,490 725,060 47,368 81.3.723j 3,148,862 810.695! 2,7801374 68,416' 227,354 ASIA. 60,802 18,551. 50,890 51, 24, 15, 21, 206 099 625 895 117,401: 115,050; 113,4251 ~ ' 29,089| on' nun! 27^ 07 naoi 24,0-131 902! 71,937j 79,103! 83,568. ;.l, 744,985 2,049,320 2,204,322:2,4S5.88 li2,304,579 : L0, 1 1 ! Total exports 221,106! 105,996! 70,96594, ISC 41,518 16,402 15,981 40,569 492,226 123'. 192' 351.; 55P; 114.470 28;519 77,765 74,471 130,427 25,331 37,196 24.697 37,108 154; 312| 175.519 267,641 43,477 52,293 84,018 278,611i 380,250 447,429 43,591.! 52', 733 54,299 98,776j 109,314 134,891 326 462 992i 64, 2731 1.30. 198; 840.519 205; 198 194,352 584,616 603. 925! 1,824,685 85! 157 204.299 208! 351 629'. 097 ,090; 2,~768,5S9 "333^483.6,290,048 5,919,711 7,225,084! 26,536,915 Production and exports of selected (articles: 1910-1919. Article and period. Corn, and corn meal: 1910-1914 1915-1919 1915 1916 1917 1918 1919 W h e a t a n d (lour: 1910-1911 1915-1919 1915 1916 1917 1918 1919 X o n-;.—jVigu Juno 30. Production. Exports. Bushels. 13,701.858,000 13; 882'. 571,000 2,072,804,000 2;994;793,000 2,500,927,000 3', 005,233,000 2,582,814,000 Bushels. 207,040.273 229,412', 034 50.668; 303 39; 890,928 00,753.294 49.073; 203 23; 020,810 3,487,295,000 4,106,891,000 891,017,000 1,025.801,000 030', 318,000 030;055,000 917', 100,000 524,835,308 1,200,584; 107 '332,404,976 213,117,020 203', 573,928 133;990; 150 287.438,087 •Perw-niaiu exported. 1. 50 1. 05 1.90 1.33 2.60 I 1. 00 . 89 15.05 29.23 37.31 23. 70 31.99 21.05 31.34 Article and period. Production. Exports. oOO-pound bales. jOQ-pouwd half ft. Cot ion: 65.100,173 1910-1914 44,054.287 Oi'. 779.055 31,015;285 1915-1919 10; 134,930 8,931.253 1915 . 11.191,820 0,405'. 993 1916 l i ; 449.930 5,903;682 1917 11,302', 375 4,5.87,000 1918 11,700,000 5,727,857 1919 Tons. Torts. "Bituminous coal and cola1: 1.902.918,872 75.151,633 1910-1914 2'. 293', 3-18.893 99;010.831 1915-1919 '377', 414'. 259 15,310;705 1915 395'. 200; 380 20,214,281 1916 448J 078'. 288 21,289; 941 1917 492.070;110 23,057,901 1918 579; 385; 820 19,731,943 1919 Percentage exported. 07.60 51.17 do. 35 57. 24 52. 08 40. 58 48.95 3. 95 4.34 4.06 5.11 4.75 4.68 3.41 oi: production relate to the calendar year preceding the yearly period indicated; figures of exports relate to the year ending 956 October 1, 1919. FEDERAL RESERVE BULLETIN. Domestic exports of selected articles from the United Slates, 1910-1914 and 1915-1919, ivith adjustment for increase in prices. [In thousands of dollars; i. e., 000 omitted.] Article. Average annual value, 1910-14. BreadstuiTs: Barley Corn Oats Wheat Wheat Hour live Cattle Coal: Anthracite Bituminous Copper: Pigs, ingots, bars, plates, and old Cotton: Upland. Cloth, bleached Cloth, unbleached Iron and steel: Wire, barbed and other Cut nails , Wire nails and spikes , Locomotives , Steel rails LeatherSole Boots and shoes Lumber: Boards,planks,deals,scantlings,clc Meat and dairy products: Bacon '. Lard Hams and shoulders Beef, fresh Beef, canned Butter Cheese Condensed milk Oils: Cottonseed Mineral, refined Miscellaneous: Sugar, refined Tobacco, leaf Fertilizer Turpentine Total Index number.. Average computed annual value, 1915-19. Average actual annual value, 1915-19. 1915 1916 1917 1918 1919 17,123 30,735 38,724 251,854 77,517 8,782 451 17,583 24,077 38,368 168,076 74.346 10.172 1,752 10,484 40,774 35,578 145,336 57,207 9,282 1,102 16,822 25,829 42.335 33;095 104,805 8,393 1,499 13,093 10,513 38,544 173,226 115,870 19,278 3,485 15,021 26,386 38,710 154,317 85,949 11,181 1,658 25,443 48,926 65,222 270,522 157,666 25,853 1,474 18,183 34,455 114,880 18,962 36,177 96,156 19,972 47,063 101,011 23,870 49,030 145,010 24,936 52,841 132,297 22,073 45,562 78,082 21,963 46,135 110,511 25,258 59,505 190,081 549,733 2,590 13,488 548,382 4,065 10,868 384,059 5,852 12,170 384,657 7,770 10,831 289,025 11,047 6,811 340,376 7,763 6,713 389,300 7,299 9,479 563,678 J3.382 16,608 9,823 342 2,230 4,119 11,549 14,471 112 2,609 2.555 4; 688 30,359 188 6,054 8,116 15,763 26,875 196 5,866 14,280 17,404 17,470 221 5,124 14,101 12,599 18,931 148 4,417 8,955 18,225 21,621 173 4,814 9,602 13,736 37,818 342 9,043 19,222 21,606 8,568 15,788 50,687 16,389 22,015 25,901 17,787 35,977 26,859 20,41.6 28,369 23,778 5.191 20', 749 24,372 18,915 29,712 24,600 15,739 28,564 25^ 102 27,327 38,786 35,327 23,205 52,098 21, 787 3,100 , 1,111 1,013 | 696 i 1,277 44,033 52.309 26', 685 17,896 8,879 " 2,335 7,862 3,016 73.636 46', 971 36,969 24,277 5,995 3,196 6,304 12,926 84,728 48,925 34,932 20,704 7,969 6,360 9,379 20,990 103,542 43,176 54,964 38,853 11.486 4,203 6,291 42,829 157,422 79,814 87.488 34', 882 12,802 7,996 2,669 59,028 92,672 54,239 48,208 27,322 9,426 4,818 6,501 27,758 168,673 97,144 86,440 44,700 22,543 7,486 9,530 4.1,787 18,119 113,436 21,331 138,368 17,856 155,021 10,64.7 174,799 6,752 169,454 11,974 160,989 13,712 159,726 23,908 227,370 2,968 44,686 10,735 9,302 23,058 4.0,020 2,987 4,921 68,466 50,194 3,536 4,841 52,454 46,740 24,212 33,210 2,097 2,649 46,866 71,910 2,887 4,193 43,011 48,415 2,994 4,240 60,486 83,371 6,288 4,379 5,073 2.5,231 3,345 55,063 53,127. 598' 7,212 3,46J 4,598 1,287,617 1,622,236 j 1,555,792 1,584,801 1,399,230 ! 1,739,401 1,580,308 2,537,194 100 125.9 ] 120.8 123.1 108.6 I 135.1 122.7 197.0 Total value of exports of articles listed above Total value of all exports p t value of articles listed to total Percentage of aggregate exports. Values computed on the basis of 1910-14 average prices. Annual average 1910-1914 1915 1916 1917 1918 1919 $1,287,617 §2,130.429 60.4 81,603,866 $2,716,178 59.0 SI, 778,140 §4,272,178 41.6 82,430,419 88,227,164 39.1 82,871,684 §55,838,652 49.2 $3,995,863 87,074,012 56.5 Annual average 1915-1919 S2,537, .1.94 85,225,637 48.6 957 FEDERAL RESERVE BULLETIN. October 1, 1919. Advances to the European allies and exports to the respective countries, April, 1917, to June 30, 1919. [In millions of dollars; i.e., 000,000 omitted.] United Kingdom.. France. AdAdvances vances from Exports from United from United States United States Treas- States. Treasury. ury. Belgium. Italy. liussia. AdAdAdvances vances Im- vances Exports from Exports from from ports from from United from United United United Stales United States United Slates States. States. TreasTreas- States. Treasury. ury. ury. Exports from United States. All other European allies.* Total exports from Total advances United Adto allies States vances Exto allied in from i ports Europe. countries Unitcdl from in States! United Europe. Treas- States. ury. 1917 April. May.. Jurie.. Total.. July August September.. October November.. December.. 200 200 160 173.2 ITS. 6 160. 7 100 110 95.7 89.8 91.9 580 512.5 210 280.4 '210 235 185 235 21 o 220 J20.8 176. -1 131.1 182.6 150.2 181.5 160 160 160 330 150 1(50 61.2 52.1 76.4 7-1.6 62.3 73.8 250 ISO 2L0 160 245 170 167.1 151.3 208.1 173.5 176.6 172.0 125 60 90 95 125 30 106.0 55.4 81.2 78.5 92.6 70.5 2,515 ! 1,991,2 1, -145 34.4 24.4 34.6 1.6 2.2 200.0 407.5 277.5 333.1 328.1 333.8 12.0 93.4 3.8 885.0 995.0 o.o 4.7 6.4 14.9 15.6 34.5 40.2 32.8 2.1.3 1.7 .7 .1 1.1 452.5 488.0 401.0 485.7 446.9 497.0 308.7 286.4 349.5 300-4". is 15.0. 435.2 260.0 312.5 298.5 4] 4.0 243.1 325.9 252.9 338. (1 295.7 323.3. 288.2- 0.8 29.0 33.7 41.0 7.5 7.5 .100 103.7 15.0 30 30 30 65 40 105 20.4 '10.1 34.0 52.4 48.6 46.1 9.5 10.5 12.0 8.9 12.0 50 20 10 40 30 30 41.9 38.2 36.4 38.8 44.2 36.6 2.5 2.5 13.0 11.7 52.5 15.0 42.2 33.0 1 .5 1.5 1918. January.. February March...' April Hay. June. r | i ! Total. July August September.. October.... November.. December.. 814.6 ! 480 90 225 207 89 110 186 160.5 .166.3 187. -1 149.0 164.2 185.6 20 25 165 40 72.0 87.8 84.6 81.8 51.3 67.3 50 176.5 165.9 132.3 191.0 173.9 294.8 91.1 20 220 135 55 25 3.2 9.0 8.0 12.9 j 4.1 9.4 i i 99.1 '. 90.5 I 187.7 152.9 j 120 30 45 226 90 85 38.3 36.4 46.7 43.0 42.6 49.5 26.9 3.0 5.2 17.9 18.4 31.5 26.3 i 10.9 8.4 25.6 13.5 19.1 66.3 93.0 91.2 110. 1 57.4 123.3 120 79 88.5 40 42 10 50.7 38.2 37.0 35.8 37.0 42.0 24.4 30.9 20.6 13.0 21.0 8.8 22.1 28.0 38.0 59.3 35.8 36.3 979.1 975.5 497.2 22.1.6 323.3 1.2 i .2 6.3 2.3 .3 .1 4.1 1-4 I 7.6 j 1.2 .2 3.0 1.5 "i.T i 4,734.4 j 3,602.9 343.1 278.2 282.2 499.1 264.0 388.9 298.8 307.7 330.8 299.7 275.1 326.2 1.2 5.6 "".4 4.9 .5 4.6 9.8 4.1 15.4 4.8 15.5 18.3 18.5 16.9 4.0 3.1 3.2 5. 7 2.7 3.1 4.6 290.3 145.4 407.4 324.5 194.9 54.8 323.6 328.8 308.8 408.7 311.3 506.4 52.6 86.2 26.3 3,472.8 4,025.9 885.0 995.0 7.6 3.0 4,734.4 3,602.9 1919. January., 'February. March..1. April Hay Jmic Total 60 118 60 | 1,202 2,147.4 087.5 APIT ULATION. Total, A p r i l - J u n e , 1917 560 Fiscal year ending J u n e , 1918. . , . , . . . . . . . , . . 2,515 Fiscal year ending .June, :j 1919 1 9 1 9 : . , , . . , : . . - 1,202 Total 512.5 280.4 100.0 103.7 15.0 1.2 1,994.2 884.6 480.0 477.7 99.1 90.5 187.7 152.9 2,147.4 979.1 975.5 497.2 221.6 323.3 ,,,.... 52.6 86.2 26.3 3,472.8 4,025.9 1,078.6 335.7 415.0 | 187.7 i 298.9 93.8 33.1 9,092.2 8,623.8 i 4/277 ,4 ,654.1 1 93.4 Serbia,. ^?5Qlip-SJoya\aa, R o u m a n i a , Liberia-, Greece. 958 FEDERAL RESERVE BULLETIN. Certificates of Indebtedness. The Secretary of the Treasury, on September 8, 1919, addressed the following letter to all banks and trust companies in the United States: SEPTEMBER 8, 1919. DEA.it SIR: The third semimonthly issue of Treasury certineates of indebtedness, Series C 1920, in pursuance of the program outlined in my letter of July 25, 1919, was, in accordance with the announcement made on August 25, 1919, offered without asking the ban king institutions of the country to subscribe for any specified quota. The Treasury felt confident that these certificates could be sold in amounts more than sufficient to meet the reduced needs of the Government without assigning the usual quota to individual banking institutions. This confidence was amply justified by the event. The certificates of Series G 1920 were dated September 2, and subscriptions closed on September 3, the following day. The aggregate amount of certificates of this series subscribed for and allotted was 8578.841^500, a sum greater by about 840,000,000 than the amount subscribed for either of the two preceding issues, each of which had definite quota assignments and remained open a week after the date of issue. This aggregate was in excess of the immediate requirements of the Treasury, but allotment was nevertheless made in full upon all subscriptions made on the date of issue and the day following, in order not to disappoint those subscribers who had presented their subscriptions with reasonable promptness; and the opportunity was taken to redeem on September 15 the certificates of Series V K, maturing October 7, 1919 (the last of the certificates issued in anticipation of the Victory loan). The redemption of these certificates should" have a beneficial effect in connection with the large payments of income and profits taxes due on September 15. The aggregate amount of Treasury certificates of indebtedness still outstanding on August 30 of the several series maturing or called for redemption on September 9 and 15, 1919, was 81,799,041,500. this entire'sum (which has since been reduced by exchanges and cash redemptions) is provided for from cash in bank and income and profits taxes due September 15, leaving an ample balance in the general fund." There remain no maturities of certificates to provide for prior to 1920, as the certificates maturing December 15 are more than covered by the income and profits tax installment due on that date. In the month of August just past ordinary and special disbursements exceeded ordinary receipts by less than $500,000,000. In September, because of the income and profits tax installment payment, ordinary receipts should exceed ordinary and special disbursements'by approximately 8500,000,000. The success of recent issues of Treasury certificates, the fortunate cash position of the Treasury at the moment, and the reinvestment demand which will result from, the payment of so large an amount of certificates on or before September 15 create a situation which should be availed of to make an important step forward in financing the debt growing out of the war. In my letter of Juiv 25, above referred to, I indicated that the Treasury certificate program might be varied at opportune times by the substitution of issues of tax certificates. This obviously is an opportune time, and accordingly the Treasury is offeringtwo series of so-called tax certificates, both dated September 15, 1919, Series T 9, maturing March 15, 1920 and bearing interest at the rate of 4} per cent, and Series T 10, maturing September 15, 1920, and bearing interest at the rate of 4J per cent, payable semiannually. It is not pos- October 1, 1019. sible to say definitely when semimonthly issues of loan certificates will be resumed nor upon what terms they will be issued; but such issues will certainly not be resumed before October 15, and the minimum amount offered should not exceed §250,000,000. In view of the important fact that now for the first time in over a year certificates (of Series T 9, maturing Mar. 15) are offered at a lower rate than 4J per cent, I deem it proper to say that, if hereafter certificates maturing on or before'March 15, 1920, should be issued bearing interest at a higher rate than 4) per cent, certificates of Series T 9 will be accepted at par with an adjustment of accrued interest in payment for certificates of such series which may be subscribed for and allotted. I hope that each and every banking institution in the United States will not only subscribe liberally for one or both issues of the certificates now offered but also will use its best endeavors to procure the widest possible redistribution of such certificates among investors. The certificates, although acceptable in payment of income and profits taxes payable at maturity, are, as you know, payable in cash when they matnre"and should make a wide appeal to investors generally because of their valuable exemptions from taxation and attractive maturities. The success of these issues will bean important advance in the process of financing the war debt in such a way as to avoid the necessity for great refunding operations, by spreading maturities and meeting them, so far as may be, out of tax receipts. Incorporated banks and trust companies which are not qualified depositaries are urged to become such in order that they, like others, may participate in the temporary deposits growing out of these issues. The patriotic, loyal, and enlightened support which the banking institutions of the country gave to the Treasury during the darkest days of the war and continued through the perhaps more difficult period after the cessation of hostilities,' when war expenditures were at their peak, justifies the Treasury in addressing to them this confident appeal now that the turn of the tide has come. Conversion of 4 Per Cent Coupon liberty Bonds. The following circular was issued by the Treasury Department under date of September 8, 1919: To holders of 4 per cent gold bonds of 1927-1942 of the second Liberty loom, and 4 per cent gold bonds of 1932-1947 of the first Liberty loan converted: Under the provisions of Treasury Department Circular No. 137, dated March 7, 1919, as'amended and supplemented June 10, 1.919, the privilege of converting 4 "per cent bonds of 1927-1942 of the second Liberty loan and 4 per cent bonds of the 1932-1947 of the first Liberty loan converted into 4|- per cent bonds was extended for the period beginning March 7, 1919, and ending on such date as may be fixed by the Secretary of the Treasury on six months' public notice. This extension of the conversion privilege is now in force. Pursuant to its terms, 4 per cent Liberty bonds presented for conversion are deemed, for the purpose of computing the amount of interest payable, to be converted on the semiannual interest payment date next succeeding the date of presentation for conversion, and interest is payable at the rate of 4 per cent per annum to such next succeeding semiannual interest payment date. Accordingly, when coupon bonds are presented for conversion, all coupons maturing on or before such next succeeding interest payment date must be detached and collected in ordinary course when due, and the coupon bonds issued upon conversion bear interest at the* rate of October 1, 19.19. FEDERAL RESERVE BULLETIN. 4J per cent per annum only from such semiannual interest payment (-ate. In other respects, the respective coupon bonds issued upon conversion are identical with the coupon bonds issued upon conversion of 4 per cent bonds before the original conversion privilege expired, on November 9, 1918. Notwithstanding the extension of the conversion privilege, approximately 8750.QOQ,.000 lace amount of 4 per cent Liberty bonds in coupon form remain outstanding unconverted. Of these coupon bonds, the second .Liberty loan 4 per cent bonds have no coupons attached for interest accruing after November 15, 1919, and the first Liberty loan converted 4 per cent bonds have no coupons attached for interest accruing after December J5, 1919. On and after said dates, respectively, these bonds are exchangeable, according to their terms, for like bonds with all subsequent coupons attached, but if presented, for conversion before said dates, the bonds issued, upon conversion will bear interest at the rate of 41 per cent per annum from said dates, respectively, sjid. like other 41 per cent coupon ; Liberty bonds now outs Landing issued upon conversion of i 4 per cent bonds, will have no coupons attached for interest accruing after Hay 15, 1920, and June 15, 1920, respectively. On and after said dates, respectively, the 4i per cent bonds so issued will be exchangeable, according to their terms, for like bonds with all subsequent coupons attached, li, on the oilier hand, the 4 per cent coupon bonds now outstanding are not presented for conversion until November 15, 1919, and December 15, 1919, respectively, the bonds issued upon conversion will not begin to bear'interest at 4} per cent per annum until ^Fay 15, 1920, and June 15, 1920, respectively, and will have no coupons attached. The 4^ per cent bonds so issued will likewise be exchangeable on and after said dates for like bonds with all. subsequent coupons attached, but holders of 4 per cent bonds" so surrendered who receive only such 4^ per cent bonds will have received no coupon covering the 4 por cent interest accruing on their bonds after November lo, 1919, and Dec-ember 15. 1919, respectively. Holders of 4 per cent coupon bonds of the second Liberty loan and of the first; Liberty loan converted who iail to present their bonds lor conversion before .November 15, 1919. and December 15, 1919. respectively, could secure for themselves the coupons covering the 4 per cent iTitercst accruing after eaid dates to which they might be entitled by exchanging their 4 per cent bonds for like bonds with all subsequent coupons attached, and then converting the bonds so received into 4J per cent bonds. This procedure, however, would put such holders of 4 per cent coupon bonds to the inconvenience, first, of exchanging their 4 per cent bonds for like bonds with all subsequent coupons attached, then of converting such 4 per cent bonds into 4-1- per cent bonds without coupons attached., and, finally, of exchanging such 4J per cent bonds for like bonds with all subsequent coupons attached, and would at the same time impose upon the United Stales the imnocessaiy expense of engraving and preparing 4 por cent bonds with all subsequent coupons attached. In order to avoid expense to the United States and inconvenience to holders of 4 per cent coupon Liberty bonds, and in order to make the necessary provision for the payment of the 4 per cent interest accruing after November 15, 1919, and December .15, 1919, respectively, OIL the coupon bonds surrendered, the following rules and regulations are hereby prescribed governing1 the exchange and conversion of 4 per cent coupon bonds of the second Liberty loan and of the lirst Liberty loan converted: 1. Holders of 4 per cent coupon bonds of the second Liberty loan and of the first Liberty loan converted who desire to avail themselves of the conversion privilege should* present them for conversion promptly, before 959 November 15, ."1919, and December 15, 19.19. respectively, and in that event will be deemed to present their bonds for conversion only and will receive upon such conversion bonds bearing interest at 4£ pov cent per annum from November 15, 1919, and December 15. 1919. respectively, with coupons attached covering interest to May 15. 1920, iViid June 15, 1920. respectively. The 4} per cent bonds issued upon such conversion will be exchangeable by their terms on and aiter May 15. 1920. and June 15, 1920, respectively, for 4~l per cent bonds with ail subsequent coupons at t a oh ed. 2. Holders of 4 per cent coupon bonds of the second Liberty loan and of the first Liberty loan converted who desire to avail themselves oC the conversion privilege but neglect to present their bonds for conversion before November 15, 1919, and .December 1.5, 1919, respectively, should temporarily retain their 4 per cent coupon bonds und! the Treasury Department announces that the 4|- per cent coupon bonds of the second Liberty loan and oi" the jirst Liberty loan converted with coupons attached covering interest to maturity are available for delivery (which, it is expected, will be about Mar. 15, 1920), and then present their 4 per cent bonds promptly for conversion ai-d exchange into such 4\ per cent; bonds. All 4 per cent coupon Liberty bonds presented on or after November 15, 1919, and December 15. 1919, respectively, for exchange into bonds with all subsequent coupons attached will, unless otherwise expressly indicated "in writing by the holder, be deemed to be presented for conversion into if per ce/it bonds, as well as for exchange, and will bo held m suspense pending the date when the 41 per cent bonds with, all subsequent coupons attached shall be available for delivery. With the 44 per cent coupon bonds issued upon such conversion and exchange of 4 per cent bonds, holders of the surrendered 4 per cent bonds will receive either a special coupon or an interest check, as the Secretary of the Treasury in his discretion may prescribe, payable on the appropriate interest payment 'date and covering the interest at 4 per cent per annum to which they may be entitled up to the interest payment date from which the new bonds begin to bear interest at 4;}percent per annum. 3. After November "15, "1919, and December 16. 1919, respectively, 4 per cent bonds of the second Liberty loan and of the first liberty loan converted, with all subsequent coupons attached, will be issued in exchange for the 4 per cent bonds for which, they are expressed to bo exchangeable, if specifically requested, but it is not expected that they will be available for delivery before 2-.«arch 15. 1920. In view of the extension of the conversion privilege. of which it is assumed all holders of 4 per cent Liberty bonds will desire to aval! themselves, the work of preparing the 4 per cent bonds with all subsequent coupons"attached has been subordinated to the work of preparing the •- J per cent bonds with all subsequent coupons attached. Important.—The 4 per cent registered bonds oil the second Liberty loan and of the fii-ot'Liberty loan converted are in permanent form and need not be exchanged for other bonds. Holders of 4 per cent coupon bonds now outstanding are. therefore, strongly urged to present their coupon bonds for exchange into registered bonds instead of' for coupon bonds with all subsequent coupons attached, and in that event will promptly receive registered bonds upon exchange. Holders of such 4 per cent coupon bonds who present them, for conversion &s well as for exchange into registered bonds will promptly receive registered 4J per cent bonds, bearing interest at 4-} per cent per annum from the interest payment date next succeeding the date of presentation for conversion, in accordance with the terms of the extended conversion privilege. Any 4 per cent interest accruing after November lo, 1919. and December 15; 960 October 1, 1919. FEDERAL RESERVE BULLETIN. 193 9, respectively, to which the holders of such bonds so Fiduciary Powers Granted to .National Basiks. surrendered for exchange into registered bonds may be entitled, will be paid to the holders by check. The applications of the following banks for The coupon bonds without coupons attached presented for exchange or conversion under the provisions of this permission to act under section 11-k of the circular must be exchangeable by tltfJ'ir terms for like Federal Reserve Act have been approved by bonds with all subsequent coupons attached. the Federal Reserve Board during the month Rules and regulations governing the exchange of coupon of September, 1919: liberty bonds for like bonds with ,all subsequent coupons attached, with appropriate formpj will be prescribed in DISTRICT NO. 1. due course in a further Treasury Department circular which will shortly be announced. The Secretary of the Treasury may withdraw or amend Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and comat any time or from time to time any or all of the promittee of estates of lunatics: visions of this circular. Boylston "National Bank, Boston. Mass. Marthas Vineyard National Bank, Tisbury, Mass. DISTRICT No. 2. Commercial Failures Reported. Trustee, executor, administrator, registrar of stocks and Continuing their remarkably favorable ex- bonds, guardian of estates, assignee, receiver, and comof estates of lunatics: hibit, commercial failures in the United States mittee National Bank of Orange County, Goshcn, N. Y. during three weeks of September, as reported Boonton National Bank, Boonton, N. ,1. to R-.'G. Dun & Co., number only 312, against Trustee, executor, administrator, guardian of estates, 438 in the corresponding period of 1918, when assignee, receiver, and committee of estates of lunatics: Gotham National Bank, New York, N. Y. the business mortality was relatively moderMerchants National Bank of the City of New York. ate. The statement for August, the latest month for which complete statistics are availDISTRICT NO. 3. able, discloses 468 insolvencies for §5,932,393, the numerical showing being the best, excepting Trustee, executor, administrator, registrar of stocks and that of July, this year, of any month on record, bonds, guardian.of estates, assignee, receiver, and comand the indebtedness the smallest of all months mittee of estates of lunatics: National Bank of Gerrnantown, Philadelphia, Pa. in nearly two decades, aside from the $5,507,010 of July of this year. When the August returns DISTRICT NO. 4. are separated according to Federal Reserve districts, it is seen that only in the sixth district Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and comis there any increase in number of defaults over of estates of lunatics: those of the same month last year, while the mittee First National Bank, Grccnsburg. Pa. second and sixth districts alone show larger Union National Bank, Pittsburgh. Pa. liabilities. National Bank of West Virginia, Wheeling, W. Ya. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver: National Exchange Bank, Steubenville, Ohio. Failures during August. Number. Liabilities. DISTRICT No. 5. Districts. 1919 First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth Eleventh... Twelfth.... Total, 1918 105 34 73 31 41 135 23 38 20 46 468 720 1919 8518.505 1.615; 398 '436,387 321.764 141,410 705,852 1918 S623,602 3,079,013 1,588,169 560,510 1,225,745 398,200 495,234 1,342,282 124,281 374,466 184,171 298,340 5,932,393 7,984,760 118,392 50.210 141',370 249,603 554,489 Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Commercial National Bank, Charlotte, N. C. DISTRICT NO. 7. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics : Manufacturers National Bank, Rockford, 111. First National Bank, Elkhart, Ind. City National Bank, Lqgansport, Iowa. First National Bank, West Bend, Wis. 961 FEDERAL. RESERVE BULLETIN. October 1, 1919. DISTRICT NO. 10. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: Grand Valley National Bank, Grand Junctioji, Colo. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, and receiver: Citizens National "Dank, Fort Scott, Kans. DISTRICT NO. 12. Trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, and committee of estates of lunatics: First National Bank, Fairbanks, Alaska. Capital. : Surplus, j Total District No. 9. Central Savings Ban]?:, Sault Sto Mario, Mich : 100,000 Farmers Stale Bank of "Waconia, Wa25.000 conia, Minn 25' 000 South Shore Bank', South Shore, S. T)ak. State Bank of La Orosso, La Crossc, "Wis. 100,000 20,000 075,200 8. 500 3,500 50,000 446,237 252,134 2,067,022 District No. 12. Ocean Park Bank, Santa Monica, Calif.. 100,000 ! 1,053,290 Tlio JJankof St. Helena, St. Helena, Calif. 75,000 j 20,500 754,174 Italian American Bank, San Francisco, j Calif 11,000,000 142,500 11,135,353 Citizens State Bank, Stanwood, Wash, .j 25,000 ; 2,500 27,644 CHANGES OY NAMES. Acceptances to 100 Per Cent. Since thoissuanco of the September BULLETIN the following banks have been authorized by the Federal Reserve Board to accept drafts and bills of exchange up to 100 per cent of their capital and surplus: New Bedford Safe Deposit & Trust Co., New Bedford, Mass. Union National Bank, Pittsburgh, Pa. National Bank of Commerce, Kansas City, Mo. Central National Bank, Cleveland. Ohio. Henderson National Bank, Iluntsville, Ala. Citizens Trust Co., Savannah, Ga. Canal-Commercial Trust & Savings Bank, New Orleans, La. The Chicago Savings Bank & Trust Co., Chicago, 111., to Chicago Trust Co. The Metropolitan Bank, New Orleans, La., to Pan-American Bank & Trust Co. The announcement in the September BULLETIN" of the change of name of the City Savings Bank & Trust Co., Alliance, Ohio, to Citizens Savings Bank & Trust Co., was in error. WITHDRAWALS FROM MEMKKKSIIIP. The Citizens Bank & Trust Co., Athens, Ala. The Lake Providence Bank, Lake Providence, La. The City Bank & Trust Co., New Orleans, La., has merged with the Whitney Central Trust & Savings Bank oi New Orleans, and has surrendered its stock in the Federal Reserve Bank. Election of Directors, The Federal "Reserve Board has notified Federal Reserve agents that groups for the election of Class A and B directors this year be selected on the same basis as prescribed by State Banks and Trust Companies • Admitted, the Board last year. The Board has desigTuesday, .November 18, 1919, as the The following list shows the State banks nated date for opening the polls. and trust companies which have been admitted to membership in the Federal Reserve Systoni New National Basak Charters* during the month of September. One thousand one hundred and sixteen The Comptroller of the Currency reports State institutions are now members of the the following increases and reductions in the system, having a total capital of $391,150,946, number of national banks and the capital of total surplus of §426,685,710, and total re- national banks during the period from August sources of $8,695,205,149. 30, 1919, to September 26, 1919, inclusive': Capital. District No. 2. Elizabethport Banking Co., Elizabeth, N. J $213,787 Surplus. Total 850,000 84,410,095 District No. :•,. Lowistown Trust Co., Lewistown, P a . . . District No. 4. The Security Bank, Portsmouth, Ohio . The Pearl Street Savings & Trust Co., Cleveland, Ohio The Orrville Savings Bank, Orrville, Ohio District No. 6. Citizens Trust Co., Savannah, Ga District No. 7. State Bank of Caledonia, Caledonia, Mich District No. 8. Columbia County Bank, Magnolia, .Ark Citizens Bank, I)yersburg, Term 12"), 000 25,000 731,186 .150,000 250,000 2,315,407 600,000 400,000 14,127,455 50,000 45,000 200,000 50,000 9] 8, 57:$ 25,000 14,000 470,043 50,000 50,000 11,500 50,000 569,271 868,281 Banks. .New charters issued to 19 With capital of §725,000 Increase of capital approved for * 29 With new capital of .1 1, 760, 000 Aggregate number of new charters and banks increasing capital 48 With aggregate of new capital authorized 2, 435, 000 Number of banks liquidating (other than those consolidating with other national banks under the act of June 3, 1864) 9 Capital of same banks 340,000 Number of banks reducing capital 0 Reduction of capital 0 Total number of banks going into liquidation or reducing capital (other than those consolidating: with other national banks under the act of June 3, 1864) 9 Aggregate capital reduction 340,000 1 Includes two increases of capital aggregating $200,000 incident to consolidations under the act of November 7, 1918. 962 October 1, 1019. FEDERAL RESERVE BULLETIN. Consolidation of national banks under the act of Nov. 7, 191.8 Capital The foregoing1 statement shews the aggregate of increased capital for the period of the banks embraced in statement was Against this there was a reduction of capital owing to liquidation (other than for consolidation with other national banks under the act of June 3, 1864) and reductions of capital of Net increase 2 800,000 2, 485, 000 340, 000 2, M5,000 Foreign Branches. A list of branches of national banks and international and foreign banks, doing business under agreement with the Federal Reserve Board, which have opened for business recently, is given below: National City Bank, New York City: Colon, Cuba. Placetas del Norte. Cuba. International Banking Corporation, New York City: Lyons, France. Sanchez, Dominican Republic. Mercantile Bank of the Americas, New York City: New Orleans, La. Affiliated institution: Banco Mercantil Americano de Colombia— Bucaramanga, Colombia. Crop Statistics, by Federal Reserve Districts., Forecasts of corn production as of September 1 arc above those of a month earlier, while forecasts of wheat, oats, and hay production are lower on September 1 than on August 1. The decrease in the wheat forecast is due largely to a smaller expected yield of spring wheat in the Minneapolis district, while the largest increase in forecasted corn production is in the Chicago district. It appears that corn production will be about 275,000,000 bushels in excess of last year's crop, while the wheat crop will be only 6,000,000 bushels greater than, a year ago. According to present indications the production of oats will be over 300,000,000 bushels lower than last year, this year's crop being the smallest since 1914. The hay crop, on the other hand, is expected to be 13,000,000 tons in excess of the 1918 production. Acreage and production of corn, wheat, oats, and hay in Federal Reserve districts and in the United States, 1919 and 1918. [In thousands of units of measurement.] ! J District Total for ! Tola! for District District District Disirict 45— • 1 — United i lOdis2 --Now PhilaRichCJ eveStates, i tricts. Boston. mond. delphia. laud. District District | District District'. 9— \ 12—San 7—Chi- 8—St. Minne| Francago. Louis. apolis. ; cisco. j ! Acreage: i 78, 701 1919 i 102,077 91,230 1918 j 107,494 Production (bushels): j Forecast as of Aug. 1,1919. 2,788,378 2,213,833 Forecast as of Sept. 1,1919. : 2,857,692 12,285,382 Estimated., 1918"....: 2, 582,814 2,266,195 188 202 951 967 1,533 1,545 9,430 9,094 9,273 39,923 40,141 35,604 65,542 66,547 59,805 45,888 41, 445 32 41 593 497 1,523 1,344 593,641 580,639 669,928 767 764 902 12,509 12.509 8,979 25,836 25,836 22,312 334 i 332 ; 1,149 1,339 8,803 8,745 14,964 15,191 15,366 16,726 7,235 i 6,811 j 270 255 192,440 I 205,393 246,533 843,122 369,857 233,060 | 203,618 1 198,884 ! 246', 448 897,618 377,951 I 236', 708 j 184,232 I 205,689 j 253,494 895,138 372,977 I 241; 402 8,533 8,373 8,581 5,273 I 5,412 I 24,178 35,346 "WHEAT. Acreage: 1919 71,526 1918 59,110 Product ion (bushels): I Forecast as of Aug. 1,1919.1! 940,381 Forecast as of Sept. 1.1919. 923,350 Estimated, 1918 '. 917,100 2,954 2,853 59,288 59,253 52,012 3,678 3,5Q5 1,268 1,168 41.237 40, 754 12,022 1.2,022 11,710 7-18 764 j 2,432 22,002 ! 69,600 20,742 ! 68,394 29,773 i 101,356 1,211 1,238 25,747 25,393 28, 111 1,317 ! 14,118 ! 2,438 1,497 14,923 I. 2,597 26,456 j 453,249 j 70,474 25,833 438,683 ' 67,019 30,860 640,005 ! 77,486 5,166 3, 766 7,357 j 17,477 ! 5,680 ! 17^551 ! 5,840 4,980 86,287 103.537 ! 146,980 ;105,178 86,287 103,537 j 134,473 ! 104,721 74,585 101,837 281,025 j 75,812 OATS. Acreage: 31,754 42,365 1919 35,661 1918 j 4; -100 ! Producti on (bushels): 985,541 6,401 Forecast as of Aug. 1,1919. jl, 266, Forecast as of Sept. 1. 1919.1,224,815 944,732 Estimated, 1918?....'. 1,538,359 1,342.577 11,882 !'• 29,905 12,004 27,412 13;280 ; 54; 811 9,285 9,333 1,154 1,206 235,753 218,582 329,045 40,473 40,670 37,850 5,626 5,762 12,285 12,394 6,370 6,207 18,841 I 7,44.3 18,010 !• 7,398 16,344 6,500 18,704 14,994 14,304 12,352 12,373 10,574 HAY. Acreage: 19i9 1918 Production (ions): Forecast as of Aug. 1,1919. Forecast as of Sept. 1,1919. Estimated, 1918 69,719 71,254 54,494 59,041 3,700 '" 3,631 i 4,658 4,658 2,226 !. 2,226 j 4,397 3,28S 3,287 3,723 j 12,618 3,744 ! 12,735 110,876 103,544 90,443 87,353 81,862 75,208 4,849 : 4,835 i 4,393 ! 6,956 6,862 5,847 3,157 i 3,013 i 3,116 I 4,391 4,286 4,203 4,651 4,372 3,805 6,009 5, 719 6', 122 October 1, 191.9. FEDERAL RESERVE BULLETIN. 983 deposit liabilities of the national bank in computing its reserve. This custom no doubt grew out of the fact that national banks were originally required to carry reserve against circulation as well as against deposits. Computation of reserves. in the case of individual deposits, however, The Federal Reserve Board has issued the the same rule was not applied—that is to say, following ruling, under authority granted to it if a corporation had on deposit the sum of in section 19 of the Federal Reserve Act, upon § 1.0,000 and the depositary bank held the dethe two questions presented below: | mand note of the corporation for §6,000, the 1. In figuring reciprocal balances should the bank was never permitted to deduct the dedollar balances due to foreign banks be offset mand note from the deposit liability in comby foreign currency balances due from same puting its reserve. This practice of the comptroller's office in drawing a distinction between banks ? 2. For the purpose of figuring reserve re- bank deposits and individual deposits was quirements, should foreign currency balances ratified by statute when the Federal Reserve due from foreign banks be used, as a deduction Act was passed. The language of the statute from "duo to" bank balances the same as due is as follows: from banks in this country ? In estimating the balances required by this act the net Section 19 of the Federal Reserve Act difference of amounts due to and from other banks shall requires each member bank to maintain a be taken as the basis for ascertaining the deposits against which required balances with Federal Reserve Banks shall fixed reserve against demand and time de- be determined. posits. For the purpose of computing reThe question submitted, therefore, involves serves, demand deposits are divided into twor general classes, viz, (a) Individual or ordinar} an interpretation of this language. In reaching a conclusion it is necessary to determine: deposits. (?>) Bank deposits. 1. Did Congress intend to treat balances due Balances due to other banks have been treated as deposit liabilities regardless of how to foreign "banks as deposit liabilities ? 2. If so, did it intend to permit balances due these balances are created. In general, a balance due to another bank may be treated from foreign banks to be deducted as bank in one of two ways: (a) The funds may be balances ? If balances due to foreign banks arc not to placed with the depositary bank by another bank for exchange purposes; that is to say, be treated as deposit liabilities the question with a view of using these funds as a checking arises whether they are subject to reserve reaccount; or (6) the depositary bank may quirements. If they are not treated as deposit receive from another bank items for collection liabilities they would probably have to be and remittance and the balance due to another classified as money borrowed, in which event bank may consist of funds which are not to thov would be subject to limitations of section bo drawn against but which are to be remitted 5202. Assuming that these balances are pajrable in at a later date. Prior to the passage of the Federal Reserve dollars at the banking house of the depositary Act the office of the comptroller without any bank in the United States, it would seem, clear express provision of law made a distinction that they conform to the requirements of debetween ordinary deposits and. bank deposits posit liabilities and should be treated as such, in that in the case of bank deposits in comput- it is not entirely clear, however, that they ing reserves the depositary bank was permitted come in the category of balances due to other to deduct balances due from other banks from banks. In other words, the question arises balances due to other banks, and to treat as a whether the language "other banks'' as used deposit liability only the net balances due to in the statute refers to banks organized under other banks. This custom has prevailed for the laws of the United States, or under the many years. It was likewise customary for laws of a State of the United States, or whether the comptroller's office to permit national-bank it is intended to include foreign banking notes of other banks to be deducted from the corporations. Below are published rulings made by the Federal Reserve Board which are believed to be of interest to Federal Reserve Banks and member banks. 964 FEDERAL RESERVE BULLETIN. From a purely technical standpoint it would seem that these deposits should be treated as ordinary deposits and not as bank deposits, since section 1 of the Federal Reserve Act provides that: October 1, 1919. become a part of the member bank's reserve. The board has reached the conclusion, therefore, that a member bank should not be permitted to deduct a balance due from a foreign banking corporation from the balance due to Wherever the word '"bank" is used in this act the word such corporation in computing its reserve and a shall be held to include State bank, banking associations, fortiori it should not be permitted to deduct and trust company except where national banks or Federal balances due from foreign correspondents or Reserve Banks are specifically referred to. banks from balances due to other banks. It 7 is true that the term "banking association ' may be said, to be broad enough to include foreign as well as domestic banks. It is Collection of checks drawn against a savings account. a significant fact, however, that wherever the act relates to transactions with persons, firms, The Federal Reserve Board is of the opinion or corporations in foreign countries it uses the that a check upon a savings account in a memword "foreign" to qualify such persons, firms ber bank is a check or draft within the meaning or corporations. For example, in section 14, of that part of section 13 of the Federal Reserve 7 Act which prohibits any bank from making a it refers to "foreign corporations/ "foreign correspondents or agencies/7 "foreign firms," charge against a Federal Reserve Bank upon and. "foreign individuals." In section 13 it checks or drafts presented for collection or paydraws a distinction between foreign and domes- ment and remission therefor by exchange or otherwise. tic tr ans actions. The Federal Reserve Board has ruled thatIt may reasonably be argued, therefore, that had Congress intended the word "bank" to maturing notes and bills, or bill of lading drafts include foreign associations and foreign corre- drawn against a person, firm, or corporation, spondents, it would have so provided in that other than a bank, do not come within the propart of section 1, which is above quoted. In visions of that part of section 13 referred to this view the conclusion would seem to be above. A bank may, therefore; properly charge justified that balances due to foreign banks, the Federal Reserve Bank for collecting such firms, or associations, are not to be treated as an item. A check or draft, however, which is balances due to other banks within the meaning drawn by a depositor in a bank upon his acof that language as used in the act. If this bo count in that bank is a check or draft within the true, it is clear that Congress did not intend to meaning of section 13, regardless of whether or permit balances due from foreign banks, firms, not the funds out of which it is intended that or associations to be deducted from balances the check shall be paid constitute a savings deposit or an ordinary demand deposit. due to other banks. Legally, therefore, the drawee bank has no Viewing this question from a practical standpoint, there does not appear to be any real authority under the provisions of section 13 of justification for permitting this deduction. the Federal Reserve Act to deduct exchange in The reserve carried against demand liabilities making payment upon a check drawn against is primarily for the purpose of enabling the one of its savings accounts sent to it for collecdepositary bank to meet any unusual or ab- tion by a Federal Reserve Bank. normal withdrawals on the part of the depositors. Balances due from other banks in the United States are available for this purpose. Conditional sales as the basis of trade acceptances. An acceptance which provides that the drawer They may be quickly and expeditiously transferred to the Federal Reserve Bank, and when is to retain title to the goods until payment so transferred become a part of the actual of the acceptance is not consistent with the reserve of the depositary bank. In the case requirement of a legitimate trade acceptance of balances due from foreign banks, however, that the title shall have passed to the drawee at this is not true. Such balances would have the time of acceptance. The actual sale of to be sold on the market like any other invest- goods and not what is generally termed a conment and the proceeds of the sale deposited ditional sale of goods must be the basis of the with the Federal Reserve Bank in order to acceptance. October 1,1915). FEDERAL RESERVE BULLETIN'. 965 LAW DEPARTMENT. Status of Federal Banking Legislation. "Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of INVESTMENTS BY NATIONAL BANKS IN THE the Currency upon demand, and every member bank STOCK OF CORPORATIONS ENGAGED IN CER- investing in the capital stock of banks or corporations TAIN PHASES OF FOREIGN FINANCIAL OPERA- described above shall be required to furnish information concerning the condition of such banks or corporations to TIONS. the Federal lleserve Board upon demand, and the Federal Reserve Board may order special examinations of the said On September 17, 1919, the President signed branches, banks, or corporations at such time or times as Senate bill 2395, which passed the Senate on it may deem best. " July 14, and the House on September 3. The bill is now a law in the' form printed below, and amends section 25 of the Federal Reserve Act so as to enable any national bank to invest not exceeding 5 per cent of its capital and surplus in the stock of one or more corporations chartered under Federal or State law principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate exports from the United States. (Public—No. 48—66th Congress.) AN ACT Amending section 25 of the Act; approved December 23.1913 known as the Federal Reserve Act, as amended by the Act approved September 7,1916. FEDEEAL INCOEPOEATION OF INSTITUTIONS TO ENGAGE IX FOREIGN BANKING OE OTHER FINANCIAL OPEEATIONS. Senate bill 2472, known as the "Edge bill," to provide for the Federal incorporation of institutions to engage in international or foreign banking or other financial operations, was passed by the Senate on September 9, 1919, and referred to the House Committee on Banking and Currency, whore it is now under consideration. The bill as originally reported by the Senate Committee on banking "and Currency is printed on pages 728 and 729 of the August, 1919, BULLETIN. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,LIMITATIONS ON LOANING POWER OF NATIONAL That section 25 of the Act approved December 23, 1913, BANKS. known as the Federal Reserve Act, as am ended by the Act approved September 7, 1916, be farther amended by the House bill 7478, amending sections 5200 addition of the following paragraph at the end of subparagraph 2 of the first paragraph, after the word "posses- and 5202 of the Revised Statutes, was passed sions": by the House on July 31, 1919, and in slightly "Until January 1, 1921, any national banking associa- amended form was passed by the Senate on tion, without regard to the amount of its capital and surplus, may file application with the Federal lleserve Board October 2, 1919. llie amendments of the for permission, upon such conditions and under such regu- Senate were agreed to by the House on Octolations as may be prescribed, by said board, to invest an ber 7, 1919, and goes to the President for apamount not exceeding in the aggregate 5 per centum of its proval in the form printed below. paid-in capital and surplus in the stock of one or more Be it enacted by Cue Senate and House of Representatives of corporations chartered or incorporated under the laws of the United States or of any State thereof and, regardless of its the United States of America in Congress assembled, That location, principally engaged in such phases of interna- section 5200 of the Revised Statutes of the United States tional or foreign financial operations as may be necessary as amended by the Acts of June 22, 1906, and September to facilitate the export of goods, wares, or merchandise from 24, 1918, be further amended to read as follows f f "Sec. 5200. The total liabilities to any association o any the United States or any of its dependencies or insular possessions to any foreign country: Provided, however, person or of any company, corporation, or firm for money That in no event shall the total investments authorized borrowed, including in the liabilities of a company or by this section by any one national bank exceed 10 per firm the liabilities of the several members thereof, shall at no time exceed 10 per centum of the amount of the centum of its capital and surplus." SEC. 2. That paragraph 2 of said section be amended by capital stock of such association, actually j>aid in and adding after the"word "banking, " in line three, the words unimpaired, and 10 per centum of its unimpaired surplus "or financial," so that the sentence will read: "Such fund: Provided, hoivever, That (1) the discount of bills of application shall specify the name and capital of the bank- exchange drawn in good faith against actually existing ing association filing it, the powers applied for, and the values, including drafts and bills of exchange secured by place or places where the banking or financial operations shipping documents conveying or securing title to goods shipped, and including demand obligations when secured proposed are to be carried on." SEC. 3. That paragraph 3 of said section be amended by by documents covering commodities in actual process striking out the words'"subparagraph 2 of the first para- of shipment, and also including bankers' acceptances of graph of this section" and inserting in lieu thereof the the kinds described in section 13 of the Federal lleserve Act, (2) the discount of commercial or business paper word "above," so that the paragraph will read: 966 FEDERAL RESERVE BULLETIN. October 1, 1919. actually owned by the person, company, corporation, or which it is located, provided that no such firm negotiating the same, (3) the discount of notes secured branch shall be established in any State in by shipping documents, warehouse receipts, or other such documents conveying or securing title covering readily which neither State banks nor trust companies marketable nonperishable staples, including live stock, may lawfully establish branches. This bill has when the actual market value of the property securing the not as yet been acted upon by the House Comobligation is not at any time Less than 115 per centum of the face amount of the notes secured by such documents and mittee on Banking and Currency. when such property is fully covered by insurance, and (4) the discount of any note or notes secured by not less AMENDMENT OF WAR FINANCE CORPORATION than a like face amount of bonds or notes of the United ACT. States issued since April 24, 1917, or certificates of indebtedness of the United States, shall not be considered as On September 26, 1919, the Senate Commoney borrowed within the meaning of this section. The total liabilities to any association, of any person or of any mittee on Banking and Currency favorably corporation, or firm, or company, or the several members reported Senate Joint Resolution 88, introthereof upon any note or notes purchased or discounted duced by Senator Owen on August 12, amendhy such association and secured by bonds, notes, or certificates of indebtedness as described in (4) hereof shall ing the War Finance Corporation Act so as not exceed (except to the extent permitted by rules and to authorize the War Finance Corporation to regulations prescribed by the Comptroller of the Currency, extend financial aid to American exporters if with the approval of the Secretary of the Treasury) 10 per it is necessary in the opinion of the Board of centum, of such capital, stock and surplus fund of such association and the total liabilities to any association of Directors of the War Finance Corporation for any person or of any corporation, or firm, or company, or the maintenance or promotion of the foreign the several members thereof for money borrowed, including trade of the United States. Under the law the liabilities upon notes secured in the manner described in its present form it is impossible for the under (3) hereof, except transactions (L), (2), and (4), shall not at any time exceed 25 per centum, of the War Finance Corporation to make such adamount of the association's paid-in and unimpaired vances unless the exporter is, in the opinion capital stock and surplus. The exception made under of the board of directors of that corporation, (3) hereof shall not apply to the notes of any one person, corporation or firm or company, or the several members unable to obtain funds upon reasonable terms thereof for more than six months in any consecutive through banking channels. The resolution as twelve months." reported by the Senate committee reads as Sec. 2. That section 5202 of the Revised Statutes of the United States as amended by section 20, Title I, of the Act approved April 5, 1918, be further amended so as to read as follows: "Sec. 5202. No national banking association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: "First. Notes of circulation. "Second. Moneys deposited with or collected by the association. "Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. "Fourth. Liabilities to the stockholders of the association for dividends and reserve profits. "Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. "Sixth. Liabilities incurred under the provisions of the War Finance Corporation Act. "Seventh. Liabilities created by the indorsement of accepted bills of exchange payable abroad actually owned by the indorsing bank and discounted at home or abroad." DOMESTIC BRANCHES OF MEMBER BANKS. On August 2, 1919, the Senate passed a bill authorizing any member bank located in a city of more than 100,000 inhabitants and possessing a capital and surplus of $1,000,000 or more, to establish not more than 10 branches within the corporate limits of the city in follows: [66th Congress, 1st Session. S. J. lies. 88.] Resolved by the Senate and House of Representatives of the United States of America in Congress assembled,. That section 21a of an act entitled "An act to provide further for the national security and defense, and, for the purpose of assisting in the prosecution of the war, to supervise the issuance of securities, and for other purposes," be amended to read as follows: "SEC. 21a. (a) That the corporation shall be empowered and authorized, in order to promote commerce with foreign nations through, the extension of credits, to make advances and extend financial aid upon such terms, not inconsistent with the provisions of this section, as it may prescribe for periods not exceeding ten years from the respective dates of payment by the corporation—• "(1) To any person, firm, corporation, or association engaged in the business in the United States of exporting therefrom domestic products to foreign countries, if the same is necessary, in the opinion of the board of directors, of the exportation, for the maintenance or promotion of the foreign trade of the United States. Any such advance shall be made only for the purpose of assisting in the exportation of such products, and shall be limited in amount to not more than the contract price therefor, including insurance and carrying or transportation charges to the foreign point of destination; and "(2) To any bank, banker, or trust company in the United States which, after this section takes effect, makes an advance to any such person, firm, corporation, or association for the purpose of assisting in the exportation of such products. Any such advance shall not exceed the amount remaining unpaid of the advances made by such bank, banker, or trust company to such person, firm, corporation, or association for such purpose. October 1. 1910. FEDERAL RESERVE BULLETIN. "(b) The aggregate of the advances made by the corporation under this section remaining unpaid shall never at uany time exceed the sum of SL006,00()."000. (c) Notwithstanding the limitation oil section '!. the advances provided for by this section may be made until the expiration of one year after the termination of the war between the United States and the German Government, as fixed by a proclamation by the President. Any such advance made or financial aid extended by the corporation shall be made with full and adequate security in each instance, by indorsement, guarantee, security, or otherwise. The corporation shall retain power to require additional security at any time. The corporation in its discretion may, upon like security, extend the time of payment of any such advance or other payment through renewals, the substitution of new obligations, or otherwise. but the time for the payment of any such advance shall not be extended beyond ten years from the date on which, it was originally made." STATUS OF FEDERAL ANTIPROFITEERIXG LEGISLATION. The so-called Lever Food Control Act, approved August 10, 1917, whirii applies OEIV to foods, feeds, and fuel, and tools, implements, or machinery required for their production, is the only Federal legislation specifically relating to the control of profiteering. By the terms of section 1 of that act, the articles mentioned above arc defined as "necessaries" for the purposes of the act. Section 4 makes it unlawful for any person to destroy any "necessaries5' for the purpose of enhancing their price or restricting their supply; to commit waste or permit deterioration; to horde; monopolize: to engage in discriminatory, unfair, deceptive, or wasteful practices; to make any unjust or unreasonable charge in handling or dealing in "necessaries/7 and to conspire or to combine (a) to limit the facilities for transportation, producing, harvesting, manufacturing, supply-7 ing, storing, or dealing in any "necessaries;' (b) to restrict the supply of any "necessaries;" (e) to restrict distribution of any "necessaries;" (d) to prevent, limit, or lessen their manufacture or production in order to enhance the price of any "necessaries;" or (e)77 to exact excessive prices for any "'necessaries. Under the" terms of the Lever Food Control Act there is no penalty for the violation of any of. these prohibitions, except hoarding, willful destruction, and conspiracy or combination for the purposes described in (a), (b), (c), or (cl) above, but not (e). There is now pending before Congress a bill (House bill 8624), which has passed both the House and the Senate in slightly different forms, and which was resubmitted by a conference committee to both the House and 967 Senate on October 2, 1919. The bill as reported by the conference committee was passed by the Senate on October 3. This bill provides a penalty for violation of any of the provisions of section 4 of the Lever Food Control Act, heretofore described, and 77extends the definition of the term "necessaries so as to make the act apply not only to foods, feeds, and fuel, and tools, implements, or'machinery required for their production, but also to wearing apparel and to containers primarily designed to contain foods, feeds, or fertilizers. AMENDMENT TO ALABAMA BANKING LAWS. An act enacted by the Legislature of Alabama and approved by the governor on September 17, 1919, embodies the substance of the act recommended by the Federal Keserve Board and the American Bankers7 Association to bring about greater coordination in the powers of State and national banks and to promote uniformity in State and Federal banking laws. The Alabama act reads as follows: SECTION7 1. That any bank or trust company incorporated under the laws oi: this State shall have the power to subscribe to the capital stock and become a member of a Federal Reserve Bank created and organized under an act of Congress of the United States approved on the 23d day of December, 19J3, known as the Federal Reserve Act. SKC. 2. Any bank or trust company incorporated under the laws of this State which shall become a member of a Federal Reserve Bank shall be subject to all the provisions of the Federal Reserve Act and the amendments thereto, and to the regulations of the Federal Reserve Bank and of the Federal lieserve Board applicable to such bank or trust company. SEC. 3. Any bank or trust company incorporated under the laws of this State which is or may become a member of a Federal Reserve Bank shall keep and maintain as a lawful reserve the same reserves as are required by the 'Federal lieserve Act and the amendments thereto of other banks members of the Federal Reserve System, and a compliance by such bank or trust company of this State with the reserve requirements of the Federal Reserve Act shall be held to be a full compliance with the provisions of the laws of this State on the subject of bank reserves, and such bank or trust company shall not be required to carry reserves other than such as are required under the ternis of the Federal lieserve Act and its amendments. SEC. 4. Any bank or trust company chartered under the laws of this State and doing business therein which is or which may become a member of the Federal lieserve system shall be subject to the examinations required under the terms of the Federal Reserve Act and its amendments by the proper officers appointed thereunder or pursuant thereto, and the authorities of this State having supervision over such banks and trust companies may in their discretion accept such examinations in lieu of the examinations required under the laws of this State. SEC 5. The authorities of this State having supervision over such banks or trust companies may in their discretion 968 FEDERAL RESERVE BULLETIN". Oetobor 1, 1919. Ordinary warehouse receipts are subject to sale, and when sold and delivered pass the title to the property represented by them as fully and completely as if the property itself was delivered. If the tax on whisky has been paid and it has been removed from the warehouse of which the Government has control and stored in an ordinary warehouse, the sale of the warehouse receipts would be a sale of the whisky, and where such sale is made for beverage purposes, that is not specifically for some beverage purpose, it would be a clear violation of the war prohibition act. I assume, however, that this is not the character of certificate referred to in your letter. I presume you refer to certificates represent ing whisky held in bond subject to the control of the Government, and which can not be removed from the warehouse until the tax is paid. Under those conditions the purchaser of the certificate acquires all the rights of the' seller, but these rights are simply to remove the whisky from the warehouse upon the paySale of warehouse certificates representing whisky. ment of the tax and compliance with all the regulations of the bureau of Internal Revenue. IJI other words, he Below is printed a copy of an opinion filed acquires the whisky subject to the rights of the Governby the Attorney General with the Secretary of ment. The war prohibition act prohibits, after June 30. 1919, the Treasury under date of August 21, 1919, only the manufacture and sale of whisky, but also to the effect that the sale of warehouse cer- not removal from, bend for beverage purposes, except for tificates on whisky held in bond, and subject its export. Since this law became effective, therefore, the to the payment of tax before it can be removed, purchaser of such a certificate becomes the owner of the is not a sale of whisky for beverage purposes whisky not only subject to the rights of the Government, but without; the right to remove it for beverage purposesJ within the meaning of the war prohibition act, except export, as long as the war prohibition act and is not prohibited b}^ that act, This opinion remains for in force. The Bale of the certificate, therefore, was cited by the Department of Justice in expressly negatives the idea that it is a sale for beverage response to an inquiry from a member bank purposes, or at least for the purpose of using or selling the whisky as a beverage as long as its removal for beverage with reference to its" right to handle drafts purposes is unlawful. secured by warehouse receipts covering whisky. I am of the opinion, that the sale of warehouse certificates on whisky held in bond, and subject to the payDEPARTMENT OF JUSTICE, ment of tax before it can be removed, is not a sale of whisky for beverage purposes within the meaning of the August 21, 1919. SIR: I have the honor to acknowledge receipt of your war prohibition act, 'and is not prohibited. Respectfully, letter of August 18, requesting a.a opinion as to whether A. MITCHELL PALMER. the sale of warehouse certificates, representing whisky, constitutes a violation of the war prohibition act. To the SECRETARY OF THE TREASURY. furnish to the Federal Reserve Board or to the Federal Reserve Bank of which any bank or trust company organized under the laws of this State may become a member, or to the examiners duly appointed by the Federal Reserve Board or such Federal Reserve Bank, copies of any or all examinations and audits made of the banks and trust companies which are members of the Federal Reserve System, and may disclose to such Federal Reserve Board or to such federal Reserve Bank or such examiners, in their discretion, any information with reference to the condition or affairs of such banks or trust companies as are or may become members of the Federal Reserve System. SEC. 6. All laws or parts of laws in conflict herewith be and they are hereby repealed. October 1, 1919. FEDERAL RESERVE BULLETIN. WHOLESALE PRICES. In continuation of figures shown in the September BULLETIN there are presented below monthly index numbers of wholesale prices for the period January, 1919, to August, 1919, compared with like figures for August of previous years; also for July, 1914, the month immediately preceding the outbreak of the Great War. The general index number is that of the United States Bureau of Labor Statistics. In addition there are presented separate numbers for certain particular classes of commodities in accordance with plans announced in previous issues of the BULLETIN. Quotations for four commodities, namely, alcohol (denatured, 180 proof, New York), paper (newsprint, rolls contract), ginghams (Lancaster, staple, 26J-inch), and bedroom chairs have been omitted. On the other hand, quotations r for hosiery (men's seamless cashmere) and onions (fresh, Chicago), which had been dropped temporarily, have been secured for the month of August, and the commodities were again included in the calculation of the index number for the latter month. Index numbers for August are provisional, due to the fact that certain data were not received in time to render them available for use in the calculations. Wholesale prices during the month of August reached a new high level. The general index number of the Bureau of Labor Statistics for that month stands at the record figure of 222, an increase of 3 points over the figure for the month of July. Increase is noted in the index numbers for each of the three principal groups of commodities, although relatively smallest for the group of raw materials. The index number for that group increased 1.5 per cent, from 214 to 217, a new'record figure. Diversity is exhibited in the changes in the index numbers for the several subgroups included under the head of raw materials. The index number for the farm products subgroup alone shows a decrease, from 261 to 251, or 3.8 per cent, due to decreases in the prices of cotton, wheat, oats, and timothy, which were not offset by increases 139895—19 5 969 in the prices of corn, barley, and alfalfa. The forest products subgroup shows the greatest increase, namely, 15.8 per cent, from 166 to 193, a new record, and all of the 11 commodities included in the group, with the exception of maple and spruce, increased in price. Relatively small increases occurred in the index numbers for the animal products and mineral products subgroups, from 233 to the record figure of 236 and from 177 to 178, respectively, the corresponding percentages of increase being 1.4 and 0.8. Among the commodities included in the former subgroup, decreases in the prices of hogs, poultry, and silk were more than "offset by increases in the prices of cattle, lambs, and various classes of hides and wool, while among' the commodities included in the subgroup of mineral products a decrease in the price of tin was more than offset by increases in the prices of various sizes of anthracite coal, coke, copper, and foundry iron. The index number for the group of producers7 goods increased 4.7 per cent, from 205 to 215, a new record. Decreases in price occurred only for a small number of commodities, among which may be noted lubricating oil, rope, tallow, and oleo oil, while increases occurred for an extended list, in particular various classes of leather, cotton and worsted yarns, cottonseed meal, bran, jute, linseed oil, rosin and turpentine, wood pulp, silver and copper wire, bar iron, and cast-iron pipe. The index number for the group of consumers' goods increased 4.8 per cent, from 230 to the record figure of 241. Decreases in the prices of fldur, coffee, corn meal, onions, lard, mess beef and mess pork, cottonseed oil, and print cloths were more than offset by increases in the prices of various foodstuffs, in particular various meats, such as beef, veal, and poultry, salmon, butter, milk, and eggs, potatoes, rice, beans, oranges, raisins, peanuts, vinegar, olive oil, and canned peas, various classes of shoes, various cotton textiles, such as denims, drillings, shirtings and sheetings, and underwear, women's dress goods, tableware, soap, illuminating oil, and wrapping paper. 970 FEDERAL RESERVE BULLETIN". October 1,1919. Index numbers of wholesale prices in the United States for principal classes of corrnnodities. [Average price for 1913=100.] Raw materials. Year and month. Julv, 1914 August, 1914.. August 1915 August 1916 August, 1917 August, 1918.. .. All commodities Producers' Consumers' (Bureau of goods. Labor Stagoods. Total raw tistics index materials. number). Farm products. Animal products. Forest products. Mineral products. 102 109 111 130 232 248 106 109 104 123 181 215 97 97 92 95 128 143 88 87 91 112 175 180 98 101 100 117 183 200 92 99 98 140 211 199 103 106 100 124 175 205 99 102 100 123 184 203 231 224 237 246 255 250 261 251 208 210 217 224 225 217 233 236 147 148 149 145 146 156 166 193 179 175 173 170 170 173 177 178 196 194 199 202 205 203 214 218 196 192 190 186 189 196 205 215 216 205 210 214 219 217 230 241 203 197 201 203 207 207 219 222 . . . 1919. Januarv. February March April. May June. Julv Au gust . . In order to give a more concrete illustration of actual price movements there are also presented in the following table monthly actual and relative figures for certain commodities of a basic character, covering the period January, 1919, to August, 1919, compared with like Average monthly figures for August of previous years; also for July, 1914, the month immediately preceding the outbreak of the great war. The actual average monthly prices shown in the table have been abstracted from the records of the United States Bureau of Labor Statistics. wholesale prices of commodities. [Average price for 1913=100.] Corn, No. 3, Chicago. Wheat, No. 1, Cotton, middling, northern spring, New Orleans. Minneapolis. Wheat, No. 2, red winter, Chicago. Year and month. July 1914 August 1914 August 1915.. August 19 J 6 . Wuust 1917 August, 1918.. Januarv 1919 Fcbruarv, 1919 March 1919 April 1919 M.av, 1919. June 1919 Julv, 1919 August, 1919 Julv 1914 August. 1914 August, 1915 August, 1916 August 1917 August, 1918 Januarv. 1919 February, 1919 March, 1919 . . April 1919 May, 1919 Juno 1919 July, 1919 August, 1919 Hides, packers', heavy native steers,' Chicago. Average price per bushel. Relative price. Average price per pound. Relative price. Average price per bushel. Relative price. Average price per bushel. Relative price. Average price per 100 pounds. Relative price. Average price per pound. ?(). 7044 . 8035 .7828 . 8505 1.9181 1.6225 1.3750 1.2763 1.4588 1.5955 1.7613 1.7503 1.9075 1.9213 114 131 127 138 312 264 223 207 237 259 286 285 310 312 SO.1331 105 . 0895 . 1417 . 2513 . 3038 . 2850 . 2694 . 2681 . 2670 . 2947 . 3185 . 3377 . 3125 70 112 198 239 224 212 211 210 232 251 266 246 SO. 8971 1.0682 1.3730 1.4854 2.7875 2.2231 2.2225 2.2350 2.3275 2.5890 2.5925 2.4575 2.6800 2.5250 103 122 157 170 319 255 254 256 266 296 297 281 307 289 SO. 8210 .9563 1.0963 1.4706 2.2563 2.2325 2.3788 2.3450 2.3575 2.6300 2.7800 2.3613 2.2580 2.2391 83 97 111 149 229 226 241 238 239 267 282 239 229 227 S9.2188 9.5200 9.2300 9.8500 13.1750 17.8250 18.4125 18.4688 18.5750 18.3250 17.7438 15.4600 16.8688 17.6375 108 112 108 116 155 210 216 217 218 215 209 182 198 207 SO.1938 . 2050 .2738 .2625 .3200 . 3000 .2800 .2800 .2763 . 2950 .3513 .4075 .4860 . 5200 Hogs, light, Chicago. Year and month. Cattle, steers, good to choice, Chicago. Average price per 100 pounds. Relative price. $8.7563 9.1500 7.2650 10.4063 17.3688 19.7750 17.4125 17.4688 18.8550 20.3813 20.7000 20.7800 22.3875 21.6125 104 108 86 123 205 234 206 207 223 241 245 246 265 256 Yellow pine, flooring, New York. Hemlock, New York. Average Relaprice per tive pound. price. Average Relaprice per tive M feet. price. Average price per M feet. Relative price. Average price per long ton. $24.5000 24.2500 20.5000 23.7500 29.5000 101 100 85 98 122 36.0000 36.0000 36.0000 36.0000 36.0000 36.0000 41.0000 149 149 149 149 -. 149 149 169 842.0000 42.0000 38.5000 38.0000 57.0000 63.0000 63.0000 64.0000 64.0000 64.0000 65.0000 68.0000 73.0000 78.0000 94 94 86 85 128 141 141 144 144 144 146 152 164 175 84.9728 5.0805 5.0798 5.5570 5.9797 6.5992 7.9500 7.9500 7.9044 7.9045 7.9857 8.1174 8.1881 8.3145 94 97 121 146 285 305 255 232 255 232 228 251 263 263 105 111 149 143 174 163 152 152 150 160 191 222 264 283 Coal, anthracite, Coal, bituminous, stove, New York, run of mine, tidewater. Cincinnati. Wool, Ohio, -£•-§ grades, scoured. $0.4444 .4583 .5714 . 6857 1.3429 1.4365 1.1200 1.0909 1.2000 1.0909 1.0727 1.1818 1.2364 1.2364 Relative price. Rela- Average Relative price per tive price. short ton. price. 98 100 100 110 118 130 157 157 156 156 158 160 162 164 $2.2000 2.2000 2.2000 2.2000 4.4000 4.1000 4.1000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 4.0000 100 100 100 100 200 186 186 182 182 182 182 182 182 182 October 1, 1919. 971 FEDERAL RESERVE BULLETIN. Average monthly wholesale prices of commodities—Continued. [Average price for 1913=100.] Coal, Poeahontas,' Norfolk. Year and montli. ingot, Coke, Connells- i Copper, eleetrolitie, ville. New York. "I Rela- | Average : Average | Rela- Average tive price per price per i tive ! price per price, pound. long ton. price, j short ton. S3.0000 I 3.0000 2.8500 3.2500 3.9080 4.6320 4.0320 4. 6320 4.9000 4.9000 4.9000 5.1400 5.1400 5.1400 July, 1914 August, 1914... August, 1915... August, 1916... August, 1917... August, 1918... January, 1919.. February, 1919 March, 1919 April, 1919 May, 1919 Juno, 1919 July, 1919 August, 1919... 100 100 95 108 130 154 154 154 163 163 103 171 171 171 Cotton yarns, northern cones, 10/1. SI. 8750 1.8000 1.6750 2.6250 10.0000 6.0000 5. 7813 5.2188 4.4688 3.9000 ! 3.8437 4.0000 4.0950 4.2188 77 74 69 108 410 246 237 214 183 160 158 164 168 173 SO.1340 . 1250 .1825 . 2600 . 2900 . 2600 . 2038 .1731 . 1509 .1530 . 1600 . 1756 . 2150 .2281 Relative price. 85 79 116 165 184 185 130 110 96 97 102 112 137 145 Steel, billets, Bessemer, Pittsburgh. Leather, sole, hemlock No. 1. Lead, pig, desilverized, Now York. Average price per pound. ' Petroleum, crude,! j Pennsylvania, Pig iron, basic. Rela- I Average Rela- ! Average ! Relative i price per tive j price per j tive price. ! barrel. price, long ton.! price. 89 | 81.7500 j 89 | 1.6500 i 114 1.3500 ! 139 2.5000 I 247 3.1000 ! 4.0000 ! 183 4.0000 ! 127 4.0000 i 115 4.0000 I 119 4.0000 I 115 4.0000 i 115 4.0000 I 120 4.0000 j 128 4.0000 ! 132 SO.0390 j .0390 j . 0500 . 0610 1.0880 . 0805 . 0558 .0508 . 0521 .0507 .0508 I .0530 | .0561 .0579 Steel, plates, tank, Pittsburgh, 71 I S13.0000 ' 6 7 | 13.0000 • • 55 i 14.0600 ; 102 18.0000 ; 1OT 127 51.2000 ! 163 32.0000 ! 163 30.0000 163 30.0000 163 28.9375 163 25.7500 163 25.7500 163 25.7500 163 25.7500 163 25.7500 96 122 348 218 204 204 197 175 175 175 175 175 I j Steel, rails, open I Worsted yarns, j hearth, Pitts- j 2-32's crossi burgh. | bred. Year and month. Average I Rela- ; Average | Rela- i Average Rela- | Average : tive price per ! tive j price per tive ' price per ! price, i pound, j price. ! pound. price. ! pound. ; price per : ; pound. July,1914 August, 1914 August, 1915 August, 1916 August, 1917 August, 1918 J a n u a r y , 1919 February, 1919 March, 1919 April, 1919 May, 1919 June,1919 July,1919 August, 1919 , $0.2150 j .2000 . 1675 ; : ! , i ' \ ! : ; ! ' .2575J .4400 j 6400 .5000 .4164 . 4132 j .4300 ! .4826; .5608 1 .5912! . 6130 \ SO.3050 ! .2950 i .3100 ! .3700 i 116! .5000 I 199: .4900 i 289 ! .4900 ! 220 .4900 188 .4900 187 .4900 194 i . 4900 218 . 5100 253 .5300 267! .5700 277 . 97; 90 . 76 ! Beef, carcass, good native steers, Chicago. 108 ; 819.0000 105 110 131 177 174 174 174 174 174 174 181 188 202 Coffee, Rio No. 7. Year and month. Average j Relaprice per ! tive pound, j price. July, 1914 August, 1 9 1 4 . . . August, 1915.. . Angus{;, 1916.. . August, 1 9 1 7 . . . August, 1918.. . January, 1919... February, 1919. March, 1919 April, 1919 Ma v, 1919 June, 1919 July, 1919 August, 1 9 1 9 . . . •SO. 1350 . 1419 .1325 . 1375 . 1713 .2420 . 2450 .2450 . 2450 . 2450 . 2430 . 2025 . 2075 .2350 j 104 110 102 106 132 187 189 189 189 189 188 156 160 181 i i i j I ' 20.2500 23.1300 44.2000 86.0000 47.5000 43.5000 43.5000 42.2500 38.5000 38.5000 38.5000 38.5000 38.5000 .0750 . 0738 . 0950 . 0913 . 0853 .1547 . 1544 . 1602 . 1695 . 1931 . 2114 .2303 .2150 79 67 68 85 82 77 139 139 144 152 173 190 207 193 74 ! SO.0113 79 j .0113 90 ! .0125 171 • .0345 333 ! .0900 184 : .0325 169 i .0300 169 ! .0300 .0291 iG4 : .0265 149 : .0265 149 ! . 0265 149 ] . 0265 14.9 i .0265 149 i Flour, wheat, standard patents, 1914-1917, 1919; standard war, 1918,Minneapolis. Average ! Rela- Average prico per I tive price per pound. | price. barrel. U. 5938 5.5125 0.3100 i 7.6050 I 13.0688 | 10.2100 ! 10.2750 I 10.5500 j 11.2125 12.2150 12.4188 12.0125 12.1550 12.0063 Rela- Average Rela- Average Relative price per tive price per tive price. pound. price. pound. price. 100 120 138 166 285 223 224 230 245 260 271 262 265 262 Illuminating oil, 150° lire test, New York. 1 Chicago. Rela- Average tive price per price. pound. SO. 1769 . 1903 . 1495 . 1900 .2413 .3225 .3494 .3338 .3381 .3595 .3769 SO 6500 6500 8500 1000 6500 1500 7500 7000 5000 5000 5000 6000 6000 6242 100 100 100 117 133 190 190 190 182 157 157 157 157 157 S30.0000 30.0000 30.0000 35.0000 40.0000 608 57.0000 220 57.0000 203 57.0000 203 197 ! 54.5000 47.0000 179 47.0000 179 47.0000 179 179 i 47.0000 179 47.0000 84 84 119 142 212 277 225 219 193 193 193 206 206 209 Sugar, granulated, New York. Rela- j Average I Rela- i Average j Relative ! price per \ tive j price per j tive price. ! gallon, j price, pound, j price. 106 115 90 114 145 194 210 201 203 216 227 229 230 231 SO. 1200 | .1200 .1200 j .1200 i .1200 ; .1750 .1750 .1750 .1810 .1850 .1850 .2000 .2050 .2180 ! ! i I ! i j I • 97 97 97 97 97 142 142 142 147 150 150 162 166 177 , SO. 0420 ! . 0649 j . 0549 | . 0700 .0818 ! .0735 ! i .0882 i ! .0882 i ! .0882 j ! .0882 j i " .0882 152 129 164 192 172 207 207 207 207 207 207 207 207 CO 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 periods ending August 15 and September 15, 1919. Quotations are given for prime commercial paper, both customers' and purchased in the 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 or 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. Quotations are also given of rates charged on ordinary loans to customers secured by Liberty bonds and certificates of indebtedness. Assistanceto customers to enable them to purchase such Government obligations has generally been extended at lower rates, either at the rate borne by such ' obligations or at a rate slightly higher. The tables also show quotations in New York for demand paper secured by prime bankers' acceptance, a type of paper which made its appearance in the New York market some months ago. Quotations for new type of paper will be added from time to time as deemed of interestIn the majority of centers no marked changes in rates are noted during the period under review. In New York, however, a general decrease is shown, while rates in St. Louis, on the other hand, show a slight upward tendency. High and customary rates for both classes of bankers' acceptances show a decrease in a number of centers, but no marked changes are exhibited by the rates for other types of paper. Comparison with rates prevailing during the period ending September 14, 1918, reveal decreases in many centers in the rates for commercial paper purchased in the open market, as well as less marked decreases in the rates for customers' commercial paper and in the low rates for collateral loans. Discount and, interest rates'prevailingin various centers. DURING 30-DAY PERIOD ENDING AUG. 15, 1919. Prime commercial paper. District. No. 1... No. 2... No.3... No.4... No. 5... No. 6... No.7... No. 8... No. 9... No. 10.. No. 11.. No. 12.. City. Boston New York 2 Buffalo Philadelphia.. Cleveland Pittsburgh.... Cincinnati.... Richmond Baltimore Atlanta Birmingham.. Jacksonville... New Orleans.. Chicago Detroit St. Louis Louisville Memphis Little R o c k . . . Minneapolis... Kansas City... Omaha Denver Dallas El Paso San Francisco. Portland Seattle Spokane Salt Lake City Open market. Customers'. 30 to 90 4 to 6 months. II. L. C. 6 5 51 6 5 51 6 5 6 6 51 51 6 51 6 6 5 6 6 5 6 6 51 51 6 51 6 6 51 6 8 6 6 8 6 7 7 5 51-6 6 51 54-6 6 6 6" 6 51 6 6 5 6 6 5 6 7 6 6 51 51 51 7 5 6 61 51 6 8 5 6 8 6 6 8 6 8 6 5 55-6 7 6 6 8 5 7 8 6 7 8 6 7 II. L. C. 6 5-1 5 | 6 5 51 6 5 6 6 5 51 6 51 6 6 6 16 6 51 6 6 51 6 7 51 6 8 6 6 8 6 7 7 5 5-J-6 6 5J 5^-6 6 6 6 51 5* 5* 6 5 6" 6 5 6 61 6 6 6 5J 51 7 5 6" 61 51 6 8 5 6 8 6 6 8 6 8 6 5 51-6 7 6 6" 8 5 6 8 6 7 8 6 7 1 30 to 90 days. H. L. Bankers' acceptances, 60 to 90 days. Interbank loans. 4 to 6 months. Indorsed. II. L. C. IT. L. C. 51 5 51 4* 4* 4* 6 41 5-51 5 4 * 4-1-4& 6 5 6 51 5 51 4ft 41 4 * 51 5 5 4A4A4A 6 51 51 41 4fV 4A • 6 5 51 4£ 41 41 i a 51 5 5* 6 5 51 6 51 51 51 5 5-1 6 5 6 51 51 5} 6 5 6 6 6 51 6 5} 6 5h 6 6 51 6 of 51-6 . 6 51 51-6 51 5* 5i-5i 51 51 5 5k-5] 51 51 5 | 51 5 51 5 51 51 51 51 51: 51 51 51 7 51 4* 4§ 6 41 fH 51 5h51 51 « 6 6 6 5* 51 6 5 51 51 51 H6 6 6 6 51 51 6 5 51 6 6 6 6 6 6 5} 5* 51-51 51-51 5* 51 5* 51 51 51 51 6 5 51 0 5 51 51 51 51 51 51 51 4ft 7 6 5 5-< 51 41 6" Unindorscd. Collateral loans—stock exchange or other current. Demand. C. II. L, 4§ 41 4-& 6 51 5 41414 18 4 6 5 6 41 4 , V 4 | 6 4 6 5 4f 4A -41 41 4$ 61 5 6 6 6 5 41 4f 6 5 6 5-1 6 I 6 51 6 51 6 5 6 (5 5 6 51 6 8 6 6 6 7 7 6 7 7 5h 6 6 4& 4& 7 5" 6 6 51 5H>' 41 4-Hd 4A 41 4HA H 4£ 41 4$ 6 6 41 4ft 4 6 5 6 4-J 4} 6 5 4 A 4 A 41 6 5 6 7 6 7 41 4 * 4 * 4* 41 6 5* 6 5 6 8 5" 6 7 51 6 8 51 6 6 6 6 8 6 8 4-1 4§-5i 6 4-1 4-|-6 6 5 51-6 41 41 6 6 6 41 5 8 5 6 4 * 41 8 51 51 8 6 3 months. L, . C. 5* 5-6 6 5 JET. L. f ? ? 6 6 6 5 6 6 5 6 6 6 6-61 54-6 6" 6 6 71 6 8 8 t 5 5 6 61 51 " 5 51 Rates for demand paper secured by prime bankers' acceptances, high 6, low 41, customary, 41-6. Cattle loans. 3 to 6 months. >. C 5f II. L. C. 5! Secured by Secured by Libery warehouse bonds and receipts, certificates of indebtetc. edness. II. L. C. 6 6 6 6 6 6 6 6 6 6 7 6 8 6 6 6 -61 51-6 6 51 51-6 6 6 6 6 6 6 7 8 7 8 10 9 6 6 6 6 8 7-8 6 6 8 8 6 6 6 6 51 6 5 6 51 6 51 6 6 6 6 7 51 6 -7 5* 5-1-6 5 6 51 51 51 6 H. L. a 5 41 4f 6 4i4|-o 6 5 6 6 415 6 51 6 6 5 51 5* 5 5 6" 42 5 51 41 4f 6 41 6 6 41 6 8 6 6 6 41 5-8 6 5 5-.V 6 51 6' 6 42 54 6 £ 5" 7 51 8 6 8 8 8 6 6 5 51 5 6 41 6 4 6 6 6 5 7 6 4f 6 7 6 6 4f 7 4-16 O 3- Discount and interest rates prevailing in various centers—Continued. DURING 30-DAY PERIOD ENDING SEPT. 15, 1919. Prime commercial paper. District. No. 1.. No. 2.. No. 3.. No. 4.. No. 5.. No. 6.. No. 7.. No. 8... No. 9... No. 10.. No. 11.. No. 12.. Customers'. City. Boston New York i . . Buffalo Philadelphia. Cleveland.. Pittsburgh. Cincinnati.. Richmond. Baltimore.. Atlanta Birmington Jacksonville. New Orleans.. Chicago Detroit St. Louis Louisville Memphis Little Rock... Minneapolis... Kansas City... Omaha Denver Dallas El Paso San Francisco. Portland Seattle Spokane Salt Lake City 4 to 6 months. 30 to 90 days. ii. L. a 77. L. C. 6 P15J 6 5 5^-5^ 6 5 6 6 5-1 54 6 5 6 6 54 54 6 54 6 6 54 6 6 51 6 8 5 6 8 6 6 8 54 6 7 54 6 6 5 5*-6 6 54 6 6 53, 54 6 54 6 6 o| 6 7 6 64 6 54 54 7 5 6 6 54 6 8 5 6 8 6 6 8 6 8 6 5 54-6 7 6 6 8 6 8 8 6 7 8 6 7 IT. L. C. 5} H *1 6 51-5i-3 P 5 oj-o? 54 51 51 6 6 6 6 6 6 6 6 6 8 8 8 7 6 6 5 54 5 1 5 5 65J 5 6" 54 54 5 6 51 54 5-4 6 5 6 6 6 6 7 5 54-6 5 5^-6 54 6 6 51 04 6 54 6 6 7 54 7 6 8 8 8 7 8 8 8 54 6 6 6 51 H 5" 6 54 6 5" 6 6 6 6 8 6 6M 5 7 6 7 6 7 Interbank . loans. Open market. 30 to 90 days. 1 5h 5\ 51 6 5 6" 54 51 51 6 5£ 6 6 6 6 54 6 54 54 5-1 54 5 54 51 51 5J 51 Bankers' acceptances, 60 to 90 days. 51 77. L. C. 54 5 54 6 4i 5" 5 6 6 5 5 5 5 5 6 51 54 6 5 51 6 5 5£ 6 bh 51 6 5 6 8 5 6 6 6 6 6 51 6 6 54 6 5 54 6 5151 o o o 6 5 5^ 6 6 6 6 51 5* 7 5 6" 7 54 6 6 6 6 6 6 6 8 6 8 6 5 54 6 0 6 7 6 6 6 6 6 7 6 6 Indorsed. Unindorsed. 77. L. C. 4A 4& h\ 77. L. C. H 41 4A 51 4 41-4] 4A*1 4A 4A 41 4 ^ 5 44 4| 4-i 6 6 51 6 54 6 6 54 6 7 6 7 6 7 7 \ 4^r 4ft 4** 4* 41 41 i 5 4* 4A 4& 41 6 5 6 6 5 6 Collateral loans—stock exchango or other current. Demand. L. 3 months. a 6 6 34 54-6 5 6 34 6 5" 6 54 6 6 6 54 6 5 6 5 6 6 6 6 6 54 51-6 54 6 6 54 54 5 fi 6 6 6 6 54 6 5" 6 54 6 5 6 6 6 6 8 5 6 6 6 5 7 54 54 6 7" 6 54 i Cattle loans. Securedby Secured by Liberty warehouse bonds and receipts, certificates of indebtetc. CD 3 to 6 months. 77. L 6 54 6 b 6 5 6 54 6 5 6 54 6 6 6 6 51 16 6 54 7 5 8 6 8. 6 64 6 6 54 6 6 6 5 V- 6 4 6 6 6 8 5 6 7 54 6 8 5 6 6 6 6 8 6 8 6 5 54-6 6. 6 6 8 5 7 8 6 8 8 6 7 77. L. C. 77. L. C. 6 6 6 6 6 6 54 6 6 6 6 6 6 8 8 61 5 6 6 5 6 6 8 54-6 6 54 6 5 6 6 6 6 8 7 8 0 8 6 54 6 6 8 6-7 6 6 8 8 6 54 54 8 5J 6" 77. L. C. 5 41 4J 6 41 43-5 6 5 6 6 44 5 6 5 6 6 5 54 54 5 5 6 4$ 5 6 54 54 8 5" 6 6 4f 6 8 6 6 61 44 5-6 6 5 54 6 54 6 6 4-5; 54 6 5 54 6 4*5 7 54 6 54 5 5 6 4H 6 5^ 6 8 4$ 6 8 6 6 8 6 8 6 4| 6 7 6 6 8 43 7 8 4-4 6 8 5 6 Rates for demand paper secured by prime bankers' acceptances, high 5£, low 4J, customary 4jH>}. CO CO 974 October 1,1919. FEDERAL RESERVE BULLETIN. PHYSICAL VOLUME OF TRADE. In continuation of tables in the September there are presented in the following tables certain data relative to the physical volume of trade. The FEDERAL RESERVE BULLETIN January issue contains a description of the methods employed in the compilation of the data and the construction of the accompanying index numbers. Additional material will be presented from time to time as reliable figures are obtained. Live-stock movements. [Bureau of Markets.] Shipments. Receipts. and Sheep, 54 Horses mules, 44 markets. markets. Cattle and calves, 60 markets. Hogs, 60 markets. and Sheep, 60 Horses 44 markets. mules, markets. Total, all Cattle and. calves, 54 markets. 1918. Head. 2,010,422 Bead. 2,485,775 Head. 2,163,284 Head. 75,924 Head. 6,735,405 Head. 849,153 Head. 871,381 Head. 1,323,809 Head. 74.503 Head. 3,118,846 1919. January February March April May June July August 2,111,704 1,440,329 1,501,597 1,751,943 1.822,410 1.580,256 2,007,266 2,019,139 5,861,685 4,404,751 3,632,874 3.668,210 3; 863,735 3,812,466 3,998,836 2,103,609 1,567,613 1.131,805 I', 216,988 1,388,732 1.425,018 1,685,236 2,177,940 3,211,331 110,411 82,526 68,938 50,770 33,977 40,067 48,691 81,917 9.651,413 7; 059,411 6,420,397 6,859,655 7,145; 190 7,118,025 7,232,735 7,415,996 761,168 528,326 563,893 698,599 788,086 709,637 706,843 894,816 1,546,875 1,288,134 1,272,654 1,107,411 1,181,745 1,373,824 963,662 690,821 608,016 418,827 481,907 575,136 614,375 828,046 997,338 2,014,267 106,459 76,512 64,332 49,634 34,658 36,889 43,738 74,268 3,022,518 2,311,799 2,382,786 2,430,780 2,613,764 2,048,396 2,711,581 3.674,172 August Hogs, 54 markets. Total, all kinds. Receipts and shipments of live stock at 15 western markets. [Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph. St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Forth Worth, Indianapolis, Louisville, Wichita.] RECEIPTS. [Monthly average, 1911-1913=100.] Cattle and calves. Head. August January February March April May June July August Relative, Sheep. Hogs. Head. Relative, 1918. Head. Horses and mules. Relative, Head Relative. Total, all kinds. Head. Relative, 1,588,553 158 1,970,086 90 1,424,677 104 54,271 ! 118 5,037,5S7 109 1,656,046 1,096,118 1,094,614 1,255,379 I', 262,065 1,122,782 1,527,881 1,541,133 164 116 109 125 125 111 152 153 4,603,335 3,451,894 2,842,663 2,823.484 3,049;223 3,061,838 2,411,539 1.595,759 209 168 129 128 139 139 110 73 1,079.377 774', 881 847,812 970,070 934', 613 1,116.003 1,558; 767 2,220,229 79 61 62 71 68 82 114 162 56,631 | 4 8 , 7 8 6 •• 41,805 i 3l',509 i 21,345 ! 28,418 i 37,866 i 57,206 i 123 114 91 68 46 62 82 124 7,395,419 5.371,679 4', 820.924 0,080; 432 5,267,246 5,329,041 5,53fi,053 5,414.327 160 125 105 110 114 115 120 117 51,923 127 2,055,826 143 56,282 47,829 41'. 837 29,974 18,865 25.322 32,836 49,996 137 125 102 73 46 62 80 122 1,991,065 1,574,447 1.681,200 1'. 604,871 I', 626,830 1,999,957 1,934,132 2,508,205 139 118 117 112 113 139 135 175 1919. SHIPMENTS. August January February March April May June .July August 1918. 652,440 160 599,577 124 751,886 589,362 404,296 423,819 506,835 530,153 503,354 515,071 650,252 145 107 104 125 130 124 127 160 988,035 881,507 925,802 748,437 787,009 L, 005,505 691,283 455,705 204 195 191 154 162 208 143 94 357,386 240,815 289,742 319,625 290,803 465,776 694,492 1,352,252 1919. October 1, 1919. 975 FEDERAL RESERVE BULLETIN. Exports of certain meat products. [Department of Commerce.] [Monthly average, 1911-1913=100.] Beef, pickled and other cured. Beef, fresh. Beef, canned. Pounds. Relative. Pounds. Relative. Pounds. Relative. 17,129,337 2,585 45.160,708 3,641 1,742,970 65 1919. January 12,636,060 February... 8,151,723 M a r c h . . . . . . 8,997,973 April 2,896; 759 May 5,669,232 Juno 6,574; 766 July 5,392,104 August 2,894,361 1,907 1,318 1,358 437 856 992 814 437 17,436,495 13,729,993 l i ; 651/276 21,639,915 14,872.987 15.212; 094 8'. 680,524 8,'075,366 1.406 0,030,937 l', 186 3,635,120 I', 181 3,749,394 1,744 2.673.681 1.199 2,957', :163 1.226 4,768; 308 '700 3,320,564 651 2,494,113 226 146 140 100 111 178 125 93 1918. August Hams and shoulders, cured. Bacon. Relative. Pounds. 68,857,586 411 Relative. Pounds. Relative. 51,920,658 118 3,032,954 69 367 37,850,338 354 68,972; 779 574 97,239,435 734 86,555.951 333 55,807; 234 649 114.328.804 320 68', 163! 734 269 48,968; 628 86 16S 221 197 127 260 155 111 2,273,683 1,956.362 2,141,508 2.494,454 2.095,072 3;131.639 2,392,515 2,117,796 51 47 48 56 47 71 54 48 Pounds. Relative. Pounds. 45,816,637 307 101,000.122 603 54,846,433 114,842; 525 735 49,283,053 151,086,397 902 85,712,426 141,814,255 847 109,569.968 68,957; 465 412 49,707.874 172,441,100 1,0:50 96,854', 552 117,679,193 703 47,452.834 84,150,778 502 40,147,'727 Pickled pork. Lard. Receipts of grain and flour at 11 interior centers. [Chicago^ Cleveland,, Detroit, _roit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland. Detroit, Indianapolis, Louisville. Omaha, Spokane, Toledo, and Wichita.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Wheat. Corn. RelaBushels. tive. Bushels. 1918. August 1919. January... February.. March April May June July August 91,448,672 24,652,641 14,049,055 13,768,496 11,208.305 11,625; 657 8,125,031 49,612,115 80,714,559 tivf BusMs - Relative. Bushels. Total grain. Barley. Rye. Oats. tive. RelaBushels. tive. Hour. Tota Af rain and Bushels.!*^ Barrels.!^- Bushels. | **£ i 33916,389,047 73J51,129,614 253 2,235,394 202 4,490,201 63 165,692,928 213 2,238,943 114:175,768,172 203 9128,731,387 5613,034,8521 5113,431,7971 4218,301,721 4310,301,200 30 21,098,146 18412,549,219 299 8,503,282 I 128;22,945,659 62 15,961,423 60:17,076,822 82 20,063,678 46:19,206,465 94:24,576,968 56:25,233,109 38.29,774.582 114 5,615,054 ! 2,406,029 85| 4,955,1301 99 5,493,493 95 4,280,9111 122 2', 79i; 618! 125 3,105,486 147 3,824,263 507 8,943,782 233 6; 556; 5941 448 11,723,691 "~ 9,634,405! 387 8,416,141i 252 12,878,517; "281 8,627,091 " "' ' 345 6,638,871 125 90,8S8,523[ 98 52,007,953' 163 60,955,936i 134 64; 706,602! 117 53,830,374\ 180 69,470,283" 120 99,127,020! 931129,455,557 117 1,396,888 72 1,032.36S 78 1,485; 320 831,990,349 69 2,447,200! 891,894,599! l271,572,420i 166i2,283,145! 7197,174,519 5656,653,609 76!67,639;876 10273,663.173! 125J64,842', 774 97177,995,979 80:106,202,910: 1171131,738,702 112 70 78 85 75 90 122 152 1 Flour reduced to its equivalent in wheat on "basis of 4£ bushels to barrel. Shipments of grain and flour at 14 interior centers. [Chicago, Cleveland, Detroit, Duluth, Kansas City, Little Rock, Louisville, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, Toledo, Wichita; shipments of flour not available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.] Wheat. Bushels. Corn. Bushels.!^ Barley. Rye. Oats. RelaBushels. tive. Total grain. Flour. Relai RelaRelaBushels. tive. Bushels. : tivc. Bushels. tive. Barrels. RelaI Bushels. tive. _(__„ 1918. August 38,853,689 252| 9,131,678: 64:23,092,361 152 1919. J a n u a r y . . . 9,934,531 February.. 8,876,844 March 14,857,872 April 30,764,._. ! May 31,901,327 June i 8,751,872 July :12,423,422| A u g u s t . . . . 136,986,491 64!l3,488,509i 62 8,649,063: 96 7,544,393; 19915,708,8421 207 7,784,931: 53. 8,629,052! 81: 8,102,275; 240 5,135,459, 95!19,769,237 65113,603,691 5316,183,222 11116,019,086 55 17,069,617 6115,638,317 57115,628,503 3617,919,623 130 96 107 105 112 103 103 118 807,119| 2172,658,395 147 3,831,826 113jS9,901,612 139 794,028 4,718,631! 404,365 61 6,006,178! 3,720,930 526 6,049,703 8,143,580 1,150 6,632,763! 7,525,794 1,0631 6,677,508! 2,740,593 387i 9,588,195! 218! 9,133,004i 1,546,100 203| 5,028,674j 1,436,377 12148,704,996 165 37,540,141 155 48,356,120 170 77,268,599 17170,959,177 246 44,74S, 029 234 46,833,304 129 66,506,624 99 2,796,463 81|1,932,258 9813,039,020 156|3,532,772 144(4,320,146 9113,130,826 9512.589,176 135 3,805,273 83:61,289,080 6L46,235,302 9062,031,710 104193,166,073 128190,399,834 9258,836,746 76^8,484,596 112!83,630,353 95 77 96 144 140 91 90 129 773,548 109 1 Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel. 976 October 1, 1919. FEDERAL RESERVE BULLETIN. Receipts of grain and flour at nine seaboard centers. [Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not available for Seattle and Tacoma.] [Compiled from reports of trade organizations at these cities.] [Monthly average, 1911-1913=100.] Corn. Wheat. Barley. Rye. Oats. Total grain. RelaRelaRelaRelaBushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. 1918. August 1919. January... February.. March April May.... June July.... August 41 2,970,341 190 1,473,105 23,930,107 411,366 783,263 636,127 089.425 ,58S;.57li ,051,177 901,842 815,132 78 66! 109 100 112 81 46 214; 768,801 S05,81l! 789,851! 581,074 157,852 260,075 806,227 902,757 120 170,847 9,275,187j 4,713,794 3,254,914 4,604,521 5,642,176: 10,249,644! 6,959,186! 23 5,676,984 j 195 97 119 216 - "! 146 119 566,191 2,299,664 3,880,424 5,069,529 7,061,048 3,670,055 1,479,995 64,510 Flour. 43 29,258,503 1,738,326 1,734 995,454 2,731 2,285,954 3,568 1,853,372 4,970 3', 561,412 2,583 6,564,620 l,042j 9,723,852 45} 4,993,39;" 105 22,759,871 64 16,597,986 138 ~^ 23 23,847,270 112 25,197,921 215 32,011,059 396 31,695,571 586 24,871,058 30138,452,778 129 nour.i Rela- Bushels. Relative. tive. tim B^ls. 714,103 Total grain and 589,303 56 31,910,367 116 100 2,026,216 78!l,302,061 1051,644,676 111:2,549.370 14l;2,535;547 14012,340,158 HOll, 514,135 1691L, 385,762 194 31,877,978 134 22,457,261 157 31,248,312 244 36,670,086 243 43; 421,021 224 42,326,282 145 31,084,666 133 44,688,707 116 88 114 134 158 154 116 163 I i I 1 Flour reduced to its equivalent in wheat on basis of Q bushels to barrel. Stocks of grain at eight seaboard centers at close of month. [Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.] [Compiled from reports of trade organizations at these cities.] [Bushels.] Oats. Corn. Wheat. Rye. Barley. Total grain. 1918. August 16,041,604 649,169 2,464,705 153,275 1,720,251 21,029,004 15,365,491 12,635,613 12,732;472 7,448,992 7,913,162 4,180,160 5,557,644 17,396,269 645,317 417,520 346,543 464,503 448,020 214,079 265,196 155,491 5,495,937 6,110,159 5,650,120 5,335,971 4,047,059 5'. 475,856 3', 760,063 2,216,989 1,972,696 1,735,876 1,920,348 3,434,873 1,690,860 514,252 867,491 578,250 3,047,346 3,930,465 4,403,665 5,420,013 4,263,510 6,783,798 5,528,176 5,414,183 26,526,787 24,829,633 25,053,148 22,104,352 18,362,611 17,168,145 15,978,570 25,761,182 1919. January February March April May June July August ' NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton. Colion. [New Orleans Cotton Exchange.] [Crop years 1911-1913=100.] Sight receipts. Bales. 1918-19. August September October November December January February March April May , Season, total Overland movement. Port receipts. Relative. Bales. 401,860 988,156 1,632,921 1,710,666 1,709,734 1,392,468 768,444 601,858 494,106 536,139 32 79 130 136 136 111 61 48 39 43 226,242 536,190 779,371 641,283 690,782 705,493 477,696 460,066 462,363 502,082 11,724,104 78 305,143 24 Relative. Rela- i live. Bales. 50,482 42,028 158,768 217,450 157,038 157,270 106,368 75,489 79,700 99,041 American spinners' takings. Bales. Relative. Stocks at ports and interior towns at close of month. Bales. Relative. , ! I ! 40 151 207 149 149 101 72 76 94 372,394 352,025 697,623 1,007,892 929,491 705,353 383,157 202,556 149,566 193,016 82 77151 222 205 155 84 45 33 42 1,306,868 1,644,690 2,189,007 2,745,815 2,697,141 2,637,908 2,689,3792,604,549 2,484,852 2,417,631 111 140 186 233 229 224 228 221 211 205 6,735,898 61 I 1,528,262 I 121 5,850,715 107 1,928,959 164 238,271 41,472 i 39 302,238 67 1,412,048 120 1919-20. August October 1, 1919. 977 FEDERAL RESERVE BULLETIN". California shipments of citrus and deciduous fruits. Oranges. Lemons. Carloads, i Relative. Total deciduous fruits. Total citrus fruits. Carloads. Relative. Carloads. Relative. Carloads. 1918. August 767 31 732 181 3,120 3,180 5,113 5,450 5, SS8 3,618 2,568 1,785 128 139 200 223 211 149 105 531 658 897 1,038 1,501 1,520 1,038 436 131 174 221 256 371 375 256 108 53 9,126 128 144 211 228 259 181 127 78 109 198 67 36 276 896 4,199 6,601 1919. January February March April May June July August 73 3,651 3,838 6,010 6,488 7,389 5,168 3,606 2,221 Sugar. [Data of International Sugar Committee for ports of Boston, New York, Philadelphia, Savannah, New Orleans, Galveston, San Francisco.] [Tons of 2,210 pounds.] Receipts. August January February March./. Raw stocks ;! at close of j month. ! Meltings. 1918. 1919. 218,690 263,383 213,806 389,815 355,710 197,115 337,420 361,010 Receipts. ;! 100,392 h April !; May |, Juno 66.189 j: July 122'757 I: August 100.889 !i Raw stocks at close of month. Meltings. 1919. 450,938 471,205 429,617 391,557 333,686 387,518 | 446,685 493,293 435,247 356,048 185,315 201,301 151,692 115,341 85,650 Sugar. [Data for ports of New York, Boston, Philadelphia.] [Weekly Statistical Sugar Trade Journal.] [Tons of 2,2-10 pounds. Monthly average 1911-1913=100.] Receipts. Tons. 1918. August... 159,252 | Raw stocks at close of month. Meltings. Rela- i tive. I Relative. Tons. 87 j 175,000 j 95 Receipts. Relative. Tons. Tons. 23 •9,375 • ! 1919. January.. February. March 172.054 283,1.72 232,471 93 I 147,000 : 165 : 229,000 ' 126 : 201,000 134 142 21 53 36 36,544 90', 716 62,187 1919. April May Jurio Julv August Relative. 318,492 j j 325,730 ! ! 271,875 j 264,782 i 246,419 j Raw stocks at close of month. Meltings. 173 177 148 144 134 Relative. Tons. 277,000 307,000 313,000 292,000 229,000 151 167 171 159 125 Tons. 107,582 126,318 85,193 57,975 75,39-1 Relative. 62 73 49 34 44 Naval stores. [Data for Savannah, Jacksonvile, and Pensacola.] [In barrels.] [Compiled from reports of trade organizations at these cities.] Spirits of turpentine. Spirits of turpentine. Rosin. Stocks at Stocks at Receipts. close of Receipts. close of month. month. Stocks at !Stocks at Receipts.1 close of Receipts. close of month. month. August January February March "II" 1918. 1919. 7,645 5,583 4,226 125,541 121,676 97,450 April... j May.... ! June 285,808 \- J u l y . . . . 259,974 |i August. 257,085 20,054 ; 121,818 34,835 22,154 14,338 243,813 Rosin. 1919. 8,379 26,358 31,904 27,747 21,013 75,546 47,115 33.733 30;656 24,756 19,493 50,435 63,450 77,062 74,402 225,657 229,404 221,612 235,707 203,812 978 October 1,1919. FEDERAL RESERVE BULLETIN. Lumber. [From reports of manufacturers' associations.] [M feet.] Western pine. Southern pine. Num- Produc- Shipber of tion. ments. mills, i tion. mills. Douglas fir.. Eastern white pine. North Carolina pine. Ship- NumShip- NumShipof Produc- ments. ber of Produc- ments. ments. ber mills. tion. mills. tion. Shipments. mills.! !_ 1918. August 202 391,648 44,47 151,156 109,402 130 i 292,200 275,000 95,942 51,327 1919. January February... March April May June July August 200 195 198 203 205 204 206 204 330,137 325,241 21,49 328,069 309,494 24,48 378,752 361,125 27,48 397,005 397,677 43,49 414,899 460,238 45,48 360,084 426,193 49 401,939 466,786 48 417,036 423,002 48 40,354 46,037 71,426 124,341 140,037 156,561 114,853 152,748 68,910 71,103 81,328 97,679 127,730 139,923 140,680 140,236 122 122 120 114 111 115 114 118 7,565 6,802 7,118 11,431 24,548 29,741 27,382 20,247 15,172 17,081 17,525 14,020 17,136 26,525 22,470 26,839 437,776 225,688 228,031 251,650 264,623 345,984 300,410 268,634 416,422 227,129 238,035 255,544 266,308 388,803 327,364 301,050 397,290 31 24,118 34,377 31 25,806 32,110 22,369 1-1,375 20,733 22,326 27,177 23,898 18,034 22,672 21,877 17,393 28,865 34,191 30,159 RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO. [Chicago Board of Trade.] [Monthly average 1911-1913=100.] M feet. 1918. August ^i?^ January February March 1919. !1 Relative. M feet. 208,963 ! 134,604 | 97,511 ! 124,040 Receipts. Shipments. Receipts. Relative. 103 78,707 47,922 45,585 46,902 49 Relative. M feet. April May June July August 1919, Shipments. Mfeet. 144,253 162,365 184,862 200,148 170,385 59,055 66,001 80,762 90,134 87,953 Relative. 77 86 105 118 115 I Coal and coke. [Bituminous coal and coke, U . S . Geological Survey; Anthracite coal, Anthracite Bureau of Information.] [Monthly average, 1911-1913=100.] Bituminous coal, es- Anthracite coal, shiptimated monthly ments over 9 roads. production. Coke, estimated montly production. By-product. Beehive. Total. Short tons, j Relative. Long tons. Relative. Short tons. Relative. I Short tons. Relative. Short tons. Relative, August January February March April May June July August 1918. 1919. | 55,732,092 150 7,180,923 128 2,657,022 41,473,000 i 31,497,000 j 33,719,000 i ! 32,164,000 ' 37,547,000 36,806,000 42,946,000 42,883,000 i 112 91 91 87 101 99 116 116 5,934,241 3,871,932 3,938,908 5,224,715 5,711,915 5,619,591 6,052,334 6,144,144 105 74 70 93 101 100 108 109 2,401,567 1,822,894 1,768,449 1,316,960 1,135,840 1,170,752 1,512,178 1,808,595 102 2,387,675 92 ii 75 \\ -6,779,4 271 5,044,747 144 257 12,772,392 122 68 jJ 50j 43 45 58 69 T October 1, 1919. 979 FEDERAL RESERVE BULLETIN. Movement of crude petroleum in United States. [U. S. Geological Survey.] [Barrels of 42 gallons each.] Stocks at end of month. Marketed. Barrels. 1918. 30,645,000 August January February March Relative. 1919. 160 156 138 159 29,869,000 26,511,000 30,412,000 Stocks at end of month. Marketed. Barrels. Barrels. 139,472,000 ! April ' May June 129,558,000 July 128,910 000 August 131,110,000 1919. : ! ! i i Relative. 29,310,000 29,339,000 31,239,000 33,521,000 33,986,000 153 153 163 175 177 Barrels. 132,694,000 132,165,000 135,646,000 141,742 000 137,891,000 Total output of oil refineries in United States. [Bureau of Mines.] Gasoline (gallons). Kerosene (gallons). 29,170,718 332,022,095 156,828,826 658,439,682 79,303,107 26,987,332 25,232,876 27,866,775 27,775,217 30,207,227 28,920,764 31,202,522 303,710,556 283,518,194 311,306,755 319,807,838 354,472,377 338,336,985 342,491,757 158,501,260 164,181,787 170,290,930 183,453,728 190,345,026 178,974,224 205,727,289 589,630,056 553,853,753 574,774,158 588,808,408 652,106,738 632,205,805 638,185,469 68,304,613 62,503,072 67,063,995 70,954,128 76,442,252 64,636,153 67,037,414 14,026,525 349,928,604 432,807,129 519,012,839 136,460,207 15,380,185 14,820,601 15,10C), 361 15,184,844 16,372,314 16,775,723 15.304,915 383,212,692 458,449,187 546,062,429 593,616,170 594,035,688 593,896,610 514,919,358 332,393,181 303,062,436 294,677,623 276,356,837 244,635,631 252,542,434 279,855,061 646,411,414 692,816,000 749,067,806 807,895,498 788,740,572 811,790,637 817,809,519 158,370,431 152,297,163 165,495,254 170,122,088 173,754,109 175,384,775 173,881,303 Crude oil run (barrels). 1918. July ; i i : 1919. January February March April May June July ! ' Gas and fuel Lubricating (gallons). (gallons). Stocks at the close of month. 1918. July 31 1919. Jan. 31.. Feb. 28.. Mar. 31.. Apr. 30.. May 30.. June 30.. July 31.. Iron and steel. [Groat Lakes iron ore movements, Marino Review; pig iron production, Iron Age; steel ingot production, American Iron and Steel Institute.] [Monthly average, 1911-1913=100; iron ore, monthly average, May-Nov., 1911-1913=100.] Iron ore shipments from t h e u p p e r Lakes. Unfilled orders U. S. Steel Corporation at close of month. Pig iron production. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. August. January... February.. March April May June July August 1918. 9,725,331 161 3,389,585 146 1,412,239 6,615,341 3,302,260 2,940,168 3,090,243 2,478,218 109 2,108,056 132 ! 2,114,863 lol ! 2!28541 73 | 2,743,388 143 136 133 107 91 91 105 118 1919. 9,173,429 4,423,133 3,082,427 2,688,011 2,662,265 2,239,711 1,929,024 2,219,219 2,508,176 2,746,081 129 8,759,042 166 130 120 110 6,684,268 6,010,787 5,430,572 4,800,685 4,282,310 4,892,855 5,578,661 6.109,103 127 114 103 91 81 93 106 116 92 104 114 980 October 1, 1919. FEDERAL RESERVE BULLETIN. Imports of pig tin. [Department of Commerce.] [Monthly average, 1911-1913=100.] Pounds. 1918. August . 16,317,437 180 8,461,444 6,271,977 93 74 1919. January February. Pounds. Relative. 1919. March April... May June . July August . Relative. 8,284,970 504,903 449,270 112,000 113,120 9,872,459 91 6 5 1 1 109 Baw stocks of hides and skins. [Bureau of Markets.] [In pieces.] Cattle hides. 1919. Jan. 31 Feb. 28 Mar. 31 Apr. 30 May 31 June 30 July 31 Aug. 31 Calfskins. 5,601,700 5,584,730 4,949,791 5,009,961 4,549,004 4,696,332 4,966,081 4,654,085 Kipskins. 1,253,642 1,244,720 1,026,482 1,606,570 2,273,368 2,285,015 2,389,368 1,605,811 Goat. Kid. 492,353 4,238,026 418,339 5,670,216 366,817 7,831,595 367,528 11,976,556 386,244 15,121,868 558,033 16,691,195 554,516 15,589,9-14 416,391 14,408,726 Cabretta. 241,554 226,760 181,951 634,482 1,246,075 2,521,016 1,964,828 759,70S Sheep and lamb. 601,686 843,341 559; 576 1,520,350 2,044,524 1,697,754 6,835,383 8,826,399 7,863,313 8,970,912 8,039,531 8,118,702 6,815,100 5,251,302 2,767,694 2,236,349 Textiles. [Silk, Department of Commerce; cotton, Bureau of the Census; wool, Tool, Bureau Bureau of Markets; idle machinery, January-September, 1918, inclusive, tion of Woo; Manufacturers.] National Association of Wool [Cotton, monthly average crop years 1912-1914=100; silk, monthly average 1911-1913=100.] Percentage of idle woolen machinery on first of month to total reported. Cotton consumption. Bales. 1918. August 1919. January February March./. April May June July August September... i I ! ' i i ! i : I j Imports of raw silk. Cotton spindles active during month. Spinning spindles. Looms. Wool consumption (pounds). "j j Wider Under Sets of Combs. than 50- 50-inch cards. Worsted, i Pounds. Woolen. inch reed reed space. space. Relative.! 534,971 119 I 33,601,305 51,516,457 12.2 14.3 6.0 556,721 433,516 433,720 475,753 487,998 474,407 509,793 502,536 124 ! 103 i 96 j 106 I 109 ! 105 ; 113 j 112 ! 33,856,472 33,282,593 32,642,376 33,213,026 33,556,011 33,943,405 34,184,407 34,187,310 32,573,970 23,186,818 29,320,063 39,159,945 45,084,834 48,849,892 54,973,093 48,938,476 40.3 52.3 58.1 48.4 36.6 29.6 22.0 22.1 19.9 32.6 41.5 42.4 38.9 32.9 26.6 26.0 24.9 22.8 32.2 38.7 39.1 26.5 17.1 15.4 10.2 30.7 39.8 47.8 j 34.2 22.5 ! 12.8 ! 7.6 I 6.5 5.5 9.7 9.4 8.1 6.6 36.5 41.1 41.8 28.4 16.8 15.2 8.9 8.9 7.9 Relative. 15.3 ! 3,813,595 186 37.5 48.6 52.7 36.1 25.8 21.1 13.5 10.9 12.8 71 91 87 146 238 188 254 186 1, 461,827 1, 742,812 1, 784,412 2, 988,838 4, 878,646 3, 848,354 5, 202,407 3, 802,500 Production of ivood pulp and paper. [Federal Trade Commission.] [Net tons.] Wood pulp. News print. Book. 1918. August 262,377 113,731 1919. January... February.. March 283,270 116,154 238,228 103,248 278,675 114,746 Paper board. Wrapping. Fine. 76,330 178,725 61,861 34,735 70,443 62,616 63,699 140,859 50,490 125,208 45,480 136,175 27,675 24,600 23,514 1919. April May June July August Wood pulp. News print. ! Book. Paper board. Wrapping. Fine. 284,984 294,067 277,142 260, 685 260,987 116,278 105,819 114,896 113,929 113,413 138,802 151,651 152,957 169,593 189,782 48,158 56,579 60,656 63,769 64,861 22,470 25,010 27,122 30,036 33,122 ! j 67,628 76,821 71,938 75,613 82,737 October 1, 1919. 981 FEDERAL RESERVE BULLETIN. Sale of revenue stamps for manufactures of tobacco in the United States (excluding Porto Rico and Philippine Islands). [Commissioner of Internal Revenue.] Cigars. I Cigarettes. Cigars. 1 Chewing i and smok- 1 ing tobacco. Large. Small. Small. 191S. July Numher. 634,609,533 Number. 79,237,849 Number. 3,796,878,822 1919. January February 518,706,482 476,329,947 72,458,974 60;138,630 3,079,212,253 3,126,274,662 Pounds'. 1919. 36,607,578 : March 1 April : May 29,308,616 : June 27,472,269 i July Cigarettes. Large. Small. Small. Number. 540,098,351 510,357,494 551,659,7-19 576,976', 572 569,965,088 Number'. 84,493,873 73,314,273 57,611,547 A 8' 855,070 47,290,267 Number. 3,815,079,275 2,650' 1.82,742 2.767.699,400 3', 140', 393,217 3,585,111,783 Chewing and smoicing tobacco. Pounds. 29,227,678 29,883,710 33; 340,102 31,312,150 33,838,667 Output of locomotives and cars. [Locomotives, United States Railroad Administration; cars, Railway Car Manufacturers' Association.] Locomotives. Output of cars. Output of cars. Locomotives. Domestic shipped. Foreign completed. Domestic. Foreign. Total. Numher. 214 Numocr. 77 Number. 2,437 Number. 4,847 Numher. 7,284 282 135 258 84 ] 64 123 8,172 6,623 5,978 3,635 4,657 5,795 11,807 11,280 11,773 Domestic shipped. Foreign completed. Domestic. Foreign. Number. 7,777 4,573 1,785 2,777 18,509 Number. 7,373 8; 533 5,307 6,936 5,015 ... 1918. August 1919. J a n u a r v . „„•' February March Number. Number. 3(5 107 31 207 •14 160 73 121 173 160 1919. April Mav June Julv August Total. _ Number. 15,150 13,106 7,092 9,713 23,524 Vessels built in United States, including those for foreign nations, and officially numbered by ike Bureau of Navigation. [Monthly average, 1911-1913=1100.] Number. Gross tonnnge. Relative, v 177 295,849 1,224 j : "l 1918. August Number. Gross tonnage. Relative. 201 250 272 2-io 238 375,605 395,408 422,889 397,628 455,338 1,554 1.636 1,750 1 645 1,884 19.19. 'fyf av Januarv February March June 1919. 132 135 186 .. 264,346 271,430 298,005 1,094 f July 1,203 i' 1,233 ' Tonnage of vessels cleared in the foreign trade. [Department of Commerce.] [Monthly average 1911-1913=100.] Net tonnage. American. | Foreign. Total. 1918. August 2,332,577 2,808,466 5,141,013 1919. January... February.. March 1,166,391 1,262,487 1,161,416 1,896,123 1,671,070 1,737,171 3,062,514 2,933,557 2,898,587 Net tonnage. Per cantage i• Rela-! of f l V Rela- Amori-| m tive. can to i total. ! 132 45.4 38.1 43.0 40.1 1919. 179 ! April May June 151 J u l y 170 August 158 I American, j Foreign. Total. ; Per ! centi ! age | I of i Rela-i Ameri! tive. can to I I total. Relative. | | 1,744,753 j 2,424,837 ' 2,339,320 2,362,571 2,957,249 ' 2,058,220 ( 2,469,194 j 2,511,501 : 2,920,247 i 2,797,818 3,802,973 j 98 4,894,031 | 126 4,850,821 125 i 5,282,818 136 : 5,755,067 148 • 45.9 49. 5 48.2 44,7 51.4 181 196 191 ' 177 203 982 October 1,1910. FEDEKAL RESERVE BULLETIN. Net ton-miles* revenue and nonrevenue. [United States Railroad Administration.] 1918. i August 28,629,739,000 32,440,708,000 31,953,366,000 34,914,294,000 36,361,653,000 40,776,125,000 1919. January February March..: 30,383,169,000 25,681,943,000 28,952,925,000 Commerce of canals at Sault Ste. Marie. [Monthly average May-November, 1911-1913=100.] EASTBOUND. Grain, other than ! wheat. I Bushels. August April May June July August 1918. 1919. Rela- ! tive. ! i Bushels. 1,360,698 15 501,050 4,176,041 9,370,374 6,694,901 7,100,008 5,284,741 105 75 SO 16,729,000 29,096,116 6,402,051 2,391,840 1,487,218 Iron ore. Flour. Wheat. Relative. Barrels. Relative. Short tons. Relative. Short tons. 73 9,507,067 160 9,743,473 139 1,139,326 6,622,227 8.004,897 8j 912,609 4,727,994 112 135 150 80 1,756,266 7,895,542 8,554,979 9,343,396 5,080,651 113 122 128 72 846,140 910,524 1,031,630 915,420 935,700 151 33 12 Total. Relative. WESTBOUND. Hard coal. August April May June July August 1918. , 1919. Soft coal. Total. Total freight. Short tons. Relative. Short tons. Relative. Short tons. Relative. Short tons. 299,555 97 2,517,603 131 3,046,328 122 12,789,801 135 142,864 248,263 227,200 344,462 185,387 73 111 60 415,824 2,239,738 2,266,984 2,037,265 1,189,558 117 118 106 62 616,897 2,670,784 2,664,437 2,572,756 1,529,310 107 107 103 61 2,373,163 10,566,326 11,219.416 11,916,152 6,609,961 111 118 125 70 Relative. October 1, 1919. 983 FEDERAL RESERVE BULLETIN. BANK TRANSACTIONS DURING AUGUST-SEPTEMBER. In the table below are shown debits to individual account for five weeks ending September 24, as reported by 153 of the country's most important clearing houses. In addition debits to individual account for each of the five weeks are compared with figures for the corresponding weeks of last year, comparable data being available for 107 centers. Aggregate debits to individual account for the week ending August 27 were about 8 per cent below the figure for the immediately preceding week; the next week was Labor Day week and contained only 5 business days, with the result that bank debits showed a normal reduction of about 13 per cent, which, however, was more than made up during the following week. The week ending September 17 saw an increase of 1.9 billions in these debits, due largely to payments of the third installment of income and excess profits taxes, and also to the large-scale fiscal operations of the Government in connection with the redemption and issue of Treasury certificates. For the last week of the period under review the figures show a recession of over 10 per cent from the exceptionally high total of the previous week. Debits to individual account reported for the five-week period August 21-September 25, 1918, show a movement from week to week similar to that described for the present year, except that the great increase caused by special conditions during the fourth week of the 1919 period was not shown for the corresponding week of 1918. Amounts of bank debits in 1918 constitute between 65 and 86 per cent of the amounts for corresponding weeks in 1919, the differences in most cases being no greater than can be explained by the rise in the price level. Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25, 1918. [In thousands of dollars.] Federal Reserve district. No. J.—Boston: .fiangor Boston FallHivcr Hartford , Holyoke Lowell , New Bedford New Haven Portland Providence Springfield Water bury Worcester No. 2.—New York: Albany Binirhamton "Buffalo New York Passaic ^Rochester Syracuse No. 3.—Philadelphia: Altoona Chester llarrisburg Johnstown Lancaster Philadelphia Heading. Scran ton Trenton Wilkes-Barrc William sport Wilmington York...'. i i I 1 I i 1919 1918 Week e n d i n g - Week e n d i n g Sept. 25. Sept. 18. Sept. 11. 2,516 213,439 5,434 16,053 2.954 4; 999 5,288 13,998 2,360 243,682 6,601 18,014 3,248 4,400 5,801 14,167 2,429 170,111 5,152 2,330 208,512 7,060 2,547 4,724 5,005 13,456 6,905 23,174 7,391 6.809 12.; 609 2,395 3,858 4,477 13,193 2,633 4,296 4,624 13,525 25,395 12,219 5,707 12,821 2,346 219,705 6,778 19,875 2,801 5,503 5,837 14.363 7,889 26,531 7,830 7,726 14,323 2,733 204,212 7,04.5 23,243 11,275 5,298 12,189 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 21,048 6,295 6,917 11,622 22,436 6,912 6,419 12,402 18,285 3,530 60,006 4,213,968 4,576 27,157 13,494 14,033 2,904 50,767 3,434,335 3,205 26,966 13,404 18,984 3,125 56,433 4,253,411 3,628 22,820 12,707 19,497 2,561 58,231 3,077,011 3,544 20,89t 8,292 15,205 2,923 60,532 3,014,507 3,984 23;706 13,205 15,563 2,623 55,276 3,512,698 3,385 19,992 7,233 14,485 2,147 47,253 2,997,636 2,788 19,835 10,575 17,012 2,481 49,877 3,084,885 2,895 28,803 3,489 3,707 4.199 3', 517 4,960 308,762 4,477 13,541 10 032 8^032 2,825 9,112 3,268 2,544 3,074 3,500 2,484 4,079 281,376 2,943 9,188 8,191 6,851 2,282 8,707 2,948 3,505 3,863 3,930 2,794 4,171 281,766 3,683 13,:I93 9 029 6,040 3,238 7,621 2,853 2,672 5,125 5,981 2,180 4,005 277,000 6,419 10,945 9 422 o'810 2,915 7,972 2,896 2,135 5,7(58 6,410 2,952 4,340 282,786 5,480 9,378 10 973 7,702 2,961 9,063 3,001 3,595 4,716 6,439 1,812 4,416 5,350 3,012 4,875 4,988 4,198 259,117 4,151 11,100 7 956 5,967 3,134 8,644 3,011 3,478 260,842 4,859 9,2(59 7,137 6,137 2,739 8,087 2,386 3,656 244,669 5,799 12,075 Sept. 17. Sept. 10. 2,743 268,291 9,309 20,277 3,274 5,417 7,143 15,696 6 087 30,4(50 17,115 7,799 18,134 •3,005 308,597 8,890 25,727 4,093 4,735 8,081 18,897 7 391 40,957 16,596 9,84-1 18,808 3,074 268,759 6,805 21,0(15 3,160 4,827 7,509 16,611 7,217 34,564 15,775 7,986 14,137 22,355 4,065 72,814 5,394,074 4,920 27 514 32,246 J 6,035 15,878 3,322 4,782 4,600 3 522 5,181 376,0J3 3,819 12,112 13 704 8',634 3,643 21,931 3,684 18,900 3,486 57,900 4,993,078 4,482 3,161 5,150 3,735 3,325 5,036 331,078 3,922 13,339 i() 599 (>J 9 1 1 3,970 16,682 3,699 Sept. 4. Aug. 27. Sept. 21. Sept. 3, Aug.. "28. 5,202 2,772 5,225 3,418 984 October 1,1919. FEDERAL RESERVE BULLETIN. Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25, 1918Continued. [Tn thousands of dollars.] 1919 Week ending— Federal Reserve district. No. 4.—Clcvela nd: Akron Cincinnati Cleveland Columbus Dayton Erie Grcensburer, PaLexington". Oil City Pittsburgh. Springfield Toledo Wheeling Youngstown No. 5.—Richmond: Baltimore Charleston Charlotte Columbia Norfolk Raleigh Richmond No. 0.—Atlanta: Atlanta Augusta Birmingham Chattanooga Jacksonville Knoxville Macon Mobile Montgom ery Nashville..'. New Orleans Pensacola Savannah T a m p a Vicksburg No. 7.—Chicago: Bay City; Bloomington Cedar Rapids Chicago Davenport Decatur Des Moines Detroit D u b u a u e Flint.'. Fort Wayne Grand Rapids Indianapolis Jackson ICalamazoo Lansing Milwaukee Peoria Rcckford Sioux City South Bend Springfield Waterloo, Iowa No. 8—St. Louis: Evansviile LittleRock Louisville Memphis St. Louis No. 9—Minneapolis: Aberdeen Billings Duluth Fargo Grand Forks Great Falls Helena Minneapolis St. Paul Superior Winona 1918 Week ending— ; Sept. 24. Sept. 17. j Sept. 10. Sept. 3. Aug. 27. 25,822 63,376 159,972 27,494 11,124 6,184 4,485 5,028 2,682 176,262 3,062 31,200 9,242 13,406 23,6(57 i ! 2 5 , 3 6 9 73,032 60,160 188,435 : 161,1.65 31,320 29,008 11,958 : 12,245 6,946 7,676 ' 4,672 : 5,360 4,722 5,609 i 2,729 2,565 162,214 198,264 3,453 4,097 29,894 36,850 7,349 8.602 16,434 17/289 102,337 7,170 4,600 6,935 17,871 3,710 30,740 120,002 7,144 5,400 6,462 19,050 3,721 31,188 98,9.13 90,704 4,538 3,400 5,711 14,572 3,062 22,684 94,439 ! 76,175 6.062 i! 4:200 5,788 6,0(54 I 17'. 427 I 15,911 3,050 3,574 23,480 23,112 73,294 3,200 6,189 17,424 4,191 27,947 17,1-15 i 3,26(5 ! 21,218 24,125 19,829 19,538 33,354 10,291 14,017 11,332 11,11.2 5,999 7,836 6,752 4,461 21,159 64,726 1,881 15,433 4,598 1,306 34,9.13 8,886 15.291 13; (597 10.5S2 f>|938 7,569 ()', 743 3,635 20,779 61,885 2,282 16,194 4.578 1^405 30,073 8,992 13,434 11,699 10,780 6,160 7,094 7,077 4,109 20,135 67,781. 2,139 15,013 4.708 1>24 24,099 6,91.2 11,799 9,302 9.608 5'. 378 7,920 6,758 3,462 15,518 53i320 1J908 13,396 4,030 1,2L4 2-1,575 5,766 10.728 13,832 13,680 9i 270 8,720 10,124 j 9,388 ! 5,749 4,918 I 5,91.7 I 7; 237 6,721. I 6.323 3,196 ! 4j 656 18,274 j 19,801 61,166 54,256 2,073 * 1,656 14.255 15,664 3', 664 3,485 1,083 1,629 23,339 9,946 12,010 8,753 9,750 5.057 7; 324 6,193 5,222 19.242 52J791 1,851 17,602 3,086 1,566 22,173 9,662 12,330 9,308 9,050 5,955 6,596 6,021 4,485 20,047 53,881 1,650 16,580 3,253 1,428 19,172 6,625 12,680 7.763 7,445 5,513 5166(5 5,594 3,398 18,094 48,477 1,727 13,099 3,030 1,266 17,156 6,257 11.619 7,175 9,634 4,544 4,906 5,024 2:859 16;903 53,180 1,525 10,669 3,375 1,057 2,755 2,959 9,673 652,077 7,48(5 3,702 20,242 140,058 2,586 10,119 5,460 19,435 32,918 4,81.3 3,866 5,415 68,56(5 9,215 4,797 13,367 4,11.5 4,961 3,472 3,551. 3,400 8,242 791,7-14 I 7,642 4,618 22,718 190,426 2, (523 9,376 5,092 20.227 39;442 4,644 4,438 5,728 70,367 10,854 6,182 13,536 3,974 5,354 3,816 3,058 2,425 9,152 050,802 8-, 085 4,1(55 25,571. 126,057 2; 458 ,8,005 5,703 2,1,276 34,239 4,977 3,859 4,833 56,770 10,294 5,306 13,698 4,019 5,270 4,088 2,431. 2,797 9,243 548,187 6,300 3,764 17,088 107,131 2,236 7,932 4,521 16,256 26.907 3', 784 3,2.14 5,835 51,190 8,674 4,183 10,800 2,828 4,010 2,774 2,654 2,383 2,390 2,555 1,947 2,258 8,462 6 1 1 , 4 1 9 I 527,579 ! 610,17!) 6,732 i 5,972 ' 6,200 3,663 j 2,875 2,936 19,662 i 120,139 i 98,3C9 105,211 2,089 I 1,800 2,242 8,827 ] 4,105 4,909 I 5,408 4,312 1 8 , 9 1 6 ! 16,959 14,030 26,852 I 29,181 30,759 4,142 i 2.636 I 2,093 2,995 5,559 3,103 ""51^625 4 9 , 5 1 . 3 ! 49,102 8,50S j 11,977 10,612 4,638 1 4,448 4,370 13,965 11,012 ! 10,769 3,585 3,004 2,838 ! 4,316 4.390 4,253 2,583 2,901 3,224 j 2,251 2,273 42S.084 5,306 2,854 482,999 4,426 3,175 4,281 8,719 34,371 24,598 137,553 4,601 9,387 36,396 29,629 175,606 5,613 10,273 32,288 23,958 142,146 4,256 10,019 25,968 23,746 114,866 4,383 6,182 29,464 21,484 124,052 1,944 2,100 2.265 1,946 20,81.5 24,889 9,337 9,393 1,991 2,288 2,699 2,419 2,875 2,679 102.807 104,520 39; 563 43,271 1,889 2,227 1,278 ; 1,582 2,283 2,390 20,493 9,144 1,818 2,184 2,136 107,903 53,252 2,261 1,161 1,780 1.969 17;263 7,729 1,514 1,797 3,752 78,255 31,395 1,753 899 21,235 19,933 49.877 48,653 I 145;904 132,91.1 I 24,492 26,887 11,946 = 11,205 j 5,122 6,039 i 3,587 I 3,360 4,374 i 4,405 2,01.0 I 2,650 i 127,953 1 1 5 5 , 3 0 9 3,709 i 3.513 j 2 3 , 0 5 6 ! 2 5 , 9 6 3: 5,714 I 8.797 13,172 ! 15,034 Sept. 25. 14,305 51,442 ! 21,221 10,968 6,4.45 2,639 3.357 3j 385 ! 2,181 I ! 20,880 Sept. 18. Sept. 11. | Sept. 4. 51,334 49,385 21,946 11,006 7,054 2,705 3.302 2; 132 23,392 11,512 6,454 2,552 2,643 23.786 6J887 ! 11,835 ; 11,138 7,482 I 23,419 4,700 j 4,066 7,212 ! 7,395 26,120 I 27.091 38,750 24; 210 136,202 139,877 2,023 1,937 1,564 1,832 17,690 ! 7.637 4,800 1,560 1,468 1,982 3,602 3,219 2,099 73,999 113,331 30,580 35,696 1,697 ! 2,145 i 1 ! i 45,754 45,417 18,843 9,478 5.315 2,680 18,703 10,519 5,238 2,623 21,856 9,183 15,857 3,136 17,012 76,302 68,713 396.781 I 6,002 i 3,020 I 82,993 ! 87.739 1,966 ! l;5S7 3,657 5,663 : 10,853 22,457 '*26J754"i 3,085 I 2,532 2,830 j 52,552 !"30,"552 10,464 I 9,382 4,654 3,659 li;693 '""4,"429" 4,667 3,949 2,832 2,392 4,391 3,219 8,194 5,312 25,250 20,720 22,572 15,440 127,962 118,837 2,280 2,255 30,000 'i2,'l.87 2,233 I 2,432 i 1,890 2,011 Aug. I I 7.1,398 1,926 93,950 4,196 "27," 191 39,104 6.224 4; 102 3,703 2,665 , 2,990 4,822 23,342 23,600 127,232 1,796 1,519 1,760 66,058 23,086 1,401 1,526 96,000 23,280 1,688 3 , 5 8 1 |. 3,275 i . 1,920 ! 2,198 107,739 ! 98,299 33 3 3, 335 57 7 ! 2 8 , 4 9 3 2,235 2,238 October 1,1919. 985 FEDERAL. RESERVE BULLETIN. Debits to individual account at clearing-house banks during each of the five weeks ending Sept. 24, 1919, and Sept. 25,1918Contiimed. [In thousands of dollars.] Federal Reserve district. Sept. 24. No. 10—Kansas City: Atchison Bartlesville, Okla.. Colorado Springs.. Denver Joplin Kansas City, Kans Kansas City, Mo... Muskogee, Okla... Oklahoma C i t y . . . . Omaha Pueblo St. Joseph Topeka Tulsa Wichita NO. 11—Dallas: Albuquerque Austin Beaumont Dallas El Paso Fort Worth Galveston Houston San Antonio Shreveport Texarkana Tucson Waco No. 12—San Francisco: Berkeley Boise Fresno Long Beach Los Angeles Oakland Ogden Pasadena Portland Reno Sacramento Salt Lake City San Diego San Francisco San Jose Seattle Spokane Stockton Tacoma Yakima." 139895—19 6 1919 1918 Week e n d i n g - Week e n d i n g - Sept. 17. Sept. 10. Sept. 3. | Aug. 27. 582 2,166 3,050 29,308 2,966 3,143 92,610 4,634 18,527 48,738 2,924 14,201 4,855 22,680 11,534 590 3,159 3,451 33,867 3,563 2,999 110,692 5,978 19,621 77,723 3,057 19,408 6,483 24,545 12,836 1,105 2,756 3,400 33,398 3,342 2,983 104,843 4,092 20,367 73,786 4,121 17,565 5,472 22,163 15,303 921 2,775 2,958 26,732 2,624 3,342 91,021 3,470 15,046 59,559 2,714 15,486 5,672 18,014 13,824 16,330 66,425 3,227 16,149 4,790 20,579 13,407 1,531 2,720 4,440 47,285 6,400 21,919 8,804 31,154 7,421 11,688 1,863 1,021 4,600 1,474 2,859 3,901 40,017 6,319 23,453 10,787 36,557 7,610 6,295 2,372 1,164 3,751 1,713 3,441 4,994 34,383 7,739 19,175 10,435 33,487 8,839 5,790 1,474 1,144 3,590 1,405 3,562 2,570 28,201 6,308 18,281 8,742 28,497 5,815 4,436 1,198 1,905 2,870 1,361 2,814 3,924 28,551 6,319 19,394 9,317 32,256 6,798 5,475 1,522 680 2,802 2,752 2,333 2,948 3,200 9,641 11,318 3,542 4,267 79,787 90,259 15,648 14,483 3,745 4,484 4,440 2,688 59,608 45,662 2,965 3,408 14,726 16,019 18,375 16,550 6,141 4,487 240,128 188,051 6,103 6,043 55,248 60,637 14,648 15,561 4,318 5,486 11,471 ! 14,714 3,274 I 3,074 2,371 4,406 8,025 2,993 73,039 12,066 4,111 3,417 42,005 2,446 11,290 17,174 4,784 173,932 4,846 57,300 13,709 3,182 11,471 3,891 2,035 2,524 5,840 3,262 63,031 12,518 3,158 2,666 42,954 1,972 2,876 2,426 6,123 2,662 64,017 • 12,867 3,212 2,650 38,117 2,100 12,526 15,081 4,245 189,865 5,087 48,031 9,717 3,562 12,946 2,524 11,391 4,004 151,157 4,851 44,917 11,023 4,885 9,748 2,946 994 2,446 2,793 30,432 2,710 98,010 Sept. 25. Sept. 18. Sept. 11. 983 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 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 8,324 913 1,793 2,401 29,216. 3,777 3,356 105,876 2,246 13,231 74,663 2,903 19,193 4,848 15,067 11,230 22,255 3,048 2,283 88,654 1,827 7,947 62,186 2,106 1,3221,860 2,036 25,458 3,679 2,782 79,716 2,051 10,235 58,419 2,569 3,620 10,937 15,918 3,518 15,543 8,581 2,742 4,146 30,523 4,878 16,390 7,252 36,715 3,786 3,736 32,714 5,216 14,833 7,869 25,775 3,252 3,816 30,595 4,393 14,892 7,919 29,614 2,464 3,069 25,687 3,720 12,524 6,669 35,547 5,639 1,228 1,413 3,738 5,854 1,849 6,031 1,289 4,488 1,231 4,062 1,212 5,073 4,455 2,314 6,262 2,004 46,382 12,015 3,808 1,766 51,126 1,460 11,857 15,530 4,480 148,046 6,262 2,098 53,995 8,194 3,607 1,987 43,604 1,753 16,118 11,686 5,040 156,505 4,802 1,640 31,226 10,527 3,594 1,836 38,512 5,614 1,905 35,942 9,274 2,861 1,797 33,533 4,442 1,707 27,196 9,967 2,365 1,504 39,041 14,139 4,591 144,820 9,779 4,015 148,807 10,933 4,310 145,869 51,368 9,742 3,855 9,625 1,568 48,579 9,865 5,150 13,103 1,750 43,056 34,248 6,814 41,908 8,690 13,306 2,290 8,347 1,610 11,076 1,479 Sept. 4. 1,216 1,654 1,929 Aug. 28. 2,929 22,131 4,545 23,257 986 FEDERAL RESERVE BULLETIN. Recapitulation October 1,1919. showing figures for clearing house centers reporting each of the five weeks ending Sept. 24, 1919. [In thousands of dollars.] Number of centers included. Federal Reserve District. No. No. No. No. No. No. No. No. No. No. No. No. 1919 Week e n d i n g Sept. 24. Sept. 17. Sept. 10. Sept. 3. 405,658 5,121,401 413,607 539,939 166,193 214,260 1,032,057 209,522 187,463 261,918 150,846 474,934 468,230 5,546,352 464,947 614,036 185,823 215,410 1,238,024 255,619 197,314 327,972 146,559 566,553 404,272 4,341,916 379,921 527,078 157,864 210,518 1,014,200 214,278 205,025 314,696 136,204 445,168 316,716 3,545,614 338,167 442,241 140,193 174,654 852,115 178,855 148,106 264,158 113,790 354,415 4,371,108 345,686 464,749 148,660 184,509 936,414 185,565 142,831 284,393 121,213 428,108 9,177,798 10,226,839 8,351,140 6,899,491 7,907,651 1. Boston 2. New York 3. Philadelphia... 4. Cleveland 5. Richmond 6. Atlanta 7. Chicago 8. St. Louis 9. Minneapolis 10. Kansas City... 11. Dallas 12. San Francisco. Grand total. Recapitulation 153 Aug. 27. showing figures for clearing house centers reporting each of the five weeks ending Sept. 24, 1919 and Sept. 25, 1918. [In thousands of dollars.] Federal Reserve District. No. No. No. No. No. No. No. No. No. No. No. No. 1. Boston 2. New York 3. Philadelphia... 4. Cleveland 5. Richmond 6. Atlanta 7, Chicago 8. St. Louis 9, Minneapolis 10. Kansas City... 11. Dallas , 12. San Francisco, Grand total Number of centers included. 1918 Week e n d i n g - 1919 Week e n d i n g Sept. 24. Sept. 17. Sept. 10. Sept. 3. Aug. 27, Sept. 25. Sept. 18. Sept. 11. Sept. 4. Aug. 28, 291,149 385,381 442,503 383,207 300,663 336,401 287,431 313,803 289,705 247,827 5,105,366 5,530,474 4,328,422 3,532,210 4,358,401 3,181,738 3,120,857 3,609,537 3,084,144 3,185,953 295,691 399,683 447,721 366,372 327,492 338,863 331,740 339,027 314,072 309,375 109,877 96,402 139,378 160,836 138,253 114,493 118,807 110,956 115,126 112,599 90,936 88,542 133,077 151,190 126,860 113,448 117,919 99,287 94,512 100,427 156,513 214,260 215,410 210,518 174,654 184,509 186,716 184,962 182,428 159,549 673,661 935,671 1,138,967 913,294 770,468 845,917 742,895 840,193 598,514 602,304 181,986 209,522 255,619 214,278 178,855 185,565 212,984 202,039 188,369 163,558 124,013 94,101 149,078 154,797 167,835 116,935 111,518 155,208 147,141 133,508 217,769 247,717 308,564 297,131 248,672 268,244 257,519 254,507 271,520 225,5S0 83,657 67,029 80,411 111,634 106,248 98,302 79,952 87,364 90,381 83,013 310,487 456,267 545,664 427,917 368,615 412,057 363,722 366,275 324,328 304,546 8,487,034 9,457,993 7,672,389 6,326,457 7,365,565 6,020,577 ,062,055 6,208,864 5,456,339 5,705,064 October 1,1919. FEDERAL. RESERVE BULLETIN. 987 DISCOUNT AND OPEN MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS, Discount operations during the month of On the last Friday in August the Federal August aggregating $6,433,662,286 were nearly Reserve Banks held a total of $1,815,134,000 15 per cent less than the month before, though of discounted bills, compared with $1,867,about 70 per cent larger than for August of last 602,000 on the last Friday in July and $1,428,year and even in excess of the December oper- 195,000 on the corresponding date in 1918. ations of that year, which for the first time Of the total discounts on hand at the end of showed a volume exceeding six billions. The August, 88.7 per cent was the share of war total for the month under review includes paper, compared with about 87 per cent about amounts of bills discounted for other Federal the close of the previous month and 63 per Eeserve Banks, which totaled $215,987,000, cent about a year before. At the New York as against $332,555,000 the month before. bank this share was about 94 per cent, and at Nearly the entire decrease of about 750 mil- the Boston and Philadelphia banks but slightly lions in the monthly total of discount opera- less. Discounted trade acceptances on hana tions since July is accounted for by the smaller about the close of the month totaled about operations of the three Eastern banks. Of $9,001,000, as against $9,600,000 about the end the other Federal Reserve Banks, Cleveland, of July and $15,487,000 about a year previous. Kansas City, Richmond, and Dallas show Holdings of agricultural paper totaled small decreases in discount operations, while $30,363,000, as against $28,639,000 about the the remaining banks report slightly larger end of July, while holdings of live-stock paper totals than for July. were $27,538,000, as against $34,965,000 a War paper, as in previous months, consti- month before. Of the total agricultural paper tuted about 95 per cent of the total paper dis- over one-half was held by the Dallas and San counted during the month. Discounts of Francisco banks, while of the total live-stock trade acceptances for the month of August to- paper nearly 60 per cent represents the holdtaled $6,427,411 (compared with $8,504,928 ings of the Kansas City bank. for July), and with the exception of $366,333 The month witnessed a net increase in memcover transactions in the domestic trade. bership by 24, the total number of member Bankers' acceptances discounted during the banks at the close of August being 8,904, as month aggregated $181,944, member banks7 against 8,876 at the close of July. Member bills secured by eligible paper $20,028,459, as banks accommodated during August by disagainst $20,983,025 in July, while ordinary count of paper numbered 3,460 as against commercial and agricultural paper totaled 3,685 the month before. In the following ex$235,824,380, compared with $328,645,879 for hibit are shown the number of member banks the month previous. in each Federal Reserve district at the end of Nearly 98 per cent of the total discounts for July and August, also the number in each the month was 15-day paper, i. e., bills ma- district accommodated during each of the two turing within 15 days from date of discount or months: rediscount with the Federal Reserve Bank. of member Six-month bills (all agricultural and live-stock Number of member Number banks accommobanks in district. paper) totaled $4,216,353, compared with dated. Federal Reserve Bank. $9,345,071 the month before, the reduction August July 31. July. August. in the volume of this class of discounts ap31. parently corresponding to the reduced demand 250 243 429 429 Boston for bank credit in the agricultural districts New 402 381 736 741 i York 413 389 669 670 | Philadelphia... during the crop-moving season. The average Cleveland 199 213 830 835 I maturity of all the paper discounted during Richmond 321 299 572 572 233 241 427 427 Atlanta the month works out at 9.33 days, as against Chicago 497 468 1,364 1,359 190 185 528 i 528 9.39 days for July. About 89 per cent of the St. Louis 151 163 896 I 894 Minneapolis paper discounted during the month took the 4 Kansas City 381 295 1,014 | 1,010 398 341 748 | 745 per cent rate and nearly 10 per cent the 4J- Dallas 250 242 680 | 677 San Francisco.. per cent rate; the average rate of discount 3,685 3,460 8,904 i 8,876 Total charged during the month works out at 4.12 per cent as against 4.15 per cent the month Bills purchased in the open market during before. Corresponding averages for the three months ending August are 9.51 days and 4.15 August largely by the New York bank both for its own account and for account of other per cent. 988 FEDERAL RESERVE BULLETIN. Federal Reserve Banks totaled $194,210,625, compared with $276,484,830 in July and $162^796,413 in August, 1918. Of the total bills purchased, $192,404,661 were bankers' acceptances, over 80 per cent of which were based upon foreign trade transactions. Purchases of $1,424,714 of trade acceptances, likewise based largely upon foreign-trade transactions, are reported by the Federal Reserve Banks of New York, Cleveland, and San Francisco. The average maturity of all bills purchased during the month was 50.73 days, compared with 51.21 days for July and 49.05 days for the three months ending August, while the average rate of discount charged works out at 4.25 per cent, which is also the average rate for the quarter ending August. October 1, 1919. On August 31 the Federal Reserve Banks report a total of $367,164,000 of purchased bills on hand, compared with $373,240,000 on July 31, 1919, and $234,770,000 on August 31, 1918. Of the most recent total all but $1,790,000 were bankers' acceptances, and of the latter $264,815,000, or 72.5 per cent, were member bank acceptances, while of the remainder $43,828,000 were bills accepted by private banks and bankers, $20,955,000 by foreign banks and their agencies, and $35,776,000 by other nonmember institutions. Of the $1,790,000 of purchased trade acceptances held at the end of the month, all but $561,000 were foreign trade acceptances drawn largely by exporters in the Far East and reported by the New York and San Francisco banks only. Total investment operations of each Federal Reserve Bank during the months of August, 1919 and 1918. Bills discounted for member banks. Federal Reserve Banks. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco 3245,378,612 3,528,702,368 922,775,286 273,718,342 382,999,948 181,645,613 377,616,768 152,420,283. 38,192,798 104,078,485 94,639,852 131,493,931 | Bills bought Municipal in open warrants. market. §42,565,466 64,910,476 509,732 16,755,025 5,492,600 2,286,371 23,529,003 7,489,809 7,642,665 21,115 499,659 22,528,704 Total investment operations. United 'nited Statesl Total United States of I States Victory- certificates notes. indebtedness.! securities. August, 1919. August, 1918. United States bonds. i $100 ! §100,000 $288,044,078 §142,880,762 99,464,000 3,693,076,844 2,427,233,888 925,992,018 2,707,000 150,366,382 294,517,467 4,044,100 146,589,352 389,592,648 1,100,100 174,826,575 185,931,984 2,000,000 84,170,635 462,339,271 61,193,500 416,849,317 159,890,092 92,879,874 2,690,000 48,525,463 87,403,974 6,165,000 110,264,600 58,860,158 95,939,511 800,000 69,044,935 154,633,135 610,500 104,506,085 §100,000 99,464,000 2,707,000 4,044,000 1,100,000 2,000,000 61,193,500 8100 2,690,000 6,165,000 800,000 610,500 194,210,625 100 Total August, 1919.. 6,433,662,286 Total August, 1918.. 3,762,259,098 162,796,413 350,276 284,650 Total 8 months end1,000 1,327,825 ing Aug. 31,1919.. 49,682,127,401 1,543,714,022 Total 8 months ending Aug. 31, 1918.. 17,794,150,413 1,018,270,515 1,689,155 72,453,213 1 180,874,000 30,221,500 100 180,874,200 30,506,150 6,808,747,111 3,955,611,937 373,850 1,978,374,500 1,980,076,175 53,205,918,598 3,092,536,660 % 164,989,873 21,979,099,956 4£ per cent Liberty bonds. Average amount of earning assets held by each Federal Reserve Bank during August, 1919, earnings from each class of earning assets, and annual rate of earnings on basis of August, 1919, returns. Average balances for the month oi the several classes of earning assets. Federal Reserve Bank. Boston New York Philadelphia... Cleveland , Richmond Atlanta Chicago St. Louis Minneapolis..., Kansas City.... Dallas San Francisco., Total August, 1919. . Total August, 1918. Discounted bills. Purchased bills. §125,573,386 685,519,941 193,261,632 118,212,830 89,217,576 90,154,929 205,291,991 68,098,301 33,561,000 71,733,184 54,836,900 66,425,634 $31,369,749 103,707,718 689,750 52,081,140 7,553,637 5,466,995 49,336,389 9,684,444 22,710,000 1,951,555 605,625 85,933,976 S22,007,308 66,109,300 27,337,016 21,530,971 9,687,329 11,794,072 45,126,051 18,221,400 7,835,000 20,331.764 10,304; 710 9,363,468 1.801,887,304 I', 337,701,494 371,090,978 217,108,523 52,165,448 United States Municipal securities. warrants. Total. $178,950,443 855,336,959 221,288,398 191,824,941 106,458,542 107,415,996 299,754,431 96,004,145 64,106,000 94,016,503 65,747,235 161,723,078 , 564,348 2,442,626,671 1,607,709,421 October 1, 1919. 989 FEDERAL RESERVE BULLETIN. Average amount of earning assets held by each Federal Reserve Bank during August, 1919, cowlings from each class of earning assets, and annual rate of earnings en basis of August, 1919, ret urns— Continued Earnings from— Federal Reserve Bank. Boston New York '" Philadelphia Cleveland... Richmond... Atlanta Chicago St. Louis Minneapolis. Kansas Citv. Dallas....: San Francisco Discounted bills. *. Total August. 1919 Total August; 1918 Calculated annual rates of earnings from— Purchased United States Mxmicipaij bills. securities. warrants.! i 8446,515 j 8111,935 | 2,360,599 ;i 373,241 2)487 660,546 409,717 i 186,823 29,375 323.867 20,476 304)534 j 724,820 I 177,337 34,717 239,320 i 80)548 116,479 | 7,010 270,492 | 2,374 ! 209:288 \ 249)348 | 302,822 837.919143.639 48)838 39,833 16,601 19,580 79,100 30.90L 13)817 41,433 17,890 16,542 ! 6,321.525 j 1.329.145 \ 4,943; 124 j 788) 280 506.093 127)415 Discounted bills. Total. United .\ runic [pal States securities warrants. Purchased bills. Total. Per cent. Per cent. Per cent. Per cent. Per cent. 4.19 4.20 2.03 3.92 4.05 4.18 2.56 3.96 4.02 4.24 2.13 •3.78 4.08 4.22 2.18 3.150 4.27 4.57 2.02 4.09 4.11 4.56 2.02 3.90 4.16 4.23 2.06 3.85 4.14 4.22 2.00 3.74 4.09 4.18 2.08 3.87 4.54 4.23 2.40 4.07 4.43 4.61 2.04 4.11 4.42 4.15 2.08 4.14 $596,309 2,877'. 479 711)871 636,373 369,8^3 344,590 981,257 304,938 210,844 324,935 229)552 568.712 4.13 4.35 8,156,763 S253 j 5,814,780 4-. 22 4.38 2.21 2.87 3.93 4.27 4.63 Bills discounted during the month of August. 1919, distributed by classes; also average rates and maturities of bills discounted by each Federal Reserve Bank. I Federal Reserve Bank. Boston New York Philadelphia Cleveland Riehmond Atlanta Chicago St. Louis. Minneapolis Kansas City Dallas.../. San Francisco Total. Customers' paper secured by Government war obligations. Member bank's collateral notes. Secured by Government war obligations. Otherwise j secured. 1 Trade acceptances. Banker's acceptances. All other discounts. Total. $128,777 | $24,652,827 ! $210,973,650 $1,005,000 8245, 378,612 §45,075 i 88,573,283 i 50,247,623 ! 3,375,900,008 12,747,381 98,530 i 99,708,766 3,528, 702,368 18,870 I 40,760,878 922, 775,286 ! 26,623,749 ; 855,176,865 3,000 i 191,924 273, 718,312 366,500 | 14,691,092 j 9,708,795 I 248,007,050 382, 999,948 2.924,500 i 292,559 7,404,164 ! 7,734,388 * 364,584) 337 181 645,613 '636,359 | 335,619 j j 9)490)909 ! . 2,177,602 | 168,999,124 377 616,768 I -1,220,208 i 348,490,000 4,415,000 215,162 ! ; 20,270,398 152 420,283 '294,500 I 3,187,891 i 139,488,089 416,385 i 9,500 ! 9,023,918 317,000 38 192,798 4,958 ' 36,971,203 6,772 j 1 892.805 8.432,443 104 078.485 592.671 ; 87,380,711 509,507 ! 9,909 ! 7,153)124 94, 039)852 218)223!: 87,873,553 1,311,157 3,800 I ! 5,233,023 '323,000 131, 493,931 ! 1.995,372 115,991,135 634', 464 ! ! 12,549,960 131,364,307 : 6,039,835,785 j 20,028.459 j 6,427,411 : 181,944 | 235,824,380 j 6,433,062,286 j Average Average rate maturity (365-day in days. basis). ! Per 14.45 6.67 7.31 14.22 11.51 16.85 17.40 12.39 15.42 17.97 17.94 17.14 I cent. 4.18 4.05 4.01 4.13 4.20 4.13 4.18 4.16 4.10 4.40 4.30 4.41 4.12 9.33 Includes §366,333 of trade acceptances in the foreign trade. Bankers' and trade acceptances in the foreign and domestic trade and finance bills purchased during the month of August, 1919; also average rates and maturities of total bills purchased by each Federal Reserve Bank. Bankers' acceptances. Federal Reserve Bank. In the domestic trade. In the foreign trade. Total. Trade acceptances. In the '; In the domestic! foreign trade. I trade. Total. ! Finance i bills. Total purchased bills. Average | maturity! basl). -iBoston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total I 88,254,928 I 8,522,804 112,173 4,307,795 1,299,400 1,495,404 4,283,852 1,997,281 2,686,882 21,115 499,659 3,077,065 36,558,358 834,310, 55,846, 397, 12,042, 4,193, 790, 19,245, 5,472, 4 905 18,041,781 155,846,303 542,565,460. 64,368,813 865,471 i,732 509,— 16,3350, 582 201,8 5,4492, 600 2,2280, 371 23,5529, 003 I 409, 592, 21, 499, 21, 718. 192,404,661 267,279 50,000 842,505,466 64,910,476 509,732 16,755,025 5,492,600 2,286,371 23,529,003 7,469,809 7,642,665 21,115 499,659 22,528,704 41.02 57.60 88.00 29.00 57.55 ! Per cenL! 4.24 4.23 4.27 4.22 4.56 4.56 4.28 j 4.22 4.22 5.00 4.50 4.24 1,157,435 : 1,424,714 ! 381,250 194,210,625 50.73 4.25 $287,442 ! §352,913 ! $188,750 110,135 ; 311,943 j ft 92,500 50,000 759,858 ; "759,858 j 50.80 44.09 44.56 52.50 37.63 54.73 65.22 990 'FEDERAL RESERVE BULLETIN". October 1,1919, Bills discounted by each Federal Reserve Bank during the 3 months ending Aug. 31,1919, distributed by rates of discount; also average rates and maturities of all bills discounted by each bank during the 3 months. 4 per cent. 4J per cent. 4£ per cent. 42 per cent. 5.per cent. Amount. |Discount Amount. Discount Amount. Discount Federal Reserve Bank. Boston .New York Philadelphia.. •Cleveland Richmond Atlanta Chicago. St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total. Amount. Discount. Amount. Discount 201,513 445,596,178 025,267,931 654,354,276 409,886,900 475,813,785 853,375,165 443,318,634 98,740,497 172,816,500 194, $538,816 §104,687,473 $921,414 $739,688 6,758,518 150,287,719 1,309,992 4,120,992 2,308,256 5,922,474 53,859 480,319 896,349 116,624,471 247,667 2,171,011 544,917 754,290,054 820,329 17,883,738 742,768 25,052,424 75,706 906,834 1,371,611 224,645,738 430,383 539,232 476,640 6,990,053 53,042 4,824,329 153,329 85,200 414 1,639,972 266,422 105,846,449 201,785 30,353,624 306,772 90,184,809 163,408 4,357,972 387,417,002 636,952 17,668,760,045 14,364,398 1,972,033,866 4,914,951 68,017,711 5\ per cent. S4,599 27,530 3,701 13,586 36,691 5,619 3,242 10,110 3,092 55,996 8,879 813,614,370 20,957,319 2,376,402 8,019,490 18,432,237, 17,741,269 54,932,552 14,675,563 1,975,806 2,686,331 5,445,347 1,124,858 8206,085 152, 12,057 379,000 14, 49, 648,518 118, 2,203,106 129, 389, 105, 741,056 10, 25,876,232 16 6,279,622 29, 9, 540 10,693,308 173,045 161,981,544 1,114,387 47,038,984 5} per cent. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Total. Discount Amount. Discount 8271,739 $401 10,000 20 5,977,335 5,000 118,695 5 6,264,074 119,121 21,912,527 $65,000 $137 2,239,462 482,471 1,425,607 13,511,907 105,000 4,083,080 45,207 10,114 30,076 273,306 231 86,023 Amount. 10,674 39,964 7,588 211,075 67,918 87,142 425,614 Average Average rate maturity (365-day in days. basis), per cent. Total. Federal Reserve Bank. Amount. $535 225 Discount $1,014,449,129 $1,554,106 10,620,974,265 8,249,225 3,034,426,126 2,380,353 781,440,987 1,207,079 1,201,206,447 1,531,319 521,717,418 993,224 1,135,742,149 2,240,012 470,291,050 655,699 104,608,138 204,824 351,091,043 1,025,222 306,738,751 695,885 403,323,248 819,662 445,094 I 19,946,008,751 j 21,556,610 13.36 7.00 7.11 13.76 11.03 16.72 17.12 12.21 4.19 4.05 4.03 4.08 4.22 4.16 4.21 4.17 4.65 4.26 4.38 4.45 16.76 18.90 16.65 9.51 ! 4.15 Acceptances purchased by each Federal Reserve Bank during the three months ending Aug. 31, 1919, distributed by rates of discount; also average rates and maturities of acceptances purchased by each bank during the three months. 4TS- P e r cent. 4 per cent. Amount. Discount. New York ^hiladolnhia Cleveland <U0,099,324 80,345,223 265 948 11,983;033 Atlanta Chicago St Louis . ATinn panolis 3 127 525 l,752,03J 703,296 Amount. Discount. 4£ per cent. 4A Per cent. 41 per cent. Amount. Discount. Amount. Discount. Amount. Discount. $89,634 S9,453,402 268,061 68,922,010 1,245 187,397 160,560 23,968,258 S55,939 531,098,370 561,347 128,817,013 233,350 3,539 195,685 10,448,172 $162,545 524,766 2,304 83,089 29,668,077 8,094,181 19,855,244 173,792 21,779,44.8 47,594 5,686,962 119,296 10,162,066 179,067 43,340 83,844 12,891,961 1,227,507 4,289,489 123,673 8,544 41,576 37,253,350 216,605 27,229,157 216,814 15,691,056 139,362 118,421 185,428,716 1,076,787 167,388,700 1,337,575 204,696,918 1,085,859 §25,579 S25,U0.760 9114,699 !SI 9,164,502 196,482 1,148,981 3,209 44,564,952 320 222.022 462 26,606,388 156,000 33,033 9,473 4,721 2,223 : B alias San Francisco Total 1,076,123 2,513 15,000 109,352,503 274,344 26,430,741' 4& per cent. Amount. Discount. 51 4 | per cent. Amount. Discount. 4i per cent. Amount. Discount. 4f per cent. Amount. 4^ per cent. Discount. $4 100 632 4,023,333 $27,187 39,071 »172,833 2,189,205 SI, 709 18,539 814,460 1,383,805 $157 12,252 1 780 258 3,155 476,819 1,428 MlnnGEiDolis 73,797 12 748 132 61,148 2,294 912 84,264 81,024 6 969 011 5,548,050 13,250 5,826,250 1 291,624 86,856 15,598 464 12,708,598 Dallas San Francisco 2,055,226 19,294 1,129,136 4,788 1,759,831 793,314 6,033 5,270 $261,880 $2,131 24,489,760 175,384 11,085,867 89,906 32,34o, 328 189,912 201,880 2,131 NPW York Philadplnhia Atlanta. Total Amount. Discount. $25,000 89,835 14,889 610,000 $171 858 177 1,937 101,650 1,194 841,374 4,337 : : i| 1 October 1,1919. 991 FEDERAL RESERVE BULLETIN. Acceptances purchased by each Federal Reserve Bank during the three months ending Aug. 31, 1919, distributed by rates of discount, also average rates and maturities of acceptances purchased by each bank during the three months—Continued. 41 per cent. Amount. Boston.. New York Philadeloliia Cleveland Richmond Atlanta Chicago St Louis Minneapolis Kansas Cit v Dallas San Francisco Total 5 per cent. Discount. Amount. Total. Discount. Amount. Discount. 8477,620 1, 624,585 5; 585 480,261 84,264 81,024 620,950 119,241 247,071 278 7,227 609,336 41.62 42.21 51.79 54.51 43.21 51.00 66.1.4 43. 56 60.97 87.80 30.79 61.04 4.22 4.24 4.26 4.23 4.56 4.56 4.27 4.23 4.22 5.00 4.60 4.25 4,357,442 49.05 4.25 $240,000 $2,287 26,000 •fi99,239,283 331,484,357 923,606 76,115,784 15,598,464 12,708,598 80,262,272 23,600,355 35', 023,345 $278 23,114 1,861,481 85,770,242 221 240,000 2,287 49,114 499 762,610,901 i §23,114 Average Average rate (365maturity day basis) in days. percent. Discounted bills, including member banks'* collateral notes, held by each Federal Reserve Bank on the last Friday in 1919, distributed by classes. [In thousands of dollars; i. e., 000 omitted.] Federal Reserve Bank. Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City..., Dallas San Francisco.. Total.. Member banks' collateral notes. Customers' paper Agricultu- Live-stock secured by ral paper. Govern- Secured by paper. ment war Govern- Otherwise obligations, ment war secured. obligations. 159 104 26 3,019 3,860 4,479 565 675 1,770 9,578 6,128 30,363 I Bankers' acceptances. 393 148 2,553 16,168 4,720 2,927 71,738 82,840 14,270 8,156 13,970 3,830 5,075 5,094 16 1,128 442 2,513 36,006 573,465 166,602 108,173 63,452 78,635 180,183 46,402 28,339 35,409 38,285 45,273 40 59 1,988 517 1,775 265 262 3,170 550 300 27,538 209,072 1,400,224 9,319 26 20 976 Trade acceptances, All other discounts. 201 I 148 j 19 i 3,177 303 1,389 828 387 330 426 12 1,039 7,066 40,407 16,020 8,156 9,033 9,152 13,944 691 6,047 4,448 5,527 115,692 700,196 197,358 125,985 92,310 97,357 205,786 61,658 32,548 64,731 58,023 63,490 822 439 129,178 1,815,134 Acceptances purchased and held by each Federal Reserve Bank on Aug. 30,1919, distributed by classes of accepting [In thousands of dollars; i. e., 000 omitted.] Boston New York Philadelphia.. Cleveland Richmond Atlanta Chicago St. Louis Minneapolis... Kansas City... Dallas San Francisco. Totals: Aug. 30,1919. J u l y 31,1919.. June 30,1919. Aug. 31,1918. Aug. 31,1917. NonNonmember Member member trust banks. compaState banks. nies. Foreign bank Private branches banks. and agencies. Total. Domestic. Foreign. 348 14.440 58 3,861 3,983 21,408 130 4,232 91 10,450 185 374 901 1,337 1,930 50 42 604 503 461 173 11,161 11,071 7,170 45,755 93,335 762, 42,208 6,966 4,305 46,420 10,825 19,577 10,036 796 84,388 3,111 8,935 9,225 1,717 33,273 32,665 31,928 29,361 8,264 2,312 43,815 42,593 29,648 19,167 18,086 20,955 18,967 12,654 8,450 1,369 365,373 371,991 314,407 225,964 149,637 40,878 45,409 574 31,642 6,966 4,305 44,258 9,797 17^ 794 7,595 796 54,813 455 1,628 264,827 269,568 233,519 188,366 94,597 institutions. Trade acceptances. Bank acceptances. Federal Reserve Bank. Total. 71 9,001 August, 1,634 Total. 672 45,755 94,289 762 42,372 6,966 4.305 46,420 10,825 19,577 10,036 796 85,060 1,790 1,249 1,586 8,806 4,952 367,163 373,240 315,993 234,770 154,589 507 447 954 54 110 "i64 561 576 382 2,201 1,229 673 1,204 Grand total. 992 FEDEEAL RESERVE. BULLETIN. October 1,1919. OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM AUG. 16 TO SEPT. 15,1919. drawn on banks in Items drawn on banks in Items district outside Federal Federal Reserve city Reserve city (daily av(daily average). erage). Number. Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total: Aug. 16 to Sept. 15, 1919 Julv 16 to Aug. 15, 1919. June 16 to July 15, 1919. Aug. 16 to Sept. 15, 1918 Amount. Number. Amount. Total items drawn on banks in own Federal Reserve district (daily average). Number. Amount. 18,652 25,913 44,546 6,577 2,904 3,968 23,552 6,371 6,355 6,174 1,213 3,235 $22,580,024 72,111,095 29,539,312 7,927,186 6,584,496 3,334,855 27,286,000 9,941,424 9,681,401 12,890,521 2,388,994 4,263,773 87,054 133.566 49,292 80,418 56,681 31,154 88,405 51,708 26,363 85,637 28,984 42,418 $13,718,874 69,392.098 7,379;237 26,120,687 16,424,076 8,179,356 16,061,000 8,658,512 2,606,482 15,638,036 9,368,617 9.265,234 105,706 159,479 93,838 86,995 59,585 35,122 111,957 58,079 32,718 91,811 30,197 45,653 141,503,193 36,918,549 34!047,873 23;008.572 11,514!211 43,347;000 18,599,936 12,287,883 28,528,557 11,757,611 13,529,007 149,460 139,678 149.902 55', 123 208,529,081 194,733,618 218,737,336 182,321.867 761,680 731.680 737,007 441,979 202,812,209 176,612,134 194,300,102 145,374!804 911,140 871,358 886,909 497,102 411,341.290 371,345,752 413,037!438 327,696,671 Items handled by lltems drawn on banks both Items drawn on the parent banks !: in other districts of the United Number j Number and branches (daily Treasurer (daily average). States (daily average). of mem- j of nonaverage). ber banks; member in dis- i banks on trict. i par list. ! ' Number. Amount. Number. Amount. Number.'; Amount. Boston Now York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total: Aug. 16 to Sept. 15, 1919.. July 16 to Aug. 15, 1919.. June 16 to July 15, 1919... Aug. 16 to Sept. 15, 191S-. 12,415 111,822,572 33,695 20,240,710 24,056 9,033,597 3! 584 3,301,787 7,526 5.744.094 3,179 2,799,322 6,752 1,759,000 1,029 503,719 1. ~~ 1,522,962 7,860 5,977,473 4,221 2,309,565 1,304 1,869,090 1,912 81,253,523 2,438 524 3.838 '523 1,131 1,411,959 754,827 1,743,133 1,136,000 233,899 3,821 4,099 3,673 107,279 66,883,891 110,817 66.552,940 104.997 66', 672,048 80.555 ! 62,764.960 21,959 20,787 19,061 11.053 1.060,051 ' 882,1.28 2,509.265 5,326 33,933 5,339 5,024 1.711 3.310 7', 4.41 4,049 583 ! 3,084 2,705 4,036 1 SI,238,181 31,051,857 2.478,551 1.215.322 1,501.107 960,011 2.108,000 770,401 257,273 627,985 737,771 8,689,137 430 : 744 i 670 i 837 ! 573 i 431 : 1,363 . '527 ! 899 ' 1,017 745 i 681 ! 10,984,785 9.119,203 10^502,207 0,866.305 77,201 83,659 95.986 87!213 51,935,604 57', 868,769 49.867,067 45,095.043 8,920 8,894 8,848 8,428 i ! I I •: ' I 1 2-12 319 409 1.014 '418 319 3,184 1,731 1,485 2,502 392 917 12,962 12,578 12,071 10,540 Incorporated banks other than mutual savings not on par list. 7.51.026 1.217 1.012 922 1,384 755 822 149 7,362 7',C21 8.167 October 1,1919. FEDERAL RESERVE BULLETIN. 993 OPERATIONS OF THE FEDERAL RESERVE BANKS. Aggregate increases of over 100 millions in earning assets, largely discounts other than war paper, and a net gain of 43.6 millions in gold reserves are the principal changes in condition of the Federal Reserve Banks during the five* weeks between August 22 and September 26. War-paper holdings of the Federal Reserve Banks show an increase for the period of only 9.5 millions, while total discounts held were about 108 millions larger on September 26 than five weeks earlier. Considerable borrowings by member banks on security of commercial paper are reflected in the reports of the Chicago, Atlanta, St. Louis, and Kansas City banks and are presumably due to increased demands for funds in connection with the crop movement in these districts. Acceptances on hand show a moderate decline for the period and stood at the end of the period 20.4 millions below the initial amount, this decline being due largely to an increased demand for acceptances in the open market. Treasury certificate holdings increased 13.2 millions during the five weeks, largely as a result of additional investment by Federal Reserve Banks in 1-year 2 per cent certificates to secure Federal Reserve banknote circulation. The large amounts of certificates on hand reported on September 12 and 19 were due to the issuance by the Treasur}^ of temporary certificates pending receipt of funds from depositary institutions. The banks7 total earning assets stood at 2,503.1 millions on September 26 as compared with 2,402.4 millions on August 22. War paper on hand at the several Federal Reserve Banks includes the amounts held under rediscount for other Federal Reserve Banks. During the five weeks under review the amount of such rediscounts was subject to some fluctuations and stood on September 26 at 70.2 millions (as against 69 millions on August 22), this figure representing the aggregate amount of war paper taken over by the Chicago and Minneapolis banks from other Federal Reserve Banks. Acceptance holdings of the Kansas City and San Francisco banks on September 26 include 31.7 millions of bankers7 acceptances purchased from other Federal Reserve Banks. Government deposits show a decrease for the period of about 42 millions, members7 reserve deposits an increase of 51.6 millions, and other deposits, including foreign government credits, a decrease of 2.4 millions. Net deposits showed considerable fluctuations, reaching the lowest figure on September 19, and stood at the end of the period about 13 millions above the figure reported for August 22. Gold reserves decreased during the first week of the period. Considerable increases are shown for the two most recent weeks, when 79.4 millions of gold, previously held on the continent, were transferred to the Bank of England vaults. The increases in gold reserves caused by these transfers and by gold deposits of the United States Treasury were oflset in part, however, by continued withdrawals of gold for export, the net increase in gold reserves for the five weeks being 43.6 millions. Federal Reserve note circulation showed a practically continuous increase for the period at the rate of about 20 millions a week and stood on September 26, 101.8 millions above the figure reported five weeks earlier. Federal Reserve Bank notes in circulation also show an increase of 23.7 millions for the period. As a net result of increases in deposit and note liabilities and in gold reserves the banks' reserve ratio shows a slight decline for the period under review from 51.3 to 51 per cent. 994 October 1,1919. FEDERAL RESERVE BULLETIN. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29 to Sept. 26, 1919. [In thousands of dollars; i. e., 000 omitted.] RESOURCES. Gold coin and certificates: Aug. 29 Sept.5 Sept.12 Sept. 19 Gold settlement fund, Federal Reserve Board: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Gold with foreign agencies: Sept. 19 Sept. 26 Gold with Federal Reserve agents: Aug. 29. Sept, Sept. 5. Sept. 12. Sept.19. Sept.26. Gold redemption fund: p Aug.29 p . 5 ept.5 Sept.12 Sept. 19 Sept.26 Total gold reserves: Aug.29 Sept.5 Sept.12 Sept. 19 Sept.26 Legal-tender notes, silver, etc.: Aug.29 , Sept.5 Sept. 12 Sept. 19 Sept.26 , Total cash reserves: Aug.29 Sept.5 , Sept. 12 Sept. 19 Sept.26 Bills discounted: Secured by Government war obligations i— Aug.29 Sept.5 Sept. 12 Sept. 19.... Sept.26 All other— Aug.29 Sept.5 Sept. 12 Sept. 19 Sept.26 Bills boi ket:2 Aug.29 Sept.5 Sept. 12 Sept. 19 Oct. 26 United States Government bonds: Aug.29 Sept.5. Sept. 12 Sept. 19 Sept.26 United States Victory notes: Aug.29 Sept.5 Sept. 12 Sept. 19 Sept.26 New York. Cleveland. 156,435 149,830 148,884 139,243 157,733 650 756 645 666 819 17,194 17,289 10,504 10,679 10,271 2,300 2,345 2,371 2,393 2,344 7,948 7,813 7,856 7,912 7,842 23,736 23,830 23,868 23,849 23,914 2,517 2,495 2,524 5,291 3,482 8,338 8,394 8,340 8,300 8,319 63,200 64,352 56,983 96,347 61,884 128,740 27,938 152,696 43,584 139,419 41,754 42,236 40,565 35,783 36,000 59,665 60,391 66,183 66,753 59,741 35,396 28,252 30,982 30,992 28,191 9,565 9,927 9,366 6,780 136,748 110,837 95,383 101,636 76,352 19,675 11,979 14,884 17,925 35,852 36,592 30,052 29,840 27,973 45,149 38,360 16,217 26825 jj 26,825 24,220 3,320 5,794 16,691 29,129 3,638 6,350 3,729 6,508 2,229 3,889 1,637 2,857 5,412 9,445 2,138 3,730 1,228 2,143 68,544 75,858 73,318 70,706 67,965 281,659 291,659 289,854 289,256 288,849 75,923 75,245 74,071 71,218 75,889 130,573 131,239 138,835 138,121 137,686 23,951 27,763 34,008 32,640 30,763 41,911 41,542 41,485 42,339 43,157 266,538 276,711 291,945 317,503 318,957 56,292 54,721 47,709 46,436 18,345 10,755 13,218 15,662 18,177 25,000 25,000 25,000 25,000 25,000 9,961 11,586 13,025 15,248 10,674 1,126 868 1,182 982 465 5,370 6,288 5,480 6,656 7,966 4,300 4,883 5,746 5,342 5,240 30,813 33,670 27,957 10,565 14,517 155,777 149,489 154,490 123,973 142,086 527,416 562,836 592,478 622,886 640,130 128,288 129,823 128,306 126,553 129,732 208,558 209,787 216,704 220,264 214,671 67,017 64,648 72,841 74,910 73,153 63,724 64,165 64,453 64,010 65,989 457,835 445,048 439,153 458,965 443,185 93,299 83,696 74,967 74,803 76,415 7,667 7,013 6,574 6,726 6,478 50,313 51,577 51,397 51,330 50,772 175 183 236 308 275 882 756 852 878 912 449 493 474 416 .255 ,261 ,210 900 843 1,099 1,042 1,095 4,803 5,081 5,272 5,662 6,102 163,444 156,502 161,064 130,699 148,564 577,759 614,413 643.875 674)216 690,902 128,463 130,006 128,542 126,861 130,007 209,440 210,543 217,556 221,142 215,583 67,466 65,141 73,315 75,326 73,521 65,086 65,504 65,708 65,271 67,199 458,735 445,891 440,252 460,007 444,280 9S,102 88,777 80,239 80, *65 82,517 107,744 112,074 108,671 115,900 323,851 656,305 672,070 611,442 483,053 617,837 180,872 175,974 179,199 173,229 180,151 116,329 114,897 110,435 104,907 111,635 77,422 75,143 73,246 72,295 72,097 82,465 77,635 75,946 74,872 71,308 185,258 192,490 137,833 139,657 172,455 7,948 7,441 7,508 9,451 43,891 52,791 49,692 45,539 47,707 16,486 16,830 15,985 21,528 21,705 9,656 14,888 14,892 9,601 14,841 15,766 9,549 16,647 20,208 11,888 19,226 24,513 18,475 20,191 26,928 45,755 46,330 44,951 44,279 42,963 94,288 71,177 70,955 73,521 76,401 762 843 1,061 811 735 42,133 37,853 39,242 41,768 40,510 7,002 7,254 7,212 5,982 539 539 539 539 1,257 1,257 1,257 1,257 1,257 1,385 1,385 1,385 1,385 1,385 1,093 1,093 1,093 1,093 1,094 1,234 1,234 1,234 1,234 1,234 5,688 5,893 6,070 6,347 6,566 RichAtmond. lanta. Chicago. Philadelphia. Boston. 4,165 3,923 3,904 3,736 5,100 376 376 375 376 St. Minne- Kansas Louis. apolis. City. Dallas. San Francisco. Total. 10,522 15,549 11,942 18,219 10,742 244,231 243,238 231,609 230,047 239,168 7,403 7,497 7,779 6', 778 5,210 41,471 35,213 38,593 11,175 563,640 542,310 537,723 512,080 502,506 2,183 3,810 1,182 2,064 2,092 3,651 45,479 79,370 33,142 32,560 31,967 36,185. 35,445 39,356 41,585 40,227 35,679 34,596 16,040 17,297 17,405 17,178 16,831 101,965 104,417 102,933 110,427 99,751 1,142,589 1,172,168 1,190,769 1,208,961 1,196,325 4,710 5,650 5,234 1,189 5,743 1,750 4,781 2,462 4,842 3,158 6,128 3,828 5,088 4,531 5,546 2,856 2,550 2,887 3,537 4,115 2,069 3,485 1,690 633 785 116,328 109,336 108,766 95,399 100,485 82,982 78,735 72,109 78,015 77,038 90,816 83,964 61,685 69,428 68,429 35,019 36,197 36,523 35,613 35,099 156,027 158,664 155,158 142,546 151,927 2,066,788 2,067,052 2,068,867 2,091,966 2,117,854 208 150 220 320 390 2,099 2,043 1,956 1,859 1,827 278 281 236 214 174 69,183 69,818 69,632 70,091 69,651 91,024 84,114 61,905 69.748 68,819 37,118 78,794 72,170 78,090 77,086 51,496 59,552 60,400 57,715 60,181 28,355 31,390 36,463 34,303 34,586 36,537 36,917 44,960 41,456 44.485 38,727 35,687 34,312 32,303 32,030 47,786 51,404 51,614 54,206 51,887 1,609,296 1,635,233 1,524,521 1,333,896 1,572,503 20,528 21,965 27,925 32,371 46,091 10,162 10,768 14,230 19,228 24,357 4,193 4,233 4,576 5,526 8,272 28,194 23,7«4 27,595 34,530 43,686 19,296 19,556 21,496 22,851 23,672 15,704 14,609 14,906 16,890 19,244 205,838 212,185 230,317 261,985 309,779 43,067 44,097 42,967 42,771 11,101 15,274 14,918 14,017 11,077 19,474 20,283 22,110 21,138 19,622 10,036 25,046 25,244 18,591 15,346 796 742 494 379 507 81,457 82,875 87,817 363,138 354,667 362,005 353,817 342,491 4,477 4 477 4,477 4,477 4 477 1,153 1,153 1,153 1,154 1,153 116 116 116 116 116 8,868 3,966 3,966 3,966 3,966 129 129 128 128 73 183 8,720 191 8,853 153 8,452 210 I 6,938 257 I 6,879 8,867 8,867 156,305 2,135.976 158,945 2,136; 870 38,479 155,394 2,138,499 37,472 142,760 2,162,057 36,926 152,101 2,187,505 81,130 2,632 2 ®P 2,632 2,633 27,096 27,096 27,095 27,097 198 197 192 192 137 October 1,1919. 995 FEDERAL RESERVE BULLETIN. Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29, to Sept. 26, 1919—Contd, [Tn thonsands of dollars, i. e., 000 omitted.] R E S OURCE S—Continued. United States certificates of indebtedness: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 "Total earning assets: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 , Bank premises: Aug. 29 Sept.5 , Sept. 12 Sept. 19 Sept. 26 Gold in transit or in custody in foreign countries: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Uncollected items and other deductions from gross deposits: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 5 per cent redemption fund against Federal Reserve Banknotes: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 All other resources: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Total resources: Aug. 29 Sept.5 Sept. 12..... Sept. 19 Sept. 26 i n c l u d e s bills discounted for other Federal Reserve Banks: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 * Includes bankers' acceptances bought from other Federal Reserve Banks without their indorsement: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Boston. New York. 21,436 21,436 21,471 21,436 21,436 92,752 130,786 63,509 183,436 187,833 183,149 190,058 198,249 1,758 1,764 2,089 2,089 2,089 San Francisco. Philadelphia. Cleveland. Richmond. Atlanta. Chicago. 27,240 27,181 27,231 28,182 20.517 21J402 21,402 23,575 24,778 8,995 8,995 9,695 10,060 10,060 12,479 12,979 12,964 13,464 13,464 33,806 34,835 103,642 41,642 37,827 17,068 17,068 17,068 17,068 17,068 8,999 9,506 8,013 8,253 8,222 12,726 13,268 11,802 12,609 11,162 6,700 6,700 7,200 7,200 7,200 6,941 9,520 8,415 8,224* 8,173 243,411 250,223 341,655 322,986 251,081 864,678 826,148 734,206 806,761 226,745 222,213 224,861 225,622 232,158 189,728 184,846 181.721 183,231 196,492 109,541 107,467 108,034 108,797 109,911 114,382 110,684 113,403 116,965 117,181 290,238 296,834 317,974 261.114 303; 621 90,980 103,815 107,769 109,182 113,836 61,266 65,657 71,406 69,464 70,891 96,361 107,883 118,469 j 116,053 1123,546 69,485 66.651 67;468 66,699 67,375 154,520 161,040 165,384 168,580 163,067 2,448,977 2,479,601 2,485,786 2,349,971 2,503,088 3,994 3,994 3,994 3,994 3,994 500 500 500 500 500 875 875 875 875 875 437 441 444 444 444 463 472 472 475 475 2,936 2,936 2,936 2,936 2,936 691 691 691 691 402 402 402 402 402 340 340 340 340 340 400 400 400 400 400 12,796 12,815 13,143 13,146 13,146 66,504 St. Minne- Kansas Louis. apolis. City. Dallas. 107,119 107,119 158,232 114,138 80,246 50,205 183,732 202,367 77,404 206,934 91,878 232,490 198,028 Total. 107,119 107,119 158 232 114,138 80,246 60,402 58,023 26,789 67,137 67,085 33,146 62,320 52,748 37,024 90,196 44,193 35,211 32,936 39,785 50,311 37,540 35,287 40,735 47,793 54,488 42,206 709,394 827,845 873,066 1,025,122 827,404 916 708 452 473 482 473 253 450 450 500 500 525 11,580 11,160 11,343 11,289 11,503 523 545 508 552 559 488 509 498 765 531 786 810 840 813 901 9,995 9,511 11,007 10,886 422,029 462,502 236,526 207,704 237,421 158,822 251,809 134,580 427,825 465,160 241,222 210,833 854,706 246,018 160,658 "rtrt '""139,149 439,042 464,320 235,641 218,757 873,946 247,481 163,996 261,307 147,053 441,653 497,411 271,753 227,782 847,597 253,800 167,769 274,488 156,060 437,310 484,680 253,047 221,110 849,774 250,374 166,939 264,911 142,965 347,748 362,380 370,311 367,541 359,200 5,435,837 5,584,921 5,691,076 5,686,609 5,631,890 72,723 82,646 86,382 72,770 1,072 1,0.72 1,072 1,072 1,072 2,335 2,371 2,530 2,527 2,705 1,297 1,322 1,350 1,350 1,350 1,106 933 1,053 1,132 1,132 428 428 428 428 307 281 419 260 276 2,304 2,240 2,312 3,128 2,385 o1,389 1,061 1,143 938 525 951 826 795 835 631 660 672 665 655 400,222 410,349 425,197 416,056 416,559 1,739,538 1,797,182 1,844,025 1,764,699 1,785,021 81,679 105,857 109,915 120,631 95,931 46,308 51,429 57,559 62,227 52,156 14,054 15,746 19,807 19,392 18,536 628 638 657 1,738 1,619 1,417 1,297 1,575 746 660 670 354 350 330 310 290 345 339 1,522 240 387 1,610 1,569 1,452 1,612 1,431 547 560 563 565 550 114 : 111 I 6 283 j c 513 j 136 I 3,000 41,816 22,410 41,127 60,195 8,250 ",000 5,000 5,000 419 a Includes Government overdraft of S523,000. 6 Includes Government overdraft of 8162,000. c Includes Government overdraft of $386,000. 62,583 ! 75,787 79,131 86,841 ! 70,693 11,475 10,000 15,000 15,000 10,000 53,655 56,816 45,410 61,127 70,195 10,013 25,023 25,023 18,170 14,725 29,000 26,139 20,534 20,080 16,977 39,432 51.162 45,557 38,250 31,702 996 FEDERAL RESERVE BULLETIN. October 1, 1919, Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, Aug. 29 to Sept. 26, 1919—ContcL [In thousands of dollars, i. e., 000 omitted.] LIABILITIES. New Phila- Cleve- Rich- AtBoston. York. delphia. land. mond. lanta. Capital paid in: •Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Surplus f«nd: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Government deposits: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Due to members—reserve account: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Deferred availability items: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Other deposits, including foreign government credits: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Total gross deposits: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Federal Reserve notes in actual circulation: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 Federal Reserve bank notes in circulation—net liability: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept. 26 All other liabilities: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Total liabilities: Aug. 29.. Sept. 5 Sept, 12 Sept. 19 Sept. 26 MEMORANDA. Contingent liability as indorser on d i s c o u n t e d paper rediscounted with other Federal Reserve Banks: Aug. 29 Sept. 5 Sept.12 Sept. 19 Sept.26 San St. Minne- Kansas Louis. apolis. City. Dallas. Francisco. Chicago. Total. 7,034 7,034 7,034 7,034 7,034 22,048 22,058 22,060 22,060 22,060 7,757 7,757 7,757 7,757 7,757 9,342 4,224 9,343 ; 4,224 9,361 4,225 9,373 4,232 9,373 4,312 3,331 3,351 3 373 3,384 3,383 11,959 11,989 12,059 12,082 12,084 4,004 4,005 4,010 4,010 3,023 3,026 3,026 3,030 3,033 3,899 3,900 3,904 3,904 3,904 3,297 3,295 3,321 3,321 3,321 5,013 5,015 5,015 5,021 5,025 84,926 84,696 85,140 85,208 85,296 5,207 5,207 5,207 5,207 5,207 32,922 32,922 32,922 32,922 32,922 5,311 5,311 5,311 5,311 5,311 5,860 5,860 5,860 5,860 2,805 2,805 2,805 2,805 2,805 9,710 9,710 9,710 9,710 9,710 2,589 2,589 2,589 2,589 2,589 2,320 2,320 2,320 2,320 2,320 3,957 3,957 3,957 3,957 3,957 2,029 2,029 2,029 2,029 2,029 4,577 4,577 4,577 4,577 4,577 81,087 81,087 81,087 81,087 81,087 5,209 3,744 5,803 11,384 4,716 7,124 15,890 163 169 14,844 2,642 2,215 4,808 3,553 4,697 5 474 1,693 22,540 12,048 I 4,568 "i 4,802 I 1,235 | 2,514 I 2,706 4,690 3,551 7,237 ! 276 4,359 6,187 4,183 2,130 1,382 5,672 3,905 4,944 2,542 3,980 3,186 2,179 2,268 1,418 6,754 5,741 4,198 5.375 4,579 3,729 1,846 2,745 12,469 2,533 5,340 8,629 4,699 5/239 4,092 54,494 59,110 33,584 78,134 61,276 106,728 110.119 113;i22 100,136 108,C38 709,654 714,736 751,883 646,592 103,761 107,550 102,919 100,973 107,149 132,085 130,163 127,127 122,114 125,633 247,565 59,967 51,537 256,613 63,714 53,038 266,971 62,441 53,717 238,673 62,466 54,269 248,749 62,768 54,387 77,664 80,362 78,275 82,742 85,653 45,618 94,925 46,082 97,333 44,275 100,017 42,652 99,977 44,160 95,506 1,729,950 1,757,641 1,802,791 1,651,426 1,731,413 46,947 122,062 155,0(54 59,295 152,174 57,212 208,935 53,857 159,530 58,478 57,441 72,840 75,950 65,915 38,624 40,927 46,089 50,092 43,167 12,059 10,727 14,184 16,586 12,754 45,242 60,023 54,632 61,016 49,411 21,375 25.763 33,813 31,961 26,776 18,545 23,502 28,557 24,777 21,790 563,387 643,194 679,043 802,715 653,381 2,397 2,237 2,981 2,911 1,678 ,246 2,249 2,070 2,094 2,335 2.085 5,766 5,822 6,763 6,681 6,822 98,479 99,136 134,096 106,899 95,654 3,800 3,800 3,800 3,800 5,860 I 3,800 I !55,594 i 57,257 i54,104 j57; 636 44,272 42,337 44,787 46,728 42,435 •52,000! 50,004 55,495 i 55,391 55,086 !45,278 75,167 i80,250 60,368: 57,411 23,334 28,727 30,265 33,014 30,372 74,717 79,150 86,830 87,755 72,030 6,802 5,89Q 5,845 5,850 5,765 42,740 44,742 76,891 49,203 41,309 6,854 7,051 7,341 6,554 6,548 6,476 6,261 3,843 3,736 3,784 3,780 3,741 3,034 3,304 3,042 3,047 2,795 165,686 170,743 184,065 174,582 172,976 881,580 930,432 981,111 904,899 914,382 169,178 174,487 185,025 189,072 183,171 195,380 197,429 190,454 226,297 204,310 |114,589 1115,956 109,025 1141,685 119,064 75,442 76,882 82,784 90,026 79,961 338,900 350,397 366,270 338,803 336,967 198,867 203,986 205,316 205,735 207,829 752,283 758,794 ! 752,893 I 747,239 ! 753,135 212,752 2,12,863 213,103 211,378 212,579 231,136 231,449 237,017 233,862 242,280 104,673 1.07,702 108,646 111,736 1115,100 113.631 ,114:807 1116,367 1117,963 [121,012 439,744 444,845 447,265 447,173 450,048 21,436 21,416 21,376 21,316 21,256 42,497 44,383 46,042 48,197 52,597 25,348 25,588 25,915 26,051 26,272 19,173 19,399 19,821 20,083 20,781 8,147 8,398 8,754 9,036 9,448 11,595 12,031 12 402 12,492 12;749 1,892 1,963 2,199 2,182 2,257 8,208 8,593 8,997 9,382 9,925 1,683 1,819 1,931 2,084 2,220 1,611 1,680 1,807 1,936 2,076 1,093 1,142 1,191 1,264 1,323 900 957 1,026 1,112 1 200 422,029 427,825 439,042 441,653 437,310 462,502 465,160 464,320 497,411 484,680 236,526 241,222 1235,641 |271,753 1253,047 207,704 210 833 218,757 227,782 221,110 400,222 410,349 425,197 416,056 416,559 . j J ! 1 ! ! 1 1,739,538 1,797,182 1,844,025 1,764,699 j 1,785,021 10,431 .10,451 I 10,339 ! 10,993 I 10,516 3,852 4,049 4,512 4,304 3,739 j i ! ! i 2,313 I 3,754 106,348 113,634 -115,584 120,842 112,860 ! 68,172 j 68,270 j 70,882 i 73,766 i 70,872 133,488 1149,804 141,351 ! 153, 111 143,397 I i I 107,152 .108,532 108,039 109,030 113,392 34,118 16,504 34,981 16,350 35,815 16,278 36,806 16,263 10,^00 37,686 16,379 2,505 829 2,784 2,827 3,023 1,066 3,279' 1,144 I 836,936 237,421 854,706 246,018 ! 873,946 247,481 i 847,597 253,800 ! 849,774250,374 ! 92,533 93,724 93,486 94,683 95,262 46,603 48,417 48,982 51,223 51,992 203,521 207,387 210,372 210,729 210,326 2,580,629 2,611,697 2 621,228 2,621,258 2,655,354 16,729 16,759 17,241 17,393 XI}OVO 16,824 1,203 1,295 1,368 1,440 1,567 8,834 8,798 8,909 9,150 8,367 8,265 8,319 8,425 219,815 223,565 228,169 232,594 239,451 846 849 885 920 971 1,694 1,850 1,992 2,115 2,197 23,070 24,495 25,938 27,288 28,978 J251.809 269,439 261 307 274,488 264^911 134,580 139,149 147,053 156,060 142 965 347,748 362 380 370,311 367,541 359,200 5,435,837 5,584,921 5,691,076 5,686,609 5,631,890 77,634 79,191 79,742 80,507 82,399 i 7,067 7,197 7,297 7,382 t.OOA 7,496 ! 606 654 729 764 819 158,822 160,658 163,996 167,769 166,939 72,971 124,576 2,446,310 75,761 135,286 2,559,081 82,927 140,036 2,649,514 89,417 136,674 2,639,174 75,554 128,210 2,541,724 j 1 : ! j 20,930 21,816 7,000 23;627 1 18,295 725 5,000 j . 8,410 i. 8,000 !. 8,900 i. 3,000 5 000 5,000 9,500 ; 18,000 53,655 56,816 45,410 61,127 70,195 October 1,1919. 997 FEDERAL RESERVE BULLETIN. Maturities of bills discounted and bought, also of Treasury certificates of indebtedness. [In thousands of dollars; i. e., 000 omitted.] Within 15 days. Bills discounted: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Bills bought: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 United States certificates of indebtedness: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 16 to 30 31 to 60 days. Over 90 days. 61 to 90 days. Total. ,519,814 ,547,106 .443,535 .', 317,455 ,532,058 53,870 54,803 49,019 68,299 120,183 152,545 147,354 166,970 190,393 154,918 79,889 91,790 88,579 62,922 68,568 9,016 6,365 6,735 6,812 6,555 ,815,134 L, 847,418 ,754,838 ,645,881 95,517 87,511 99,259 101,631 108,4.14 79,732 108,119 108,054 104,085 85,982 137,296 103,354 111,087 102,724 112,931 45,577 40,663 43,605 44,584 34,371 5,016 15,020 363,138 354,667 362,005 353,817 342,491 24,743 28,686 121,321 89,703 23,605 12,066 10,536 11,659 9, GOO 10,000 21,999 24,777 19,676 19,706 12,500 16,034 15,532 18,032 23,972 25,537 168,569 170,692 170,967 180,605 179,439 793 243,411 250,223 341,655 251,081 FEDERAL RESERVE NOTES. Federal Reserve note account of each Federal Reserve bank at close of business on Fridays, Awj, 29 to Sept. 26, 1919. [In thousands of dollars; i. e., 000 omitted.] Federal Reserve notes received from agents: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Federal Reserve notes held by banks: Aug. 29 Sept. 5 Sept. 12 Sept. 19... Sept. 2 6 . . . . . Federal Reserve notes in actual circulation: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Gold deposited with or to credit of Federal Reserve agent: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Paper delivered to Federal Reserve agent: Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 San Francisco. Total. 49,555 51,211 52,029 53,693 54,386 223,329 ! 227,381 i 229,578 I 237,771 236,915 2,767,166 2,794,100 2,830,146 2,851,622 2,875,259 2,952 2,794 3,047 2,470 2,394 19,808 19,994 19,206 27,042 26,589 186,537 182,403 208,918 230,364 219,905 439,744 107,152 444,845 108,532 447,265 447,173 109,030 450,648 113,392 77,634 92,533 46,603 79,191 93,724 48,417 79,742 93,486 48,982 80,507 94,683 51,223 82,399 95,262 51,992 203,521 207,387 210,372 210,729 210,326 2,580,629 2,611,697 2,621,228 2,621,258 2,655,354 33,142 32,560 31,967 36,185 35,445 Boston. New York. Philadelphia. Cleveland. Richmond. St. Atlanta. Chicago. Louis. Minne- Kansas Dallas. apolis. City. 206,231 210,416 212,505 215,993 221,452 825,768 841,685 843,197 841,475 220,531 221,353 223,079 226,226 227,397 245,340 248,142 247,589 252,013 108,327 112,379 113,924 117,406 120,428 117,130 463,233 118,276 473,406 121,196 478,640 121,549 476,277 124,277 477,732 125,191 127,156 128,186 128,874 132,560 79,638 80,856 81,798 82,111 84,371 98,293 100,342 99,384 100,936 102,253 7,264 6,460 7,189 10,258 13,623 78,085 66,974 88,792 95,958 88,340 7,779 14,204 8,490 14,077 9,976 11,125 14,848 | 13,727 14,818 I 9,733 3,654 4,677 5,278 5,670 5,328 18,039 18,624 20,147 19,844 19,168 2,004 1,665 2,056 1,604 1,972 5,760 6,618 5,898 6,253 6,991 198,967 203,986 205,316 205,735 207,829 752,283 758,794 752,893 747,239 753,135 212,752 212,863 213,103 211,378 212,579 68,544 75,858 73,318 70,706 67,965 281,659 291,659 289,854 289,256 75,923 75,245 74,071 71,218 75,889 161,447 165,845 161,130 168,074 176,265 794,178 795,673 731,681 601,560 741,482 245,526 3,499 3,469 4,829 3.586 3,265 231,136 104,673 113,631 231,449 107,702 114,807 237,017 108,646 116,367 233,862 111,736 117,963 242,280 115,100 121,012 23,489 28,561 31,375 29,104 27,684 130,573 131,239 138,835 138,121 137,686 23,951 27,763 34,008 32,640 41,911 41,542 41,485 42,339 43,157 266,538 276,711 291,945 317,503 318,957 62,987 56,292 54,721 47,709 46,436 39,356 41,585 40,227 35,679 34,596 156,096 166,510 150,286 161,007 150,449 157,358 155,373 157,037 153,784 169,543 94,892 92,643 92,112 93,672 95,796 91,735 82,328 87,494 83,470 82,989 251,899 257,434 209,724 214,933 261,276 67,852 49,558 74,767 78,864 50,161 85,747 82,582 57,339 97,799 53,898 94,577 95,535 57,880 i 103,517 16,040 101,965 1,142,589 17,297 104,417 1,172,168 17,405 102,933 1,190,769 17,178 110,427 1,208,961 16,831 99,751 1,196,325 58,819 55,985 56,302 55,533 56,209 127,808 131,351 142,024 144,582 140,277 2,095,561 2,107,324 2,025,994 1,913,595 2,134,553 998 October 1,1919. FEDERAL RESERVE BULLETIN. Federal Reserve note account of each Federal Reserve agent at close of business on Fridays, Aug. 29 to Sept 26, 1919. [In thousands of dollars; i. e., 000 omitted.] Boston. New York. Philadelphia. Cleveland. RichSt. mond. Atlanta. Chicago. Louis. Minne- Kansas Dallas. apolis. City. 370,600 374,701 385,900 397,800 415,800 1,730,120 1,738,800 1,753,000 1,769.360 i;782;760 438,780 444,780 444,780 450,780 456,780 395,480 402,960 405,660 410,580 417,980 237,180 240,680 246,640 246,640 252.640 245,000 215,600 250,000 251,000 253,000 693,240 696,100 718,720 729,680 732,880 231,000 233,500 236.100 240,'200 244,160 137,380 137,3S0 138,380 138,380 141,880 174,720 175,720 179,120 180,320 181,720 106,160 108; 200 109,200 109,200 111,240 140,869 764,752 190,069 143,555 776,032 192,247 146,095 780,315 194,921 148,707 795,163 197;774 151,448 810,285 202,603 126,360 128,694 131,598 134.311 137;747 100,816 102,004 103,758 105,126 107,004 67,170 68,538 69,595 70,642 73,324 199,007 202,554 207,160 212,403 217,908 84,019 85,714 87,284 88,456 90,570 42,032 42,614 43,207 43,989 44,729 64,967 65,738 67,096 68,644 69,727 38,970 39.714 40', 106 40,832 41,429 229,731 231,146 239,805 249,093 264,352 965,368 962,768 972;685 974,197 972,475 248,711 252,533 249,859 253,006 254,177 269,120 274.266 274,062 276,269 280,233 136,364 138,676 142,882 141,514 145,636 177,830 177,062 180,405 180,358 179,676 23,500 20,700 27,300 33,100 42,900 135,000 137,000 13.1,000 131,000 131,000 28,180 31,180 26,780 26,780 26,780 23,780 28,740 25,920 28; 680 28,220 28,037 26,297 28,958 24,108 25,208 60,700 58,786 59,209 58,809 55,399 220,531 245,340 206,231 210,446 825,768 221,353 245,526 212,505 841,685 223,079 248,142 215,993 843,197 226,226 247; 589 221,452 841,475 227,397 252,013 108,327 112,379 113,924 117,406 120,428 117,130 118,276 121,196 121.549 12^277 San Francisco. Total. FEDERAL EESEP.VE NOTES. Received from Comptroller: Aug. 29 Sept.5 Sept. 12 Sept. 1 9 . . . . . Sept. 26 Returned to Comptroller: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 28 Chargeable to Federal Reserve agent: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept.26 In hands of Federal Reserve agent: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Issued to Federal Reserve Bank less amount returned to Federal Reserve agent for redemption: Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Collateral held as security for outstanding notes: Gold coin and certificates— Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 Gold redemption fund— Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Gold settelment fund, Federal Reserve Board— Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 Eligible paper, minimum required i— Aug. 29 Sept.5 Sept. 12 Sept. 19 Sept. 26 183,740 183,740 183,740 183,740 183,740 28,125 28,125 35,125 35,125 35,125 317,860 324,460 328,140 336,340 337,160 5,077,520" 5,122,941 5,195,640 5,260,280 5,328,000 87,831 1,906,862 90,379 1,937,783 91,862 1,962,997 92,369 1,998,416 94,045 2,040,819 494,233 146,981 95,348 109,753 67,190 230,029 3,170,658 493,606 147,786 94,766 109,982 68,486 234,081 3,185,158 511,560 148,816 95,173 112,024 69,094 236,278 3,232.643 517,277 151,744 94,391 111,676 243,971 3,26i;864 514,972 153,590 97,151 111,993 9,811 243,115 3,287,181 31,000 20,200 32,920 41,000 37,240 21,790 15,710 11,460 20,630 13,910 9,640 20,630 13,375 12,640 22,870 12,280 10,740 21,030 12,780 9,740 463,233 125,191 473,406 127,156 478,640 128,186 476,277 12S, 874 477,732 132,560 79,638 80,856 81,798 82,111 84,371 2,160 4,000 13,052 13,052 13,052 13,052 13,052 3,056 3,361 3,791 2,619 2,505 1,290 2,708 2,115 1,333 3,593 2,500 2,500 2.500 2; 500 2,500 12,544 60,000 13,318 20,706 17,965 17,919 17,919 16,114 15,516 15,109 16,034 13,856 11,182 13,329 13,500 12,448 13,114 13,710 12,996 12,561 1,451 2,763 3,008 1,640 1,763 2,411 3,042 1,985 3,439 2,457 8,074 8,526 8,921 8,678 9,172 56,000 15,858 60,000 50,000 50,000 80,000 90,000 90,000 90,000 90,000 61,389 62,889 57,889 62,389 90,000 90,000 90,000 90,000 90,000 22,500 25,000 31,000 31,000 29,000 37,000 36,000 37,000 36.400 38; 200 258,464 268,185 283.024 308:825 309,785 137,687 134,588 139,187 145,287 153,487 548,709 534,109 551,831 553,941 552,626 144,608 146,108 149,008 155,008 151,508 114,767 114,287 109.307 109;468 114.327 84,376 84,616 79,916 84,766 75,219 196.695 76,734 196;695 79,711 186,695 79,210 158,774 81,120 158,775 98,293 100.342 99; 384 100,936 102,253 17,635 17,275 17,065 14,675 15,425 6,700 6,700 6,700 6,200 6,200 403,492 391,058 402,497 410,242 411,922 49,555 51,211 52,029 53,693 54,386 223,329 227,381 229,578 237,771 236,915 2,767,166 2,794,100 2,830,146 2,851,622 2.875,259 8,831 8,831 8,831 8,831 8,831 236,248 236,248 243,24S 245,408 247,248 1,996 3,225 3,867 2,319 3,236 3,025 3,282 3.390 3,163 3,566 13,912 12,421 11,689 16,183 14,506 94,100 144,217 93.090 101,921 99,933 59,931 18,800 37,360 52,931 16,800 38,360 50,930 16,800 36,360 42,930 21,800 33,360 39,931 18,800 31,360 4,184 5,184 5,184 5,184 4,434 88,053 91,996 91,244 94,244 85,245 812,181 791,703 854,431 861,632 849,144 33,515 121,364 33,914 122,964 34,624 126,645 36,515 127,344 37,555 137; 164 624,577 621,932 639,377 642,661 678,934 62,2C4 70,864 73,465 81,165 86,124 46,496 48; 296 49,831 45,926 48,926 58,937 58.757 59; 157 65,257 67,657 For actual amounts see "Paper delivered to Federal Reserve agent" on p. 997. October 1,1919. FEDERAL RESERVE BULLETIN. 999 CONDITION OF SELECTED MEMBER BANKS. Liquidation of about 110 millions of United States securities, as against an increase of about 450 millions in other loans and investments, also large increases in all classes of deposits accompanied by a falling off in reserves are the principal developments for the five-week period August 15 to September 19, shown by 776 reporting member banks in leading cities. The United States Treasury issued on September 2 573.8 millions of loan certificates due in 1920, and on September 15 two series of tax certificates aggregating 758.6 millions, 101.1 millions of which were issued at 4J per cent and are due in 6 months, while 657.5 millions are of the 4J per cent type and are due in 12 months. On September 9 the Treasury redeemed the balance of the last two series of certificates issued in anticipation of the Victory loan and on September 15 the outstanding balances of tax certificates due on September 15. As a net result of these operations Treasury certificate holdings of the reporting member banks were about 75 millions smaller on September 19 than on August 15. The amount of United States bonds, including Liberty bonds, held by the banks decreased by 19.8 millions, and the banks7 holdings of Victory notes declined 16.7 millions during the period under review. These decreases7 are caused largely by sales from the banks own portfolios of Liberty bonds and by further installment payments received from customers oh account of Victory notes purchased on the deferred-payment plan. As against the decreases in United States securities on hand, an increase of 22.7 millions in war paper is noted, larger increases in New York and Chicago being partially offset by decreases outside of these cities. War paper holdings declined during the first three weeks of the period but increased over 48 millions during the two weeks following. Loans secured by stocks and bonds show increases for each week of the period under discussion, except for the week ending August 29, the amount on September 19 being 100.2 millions greater than the corresponding figure five weeks earlier. Of the aggregate increase only 14.6 millions is reported by the New York City banks. All other loans and investments show a steady and rapid growth throughout the period, the total increase for the five weeks being 327.4 millions. Aggregate amounts of United States war securities and war paper held by all reporting banks decreased from 3,494.7 millions on August 15 to 3,405.9 millions on September 19, and on the later date constituted 22.3 per cent of the banks' total loans and investments, as against 23.4 per cent on the earlier date. For the New York City banks alone, however, this ratio increased from 27.7 to 28.1 per cent during the period, largely because the certificate holdings of these banks show an increase of 86.8 millions for the five weeks. Government deposits with the reporting member banks declined during the first two weeks of the five under review, increased considerably during the following week, fell off again during the week ending September 12, and increased by about 266 millions during the most recent week, the amount at the end of the period under review being 146.1 millions in excess of the amount shown five weeks earlier. For the New York City banks alone Government deposits show an increase for the period of 129.1 millions. Other demand deposits (net) show an increase of 94.2 millions, a much larger increase (152 millions). being shown for the New York City banks alone. Time deposits also went up, the amount on September 19 being 81.3 millions in excess of the August 15 figure. Reserve balances with the Federal Reserve Banks, after a decline noted for the week ending August 22, increased steadily for the three following weeks, but declined by about 134 millions during the last week of the period, apparently as a result of the large loan and investment operations of the reporting banks. The amount of the reserve balances on September 19 was 111.2 millions below the corresponding amount five weeks earlier. On the later date the New York City reporting member banks showed a deficiency in required reserves of about 55 millions. Cash in vault shows an increase of 11.1 millions for the period. Total accommodation extended by Federal Reserve Banks to reporting member banks by the discount of their collateral notes and customers' paper shows a reduction of 66.3 millions for the period, the New York City banks alone showing an even larger liquidation of their borrowings from the Federal Reserve Bank. 1000 FEDERAL RESERVE BULLETIN. October 1,1919. Principal resources and liabilities of member banks in leading cities,, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Aug. 22 to Sept. 19, 1919. 1. ALL REPORTING MEMBER BANKS. [In thousands of dollars; i. e., 000 omitted.] "Boston. Now York. Number of reporting banks: 110 Aug. 22 110 Aug. 29 110 Sept.5 110 Sept. 12 111 Sept 19 United States- bonds to secure circulation: 14,508 48,060 Aug. 22 14,508 48,060 Aug. 29 14,508 48,060 Sept.5 14,608 48,060 Sept. 12 14,608 48,463 Sept. 19 Other United States bonds, including Liberty bonds: 17,528 297,944 Aug. 22 17,302 298,665 Aug. 29 17,213 297,960 Sept.5 16,900 292,237 Sept. 12 17,125 289,244 Sept. 19 United States Victorynotes: 10,481 129,511 Aug. 22 10,433 129,788 Aug. 29 10,452 129,951 Sept.5 9,774 126,344 Sept. 12 9,443 127,797 Sept. 19 United States certificates of indebtedness: 53,028 466,532 Aug. 22.; 50,048 452,208 Aug. 29 75,474 531,784 Sept.5 52,512 460,232 Sept. 12 47,818 569,887 Sept. 19 Total United States securities owned: 95,545 942,047 Aug. 22 92,291 928,721 Aug. 29 117,647 1,007,755 Sept.5.... 93,794 926,873 Sept. 12 1,035,391 Sept. 19 Loans secured by United States bonds. Victory notes and certificates: 61,290 711,724 Aug.22 61,556 709,187 Aug. 29 63,736 705,596 Sept. 5 60,857 704,296 Sept. 12 64,363 747,451 Sept. 19 Loans secured by stocks and bonds other than United States securities: 200,479 ,417,420 Aug.22 202,602 ,392,246 Aug. 29 207,937 ,386,550 Sept.5 213,065 ,417,503 Sept. 12 194,889 ,438,445 Sept. 19 All other loans and investments: 600,079 3,020,756 Aug.22 607,878 2,997,957 Aug. 29 618,236 3,059,889 Sept.5 629,814 3,095,933 Sept. 12 615,205 3,140,630 Sept. 19 Total loans and investments: 957,393 6,091,947 Aug.22 964,327 6,028,111 Aug. 29 1,007,556 6,159,790 Sept.5 997,530 6,144,605 Sept. 12 963,451 6,361,917 Sept. 19 Reserve balance with F e d e r a l Reserve Bank: 72,459 614,777 Aug. 22 i* 73,071 659,773 Aug. 29 77,430 664,177 Sept.5 78,631 701,450 Sept. 12 70,392 595,321 Sept. 19 Philadelphia. Cleveland. Richmond. Atlanta. San St. Minne- Kansas Chicago. Louis. ; apolis. Citv. Dallas. Francisco. 100 100 100 100 100 Total. 775 774 774 774 776 11,597 11,597 11,597 11,597 11,597 41,791 41,801 41,791 41,791 41,851 25,834 25,834 25,849 25.821 25J821 14,715 14,846 14,851 14,847 14,874 20,585 20,583 20,615 20,698 20,702 17,155 17,255 17,154 17,154 17,154 7,120 7,120 7,120 7,120 7,120 14,266 14,320 14,320 14,327 14,467 18,723 18,723 18,923 18,923 19,103 34,605 34,605 34,605 34,605 34,605 268,959 269,252 269,393 269,551 270,365 34,873 33,870 33,647 32,239 32,161 62,574 61,265 62,960 63,535 61,481 37,438 37,085 35,966 38,466 29,891 28,774 28,507 28,838 28,047 49,991 46,986 47,965 47,867 48,235 15,852 15,525 15,713 14,920 15,159 10,684 10,731 11,688 11,118 10,952 24,536 22,635 23,254 22,975 22,687 18,740 20,238 20,264 20,320 20,253 42,131 44,306 41,667 42,650 42,291 642,182 637,382 636,804 632,065 624,434 16,711 16,437 15,446 16,949 16,510 39,167 39,110 39,229 36,960 35,837 15,786 15,456 15,148 15,727 15,115 14,590 13,599 13,454 13,195 12,798 50,664 50,530 49,151 49,863 49,316 11,013 10,692 10,324 9,855 10,321 6,622 6,373 5,875 6,078 11,411 10,858 11,872 12,133 11,873 5,228 5,087 4,826 5,203 5,145 10,771 10,919 10,761 10,547 12,638 321,955 319.282 316; 489 312,628 312,726 59,177 57,110 65,044 43,895 64,996 95,366 93,780 112,534 89,834 78,589 58,493 47,360 41,010 29,967 22,851 57,755 56,736 68,998 61,514 51,588 199,599 197,605 202,354 168,915 119,896 35,274 34,287 40,856 31,473 27,198 32,871 31,041 35,762 29,282 25,255 35,692 34,482 39,260 45,862 42,445 45,042 36,146 30,903 34,545 122,358 119,014 125,734 104,680 125,264 238,898 235,956 256,514 232,120 217,758 137,551 125,735 117,973 109,981 100,586 116,951 113,955 125,810 118,394 107,307 315,704 320,085 287,343 238,149 79,294 77,759 84,047 73,402 69,832 57,297 55,265 60,445 53,598 49,260 85,905 87,399 95,308 94,477 79,930 77,173 83,308 86,458 80,592 79,046 166,406 165,804 164,300 171,600 156,843 107,194 105,864 105,950 108,247 110,316 42,318 43,138 41,867 41,595 41,855 29,900 29,017 28,399 28,977 27,994 97,495 95,512 92,554 101,391 103,389 27,449 28,082 27,753 28,135 12,953 12,961 12,784 12,870 13,411 18,071 18,012 20,440 19,960 19,563 6,804 6,854 6,742 7,779 6,906 192,179 201,612 198,832 202,791 204,958 285,820 289,208 293,810 294,017 301,743 101,134 101,822 103,502 103,855 106,219 44,393 45,887 46,109 45,449 47,026 324,574 304,030 346,170 349,481 351,435 138,597 142,342 135,568 137,824 135,958 31,652 31,234 33,116 34,291 72,590 71,851 73,302 75,438 73,469 25,195 25,027 25,525 30,225 31,986 106,673 107,212 108,057 109,759 106,754 2,943,553 2,915,491 2,956,596 3,012,523 3,027,173 464,780 463,636 473,679 465,067 478,283 777,055 780,196 777,155 780,009 779,424 300,768 299,384 303,574 311,111 312,787 277,963 282,513 284,082 294,512 300,335 ,192,608 ,211,841 ,184,799 ,178,168 ,210,882 283,330 275,601 276,520 277,072 280,071 231,631 243,231 248,727 254,984 255,296 437,005 440,353 441,243 441,701 442,777 166, 111 165,558 164,188 163,636 170,322 586,005 601,730 593,087 605,262 616,199 8,292,637 8,369,878 8,425,179 8,497,269 8,602,211 946,163 950,066 962,545 944,138 965,348 1,408,967 1,411,224 1,433,429 1,414,393 1,409,241 581,771 570,079 566,916 566,542 561,447 469,207 ,935,516 528,670 388,749 613,571 471,372 ,927,087 523,784 343,109 617,615 484,400 523,888 353,190 630,293 487,332 ,916,383 516,433 354,568 631,576 ,903,855 514,070 352,258 615,739 275,283 280,747 282,913 282,232 288,260 865,500 881,386 884,634 889,524 887,387 14,964,474 14,968,907 15,233,162 15,145,256 15,305,635 66,860 69,615 68,741 69,716 85,054 91,096 90,286 89,084 83,900 35,938 35,491 35,510 36,340 35,820 26,086 51,224 22,117 24,350 46,210 22,692 47,158 21,282 25,374 21,396 25,458 49,979 19,997 64,472 63,680 61,704 62,715 64,276 1,286,616 1,325,776 1,342,058 1,383,481 1,249,379 31,391 29,889 27,728 31,388 31,876 172,695 170,568 178,089 180,342 162,306 43,543 39,341 43,005 41,022 40,795 59,047 1,187,316 56,539 1,155,560 72,293 1,334,416 63,038 1,111,850 52,151 1,125,677 146,554 146,369 159,326 150,840 141,685 2,420,412 2,381,476 2,557,102 2,326,094 2,333,202 1,307,872 26,075 1,302,062 24,164 1,294,285 23,663 1,309,370 22,749 1,343,049 October 1,1910. 1001 FEDERAL EESEEVE BULLETIN. Principal resources and liabilities of member banks in leading cities, including member hanks located in Federal Reserve Bank cities end in Federal Reserve branch cities as at close of business on Fridays, from, Aug. 22 to Sept. 1911919—Continued. I. ALL REPORTING MEMBER "BANKS—Continue*. (In thousands of dollars; i. e., 000 omitted.] Boston. Cash in vault: Aug. 22 Aug. 20 Sept. 5 Sept. 12 Sept. 19 Net demand deposits on which reserve is computed: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Time deposits: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Government deposits: Aug. 22 Aug. 29 Sept. 5 . . . . i Sept.12 ! Sept.19 | Bills payable with Fed-1 erai Reserve Bank: i Aug. 22 ; Aug. 29 Sept. 5 i Sept. 12 Sept. 19 1 Bills rediscqanted with | Federal R e s e r v e Bank: Aug. 22 Aug. 29 Sept. 5 , Sept. 12 Sept. 19 Now York. Cleveland. Philadelphia. Rich- i San Francisco. St. Minne-!Kansas Chicago. Louis. spoils, j City, A t- mond. i ianta. Total. \ 23,438 22,712 24,4n2 25,195 23^ 855 122,829 117,612 125,635 125,040 122,784 17,158 16.062 20.112 22J362 17,407 735;o21 742,420 749,940 774,902 732,173 4.883,154 4,912,104 4,971,564 5,166,362 5,115,190 668,218 664,273 677,461 681,626 657,952 812,200 809,961 819.768 828'. 171 801,510 114,662 111,405 111,227 108,219 111,114 338.586 352^336 351,884 359,513 399,282 21,902 21,783 22.495 21!949 22,196 51,605 40,580 67,532 51,839 61,462 263,657 237,178 295,021 211,737 ! 443,299 33.761 S2J213 4.1,142 30,587 «0;052 14,025 16,479 25,267 14,803 24.142 474,700 : 509,137 : 511,155 j 461,141 i; 348,210 59,937 58,340 54,587 62,697 01,589 118,843 117,827 i 138,303 ; 127,348 : 117,469 ' 13,399 13,275 13,293 14,363 13,126 62,166 66,163 67,145 6SJ449 68,935 9.419 9; 559 10,195 9,864 9,734 8,502 8,575 9.202 8; 783 8,391 332,772 1333,351 j338,789 341,117 334,041 "261.016 1253^03 257,139 260,029 266,737 1.336.042 i; 318; 792 1,309,304 1,374,201 1,303,463 330,324 330,120 326,599 325,379 320,726 1258,424 1262,458 1266,632 |268,393 1268,572 294,695 29fi,600 297,853 297,212 298,210 90,895 93,049 93,417 92,275 93,365 118,582 116,224 116,465 1117,084 118,899 444,820 456,362 449.508 45i; 616 452,264 45.079 U, 935 58,939 43,599 55,743 13,054 12,207 16,401 12,594 15,763 17.364 15; 013 27,567 22,286 15.789 62,747 56,101 72,467 54,266 58,528 19,374 17,701 23,330 15,822 14,277 14,820 13,666 14,111 13,004 11,999 27,550 25,494 31,682 20,068 10,004 140,511 84,534 79,298 143,968 98,814 66,076 146,150 i 97,330 59,295 132,510 ! 89,029 56,715 142,440 | 88,423 52,648 54,470 57,787 58,026 61,193 61,144 119,170 115,405 118,950 80,637 65,495 20,600 24,656 35,003 31,680 30,941 9,790 10,680 16,200 16,764 14.990 14,027 14,261 17,200 19,752 27,986 11,313 12,983 12,953 16,371 20,179 29,920 16,623 29,98S 15,976 33,679 16,712 31,241 16,796 S3,075 16,132 : I I j I ! 14,361 14.813 14'. 771 14;986 j 14,900 9.994 9; 741 9,711 10,506 9,SSS 22,69S 21,129 20,423 21,064 21,959 350,507 345,605 365,330 368,649 358,276 |474,513 '462,670 467,282 467,612 454,583 191,103 194,314 191,691 192,565 189,652 511,373 518,309 525,830 540,604 528,685 10,794,660 10,802.505 10,901', 999 11,220,961 10,973,284 100,977 I 56,871 80,659 30,467 1 i\i A A J i 56,466 rt.o Aim 101,004 79,130 30,552 100,895 56,652 80,461 30,783 101,545 56,792 80,701 30,660 101,603 57,661 81,807 30,932 207,660 208,583 209,839 210.906 212;755 1,900,776 1.923,494 i;921,549 1,928,472 1,978,118 14,673 13,145 28,540 24,766 19,083 9,529 9,694 9,731 4,728 4,865 573,213 524,017 686,443 505,296 770,864 32,661 33,153 33,893 43,337 42,499 17,004 16,567 13,960 13,005 17,621 33,578 30,987 32,172 36,334 36,786 1,086,341 1,123,709 1,147,401 1,037,148 925,339 11,793 418 11,719 397 8,057 513 10,057 1,572 14.456 2,534 1,857 2,362 2,805 4,131 8,972 8,112 7,083 8,169 10,899 290,5S6 287,428 297,805 312,449 335,917 17 17 17 17 17 6 6 6 6 6 10 10 10 10 10 261 260 260 260 262 ! ! 25,588 ! 14,903 16,079 6,174 14,344 15,250 7,128 25,189 14,054 15,370 7,390 20,049 14,189 17,019 11,583 21,946 15,120 18,639 16,305 27,572 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES. ! Number of reporting banks: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 United States bonds to secure circulation: Aug. 22 Aug. 29 Sept. 5 Sept.12 Sept. 19 Other United States bonds, including Liberty bonds: Aug. 22 Aug. 29 .Sept. 5 Sept. 12 Sept. 19 United States Victory notes: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 United States certificates of indebtedness: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 139895—19 71 70 70 70 ! ; i : 71 I 4,378 4,378 4,378 4,478 4,478 38,363 38,363 3S,363 38,363 38,766 8,341 i 268,089 8,143 267,927 8,139 266,491 7,904 260,869 8,139 258,129 ! ! 1 i i 13 i 13 ! 13 I 1 3 '• 13 i 4,131 2,832 2,832 2,832 2,832 2,832 I 3,800 | ! 3,800 I I 3,800 3,800 ! I 3,800 | 1,420 1,419 1,419 1,458 1,438 10,550 10,550 10,549 10,549 10,549 I 2,791 ! 2,791 ! 2,791 i 2,791 ! 2,791 4,753 4,753 4,753 4,753 4,753 4 060 4 060 4 260 4; 260 4 440 18,500 18,500 18,500 18,500 18,500 103,115 103,114 103,313 103,432 104,065 27,131 26,268 26,242 S 25,256 i 25,143 I 9,557 8,855 9,461 9,858 9,169 6,070 6,013 6,038 5,981 6,017 1,243 i 1,177 ! 1,191 i 1,193 I 1,200 : 18,424 15,869 15,717 16,094 15,865 7,785 7,597 7,603 7,208 7,181 2,030 2,091 2,161 2,176 2,528 9,343 7,273 7,569 7,692 7,273 3 644 5 219 5 367 5,345 5,318 20,370 20,572 20,047 20,030 20,066 382,027 377,034 376,026 369,606 9,947 9,930 9,816 9,204 9,239 1,285 1,216 1,202 1,181 1,174 1,837 1,799 1,748 1,806 1,759 24,440 24,023 23,302 23,691 23,359 5,312 5,213 5,043 4,640 5,195 3,956 3,815 3,422 3,066 3,186 4,975 4,615 5,881 5,777 6,042 1,562 1,532 1,440 1 590 1,588 3,426 3,526 3,521 3,298 3,331 185,405 183,159 182,410 176,579 178,698 20,959 20,079 22,943 14,515 12,302 746 746 1,421 1,248 1,098 24,183 24,988 29,340 28,406 24,479 115.892 113;586 114,704 96,282 66,576 26,485 26,174 31,397 23,932 20,750 10,666 9,797 11,576 8,750 10,424 16,964 20,905 22,810 21,358 13,545 17, 320 21, 225 25,730 20,750 20,651 15,977 15,343 22,282 16,843 16,889 767,214 751,692 882,738 727,744 816,292 7,587 7,587 7,587 7,587 7,587 2,752 2,730 2,777 2,129 1,888 112,141 111,375 111,733 106,904 108,974 13,772 13,385 12,545 13,293 12,963 35,972 33,485 55,070 35,090 28,805 431,800 417;181 489,127 424,327 542,335 50,250 48,183 56,338 36.243 581438 7 9! 9j 9! 41 ! 41 i 41 i 41 41 1 i j i I 4,081 4,081 4,081 4,081 I I I I I 1002 October 1 9 1919. FEDERAL. RESERVE BULLETIN. Principal resources and liabilities of member banks in leading cities, including member hanks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Aug. 22 to Sept. 19,1919—Continued. 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued. Jin thousands of dollars; i. e., 000 omitted.] I New York. Boston. Total United States securities owned: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Loans secured hy United States bonds, Victory notes, and certificates: Aug. 22 , Aug. 29 Sept.5 Sept. 12 Sept. 19 Loans secured by stocks and bonds other than United States securities: Aug." 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 All other loans and investments: Aug. 22 Aug. 29 , Sept.5 Sept. 12 Sept. 19 Total loans and invest- . ments: Aug. 22 i Aug. 29 .... Sept.5 Sept. 12 Sept. 19 Reserve balance with F e d e r a l Reserve ! Bank: Aug. 22 Aug. 29 Sept.5... Sept. 12 Sept. 19 Cash in vault: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Net demand deposits on which reserve is computed: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Time deposits: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Government deposits: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Bills payable with Federal Reserve Bank: Aug. 22 Aug. 29 Sept.5.., Sept. 12 Sept. 19 i Philadelphia. 51,443 48,736 70,364 49,601 43,310 850,393 834,846 905,714 830,463 948,204 44,955 44,723 47,820 44.248 47'; 424 669,272 j 160,384 663,159 159,859 660,934 158,311 662,922 163,970 Richmond. Atlanta. 10,933 10,837 11,493 11,242 11,121 31,063 31.764 36', 079 35,205 31,238 160,176 154,897 155,142 137,505 107,238 50,132 49,534 54.592 46', 329 43,675 32,935 15,906 31.909 16,018 3l',273 15,828 32,796 15,330 33,623 15,640 9,504 9,407 8,861 9,094 8,962 70,805 69,010 66,244 73,353 77,512 19,554 20,036 19,662 20,620 20,620 Cleveland. 44,544 42,945 46,301 37,6158 34,841 98,740 95,423 102;712 82,379 101,131 St. Minne- Kansas Chicago. Louis. apolis. Citv. 19,443 18,494 19,950 16,783 18'. 929 San Pallas. Francisco. 36,035 37,546 40,993 39,580 31,613 26,586 32.036 36'. 797 311945 Si', 997 7,079 7,295 7,415 7,529 7,911 1,414 1,511 1,412 1,460 1.577 7,187 7,211 7; 090 7,209 7.347 • Total. 58,273 1,437,763. 57,941 1,414,999 64,350 1,544,487 58.671 1,377,361 58,786 1,465,083 14,409 14,406 13,011 12,431 11,551 1,053,384 1.044,544 I)037,861 1,050,962 1,089,478 51,161 50,827 51,693 51,970 52,836 2,212,153 2.175,474 2', 212,397 2,262.071 2,258', 408 706,496 150,815 156,123 155,978 162,466 165,612 142,378 1,297,691 1,269,101 1,265,683 1,291,036 1,303,217 174,387 183,974 181,141 184,736 187.760 16,358 11,136 15,881 11,573 99', 591 15,644 131747 103,040 15,644 12', 516 103.. 981 15,349 14,873 251,205 230,965 271,673 272,808 273,018 110,523 12.166 28,432 0,490 113,647 9,065 27,870 0,610 106,773 9,213 28,185 6,635 110,069 14,001 29,348 11,291 108,150 14,037 29,155 I 13; 148 423,524 432,441 430,303 441,411 2.677,322 2', 661,643 2,706,911 2,739,423 2,796,577 403,595 402.193 412;058 405,800 416,031 213,295 2141049 2201085 2221,728 225;957 661,334 675,501 644,319 635,031 657,479 180,858 180,424 182,766 180,829 177,725 .10.337 .17', 086 .21,033 .22,942 .23,929 162,854 166,321 168,251 166,157 162,297 676,045 681,878 710.953 700'. 872 666', 011 5,494.678 5,428', 749 5,539,242 5,523,844 5,754,494 837,546 841.449 854,222 836,885 858,743 389,874 103,244 98,439 1.143,520 361,067 388;886 99,275 L02,179 i; 130,373 363; 641 397,250 98,825 .10,256 1,137,378 363,793 396,222 102,216 113,299 1,118,697 357,847 398], 402 103,976 110,726 1,115,747 350,170 .49,133 .51,856 .57,286 .60,935 .64,242 234,400 239,032 244,844 242,614 230,976 58,157 5S,4O1 61,870 62'. 987 56', 626 578,000 621,602 629,761 663.05S 562', 986 63,325 62,181 03,147 62,865 22,033 26,667 23,804 24,592 18,707 6,653 5,833 5,773 5,912 6,310 5,565 8,345 5,752 6,310 7,506 14,317 13,987 15,426 15,536 14,929 110,376 106,050 111,898 111,425 109,758 13,395 13,048 15.091 14;700 13,738 7.351 7', 350 8,096 7,794 7,990 1,602 1,431 1,543 1,601 1,558 2,736 2,699 2,825 3,155 2,856 37,014 37,949 38,604 38,739 38,345 5,166 5,244 5,604 5,593 5,331 2,680 2,493 2,909 2,856 2,455 3,695 3,780 3,712 3,645 3 880 1.803 l',790 1,832 1,898 1,923 566,572 573,063 575,872 597,178 560,127 14,467,089 :4,487,636 !4,545,032 14,728,369 |4,683,349 202,404 206,632 210,330 215,489 210,820 54,247 55,881 54,796 56,839 55,867 50,747 49,030 50,459 51', 125 57,626 895,076 877,521 872,012 902,202 860,895 J233,505 233,488 231,400 23l',942 229,436 114,842 118,005 120,133 117,719 119,529 1168,765 169,928 175,093 172,017 170,037 58.928 62', 293 60,081 59,920 62,665 19,489 8,994 19.273 9,033 19,495 9,063 19,610 | 9,091 20,783 i 9,843 3,210 3,231 3,275 3.309 3)317 73,660 73,752 73,902 74,257 75,450 821,083 829,098 830;608 833.080 884;326 90,120 99,983 60,047 46,736 56,539 49,435 55.860 51,569 6o;ooo 56,484 55,653 61,866 42,789 43', 915 42,148 42', 056 44,603 278,621 5,215,858 288,988 5,288,535 |276,338 5,311,688 j284,919 5,357,780 284,219 5', 439,235 i 583.376 580^68 592,083 601,385 573;393 I 36,600 33,255 33,090 30.485 i 32;834 ! 261,666 271' 438 270,999 274', 895 318,286 13,425 j 133,571 18,156 20,348 13,239 i 134,580 18,523 20,442 13,927 I 135,402 18,697 20,561 13,769 135,344 18,616 20,637 13,750 136,545 18,692 21,510 40,222 ! 36,252 i 53,331 ' 40,487 50,642 247,364 222,531 274,843 196,605 433,935 32,562 28,844 36', 867 27,280 I 57,012 ' 6,745 i 9,239 i 19,022 ; 7,893 I 15,167 ! 425,720 454,757 458,481 407,374 295.895 132,971 I 136i353 i 139,750 I 126,045 ; 136V769.S US, 486 32,366 115.526 29,080 123;983 32,197 122,690 30,599 107,937 30,226 168,328 63,636 168,625 63,707 168,904 63,293 169,309 63,758 169,278 itVXj OI'T. 77,279 402,464 9,919,156 84,072 412,162 9,923,552 86.992 405,392 0,106,433 ! 86,752 |407'. 991 0,048,174 i 91,325 1107', 392 0,252.204 UVl 13,155 18,321 11,572 13,727 13,938 15,670 11,963 13,401 11,872 16,455 HM 1W, 6,924 6,338 5.842 6,325 4,721 DBA 29,371 949,317 28.549 986', 965 26', 427 1,007,198 26,741 1.037,725 27,976 '914,187 7,378 6,905 7,148 7,303 7,310 207,513 202,726 214,688 214,245 210,083 224,271 7,619,822 229,286 7,642.831 234,097 7,72i; 388 243,136 7,977,321 235,211 7,818,955 5.908 5; 166 11,128 9,678 5,655 45,020 15,021 40,521 13,910 47,640 18,228 33,404 11,996 36,504 11,900 4,906 4.563 2.890 4', 306 14; 191 1,266 1,259 2,183 2,102 1,830 5,475 1(5,401 8,556 15,452 7,289 17,173 21,931 j10.193 20,225 I 4; 780 15,561 7,159 7,187 6,811 2,991 2,856 438,316 396,889 508,108 369,192 640,241 28,496 30,331 27,767 28,612 19,344 15,861 14,280 14,617 16,329 17,532 17,030 20,431 22,049 26,262 24,378 57,291 17,709 53,135 15,563 60,473 25,039 40,067 22,032 32,387 20,289 2,430 1,120 5,490 7,519 6,720 ! 22.934 I 23', 473 j 22,316 ! 23,428 ! 21,758 5.250 4/750 3,700 3; 750 7,000 13,71 12,881 14,773 15,704 18,347 746,226 776,313 813,477 725,015 615,576 13,931 13', 915 15,083 9.925 October 1,1919. 1003 FEDERAL RESERVE BULLETIN. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank cities and in Federal Reserve branch cities as at close of business on Fridays J'rom Aug. 22 to Sept. 19,1919—Continued, 2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES-Continued. [In thousands of dollars; i. e., 000 omitted.) ! Rnotnn Ii Boston. Bills rediscounted with F e d e r a l Reserve Bank:: Aug. 22 Aug. 29 Sept.5 Sept. 12....... Sept. 19 48,547 47,112 43,146 50,874 49,966 New San St. j Minno- Kansas Louis.! apolis. City. Dallas. Francisco. Cleve- Richij PMladeli lan(L pMa mond. York 104,651 103,071 122,764 112,163 100,819 24,920 24,523 19,290 21,781 26,056 6,036 6,120 5,775 5,508 5.034 4,601 4,726 4,610 4,524 3,310 4,271 4,851 4,079 5,563 7,384 9,765 9,110 11,667 12,155 15,052 617 748 912 5,002 7,600 i i I ! | 930 5,299 5,546 2,515 4,598 9,221 627 1,256 2,001 2,057 1,995 5,085 Total. 212,345 207,808 216,815 224.790 231^713 3. MEMBER BANKS IN F E D E R A L R E S E R V E BRANCH CITIES. ! FranAtlanta Chicago St.Louis8 Kansas Dallas Sancisco City district.* district.* | district.* district. district.* district.* district.* Number of reporting banks: Aug. 22..! : Aug. 29 Sept.5 Sept. 12 Sept .19 United States bonds to secure circulation: Aug. 22 Aug. 29 Sept.5 „ Sept. 12 " Sept. 19 Other United States bonds, including Liberty bonds: Aug." 22 Aug. 29 Sept.5 Sept.12 Sept. 19 United States Victory notes: Aug. 22 .' Aug. 29 Sept.5 Sept.12 Sept. 19 United States certificates of indebtedness:' Aug. 22 Aug. 29 SeDt.5 Sept. 12 Sept. 19 Total United Statessecuriti.es owned: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept.19 Loans secured by United States bonds, Victory notes, and certificates: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Loans secured by stocks and bonds other than U. S. securities: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 j All other loans and investments: Aug.22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Total. ! 19 IS 18 18 18 ! S i ! ; 12 12 12 12 12 1,599 1,599 1,599 1,599 1,51)9 24.397 24j407 24.397 24j397 24.407 5,596 5,596 5,611 5,583 5,583 4,685 4,685 4,685 4,685 4,685 i ! ; I i 1,805 1,805 1,805 1,870 1,870 5,483 6/494 6,373 6,485 6,403 41,206 40,972 41,327 40,958 39,719 8,771 8,588 9,101 9.392 8;977 8,785 8,871 8,691 i ! ! ' 17,068 17,008 16,504 18,897 16,720 8,806 I 8,721 7.807 7', 548 7,359 7,207 \ 21,904 21,843 22,038 20,584 .19,786 18 IS 18 18 18 17 ! 12 12 12 12 12 30 30 30 I 30 172 172 172 172 172 5,255 I 5,355 j 5,255 i 5,255 i 5,255 i 4,487 4,487 4,487 4,487 4,487 6,758 6,758 6,758 6,758 I i ! I I 7,170 ! 7,204 ! 7,477 i 7,230 j 7,150 j 0,373 I 6,401 ! 6,630 I 6,625 6,555 7,379 7,273 7,219 7,297 7,259 15,111 14,899 14,904 14,895 14,746 117,791 117,999 117,807 118,359 116,049 16,613 I 16,514 I 16,331 ' 16,132 15,949 5,157 i 5,007 i 4,877 i 4,818 ; 4,788 ! 2,419 I 2,320 ! 2,267 I 2,481 ! 2,258 I 1,395 1,397 1,399 1,441 1,431 4,726 4,931 4,853 5,015 7,036 72,074 72,012 71,067 70,843 71,411 7,970 ! 7,125 i 8,554 ! 6,868 i 5,902 I 8,390 ! 8,603 i 10,847 ! 12,3041 8,600 ! 10,082 I 10,844 ! 9,370 i 8,920 i 8,174 ! 31,724 32,082 36,783 33,293 24,197 254,918 242,964 267,153 220,532 178,105 (3,758 8,485 8 485 ! 8,485 8,485 8,485 ! 63,067 63,177 63,082 63,119 63,129 60,458 60,094 73,417 (51,744 55,578 41,211 I 30,391 i 22,632 ! 13.970 | 10;584 I 21,708 19,484 64,475 ! 25,383 49,151 ! 20,291 17,128 ! 35,348 j 26,688 I 147,065 29,646 i 147,316 31.533 j 161,179 147,68S 29^522 ! 139,490 59,471 I 48,695 ! 40,716 32,751 29,003 44,506 I 40,953 I £8,401 i 41,206 !: 37,711 i j i ! { 25,552 i 24,751 j 26,163 ! 24,171 i 23.095 i 21,699 I 21,811 I 24,231 ! 25,897 ;! 21,900 25,614 26,272 2-1,746 24,416 i 23.622 ! 60,046 00,397 65,025 61,688 54,464 507,850 496,152 519,109 472,853 428,894 62,785 62,504 62,960 554,082 12,049 j 11,516 ! 11,242 | 11,433 ! 11,689 J 11.259 | 12,477 1 10', 733 j 12,550 1 10,909 j 11,963 i 11,661 I '9)918 ' 11,472 ! i 22,963 I 37,295 I 24,965 i 36,471 22,666 I 37,393 23,288 | 39,786 23,140 1 38,672 6.530 I 6,664 ! 6,656 ! 6,392 ; 6,580 ! 9,740 I 6,226 ! 8,434 i 8,006 j 7,664 ! 2,216 ; 2,254 I 2,242 ! 2,226 I 2,195 I 6,784 6,613 6,107 6,112 5,963 133,071 134,801 135,923 134,345 134,112 11,941 11,509 11,794 11,781 11,807 33,862 34,438 33,975 34,777 30,574 357,801 364,331 368,987 372,145 375,080 138,268 ' 49,697 48,221 140,735 48,855 138,501 48,348 139,005 50,395 143,690 207,236 209,621 213,009 218,032 225,391 1,484,501 1,492,246 1,498,408 1,508,926 1,539,115 12,522 13,357 15,692 13,991 12.504 65,008 31,338 33,676 34,567 35,628 37,843 100,272 104,282 119,273 113,933 115,431 135,916 137,636 141,235 139,545 146,096 32,703 33,323 33,844 34,063 35,373 401,839 S 92,400 404,089 i 93,400 92,732 397,284 398,108 I 94,613 94,855 148,284 149,661 148,389 150,738 154,732 96,339 96,311 99,115 84,050 69,887 258,443 261,136 260,723 264,455 270,612 I 25,284 25,897 25,987 25,090 25,117 ! j ! ! I 88,062 81,101 79,642 i 81,694 I 87,621 ! 26,499 ! 26,416 ! 27,526 I 28,187 j 26,458 l 1004 October 1,1919. FEDERAL RESERVE BULLETIN. Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve^ Bank cities and in Federal Reserve branch cities as at close of business on Fridays, from Aug. 22 to Sept. 19, 1919—Continued. 3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued. [In thousands of dollars, i. e., 000 omitted. New CleveRichFranAtlanta Chicago St. Louis Kansas Dallas Sancisco York land mond City district .i district .2 district." district .* districts district.s district.' district .8 districts Total loans and investments: Aug. 22 Aug. 29 Sept.5 Sept. 12 , Sept. 19... Reserve balance with Federal Reserve Bank: Aug. 22 Aug. 29 , Sept.5 Sept. 12 Sept. 19 Cash in vault: Aug. 22 Aug. 29 4 Sept. 5 Sept. 12 Sept. 19 Net demand deposits on which reserve is computed: Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Time deposits: Aug. 22 Aug. 29 Sept.5...., Sept. 12 Sept. 19 Government deposits: Aug. 22 Aug. 29 Sept.5 Sept. 12 Sept. 19 Bills payable with Federal Reserve Bank: Aug. 22 Aug. 29 , Sept.5 Sept. 12 Sept. 19 Bills rediscounted with Federal Reserve Bank: Aug. 22 Aug. 29 Sept.5.., Sept. 12 Sept. 19 i Buffalo. a Pittsburgh and Cincinnati. 3 Baltimore. Total. 170,529 183,315 200,783 194,067 196,419 748,505 751,545 762,658 749,398 746,982 196,623 186,934 178,534 172,860 170,920 227,012 226,312 228,365 226,170 225,501 404,554 406,468 409,194 399,952 390,643 145,428 138,413 138,448 137,347 142,413 193,176 195,188 198,692 201,095 199,712 89,468 88,256 87,637 86,771 88,019 307,928 311,099 318,116 320,609 316,392 2,483,223 2,487,530 2,522,427 2,488,269 2,477,001 11.671 14', 601 12,776 13,884 11,815 46,899 48,557 50,318 47,555 48,409 13,347 13,138 13,537 13,876 13,172 17,328 15,875 14,307 16,966 16,603 25,382 26,544 26,819 28,404 27,385 10,140 9,228 9,765 9,303 17,296 15,765 15,703 17,399 18,601 6,519 7,597 6,710 6,617 6,625 22,547 22,530 22,738 23,433 22,974 171,129 173,835 172,673 177,527 175,581 2,734 2,432 3,190 2,896 2,820 13,434 13,451 14,893 13,484 14,716 5,144 5,397 5,245 5,544 5,216 6,356 6,143 6,051 6,432 12,551 14,289 14,513 15,379 15,005 3,515 3,601 3,787 3,539 3,662 5,158 5,316 5,279 5,337 5,131 2,634 2,578 2,715 2,910 2,861 7,262 7,242 7,561 7,167 6,703 58,788 60,449 63,234 62,688 62,194 114,061 126,007 126,518 128,343 125,938 446,243 440,039 446,967 445,466 429,205 116,563 115,556 117,836 116,422 112,797 147,026 142,799 144,421 144,320 145,260 196,383 199,399 196,763 223,573 206,783 85,577 85,659 84,319 82,407 81,026 148,223 147,299 146,860 147,755 141,296 54,639 54,443 53,425 54,517 49,246 179,312 181,729 185,221 190,146 185,817 1,488,027 1,492,930 1,502,330 1,532,949 1,477,368 27,973 31,666 31,539 31,626 31,477 90,588 91,471 91,733 90,920 90,779 18,127 18,758 18,686 18,658 19,359 62,158 59,609 59,439 59,617 58,610 176,585 177,293 177,753 181,280 181,614 30,105 30,027 30,310 30,499 40,774 41,200 41,543 41,835 41,917 16,780 16,841 16,875 16,731 16,710 98,376 98,898 99,725 100,295 100,433 561,466 565,763 567,603 571,461 571,185 5,796 5,493 7,863 6,206 4,769 24,135 24,866 36,345 28,095 37,443 5,480 4,922 6,547 5,273 8,221 7,540 6,350 11,018 8,542 7,299 6,506 5,589 12,155 10,764 11,248 4,044 3,520 4,822 3,679 2,322 6,178 5,447 8,063 5,067 2,453 3,337 3,215 3,875 2,761 2,142 1,391 1,528 1,941 1,095 1,367 64,407 60,930 92,629 71,482 77,264 12,395 16,595 16,280 17,891 17,818 51,092 62,776 63,232 55,825 64,313 36,393 24,136 17,236 11,570 9,901 9,985 9,697 7,590 8,227 10,628 49,059 48,] 25 45,024 23,783 17,697 8,181 8,283 9,371 8,905 9,952 3,249 3,555 5,730 13,165 13,397 7,365 7,325 5,163 4,063 4,868 16,100 14,692 16,113 15,229 12,722 193,819 195,184 185,739 158,658 161,296 5,972 6,186 6,642 6,911 6,942 5,869 4,92S 4,562 4,983 5,985 6,006 5,608 5,606 7,126 9,805 1,137 1,171 1,044 828 1,391 1,239 2,168 2,831 3,486 3,285 6,194 7,102 7,808 9,700 11,337 1,165 574 1,072 934 797 4,844 5,048 4,534 4,977 4,618 32,695 33.052 34,368 39,254 44,643 j ! ! i ! * New Orleans, Jacksonville, and Birmingham. a Detroit. e Louisville, Memphis, and Little Rock. 309 j ' Omaha and Denver. s El Paso and Houston. s Spokane, Portland, Seattle, and Salt Lake City. October 1,1919. 1005 FEDERAL KESEEVE BTJLLETIST. IMPORTS AND EXPORTS OF GOLD AND SILVER. Gold imports into and exports from the United States. (In thousands of dollars; i. e., 000 omitted.] 10 days 11 days 10 days Total since ending ending ending Aug. 20,1919. Aug. 31,1919. Sept. 10,1919. Jan. 1,1919. Total Jan. l to Sept. 10, 1918. IMPORTS. Ore and base bullion United States mint or assav office bars Bullion, refmed United States coin Foreign coin Total 244 . 260 322 11,426 1,049 i 21 19 73 30 27,956 10,600 5,141 10,118 6 38,065 6,774 169 1,366 311 341 55,123 55,132 6,874 5 2,821 4,614 4,030 13,528 8,2.11 213 2,633 15 51.285 12; 559 143,850 110 4,183 3,396 24,70S 9,700 22,172 1.1,057 207,709 32,397 15 CO 12 231 417 9,71.5 22,232 11,069 207,940 32,814 EXPORTS. Domestic: Ore and base bullion United States mint or assav ofPce bars.. Bullion, refined Coin . Total Foreign coir Total exports Excess of gold exports over imports since Jan. 1,1919,8152,817,000. Excess of gold imports over exports since Aug. 1, 1934, 8918,589,000. Silver imports into and exports from the United States. [In thousands of dollars; i. e., 000 omitted.] 10 days 10 days 11 days Total since ending ending ending Aug. 20,1919. Aug. 31,1919. Sept. 10,1919. Jan. 1,1919. Total Jan. 1 to Sept. 10, 1918. IMPORTS. Ore pud base bullion United States mint or assay office bars.. Bullion, reined United States coin . Foreign coin .. 1,776 3,135 1,759 48,276 142 61 15 250 93 106 119 24 332 5,798 710 3,894 27,550 50 18,723 754 3,400 1,994 3,584 2,234 58,678 50,477 1OT 693 09 •'-, 359 11 12 21,702 123,441 2,588 . Total •EXPORTS. Domestic: Ore and ^ase bvlliop United States mint or assav office bars Bullion, reHined. Com Total Foreign: Bullion, refined Coin Total Total exports . . . Excess of silver exports over imports since Jan. 1,1919,3109,357,000. 17 15 4 71,235 79,131 2,204 868 4,403 2,849 152.574 147,743 109 4,121 78 873 137 12,642 2,819 3,644 5,021 109 4,199 1.010 15,461 8,665 977 8,602 3,859 168,035 156,408 27 2,823 Excess of silver exports over imports since Aug. 1,1914, 8389.117,000. 1008 October 1,1919. FEDERAL, RESERVE BULLETIN. Estimated general stock of money, money held by Treasury, and by the Federal Reserve system, and all other money in the United States, Sept 1, 1919. General stock of money in the United'States. Gold coin s 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 Amount per Held outside outside Held by or for the United States capita the United Treasury and States Federal Reserve Treasury Federal Reserve and the Federal! system. Reserve system. Held in the United States Treasury as assets of the Government. 1 §2,944,727,731 3372,942,062 308,"i45,'759' 64,882,795 243,188,017 *i6,'666,'826 346,081,016 2,764,832,415 231,567,200 724,563,070 15,156,163 42,041,668 42,800,403 03,589,826 4 57,029,740 161.086,863 12,560,018 2,628,373 $397,070,640 319,459,613 81,114,285 154,139,856 228,199,228 1,724.621 274,495;113 2,561,703,884 176,206,719 658,345,471 7,563,705,808 7,525,115,301 7,588,473,771 7,592,078,992 7,614,749,260 7,586,752,855 7,566,299,924 7,611,628,810 7,780,793,606 ?; 391,008,277 6,742,225,784 6,480,181,525 6,256,198,271 5,642,264,856 5,480,009,884 5,312,109,272 5,045,213,347 011,419,803 588,526,823 578,848,043 561,315.890 553,979', 534 550,628,454 545,695,945 489,831,726 454,948,160 380,246,203 350,124,750 339,856,074 277,043,358 242,469,027 253,071,614 258,198,442 279,079,137 2,099,226,575 2,142,473,027 2,167,280,313 2,221,850,525 2,215,178,577 2,195,151.766 2,169,183', 676 2.252,757,560 2,220,705,767 2,084,774,897 2,018,301,825 1,873,524,132 1,723,570,291 1,429,422,432 1,280,880,714 952,934,705 849,661,792 4,853,059,430 4,794,114,911 4,842,345,415 4,808,912,577 4,845,591,149 4,840,972, (335 4,851,420,303 4,869,039,524 5,105,139,079 4,925,987,177 4,307.739,209 4,206;800,719 4,255,584,022 3,970,373,397 3,945,457,556 4,100,976,125 3,916,472,418 Total: Sept. 1,1919.. Aug. 1,1919.. July 1,1919... J u n e l , 1919.. May 1,1919... Apr. 1,1919.. Mar. 1, 1919.. Feb. 1,1919.. Jan. 1/1919... Oct. 1,1918... July 1,1918... Apr. 1,1918.. Jan. 1, 1918... Oct. 1,1917... July 1,1917... Apr. 1,1917.. Feb. 1,1917.. , 501,323,946 353,331,470 6,284,202 s4,981,963 $45.65 45.13 45.00 44.75 45.15 45.17 45.33 45.56 47.83 46.34 41.31 40.47 40.53 37.97 37.88 39.54 37.88 1 Includes reserve funds against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of nationalbank notes, Federal Reserve notes, and Federal Reserve Bank notes. 23 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents. Includes standard silver dollars. * Includes Treasury notes of 1890. DISCOUNT RATES. Discount rates of each Federal Reserve Bank approved by the Federal Reserve Board up to Sept. 30, 1919. Discounts other than trade acceptances. Trade acceptances. Secured by U. S. Government war obligations. Federal Reserve Bank. Secured by U. S. cerietyi tificates of bonds and j Victory j indebtednotes, s Boston New York 1... Philadelphia. Cleveland Richmond... Atlanta Chicago St. Louis Minneapolis.. Kansas City.. Dallas San Francisco Otherwise secured, also unsecured, maturing within-— Maturing within 15 | days,inciuding member • banks 7 collateral notes. I 4 4 4 4 4 4 4 4 4 4 4 41 4 4 4 4 4} 4 t4 4J 4i tring Maturin within 15 days, including member banks' collateral notes. 4 4 4 4i 4 4* 4}. 4i i j 4} 41 16 to 60 days. 4| 41 4f 4i 41 4i 41 4 4* 41 4i 4i 4i 5 41 4f 5 Maturing within— j 91 to 180 , Iays(agri 61 to 90 j cultural and 15 days. days. | live-stock paper). 16 to 90 days. 41 4} 41 41 4} 41 41 41 5 5 5 5 % 4-1 41 4 4* 4i 41 » Rates for discounted bankers' acceptances maturing within 15 days, 4 per cent; within 16 to 60 days, 4 | per cent; within 61 to 90 days, 4§ per cent. NOTE 1.—Acceptances purchased in open market, minimum rate 4 per cent. NOTE 2.—Rates on paper secured by War Finance Corporation bonds, 1 per cent higher than on commercial paper of corresponding maturity. NOTE 3.—Whenever application is made by member banks for renewal of 15-day paper the Federal Reserve Banks may charge a rate not exceeding that for 90-day paper of the same class. October 1,1919. 1007 FEDERAL KESEKVE BULLETIN. LOANS AND DISCOUNTS OF STATE BANK MEMBERS. Classified lion of loans and discounts of State banks and, trust companies, members of the Federal Reserve system, us shoiun by their condition reports for June SO, 1919. [In thousands of dollars; i. e., 000 omitted..] i ; | District District District District District; District District District! District! District District District Total No. 1 No. 2 No. 3 No. 4 No. 5 No. 6 No. 7 No. 8 No. 9 ! No. 10 No. 11 No. 12 United States (36 (110 (36 (80 (305 (103 (115 (75 (31 (42 (57 (52 banks). banks). banks). banks). banks).! banks). banks). banks). \ banks). j banks). banks). (1,042 • • • On demand, not secured by 28,105 ' collateral l l t l On demand, secured by Liberty bonds, Victory notes, and U. S. Treasury certificates of indebtedness 2, 233 On demand, secured by other collateral 67, 557 On time, not secured by collateral 1 176, 640 On time, secured by Liberty bonds, Victory notes, and U. S. Treasury certificates of indebtedness 53,891 On time, secured by other collateral ! 49,030 Secured by real estate mortgages or other real estate 1 iens or deeds. 35,322 Acceptance? of other banks dis2,440 counted . Acceptances of this bank purchased or discounted. 1,357 Loans and discounts not classified 32,359 4,213 | 10.372 i 2,063 20,948 4,763 593.276 66,317 : ~ " ! " • 5,473 j 23,981 I 9.255 : 2,806 817 : 2,196 2,622 6,319 135,824 9,224 : 1,389 392 53 100 201 46,371 73,096 I 11,251 j 38,177 :125,200 i 32,694 2,215 5; 559 2,488 5,715 1,023,545 555,611 33,763 82.609 i 36.134 I 47,882 ;309,,8G0 | 69,617 i 22,786 16,861 13,889 46,014 1,411,696 4,501 i 399,566 39,116 32,249 | 5,842 I 10,190 41,287 j 7,968 ! 1,1402,126 332,476 19,346 56,322 18,407 ; 33,110 :173,625 43,325 i 15,149 49,098 j 4,886 69,308 j 5,948 \ 8,977 163,105 j 19,859 | 12,480 7,155 | 119 422 22,278 | 700 2,212 15 ; 43 ! 276 598,112 809,371 6,449 ] 4,128 13,528 393,088 1,298 ! 36 19,735 85 33,907 514 23,007 15 593 i 3,235 \ 1,346 j 2,095 I. 221 | 18,870 9,132 ! 82 3,439 21,315 25,421 21,836 ! 1,122 j j. Total loans and discounts. 16,635 2,031,637 173,227 |337,151 81,291 [148,827 |857,912 |l86,245 | 57,244 2,280 55,508 47,709 101,272 4.494,650 CONDITION OF FOREIGN BANKS OF ISSUE, 1913-1919. BANK OF ENGLAND. [Combined data for issue and banking departments.] [000 omitted.] Doc. 31, 1913. ASSETS. Gold and silver Government securities: H eld by thee iissue Held u department p Held by the banking department.. Other securities Total. July 29, 1914. Dec. 27, 1916. Dec. 26. 1917. Dec. 25, 1918. Dec. 30, 1914. Dec. 29, 1915. ' July 30, 1919. 3185,570 ; S338.191 $250,510 5264,275 $283,899 5384,994 3430,272 89,787 159,816 545416 545,416 89,787 278,304 518,094 89.787 283,732 461.776 89,787 346,037 448,399 89,787 209,955 397.817 1,017,037 | 1,045,529 1,150,460 1,119,194 1,269,217 1,127,831 70,822 70,822 16,111 253,624 616,715 107 193,081 70,822 16,005 204.439 604:232 50 223.586 1,150,460 1,119,194 : | j i $170,245 89.787 641233 253,729 89,787 89,787 72,061 53,556 ! 516998 230219 '' 230,219 ; 516,998 ! 577,994 559,132 70,822 15,827 43,913 297,280 66 141,086 70,822 16,994 61,868 264,830 54 144,564 577,994 559,132 LIABILITIES. Proprietors' capital Rest (surplus) , Public deposits Other deposits. ^ Seven-day and other bills.. Notes in circulation Total. 70,822 15,978 131,0(37 623,182 116 175,872 16,118 241.755 544'. 914 ' 87 171,833 1,017,037 I 1,015,529 i I j j 70,822 15,850 115,059 725.289 ' 48 342,149 1,269,217 70.822 16; 371 87,018 567,215 68 386,337 1,127,831 1008 FEDERAL RESERVE BULLETIN. October 1,1919. BANK OF FRANCE. [000 omitted.] July 30, 1914. Bee. 26, 1913. Gold in vault Other metallic reserve.. Total metallic reserve Gold held abroad Foreign credits Government securities: Permanent investments | Advances to the Government since out- j break of war I Treasury bills discounted (advances to j foreign Governments) j Other Government securities j Loans and discounts j Bills matured and extended j Advances on bullion, specie, securities,etc.! B ank premises I Sundry assets | Total assets LIABILITIES. Total liabilities 2 No data available as at end of 1914. AdvancevS on securities only. Dec. 30, 1915. $678,856 123,532 8799,279 120,689 §799,359 67,750 $967,950 67,953 802,388 919,968 867,109 1,035,903 57,900 57,900 ""263; 962 Dec. 28, 1916. Dec. 27, 1917. Dec. 26, 1918. July 31, 1919. $652,885 I §639,682 47,798 56,910 ! §664,009 61,441 57,877 687,480 393,162 150,231 725,450 393,162 450,939 750,515 381,808 323,150 709,795 326,766 159,380 57,900 57,900 57,900 57,900 57,900 694,800 965,000 1,428,200 2,412,500 3,309,950 4,496,900 41,165 702,040 2150,686 121,590 21,882 82,859 354,002 222,320 347,400 21,742 119,599 258,395 254,326 621,460 21,805 176,009 221,395 236,386 706,380 21,793 186,672 144,869 243,188 8,990 306,397 3^064 146,443 9,302 67,872 79,806 105,919 130,046 680,518 21,757 203,101 198,513 234,633 8,960 299,202 | 1,397,033 1,695,913 3,145,224 3,789,422 5,108,374 6,584,085 7,628,562 I 35,223 I 8,206 ; 309 ! 77,818 ! Ill,038 I 1.102,715 | ' 61,694 35,223 35,223 ! 8,206 :. 899 i. 73,835 i 34,075 182,881 ! 515,687 1,289,855 i! 1,927,306 105,014 . 35,223 8.292 4; 211 33,562 407,970 2,568,801 87,165 35,223 8,292 4,853 2,897 436,223 3,219,012 82,922 35,223 8,292 4,985 48,609 562,352 4,311,002 137,911 35,223 8,292 973 21,555 456,676 5,838,172 223,194 35,223 8,294 1,801 9,419 563,516 6,759,772 250,517 j 1,397,033 1,695,913 ! 3,145,224 3,789,422 5,108,374 6,584,085 I 7,628,562 "22^ 682* 471,746 294,607 "149,7)74" [ Capital Surplus, including special reserves Dividends unpaid Government deposits Other deposits Bank notes in circulation Sundry liabilities 1 Dec. 10, 1914.1 Incomplete data for Dec. 10,1914, taken from the annual report of the bank for 1914. GERMAN REICHSBANK. [000 omitted.] Dec. 31, 1913. Totalassets Dec. 31, 1915. Dec. 31, 1916. Dec. 31, 1917. Dec. 31, 1918. Aug. 15, 1919. S498,089 8,774 8581,954 7,633 $599,873 3,884 $572,768 43,161 4,764 S263,343 4,722 363,670 7,9G0 2,740 495,296 48,121 94,392 51,901 506,863 208,250 1,264 936,903 5,443 8,086 51,173 589,587 306,512 745 1,381,189 3,079 12,227 64,791 603,757 100,457 332 2,287,124 2,322 19,932 186,622 615,929 312,920 160 3,473,873 1,217 21,220 497,752 543,572 1,254,599 715 6,530,491 1,429 37,159 569,060 268,065 2,042,994 1,571 7,160,893 2,102 32,891 458.359 1,717,! 2,358,130 3,200,546 4,923,071 8,937,025 9,966,875 42,840 17,726 692,442 299,515 11,558 42,840 17,726 1,200,924 418,144 38,348 42,840 19,171 1,646,465 561,445 88,209 42,840 20,342 1,917.007 1,086; 281 134,076 42,840 21,453 2,729,324 1,915,993 213,461 5,285,182 3,291,924 294,414 42,876 22,629 42,840 23,680 6,796,011 2,280,367 823,977 885,250 j 1,064,081 1,717,982 2,358,130 3,200,546 4,923,071 8,937,025 9,966,875 344,339 10,996 I 3,038 ! 354,798 !I 22,485 96,012 j 53,582 ' I Dec. 31, 1914. $298,261 65,409 $278,453 60,886 Gold Other metallic reserve. Total metallic reserve Imperial Treasury and Loan Bank notes Notes of other banks Bills, checks, and discounted Treasury b i l l s . . . Advances on collateral Securities Sundry assets July 31, 1914. 885,250; 1,064,081 LIABILITIES. Capital paid in Surplus Reichsbank notes in circulation Other liabilities payable on demand. Sundry liabilities Total liabilities. 42,840 ! 16,671 i 617,240 ! 188,763 ! 19,736 ! INDEX. Acceptances: Page. Banks granted authority to accept up to 100 per cent of capital and surplus '. 901 Holdings by Federal Reserve Banks during August 99.1 Purchases by Federal .Reserve Ban kg during A ugust... -" 989 .Purchases by Federal Reserve Banks during 3 months ending Aug. 3.1 "... 990 Trade, conditional sales as the basis of trade acceptances 964 Agricultural paper held by Federal Reserve Banks (luring August * 99.1 Alabama banking laws, amendment to, relative to State bank membership in system 967 Amendments to Federal Reserve Act. (See Banking laws.) Antiprofiteering legislation, status of 967 Attorney General, opinion by, on sale of warehouse certificates on whisky held in bond 90S Bank of England, condition of, 1913-1919 1007 Bank of France, condition of, 1913-1919 1008 Bank transactions, debits to individual account.. 983-986 Banking laws: Amendment to Alabama banking laws relative to State bank membership in system 907 Amendment to Federal Reserve Act authorizing domestic branches of member banks 960 Amendment to Federal Reserve Act providing for Federal incorporation of institutions engaging in foreign banking 965 Amendment to section 25 of Federal Reserve Act authorizing investments by national banks in the stock of corporations engaged in foreign financial operations 965 Amendments to section 5200 and 5202. R. S., relative to limitations on loaning power of national banks 1 965 Amendment to War Finance Corporation Act. extending aid to American exporters 966 Banking situation., discussion of 917 Branches, foreign, of American banks 962 Budget system, statement by Secretary Glass regarding". 937-942 Business and financial conditions during September. 921 Special reports by Federal Reserve agents 927 Certificates of indebtedness: Holdings of, by American banks on June 30. 1919. \ ' 942 Issues and redemptions of, during September. 909, 958 Letter of Secretary of the Treasury to all banks and trust companies regarding 958 Chapman, W.T., appointed secretary of the Federal Reserve Board 918 (•harts: Note circulation, metallic and other reserves, also price of silver per ounce, in India, 1914-1919 951 Par point map .... 992 ("h art ors issued to national banks during September. 961 Check clearing and collection: Col lection of checks drawn against a saving? account, ruling on 964 Map sh owing States in which banks remit at par. 992 N umber of nonmeinber banks on par list 992 Operation of system. Aug. 16-Sept. 15 — 992 Par list, number of banks on 992 139895—19 8 Pugo. Clearing-house bank debits m 983-980 Collateral notes held by Federal Reserve Banks during August \)\)I Commercial failures reported 960 Cost of living, discussion of 911 Credit and prices, discussion of 911 Crops statistics, b y Federal Reserve districts 962 Currency, changes i n volume of, not responsible . for changes i n prices 912 Debits to individual accounts 983 980 Directors of Nashville branch bank appointed 919 Directors of Federal Reserve Banks, election of class A and B, date for opening polls 901 Discount rates: Changes in, during war period 943 Discussion of 911 I n effect on Sept. 30 1006 Discount and interest rates prevailing in various centers 972 Discount operations of Federal Reserve Banks: A ugust, b y classes of paper 987 Member banks, number of, accommodated in August 987 Three months ending Aug. 31, b y rates charges?. 990 Earning assets of Federal Reserve Banks held during August 988 Emerson, R. G., appointed assistant secretary of Federal Reserve Board . . . . 918 Export trade, discussion of 9.16 Exports: Domestic exports of selected articles, 1910-1919. 95(' From the United States before and-after the outbreak of the war 952 (See also Imports and exports.) Exports and loans to the allies, April, 1917-Juno, 1919 957 Exports and production of selected articles, 1910 1919 956 Failures, commercial. reported 900 Federal Advisory Council, meeting of :'>20 Federal Reserve Banks, resources and liabilities of 993-990 Federal Reserve Board: Changes in organization 918 Moehlenpah, Henry A., appointed member of.. 918 Federal Reserve notes: Changes in volume of, not responsible for changes in prices 912 Note account of Federal Reserve Banks and agents 997, 998 Fiduciary powers granted to national banks 960 Foreign banks of issue, condition of, 1913-1919 .1007 Foreign branches of American banks 962 Foreign exchange rates.'. 9.1.7 German Reichsbank, condition of, 1913-1919 1008 Gold imports and exports 918,1005 Governor of Federal Reserve Bank of Minneapolis, R. A. Young appointed as.. 919 Herson, J. F . , appointed chief Federal Reserve examiner, eastern division ' W-) Hoxton, W. W., appointed executive secretary of Federal Reserve Board 918 Imports and exports: Gold 918,1005 Silver 1.005 Index numbers of wholesale prices 907-97 i i II INDEX. India: Notes in circulation, composition of reserve, and percentage of metallic reserve, July, 1914-Aug., 1919 ;....!. 950 Silver and currency conditions in 945-951 United States equivalent of London price of silver per ounce, and value of silver in a rupee 949 Interest and discount rates prevailing in various centers 972 Investment operations of Federal Reserve Banks during August 988 Law department: Amendment to Alabama banking laws relative •to State bank membership in the system 967 Opinion by Attorney General relative to sale of warehouse certificates representing whisky... 968 Status] of antiprofiteering legislation 967 Status of Federal banking legislation— Amendment to War Finance Corporation Act extending financial aid to American exporters 966 Domestic branches of member banks 966 Federal incorporation of institutions engaged in foreign banking 965 Investments by national banks in the stock of corporations engaged in foreign financial operations, text of act as approved.. 965 Limitations on loaning power of national banks, text of act as passed by Senate and House 965 Liberty bonds: Conversion of 4 per cent coupon bonds, circular of the Treasury Department regarding 958 Holdings of, W American banks on June 30, 1919.. ....•.". 942 'Liquidation of war finance investments 909 Live stock paper held by Federal Reserve Banks during August. - 991 Loans and discounts of State bank members, classification of 1007 Loans and exports to the Allies. April. 1917-June, 1919 1 .' 957 Maturities: 989 Acceptances purchased during August Acceptances purchased during three months ending August 3 990 Bills discounted during August - 990, 997 Bills discounted during three months ending August 31 990 Member banks: Classification of loans and discounts of State bank members 1007 Number of, discounting during August 987 Number of, in each district 987, 992 Resources and liabilities of, in selected cities. 999-1004 Moehlenpah, Henry A., appointed as member of .Federal Reserve Board.: 918 Money, stock, of, in the United States 1006 X ashville branch bank, appointment of directors of. 916 National banks: Charters issued to, during September 961 Fiduciary powers granted to 960 Holdings of war obligations by, on June 30,1919. 942 Upon market operations of the Federal Reserve Banks 987 Paddock, W. W., appointed chief of the division of operations and examination 919 Par list, (flee Check clearing.) Physical volume of trade 974-982 'Prices and credit, discussion of 911 Prices, wholesale, index numbers of 969-971 Profiteering, status of legislation controlling 967 Rates: Page. Acceptances purchased during August 991 Acceptances purchased during three months ending August 31 990 Bills discounted during August 989 Bills discounted during three months ending August 31 990 Discount, in effect 1006 Earning assets of Federal Reserve Banks 989 Interest and discount rates prevailing in various centers 972 Reserves, computation of—Member bank not permitted to deduct a balance due from a foreign banking corporation from the balance due to such corporation in computing its reserve 963 Resources and liabilities: Federal Reserve Banks 993-996 Member banks in selected cities 999-1004 Review of the month: Public finance in September 909 Discount policy 910 Outlook for liquidation 909 Expansion and discount rates 911 Credit and prices 911 Federal Reserve notes 912 Cost of living problem 914 Cost of living index and wage adjustment 915 The export situation 916 Foreign financing and exchange 917 The banking situation 917 Gold movement 918 New member of Federal Reserve Board 918 Changes in organization 918 Directors of Nashville branch bank 919 Meeting of Advisory Council : 920 Rulings of the Federal Reserve Board: Collection of checks drawn against a savings account 964 Computation of reserves—Member bank not permitted to deduct a balance due from a foreign banking corporation from the balance due to such corporation in computing its reserves 963 Conditional sales as the basis of trade acceptances 964 Savings account, collection of checks drawn against, ruling on 964 Secretary of the Treasury, statement by, on the budget system 937-942 Silver imports and exports 1005 State banks and trust companies: Admitted to system during September 961 Holdings of war obligations bv member banks on June 30, 1919 ". 942 Trade, physical volume of 974-982 Treasury certificates of indebtedness. (See Certificates of indebtedness.) Treasury financing during September, discussion of. 909 United States war obligations held by American banks on June 30, 1919 " 942 Victory notes, holdings of, by American banks on June 30, 1919 ." 942 Wage adjustment: Discussion of 915 Extract from address of Hon. A. C. Miller before American Association of Baking Industry 915 Whisky held in bond, sale of warehouse certificates representing, ruling by AttorncyGeneral regarding .' 968 Wholesale prices, index numbers of 967-971 Will, J. A., appointed chief Federal Reserve examiner, western division 919 Young, R. A., appointed governor of Federal Reserve Bank of Minneapolis 919 D FEDERAL RESERVE DISTRICTS O rEOCRALRESERVE BANK CITIES rEDERALRESERVE BRANCH C!Ti£S The branches at Helena, Mont., Los Angeles, Cal., and Nashville, Tenn., have been authorized by the Federal Reserve Board but are not yet open for Easiness,