Full text of Federal Reserve Bulletin : October 1921
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FEDERAL RESERVE
BULLETIN
(FINAL EDITION)
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
OCTOBER, 1921
WASHINGTON
GOVERNMENT PRINTING OFFICE
1921
FEDERAL RESERVE BOARD.
EX OFFICIO MEMBERS.
A. W. MELLON,
Secretary of the Treasury, Chairman.
D. R. CRISSINGER,
Comptroller of the Currency.
W. P. G. HARDING, Governor.
EDMUND PLATT, Vice Governor.
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
JOHN R. MITCHELL.
W. W. HOXTON, Secretary.
WALTER S. LOGAN, General Counsel.
W. L. EDDY, Assistant Secretary.
W. M. IMLAY, Fiscal Agent.
H. PARKER WILLIS,
J. F. HERSON,
Chief, Division of Examination and Chief Federal
Reserve Examiner.
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
R. G. EMERSON, Assistant to Governor.
Director, Division of Analysis and Research.
M. JACOBSON, Statistician.
E. A. GOLDENWEISER, Associate Statistician.
E. L. SMEAD,
Chief, Division of Reports and Statistics.
OFFICERS OF FEDERAL RESERVE BANKS.
Boston
Governor.
Chairman.
Federal Reserve Bank of—
C - . Bullen
W. W. Paddock
J.H.Case
L. F. Sailer
G. L. Harrison
E. R. KenzeL
Frederic H. Curtiss
Chas. A. Morss
New York
Pierre Jay
Benj. Strong
Philadelphia
Cleveland
R. L. Austin
D.C.Wills
George W. Norris
E. R. Fancher
Richmond
Caldwell Hardy
George J. Seay
Atlanta
Joseph A. McCord
M. B. Wellborn
Chicago
Wm. A. Heath
J. B.McDougal
St.Louis
Minneapolis
Wm. McC. Martin
John H. Rich
D . C Biggs
R. A. Young
Kansas City
Dallas
San Francisco
Asa E. Ramsay
Wm. F . Ramsey
John Perrin
J. Z. Miller, jr
R. L. Van Zandt
J. U. Calkins
1
2
Controller.
Cashier.
Deputy governor.
W. Willett.
L. H. Hendricks.i
J. D. Higgins.i 1
A. W. Gilhart. 1
Leslie R. Rounds.
J. W. Jones.1
Ray M. Gidney.i
W. A. Dyer.
H. G. Davis.
Wm. H. Hutt,jr
M. J. Fleiuing
Frank J. Zarlinden
C. A. Peple
R. H. Broaddus 2
A. S. Johnstone
John S. Walden 2
L. C. Adelson
J. L. Campbell
C. R. McKay
S. B. Cramer
J o h n H . Blair
Geo. H. Keesee.
M. W. Bell.
W. C. Bachman.i
F. J. Carr.i
K. C. Childs.i
J. H. Diilard.i
D. A. Jones.1
0 . J. Netterstrom.i
A. H. Vogt.
Clark Washburne. 1
0 . M. Attebery
J. W. White.
W. B. Geery
Frank C. Dunlop. 1
S.S.Cook
B. V. Moore.
J.
W. Helm.
C. A. Worthington
R. R. Gilbert.
Win." A." Day*.'.'.'.'.'.'.'.'.'.'.'.'.'.'. W. N. Ambrose.
Ira Clerks.."
L. C. Pontious 3
Assistant to governor.
• Assistant deputy governor.
MANAGERS OF BRANCHES OF FEDERAL RESERVE BANKS.
Federal Reserve Bank of—
New York:
Buffalo branch
Cleveland:
Cincinnati branch
Pittsburgh branch
Richmond:
Baltimore branch
Atlanta:
New Orleans branch
Jacksonville branch
Birmingham branch
Nashville branch
Chicago:
Detroit branch
St. Louis:
Louisville branch
Memphis branch
Little Rock branch
Manager.
W. W. Schneckenburger.
L. W. Manning.
Geo. De Camp.
Morton M. Prentis.
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
R. B. Locke.
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
Federal Reserve Bank of—
Minneapolis:
Helena branch
Kansas City:
Omaha branch
Denver branch
Oklahoma City branch
Dallas:
El Paso branch
Houston branch
San Francisco:
Los Angeles branch
Portland branch
Salt Lake City branch
Seattle branch
Spokane branch
Manager.
0 . A. Carlson.
L. H. Earnart.
C. A. Burkhardt.
C. E. Daniel.
W. C. Weiss.
Floyd Ikard.
C. J. Shepherd.
Frederi ck G reen \\ ood.
R. B. Motherwell.
C. R. Shaw.
W. L. Partner.
SUBSCRIPTION PRICE OF BULLETIN.
The FEDERAL RESERVE BULLETIN is the Board's medium of communication with
member banks of the Federal Reserve System and is the only official organ or periodical
publication of the Board. It is printed in two editions, of which the first contains the
regular official announcements, the national review of business conditions, and other
general matter, and is distributed without charge to the member banks of the Federal
Reserve System. Additional copies may be had at a subscription price of $1.50 per
annum.
The second edition contains detailed analyses of business conditions, special articles,
review of foreign banking, and complete statistics showing the condition of Federal
Reserve Banks. For this second edition the Board has fixed a subscription price of
$4 per annum to cover the cost of paper and printing. Single copies will be sold at
40 cents. Foreign postage should be added when it will be required. Remittances
should be made to the Federal Reserve Board.
No complete sets of the BULLETIN for 1915, 1916, 1917, or 1918 are available.
in
TABLE OF CONTENTS.
General summary:
Page.
Review of the month
1147
Business, industry, and finance, September, 1921
1155
Dealing in acceptances
1166
Application for letters of credit
:
1170
Tobacco
finance.
*.
1174
Some aspects of Italy's war
finance
1177
Business and financial conditions abroad—England, France, Italy, Germany, Netherlands
1186
Official:
Eulings of the Federal Reserve Board
1199
State banks admitted to system
1198
Fiduciary powers granted to national banks
1198
Charters issued to national banks
1200
Price movement and volume of trade:
Domestic—
Wholesale prices in the United States
1201
Foreign trade
1205
Ocean freight rates
1206
Physical volume of trade
1207
Building statistics
1219
Crop estimates
1206
Retail trade
1221
Wholesale trade
1224
Commercial failures
1200
Foreign—
Comparative wholesale prices in principal countries
1225
Comparative retail prices in principal countries
1229
Foreign trade—United Kingdom, France, Italy, Sweden, Japan, and Germany
1230
Banking and financial statistics:
Domestic—
Discount and open-market operations of Federal Reserve Banks
1232
Condition of Federal Reserve Banks
1236,1240
Federal Reserve note account
1243
Condition of member banks in leading cities
1236,1244
Bank debits
1247
Operations of the Federal Reserve clearing system
1251
Gold settlement fund
1250
Gold and silver imports and exports
1252
Money outside the Treasury and Federal Reserve System
1254
Discount and interest rates in various centers
1255
Discount rates approved by the Federal Reserve Board
1254
Foreign exchange rates
1256
ForeignEngland, France, Italy, Germany, Sweden, and Japan
1257
Charts:
Italian war
financing
1178,1179
Index number of wholesale prices in the United States—constructed by Federal Reserve Board for purposes
of international comparisons
1201
Physical volume of trade
1208
Movement of principal assets and liabilities of Federal Reserve Banks
1236
Movement of principal assets and liabilities of member banks
1236
Debits to individual accounts
1247
Foreign exchange index
1257
IV
FEDERAL RESERVE BULLETIN
VOL.
7
OCTOBER, 1921.
REVIEW OF THE MONTH.
During the past month a variety of indications have seemed to point
Business and more and more definitely
credit.
toward a change in the direction of business, accompanied
by improvement in important branches of industry and probably for the country as a
whole. The fact that some exceptions are
noted does not alter the general tendency.
Striking among these indications of a
change in the volume and direction of
business is the alteration that has occurred in the movement of bank accounts
and the progressive liquidation of frozen
credits the country over. It would seem clear
that there has been a slowing down in the general liquidation of bank accommodation. It
will be noted that bill holdings of the Federal
Reserve Banks, member bank reserve accounts,
as well as net demand deposits of the reporting
member banks, were at the lowest point reported for the period under discussion on
September 21, the net demand deposits of
the member banks showing, however, a relatively much smaller reduction from the corresponding August totals than the other two
items. The following brief tabulation furnishes facts with respect to the credit situation:
No. 10
Total bills
hplri h v
F. K. Banks.
May 14,1920
Sept. 24,1920
May 18,1921
Sept.21,1921
Low point
Reserve
account, all
member
banks.
Net demand
deposits, reporting member banks.
$2,964,582,000 $1,874,145,000 $11,563,867,000
3,012,088,000
1,800,677,000 11,160,537,000
1,924,220,000 1,665,517,000 10,155,685.001)
1,420,751,000 1,588,209,000
9,833,196,000
Sept. 21, 1921. Sept. 21, 1921. Sept. 21, 1921.
9,833,196,000
1,420,751,000 1,588,209,000
It was not until close to the end of the year
1920, more than six months after price recession had been in full progress, that business
change was reflected in the volume of
credit.
The movement of credit at Federal Reserve
and member banks should be studied in comparison with the movement of production and
volume of business during the period in question, not because there is necessarily an immediate or close correspondence between any individual item or group of items an,d the credit
situation, but because the volume of trade and
industry and the volume of credit are necessarily interrelated factors. Items showing selected movements of trade during the period
in, question may be represented in tabular form
as follows, for the periods corresponding roughly
to those already selected in the foregoing review of the history of credit:
[005 omitted.]
Month.
May, 1920
September, 1920.
May, 1921
August, 1921
Month.
May, 1920
September, 1920.
May, 1921
August, 1921
Cotton
sight
receipts.
Bales.
361
772
777
617
of Lumber
Receipts of Receipts
Bituminous
grain at 17 liveatstock
shipments Pig-iron Steel ingot Zinc pro- Anthracite
coal procoal pro15
interior
of 3 asso- production. production. duction.
duction.
duction.
western
ciations.
centers.
markets.
Bushels.
64,380
118,409
72,640
177, 430
Cotton
Crude
petroleum consumpproduction.
tion.
Barrels.
36,503
37,532
42,043
40,964
Bales.
541
458
440
467
Head.
4,878
5,266
4,574
4,917
Feet.
Long tons. Long tons. Short tons. Short tons. Short tons.
2,883
7,946
45
862,931
2,986
38,993
3,000
4,638
37
715,968
49,172
3,129
1,266
7,497
18
825,350
33. 330
1,221
1,138
7,196
15
S19,924
34, 538
954
Stamps sold
Value of
Sole
Wool
for small Newsprint merchanleather
consumpproduction.
cigarette
dise exproduction. production.
tion.
ported.
Pounds.
58,589
36,297
56,929
58,261
Sides.
1,706
1,376
1,561
1,607
Number.
3,953, 345
3, 557,483
4,136,085
5,130,577
Net tons.
129
121
79
102
Dollars.
745,523
604,686
329, 710
371,935
Volume of Debits to
exports of individual
29 comdeposit 1
modities
(1913=100) account.
Per cent.
112.5
88.6
112. 5
140.9
i Last week in month.
1147
Dollars.
9,111,513
8,63S, 648
6,992,219
6,286,178
1148
FEDERAL RESERVE BULLETIN.
It will be observed that the agricultural data
thus presented show a different trend from
those which represent manufacture, and that
certain of the series show distinct seasonal
variations. The situation has been set forth in
an index number of the Harvard Committee
on Economic Research, which has issued a
table relating solely to manufactures showing
the movement during 1919-1921 in various
groups of industries. Of this the committee
says that the index " registers the cycle through
which manufacturing activity has passed since
the beginning of 1919." It will be observed
that the low point in most lines was reached
in February, last, and that there have been
various fluctuations since then.
MONTHLY INDEXES OP THE VOLUME OF MANUFACTURE FOR
EIGHT GROUPS OF MANUFACTURING INDUSTRIES AND
FOR THE GROUPS COMBINED.
minor amount, until the month of July, 1921,
when a slight upturn in average prices began.
The significance of changes in bank credit is
always a matter of doubt when
Public finance capital obligations or claims
and credit.
upon fixed forms of wealth or
future income are used as its
basis. This is what usually happens during war;
and a return to normal conditions invariably
results when such elements of bank credit
disappear. Changes in the condition of Federal Reserve Banks during the past year have
been in no respect more striking than in the
diminution of advances based upon public
obligations. In the following table is shown
the extent of the reduction of this element of
the portfolios at both Federal Reserve and at
about 800 reporting member banks:
[1919 monthly average=100.]
Government
Reporting
F. R. Bank
obligations
loans secured member bank
owned by
by Government loans secured
iment reporting memby
Governmei
obligations.
ber banks.
obligations.
Month.
1919.
January
February
March
April
May
June
July
August
September
October...
November
December.
101.6
86.7
92.6
93.7
95.7
95.9
, 101.9
107.2
103.8
104.4
102. 2
102.1
130.1
113.7
113.5
94.6
81.2
90.9
103.1
113.5
97.6
73.2
94.0
103.4
75.5
75.8
88.8
97.8
112.1
103. 5
103.7
123.4
113.8
123.4
102.0
80.1
93.0
82.8
87.0
88.4
95.1
98.3
103.3
108.8
106.2
116.4
108.6
109.8
89.7
83.8
92.8
92.4
100.7
96.1
103.7
107.4
108.3
112.0
107.0
107.6
96.5
72.7
79.0
92.9
99.2
100.2
109.4
103.4 . .
105.3
119.3
104.9
110.1
114.9
87.3
92.1
92.8
98.5
83.8
85.9
88.4
97.7
111.2
109.0
108.6
87.3
83.8
97.7
82.0
88.0
92.9
99.3
101.1
108.6
125.4
117.0
113.0
1920.
January..
February.
March
April
.
May
June
July
August
September..
October. . . .
November..
December..
115.9
104.6
118.0
108.8
111.8
109.6
102.3
104.9
101.4
101.2
8S.9
77.9
124.2
120.5
138.3
111.0
121. 2
124. 9
118.0.
125.3
125.0
126.7
111.3
99.5
101.1
101.3
117.4
122.3
127. 3
115. 4
103.1
117.8
108.7
10S.1
86.2
62.8
120.9
105.8
119.5
121.7
119.2
122.5
123.0
122. 5
119. 3
119. 7
108. 0
94.6
102.3
97.0
111.6
109.3
115.0
115.9
22. 9
132. 2
134.6
135. 2
131.2
134.6
126.6
110.5
121. 0
119.3
110.5
101.1
92. 8
88. 2
83.4
78.7
62.1
54.5
112.2
85.3
90.8
75.9
85.1
80.8
80.8
S3. 3
78.0
81.1
91.0
88.4
115.7
98.9
123.1
108.0
111.1
114.4
98.1
104.8
104.9
106.3
93.1
73.5
1921.
January
February
March
April
May
June
July
;.;
78.3
75.0
80.6
75.8
79.3
75.9
92.7 59.5
73.7 65.3
65.2 78.2
50.5 84.6
52.4 100.7
42.3 93.3
34.0
84.3
78.5
83.2
79.3
73.6
75.6
71.0
84.1
74.4
85.6
82.4
79.9
82.7
82.3
88.7
95.0
106.6
96.6
100.6
108.0
131.6 68.1
115.0 76.3
117.9 89.3
124.9 89.3
122.8 96.2
122.7 100.8
S9.5
81.6
94.0
84.7
90.9
95.2
80.7
70. 5
73.3
77.8
70.1
72.1
63.5
62.8
72.0
75.8
83.2
81.1
Comparisons should also be drawn between
the course of prices during the past year and
the course of credit, with a view to comparing fluctuations in credit and the price movements of important commodities. The peak
in prices was reached in May, 1920, and from
that time forward decline continued without
interruption, save for temporary reactions of
OCTOBER, 1921.
May 14, 1920.
Sept. 24, 1920
May 18,1921.
Sept. 21,1921
$1,508,104,000
1,220,423,000
774,869,000
495,156,000
$1,090,554,000
950,324,000
714,852,000
592,842,000
$1,675,457,000
1,447,757,000
1,295,459,000
1,402,606,000
These figures show a steady restoration of
the commercial basis of bank credit in the
United States and an elimination of the extraneous or nonliquid basis for lending which
found a place in our institutions, as in those
of all other countries, during the war in consequence of the necessities of the Government
for a quick sale of their obligations. Although it is true that the Government of the
United States continues to sell large issues of
Treasury notes and certificates, these issues
continue to be made chiefly or solely for the
purpose of meeting current maturities, so that
the total amount which is held by the community shows little change. Indeed, a reduction of public debt during the fiscal year ended
June 30, 1921, was reported, this reduction
amounting to approximately $514,000,000.
Many of the outstanding issues of bonds were
not altered in amount. The striking modification which has taken place in our debt situation during the year is found not in volume
so much as in distribution. The transference of bond holdings from commercial credit
to investment channels has greatly relieved
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
the former and has restored the representative character of bank-loan figures as an
index of commercial activity.
The fact that credit and the volume of business are closely related and that
credit volume conforms to business requirements has always
been recognized. It was upon this idea of
credit elasticity, corresponding to changes in
business demand, that the Federal Reserve
System itself was developed. Its underlying
thought was that of providing for the conversion of the most liquid and unquestionably
sound elements of credit in the community
into a reserve basis for the credit operations
of the country.. The resort to rediscounting is necessarily directly influenced by the
volume of business which gives rise to
such elements of credit, and movements in
business are therefore reflected in or paralleled by corresponding movements in the
volume of paper presented for rediscount
at reserve institutions. The movement of
Federal Reserve accounts during the past year
has probably not responded as directly to
changes in the volume of live business as would
ordinarily be the case, due to the fact that not
long after the conclusion of the armistice a
substantial element of paper representing
long-term operations found lodgment in
Federal Reserve Bank portfolios. It may be
concluded, therefore, that the great shrinkage, which has occurred in the total of Federal Reserve Bank bill holdings during the
past year, and which would in ordinary circumstances be taken as an evidence of the extent
of its credit elasticity, is only in part the reflection of changes in the volume of business, being
at least partly due to the conversion of bankheld securities into investment holdings through
the process of liquidation to which reference
has already been made. Due to the combined
working of these factors the reduction in bill
holdings of Federal Reserve Banks and in the
volume of credit extended by them to members
by way of rediscount has probably been greater
than would have occurred had it been influenced only by shrinkage in the general volume
of the country's business. In other words, the
shrinkage in credit has been greater than the
shrinkage in business for reasons already indi-
1149
cated. Changes in the volume of credit are,
therefore, a less accurate indicator of changes
in the volume of business than is ordinarily
the case.
While the changes which have'taken place
in bank investments have been
Banking elas- general and while statements
ticity.
concerning them hold good not
only of Federal Reserve but
also of member banks, such changes are obviously more striking in the Federal Reserve
System than they are elsewhere for reasons
just stated. The Federal Reserve System, on
account of the stringent requirements of law
which limit the character of paper that can be
purchased by it, should be far more responsive
to changes in the volume of commercial
credit than the rank and file of banking institutions, many of whose operations have an
investment character. This responsiveness has
always been present in the operations of the
system in some degrefe, although during the
latter part of the war with Germany it was
masked by the presence of great quantities
of Government-secured obligations in its portfolio. The experience of the past year, however, illustrates clearly the essentially elastic
quality of the system, as may be seen by the
comparison of the upper and lower levels of bill
holdings. At their highest or peak point the
bill holdings of the Federal Reserve System
were about $3,000,000,000, while at the low
point, on September 21, 1921, they may be
stated in round numbers as $1,420,000,000.
The difference between the upper and lower
levels of bill holdings was thus somewhat over
$1,500,000,000, although, as already stated, this
was not a change in pure commercial credit.
Exactly how great a volume of bank credit of
both member and nonmember banks would be
sustained by the $1,500,000,000 margin between
the high and low points in Federal Reserve
portfolios is a matter for estimate. The shrinkage in deposits shown by the report of September 2, 1921, as having taken place between
the end of June, 1920 and 1921, pointed to a
fall of over $2,000,000,000 in the deposit credits
of member banks. Making due allowance for
the changes in nonmember bank deposits both
directly and indirectly connected with changes
in Federal Reserve Bank accounts, it does not
1150
FEDERAL RESERVE BULLETIN.
seem that a shrinkage of between $2,500,000,000 and $3,500,000,000 is excessive as a measure of fluctuation of credit in the country as a
whole, such elasticity being reflected in or taking effect through changes in the outstanding
credits of Federal Reserve Banks. How accurately this reduction in bank credit reflects the
actual change in the volume of business is a
question of very great interest, but obviously
one hard to determine statistically. There has
been no material shrinkage in most departments of agriculture except in cotton and some
minor crops. Most of the reduction which has
taken place thus far has been in basic manufactures. This fact alters the percentual relationships of several of the figures already cited.
This variation in the situation as between
agriculture and manufacturing
Manufacturing credit operations in the variand agriculture. Ous sections of the country is
summarized in the statement
published in the last issue of the BULLETIN,
as follows:
OCTOBER, 1921.
May 4, 1920, and Apr. 28, 1921), or slightly more than 1.2
per cent; the loans and discounts in semiagricultural
counties declined $19,000,000. or 1.3 per cent; and the
loans and discounts of banks in nonagricultural counties
declined $827 000,000, or 5.6 per cent. The borrowings
from the Federal Reserve Banks by banks in agricultural
counties increased $128,000,000, or 56.5 per cent; borrowings by banks in semiagricultural counties remained
practically stationary; and borrowings by banks in nonagricultural counties declined $629,000,000, or 28.5 per
cent.
It further appears from the same analysis
that between the dates mentioned member
banks showed a total reduction of loan,s amounting to $882,000,000, of which $827,000,000, or
94 per cent, is shown for banks in nonagricultural counties, while the reduction in agricultural and semiagricultural counties amounted
to only about $55,000,000. A subsequent
analysis shows that during the year under
consideration the share of agriculture in the
total of outstanding loans did not diminish
but, on the contrary, increased. The relative
changes in the volume of accommodation to
manufacturing
and agricultural enterprises
Loans and discounts of banks in agricultural counties
may
be
inferred
from
the following table:
throughout the country declined $37,000,000 (between
DISTRIBUTION OF MEMBER BANK LOANS, BY CHARACTER OF COUNTIES, ON MAR. 4, 1920, AND APR. 28, 1921.
[Amounts in millions of dollars.]
Percentage of total loans.
Loans of member banks in—
Agricultural
District.
comities.
1920
Boston
New York
1921
Semiagricultural
countios.
1920
1921
Nonagricultural
1920
1921
1921
1920
counties.
Agri- Semi- Non- Agri- Semi- Noncul- agricul- agricul- cul- agricul- agricultural. tural. tural. tural. tural. tural.
Cleveland.
35.2
146.5
87.2
162.5
34.5
161.5
96.8
160.8
21.3
76.4
33.2
367.8
22.9
" 81.9
34.7
375.3
1,332.0
5 494.7
1,003.7
1,062. 2
1,295.9
5,068.6
975.9
1,163.0
2.5
2.6
7.8
10.2
1.6
1.3
3.0
23.1
95.9
96.1
89.2
66.7
2.6
3.1
8.8
9.5
1.7
1.5
3.1
22.1
95.7
95.4
88.1
68.4
Richmond..
Atlanta
Dallas.,
197.3
150.3
360.0
202.1
154.7
337.2
147.2
113.3
106.5
146.7
118 4
104.2
552.0
484.1
237.4
542.7
425.4
207.5
22.0
20.1
51.1
16.4
15.2
15.2
61.6
64.7
33.7
22.7
22.1
52.0
16.4
17.0
16.0
60.9
60.9
32.0
Chicago...
St. Louis
691.9
200.0
395.2
406.7
675.5
196.2
376.0
353.8
291.9
34.9
76.3
87.0
274.6
34.3
71.6
78.0
2,107.6
623.9
338.5
564.9
1,975. 2
550.2
297.8
489.5
22.4
23.3
48.8
38.4
9.4
4.1
9.4
8.3
68.2
72.6
41.8
53.3
23.1
25.1
50.4
38.4
9.4
4.4
9.6
8.5
67.5
70.5
40.0
53.1
Philadelphia
Minneapolis
Kansas City..
San Francisco
Total.
357.3
404.5
128.3
122.8
990.3
972.6
24.2
8.7
67.1
27.0
8.2
64.8
3,190.1
3,153.6
1,484.1
1,465.4
14,791.3
13,964.3
16.4
7.6
76.0
17.0
7.9
75.1
Several factors need to be considered in examining this analysis. One is the fact that
the dates represented in it do not show the extreme of the variations, for while the volume of
loans was probably near the peak on the date
selected in 1920, at the comparative date a
year later the lowest point of bank-credit reduction had by no means been reached. It is
also to be recalled that the unusually great
carry-over of crops from the crop year of 1920,
as well as various other exceptional circumstances, tended to make far greater demands
OCTOBEE, 1921.
FEDERAL RESERVE BULLETIN.
1151
upon the resources of banks in agricultural secA factor which has doubtless had some considerable effect in masking the
tions and through them upon the resources of
Elimination of
-, .
-, , .
•••,
banks in other parts of the country than is
"frozen credit." working of our elastic credit
usual.' I t is, of course, also obvious that inassystem, and to which occasional
much as both of the comparative dates selected
reference has already been made in preceding
are in the spring of the year the figures presections, is the elimination of "frozen credit.77
sented have no relation to seasonal variations,
This "frozen credit'7 represents in a large
but must be considered only from the standmeasure the financing of products of varipoint of long-range changes or of variations
ous kinds carried over from a preceding year,
resulting from fluctuations in the aggregate
or the obligations of individuals which have
volume of business of all kinds.
not been paid at maturity on account of
Of special interest in this connection is the the slow movement of goods into the hands of
fact that the figures, subject as they are, of purchasers. The increased activity in the
course, to the limitations already mentioned, cotton-raising States, resulting from recent
disclose a correspondence between the physical advances in the price of cotton, are now tendvolume of production and the credit situation. ing to bring about in some measure a clearance
It is in manufacturing that the greatest shrink- of the frozen credits which have been carried
age has taken place during the year 1920-21, by banks in those districts. One effect of such
while in agricultural production (with the ex- liquidation is to reduce rediscounts with Federal
ception of cotton) the product of 1920, as Reserve Banks. The outcome of this process
already seen, makes a very satisfactory com- is at times to make it appear that there has
parison with that of the preceding season. been a reduction in the total volume of credit
Shrinkage in the amount of credit required by extended when, as a matter of fact, what has
agriculture, then, could be looked for only to been done has been to settle obligations made
the extent that might be expected as the result some time ago whose payment has no immeof price decline. Even here the shrinkage is diate bearing upon the financing of current
masked by the fact that many of the bank business operations. Such elimination of
loans made on the old basis of prices were sim- frozen credit is not confined to the cottonply renewed from time to time for the purpose of raising States or, indeed, to the agricultural
carrying the retained or surplus portion of the parts of the country in general, but the process
crop until such time as it could be disposed of. of settling such indebtedness carried over from
The reduction of loans of member banks in a preceding period is going on in many branches
nonagricultural counties is shown as $827,000,- of wholesale and of retail trade as well, it would
000, and if these members represent about one- seem, as in some manufacturing sections. The
half of the banking assets of the country, the ultimate effect of it is to strengthen the banks
reduction of accommodation to manufacturers, by making their portfolios consist of self-liquias thus far indicated between the spring of 1920 dating accounts and by increasing the amount of
and that of 1921, would presumably be about their resources available for new production
$1,650,000,000. How much the falling off in and business. Not the least important phase
the total output of commodities has been is, of of the liquidation operation is that of enabling
course, a more or - less conjectural matter. the banks to curtail their dependence upon the
This falling off is by some regarded as not reserve institution for rediscounts. This reduces
greater than perhaps 25 to 30 per cent. On their expense of doing business and at the same
this basis the decline of total output would be time places them in position to discount new
much larger than the shrinkage in credit—a and live paper which they can rediscount,
fact which is explainable by the circumstance inasmuch as they have reduced their earlier
that in many lines the prices were slow to outstanding lines.
decline while, as already stated, many loans
The situation is in some measure reflected in
were continued for the purpose of carrying the increasing degree of self-support among
hold-over products at their old level of value. the several districts and their ability to supply
1152
FEDERAL RESERVE BULLETIN.
their own credit demands without calling upon
others.
Keference has already been made to the fact
„ ,.x , .
that in a low-price period a
Credit and prices.
,,
x i . i i
T,
smaller amount of bank credit
is required to carry a given volume of commodities than is the case when prices are high. In
ordinary circumstances the variation of prices is
not sufficient to make this an important factor
in the study of credit. It should further be
remembered that in ordinary circumstances
variations in prices tend to react upon the
volume of goods purchased, the amount turned
out increasing as prices fall because of the
increase in demand exerted by consumers.
The past year has been one of those unusual
periods in which a very great and continuous
fall in prices has coincided with a large shrinkage in the outturn of many kinds of goods, the
result being to bring the influence of both
factors—price reduction and product limitation—to bear upon the banks. Starting with
May, 1920, when prices and the credit volume
of the Federal Reserve System were both
nearly at their peak, it will be noted that the
growth of credit, after a recession during the
summer, continued on to near the close of 1920,
while prices, after a period of hesitation, fell,
and this fall did not halt until the summer of
1921. The turn in the amount of outstanding
accommodation made by Federal Reserve
Banks, as measured by bills held, did not take
a definite downward trend until December, 1920,
at which time prices had already fallen about
a third from the maximum. In a general way,
it may be said that there has been parallellism between the reduction of prices and the
reduction in the amount of credit extended by
the banks in general during the year 192021, even though a decline in the volume of bills
held by Federal Reserve Banks continued after
the fall of prices ceased and the slight upward
turn in prices set in in July. The facts are
illustrated in the following table which has
been prepared for the purpose of making clear
this situation:
Date.
May 14
June 11
July 16
Aug. 13
Fept.17
Oct.15
Nov.12
Dec.17
Jan 14 .
Feb.11
Mar.ll
Apr.15
May 11
June 15
July 13
Aug.17
OCTOBER, 1921.
Total loans,
discounts, and
investments
(including bills
rediscounted)
of reporting
member .
banks (000's
omitted).
1920.
$16,983,816
16,926,277
16,893,150
16,828,278
17,057,374
17,283,996
16,848,730
16,803,226
1921.
16,397,231
16,110,211
15,974,669
15,756,517
15,489,269
15,430,366
15,051,267
14,843,767
Month.
Wholesale
price
indexes
in the
United
States
(1913=
100).
1920.
May
June
July
.*....
August.
September
October
November
December
264
258
250
234
226
208
190
173
1921.
January
February
March
April....
May
June
July
August
163
154
150
143
142
139
141
143
The table shows considerable correspondence
in shifts in credit accommodation and price
changes. Expressed in percentages, however,
it is evident, as stated above, that the decrease in credit accommodation has proceeded
at a much slower pace than the drop in prices.
The explanation of this lag in the contraction
of banking credit as contrasted with price
declines is primarily due to two facts—the
first, that the volume of bank accommodation can not be instantly altered because the
volume of bank paper, even on the most
liquid basis, runs for a number of days, while
at commercial banks the average life of paper
would be still longer; the other factor in the
situation is that in many cases a sharp fall in
prices necessitates action on the part of banks
in extending the credit which they have already
granted to cover a rather longer period in order
to give the borrower opportunity to readjust
himself. Where such extensions are made there
is necessarily a postponement of the date when
the credit movement will adapt itself to that
of prices.
Credit conditions in the earlier part of the
year, as reflected in the sketch
Domestic busi
thus made of them, are also to
ness demand.
be observed in their latest form
in the usual production indexes of the month.
1153
FEDERAL, RESERVE BULLETIN.
OCTOBER, 1921.
The situation of business at the present time
has been so thoroughly canvassed as to require
but little review. Briefly stated, it would appear to point to an upturn or improvement in
the total volume of operations, although how
far such an upturn is likely to go is still
uncertain. The current production indexes are
as follows:
[000 omitted.]
August, 1920. August, 1921.
Total.
Relative.
Total.
4,917
98.7
4,004
80.4
100 177,430
;o.o
134,45S
166.4
617 200.3
608
197.4
RelaTotal. tive.
Receipts of live stock at
15 western markets
(head)
4,979
Receipts of grain at 17
interior centers (bushels)
98,579
Sight receipts of cotton
(bales)
308
Shipments of lumber reported by three associations (million feet)... 783,929
Bituminous coal production (short tons)
48,910
Anthracite coal production (short tons)
8,013
Crude petroleum production (barrels)
39,055
Pig iron production (long
tons)
3,147
Steel ingot production
(long tons)
3,000
Cotton consumption
(bales)
484
Wool consumption
(pounds)
38,055
July, 1921.
100
100
100 819,924 104.6 610,708
100
100
100
34,538
Relative.
77.9
62.1
70.6
30,394
7,050
87.9
40,964 104.9
40,328
103.2
7,196
100
954
30.3
865
27.5
100
1,138
37.9
803
26.7
100
467
96.5
410
84.7
58,261 153.0
53,076
139.4
100
During the month ending September 10 the
net inward movement of gold
Gold and silver
was $77,364,000, as compared
movements.
with a net inward movement of
$81,468,000 for the month ending August 10.
England and France combined furnished over
55 per cent, or $43,647,000, of the $78,001,000
of gold imported during the monthly period
ending September 10, other countries of Europe
furnishing over 21 per cent, and the Orient
most of the remainder. Of the gold exports,
amounting to $637,000, over 44 per cent, or
$282,000, was consigned to Canada and the
remainder to Hongkong, Mexico, and Cuba.
Net imports of gold since August 1, 1914,
were $1,384,639,000, as may be seen from the
following exhibit:
[In thousands of dollars.]
Aug. 1, 1914 to Dec. 31, 1918
Jan. 1 to Dec. 31, 1919
Jan. 1 to Dec. 31, 1920
Jan. 1 to Sept. 10,1921
Total
1
Excess of
imports.
Imports.
Exports.
1,776,616
76,534
417,068
521,264
705,210
36S, 185
322,091
11,264
1,071,406
1291,651
94,977
509,907
2,791,482
1,406,843
1,384,639
Excess of exports.
Since the beginning of the present year net
gold imports totaled $509,907,000. The largest
gains are shown through imports from the
following countries: England, $149,387,000;
France, $145,054,000; Sweden, $55,188,000.
Gold exports during the present year were consigned chiefly to the following destinations:
Mexico, $5,199,000; Sweden, $2,643,000; Canada, $1,629,000; Hongkong, $1,550,000.
During the month ending September 10 the
net inward movement of silver was $1,771,000,
as compared with a net inward movement of
$968,000 for the month ending August 10.
Germany furnished over one-half, or $3,685,000,
of the $7,239,000 of silver imported during the
monthly period ending September 10, the
remainder coming principally from Mexico,
Canada, and Peru. Silver exports, amounting
to $5,468,000, were consigned principally to
China, British India, and other countries of
the Orient.
Net exports of silver since August 1, 1914,
were $445,680,000, as may be seen from the
following exhibit:
[In thousands of dollars.]
Aug. 1, 1914, to Dec. 31, 1918
Jan. 1 to Dec. 31, 1919
Jan. 1 to Dec. 31, 1920
Jan. 1 to Sept. 10, 1921
Total
1
Excess of
exports.
Imports.
Exports.
203,592
89,410
88,060
41,774
483,353
239,021
113,616
32,526
297,761
149,611
25,556
i 9,248
422,836
868,516
445,680
Excess of imports.
Little change in the general credit situation
appears to have taken place
.... a
during the four weeks between
August 17 and September 14.
Aggregate loans and discounts of the reporting
banks fluctuated within moderate limits. The
September 14 total of $11,563,000,000 was only
$22,000,000 larger than the total reported four
weeks previous, a reduction of $21,000,000 in
" Government paper" being offset by an increase of $43,000,000 in the amount of other
loans outstanding. A reduction from $3,303,000,000 to $3,238,000,000 in the investment
block is due chiefly to further liquidation of
Treasury certificates during the latter part of
August, and to a much smaller extent to liquidation of other Government obligations and of
1154
FEDERAL RESERVE BULLETIN.
corporate securities. Accumulation of funds
to provide for September 15 tax payments
apparently accounts in part for the gradual
increase in demand deposits of the reporting
banks; also for the large reduction in borrowings from the Federal Reserve Banks indicated
in the September 14 statement.
The following table throws some light upon
the course of member bank credit operations
during the four weeks ending September 14:
OCTOBER, 1921.
the peak figure of $3,422,000,000 shown for
October 15 of last year. Federal Reserve note
circulation, notwithstanding the large note
issues before the Labor Day holiday period,
shows a further reduction of $11,200,000, the
September 21 total of $2,474,700,000 being
about $930,000,000 below the peak attained
on December 23 of last year. The banks also
report a reduction of $9,200,000 in their net
liabilities on Federal Reserve bank notes in
circulation. Rediscounts of the Richmond,
REPORTING MEMBER BANKS.
Atlanta,
Minneapolis, and Dallas banks with
[In millions of dollars.]
other Federal Reserve Banks show but little
change, and at the end of the report period
Loans
Redisof
Number and dis- counts Ratio
Net
totaled $66,500,000, or slightly less than four
counts and bills accomof redemand
payable modaporting
and
deposits.
tion
Date.
weeks before.
banks.
invest-1 with F.RJ (3+2).
Bank.
ments.
The Federal Reserve Banks report a further
gain of $92,000,000 in gold and of $4,900,000
in other reserve cash. It is this gain largely
Aug. 17..
812
14,844
979
Aug. 24.
812
14,784
967
6.5
which is responsible for the further rise of the
Aug. 31..
812
14,762
956
6.5
Sept.7..
810
14,730
6.7
9,982
980
6.1
Sept. 14.
810
14,801
908
10,131 reserve ratio from 66.5 to 68.7 per cent. This
rise was continuous, except for the week ending
1
Including rediscounts with F. R. Banks.
September 7, when a temporary increase in
Federal Eeserve Bank figures, which cover note and deposit liabilities caused a decline in
the four-week period between August 24 and the ratio from 66.8 to 66.2 per cent.
In the following exhibit are shown the prinSeptember 21, indicate further reduction of
$46,600,000 in the reserve banks' holdings of cipal changes in the condition of Federal
paper secured by Government obligations, of Reserve Banks between August 24 and Sep$61,500,000 in their holdings of other discounts, tember 21:
and of $1,700,000 in acceptances, or a total
FEDERAL RESERVE BANKS.
reduction in bill holdings of nearly $110,000,000
fin millions of dollars.]
for the four weeks under review. Pittman
Bills discounted.
certificates show a gradual decline of $17,F. R.
000,000, while other Treasury certificates, innotes in Reserv3
Secured
Cash
reTotal
deby
U.S.
actual
Date.
cluding those held under repurchase agreeserves. Governposits. circula- ratio.
All
ment
other.
tion.
ments, show an increase of $5,800,000. Holdobligations.
ings of other United States securities, including
the newly issued Treasury notes, likewise show
Aug. 24
542
954
2,766
1,674
2,486
66.5
2,788
545
947
1,691
2,481
an increase for the period of about $4,000,000. Aug.31
66.8
Sept.7
2,803
1,718
539
969
2,518
66.2
14
2,835
1,706
2,492
504
924
67.5
Total earning assets on September 21 stood Sept.
Sept. 21
2,863
1,692.
2,475
495
892
68.7
at $1,652,300,000, or about 52 per cent below
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
1155
BUSINESS, INDUSTRY, AND FINANCE, SEPTEMBER, 1920.
Further decided improvement in the credit situation has been the noteworthy feature of
business during the month of September. In the cotton regions liquidation of credit has been
rendered possible in consequence of the marked advance in the price of cotton, which has carried practically all contracts above 20 cents a pound. At the same time improvement in wholesale and retail trade is expected as a result of the increase in the ability of the farmer
to settle his accounts both with banks and with dealers. The greater abundance of funds in
the cotton-raising districts is reported as having been reflected in larger wholesale trade. The
effects of liquidation expected from the advance in the price of cotton have not as yet had time
to appear in the condition statements of Federal Reserve Banks. On the other hand, the advance
in prices not only of cotton but of other agricultural products has had certain indirect results.
The textile industry has not yet bought freely of cotton at the new price level which has been
established, but such mills as possessed a stock of low-priced cotton have attracted a considerable volume of orders. In the grain-growing districts the output has continued to move
steadily to distributing points and has also gone abroad in considerable amounts. This grain
movement has been practically the heaviest on record and there has also been a heavy movement of live stock.
While attention has been largely concentrated on the agricultural side of business development during the month, manufacturing has also continued to show a wholesome improvement
in many lines. The advance in the iron and steel trade, first noted in August, has been sustained during the month of September in certain lines, notably in pig iron and light products,
such as wire and sheets, in which price advances have occurred. Although orders fell off
in August, an increase has occurred since that time, and at the same time more men
have been employed. In this connection should also be noted the improvement in the
railway industry. The net earnings of Class I railways for July were about $70,000,000,
and on many lines the rate of earnings is near the level taken as a standard in the transportation act. Textile manufacturing has been well sustained during the month, and the boot and
shoe industry has been notably active in districts Nos. 1, 7, and 8. There is still, however,
hesitancy on the part of distributors to place forward orders, although a large seasonal increase
in certain lines of wholesale trade, coupled with replacement orders, have resulted in advances.
Prices continued to advance during August. The index compiled by the Federal Reserve
Board for international comparisons registered an increase of 2 points over the July figure,
while the trend during September also appears to have been upward. Price declines in
particular lines of business, such as live stock, are due to local marketing conditions.
Employment, on the other hand, has increased only slightly, although the situation is better
than at the end of August. The end of the harvesting and crop-moving season may tend to
increase the number of unemployed, but such tendency is likely to be offset by the growth in
demand on the part of manufacturing industries. Railroads have begun to increase the number
of their employees to some extent. This is especially noteworthy in the Far West and is
emphasized in the reports received from district No. 12 (San Francisco), where it holds true
also for general public-utility undertakings. The fact that building contracts have reached a
record figure for this year promises larger employment in that direction during the autumn.
Financially the month has been notable for the decided fall in German exchange, the
mark at one time going below nine-tenths of 1 cent. Easier money conditions have grown out
of the gradual liquidation in the East and South, and two Federal Reserve Banks have reduced
their discount rate to 5 per cent. The shrinkage of bills held has been a natural outgrowth of
the credit situation. Call money, as well as commercial paper rates, have tended lower.
Taken all in all, the month has been in the main a period of distinct encouragement and
gives promise of better conditions as the autumn and winter advance.
1156
FEDERAL RESERVE B U L L E T I N .
AGRICULTURE.
The composite condition of all crops on September 1 was 92.9 per cent of their average
condition on that date during the last 10
years, as compared with a composite condition
of 93 per cent on August 1. There was a serious
deterioration in the crops of cotton and oats
during August, but this was largely counterbalanced by a marked improvement in the
condition of the corn and tobacco crops. The
production of corn forecasted on September 1
amounted to 3,186,000,000 bushels, which is
154,000,000 bushels greater than the forecast
of August 1 and 316,000,000 bushels greater
than the average production for the last six
years. The corn crop in district No. 9 (Minneapolis) is about 6 per cent greater than that of
1920, and is the largest on record. In district
No. 10 (Kansas City) there was also a considerable improvement in the condition of corn
during August, but hot weather and lack of
moisture caused considerable damage in Nebraska and Oklahoma. The indicated production of wheat was 754,000,000 bushels on September 1, as compared with a forecast of
757,000,000 bushels on August 1, and an average production of 824,000,000 bushels during
the last six years. However, district No. 9
(Minneapolis) states that the spring wheat crop
is superior to any crop in a generation from a
milling and baking standpoint, and estimates
that the gluten content will average 2 per cent
higher than that of the 1920 crop. The whitepotato crop improved somewhat during August,
but the estimated production on September 1
was only 323,000,000 bushels, in comparison
with an average production of 380,000,000
bushels during the previous six years. District
No. 6 (Atlanta) reports that the condition of
the cane-sugar crop in Louisiana on September
1 indicated a production of 222,527 tons of
sugar, as compared with a production of 169,127
tons in 1920.
OCTOBER, 1921.
hot weather and drought, and has also suffered during September from the continued
activities of the boll weevil, the boll worm,
and the army worm. District No. 8 (St.
Louis) reports that the depredations of the
boll weevil continued unchecked during September, and that the crop has continued to
deteriorate at quite as disastrous a pace as in
August. The adverse news concerning the
condition of the cotton crop resulted in an
increase in the price of cotton at New Orleans
from 12 cents per pound on August 16, to 19
cents per pound on September 16. Cotton
growers in general seem to consider that this
appreciation in cotton values more than compensates them for the reduction in the volume
of their crop.
TOBACCO.
As a result of favorable weather conditions
during August, the average condition of the
tobacco crop increased from 67 per cent on
August 1 to 71 per cent on September 1, and
the estimated production on the latter date
was 948,324,000 pounds. The increase was
found in both .the cigar and manufactured and
export types. The North Carolina and Virginia crops are far below last year, the second
being estimated as the smallest since 1907, and
on account of unfavorable weather much of the
crop is of poor grade. Harvesting was in
progress in general during September and has
been completed in some sections. The South
Carolina markets have closed, the crop having
been short and on the whole of unsatisfactory
quality. Good tobacco brought satisfactory
prices, but low grades were difficult to sell at
any price. The eastern North Carolina markets opened early in September and repeated
the situation found earlier in South Carolina.
The demand for cigars and cigarettes in
district No. 3 (Philadelphia) apparently shows
further improvement. Cigar manufacturers
in general report increased sales since June.
COTTON.
Eight and 10 cent cigars continue to be the
best sellers. Operations are still less than at
Picking and ginning of cotton is now in this time last year but they are steadily inprogress throughout the cotton belt. Since creasing.
the issuance of the condition report of August
FRUIT.
25, the cotton crop in district No. 11 (Dallas)
has suffered serious damage from a tropical
There was little change in the condition of
storm which swept 20 counties of Texas. the deciduous and citrus fruit crops during
District No. 6 (Atlanta) states that boll wee- August. The deciduous fruit crops this year
vils have continued to be very active through- are the smallest in a generation. On Septemout Georgia, and, as a result, the crop in 32 ber 1 the production of apples was estimated
counties is estimated to be less than 30 per at 107,000,000 bushels, as compared with a
cent of normal. The Alabama crop, on the forecast of 109,000,000 bushels on August 1,
other hand, showed some improvement dur- and an average production of 193,000,000
ing the past month. Reports from district during the last six years. This is the smallest
No. 10 (Kansas City) indicate that the Okla- apple crop since 1890. The forecasted prohoma crop has been seriously damaged by duction of peaches was 33,000,000 bushels, a
OCTOBER, 1921.
1157
FEDEKAL KESERVE BULLETIN.
decline of 13,100,000 bushels from the average
production of the years 1915 to 1920, inclusive. It is estimated that the pear crop will
amount to 9,475,000 bushels, as compared
with 17,279,000 bushels in 1920. The condition of the watermelon crop is the best of
any crop planted this year, and is 121.7 per
cent of its average condition during the last
10 years. District No. 6 (Atlanta) reports
that there have been large yields of watermelons in Mississippi and Tennessee. The
Florida crop of citrus fruit is estimated to
amount to 13,600,000 boxes, as compared
with 13,200,000 boxes in 1920. The yield of
grapefruit in that State will be exceptionally
large, whilp the crops of limes and tangerines
will be below normal.
GRAIN MOVEMENTS.
Receipts of grain at primary markets were
greater in August than in July and exceeded
the receipts in any other month on record.
This was due mainly to the large receipts of
winter and spring wheat* Receipts of wheat
at Minneapolis and Duluth during August
totaled 21,911,320 bushels, as compared with
11,261,947 bushels in July and 9,297,800
bushels in August, 1920. Wheat receipts at
the four leading markets of district No. 10
(Kansas City) amounted to 29,955,300 bushels
in August, as compared with 32,789,400
bushels in July and 15,942,000 bushels in
August, 1920. Receipts of corn and oats also
showed large increases in August. At Chicago, 16,810,000 bushels of corn and 16,722,000
bushels of oats were received during August,
as compared with 8,954,000 bushels of corn
and 10,722,000 bushels of oats in July. The
August movement of corn to the four leading
markets of district No. 10 (Kansas City)
was 96.3 per cent greater than that of a
year ago, while the volume of oats marketed
was 36.8 per cent larger than in August, 1920.
Stocks of grain at interior centers also increased, except in the case of corn. Terminal elevators at Minneapolis and Duluth
reported that stocks of grain and flax amounted
to 31,056,927 bushels on August 31, 1921,
an increase of 47 per cent over the stocks on
July 30, 1921, and an increase of about 670
per cent over the stocks reported on August
31, 1920. Stocks of oats in these elevators
have shown a particularly large increase and
amounted to 21,567,259 bushels on August
31, as compared with 15,919,084 bushels on
July 30 and 1,228,883 bushels on August 31,
1920.
er cent of the total production of district
\o. 9 (Minneapolis) during the four weeks
Sending
August 27 was 2,289,335 barrels, an
increase of 22 per cent over the output of
1,871,265 barrels during the four weeks ending
July 30. Reporting mills in district No. 10
(Kansas City) show an output of 2,482,618
barrels during August, which was 31 per cent
greater than the July output of 1,902,527 barrels. Average production in district No. 12
(San Francisco) was 662,190 barrels for 70
millers, as compared with 598,615 barrels for
72 millers in July. In considering these figures,
it should be remembered, however, that for
the United States as a whole, average August
production for the seven years 1914-1920, inclusive, was 32.8 per cent in excess of July production. The output during the present year
is, however, 29 per cent in excess of production
during August, 1920, in district No. 9 (Minneapolis) and 72 per cent greater in district No.
10 (Kansas City). Flour shipments from Minneapolis and Duluth during August were 24
per cent greater than during July and 14 per
cent greater than during August, 1920, while
August shipments from Kansas City were 29
per cent greater than during July and 61 per
cent greater than in August, 1920. The milling
situation in the Southwest has very materially
improved, while "the
unanimous comment of
12 reporting mills77 in district No. 8 (St. Louis)
"is that business during the past two months
has undergone a marked change for the better."
Export inquiry holds up excellently in that
district, and the demand for domestic consumption, especially from the South, has been
better than at any time in more than a year.
A moderate export movement of clears is reported in district No. 10 (Kansas City), and a
fairly heavy demand from nearly all sections
of this country. Wheat flour prices were lower
at the opening of September than they were a
month earlier, but subsequently increased
again.
LIVE STOCK.
Live stock on farms and ranges in general
continues in good condition, although some
sections in district No. 11 (Dallas) have been
adversely affected by drought and heat.
Movement to market has been very heavy, and
efforts to hold it in check were not wholly satisfactory. Receipts of cattle and calves at 15
western markets during August were 1,418,237
head, corresponding to an index number of
141, as compared with 940,173 head during
July, corresponding to an index number of 93.
Receipts of sheep increased from 1,035,674
FLOUR.
head during July to 1,568,584 head during
Production of flour has been maintained at August. The respective index numbers are 76
a high rate. The output of mills producing 75 and 115. Receipts of hogs, however, decreased
1158
FEDERAL RESERVE BULLETIN".
OCTOBER, 1921.
scale of operations in Illinois and Indiana has
accordingly increased somewhat. Operating
conditions in district No. 10 (Kansas City)
show no material improvement, and during
September there has been a further slowing
down of operations. Although spot prices of
certain grades have fluctuated considerably,
the average price remains practically unchanged. Future quotations, states district
No. 3 (Philadelphia), are much higher, but consumers show little interest in the contract
market.
During the past few weeks the consumer has
displayed more interest in purchasing anthracite coal. Demand for the most popular size,
stove coal, has increased to such an extent in
district No. 3 (Philadelphia) that dealers are
having difficulty in filling orders promptly.
Orders for other sizes have also increased.
August production increased to 7,196,000 tons,
as compared with 7,050,000 tons in July. The
respective index numbers are 97 and 95. The
larger companies made the usual 10 cents per
ton advance on mine prices on September 1.
Independent operators, many of whom underbid the companies during the slack summer
period, have again advanced quotations, which
are now 10 to 40 cents per ton higher for prepared sizes than the company levels. The
continued sluggishness of the small sizes,
however, combined with lack of storage facilities, has forced them to dispose of these
grades at prices considerable lower than those
of the companies. Some of the independent
mines which were closed on account of the
slack demand during the early part of August,
have lately resumed operations. The output
of beehive coke, although showing an appreciable increase, is still less than 15 per cent of
normal, but the output of by-product coke is
from 40 to 50 per cent of normal. Producers'
COAL.
stocks have decreased as a result of renewed
demands from iron and steel manufacturers,
Production of bituminous coal increased some- and spot prices in district No. 3 (Philadelphia)
what during August, but was still far under the have stiffened materially.
normal figure for that month. It was 34,538,000 tons, corresponding to an index number of
PETROLEUM.
93, as compared with 30,394,000 tons for July,
corresponding to an index number of 82.
The decline in petroleum production, which
Compared with the average for the eight years commenced in July, continued at a somewhat
preceding, 1921 production is 62,000,000 tons accelerated rate during August. This was
in arrears and is steadily falling still further largely due to a marked curtailment in drilling
behind. Purchasing has increased somewhat operations. Demand for both crude and rein district No. 3 (Philadelphia), but domestic fined oils showed some improvement during
buying continues to be almost entirely for spot August, but prices of most refined petroleum
coal. Export demand is reported very small. products continued to decline on account of
Retailers' yards in districts No. 5 (Richmond) the large stocks on hand. Prices of fuel oil,
and No. 6 (Atlanta) are well stocked, and con- however, showed a slight increase during the
sumers have been slow in placing orders. An early part of September.
increase in the demand for domestic sizes in
District No. 10 (Kansas City) reports that
district No. 7 (Chicago) is reported, and the development operations have been curtailed in
from 2,021,268 head during July, corresponding
to an index number of 92, to 1,919,514 head
during August, corresponding to an index
number of 87. The movement of cattle and
calves and of sheep was, however, smaller than
a year ago, although that of hogs was larger.
August, 1920, receipts of cattle and calves
were 1,451,985 head, of hogs 1,784,209 head,
and of sheep 1,687,787 head, while the respective index numbers were 144, 81, and 124. A
feature of the situation, states district No. 10
(Kansas City), is the dearth of good corn-fed
cattle, and the greater volume of receipts have
been light grass-fed stock. There is, however,
a shortage of cattle in the* West, and the delay
in the feeder movement this year has resulted
in a large number of good western cattle going
to slaughter instead of back to the farms. Increase of the feeder movement in August has
been noted, and feeder shipments of cattle and
calves from 34 markets increased from 120,429
head in July to 353,619 head in August, while
shipments of sheep increased correspondingly
from 138,414 head to 367,042 head.
As a result of the heavy movement, cattle
prices in general fell, and at Chicago even
affected some of the corn-fed grades of cattle.
Similar changes were noted in the case of hogs
and sheep. Thirteen reporting packers in
district No. 7 (Chicago) show decreases of 13.5
per cent in dollar sales in August as compared
with July, and 35.2 per cent as compared with
August, 1920, due in part to the decline in
prices. A gradual improvement in the demand for fresh meats was in evidence in that
district from the middle of August to the
middle of September, but some surplus found
its way into the freezers. Wholesale prices,
however, in general declined. Stocks of fresh
and cured meats declined somewhat during
August.
recent months to a point where fewer wells are
now being drilled than at any other time in
the last three years. Only 480 wells, with an
initial daily production of 69,787 barrels, were
completed in August, as compared with 640
wells, with an initial daily production of 77,997
barrels, in July. The total output of crude
petroleum in Kansas and Oklahoma amounted
to about 13,000,000 barrels in August, as compared with 13,598,000 barrels in July. Production of crude oil in district No. 11 (Dallas)
totaled 10,538,893 barrels during August, a
decline of 127,453 in comparison with the July
output. In this district only 223 new wells,
with an initial daily production of 27,302
barrels, were completed in August, as compared with 251 wells, with an initial flow of
60,810 barrels, in July. Average daily California production declined from 331,252 barrels
in July to 323,676 barrels in August, but consumption decreased even more, and stored
stocks at the end of the month therefore increased to 33,829,725 barrels. Eighty-three
new wells were completed, with an initial daily
new production of 20,895 barrels, as compared
with 76 new wells, producing 19,675 barrels,
in July.
IRON AND STEEL.
After a continuous decline since October,
1920, pig-iron production showed an increase
during August. The output during that month
amounted to 954,193 tons, as compared with
864,555 tons during July. The respective index numbers were 41 and 37. The number of
furnaces in blast remained unchanged. Steelingot production showed a somewhat greater
increase, from 803,376 tons to 1,138,071 tons.
The respective index numbers were 35 and 49.
This increase in output was not, however, accompanied by a similar increase in orders for
advanced delivery, as the unfilled orders of the
United States Steel Corporation declined from
4,830,324 tons at the close of July, corresponding to an index number of 92, to 4,531,926 tons
at the close of August, corresponding to an
index number of 86.
There is now a generally stronger tone in the
industry. The improvement which made its
appearance in August has become somewhat
more marked. This is noticeable in the case
both of pig iron and of certain finished products.
The demand for pig iron has broadened to
some extent, and more interest is displayed in
contracting for future delivery. Total sales in
August were the best of the year by a substantial margin and shipments improved in an even
greater proportion. Prices hardened considerably during the latter part of August after
having dropped to low levels earlier in the
1159
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
mouth, and some increases are reported during
the present month. Whereas the gain in August pig-iron production was due principally to
the operations of steel works stacks, several
merchant furnaces have been blown in since
the 1st of September. The situation with respect to finished steel products, however, is
still uneven and conditions are unsettled.
Manufacturers of certain of the lighter products, notably wire and sheets, have booked
considerable tonnage and have advanced prices.
In other lines, however, particularly shapes
and bars, further price reductions have been
made, and buyers in these lines still are unwilling to place orders for future delivery.
AUTOMOBILES.
August shipments by automobile manufacturers showed some increase over the July
figures. Carload shipments were 20,350 carloads, as compared with 19,470 in July and
23,386 in August, 1920. Driveaways, however,
decreased somewhat and were about one-half
those in August, 1920, and the same is true
of boat shipments. Keen competition continues among manufacturers and further cuts
have been made on certain cars. In spite of
those reductions, reports from representative
manufacturers, it is stated from district No.
7 (Chicago), seem to indicate that any increases in sales by individual manufacturers
have been at the expense of other manufacturers, rather than a result of the development of new demand. The condition of
truck manufacturers has been less favorable
than that of manufacturers of passenger cars.
Immediate orders, it is stated from district
No. 4 (Cleveland), are at low ebb, but inquiries have recently been increasing.
NONFERROUS METALS.
There was a slight improvement in the demand for nonferrous metals in the early part
of September. The price of copper (New
York, net refinery) was 11J cents per pound
on September 14, as compared with l l f cents
per pound on September 1, while the price of
lead at New York increased from 4.4 cents per
pound on September 1 to 4.6 cents per pound
on September 14. The demand for zinc continued to be very light, and the price at St.
Louis remained practically unchanged during the last month. Copper production in
August amounted to 20,019,000 pounds, in
comparison with a production of 16,390,000
pounds in July. There was a further curtailment of zinc production, from 15,495 tons in
July to 14,621 tons in August. Shipments
of zinc, however, showed a considerable increase in August, which resulted in reducing
1160
FEDERAL RESERVE BULLETIN.
the stocks on hand from 92,408 tons on August
1 to 86,549 tons on August 31. This stock
of zinc is not regarded as excessive,
as it
represents no more than three months7 normal
consumption. Only about 3,000 miners were
working underground in zinc and lead mines
of district No. 10 (Kansas City) at the end of
August, as compared with 12,000 to 15,000
during the years 1915 to 1917, inclusive. The
demand for both zinc and lead ores from that
district continued to be restricted, but there
was an advance of $2.50 per ton in the price
of lead ore during August.
OCTOBER, 1921.
the date of writing that mills were running
"on approximately full time" and that many
of them had sold out their products for several
months ahead. In tnis district, too, some of
the textile mills, since the rise in the price of
cotton, have withdrawn goods not previously
contracted for, and it remains to be seen how
much buying will be done when these goods
are offered at an advance in price. The
amount of raw cotton consumed during August
amounted to 467,103 bales, as compared with
410,120 bales in July. The total was slightlv
below consumption of August, 1920, which
amounted to 483,560 bales.
COTTON TEXTILES.
The unexpectedly rapid advance in the price
of raw cotton has introduced such an element
of uncertainty into all branches of the cotton
textile industry that it has been necessary for
many interests to "mark time" and to await
developments. There appears to be a great
difference of opinion concerning the future
changes in the market for raw cotton, and
consequently there is a general unwillingness
to enter into contracts for future delivery
based on present prices of cotton. As many
mills have been carrying stocks which are below normal, they are not in a position to enter
into new contracts unless account is taken of
recent price increases. Distributors, on the
other hand, fear that attempts to pass on price
advances will cause undue restriction of demand on the part of the consuming public.
As a result, both distributors and manufacturers have in many instances withdrawn
lines until a greater measure of stability in the
cotton market can be counted upon to afford
a basis for safe calculation. Yarn prices have
advanced with the increase in the price of the
raw material and have been especially heavy in
long-staple yarns. In the yarn market, likewise, there are practically no future contracts
being entered into. In district No. 6 (Atlanta)
reports from 34 representative yarn mills
showed a decided advance in production during the month of August of 14.4 per cent, as
measured in pounds, while totals were only 8.7
per cent below the figures for a year ago.
Orders at the end of August were 56.4 per cent
above those on hand at tne end of the preceding
month, while shipments during the month
advanced 36.9 per cent. Thirty-three representative cotton-cloth mills in the district
were producing a yardage 7.2 per cent greater
in August than in July, but the figures were
39.8 per cent below those for August, 1920.
Orders on hand at the end of August were 7.8
per cent above those for the end of July. In
district No. 5 (Richmond) it was reported at
FINISHERS OF COTTON FABRICS.
Reports received from 34 members of the
National Association of Finishers of Cotton
Fabrics showed a large increase in the total
gray yardage of finishing orders received during
the month. The output rose from 82,734,438
yards to 101,741,412 yards. The total finished yards billed during August amounted to
95,915,235, as compared with 85,233,724 during July. The total average percentage of
capacity operated during the month of August
rose to 71 irom an average of 62 in July. The
increase in the average work ahead at the end
of the month was slight, amounting to 9.6
days as compared with 8.9 at the end of July.
WOOLEN TEXTILES.
The woolen industry in New England continues to maintain a high degree of activity,
and woolen and worsted mills are operating
at about 80 per cent of capacity at the present
time. The monthly consumption of wool,
which was only slightly above 12,000,000
pounds last December (grease equivalent basis),
nas risen to about 35,000,000 pounds in the
New England section, while wool consumption
for the country as a whole amounted to
58,261,000 pouncls for August, as compared with
53,076,000 pounds for July. District No. 1
(Boston) reports that the Boston wool market
"continued to be moderately active during
September 77and prices paid for finer grades
were firm. In district No. 3 (Philadelphia)
carpet wools, long inactive because of the
strike of carpet and rug weavers, are now in
demand. There has been some shift of demand from woolen to worsted goods, and consequently production of the latter has increased,
while there has been a slight falling off in the
production of woolens. Duplicate orders for
the heavy weight fall season of 1921 and
buying for the spring of 1922 is at the present
time much less active than it was earlier in
the present season.
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
The special inquiry into the clothing industry, which is made each month by district
No. 7 (Chicago), indicates that there was not
much change in general conditions during
the month of August. The number of suits
made by reporting wholesale clothiers increased
somewhat during August as compared with
July and was about equal to the output during
August, 1920, except in the case of one concern, which showed a large increase. The 13
reporting firms representing tailors-to-the-trade
showed an output for August substantially the
same as for July, although the number of
suits made during the month was 42.8 per cent
below the totals for August, 1920. Replies to
questionnaires sent to 23 leading clothing firms
by district No. 8 (St. Louis) indicated a fairly
steady improvement in demand. The reporting establishments in that district were
stated to be sold up for the next two months,
with excellent inquiry for fall and winter
goods and marked improvement in orders
from the South for the fall.
SILK.
The silk industry in the Paterson and North
Hudson section showed lessened activity during
the two weeks ending September 12 as compared with the preceding period of two weeks.
In the North Hudson section 2,848 looms
were producing out of a total of 4,670, which
was a slight increase over 7the number reported
for the previous two weeks period of 2,812; but
the percentage of loom hours to the total possible was only 47.1 per cent, as compared with
60.3 per cent during the preceding period.
Only 4,002 out of a total of 15,000 looms were
producing in Paterson, a drop from 4,447 for
the preceding two weeks. The percentage of
loom hours also fell from 27.5 per cent to 22.9
per cent. District No. 3 (Philadelphia) reports
a falling off in demand for broad silk and silk
ribbons. Mills in the district state that production is still curtailed and they are operating
at about 70 to 85 per cent of capacity. Even
so, some firms77 say that stocks are u"gradually
accumulating.
It is said that conditions
prevailing in the silk-goods trade are reflected
m the thrown-silk market. Operations have
been reduced by many throwsters to only 50
per cent of capacity. Prices remain at about
the same level as last month, but they are considerably lower than were those of 192O.77
There is little demand for raw silk at the present
time, but both consumption and imports
showed a marked increase as compared with
August a year ago. In August ol last year
imports of raw silk amounted to 16,106 bales
and consumption to 17,241 bales, while this
1161
year imports totaled 33,823 bales and consumption 32,790 bales.
HOSIERY AND UNDERWEAR.
Business in knit-goods lines and in hosiery
has felt seriously the effect of the rise in the
price of cotton yarns. District No. 3 (Philadelphia) states that activity in cotton and mercerized hosiery has come almost to a standstill,
while conditions in the underwear trade
"are such as to force the majority of manufacturers into the position of mere onlookers
waiting for a stabilization in prices.77 The
business in silk hosiery continues to be good
and mills making full-fashioned hosiery in
district No. 3 are running at full capacity.
During August 25 firms selling to the wholesale
trade stated that there was an increase of 14.2
per cent in product manufactured as compared with July and of 31.7 per cent as compared with August, 1920. Orders booked
during August were, however, 31.9 per cent
below those for July, although 56.1 per cent
in excess of those received during August,
1920. Unfilled orders at the end of August
were 17.1 per cent less than at the end of July,
but 24.4 per cent above those of August 1920.
In the case of firms selling to the retail trade
the product manufactured declined slightly
during August by 0.4 per cent as compared
with July; orders booked were 38.4 per cent
less during August, unfilled orders on hand
declined 28.9 per cent and were 26.1 per
cent below those for the end of August, 1920.
The reports received from 41 members of the
Knit Goods Manufacturers of America engaged
in producing underwear showed substantial
improvement in output during August as
compared with July. Mills producing 255,829
dozens in July had an output of 279,600
dozens in August, a gain of 9 per cent. Unfilled orders the 1st of July amounted to
372,514 dozens and had risen to 395,902
dozens on August 1, or 6 per cent. New
orders rose from 238,258 dozens in July to
444,243 dozens in August, or 9 per cent. Shipments also increased from 233,972 in July to
360,787 in August, or 5 per cent. Production
reports from 34 representative mills comparing
July with August indicate the following substantial gain: Unfilled orders, 23,888 dozens;
new orders, 205,985 dozens; shipments, 126,815
dozens; production, 23,771 dozens. Five mills
still remain closed, but those in operation
show an increase in production of more than
20 per cent over July. Confidence is being
restored and as a result production and distribution are gaining slowly but steadily.
Both summer and winter lines rose in equal
1162
FEDERAL
OCTOBER, i92i.
proportion during this month, indicating a
LUMBER.
return to normal seasonal channels of disReports from the several lumber districts
tribution. Prices were firmer, business was
broader, and it is believed the period of de- indicate improving conditions and a more
optimistic attitude generally in the lumber
flation is over for the present.
trade. District No. 12 (San Francisco) reports that there has been some improvement
SHOES AND LEATHER.
in the district for upper grades of Douglas fir
Prices of green hides registered little change during September; spot prices of California
during the first three weeks of September. redwood, white pine, and sugar pine have
Lambskins have increased somewhat in price, remained stationary or receded. Four lumber
while calfskins have shown a slight decline. associations in that district report a cut of
Production of green cattle hides increased 356,233,000 feet for the four weeks ending
during August, but showed a moderate decline August 27, which was 81 per cent greater than
in the early part of September. District No. during the four weeks ending July 30. New
7 (Chicago) reports that trading in packer hides orders increased from 263;416,000 feet in July
has been very active at Chicago, whereas the to 331,316,000 feet in August. About 75 per
market for country hides has been very quiet. cent of the lumber mills capacity in the Pacific
Tanneries in district No. 7 (Chicago) report an Northwest and 60 per cent in the inland
increase in volume of sales of leather during empire is reported as being in operation, while
the first two weeks of September. Operations logging operations are only 40 per cent of
of upper leather tanneries on September 10 nofmai. In district No. 11 (Dallas) 36 pine
were between 75 and 80 per cent of normal. mills report an improvement in demand in
District No. 3 (Philadelphia) states that upper August. Orders received by these mills durleathers were less active in September than ing the month were 88 per cent of the normal
August. Sole leather, however, has been in monthly production, while orders booked
good demand, and there has been a substantial during July represented but 66 per cent of the
increase in orders from the repair trade. normal monthly production. Orders received
There has been a slight improvement in sales from railways for car repair materials account
of belting leather, but no price changes have for the greater proportion of this increase. In
been reported. The activity of the boot and district No 6 (Atlanta) 130 mills, members of the
shoe industry continued to increase during Southern Pine Association, report orders received
August for tne ninth successive month. The during August to be 5.7 per cent greater than
August production of nine leading shoe manu- the normal production of these mills. Actual
facturers in district No. 1 (Boston) was 13-4 production was 67,766,786 feet, approximately
per cent greater than in July, while shipments 24.3 per cent less than normal. The shipments
increased 27.5 per cent. Unfilled orders de- showed an increase each week and totaled
clined somewhat during August, but the vol- 78,454,426 feet for the month, which is but
ume of new orders was larger than in August, 9.7 per cent below normal production. This dis1920. Forty-four shoe firms in district No. 3 trict reports the reopening of some mills which
(Philadelphia) report for August that pro- had been closed during July. Present prices
duction increased 26.7 per cent, shipments 81.4 are much lower than those which prevailed
per cent, and new orders 31 per cent over a year ago, but the market is reported to be
figures for July. "Orders on hand, however, considerably stronger than it was during July.
decreased 12.2 per cent during the month. District No. 8 (St. Louis) reports an increasing
Shipments by 11 reporting manufacturers demand for yellow pine but a quiet hardwood
in district No. 8 (St. Louis) during August market. Production of hardwood remains at a
ranged from 20 to 40 per cent larger than very low level, due to low prices and the present
in August, 1920. Four of the largest in- high freight rates. In district No. 9 (Minneterests in that district are now producing apolis) the reported August lumber cut totaled
more goods than at any time in the past. 12,549,909 feet, which was about 5 per cent less
Fourteen manufacturers* in district No. 7 than in July, but which was 56 per cent less
(Chicago) produced in August 19.5 per cent than in August of last year. The stocks of
more shoes than in July, and 15.9 per cent lumber manufacturers showed less than a 1 per
more shoes than in August, 1920. Shipments cent decrease from the total at the close of July,
by these manufacturers were 24.7 per cent and a 29 per cent increase over the stocks on
greater than in July and 34.5 per cent greater hand on August 31, 1920. Lumber shipments
than in August, 1920. AH Chicago factories in this district during August increased 24
report an improvement in the demand for per cent over the July figure in contrast with
men's shoes, but some recession in the demand declines in August shipments in both 1919 and
1920.
for women's shoes.
BUILDING.
The total value of contracts awarded (compiled by the F W. Dodge Co.) indicates an increase
during August as compared with July, and as
compared with August of last year. Four of
the seven districts for which contract figures are
available show a considerable increase over
July, while districts No. 4 (Cleveland) and No.
9 (Minneapolis) show decided decreases. Contracts awarded during August in district No. 1
(Boston) amounted to $19,276,295, as compared with $19,298,334 during July. About
$6,702,583 of this total was for residential purposes, as compared with $6,672,758 during
July. In district No. 2 (New York) contracts
awarded totaled $62,043,905, as compared with
July contract figures of $54,500,566, and residential building amounted to $36,061,717, as
compared with $22,546,142 during July. Contracts for district No. 3 (Philadelphia)
amounted to $22,350,500, as compared with
$13,563,100 during July. Of this total,
$5,331,500 was for residential building, as compared with $2,971,900 during July. In district
No. 4 (Cleveland) total contracts for August
were $26,665,555, in comparison with
$35,669,377 for July. Of these, residential contracts amounted to $8,209,645, in comparison
with $8,319,248 during July. Total contracts
for district No. 5 (Richmond) totaled
$17,337,624 during August, as compared with
$16,026,969 during July. Residential building
amounted to $5,938,417 in August, as compared
with $5,335,545 in July. In district No. 7
(Chicago) total contracts awarded amounted to
$44,680,034 during August, in comparison with
$41,119,866 during July, and residential building amounted to $10,424,029 in comparison
with $7,382,427 during July. Contracts for
district No. 9 (Minneapolis) totaled $9,173,552
in August, as compared with $12,651,007 in
July. Of this amount, $2,975,503 was for residential purposes as compared with $3,758,504
in July.
In district No. 2 (New York) 8,188 permits
were issued during August, valued at
$55,534,223, as compared with 5,071 permits,
valued at $35,952,930, during August, 1920.
Permits granted in nineteen cities of district
No. 7 (Chicago) numbered 6,157, valued at
$25,578,330, as compared with 5,346 permits,
valued at $15,539,077, granted during the corresponding month of last year. The number
and valuation of building permits issued during
August in nine cities of district No. 9 (Minneapolis) increased 27 and 34 per cent, respectively, as compared with the July figures.
In the districts for which no contract figures
are prepared, district No. 6 (Atlanta) reports
that the number of permits granted in fourteen
1163
FEDERAL RESERVE BULLETIN".
OCTOBER, 1921.
cities during August totaled 3,437, valued at
$5,304,592, as compared with 2,007 permits,
valued at $4,057,181, granted during August,
1920. In four cities of district No. 8 (St. Louis)
1,971 permits, valued at $3,325,791, were issued
during August in comparison with 1,302 permits, valued at $2,751,877, issued during the
corresponding month of 1920. Reports from
sixteen cities of district No. 10 (Kansas City)
for August show a gain of 54.8 per cent in the
number of permits granted and 93.8 per cent in'
the estimated cost, as compared with August,
1920. This is the largest percentage of gain that
has been shown in any month this year over the
corresponding month last year. In nine cities
of district No. 11 (Dallas) 2,814 permits, valued
at $6,401,268, were issued during August, in
comparison with 1,548 permits, valued at
$2,950,694, issued during August, 1920. The
value of building permits for twenty cities of
district No. 12 (San Francisco) amounted to
$17,126,365 in August, as compared with
$15,080,736 in August of last year, and the
number increased from 7,577 to 10,096.
EMPLOYMENT.
There were no noteworthy changes in the
employment situation during the month of
August, the period covered by the latest report of the United States Department of Labor.
Decreases were recorded in five of the fourteen
reporting industries, but it is noticeable that in
two of these five industries—namely, woolen
textiles and cigar manufacturing—the numbers
employed in August were 114 per cent and 4.5
per cent, respectively, above those employed
during August, 1920, while in the case of the
silk industry the employment figures were
only 2.2 per cent below those given for a year
ago. There was an increase of 4.9 per cent in
numbers employed in the iron and steel industry during the month as compared with the
July figures. On the other hand, there was a
slight decline for bituminous-coal mining of 1.6
per cent. The special report on employment
conditions, which is regularly made by district
No. 7 (Chicago), covers 237 manufacturing
concerns, employing at the present time
138,237 men. The employment in these factories increased 1.4 per cent in August for the
district as a whole and 1.2 per cent for the
establishments located in Chicago. These figures coincide very closely with those for the
general survey of the Department of Labor,
which showed an increase of 1.08 per cent in
numbers employed for the industries covered.
District No. 8 (St. Louis) likewise made special inquiry in regard to the employment conditions in the 21 largest cities of that district,
and reports that in establishments with a nor-
1164
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
were recorded amounting to 7.2 per cent with
four firms reporting, and 9.8 per cent with
twenty-nine firms reporting, for the respective
districts. Apparently the need of replenishing
retail stocks allowed to run down during the
summer largely explains the increases in grocery
^sales. District No. 3 (Philadelphia), with an increase of 10.4 per cent for forty-eight reporting
grocery firms, states that there is comparatively
little tendency to buy for the future, and this
testimony is corroborated by similar statements
from other districts. The fall demand for dry
goods and boots and shoes has resulted in especially heavy advances in these two lines. In four
districts, namely, district No. 2 (New York), No.
5 (Richmond), No. 9 (Minneapolis), and No. 11
(Dallas), there were increases in dry goods sales
in excess of 50 per cent, ranging from 50.6 per
cent for district No. 5 (Richmond), with eight
firms reporting, to 54.2 per cent for district
No. 11 (Dallas), with eight firms reporting. In
district No. 7 (Chicago), with six firms reporting,
dry goods sales increased 43.1 per cent and in
district No. 6 (Atlanta), 45.5 per cent, eighteen
firms reporting. The minimum increase occurred in district No. 12 (San Francisco), with
ten firms recording an advance of 29 per cent.
In the case of boots and shoes, five reporting
districts, No. 2 (New York), No. 5 (Richmond),
No. 6 (Atlanta), No. 7 (Chicago), and No. 12
(San Francisco), showed increases ranging from
29.8 per cent for thirteen reporting firms in district *No. 12 (San Francisco) to 84.3 per cent for
the eight reporting firms in district No. 5 (Richmond). Tne increases in sales of wholesale
hardware have been much less pronounced,
the minimum advance being 1.2 per cent for
ten firms in district No. 2 (New York), the
maximum 18.4 per cent for eleven firms in
district No. 11 (Dallas). Notwithstanding
these heavy seasonal increases in sales, sales
expressed in terms of value are still far below
the figures for August, 1920, although in the
majority of cases the volume of sales compares
favorably with the returns for a year ago,
generally being as large or in some instances
larger than in August, 1920, except in the case
of hardware lines. Caution in placing orders
and unwillingness to make extensive commitments for the future continue to characterize
WHOLESALE TRADE.
the attitude of the retailer, despite the fact of
Sales of reporting wholesale firms in three general improvement in current business.
lines, hardware, dry goods, and boots and
shoes, showed an average advance in August
RETAIL TRADE.
as compared with July for every district.
Increases in wholesale grocery sales also ocThe value of sales for retail trade in August
curred in districts No. 2 (New York), No. 3 continued to be less than last year. The fact
(Philadelphia), No. 5 (Richmond), No. 6 (At- that price reductions have been relatively
lanta), No. 7 (Chicago), and No. 11 (Dallas). greater than reductions in value of sales would
In district No. 10 (Kansas City) and district seem to indicate that the physical volume of
No. 12 (San Francisco), however, decreases retail trade was actually larger than in August,
mal complement of 215,784 workers, numbers
employed August 1, 1921, were 165,874, a decrease of 21.3 per cent as compared with August 1, 1920. Reports made oy the various
State departments of labor indicate a slight
improvement in conditions during the month
of August.
In Pennsylvania the State Department of
Labor estimates that unemployment in the six
cities of Altoona, Harrisburg, Johnstown, Philadelphia, Scran ton, and Williamsport has steadily declined since August 15, the figures for
September 15 of numbers unemployed being
3.8 per cent below those of August 31, which
in turn were 2.5 per cent under returns of
August 15. In district No. 5 (Richmond) conditions were reported to be less favorable for
unskilled workers, but they had improved in
the building trades, the textile mills, and railroad work. The strike in the mills around
Charlotte has been settled, and there has been
a resumption of activity in that region. In
district No. 10 (Kansas City) operating conditions in the mining sections showed no material improvement. A survey of labor conditions disclosed the fact that in Missouri, in the
zinc and lead mining districts, u there were
only 270 miners working underground, while
there were 800 in Kansas and 2,200 in Oklahoma, a total of slightly over 3,000 men, as
compared with 12,000 to 15,000 during the
period of 1915 to 1917. There were but 35
mills working out of 208 in the district, which
is another criterion of the inactivity now prevailing in the zinc industry as compared with
previous years.77 Although in district No. 12
(San Francisco) there has been a slight increase
in employment in Oregon and Washington due
to seasonal activities and public works, the
situation in California has become aggravated
by an influx of workers from outside points.
Reports indicate that about 45,000 are unemployed in that State. There has been no
increase in the activity in the metal mining
in Arizona, Nevada, and Utah, but nevertheless
some decrease in unemployment has resulted
from greater building activity and increased
work on public improvements and for railroads.
1920. The commodities which seem to be
selling best are furniture, knitting yarns, and
cotton piece goods. August reports for 330
department stores throughout the United
States show a moderate improvement over
those for July. Average sales for these stores
were 11.9 per cent less than in August, 1920,
whereas average sales for July were 15.1 per
cent less than in July, 1920. The improvement
seems to be mostly confined to the East, as
districts No. 7 (Chicago) and No. 11 (Dallas)
show a decrease from last month and other
western districts still show a large decrease
compared with last year. Reports of these 330
representative department stores show a decrease from August, 1920, amounting to 4.5
per cent in district No. 1 (Boston), 5.2 per
cent in district No. 2 (New York), 4 per cent
in district No. 3 (Philadelphia), 21 per cent in
district No. 4 (Cleveland), 9.8 per cent in district No. 5 (Richmond), 31.3 per cent in district No. 6 (Atlanta), 18.8 per cent in district
No. 7 (Chicago), 11.7 per cent in district No.
8 (St. Louis), 11 per cent in district No. 9
(Minneapolis), 8.9 per cent in district No. 10
(Kansas City), 23.3 per cent in district No. 11
(Dallas), and 6.2 per cent in district No. 12
(San Francisco). The stocks on hand at the
end of August were very much lower than a
year ago, but were slightly greater than at the
end of July. The rate of stock turn-over has
changed little, although it shows a slight tendency to decline. Orders in August continued
at about the same high level as in July.
PRICES.
During the first three weeks of September
prices of most basic commodities advanced or
showed little change from the August level.
In the case of live stock the tendency was the
reverse, hogs showing particular weakness, but
certain other agricultural commodities, such as
cotton, wheat, oats, and wool, advanced. The
50 per cent increase in the price of cotton during the course of the month led to large nominal
advances in yarn and cloth prices and stimulated
demand for allied commodities. In the woolen
industry raw materials were firm and showed
a tendency to advance in the middle of the
month, while yarn and cloth prices in general
remained unchanged. No important fluctuations occurred in hide and leather prices. The
September quotations are approximately the
same as those for August.
Prices of pig iron are slightly higher than a
month ago, while semifinished steel products
with some exceptions are lower. Large price
cuts in the steel industry, however, appear to
have come to a halt. Prices of nonferrous
1165
FEDERAL, RESERVE BULLETIN.
OCTOBER, 1921.
metals advanced during the month. No important changes occurred in the prices of building materials, while there was a hardening
tendency in coal and oil prices.
Wholesale index numbers are not yet available for September, but the August figures for
"all commodities" show small increases over
the July averages. The index number of the
Federal Reserve Board, constructed primarily
for international comparisons and computed
with prices in 1913 as 100, gives an average of
143 in August as compared with 141 in July.
The most important increases occurred in consumers' or highly manufactured goods. Decreases were registered in producers' or semifinished goods, while raw materials remained
practically unchanged. Retail prices of foods
continued to advance, the index number of the
Bureau of Labor Statistics for August showing an increase of approximately 5 per cent
over July.
SHIPPING.
During September some improvement was
noticeable in the amount of cargo offered for
shipment to foreign ports. The available steam
tonnage remains, however, greatly in excess of
shippers7 requirements, with the result that
ocean freight rates continued merely steady and
substantially unchanged from the levels which
were reached last June. An important factor
contributing toward the steadiness of rates in
recent months has been the large volume of
grain shipped throughout the summer, thus
keeping many ships in constant service. Owners
of vessels are able to do little more than meet
expenses with rates at current levels, and in
many cases have preferred to lay up their ships
rather than accept such partial cargoes as have
offered. A development in the last week of
September was the announcement of a reduction in rates to European ports by the several
conference lines. This action is generally recognized as an effort to meet the competition
of "tramp" vessels, which of late have been
making inroads in the liners' business.
FOREIGN TRADE.
The value of our foreign trade in August is
reported at $372,000,000 for exports and $195,000,000 for imports, leaving an export balance
of $177,000,000, which was only partially offset by net importations of gold to the amount
of $86,000,000. The values of both imports
and exports show gains over July, exports
being higher than in any month since March.
Comparisons between the months of this year
and similar periods last year are apt to be misleading on account of the far higher level of
prices which then prevailed, so that while the
1166
FEDERAL RESERVE BULLETIN.
reported value of exports in the last few
months has been only one-half as much as in
the same months of 1920, the volume of exports
stated in quantitative terms has actually been
greater than a year ago. This means that the
prices upon which the export valuations are
based have declined more rapidly than have
exports stated in terms of dollars. In substantiation of these facts it majr be pointed out
that the Board's foreign trade index, in which
the effects of price changes have been eliminated, stands at 140.9 for exports in August,
1921, compared with 87.3 in August, 1920, and a
monthly average during 1920 of 107.7. The index number for August, 1913, is 90.7, the 1913
monthly average being 100. The conclusion is
therefore to be drawn that in volume our export
trade is now larger than in 1920 or in the
months shortly preceding the war.
DEALING IN ACCEPTANCES.
DEFINITION OF TERM "DEALER."
The following description of methods employed in buying and selling acceptances is
oased upon the answers to questions furnished
by the principal dealers in New York, Chicago,
and Boston, who have kindly agreed to give
this information. As the inquiry has been
confined to dealers' practices, it is desirable to
define the term "dealer" as it is employed in
this article. An acceptance dealer is an individual, firm, or corporation engaged in actually
buying and selling the acceptances of others.
A portion of the profit that may be derived from
such operations comes from disposing of the
bill at a lower rate of discount than that at
which it is bought, and bills are bought to be
sold as speedily as possible. Thereby the
acceptance dealer is to be distinguished from
the investor on the one hand, and on the other,
from institutions that find their profit in
granting acceptance credits. Institutions that
do a direct acceptance business may at the
same time buy and sell acceptances of others in
addition to handling their own obligations, but
the term " dealer " has in general been restricted
to those who "deal in" the acceptances of
others. One reporting dealer, however, who
has the privilege of accepting bills, has at times
exercised that privilege to a considerable extent. Another dealer who also has the right to
accept does not make use of it.
FUNCTION OF THE DEALER.
The function performed by dealers as intermediaries between accepting banks and houses
on the one hand and investing banks and the
public on the other is quite evident. In the
OCTOBER, 1921.
absence of a ready market for the sale of
acceptances, an accepting bank may find it
necessary to carry its own acceptances for the
drawer, and in that case the accepting bank is
put in the position not only of granting its
credit to the drawer but of actually carrying
him. The result is that the purpose of the
establishment of the acceptance credit, namely,
to lend currency to a bill on which the drawer
can realize without engrossing the resources of
the accepting bank, has been defeated. Or, if
the bank is not constrained to hold its own
acceptances, it may have no other recourse than
to negotiate directly the sale of these acceptances to investment institutions. To do this
effectively on any large scale, however, necessitates a considerable organization and a large
variety of bills, and for many banks would be
quite impracticable. Moreover, when bills are
marketed directly by the acceptor, conditions
are not as favorable for achieving an impartial
appraisal of such offerings by the open market
as they are when the bills have been subjected
to a process of evaluation by passing through
the hands of men whose business it is to deal
in acceptances.
In short, the services of the dealers are similar to those performed by middlemen everywhere, i. e., the creation, or more exactly,
organization of a market to which both buyers
and sellers may resort without loss of time and
in the expectation of finding a scale of prices,
or, as in this case, of rates which reflect current
market conditions. The existence of a market
for acceptances which can be relied upon by
sellers to absorb their offerings immediately
depends upon the extent to which a professional dealer's demand has been built up, as
direct reliance upon the investment demand
means an appeal to a heterogeneous group,
which in turn means numerous, uncoordinated,
and uncertain markets. The dealers, however,
in order to be in a position always to handle
all legitimate offerings, must in their turn not
only have established extensive contacts with
many types of investors, but they should also
be able at all times to secure sufficient funds
at rates low enough to make it possible for
them to carry large and well diversified portfolios at a moderate profit. The margin of
profit secured by the dealer from the difference between his bid and offer prices is, in a
well-developed market, more than compensated for, from the point of view of the seller,
by the advantage that comes from instantaneous sale. By securing acceptances from various sources, dealers are also in a position to
facilitate sales by the variety of their offerings
as regards names, maturities, denominations,
and other factors. And, being specialists, the
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
dealers are, as already indicated, in a position
to arrive at the true open-market appraisal of
the bills that pass through their hands. If
one fails to do so, the competition of other
dealers will force conformity. The result is
the establishment of more equitable rates and
a broader and more fluid market, which again
encourages and, indeed, is an indispensable
preliminary to a further extension of a properly conceived acceptance business.
NUMBER OF DEALERS FURNISHING DATA.
The information which follows is based upon
reports received from dealers operating in New
York, Boston, and Chicago. Of the six reporting dealers doing business in New York,
two have their main offices in Boston. The
Boston offices also made reports concerning the
extent of their dealings in that market, while
all other returns from Boston and from Chicago
came either from branches or from correspondents of three of the six dealers mentioned.
PURCHASES OF NEW YORK DEALERS—AMOUNT
AND SOURCES FROM WHICH OBTAINED.
In order to obtain an idea of the magnitude
of dealers' operations in the several markets
and the relative amounts purchased from various classes of holders, dealers were asked to
state the average amounts of the portfolios
carried during the year ending June 30, 1921,
and the per cent of the total purchases obtained from drawers, from acceptors, from
indorsers, and from all other sources. In New
York the sum of the average amounts of the
portfolios carried by six reporting dealers during the period in question was approximately
$54,000,000, and, considering the rapid turnover, it is evident that these dealers did a large
volume of business in the course of the year.
As a matter of fact, business done by nonreporting dealers in the New York market was
so insignificant that the returns as given are
practically inclusive. The greater part of the
acceptances purchased by the six New York dealers came directly from accepting banks and, with
one exception, were around 50 per cent or more
of total purchases. The average amount of all
purchases obtained from acceptors was 50.5
per cent (average weighted according to the
size of the average portfolio); from indorsers,
16.3 percent; and from all other sources,33.2
per cent. Four of the six dealers who reported
separately purchases obtained from drawers
showed the following distribution: From acceptors, 48.6 per cent; from indorsers, 14.8
per cent; from drawers, 11.5 per cent; and
from all other sources, 25.1 per cent. A
1167
desire was expressed by a number of the New
York dealers to encourage the presentation of
bills directly by drawers or indorsers. It is
evident that this preference lends support to
the statement set forth above, namely, that
the less the reliance placed by the drawer upon
the accepting institution in disposing of his
bill the more sharply defined becomes the
fundamental character of the acceptance as a
loan of credit and not a loan of funds by the
accepting bank. Naturally, in the slow upbuilding of a new institution, the theoretically
most desirable processes are not always immediately capable of adoption; and so it is in the
present instance, as dealers who expressed a
preference for receiving bills from the drawer
or indorser nevertheless obtained not much
more than a quarter of their holdings from
those two sources.
PURCHASES OF BOSTON DEALERS.
The returns from three of the four reporting
Boston dealers gave estimates of the average
amounts of the portfolios carried during the
year ending June 30, 1921. The sum of the
averages so reported amounted to approximately $5,000,000, but as the returns for the
Boston market do not include all the local
dealers, their significance is found chiefly in
connection with statements of the sources
from which these bills were obtained and the
way in. which they were distributed among
investors. Over 90 per cent of the acceptances
bought by three dealers were obtained from
the acceptors. The combined percentages,
weighted according to the size of the average
portfolios, were 93.3 per cent for purchases
from acceptors; 5.7 per cent from drawers;
none from indorsers; and 1 per cent from other
sources. A fourth dealer, who did not give
actual percentages, stated that the largest
supply of bills came directly from accepting
banks and that direct purchases were made
from only a few drawers.
PURCHASES OF CHICAGO DEALERS.
The average size of the portfolios carried by
three reporting dealers in Chicago can not be
exactly determined, but the sum of the averages was probably between $3,000,000 and
$4,000,000 during the year ending June 30,
1921. No attempt has been made to average
returns showing the percentages of total purchases obtained from various classes of holders,
as the percentages showed such a wide spread
that averages would be misleading. The
major portion of Mie bills dealt in, however,
came from acceptors.
1168
FEDERAL RESERVE BULLETIN.
LOCATION OF ACCEPTING BANKS.
In all three cities the acceptances dealt in
were in large part those of local institutions,
but in the Boston and Chicago market they
were in general obtained from a more restricted area than in the case of New York.
Although the acceptances of New York institutions constituted at least 70 per cent or
more of the purchases of at least three New
York dealers for the year ending June 30,
1921, the New York houses nevertheless obtain
bills over a wide area, and some of the reporting
dealers make purchases in other large centers
through the medium of branches or correspondents. Out-of-town business is generally
secured largely by means of the telegraph and
telephone, and its origin no doubt depends
chiefly upon established connections made
through other types of activity in the commercial paper and securities markets. Locally,
representatives of the dealers call daily on
designated banks to find out what bills are for
sale. Purchases are made outright as a rule,
and only in a very limited number of instances,
and then infrequently, do some dealers act as
brokers in the purchase and sale of acceptances.
In the Boston market over 90 per cent of the
acceptances dealt in by the reporting houses
were those of banks located in that city, while
the rest were acceptances coming chiefly from
banks in the larger cities of New England,
although the market also absorbed some New
York, Chicago, and western bills. The
methods of getting into touch with local banks
and outside interests are the same as in New
York. A similar situation is found in Chicago,
where the major part of the acceptances dealt
in originated with Chicago banks.
OCTOBER, 1921.
form of several bills, only one bill will, as a rule,
be drawn for the odd amount. But in the case
of import bills, especially, odd amounts are
frequent, and the sums involved are often less
than '$5,000. One dealer states, however, that
his actual range during the past year was from
$10 to $800,000.
SALES DISTRIBUTION, BY CLASSES OF INVESTORS.
With a view to determining the relative
importance of the various groups of investors
to whom sales of acceptances were made during
the past year, questions were put concerning
the percentages of total sales, exclusive of
sales to Federal Reserve Banks, made to savings banks, to other banks, and to corporate
and private investors. Inquiry was also made
concerning the territorial distribution of the
sales effected. The distribution of acceptances
among the several classes of investors showed
great variation from dealer to dealer, making
average percentages misleading in some instances. For the six New York dealers sales to
banks other than savings banks averaged over
60 per cent of total sales for the year ending
June 30, 1921. The sales to private individuals and corporate investors ranged from less
than 10 per cent to over 15 per cent, while the
distribution to savings banks was highly
irregular, varying from less than 5 per cent to
a maximum of 50 per cent. • The figures showing distribution of the sales of reporting Boston dealers, if given in the form of averages,
are not typical, as one firm disposed of much
the greater part of the acceptances handled to
savings banks, with few sales to other banks,
whereas in the other three cases the practice was
the reverse. Sales to corporations and private
individuals were also variable, but for three
ARRANGING ACCEPTANCE CREDITS.
dealers the average was about 15 per cent.
The
information obtained from Chicago conPractice differs among dealers in the matter cerning
sales distribution was not available in
of making arrangements whereby individuals sufficient
detail to afford comparable statistics
desiring to obtain credit in the form of acceptances can be put in touch with banks that will
accept for them. Some houses prefer not to SALES DISTRIBUTION ACCORDING TO LOCATION.
undertake to make these connections, believing
The data given above show that the chief
that discussion should be held directly with
the banks and that intervention may put them reliance of the dealers in seeking a market for
under obligations to market the bills drawn. acceptances has so far been the banks. The
Others are ready to perform this service regu- location of such purchasing banks is a matter
of interest, and questions were accordingly
larly and systematically.
asked concerning the territorial extent of sales
distribution. In the case of New York dealers,
DENOMINATIONS OF BILLS.
it appeared that about 50 per cent of the sales
Bills are very commonly drawn for sums to banks during the past year were made in
ranging from $5,000 to $25,000, and $50,000 New York City or vicinity. The outside disdenominations are not unusual. When an tribution is widely scattered, but acceptances
acceptance credit is so large that it becomes are chiefly lodged with the banks in the larger
desirable for purposes of sale to offer it in the cities. One dealerisays that his firm has dis-
OCTOBBB, 1921.
FEDERAL, RESERVE BULLETIN.
tributed bills in 38 States and more than 400
cities. Most of the regular dealers are also
engaged either in selling commercial paper or
in handling stocks and bonds, or else they follow
both lines of activity. Hence they are in a
position to utilize the existing selling organizations and to place acceptances through their
branches or through correspondents. In New
York City special salesmen are sometimes employed, and in all cases daily visits by firm
representatives are made to banks and other
institutions who may be possible purchasers
of acceptances. One dealer has a special local
selling organization, consisting of a manager
of the acceptance department and six salesmen in New York City, to cover all classes
of investors in bills, i. e., national banks, trust
companies, savings banks, insurance companies, other corporations and firms. The
private investors are taken care of by the private investors' department. Sales of reporting Boston dealers were largely confined to
Boston and New England, but were widely distributed within that territory. One house, for
example, stated that it had covered 150 New
England cities and towns as well as a number
of middle western and western cities. The
sales of reporting Chicago dealers were largely
confined to the Seventh Federal Reserve District and were chiefly made to the smaller
banks in the country.
METHODS EMPLOYED IN SELLING OUTSIDE C#TY.
General and very extensive reliance is placed
upon circularization for effecting sales to outside interests, supplemented by the use of the
telegraph and telephone. The daily offering
sheets, sent out as a rule to the number of 500
copies or more to the principal banks and a few
corporations and individuals, are an important
means of securing orders, especially from outside the city. In the majority of cases no use
is made of traveling representatives in furthering the sale of acceptances except in connection with the transaction of other business.
However, the Boston office of one dealer has
three traveling salesmen who devote the major
part of their efforts to the promotion of the
acceptance business, while in the New York
office of the same house three men spend part
of their time visiting out-of-town banks. Another dealer, with a large number of branch
offices throughout the United States, reports
that although the salesmen are primarily interested in the distribution of long-term securities, they also carry acceptances regularly and
transmit orders to their respective offices, from
which such orders are forwarded to one of the
four large cities in which acceptance portfolios
are carried. A third dealer, with correspond-
1169
ents in nine large cities located in eight Federal
Reserve districts, buys and sells prime bills
through these correspondents. It should be
remembered, however, that the New York
banks which purchase acceptances frequently
do so for correspondents scattered over a wide
area. Otherwise, as stated, the outside distribution is largely governed by the location of
branches, affiliations, etc., of the respective
dealers. The majority of dealers state that
they do not indorse the acceptances that they
sell, although one house has indorsed a very
limited amount but only "for a consideration.77
BORROWED FUNDS—AMOUNT AND TERMS ON
WHICH OBTAINED—NEW YORK DEALERS.
A question concerning the average amount of
borrowed funds used in carrying acceptances
during the year ending June 30, 1921, brought
out the fact that in the New York market three
reporting dealers borrowed all funds so employed. This is possible because of the fact
that such dealers have established banking
relationships and obtain the necessary advances
in connection with other lines of business.
Only one large dealer, whose principal business
consists of buying and selling acceptances, has a
substantial capital devoted directly to the
purchase of acceptances and constituting a considerable percentage of the funds employed.
For all six reporting New York dealers the
percentage of borrowed funds on the average
to the average size of the portfolios carried was
84 per cent. Borrgwed funds are almost
without exception obtained on call, although
in two instances it was stated that a negligible
amount of time money had been occasionally
used. The rates for time money, as a matter of
fact, have not been low enough to enable it
to be used in making purchases without a loss,
or at least on the few occasions when it has
been available the call rate has been even
more favorable. In any case, the uncertainty
in regard to the ability to utilize funds continuously makes it usually undesirable to
borrow for fixed periods. The aim is to borrow just enough from day to day to take care
of the daily purchases and to dispose of the
bills so bought immediately. It is striking
that one deafer alleges that the average yield
of his portfolio did not exceed the cost of carrying in the case of prime bills, while the yield
exceeded cost by as much as 1 per cent or
more on nonprime bills. In another case the
average yield did not exceed the average cost,
and in three other instances the average yield
exceeded the average cost by from one-eighth
to one-half per cent. The weighted average
(i. e.; weighted according to the size of the
1170
FEDERAL RESERVE BULLETIN.
average portfolios) gave the average yield for
five reporting dealers as 6.2 per cent; the
weighted average (weighted according to average amounts borrowed) gave the average cost
of the loans as 5.9 per cent.
BORROWED FUNDS—BOSTON AND CHICAGO
DEALERS.
OCTOBER, 1921.
what they will bring, and their loss, if loss it
be, on the capital investment merely involves a
foregoing of what might have been secured in
alternative forms. But as few dealers have
much capital directly invested in the business,
and as they employ call-loan funds almost exclusively, rapid conversion is at times essential.
When the investment demand is not adequate
to absorb the offerings, the market is supported
by those Federal Reserve Banks which are
ready to buy acceptances from dealers under
repurchase agreements limited to 15 days.
Except for funds so made available by Federal
Reserve Banks, loans are obtained by the reporting dealers very largely from local banks.
In view of the existing situation, it is evident
why preferential rates are granted to dealers
by certain banks anxious to build up the acceptance market by providing it with a steady
flow of funds at rates that enable the proceeds
to be used in buying bills.
For three Boston dealers furnishing information in regard to amount and cost of borrowed
funds, the proportion of average total borrowings to the summed-up total of their average
portfolios was 92.6 per cent for the year ending June 30, 1921, and the average yield of
these portfolios was just equal to the average
cost of borrowed funds. Call loans were, with
occasional minor exceptions, exclusively employed. Although returns from Chicago were
incomplete, two reports showed that portfolios were carried entirely through the use of
borrowed funds. In one case the average
yield was just equal to the average cost of the
CONCLUSION.
borrowed funds. In the other case the average yield was not given, but as the average
A broadening and stabilizing of the dealers'
cost of borrowed funds was slightly higher than market is highly desirable for reasons already
in the first instance, it probably was at least set forth. The expansion need not be limited
equal to the average yield.
by the rate of growth of acceptance business
in general, but should proceed at a faster pace
SIGNIFICANCE OF NARROW MARGINS BETWEEN as it becomes more generally recognized that
AVERAGE YIELD AND AVERAGE COST.
dealers have a function to perform that is
vital to the upbuilding of a broad and deIt would appear from the data given above pendable open market. Dealers will, howthat the operations of reporting dealers in ever, only be able to expand their purchases
Boston and Chicago were not carried on upon and thereby offer a ready outlet for accepa basis to yield a profit directly. Indirectly, tances in proportion as they can feel assured
however, there may be a certain amount of of being able to control adequate supplies
interchange between branches of the same of credit at rates that yield a necessary profit.
firm or between correspondents, which in the Moreover, an increase in the scale of their
long run may be worth while, even though it operations implies an expansion of the investbrings no addition to the net earnings of the ment demand which they satisfy. It is
outside dealer. Even in New York City the evident that there exists a large opportunity
margin between average yield and average cost for the development of such an investment
was narrow and in one case nonexistent. It demand, especially among corporations and
is obvious, therefore, that a very slight change private individuals, as so far dealers' sales
in rates may bring losses to the dealer, and if, have been principally confined to banks.
when the demand for bills is light, he is carrying a heavy portfolio on money borrowed at
rates higher than the average yield on his bills,
THE APPLICATION FOR LETTERS OF
his continuous daily loss may easily become so
CREDIT.
large as to force him to liquidate his bills at
whatever they will bring and retire from the
In the previous articles dealing with letters
business. In any case a rapid turnover is essential if borrowed funds are to be used profit- of credit, reference has at times been made
ably. To the extent that dealers are employ- to the application. This ancillary document
ing their own capital in the direct purchase of is essential in the issuing of commercial credits
acceptances, their ability to hold these accept- and so is of interest to both banker and merances under unfavorable conditions of the chant, since it forms the basis for the contracmoney market is obviously strengthened. tual relations between these two parties. The
They can at least carry their purchases for present study will describe its use and set forth
OCTOBER, 1&21.
a comparative analysis of the various expressions found in the applications issued by
American banks. Eighty-five different sets
of forms were examined, and, as in the case
of the letter of credit, little uniformity was
found in the content of the applications of
American banks. Since the publication of the
article in the FEDERAL RESERVE BULLETIN
of February, 1921, pages 158-171, which
reviewed the leading cases on commercial
credits, British and American courts have
rendered decisions bearing directly upon the
terms of the application for a letter of credit and
the credit itself, and these opinions will be cited
in this survey.
An applicant for a letter of credit may transmit his request to the bank by telephone, telegraph, or letter. The bank which has been
asked to issue the credit usually insists that the
importer submit his requisition in a formal
document, known as an application for1 a
letter of credit. This instrument has several
uses. It supplies the bank with information
for analyzing the nature of the transaction.
Since the application for a letter of credit is
the same in nature as the request for a loan,
the bank must understand fully the extent of
the risk which it is asked to assume. It is
also essential to know the tenor of the drafts
and the nature of the import, for these conditions will affect materially the eligibility and
therefore the marketability of the bills created
by the shipment of the goods. If the terms
of the credit are approved by the officers of
the bank, the application then serves a third
purpose in furnishing the facts necessary for
filling out the letter of credit. In this connection it is well to note that the issuing bank
considers only the data presented in the
application for a letter of credit and does not
regard itself bound by the more detailed terms
stated in the contract of sale between buyer
and seller. (See Maitland v. Chartered Mercantile Bank of India, London and China
(38 Law Journal, 363); Oriental Banking
Corporation v. Tippert & Co., (Buchanan's
Reports, South Africa, p. 152); Frey & Son
v. Sherburne Co. and National City Bank
(184 N. Y. Supp., 661); American Steel Co.
v. Irving National Bank, 266 Fed., 41). In one
way, the interest of the importer is safeguarded
by a formal application, as this document presents definitely the conditions which the bank
must observe in issuing the credit and in paying
the drafts drawn by the exporter.
An application for a letter of credit may be
addressed directly to the bank by one of its
own customers, or it may be presented indirectly by a correspondent bank acting in
behalf of its clients. This institution is usually
1171
BESEItVE BULLETIN.
an inland bank which has no foreign department of its own, and so transmits the request of
its customer to a metropolitan bank with facilities for issuing foreign credits. (See answers to
question 5, FEDERAL RESERVE BULLETIN, February, 1921, p. 165.)
As an illustration of an application for a
letter of credit, the following form is presented:
Date
DEAR SIRS: < ^
thereby request you to open by cablel
l
i
an irrevocable letter of credit upon the following terms
and conditions:
For account of
in favor of
(applicant requesting credit)
(foreign shippers)
up to an aggregate amount of
(amount in words)
available by drafts at
(sightldrawn on
1 date J
(name of bank and city)
Accompanied by the following documents:
Cross out documents not required.
Full set of negotiable ocean bills of lading made out
to the order of
bank.
Commercial invoice.
Consular invoice.
Marine insurance policy or certificate.
War risk insurance policy or certificate.
Certificate of
Certificate of . . ,
purporting to evidence and cover shipment from . . .
;41
invoice cost ef
fc. i. f. \
( n a m e of c o m m o d i t y )
\f, o . b . J
(place)
Bills of lading to be dated not later than
, and unless specifically stated otherwise herein,
bills of lading in the form of "received for shipment"
may be accepted.
{^™fgk|insurance to be effected hy[™e}under blanket policy No
issued by
(shipper)
nvu •
A • + • [to be confirmed
1 bv ,
J his credit i s | n o t t Q b e C O I l f i r m e d \ * (name of foreign bank)
Unless mentioned to the contrary, it is understood that
part shipments may be made under this credit. Furthermore, unless stated herein to the contrary, in case shipments are to be made in stated periods, you are expressly
authorized, in the event of the failure to ship m any
designated period, to accept drafts drawn under said
credit for shipments made in any period or periods subsequent to the period in which payment or shipments shall
not have been made.
Remarks:
jjy jhereby agree to sign on demand, and deliver to
you. an obligation for such credit, in the form now used
by you, tjie provisions of which are agreed to as defining
j^lobligati
your rights andj^lobligations.
This form has been suggested by the committee on uniform credit
instruments appointed by the Bankers7 Commercial Credit Conference of New York. The application contains all the necessary provisions and will serve
1172
FEDERAL RESERVE BULLETIN.
as a basis for discussion iiTthe present article.
From this instrument it is seen that an application contains the following elements: (1) Request for letter of credit; (2) description of
drafts; (3) description of documents; (4) description of shipment; (5) description of merchandise; (6) statement of expiration date.
1. Bequest for letter ofcredit.—The essential
feature of any application is the address in
which the importer asks the bank to issue a
credit. In the above form, the importer requests the bank to open an irrevocable letter
of credit. An analysis of other applications
indicates an extensive use of the word "issue."
A distinction may be drawn between "open"
and "issue," in that the former by implication
would permit the notifying of the credit to the
beneficiary through a second bank, while the
latter would limit the bank to the transmitting
of its own obligation to the recipient of the
credit. The same difference is found in the
applications which request banks to establish
"a credit" or to furnish "your credit." As
indicated above, a credit may be opened by
cable or by mail. If by cable, the communication is usually forwarded to the beneficiary
through a correspondent bank which possesses
the correct test words. When credit letters are
sent by mail they are generally given by the issuing bank to the importer, who in turn sends them
to the recipient. A considerable variation is
also found in the description of the credit which
the bank is requested to open. In the above
form the bank is instructed to open an "irrevocable" letter of credit.
In some other forms of application the bank
is requested to open simply a "credit." This
expression is quite indefinite and therefore unsatisfactory, for it does not furnish the bank
with sufficient data in that it leaves uncertain
the nature of the credit desired by the importer.
The term " documentary" appears in a number
of forms, but this expression is unnecessary,
since commercial credits provide for the payment of drafts only if accompanied by shipping
documents.
The application forms show considerable
confusion in the use of the terms "irrevocable"
and "confirmed." A distinction between these
two terms is recognized in the above form by
the clause which permits the importer to indicate whether he wishes the credit to be
further confirmed. When a credit is confirmed it is so notified to the beneficiary
through the agency of a second bank. In this
form the importer may specify the bank which
is to confirm, the credit, but as a rule this
selection is left to the bank issuing the credit.
This institution must then exercise due care in
choosing a solvent bank for confirming the
credit.
OCTOBER, 1921.
2. Description of drafts.—After stating the
request for the letter of credit, the application
then indicates the number, amount, and tenor
of the drafts to be drawn by the accreditee.
In the form above, the amount is so described
as to permit the beneficiary to receive payment by drawing either one draft, or even
several bills if he so desires. It is quite necessary to allow the exporter this choice, for he
may find it difficult to forward his goods
entirely in one consignment but instead he
must effect partial shipments. The amount
to which the exporter may draw his drafts is
usually specified as a stated amount of dollars
or foreign money. When such terms as
"about" or "approximately" are used in referring to the amount of the drafts, the accreditee is allowed a margin of 10 per cent
above this sum in drawing his bills. The
tenor of the drafts will depend upon whether
the beneficiary is receiving a cash or an acceptance credit, and so the drafts will be made
either at sight or for such periods of time as
3 and 6 months. To a large extent the tenor
of the draft is limited to 90 days, so as to render
the bill eligible for rediscount with the Federal
Reserve Banks. The extent of the credit is
not always expressed in terms of money, but
may also be limited by the quantity of goods.
For example, an application may request the
bank to issue a credit which permits the
beneficiary to draw his drafts covering shipment of a certain number of tons of a commodity.
3. Description of documents.—This part of
the application is defined with utmost care.
The shipping documents constitute the main
assurance of reimbursement to a bank in
financing foreign trade. The most important
shipping document is the bill of lading. It may
be classified according to negotiability or to
carrier. In the first place, straight bills are
consigned to a definite party, and so are nonnegotiable, while order bills are negotiable, for
they may be freely indorsed by the holder.
According to carrier, bills of lading may be
classified as follows: (1) Railroad, when transported by an inland railway; (2) ocean, when
carried by a vessel; (3) through, when shipped
both by rail and steamer or on different navigation lines. The nonnegotiable or straight
bill of lading is made payable in the name of
the consignee. Railroad bills of lading seldom
•appear in foreign trade, since ocean bills are
generally required.. As Chicago, St. Louis, and
other inland cities are gradually entering the
field of financing foreign trade, through shipment bills of lading are now being regarded as
acceptable documents.
It is also necessary for a bill of lading to be
'clean" or free from any notations which
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
qualify or limit the responsibility of the carriers.
Steamship companies often make a practice of
stamping upon bills of lading expressions which
qualify the condition of the merchandise which
they are carrying. For example, these notations have reference to the rusting of metals,
the leakage of barrels, or the breakage of boxes.
Banks are naturally unwilling to negotiate
drafts accompanied by bills of lading containing these qualifying expressions.
During the past year widespread consideration has been given to the question whether a
bill of lading offers assurance of the actual placement of the goods on board a vessel. This
controversy arises from the lack of77a clear legal
conception of the term " shipment.
American
courts have given different interpretations to
this expression. In the case of Mora y Ledon
v. Havemeyer (121 New York, 179), shipment
was defined as actual delivery on board a vessel,
while Goldenberg v. Cutler (189 Appellate
Division, 489), held that shipment merely implied the surrender of goods to the carrier. The
latter view has found favor among American
business 7men and as a result "received for
shipment ' or "received for transportation77
bills of lading have been generally recognized
as acceptable documents. This view finds
support in Marlborough Hill v. Cowan (Law
Reports, Appeal Cases, 1921, vol. 1, pp. 444457.) In this case the court drew no distinction between a bill of lading which described the
goods either as77" shipped on board77 or " received
for shipment.
On this point the decision
states that " there can be no difference in principle between the source, master or agent
acknowledging that he has received the goods
on his whan or allotted portion of quai, or his
storehouse awaiting shipment, and his acknowledging that the goods have been put over the
ship's rail."
This opinion was controverted by the King7s
Bench Division in July, 1921, in the case of the
Diamond Alkali Export Corporation v. Bourgeois. The litigation arose over the refusal of
the importers to pay drafts accompanied by a
bill of lading which stated that the goods had
been received " to be transported by the steamship Anglia * * * or failing shipment by
said steamer in and upon a following steamer.77
This expression is in common use in exporting
goods from American ports. Nevertheless, the
King's Bench Court refused to recognize this
document as a true bill of lading. In its decision
the court referred to Scrutton and Mackinnon
on Charterparties, where a bill of lading is
defined as " a receipt of goods shipped on board
a ship, signed by the person who contracts to
carry them or his agent, and stating the terms
on which the goods were delivered to and
1173
received by the ship.77 The court thereupon
drew a distinction between a receipt for goods
actually shipped on board a particular vessel
and a receipt for goods which at some future
time are to be shipped on board either a particular vessel or an unnamed vessel which will
sail at a later date. The court therefore refused to recognize this document as a true bill
of lading, but as a "mere receipt for goods
which at some future time and77 by some uncertain vessel are to be shipped.
It is therefore highly essential that American banking
and commercial interests shall arrive upon a
settled definition of the term "shipment77 and
agree upon the acceptance of a received-forshipment bill of lading.
The application also furnishes the necessary
details regarding insurance. In addition to
marine insurance, letters of credit and therefore applications, still require the carrying of
mine-risk policies as a safeguard against loss
from floating mines. The applicant for a
credit must specify whether the insurance is to
be taken out by the shipper or by another party.
Application forms seldom refer to the name and
place of the insurer or the amount of the policy.
This matter is usually covered by the contract
between the importer and the issuing bank,
which states that the insurance companies
must be satisfactory to the bank and that the
amount shall be adequate.
Applications for letters of credit and likewise
the letters themselves have drawn, no distinction between, the insurance policy and the
insurance certificate. It has been common
practice for insurance companies to grant open
policies which permit the issuing of certificates
in the place of the original policies. Justice
Bailhache, in Wilson Holgate & Co., 1920, 2
King's Bench Division, makes the following
statement: " I t must be borne in mind that in
dealing with certificates of insurance I am not
referring to American certificates of insurance,
which stand on a different footing and are
equivalent to policies
being accepted in this
country as policies.77 However, Justice McCardie, in the case of the Diamond Alkali
Export Co. v. Bourgeois, regards a certificate
of insurance as an unacceptable document.
The court, claims that the certificate does not
contain the terms of the insurance which are to
be found only in the original policy, and therefore
it is impossible to learn Irom the certificate
whether the policy has been issued in the
recognized and usual form. The court therefore held that the certificate is not a policy and
regards it "as an ambiguous77thing; unclassified and undefined by law.
The case of
Diamond Alkali Export Corporation v. Bourgeois expresses views on, the bill of lading and
1174
FEDERAL RESERVE BULLETIN.
marine insurance certificate which are quite
contrary to the opinions long accepted by legal
thought and commercial usage. This fact is
fully appreciated by the presiding judge, who
closes his decision with the following remarks:
" I t may well be that this decision is disturbing
to business men. It is my duty, however, to
state my view of the law without regard to
mere questions of convenience."
In addition to the bill of lading and marine
insurance policy or certificate, the application
also requires the importer to describe the other
documents in the commercial set. This includes the commercial and consular invoices,
and minor documents, such as certificates of
inspection, weight, health, and customhouse
declarations.
4. Description of shipment.—Most applications call for both the place of origin and
destination of the shipment in, the expression "from
to
." The port of
origin, is an essential factor in such commodities as coffee or spices, for it may determine the
quality of the goods. On, the other hand, the
insertion of this condition in a letter of credit
may at times impede negotiation of the drafts.
For example, owing to a port strike or embargo
order, the exporter may be unable to secure
cargo space from the port mentioned in the
credit and may therefore find it necessary to
ship his goods from a second point. Banks
would probably be reluctant to negotiate the
exporter's drafts, because the conditions of the
credit had not been observed in this particular.
(See Brazilian & Portuguese Bank (Ltd.) v.
British & American Exchange Banking Corporation (18 Law Times, p. 823); also FEDERAL
OCTOBER, 1921
6. Date of expiration.—The applications used
in this study express the expiration date of
the letter of credit in the following way: (1)
Date of draft; (2) date of shipment; (3) date of
bill of lading; (4) date of credit.
These terms need not be further analyzed,
as they have already been studied in a previous article. (See FEDERAL RESERVE BULLETIN, April, 1921, p. 412.) These expressions
have reference to irrevocable letters of credit
rather than revocable, forms which are subject to immediate cancellation. In connection
with this subject it may be interesting to
note that a recent British decision in "Cape
Asbestos Co. v. Lloyd's Bank" upheld the right
of a bank to cancel an unconfirmed, revocable
letter of credit any time even without notice
to the beneficiary.
From the above review it is evident that
there is a lack of agreement between the legal
conception and business practice regarding
commercial credits in foreign trade. These
differences can be reconciled by a clearer definition of the terms used in financing foreign trade
and the acceptance of standard forms for the
application, contract, and the various types of
letters of credit themselves.
TOBACCO FINANCE.
The following is the second of a series of
articles describing the financing methods which
are employed in the tobacco industry. The
first article appeared in the September, 1921,
issue. Data were obtained partly through the
cooperation of the Federal Reserve Agent, in
the various districts, and partly direct from
RESERVE BULLETIN, February, 1921, p. 161.)
banks and persons interested in the industry
The applicant is sometimes required to indi- in various capacities, as well as from other
cate the route over which goods are to be Government organizations. To all of them
shipped in order to allow him some control acknowledgment is due.
over the time of the shipment and the freight
rate.
II. FINANCING THE GROWER—CIGAR TYPE
5. Description of merchandise.—Applications
DISTRICTS.
usually make only brief mention of the merThe financing of the grower in the cigar type
chandise, for it is against the interest of the
bank issuing the credit to overload it with a districts differs in important respects from that
detailed description of the imports. A number found in the manufactured and export type
of applications permit the importer to describe districts. Each will accordingly be treated in
such details concerning the goods, as quantity, turn and considered as a unit. Consideration
quality, packing, marks, and numbers. In of the operations of the large grower-dealer
interpreting these conditions, the banks are corporations of the Connecticut Valley will,
given wide latitude and they are permitted to however, be postponed until the general
refuse payment of drafts if the documents are subject of dealing in leaf tobacco is discussed.
not in strict conformity with the terms of the
A. ACCOMMODATION TO THE GROWER.
credit. This principle has recently been upheld in the case of the International Banking
The financial needs of the grower differ
Corporation v. Irving National Bank, cited in greatly as between the several districts.
the United States District Court, Southern Fertilizer bills are large in the Connecticut
District of New York, on May 10, 1921.
Valley, but are comparatively small in Penn-
OCTOBER, 1921.
FEDERAL, RESERVE BULLETIN.
sylvania, Ohio, and Wisconsin. Where diversified farming is practiced, as in Ohio and
Wisconsin, the outlay for commercial fertilizer
is much less than in the Connecticut Valley,
where the one-crop system is practiced year
after year and large quantities of commercial
fertilizer are needed. In Pennsylvania large
numbers of cattle are fed and manure is used
to a certain extent instead of commercial
fertilizer. In the Connecticut Valley, also,
hail insurance is used by the growers of the
sun-grown types, namely Havana seed and
broadleaf, and fire insurance by the large
growers of shade-grown tobacco and by growers of both classes after the tobacco is placed
in the sheds. In that district alone insurance
provides a considerable item of expense. Hail
and fire insurance are said, e. g., to be bought
in Wisconsin "at a very nominal figure.7'
As a general rule the growers in Ohio and
Wisconsin are well to do and need very little
financial assistance. In the Miami Valley,
however, states one authority, owners of small
farms where tobacco is practically the only
cash crop produced, generally need more or
less financial assistance to carry them from one
crop to the next, and likewise with tenant
farmers and croppers who reside in the village.
In Pennsylvania more help is needed, but less
than is required in the Connecticut Valley.
A banker in York County, Pa., comments that
" farmers in this section are small borrowers
for any of their needs. This, we think, is
evidenced by the large amounts deposited in
our county banks on certificate of deposit."
The grower in the cigar-type districts secures
his accommodation from one of three principal
sources—the bank, the fertilizer dealer, and, in
the Connecticut Valley and Wisconsin, the leaf
tobacco dealer. The landowner in some cases
advances funds or indorses for the tenant, who
then discounts the note at the local bank.
The store plays a minor role as a source of
funds in all the northern cigar-type districts.
No local stores in these districts specialize in
time business. It is reported that in Pennsylvania from 75 to 90 per cent of the growers pay
cash at the local store for all the goods. These
accounts are frequently settled on a monthly
basis. Sometimes tenants and croppers in
Ohio are assisted by the owner of the farm, and
they are stated in many cases to pay their
bills but once a year. In that State and Wisconsin, however, the business on the whole is
done very largely on a cash basis. The same
is true of the Connecticut Valley, although in
that section certain stores show a larger proportion of time business. Prior to about 15
years ago in that section and to about 5 years
1175
ago in Pennsylvania, however, sales on crop
time were frequent. In the case of such sales
the grower seldom gives either his note, or
security such as crop lien or chattel mortgage,
although from Pennsylvania the use of a bill of
sale at times is reported. Likewise, it is quite
generally the practice for the local store in
these districts to have only one price for both
time and cash payments. Such differences as
are reported in the Connecticut Valley and
Pennsylvania are from 5 to 10 per cent, or a
small discount for cash.
In the Connecticut Valley, Pennsylvania,
and Wisconsin the store in turn obtains such
accommodation as it requires from the local
bank rather than from wholesalers through purchases on time. There is no regular practice
on the part of wholesalers of carrying local
stores, and short terms, such as 30 days, are
usually specified. The note given the bank
may be secured by indorsement, or by collateral in the form of stocks and bonds, Liberty
bonds, or insurance policies. Several Pennsylvania banks located
at smaller points state
that some growers7 notes are discounted.
It is the general custom for the grower to
borrow funds from the local bank to pay the
store bill rather than to ask the local store to
carry him. While the amount of credit
granted the growers in Ohio and Wisconsin
and to a lesser extent in Pennsylvania is small
and often insignificant, so that it results in no
strain whatever on the local banks, it is true
that the greater part of the credit extended is
advanced by the local banks. In the Connecticut Valley, on the other hand, they play
an important role in furnishing funds to the
growers. Many growers in that district, however, find it possible to do without help from
the banks until harvest time. One Pennsylvania grower states that if a grower "can
not sell by April 1, which is 'our settling day'
in Lancaster County, he sometimes borrows
money from his bank." The principal finaning in Wisconsin, it is reported, is necessary
where the grower is unable to sell his crop before spring. The banks there ordinarily will
advance a sum equivalent to one-half of what
they consider the value of the crop, usually
upon mortgage or upon presentation of a warehouse receipt where packed by local cooperative concerns.
The grower in the Connecticut Valley,
Pennsylvania, and Wisconsin is not generally
granted a line of credit by his local bank, but
borrows from time to time as his needs require.
The smaller growers usually are granted these
loans in amounts ranging from $25 or $100 to
$1,000 or larger. The loan is usually made on
1176
RE&EttVE BULLETIN.
a straight note on four to six months' time,
which is often indorsed by the grower's wife or
neighbor. At times mortgages on farms or
growing crops may be given, but this is not the
prevailing practice. Other instances of collateral reported in the Connecticut Valley are
savings accounts or Liberty bonds. The use
of the latter, as well as stocks, was also reported in Ohio. The growers in the Connecticut Valley usually begin their heaviest borrowing in August and this continues through
September or until the harvesting season ends.
Applications by growers for loans at banks
then fall off rapidly, though the amount outstanding does not decrease materially until
January or February, when the grower commences to deliver his crop and receives funds
with which he settles bank obligations. Farmers' obligations as a general rule should reach a
low point by April 1. In the other cigar-type
districts liquidation likewise occurs during the
first quarter of the year, when the crop is
marketed.
It is stated from Pennsylvania that formerly
dealers deposited funds in a local bank to cover
purchases and drew against this deposit, but
the practice has been generally discontinued
and farmers are now given checks on Lancaster
banks, in which center most of the dealers are
located.
Due to the small bank borrowing on the
part of farmers in general in the cigar-type
districts, as well as to the diversified type of
agriculture and the fact that tobacco raising
(except in the Connecticut Valley) is subordinate on the individual farm to other activities,
little strain is placed upon the banks in connection with the financing of the tobacco crop.
They are therefore not under the necessity of
rediscounting paper with or borrowing directly
from other banks at certain seasons of the
year in order to finance the crop, as is conspicuously the case in the manufactured and
export-type districts. The nearest approach
is in the Connecticut Valley.
B. THE FERTILIZER MANUFACTURER AND
DEALER.
A considerable part of the accommodation
which the grower in the Connecticut Valley
requires is obtained from fertilizer dealers and
manufacturers through purchase on time. In
the other three districts, as noted above, the
matter is of minor importance. In the Connecticut Valley fertilizer is as a rule sold direct
by the manufacturers to the growers through
traveling salesmen, although some of the
larger companies have agents. The majority
of agents are reliable farmers, although in the
OCTOBER, 1921.
large towns and cities agricultural warehouses
and grain dealers handle fertilizer as a side line.
It is the general practice for manufacturers
and dealers to sell to growers on December 1
terms, with 5 per cent cash discount for payment on July 1, 4 per cent August 1, 3 per cent
September 1, etc. The July 1 payment may
be anticipated at the rate of one-half per cent
per month. Sales are largely on open account,
though notes are also taken. Sometimes, however, the grower may buy on a cash basis but
give an interest-bearing note for the time to be
taken. Considerable care is exercised by
manufacturers before granting these terms.
Since it cost from $50 to $150 an acre, averaging about $100, for fertilizer last year, the
amount of credit thus granted to growers is
very large in the aggregate. It has been estimated by one authority that only one-fourth
to one-third of the fertilizer sold in the Valley
is for cash on delivery, while another places
the figure at one-half, and states that the cash
business is largely in nonmixed fertilizer. It is
not customary for the growers to borrow from
the local banks to pay for fertilizer, but rather
to buy it on time and wait until the crop is
sold and delivered before paying for it. Local
agents transfer to the dealers or manufacturers
the accounts or the notes which they have
received from the growers. Dealers are supported by local banks, receiving credit largely
on their unsecured notes.
In Pennsylvania 75 per cent or more of the
fertilizer is apparently sold through dealers.
Terms reported differ somewhat, being either
5 per cent for payment July 1, as in the Connecticut Valley, or net July 1 for spring shipments and net December 1 for fall shipments.
Not over 50 per cent of the growers pay the
dealers cash, while from 10 to 20 per cent of
the dealers pay the manufacturers cash. One
manufacturer observes that July 1 terms are
equivalent on the average to 90-day terms.
Manufacturers do not take growers' notes indorsed by dealers. In Ohio such fertilizer as
is not handled by the farm bureau or grange,
which is bought by the farmer on a cash basis'
is stated to be sold largely through agents'
who indorse the notes of their customers and
turn them in to the companies. The Wisconsin grower, states one large buyer, "is too conservative ever to borrow money to buy fertilizer, " and one bank believes that 95 per cent
of the fertilizer sold there is for cash.
Large quantities of manure are used instead
of or with commercial fertilizer. The expense
of this is largely determined by the location.
In the Connecticut Valley alone, where a onecrop system largely prevails, does the grower
have to purchase practically all the manure
OCTOBER,
1921.
FEDEKAL EESERVE BULLETIN".
used. It is bought during the two plowing
seasons, when it can be plowed under immediately. The manure used in the Valley is
shipped from New York or Boston in carload
lots, and is then sold by local dealers. Settlement date for fall delivery is February or
March. Large quantities are sold on open
account. Manure for spring delivery is usually
sold on 30-day terms. No interest is charged
in either case until after the settlement date.
Manure dealers usually borrow from banks on
their unsecured note.
The farmers of Lancaster County, Pa.,
annually feed from 60,000 to 75,000 head of
steers, in addition to the dairy cattle they keep.
These steers are stabled in October and November and are usually fed until the following
April, May, or June, and are then sold. There
are thus no cattle to be taken care of during
the growing season of the tobacco crop. The
system provides for a rather constant demand
for labor throughout the entire year, and thus
enables most of these farmers to hire their labor
for the year. It was stated last year* that the
49 banking institutions in Lancaster County
advance annually to farmers for the purpose
of buying cattle in the fall of the year more
than $2,000,000. Over 60 per cent of these
loans are paid off when the tobacco crop is
delivered during January and February.
C. ADVANCES ON CONTRACTS.
As has been noted previously in section I,
in the Connecticut Valley the crop is usually
contracted for during July and August by the
leaf dealers. In such cases an advance is often
made, the amount varying with the grower's
needs and the dealer's willingness to put up
the funds. The usual advance in 1920 ranged
from $10 to $100 per acre, with an average of
probably $50 per acre. One large leaf dealer
reported that he advanced $12,800 to one
grower on 32 acres, while another stated that
he would lose heavily on a contract for 200
acres on which he had advanced $50 per acre.
Another dealer emphasized the risk in making
advances, because of the damage which frequently occurred in curing the tobacco. On
the other hand, the statement is often made by
growers that the contracts represent little more
than options given the dealer, in view of the
possibility of conflicting opinion as to whether
the tobacco is in the merchantable condition
specified in the 7 contract. No interest is
charged on dealers advances. Some contracts
in the Connecticut Valley, however, do not call
for an advance.
1177
In Pennsylvania no advance is made on the
small part of the crop which is contracted for
while growing. One dealer in Ohio states that
the last time advances were made to growers
in that district before their tobacco was received was in 1906, while
another dealer states
that "in our 30 years7 buying experience we
do not believe we have made over 50 advances,
and can also add that in many cases advances
made have been at our suggestion in order to
protect purchases made." In Wisconsin advances are made on crops purchased while in
the field or hanging in the shed. For years
this amount did not average to exceed $5 per
acre. In the last two or three years the amount
has increased until it now averages $25 per
acre, and additional advances are often asked
by the grower at tax-payment time, February
1, if the crop has not at that time been delivered to the purchaser. It is also noted by
dealers that the number of mortgages on tobacco crops is increasing.
SOME
ASPECTS OF ITALY'S
FINANCES.2
WAR
While Italy did not enter the war until May,
1915, a study of Italian war finances should
begin with the summer of 1914, as the 10
months of neutrality must be regarded as a
period of preparation for an eventual participation in the war, so far as public finances are
concerned. A comparison of the annual budgets
for the two fiscal years ending June 30, 1914,
and the same date in 1915, shows that the combined expenditures for the army and the navy,
which amounted to about 332 per cent of the
total effective expenditures in 1913-14, formed
over 58 per cent in 1914-15. While the total
expenditures had increased about 100 per cent,
those for the two military departments increased nearly 250 per cent. Accordingly,
Italy had to resort to the policy of extraordinary financing long before she became an
actual belligerent. Thus, as early as August
and September, 1914, the first decrees were
issued providing for an expansion of the banknote circulation and allowing advances of the
banks of issue to the Treasury to be increased
beyond the normal limits. In January, 1915,
2
Prepared under the supervision of Alexander Gourvitch Division of
Analysis and Research. The principal sources on which this article is
based are theannual financial statements of the Minister of the Treasury,
the annual reports of the Banca d'ltalia, Riccardo Bachi's Italia Economica for the years 1914 to 1919, and Cenni Statistici sul Movimento Economico
dell'Italia,published annuallyby the BancaCoinmercialeltaliana.
8
The figures and the classification of effective receipts and expenditures for the years 1914-15 to 1918-19 used in this article are those of the
Ministry of the Treasury as corrected by Prof. Cesare Bachi in the
annual issues of Riccardo Bachi's Italia Economica. For 1919-20 the
provisional figures and the classification of Minister of the Treasury
i E. K. Hibshman: The Relation of Cattle Feeding to the Tobacco Meda, in his annual statement to the Chamber of Deputies, on December
Industry. Address before the Connecticut Tobacco Growers' Associa- 19; 1920, have been corrected, as far as this was practicable, in accordance
with Bachi's method.
tion, 1920.
1178
FEDEBAL KESERVE BULLETIN.
OCTOBER, 1921.
a national loan (essentially a mobilization loan) 76,000,000,000 lire, having been entirely obwas floated, which opened the series of war tained through loans.
loans.
GRAPH A.
During the six years extending from July 1,
1914, to June 30, 1920, Italy's total effective
ANNUAL REVENUES
expenditures, as shown by Table 1, amounted
FROM
to about 114,000,000,000 lire, while the effecVARIOUS SOURCES IN ITALY
tive receipts for the same period aggregated BILLIONS
OF
LEGEND
about 43,000,000,000 lire, thus leaving a deficit LIRE
BANK NOTE ADVANCES
of 71,000,000,000 lire.
STATE CURRENCY NOTES
Y7777X SHORT TERM TREASURY BILLS
13 AND 5 YEAR TREASURY BONOS
TABLE 1.—EFFECTIVE RECEIPTS AND EXPENDITURES IN
THE FISCAL YEARS 1914-15 TO 1919-20.
25
[In millions of lire.]
Year.
1914-15
1915-16
1916-17
1917-181918-19
1919-20
Total
Receipts.
CREDITS
Expenditures.
I NATIONAL LOANS
I EFFECTIVE RECEIPTS
:—fflK—
25
Deficit.
2,560
3,707
5,346
7,533
9,676
14,234
5,428
10,557
17,146
25,329
32,454
23,121
2,868
6,850
11,800
17,796
22,778
8,833
43,056
114,035
70,979
20
15
The statement of effective expenditures, however, does not include the disbursements on
account of the amortization and refunding of
the public debt nor certain, other expenditures.
10
A great number of disbursements which were
made in the form of advances by the Treasury
or by the banks of issue for the account of the
Treasury to various organizations and administrations do not figure in the budget statements at all. The most important expenditures
of this sort have been in, connection, with the
food supply and with other economic activities
controlled, regulated, or subsidized by the Government. While the aggregate amount of such
disbursements can not be ascertained, they - O account to a large extent for the growth of
Italy's floating debt and note circulation. I t
is possible to gain an idea of their importance, TABLE 2.—ANNUAL REVENUES FROM THE SEVERAL
however, from the fact that the net loss incurred SOURCES IN THE FISCAL YEARS 1914-15 TO 1919-20.
[In millions of lire.]
by the Treasury in, 1919-20 in, connection, with
the food supply administration alone (which
1914-15 1915-16 1916-17 1917-18 1918-19 1919-201
was not included in the budget of that year)
has been estimated by the Minister of the
Effective receipts
14,234
2,560 3,707 5,346 7,533 9,676
Treasury at over 6,000,000,000 lire.
Domestic funded3 loans 2.. 970 3,199 2,586 3,587
8,759
2,276 3,260 5,936 7,735
Foreign credits
1,060
A nearer approach to a correct estimate of the Three
andfiveyear Treastotal expenditures can be obtained from Table ury bonds *
505 1,807 1,100 3,168
200
1,758
556 3,438 3,500 8,043
Short-term Treasury bills.
21
2 and graph A, in which an attempt has been State
369
currency notes
267
325
653
409
16
545 1,137 3,187 1,544
1,6
2,3
made to show for each fiscal year the amount of Bank-note advances
the revenues derived by the Treasury from the
5,631 11,157 17,899 '25,500130,5 5 28,134
Total.
several sources. The total for the six years 1
figures.
appears to be about 119,000,000,000 lire, of 2 Provisional
actually received in cash.
which about 43,000,000,000 lire, or 36 per cent, 34 Amounts
Par value.
value at par.
have been effective receipts, the rest, about &Nominal
Approximate figures.
OCTOBER,
1179
FEDEKAL RESERVE BULLETIN.
1921.
As a result the nominal capital value of
Italy's public debt increased from 15,719,000,000 lire on June 30, 1914, to 96,121,000,000 lire
on June 30, 1920, or over 80,000,000,000 lire.4
TABLE 3—ITALY'S
PUBLIC
ON
DEBT
ON J U N E
J U N E 30,
30,
1914,
AND
1920.
[In millions of lire.]
June 30, June 30,
1914.
1920.
increase of the domestic debt, funded loans
account for about 35,000,000,000 lire, floating
debt obligations for nearly 13,000,000,000 lire,
and note circulation for over 12,000,000,000
lire. Table 4 and graph B show the movement
of the public debt for each of the sixfiscalyears
under consideration, taking into account all
refunds and conversions.
TABLE
4.—ITALY'S PUBLIC
DEBT
AT T H E
END
OF
EACH
F I S C A L Y E A R F R O M 1913-14 TO 1919-20.
[In millions of lire.]
Funded debt
13,733
48,881
380
9,216
1,107
4,374
513
20,266
1,487
34,369
499
2,538
10,333
499
12,871
15,719
96,121
Domestic debt.
Floating debt:
Short-term Treasury bills
3 and 5 year Treasury bonds and long-term
Treasury bonds
Current accountl of the Cassa Depositi
Foreign credits
Note circulation:
State currency
Bank notes advanced
Total public debt
1
Date.
June 30:
1914
1915
1916
1917
1918
1919
1920
1
Par value.
Funded. Floating.
13,733
14,691
18,231
22,176
28,242
28,335
48,881
Foreign
debt, i
Note
circulation.
Total.
499
2,379
3,293
4,755
8,595
10,548
12,871
15,719
18,707
26,146
39,036
58,236
79,367
96,121
1,487
1,637
2,346
6,569
9,928
21,278
14,103
Total
debt.
15,719
18,707
26,146
39,036
58,236
79,367
96,121
2,276
5,536
11,471
19 206
20,266
At par value of the lira.
It should be noted that the figures for
This increase is accounted for to the extent
of over 20,000,000,000 lire by the foreign debt, foreign loans as given in Tables 2, 3, and 4 are
which is entirely a product of the war. In the based on the par value of the lira. The actual
* As the prewar debt was reduced during that period from 15,719,- value in paper lire of the amounts received by
000,000 lire to 14,346,000,000 lire, this means that the war loan operations the Treasury through foreign credits, at the
have amounted to 81,783,000,000 lire in nominal capital value, the foreign
rate of exchange prevailing at the time they
debt being counted at par.
GRAPH c.
GRAPH B.
CSRCUL-ATION OF BANK NC)TES
AND OF
ClJRRENGY NOTES IM STALY
M_Y'S PUBLIC DE BT
- -
—
s TATE
TO™ L
PUBLIC DEBT (Do/nesf/c and F
ore/gn Combinsd')
No te O'rculat/on)
T O T A L DOMESTIC DEBT (Including
FUND ED A N D FLOATING DOMESTIC DEE 7 COMBINE D
FUND ED DEBT
BILLIONS
OF LIRE
90
/
80
/
/
70
/
/
60
/
/
/
50 ,
40
/
/
30
/
/ J
// / y
//
/
BILLIONS
OF LIRE
BILLIONS
BILLIONS
OF LIRE
6 F LIRE
22
22
/
90
//
/
/
// /
/
//
s
80
20
20
/
/
70
12
50
/
10
. 40
12
•
s
10
8
y
6
^
If
/ /
8
/
...
30
4
/ > ——
20
*-^m
10
2
2
t_J J.
10
I
I
I
I
I
I
I
I
I
I
I
I
i
.
.
.
I
I
I
I
j
i
i
i
i
— r> —
c
DATE
— 0
^g E 1914
/
r
j
20
J
14
j
/
j
16
i
/
60
18
//A
16
14
/
..."
J /
/
18
s
y
y
y
/
/
J]
— T O T A L NOT"E CIRCULATION (Bank Notes &SA7fe Notes LCombined)
— T O T A L BAN < NOTES (Commercial Circulation ScA dvancest 7 TreasuryA
•••BANK NOT ES. COMMERCIAL CIRCULATION
1915
1916
1917
1918
1919
oE
1920 J£JJ
YEAR
1914
1915
1916 1917
1918
1919 1920'21 YEAR
1180
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
were obtained, was over 28,000,000,000 lire. (4) Foreign loans, 20,000,000,000 lire, or 17 per cent.
Three and 5 year Treasury bonds, 9,000,000,000 lire
Much greater, of course, is the difference or (5)
8 per cent.
between the par value of the capital of the (6)
Short term Treasury bills, 16,000,000,000 lire or 13
foreign debt and its amount at the present rate per cent.
(7) State currency notes, 2,000,000,000 lire or 2 per cent.
of exchange.
It should also be observed that the so- (8) Bank note advances, 10,000,000,000 lire or 8 per cent.
called "effective receipts" are not identical
TAXES AND MONOPOLIES.
with ordinary revenues. Before the war the
"effective receipts" consisted almost entirely
Since the beginning of the war it has been
of revenues from taxation and monopolies.
Italy's
declared policy to meet at least the
This is not the case at the present time, however, as revenues of a miscellaneous nature growing charges of the public debt by inhave come to be of considerable importance. creased taxation. In fact, the revenues from
The so-called "minor" or miscellaneous reve- taxation and monopolies, after a decline in
nues which formed on the average, in the four 1914-15 due chiefly to the falling off of cusprewar budgets, some 8 per cent of the total toms receipts, have been steadily increasing,
effective receipts, amounted to over 38 per and this increase has been much greater than
cent of the effective receipts in 1918-19. To the growth in the public debt charges. While
a great extent these miscellaneous receipts the latter increased during the six years under
consist of refunds and temporary entries consideration by about 3,000,000,000 lire
effected by the Treasury for the various de- (from about 500,000,000 lire to about 3,500,partments. These have increased very con- 000,000 lire), the yield from taxes and monosiderably during the war. They also include polies amounted in 1919-20 to 7,700,000,000
a number of revenues of an extraordinary lire, against 2,300,000,000 lire in 1913-14, thus
nature. Among the important items of this increasing about 5,400,000,000 lire.
character are the profits accruing to the
Treasury from the sale, at the current rate, of TABLE 6.—REVENUES FROM TAXATION AND MONOPOLIES
IN EACH FISCAL YEAR FROM 1913-14 TO 1919-20.
foreign exchange obtained from foreign loans
which were placed at par. Another source of
[In millions of lire.]
revenue has been the interest on deposits
abroad based on the same loans. Since the
Taxes Taxes Indus- Comarmistice the revenues from the sale of war
Public
Direct on con- on
trial mercial serv- Other.2 Total.
material, which amounted to about 1,500,000,taxes. sump- busi-1 mono- monotion. ness. polies. polies. ice.
000 lire in 1919-20, have also been included
among the minor recipts.
TABLE 5.—EFFECTIVE RECEIPTS, 1910-11 TO 1919-20.
[In millions of lire.]
Year.
Revenues
from taxation and
monopolies.
Total
Minor effective
receipts. receipts.
1913-H.
1914-15.
1915-16.
1916-17.
1917-18.
1918-19.
1919-20 3
541
592
721
1,058
1,532
2,066
2,330
625
465
641
922
970
1,033
1,208
341
399
538
692
937
1,361
550
576
704
851
1,136
1,529
1,995
447
211
218
257
307
326
356
340
46
17
25
102
20
17
16
2,311
2,209
2,747
3,778
4,676
5,938
7,697
1
Inheritance tax, stamp and registry duties, luxury taxes, etc.
* Public domain, state railways, and miscellaneous.
3 Provisional figures.
This increase has been attained through the
enactment of new taxation measures, which have
differed widely in importance and effectiveness.
As may be seen from Table 6, the largest
increase has been effected in direct taxes,
which yielded 2,330,000,000 lire in 1919-20,
as compared with 541,000,000 lire in 1913-14.
Italy's sources of revenue for the six years To the extent of 980,000,000 lire this increase
under consideration may thus be classified in was due to the excess-profits tax, from which
eight groups, the respective yield from which over 2,300,000,000 lire have been obtained
may be estimated approximately as follows in since its enactment in 1916. Nearly 65,000,000
proportion to the total receipts, the foreign lire were obtained in 1919-20 from the ftax
loans being counted at par:
on capital increments due to the war, and
(1) Taxation and monopolies, 27,000,000,000 lire, or 23 about the same amount from the supertax on
per cent.
incomes of over 10,000 lire, both taxes being
(2) Minor receipts, 16,000,000,000 lire, or 13 per cent.
(3)JDomestic funded loans, 19,000,000,000 lire, or 16 per enforced for the first time that year. An aggregate of over 1,000,000,000 lire was obtained
cent.
1910-11 to 1913-14 (annual averages)
1914-15
1915-16
1916 17
1917-18
1918 19
1919-20 (provisional figures)
2,243
2,209
2,747
3,778
4,676
5,938
7,697
196
351
960
1,568
2,857
3,738
6,537
2,439
2,560
3,707
5,346
7,533
9,676
14,234
OCTOBER, 1921.
1181
FEDERAL RESERVE BULLETIN.
during the four years 1916-17 to 1919-20 from
the so-called "war centimes contribution/7 an
emergency tax which was established as a levy
on all payments received from the Government
and as an addition to all direct taxes, the rate
having been several times revised5 and having
varied between 1 and 3 per cent. The rates
of the various registry and stamp taxes have
been repeatedly advanced and new ones established, inheritance taxes have been increased,
and a number of luxury taxes have been created. These various changes resulted in an
increase in the yield from the so-called " taxes
on business" of 1,023,000,000 lire between
1913-14 and 1919-20. The increase in the
revenue from industrial monopolies has been
almost entirely due to gradual advances in the
sale prices of tobacco. The receipts from this
source amounted to 1,569,000,000 lire in 191920, as compared with 350,000,000 lire in 191314. The Government monopolies of the sale of
coffee, coffee substitutes, and electric lamps,
which was established in 1919, produced a revenue of 447,000,000 lire in 1919-20 and
410,000,000
lire in the first 10 months of 192021.6 Otherwise taxes on consumption have
been increased relatively less than other classes
of taxes, the yield amounting to 1,209,000,000
lire in 1919-20, as compared with 538,000,000
lire in 1913-14. The chief increases have been
those in import duties and in taxes on sugar
and liquors.
A number of new fiscal measures have been
enacted in the fiscal year 1920-21. The levy
on capital was enforced for the first time, and
the' law for confiscating excess war profits
became effective in April, 1921. Inheritance
taxes and taxes on automobiles have been
revised upward, and prices of tobacco have
again been advanced. In addition, the law of
February 27, 1921, enacted with a view to
meeting the deficit on account of the grain
administration, provides for the payment of the
annual installments of the capital levy one year
in advance (the 1922 installment being paid
in 1921), raises the tax on wine from 10
lire to 30 lire per hectoliter, and doubles the
rate of the supertax on incomes of over 10,000
lire.
The revenues from taxes and monopolies in
the fiscal year 1920-21 have been provisionally
estimated by the Minister of the Treasury at
11,200,000,000 lire, which is an increase of
about 3,500,000,000 lire over the preceding
year. In this increase, direct taxes account
for about 1,700,000,000 lire and industrial
monopolies for over 1,000,000,000 lire.
5 At present this tax is levied only as an addition to direct taxes, at a
rate of 1 or 2 per cent,
e This monopoly has recently been abolished.
NATIONAL
LOANS.
Long-term loans were resorted to as a means
of financing the war before floating-debt operations were undertaken on a large scale, the
first national loan having been placed as early
as January, 1915. Since that time six national
loans have been floated, yielding in the aggregate over 19,000,000,000 lire in cash. As may
be seen from Table 7, the first three loans were
of the redeemable type, maturing in not less
than 10 and not more than 25 years, and not
convertible before 10 years. Since 1917 perpetual loans assured against conversion for a
number of years have been used. Beginning
with the third loan, floated in 1916, considerable facilities for conversion have been offered
to holders of preceding loans and of Treasury
bonds, and the floating of national loans since
that time consisted to a great extent of
funding operations. A floating debt aggregating about 12,000,000,000 lire has thus been
consolidated, including about 1,000,000,000
lire of prewar obligations of the Treasury in
the form of 5-year 4 per cent bonds, which were
funded at or shortly before maturity by conversion into the consolidated loans. In addition to this nearly 2,000,000,000 lire of the first
two war loans were converted into the third
and subsequent loans, while the nominal capital of the outstanding 5 per cent redeemable
bonds of the third loan has been reduced from
4,066,000,000 lire to 1,249,000,000 lire through
conversions into the new 5 per cent^consolidated loan.
TABLE 7.—ITALY'S SIX WAR LOANS.
Date of issue.
Maturity.
1. January, 1915. 10 to 25 years,
nonconvertible
before 10 years.
2. July, 1915....
do
3. January, 1916.
do
4. January, 1917. Perpetual, nonconvertible before 1931.
5. January, 1918.
.do
.
.
6. January, 1920. . . d o
Amount
sub- Actual
scribed yield
in
Nomi- (nominal
cash.
Interest nal
rate. price of capital).
issue.
In millions of
lire.
Per
cent.
*i
97
1,000
970
4i
5
5
95
97.50
90
1,147
4,066
7,102
1,071
2,127
2,586
5
5
86.50
87.50
6,258
20,591
3,587
8,759
On March 31, 1921, the last date for which
information is available, the six national loans
represented an aggregate nominal capital of
over 36,000,000,000 lire. The aggregate annual
debt charge on that date amounted to about
1,800,000,000 lire.
1182
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
6.38 per cent. A premium of 10 centimes per
100 lire is granted to holders of bonds maturing
in from 9 to 12 months if they renew them at
maturity for a new period of at least 9 months,
and a premium of 75 centimes per 100 lire
to those who convert their short-term bills
into 5-year Treasury bonds.
FLOATING DEBT.
The legal limit of the issue of short-term bills,
which was set at 400,000,000 lire for the year
On June 30, 1914, Italy's floating debt 1913-14, has been gradually advanced by a
consisted of 380,000,000 lire of so-called Buoni series of decrees. The increase in the circulaOrdinari, or Treasury bills, running for 12 tion of bills has been continuous since 1916,
months or less, and of about 1,100,000,000 except at times when subscriptions were made
lire of 5-year 4 per cent Treasury bonds, the to national loans, when the circulation was
latter having been issued chiefly to meet the temporarily checked.7
requirements of the State railways and those
The same decree of May 5, 1916, which was
arising from the Libyan War. As is apparent mentioned
above, created two series of Treasfrom Table 2, a total of about 24,000,000,000 ury bonds of
a new type, namely, 3 and 5 year
lire, or about 20 per cent of the total receipts, bonds
bearing
5 per cent, which were likewise to8
was obtained in the following six years through be issued to bearer
in small denominations.
the issue of these types of paper, namely, These bonds had the
same advantage as the
15,500,000,000 from short-term bills and
bills as regards immunity from
8,500,000,000 from three and five year bonds. short-term
taxation and convertibility into national
It was not until the fiscal year 1916-17 that loans. Interest was made payable 6 months in
floating debt operations began to play an advance, and in addition a premium of 1.50 per
important part in the financing of the war. cent was granted to purchasers of the new 5Twenty-one million lire of short-term bills year bonds, and one of 0.75 per cent to those of
were placed in 1914-15 and 556,000,000 lire 3-year bonds. The premiums have been gradin 1915-16, including the
"special bills for ually raised since that time, and in October,
army supply payments/ ; which were created 1920, amounted to 2.25 per cent on 3-year
by a decree of October, 1915, and were similar bonds and to 4.50 per cent on 5-year bonds.
to the ordinary Treasury bills with regard Additional premiums are granted for the conto interest and maturity. In the same two version of maturing bonds into new issues.
years, 5-year 4 per cent bonds were placed to
an aggregate amount of 246,000,000 lire. ,
TABLE 8.—CIRCULATION OF SHORT-TERM TREASURY BILLS
On May 5, 1916, a decree was issued which AND OF 3 AND 5 YEAR 5 PER CENT TREASURY BONDS,
was designed to make the floating debt issues ON JUNE 30 OF EACH YEAR FROM 1914 TO 1920.
popular and to facilitate their placement.
[In millions of lire.]
With regard to short-term bills, in addition
to the old type of registered bills of large
and 5
Short- 3year
5
denominations, provisions were made for the
term
per cent Total.
bills.
issuance of bills of small denominations, which
bonds.
were to be sold to the public at the banks of
issue, at the more important private banks, 1914
380
401
401
at savings banks, post offices, bureaus of 1915
1916
785
459
1,244
4,120
1,671
5,991
revenue collection, etc. These were dated 1917
1918
7,004
2,553
9,557
from 3 to 12 months and were declared exempt 1919
15,046
5,721
20,767
9,216
4,338
13,552
from taxation. Interest on them was paya- 1920
ble in advance; they were made eligible as
collateral at banks of issue and convertible
From Table 8, which shows the circulation of
at par (with interest discounted) into national short-term bills and 3 and 5 year Treasury
loans. The interest rate was advanced at bonds 9 at the end of each fiscal year from 1914
that time from 2£, 24, and 3 | per cent to 3, to 1920, after deducting all conversions and
4|, and 4^ per cent, according to maturity. withdrawals, it may be seen that the greatest
This increase was followed by further advances,
so that in October, 1920, the nominal rates i As a rule, the interest rate on short-term bills was reduced during
when national loans were floated.
ranged from 5 per cent to 6 per cent and the the«Inperiods
October, 1920, they ranged from 200 to 50,000 lire.
actual rates (taking into account the advance » The 5-year 4 per cent Treasury bonds had been completely extinguished by the end of October, 1920, partly through refunding, but to a
payment of interest) from 5.06 per cent to much
larger extent through conversion into national loans.
Six NATIONAL LOANS.
Millions
of lire.
First and second loans (4.50 per cent redeemable)..
250
Third loan (5 per cent redeemable)
1, 249
Fourth, fifth and sixth loans (5 per cent consolidated)
34, 522
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
1183
expansion of the circulation occurred in 1918— T A B L E 9.—CIRCULATION OF B A N K N O T E S AND OF STATE
N O T E S FROM J U N E 30, 1914, TO MARCH 31,
19. On June 30, 1919, there were outstanding CURRENCY
1921.
15,046,000,000 lire of short-term bills and
[In millions of lire.]
5,721,000,000 lire of 3 and 5 year 5 per cent
bonds. The maximum point was attained
Bank notes.
State
somewhat later, the circulation on October 31,
Total
currency note cirCommer- I Advances |
1919, consisting of 15,961,000,000 lire of shortnotes. culation.
cial circu- to the
Total.
term bills and 6,745,000,000 lire of 3 and 5 year
lation. Treasury.
bonds. A considerable contraction of the
floating debt took place early in 1920, as a June 30, 1914
2,199
2,199
499
2,698
Sept. 30, 1914
2,484
337
2,821
555
3,376
result of conversions into the sixth national Dec.
31, 1914
2,201
735
2,936
657
3,593
31, 1915
2,285
827
3,112
673
3,785
loan, 5,614,000,000 lire of short-term bills and Mar.
June 30, 1915
2,243
1,613
3,856
766
4,622
3,141,000,000 lire of 3 and 5 year bonds having Sept. 30, 1915
2,139
1,676
3,815
964
4,779
Dec. 31, 1915
1,899
2,069
3,968
1,082
5,050
been delivered in payment for subscriptions. Mar. 31, 1916
1,790 .
2,103
3,893
1,097
4,090
30, 1916
2,158 i
2,158
4,316
1,135
5,451
Furthermore the success of the loan permitted June
Sept. 30,, 1916
2,274
2,288
4,562
1,230
5,792
the withdrawal from circulation of over 200,- Dec. 31, 1916
2,458
2,554
5,012
1,317
6,329
31, 1917
2,435
2,746
5,181
1,411
6,592
000,000 lire additional short-term bills. On Mar.
June 30, 1917
2,521
3,295
5,816
1,460
7,276
Sept. 30,,1917
2,432
4,042
6,472
1,595
8,067
June 30, 1920, the total floating debt amounted Dec.
1917
2,592
5,833
8,425
1,841
10,266
to about 14,000,000,000 lire, showing a net Mar. 31/
31, 1918
3,378
5,656
9,034
1,981
11,015
30, 1918
3,590
6,482
10,072
2,113
12,185
increase of about 12,600,000,000 lire over the June
Sept. 30, 1918
4,001
6,883
10,884
2,200
13,084
Dec. 31, 1918
4,585
7,166
11,751
2,337
14,088
prewar debt.
Mar. 31, 1919
3,953
7,764
11,717
2,429
14,146
After the conclusion of the sixth national loan June 30, 1919
4,255
8,026
12,281
2,522
14,803
30,, 1919
4,735
9,250
13,985
2,531
16,516
the floating debt was expanded again. The Sept.
Dec. 31, 1919
5,652
10,630
16,282
2,533
18,815
31, 1920
5,478
10,454
15,932
2,538
18,470
sale of Treasury bonds was greatly facilitated Mar.
June 30, 1920
7,484
10,333
17,817
2,538
20,355
by the fact that they are the only securities Sept. 30,, 1920
. 8,231
10,682
18,913
2,546
21,459
Dec. 31, 1920
8,988
10,743
19,731
2,546
22,277
explicitly exempted from compulsory regis- Mar.
31, 1921
9,234
9,531
18,765
2,546
21,311
tration. A new type of Treasury bonds, namely,
7-year bonds bearing 5 per cent interest, have
The advances to the Treasury have been of
been offered for sale since February, 1921.
three
distinct kinds—(1) so-called " statutory "
Until August 15, the price of issue was 91.50,
(2) extraordinary advances, and (3)
plus the accrued interest from February 15 to advances,
advances
to
the Treasury for loans to third
the date of sale; after August 15 the rate was parties.
to be advanced. Lottery drawings will take
(1) Under the statutes governing the Italian
place twice a year, and a total of 2,545,000
lire will be paid annually in premiums rangin banks of issue, they are required to make adfrom 1,000 lire to 1,000,000 lire. By the eni vances to the Treasury, at an annual interest
of June, 1921, the combined amount of out- rate of 1.50 per cent, the circulation on account
standing short-term bills and 3, 5, and 7 year of such advances being covered by a metallic
reserve to the extent of one-third. Before the
bonds was about 25,500,000,000 lire.
war the maximum legal limit of these "statutory" advances was fixed at an aggregate
NOTE CIRCULATION.
amount of 155,000,000 lire for the three banks,
but no advantage had been taken by the
As is shown by Table 9 and graph C, the Treasury of this source of revenue, and conaggregate total circulation of the three banks sequently there were no bank notes in circuof issue (Banca d'ltalia, Banco di Napoli, and lation on account of advances to the Treasury
Banco di Sicilia) increased from 2,199,000,000 on June 30, 1914. By a decree of September
lire on June 30, 1914, to 17,817,000,000 lire 19, 1914, the legal limit was raised to 310,000,on June 30, 1920, or 15,618,000,000 lire. To 000 lire, and later was advanced to 485,000,000
the extent of 10,333,000,000 lire the increase lire; the actual circulation on that account has
was due to advances made by the banks of been maintained at the latter figure since May,
issue to the Treasury.
1915.
1184
FEDEKAL, BESERVE BULLETIN.
(2) In addition to advancing the limit of
statutory advances, the banks of issue have
been authorized to make extraordinary advances to the Treasury, which are guaranteed
by special Treasury bonds issued to the several
banks and bearing an annual interest of 0.25
per cent. The bank notes issued on that
account are exempted from all reserve requirements. The decree of June 27, 1915, which
contained the first provisions to that effect,
fixed the limit of extraordinary advances at an
aggregate of 200,000,000 lire for the three
banks, but the limit has been gradually raised,
and the circulation on this account now
amounts to 4,850,000,000 lire. In addition,
two special advances above this limit were
authorized in 1919. One advance of a maximum amount of 1,000,000,000 lire was designed to enable the Treasury to extinguish
at maturity some of the Treasury bills which
had been discounted directly by the banks of
issue. This was done with a view to the gradual withdrawal from circulation of a corresponding amount of notes which had been advanced on the bills by the banks, and had been
charged to the account of commercial circulation. Another advance, which on December
31, 1920, amounted to over 800,000,000 lire,
was intended for the special purpose of withdrawing Austro-Hungarian currency in Venetia
and in the annexed territories.
(3) Finally, since August, 1914, a series of
decrees have been issued authorizing the banks
of issue to make advances to various administrations and institutions through the Treasury
and under its guaranty, and to issue notes for
that purpose, the issues being free from all
reserve requirements. Originally, these provisions were designed to meet certain limited
and temporary needs, such as to enable the
savings institutions of the country to withstand the rush of depositors during the critical
period that followed the outbreak of the European war. For this purpose advances to the
Treasury were authorized for loans on collateral to various savings funds, and another
series of advances for loans, likewise secured
by collateral, to the so-called Cassa Depositi e
Prestiti (Institute of Deposits and Loans),
which administers the postal-savings funds, to
en ble it to meet the demand of depositors,
and also to grant loans to provincial and
communal administrations for the carrying
out of public works. The advances made
by the banks for the ordinary savings funds,
the maximum amount of which had been
fixed at 300,000,000 lire, were gradually
refunded, and the notes issued on that account had been almost entirely withdrawn
from circulation by the end of 1920. On the
contrary, the amount of notes issued for ad-
OCTOBER, 1921.
vances to the Cassa Depositi has been maintained at 700,000,000 lire since May, 1915,
although as early as the summer of 1915 the
situation of the postal savings had improved to
such an extent that relief measures were no
longer necessary. Of the 700,000,000 lire
advanced by the banks, only a part (not much
more than 300,000,000 lire) has been actually
remitted to the Cassa Depositi; the rest, serving to maintain the current account of that
institution with the Treasury, is held by the
latter. Gradually, as the war progressed,
bank-note advances to the Treasury for loans
to third parties were used more and more extensively and for an increasing variety of objects, advances having been authorized for
such widely different activities as railway construction by concessionaires, cooperative credits, rural credits, Government subsidies to the
silk trade, restoration of live stock to the invaded regions, loans to victims of the war
having claims for reparation from the enemy,
purchase of war materials, and most important
of all, the requisition and importation of grain*
On December 31, 1920, the note circulation
on account of advances of this class, exclusive
of the 700,000,000 lire advanced for the Cassa
Depositi, amounted to 2,900,000,000 lire. As
these advances have been made for specific
operations, they are regarded as of a temporary
nature. As a matter of fact the total of these
advances outstanding has fluctuated and some
of them have been refunded. Thus, the
384,000,000 lire advanced to the Central
Office for the Silk Market, which was established at the end of 1918 when the market
was facing a collapse, had been completely
refunded by the end of 1919. At the end
of 1920 the advances to railway concessionnaires had been repaid, those to ordinary savings funds had been reduced to
3,000,000 Ere and those for the purchase
of war materials to 4,000,000 lire. Advances to the food administration for the purchase of grain, which constitutes by far the
most important item (about 2,300,000,000 lire
as compared with a total of 2,900,000,000 lire
on December 31, 1920), have naturally been
alternately expanded and contracted as the
acquisition and the sale of grain have proceeded. They may now be expected to be
permanently reduced or completely extinguished as a result of the recent provisions for
the financing of the grain supply, and the
changed condition of the grain market. On
the other hand, the advances to the Federal
Institute of Credit for the Reconstruction of
the Venetian Provinces for the granting of
loans to victims of the war have increased
from 155,000,000 lire on December 31, 1919, to
320,000,000 lire on December 31, 1920, and
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
1185
their refund or further expansion is entirely
FOREIGN CREDITS.
dependent upon the settlement of the reparations question.
On June 30, 1921, Italy's foreign debt
The aggregate circulation for the account of amounted to 20,858,000,000 lire, when calcuthe Treasury, as may be seen from Table 9 lated at par value of the lira, with an annual
and graph C, increased continuously until the interest charge of 1,168,000,000 lire. This
end of 1919, particularly large increases hav- debt, which is entirely the result of war-time
ing taken place in 1917, following the dis- credit operations, and is constantly increasing
aster of Caporetto, and in 1919 when new re- owing to the deferment of interest payments,
quirements arose in connection with the food consists, on the one hand, of credits of the
supply, the reparation of war damages, and United States Treasury (about 8,400,000,000
the exchange of Austro-Hungarian currency. lire), and, on the other hand, of the so-called
In 1920 it remained practically stationary, the " special bonds placed abroad" since the sumgrowth of the total circulation being due almost mer of 1915. The latter, which represent
exclusively to the expansion of commercial cir- credits in foreign currency for the financing of
culation. In the first months of this year the imports, have been almost entirely obtained
circulation for the account of the Treasury from the British Treasury; the only important
began to decrease, with the result that there has exceptions seem to be the $25,000,000 loan
been a contraction of the total bank circulation, obtained in 1915 in New York from Lee, Higin spite of the continued expansion of the com- ginson & Co., which was refunded in 1920, and
mercial circulation. On June 20, 1921, ad-the public loan floated in the United States in
vances to the Treasury amounted to about 1920, which produced about $10,000,000.
9,000,000,000lire, which was a decrease of nearly
The annual movement of the foreign debt
2,000,000,000 lire since December 31, 1920.
for each fiscal year from 1914-15 to 1919-20 is
In addition to notes advanced by the banks, shown by the following table:
the Treasury's own issues increased during
the period under consideration from 499,000,000
FOREIGN LOANS IN EACH FISCAL
lire to 2,538,000,000 lire. The latter figure TABLE 10.—ITALY'S
YEAR, FROM 1914-15 TO 1919-20.
included 2,269,000,000 lire of ordinary state
[In millions of lire.]
currency notes, the legal limit of which had
been gradually advanced from 500,000,000 lire
to 2,300,000,000 lire. The gold reserve against
Increase in foreign debt at par value
of the lira.
state note circulation, which on June 30, 1914,
Estimated
amounted to 132,000,000 lire, composed exreceipts in1
Fiscal year.
United
clusively of gold coins, amounted on Dec.
paper
lire.
States Gov- Other
Total.
ernment
loans.
31, 1919, to 163,000,000 lire, and was almost
credits.
entirely made up of certificates of deposit of
foreign banks of issue and of foreign Treasury 1914-15
0
0
0
0
bonds payable in gold. On the other hand, 1915-16
2,276
2,679
2,276
3,260
4,276
2,742
518
1916-17
there were outstanding about 269,000,000 lire 1917-18
5,935
9,293
3,086
2,849
7,735
10, 283
3,045
4,690
of the so-called " Buoni di Cassa," special notes 1918-19
1,060
1,536
719
341
issued since September, 1917, for the purpose 1919-20
28,067
20,266
11,868
8,398
Total
of withdrawing silver coins from circulation.
They were covered by a silver reserve to the 1 At rate of exchange prevailing at the time when the several loans
extent of about 180,000,000 lire.
were obtained.
1186
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
BUSINESS AND FINANCIAL CONDITIONS ABROAD.
With the gradual elimination of war-time
Government control of foreign trade since the
armistice, there has been built up very generally
in the industrial countries of the world a more
rigid system of import and export tariffs than
existed before the war. There are still distinctions between countries in the extent to
which they have applied tariff measures, but
in all cases the recent tendency has been to
increase rather than to reduce rates. Increases
in Government expenditures since the war have
frequently been the cause of advances. Restriction of imports in order to pay foreign debts
is a determining factor with Germany and some
of the other countries whose financial strength
has been seriously impaired, while in the case
of the stronger countries so-called antidumping
provisions have been common. In still other
cases there has been a general revision of the
entire tariff system, with a view to the protection of young industries or industries which
were expanded during the war. In practically
all cases key industries and those that are considered essential from a defense point of view
are given protection.
Antidumping bills are characterized by provisions for import duties on goods which are
being brought into a country at prices less than
the cost of production in the place of origin;
and in some cases by provisions for the elimination of the price advantage of exporting
countries with depreciated exchanges. To
quote from the title of the safeguarding of
industries act, which has just become a law in
England: " An act to impose duties of customs
on certain goods, with a view to the safeguarding of certain special industries and the safeguarding of employment in industries in the
United Kingdom against the effects of the
depreciation of foreign currencies, and the
disposal of imported goods at prices below the
cost of production." Or, to quote from the
United States emergency tariff law enacted
last May, "if the purchase price or the exporter's sales price is less than the foreign market
value (or, in the absence of such value, than the
cost of production) there shall be levied, collected, and paid, in addition to the duties
imposed thereon by law, a special dumping
duty in an amount equal to such difference/'
A similar clause is contained in the Canadian
tariff law. But probably the most extreme
"antidumping" tariffs are those of France
and Belgium. In the case of the latter the
limits of the so-called "coefficients of increase"
have recently been raised to 6; in other words,
duties may be assessed up to six times the
value of those provided by the old tariff law.
Although such large increases have apparently
not been frequently applied, a "coefficient of
increase" of 4 is not uncommon in the Belgian
law. In the new Italian and French laws the
basic rates have been increased and in addition coefficients of increase are being applied.
In the Italian law a coefficient of increase of
1 (i. e., an increase of 100 per cent over basic
rates) is customary, while in France the coefficients vary from 1.1 to 10, the most usual
coefficients being 3, 4, and 5.
A more or less thorough revision of existing
tariff laws has been made by a number of
countries within the last year or so; among
others Canada, British India, Australia, Italy,
France, Spain, Portugal, Sweden, and Japan,
while several other countries such as the
United States, Denmark, and Holland, have
the subject under consideration. In the case
of Canada and Australia there already existed
comparatively high tariffs before the recent
revisions were made. The new amendments
provide in general for higher rates. British
India has had a long and varied tariff career.
However, until 1916 her import duties on an
average had not exceeded 5 per cent ad valorem. With a view to increasing revenue
during the war the usual rates were increased
at that time to 7£ per cent, while the recent
revisions increase them further to 11 per
cent, with the rates on some articles as high as
15 and 20 per cent. The new Italian law may
be classed also among those providing definite
protection to domestic industries. Kates have
been generally increased, the advances being
greatest in the case of manufactured goods.
The new Spanish tariff, enacted in November,
1920, may also be classified as definitely protective, and although some of the original increases
in rates have been reduced since the law was
enacted, rates are now from 50 to 100 per cent
higher than under the old system of customs
for purely revenue purposes.^-Thepapanese
law, enacted in July, 1920, and described in the
BULLETIN for December of that year, is frankly
protective. Even in Holland, which has always
been a free-trade country, the new tariff bill
now under consideration provides for an increase in existing jduties from 5 to 7 per cent
ad valorem.
In certain South American countries, high
duties are being levied on luxury imports. The
FEDEKAL RESERVE BULLETIN.
OCTOBEJR, 1 9 2 1 .
motive in such cases is primarily that of increasing revenues. I n the case of Germany
the importation of luxury goods is prohibited
in order that an export balance may be built up.
ENGLAND.1
The British safeguarding of industries bill,
which was passed by the House of Commons in
August and will become effective on October 1,
will serve two main functions. In the first
place, by the terms of this act certain specific
key industries are given a very material degree
of protection, and, in the second place, all
British industries are given the opportunity to
claim protection against foreign competition in
the domestic market under certain conditions.
The specific commodities upon which a 33J
per cent import duty is to be levied are as
follows:
GOODS CHARGEABLE WITH DUTY.
Optical glass and optical elements, whether finished or
not, microscopes, field and opera glasses, theodolites,
sextants, spectroscopes, and other optical instruments.
Beakers, flasks, burettes, measuring cylinders, thermometers, tubing, and other scientific glassware and lampblown ware, evaporating dishes, crucibles, combustion
boats, and other laboratory porcelain.
Galvanometers, pyrometers, electroscopes, barometers,
analytical and other precision balances, and other scientific
instruments, gauges and measuring instruments of precision of the types used in engineering machine shops and
viewing rooms, whether for use in such shops or rooms or
not.
Wireless valves and similar rectifiers, and vacuum tubes.
Ignition magnetos and permanent magnets.
Arc-lamp carbons.
Hosiery latch needles.
Metallic tungsten, ferrotungsten and manufactured
products of metallic tungsten, and compounds (not including ores or minerals) of thorium, cerium, and the other rare
earth metals.
All synthetic organic chemicals (other than synthetic
organic dyestuffs, colors, and coloring matters imported
for use as such, and organic intermediate products imported for their manufacture), analytical reagents, all
other fine chemicals (except sulphate of quinine of vegetable origin), and chemicals manufactured by fermentation processes.
These are mainly commodities which are
essential in time of war, the manufacture of
which it is desired to encourage and perfect
within the United Kingdom. The terms of
the act provide protection for these industries
for five years.
The administration of the antidumping portion of the law is under the direction of the
Board of Trade, but the power to issue antidumping orders remains with Parliament, and
any industry desiring protection must prove
not only that the price of the foreign article
competing with its own product is less than
i British price, trade, and financial statistics may be found on p p .
1226, 1230, 1257.
1187
the cost of production in the country of origin,
but also that the commodity is being produced
efficiently and economically at home and that
the levy of an antidumping duty will not in
any way interfere with employment in other
British industries. Depreciation of currency
will not be considered a cause for antidumping
orders unless the currency under consideration
is as much as one-third below parity. Goods
dutiable under the conditions of this part of
the act will be charged with a 33 J per cent levy.
It appears that the act has been hedged
about with conditions which may tend to
neutralize the effect of the antidumping regulations where cost of production is made the
criterion. It will be a matter of considerable
interest, however, to follow the working of the
act, as it is generally thought that few countries are producing at present on a scale to
make possible export of goods at less than the
cost of producing them. Of more importance
is the provision of protection in case the foreign
currency is depreciated to such a point that the
foreign price is below that at which the commodity can be manufactured in the United
Kingdom. Since the currencies of all of the
European belligerents are depreciated more
than 33 J- per cent, and in many cases goods can
be deliveredfin England at lower prices than
those set by British. manufacturers, it seems
likely that the new act will give considerable
protection in these cases, and that the ratio of
European imports into England will be reduced.
To quote the act:
PREVENTION OP DUMPING.
2. (1) If, on complaint being made to the board to that
effect, it appears to the board that goods of any class or
description (other than articles of food or drink) manufactured in a country outside the United Kingdom are
being sold or offered for sale in the United Kingdom—
(a) At prices below the cost of production thereof as
hereinafter denned; or
(b) At prices which, by reason of depreciation in the
value in relation to sterling in the currency of the country
in which the goods are manufactured, not being a country
within His Majesty's dominions, are below the prices at
which similar goods can be profitably manufactured in
the United Kingdom;
and that by reason thereof employment in any industry in
the United Kingdom is being or is likely to be seriously
affected, the board may refer the matter for inquiry to a
committee constituted for the purposes of this part of this
act: Provided, That the board shall not so refer any matter
involving a question of depreciation of currency unless
they are satisfied that the value of the currency of the
country in question in relation to sterling is less by 33}
per cent or upward, than the par value of exchange.
(2) The board, on referring any such matter to a committee, shall direct that the committee shall report also on
the effect which the imposition of a duty under this part
of this act on goods of any particular class or description
would exert on employment in any other industry, being
an industry using goods of that class or description as
material. * * *
1188
FEDEKAL, BESEBVE BULLETIN.
3. (1) Subject to the provisions of this part of this act,
there shall be charged, levied, and paid on goods of any
class or description in respect of which an order has been
made under this part of this act, if manufactured in any
of the countries specified in the order, on the importation
thereof into the United Kingdom, in addition to any other
duties of customs chargeable thereon, duties of customs
equal to one-third of the value of the goods.
Before the war England obtained approximately 40 per cent of her imports from the
Continent. In 1920 this percentage dropped
to 23, but in the first half of 1921 rose to 35 per
cent.
The depreciation of the purchasing power
of the Continent affects England quite as seriously, however, from the selling as the buying
point of view. In both 1913 and 1920 the six
leading continental countries, France, Italy,
Belgium, Holland, Russia, and Germany, took
approximately 25 per cent of England's exports, while the other European countries (including Sweden) took 9 per cent in 1913 and 14
per cent in 1920. During 1921 there has been a
very material decrease in British exports to all
of these countries. The falling off in exports to
France is particularly striking. These were valued at £77,000,000 for the first six months of
1920 and at only £21,000,000 during the same
period of 1921. Exports to Belgium, Netherlands, and Italy fell off similarly, although not
so much. Exports to Germany amounted to a
value of £11,000,000 in the first six months of
1920 and to £7,000,000 in the same period of
1921.
During August there was an increase in
British imports and exports large enough to
indicate a very material increase in trade. No
figures are available at this time, however, to
show in what geographical directions the expansion has occurred. The commodities which
have been exported on a larger scale than
during recent months comprise coal, cotton
manufactures, and vehicles (including locomotives, ships, and air craft).
Very optimistic reports were made a year
ago regarding Great Britain's international
trade balance. Due to the depression of trade
and the reduction in freight earnings, it appears
that for the year 1921 the balance will be adverse instead of favorable, as it was in 1920.
Shipping earnings were estimated at £340,000,000 for the year 1920 by the Board of Trade.
Estimates of £60,000,000 to £70,000,00p for
1921 have recently been made by a shipping
expert, which, combined with 1920 estimates
of income from investments of £120,000,000
and from banking and other services of
£40,000,000, gives a total of £225,000,000 on
the credit side as compared with an estimated
£280,000,000 * on the debit side for imports.
1
Estimate of Manchester Guardian.
OCTOBER, 1921.
This gives an unfavorable balance of £55,000,000 for the year as compared with an estimated
favorable balance of £165,000,000 in 1920.
The railways bill, which has been before
Parliament for some months, was passed on
August 19, four days after the railroads were
returned to private management. The most
important provisions in the act are those (1)
for the amalgamation and grouping of the different railways, (2) for the creation of a rates
tribunal, and (3) for the reconstitution of the
wages boards. As the bill was finally passed
the railways of Great Britain are to be divided
into four groups—the southern and western,
which are comparatively small, and the northwestern and northeastern, which are large.
These amalgamations will take effect January,
1923. The act also provides that the Ministry
of Transport may order the railroads to conform to measures of general standardization of
ways, plant, and equipment, and to make
common use of rolling stock, workshops, plant
facilities, etc. The new railway rates tribunal
is an executive department similar to the Interstate Commerce Commission in the United
States. This body has the power not merely
to set the maximum limits but the actual rates
to be charged on the railroads. During the
first three years of operation rates will be reviewed annually. Until the time of amalgamation, councils will function for each railroad
to adjust labor disputes. Employees and management will be represented on these councils.
In addition, the central and national wages
boards have been reconstituted, and leading
trade unions given separate representation.
In its issue of August 27, 1921, the London
Statist makes a summary of the financial condition of British railroads at the time of their
return to private management. The following
brief table shows total net receipts from 1913
to August 15, 1921. Until the latter date
deficiencies were met by the Government.
With the payment of the £60,000,000 against
claims for deferred maintenance and stores,
however, the financial responsibility of the
Government will be at an end.
TOTAL NET RECEIPTS OF RAILWAYS OF GREAT BRITAIN.
1913
1914
1915
1916
1917
£45,633,078
16,281,648
45,171,403
49,420,063
53,885,849
1918
1919
1920
1921
£44,068,105
8,950,908
5,974,765
20,920,964
General business conditions during late Auust and early September appear not to have
een materially better than in recent months,
but there are a few factors which can be measured statistically which point toward improvement. The volume of production of iron and
f
steel has increased slightly, prices are more
stable than a few months ago, and foreign
trade is larger. Coal production, on the other
hand, is on the decrease because of surplus
stocks and lack of demand, and the cotton
industry is still depressed in spite of the spectacular advance in the price of the raw material. Wool prices are slightly higher than a
month ago, but there is very little demand for
the finished goods, and as a result uncertainty
about prices of tops and yarns.
VOLUME OF BRITISH COMMODITY PRODUCTION,
SHIP
TONNAGE
UNDER
CONSTRUCTION, AND TONNAGE
MOVED ON BRITISH RAILWAYS.
Production (long tons, 000
omitted).
Coal.
Monthly average:
23,957
1913
19,128
1920
3 22,926
July
16,970
August
18,885
September
•U4,044
October
15,920
November—
20,230
December
Ship ton- British
nage under railways
(tonconstrucmiles,
Steel in- tion (gross 000,000
tons).
Pig iron. gots and1
omitted).
castings.
855
667
750
752
741
533
404
675
639 2 2,002,699
755 23 603,131
790
709
3,731,000
885
544
505
3,709,000
747
642
464
386
60
14
1
10
94
493
484
359 4 3,799,000
71
6
2 7 3,530,000
117
433
1,506
1,347
1,489
1,469
1,323
1921
January
February. -.
March
April
May
June
July
August
21,805
17,369
16,437
5
1,950
6 179
3 15,214
16,594
1,440
1,276
1,273
597
498
443
1 Revised figures.
23 Average of 4 quarterly estimates.
5 weeks.
* Work suspended on all but 2,952,000 tons.
6 First week in April.
e Production from Apr. 4 to July 4.
7 Work suspended on all but 2,351,000 tons.
The trend of prices during August was downward, according to the index 01 the Board of
Trade and the Statist. Nevertheless, a considerable number of prices advanced, especially
in the food groups. Live stock and meats advanced, as did butter, cheese, sugar, tea, and
coffee. Cereals, on the other hand, tended to
be reduced in price, as was wheat flour.
Cleveland pig iron was advanced, but leading
semifinished steel products declined or remained unchanged. Cotton and woolen yarns
as well as boots and shoes were lower than in
July.
.
The index of the cost of living decreased
from 122 during July to 120 during August,
with the level in July, 1914, considered as 100.
Improvement continued in employment conditions, the percentage of trade union members
out of work averaging 16.5 at the end of
August, as compared with 16.7 at the end of
1189
FEDERAL BESERVE BULLETIN.
OCTOBER, 1021.
July. The percentage of unemployed among
those people who are insured under the unemployment insurance act decreased from 14.8 at
the end of July to 13.15 at the end of August.
There were 1,573,000 people registered at employment offices on August 26, as compared
with 1,780,000 on July 29.
FRANCE.1
In June, 1919, when the abolition of war-time
import prohibitions made tariff revision a pressing matter, the French Government began to
apply "coefficients of increase" to its tariff
rates. Customs duties have been levied in
France almost entirely by means of specific
rather than ad valorem rates ever since 1881,
and the change in the price level which took
place there during the war made these rates
comparatively ineffective either for protection
or revenue. The action taken by the Government in 1919 is best explained by an excerpt
from the introduction to the decree of July 8,
1919, which first imposed " coefficients of increase."
The decree of June 14, 1919, published in the Journal
Officiel for the 18th of that month, laid down for a certain
number of goods ad valorem surtaxes intended to restore
to the customs duties a protective incidence equal to that
which they possessed before the war, this incidence having been reduced to such an extent that for most goods the
duties had become a mere statistical tax, and did not have
any protective effect. The decree was merely a provisional readjustment aiming at reestablishing the tariff
equilibrium which has been disturbed by the considerable
increase in prices. This readjustment was carried out by
adding to the duties prescribed in the tariff ad valorem
surtaxes which, on the basis of the official valuations of
goods, would bring the duties to the level of the prewar
percentage.
The Government has been considering the possibility
of obtaining the desired results by a more convenient
method without in any way abandoning the principles
which had led them to impose such surtaxes. Although
ad valorem duties may not be open to criticism in principle, they are nevertheless difficult to apply in practice and
have well-known disadvantages. * * * For this purpose coefficients have been established for the classes of
goods specified in the customs tariff (other than those
which it appears desirable to except from this reform),
representing the relation between the value of the goods
in 1913 and 1918, according to the official valuations laid
down for those years by the Permanent Commission on
Customs Values.
The Government, however, has systematically adopted
the figure 3 as the maximum " coefficient of increase," being desirous of avoiding as far as possible all abnormal
causes of increase in price, and having decided to indicate
very clearly its intention not to appear to sanction the
present prices of goods, which are too often the result of
pure speculation.
On this basis the duty to be paid for any particular class
of goods will be the product of the specific duty laid down
in the tariff multiplied by the coefficient attributed to the
article concerned. In view further of the necessity of not
exceeding the limits of a just equalization, the Govern1
French price, trade, and financial statistics may be found on p p .
1227, 1230, 1258.
1190
FEDERAL RESERVE BULLETIN.
ment will continue to follow the markets closely and will
not fail if necessary to reduce the rates of the coefficients
of increase. For this purpose an interministerial commission will be set up, charged with the duty; of preparing
a periodical revision of the schedule of coefficients in order
that such schedule may correspond as exactly as possible
to the relation between present and prewar values.
The law of May 6, 1916, which authorized
the Government to raise customs duties by
ministerial decree, was continued in force
until January 1, 1922, by a law of December
31, 1920. Early in 1921, because of the
spread of industrial depression and unemployment in France, there was a popular
demand for further tariff protection, particularly against countries with depreciated
exchanges. The tariff commissions of both
the Senate and Chamber of Deputies therefore began a revision of the basic rates of the
maximum tariff and of the " coefficients of increase " of the 1919 decree soon after the first
of the year. A decree of March 28, 1921, increased from two to three times the duty on
goods coming from countries with which France
has no special tariff agreement, and these include most of the countries with greatly depreciated exchanges. Some of the products of
the United States are subject to the French
maximum tariff and they are specifically excepted from the increase in rates. The new
coefficients were announced and became effective at intervals until June 29, 1921, when a
presidential decree established the complete
revision of the coefficients, which are applied to
both the minimum and the new maximum rates.
This revision is intended to reestablish the
protective measures of the tariff of 1892
which were in force (with some changes) at the
time of the outbreak of the war, but it appears
also to afford additional protection to certain
industries. Most of the commodities to which
coefficients of increase are applied are manufactured articles, but some foods and raw materials are also included. The tariff rates on
wool are to be multiplied by 3, on wheat and
other bread grains by 2, on sugar by 2.5, on
pig iron by 2, on copper bars by 2.4, and on
ferromanganese, ferrosilicon, and silico-spiegel
by 6.3.
In general, coefficients of increase vary from
1.1 to 10, those most usual being 3, 4, and 5.
In a few cases the new coefficient is less than
the one which was previously in force, but, on
the other hand, many rates to which coefficients
were not applied previously are now increased
from two to six times. For most textiles
the coefficient of increase is 5, although it
ranges as high as 10 in the case of velvets and
plushes of linen for manufacturing; for metal
manufactures the coefficients vary from 1.4
to 8.8 and for some chemicals the tariff is
OCTOBER, 1921.
increased as much as six times. The decree of
June 29 provides that in the course of the first
quarter of 1922 these coefficients shall again be
revised.
It is difficult to gauge the exact effect of the
tariff upon French imports. It was pointed
out in the August issue of the BULLETIN that
the volume of French imports for the first
six months of 1921 was distinctly less than in
the first six months of 1913. The recently
published figures on the July import trade
show little improvement. French imports for
July, 1921, weigh 2,164,000 metric tons, as
compared with 3,808,000 metric tons in July,
1913. How much of this decline is due to lack
of demand in France itself and how much to
the new tariff it is difficult to estimate.
It seems quite likely that the unfavorable rate
of the exchanges with the United States and England, two countries from which France normally
purchases large quantities of goods, may have
been quite as important as the tariff in reducing
French expenditures from abroad. In September French exchange on New York fell as low
as 6.88 cents to the franc, and by September
30 it had progressed to 7.13 cents to the franc.
Meanwhile, prices in general seem to be
rising in France. In August the wholesale
price index of the French General Statistical
Office rose to 331, an increase of nine-tenths
of 1 per cent over the month previous. This
rise was the result of increases in the prices of
animal foods and of textiles. The price of
spot cotton at Havre rose from 211 francs for
50 kilograms on July 30 to 261 francs on
August 27. Silk prices also increased slightly
during the month, but Lyons reports no real
activity in the market. The price of some
grades of rubber rose in August. The Marseilles quotation for Para rubber increased
from 4 francs 75 per kilo on July 30 to 5 francs
30 on August 27. On the other hand the
price of sugar declined sharply in August, as
did nonferrous metal prices. Pig-iron prices
fell again because of lack of demand, but
prices of iron plates and rails remained stationary. During September the general upward movement seems to have been continued,
as the wholesale price index of the French
General Statistical Office rose from 3311 to
342 during the month.
Industrial conditions in the Lille district
were complicated during August and early September by the strike of the textile operatives.
In the iron and steel districts a great deal of
involuntary unemployment continued.
In
general, however, there was less unemployment in France in August than in the months
previous, because of the seasonal demand for
labor in that month of the year.
OCTOBEK, 1921.
1191
FEDERAL, RESERVE BULLETIN.
The situation of the Bank of France has not
changed very greatly during the last month.
On August 25 the gold reserve of the bank held
in France amounted to 3,573,765,000 francs,
while on September 22 it had risen to 3,574,545,000 francs. During the same period the
amount of the notes of the bank in circulation
changed from 36,783,000,000 francs to 36,920,973,000 francs. The debt of the State to the
bank remained unchanged during September,
while the loans and advances of the bank to
private investors fell from 4,683,468,000 francs
to 4,559,497,000 francs in the same period.
Developments in public finance were also
unimportant during August and early September. Late in August the Finance Minister
communicated to the public his proposals for
the "recoverable budget" for 1922. These
proposals contemplate an expenditure of
7,158,620,742 francs in 1922, as compared with
15,913,000,000 francs in 1921. Of this amount
3,656,887,660 francs will be spent for pensions
and 1,146,508,977 francs for the devastated
regions. The Finance Minister proposes that
the expenses included in the recoverable
budget, which are not met by payments from
Germany this year, shall be financed either by
the Credit National or by the cities or industries of the devastated regions.
The following table gives some indication of
the general trend of business conditions in
France during the last few months. The decline in stocks of coal at the mine since April
is due in part to increased demand for French
coal resulting from decreased shipments from
Germany.
FRENCH BUSINESS INDEXES.
Coal.
Raw cotton im- Cotton
ported
stocks
for
conStocks Imported
at
for
sump- Havre. l
at 1 consumption.
mines.
tion.
Produced.
Thousands of metric tons.
3,338
2,025
1913, average.
1920, average.
1921.
January...
February.
March
April
May
June
July
August
1
2,352
2,137
2,255
2,257
2,108
1,762
2,280
879
1,566
1,363
1,190
1,256
1
The new Italian customs tariff was enacted
by a royal decree of June 9, 1921, and although
it is still subject to revision by Parliament,
was made effective on July 1. The Government was prompted to resort to this emergency
method of legislation by the enactment of new
tariff measures in other countries and the cancellation of commercial treaties by Spain,
Switzerland, and Rumania. It was deemed
necessary to secure a basis for the negotiation
of new treaties without delay, and also to provide for Italian industries such protection
against foreign imports as could no longer be
adequately offered by the old tariff. The
tariff which was in existence prior to July of
this year was, except for a few minor changes,
the one enacted in 1887, when Italy's indusi Italian price, trade, and financial statistics will be found on pp.
1227,1231, 1258.
Thousands of
bales of
50 kilograms.
1,558
2,022
27,42S
19,576
274
225
629
390
3,685
4,245
1,840
1,039
2 39,522
1,738
1,177
1,256
1,066
731
608
26,393
14,199
10,323
12,696
7,709
14,014
200
198
185
167
169
136
131
132
161
97
73
251
161
174
3,702
2,579
2,827
2,652
2,250
2,047
2,164
1,117
1,414
1,069
1,154
1,168
1,405
1,194
71,774
89,289
88,382
75,569
3
60,362
3 55,439
s 37,226
3 30,645
2 End of December, 1920.
End of month.
ITALY.
279
Metric
tons.
Raw
silk imported
Total
Total
for con- imports. exports. Number
sumpof unemtion.
ployed
receiving
State or
municiThouThou- pal aid. 1
Metric sands of sands of
tons.
metric
metric
tons.
tons.
3
Provisional.
trial development was in a rudimentary stage.
Tariff controversy during the past few years in
Italy has centered about the question of
whether the old form of a "general" tariff subject to modifications by treaty should be continued or whether a tariff with a double series
of maximum and minimum duties should be
instituted. The Royal Commission, appointed
in 1913 for the study of the tariff, recommended the latter system in accordance with
the unanimous demand of the industrial
groups of the country. Similar recommendations were made by several parliamentary and
Government committees which have taken up
the problem since 1917. Agricultural interests,
on the contrary, and in particular those of
southern Italy, have insistently demanded the
continuation of the old system of a general
tariff and commercial treaties. This system
was considered to be best calculated to pro-
1192
FEDERAL, RESERVE BULLETIN.
mote the export of agricultural products.
The Royal Commission of 1913, with a view to
the encouragement of agricultural exports, had
recommended " a limited preferential treatment to be granted wherever necessary in
order to preserve foreign markets for Italian
agriculture." In the end it was decided to
continue the old form of tariff out of consideration for agricultural interests. Accordingly,
the new tariff is a general tariff and will serve
as a basis for negotiating commercial treaties.
Except in this regard, the new tariff is fundamentally based on the recommendations of the
Royal Commission and embodies the results of
the studies which it carried on for several years.
The classification adopted in the tariff is, on
the whole, merely a reproduction of the one
recommended in the report of the commission,
and when compared with the classification of
the old tariff of 1887 reflects the changes which
have taken place in Italy's situation in the
course of the last 30 years. While the old
tariff contained 472 main headings, the new
one contains 953 and, if the subdivisions are
taken into account, includes about 3,000 entries. New detailed specifications have been
introduced for almost all classes of goods; in
particular for metals and textiles. Ferroalloys,
raw iron, and steel bars and wires and tubes
are now classified in over 70 subdivisions, while
in the old tariff they were grouped in three.
A very elaborate classification has also been
adopted for machinery, machine tools, scientific instruments, and automobiles. Hemp,
linen, and cotton yarns and cotton tissues have
been classified in a great number of subdivisions, according to quality. Chemical products are now grouped under 362 headings, as
compared with 206 headings in the old tariff.
The recommendations of the Royal Commission have also been followed for the most part
as regards increased protection of the products
of young industries and in particular of those
industries whose development was due to war
conditions—i. e., the iron and steel and chemical industries. The much-debated question
as to the advisability of the further development of Italy's cast-iron industry, an outgrowth of the war, was decided in favor of
protection, and high import duties have accordingly been established. Import duties on
automobiles have been advanced, while export
duties on a number of domestic ores have been
increased. Imports of raw hemp, flax, jute,
wool, and silk remain free from duty, while raw
cotton is subject to a duty of 3 gold lire per 100
kilograms. Export duties on raw silk have
been removed and import duties on silk tissues
revised upward. An import duty of 1^ gold
OCTOBER, 1921.
lire per kilogram has been established on artificial silk, the production of which has developed in Italy during the last 15 years. With
regard to the other textiles, the new tariff is
characterized by increased protection for the
finer grades of yarns and tissues and less protection for the coarser grades. Increased duties
have been imposed on most chemical products,
including dyestuffs, but imports of fertilizers
are either free or subject to low duties. Other
increases have been made in the rates for
tanned hides, leather, and shoes (imports of
raw hides remaining free), and glass and pottery. As measures of protection for agricultural interests, import duties have been imposed
on live stock and poultry and those on wine
have been increased. The basic rates established by the new tariff are the minimum rates
recommended in the schedule of the Royal
Commission.
Under the new law the Government is empowered to increase these basic rates in accordance with changes in the comparative costs of
production in Italy and abroad. The extent of
such increases is indicated by an elaborate
series of " coefficients." The conditions which
have determined the various coefficients are
essentially of a temporary nature. The highest
coefficient on the list, that for cast iron, which
is 2.5, indicates an increase of 250 per cent
over the basic rate which is 1.25 gold lire per
100 kilograms. This was determined by the
high prices of imported coal and the resulting
disadvantages of Italian producers of cast iron,
as compared with German, Czecho-Slovak, and
French. The coefficients for machines and
machine tools (varying between 0.5 and 1.5)
was dictated by the foreign exchange situation.
In the sale of these commodities Italy; competes
with countries with a more depreciated currency than hers, while she must obtain the raw
materials from countries on which the exchange
rate is high. The coefficient for silk tissues (1)
is designed to protect the Italian product
against German competition.
The Government is authorized, according to
the decree, to modify the coefficients as conditions require. Although, strictly speaking, the
coefficients are determined by comparison of
the costs of production in Italy and abroad,
the ministerial report on the tariff seems to
indicate that changes in the coefficients may
be made for other reasons such as to give
special protection to certain industries or to
discriminate against countries which increase
tariffs on Italian goods. It may be concluded,
therefore, that until commercial treaties have
been arranged on the basis of the new tariff, the
latter, with its basic rates and coefficients,
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
1193
affords to the Government a weapon of eco- ernment has yielded to the requests of exportnomic defense analogous to a tariff with a ers and has decreased some export duties and
double series of duties.
removed others entirely. The most important
1
additions to the "export free" list in 1921
GERMANY.
have been textiles and textile manufactures,
In a country like Germany, where a greatly excepting raw cotton and cotton cloth.
depreciated currency acts as an automatic
The taxes on exports yielded 2,237,000,000
barrier against an influx of imports, and the paper marks of revenue in the fiscal year 192p
disparity between internal and external prices and 282,710,000 paper marks from April
encourages exports, the chief problems in- through July, 1921.
volved in the regulation of foreign trade are
Because of the difficulties of trading with
the prevention of the export of essential com- Germany, both German imports and exports
modities and the restriction of imports to the were comparatively small last year. The Gerfoods and raw materials necessary for the man Government has recently published figcountry's existence. There has been no ures on the tonnage of the import and export
thoroughgoing revision of the German tariff trade in 1920 and on the value of the export
since the beginning of the war. The most im- trade. No official figures on the total value of
portant alteration in German customs dutips imports in 1920 have been made available,
has been the requirement, which became effec- however. The figures published show a great
tive in July, 1919, that all duties must be paid falling off of trade in all commodity lines as
in gold or its equivalent. Duties paid in paper compared with 1913. The decrease of exports
marks are increased by an "agio" (Aufgeld), of textile and textile manufactures, of leather
which is announced monthly and which varies and leather manufactures, of foods, and of
with mark exchange. This "agio" contrib- minerals and metal manufactures are most
uted an additional 1,844,654,956 paper marks striking. The decline in the exports of minerto the revenues of the German Government in als, metals, and textiles is, of course, due
1920. German imports are still carefully partly to the transfer of Alsace-Lorraine to
regulated, however, and the "import free" list France. Among the imports the greatest
is relatively short. The announced policy of decreases occur in the case of machinery, texthe Government is to allow the importation of tiles, chemicals, foods, and minerals. The folessential raw materials without license and to lowing table gives the tonnage of the chief
license the importation of most half-finished group of German imports and exports for 1913
articles and finished articles not regarded as and 1920:
luxuries.
GERMAN FOREIGN TRADE.
A similar policy is applied to exports. Prac[In thousands of metric tons.]
tically no raw materials may be exported.
Half-finished goods are licensed for export if
Imports.
Exports.
Per
Per
they are not needed within the country, and
cent
cent
of
deof
dethe export of most finished articles is allowed.
1913
1920 crease. 1913
1920 crease.
The question of taxing goods exported from
Germany arose early in 1920, when the Gov- Foods, etc
26,615 6,563
75 6,663 1,410
79
and mineral
ernment began to refuse licenses for goods Minerals
41,602 11,140
oils
73 51,856 11,848
77
and dyes
2,060
266
4,903 2,632
46
which it considered underpriced, and by a Chemicals
87
Textiles and textile
proclamation of April 17 an export tax was manufactures
299
87
82
426
78
71
and leather
established for a large number of commodities. Leather
manufactures
21
17
82
54
10
19
and paper manuThe rate of the tax varied from 1 to 10 per Paper
factures . r
113
80
543
49
277
29
cent ad valorem. The aim of the export Glass and glass manu17
factures
14
52
246
118
duties was partly to prevent the withdrawal Metals and metal manu18
1,054
factures
529
50 6,846 1,848
73
of necessary goods from the domestic market Machinery
103
92
836
673
19
8
and partly to take for the Government part of All other commodities... 984
85 1,384
917
34
143
the profits accruing to exporters from the
Total
72,848 18,847
74 66,911 19,811
70
higher prices prevailing abroad. An attempt
has been made to adjust the taxes to fluctuations in prices and in mark exchange, but
The fluctuations of mark exchange during
exporters have complained that the officials September tended further to discourage imcharged with these adjustments have been ports into Germany and to encourage the placeunnecessarily slow in discharging their duties. ment of orders for export. The average price
With the decrease in foreign demand, the Gov- of the mark in New York during September
was 0.96 cent, and the lowest price (on Sepi German price, trade, and financial statistics will be found on pp.
tember 28) 0.78 cent. The further deprecia1228,1231,1259.
1194
FEDERAL KESEEVE BULLETIN.
tion of German currency in foreign markets
was due partly to buying of grain and cotton
and partly to the reparations payment to the
allies.
The payment of 1,000,000,000 gold marks on
reparations account was not accomplished
without drawing heavily upon the resources
of the Reichsbank. In the first place a large
amount of the silver, which the bank has held
in a special account since the demonitization
of silver in Germany, was used to establish
credit balances in New York, where it yielded
about 50,000,000 gold marks, and in the second
place it was necessary to draw upon the gold
reserve of the bank to the extent of almost
68,000,000 gold marks. The Reichsbank has
held between 1,090,000,000 and 1,092,000,000
gold marks since early in 1920, but the recent
payment so reduced the reserve that it stood
at 1,023,708,000 gold marks on August 31.
These inroads upon the resources of the
Reichsbank were necessary in spite of the fact
that the Government had been making every
effort to increase its stock of gold for some time
before the payments came due, by buying,
through the, Reichsbank and the post offices,
gold coins and gold by weight at special prices,
corresponding roughly to the value of the paper
mark in world markets. The Frankfurter
Zeitung publishes the following table, giving
the prices which have prevailed since the 1st
of June:
GOVERNMENT PURCHASE PRICES.
[In paper marks.]
Forl
Forl
20-mark kilogram
fine
gold
gold.
piece.
1921.
June 1-11
June 12-25
June 26-July 3
July 3-10
July 11-31
Aug. 1-8
260
280
300
310
320
340
37,000
40,000
42,500
43,500
44,600
47,600
OCTOBER, 1921.
No decision has yet been reached in regard
to the method by which the revenue needed
for Government expenses and payments on
reparations account shall be raised. During
August a whole series of new taxes which
would involve very considerable sacrifices
on the part of German taxpayers were proposed for the consideration of the Reichstag,
and some action upon further taxation probably will be taken in the near future.
Speculation in both securities and commodities has continued as a result of the recent
fluctuations in exchange rates. The Frankfurter Zeitung index for 25 stocks went to 239
on September 14, and its index number of
wholesale prices rose to 1,777 on September 3.
The most important price increases took place
in the case of hops, potash, kainite, milk, lentils,
peas, hay, tobacco, rolled plates, bar iron, steel
scrap, twine, linen yarn, and raw cotton.
There has been a definite increase in the price
of iron products in Germany in the last month
or two. Prices of most iron products at the
beginning of September equal or exceed the
rates fixed by the Eisenwirtschaftsbund last
May just before price fixing was abandoned,
although prices have gone much lower in the
interim.
According to the Prussian Chamber of Commerce the increase of industrial activity in
August again emphasized the fact that German
industries are undersupplied with coal. The
quantity of coal to be delivered to the allies by
Germany is now being fixed by the Reparations
Commission month by month. The totals
vary from 1,600,000 tons to 2,200,000 tons.
In July, however, only 1,390,000 tons were
delivered because France did not require all
the coal and lignite to which she is entitled.
The following table gives coal, lignite, and coke
production in Germany in the first seven
months of 1920 and 1921:
G E R M A N COAL PRODUCTION. 1
The prewar price of one kilogram of fine
gold was 2,789 marks. According to this
same paper these purchases of gold in the
open market brought in about 15,000,000
gold marks.
The problem of further payments on reparations account is very much complicated by the
recent decline in the exchange value of the
mark. On the other hand, the agreement
recently concluded in regard to German cooperation in the rebuilding of the devastated
regions in France should help in solving the
problem of future payments to France, at least.
[In thousands of metric tons.]
Coal.
1920
January
February
March
April
May
June
July
1
2
] 10,329
j 10,225
i 10,150
' 10,011
10,167
! 11,008
j
11,509
1921
12,009
12,009
11,460
2 8,985
2 7,797
*8,688
10,731
Lignite.
1920
1921
8,643 10,071
8,464 10,039
7,920 2 9,876
8,900 10,373
8,705 2 9,368
9,572 210,055
9,235 10,065
Not including the Saar or the Palatinate.
Not including Upper Silesia.
Coke.
1920'
1921
1,925
1,916
1,871
1,775
2,070
2,075
2,221
2,350
2,277
2,442
2 2,150
2 2,154
2 2,086
2,218
OCTOBER,
1921.
THE NETHERLANDS.
Bank and other financial reports from the
Netherlands indicate that there has been a
material reduction in note circulation and
credits in the past three months. The course
of contraction has not been rapid, but a comparison of the present volume of loans and notes
of the Netherlands Bank with that of the first
of the year clearly indicates the tendency toward contraction. It has not been the policy
of the bank to raise the discount rate in order
to accomplish this. It has viewed inflation not
as a cause, but as an accompaniment of present
economic conditions, and as the direct consequence of conditions growing out of the war.
Therefore, a more closely related means of
restricting the increase in loans has been sought
in the exercise of a rationing policy, by which
fresh demands for credit were granted almost
exclusively for the purpose of increasing home
production. This attitude toward raising the
bank rate has been also sliaped quite largely
by the desire to avoid the adverse influence
which an increased rate would exert on the already severe competition which Dutch trade and
industry have to meet in other countries. The
bank feels that results have justified its course,
as credits necessary for the economic welfare of
the country have been provided, and a decided
reduction in the price level has taken place.
The investment market has been well supplied with mone}7" for short-term loans, apparently through funds brought into the Netherlands by foreigners on account of the political
security of the country and the relative stability of the exchange value of the florin.
Much of this " foreign money " (largely German
marks), however, has not sought investment
but has been held in the form of cash, with the
consequence that a considerable amount of
Netherlands currency has in effect been hoarded,
and that actual circulation in the country has
been less than the volume of notes outstanding
would indicate.
Business of all kinds has suffered from high
prices. Prices are high, even aside from the
difficulties arising out of the depreciation of
the German mark in terms of Dutch florins.
Especially is this true of the transshipment
trade, which represents approximately 22 per
cent of the total imports and exports of the
country. There has been considerable agitation about transshipment costs. The labor
costs in the handling of cargoes is such that if
the port of Rotterdam were not so equipped
as to make the labor element comparatively
small, the port could not hold its trade in the
handling of grain, coal, and bulk cargoes.
1195
FEDERAL RESERVE BULLETIN.
Labor costs in practically all lines are an increasingly adverse element in Netherlands
trade. The labor law enacted October, 1920,
which prescribed the 45-hour week for industrial workers, without privilege of working
overtime except by express governmental
authority, has been subject to attack. A bill
is now before Parliament which proposes to
substitute by mutual agreement between employers and employed a 48-hour week, with
privilege of working overtime. Meanwhile,
there is no prospect of a more intensive production, and the continued high costs of producing,
together with the necessity for greater output,
which serious foreign competition imposes on
home industries, are causing considerable misgivings to manufacturers and economists alike.
An amelioration of the wage and price situation will probably follow upon the decline in
wholesale commodity prices which has set in
and from adjustments which it is hoped will
come out of the conferences in which employers and employed are at present engaged over
wage reductions. There has been some reaction, however, in the wholesale price decline.
During May and June the wholesale index
number was somewhat higher than that for
April, but figures for July indicate a resumption
of the downward course. A survey of prices in
the retail trade for 1920-21 is of interest in
connection with the wholesale price index.
INDEX NUMBER OF WHOLESALE PRICES IN THE NETHERLANDS AND OF RETAIL PRICES OF 29 ARTICLES.1
[1913=100.]
Date.
Year 1919.
January
February-..
March
April
May
June
July
August
September..
October
November..
December..
Year..
January..
February.
March
April
May
June
July
1920.
1921.
Average
retail
price of
29 articles.
General
articles
(52).
Food
articles
(32).
299
287
210
287
283
286
292
293
294
296
288
285
282
260
233
282
253
243
242
248
250
256
263
253
249
246
241
221
247
226
225
229
233
239
242
241
238
235
237
231
222
232
213
196
187
175
178
179
174
202
196
189
181
182
185
177
207
188
180
177
172
168
168
1
The wholesale price index has been revised to include 52 articles (32
food articles) instead of 49 and 31 as previously shown..
1196
FEDERAL RESERVE BULLETIN.
Closely related to wages and prices is the
status 01 unemployment. Figures taken from
the official Maandschrift, showing the index of
unemployment in the most important industries for the year 1920, are compared with
those of the first quarter of the present year.
Tabulated data for the succeeding months are
not available, but most recent reports are to
the effect that, roughly speaking, about 20 per
cent of the laborers are without work and that
strikes continue.
INDEX NUMBER OF UNEMPLOYMENT IN REPRESENTATIVE
INDUSTRIES IN THE NETHERLANDS.
Year,
1920.
Groups.
Building trade
Diamond workers
Printing trade
Metal workers
Textile workers
Cigar makers
Commercial clerks
Transport workers
Clothing factory hands
Other groups
All groups
All groups, exclusive of diamond workers
January,
1921.
51.8
14.3
86.1
0.9
1.5
3.2
1.4
4.1
7.9
19.6
38.6
6.2
0.1
5.
2.2
3.4
5.8
4.6
1921.
10.5 I
88.2 J
13.8
1.9
5.2
14.8
44.5 I
0.5
13.7
8.2
9.8
13.5
11.9
11.7
0
13.4
11.6
8.2
89.3
2.3
5.1
13.9
36.4
0.8
13.2
3.5
9.4
11.5
9.5
THE TRADE BALANCE.
Large decreases in both exports and imports still characterize the total foreign trade
of the Netherlands, though in recent months
there have been increased imports from Germany, particularly manufactures of iron, steel,
dyes, chemicals, and machinery. On the other
hand, Germany has not taken a correspondingly large amount of Dutch exports. As a
whole, imports tend more and more to come
within the limit of strict necessities, and are
marked by decrease in raw materials, especially
steel, grain, and cotton. The unfavorable
balance shows steady improvement since March,
the figure for July being the smallest of the
seven months with the exception of February,
which was preceded and followed by the
largest import balances of the current year.
The total for January-July aggregates
548,709,000 florins, exclusive of gold and silver,
for which there is an export balance amounting
to 40,519,000 florins. Comparison of totals
over any considerable period show that the
growth of the unfavorable balance is becoming characteristic of the Netherlands international situation.
OCTOBER,
1921.
CONDITIONS IN THE DUTCH EAST INDIES.
Conditions in the East Indian Colony are
not regarded as favorable. In recent months
almost all the import trade has been carried
by the banks, and export trade has been
nearly at a standstill on account of lack of
orders from abroad. Prices of nearly all
export items, especially coffee and rubber,
have declined to prewar levels, involving
great loss. The depression is complicated by
internal conditions, particularly the falling off
in revenues. Taxes levied upon greatly inflated values are not now forthcoming, and
there is a large budget deficit necessitating a
thorough revision of fiscal plans. Changes in
the taxation scheme have been made by which
all classes of levy are affected, and, in addition, temporary taxes on products have been
instituted pending the coming into operation
of permanent measures. These taxes, which
press heavily at this time when industry
without any extra burden is already in a difficult position, will doubtless influence the movement to curtail production which has appeared in some cases, notably that of rubber.
The status of the sugar market is somewhat
less unfavorable than
was expected. Only
about 2,500,000 piculs1 of the 1921 crop remain
to be marketed, and the prospects are that the
entire crop will soon be sold. The net results,
although they will be far below the total of
1920, are estimated as making a fair return,
and as averaging from 14 to 16 florins per picul.
Plans have matured for the establishment of
an emergency bank in the Indies for the aid
of agricultural concerns, especially tea and
rubber. The Government has declared its
willingness to support the bank by guaranteeing a fixed amount in cases of eventual
losses, and projects are before Parliament to
make the State guarantee for this purpose
5,000,000 florins. Though there has been little
actual stringency, the depression in the Indies
is expected to be of longer duration than that
which occurred in 1918, and local banks are in
a less favorable position to render support.
A table is attached showing the relative
position of the Javasche Bank over an extended
period. Notwithstanding the distance of the
Colonies from the area of the war, the Javasche
Bank, as guardian of Dutch East Indian
finance, has had to meet many of the problems
which have confronted the European banks of
issue in their relations to their governments.
11 picul equals 136 pounds.
OCTOBER,
1921.
1197
FEDERAL RESERVE BULLETIN.
PRINCIPAL ASSETS AND LIABILITIES OF THE JAVASCHE BANK ON THE LAST OF MARCH, 1915-1921, AND ON AUGUST I
1921.
[In thousands of florins.]
Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 29, Mar. 27, Mar. 26, Aug. 6,
1915.
1916.
1917.
1921.
1918.
1921.
1919.
1920.
ASSETS.
Gold
Silver
30,890
29,025
46,775
33,667
72,099
23,669
92,167
19,409
127,706
10,748
173,675
4,378
224,974
12,008
207,930
19,363
Total metalic reserve
Discounts,loans, and advances
Foreign bills
Securities and mortgages
All other assets
59,915
72,104
5,710
8,347
5,878
80,442
54,834
15,697
8,716
29,170
95,768
56,534
37,208
8,546
8,445
111,576
80,231
34,161
8,224
21,544
138,454
174,662
22,069
8,077
12,980
178,053
186,736
16,055
8,494
43,207
236,982
190,937
24,883
7,416
34,596
227,293
168,586
25,081
7,515
37,318
151,954
188,859
206,501
255,736
356,242
432,545
494,814
465,793
6,000
3., 119
118,085
19,235
1,928
3,587
6, .000
2,761
144,883
27,102
4,470
3,643
6,000
3,175
157,946
32,072
3,086
4,222
6,000
3,162
180,755
56,055
5,181
4,583
6,000
3,644
210,776
123,127
2,911
9,784
6,000
3,942
314,315
89,309
2,741
16,238
6,000
3,982
325,809
138,966
2,491
17,566
6,000
4,913
305,628
137,431
3,039
8,782
151,954
188,859
206,501
255,736
356,242
432,545
494,814
465,793
Tbtalassets
LIABILITIES.
Capital
Reserve fund
Notes in circulation
Deposits
Bills payable
All other liabilities
Totalliabilities
PRINCIPAL A S S E T AND LIABILITY I T E M S OF T H E N E T H E R L A N D S
BANK.
[In thousands of florins.]
Metallic reserve.
Date.
Gold.
1920.
Aug. 30
Sept.27
Oct. 25
Nov.29
Dec. 27
1921.
Jan.31
Feb. 28
Mar.29
Apr.25
May 30
June 27
July 25
Aug. 29
INDEPENDENT CURRENCY FOR THE I N D I E S .
As the Dutch East Indies has more and more
established its position as a country with a
favorable trade balance, the solution of the
problem of financial independence and a separate currency which has long been considered
has become more urgent. A commission under
Dr. Vissering has been instituted to study the
requirements. The special difficulties attending an actual separation of the currency, aside
from the economic position of the Colony, will
be the fluctuations in the value of silver, and
the existence already of a considerable amount
of special Indian paper money, small uncovered
notes of the Javasche Bank, which the Government was forced to issue during the war.
On account of the lack of silver money in
1919, which was partly due to the fact that the
Silver.
Total.
Advances
Loans, to Govdiscounts, ernment Foreign
and
bearing
biiis:
advances. no interest.
Notes in
circulation.
636,340
636,347
636,141
636,141
636,141
16,530
17,732
18,944
20,171
21,190
652,870
654,079
655,085
656,312
657,331
407,259
415,859
441,216
447,066
444,428
3,205
478
6,523
14,951
13,832
46,484
39,435
29,041
44,415
52,754
1,026,033
1,030,310
1,057,317
1,078,032
1,072,145
636,141
636,141
621,034
610,977
605,965
605,969
605,969
605,969
22,456
20,392
16,687
14,434
13,065
12,331
11,159
10,566
658,597
656,533
637,721
625,411
619,030
618,300
617,128
616,535
444,777
407,872
408,336
440,165
408,969
374,971
392,002
382,453
14,573
14,740
14,916
13,493
1,276
13,138
14,957
43,017
35,992
18,708
39,502
48,695
49,234
48,583
47, 894
1,072,109
1,053,417
1,036,816
1,043,276
1,029,565
991,929
1,012,790
1,004,129
silver currency of the Indies was leaving the
country in considerable quantities because of
its high silver value, and partly because during
the war the demand for circulation medium
could not be met by importation of gold or
silver, the Government was compelled to
authorize the bank to issue paper money of
small denominations, for which the bank was
willing to provide the necessary cover. This
the Government regarded as unnecessary, since
the note issue was intended to be only a temporary measure. The notes thus became a
kind of intermediary between bank notes and
State notes, and were not interchangeable with
silver. Instead, however, of being temporary,
their circulation has continued to increase from
the first issue of 5,700,000 florins October 4,
1919, to about 51,000,000 florins the middle of
April, 1921, and the original maximurn^of
1198
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
CHANGE OF NAME.
10,000,000 florins has been increased to 400,000,000 florins. In the process of separation Alameda Savings Bank, Alameda, Calif., to Bank of Alameda.
of the Indian monetary system from that of the
BANK EE OPE NED.
Netherlands, the position of these notes will
Guaranty State Bank, Troup, Tex.
have to be defined, perhaps by a gradual change
WITHDEAWALS.
to silver money.
Gold currency, represented by the 10-florin Farmers State Bank, Cozad, Nebr.
piece, has not circulated to any extent in the Citizens Bank, Billings, Okla.
Colony, although from time to time large quanCONVEESIONS.
tities of gold have been sent from the Nether- The First State Bank, Oklahoma City, Okla., has converted into a
lands to the Javasche Bank to stabilize ex- national bank.
The Metropolitan Bank, New York, N. Y., has converted into a
change conditions created by the Indies' large national
bank.
export balances. This practice of exporting
CONSOLIDATION.
gold for stabilization of exchange with the The Stockgrowers State Bank, Pawhuska, Okla., has consolidated
Colony has, for the present at any rate, been with the Citizens National Bank of Pawhuska.
abandoned. The Bank of Netherlands decided
VOLUNTAEY LIQUIDATIONS.
a year ago not to seek further to maintain the
Farmers
&
Merchants
Bank, Boonton, N. J.
par rate by gold exports, both because the rate First State Bank of Quinlan,
Quinlan, Tex.
was dominated by abnormal world conditions
to such extent that it seemed doubtful whether
it could be thus maintained, and whether it
would be of benefit to the community if Fiduciary Powers Granted to National Banks.
achieved. The rates of exchange between the
Dutch East Indies and the Netherlands the The applications of the following banks for permission
to act under section 11-k of the Federal Reserve Act were
past two years have fluctuated between 0.95 approved
by the Board during the month ending Sep
and 1.04| Dutch florins for 1 colonial florin.
tember 30, 1921.
DlSTEICT N O . 1.
State Banks and Trust Companies.
ADMISSIONS.
The following list shows the State banks and trust
companies which were admitted to membership in the
Federal Reserve System during the month ending September 30, 1921, on which date 1,617 State institutions
were members of the system, having a total capital of
$583,190,000, total surplus of $528,699,084, and total resources of $9,950,987,334.
Capital.
Surplus.
Total
$100,000
$50,000
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Pulaski National Bank, Pulaski, Va.
Central National Bank, Richmond, Va.
50,000
3,084
395,253
200,000
100,000
2,721,283
30,000
3,000
134,759
65,000
50,000
25,000
100,000
574,205
180,363
50,000
50,000
10,000
30,000
785,779
520,256
District No. 12.
Mission Savings Bank, San Francisco,
Calif
Commercial Bank, San Luis Obispo,
Calif
Bank of Commerce, Oregon City, Oreg.
DISTEICT NO. 7.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank, Montpelier, Ind.
DISTEICT NO. 8.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver,'and committee of estates of lunatics:
Exchange National Bank, Little Rock, Ark.
District No. 7.
Strawberry Point State Bank, Strawberry Point, Iowa
Victor Savings Bank, Victor, Iowa
DISTEICT No. 3.
DISTEICT N O . 5.
District No. 6.
Citizens Bank of Claxton, Claxton, Ga.
Greenville Banking Co., Greenville,
Ga
Morgan County Bank, Madison, Ga..
Khine Banking Co., Rhine, Ga
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Metropolitan National Bank, New York, N. Y.
Suffolk County National Bank, Riverhead, N. Y.
First National Bank, Butler, N. J.
$150,000
District No. 4.
The Minerva Banking Co., Minerva,
Ohio
First-Tyler Bank & Trust Co., Sistersville,W.Va
DISTEICT No. 2.
Guardian of estates, assignee, receiver, and committee of estates of
lunatics:
First National Bank, Stroudsburg, Pa.
District No. 2.
Boonton Trust Co., Boonton, N. J
Trustee, executor, administrator, registrar of stocks and bonds,
guardian of estates, assignee, receiver, and committee of estates
of lunatics: '
First National Bank, Attleboro, Mass.
DISTEICT N O . 9.
Trustee, executor, administrator, and guardian of estates:
First National Bank, Blooming Prairie, Minn.
500,000
28,000
7,387,089
DISTEICT NO. 12.
700,000
100,000
50,000
26,000
5,348,620
1,064,959
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Seaboard National Bank, Seattle Wash.
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
1199
RULINGS OF THE FEDERAL RESERVE BOARD.
Purpose of original negotiation determines eligibility and
classification of paper.
The Board recently ruled that a note of a
grain dealer or other purchaser of grain given
to a grower in whole or part payment for grain
purchased for resale is commercial paper, even
though the grower subsequently discounts the
note and uses the proceeds for an agricultural
purpose, and that the same principle applies to
a draft drawn by the grower and accepted by
the purchaser in whole or part payment for
grain purchased for resale.
The principle upon which this ruling is predicated, and which has been enunciated in previous rulings of the Board, is that the purpose
of the original negotiation of an instrument determines the eligibility and classification of the
instrument, and that any subsequent negotiations are immaterial from this standpoint. In
other words, the transaction out of which an
instrument arises in the first instance determines its eligibility and classification, irrespective of the nature of any transaction in which
the instrument may be negotiated subsequently.
For example, if a note is given in the first instance in payment for securities, other than
bonds or notes of the United States, the note is
ineligible for all time and will not be made eligible by the payee's subsequent negotiation in
a commercial or agricultural transaction.
The original negotiation of a dealer's note
given to a farmer in payment for goods purchased
for resale takes place when the dealer delivers
the note to the farmer, and the purpose of this
original negotiation is to finance the purchase
and resale of a part of the dealer's stock of
goods. This purpose is, of course, a commercial rather than an agricultural one, and the
case does not come within the intent of that
provision of the Federal Reserve Act which permits the discount by Federal Reserve Banks of
paper with a maturity in excess of 90 days when
drawn or issued for agricultural purposes.
Such a note should not, therefore, be classed as
agricultural paper eligible for discount at Federal Reserve Banks with a maturity not in excess of 6 months from the date of discount, but
should be classed as commercial paper which is
eligible for discount only when maturing within
90 days from the date of the discount.
Growers' drafts accepted by cooperative marketing association.
The Federal Reserve Board recently considered the question of whether certain drafts
drawn upon and accepted by a, tobacco growers'
cooperative marketing association should be
classed as agricultural paper eligible for rediscount at Federal Reserve Banks with a maturity up to 6 months, or should be classed as
commercial paper eligible for rediscount only
when its maturity is not in excess of 90
days.
The association was a nonstock and nonprofit corporation, and its members consisted
exclusively of growers of tobacco who had
agreed to sell and deliver to the association all
the tobacco grown by or for them or acquired by
them as landlord or lessor. The agreements
between the growers and the association provide for the pooling of the tobacco each year
by type and grade and for the distribution of
the proceeds of each pool pro rata among the
growers who have contributed to that pool.
The association is given power to sell the tobacco in such form and upon such terms as
may be deemed most advantageous to the
growers, it being contemplated that a part of
the tobacco will be sold without being redried
and that such of the tobacco as can not be sold
at a reasonable price in that form will be redried and stored by the association and sold
as there is a demand for redried tobacco. It
was stated to be necessary for the association
to make advances to the growers at the time
the growers deliver their tobacco to the association, and it was proposed that the association should make these advances by accepting
drafts drawn upon it by the growers, the
amount of the drafts to be equal to a fixed percentage of the estimated market value of the
tobacco delivered. These drafts were to be
discounted by the drawers with their own indorsements at their local banks.
The question upon which the Federal Reserve
Board was asked to rule is whether drafts so
drawn and so discounted could be eligible for
rediscount with Federal Reserve Banks as agricultural paper with maturities not in excess of
6 months, or could be eligible for rediscount
only as commercial paper with maturities not
in excess of 90 days.
The Federal Reserve Board ruled some time
ago that drafts drawn upon and accepted by
cooperative marketing associations, in transactions similar to those between the growers
and the tobacco growers' cooperative marketing
association in the instant case, were not trade
acceptances within the meaning of the Board's
regulations, for the reason that looking through
the form of these transactions and at the sub-
1200
stance thereof the drafts represented advancements made by the associations to the growers
rather than partial payments of the purchase
price of the commodities delivered to the
associations. Although the Board was not
asked at that time to rule upon the particular
question raised by the tobacco growers' cooperative marketing association, the Board did,
in order to define the scope of its ruling, intimate that the drafts then under consideration,
although not trade acceptances, would be
eligible as agricultural paper, provided that
the drawers discounted the drafts at their local
banks and used the proceeds for agricultural
purposes, and provided, also, that the drafts
complied in other respects with the requirements of the law and the Board's regulations.
A further consideration of the subject has
confirmed the Board in the views expressed in
its former ruling, and the Board ruled, therefore, that in its opinion drafts, with maturities
not in excess of 6 months, drawn by the growers, accepted by the tobacco growers' cooperative marketing association, and discounted by
the growers with their indorsements, in accordance with the statement of facts herein contained, would be technically eligible for rediscount at Federal Reserve Banks as agricultural paper when offered by member banks,
provided that the growers use the proceeds of
the drafts for agricultural purposes, and provided, also, that the drafts comply in other
respects with the requirements of the law and
the Board's regulations.
As indicated in the ruling headed " Purpose of
original negotiation determines eligibility and
classification of paper," published simultaneously with the present ruling, if the drafts
drawn by the growers had been drawn upon and
accepted by a tobacco dealer in payment for
tobacco purchased under an absolute sale at a
price definitely fixed at the time of the acceptance, the drafts would have to be classified as
commercial rather than agricultural paper.
In the case under consideration, however,
while the form of the transactions between the
grower and the acceptor of the drafts is a sale,
in substance it is only a consignment. The
grower rather than the association takes all
the risks incident to resale, since the association
does not agree to pay any fixed price, but only
such price as isequivalent to the average price
realized by the association upon the sale of
all the tobacco in that particular pool. Consequently, the acceptance of each draft by the
association is merely a loan of the association's
credit to the grower, rather than a payment on
account of the purchase price of the tobacco,
and the first negotiation of the draft takes place
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
when the grower discounts it at his local bank.
This ruling is therefore believed to be entirely
consistent with the foregoing ruling to the
effect that the original negotiation of a note or
draft determines for all time its eligibility and
classification.
New National Bank Charters.
The Comptroller of the Currency reports the following
increases and reductions in the number and capital of
national banks during the period from August 27 to
September 23, 1921, inclusive:
New charters issued
Restored to solvency
Increases of capital approved
Aggregate of new charters, banks restored to
solvency, and banks increasing capital
Liquidations
Reducing capitall
Total liquidations and reductions of capital
Consolidations of national banks under act of
2,180,000
2,705,000
50,000
2,755,000
Nov. 7,1918
Aggregate increased capital for period
Reduction of capital owing to liquidations, etc.
Net decrease
575,000
i Includes one reduction in capital of $50,000 incident to a consolidation
under act of Nov. 7,1918.
Commercial Failures Reported.
The increase in number of failures over last year's comparatively moderate mortality continues sharply defined,
ftie 994 defaults reported to R. G. Dun & Co. during three
weeks of September largely exceeding the 418 insolvencies
of the corresponding period of 1920. The returns for
August, the latest month for which complete statistics are
available, disclose 1,562 commercial failures, involving
$42,904,409 of liabilities. Both as to number and amount
the August defaults are well below the high levels of the
present year, but comparison with the figures of last year
still shows largp increases, the insolvencies of August, 1920,
having numbered only 673 for $28,372,895 of indebtedness.
Examined according to Federal Reserve districts, the
August statement reveals more failures than in that month
of last year in all of the twelve districts, and only in the
second and third districts are the liabilities smaller than
those of August, 1920.
FAILURES DURING AUGUST.
Number.
Liabilities.
District.
1921
First.
Second
Third .
Fourth
Fifth...
Sixth
Seventh
Eighth.
Ninth
Tenth
Eleventh
Twelfth
Total
"
118
216
68
137
98
198
204
67
72
75
137
172
1,562
1920
1921
1920
58 $2,821,841
179 9,685,653
33 2,090,756
70 5,183,707
40 2,658,017
42 4,489,443
86 4,123,520
31 2,200,012
18 1,458,576
11
966, 896
33 1,991, 284
72 5,234,704
$780,210
15,009,838
3,066,914
1,347,045
691,785
2,605,429
3,177,188
288,672
85,515
85,735
411,027
823,537
673
28,372,895
42,904,409
OCTOBEE, 1921.
1201
FEDERAL RESERVE BULLETIN.
PRICE MOVEMENT AND VOLUME OF TRADE.
WHOLESALE PRICES IN THE UNITED STATES.
The trend of prices in August was commented on in the BULLETIN for September.
Comparing the recent price situation with that of a year ago, the Federal Reserve allcommodities index shows a drop of 91 points between August, 1920, and 1921. Expressed in
a percentage this means a decline of 39 per cent. The index of the Bureau of Labor Statistics
records a drop of the same percentage during the period, although the level of prices (when
compared with 1913) works out somewhat higher in the case of the Department of Labor index
than in that of the Federal Reserve Board.
The most extreme price reductions have occurred in agricultural lines, the percentage
decrease between August of last year and this year amounting to over 50 per cent. Although
the decline in prices of animal products (including wool and hides) has not been so great, this
group of commodities is nearer the prewar level than any other group. Mineral products
have been reduced less than any other group of raw materials (somewhat less than 35 per cent),
and forest products are about 43 per cent lower than a year ago.
Contrasting the rate of decline in raw materials with that in finished consumable goods,
it appears
that the former as a whole have declined between 40 and 45 per cent, while consumers7 goods as a whole are probably not more than 30 to 35 per cent lower than a year ago.
INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES
1919-1921
CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR THE PURPOSE OF INTERNATIONAL COMPARISON
AVERAGE PRICE LEVEL OF 1913 = 1OO
300 |
280
,
,
1
1
1
,
1
n
1
, ,
,
,
- ——
1
,
\
\
f
200
i
i
--*
\
\
\
V
\\
,
, 300
280
-A
220
\
A
\\
\
\ \ \
,
240
y
,\
1
220
1
260
4-
240
| 160
1
PRODUCERS GOODS
260
5180
1
ALL COMMODITIES
GOOD? IMPORTED -
K
200
180
5
160|
\
\
|i40
V
\
\
\
•si
120
—v-
'••
120
v
100
80
YEAR
100
80
J. 0.
A. S. 0. N. D J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M, A. M. J. J. A S. 0. N. D
J. A. S. 0. N. D J. F. M. A. M. J. J. A. S. 0. N. D. J. F. M. A.M. J. J. A.S. 0. N.
YEAR
1919
1920
1921
1919
1920
1921
1202
FEDERAL RESERVE BULLETIN.
OCTOBER,
1921.
INDEX NUMBERS OF WHOLESALE PRICES IN UNITED STATES—CONSTRUCTED BY THE FEDERAL RESERVE BOARD FOR
THE PURPOSE OF INTERNATIONAL COMPARISON. 1
[Average price for 1913=* 100.]
Date.
1919, average
1920, average
1920, August
All commodities.
Goods
produced.
Goods
imported.
Goods
exported.
209
236
238
174
191
182
214
227
229
209
235
237
198
237
235
207
229
229
206
233
234
166
156
152
145
145
141
144
145
114
113
114
109
105
102
103
104
142
135
125
121
125
122
122
123
164
152
146
136
139
133
134
133
166
158
153
148
145
140
136
133
159
152
151
147
144
144
152
157
163
154
150
143
142
139
141
143
Producers' Consumers'
Raw
goods.
goods.
materials.
1921.
January
February
March
April
May
June
July
August
i The index number of the Federal Reserve Board has been constructed primarily with a view to international comparisons of wholesale prices.
Due to the difficulties connected with the collection of foreign prices, the foreign index numbers are still incomplete, but in spite of this it has
seemed advisable to publish the American number, since it contains certain classifications of commodities not otherwise available, namely, the
prices of the important goods imported into this country, and of goods largely exported, and compares them with the general price level in the
United States. The number has been published monthly since May, 1920, but is computed for the years 1913, 1919, and the first of 1920 as well.
For detailed information regarding the makeup of the number, reference may be made to the FEDERAL RESERVE BULLETIN for May, 1920,
pages 499-503. The commodities included in the different groups are listed there with exact specifications and markets indicated. The "weights"
assigned to the different commodities in constructing the index numbers are also given in detail. Revisions in prices or weights appear in
BULLETINS for June, 1920, and June, 1921.
The index of " goods produced" consists of 74 quotations (30 raw materials, 24 producers' and 20 consumers' goods). These include agricultural
products (such as grains, live stock, and textiles), minerals, and lumber, among the raw materials; yarns, leather, semifinished steel products,
refined oils, chemicals, building materials, etc., among the producers' goods; and potatoes, meats, flour, rice, dairy products, cotton and woolen
cloths, boots and shoes, and kerosene among the consumers' goods.
The index of "goods imported" consists of 18 quotations (9 raw materials, 7 producers' and 2 consumers' goods). It includes Egyptian cotton,
Australian and South American raw wool, Japanese and Chinese silk, South American hides, Straits tin, and Canadian lumber among the raw
materials; plantation and Para rubber, Chilean nitrate, cane sugar, burlap,sisal, etc., among producers' goods; and tea and coffee for consumers'
goods.
Leading American exports are included in the index of prices of "goods exported," which is made up of 40 quotations (17 raw materials, 12
producers' and 11 consumers' goods). Grains, tobacco, cotton, copper, coal, pig iron, petroleum, and lumber make up the list of raw materials;
vegetable oils, leather, semifinished metal products, refined oils, and chemicals the producers' goods; and wheat flour, refined sugar, pork products,
coffee, cotton cloth, boots and shoes, and kerosene the consumers' goods.
The index numbers
pn "
. ... . of_ "raw
..... materials,"
, ""producers'
goods," and "consumers' goods" consist of the commodities mentioned above which
fall into these classes, whether they are of domestic or foreign origin. The raw materials group includes 39 quotations, the producers' goods 29,
and the consumers' goods 22.
The "all commodities" index is obtained by combining the group indexes of domestic and foreign goods. It consists of 90 different quotations.
The quotations are obtained from representative trade journals and private firms. About half of them are the same that are used by the
Bureau of Labor Statistics in its larger compilation of prices and are furnished to the Board by that bureau.
INDEX NUMBERS OF WHOLESALE PRICES IN THE UNITED STATES FOR PRINCIPAL CLASSES OF COMMODITIES—BUREAU
OF LABOR STATISTICS—REGROUPED BY FEDERAL RESERVE BOARD. 2
[Average price for 1913= 100.]
Raw materials.
Year and month.
August
January
February
March
April
May
June
July
August
Producers' Consumers' All comgoods.
goods.
modities.
Agricultural
products.
Animal
products.
Forest
products.
Mineral
products.
Total raw
materials.
259
181
351
265
251
238
250
250
155
145
136
126
131
125
122
123
119
114
116
106
104
102
109
112
245
225
210
205
205
204
203
200
220
207
197
189
188
182
177
175
175
164
157
149
149
145
145
145
169
155
149
143
140
137
134
132
182
171
168
159
153
152
153
162
177
167
162
154
151
148
148
152
1920.
1921.
,
,
,
,
,
upon the same number, forest products based upon 11 quotations, and mineral products bafed upon 27 quotations. The FEDERAL RESERVE
BULLETIN for October, 1918, contains a list of the commodities in each group. The weights are the same as those used by the Bureau of Labor
Statistics.
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. The prices shown in the
table have been obtained from the records of
the United States Bureau of Labor Statistics;
except in the case of bituminous coal, prices
for which have been obtained from the Coal
Age.
i203
FEDERAL RESERVE BULLETIN.
OCTOBER, 1021.
AVERAGE MONTHLY WHOLESALE PRICES OF C O M M O D I T I E S .
[Average price for 1913=100.]
Corn, No. 3,
Chicago.
Cotton, middling,
New Orleans.
W h e a t , N o . 1,
northern spring,
Minneapolis.
W h e a t , No. 2,
red winter,
Chicago.
Cattle, steers,
good to choice,
Chicago.
Hides, packers,
heavy'native
steers, Chicago.
Year a n d m o n t h .
1913
1919
1920
Average
price per
bushel.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
100
pounds.
$0.6155
1.5800
1.396«
100
257
227
$0.127C
. 31X5
.3301
100
251
260
$0. S735
2.5660
2.5581
100
294
293
$0.9S63
2.5370
2.5225
100
239
256
$S. 5072
17.4957
14.4850
100
206
170
SO. 1839
3931
.3122
100
210
174
1.5310
249
.3380
266
2.5500
292
2.4735
251
15.3500
180
.2850
155
.6553
. 6350
. 61S0
.5547
,6090
.6075
.6019
.5578
106
103
100
90
99
99
98
91
.1450
.1322
.11C5
.1116
.1178
.1101
.1147
.1290
114
104
87
88
93
87
90
102
1.7884
1.6713
1.6135
1.4059
1.4923
1.4994
1.4384
1.3953
205
191
185
161
171
172
165
160
1.9613
l.*9194
1.6798
1.3869
1. 5680
1.43S4
1.2291
1.2373
199
195
170
141
159
146
125
125
9.8400
9.3125
9.5625
8.7188
8.4250
8.093S
8.4063
8.7750
116
109
112
102
99
95
91)
103
. 1675
. 1363
.1150
. 1019,
. 1188
.1395
, liiSS
.1405
91
71
63
55
65
76
75
76
Rela- Average
tive
price per
price, v pound.
Relative
price.
1920.
August
1921.
January .
February.
March .
April.
,.
Mav
June
Julv
August
-
Hogs, light,
Chicago.
Wool, Ohio, H
grades, scoured,
eastern markets.
Hemlock, New
York.
Yellow pine,
flooring,
New York.
Coal, bituminous, Coal, bituminous,
r u n of mine, f. o. b . Pocahontas, {. o. b
spot a t mines,
sp^t a t mines,
Pittsburgh.
Columbus.
Year and month.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
M feet.
Relative
pnco.
Average
price per
M feet
manufactured.
Relative
price.
$8.4541
18.3260
14. 7106
100
217
174
$0. 4710
1.1894
.9712
100
248
203
$24.2273
39.7500
56.6667
100
164
234
$44.5909
78.8333
145.4167
100
177
326
$1.3200
100
i $1.5710
100
6.0433
458
5.8891
375
15.7350
186
.8727
185
57,0000
235
157.0000
352
10.6300
805
8.6300
549
9.6700
9.7063
10.3063
8.8563
8.4550
8.2500
10.2000
10.3950
114
115
122
105
100
98
121
123
.5455
.5455
.5273
. 5273
.5091
.4909
.4909
.4727
116
116
112
112
10S
104
104
100
48.0000
48.0000
48.0000
41.0000
41.0000
41.0000
37.5000
37.2500
198
198
198
169
169
169
155
154
110.0000
95.0000
95.0000
91.0000
91.0000
91.0000
91.0000
92.0000
247
213
213
204
204
204
201
206
2.5300
2.4200
2.2900
2.2500
2.1310
1.9000
2.0750
2.1300
192
183
173
170
161
144
157
161
4.2500
3.7300
3.4000
3.3625
3.4940
3.4250
3.2000
3.0600
271
237
216
214
222
218
204
195
Average
price per
pounds.
1913
1919 . .
1920
Average Relaprice per
tive
short ton. price.
Average Relaprice per
tive
short ton. price.
1920.
August
,
1921.
January
February
March
April
.
May
June
July
August
.
Coal, anthracite,
stove, New York,
tidewater.
Coke, CDnnellsville, at furnace.
Average
price per
long ton.
Relative
price.
Average Relaprice per
tive
short ton. price.
$5.0613
8.1639
9.4265
100
161
186
$2.4396
4.7375
10.8153
9.6087
190
10.6373
10.6382
10.6382
10.1380
10.2910
10.3900
10.5048
10.6036
210
210
210
200
203
205
208
210
Copper, ingot,
electrolytic,
New York.
Lead, pig,
desilverized,
N e w York.
Petroleum, crude, Pig iron, basic,
Mahoning a n d
Pennsylvania,
Shenango Valley,
at wells.
a t furnace.
Year and month.
1913
1919.. .
1920
Average
price per
pound.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
barrel.
Relative
price.
Average
price per
long ton.
100
194
443
$0.1573
.1911
.1797
100
122
114
$0.0440
.0578
.0808
100
131
184
$2.4500
4.1346
5.9750
100
169
244
$14.7058
27.6971
42.2692
100
188
287
15.5500
637
.1900
121
.0898
204
6.1000
249
48.1000
327
5.5313
5.1875
5.0000
3.7188
3.3250
3.0938
2.9063
2.8000
227
213
205
152
136
127
119
115
.1288
.1288
. 1223
.1247
.1283
.1284
.1253
.1173
82
S2
78
79
82
82
80
75
.0497
.0468
.0405
.0428
. 0495
.0451
.0440
.0440
113
106
92
97
133
103
100
100
5.7750
4.1875
3.0000
3.1875
3.3500
2.6250
2. 2500
2.2500
236
171
122
130
137
107
92
92
30.0000
27.5000
24.2000
22.8750
22.0000
20. 7500
19.3750
18.2000
204
187
16ft
156
150
141
132
124
1920.
August
January
March
April
May
.Turie
July..
August
1921.
. ..
..
i On Toledo market, average for last six months of 1913.
Relative
price.
1204
FEDERAL, EESERVE BTJLLETltf.
OCTOBER, 1921.
AVERAGE MONTHLY WHOLESALE PRICES OF COMMODITIES—Continued.
Cotton yarns,
northern cones,
10/1 Boston.
Leather, sole,
hemlock, No. 1,
Chicago.
Steel billets,
Bessemer,
Pittsburgh.
Steel plates,
tank, Pittsburgh.
Steel rails,
open hearth,
Pittsburgh.
Worsted yarns,
2-32's crossbred,
Philadelphia.
Year and month.
Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive
pound. price. pound. price. long ton. price. pound. price. long ton. price. pound. price.
1913
1919
1920
'
.
1920.
August
January
February
March.
April
May .
June
July
August
1921.
Year and month.
$0.2213
.5340
.6245
100
241
282
$0.2821
.5283
.5342
100
187
189
$25. 7892
40.5385
56.2596
100
157
218
$0.0148
.0271
.0328
100
183
222
$30.0000
49.2642
53.8269
100
164
179
$0.7767
1.6274
1.8250
100
210
235
.6310
285
.5500
195
61.0000
327
.0325
220
54.5000
182
1.7500
225
.2878
.2775
.2447
.2388
.2491
.2545
.2411
.2586
130
125
111
108
113
115
109
117
.4000
.3800
.3700
.3700
.3700
.3700
.3500
.3400
142
135
131
131
131
131
124
121
43.5000
42.2500
38.4000
37.5000
37.0000
37.0000
32.2500
29.6000
169
164
149
145
143
143
125
115
.0265
.0233
.0204
.0210
.0220
.0195
.0185
.0178
179
157
138
142
149
132
125
120
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
47.0000
157
157
157
157
157
157
157
157
1.1500
1.1500
1.2000
1.2000
1.2500
1.2000
1.1500
1.1500
148
148
155
155
161
155
148
148
Flour, wheat,
Beef, carcass, Coffee, Rio, No. 7, standard patents Hams, smoked,
(1918,
standard
good native
Chicago.
New York.
war),
steers, Chicago.
Minneapolis.
Illuminating oil,
150°firetest,
New York.
Sugar
granulated,
New York.
Average Rela- Average Rela- Average Rela- Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive price per tive price per tive price per tive
pound. price. pound. price. barrel. price. pound. price. gallon. price. pound. price.
1913
1919...
1920
August .
January
February
March.
$0.1295
. 2333
.2304
100
180
178
$0.1113
.1785
.1198
100
160
108
$4.5837
11.9982
12.6750
100
262
277
$0.1662
.3433
.3340
100
207
201
$0.1233
.2004
.2629
100
163
213
$0.0427
0894
.1267
100
209
297
.2550
197
.0936
84
12.2350
267
.3725
224
.2600
211
.1490
349
.1738
.1600
.1625
.1650
.1650
.1600
.1490
.1600
134
124
125
127
127
124
115
124
.0669
.0672
.0639
.0600
.0621
.0666
.0647
.0703
60
60
57
54
56
60
58
63
9.6250
9.1813
8.7300
7.9500
8.7450
9.0063
8.9000
8.1200
210
200
190
173
191
196
194
177
.2488
.2600
.2725
.2763
.2725
.2822
.3200
.3248
150
156
164
166
164
170
193
195
.2900
.2750
.2625
.2540
.2400
.2200
.2200
.2200
235
223
213
206
195
178
178
178
.0757
.0709
.0784
.0725
.0632
.0569
.0546
.0583
177
166
184
170
148
133
128
137
1920.
1921.
April
May
June...
July
August
. . . .
1205
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
FOREIGN TRADE INDEX.
There is presented below a series of indexes
designed to reflect movements in foreign trade
of the United States, with fluctuations due to
price changes eliminated. The commodities
chosen for these indexes are those for which
prices are compiled by the Federal Reserve
JBoard in the preparation of its international
price index. The list includes 25 of the most
important imports the value of which in 1913
formed 47.7 per cent of the total import values,
and 29 of the most important exports the value
of which in 1913 formed 56.3 per cent of the
total export values. The classification of the
original list of commodities used was given in
the July, 1920, BULLETIN. The classification
of the 11 additional commodities of imports
was given in the April, 1921, BULLETIN.
There was a considerable increase in the total
volume of both exports and imports during
August. Exports of raw materials and of consumers' goods Were much larger than in July,
while the volume of producers' goods exported
showed little change. The increase in exports
of raw materials was wholly due to large shipments of grain from this country, as the volume
of exports of all other unmanufactured products actually declined. In the group of consumers' products, exports of wheat flour showed
the greatest growth, although August exports
of shoes, hams, lard, cotton cloth, and illuminating oil were all larger than those of July.
Exports of cotton cloth have now shown a
steady growth for six consecutive months.
Among the producers' commodities, exports of
gasoline and acetate of lime showed a considerable increase, while exports of steel rails and
upper leather declined. August was the seventh successive month to register a falling off
in exports of cottonseed oil.
The increase in volume of August imports
was most noticeable in the case of producers'
goods. Imports of cane sugar, India rubber,
and nitrate of soda were much greater than in
July, while paper imports were larger than in
any previous month this year. Imports of
raw materials and consumers' goods also
showed moderate increases. Silk imports
reached the highest monthly totaj for over a
year. Imports of flaxseed and lumber in
August exceeded those of any month since
October, 1920, while imports of tobacco were
greater than in any month since February.
INDEX OF VALUE OF FOREIGN TRADE IN SELECTED COMMODITIES AT 1913 PRICES.
[Monthly average values, 1913 = 100.]
Exports.
Imports.
Raw mate- Producers' Consumers' Total (29
goods (7
goods (10
rials
comcomcom(12 commodities). modities). modities). modities).
Raw mate- Producers' Consumers' Total (25
goods (3
goods (12
rials
comcom(10 comcommodities). modities). modities). modities).
1913—Year
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
1919—Year
88.9
154.7
188.5
118.6
157.5
193.0
161.4
171.1
1920—Year
92.2
142.6
137.9
107.7
135.2
227.3
155.3
171.7
105.2
91.0
78.2
76.6
97.7
107.9
111.6
142.5
187.9
141.0
104.4
102.7
81.8
74.4
68.3
68.1
126.0
116.4
122.4
122.5
112.8
135.1
131.8
164.1
117.6
101.6
91.1
89.9
100.0
111.3
112.5
140.9
74.5
118.2
160.7
153.4
98.7
94.5
99.3
116.7
130.8
143.5
177.4
177.7
150.1
152.5
126.5
164.8
146.5
160.8
209.3
206.3
179.3
126.7
114.9
126.3
104.7
133.1
173.2
169.3
128.2
119.7
111.4
135.7
January
February.
March
April
May
June.
July
August .
1921.
. .
. . . .
1206
FEDEKAL, RESERVE BULLE
INDEX OF OCEAN FREIGHT RATES.
The accompanying table shows the monthly
fluctuations in ocean freight rates prevailing
between United States Atlantic ports and the
principal European trade regions. The figures
are derived from the actual rates quoted on the
following commodities: Grain, provisions, cotton, cottonseed oil, and sack flour. For the
methods used in constructing the index, see
the August, 1921, BULLETIN, pages 931-934.
During September rates in all the European
trades remained substantially unchanged until
the final week of the month, when the rate on
heavy grain to the United Kingdom was cut
from 5 shillings to 4 shillings per quarter (480
pounds). Rates to French Atlantic and
Netherlands ports were reduced correspondingly, and the steamship lines comprising the
Baltic-Scandinavian conference took similar
action following the announcement of the
lower tariffs in the United Kingdom and Continent trades. As a result of these rate revisions
the September index numbers all show moderate declines from August, although, on account
of the higher rate level in effect during most
of September, the full extent of the recent
OCTOBER,
1921.
decline can not be reflected in the index until
October.
RELATIVE OCEAN FREIGHT RATES IN UNITED STATES AND
EUROPE TRADE.
(January, 1920, rates=100.]
United States Atlantic ports t o Month.
United French NetherScandiKing- Atlantic. lands
and
navia.
dom.
Belgium.
Mediterranean.
All
Europe
1920.
January
February
March
April
May
June
July
August
September
October
November
December
100.0
96.5
91.2
90.2
96.2
101.2
96.0
85.7
86.7
84.9
77.8
72.3
100.0
86.9
78.5
87.2
85.9
87.1
85.6
77.9
73.7
68.9
51.6
38.5
100.0
83.3
78.0
78.9
87.3
89.5
82.1
70.4
66.9
70.9
59.9
47.0
100.0
90 1
84.6
82.7
82.5
82.1
82.0
82.1
82.1
75.3
59.6
51.6
100.0
91.1
79.5
72.2
75.2
76.5
75.3
73.2
71.6
69.6
59.2
49.2
100.0
90.3
83.4
83.5
87.5
90.0
86.3
78.5
76.9
75.4
63.8
53.6
1921.
January
February
March
April
May
June
July
August
September
60.7
54.7
49.3
50.1
50.6
42.7
42.5
42.9
41.8
30.2
27.7
24.6
32.6
35.0
34.7
33.2
33.4
32.7
34.1
29.2
28.3
36.6
38 2
38.3
37.0
36.7
35.8
42.9
30.9
30.8
29.4
31.3
31.3
29.0
28.4
28.2
43.2
43.8
42.2
35.7
34.6
34.0
34.7
34.3
33.6
43.3
38.5
35.9
39.0
40.1
37.6
36.8
36.7
36.0
OCTOBER CROP REPORT.
Forecasts and preliminary estimates issued
by the United States Department of Agriculture as of October 1, 1921, are shown in the
table following, in comparison with estimates
of production for the past crop year.
Corn production is expected to be somewhat
larger than the September forecast, and only
69,000,000 bushels less than last year's record
crop. The preliminary estimate for wheat is
741,000,000 bushels, compared with 787,000,000
bushels last year, the larger part of the decrease being in winter wheat. A further reduction of 500,000 bales in the cotton forecast
brings the total down to 6,537,000 bales, or
somewhat less than one-half of last year's estimated production. The preliminary estimate
for oats is 1,079,000,000 bushels, or nearly onethird less than a year ago, while the estimate
for hay is about 12 per cent below the 1920
amount.
PRODUCTION OF CORN, WHEAT, COTTON, OATS AND HAY, BY FEDERAL RESERVE DISTRICTS—OCTOBER 1 1921
FORECAST OF THE DEPARTMENT OF AGRICULTURE.
'
'
[In thousands of units of measurement.]
Corn (bushels).
Federal Reserve
District.
Boston
New York.
Philadelphia....
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total
Oct. 1
forecast
for 1921.
Total wheat
(bushels).
Spring wheat
(bushels).
343
10,095
22,745
34, 552
27, 542
7,130
61, 964
60, 396
135,105
248,121
19,604
113,058
368
12,016
23,022
35,442
36,871
6,363
66, 530
60, 611
145, 521
282,060
18,222
100,102
343
450
279
341
368
740
311
463
8,231
529
129, 302
13,240
643
43,418
11,643
716
138,862
13, 375
714
42,173
3,163,063 3,232, 367
740,655
787,128
196,776
209,365
450,971
281, 559
483, 966
206,152
9,072
Oats (bushels).
PrelimiPrelimiPrelimiOct.l
nary
Estimate nary
Estimate forecast
Estimate
Estimate
nary
for 1920. estimate for 1920. estimate for 1921. for
for 1920. estimate
1921.
for 1921.
for 1921.
for 1921.
4,535
38,550
63,133
216,642
202, 850
266, 055
987, 897
441,118
259,126
542,699
199,638
10,124
5,810
44,643
64,609
201,017
181, 536
305, 067
Cotton (bales).
1,143
1,456
2,570
2,459
1,344
2,161
384
2,126
177
2
6,537
1,188
4,881
1168
2
13,440
8,703
30,326
21,169
51,454
25,141
33, 839
Hay, tame and wild
(tons).
PrelimiEstimate
nary
Estimate
for 1920. estimate for 1920.
for 1921.
9,571
46, 797
28,882
92,711
25,626
28, 090
587, 706
77, 814
306, 867
229,297
48,296
44,398
3,552
4,649
2,466
5,596
4,205
4,686
14, 747
7,280
15,492
16,048
2,008
13, 890
4,211
6,005
2,945
6,209
4,751
4,594
17,129
8,183
17,896
20, 301
2,005
14,004
1,078, 519 1,526,055
94,619
108,233
58,477
211,153
171,104
45,052
43, 713
1 In addition, the following amounts were estimated grown in Lower California (Mexico): Oct. 1,1921, forecast, 31,000 bales; estimate for 1920
' a Cotton grown outside of cotton belt included as follows: Oct. 1,1921, forecast, 7,000 bales; estimate for 1920,13,000 bales.
OCTOBEB, 1921.
1207
FEDERAL RESERVE BULLETIN.
PHYSICAL VOLUME OF TRADE.
The volume of production and trade showed
a more general upward trend in August than
in any previous month this year. The increase
in agricultural movements was particularly
noteworthy. Wheat receipts at 17 interior
centers exceeded the record total of July, while
receipts of corn and oats also showed large increases. Stocks of grain at interior and seaboard centers were considerably augmented, in
spite of a shrinkage in corn stocks. August
production of wheat flour showed a marked
increase for the second successive month.
Live-stock movements closely paralleled those
of grain, and August receipts at 59 markets
were appreciably larger than in July, despite a
falling off in hog receipts. Movements of
sugar, cotton seed, California deciduous fruits,
and rosin also increased during August, while
movements of California citrus fruits and of
turpentine declined in volume.
There was a noticeable increase in fuel production during August. Both by-product and
beehive coke production increased after a long
period of decline. The output of anthracite and
bituminous coal mines also showed a moderate
gain. Petroleum production in August was
slightly larger than in July, but drilling operations were noticeably curtailed.
Production of iron and steel increased during
August, but unfilled orders of the United States
Steel Corporation continued to decline. Copper production showed an upward trend in
August, but zinc mining showed a slight curtailment. Imports of pig tin were larger than
in July.
Textile production was well maintained during August, although there was some increase
in the percentage of idle wool machinery.
Cotton consumption showed a moderate increase, while imports of raw silk reached the
largest total of any month this year.
Reporting lumber associations increased both
their cut and shipments during August. There
was also a considerable increase in production
of wood pulp and of paper. August production of cement was the largest of any month on
record. Leather production also showed an
increase, and the August output of sole leather
was greater than in any month since June, 1920.
There was a marked gain in locomotive production, but the output of railroad cars and
vessels declined. Shipments of automobiles
were at about the same level as in July.
Revenue freight loaded by railroads was
about 12 per cent greater in August than in
July. This increase was about equally distributed among the leading classes of carload
freight, but was much greater in the East, the
Northwest, and the Central West than in other
sections of the country.
LIVE-STOCK MOVEMENTS.
[Bureau of Markets.]
Receipts.
August
1920.
1921
May
June
July
August
Shipments.
Cattle and
calves, 59
markets.
Hogs, 59
markets.
and
Sheep, 59 Horses
43
markets. mules,
markets.
Head.
1,944,506
Head.
2,382,204
Head.
2,560,802
Head.
72,556
Head.
6,960,068
Head.
869,849
Head.
953,088
Head.
1,459,198
Head.
68,571
Head.
3,350,706
1,531,682
1,572,334
1,335,548
1,856,948
3,311,976
3,559,165
2,717,247
2,647,965
1,886,817
1,812,339
1,738,957
2,467,048
17,824
13,292
10,696
15,933
6,748,299
6,957,130
5,802,448
6,987,894
591,770
605,822
490,751
842,254
1,037,466
1,136,269
915,998
927,962
915,116
763,577
760,172
1,110,134
16,610
13,214
10,036
14,661
2,560,962
2,518,882
2,176,957
2,895,011
and
Total, all Cattle
calves, 54
kinds.
markets.
Hogs, 54
markets.
and
Sheep, 54 Horses
43
markets. mules,
markets.
Total, all
kinds.
1208
FEDERAL. EESERVE BULLETIN.
MOVEMENT OF
AGRICULTURAL
OCTOBER, 1921.
COAL AND PETROLEUM
PRODUCTS
1919 -
1919 -1921
• LIVE STOCK RECEIPTS
—GRAIN AND FLOUR RECEIPTS
COTTON SIGHT RECEIPTS
220
INDEX NUMBERS. AVERAGE 1911-1913 = 1 0 0
2OO
h
18O
16O
12O
i
1OO
8O
2OO
2OO
2OO
18O
18O
18O
16O
16O
A
I
r
IN
v
/
...
1919
\ \j
\\\.
k
#V
:\ V
f
:
1920
4
14O
A
i
j
^ /
^
12O
1OO
A
1
\] f
A
12O
i
1
i /
i /
l /
10O
r /
\
V
8O
8O
6O
6O
AO
40
4O
2O
20
\i
u
\
\
f
80
V
•
r
I >A
12O
'1OO
14O
i
11
/
1921
I
—o
YEAR
1921
-O —
YEAR
TEXTILES
1919 - 1921
PIG IRON PRODUCTION
STEEL INGOT PRODUCTION
-UNFILLED ORDERS, U.S, STEEL CORPORATION
INDEX NUMBERS. AVERAGE 1911-1913 = 1 0 0
22O i
1
1
1
1
1
1
1
1
1
T
1
1 22O
1920
1919
IRON AND STEEL
1919 - 1921
22 O
16O
V
A
i
•\
6O
—o
YEAR
22O
1i
\
INDEX NUMBERS. AVERAGE 1911-1913 = 1 0 0
22O
;
i
i
14O
1921
ANTHRACITE COAL PRODUCTION
BITUMINOUS COAL PRODUCTION
CRUDE PETROLEUM PRODUCTION
COTTON CONSUMPTION
-WOOL CONSUMPTION
MILLIONS OF POUNDS
30O
in t
A j\j
280
26O
24O
22O
In/
I]
3OO
28O
\
26O
\
*
A
\
2OO
1
/ y/
18O
\
/
1
I
14O
12O
1
1OO
too
8O
8O
V
6O
4O
2OO
!6O
1
14O
12O
22O
18O
\l
16O
24O
V
\
V
6O
/
4O
20
2O
YEAR
•OYEAR
1919
1920
1921
1209
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
RECEIPTS AND SHIPMENTS OF LIVE STOCK AT 15 WESTERN MARKETS.
[Chicago, Kansas City, Oklahoma City, Omaha, East St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth,
Indianapolis, Louisville, Wichita. Monthly average, 1911-1913=100.]
RECEIPTS.
Cattle and calves.
Head.
Sheep.
Relative.
Head.
Head.
Relative.
Total, all kinds.
Horses and mules.
Relative.
Head.
! Relative.
Head.
Relative.
1920.
August
May..
June...
July....
August.
1,451,985
144 I 1,784,209 j
1,062,988
1,117, 111
940,173
1,418,237
105
111
93
141
81
1,687,787
124
55,371
109
122
92
87
1,097,976
1,130,874
1,035,674
1,568, 584
80
83
76
115
12,082
8,135
6,952
11,147
120
4,979,352
108
4,574,292
4,927,582
4,004,067
4,917,482
99
107
87
106
2,140,469
149
1,496,052
1,530,485
1,372,687
1, 880,706
104
107
96
131
1921.
2,401,246
2,671,462
2,021, 268
1,919, 514
SHIPMENTS.
1920.
August.
May..
June...
July....
August.
640,295
157
627,670
130
820, 341
163
52,163
424, 558
414, 814
338,306
656,106
104
102
83
161
644, 788
703, 724
619, 854
609,506 '
133
145
128
126
415, 569
403, 748
83
604,996
81
120
11,137
8,199
6,439
10,098
127
1921.
SHIPMENTS OF STOCKERS AND FEEDERS FROM 34 MARKETS.
Cattle and
calves.
Head.
273,512
1920.
August.
Hogs.
Sheep, .j Total.aU
Head.
34,415
Head.
567,429
Cattle and
i calves.
1921.
Head.
875,356
Head.
211, 846
195,039
120,429
353,619
May..
June
July....
August.
Total, all
kinds.
Hogs.
Head.
29,409
31,373
15,493
21,564
Head.
114, 811
Head.
356,066
314,714
274,336
777, 558
138, 414
402, 372
ANIMALS SLAUGHTERED UNDER FEDERAL INSPECTION.
[Bureau of Animal Industry. Monthly average, 1911-1913=100.]
Cattle.
lead.
August.
May....
June—
July....
August.
1920.
1921.
Hogs.
Calves.
Relative.
Relative.
Head.
Head.
Sheep.
tive.
685,763
113
332,349
188
2,190,821
559,979
640,164
579,028
680,419
92
105
95
112
366,798
369,696
324,046
303,796
207
209
183
172
3,274,114
3,618,174
2, 820,616
2,530,459
Head.
Total.
Relative.
Head.
78 ! 1,041,580
116
128
100
90
90
984,903
1,116,069
1,059,902
93
88
103
1,236,992
Relative.
4,250,513
88
5,185,794
5,744,103
4,783,592
4,751,666
108
117
100
99
EXPORTS OF CERTAIN MEAT PRODUCTS.
[Department of Commerce. Monthly average, 1911-1913= 100.]
Beef, canned.
Pounds.
1920.
August
1,231,070
326,459
186,647
351,566
914,418
Beef, pickled,
and other cured.
RelaRelaRelative. Pounds. tive. Pounds. tive.
186
343,352
49
28
53
138
191,366
167,318
918,476
292,663
1921.
May
June
July
August
Beef, fresh.
28
Hams and
shoulders, cured.
Bacon.
Pounds.
Pickled pork.
Lard.
RelaRelaRelaRelative. Pounds. tive. Pounds. tive. Pounds. tive.
2,152,982
81
23,333,156
139
9,360,469
63
31,020,802
71
1,822,383
2,004,136
2,418,262
2,752,598
75
91
103
38,464,256
35,011,966
48,171,465
45,340,151
230
209
15,508,520
18,536,898
27,786,271
32,233,527
104
124
186
216
48,604,395
67,655,776
83,329,134
87,410,516
110
154
189
199
271
2,257,511 |
51
2,558,043
3,337,759
58
75
76
73
3,212,347
1210
FEDERAL RESERVE BULLETIN.
OCTOBER,
1921.
RECEIPTS OF GRAIN AND FLOUR AT 17 INTERIOR CENTERS.
[Chicago. Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria,
St. Louis, Spokane, Toledo, Wichita; receipts offlournot 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.
Oats.
Rye.
Total grain.
Barley.
Total grain and
flour.i
Flour.
RelaRelaRelaRelaRelaRelaRelaBushels. Relative. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive.
1920.
August
43,039,021
159 9,840,320
4430,728,748
153 3,191,103
289 3,007,508|
42 89,806,700
1151,949,339
100 98,578,726
114
1921.
May
June
July
August
25,514,527
30,342,592
71,422,624
77,026,777
94 20,939,570
112 35,816, 899
263 19,713,672
284 30,983,238
9315,
.5,524,227
160 21,921,817
15,527,442
138 42,739,890
7711,368,821
109Jl,464,530
127 2,557,053
213 6,207,749
124 2,551,087 j
133 3,859,432
232 3,073,358!
562 6,387,297!
36 65,898,232 J
54 93,405,270!
43122,294,149!
89163,344,951
85 1,498,212
120 865,219
157 2,705,340
2103,130,086
72,640,186
97,298,756
138134,468,179
160177,430,338
84
112
155
205
1
Flour reduced to its equivalent in wheat on basis of 4J 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 offlournot available for Cleveland, Detroit, Louisville, Omaha, Toledo, and Wichita.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Total grain and
flour.*
Flour.
RelaRelaRela- Bushels. Rela- Barrels. Rela- Bushels. RelaBushels. tive. Bushels. tive. Bushels. tive. Bushels.! tive. Bushels.. ™
tive.
tive.
tive.
1920.
August
24,934,816
160 6,260,144
44 12,814,0671
84 2,880,003;
407! 2, 231,851;
57 49,120,881
99 3,605,105
106 65,343,854
101
1921.
May
June
July
August
18,675,009
21,550,026
31,373,871
58,901,701
12015,747,327
138 21,381,193
201 20,154,143
37822,657,863
11012,447,121
15011,656,507|
14110,051,024
,
,
15915,422,006
821,
1,309,016
7 7 1,427,796
1
878,751!
1014,548,4661
185il,682,946;
202 2,224,652
124 2,313,726
642 j 4,060,175
43 49,861,419
57 58,240,174
59 64,771,515
104105,590,211
100 2,533,847
117 2,113,649
130 3,
*"~3,842,046
213 5,040,334
5;
75 61,263,730
62 67,751,594
113 82,060,722
149128,271,714
94
104
126
I
£ i1 Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.
STOCKS OF GRAIN AT 11 INTERIOR CENTERS AT CLOSE OF MONTH.
[Chicago, Detroit, Duluth, Indianapolis, Kansas City, Milwaukee, Minneapolis, Omaha, Peoria, St. Louis, and Toledo.]
Wheat.
Corn.
Oats.
Bushels.
5,460,879
Bushels.
1,414,708
Bushels.
7,447,762
Bushels.
338,600
Bushels.
709,469
Bushels.
15,371,418
i 3,787,294
I 3,853,292
13,541,547
21,927,695
10,539,233
17,944,190
10,392,384
6,906,590
24,926,743
29,273,562
32,845,591
50,835,039
363,170
239,665
625,975
2,571,473
1,079,831
1,407,124
1,406,742
2,206,180
40,696,271
52,717,833
58,812,239
84,446,977
1920.
August.
Rye.
Barley.
Total grain.
1921.
May
June
July
August!!
RECEIPTS OF GRAIN AND FLOUR AT NINE SEABOARD CENTERS.
[Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts offlournot available fro
Seattle and Tacoma. Compiled from reports of trade organizations at these cities. Monthly average, 1911-1913=100.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Total grain and
flour.i
Flour.
RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. Relative. Barrels. tive. Bushels. tive.
1920.
August
1921.
May.
June.
July.
August
28,098,022
223 1,576,842
15,052,060
16,628,892
34,142,124
29,364,521
119 4,807,533
132 5,385,639
271 9,343,697
1,936,481
44 2,671,365
135
152
263
55
1,221,630
1,903,786
7,002,155
2,625,147
56 3,407,799 2,398 2,289,791
138 38,043,819
1681,390,077
133 44,299,166
162
261,506,359 1,0601,422,693
40 1,180,119
831 658,295
147 3,143,438 2,212 4,626,343
55 1,965,932 1,384 6,089,131
86 24,010,275
40 25,756,731
279 58,257 757
367 41,981,212
1061,518,671
1131,714,852
257 7,210,521
185 2,172,836
145
164
690
208
122
331
189
1 Flour reduced to its equivalent in wheat on the basis of 4$ bushels per barrel.
30,844,295
33,473,565
90,705,102
51,758,974
1211
FEDERAL RESERVE BULLETIN.
OCTOBEE, 1921.
STOCKS OF GRAIN AT EIGHT SEABOARD CENTERS AT CLOSE OF M O N T H .
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.
tions at these cities.]
Wheat.
1920.
August
1921.
May
June
July
August
!
!
Bushels.
13,915,892
|
;
!
!
I
3,788,898
3,486,041
9,972,506
12,934,198
Compiled from reports of trade organiza-
Barley.
Total grain.
Bushels.
Bushels.
Rye.
Corn.
Oats.
Bushels.
Bushels.
!
1,097,945
1,532,272 j
Bushels.
777,445
1,185,753
2,136,128
1,113,767
955,694
1,107,518 I
1,058,652 !
981,942
1,592,072
534,574
157,397
386,710
1,389,338
4,052,189
21,375,743
1,300,852
1,664,674
3,738,401
3,997,970
7,917,595
8,502,892
16 193,326
20,869,272
WHEAT-FLOUR PRODUCTION.
[January, 1918, to June, 1920, U. S. Grain Corporation; July, 1920, on, estimated by Russell's Commercial News (Inc.), New York.]
Barrels.
1920.
August
Barrels.
1921.
May
June.....'
July
August
10,200,000
8,406,000
8,087,000
10,720,000
13,266,000
COTTON.
[New Orleans cotton exchange. Monthly average crop years, 1911-1913=100.]
Bales.
August
Overland move*
ment.
Port receipts.
Sight receipts.
Relative.
Relative.
Bales,
Bales.
American spinners
takings.
Relative.
Relative.
Bales.
Stocks at ports
and i n t e r i o r
towns at close of
month.
Relative.
Bales.
1920.
308,262
25 !
159,586
17
25,322
24
251,841
55
1,365,397
116
84,594
112,955
78,106
95,025
107
74
90
288,411
410,734
469,715
369,420
63
90
103
81
2,869,165
2,659,826
2,311,696
2,167,927
244
226
196
184
1921.
May
June
July
August
777,011
659,900
607,788
617,049
595,346
482,944
465,143
406,823
COTTONSEED.
[Bureau of the Census.]
Received
at mills.
Tons.
22,93
1920.
August.,
Crushed.
Tons.
20,099
On hand at
mills (close
of month).
Received
at mills.
Tons.
32,92
Crushed.
Tons.
1921.
May
June
July....
August.
Tom.
131,522
98,646
27,466
70,467
77,484
54,241
130,333
100,496
On hand at
mills (close
of month).
Tons.
130,471
109,309
94,543
124,377
SHIPMENTS OF CITRUS AND DECIDUOUS FRUITS FROM CALIFORNIA.
[March, 1921, on, Bureau of Markets and California Fruit News. 1
Oranges.
Monthly average, 1911-1913=100.]
Lemons.
Total citrus fruits.
Carloads.
Relative.
Carloads.
Relative.
Carloads.
1,707
70
751
185
2,458
4,710
5,628
3,465
3,126
193
230
142
128
1,250
2,230
1,843
579
551
455
143
5,960
7,858
5,308
3,705
Relative.
Total
deciduous
fruits.
Carloads.
1920.
August..
7,239
192L
May
June
July....
August..
3
For previous sources, see April, 1921, Bulletin.
'Including grapefruit.
209
276
186
130
85
2,200
3,439
8,113
1212
FEDERAL RESERVE BULLETIN.
OCTOBER,
1921.
SUGAR.
D a t a for ports of New York, Boston, Philadelphia.
Relative.
Tons.
Relative.
Tons.
1920.
August
308,313
Raw stocks at
close of month.
Meltings.
Receipts.
168
156
287,000
Weekly Statistical Sugar Trade Journal.
1913=100.]
Receipts.
Relative.
Tons.
Tons of 2,240 p o u n d s .
Raw stocks at
close of month.
Meltings.
Relative.
Tons.
Monthly average, 1911-
Tons.
Relative.
Relative.
Tons.
1921.
73
125,340
May
June
July
August
251,302
186,800
148,045
304,087
137
101
80
165
236,000
217,000
221,000
314,000
129
118
120
171
224,035
193,835
104,558
96,603
130
112
61
56
TOBACCO SALES AT LOOSE-LEAF WAREHOUSES.
[Reports of State authorities.]
Bright belt.
Virginia dark,
Pounds.
109,266
1920.
August.
July....
August.
Virginia.
North
Carolina.
South
Carolina.
Pounds.
Pounds.
Pounds.
51,377,514
12,659,567
Burley.
Western
dark.
Total.
Pounds.
64,037,081
Pounds.
1,223,750 I
Pounds.
710,560
Pounds.
66,080,657
2,200,905
11,840,109
1,521,247 i
2,662,095 |
573,650
486,550
4,295,802
1921.
2,200,905
11,840,109
NOTE.—Includes sales for growers and dealers, b u t excludes resales.
SALE OF REVENUE S T A M P S FOR MANUFACTURES OF TOBACCO IN T H E UNITED STATES (EXCLUDING PORTO RICO AND
PHILIPPINE ISLANDS).
ICommissioner of I n t e r n a l Revenue.]
Cigars.
Large.
August.
Small.
Cigarettes.
Cigars.
Manufactured
tobacco.
Small.
Pounds.
Number.
\ Number.
I
Number.
672,020,289 | 48,171,240 '3,569,397,443 32,164,734
Large.
1921.
May..
June
July....
August.
Number.
555,497,120
618,495,102
564,598,255
622,039,033
Small.
Small.
Manufactured
tobacco.
Number.
55,349,100
50,175,400
47,362,340
53,630,000
\
Number.
4,136,084,890
4,219,727,623
4,161,217,573
15,130,577,133
Pounds.
28,671,501
31,737,525
29,226,353
33,601,590
NAVAL STORES.
[Data for Savannah, Jacksonville, and Pensacola.
j Spirits of turpentine.
Receipts.
August.
Rosin.
Stocks
at close of I Receipts,
month.
Barrels,
i Barrels.
33,747 I
27,963
Compiled from reports of t r a d e organizations a t these cities.]
Barrels.
106,964
Spirits of t u r p e n t i n e .
Stocks
a t close of
month.
Barrels.
144,109
Receipts.
May.
June
July....
August.
1921.
Barrels.
26,364
33,533
36,435
33,773
Rosin.
Stocks
Stocks
at close of Receipts. at close of
month.
month.
Barrels.
38,650
36,949
47,580
52,861
Barrels.
61,213
80,943
90,382
92,580
Barrels.
312,293
308,341
o28,224
328,907
OCTOBEE, 1921.
1213
FEDERAL RESERVE BULLETIN.
COAL AND COKE.
[U. S. Geological Survey.
Monthly average, 1911-1913=100.]
Bituminous coal, esti- Anthracite coal, esti- Beehive coke, estimated
mated monthly promated monthly promonthly production.
duction.
duction.
Short tons.
Relative.
Short tons.
Relative.
Short tons.
Relative.
1920.
September..
49,172,000
133
4,638,000
63
1,757,667
7,497,000
7, 786,000
7,050,000
7,196,000
101
105
95
97
290,000
232,000
181,000
248,000
67
1921.
May
June
July
August
September..
33,330,000
33,852,000
30,394,000
34,538,000
35,105,000
CRUDE PETROLEUM.
[Production and stocks, U. S. Geological Survey; wells completed, Oil and Gas Journal and Standard Oil Bulletin (California).
gallons each. Monthly average, 1911-1913=100.]
Production.
Barrels.
Relative.
39,055,000
204
Stocks at
close of
month
(barrels).
Production.
Producing
oil wells
completed.
Barrels.
Barrels of 42
Relative.
Stocks at
close of
month
(barrels).
219
211
210
214
156,561,000
164,837,000
172,359,000
176,248,000
Producing
oil wells
completed.
1921.
1920.
August-
124,449,000
2,456
May
June
July
August
j 42,043,000
! 40,405,000
40,328,000
40,964,000
1,405
1,471
1,157
952
TOTAL OUTPUT OF OIL REFINERIES AND STOCKS OF OIL.
[Bureau of Mines.]
OUTPUT BY MONTHS.
Gasoline
(gallons).
Kerosene
(gallons).
37,024,052
423,419,770
172,213,511
751,193,898
92,369,504
36,990,478
36,940,821
36,040,797
448,567,873
430,344,393
419,641,815
145,225,023
141,637,081
138, 724,132
817,367,590
826,355,262
807,428,397
70,000,194
63,088,609
65,893,228
Crude oil run
(barrels).
1920.
July..
| Gas and fuel
(gallons).
Lubricating
(gallons).
1921.
May..
June.
July..
STOCKS AT CLOSE OF MONTH.
1920.
July 31.
17,086,253
413,279,319
410,853,047
655,152,293
131,866,455
20,816,203
21,008,986
19,115,631
800,495,787
750,644,450
684,236,695
452,437,995
435,056,713
412,201,674
1,163,388,695
1,248,664,088
1,269,419,283
261,759,797
260,883,121
258,638,298
1921.
May 31. June 30..
July 3 1 . .
IRON AND STEEL.
[Pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.
Iron-ore shipments
from the upper
Lakes.
Pig-iron production.
Monthly average, 1911-1913=100.
Steel-ingot production.
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative. Gross tons. Relative. Gross tons. Relative. Gross tons. Relative.
1920.
1921.
May
J u ly
September
8,923,482
147
3,129,323
135
2,999,551
128
10,374,804
197
2,594,027
3,600,989
4,047,687
4,329,158
43
59
67
71
1,221,221
1,064,833
864,555
954.193
985,529
53
46
37
41
43
1,265,850
1,003,406
803,376
1,138,071
1,174,740
54
43
35
49
51
5,482,487
5,117,868
4,830,324
4,531,926
104
97
92
86
4,560,670
87
1214
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
STRUCTURAL-STEEL ORDERS AND SHIPMENTS.
[Bridge Builders and Structural Society.j
Fabricated structural steel
orders and shipments of the memberI contracted for through- | Structural-steel
ship of Bridge Builders and Structural Society.
j out country.
!
Orders.
Per cent
shop
capacity.
Tonnage.
Tonnage. ;
Shipments.
Per cent
shop
capacity.
Per cent
shop
capacity.
Tonnage.
1920.
August.
72,000
40.0
36,843
50.0
51,381
70.0
50,800
06,900
''.0,200
59,300
28.0
37.0
33.5
33.0
25,763
25,247 i
21,847
18,010 i
37 5
35.5
32.0
27 987
27,363
22,186
23,558
41.0
39.0
32.5
34. 5
1921.
May
June... .
July
August.
26+
PRODUCTION OF BLISTER COPPER.
[American Bureau of Metal Statistics.
Monthly average, 1911-1913=100.]
Pounds.
Relative.
1921.
Mav
June
July
!T
22,653,328
18,033,954
13,390,107
20,018,569
- -
\U USt
23
18
17
20
ZINC.
[American Zinc Institute. Tons of 2,000 pounds.]
Produced.
Stocks
at end of
month.
Produced.
Stocks
at end of
month.
1921.
September.
1921.
May
36,819
42,900
18,026
83,721
June
July
August
September.
19,443
15,495
1-1,621
14,367
89,889
92,408
86,549
81,135
LEAD PRODUCTION.
[American Bureau of Metal Statistics.
Tons of 2,000 pounds.]
Production. Relative.
1921.
1921.
May..
June.
Production. Relative.
27,650
28,348
79
81
July
27,827
ist
80
TIN.
[Imports, Department of Commerce.
Imports.
September..
1920.
S
.|
Deliveries, New York Metal Exchange.
Deliveries
Relative. to factories.
Imports.
Pounds.
Pounds.
9,596,819
106
10,886,400
Monthly average, 1911-1913=100.]
May
June
July
August
September.
1921.
Deliveries
Relative. to
factories.
Pounds.
Pounds.
2,021,762
4,133,450
3,565,767
5,200,504
57
2,744,000
3,561,600
3,411,520
7,436,800
5,835,200
1215
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
TEXTILES—COTTON AND SILK.
[Cotton, Bureau of the Census; silk, Department of Commerce. Cotton, monthly average, crop years 1912-1914=100; silk, monthly average, 1911- .
1913=100.]
Cotton consumption.
[
Bales.
1920.
August
483,560
Cotton
spindles
active
during
month.
Relative.
108
34,513,203
Imports of raw silk. 1
Cotton consumption.
Pounds.
Bales.
Relative.
1921.
132 ! May
June
July
August
2,690,690
Cotton
spindles
active
during
month.
Relative.
439,884
461,656
410,120
467,103
98
103
91
104
Imports of raw silk.
Pounds.
32,631,051
32,665,315
32,446,281
33,059,211
Relative
4,437,080
3,871,327
4,867,985
5,114,901
217
189
238
250
TEXTILES—WOOL.
[Wool consumption, Bureau of Markets; idle wool machinery, Bureau of the Census.]
Percentage of idle machinery on first of month to
total reported.
1920.
September
1921.
May
June
July
August
September
j
|
i
!
j
36,297,221
I
56,929,000
59,592,000 I
53,076,000 |
58,261,000 |
I
51.8
34.8
39.6
37.3 !
26.2 |
20.5 i
18.7 !
20.4
22.0
28.7
25.2
25.2
26.4
28.4
25.3 i
21.6
21.3
22.9
22.8
14.2 I
10.9 I
1920.
August
1921
May
June
July
August
Spinning spindles.
11. 0
12. 7
16. 7
38.0
23.8
20.6
20.5
21.9
22.4
12.9
10.1
9.8
13.3
9.5
26.6
19.9
17.5
20.8
23.3
30.1 !
29.6 |
31.0 !
25.0
19.8
17.9
20.6
21.1
5.4
1.4
4.1
12.6
22.9
18.6
18.2
20.0
21.2
13.5
10.4
6.6
14.3
11.5
LUMBER.
[From reports of manufacturers' associations.]
Western pine.
Southern pine.
Production.
Looms.
Wider 50-inch Sets of
Wider 50-inch Sets of
Combs.
than
than
cards. Combs.
reed cards.
50-inch reed
Woolen. Worsted. 50-inch space
Woolen. Worsted.
reed
| reed
space. or less.|
space. or less.
i Converted to grease-equivalent basis.
Number of
mills.
Spinning spindles.
Looms.
Consumption
(pounds). 1
Percentage of idle hours on first of month to total
reported.
Douglas fir.
bhl
?" iberof
ments.
W*
Mfeet. i If feet.
383,540 337,677
55
55
56
56
! 110,162
; 121,648
{ 110,588
! 107,346
74,085 j 113 i 294,702
76,874 ! 114 I 232,107
77,243
107 j 191,257
92,397
103 ; 290,877
North Carolina pine.
ProShip- Numof ducments. ber
mills. tion.
ProShip- Numof ducments. ber
mills. tion.
Shipments.
Mfeet.
Mfeet.
55,991
Mfeet.
322,908
191 389,745 i 420,063 \
190 385,970 i 371,183 I
187 366,057 346,300 i
185 388,510 405,974 !
Eastern white pine.
330,002 I
230,970 !
187,165
321,553
Mfeet.
46,149
19 : 32,708
19 i 42,171
19 ' 43,843
19 47,675
Mfeet.
19,511
22,018 j
23,536 j
21,991
25,933
14
12
11
16,126
15,342
15,267
14,130
15,673
18,243
14,864
RECEIPTS AND SHIPMENTS OF LUMBER AT CHICAGO AND ST. LOUIS.
[Chicago Board of Trade and Merchants' Exchange of St. Louis. Monthly average, 1911-1913=100.]
Shipments.
Receipts.
Mfeet.
1920.
September -
Relative.
Mfeet.
Receipts.
Mfeet.
Relative.
Shipments.
Relative.
M feet.
Relative.
1921.
375,456
81
242,857
May
June
July
August
September
354,992
372,453
328,129
356,730
388,74 0
76
80
71
77
84
242,452
253,848
216,908
235,736
246,602
95
100
85
93
97
1216
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
PRODUCTION O F WOOD PULP AND PAPER.
[Federal Trade Commission.]
1920.
August...
Wood
pulp.
Newsprint.
Book.
Paper
board.
Wrapping.
Net
tons.
305,965
Net
tons.
128,818
Net
tons.
94,424
Net i Net
tons. | tons.
215,633 i 75,226
Fine.
Net
tons.
33,122
I
1921.
May
June
July.....
August..
Wood
pulp.
Newsprint.
Book
Paper
board.
Wrapping.
Fine.
Net
tons.
216,101
189,389
178,173
195,176
Net
tons.
78,868
87,724
94,247
102,277
Net
tons.
52,642
53,934
48,527
59,711
Net
tons.
122,801
130,177
112,265
138,530
Net
tons.
53,084
50,332
45,090
56,167
Net
tons.
17,484
17,511
16,327
18,833
CEMENT.
[U. S. Geological Survey.]
Production. Shipments.
May,.
June.
1921.
Barrels.
9,281,000
9,296,000
Barrels.
9,488,000
10,577,000
Stocks at
close of
month.
Barrels.
12,450,000
11,150,000
Production. Shipments.
July.....
August.
1921.
Barrels.
9,568,000
10,244,000
Barrels.
10,301,000
12,340,000
Stocks at
close of
month.
Barrels.
10,414,000
8,280,000
RAW STOCKS OF H I D E S AND SKINS.i
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
1920.
August 31
1921.
May 31
June 30
July 31
August 31
1
Cattle
hides.
Calfskins.
Kipskins.
Goat and
kid.
Cabaretta.
5,498,844
2,145,320
585,269
19,143,722
2,348,769
7,126,885
7,441,619
7,077,950
6,448,869
6,494,281
3,715,602
3,890,547
3,639,871
3,459,310
1,021,039
1,026,189
980,762
895,523
8,789,123
9,679,847
9,784,714
10,948,785
1,244,069
1,218,839
1,109,005
1,029,369
13,334,187
13,755,042
13,761,905
13,904,019
Sole
leather
(sides).
Skivers
(dozens).
Oak and
union
harness
leather
(stuffed
sides).
Sheep and
lamb.
Includes hides and skins in transit.
LEATHER PRODUCTION.
[Tanner's Council.]
Skivers
(dozens).
August.
1920
13,275
Oak and
union
harness
leather
(stuffed
sides).
97,580
May.....
June
! July.....
August..
1921
1,561,220
1,521,521
1,431,373
1,607,302
14,499
14,753
12,321
21,430
57,480
57,196
44,971
SHIPMENTS OF AUTOMOBILES.
[National Automobile Chamber of Commerce.]
Railroad Driveaways Boat (ma(carloads). (machines). chines).
1920
August.
23,386
34,060
7,095
Railroad Driveaways Boat (ma(carloads). (machines). chines).
May
June
July
August
1921
18,608
20,269
19,470
20,350
15,193
18,834
15,320
14,290
2,381
3,947
3,725
3,565
1217
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
OUTPUT OF LOCOMOTIVES AND CARS.
[Locomotives, reports from individual producers; cars, Railway Car Manufacturers' Association.]
Output of cars.
Locomotives.
Domestic
shipped.
Foreign.
com- ;! Domestic.
pleted.
Number. Number. ! Number. \ Number.
125
3,409
1,210
114
1920
August.
Output of cars.
Locomotives.
Domestic
shipped.
Total.
Number.
4,619
1921
May......
June
July
August
Foreign
completed.
Domestin
uc.
Foreign.
Total.
Number. Number. Number. Number. Number.
56
444
18
3,843
4,287
43
36
417
2,540
2,957
31
25
441
4,140
4,581
43
51
182
2,364
2,546
VESSELS BUILT IN UNITED STATES, INCLUDING THOSE FOR FOREIGN NATIONS, AND OFFICIALLY NUMBERED BY THE
BUREAU OF NAVIGATION.
[Monthly average, 1911-1913=100-1
Number.
1920.
September..
135 ;
Gross
tonnage.
261,962 !
Relative.
1,084
Number.
1921.
May
June
July
August
September..
Gross
tonnage.
116
160
107
106
132,622
173,885
90,636
84,918
Relative.
549
720
375
351
RAILROAD OPERATING STATISTICS.
[United States Railroad Administration; March, 1920, on, Interstate Commerce Commission.]
July..
1920.
Net ton-miles,
revenue and
nonrevenue.
Net tons
per
train.
Net tons
per
loaded car.
40,449,000,000
769
29.7
Net ton-miles,
revenue and
nonrevenue.
Net tons Net tons
per
per
train.
loaded car.
1921.
May
June
July
28,221,000,000
28,140,661,000
28,414,000,000
674
671
eeo
27.8
27.7
27.5
RAILROAD REVENUE-FREIGHT LOADED AND RECEIVED FROM CONNECTIONS.
[American Railway Association. Carloads.]
REVENUE-FREIGHT LOADED, CLASSIFIED ACCORDING TO NATURE OF PRODUCT.
Grain
I and grain
products.
Live
stock.
Coal.
Forest
products.
Coke.
Ore.
Merchandise,
L. C. L.
Miscellaneous.
Total.
i •'
August
1920.
1921.
January
February
March
April.:::
Mav
June."..::::.:
July
August
| 177,725
I
118,022 I 902,850
64,303
278,857
338,955
877,433
1,438,809
4,196,954
i
j 177,222
| 147,874
164,077
\ 145,041
161,133
l
i8i,oso
239,857
! 269,878
139,455
113,007
117,879
119,241
111,416
121,751
104,224
124,394
44,618
35,826
28,168
20,075
21,622
21,064
17,057
19,875
200,070
213,314
226,852
206,617
207,598
221,569
182,078
202,545
37,408
35,295
29,160
24,980
100,396
130,838
131,666
142,961
728,667
730,996
933,564
922,058
899,233
947,162
879,382
968,746
877,475
864,401
043,670
024,625
006,632
106,768
072,774
227,599
2,935,518
2,735,000
3,120,123
3,046,353
3,165,052
3,426,544
3,261,138
3,655,191
730,603
594,287
576,753
583,716
657,022
696,312
634,100
699,193
R E V E N U E - F R E I G H T LOADED, CLASSIFIED ACCORDING TO GEOGRAPHICAL DIVISIONS.
Eastern.
Allegheny.
Pocahontas.
Northwestern.
Central
western.
Southwestern.
Total.
1920.
1,028,917
876,255
157,144
559,062
715,032
575,812
284,732
4,196,954
January
664,020
June
July
August
826,-912
786,454
890,199
620,842
566,600
624,606
613,045
651,670
714,503
651,910
716,717
121,948
92,633
105,377
118,170
137,324
150,331
122,958
120,320
452,091
440,897
515,636
489,587
468,284
497,093
465,145
493,840
390,569
380,515
429,911
398,453
453,876
519,090
489,118
579,035
447,637
395,047
448,772
434,190
431,815
465,973
485,161
567,883
238,411
224,145
257,657
245,893
249,350
252,642
260,392
287,197
2,935,518
2,735,000
3,120,123
3,046,353
3,165,052
3,426,544
3,261,138
3,655,191
August.
1921.
1218
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
TONNAGE OF VESSELS CLEARED IN THE FOREIGN TRADE.
[Department of Commerce. Monthly average, 1911-1913=100.]
Net tonnage.
American. Foreign. I
1920.
August
3,616,267
Total.
;
Per- j
i
cent- i
I Rela-| age j Rela- f
| tive. I Ameri-1 tive. j
I can to i
total.
Net tonnage.
American. Foreign.
2,113,881
3,058,679
2,512,712
2,581,600
3,929,602 | 7,545,869 j 184
2,910,341
3,094,452
3,362,443
3.222,908
Total.
5,024,222
6,153,131
5,875,155
5,804,508
PercentRela- age Relative. Ameri- tive.
can to
total.
123
150
144
142
42.1
49.7
42.8
44.5
159
187
161
168
COMMERCE OF CANALS AT SAULT STE. MARIE.
[Monthly average, May-November, 1911-1913=100.1
EASTBOUND.
Grain other than
wheat.
Wheat.
Bushels, j Relative. Bushels.
September
1920.
3,102,770 !
35
11,624,488
140
127
122
116
!, 592,826
12,609,469
10,418,433
7,878,077
10,132,267
Flour.
Relative. I Barrels.
60
Iron ore.
Total.
Relative, j Short tons. Relative. Short tons. Relative.
621,010
53
8,721,412
147
9,290,129
133
518,458
3,407,827
4,628,067
5,011,900
5,128,043
49
66
72
73
1921.
April
May
June
July
August
September.
7,418,'
12,431,592
11,358,929
10,839,026
10,298,759
54,540
890,330
1,150,240
1,119,140
1,232,250
95,328
77 | 2,652,033
99 j 3,892,791
96 4,356,760
106 4,384,949
I
WESTBOUND.
Hard coal.
Soft coal.
Total freight.
Total.
Short tons. Relative. Short tons. Relative. Short tons. Relative. Short tons. Relative.
September..
April
May
June
July
August
September..
1920.
177,123
1921.
109,719
214,776
247,048
445,754
489,142
57
144
158
2,040,774 |
106
2,458,002
259,288
2,303,369
3,027,177
2,486,990
120
158
129
438,673"
2,747,236'
3,451,409
3,126,683
2,369,833,
110
139
126
95
11,748,131
124
957,131
6,155,063
8,079,476
8,138,583
7,497,876
65
85
79
PRODUCTION OF ELECTRIC POWER BY PUBLIC UTILITY POWER PLANTS.
[U. S. Geological Survey.}
Kilowatt hours.
July.
1920.
Produced by
waterpower.
Produced by
fuels.
1,393,987,000
2,227,954,000
Kilowatt hours.
Total.
3,621,941,000
May
June
July
Produced by
waterpower.
Produced by
fuels.
1,322,201,000
1,215,976,000
1,226,779,000
1,941,565,000
2,027,902,000
2,043,197,000
Total.
1921.
3,263,766,000
3,243,878,000
3,269,976,000
1219
FEDERAL, RESERVE BULLETIN.
OCTOBER, 1921.
BUILDING STATISTICS.
BUILDING PERMITS IN 166 SELECTED CITIES.
[Collected by the 12 Federal Reserve Banks.]
NUMBER OF PERMITS ISSUED.
1
District District District District District District! District District District District District District
No. 6 ' No. 7
No. 3
No.l
No. 2
No. 4
No. 8
No. 9
No. 10 No. 11 No. 12
No. 5
(22
(14 i (19
(14
(12
(15
(4
(9
(14
(14
(9
(20
cities). cities). cities). cities). cities). cities). I cities). cities). cities). cities). cities). cities).
1920.
August.......
May
June
July
August
1921,
Total
(166
cities).
1,765
5,071
3,602
2,837
2,007 \
5,346
1,302
1,356
1,724
1,548
7,562
35,999
2,412
2,517
2,209
2,206
8,146
7,534
7,501
8,188
5,107
4,564
3,678
4,222
4,170
4,045
3,278
3,756
2,770
2,800
2,564
3,437
6,132
5,930
5,392
6,157
1,998
1,939
1,815
1,971
2,528
1,971
1,753
2,390
2,655
2,166
2,240
2,653
2,473
2,617
2,475
2,814
8,525
8,199
7,925
10,187
50,373
47,156
43,429
50,730
VALUE OF PERMITS ISSUED.
| District No.
I 1 (14 cities).
District No.
2 (22 cities).
District No.
3 (14 cities).
District No.
4 (12 cities).
6,524,855
35,952,930
10,763,970
11,250,175
5,850,526
6,602,647
6,289,448
5,857,057
55,493,186
48,312,504
64,146,117
55,534,223
6,244,792
7,875,639
5,875,671
6,379,857
10,451,771
15,658.897
9,342', 411
10,857,711
1920.
August
May
June-.
July
August
1921.
i
i
I
District No.
6 (14 cities).
District No.
5 (15 cities).
7,788,862 j
i
8,332,123 !
8,779,653 [
5,606,030 |
8,190,936 !
4,057,181
15,539,077
5,674,822
4,723,709
5,772,478
5,304,592
14,914,403
20,593,319
29,933,415
25,578,330
District No. j District No. i District No. District No. District No.
8 (4 cities), j 9 (9 cities). 110 (14 cities). 11 (9 cities). 12 (20 cities).
1920.
August.
1921.
May
June
July....
August.
District No.
7 (19 cities).
Total (166
cities).
2,751,877
3.303,129 ;
3,803,405
2,950,694
15,080,736
119,766,891
2,696,521 I
4', 448,228 1
3,485,150 !
3,325,791 I
4,574.734 ;
5,602,586 !
3,906,381
5,423,460 \
6,096,407
5,452,181
5,496,947
7,529,619
4,190,778
4,155,740
4,133,026
6,401,268
17,763,732
15,450,694
15,298,705
17,226.365
142,283,795
147,655,797
159,285,779
157,609,209
VALUE OF BUILDING CONTRACTS AWARDED, BY FEDERAL RESERVE DISTRICTS.
[F. W. Dodge Co.]
V A L U E O F CONTRACTS F O R A L L CLASSES O F B U I L D I N G S .
District
No.l.
District
No. 2.
District
No. 3.
District
No. 4.
District1
No. 5.
21,668,221
39,683,789
12,805,600
24,410,816
10,822,174
64,072,802
7,300,579
17,954,234
15,308,072
19,298,334
19,276,295
58,816,766
63,561,928
54,500,566
62,043,905
23,373,200
14,796,800
13,563,100
22,350,500
33,915,207
39,928,314
35,669,377
26,665,555
23,023,500
20,428,761
16,026,969
17,337,624
54,867,976
45,199,007
41,119,866
44,680,034
8,841,467
8,762,123
12,651,007
9,173,552
1920.
August
i
1921.
May
June
July
August..
|
|
!
j
1 North and South Carolina not included prior to May, 1921.
District
No. 9.2
2 Montana not included.
VALUE OF CONTRACTS FOR RESIDENTIAL BUILDINGS.
District
No.l.
1920.
August
1921.
May
June
July
August
District
No. 2.
District
No. 3.
District
No. 4.
District1
No. 5-
5,832,187
13,130,813 i
2,445,500
7,197,875
2,474,5
6,933,658
6,531,152
6,672,758
6,702,583
36,963,442
34,355,048
22,546,142
36,061,717
6,846,800
3,543,700
2,971,900
5,331,500
9,188,212
8,198,377
8,319,248
8,209,645
6,961, 450
4,090, 859
5,335, 545
5,938, 417
1 North and South Carolina not included prior to May, 1921.
2
District
No. 7.
I
i
j
!
i
Montana not included.
District
No. 9.2
5,204,979
1,802,754
9,779,947
9,880,273
7,382,427
10,424,029
2,323,242
2,554,420
3,758,504
2,975,503
1220
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
PRODUCTION AND SHIPMENTS OF FINISHED COTTON FABRICS.1
July, 1921.
Printed
goods.
Total.
White
goods.
Dyed
goods.
Printed
goods.
10,529,836
4,004,107
45,559,624
19,999,113
10,863,158
6,129,362
994,016
1,778,451
14,914,899
7,801,482
6,229,464
5,468,177
314,702
20,671,092
2,373,173
6,913,754
153,884
1,373,112
12,500,238
3,920,889
52,575,398
18,646,418
14,972,575
5,622,061
1,687,418
2,410,969
30,043,043
26,459,552 j 14,533.^^3
85,323,724
34,728,724
31,485,015
16,421,127
95,915,235
$229,505
$124,276
$155,345
$120,954
$3,988
$745,18'
^487,599
$6fr ' ^
$165,663
$192 334
$497 1
$31,341 1
$1,620,223
$511,361
$370,037
$121,451
$35,329
$25,600
$282,083
$135,643
$196,680
$106,041
$5,474
$878,130
$79,231
$280,346
$90
$56,622
$532,564
$152,846
$1,837,856
$472,283
$653,262
$2,684,001
$725,921
$1,294,419
$685,410
$3,018,193
White
goods.
Total finished yards billed during month:
to District 1
...
2
'6|
3
4
5
6
. . .
m
8
w
PH
11,598,255 18,643,683
7,405,056 • 2,122,166
4,742,474
14,867,583
193,126
5,936,236
235,913
.
758,103
Total
Total finishing charges billed during month:
District 1
2
3
5
6
„
8
Total
Dyed
goods.
,
Total average per cent of capacity operated:
District 1
2
3
5
6
8
. . . .
Average for all districts
August, 1921.
$634,068
$1,035,707
Total.
j
«ttfV7 C7O
$106,131
1
«ftO fiOft
$31,'948
57
66
67
87
62
51 i
59 l
65
39
60
60
64
87
54
73
72
87
76
77
69
54
75
72
54
69
65
78
77
104
99
65
76
68
69
71
14,106,663
5,295,545
55,869,933
20,599,591
13,146,095
7,844,105
1,462,751
2,818,937
60
61
62
Total gray yardage of finishing orders received:
12,724,194
District 1 . . .
6,195,653
2
5,~558,733
3
.
..
5
4,900,160
130,569
6
8
.-...
16,820,005
2,586,383
6,424,959
139,803
1,323 597
9,855,208
4,692,734
45,211,150
15,849,082
13,656,773
5,039,963
1,454,166
1,523,304
17,791,421 20,511,161
9,216,479
3,532,379
5,724,209
6,154,224
KS QfiQ
7 785 136
204,958
1,257,793
29,509,309
27,294,747
14,547,942
82,734,438
40,722,203
31,514,526
19,402,208
101,741,412
4,952
3,795
3,145
1,461
5,800
100
1,665
2 809 !
2a 4S1
10 624
5^264
3,312
F. M l
6,276
176
2,553
3,634
26,449
10,967
7,517
3,256
13,353
7,565
2,809
43,650
15,906
9,005
3,634
49,177
3,930
2,746
192
257
3,137
208
325
3,032
20,107
7,974
5,409
1,344
44
553
4,626
2,609
224
275
3,313
283
348
3,489
22,391
8,285
5,995
1,338
53
351
7,125
3,670
3,032
35,431
7,734
3,944
3,489
38,413
5.8
4.9
16.0
14.0
10.0
8.9
6.6
13.0
8.8
15.0
6.5
6.8
9.0
8.9
20.0
6.7
6.8
14.0
13.0
18.0
8.8
8.3
11.0
20.0
14.0
10.0
7.6
14.0
8.9
9.4
8.2
14.0
9.6
Total
Number of cases of finished goods shipped to
customers (case equals approximately 3,000
yards):
District 1
.
2
3
5
6
8
.
Total
Number of cases of finished goods held in
storage at end of month:
Districtl
2
3
5
6
8
Total
Total average work ahead at end of month
(expressed in days):
Districtl
2
3
5
6
8
Average for all districts
i
A AC\A
4^287
1,484
969
6.1
7.8
9.9
8.8
7.5
.
988
1
The National Association of Finishers of Cotton Fabrics, at the request of the Federal Reserve Board, has arranged for a monthly survey
ithin the industry. The results of the inquiries are herewith presented in tabular form. The secretary of the association makes the following
mg
statement concerning the tabulation:
The accompanying figures are compiled from statistics furnished by 34 out of 58 member firms of this association. It is probably fair to state
that in the absence of having specific detail at hand, but according to our best estimate, it is probably well within the fact that the figures given
for the various classes of work would cover, approximately, the following percentages of the entire industry: White goods, 72 per cent' dved goods
62 per cent; printed goods, 30 per cent. The figures given represent reports from exactly the same finishers for the two months, both for the totals
and for the subdivisions, and therefore are strictly comparable.
'
NOTE.—Many plants were unable to give details under the respective headings of white goods, dyed goods, and printed goods and reported
their totals only; therefore the column headed "Total" does not always represent the total of the subdivisions, but is a correct total for the district.
OCTOBER,
1921.
1221
FEDERAL RESERVE BULLETIN.
REPORT OF KNIT-GOODS MANUFACTURERS OF AMERICA.
The total production, of winter and summer
underwear for the six months ending August
31 was as follows:
Number Actual
of mills produc- Per cent
reportof normal.
tion
ing.
(dozens).
1921.
March
April
May
June
July
August
Winter underwear (August)...
Summer underwear (August).,
421,140
401,938
505,347
559,591
490,640
412,627
245,503
167,124
50.1
49.6
55.4
65.5
51.2
71.1
72.6
69.5
Unfilled orders first of month
New orders received during month
Total (A).
Dozens.
Per cent
of normal
production.
445,196
452,641
79.2
897,837
Shipments during month
Cancellations during month.
Total (B).
384,632
4,662
Balance orders on hand Aug. 1 (A minus B)
Production
508,543
292,066
68.2
8.2
389,294
51.0
Thirty-four representative mills which reported for July and August furnish the data
for the following table:
[In dozens.]
1
5 other mills report closed.
Order and production, report for month ending August 31, 1921, follows. The number of
mills reporting was 46.
July (34 August
mills). (34 mills).
Unfilled orders first of month
New orders
Shipments
Cancellations
Production
372,514
238,258
233,972
11,485
255,829
395,902
444,243
360,787
4,457
279,600
Gain.
Loss.
23,388
205,985
126,815
7,028
23,771
RETAIL TRADE.
The following tables are a summary of the
data obtained from 337 representative department stores in the 12 Federal Reserve districts.
In districts Nos. 1, 2, 5, 6, 7, 9, 11, and 12 the
data were received in (and averages computed
from) actual dollar amounts. In districts Nos.
3, 4, 8, and 10 the material was received in the
form of percentages, and the averages for the
cities and districts computed from such percentages were weighted according to volume of
business done during the calendar year 1920.
The tables for the month of August are based
on reports from 23 stores in district No. 1, 55
stores in district No. 2, 49 stores in district
No. 3, 16 stores in district No. 4, 23 stores in
district No. 5, 29 stores in district No. 6, 44
stores in district No. 7, 20 stores in district
No. 8, 14 stores in district No. 9, 13 stores in
district No. 10, 20 stores in district No. 11, and
31 stores in district No. 12. Separate figures
for Birmingham, Chicago, Kansas City, and
Denver are shown for the first time this month.
1222
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS.
[Minus sign (—) denotes decrease.]
of outstanding orders at close of
Percentage of increase in net sales as compared with corresponding period previous Ratio
month to total purchases during preyear.
vious calendar year (per cent).
District and city.
Jan. 1,1921, to close of— July 1,1921, to
close of—
Apr.,
1921.
May,
1921.
June,
1921.
July,
1921.
Aug.,
1921.
i
District No 1:
Boston
Outside
District
Apr.,
1921.
- 1.3
— 3.8
- 2.4
—11.4
-
1.5
8.5
-11.5
-14.1
3.6
— 2.1
- 1 0 . 5 - 5.5
-
- 4.5
- 3.1
-12.3
- 4.5
1.4
1.9
-
District No. 2:
New Y o r k
City and
Brooklyn... - 2.8
-12.0
- 9.1
13 8
- 6.0
-14.3
-14.9
- 4.1
- 6.2
— 6.4
- 3.1
— 9.4
-11.2
— 3.8
5.8
- 8.7
- 3.4
— 4.4
2.4
- 9.2
— 7.7
.5
-10.0
-
7.1
-11.5
-
-
Philadelphia.. - 2.5
Outside
5.8
- 8.8
- 4.8
- 9.5
- .8
-13. 8
- 6.4
Rochester
Syracuse
Outside
District
-
District No. 3:
District
District No. 4:
— .4
Pittsburgh
Outside
District
.8
District No. 5:
- 6.8
Baltimore
3.1
Richmond
5.3
Washington...
3.7
Other c i t i e s . . .
District
District No. 6:
Atlanta
Birmingham..
Nashville
New Orleans
Outside
District
District No. 7:
Chicago
Outside
District
District No. 8:
St. Louis
Louisville
Memphis
Outside
.7
-
5.2
9.6
5.7
8.8
6.9
5.5
6.1
7.5
7.2
7.4
-12.3
-
8.4
5.8
6.2
6.7
6.3
7.3
- 8.2
- 7.6
—10.2
- 4.5
-12.0
-14.3
6.7
6.6
5.5
4.5
5.3
6.9
9.2
6.0
75
7.5
10.0
5.7
11.7
-11.5
-14.1
.1
— .5
6.4 - 8.8
3.5
5.1
— 2.5 - 2.8
2.2
- 4.6
-
3.3
5.3
-12.0
- 9.1
-13.8
- 6.0
-14.3
-14.9
10.0
7.1
5.4
8.3
5.5
4.2
3.7
7.3
8.6
8.3
2.1
-
4.3
-
5.1
-11.5
-
8.6
6.5
6.2
6.2
8.0
8.3
- 2.9
gy
1.8
3.7
-
1.9
.7
-
3.3
1.9
-13.8
- 6.4
- S.5
- 7.8
8.6
4.9
7.5
5.0
8.2
5.4
8.1
7.5
8.9
8.1
2.3
-
1.2
-
1.9
-11.8
-
7.8
7.0
7.5
7.9
8.7
-10.1 -11.8
4.9
5.7
2.92.1
-29.2
-16.3
-17.0
-22.8
-17.8
-17.4
5 5
5.1
5.8
5.3
4.3
5.3
8.6
5.8
9.4
8.6
7.1
11.3
1.1
-21.4
5.4
4.7
7.2
8.0
9.8
12.0
6.9
9.0
5.2
-
9.1
5.2
7.9
- 4.0
1.3
.2
-29.2
—16 3
-17.0
—22.4
—22.5
—11.0
5.5
-14.1
-21.4
—21.0
2.3
-
.3
-19.3
5.3
— 7.1
- 3.0
4.3
- 5.2
- 7.0
- 4.1
4.9
- 3.1
-16.9
-15.9
- 4.2
-10.1
-17.4 - 4.9
- 1.4
- 9.2
.6
4.9
6.9
8.7
-
2.0
3.2
6.3
5.4
- 2.9
1.8
4.9
3.7
-16.9
-15.9
- 4.2
-10.1
-17.2
-11. 0
- 2.9
-10.1
6.1
4.6
4.8
5.1
5.4
7.2
6.8
6.6
7.9
10.7
7.7
8.9
9.5
12.5
7.6
9.6
-
— 4.2 - 1 1 . 7
2.1
.9
-11.7
-10.8
5.4
5.6
8.3
9.2
9.0
4.9
8.5
3.1
9.3
10.1
6.3
19.9
5.5
7.6
11.8
7.2
5.4
7.5
-
3.0
—16.8
-12.5
-
2.9
-
-
5.4
-14.9
-9.8
3.6
9.3
-
United States
- 4.2
-
1.6
-17.0
-25.5
—11.8
22.3
— 4.9
86
-15.8 -30.0
-21.2
-21.3
-14.7
12.4
—20.3
-18.8
13 2
20.9
-26.6
—12.9
-21.4
-14.7
7.9
—16.5
-11.7
-
—16.8
-21.8
-11.0
-10.7
-17.3
-
-
-
8.7
-10.7
— 5.6 -
8.0
—12. 0
-11.6
8 9
9.5
1.7
1
8.3
—36.4
36.2
—17.5
9 9
-29.0
-21.2
-21.7
-14.7
10.4
— 18.9
-17.1
13 2
20 9
-26.6
12 9
11 1
15.0
-24.3
—13.0
24
5.1
4.6
8.0
6.8
8.0
5.8
4.0
5.4
8.9
7.9
8.2
5.7
5.9
6.6
7.5
8.3
8.9
11.4
— .4
-
1.8
—16.5
-13.9
7.1
5.1
5.6
7.4
8.2
-
—15.6
-21.8
-23.6
3.5
9.5
9.4
10.5
8.0
7.0
94
7.6
8.5
8.5
10 1
7 3
18.1
.7
16.6
- 2.8
—17.7
Aug.,
1921.'
- 7.3 | - 1 1 . 8
7.8
District
District No. 9
District No. 10:
Kansas City...
Denver
Outside
District
DistrictNo.il....
District No. 12:
Los Angeles...
San Francisco.
Oakland
Sacramento...
Seattle
Spokane
Salt Lake City.
District
- 6.8
-12.4
1.5
71
-35.1
32.9
-19.0 ! -22.3 -15.7
— 8.3 1 — 5-fi 10.9
—18.6 - 3 0 . 0 - 2 8 . 0
3.1
July,
1921.
2.2
6.8
-
-32.1
—19.5
June,
1921.
Aug.,
1921.
—21. 8
- 9.9
—11.0
-
-17.9
Cleveland.
May,
1921.
July,
1921.
1
9,2
- 2.2
— 3.9
- 9.9
Buffalo
Apr.,
1921.
June,
1921.
May,
1921.
- 5.3
-17.4
-10.8
-17.4
-10.9
-22.1
- 8.9
-23.3
- 1.8
-11.2
- 3.8
-13.0
- 4.3
-15.2
—10.9 i —11.6
-22.1 -22.7
4.8
4.6
3.9
4.4
5.9
6.4
9.9
10.4
8.1
8.7
3.4
8.8
- 9.6 - 2.4
1.4 — 2.1
- 7.3
14.8
- 1 6 . 1 I —16.8
- 6.4 - 1 7 . 9
- 8.7 —18.7
2.9
- 5.7
- 3.9
-13.8
-13.5
-23.4
- 6.1
- 1.5
-11.6
- 7.9
-11.4
-18.6
-22.0
-16.2
.4
9.7
- 1.6 - 5.2
- 8.4
2.0
- 8.5 - 5.1
-12.5 1 -15.7
- 8.6 - .9
-15.3
.1
9.5
- 4.5
1.5
14.0
-13.5
- 5.4
- 3.5
8.0
— 4.1
.5
- 9.2
—15.6
- 8.2
- 7.3
- 1.5
-11.6
- 7.9
—11.4
-18.6
-22.0
-16.2
9.8
7.5
9.2
9.1
4.8
11.1
10.3
5.0
11.9
12.1
11.0
10.1
10.4
6.7
7.9
4.9
5.2
4.0
6.0
6.2
9.2
4.0
7.0
9.5
9.6
8.7
7.7
10.5
-
4.1
-
7.8
—12.9
- 6.2
-
-
- 6.6
-12.9
8.6
-10.7
-15.1
-11.9
— 2.6 - 4.3
-
-15.1
3.8
6.9
6.0
-14.2
8.7
6.7
8.4
10.0
10.0
6.0
5.5
6.4
8.4
8.3
1223
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
CONDITION OF RETAIL TRADE IN THE FEDERAL RESERVE DISTRICTS—Continued.
[Minus sign (—) denotes decrease.]
Ratio of average stocks at close of each
month to average monthly sales for
same period (per cent).
Percentage of increase in stocks at close of month compared with—
District and city.
Previous month.
Same month previous year.
Jan. 1,1921, to close of—
Apr.,
1S21.
Mav,
1921.
June,
1921.
JulV,
1921.
Aug.,
1921.
Apr.,
1921.
Mav,
1921.
June,
1921.
July,
1921.
-18.9
-17.5
-18.7
-16.5
-16.6
-17.1
-15.6
-16.7
-17.9
-19.1
3.5
1.1
-2.9
.2
-3.4
-5.8
-18.5
-18.1
-16.8
-15.9
-18.2
2.8
-2.0
-16.8
-10.4
-25.8
— 29.2
-12.6
-10.0
-17.6
-12 2
-23.2
-31.0
21.5
- 5.0
-20.6
-18.3
24.6
-30.2
23.1
- 8.3
-23.1
-21.6
- 5.9
-25.1
-24.6
- 9.1
5.1
-2.6
.3
.2
-6.0
2 1
-21.6
-17.3
-11.5
-20.6
-19.7
District No. 3:
Philadelphia.. - 2 0 . 5
-13.0
Outside
-17.0
- 8.2
-11.9
-12.9
-13.6
-15.2
-19.1
-20.0
-18.7 -14.9
-12.1
-14.0
-17.3
District No. 1:
Boston
Outside
District
District No. 2:
New York City
and Brooklyn . . . - 2 2 . 0
Buffalo
Ne vark
Rochester
Syracuse
-20.7
Outside
District
District
District No. 4:
Cleveland.
Pittsburgh
Outside
June,
1921.
July,
192i.
- 3.4
- .6
1.7
.5
295.5
423.8
289.8
424.5
283.0
416.0
422.1
432.6
405.0
458.0
-4.1
— 2.6
1.4
324.7
319.5
312.0
425.1
420.0
-5.9
-8.4
-8.9
-2.7
.8
4.0
4.8
7.0
5.4
4.9
322.5
329.6
393.4
330.3
387.0
411.7
472.5
443.6
470.9
451.9
433.8
469.4
487.3
455.6
462.0
459.1
445.2
498.1
557.4
3.3
1.0
394.4
-5.6
- 4.2
5.2
342. 5
323.5
333.9
431.6
453.7
1.4
.8
- .5
2.7
- .9
-4.6
- 4.9 - 2 . 5
4.6
- 4.3
314.2
447.7
311.9
432.3
469.2
479.0
442.2
525.5
1.3
.2
-1.7
- 4.7
313.5
423.4
310.4
346.1
341.0
471.9
462.8
328.7
302.4
418.1
363.1
287.7
378.9
476.3
362.7
483.1
461.0
443.1
588.9
-18.2
-19.1
-19.6
-18.8
4.2
-25.3
-14.6
-29.2
-24.2
-24.2
-14.2
-27.5
-21.0
-27.8
-16.9
-23.9
-18.2
-23.1
-15.0
-20.8
-18.6
3.6
4.3
-25.8
District
District No. 6:
Atlanta
Birmingham..
Nashville
New Orleans
Outside
-25.8
-24.2
-24.1
-22.3
District
District No. 7:
Chicago...
Outside
-11.6
-11.5
District
District No . 8:
St Louis
Louisville.
Memphis
Outside
-21.3
1.0
2.6
-3.6
1.7
— 6.0
- 5.4
-10.4
6.2
7.3
-3.1
-2.8
- 6.1
6.8
327.4
334.0
319.5
416.9
467.3
3!o
-3.1
- .2
- .5
-1.7
-6.6
-2.2
-2.8
-1.2
- 4.2
- 1.9
- 2.3
2.3
6.7
5.4
8.9
4.7
327.1
355.9
344.1
400.5
327.9
358.5
315.3
394.6
323.7
350.8
310.6
391.7
463.2
429.5
434.8
480.5
475.1
459.0
458.3
495.3
4.2
-1.7
-4.1
- 2.2
7.0
345.3
345.6
341. 3
453.3
471.2
-2.8
-4.9
-3.6
- 2.5
2.4
- 2.6
0.02
10.0
3.2
9.9
442.7
350.8
533.6
633.3
510.9
644.3
656.1
809.7
556.7
510.9
805.8
-2.8
-
425.3
571.6
612.2
-23.3
20.3
-19.1 -22.9 -22.8
— 6.6 — 15 2 — 17.4
— 26.4 - 2 3 . 4 - 2 1 . 4
— .6
.4
-2.7
-20.0
-21.6
7.8
.4
5.3
428.7
417.8
12.2
463.1
517.5
7.0
- .7
-3.1
-4.0
68
7 6
- 1 8 . 4 — 11.5
- 7.4 - 2 0 . 6
15 6
12 9
- 1.2
3.4
- 3.4
- 6.9
9.6
8.0
-11.0
- 9.9
- 9.3
-10.7
.2
-1.7
- .5
- 3.7
9.4
-19.1
District No. 9
District No. 10:
Kansas City
Denver
Outside
...
-24.3
-27.4
-21.6
-21.1
-2.9
-4.2
-5.7
-
6.9
.6
— 13.1
13.9
-19.8
385.9
411.4
428.3
10.2
11.2
3.8
11 2
-12.9
District
499.1
8.3
14.3
-23.2
-20.6
- .7
-4.9
-2.7
-21.8
-18.8
Aug.,
1921.
1.6
-26.0
-13.6
-29.0
-23.3
-19.8
May,
1921.
-2.1
1.1
-17.8
-21.6
Apr.,
1921.
309.5
352.6
340.4
392.4
446.5
482.2
27.9 - 2 8 . 7
-14.9 -13.4
- 9.1 - 2 0 . 3
-17.4
Aug.,
1921.
- 3.9
- 3.1
4.5
- 2.8
7.6
- 6.8
-28.7 -28.0
-14.1 -14.9
- 9.8 - 9.0
District
.
District No. 5:
Baltimore
Richmond
Washington...
Other cities...
July 1, 1921, to
close of—
388.1
329.6
344.2
500.4
505.2
410.3
455.6
475.7
337.7
419.8
729.3
463.3
521.5
426-. 1
461.8
10.3
13.2
16.4
544.1
443.3
560.2
District
-21.6
-19.8
-17.0
-15.0
-15.1
1.7
-4.3
-9.0
6.8
12.7
346.9
359.2
378.1
497.1
527.9
DistrictNo.il....
District No. 12:
Los Angeles...
San Francisco.
Oakland
Sacramento...
Seattle
Spokane
Salt Lake City
-18.1
-21.0
-22.6
-27.6
-25.5
.5
-3.4
-4.6
- 2.2
16.9
339.6
407.5
383.5
543.2
594.8
-12.8
-13.8
-23.5
-30.5
-28.7
-17.7
-11.9
- 9.4
-17.6
-16.5
-29.4
-27.4
-17.1
-10.8
-17.6
-16.3
-18.4
-32.6
-28.3
-16.3
-25.7
- 3.6
-14.6
-16.6
-32.4
-37.0
-17.2
-30.2
- .6
- 9.2
-12.7
-14.5
-23.2
— 15.5
-24.7
4.5
4.4
2.4
3.0
2.6
9.2
1.2
2.3
-2.3
6.8
-6.9
-3.0
-2.5
-3.2
-9.1
-8.6
-4.7
-6.8
-5.1
-7.1
-8.3
.6
7.9
7.0
I 2*. 6 22.9
- 6.8 13.5
-13.5
7.3
- 7.6
13.1
367.9
402.6
454.3
"399." T
617.8
374.1
383.8
464.2
382.6
423.4
602.2
376.0
394.4
468.2
422.0
410.1
575.5
393.7
406.0
490.7
424.3
410.8
575.5
394.1
404.5
498.9
448.1
404.0
586.1
District
-13.9
-14.2
-20.9 ! -18.3
-15.5
3.0
-1.0
-7.6
-
.7
4.6
477.9
466.6
469.7
478.3
455.7
-17.4 j -19.1 | -19.0
1.9
-2.4
-4.4
- 2.0
6.6
367.8
366.0
369.3
468.0
487. G
United States
— 19.0 - 1 7 . 7
-
7.5
.6
1224
FEDERAL RESERVE BULLETIN.
OCTOBER,
1921.
WHOLESALE TRADE.
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN AUGUST, 1921, AS COMPARED WITH THE PRECEDING MONTH
(JULY, 1921).
Groceries.
district.
Furniture.
Auto
supplies.
Drugs.
impleStationery. Farm
ments.
Auto
tires.
Num- Per Num- Per Num- Per Num- Per Num- Per Num- Per Num- Per Num- Per Num- Per NumPer ber
ber of
ber of
ber of
ber of
ber of
ber of
ber of
ber of
ber of
of
cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
+24.7
+10.4
+ 0.7
+10.2
+15.4
No 2
No 3
No. 5 .
No. 6
No 7
No. 9.
No 10
No. 11
No. 12
and
Dry goods. Hardware. Boots
shoes.
. .
-7.2
+ 1.8
-9.8
9 +51.4
48
9 +50.6
27 +45.5
14 +43.1
+52.9
4 +29.1
12 +54.2
29 +29.0
+ 1.2
+ 3.1
8 +12.7
18 +17.9
6
3 + 0.9
3 + 5.2
8+18.4
10+ 6.9
3
10 +44.4
25
21 +84.3
17 +51.3
+60.4
8
3
11
23 +29.8
+ 7.5
3
+ 5.9
+12.7
15 + 7.6
3
7
8 +27.2
10+47.9
7
+64.8
4
13( + 18.9
+ 3.7
5
3
8
7
8-3.7
20
+36.1
28
-27.5
6
+11.8
20
+ 6.7
13
PERCENTAGE OF INCREASE (OR DECREASE) IN NET SALES IN AUGUST, 1921, AS COMPARED WITH AUGUST, 1920.
Groceries.
District.
No.2
No.3
No. 4
No. 5.
No.6
No.7..
No.9.,
No. 10.
No. 11
No. 12.
Dry goods. Hardware.
Shoes.
Furniture.
Auto
supplies.
Drugs.
Num- Per Num- Per Num- Per Num- Per Num- Per NumPer ber
ber of
of
ber of
ber of
ber of
ber of
cent. firms. cent. firms. cent. firms. cent. firms. cent. firms. cent. firms.
-13.4
-16.1
-20.4
. ... -27.0
-2L 2
. . -21.8
-33.7
-28.2
-22.4
48
11 - 1 3 . 2
9 -32.9
27-33.0
17 -30.0
-41.1
4-39.0
12-55.7
29—41.1
-45.1
-37.2
4 -41.1
8 38.0
18 - 4 8 . 2
10
3 -36.9
3 -30.0
8 -36.7
10 - 3 0 . 0
3
10 - 2 5 . 4
25
7
21 - 2 1 . 3
17 - 4 2 . 6
-26.2
8
3
11
23 - 2 2 . 5
+ 30
3
-21.2
7
— 15 2
-24.2
15 - 1 7 . 6
7
7
1
k —35. 51
10 -26.8|
7
-36.1
13
-17.3
. .
p
impleStationery. Farm
ments.
Auto
tires.
Num- Per Num- Per Num- Per dumber of
ber of
ber of
cent. firms. cent. firms. cent. firms.
j
-34.1
5
3
8
4
58.6
6
-44.6
20
3
8
-18.5
20 - 2 7 . 8
28
-11.4
13
1225
FEDEKAIi RESERVE BULLETIN.
OC!TOBER, 1 9 2 1 .
COMPARATIVE WHOLESALE PRICE LEVELS IN PRINCIPAL COUNTRIES.
1921. Complete information regarding the computation of the United
States Bureau of Labor Statistics appears in the publications of that
bureau, and a description of the index number of the Federal Reserve
Board may be found in the BULLETIN for May, 1920. Details as to the
method used by the 0konomisk Revue in constructing its index of
wholesale prices in Christiania are not available in this country. The
Danish index has been constructed only recently, is based upon the
prices of 33 commodities, and is roughly weighted according to consumption. The new British index number, compiled by the Board of
Trade, will be found on p. 1226 of this issue of the BULLETIN. It has been
revised and now uses prices in 1913 as a base. In the case of the two
American index numbers, 1913 is used as the basis in the original computations. In the other cases in which 1913 appears as the basis for the
computation, the index numbers have been shifted from their original
bases. The computations in these cases are, therefore, only approxi1
A description of the method used in the construction of the Swedish mately correct. In a few cases July, 1914, or the year immediately preindex number appeared in the BULLETIN for February, 1921, for the new ceding that, is used as the base. The figures are for the most part reItalian index number in the April, 1921, issue of the BULLETIN, and the ceived by cable, and the latest ones are subject to revision. In cases
method used by the Frankfurter Zeitung hi the case of the German where the index numbers were available they have been published for
index number was described in the BULLETINS for February and March, the war years in various issues of the BULLETIN in 1920.
The foreign index numbers published herewith are constructed by various statistical
offices according to methods described, in most
cases, in the BULLETIN for January, 1920.1
In the following table the all-commodities
index numbers for the whole series of countries
appear together to facilitate the study of
comparative price levels.
INDEX NUMBERS OF WHOLESALE PRICES (ALL COMMODITIES).
United United United
KingStates; States;
dom;
Federal Bureau Board
Reserve of Labor
of
Board
Statis(90
tics (315 Trade
(150
quotaquotations). 2 tions). 2 commodities).
1918
1919
1920
1920.
August
September.
1921.
January
February...
March
April
May
June
July
August
September.
Germany;
Frankfurter
Zeitung
(77 commodities)^
Sweden;
Svensk
Handelstidning
(47
quotations).6
100
95
133
202
299
409
364
624
1,522
8 100
116
145
185 I
244
339
330
347
320
318
298
292
501
526
625
655
1,528
1,560
251
230
215
209
205
202
198
194
232
215
208
199
191
183
185
183
407.
377
360
347
329
325
330
331
342
642
613
604
584
547
509
520
542
1,603
1,473
1,419
1,410
1,428
1,387
1,467
1,723
1,777
206
233
234
226
250
242
163
154
150
143
142
139
141
143
177
167
162
154
151
148
148
152
J
Prof.
Bachi
(38 commodities
until
1920, 76
thereafter).2
100
101
137
187
262
339
357
510
100
.
Italyji
100
101
126
159
206
226
242
291
100
100
101
124
176
196
212
243
100
1913
1914
1915
1916
1917
France;
BulUnited
King- letin de
la Stadom;
Statist tistique
(45 com- Generate
modi- (45 commodities)."
ties). 3
»100
Christianla,
Norway;
0konomisk
Revue
(93 commodities).*
Denmark;
Finanstidende
(33 commodities).'
Japan;
Bank of
Japan
for
Tokyo
(56 commodi-2
ties).
Australian
CalCom- Canada; cutta,
mon- Depart- India;
wealth;
DepartBureau ment of ment of
of Census Labor
Statis(272
and Sta- quota- tics (75
tistics tions). 5
com(92 commodi-8
modi-2
ties).
ties).
io [{k
159
233
341
345
322
377
"100
138
164
228
293
294
382
100
9o
97
117
147
192
236
259
12100
141
132
i* 155
170
180
218
100
101
110
135
177
206
217
246
365
362
417
425
385
394
235
230
236
230
244
241
209
208
267
250
237
229
218
218
211
198
344
319
312
297
294
294
300
341
290
280
270
257
254
253
256
201
195
191
190
191
192
1%
199
196
192
181
171
166
162
159
208
199
194
187
183
179
176
174
178
174
175
183
184
178
183
184
is £66
204
1 Index numbers for 1920 and thereafter based upon prices of 76 commodities. Computations arrived at by the method described on p. 465 of
the BULLETIN for April, 1921.
2 Average for the month.
« End of month.
< Beginning of month but not always the first.
& Middle of month.
« End of year and end of month.
i First of month.
s July 1,1913, to June 30,1914=100.
»Middlo of 1914=100.
10 Dec. 31,1913-June 30,1914-100.
11 July 1,1912-June 30,1914=100.
12 July, 1914=100.
is End of July, 1914-100.
14 Last six months of 1917.
In the following tables the index numbers for
individual groups of commodities are given for
each country separately. Reference should be
made to 7the preceding table for the "all commodities ' indexes. In the case of the Italian
group index numbers, Prof. Bac
Bachi's new computations only are given These can not be
referred back to the 1913 base and it is therefore impossible to compare present levels with
prewar levels in these cases. No group index
numbers are compiled by the Bank of Japan
and the Danish index published by the Finanstidende has only two group indexes, one
for food and one for "other commodities."
1226
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
GROUP INDEX NUMBERS—UNITED STATES—BUREAU OF LABOR STATISTICS.
[1913-100.]
Farm
products.
Date.
1913
1914
1915
1916
1917 . .
1918
1919
1920
August, 1920
1921.
January... . . . . .
February
March.
April
May
June
July
August
Food,
etc.
Lumber
House
Chemicals
and
building and drugs. furnishing
goods.
material.
and
Cloths and Fuel and Metals
metal
clothing. lighting. products.
All
commodities.
Miscellaneous.
100
103
105
122
189
220
234
218
222
• 100
103
104
126
176
189
210
239
235
100
98
100
128
181
239
261
302
299
100
96
93
119
175
163
173
238
268
100
87
97
148
208
181
161
186
193
100
97
94
101
124
151
192
308
328
100
101
114
159
198
221
179
210
216
100
99
99
115
144
196
236
366
363
100
99
99
120
155
193
217
236
240
100
100
101
124
176
196
212
243
250
136
129
125
115
117
113
115
118
162
150
150
141
133
132
134
152
208
108
192
186
181
180
179
179
228
218
207
199
194
. 187
184
182
152
146
139
138
138
132
125
120
239
221
208
203
202
202
200
198
182
178
171
168
166
166
163
161
283
277
275
274
262
250
235
230
190
180
167
154
151
150
149
147
177
167
162
154
151
148
148
152
ALL COMMODITIES GROUP INDEX NUMBERS—UNITED KINGDOM—BOARD OF TRADE.
[1913=100.]
Meat
Cereals. and
fish.
1920 average
August, 1920
Other
foods.
Total
food.
Iron and
steel.
Other
metals Cotton.
Other
Other
Total All comand
textiles. articles. not food. modities.
minerals.
273
279
263
279
278
268
272
275
406
434
252
264
480
506
362
342
274
270
340
347
314
245
212
205
200
197
199
200
204
285
266
251
245
220
219
214
217
251
227
229
224
222
218
218
214
257
234
228
222
213
212
211
212
359
320
283
259
250
240
229
222
213
201
192
192
193
189
185
172
224
195
173
181
183
180
180
220
201
179
170
166
162
161
159
221
216
205
196
201
199
194
189
248
228
209
202
201
196
192
186
251
230
215
209
205
202
198
194
320
1921.
January
February
March
April
May
June
July
August
176
GROUP INDEX NUMBERS—UNITED KINGDOM—STATIST.
[1913=100.]
Date.
All
Vege-j Ani- Sugar,
Food- Min- Tex- Sun- Mate- comtable! mal cofmoddries.
rials.
foods, foods. fee, stuffs. erals. tiles.
ities.
1913
1914
1915
1916
1917
1918
1919
1920
August, 1920.
100
110
155
193
252
248
252
321
317
100
100
125
152
192
210
215
264
295
100
107
130
161
213
238
275
366
404
100
105
137
169
218
229
238
301
319
100
90
109
140
152
167
190
269
281
100
97
111
152
228
265
271
299
298
100
105
131
163
212
243
26S
290
278
100
98
119
153
198
225
243
285
285
100
101
126
159
206
226
242
291
298
Vege- Ani- Sugar,
table mal cof- |Food- Min- Tex- Sun- Matefoods. foods. tea'. tulfs. erals. tiles. dries. rials.
Date.
1921.
January
February
March.
April..
May...
June..
July...
August
.
234
206
214
212
211
226
222
221
283
270
262
249
223
206
212
213
192
187
182
180
158
156
144
159
251
234
232
225
209
207
206
207
225
200
179
176
177
157
108
156
198
179
171
172
164
164
167
160
230
224
221
199
192
181
183
180
219
203
193
184
179
168
174
1G8
All
com-
modities.
232
215
208
199
191
183
186
183
OCTOBBE, 1921.
1227
FEDERAL RESERVE BULLETIN.
GROUP INDEX NUMBERS—FRANCE—GENERAL STATISTICAL BUREAU.
[1913=100.]
Sugar,
Ani- Vege- coffee,
Min- Tex- Sunmal table and Foods
foods. foods. cocoa. (20). erals. tiles. dries.
Date.
1913
1914
1915 . .
1916
1917
1918
1919 .
1920
September,
1920
Raw All
mate- comrials mod(25). ities.
Date.
1921.
100
103
126
162
215
286
392
503
100
103
126
170
243
298
313
427
100
106
151
164
201
231
253
422
100
104
131
167
225
281
336
459
100
98
164
232
271
2S3
272
449
100
109
132
ISO
303
460
444
737
100
99
145
199
302
420
405
524
100
101
145
206
291
387
373
550
100
531
412
544
487
468
715
540
558
526
Sugar,
Ani- Vege- coffee,
Min- Tex- Sunmal table and Foods
(20). erals. tiles. dries.
foods. foods. cocoa.
101
January....
137
February
M arch.
187
262 1 April
339
May.
357 J une
510 July.
483
452
406
306
379
349
353
371
359
August
September..
337
338
367
359
317
338
393
352
389
334
317
322
348
346
368
304
337
311
397
378
366
372
356
357
366
355
347
341
300
289
281
266
261
253
245
253
460
398
375
314
282
278
290
321
388
Raw
materials
(25).
445
422
392
371
355
341
343
356
370
415
378
355
328
309
300
301
312
338
All
commodities.
407
377
360
347
329
325
330
331
342
i
GROUP INDEX NUMBERS—ITALY—RICCARDO BACHI.
[1920-100.]
MinOther
All
Vege- Ani- Chem- Tex- erals Building vegeSun- comtable mal icals. tiles. and matetable dries.
modfoods, foods.
met- rials. prodities.
als.
ucts.
August, 1920.
101
103
1921.
January
February—
March....
107
103
108
121
120
117
102
95
87
97
110
92
101
100
72
113
117
113
123
127
123
107
107
104
103
98
97
Other
MinAll
Vege- Ani- Chem- Tex- erals Build
ing vege- Sun- comtable mal icals. tiles. and mate- table dries. modmet- rials. prodfoods. foods.
ities.
ucts.
als.
1921.
April
May
June
July
August
106
102
97
100
107
109
107
102
95
116
112
101
109
113
111
110
95
92
96
105
95
90
87
87
94
88
81
83
87
GROUP INDEX NUMBERS—GERMANY—FRANKFURTER ZEITUNG.
[Middle of 1914=100.]
Agricul- Textural
tiles,
prod- leather.
ucts.
Miner- Miscelals.
laneous.
Agricul- Textural
tiles,
prod- leather.
ucts.
All
commodities.
1920.
Average for the year..
Beginning of October
1,232
1,344
3,175
2,943
1,733
1,734
1,440
1,592
1,522
1,582
1921.
Beginning of—
January
February
March
1,353
1,265
1,204
2,643
2,507
2,371
1,678
1,580
1,552
1,575
1,525
1,517
1,603
1,473
1,419
All
comMiner- Miscellaneous. modials.
ties.
1921.
Beginning of—
April
May
June
,
July
,
August
September
October...
1,195
1,169
1,116
1,270
1,881
1,845
1,995
2,153
2,125
1,907
2,153
2,289
2,616
3,270
1,608
1,566
1,524
1,613
1,636
1,748
2,112
1,410
1,428
1,387
1,467
1,723
1,500
1,617
1,633
1,588
1,550
1,608
1,733
1,777
1,993
GROUP INDEX NUMBERS—SWEDEN—SVENSK HANDELSTIDNING.
[July 1,1913-June 30,1914=100.]
Date.
100
136
151
152
181
221
261
262
1913-14
19141
1915
1916
1917
1918
1919
1920
August 1920
1921.
February
March
April
May
July
Vegetable
food.
271
244
231
238
232
221
237
236
217
Animal
food.
Raw materials
for agriculture.
Coal.
Building
Metals.
material.
Wood
pulp.
100
101
140
182
205
419
409
296
307
100
114
161
180
198
304
340
312
310
100
123
177
266
551
856
804
1,007
1,117
100
109
166
272
405
398
258
278
286
100
104
118
165
215
275
286
371
388
100
266
241
229
231
217
206
227
230
281
248
240
236
245
236
216
214
371
362
279
291
369
371
315
250
230
204
185
178
153
149
149
130
320
319
298
236
237
224
199
193
520
511
510
510
286
286
197
183
i Average for 6 months ending Dec. 31,1914,
116
233
267
300
308
675
756
Hides
and
leather.
Textiles.
Oils.
100
118
158
229
206
195
211
215
191
100
103
116
166
247
100
111
120
149
212
324
328
294
322
131
108
85
84
106
108
169
147
134
125
132
129
133
132
328
318
268
284
238
207
191
191
112
107
All commodities
100
116
145
185
244
339
330
347
365
267
250
237
229
218
218
!
211
198
1228
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
GROUP INDEX NUMBERS—CHRISTIANIA, NORWAY—0KONOMISK
REVUE.
[Dec. 31,1913-June 30,1914=100.]
Fuel.
Animal
food.
Date.
Vegetable
foods.
Feedstuffs
and fertilizers.
Coal
and
coke.
Iron.
Petroleum
and
benzine.
Build- i
Metals.
ing ma-|
terials. |
T
ft*
tlles
*
Hides
and
leather.
Pulp
wood.
All
commodities.
Paper.
|
End of—
1914
1915
1916
1917
1918
1919
1920
July 1920
115
149
193
260
324
329
352
337
130
150
198
292
277
281
385
376
108
150
195
231
284
277
340
328
151
224
355
1,161
514
767
647
1,050
104
132
170
231
247
102
407
274
115
158
435
720
573
442
482
724
128
289
401
503
503
187
200
237
131
213
326
359
358
416
455
307
294
307
283
280
273
301
370
324
315
304
303
323
408
317
292
287
273
277
275
254
512
358
289
317
317
345
388
384
364
357
343
343
336
303
394
340
328
295
295
296
307
165
167
169
166
166
167
190
378
362
339
329
324
308
309
1921.
January
February
March
April
May
June
July
.
107 1
•
1
i
1
|
;
i
!
i
j
!
105
121
178
264
302
356
402
413
158
193
251
296
286
284
255
269
103
124
171
217
283
277
321
413
101
137
190
263
313
322
472
453
115
159
233
341
345
322
377
409
374
352
350
329
324
324
319
217
212
203
199
190
197
197
321
289
289
289.
289
289
276
472
472
472
413
413
413
392
344
319
312
297
294
294
300
GROUP INDEX NUMBERS—AUSTRALIAN COMMONWEALTH—BUREAU OF CENSUS AND STATISTICS.
[July, 1914=100.]
Date.
July, 1914
1915
1916
1917
1918
1919
1920
August, 1920
Metals and
coal.
Textiles,
leather,
etc.
Agricultural
products.
100
117
154
213
220
193
209
209
100
93
131
207
232
217
243
251
100
202
113
110
135
186
229
238
100
127
124
110
121 j
137
184
189
100
110
127
131
138
147
186
193 !
I
100
150
155
155
147
145
201
284
100
116
136
194
245
261
295
312
215
214
203
202
194
195
195
194
145
132
107
114
108
105
111
116
197
192
176 i
164 I
161 i
160 |
158
160
208
206
207
178
175
171
166
164
197
197
198
196
195
1S8
1S8
190
191
184
178
144
140
134
119
120
279
303
303
284
279
250
238
231
-
3921.
January
February.
March
April
May
Juric
July
August
Dairy
products.
Groceries
and
t obacco.
Meat.
.SSSlChemtad..
i
j
i
!
i
!
!
All commodities.
100
149
172
243
315
282
277
282
100
141
132
155
170
180
218
236
244
242
234
231
224
233
220
224
196
192
181
171
166
162
159
160
I
GROUP INDEX NUMBERS—CANADA - D E P A R T M E N T OF LABOR.*
[1913=100.]
Date.
1913
1914.
1915
1916
1917
1918
1919
1920
August, 1920.
1921.
January
February
March
April
May
June
July
August
Grains Animals
and
and
fodder. meats.
ucts.
Fruits
and
vegetables.
BuildDrugs
Hides,
AH comOther ! Textile. leather,
| Metals,
als. Imple- ing ma- Fuel and and
moditerials,
lighting.
chemifoods.
ments.
etc.
ties.
lumber.
cals".
100
114
136
142
206
231
227
263
271
100
107
104
121
161
197
199
198
204
100
100
105
119
149
168
192
204
198
100
99
93
130
233
214
206
261
216
100 I
104 ;
121
136 !
180 !
213 !
22- '
258 j
100
102
111
148
201
273
285
303
30')
100 i
105 i
110 j
143 i
168 j
169 |
213 i
192
173
100
96
128
167
217
229
173
203
209
100
101
106
128
174
213
228
245
243
100
100
97
100
118
147
171
268
2S5
100
94
92
113
163
188
201
255
298
100
106
160
222
236
250
205
204
218
100
101
110
135
177
206
217
246
244
186
171
168
154
150
146
143
152
17S
9.1 A
171
171
169
158
146
143
143
185
174
161
126
124 !
133 j
142
184
163
175
162
182
169
157
182
212 !
205 i
203 i
189 j
189 I
1S3 j
174 I
173 !
22S
204
198
191
187
180
179
181
131
126
118
115
114
106 ,
106 !
101
174
167
158
146
147
154
147
145
257
257
243
241
236
236
236
237
248
239
231
229
224
21?
217
192
247
234
233
226
216
212
207
206
196
188
181
180
178
175
175
176
199
194
187
183
179
176
174
i Unimportant groups omitted.
Dairy
prod-
OCTOBER,
1229
FEDERAL RESERVE BULLETIN.
1921.
GROUP INDEX NUMBERS—CALCUTTA, INDIA—DEPARTMENT OF STATISTICS.
[End of July, 1J»14-1OO.|
Date.
Build- Manuing
facmale- tured ^fetals.
rials. articles
Jute
Hides Cotton
manu- Raw manu- Other
texan-i
faccotton. factiles.
skins.
tures.
tures.
Oils,
rausLard.
Raw
jute.
All
Oil
seeds.
Tea.
Other cornSugar. Pulses. Cereals foods.
modi*
tinjs.
End ofJulv, 1914..
Average for 1920...
August, 1920
100
13S
142
100
231
235
100
23S
257
100
147
99
100
354
360
100
153
139
100
149
163
100
162
168
100
12s
115
100
104
91
100
173
167
100
78
72
100
407
477
100
166
160
100
154
154
100
184
185
100
204
20P
1921.
January. .
February
March .
Anril
Mnv
June..
July
August
158
147
153
HI
151
149
149
143
238
226
239
242
262
244
237
242
247
243
255
255
254
245
215
241
SI
80
86
97
110
119
115
121
324
305
301
311
312
303
316
301
107
104
98
119
124
12V»
136
150
104
101
91
97
94
100
102
107
149
149
143
123
1?6
132
147
116
97
90
110
J12
H4
115
116
85
80
81
85
75
76
80
85
130
124
122
131
142
145
157
150
77
70
71
76
78
89
92
107
314
352
369
359
302
239
2*7
236
135
119
122
147
156
165
173
182
139
129
128
141
145
150
151
153
139
14*
136
150
153
152
162
170
178
135
m
175
183
184
178
183
184
COMPARATIVE RETAIL PRICES IN PRINCIPAL COUNTRIES.
In the following table are presented statistics
showing the trend of retail prices and the cost
of living in the United States and important
European countries:1
i Three of th&se index numbers—those for the United Kingdom,
Paris, and Sweden—are constructed on the basis of prices in July, 1914=
100. In the case of the Unit ed States, the original base, that of the year
1913, has been shifted to the July, 1914, base. The German index uses
the year ending July, 1914, as a base.
The American index number, constructed by the Bureau of Labor
Statistics, was based upon the retail prices of 22 articles of food, weighted
according to family consumption, until January, 1921, when it was
increased to 43 articles reported by dealers in 51 important cities. The
method of weighting continues the same, although the actual "weights"
applied have been changed.
The British index number of the cost of living constructed by the
Ministry of Labor consists of the retail prices not only of foodstuffs but
of other articles as well. Retail clothin? prices, rents, and the cost of
fuel, lighting, and misce'laneous household items are also taken into
consideration. The index number is weighted according to the importance of the items in the budgets of wo king-class families.
The retail price inlex for Paris, compiled by the French General
Statistical Office, consists of retail prices of 13 different commodities,
weighted according to the average annual consumption of a workingman's family of four persons. Eleven of the commodities included in
this index are foods, and the other two are kerosene and alcohol.
The Swedish index number consists of the retail prices of foodstuffs,
fuel, and lighting and is based upon the prices of 51 articles in 41 towns
(in 1920, 50 articles in 49 towns), weighted according to the budget of
a workingman's family which before the war had a yearly income of
2,000 kroner.
The German index expresses upon a percentage basis figures compiled by Dr. R. R. Kuczynski of the Statistical Office of Berlin-Schone-
berg. Dr. Kuczynski bases his calculations upon the cost of living
per week of a family of four in Greater Berlin.
RETATL PRICES IN THE UNITED STATES, PARIS, AND
SWEDEN; COST OF LIVING IN UNITED KINGDOM AND
BERLIN.
[July, 1914=100.1
United
States,
retail
prices.1
United
Paris,
Kingretail 1
dom, cost prices.
of living/
Sweden,
retail
prices.
1919.
1920.
182
199
216
249
260
371
321
298 i
1920.
August.
203
255
373
308 |
1921.
January
February
March..
April
May
June
July
August
September ..
155
153
149
142
141
145
152
265
251
410
3S2
358
328
317
312
283
262
253
248
237
234
232
234
1
2U
233
228
219
219
222
30(i
317
329
Berlin,
cost of
living.*
1,111
1,087
1,035
976
990
1,080
1,125
2
Average for the month.
Beginning of month.
3 August, 1913-July, 1914=100.
1230
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN".
FOREIGN TRADE—UNITED KINGDOM, FRANCE, ITALY, SWEDEN, JAPAN, AND
GERMANY.
In the following table are presented figures
showing the monthly value of the foreign trade
of a group of important European countries
and Japan. Up-to-date figures for Germany are
not available.1
i Currencies have not been converted to a common unit, nor are
methods of valuation the same in all countries. In England imports
are given current c. i. f. values in England; exports and reexports,
current f. o. b. values. The same method is followed in Japan and
Sweden. In France and Italy the value of foreign trade is estimated
not in terms of current prices but in terms of those of some earlier date,
usually the preceding year.
None of the figures presented below include the import or export
of gold and silver. In the case of England and France, group figures
are given as well as total values, while in the case of the other countries,
total values only are presented. This does not mean that group figures
are not obtainable, merely that they are either delayed in publication
or appear not to be of such general interest as the French and English
material.
Japanese figures for recent months are received by cable and subject to revision.
FOREIGN TRADE OF THE UNITED KINGDOM.
Imports.
In thousands of pounds steiling.
Raw
mate- Articles
Food, rials
and wholly
or
drink, articles
mainly
and
mainly
tobacco.!|unmanu-| manufactured. factured.
Miscellaneous,
including
parcel
post.
Monthly average:
Reexports.
Exports.
In thousands of pounds sterling.
Total.
In
thousands
of tons.
Raw
mate- Articles
Food, rials
and wholly
drink, articles
or
mainly
and
mainly
tobacco. unmanu-j manufactured. factured.
Miscellaneous,
including
parcel
post.
Total.
In
In
In
thouthou- sands thousands
of
sands
of tons. pounds of tons.
sterling.
24,184
59,927
63,948
23,485
50,565
59,292
16,134
24,663
37,902
259
358
254
64,061
135,513
161,395
2,716
2,814
4,241
5,825
9,274
12,138
34,281
53,457
93,394
949
1,008
1,528
43,770
66,553
111,297
7,650
3,795
3,292
9,131
13,729
18,701
*i39
August.
61,874
51,268
40,016
185 153,343
4,302
3,503
10,467
99,645
1,288
114,903
3,066
13,368
118
1921.
January
February...
March
April
May
June
July
August
September.,
49,158
47,750
50,888
52,908
50,094
51,915
42,090
50,504
37,005
25,504
17,739
16,547
16,711
18,389
20,232
19,589
30,467
23,394
24,930
20,374
19,282
17,600
18,005
18,194
420
326
184
167
221
278
431
214
3,383
2,573
2,697
2,668
2,891
3,852
3,075
2,897
2,729
2,101
2,439
2,702
3,124
7,668
5,881
5,832
2,936
1,437
1,125
2,775
7,058
79,746
58,177
56,969
52,019
38,662
33,658
36,705
39,936
1,491
1,089
1,111
1,184
889
930
991
1,228
92,756 2,558
68,222 2,446
66,809 2,656
59,868 1,279
43,088
500
38,152
43,172 11,350
51,346 3,747
87,118
9,955
8,004
8,888
8,524
7,232
7,083
9,362
9,998
8,595
87
82
127
126
90
1913
1919
1920
152
1920.
1
117,051
96,974
93,742
89,996
86,308
88,182
80,757
88,581
55,248
4,050
3,389
154
Includes reexports.
FOREIGN TRADE OF FRANCE.*
Imports.
Exports.
In thousands of francs.
Food.
Monthiy average:
19132
19193
19203
1920.
August*
January
February
March
-April
May
Jutie
July
August
1
l&l, 465
892,040
718,179
Raw
materials.
412,144
1, 229,435
1,400,046
Manufactured
articles.
Total.
In
thoujsands of]
metric Food.
tons.
In thousands of francs.
Raw
materials.
ID
thoujsands of
metric
tons.
Manufactured
articles.
Parcel
post.
Total.
301,420
615,630
1,187,742
47,182
71,444
99, 867
573,351
989, %6
1,869, 563
1,840
464
1,039
252,118 557, 791 1, 854,852
116,255
2,781,016
1,299
115,605
85,074
108,418
107,799
95,271
84,376
74,350
82,735
1,882,618
1,899,444
1,68ft,426
1,932.268
1,648.635
1,950,484
1,563,055
1,7*4,894
1,11(>
1,414
1,069
1,154
138,169
701,778 3,685 69,908 154,841
861, 797 2, 983, 272 3, 204 99, 201 203,691
832,1S7 2, 950, 413 4,245 184,277 397,677
1,219,150
1,735,556
1,144,940
4,099,640
4,201
346,703
386,169
455,545
390;345
419,220
490,615
434,001
555,515
1,101,267
S03,231
786.352
887,151
690,553
871,374
704,069
855,C97
534,498
424, 531
501,01]
501,593
455,726
361,545
331,047
321,152
1,982,468
1,613,931
1,742,908
1,779,089
1,565,508
1,723,534
1,469,117
1,732,394
3,702 188, 546
2,579 172,992
2,827 162,901
2,652 176,333
2,250 151,724
2,047 148,237
2,164 123,303
2,593 112,654
1921.*
436,069
478,561
379,281
46S, 453
415,057
540,722
439,534
445,312
1,142,398
1,1*2, 817
1,035,828
1,179,683
986,583
977,129
925,868
1,084,193
i;i68
1,405
1.194
1,034
Not including gold, silver, or the reexport trade.
» Ctilculaied in 1913 value units.
* Calculated in !9ir» value units. French foreign trade figures are originally recorded in quantity units only, and the value of the trade is calculated by applying official value units to the quantities imported and exported. Normally the monthly statements of trade appear computed at
the rates of the year previous, and only af the fnd of the year is the trade evaluated at the prices prevailing during that year. Because of the dis-.
turbed price ondiiions in France during the past two years, 1919 price units are being applied to the 1921 trade,
4 Calculated in,1920 value wilts,
1231
FEDERAL RESERVE BULLETIN.
OCTOBEE, 1921.
FOREIGN TRADE OF ITALY, SWEDEN, AND JAPAN.
Italy.
(In millions of
lire.) i
Sweden.
(In millions of
kronor.)
Japan.
(In millions of
yen.)
Imports. Exports. Imports. Exports. Imports. Exports.
Monthly average:
1913
1919 .
1920
304
1,385
1,322
210
506
650
71
211
281
68
131
191
61
181
195
53
175
1,401
2,076
1,040
1,249
662
752
521
532
314
283
331
308
227
224
268
230
296
220
1E7
123
193
184
154
175
1,166
1,320
1,503
1,346
503
566
569
586
122
116
99
106
95
2 93
91
89
75
69
82
2 69
105
119
337
139
149
148
109
131
75
77
94
115
105
107
99
105
16?
1920.
Mav
j une
July
August
1921.
January
February
March
April
May
June
July
\ugust
...
• .
U920 and 1921 figures based on 1919 value units.
2 Provisional.
FOREIGN TRADE OF GERMANY.
[In thousands of marks.]
Imports. 1
Tonnage
in thousands of
metric
tons.
Monthly average:
1913
1920
1920.
July
August
1
Gold
and
silver
Exports. 2
Imports. 1
Tonnage
thouMerchan- in
sands of
dise.
metric
tons.
Tonnage
in thousands of
metric
tons.
Gold
and
silver.
1,680
1,757
1,757
2,007
6,400
6,239
3,353
45,306
6,068
1,570
8,450
841,375
17,773 5,775,933
6,146
1,651
1,739
1,512
2,350 6,187,922
5,116 6,027,625
2,094
1,911
Not including philanthropic gifts.
September
October
November
December
2
Exports.2
Tonnage
thouMerchan- in
sands of
dise.
metric
tons.
1920.
6,411,311
6,488,133
7,909,571
7,817,910
Not including deliveries on reparations account.
1,837
1,494
1,768
1,758
1232
FEDERAL RESEBVE BULLETIN.
OCTOBER, 1921.
DISCOUNT AND OPEN-MARKET OPERATIONS OF FEDERAL RESERVE BANKS.
Following is a set of tables showing the volume of bills discounted and of acceptances and
Government securities purchased by the Federal Reserve Banks during August, 1921:
VOLUME OF OPERATIONS DURING AUGUST, 1921.
U. S. securities purchased.
Bills discounted Bills bought
in open
for member
market.
banks.
Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
$294,781,550
1,598, 703,932
309, 970,456
193,149,873
214,762, 719
123,641,568
293,918,693
117,532,426
56,610,268
$15.126,938
63,566,966
4,302,509
3,482,056
1,647,203
778,995
9,814, 864
1,187,430
59,954,639
63,432,441
186,604,625 I
248,100
20,000
7,127,984
8 months ending Aug. 31,1921
8 months ending Aug. 31,1920
43,836,513,065
53,128,856,073
| Certificates of
indebtedness.
$360,000
$1,506,000
25,957,500
1,758,000
308,500
240,000
268,500
500
8,802, 500
1,618, 500
536,500
144,500
113,500
3,513,063,190
7,982,524,044
Total: August, 1921..
August, 1920..
Bonds and
notes.
107,303,045 |
259,708,278 |
921,737,496
2,192, 875,340
Total.
August, 1921.
August, 1920,
$311,774,488
$468,250,695
1,688,228,398 | 5,280, 564,165
316,030,965
558,633,920
196,940,429
224,380,105
216,409,922
271,092,721
124,661,063
209,481,507
312, 804,557
547,983, 880
120,338,356
207,493, 845
57,260,268
81,748,590
60, 347, 239
150,307,279
63,452,441
111,637,861
194.915,109
254,997,154
""77,'656'
1,105,500
1,059,000
18,900
41, 738,000
124,320,500
3,663,163,235
29,316,661
264,400
2,576,573,557
5,370,209,000
47,364,140,779
8,366,571,722
*66,"692,*264,"8i3
VOLUME OF BILLS DISCOUNTED DURING AUGUST, 1921, BY CLASSES OF PAPER; ALSO NUMBER OF MEMBER BANKS
ACCOMMODATED.
Federal Reserve Bank.
Member banks' collateral j
Customers'
notes.
j
paper seCommercial j Agricultural Live-stock
cured by
paper.
Governpaper.
Secured by Otherwise paper, n. e. s. |
ment obli- Government
secured.
gations.
obligations.
$12,055,781
12,970,010
4,484,400
3,189,290
1,959,878
-• 3,596,886
3,724,872
2,136,260
767,891
927,968
268,197
1,749,688
$118,078,703
$163,934,300
751.648,157
829,890,423
76; 650,385
228,551,657
81,722,967
105,485,920
$140,000
31,697,284
174,762,044 1,222,500
52,468,826
61,592,290
678,000
163,884,885
488,700 112,235.477
32,653,072
78,745,218
98,760
24,456,3S9
23,902,187 1,955,870
13,515,676
39,717,340
13,848,470
34,187,152 5,323,000
35,585,743
117,689,122 23,125,923
$500,581
439,333
165,762
378,360
4,560,879
4,046,366
13,128,128
3,147,144
3,810,630
1,770,314
4,324,769
5,065,068
378,453
113,880
396,488
1,368,249
3,960,332
5,031,984
2,401,797
47,831,121
Total: August, 1921
69,798,974
July, 1921
August, 1920.... 178,013,613
149,726,351
July, 1920
2,022,342,538 33,032,253 1,344,561,099
2,114,363,112 22,416,045 1,454,254,080
41,337,334
46,104,562
13,770,615
17,526,512
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
4,755,968,937
At
A
• U\SJ C W _ / «
*-»i-*r* ***mr\
%S*S 9
A A O
4,383,779,883
\Jy
8,232,752
8,297,166
+*'SA*y
% *****
Boston
New York
Philadelphia...
Cleveland......
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total: August, 1921..
July, 1921
August, 1920..
July, 1920
$2,500
19,829
1,000
96,103
$65,000
73,900
138,900
45,000
Domestic.
Amount.
$209,685 $294,781,550
2,497,693 1,598,703,942
309,970,456
117,252
193,149,873
2,040,888
214,762,719
560,144
12.5,641,568
880' 747
293,918,693
322,751
117,5^2,426
242,684
56,610,268
349,602
59,954,639
63,009
6a,
4d2,441
448,869
186,604,625
908,384
$174,093,230
859,214,613
243,482,959 i
287,702,810
240,254,381
241,780,106 I
570,224,500 |
160,398,703 !
158,340,735 '
127,744,193
183,704,521
278,122,439
8,641,698 3,513,063,190 3,513,063,190 |
8,628,499 o, 7^5,078,412
14,010,820
13,457,509
Dollar exchange.
$448,095
$715,392
$10,000
66,345
30,000
60,000
20,000
52,800
5666
579,440
1,417,068
7,982,524,044
6,714,92d, 809
818,192
474,560
Member banks.
Per cent Number
of total. in district
Aug. 31.
5.0 I
24.5 i
6.9
8.2
6.8
6.6
16.2
4.6
4.5
3.6
5.2
7.9
100.0
Accommodated.
Number. Percent,
437
794
700
881
621
500
1,436
585
1,018
1,089
873
217
321
382
363
411
372
915
327
552
500
640
452
49.7
40.4
54.6
41.2
66.2
74.4
63.7
55.8
54.2
45.9
73.3
52.1
9,802
. 5,452
5,602
55.6
57.2
9,487
9,458
4,780
4,858
50.4
51.4
i Total discounts multiplied by ratio of average maturity of bills discounted by each bank to average maturity (15.76) for system.
10,000
50,000
5,490,299
7,068,782
Total reduced to a common maturity basis.1
Tota1 all
classes.
Foreign.
Domestic.
Foreign.
3,020,807,623
2,152,594,118
Trade acceptances.
Federal Reserve Bank.
Bankers' acceptances.
OCTOBER, 1921.
1233
FEDERAL RESERVE BULLETIN.
VOLUME OF BILLS DISCOUNTED DURING AUGUST, 1921, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE
RATES AND MATURITIES.
Federal Reserve Bank.
5§ per cent.
6 per cent.
$294,781,550
1,598, 703,932
309, 970,456
148,785,734
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
$44,289,139
214, 702,719
123,641,568
293,918,693
117,472,426
24,704,408
59,954,639
63,432,441
60,000
6£per cent.
Total.
$75,000
31,905, 860
186,604,625
2,538,906,297
875,972,363
Total: August, 1921.
July, 1921
942,176,033
2,694,528,909
31,980, 860
164, 577,140
Average
Average
rate (365- maturity.
day basis).
$294,781,550
1,598,703,932
309, 970,456
193,149, 873
214,762, 719
123,641, 568
293,918,693
117,532,426
56,610,268
59,954, 639
63,432,441
186,604,625
Per cent.
5.50
5.50
5,50
5.60
6.00
6.00
6.00
6.00
6.42
6.00
6.00
5. 50
Days.
9.31
8.47
12.38
23.47
17.63
29.54
30.57
21.50
43.52
33.57
45.83
23.47
3,513,063,190
3,735,078,412
5.76
6.02
15.76
16.18
VOLUME OF BANKERS' AND TRADE ACCEPTANCES PURCHASED DURING AUGUST, 1921, BY CLASSES.
I
Bankers' acceptances.
Trade acceptances.
Total bills
purchased.
Federal Reserve Bank.
Foreign.
exDomestic. Dollar
change.
$11,485,729 $3,074,585
50,002,896 9,140,916
1,642,804
2,540,875
1,974,756
1, 507,300
308,403 1,338,800
231,937
547,058
6,724,315 2,990,549
198,519
948,911
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
248,100
5," 443," 656*
T o t a l : A u g u s t ; 1921..
J u l y , 1921
A u g u s t , 1920.
J u l y , 1920
20,000
1,104,328
Total.
Foreign. Domestic.
$566,624 $15,126,938
4,390,170 63,533,982
118,830 4,302,509
3,482,056
1,647, 203
778,995
100,000 9,814, 864
40,000
1,187,430
580,000
$32,984
Total.
$32,984
248,100
20,000
7,127,984
79,757,243 21,717,194 5,795,624 107,270,061
29,136,700 16,140,995 1,345,000 46,622,695
Total adjusted to a
common
maturity
basis.1
Amount.
Per cent
of total.
$15,126,938 $9,283,442
63,566,966 47,481,592
4, 302, 509 8,610, 863
3,482,056
2,637,912
1,647,203 2,438,532
778,995
1,446,196
9, 814,864 29,142,881
1,187,430
721,517
248,100
20,000
7,127,984
437,339
45,723
5,057,048
32,984 107,303,045 107,303,045
46,844 46,669,539
32,984
46,844
14.1
59.2
4.0
3.3
1.5
.7
9.2
1.1
.2
"6*7
100.0
12,269,879 259,708,278
190,985,198 51,027,040 5,426,161 247,438,399 12,269,879
158,499,195 48,772,794 2,023,747 209,295,736 9,953,648 $214, 293 10,167,941 219,463,677
i Total purchases multiplied by ratio of average maturity of bills purchased by each bank to average maturity (25.33) for system.
VOLUME OF ACCEPTANCES PURCHASED DURING AUGUST, 1921, BY RATES OF DISCOUNT CHARGED; ALSO AVERAGE RATES
AND MATURITIES.
5 per
cent.
Federal Reserve
Bank.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicaeo
St. Louis
Minneapolis..
Kansas City.
Dallas
San Francisco
5Jper
cent.
5^ per
cent.
5f per
cent.
5£per
cent.
5| per
cent.
5$ per
cent.
$193,678
'$13, 810,807 $906, 527
| 3,981,013 4,345,081 51,402, 961 560,065 $318,363 $416,742 $2,424,457
78,710 200,000
221,755
145,860
I 3,656,184
301, 850
91,791 286,162 260,000
836,493
} 569,146 1,136,614
112,967
1,130,703 4,004,280 3,779,881 365,000 435,000 100, 000
33,333
40,000
75, 549
323,314
J 715,234
!
524,215 2,040,481 1,0b7,093 "426," 875 2,*5i2,"812 339,078
5| per
cent.
$48,284j
117,430
6 per
cent.
£p
cent.
Total.
$15,126,938
$20,000 $50,000 63,566,966
4,302, 509
3,482,056
1,647,203
1,647,203
778,995
666,028
9,814,864
1,187,430
248,100
20, 000
100, 000
Total:
August,
48,284 2, 701,331
1921... 24,387,302112,578,843 57, 847,423 1,791, 668 3,905,304 1,115, 820 2, 877,07C
July,
1,040,287 3,043,611
146,
9,167,587 3,599,019 18,621
1921... 1,317,271 650,610 4,126,131 4,146,303
248,100
20,000
7,127, 984
50,000107,303,045
5,0351 46,669, 539
i Includes $13,330 and $938,800 of acceptances purchased at 6J and 7 per cent, respectively.
NOTE.—All Federal Reserve Banks use 360 days to the year in calculating interest on bills bought in open market.
Average Average
rate
(365 day maturbasis). ity.
Per ct. Days.
5.11
15.54
5.32
18.92
5.11
50.69
5.29
19.19
6.08
37.49
6.01 47.02
5.29
75.20
5.21
15.39
6.08
6.08
5.38
44.64
57.90
17.97
5.31
25.33
5.70
31.26
1234
OCTOBER, 1921.
FEDERAL RESERVE BULLETIN.
HOLDINGS OF EARNING ASSETS, BY CLASSES.
Following is a set of tables giving a detailed analysis of the different classes of earning
assets held by the Federal Reserve Banks at the end of August, 1921:
AVERAGE DAILY HOLDINGS OF EACH CLASS OF EARNING ASSETS, EARNINGS THEREON, AND ANNUAL RATES OF EARNINGS, DURING AUGUST, 1921.
Average daily holdings of—
Federal Reserve
Bank.
All classes
of earning
assets.
$107,169,658
471,162,454
143, 453,349
157,831,136
109, 013, 750
124,179, 803
270,317,276
86,477,520
77,027,000
85,192,675
61,156,097
148,187,259
Discounted Purchased
bills.
bills.
$82,461,391
392,668,323
113,653,632
135, 059, 745
99, 762,215
102,650,137
227,034,117
73,076,918
71, 303,000
67,116,397
54,701,2011
134,786,428
Earnings o n -
U.S.
securities.
$5, 663,453 $19,044,814
18,101, 844 60, 392, 287
2,085,804 27,713,913
1,475,741 21,295,650
2,048, 4581 7,203,077
1,027,196 i 20, 502,470
3,119,6331 40,163,528
248,7281 13,151,874
I 5,724,000
984,745! 17,091,533
83, 7111 6,371,185
3,285,082 10,115,749
All classes
of earning
assets.
Discounted
bills.
Annual rate of earnings on—
Al!
U.S.
Dis
Purclasses
securi- of earn- counted chased U.S.
ties.
ing
bills. securibills.
ties.
assets.
Purchased
bills.
Per ct. Per ct. Per ct. Perct.
5.28
5.06
5.73
2.09
5.22
5.19
5.61
2.40
5.12
4.85
5.52
2.12
5.48
5.33
5.84
2.06
6.07
5.74
6.00
2.02
6.01
5.58
6.03
3.22
5.30
5.79
6.39
2.47
5.41
5.43
6.02
2.17
6.22
6.55
2.10
5.70
5.21
5.
2.15
5.93
5.99
6.44!
2.19
5.44
5.47
5.73
2.09
$401,465
1, 872,165
533,016
670,360
508,527
542,521
1,231,199
373,626
399,278
341,239
299,054
655, 546
$25,389 $33,727
80,359 123,048
9,086 49,927
6,866 37,321
10, 567 12,347
5,410 56,094
14,038 84,326
1,144 24,231
10,194
4,782 31,263
421 11, 852
15,170 17, 943
Total:
August,
1,841,167,977 1, 554,273, 504 38,124,395J248,770,078 8,493, 501 7,827,096
1921
July, 1921. 2,012,699,492 1,725,162,306 26,395, 821 261,141,365 9,551,847 8,906,789
173,232 492,273
133,744 511,314
5.43
5.59
5.9
6.0
5.35
5.97
2.33
2.31
August,
1 9 2 0 . . . . 3,233,862,055 2,605,113,456 325,461,036J303,287, 563 15, 872,666 13,627,062 1,674,351 571,253
July, 1920. 3,200,972,777 2,519,043,471 363, 620,679 318,308, 627 15, 543,678 13,087,226 1,870, 735 585, 717
5.81
5.72
6.1'
6.13
6.07
6.07
2.22
2.15
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$460, 581
2,075, 572
592,029
714,547
531,441
604,025
1,329, 563
399,001
409,472
377,284
311,327
HOLDINGS OF DISCOUNTED BILLS, BY CLASSES.
[End of August figures. In thousands of dollars.]
Federal Reserve Bank.
Total.
Member banks'
Customcollateral notes.
ers' paper secured by
Secured
GovernOtherment obli- by Governwise
ment
obligations.
secured.
gations.
100,323
355,970
106,529
124,748
103,463
99,473
210,268
73,0£8
70,185
65,431
53,713
128,734
8,658
15,497
18,138
8,710
4,318
6,504
8,556
3,299
909
2,119
1,126
4,219
29,910
136,071
60,012
34,928
26,135
28,574
61,847
24,026
5,318
16,366
5,825
34,081
Total: Aug. 31,1621
July 30,1921
1,491,935
1,641,612
82,053
96,277
Aug. 27,1P20
July 30,1920
2,667,127
2,491,630
297,442
281,766
Boston
New York
Philadelphia
Cleveland
Atlanta...
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Bankers'
acceptances.
Commercial paper
n. e. s.
Agricultural
paper.
Trade acceptances.
Livestock
paper.
Foreign. Domestic. Foreign. Domestic
2,630
11,347
60,379
200,958
27,701
77,503
58,631
45,975
87,594
33,468
28,457
20,067
9,655
47,303
1,128
587
474
832
12,312
13,895
51,202
10,205
22,381
6,794
19,688
17,816
1,393
13,648
19,893
14,071
12,639
257
50
64
241
1,806
199
2,327
1,329
1,239
826
467
371
99
718
958
463,123
481,497
16,242
12,104
695,691
801,489
157,394
157,456
65,033
72,883
635
5,476
1,080
613
104
85
10,580
13,732
1,017,388
959,251
3,819
3,166
1,103,711
1,015,599
117,050
106,611
99,228
95,909
50
584
300
223
37
1,071
7
5
317
74
2,986
337
674
41
40
40
20
203
93
9,013
9,830
19,476
19,498
1235
FEDERAL RESERVE BTJLLETIK.
OCTOBEE, 1 9 2 1 .
HOLDINGS OF BANKERS' AND TRADE ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTANCES.
[End of August figures. In thousands of dollars.]
Ml classes
Federal Reserve Bank.
Total.
Boston....
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis..
Kansas City.
Dallas.
San Francisco
Total: August 31,1921
Julv 30,1921..
Purchased in open market:
August 31, 1921.. .
Julv 30, 1921
Discounted for member banks:
August 31 1921
July 30,1921.
4,415
18,159
3,327
3,929
3,675
2,117
3,900
1,107
371
1,210
788
4,723
DisPurchased in counted
for
open
market. member
banks.
4 174
15,302
3,128
1 521
2,346
878
3,054
437
1,018
70
3,394
Trade acceptances.
]Bankers' acceptances
241
2,857
199
2,408
1,329
1,239
846
670
371
192
718
1,329
47,721
37,883
35,322
19,906
12,399
17,977
Total.
Dollar
Foreign. Domestic. exchange.
4,174
16,313
3,128
1,602
2,346
878
3,074
640
3 248
13 737
1,669
745
583
554
2,190
417
749
2,415
1,345
857
1,763
324
809
223
1,111
70
3,659
998
50
2,814
113
20
485
36,995
24,001
27,005
17,518
9,103
5,468
35,280
17,912
26,370
12,042
8,023
4,855
1,715
6,089
635
5,476
1,080
613
Total.
Foreign. Domestic.
360
241
1,846
199
2,327
1,329
1,239
825
467
371
99
718
1,064
106
241
1,806
199
2,327
1,329
1,239
826
467
371
99
718
958
887
1,015
10,726
13,882
146
150
10,580
13,732
887
1,015
42
65
42
65
10,684
13,817
104
85
177
161
114
75
40
10,580
13,732
HOLDINGS OF BANKERS' ACCEPTANCES PURCHASED OR DISCOUNTED, BY CLASSES OF ACCEPTING INSTITUTIONS.
[End of August figures. In thousands of dollars.]
Nonmember banks
and banking corporNonations.
national.
Member banks.
Federal Reserve Bank.
Total.
National.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total: August 31,1921
July 30, 1921
Purchased in open market:
August 31, 1921
July 30, 1921
Discounted for member banks:
August 31,1921
July 30, 1921
4,174
16,313
3,128
1,602
2,346
878
3,074
640
2,264
5,312
1.510
531
2,021
183
1,315
263
1,352
2,795
985
729
325
685
1,759
377
1,111
70
3,659
195
20
1,729
"816"
36,995
24,001
15,343
9,517
10, 739
7,969
35,280
17,912
14,763
7,005
10,395
6,406
1,715
580
2,512
344
1,563
Private
bankers.
Branches
and agencies of
foreign
banks.
123
2,511
119
155
1,267
58
6,363
4,986
3,070
1,116
1,480
413
5,638
3,087
3,022
1,034
1,462
380
48
18
33
280
4,428
456
313
10
916
50
1236
FEDERAL RESERVE BULLETIN".
OCTOBER, 1921.
BANKING CONDITIONS DURING AUGUST AND SEPTEMBER, 1921.
Changes in the banking situation during the
four weeks ending September 14, as indicated
by the weekly statements of reporting member
banks, were quite moderate, a slight increase
in loans and discounts being more than offset
accommodation with the Federal Reserve
Banks. Considerable gains of gold and continued reduction of note circulation have caused
a further strengthening of the reserve position
of the Federal Reserve Banks.
WEEKLY C HANGES IN
PRINCIPAL ASSET' AND LIABILITIES
(
REPORTING MEMBER BANKS
FEDERAL RESERVE BANKS
!
2
3
4
5
RESERVE RATIO
T O T A L DEPOSITS
CASH RESERVES
F. R. N O T E C I R C U L A T I O N
U. S . SECURITIES
6 PURCHASED ACCEPTANCES
DISCOUNTS SECURED B Y
U.S.GOVERNMENT OBLIGATIONS
8 TOTAL DISCOUNTS
9 T O T A L EARNING A S S E T S
MILLIONS
OF
DOLLARS
1
—
3500
V
V
3000
V
1
\
\
1500
\ "V
VVV
18
18
3500
/
17
V
2500
V
V *\
A
5
\
16
17
v
I\ \\
\
\
£\
2000
15
1500
14
s.s
7
13
4
o
A
500
1
^,
6
ft
>2
v.
l\
7
7
100
6
6
80
5
500
20
.
\
3
-A
2
2
YEAR
by liquidation of investments, largely Treasury
certificates. Redemption of these certificates
during September and accumulation of funds
in anticipation of September 15 tax payments
enabled the member banks during the latter
part of the period to reduce substantially their
2
•\
1
1
.
MONTH J. F. M.A.M.J. J.A.S.O. N.D. J.F. M.A.M.J. J.A.S.O. N.D. MONTH
5
4
4
3
40
1921
10
8
1000
1920
\.
8
1
YEAR
11
"\
9
60
1500
12
9
S
1
13
\
3
10
PER
CENT
.-'
A
\ N
0
\*~
2500
A, •V
11
4
3000
A A.
V.
RESERVE
RATIO
3500
s
12
\A
5
15
14
4
y^
•>
1000
V
16
-V
MILLIONS
OF
DOLLARS
2000
BILLIONS
OF».
DOLLARS
M
1000
500
BILLIONS
OF
DOLLARS
3000
r
2000
A C C O M M O D A T I O N A T FEDERAL R E S E R V E B A N K S
U.S. OBLIGATIONS A N D LOANS SECURED THEREBY
N E T DEMAND D E P O S I T S
TOTAL-'LOANS
T O T A L LOANS A N D I N V E S T M E N T S
\
s
/
2500
MILLIONS
OF
DOLLARS
1
2
3
4
5
0 mmm
MONTH J . F. M. A.M. J . J. A. S. 0. N. D.J. F. M. A M. J. J. A. S. 0. N. D. MONTH
YEAR
1920
1321
YEAR
Except for the gradual liquidation of $52,000,000 of Treasury certificates, largely thrcugh
sales to ultimate investors, member bank
investments in Government and other securities show but small changes, the total decrease
for the review period being $6570Jo,000. Loan
OCTOBER,
1921.
FEDERAL. RESERVE BULLETIK.
liquidation on a moderate scale continued
during the first three weeks. During the week
ending September 14, apparently in connection
with impending tax payments, loans and discounts of the reporting banks show an increase
of $81,000,000, of which $45,000,000 represents
an increase in loans supported by corporate
securities. Total loans and investments show
a reduction of $41,000,000 for the period, and
on September 14 stood at $14,801,000,000, or 13
per cent below the total shown about a year
before.
Borrowings of the reporting member banks
from the Federal Reserve Banks during the
first three weeks of the period under review
continued fairly constant, but show a substantial decline during the following week, when
accumulation of funds to provide for the
September 15 tax payments enabled the member banks to reduce for the time being by about
$72,000,000 their borrowings from the Federal
Reserve Banks. It is also probable that a large
portion of the proceeds from the redeemed certificates went to swell the demand deposits of
1237
the member banks, pending the payment by depositors of the September 15 installment of income and excess profits taxes and the clearance
of checks in payment for newly subscribed certificates and notes, for it is well to remember that by
far the larger part of Treasury notes and certificates is being held at present by investors outside the banks. The banks, in turn, used
these extraordinary accumulations to reduce
for the time being their borrowings from the
Federal Reserve Banks. The ratio of these
borrowings to total loans and investments of
the reporting banks shows a decline from 6.6
to 6.1 per cent. For the New York City banks
a reduction in borrowings from the local Federal Reserve Bank by nearly $50,000,000, and
in the ratio of accommodation from 5.5 to 4.4
per cent, is noted.
In the following table are shown the principal
changes in the condition of the reporting member banks during the four weeks ending
September 14. Corresponding changes since
the beginning of 1920 are traced in the chart
on page 1236:
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF REPORTING MEMBER BANKS.
[In millions of dollars.]
Sept. 14.
Number of reporting banks
Loans and discounts:1
Secured by U. S. Government obligations
Secured by stocks and bonds (other than U. S. Government obligations).
All other
Total loans and discounts
U. S. bonds
U. S. Victory notes
U. S. Treasury notes
U.S. certificates of indebtedness —
Other bonds, stocks, and securities-
810
Total investments
Total loans and discounts, and investmentsl
Reserve with F. R. Bank.
Cash in vault
Net demand deposits
Time deposits
Government deposits
Bills payable and rediscounts with F. R. Bank, total
Secured by U. S. Government obligations
Ratio of accommodation at F*. R. Bank to total loans and investments.
i Including bills rediscounted with Federal Reserve Bank.
Discount operations of the Federal Reserve
Banks during the four-week period between
August 24 and September 21, according to the
condition statements of Federal Reserve Banks,
show an increase during the first week in
September, when member banks increased
their borrowings from the reserve banks to
provide themselves with Federal Reserve notes
to meet the holiday demand for currency.
For the subsequent two weeks these borrowings
show a reduction of $121,300,000, partly in
connection with the Government's fiscal operations, particularly the redemption prior to and
on September 15 of about $535,000,000 of
1238
FEDERAL RESERVE BULLETIN.
tax certificates. The net result of these
operations is seen in a reduction since August
24 by $46,600,000 in the Federal Reserve
Bank holdings of paper secured by Government obligations and by $61,500,000 in their
holdings of other discounted paper. Of
the total reduction of Government paper,
$24,700,000 represents the reduction in paper
secured by United States bonds, $19,500,000—
the reduction in paper secured by Victory
notes, and only $2,200,000—the reduction in
paper secured by Treasury certificates.
Holdings of acceptances purchased in open
market show a slight decline from $35,200,000
to $33,500,000. "Pittman" certificates on
deposit with the Treasury to secure Federal
Reserve Bank note circulation show a gradual
decline of $17,000,000, retirement of this
amount by the Treasury being accompanied
by a reduction of $9,200,000 in the reserve
banks' net liabilities on Federal Reserve Bank
OCTOBER, 1921.
notes in circulation. Changes in other certificate holdings reflect largely the extent of openmarket transactions in certificates of the New
York Federal Reserve Bank under temporary
repurchase agreements. Holdings . of other
United States securities, including the newly
issued Treasury notes, show an increase of
about $4,000,000. Total earning assets of the
Federal Reserve Banks, in consequence of the
above changes, show a decline for the review
period of about $117,000,000 and on September
21 stood at $1,652,300,000, or nearly 52 per
cent below the total shown at the close of the
past year.
The table below presents a summary of the
weekly changes in the principal assets and
liabilities of the Federal Reserve Banks for
the four weeks ending September 21, while
the chart on page 1236 gives a graphic picture of these changes since the beginning of
last year.
MOVEMENT OF PRINCIPAL ASSETS AND LIABILITIES OF THE 12 FEDERAL RESERVE BANKS COMBINED.
[In millions of dollars.]
Aug. 24.
Aug. 31.
Sept. 7.
Sept. 14.
Sept. 21.
Reserves:
Total
Gold.
2,766.2
2,619.1
2,787.9
2,641.1
2,803.3
2,656.4
2,834.5
2,684.5
2,863.1
2,711.1
Bills discounted:
Total
Secured by U. S. Government obligations.
All other
Bills bought in open market
Certificates of indebtedness
Total earning assets
1,495.4
541.8
953.6
35.2
204.7
1,769.3
1,491.9
545.2
946.7
35.3
196.2
1,757.5
1,508.5
539.3
969.2
44.9
208.0
1,795.2
1,428.2
503.7
924.5
40.7
207.7
1,710.3
1,387.2
495.1
892.1
33.5
193.4
1,652.3
31.5
46.8
1,618.9
1,690.8
2,481.5
109.9
66.8
60.7
1,632.1
1,718.1
2,517.6
107.8
66.2
1,631.0
1,705.8
2,491.7
103.1
67.5
49T2"
74.2
1,588.2
1,691.6
2,474.7
103.6
68.7
Government deposits
Members' reserve deposits
Total deposits
F . R. notes in circulation
F. R. Bank notes in circulation—net liability.
Reserve percentage
Kediscounting operations of the Federal
Reserve Banks of Richmond, Atlanta, Minneapolis, and Dallas show a slight reduction
in volume, the amount of bills held under
discount for these banks by the Boston, New
York, and Cleveland Federal Reserve Banks
at the close of the period, $66,500,000, being
about $1,100,000 less than four weeks before.
As against increases in rediscounts of $4,800,000
by the Richmond bank and of $8,500,000 by
the Atlanta bank, the Federal Reserve Bank
of Minneapolis shows a reduction of $10,900,000
and the Dallas bank a reduction of $3,500,000
for the four weeks under review.
Total deposits at the Federal Reserve Banks
fluctuated within the moderate limits of
$1,690,800,000 on August 31 and $1,718,100,000
on the following Wednesday. Federal Reserve
note circulation, after the usual increase before
the Labor Day holiday period, resumed its
1,617.0
1,673.6
2,485.9
112.8
66.5
downward course, and on September 21 stood
at $2,474,700,000, a new low record for the
year and about $930,000,000 below the peak
attained on December 23 of last year. For the
same period, i. e.; since December 23, 1920, the
Federal Reserve Banks show also an aggregate
reduction of $115,200,000 in their net liabilities
on Federal Reserve Bank notes in circulation.
The Federal Reserve Banks report a further
gain for the review period of $92,000,000 in
gold and of $4,900,000 in other reserve cash.
Since the beginning of the year the reserve
banks' gold holdings have increased by $648,300,000 and their aggregate cash reserves by
$609,400,000. It is this gain in reserves which
is largely responsible for the further rise of
the reserve ratio from 66.5 to 68.7 per cent during the four weeks under review. The rise
was continuous, except for the week ending
September 7, when a temporary increase in
OCTOBBB, 1921.
1239
FEDERAL RESERVE BULLETIN.
note and deposit liabilities caused a decline
in the ratio from 66.8 to 66.2 per cent.
In the following table are shown comparative
figures of average daily cash reserves, de-
posits, Federal Reserve note circulation, and
reserve percentages for the months of August
and September of the present and the two
preceding years:
CASH RESERVES, TOTAL DEPOSITS, FEDERAL RESERVE NOTE CIRCULATION, AND RESERVE PERCENTAGES FOR SEPTEMBER AND AUGUST, 1921.
[Daily averages. Amounts in thousands of dollars.]
Total cash reserves.
Total deposits.
Federal Reserve notes
in circulation.
Reserve percentages.
September. August.
September. August.
Federal Reserve Bank.
September. August.
Boston
New York
,
September. August,
Philadelphia.....
Cleveland
,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco...
259,856
1,013,246
217,453
256,512
68,706
71,492
467,369
93,712
40,224
81,562
34,815
231,449
269,837
923,104
207,039
261,381
70,820
72,332
461,279
94,569
38,591
88,544
33,551
219,341
112,448
668,121
103,411
138,478
54,872
44,803
247,246
62,292
44,705
73,894
45,059
120,833
Total, 1921
2,836,396
2,740,388
1920
1919
2,139,280
2,157,932
2,127,305
2,146,003
110,867
651,457
101,915
138,671
55,124
43,980
246,837
62,828
43,377
74,704
42,761
118,616
240,205
641,957
212,648
232,296
107,510
129,233
430,771
100,163
56,998
74,383
39,962
227,784
242,919
640,906
217,506
238,449
109,979
132,457
433,557
99,219
55,668
75,233
40,233
226,222
1,716,162
1,691,137
2,493,910
2,512,348
67.4
65.2
1,912,070
1,930,969
1,885,062
1,911,769
3,275,535
2,627,295
3,165,222
2,544,357
143.3
150.4
143.7
150.1
i Calculated on the basis of net deposits and Federal Reserve notes in circulation.
73.7
77.3
68.8
69.2
42.3
41.1
68.9
57.7
39.6
55.0
40.9
66.4
76.3
71.4
64.8
69.3
42.9
41.0
67.8
58.4
39. C
59.1
40.4
63.6
1240
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
CONDITION OF FEDERAL RESERVE BANKS.
.RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921.
RESOURCES.
[In thousands of dollars.]
Total.
Gold and gold certificates:
413,900
Aug.31
430,585
Sept-7
446,642
Sept.14
428,036
Sept. 21
Gold
settlement
fund—F.R. Board:
428,075
Aug. 31
438,590
Sept.7
441,109
Sept.14
411,210
Sept. 21
Gold with F, R.
Agents:
,694,523
Aug. 31
Sept.7
• .,677,195
,694,301
Sept.14
,777,529
Sept. 21
Gold
redemption
fund:
104,563
Aug. 31
110,008
Sept.7
102,449
Sept.14
94,353
Sept. 21
Total gold reserves:
1,641,061
Aug. 31
2,656,378
Sept.7
Sept.14
• 2,684,501
2,711,128
Sept. 21
Legal-tender notes,
silver, etc.:
146,859
Aug. 31
146,876
Sept.7
150,001
Sept.14
151,968
Sept. 21
Total reserves:
Aug.31
' 2,787,920
2,803,254
Sept.7
2,834,502
Sept.14
2,863,096
Sept. 21
Bills discounted:
Secured by U. S.
Government obligations—
Aug. 31
• 545,176
539,333
Sept.7
503,677
Sept.14
495,156
Sept. 21
All other—
946,759
Aug. 31
Sept.7
• 969,154
924,485
Sept.14
892,081
Sept.21
Bills bought in open
market:
35,320
Aug. 31
44,920
Sept.7
40,712
Sept.14
33,514
Sept. 21
,.-.
U.S.bonds and notes:
34,008
Aug.31
33,813
Sept.7
33,729
Sept.14
38,081
Sept. 21
U.S. certificates of indebtedness:
One-year certificates (Pittman
Act)—
193,875
Aug.31
190,875
Sept.7
187,875
Sept.14
184,875
Sept. 21
All other—
2,350
Aug.31
17,084
Sept.7
19,803
Sept.14
8,571
Sept. 21
Total earning assets:
1,757,488
Aug.31
1,795,179
Sept.7
1,710,281
Sept.14
1,652,278
Sept. 21
Boston.
New
York.
Philadelphia.
Cleveland.
RichSt.
mond, Atlanta. Chicago. Louis.
Minne- Kansas
Dallas.
apolis.
City.
San
Francisco.
8,265
8,074
8,107
8,211
323,567
341,497
357,006
334,216
2,064
2,152
1,964
2,050
6,614
6,663
6,725
12,180
2,704
2,741
2,769
2,804
4,929
4,955
4,914
4,951
21,850
21,947
22,069
22,212
3,029
3,043
3,092
3,132
8,720
8,756
8,781
8,785
2,238
2,205
2,231
2,261
9,407
7,915
8,180
20,513
20,637
20,804
18,765
23,285
44,432
41,377
45,267
77,240
46,052
38,709
92,876
46,911
51,952
60,724
48,038
60,138
57,923
55,603
46,586
15,942
18,895
18,128
17,088
4,163
5,643
5,311
7,228
100,661
106,308
114,687
62,266
16,787
16,610
16,239
13,528
8,825
9,270
8,709
42,017
43,764
39,987
29,350
2,732
5,443
7,243
6,362
29,374
32,298
34,392
32,731
179,541
165,271
171,423
175,572
502,018
501,848
501,598
576,336
152,758
150,960
146,233
146,508
181,946
184,444
183,005
177,131
34,568
32,650
29,762
37,055
47,218 320,476
46,783 314,536
47,153 326,798
47,948 325,177
57,147
57,123
56,910
57,078
18,588
18,664
18,807
18,302
35,088
36,599
36,332
35,398
8,529
9,229
8,534
7,590
156,646
159,088
167,746
173,434
24,185
28,412
22,204
17,933
20,000
15,000
15,000
15,000
5,110
8,542
6,767
5,994
7,911
5,359
6,328
6,623
6,796
8,475
11,059
5,394
11,184
16,675
13,898
15,387
3,483
3,438
3,633
3,460
2,456
2,365
2,212
2,706
4,495
2,965
3,217
4,038
4,759
3,768
4,457
5,386
9,057
9,388
8,973
7,577
235,276
246,189
243,111
246,983
922,825
904,397
912,313
,018,428
206,843
213,606
215,688
202,590
256,609
254,389
251,661
242,520
60,010
62,761
61,718
62,341
61,437 454,171
63,002 459,466
62,079 477,452
64,982 425,042
80,446
80,214
79,874
77,198
38,589
39,055
38,509
39,683
85,533
81,767
71,047
25,427
26,355
28,414
27,807
215,590
221,411
231,915
232,507
15,638
16,308
15,602
15,822
58,916
58,090
60,075
60,140
3,447
6,574
6,521*
6,158
8,048
6,922
7,408
6,725
4,599
4,173
4,570
5,059
19,023
18,546
19,098
19,728
13,360
13,322
13,192
15,236
584
587
637
4,753
4,059
4,651
4,373
6,494
6,454
6,451
6,285
3,943
4,085
3,822
3,729
250,914
262,497
258,713
262,805
981,741
962,487
972,388
,078,568
210,290
220,180
222,209
208,748
264,657
261,311
259,069
249,245
64,609
66,934
66,288
67,400
473,194
70,761 478,012
70,103 496,550
73,058 444,770
93,806
93,536
93,066
92,434
39,178
39,639
39,096
40,320
88,591
89,592
86,418
75,420
31,921
32,809
34,865
34,092
219,533
225,496
235,737
236,236
38,568
31,771
32,960
32,021
151,568
151,038
127,374
112,266
78,150
76,937
74,745
74,318
43,638
46,457
45,095
40,026
30,453
24,706
26,090
24,990
35,078
35,248
36,068
36,867
70,403
67,653
63,392
69,047
27,325
28,722
28,198
26,867
6,257
8,996
9,450
9,072
18,485
18,386
18,207
22,754
6,951
9,214
7,540
8,832
38,300
40,205
34,558
38,096
61,755
65,853
62,591
54,594
204,402
219,389
190,142
121,964
28,379
26,246
29,001
28,806
81,110
87,913
88,659
99,308
73,010
72,196
72,987
75,408
64,395
64,838
65,702
63,908
139,865
145,581
132,074
157,162
45,773
45,106
45,285
48,424
63,928
62,380
60,538
62,112
46,946
45,649
47,712
51,282
46,762
45,313
44,955
50,292
90,434
88,690
84,839
78^ 821
4,174
3,246
3,445
3,454
15,302
25,910
23,334
12,679
3,127
2,288
1,440
2,372
1,521
2,250
1,880
1,513
2,346
2,271
2,449
2,905
878
1,446
2,166
3,503
3,054
2,656
1,559
3,387
437
374
304
592
1,018
918
460
384
70
42
20
20
3,393
3,519
3,655
2,705
556
556
553
1,943
1,005
1,005
1,005
1,005
1,449
1,449
1,447
3,397
844
844
844
844
1,233
1,233
1,233
1,233
10,359
10,359
10,359
10,408
4,490
4,490
4,490
5,309
1,153
1,153
1,153
1,153
118
124
119
121
9,425
3,729
3,529
3,454
2,804
204
203
204
439
17,436
17,436
17,436
16,936
52,276
50,776
49,276
49,276
23,280
23,280
23,280
23,280
19,799
19,799
19,799
18,299
5,260
5,260
5,260
5,260
8,564
8,564
8,564
8,564
31,612
31,612
30,112
29,112
11,568
11,068
11,068
11,068
5,480
4,980
4,980
4,980
7,320
7,320
7,320
7,320
2,400
1,900
1,900
1,900
21
315
232
514
15,550
19,050
3,645
140
117
117
248
1
3
21
37
1
1
1
1
1,873
822
90
1,879
274
176
135
134
146
60
122,510
119,177
117,217
109,462
424,553
463,668
410,181
300,835
119,275
120,456
122,860
123,251
251,297
252,814
231,717
265,896
86,530
86,599
86,143
88,238
75,787
76,569
75,233
76,345
134,525 146,913
130,317 157,266
130,030 156,298
132,421 160,027
112,302
105,666
108,019
109,796
5,127
5,621
4,701
4,855
8,049
7,759
8,024
8,076
1,425
82,637
81,141
82,567
92,590
196
11
11
432
59,912 141,247
59,998 141,508
57,869 132,147
64,044 129,373
1241
FEDERAL, RESERVE BULLETIN.
OCTOBER, 1921.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921—
Continued.
RESOURCES—Continued.
[In thousands of dollars.]
Total.
Bank premises:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Five per cent red e m p t i o n fund
against F.R.Bank
notes:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Uncollected items:
Aug. 31
Sept.7
Sept.14
Sept. 21
All other resources:
Aug. 31
Sept.7
Sept.14
Sept. 21
Total resources:
Aug. 31
Sept. 7
Sept.14
Sept. 21
Boston.
New
York.
Phila- Clevedelphia. land.
Richmond.
St.
Atlanta. Chicago. Louis.
Minne- Kansas
apolis. City.
Dallas.
San
Francisco.
27,509
27,700
28,877
29,111
4,034
4,059
4,110
4,219
5,518
5,531
5,592
5,594
529
533
533
533
2,675
2,733
2,871
2,925
2,351
2,352
2,501
2,501
844
854
854
861
4,430
4,478
4,986
4,987
627
627
627
627
658
659
659
690
3,219
3,219
3,455
3,455
2,003
2,017
2,051
2,052
621
9,539
9,221
8,845
8,917
772
772
772
772
1,684
1,684
1,413
1,513
700
700
700
700
1,240
1,239
1,239
1,239
263
263
263
263
467
467
2,001
1,799
1,693
1,665
523
523
523
523
293
178
178
178
916
916
916
916
186
186
186
186
494
494
494
494
455,897
494,667
641,279
591,811
40,127
42,492
57,452
55,835
96,033
99,183
133,250
123,004
45,530
42,611
57,144
50,254
40,707
43,204
67,316
51,279
36,970
37,764
49,008
52,777
15,857
17,964
21,971
21,153
59,720
67,601
81,200
74,367
24,873
30,003
34,312
33,656
12,305
15,304
16,891
15,584
18,842
42,703
49,397
42,899
29,818
27,951
32,155
45,358
41,185
17,470
18,101
16,801
16,448
402
430
443
463
2,647
3,076
3,199
2,811
411
442
442
460
961
1,004
1,067
1,066
277
591
305
910
773
846
1,964
1,959
1,869
.1,825
768
826
841
845
543
553
597
615
453
469
470
505
2,354
2,033
1,794
1,904
5,806
5,808
5,001
4,718
418,759
429,427
438,707
433,556
1,512,176
1,535,629
1,526,023
1,512,325
391,985
394,783
411,058
393,116
457,153
466,757
487,860
465,781
216,772
213,570
226,384
233,127
206,813
211,412
217,029
219,637
792,606
806,663
818,015
793,510
207,127
212,114
215,512
216,323
128,764
132,902
132,654
133,732
212,798
218,040
223,223
215,785
115,218
120,726
124,745
132,096
395,652
406,099
419,375
412,673
5,055,823
5,148,122
5,240,585
5 161 661
638
667
LIABILITIES.
Capital paid in:
103,050
Aug. 31
103,073
Sept.7
102,982
Sept.14
103,017
Sept. 21
Surplus:
213,824
Aug. 31
213,824
Sept. 7
213,824
Sept.14
213,824
Sept.21
Reserved for Government franchise tax:
48,061
Aug. 31
49,099
Sept.7
50,101
Sept.14
50,777
Sept. 21
Deposits:
Government—
46,809
Aug. 31
60,701
Sept.7
49,219
Sept.14
74,183
Sept. 21
Member bank—
reserve account—
1,618,901
Aug. 3 1 . . .
1,632,135
Sept.7
1,631,038
Sept.14
1,588,209
Sept. 21
All other—
25,044
Aug. 31....
25,232
Sept.7
25,574
Sept.14
29,218
Sept. 21
Total deposits:
1,690,754
Aug. 31
1,718,068
Sept.7
1,705,831
Sept.14
1,691,610
Sept. 21
F. R. notes in actual
circulation:
2,481,466
Aug. 31
12,517,563
Sept.7
2,491,651
Sept.14
2,474,676
Sept. 21
F. R. Bank notes in
circulation—net liability:
109,864
Aug. 31
107,759
Sept.7
103,078
Sept.14
103,590
Sept. 21
7,935
7,935
7,935
7,935
27,067
27,069
27,069
27,069
8,682
11,151
11,131
11,103
11,110
5,389
5,389
5,401
5,402
4,126
4,132
4.138
4; 140
14,316
14,324
14,326
14,335
4,566
4,567
4,567
4,567
3,550
3,553
3,553
3,553
4,537
4,537
4,534
4,534
4,317
4,317
4,314
4,314
7,414
7,436
7,359
7,375
16,342
16,342
16,342
16,342
59,318
59,318
59,318
59,318
17,564
17,564
17,564
17,564
22,263
22,263
22,263
22,263
11,026
11,026
11,026
11,026
8,708
8,708
8,708
8,708
30,536
30,536
30,536
30,536
9,114
9,114
9,114
9,114
7,303
7,303
7,303
7,303
9,330
9,330
9,330
9,330
7,113
7,113
7,113
7,113
15,207
15,207
15,207
15,207
2,457
2,536
2,563
2,634
18,964
19,280
19,590
19,709
3,148
3,210
3,248
3,314
2,147
2,264
2,421
2,462
2,155
2,239
2,290
2,373
3,212
3,305
3,368
3,463
8,951
9,061
9,155
9,196
1,143
1,198
1,259
1,280
1,733
1,780
1,808
1,871
1,684
1,722
1,735
1,766
2,853
8,503
2,066
3,457
21,837
16,467
8,597
21,244
2,186
6,445
5,163
670
1,475
4,060
5,009
6,673
3,943
1,119
2,160
4,071
1,649
1,963
2,953
6,603
2,120
10,179
5,566
9,523
2,018
2,373
2,046
2,880
1,973
3,148
1,920
5,454
2,633
2,957'
8,015
2,937
106,300
105,679
110,639
107,282
634,905
643,657
623,958
614,023
97,476
96,348
99,364
98,309
133,835
135,607
136,678
132,768
49,591
49,963
50,270
49,232
40,859
42,511
43,696
40,738
239,525
233,878
245,655
230,745
59,038
60,951
58,550
58,100
41,478
41,239
39,902
38,643
70,319
70,496
67,069
67,642
786
1,034
813
968
11,889
12,841
12,478
12,312
1,006
1,017
1,309
1,653
715
733
1,279
915
453
424
524
675
479
381
357
2,862
2,195
2,335
2,972
724
766
859
892
481
541
549
584
597
524
641
724
499
516
504
445
4,666
4,162
3,902
6,721
109,939
115,216
113,518
111,707
668,631
672,965
645,033
647,579
100,668
103,810
105,836
100,632
136,025
140,400
142,966
140,356
53,987
51,506
52,954
53,978
42,874
44,953
47,030
47,698
244,507
246,252
253,556
243,240
61,780
64,090
61,455
61,872
43,932
44,928
42,371
44,681
73,549
73,977
75,725
71,303
40,515
41,348
42,983
46,264
114,347
118,623
122,404
122,300
241,411
244,906
241,999
238,331
632,320
647,337
639,847
635,042
213,765
213,818
213,815
210,130
234,852
235,728
233,545
228,882
107,006
107,740
106,129
107,969
127,468
128,962
127,393
128,934
431,431 98,359
438,117 98,936
429,888 99,347
427,286 100,215
55,618
57,140
57,172
57,431
74,408
75,063
74,427
74,379
39,106 225,722
39,409 230,407
39,415 228,674
39,814 226,263
6,628
7,116
7,966
7,894
29,070
27,541
23,030
25,396
7,094
7,287
7,476
7,620
12,577
12,485
12,368
10,746
4,440
4,660
4 727
4,728
7,047
7,091
7,344
7,737
5,896
5,537
5,691
6,022
4,148
3,531
3,528
3,533
12,830
12,868
12,845
12,781
12,597
12,420
10,899
2,467
2,504
2,664
2,709
1,442
1,738
2,021
6,843
2,680
1,749
3,703
38,574 107,001
39,094 112,712
40,458 114,799
38,976 111, 751
3,499
3,137
3,104
3,095
4,038
4,086
4,100
4,150
1242
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
RESOURCES AND LIABILITIES OF EACH FEDERAL RESERVE BANK ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921—
Continued.
LIABILITIES-Continued.
[In thousands of dollars.]
Total.
Deferred availability
items:
Aug. 31
Sept.7
Sept. 14
Sept. 21
All other liabilities:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Total liabilities:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Boston.
Phila- Clevedelphia. land.
New
York.
Richmond.
St.
Atlanta. Chicago. Louis.
Minne- Kansas
apolis. City. • Dallas.
san
Francisco.
389,362
418,553
553,235
503,174
32,836
34,141
47, 111
47,420
72,680
77,661
107,906
93,878
40,165
39,456
53,501
44,160
36,835
41,152
61,941
48,639
31,613
29,840
42,659
46,408
12,484
13,334
18,085
17,959
47,059
52,600
66,267
55,270
25,188
27,575
32,961
32,083
11,268
13,454
15,733
14,143
35,306
39,377
43,448
40,441
19,309
24,008
26,383
29,857
24,619
25,955
37,240
32,916
19,442
20,183
19,883
20,993
1,211
1,235
1,273
1,293
4,126
4,458
4,230
4,334
955
935
1,013
1,303
1,334
1,253
1,323
1,156
1,170
1,198
1,243
927
963
3,209
3,353
3,388
3,759
1,081
1,097
1,118
1,170
1,212
1,213
1,186
1,217
1,154
1,166
1,179
1,251
1,359
1,394
1,433
1,639
1,838
1,881
1,727
1,753
5,055,823
5,148,122
5,240,585
5,161,661
418,759
429,427
438,707
433,556
1,512,176
1,535,629
1,526,023
1,512,325
391,985
394,783
411,058
393,116
457,153
466,757
487, 860
465,781
216,772
213,570
226,384
233,127
206,813
211,412
217,029
219,637
792,606
806,663
818,015
793,510
207,127
212,114
215,512
216,323
128, 764
132,902
132,654
133,732
212,798
218,040
223,223
215,785
115,218
120,726
124,745
132,096
395,652
406,099
419,375
412,673
66.8
66.2
67.5
68.7
71.4
72.9
72.8
75.1
75.5
72.9
75.7
84.1
66.9
69.3
69.5
67.2
71.4
40.1
42.0
41.7
41.6
40.8
40.7
40.2
41.4
70.0
68.8
67.5
72.7
66.3
58.6
57.4
57.9
57.0
39.4
38.8
39.3
39.5
59.9
60.1
57.6
51.8
40.1 :
40.6 I
42.3 J
39.6 !
64.6
64.6
67.1
67.8
35,906
34,307
34,319
34,335
2,649
2,490
2; 490
2,490
12,931
12,713
12,725
12,741
2,904
2,729
2,729
2,729
2,976
2,797
2,797
2,797
1,778
1,672
1,672
1,672
1,307
1,228
1,228
1,228
4,319
4,060
4,060
4,080
1,706
1,603
1,603
1,603
980
921
921
921
1,742
1,638
1,638
1,638
944
887
887
1,670
1,569
1,569
1,569
MEMORANDA.
Ratio of total reserves
to deposit and F. R.
note liabilities combined—per cent:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Contingent liability
on bills purchased
for .foreign correspondents:
Aug. 31
Sept.7
Sept. 14
Sept. 21
REDISCOUNTS OF BILLS BETWEEN FEDERAL RESERVE BANKS.
[In thousands of dollars.]
Paper rediscounted with other F . R. Banks and
outstanding at close of business—
Paper discounted for other F . R. Banks and held
at close of business—
FEDERAL R E S E R V E BANK.
Aug. 31.
Atlanta
Dallas
Total
Sept. 7.
Sept. 14.
Sept. 21.
20,000
8,926
14,768
24,610
24,861
9,669
11,014
24,059
24,970
12,673
9,060
24,295
24,728
16,430
7,052
18,266
68,304
69,603
70,998
66,476
Aug. 31.
Sept. 7.
Sept. 14.
Sept. 21.
26,716
34,768
6,820
24 103
35,875
9,625
27 058
34 030
9,910
21 093
3l'780
13,603
68,304
69,603
70,998
66,476
MATURITY DISTRIBUTION OF BILLS AND CERTIFICATES OF INDEBTEDNESS HELD BY THE 12 FEDERAL RESERVE
BANKS COMBINED.
[In thousands of dollars.]
Total.
Bills discounted:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Bills bought in open market:
Aug. 31
Sept.7
Sept. 14
Sept.21
XJ. S. certificates of indebtedness:
Aug. 31
Sept.7
Sept. 14
Sept. 21
L, 491,935
L, 508,487
L, 428,162
Within 15
days.
16 to 30
days.
31 to 60
days.
61 to 90
days.
Over 90
days.
L,387,237
859,576
878,094
832,181
781,238
155,111
172,739
168,007
166,165
279,433
275,915
246,313
244,633
164,105
153,695
148,124
162,421
33,710
28,044
33,537
32,780
35,320
44,920
40,712
33,514
19,876
27,294
23,864
12,509
5,619
6,243
8,702
10,980
6,987
7,804
5,704
6,070
2,838
3,579
2,342
3,775
100
180
196,225
207,959
207,678
193,446
10,354
20,430
21,082
16,984
15,506
23,689
16,686
11,563
30,107
16,063
17,280
15,700
9,800
15,799
17,013
11,689
130,458
131,978
135,617
137,510
1243
FEDERAL, RESERVE BULLETIN.
OCTOBER, 1921.
FEDERAL RESERVE NOTES.
FEDERAL RESERVE AGENTS' ACCOUNTS ON WEDNESDAYS, AUG. 31 TO SEPT. 21, 1921.
[In thousands of dollars.]
Net amount of F. R.
notes received from
Comptroller of the
Currency:
Aug. 31
Sept.7
Sept. 14
Sept. 21
F. R. notes on hand:
Aug. 31
Sept.7
Sept. 14
Sept. 21
F. R. notes outstanding:
Aug. 31
Sept.7
Sept. 14
Sept. 21
Collateral security for
F. R. notes outstand-
Gold and gold certificates—
Aug. 31
Sept.7
Sept. 14
Sept. 21
Gold redemption
fund—
Aug. 31
Sept.7
Sept.14
Sept. 21
Gold
settlement
fund — F. R.
Board—
Aug. 31
Sept.7
Sept.14
Sept. 21
Eligible paper—
A m o u n t required—
Aug. 31
Sept.7
Sept. 14
Sept.21
Excess amount
held—
Aug. 31
Sept.7
Sept. 14
Sept. 21
San
RichSt.
Minne- Kansas
mond. Atlanta. Chicago. Louis. apolis. City. Dallas. Francisco.
Total.
Boston.
New
York.
Philadelphia.
Cleveland.
3,701,036
3,688,605
356,028
355,658
359,610
352, 879
1,089,275
1,090,850
1,094,755
1,090,752
263,046
259, 248
259, 520
254, 796
300,543
299,041
98,210
96,910
101, 950
99,100
315, 500
311,500
299,500
305,900
20,620
20,620
20,220
20,220
, 837,667
257, 818
258,748
257,660
253,779
773,775
779,350
795,255
784, 852
242,426
238,628
239,300
234, 576
400,992
402,738
402, 737
447,337
5,600
5,600
5,600
5,600
346,924
346,924
346,924
396, 924
113,709
113,842
113,195
117, 912
13, 941
19,671
15, 823
19,972
19,094
18,924
18,674
18, 412
16,369
12,571
14,844
18,119
13,171
15,669
14,230
13, 756
3,568
1,650
1,762
2,055
2,818
3,053
3,748
1,179,822
1,160,615
1,178,369
1,212,280
160,000
136,000
140,000
136,000
150,000 i 136,000
150,000 I 161,000
136,389
138,389
131,389
128,389
145,000
145,000
145,000
145,000
31,000
31,000
28,000
35,000
1,155,198
1,175,116
1,168,369
1,060,138
78,277 I 271,757
93,477 I 277,502
86,237
293,657
78,207
208,516
87,668
93,067
74,197
71,597
71.397
72.398
2,074
51,789
1,704
1,607
63,556
68,187
3, 706, 770
3,667,177
851, 315
844,100
829,510
2,849,721
2,852,311
324,693
332,071
259, 546
316,587
26,220
7,393
12, 759
11,862
73,151
92,446
21,853
14,299
87,155
66,749
67,703
69,009
68,064
315,250
312,491
322,830
318, 518
5,040
3,840
4,640
3,840
24,422
24,932
26,132
24,412
31,160
28,260
41,260
82,604
82,515
83,049
60,003 83,315
284,090
284, 231
281, 570
281, 558
214,438
212,402
215,174
213,569
648,411
648,870
641, 853
630,232
150,331 70,919
149,508 69,995
150,155 I 71,978
150,662 | 72,153
87,644
86,355
294,209
138,402
136,484
135,595
134,188
44,400
43,000
44, 200
44,680
24,089
21,649
21,849
19,969
79,799
78,638
81,039
77,919
165,900
167,900
163,980
157, 700
29,160 I 13,015
28,160 I 10,885
27,660 11,670
26,660 12,150
256,143
256,041
254,402
249,529
114,313 134,639
114,835 133,764
113,746 134,135
114,219 135,650
482,511
480,970
477,873
472, 532
23,775
23,775
23,775
18,375
3,400
3,400
3,400
3,400
121,171
121,348
122,495
124,002
57,904
59,110
42,327
42,771
42,877
43,652
6,110
6,110
6,110
6,110
13,052
13,052
13,052
13,052
2,131
3,877
3,876
3,876
15,832
14,892
13,154
15,533
3,906
4,082
3,869
3,537
1,336
1,412
1,555
1,050
2,728
3,239
3,972
2,038
3,164
2,118
3,424
2,480
17,782
14,931
18,835
17,212
41,000
38,700
40,700
40,800
304,644
299,644
313,644
309,644
47,131
46,931
46,931
47,431
4,200
4,200
4,200
4,200
32,360
33, 360
32,360
33,360
3,234
3,234
1,234
1,234
138,864
144,157
148, 911
156,222
79,745
82,185
83,984
77,164
87,421
86,981
86,982
87,702
162,035
166,434
151,075
147,355
64,024
64,225
65,585
66,924
39,316
40,446
41,501
41,701
47,516
45.916
46,717
47.917
33,798
33,542
34,343
36,062
127,444
125,143
113,824
108,124
24,263
14,077
14,590
23,893
12,920 51,210
14,541 I 48,762
16,949 45, 502
16,566 82,196
9,479
30,437
^30,020
27,753
18,918
19,002
19,545
26,394
19,891
20,878
18,172
22,916
4,341
6,809
9,019
11,286
8,144
8,942
1244
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
CONDITION OF MEMBER BANKS IN LEADING CITIES.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24 TO
SEPT. 14, 1921.
ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT.
[Amounts in thousands of dollars.]
New
Boston. York.
Number of reporting banks:
Aug. 24
Aug. 31
Sept. 7
Sept. 14
Loans and discounts, including bills rediscounted
with F. R. Bank:
Secured by U. S. Government obligations—
Aug. 24
Aug. 31
Sept.7
Sept. 14
Secured by stocks and
bonds (other than U.
S. Government obligations)—
Aug. 24
Aug. 31
Sept.7
Sept. 14
All other—
Aug. 24
Aug. 31
Sept.7
Sept. 14
Total loans and discounts,
including
bills rediscounted with F. R. Bank:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. bonds:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. Victory notes:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. Treasury notes:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. certificates of indebtedness:
Aug. 24
„
Aug. 31
Sept.7..
Sept. 14
Other bonds, stocks, and
securities:
Aug. 24
Aug. 31
Sept.7
Sept.14
Total loans and discounts
and investments, ialluding bill s re lis counted with
F. R. Bank:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Reserve with F. R. Bank:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Cash in vault:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Phila- Cleve- Rich- AtSan
Minne- Kansas
St.
delChicago. Louis.
apolis. City. Dallas. Franphia. land. mond. lanta.
cisco.
43
812
812
810
810
49
49
49
49
112
112
112
112
629,425
609,197
604,710
598,682
38,337
34,035
33,461
32,898
252,569
242,553
240,396
235,060
68,477
69,773
70,467
68,360
58,243
58,440
56,274
56,004
24,791
24,957
24,501
24,247
16,758
17,683
18,063
18,233
78,990
78,002
78,099
79,766
2,926,6641
2,922,720)
2,920,893
2,966,321
186, 2811 ,217,735
185, 6891 ,215,577
186, 5271 ,198,691
185, 6701 ,258,541
178,730
182,394
188,299
184,233
336,995
336,644
335,937
336.394
109,263
106,572
109,882
109,577
52,004
51,916
51,382
51Q02
444,432
440,646
449,892
440,893
7,939,635
7,9.9,327
7,956,277
7,997,773
594,714 2,683,233
592,889
889 2,701,886
2,
592,544 2,695,705
763 1,691,207
2,
597,—
360,421
351,718
352,386
355,786
661,146
655,029
657,603
662,893
327,499
327,365
326,361
330,263
819, 332 4,,153,537 607, 6281 ,056,384
812, 613 4t, 160,016 603, 8851 , 050,113
L134,792 611, 1521 ,049,814
812, 532 4!
816, 3314!,184,808 608, 3791 ,055,291
461,553
458,894
460,744
464,087
11,495,724
11,491,244
11,481,880
11,562,776
37,25:
36,776
37,453
37,338
312,533
312,537
314,085
314,679
46,633
46,560
47,025
46,295
166,084
165,219
161,897
162,475
5,822
5,990
5,600
5,551
78,428
79,714
78,192
77,946
5,681
5,641
5,334
5,355
16,676
16,659
16,400
16,685
5,047
4,846
4,859
4,542
52,019
50,861
'48,333
53,369
1,755
1,9:57
1,697
1,677
29,969
30,010
29,804
29,359
6,436
6,509
1,152
1,156
5,028
464
664
665
819
171,383
157,738
140,624
141,029
5,15'
3,640
3,706
4,731
77,598 16,289
74,466 13,356
64,350 10,299
64,015 10,379
10,798
9,689
9,256
10,000
4,689
2,955
1,959
2,401
2,028,706
2,024,094
2,023,369
2,013,237
138,789
139,720
140,531
140,156
276,521
275,904
274,663
273,801
54,014
53,548
53,251
47,953
838,7201.,466,105
830,,0601-L, 458,894
832,,9541L, 455,836
829,,8241L, 462,404
584,
580,399
581,864
580,657
14,782,032
14,759,210
14,726,585
14,800,748
721,281
712,783
715,243
711,901
1,008,107 5,,373,346
1,000,676 5,,369,526
1,001,519 5,,336,466
1,005,784 5.,382,708
52
52
52
52
66
66
66
19,102
18,328
17,692
17,936
6,854
7,446
7,448
6,626
34,104
26,702
26,938
27,231
31,671 69,129
32,416 68,583
30,724 66,114
30,785
37,177
38,151
38,427
37,683
144,424
144,674
146,523
145,635
304,L0641,165,909
306,>,8261,164,444
308,0321!,162,311
316,5151,177,158
302,272 236,025 369,387 202,077
301,943
368,289 205,089
301,376 236,686 370,930 206,604
304,157 238,623 369,231 207,093
732,888
747,751
745,739
747,084
372, 8261,689,331
376, 4251,683,092
377, 4771,690,302
386, 3501, 697,817
439,198
439,565
438,253
441,416
280,793
281,628
280,399
283,092
457,618
455,200
454,736
453,853
246,108
250,686
252,479
251,402
911,416
919,127
919,200
919,950
70,056 26,950
70,558 26,890
69,931 26,868
70,645 26,849
15,854
15,833
15,397
15,754
32,720
33,755
32,919
31,565
34,254
33,732
33,978
34,290
97,436
97,695
97,593
97,613
761
762
697
3,139
2,881
2,483
2,761
1^172
1,172
1,272
17,290
16,475
16,058
16,700
82
868,116
870,054
870,482
867,862
154,504
153,441
152,708
152,907
112
112
112
112
104,818 59,090 30,520
105,377 59,492 30,849
104,547 60,386 30,300
101,599 60,855 30,380
18,103 13,097
18,164 13,114
18,382 12,989
18,637 13,684
118,823
119,458
118,495
118,622
27,959
26,952
26,936
26,910
1,910
1,942
1,925
1""'
5,944
5,792
4,683
6,239
153
102
254
254
254
244
362
161
160
1,131
729
497
597
3,094
2,883
2,887
2,594
2,467
2,447
2,364
1,882
21,390
20,651
19,281
20,634
1,646
944
894
1,631
1,021
981
1,079
541
6,597
6,293
5,480
5,577
3,622
2,967
2,718
2,724
20,109
19,349
19,238
16,514
36,797
36,290
37,128
36,946
341,784
341,183
339,778
20,211 44,642
67,15' 20,248 44,663
67,571 20,310 44,151
67,181 20,183 46,009
9,459
9,368
9,372
10,108
167,719
169,188
167,258
166,314
2,175
2,186
2,176
2,162
444, 785 21,152,763
448, 197 2;
1,148,829
449,445 25,152,316
457,720 2;
5,162,023
1,210,452
1,217,579
1,236,233
1,228,693
72,776
71,700
71,675
75,476
563,961
576,255
586,046
564,815
58,063
58,815
59,118
61,034
93,204
89,614
92,292
94,753
30,342
29,420
29,429
30,443
25,657
25,279
27,048
27,953
301,486
289,714
307,600
310,018
20,629
20,105
20,448
21,301
101,029
95,403
101,835
103,022
17,081
16,534
16,145
17,275
28,962
26,592
29,088
29,305
13,905
13,392
14,451
14,455
9,391
9,413
9,478
9,657
536,543
536,600
535,605
539,085
318,902
319,705
318,201
320,511
177,538 38,345 17,805
178,535 38,022 18,907
174,580 40,015 19,228
184,558 37,928 17,052
53,583
51,708
55,544
53,948
6,544
6,697
7,441
7,388
6,360
6,118
6,640'
6,2571
545,078
542,953
539,929
539,954
295,1,7621[,217,064
298,1,6641',224,717
3001,2161.,222,234
300,3931L, 219,685
40,643 20,263
41,334 18,572
41,909 18,579
37,804 19,786
71,855
71,126
76,314
77,091
12,354
12,080
13,075
12,998
22,399
22,297
23,648
24,199
9,249
9,375
9,807
10,213
OCTOBER, 1921.
1245
FEDERAL RESERVE BULLETIN.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24, TO
SEPT. 14, 1921—Continued.
ALL REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT—Continued.
[Amounts in thousands of dollars.]
Total.
Net demand deposits:
Aug. 24
Aug. 31
Sept. 7
Sept. 14
Time deposits: •
Aug. 24
Aug. 31
Sept.7
Sept. 14
Government deposits:
Aug. 24
Aug. 31
Sept. 7
Sept. 14
Bills payable with F. R.
Bank:
Secured by U. S. Government obligations—
Aug. 24
Aug. 31
Sept.7
Sept. 14
All other—
Aug. 24
Aug. 31
Sept.7
Sept.14
Bills rediscounted with F.R.
Bank:
Secured by U. S. Government obligations—
Aug.24
Aug. 31
Sept.7
Sept. 14
A J] other—
Aug.24
Aug. 31
Sept.7
Sept. 14
Boston.
New
York.
Pbila-
San
Francisco.
• del-
phia.
Cleveland.
Minne- Kansas
RichSt.
Atmond. lanta. Chicago. Louis. apolis. City. Dallas.
605,882
608,790
614,852
615,212
802,998
806,715
810,175
817,811
292,708
295,715
296,279
294,756
206, 7491 ,286,186 282,884
209, 4661L, 299,128 283,343
214 1561[,292,772 283,698
213, 40211,344,220 285,694
168,522
172,777
174,671
177,083
376,951
373,680
378,076
372,247
180,726
181,128
185,268
186,439
571,657
571,418
574,301
589,511
893,704
967,547
982,367
130,875
705, 547 4,1,412,894
700, 129 4:L 465,258
700, 562 4:L 457,557
1,516,503
717, 997 4;
904,760
924,701
914,007
916,826
179,021
179,103
180,740
181,775
427,338
435,485
435,508
439,751
41,355
41,207
41,622
42,526
427,635
427,738
424,340
424,290
121,473
122,242
122,166
121,828
142,177
142,024
141,157
140,139
647,381
652,397
653,082
652,882
144,613
144,720
145,379
145,916
68,690
68,526
68,389
67,840
102,660
102,525
99,913
99,654
60,360
60,779
60,029
59,776
542,057
547,955
541,682
540,449
197,059
167,104
139,747
130,499
15,082
12,881
10,633
10,633
86,163
73,667
60,995
60,994
20,728
17,717
14,355
14,350
16,065
13,546
11,464
10,995
6,114
5,192
4,299
4,302
2,1
2,697
2,255
2,152
20,468
16,149
14,881
6,989
5,500
4,664
3,859
3,850
5,838
5,025
4,150
4,160
4,805
4,106
3,407
3,407
4,079
3,564
2,914
2,831
9,235
7,896
6,535
5,836
261,397|
265,667
264,815
232,493
7,932
12,135
9,797
9,757
94,448 26,898
92,731 28,103
91,267 27,746
70,682 26,332
18,450
18,781
20,104
18,724
24,514
24,151
23,458
24,886
12,277
12,740
12,601
13,160
27,767
26,380
22,341
12,165
12,341
13,907
13,739
3,399
3,269
3,330
3,031
7,185
8,356
8,441
8,123
4,376
4,636
4,781
4,431
19,767
20,657
23,003
17,287
27
27
27
1,922
150
250
478
248
298
141
141
141
139
593
671
680
2,623
25
25
264
264
75,609
70,409
68,363
64,023
11,188
6,722
5,832
6,003
15,869
14,944
14,705
12,781
19,626
18,477
18,042
17,445
7,693
7,599
7,801
6,532
2,923
3,150
2,803
2,628
3,685
4,859
5,125
628,999
619,205
645,675
609,187
32,255
35,836
39,576
35,450
183,516
182,124
199,192
170,650
24,361
22,748
21,092
23,773
72,814
64,553
69,476
69,017
44,489
43,989
44,172
45,616
35,152
37,510
34,923
42,535
V"
2,075
2,240
2,434
2,413
965
1,126
1,044
932
1,754
1,700
1,622
1,691
353
357
352
303
2,835
2,772
2,917
2,745
93,881 28,619
87,019 30,301
93,125 29,893
79,433 30,163
33,763
32,685
31,230
29,207
26,003
26,268
25,384
27,334
15,579
16,599
17,915
17,945
38,567
39,573
39,697
38,064
6,643
6,463
5,111
MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[Amounts in thousands of dollars.]
Number of reporting banks:
Aug.24
Aug. 31
Sept.7
Sept.14
Loans and discounts, including bills rediscounted with
F.~R. Bank:
Secured by U. S. Government obligations—
Aug.24
Aug.31
Sept.7
Sept.14
Secured by stocks and
bonds (other than U.
S. Government obligations)—
Aug.24
Aug.31
Sept.7
Sept.14
All other—
Aug.24
Aug.31
Sept.7
Sept.14
Total loans and discounts,
including bills rediscounted with F.R. Bank:
Aug.24
Aug.31
Sept.7
Sept.14
U.S. bonds:
Aug.24
Aug.31
Sept.7
Sept.14
280
280
280
26
453,869
430, 790
429,480
422,491
32,027
27,908
27,381
26,448
15
15
15
15
230,096 64,961
219,463
217,367 67,093
211,922 64,957
17,672
16,592
17,385
16,843
5,854
5,808
5,640
1,985
2,112
2,057
2,189
55,979 10,389
55,239 10,098
55,527 10,027
57,188 10,205
2,038,346
2,044,412
2,037,133
2,079,879
140,552 1,056,142
1
159,811
139,949 1,057,730
I
163,816
1 3 9 " "1,040,302 169,606
139; 572 1,096,777 165,560
133,624
133,619
133,173
133,636
15,870
15,882
15,748
15,667
8,843
8,834
8,609
8,681
322,449 87,351
321,417 88,126
329,072
318,583 88,239
5,137, 542
5,159,791
5,158,581
5,183,476
456, 8132,384,545 325,707
455,699 °, 406, 756 317,432
456,544 , 399,313 318,214
462,674 , 394,234 321,582
274, 390
273,772
274,421
275,663
65,389 51,826
65,487 52,821
65,232 52,644
65,346 53,147
742,106
740,177
741,520
756,880
187,322
187,446
185,101
185,871
7,629,757
7,634,993
7,625,194
7,685,846
629,392 3,670,783
623,556 3,683,949
623,698 3,656,982
628,694 3,702,933
425,686 87,158 62,6541,120,534
423,983 87,223 63,767 1,116,833
1
424,979
63,310 1,126,119
1
426,142 86,653 64017i1,132,651
285,062
285,670
283,366
284,315
442,313
443,561
445,256
444,984
10,722
10,520
10,946
10,691
265,996
265,918
267,675
268,985
550,479i
547,6471
554,913
552,099
34,757
8,578
34,689
8,569
34,650 9,331
33,926,
9,407
7,246
7,245
7,243
4,404
4,404
4,404
4,403
17,118
17,557
17,179
17,895
12,205
12,157
12,110
12,136
1,584
1,545
1,515
1,516
18,732
11,435
11,571
11,696
9,626
9,544
9,717
9,756
63,568
64,178
64,905
65,465
110,344
110,554
] 11,485
112,906
131,548 51,623
130,978 52,125
133,597 52, 347
131,982 54,106
355,929
366,544
368,163
369,085
133,132
134,016
133,244
134,599
163,815 62,833
162,978 63,214
163,577 63,579
162,119 65,378
438,229
442,157
444,639
446,246
8,470
8,478
8,479
8,456
57,364
57,815
57,794
57,767
8,074 6,471
8,152
5,993
8,056 5,693
8,031 5,856
14,714
15, 310
13, 703
13,662
25,796
26,007
24,287
24,281
4,564 10,896
4,545 11,663
4, 508 10,935
4,476
1246
OCTOBER, 1921.
FEDERAL, RESERVE BULLETIN.
PRINCIPAL RESOURCES AND LIABILITIES OF MEMBER BANKS IN LEADING CITIES ON WEDNESDAYS, FROM AUG. 24, TO
SEPT. 14, 1921—Continued.
MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[Amounts in thousands of dollars.]
Total.
U. S. Victory notes:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. Treasury notes:
Aug. 24
Aug. 31
Sept.7
Sept. 14
U. S. certificates of indebtedness:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Other bonds, stocks, and
securities:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Total loans and discounts
and investments (including bills discounted with
F. R. Bank):
Aug. 24
Aug. 31
Sept.7
Sept. 14
Reserve with F. R. Bank:
Aug. 24
»
Aug. 31
Sept.7
Sept. 14
Cash in vault:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Net demand deposits:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Time deposits:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Government deposits:
Aug. 24
Aug. 31
Sept.7
Sept. 14
Bills payable with F. R.
Bank:
Secured by U. S. Government obligations—
Aug. 24
Aug. 31
Sept.7
Sept.14
All other—
Aug. 24
Aug. 31
Sept.7
Sept. 14
Bills rediscounted with F. R.
Bank:
Secured by U. S. Government obligations—
Aug. 24
Aug. 31
Sept.7
Sept. 14...
All other—
Aug. 24
Aug. 31
Sept.7
Sept. 14
Boston.
New
York.
Philadelphia.
Cleveland.
RichAtmond. lanta. Chicago.
Minne- Kansas
apolis. City. Dallas.
St.
San
Francisco.
99,153
98,257
96,053
96,736
552
558
567
515
70,532
71,842
70,393
70,151
3,137
3,126
2,858
2,873
1,771
1,770
1 754
1,754
181
106
106
106
11,928
10,971
11,155
11,445
376
394
367
440
218
218
218
218
1,126
853
579
808
38,325
37,147
35,761
35,662
327
512
319
319
27,236 7,749
27,372 6,941
27,166 6,200
26,723 6,271
242
232
232
232
15
2
8
7
1,234
1,219
1,207
1,454
75
25
17
10
10
10
227
26
26
55
234
2
2
574
574
574
563
116,376
107,822
90,435
89.331
1,638
1,219
1,230
1,271
71,900
69,365
59,416
58,310
14,790
11,859
8,814
8,893
778
843
775
769
200
151
151
165
761
762
762
457
9,440
9,200
7 652
7,769
1,
764
676
1,176
155
130
136
30
2,004
1,686
591
495
1,313
1,089
1,095
11,296
10,530
9,143
8,901
1,106,811
1,101,805
1,104,592
1,094,013
63,705
64,100
64,679
64,819
545,493 124,076
536,570 122,763
541,023 122,448
122,649
71,51'
71,467
70,529
69,849
7,045
6,990
6,93^
4,01'
3,438
3,437
3,487
3,479
129,378
132,424
132,937
131,129
43,277
43,690
43,969
43,208
8,680
8,9ir
11,782
11,799
11,761
11,833
1,567
1,558
1,484
1 493
96,911
98,327
96,429
95,136
9,432,735
9,423,585
9,397,291
9,446,572
706,336
700,465
701,439
706,309
734,988
[, 651,940
727,025
[, 655,016
729,883
[, 622,655
726,711
[, 664,970
508,572 101,838 71,263 ,289,632 342,425
506,864 101,718 72,375 .,288,204 342,700
507,600 101,229 71,968 1,296,249 340,505
508,153 98,191 72,361 L, 302,343 341,311
146,701
147,599
147,031
147,856
189,850
189,005
187,469
184,909
75,520
74,828
74,664
76,455
613,670
617,786
616,599
617,003
8,179 15,584
10,097 15,061
9,629 14,482
6,728 13,160
5,416
4,738
4,316
5,094
33,975
31,365
35,818
35,962
1,403
1 312
1,559
1,542
8,292
8,064
8,867
9,138
886,623
898,028
909,158
58,070 520,918 52,891
57,718 535,010 53,298
57,34! 543,811 54,385
60,519 518,668 54,481
172,683
164,624
174,844
175,84
11.534
11,153
11,715
1183
6,933,06C
7,008,81(
7,0Q9,17<
7,108,41!
27,151
25,874
27,193
29,019
4,725
4,862
5,061
5,087
4,136
4,245
4,694
5,.—
1,
1,756
1,705
1,732
83,337
88,142
89,881
13,485
13,318
12,869
13,641
7,344
6,722
7,298
7,886
1,095
902
952
548,20C 3,947,586
542,03£ 4,007,827
544,87 3,994,447
558,08* 4,043,910
524,856
527,722
534,550
534,370
203,43G
211,78£
212,122
212,81
43,586
42,762
43,778
42,721
127,568 28,010
127,844 27,916
123,135 29,286
134,908 27,581
30,899
30,007
32,201
30,275
9,296
8,020
8,390
3,268
3,32!
3,84'
3,75:
2,197
1,896
2,525
2,141
34,706 887,97! 195,272
33,726 901,76: 196,849
34,704 900,51C 195,146
35,708 929,663 197,966
79,001
81,904
82,209
81,679
23,333 21,524 311,50'
23,184 21,475 311,567
23,254 21,565 310,53S
23,110 21,424 312,285
83,85£
84,008
84,582r
84,61
27,382
27,291
27,134
27,079
15,030
14,983
11,949
11,75!
6,896
7,364
7,314
7,345
264,738
264,613
265,316
265,545
2,836
3,164
3,055
143,31 49,244 275,886
142,569 48,566 271,304
145,658 47,877 273,304
141,251 49,273 280.970
1,346,596
1,354,71£
1,353,34!
1,359,015
73,064
73,105
74,768
75,701
259,561
266,783
269,100
272,772
153,25<
129,67
108,473
102,888
12,006
10,250
8,468
8,468
83,043
71,000
58,785
58,785
19,280
16,479
13,353
13,348
2,362
1,992
1,61
1,61
601
513
427
427
601
491
410
410
15,436
11,88
11,324
5,81(
4,33
3,664
3,032
3,022
1,851
1,583
1,309
1,309
3,881
3,316
2,752
2,752
3,543
3,090
2 527
2,464
6,325
5,406
4,475
4,476
142,367
147,285
145,485
114,719
5,140
9,526
6,638
6,73'
73,373
72,008
70,858
51,491
24,056
25,599
24,941
23,360
2,700
798
5,559
6,482
6,632
6,317
605
580
580
580
8,71(
8,59]
7,758
3,63c
6,782
7 18C
8,49(
816S
742
702
763
454
2,154
2,324
2,302
3,175
200
12,340
13,495
15,698
10,803
28,654 231,055
28,434 231,911
28,858 228,961
29,745 227,638
1,895
1,801
,7
54,860
48,552
46,460
42,710
14,360
13,494
13,221
11,281
19,38£
18,388
17,953
17,358
2,r
6,38i
5,49
5,36
402,804
394,632
420,458
378,727
30,378
33,404
37,186
33,037
158,819
156,208
172,471
143,228
23,200
21,904
20,215
22,93C
55,53
49,920
53,993
64,884
152
303
298
2,12:
2,53!
2,01;
9,905
9,814
9,796
9,528
2,47S
4 72C
4,053
4836
4,59(
3,72
3,24'
527
64
603
39S
492
43C
421
535
454
501
44,096
37,95
43,53
31,326
13,235
14,097
14,543
13,462
22,878
22,234
21,034
20,014
14,628
13,996
13,071
14,024
1,674
1,709
1,705
1,608
3,355
4,070
6,539
24,301
26,313
25,574
24,917
1247
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
BANK DEBITS,
Yolume of business, as measured by debits Angeles the figures indicate a lag of only about
to individual accounts reported to the Federal 4 per cent.
Keserve Board for banks in 155 leading clearing
house centers, shows a decided increase for the
[DEE3ITS 1rO INDIVIDUAL ACC<DUNTi
two weeks ending September 21 as compared
AT BANKS IN
with the immediately preceding two-week
RE:PO RTING, CLEARING HOUSE C ENTE RS
period. From a total not much above $6,000,DEB TS FOR 1921
DEBITS FOR 1920
000,000 for each of the two weeks ending
MILLIONS
OF
August 31 and September 7, debits increased MILLIONS
DOLLARS
14
to over $7,000,000,000 for the week ending DOLLARS
t 1OOOO
September 14 and to $8,304,000,000 for the 1OOOO >v
«\
>\
\ A,
9OOO
u
week ending September 21, during which a 9 O O O
V
1
.A
8OOO
large amount of income tax checks was drawn 8 O O O
til
Si
7OOO
and cleared.
7OOO
V V
As compared with the corresponding period
6OOO
in 1920, the volume of debits for the four weeks 6 O O O
5OOO
1 \
Ai\
under review represented a decline of about 5 O O O
\\
J \/ AOOO
v v ./s
18 per cent. The lag behind last year's A O O O
3OOO
figures varied materially for the dinerent 3 O O O
2OOO
centers—for New York City it was only 12 2 O O O
i AND 2 BANKS IN NEW YORK CIT Y
1OOO
per cent, while for many of the industrial 1OOO
3 AND 4= BANKS IN ALL REPORTIN3 CENTER s
centers it was considerably above the average. — O —
MILLIONS
Thus the figures for Chicago were 22 per cent MILLIONS
OF
OF
DOLLARS
below the corresponding figures a year ago;
V *
DOLLARS
*~\ A- •VS.
> v \'
AOOO
for Detroit they were 25 per cent below last
* \
v\
AOOO
I
year's level; for Boston 29 per cent; and for 3OOO
3OOO
Cleveland 38 per cent. Of the two leading 2 O O O
2OOO
1OOO
centers on the Pacific coast, San Francisco
BAN KS C UTS1DE OF NE W YC)RKC ;ITY
1OOO
I
I
reports debits 23 per cent lower than for the
MONTH JAN. FEB. MAR. APR. MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. MONTH
corresponding period in 1920, while for Los
OF
k
* A
ft
v
V
\
V
I A V
\J
A
—
"
O —•
V
* - \
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS.
SUMMARY BY FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.]
Federal Reserve district.
Number
of
centers
included.
Boston..
New York....
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total...
155
1921
1920
Week ending—
Week e n d i n g Sept. 8.
Sept. 15.
413,272
370,685
4,388,704 4,290,456
430,147
397,013
500,256
434,100
197,696
213,530
228,932
198,078
1,023,856 ' 1,054,901
209,706
200,832
160,155
163,085
305,540
251,088
146,935
134,365
482,763
529,546
357,860
3,387,538
346,096
419,310
190,160
212,358
964,484
199,109
149,148
285,547
138,621
491,086
467,293
4,290,125
409,929
559,043
217,230
237,232
1,243,970
237,622
200,135
334,054
151,264
592,401
479,629
4,568,196
427,668
559,883
223,590
243,405
1,291,981
233,604
221,568
342,721
166,235
8,420,759
7,141,317
8,940,298
9,342,179
Aug. 31.
Sept. 7.
Sept. 14.
Sept. 21.
283,447
3,258,885
302,715
324,727
166,067
151,091
814,003
147,628
123,868
212,144
97,797
403,806
283,694
3,094,476
298,656
298, 767
179,496
159,821
766,530
145,991
135,460
223,354
110,255
400,357
319,097
3,687,786
345,825
368,780
189.367
192,830
887,003
174,955
155.368
250,702
116,419
448,191
6,286,178
6,096,857
7,136,323
Sept. 1.
Sept. 22,
NOTE.—Figures for the following centers, while shown in the body of the statement, are not included in the summary, complete data for the
centers not being available for each week under review: Harrisburg, Pa.; Johnstown, Pa.; Reading, Pa.; Cincinnati, Ohio; Greenville, S. C; Wilmington, N. C; Springfield, 111.; East St. Louis and National Stock Yards, 111.; Quincy, 111.; Springfield, Mo.; Atchison, Kans.; and Galveston, Tex.
1248
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS—Continued.
DATA FOR EACH REPORTING CENTER.
[In thousands of dollars.]
Aug. 31.
District No. 1—Boston:
Bangor
Boston
Do
FaU River
Hartford....
Holyoke
Lowell
Manchester
New Bedford
New Haven
Portland
Providence
Springfield
Waterbury
Worcester
District No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
District No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton.. =
Wilkes-Barre
Williamsport
Wilmington
York
District No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
OilCity
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
District No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Greenville, S. C
Huntington
Norfolk
Raleigh
Richmond
Washington
Wilmington
District No. 6—Atlanta:
Atlanta
Augusta
J
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile...
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
2,819
U76,910
232,112
16,569
2,345
3,656
3,377
4,191
13,391
24:229
10,580
2,792
11,200
24,004
3,042
47,169
3,147,199
4,195
23,101
10,175
2,764
3,127
5,940
4,332
3,453
252,081
5,108
12,379
9,357
7,935
3,277
5,231
3,111
1921
1920
Week ending—
Week ending-
Sept. 7.
3,037
U77,253
231,667
4,739
15,856
2,289
3,400
3,514
4,894 .
14,216 I
6,610
22,990
10,158
4,073
10,665
17,277
3,088
• 44,775
2,989,780
4,762
24,066
10,728
.
2,185
3,509
5,810
4,076
3,410
249,832
5,228
11,273
9,452
7,106
3,474
5,511
2,904
Sept. 14.
3,258
U87,201
256,743
6,388
22,048
2,754
4,603
4,244
6,571
Sept. 21.
3,315
1226,839
303,431
7,511
4,193
304,491
14,768
7,881
27,859
12,180
5,110
14,232
21,578
3,034
5,154
5,147
7,235
17,292
7,198
32,830
12,421
6,231
14,900
5,835
19,643
3,851
5,044
4,704
6,906
19,318
9,277
32,232
14,072
7,135
17,844
5,269
20,339
3,662
4,392
4,286
5,768
17,408
8,708
27,516
12,962
6,797
11,358
8,100
28,909
3,752
5,744
4,979
9,113
19,204
9,974
36,945
16,629
9,201
19,455
8,490
24,889
4,105
5,988
4,720
8,246
19,981
8,610
39,499
17,766
8,574
20,077
15,418
3,751
53,134
3,572,652
5,081
26,292
11,458
23,545
3,807
58,233
4,253,046
5,783
30,361
13,929
23,113
4,030
68,326
4,141,422
5,297
30,768
17,500
19,154
3,625
57,063
3,260,507
4,645
29,006
13,538
21,710
4,558
70,035
4,135,322
5,911
34,316
18,273
22,007
4,704
73,908
4,407,495
6,468
33,784
19,830
3,151
5,122
2,820
4,310
3,800
6,372
3,100
6,053
4,660
371,568
4,945
289,142
5,890
337,552
6,367
354,138
16,964
13,298
9,284
3,895
6,036
3,825
2,075
4,461
6,742
4,562
4,890
334,655
6,484
14,206
12,388
8,770
4,630
6,931
4,007
11,960
11,569
8,215
3,765
6,241
3,896
13,173
10,237
7,638
3,740
6,542
3,549
15,206
14,134
9,929
5,078
7,286
4,682
14,603
16,528
9,095
5,067
8,206
4,511
3,304
6,070
4,697
4,491
281,363
12,785
67,719
125,034
33,444
13,283
6,106
5,776
3,386
1,875
183,931
3,586
26,358
8,053
10,483
86,255
5,984
4,510
3,523
2,248
4,048
94,105
6,090
4,941
3,614
2,695
3,566
10,723
3,700
22,759
29,998
4,016
94,145
5,397
5,993
4,690
3,384
4,508
109,361
4,850
6,965
5,168
4,379
5,044
13,204
4,050
26,791
38,097
5,123
4,017
1,152
Sept. 22.
3,901
291,387
11,773
59,019
115,741
27,468
13,621
6,375
4,421
3,473
2,297
131,848
3,863
30,074
5,800
12,026
19,762
5,413
12,175
6,710
8,468
5,242
4,388
5,530
3,032
21,842
50,825
1,284
9,659
4,441
1,050
Sept. 15.
2,988
226,407
15,183
46,455
92,804
25,933
11,438
5,457
3,490
3,112
1,649
100,802
3,320
20,786
4,951
9,842
19,876
4,192
8,808
5,906
8,517
5,065
3,229
4,648
3,000
22,223
50,373
1,146
Sept. 8.
3,938
263,473
10,751
48,490
101,204
24,299
14,568
4,946
3,744
2,815
1,583
120,543
3,959
21,922
6,330
8,063
11,199
3,600
19,069
27,879
4,120
Sept. 1.
11,739
3,650
24,836
34,409
5,190
23,822
6,596
15,324
8,015
9,308
6,176
3,640
5,834
3,960
28,184
62,665
1,421
11,475
4,690
1,720
26,200
7,764
14,895
8,815
8,001
6,535
4,587
6,522
4,332
27,419
61,777
1,517
13,215
4,752
1,747
20,700
21,119
22,349
23,430
171,101
27,573
12,841
7,485
7,387
4,122
2,750
185,920
3,665
30,981
10,677
15,054
145,598
23,969
11,257
7,062
4,641
4,120
3,363
150,221
3,111
24,448
7,107
13,294
189,513
32,671
11,451
8,829
7,256
4,723
4,303
212,087
3,754
33,905
9,988
18,214
190,249
34,033
11,362
9,719
6,472
4,837
3,215
218,176
3,259
30,830
9,958
14,343
98,314
5,875
6,878
4,717
97,399
4,900
6,010
4,514
106,107
5,525
8,466
5,327
112,731
6,350
8,132
6,200
5,747
17,995
3,400
24,996
29,774
4,726
17,049
3,973
22,430
29,159
6,189
19,211
4,600
25,502
36,303
6,328
18,103
4,100
26,259
35,387
26,452
6,153
16,707
10,219
12,665
7,310
5,009
8,186
4,949
22,927
83,887
2,487
15,015
5,675
1,291
23,439
6,579
15,095
10,551
12,425
6,689
5,043
14,216
3,903
22,537
70,885
2,448
11,736
5,200
1,612
29,466
7,750
17,856
12,323
12,841
7,509
6,222
8,377
4,801
26,894
77,655
2,617
14,612
6,568
1,741
32,199
8,975
18,427
11,844
14,236
8,690
5,953
8,212
4,603
27,679
74,227
2,688
18,126
5,949
1,597
OCTOBER, 1921.
1249
FEDERAL RESERVE BULLETIN.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS—Continued.
DATA FOR EACH REPORTING CENTER-Continued.
[In thousands of dollars.]
Aug. 31.
District No. 7—Chicago:
2,370
Bay City
2,115
Bloomington
8,329
Cedar Rapids
536,840
Chicago
5,110
Davenport
2,910
Decatur
13,064
Des Moines
100,756
Detroit
2,137
Dubuque
4,711
Flint
5,508
Fort Wayne
16,059
Grand Rapids
34,598
Indianapolis
3,103
Jackson
3,308
Kalamazoo
4,595
Lansing
44,062
Milw
wauk ee
1,276
Moline
6,632
Peoria
3,538
Rockfor d
5,879
Sioux City
4,881
South Bend
4,872
Springfield, IU
2,222
Waterloo
District No. 8—St. Louis:
7,021
East St. Louis and National Stock Yards.
Evansville
8,424
Little Rock
118,152
Louisville
,
23,512
Do
19,299
Memphis..:
1,669
Quincy
197,417
St. Louis
,
107,656
Do
2,177
Springfield, Mo
District No. 9—Minneapolis:
1,234
Aberdeen
1,232
Billings
18,077
Duluth
2,459
Fareo
1,071
Grand Forks
1,635
Great Falls
2,358
Helena
67,014
Minneapolis
22,830
St. Paul
3,355
Sioux Falls
1,829
Superior
774
Winona
District No. 10—Kansas City:
Atchison
1,533
Bartlesville
2,514
Cheyenne
2,266
Colorado Springs
29,627
Denver
1,571
Joplin
2,891
Kansas City, Kans
67,805
Kansas City, Mo
2,765
Muskogee
17,071
Oklahoma City
38,540
Omaha
4,273
Pueblo
14,341
St. Joseph
2,717
Topeka
14,840
Tulsa
9,390
Wichita
District No. 11—Dallas:
1,329
Albuquerque
2,293
Austin
4,424
Beaumont
25,542
Dallas
5,919
El Paso
20,250
Fort Worth
21,389
Galveston
21,640
Houston
6,403
San Antonio
4,544
Shreveport
1,341
Texarkana, Tex
1,302
Tucson
2,810
Waco
1
Debits of banks which submitted reports in 1920.
1921
1920
Week ending—
Week ending-
Sept. 7.
Sept. 14.
2,902
2,134
8,069
494,768
5,948
2,911
[13,326
95,631
2,368
5,718
5,632
19,337
24,881
2,990
3,269
4,141
43,981
1,559
7,093
3,720
7,209
6,355
4,882
2,588
Sept. 21.
2,391
2,410
10,978
571,735
6,890
3,485
17,385
108,811
2,657
5,810
6,758
19,677
31,781
3,334
3,756
4,712
53,980
1,832
7,839
4,348
7,764
6,153
5,422
2,517
2,676
2,309
8,657
649,923
6,756
3,181
14,763
153,517
3,240
6,077
6,683
20,470
34,705
3,809
5,333
5,603
64,811
2,034
8,410
4,482
7,500
6,109
5,996
2,808
7,710
5,365
11,958
18,142
23,423
20,231
1,817
95,023
105, 599
2,650
7,910
4,766
11,342
21,332
27,574
22,176
2,208
115,339
129, 847
2,818
29,651
24,863
2,230
135,214
149,207
2,905
1,438
1,629
25,047
2,574
1,258
1,798
2,331
69,424
24,388
3,450
1,208
915
1,400
1,548
29,490
2,781
1,523
1,866
2,285
82,120
25,920
3,376
2,158
901
1,379
1,718
28,310
3,046
1,466
1,932
2,887
81,900
33,189
3,935
2,202
1,121
1,222
1,389
2,007
2,678
29,927
1,771
3,262
76,619
2,582
20,890
38,130
3,183
15,449
2,717
11,118
11,632
1,475
1,830
1,716
2,842
1,157
1,954
1,716
32,070
2,251
3,685
82,427
3,323
24,305
43,715
4,322
16,537
4,514
15,213
11,952
2,898
34,883
2,025
3,709
85,041
3,504
19,754
43,100
3,836
16,965
3,797
17,208
10,698
1,715
3,130
2,945 j
30,279
5,671
23,180
18,946
25,539
6,161
4,979
1,181
1,525
3,950
1,605
3,191
2,907
32,309
7,291
24,220
25,743
24,692
6,445
6,860
1,537
1,447
3,915
1,1
3,554
3,382
39,559
6,595
23,920
25,243
32,048
6,928
8,249
2,217
1,400
4,814
8,064
4,362
Sept. 1.
Sept. 8.
Sept. 15.
2,953
3,019
10,112
685,164
7,281
4,259
18,865
104,058
3,127
10,481
6,999
20,466
59,451
5,236
5,478
6,042
60,274
2,828
9,922
5,962
14,223
5,131'
3,155
2,663
11,088
596,988
8,019
4,083
16,307
146,831
3,238
6,442
21,080
32,752
4,121
5,016
6,102
47,080
2,961
9,729
5,605
13,345
5,120
3,526
3,383
11,679
807,552
8,540
4,748
20,384
150,347
3,971
10,278
8,990
23,223
41,437
5,366
6,470
5,954
80,145
2,537
11,040
6,660
18,089
4,993
3,570
3,770
4,658
4,760
7,720
27,197
4,799
11,345
23,554
5,410
9,605
30,468
30,286
Sept. 22.
4,448
2,916
11,370
798,136
9,431
4,672
20,979
209,023
4,234
10,925
8,659
22,326
41,725
6,914
5,870
6,846
77,205
4,564
10,455
6,433
16,122
4,900
5,342
9,645
30, 731
30,171
33,240
29,789
'129*240
"158*899
*158*097
34,447
4,993
1,841
974
2,352
1,941
21,325
3,498
1,503
2,508
2,246
78,234
28,611
4,883
958
1,089
2,171
2,301
37,249
4,068
2,136
2,299
2,702
104,232
33,504
5,955
2,102
1,416
2,183
2,295
37, 409
4,319
1,912
3,143
2,975
114,038
43,142
6,598
2,015
1,539
3,404
2,001
3,204
43,676
2,940
3,634
89,495
3,965
29,269
53,598
3,405
15,935
3,827
31,244
15,943
2,803
1,822
3,208
44,272
3,489
3,154
85,060
4,067
21,610
54,474
4,241
15,931
3,660
22,636
15,120
3,671
2,149
4,250
47,326
4,359
4,386
106,317
4,857
33,421
63,903
3,913
19, 981
5,183
13,346
10, 992
3,115
1,987
3,597
51,647
3,943
4,196
102,949
5,766
28,136
64, 596
3,794
18,625
3,813
30,119
16, 438
1,402
3,057
4,522
36,714
8,304
26,002
1,615
2,621
4,404
36,982
8,449
26,981
1,767
4,448
4,208
40,707
8,801
26,548
2,086
4,924
5,451
48,326
8,849
27,422
46,566
7,644
5,708
1,882
1,526
3,608
35,831
7,990
6,529
1,511
1,463
4,245
38,815
10,240 I
7,210
2,225
1,469
4,&r~
42,954
9,540
7,351
1,833
1,612
5,887
* 139*743"
1,849
2,031
20,482
3,499
1,508
2,341
2,305
1250
FEDERAL RESERVE BULLETIN.
OCTOBER,
1921.
DEBITS TO INDIVIDUAL ACCOUNTS AT CLEARING HOUSE BANKS—Continued.
DATA FOR EACH REPORTING CENTER—Continued.
[In thousands of dollars.]
1920
Week ending-
Week ending—
Sept. 7.
Aug. 31.
District No. 12—San Francisco:
Berkeley
Boise
,
Fresno
Long Beach
,
Los Angeles
,
0 akland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jo«e
Seattle
Spokane
Stockton
Tacoma
Yakima
1921
2,606
1,886
8,253
4,845
87,555
16,427
2,686
3,810
33,726
2,368
6,699
11,833
6,212
159,058
4,559
28,585
9,311
4,124
7,202
2,061
3,545
2,310
8,900
5,159
79,723
19,081
2,863
3,802
34,911
1,958
13,120
14,135
6,332
145,685
4,543
29,715
10,150
4,282
7,794
2,349
Sept. 14,
2,168
3,003
12,038
5,443
93,590
17,083
1,644
4,832
40,235
2,716
13,107
13,108
8,262
161,412
4,851
34,031
12,866
5,253
9,475
3,074
Sept. 21.
3,213
2,749
13,100
5,606
108,349
17,301
3,431
5,242
44,372
2,642
15,317
15,233
7,837
205,881
4,978
43,090
12,449
5,151
10,458
3,147
Sept. 1.
!
!
I
I
I
!
!
i
2,079
2,813
8,392
4,271
88,782
20,943
4,033
3,865
41,726
2,908
14,801
15,823
7,075
189,743
5,564
42,214
11,499
4,916
8,718
2,598
Sept. 8.
Sept. 15.
3,247
2,741
10,326
4,384
84,515
21,617
4,164
4,548
37,355
2,463
14,142
15,172
8,561
209,652
5,316
34,511
12,030
4,359
9,187
2,796
3,296
3,077
15,783
6,434
101,524
20,979
5,000
5,584
48,300
3,523
19,922
19,288
8,876
237,254
7,049
49,953
14,080
6,551
12,414
3,514
Sept. 22.
3,257
3,463
12,841
5,713
108,188
22,373
4,836
5,075
53,764
3,027
17;160
18,732
7,623
236,783
6,827
38,730
14,280
6,041
11,869
3,117
GOLD SETTLEMENT FUND.
INTERBANK TRANSACTIONS FROM AUG. 26 TO SEPT. 22, 1921, INCLUSIVE.
[In thousands of dollars.]
Daily settlements.
Transfers.
Federal Reserve Bank.
Debits.
Boston
New York
Philadelphia
Cleveland.
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total 4 weeks e n d i n g Sept. 22,1921
Aug. 25,1921
Sept. 23,1920
Aug. 26, 1920
|
I
Credits.
45,500
103,500
20,000
39,588
96,222
10,173
60,000
5,000
27,409
15,000
32,949
7,000
32,283
276,631
462,341
314,263
897,585
549,852
462,341
314,263
897,585
549,852
6,839
90,000
14,588
13,500
* 28," 500"
Debits.
Credits.
335,825
1,361,167
447,180
348,012
391,488
141,649
634,566
320,070
102,360
279,862
162,814
168,130
356,333
1,226,893
468,793
368,962
397,762
137,822
673,253
319,433
120,983
281,459
168,395
173,035
4,693,123
4,624,289
6,600,694
6,332,881
4,693,123
4,624,289
6,600,694
6,332,881
Changes in ownership
of gold through trans- Balance in
bank's
fers and settlements.
fund at
end of
period.
Decrease. Increase.
11,799
21,313
5,637
13,403
7,291
38,857
1,613
52
588
4,714
"2*095'
54,247
54,247
43,809
95,692
50,022
47,911
17,885
7,920
58,143
12,425
11,917
29,080
7,542
33,171
415,517
429,075
340,325
369,021
1251
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
FEDERAL RESERVE CLEARING SYSTEM.
OPERATIONS FROM AUGUST 16 TO SEPTEMBER 15, 1921.
[All figures shown in thousands.]
Items drawn on banks located
in own district.
Federal Reserve Bank
or branch.
In F. R. Bank
or branch city.
Outside F. R.
Bank or
branch city.
Total items
handled exclusive of duplication.
Items drawn
on Treasurer
of U.S.
Items forward- Items forwarded to parent
ed to other F.
bank or to
R. Banks and
their branches. branch in same
district.
Total items
handled, including duplications.
NumNumNumNumNumNumNumber. Amount. ber. Amount ber. Amount. ber. Amount. ber. Amount. ber. Amount. ber. Amount.
Boston
New York
Buffalo
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Atlanta
Birmingham
Jacksonville
Nashville
New Orleans
Chicago
Detroit
St. Louis
Little Rock
Louisville
Memphis
Minneapolis
Helena
Kansas City
Denver
Oklahoma City.
Omaha
Dallas
El Paso
Houston
San Francisco
Los Angeles
Portland
Salt Lake City..
Seattle
Spokane
$480,900 3,094
1,370 1,403,054 4,277
162
395
75,636
1,593
658,772 1 «
366
176,663 1,172
188
750
109,883
366
748
196,881
105
101,020 1,723
226
626
136,202
112
311
48.014
126
30,067
126
37
14,566
178
24,614
53
99
37,830
63
778
531,509 3,579
464
220
141,911
233
185,545 1,333
243
42
19,331
374
87
50,569
142
64
21,801
115,347 1,385
247
8,975
182
18
276,548 1,538
314
44,223
345
124
895
54.015
63
531
47,699
93
50,629 1,508
140
116
8,341
37
296
34,256
67
438
99,294
218
876
91,740
310
208
31,056
55
369
23,132
42
201
32,597
101
190
19,201
33
133
960,791 1,002
48,341
8
225,691
1291
136,933
68
67,538
52j
84,130
29
230,789
45!
67,193
53!
41,159
6,436
14,331
12
17,837
36
11,984
254
309,611
34
45,262
80,866
85
14,640
21,262
7, '
77,497
12,317
107,119
20,596
67,075
34,008
166,093
8,349
33,095
35,597
67,186
12,018
25,789
15,188
11,587
3
Total:
Aug. 16 to Sept. 15,1921. 8,904 5,381,82130,1,819 3,434,433 2,426
July 16 to Aug. 15,1921. 8,791 5,444, 166 30,168 3,345,135 2,484
~1237 4,613,487 1,993
Aug. 16 to Sept. 15,1920. 7,304 7,700,39129,
1
$46,942
446,333
25,032
131,830
16
5,168
35,109
59,251
24,005
9,583
7,946
4,611
4,016
11,806
28,067
3,198
6,615
806
1'
219
18,615
1,905
39,719
15,280
7,843
5,254
11,546
1,457
2,188
3,575
10,088
1,776
12 246
3,586
1,—
26
11
29
37
73
22
26
3
7
5
7
5
11
25
2
2
4
3
75
51
15
20
65
5
4
44
49
33
10
33
14
4,055 $893,254
$5,531 7,562 2,917,330
17,815
756
168,591
4,360 1,040,045
7,757 1,668
339,325
3,684 1,019
193,660
5,228 1,234
326,286
13,504 2,054
411,014
7,296 1,028
243,084
3,726
492
107,073
486
18,470
63,903
190
805
35,275
267
1,473
49,208
240
732
74,145
3,079 4,878
914,323
732
1,000
195,261
1,094 1,703
283,265
1,964
325
37,806
235
495
76,208
230
218
31,190
329 1,756
215,735
1,650
213
25,484
15,785 2,255
446,638
14,187
99,475
7,060 1,1
137,442
5,269
94,888
705
4,450 1,804. 236,466
515
182
20,245
411
1,672
73,137
798
5,013
234,290
13,255 1,353
200,783
320
4,269
54,348
449
71,284
7,539
383
67,458
5,183
256
41,581
7,537
410,933142,158 19,234,794 3,371
997,370
398,020 41,452 19,188,970 3,318
966,877
564,334 38,541 112,880,327 3,578 1,625,452
770
728
853
187,336 46,299 10,419,500
166,226 45,49810,322,073
311,877 42,97214,817,656
$17,150
101,621
1,767
23,752
9,609
6,177
4,938
6,450
8,388
4,591
984
962
1,
11,793
42,057
3,890
9,145
1,066
2,653
1,077
3,947
637
7,467
5,189
1,449
2,260
3,748
1,583
1,926
90,811
12,514
5,229
2,578
10,904
1,353
3,895
6,649
565
3,703
1,606
1998
1,143
1,873
905
450
445
171
243
198
4,611
718
1,651
291
483
215
1,665
205
1,907
491
968
1643
1,675
168
392
730
1,225
283
425
336
232
160
$846,312
897
2,465,466
153
125,744
908,215 *657
36
323,205
10
1184,808
62
285,949
144
338,259
50
211,783
20
93,764
15
37,487
16
29,859
17
43,719
37
61,607
260
883,177
9
191,063
41
275,556
9
35,036
10
74,484
1
30,741
87
196,791
5
21,929
273
391,134
84
70,008
43
122,539
42
184,365
64
220,4701
9
18,273|
15
69,277
24
225,702
79
177,440
4
48,303
14
51,499
14
58,689
10
32,141
Includes items drawn on banks in other Federal Reserve districts forwarded direct to drawee bank.
NOTE.—Number of business days in period for Baltimore, Jacksonville, San Francisco, and Los Angeles was 25; for other Federal Reserve
Bank and branch cities, 26 days.
NUMBER OF MEMBER AND NONMEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT, SEPTEMBER 15, 1921 AND 1920
Nonmember banks.
Member banks.
Federal Reserve district.
On par list.
1921
New York
Philadelphia
. . . .".
Kansas City
San Francisco
Total
i Incorporated banks other than mutual savings banks.
1920
1921
Not on par list.*
1920
437
794
700
880
620
503
1,439
584
1,020
1,087
863
867
434
777
694
866
610
445
1,401
567
985
1,076
838
813
255
329
464
1,079
1,013
399
4,260
2,499
2,739
3,282
1,199
986
257
327
433
1 076
766
421
4,240
2,512
2,913
3,395
1 254
1,026
9,794
9,506
18,504
18,620
1921
1920
566
1 177
784
1,202
167
99
112
174
2,121
2,160
1252
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
GOLD AND SILVER IMPORTS AND EXPORTS.
GOLD IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Imports.
Country.
During
10 days
ending
Aug. 20,
1921.
During
11 days
ending
Aug. 31,
1921.
Exports.
During
10 days
ending
Sept. 10,
1921.
From
Jan. 1 to
Sept. 10,
1921.
$9,000
3,760,711
3,236,497
7,164,746 $10,769,347 34,999,294 8,743,087 145,054,151
2,621,160
2,829,166
2 2,621,162
715,745
$880 $3,720,000
$880
France
Germany
During
month
of
August,
1921.
During During During
From
10 days 11 days month
Jan. 1 to ending
ending
of
Sept. 10, Aug. 20, Aug.
31, August,
1920.
1921.
1921.
1921.
$335,906
109,804
1,744,219
$10,000
128,700
912
241,263
100,702
213,289
100,000
40,107
Italy
879,217 245,603 17,926,399 1,161,963
162,585
478,940
Netherlands
1,534,985
2,885
2,885
3,324
Norway
20,892
25,364
Portugal
85,000
Russia in Europe
26,442
992
3,243,238
17,313
23,511
Spain
249
4,265,290 4,507,000 12,110,726 414,940 55,187,678
Sweden
16,436
572,957
239,774
4,937
Switzerland
16,000
393,264
4,880
7,175
58,025
Turkey in Europe
United Kingdom:
2,651,859 8,039,790 19,202,625 6,278,404 149,386,858 85,167,570
England
45
Scotland
Total Europe... 16,815,277 23,925,765 70,241,732 19,434,470 384,169,830 88,739,501
4,645
Bermuda
British Honduras
2,539,647
Canada
18,561
Costa Rica
31,586
Guatemala
186
Honduras
48,623
Nicaragua
31,982
Panama
10,000
Salvador
145,004
Mexico
Cuba
2,830
British West Indies...
Virgin Islands of U.S.
Dominican Republic.
Dutch West Indies...
Total N o r t h
2,833,064
America
Argentina
Bolivia.
Brazil
Chile .
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Uruguay
Venezuela
Total S o u t h
America
9,129
During From
From
10 days Jan. 1 to Jan
to
ending Sept. 10, Sept.110,
Sept. 10, 1921.
1920.
1921.
$2,643,013
2,604
13,235
2,643,013
268,014
102,890
4,645
20
52,435 2,653,997 1,005,559 28,942,093 30,767,357 $74,731 $105,602 $263,197 $102, Hi 1,629,589 3,859,442
27,500
44,623
651,849
475,680
2,165
48,000
501,287
75,586
14,872
17,000
197,132
2,942
181,695
2,157
19,000
550,296
153,423
23
844,630
72,277
67,282 1,862,915
156,265
163,791 318,189
788,437
109,836
117,850
725,765
83,381
20,000
471,124
143,716 3,750,854 3,181,290
140,190
3,000 118,610 301,905 35,165 5,198,915 16,392,548
358,276
96
255,707
14,480
96
350
350
375,000
250,844
435,993
78,888
110,419
76,058
150,000
10,000
25,000
25,000
25,000
39,000
23,960 4,765,385
341,754
214,154
174,081
848,704 4,280,103 1,689,597 43,082,407 36,646,554
86,700
95,829
9,797
827
928,020
3,031
93,122
122,649
8,740,710
380,800
107,436
54,030
911,455
5,031,837
1,027,006
77,238
6,878
24,585
337,317
3,130,887
442,932
93,754
2,387
626,613
78,081 224,212
565,452
137,306 7,079,348 20,714,990
89,995,000
24,300
280,000
400,000
700,000
156,000
4,342
690,074
2,412
523,983
23,631
1,008,390
8,999
3*2,650
20,053
1,385
1,385
27,828
139,273
196,442 1,469,821
23,736
33,243
47,029
160,753
74,976
354,265
6,300
3,653,376
12,850,000
184,000
1,207,179
558,973 2,466,617
819,777 17,400,096
5,096,856
24,300 108,224,676
China
Chosen
British India
Straits Settlements...
Dutch East Indies
French East Indies...
Greece in Asia
Hongkong
Japan . . .
Palestine and Svria
Turkey in Asia.
480,259
46,310 1,351,637
4,860
4,860
3,529,319 4,563,743
679,369 17,222,109
4,860
206.000 24,009,263
1,260
20,286,750
52,018
52,018
106,828
15,683
166,676
254,429
14,900
139,050
179,635
147,675
Total Asia
606,985
3,390
149,828
3,812
74,708
202,829
6,503,741
6,683,454
60,000 12,065,105
2,290,000
782,485 2,672,994
6,005,892
922,640
5,580,825 30,191,910
2,208,234
811,495
1,448,793
17,300
57,250
106,200
122,600 1,550,090 27,202,797
43,953,495
3,735,222 6,572,998 1,154,772 58,996,596 32,866,164
17,300
57,250
106,200
122,600 1,610,090 118,985,342
11,690,487
1,946,600 1,946,600
Australia
215,390
215,390
2,178,897 1,456,540
New Zealand
Tahiti .
890,714
647,746
55,000
59,000
6,267
107,761
Philippine Islands,....
21,665
Abyssinia
13,250
British West Africa...
51,823
British South Africa
366,714 1,700,439 2,208,729
366,7U
Egypt
562,073
2,1,180
1,219
1,219
280,358
Portuguese Africa
Total all coun21,521,505 31,604,854 86,199,134 24,875,235 1521,264,567 165,733,719
tries
Excess imports or
21,426,124 31,323,392 85,527,482 24,615,329 509,907,516
exports
300
39,446
95,381 281,462
671,652
259,906 211,357,051 248,232,468
82,838,749
is: Ore and base bullion, $28,048,000; United States mint or assay office bars, $428,000; other refined bullion, $377,174,000; United
i Includes:
;es com, $>oi,izz,uuu; ioreigu uum, »fft,^i,wu.
2 Includes: Domestic exports—Ore and base bullion, $76,000; United States mint or assay office bars, $621,000; other refined bullion $101 000coin., $7,049,000. Foreign exports—Ore and base bullion, $1,000; refined bullion, $1,521,000; coin, $1,988,000.
'
'
1253
FEDERAL RESERVE BULLETIN".
OCTOBER, 1921.
SILVER IMPORTS INTO AND EXPORTS FROM THE UNITED STATES, DISTRIBUTED BY COUNTRIES.
Imports.
Country.
During
10 days
ending
Aug. 20,
1921.
During
11 days
ending
Aug. 31,
1921.
During
montn
of
August,
1931.
Exports.
During
10 days
ending
Sept. 10,
1921.
Bplsfium
Bulgaria
Denmark
France
Germany
Greece. Italy
Netherlands
Norway
Poland and Danzig. .
Portugal
Spain
$16,825
$16,825
1,067
2,881,629
2,211
$40,192 3,815,923
4 111|
4,965
46
30
4,111
1,000
4,965
46
30
54
344
47
45,287 3,845,455
763,659
Swpdpn
United KingdomEngland
Total Europe...
British Honduras
Canada
-•
Costa Rica
Honduras
Nicaragua
92
2,903,724
38,674
26
117,255
245
10
23,663
1,547
11,893
84
2,425
871,933
4
206,945
1,206
500
1,566
35,556
98
4,014
3,184,586
4
46,000
315
52,000
315
Qoi vodor
Mexico
1,016,769
Cuba
T^ritisTi T/Wct TfldlPS
Virgin Islands of U. S.
Dominican Republic.
Dntoh Wpst Indies
"FYPTIPVI ^ATpst Indies
Haiti
Total
North
America
Argentina
Brazil
Chile
Colombia
6,000
$485
763,127
118,025
6,723
i
117
19,465
794,449
37
40
1,085,142 1,051,701 3,486,790
China
T)nfph T?fl*lt IndlOS
Philippine Islands...
T o t a l , all
countries
Excess of imports or
exports
$32,920
7,978
67,848
6,915
54,960
801,061 $300,737 $709,897 $1,070,672 $544,547 $8,090,731 4,520,242
6,510,926 1,036,396
63,367
2,897,954 2,874,480
51,363
55,306
520
21,734
827,813 1,747,511
174,274
573,315
385,885
135,671
40,110 3,685,083
24,741,159 41,541,394
70 772
62,550
1,818
7,017
170,000
1,590
From
Jan. 1 to
Sept. 10,
1920.
24,026
30,820
14,453
300,737
709,897 1,070,672
200
200
47,726
68,933
150,063
544,547
8,090,731 4,608,122
85,633
1,715,250 6,204,047
400
2,500
1,800
i,666
13,056
62,975
104,894
53,201
7,200
600
120,800
1,450
20
938,857 29,363,258 50,889,698
25
110,261
79
8
21,775
474,463
246,149
5,438,324 13.024.632
87
140
126
509
140
10,163
33,033
167
7,60s! 1,289,974
140
10,853
383,019 2,327,337
10,648
861 """"13," 567
25,939
21,443
125,800
6
8,188
6
425,768
11
14
138,594
20?
3,113
9,958
1,116
109,407
12,207
33 033
7,698
204
Total Asia
1,143,283
From
Jan. 1 to
Sept. 10,
1931.
$83,295
18,592
25,396
269,094
995,664
41,876
293
1,326,852 2,273,616
128,782
591,932
24,400
52,266
43
42
141
6,390
3,623,048 9,078,961
2,932
2,564
72
1,274
1,274
T~)ntph Guiana
Venezuela
Total South
America
$16
16,825
370
99,875
4,955,909
225,234
11,351
805
4,111
1,000
20,382
16,328
5,280
10,157
During During During During
From
10 days 11 days month 10 days
Jan. 1 to ending ending
of
ending
Sept. 10, Aug, 20, Aug. 31, August, Sept. 10,
1920.
1921.
1921.
1931. ^1921.
4,500
376,505
3,000
542,000
226,000
50,000
1,606,888 2,711,622
316,825 1,075,215
98,552
18,080
25,000
261,500
9,000
Ecuador...
Peru
From
Jan. 1 to
Sept. 10,
1931.
396
1,650
960
38,511
402,976 3,657,472
33,235
353
44,049
7,865
590
76
28
76
1,616
550
3,128
1,105
14,125
31
3,760
400
400
1,190
37,128
4,109,716
9,248,093
131,908
256,157
146,634
4,018,215 11,230,469
900
12,138
2,333
"**239,"506
1,402
10,000
240,400
653,938 1,074,324
631,258
1,025,464
762,918 1,012,902
218,698 329,078
64,025
217,170
25,873
6,531,565 54,251,673
2,873,517
223,211
528,000 4,058,373
7,588,604 19,397,995
2,655,636 1,154,939
970
1,635,554 2,416,304 1,937,917 20,177,322 79,087,161
11,617
14,680
6,097
7,480
93,321
4,161,285 1,119,620 7,852,849 1,958,270 141,774,761 68,733,913
3,799,566
60,982
361,719 2,477,359 3,743,133 2,629,098 232,526,668 94,959,105
1,357,739
670,828
26,225,192
1 Includes- Ore and base bullion, $28,450,000; other refined bullion, $5,310,000; United States coin, $2,308,000; foreign coin, $5,706,000.
2 Includes- Domestic exports—Ore and base bullion, $15,000; United States m i n t or assay office bars, $152,000; other refined bullion, $15,924,000;
coin $838 000.' Foreign e x p o r t s - O r e and base bullion, $2,000; bullion refined, $12,231,000; coin, $3,364,000.
1254
FEDERAL, RESERVE BULLETIN.
MONEY
HELD
OCTOBER, 1921.
OUTSIDE THE UNITED STATES TREASURY AND
RESERVE SYSTEM, SEPTEMBER 1, 1921.
General stock.
Gold coin (including bullion in Treasury)
Gold certificates
Standard silver dollars
Silver certificates
Subsidiary silver
Treasury notes of 1890
United States notes
Federal Reserve notes
Federal Reserve Bank notes
National Bank notes
Total:
Sept. 1,1921
Aug. 1,1921
July 1,1921
June 1, 1921
May 1,1921
Apr. 1,1921
•Mar. 1, 1921
Feb. 1,1921
Jan. 1, 1921
July 1, 1920
Jan. 1,1920
July 1,1919
Jan. 1,1919
July 1,1918
Jan. 1,1918
July 1,1917
$3,377,417,980
Held in the
U. S. Treasury
as assets of the1
Government.
Held by or for
F. R. Banks2 and
agents.
$383,347,076
$1,778,327,667
644,461,480
8 40,957,956
26,929,506
THE
Held outside
U. S. Treasury
and F . R.
System.
272,366,584
11,587,229
346,681,016
2,849,722,060
121,766,400
739,148,874
2,952,147
2,962,222
2,593,508
16,815,334
< 78,969,982
319,846,227
8,662,314
9,032,981
$386,916,668
184,365,089
34,333,953
188^588,757
260,779,355
LJ.1,562,764
264,758,887
2,526,913,611
110,510,578
713,300,559
8,010,842,240
7,988,397,187
8,024,422,943
8,073,737,233
8,040,936,478
8,082,773,866
8,084,936,396
8,171,237,897
8,372,970,904
7,887,181,586
7,961,320,139
7,588,473,771
7,780,793,606
6,742,225,784
6,256,198,271
5,480,009,884
431,623,906
432,471,109
460,595,721
499,236,987
508,349,193
496,945,969
493,976,120
499,358,809
494,296,257
485,057,472
604,888,833
578,848,043
454,948,160
356,124,750
277,043,358
253,671,614
2,907,188,113
2,818,800,024
2,697,553,897
2,562,692,917
2,512,465,834
2,534,743,843
2,385,101,578
2,438,773,422
2,377,972,494
2,021,271,614
2,044,422,303
2,167,280,313
2,220,705,767
2,018,361,825
1,723,570,291
1,280,880,714
4,672,030,221
4,737,126,054
4,866,273,325
5,011,807,329
5,020,121,451
5,051,084,054
5,205,858,698
5,233,105,666
5,500,702,153
5,380,852,500
5,312,009,003
4,842,345,415
5,105,139,679
4,367,739,209
4,255,584,622
3,945,457,556
303*739*326'
*"*ii*366*396"
FEDERAL
Amount per
capita outside
U. S. Treasury
and F . R.
System.
$43.11
43.77
45.02
46.43
46.57
46.91
48.41
48.73
51.29
50.19
49.81
45.00
47.83
41.31
40.53
37.88
i Includes reserve funds held against issues of United States notes and Treasury notes of 1890 and redemption funds held against issues of
national-bank notes, Federal Reserve notes, and Federal Reserve Bank notes, but excludes gold and silver coin and bullion held in trust for the
redemption of outstanding gold and silver certificates and Treasury notes of 1890.
a Exclusive of amounts held with United States Treasurer in gold redemption fund against Federal Reserve notes.
»Includes subsidiary silver.
< Includes Treasury notes of 1890.
FEDERAL RESERVE BANK DISCOUNT RATES.
RATES ON PAPER DISCOUNTED FOR MEMBER BANKS IN EFFECT OCT. 1, 1921.
Paper maturing within 90 days.
Federal Reserve Bank.
Secured by—
Treasury notes Liberty bonds
and certificates
and
of indebtedness. Victory notes.
Boston
New York
Philadelphia.
Cleveland
Richmond...
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
5
5
51
6
6
6
6
6
6
6
51
5
5
51
51
6
6
6
6
6
6
6
51
Trade
acceptances.
5
5
?
6
6
6
6
6
Commercial,
agricultural,
and live-stock
paper, n.e.s.
5
5
51
?6
6
6
61
6
6
51
Bankers'
acceptances
maturing
within
3 months.
5
51
51
6
6
6
51
6
6
6
51
Agricultural
and live-stock
paper
maturing after
90 days
but within
6 months.
5
5
51
51
6
6
6
6
61
6
6
51
In the following table are presented actual discount and
interest rates prevailing during the 30-day period ending September 15, 1921, in the various cities in which the several
Federal Reserve Banks, and their branches are located. A
complete description of the several types of paper for which
quotations are given will be found in the September, 1918,
and October, 1918, FEDERAL RESERVE BULLETINS. Quotations for new types of paper will be added from time to time
as deemed of interest.
Rates for almost all classes of paper, and particularly prime
commercial paper purchased in the open market, and bankers'
acceptances, both indorsed and unindorsed, tended to decrease
in comparison with the rates prevailing during the period
ending August 15, 1921.
With the exception of the rates oninterbankloans and ordinary
loans to customers secured by Liberty bonds and certificates of
indebtedness, present rates as a whole were lower for all types of
paper than those prevailing during the same period of 1920.
DISCOUNT AND INTEREST RATES PREVAILING IN VARIOUS CENTERS DURING 30-DAY PERIOD ENDING SEPTEMBER 15, 1921.
Mme commercial paper
1
64-7 8
8
8 o 77
8
8 fi
10
10
6 8
7
6 7
10 7 8
«
7
7 6 «4
8 6
7
8
8
10
71
8 •» 7
8
8
8 6 7
8
8
8
V
7
8
8
6 64-7
6
fi 7
6 8
7
8 8
61 7
6
6
64 7
7"
7
6
?*
6 6 6
8 6 7
6
8
6
7
8
8
7 8
6 64-8
?? ?
8 64 8
8 7 7
?
64 6
64 6
7 6 64
64 6 64
8 6
7 6
7 6 64
64 6 | fi+
f
8 6 7 8
8 6 6
64 6 64
74 64 7
7 6
6 6
8 6
7
7
7 64 64
7 64 64
7 6 7
64 6 6 i
64
7
8
8
64 6i 61
7*6
6*
8 6 7
8 8 8
6
6
6
8
61
61
7
8
7" 67
64 6 61
64 6
64 6 64
7| 6 64
6| 6 64
64 6
64 5 |
SI
6
64
6
6
64
Q
8
8
8
8
7
7
7
a
6
6
6
7
7
6f
6
7
7
7
7
7
64
8'
7
6
7
54 4* 41
6
6
6
64 6 6 |
8 8
7
8
8
5
5i
6
4$ 4 |
fi 5°
6 6
6f 6i 64
8
8
f54 5
7 5
7 5
Rates for demand paper secured by prime banker's acceptances: High, 6; low, 5; customary, 5-6.
7
7 8
6 64-8
5f 54
5 54
64 64 64
?? ?
7 7
8 64 7
8
8
8 5 64
8 7
K7
C7
8
5?
51
5'f
8
64-7
6
6
7
7
?8 6"76 774-8
7
7
f6
64-7
6
5H 6
6
7
6
6
8
6
6
64 7
6
6
6
6
64 7
71 6~ 7
8 7 8
8 6 74.-8
6
7
7
7
?
7 6
6 6
8 6
8 7
71 7
7
6
7
8
7 6
7 6
7
Q
71
'2
10
8
10
8
54
8
8
9
8
6
6
6
6
6
44
7
5
8
6
7
8
74
8"
7
?*7
7
8
7
10
8
10
8
^2
6
6
6
8
6
8 7
8 7
9 8
8 6
6
7
6
6
8
8
8
8
8
64-7 7
7
7
6 6
6 7
7 8
74 7 74
8
6
8
8
5|
51
6
74
6
7
6
6
64
6"
8
6
6
5-!
6
6
6
6
7
7
6
8
8
8 74
6
7
6
6
7
7
8
7
8
74
8"
7
?8
7
8
62
6
6
8
6
6
7 64 7
8 8 8
8 6 7
64-7
7 7
7
6
7
8
8 7 7
6 6 6
74
71
8
74
8"
7
f ?
8 7 7
8 7 8
8 6
6 6
8
7
70 6 7
8
10
8
10
8
7
8
7
6
7
7
8 7 g
8 74 74
8 6
8
10
8
10
8
7
7
8
8
7
7
7*<
8
8
9
74
8 7 7"
8 7 7
8 8 8
9 8 8
8 6 8
6
?
7
6
6
8
7f
8
8
7
7
8
6
8
8
6
7
H. L .
6
6
7 ? *7
6
7
6
6
7| 6 i
7
64 7i-8
6 72
6 6H
8
7
7
7
7
6
7
8
7
6
6
6
6
64
6"
6
7
64
7-8
6
64^7
6i
7
6
7
8
6
6
6
6
6
6
6
6
7
7
7
6
7
6
7
8
74
8
7f
8 6 7*
8
10 7 8
10
8 7 71
8
10 8 8
10
8 7 7 * 8
6464
7
8
64 7
8 7 7
8
7 8
8
8 8
8
6 7
8
7
a
64 54 6
6
7
6
6
7
6f 7
6
64
6
6
7
64
6
6
8
74 7
OOM
8
7*
7 6 6
7
8
8 7 8
7
7
74
5
6
7
6
6
8
5
H. L. C. H X C.
7 6 6i
i l L C.
61
64
7 5f 6*
cot
^nlt T nkp Citv
8 6 7*
7 6 6
<?
7
s 7 8
7
7
74
6
5
5| 6
COCO
Kansas City
Omaha
Denver
Oklahoma City ..
11
Dallas
No
• - - • El Pa^o
Houston
San Francisco
No. 12
Portland
Seattle
8 6* 7
7 6 6-7
7
64
• OC
No. 10
f
7
6-7
64
5J 5* 5*
8
3t() 6
on
ty
ooooo
No. 9
Little Rock
Minneapolis
7
7
7
5i
6* 7*
5 5 5
54
54-5? 6
H L. C.
64 6
OOM
MpmnTii^
s
s
f ? ?8 66*7 7
H L. C. H. L C.
4? 5
6 6 6
5 | 5 5J-5f 8 5 54-6
ir
Ordinary
loans to
custonlers
Secured by securecIby
warehouse Libei
i
receipts. bonds and
certific ates
of ind 3btedne ss.
•COb
No 8
8
H. L a
5 43 5
6 5* 5-54
3 months.
•COb
No. 7
<?
71
fi 6 6
Demand.
• cob
No
6
7
Unindorsed.
•COb-
No 5
Pittsburgh
Cincinnati
Richm ond
Baltimore
Atlanta
B irmingham
Jacksonville
New Orleans
Nashvillo
Chicago
Detroit
St Louis
Louisville
Cattle
loans.
Indorsed.
•COCC
Philadelphia
4 to 6
months.
•COb
"RiTflFaln
TSJn
30 to 90
days.
Interbank
loans.
H. L . a H I, C.
H L C.
L C. H.L C.
7
64 5f
6|
6
64 5| 61 "
7
64
8 6 6-64
8 5 6-64 74 6 6-64 6} 6 6-61 6 ~ 6 6
6
6
64 6 6-6J 64 6 6
6
6 6
g
a
7 a
6 6 6
61 6 6
6 6
61 6 6
6 6 6
7 6 6
7 6 64
7 64 64
7 6 6-64 7 6 64
li
6 6 6
fi ff
!ob
No. 3
Boston
New Yorki
OOM
No. 2
MOOM
No 1
4 to 6
months.
Collateral loans—stock exchange
or other current.
OOM
30 to 60
days.
Bankers' acceptances,
60 to 90 days.
Open market
Customers.
City.
DL strict.
•COb
DISCOUNT AND INTEEEST R ATES.
7
6
64
6
6
6
64
6
6
64
7-8
8
71
S
7
«i
7
7
8
7
1256
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
FOREIGN EXCHANGE RATES.
Following is a table showing noon buying
rates for cable transfers in New York for principal foreign currencies, based on reports published daily by the Treasury in accordance
with the act of May 27; 1921. High, low, and
average rates for September and for August are
shown. The general foreign exchange index
representing the weighted average of the 18
principal foreign currencies works out at 51
for September, compared with 52 for August.
COUNTRIES INCLUDED IN COMPUTATION OF INDEX.
Low.
Monetary
unit.
Belgium
Denmark
England
France
Germany
Italy
Netherlands.
Norway
Spain
Sweden
Switzerland.
Canada
Argentina...
Brazil
Chile
China
India..
Japan.
Par
of exchange.
High.
Average.
SepSeptember. August. tember.
September.
Per cent of par.1
Weight.
SeptftShnr. August. tember. August.
Franc.
$0.1930 $0. 0684 $0.07321 $0.0764 i$0. 0764 $0. 0717 $0.075270 i
1785
. 2680 .1715
. 1767 . 1619 •
;
.1788
Krone..
.151
3. 7313 5.724
4. 8665 3.699
3.653632 '
Pound
3.56475 3.7463
.0793
. 1930 .0698
.0728
.077581 ;
.0787
.07619
Franc
. 2382 .007989 .01093
. 011705J . 012485 .009574 . 011896 |
Reichsmark.
. 1930 .0398
.042
. 043156 !
. 045 I .0444
.0419
Lira
. 4020 .31
. 3166
.310
.3219 ! .3176
. 3052
Florin
.2680 . 1227
. 1286
. 1362 I .1381
.1262
.1307 !;
Krone
.1307
. 1930 !l296
.1302
.131
.1202
.1289
Peseta
.2173
. 2680 .2139
.2178
.2244
.21112 i
. 20273
Krona
. 1930 .1703
.172
. 1731 ! .1706
.16817
.1638
Franc
1.00
. 909167! .90208 . 898519 . 8978194
. 89125
Dollar
.89125
. 9648 .6748
.6963
. 7383 i .6808
. 66555
.6468
Peso (gold)..
. 3244 .1199
.1237
. 1283 | .1219
.1176
.1144
Milreis
. 1953 .09875
. 10708 .1024
.11625 ! .10625
.09750
Peso (paper)
. 6685 .6837
.7300
.799 | .685
.67858
Shanghai
.668
tael.
.24224
.2283
. 4866 .2521
. 2748 ! .2563
.2639
Rupee
.48188
. 4985 .4782
. 4846 i .4850
.48369
Yen
.482
37.15
65.93
76. 52
37.72
4.02
21.76
78.76
47.99
67.46
81. 27
.39.12
89. 85
72.17
38.13
54. 83
109. 20
39.00
60.41
75.08
40.20
4.99
22.36
77.11
48.77
66.79
78.78
87.13
89.78
68.98
36.25
52.43
101. 51
16,260
4,526
121,270
61,840
53,585
19,773
25,216
2,824
5,490
16,315
3,686
95,566
12.229
10; 022
5,701
23,795
12,312
3,100
107, 549
52, 378
43, 352
18,711
20, 228
2,739
5,624
5,823
4,246
76, 453
11,900
7,493
3,959
18, 829
54.23
96.69
49.78
97.03
13,894
43,570
9,377
38, 831
OTHER COUNTRIES.
Monetary unit.
Austria
Bulgaria
Czechoslovakia
Finland
Greece
Hungary
Poland
Portugal
Rumania
Jugoslavia
Cuba
Mexico
Uruguay
Hongkong
Java
Straits Settlements
1
I Krone..
| Lev.
Krone
Markka
Drachma
Krone
Polish mark
Escudo
llSerbian dinar '
j Peso
j Peso
j Peso
j Dollar
I Florin
I Singapore dollar.
Par
of exchange.
Low.
temter.
August.
High.
September.
August.
Average.
September.
August.
$0.2026 $0. 000582 $0. 001125 SO. 00125 i $0. 001319 $0. 000936 $0. 001193
.008738 ! .0091
.1930 .00682
. 0085
. 007587
. 008801
. 010093
.012193
.2026
.0117
.0129
. 011601
. 012247
.1930 .011986
. 014675 .015671 !
. 0155
. 014059
. 015106
. 0566
.1930 .0478
.0547
. 0561
. 0524
. 05546
.002606 ;
. 2026 .001375
. 0025
.00289
. 001944
. 002629
.000383
.2382 . 00015
.000392
.000563
. 000256
. 000489
. 1108 I .1293
.0921
1.0805 .084
. 09416
.1007
. 008113
.011963 !
. 01163
.0131
.1930
. 009574
. 012383
. 00395
. 005575 . 0056 i . 006231 . 004759
.2026
. 005808
. 016025
. 0225 i
. 02245
.025
.1930
. 019122
.0233
.48
. 991067 .492813 i
.9946
1.00
. 48599
. 993225
.995212 !
. 48125
. 489375 . 993233
. 4985 .990938
. 484954
.5898 I . 6806 ! .6791
.6489
1. 0342 . 6332
. 63905
.4935
.502
. 5244
.4777
. 5605 ! . 5040
. 5007
.30
. 3115
.3136
.4020 .31
I .3175 i
. 3053
. 4108 I . 4283 i .4217
.4246
. 5678 .42
. 41809
Percentage of par.i
September.
0.46
3.93
5.73
7. 28
27! 15
0.96
0.11
8.71
4.96
2.35
9.91
97.49
99.32
62.74
109. 78
78.01
74.78
August.
0.59
4.56
6.04
7.83
28.74
1.30
0.21
9.32
6.42
2.87
12.07
99. 32
97.28
61.79
104. 81
75. 95
73.63
Based on average.
Average price of silver per fine ounce: In London (converted at average rate of exchange), $0 67022- in New York
$0.66235.
OCTOBER, 1 9 2 1 .
1257
FEDERAL RESERVE BULLETIN.
FOREIGN EXCHANGE INDEX
1918 - 1921
— FRANCE
•••• GERMANY
— GENERAL INDEX
• - ENGLAND
- ARGENTIN/
- JAPAN
- ITALY
• NETHERLANDS
-
PERCENT
PER CENT
no
no
—-«.
•555
— —
•-,
- PAR
N\
s^
90
9O
*"*
X
80
T
\
• •%,
8O
>
\
V
7O
mm*
|
70
\ *\
- \
N
6O
A
60
V,
SO
40
5O
s
—
4O
•
-•
y"
3O
3O
y
2O
2O
*•.
1O
N n
YEAR 1918
MONTH
1O
'••»
J.
M
F
A
M
,i
,1
A
55. O
N
n
j.
F
M
A
M
J.
A
S
o. N
n
J. F
A
M
1920
1919
J.
A
S
n hs. n. MONTH
1921
YEAR
FINANCIAL STATISTICS FOR ENGLAND, FRANCE, ITALY, GERMANY, SWEDEN, AND
JAPAN.
A summary of banking and financial conditions abroad is presented statistically in the
accompanying tables. Similar material will be published regularly each month in the
BULLETIN.
BRITISH FINANCIAL SITUATION.
[Amounts in millions of pounds sterling.]
Deposit and note accounts, Bank
of England and Treasury.
Government floating
debt.
Nine London clearing
banks.3
Discount rates.
Statist
Bank
notes. 1
1913, average of
end of month
figures
1920, end of—
August
1921, end of—
January
index
Capital
Curnumissues
rency
ber of
of
notes
Money Disforeign
DeSix
Three
and
exposits, Coin Treas- Tempo- Total at call counts Invest- De- United
months' months' change
certifi- public andbul- ury rary ad- floating
4
and and ad- ments. posits. Kingdom.
trade
bank
cates
lion.2 bills. vances. debt.
short vances.
value
of
and
bills.
bills.
outnotice.
£.
other.
standing.
29
57
38
15
Per ct. Per ct.
H
106
356
116
152
1,067
183
1,250
February
March...
109
108
110
342
336
344
129
127
138
May... .
June
July
338
333
324
325
319
141
128
147
122
137
1,145
1,110
1,121
1,100
1,152
1.222
1,202
1,166
242
189
155
109
108
110
109
107
157
157
157
1,387
1,299
1,275
1,290
1,315
1,374
1,355
1,347
April
August
157
157
157
157
157
190
163
152
150
180
1
Less notes in currency notes account.
2 Held by the Bank of England and by the Treasury as note reserve.
100.1
99
88
83
92
96
98
104
1,207
1,172
1,145
1,127
1,144
1,162
1,185
341
340
336
309
307
312
312
1,810
1,754
1,715
1,710
1,729
1,768
1,785
22
10
26
15
17
34
10
8
6f
7
5 9-
7
7
54-f
g 5
41
4f
5i
6
3
Average weekly figures.
* Compilation of London Joint City and Midland Bank.
122.4
120.9
123.0
120.0
119.1
117.8
112.9
113.0
1258
FEDERAL RESERVE BULLETIN.
OCTOBER, 1921.
FRENCH FINANCIAL SITUATION.
[Amounts in millions of francs.]
Bank of France.1
Gold Silver
De- 2
rereserves. serves. posits.
1913, average-.
1920, average-.
1921—
January..,
February.
March
April
May
June
July
August—
Circulation.
Situation of the Government.
Advances
to the GovGovernernment ment
4
for pur- reveposes nue.
of the3
war.
Value
of new- Savings
Avstock banks,
and
age
excess daily
Price bond
of
deof 3
issues
clearExper
placed posits(-H ings of
or
ternal cent
upon
the
withthe
Paris
debt.& perpetual6 French draw- banks.
rente.
mar- als ( - ) .
ket.*
Internal
debt.
3,343
'3,586
629
253
830 5,565
3,527 38,066
320
1,005
35,000
26,042
86.77
57.34
3,553
3,555
9 3,556
'3,566
^3,570
»3,572
9 3,573
9 3,574
268
264
267
271
272
274
275
277
3,429
3,293
3,103
3,018
3,041
2,861
3,252
2,749
25,600
25,600
26,200
26,000
26,200
25,000
25,100
24,900
1,204
921
972 H22O,344
1,248
1,004
1,030
1,242
229,055
1,016
59.16
58.15
58.17
56.92
57.15
56.26
56.35
56.35
37,913
37,808
38,435
38,211
38,233
37,422
36,941
36,783
32,523
35,268
995
1,861
344
1,085
H892
621
2,345
152
+
+
+
+
+
+
+
+
65
48
70
181
111
66
63
45
52
59
554
657
591
556
600
666
582
438
I
1
2
End of month figures.
Includes Treasury and individual deposits.
s Under the laws of Aug. 5 and Dec. 26,1914, July 10,1915, and Feb. 16,1917.
< From indirect taxation and Government monopolies.
&
Foreign debt converted to francs at par.
6
Last Wednesday in the month.
7
Figures of the "Association Nationale des Porteurs Francais de Valeurs Mobilieres." Bonds issued by the Government and the railroad
companies not included.
s Not including 1,978,000,000 francs held abroad from January through August and 1,948,000,000 francs from September through December.
9 Not including about 1,948,000,000 francs held abroad.
10
Average for 11 months,
n Revised figure.
ITALIAN FINANCIAL SITUATION.
[In millions of lire.]
1913, end of December.
1920, end of—
June
July
1921, end of—
January
February
March
April
May
j une
July
Leading private banks.1
Banks of issue.
Loans,
discounts,
and
Cash. due from
correspondents.
Depos- Com- Circulaand mer- tion for State
Total itsdecurcial account rency
remand
serve. liabili- circu- of the notes.
ties. lation. state.
Deposits and Loans Gold
due to
and
recorredisspond- counts. serve.
ents.
Government finances.
129
2,007
1,674
857
1,375
1,661
318
2,284
874
14,996
14,060
6,784
6,576
1,038
1,039
2,110
2,113
2,379
2,196
7,484
7,615
10,333
10,284
1,193
1,016
1,067
1,165
1,021
17,113
16,842
17,096
17,162
17,489
16,392
15,961
16,425
16,694
16,645
6,931
7,1587,144
7,040
6,951
7,438
1,058
1,062
1,062
1,066
1,070
1,073
2,046
2,007
2,043
2,138
2,165
1,989
2,635
2,351
2,461
2,349
2,198
2,366
8,673
8,619
9,233
8,677
8,809
9,437
10,591
10,308
9,532
9,601
9,219
8,722
Treas- Shortury
term
Total
metal- treas- public
lic reury
debt.
serve. bills.
499
117
2,538
343
2,546
9,300
19,000
Principal revenues from
taxation
and monopolies
during
month.2
95,000
822
1,210
^606
1,309
607
106,721
1
]
1
2
Banca Commerciale Italiana, Banca Italiana di Sconto, Credito Italiano, Banco di Roma.
Revenues from state railways; from post, telegraph, and telephones; from state domain; from import duties on grain; and from Government
sales of sugar are not included.
1259
FEDERAL RESERVE BULLETIN.
OCTOBEE, 1921.
GERMAN FINANCIAL SITUATION.
[Amounts in millions of marks.]
Situation of the Government.
Reichsbank statistics.
Darlehnskassenscheine
Reserve.
Gold.
1913 average..
1920, end of—
July
August..
1921, end of—
January..
February
March...
April
May
June
July
August..
Reich
Note cir- i
und
Darlehnskassenscheine.
lvalue of
| new stock
[ and bond Index
I issues number
placed
of
Receipts Floating 3 per cent 5 per cent upon
securities
war 1
from
imperial
the
prices.2
1
debt.
loan.
taxes.
loan.
German
market .3
1,068
32
1,958
668
,092
,092
17,874
18,686
55,969
58,401
17,282
15,772
13,328
13,266
1,995
1,983
148,750
,092
,092
,092
,092
,092
,092
,092
,024
22,810
21,982
23,836
24,149
14,362
8,311
5,398
3,045
66,621
67,427
69,417
70,840
71,839
75,321
77,391
80,073
15,834
17,357
28,043
20,856
14,093
20,393
15,814
13,650
11,341
10,755
10,168
9,543
9,043
8,706
8,358
7,837
6,741
7,766
6,846
5,357
6,108
5,735
5,566
166,329
172,634
176,643
185,032
190,675
75.90
60.64
60.80
98.50
98.70
67.00
67.25
67.60
72.10
72.10
67. 75
77.00
76.00
99.50
99.75
99.70
99.80
99.75
99.75
99.80
99.90
6 140
148
2,042
2,397
894
2,559
1,468
2,238
1,507
1,228
179
155
'163
159
166
178
195
222
1
2
3
4
Quotations of the Berlin Bourse.
Calculated by the Frankfurter Zeitung with the prices of 10 bonds and 25 stocks. Prices as of Jan. 1,1920=100.
Compilation of the Frankfurter Zeitung.
As of June 1.
&
As of Aug. 3.
6
As of Aug. 2.
» As of Apr. 2.
SWEDISH FINANCIAL SITUATION.
[Values in millions of kronor.]
Joint-stock banks.
Riksbank.
Gold coin Note cirand bullion. culation.
1913, end of December.
1920, average
1920, end of—
July . . .
August
1921, end of—
February
March
April
Mav
June
July.
August
1
Bills
discounted Loans and
with
discounts.
Riksbank.
Protested bills.1
Number.
Value.
Business
failures.1
Foreign
exchange
index.1
Number.
Foreign
exchange
value of
the krona
abroad
(foreign
currencies
=100).
Index
number
of stock
prices—1
A list.
102.1
269.2
234.5
732.9
138.9
476.3
2,286.9
6,008.2
4,314
3,586
1.9
6.4
309
196
112.9
258
176
261.3
261.4
724.8
742.2
511.8
566.0
6,028.9
6,007.4
3,803
3,542
6.2
5.1
182
130
115.8
115.4
176
169
281 9
281.8
281.7
281.8
281.6
281.4
280.3
285.0
672.5
687.6
716.9
680.5
651.1
678.8
629.4
632.4
429.2
451.3
442.2
400.9
377.6
365.1
362.6
6,172.6
6,119.2
6,093.6
6,065.3
5,982.7
5,949.2
5,929.9
5,937.1
5,951
6,411
8,521
7,899
8,201
7,376
7,383
13.4
14.1
20.1
15.6
22.8
18.0
16.8
301
381
390
444
454
433
413
116.1
116.4
121.7
125.5
123.3
122.6
119.3
148
138
133
128
116
110
125
Source: Kommersiella Meddelanden.
1260
OCTOBER, 1921.
FEDERAL BE SERVE BULLETIN".
JAPANESE FINANCIAL SITUATION.
[Amounts in millions of yen.]
Bank of Japan.
Tokyo banks.
Tokyo
Private
Loans
and Gov- and
disernment counts.
I deposits.
Note
circulation.
bank Average
Tokyo
clearings discount
Specie 2 associated
(total
rate
banks,
reserve.
within (Tokyo
total
the
market).
loans.
month).
1920, end of— i
March
April
May.
June.
July.
1921, end of—
January...
February.
March
April..
May
June
July....
August.
1,181
1,261
1,209
1,165
1,120
364
432
445
381
273
1,368
1,367
1,328
1,349
1,202
921
917
930
979
1,011
1,982
1,982
2,089
2,036
2,029
4,135
3,168
2,922
2,524
2,190
Per cent.
10.15
10.62
10.95
10.99
10.95
1,071
1,126
1,190
1,098
1,172
1,119
115
103
88
79
76
74
1,235
1,141
1,178
1,058
1,059
1,053
1,235
1,141
1,178
1,058
1,059
1,053
2,171
2,188
2,219
1,848
1,873
1,980
1,987
1,951
2,013
2,143
2,502
2,442
2,506
2,670
2,341
2,816
10.33
9.71
9.23
9.16
9.05
8.91
8.36
8.43
1 In case of Tokyo banks, and note circulation and specie reserve of Bank of Japan, last day of month.
2
It is generally understood that in recent years a certain portion of the reserve has been held abroad. Specie reservefiguresdo not include bank's
own notes held in the bank.
INDEX.
Acceptances:
Page.
Dealing in, methods employed
1166
Growers' drafts accepted by cooperative marketing associations, ruling on
1199
Held by Federal Reserve Banks
1235
Purchased by Federal Reserve Banks
1233
Agricultural loans by member banks, March 4, 1920, and April
28, 1921
1150
Australia, wholesale prices in
1225,1228
Bank debits
1247-1250
Banking elasticity
1149
Banking situation, discussion of
1153
Building statistics
1219
Business and financial conditions:
Discussion of
1147,1149,1155
England
1187,1257
France
1189,1258
Germany
1193,1259
Italy
1191,1258
Japan
1260
Netherlands
1195
Sweden
1259
United States
1155
Canada, wholesale prices in
1225,1228
Charters issued to national banks
1200
Charts:
Assets and liabilities of Federal Reserve Banks and member
banks
1236
Debits to individual account
1247
Foreign exchange
1257
Italy's war financing
'
1178,1179
Physical volume of trade
1208
Wholesale prices in the United States
1201
Clearing and collection:
Gold settlement fund transactions
1250
Operations of the system during September
1251
Number of banks on par list
1251
Clearing-house bank debits
1247-1250
Commercial failures reported
1200
Condition statements:
Bank of Netherlands and Javasche Bank
1197
Federal Reserve Banks
1236-1242
Member banks in leading cities
1154,1236,1244
Cotton fabrics, production and shipments
1220
Credit, letters of, application for
1170
Credit situation, discussion of
1147,1149,1151
Crop estimates
1206
Debits to individual account
1247-1250
Discount and open-market operations of Federal Reserve
Banks
1232-1235
Acceptances held
1235
Acceptances purchased
1233
Bills discounted
1232
Bills held
1234
Earning assets held
1234
Number of banks discounting
1233
Rediscounts of bills between Federal Reserve Banks
1242
Volume of, during month
1232
Discount rates:
In effect October 1
1254
Prevailing in various centers
1255
England:
Business and financial conditions
1187,1257
Cost of living
1229
Foreign trade
1230
Tariff revision
1187
Wholesale price index
1225,1226
Failures, commercial, reported
1200
Federal Reserve Banks:
Condition of
1236-1242
Discount and open-market operations of
1232
Federal Reserve note account
1243
Fiduciary powers granted to national banks
1198
Foreign exchange, index of
1256
Foreign trade:
Index of
1205
United Kingdom, France, Italy, Sweden, and Japan
1230
Form, letters of credit
1171
France:
Business and financial conditions
1189,1258
Foreign trade
1230
Tariff revision
1189
Wholesale prices
1225,1227
Freight rates, ocean
1206
" Frozen credit," elimination of
1151
Germany:
Business and financial conditions
1193,1259
Cost of living
1229
Foreign trade.
1231
Mark exchange, fluctuations in
1193
Tariff revision
1193
Wholesale price index
1225,1227
Gold imports and exports
1153,1252
Gold settlement fund transactions
1250
Imports and exports:
Gold.
1153,1252
Silver
1153,1253
Index numbers:
Page.
Eight groups of manufacturing industries
1148
Foreign exchange
1256
Foreign trade
1205
Ocean freight rates
1206
Physical volume of trade
1207-1219
Prices in Netherlands
1195
Retail prices in principal countries.
1229
Wholesale prices abroad
1225-1229
Wholesale prices in the United States
1201,1225
India, wholesale prices in
1225,1229
Interest rates prevailing in various centers
1255
Italy:
Business and financial conditions in
1191,1258
Foreign trade
1231
Tariff revision
1191
War
financing
1177-1185
Wholesale price index
1225,1227
Japan:
Business and financial conditions in
1260
Foreign trade
1231
Wholesale priceindex
1225
Knit goods production
1221
Letters of credit, application for
1170
Loans, agricultural, by member banks, March 4,1920, and April 28,
1921
1150
Maturities:
Acceptances purchased
1233
Bills discounted and bought
1232,1242
Certificates of indebtedness
1242
Member banks:
Condition of
1154,1236,1244
Loans by, in agricultural and nonagricultural sections
1150
Number discounting during August
1233
Number in each district
1251
State banks admitted to svstem
1198
Money, stock of, in the United States
1254
National banks:
Charters issued to
1200
Fiduciary powers granted to
1198
Netherlands:
Bank of, condition of
1197
Business and financial conditions
1195
Currency circulation
1197
Javasche Bank, condition of
1197
Prices in
1195
Trade balance
1196
Unemployment
1196
Norwav, wholesale prices in
1225,1228
Ocean freight rates.
1206
Par list, number of banks on
1251
Physical volume of trade
.1207-1219
Prices:
Credit and prices, discussion of
1152
Retail, in principal countries
1229
Wholesale, abroad
1225-1229
Wholesale, in the United States
1201,1225
Public debt, Italy
1179
Public finance and credit
1148
Rates:
DiscountIn effect Oct. 1
1254
Prevailing in various centers
1255
Earning assets of Federal Reserve Banks
1234
Rediscounts of bills between Federal Reserve Banks
1242
Reserve ratio of Federal Reserve Banks
1154
Resources and liabilities:
Federal Reserve Banks
1240
Member banks in leading cities
1244
Netherlands Bank and Javasche Bank
1197
Retail prices in principal countries
1229
Retail trade, condition of
1221-1223
Rulings of the Federal Reserve Board:
Growers' drafts accepted by cooperative marketing associations 1199
Purpose of original negotiation determines eligibility and classification of paper
1199
Silver imports and exports
1153,1253
State banks and trust companies admitted to system
1198
Sweden:
Business and financial conditions
1259
Foreign trade
1231
Wholesale price index...,
1225,1227
Tariff revision:
England
1187
France
1189
Germany
1193
Italy
1191
Tobacco industry, financing of
1174
Trade:
Foreign. (See Foreign trade.)
Physical volume of
1207-1219
Retail, condition of
1221-1223
Wholesale,
condition
of
1224
WTar loans, Italy
/
1181
Wholesale prices:
Abroad
1225-1220
In the United States
1201,1225
Netherlands
1195
Wholesale trade, condition of
1224
I
FEDERAL RESERVE DISTRICTS
1
MINNEAPOLIS
ATLANTA X
S
——BOUNDARIES OF FEDERAL RESERVE DISTRICTS
BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
®
FEDERAL RESERVE BANK CITIES
•
FEDERAL RESERVE BRANCH CITIES
O FEDERAL RESERVE BANK AGENCY
O
1
V'1-S
s.c
,
@FedFRASER