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 ,