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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
. ™ e e x p o r t s i t u - 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.

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

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.

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 of
trade is far ahead of last year. Few "no pay v
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
1914, and the commission's report is awaited fine, and gold value of silver in a rupee, July, 1914August, 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
silver per value of
silver
ounce,
1,000 fine. in rupee.
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
silver per value of
silver
ounce,
1,000 fine. in rupee.
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
coin
| circulation. coin and Gold coin Goldbuland bul- and
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-.

1
V£S\* ?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 1 ane ous.
1

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.

L,
911,795 1,526,685'2.046.81.3 1 995, 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"
" ^7GC *7 A
I
184', 820 209'. 2461 36()! 608 477,899 496,175 1,788,748O
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

221,106!
105,996!
70,96594, ISC
492,226
123'. 192'
351.; 55P;

117,401: 115,050; 113,4251
~
' on' nun! 07 902!
24,0-131 29,089| 27^ naoi
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

41,518
16,402
15,981
40,569
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..

Values computed on the basis of 1910-14 average prices.

Average
computed
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

Annual
average
1910-1914

Total value of exports of articles listed above
Total value of all exports
p
t
Percentage of aggregate value of articles listed to total
exports.




Average
actual
annual
value,
1915-19.

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
ports from
from
from United from United
United
United Stales United States United Slates
States.
States. Treas- States. TreasTreasury.
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..

200
200
160

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

Total..
July
August
September..
October
November..
December..

173.2
ITS. 6
160. 7

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

1.2 i

323.3

.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 , ,654.1
4
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 o the conversion privilege but
C
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 comhibit, commercial failures in the United States mittee of estates of lunatics:
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
those of the same month last year, while the mittee of estates of lunatics:
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
The following list shows the State banks natedfor opening the polls. 18, 1919, as the
date
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

Total for ! Tola! for District District District Disirict District
45—
• 1 —
United i lOdis2 --Now PhilaRichCJ eveStates, i tricts. Boston.
mond.
delphia. laud.

District
District | District District'.\ 12—San
9—
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
fixed reserve against demand and time de- be determined. balances with Federal Reserve Banks shall
posits. For the purpose of computing reThe question submitted, therefore, involves
serves, demand deposits are divided into two
general classes, viz, (a) Individual or ordinar}r 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
it refers to "foreign corporations/7 "foreign Act which prohibits any bank from making a
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, supplying, storing, or dealing in any "necessaries;'7
(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) to exact excessive
prices for any "'necessaries.77
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 77
extends 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
to the effect that the sale of warehouse cer- not removal from, bend for beverage purposes, exceptalso
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 remove it
within the meaning of the war prohibition act, except for export, astolong as thefor beverage purposesJ
war prohibition act
and is not prohibited b}^ that act, This opinion remains 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
with reference to its" right to handle drafts purposes is as a beverage as long as its removal for beverage
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.

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

Farm
products.
Julv, 1914
August, 1914..
August 1915
August 1916
August, 1917
August, 1918..

..

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.

Cattle, steers,
good to choice,
Chicago.

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

Average
price per
bushel.

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

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.

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




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.

Coke, Connells- i Copper, ingot,
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

S 6500
O
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.

City.

Open market.

Customers'.
30 to 90

No. 1...
No. 2...
No.3...
No.4...
No. 5...
No. 6...

No.7...
No. 8...

No. 9...
No. 10..
No. 11..
No. 12..




Boston
New York 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

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 5k-5]
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
H- 51
6 6 6

6 51 51
6 5 51
6 6 6
6 6 6
5} 5* 51-51 51- 5*
51
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 4 H
HA
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.

Customers'.

City.

No. 1..
No. 2..
No. 3..
No. 4..
No. 5..
No. 6..

No. 7..
No. 8...
No. 9...
No. 10..
No. 11..
No. 12..




Boston
New York 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

Interbank
. loans.

Open market.

30 to 90
days.

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 6
5J
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

1

5h 5\ 51
6 5 6"

Indorsed.

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

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 6
1
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 4
J
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 45 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.

Sheep, 54 Horses and
mules, 44
markets.
markets.

Cattle and
calves, 60
markets.

Hogs, 60
markets.

Sheep, 60 Horses and
markets. mules, 44
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 |
48,786 •
•
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, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria,
,
_roit,
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!
29,455,557
9311

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. Rela- Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels.
tive.
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.]
Rye.

Oats.

Corn.

Wheat.

Barley.

Total grain.

1918.
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

August

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.
218,690

;!
100,392 h April
!; May
|, Juno
66.189 j: July
122'757 I: August
100.889 !i

263,383

213,806
389,815
355,710

1919.

Receipts.

197,115
337,420
361,010

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- Num- Produc- Ship- Num- Produc- Shipber of
ments. ber of tion.
ments. mills. tion.
ments.
mills.

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.

! Rela1
tive.

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

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

129

146

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

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, Bureau of Markets; idle machinery, January-September, 1918, inclusive,
Tool, Bureau
tion of Woo;
National Association of Wool Manufacturers.]
[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.
Woolen. Worsted, i Pounds.
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.

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

Wood
pulp.

Fine.
1919.
April
May
June
July
August

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

Cigarettes.

Large.

Small.

Number.
540,098,351
510,357,494
551,659,7-19
576,976', 572
569,965,088

Pounds'.
1919.
36,607,578 : March
1
April
: May
29,308,616 : June
27,472,269 i July

Small.
Number'.
84,493,873
73,314,273
57,611,547
A 8' 855,070
47,290,267

Chewing
and smoicing tobacco.

Number.
3,815,079,275
2,650' 1.82,742
2.767.699,400
3', 140', 393,217
3,585,111,783

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 :

Number.

"l

1918.
August

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
• flV
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.

Rela- !
tive. !
i

Bushels.

1,360,698

15

105
75
SO

Relative.

Barrels.

16,729,000
29,096,116
6,402,051
2,391,840
1,487,218

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

910,524
1,031,630
915,420
935,700

151
33
12

Total.

Relative.

846,140

501,050

4,176,041
9,370,374
6,694,901
7,100,008
5,284,741

1919.

Iron ore.

Flour.

Wheat.

Relative.

WESTBOUND.
Hard coal.

Soft coal.

Total.

Total freight.

Short tons.

August
April
May
June
July
August




1918.
,
1919.

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.]
1919
Week e n d i n g -

Federal Reserve district.

1918
Week e n d i n g -

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

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

i
I
1

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

I

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

i

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

1918

Week ending—

Federal Reserve district.

Week ending—

; Sept. 24.
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




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
23,056 ! 25,963
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

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

45,754
i
1
!
i

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

7,482 I

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
3 3 3, 335 5 7 ! 2 8 , 4 9 3
3
7
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.]
1919
Week e n d i n g -

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

1918
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

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

6

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

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.
Six-month bills (all agricultural and live-stock
Number of member Number of member
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 York
402
381
736
741 i
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
States
Victory- certificates of I securities.
notes. indebtedness.!
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.

Purchased United Mxmicipaij
States
bills.
securities. warrants.!

Total August. 1919
Total August; 1918

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

*
.

Calculated annual rates of earnings from—

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,—
16,3 582
350,
201,8
5,4 600
492,
2,2 371
280,
23,5 003 I
529,
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.
Amount.

Total.

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

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

Discount.

Amount.

Discount

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.

Discount

Amount. Discount

8271,739
10,000

20

5,977,335
5,000

118,695
5

6,264,074

Total.

$401

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.

4£ per cent.

Discount.

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.

Amount. Discount.
$25,000
89,835
14,889
610,000

$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




$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.

148
2,553
16,168
4,720
2,927

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

All other
discounts.

115,692
700,196
197,358
125,985
92,310
97,357
205,786
61,658
32,548
64,731
58,023
63,490

129,178

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

1,815,134

71

822
9,001

439

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.

691
6,047
4,448
5,527

393

71,738
82,840
14,270
8,156
13,970
3,830
5,075
5,094
16
1,128
442
2,513

26
20
976

Trade
acceptances,

August,

1,634

Total.

Grand
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

992

FEDEEAL RESERVE. BULLETIN.

October 1,1919.

OPERATION OF THE FEDERAL RESERVE CLEARING SYSTEM AUG. 16 TO SEPT. 15,1919.
Items drawn on banks in Items drawn on banks in
district outside Federal
Federal Reserve city
Reserve city (daily av(daily average).
erage).
Number.

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

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

$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

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

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 parent banks
Items drawn on the
! in other districts
:
and branches (daily Treasurer of the United Number j Number
(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, 5.
Sept.
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
26,825
26825 jj
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.

Boston.

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




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
I 4,568 " 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

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

.
j
J
!
1
!
!
1

1,739,538
1,797,182
1,844,025
1,764,699
j 1,785,021

!

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

400,222
410,349
425,197
416,056
416,559

106,348
113,634
-115,584
120,842
112,860

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.]
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.

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




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 decreases
are caused largely by sales from the banks7
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.
Chicago. Louis. ; Minne- Kansas Dallas. Franapolis. Citv.
cisco.

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.
Chicago. Louis. Minne-!Kansas
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
101,004 rt.o Aim 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
440
1,
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

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.

669,272 j 160,384
663,159 159,859
660,934
158,311
662,922
163,970

44,544
42,945
46,301
37,6158
34,841

98,740
95,423
102;712
82,379
101,131

St.
Chicago. Louis. Minne- Kansas
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 I
Boston. i
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.

j pMa
Cleve- Richi PMladel-i lan(L
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.Louis Kansas
Dallas Sancisco
8
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

18
IS
18
18
18

8,806 I

8,721
7.807
7', 548
7,359
7,207 \

21,904
21,843
22,038
20,584
.19,786

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
CleveRichAtlanta Chicago St. Louis Kansas
Dallas San FranYork
land
mond
cisco
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

244
.

322

11,426

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

Total

260

1,049 i

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.

1,776

1,759

48,276

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

..

3,135

142
61
15

Ore pud base bullion
United States mint or assay office bars..
Bullion, reined
United States coin .
Foreign coin

•'-, 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 exports

.

. .

Excess of silver exports over imports since Jan. 1,1919,3109,357,000.




152.574

147,743

4,121
78

873
137

12,642
2,819

3,644
5,021

109

Total

4,403

2,849

109

Total

15

868

Foreign:
Bullion, refined
Coin

17

4
71,235
79,131
2,204

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 capitaUnited
the
Treasury and States Treasury
Federal Reserve
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.
2 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
3
Includes standard silver dollars.
* Includes Treasury notes of 1890.

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

t
4
4J
4i

tring
Maturin
within

15 days, including
member
banks'
collateral
notes.

4
4
4

4i

4

4*
4}.

4i

i

16 to 60
days.

4|

41
4f
4i
41
4i
41

4
4*
j

4}
41

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:
Held
H eld by the i u department
e issue p
Held by the banking department..
Other securities

July 29,
1914.

Dec. 26.
1917.

Dec. 25,
1918.

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 ;
'' 516,998 !
230,219

577,994

Total.

Dec. 27,
1916.

Dec. 30,
1914.

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
|

LIABILITIES.

$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

146,443
9,302
67,872

79,806

105,919

130,046

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

Total liabilities
No data available as at end of 1914.
AdvancevS on securities only.

3^064

680,518
21,757
203,101
198,513
234,633
8,960
299,202

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

2

Dec. 30,
1915.

| 1,397,033

Total assets

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,





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102