Full text of Federal Reserve Bulletin : September 1920
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FEDERAL RESERVE
BULLETIN
ISSUED BY THE
FEDERAL RESERVE BOARD
AT WASHINGTON
SEPTEMBER, 1920
WASHINGTON
GOVERNMENT PRINTKJG OFFICE
1920
FEDERAL RESERVE BOARD.
W. P. G. HARDING, Governor.
EX OPFICIO MEMBERS.
EDMUND PLATT, Vice Governor,
DAVID F. HOUSTON,
Secretary of the Treasury, Chairman,
ADOLPH C. MILLER.
CHARLES S. HAMLIN.
JOHN SKELTON WILLIAMS,
Comptroller of the Currency.
WALTER S. LOGAN, General Counsel.
W. T. CHAPMAN, Secretary.
W. W. HOXTON, Executive Secretary.
R. G. EMERSON, Assistant Secretary,
H. PARKER WILLIS,
W. M. IMLAY, Fiscal Agent.
W. W. PADDOCK,
Chief Division of Examination.
J. E. CRANE,
Acting Director, Division of Foreign Exchange.
Director, Division of Analysis and Research.
M. JACOBSON, Statistician.
E. L. SMEAD,
Chief, Division of Reports and Statistics,
OFFICERS OF FEDERAL RESERVE BANKS.
Federal Reserve Bank
of—
Chairman.
Deputy governor.
Governor.
Cashier.
Boston
New York.
Frederic H. Curtiss.
Pierre Jay
Chas. A. Morss...1
Benj. Strong, jr.
C. C. Bullen
J. H. Case 2 3
L. F. Sailer
E. R. Kenzel
G. L. Harrison
Philadelphia.
Cleveland
R. L. Austin.
D. C. Wills...
George W. Norris.
E. R. Fancher. ..
Richmond.
Caldwell Hardy.
George J. Seay.
Atlanta..
Chicago..
Joseph A. McCord.
Wm. A. Heath
M. B. Wellborn.
J. B. McDougal.
St. Louis...
Minneapolis.
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
Wm. H. Hutt, jr. .
M. J. Fleming *
Frank J. Zurlinden
C. A. Peple
R. H. Broaddus 4
A. S. Johnstone . .
JohnS. Walden 4 ...
L. C. Adelson
C. R. McKay 4
B. G. McCloud ...
O. M. Attebery
W. B. Geery
S. S. Cook
C. A. Worthington.
Lynn P. Talley
Wm. A. Day
Ira Clerk 5
C. H. Stewart 5
1
2
On leave of absence.
Acting governor.
3
Controller.
4
Assistant to governor.
W. Willett.
L. H. Hendricks.3
J. D. Higgins.3 3
Channing Rudd.
A. W. Gilbart.3 3
Leslie R. Rounds.
J. W. Jones.3
W. A. Dyer.
H. G. Davis.
Geo. H. Keesee.
M. W. Bell.
S. B. Cramer.
J. W. White.
J. W. Helm.
Sam R. Lawder.
W. N. Ambrose.
* 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.
Ray M. Gidney.
L. W. Manning.
Geo. De Camp.
Federal Reserve Bank of—
Kansas City:
L. H. Earhart.
Omaha branch
C. A. Burkhardt.
Denver branch
Oklahoma City branch... C. E. Daniel.
Morton M. Prentis.
Dallas:
El Paso branch
Houston branch
Marcus Walker.
Geo. R. De Saussure.
A. E. Walker.
J. B. McNamara.
San Francisco:
Los Angeles branch
Portland branch
R. B. Locke.
W. P. Kincheloe.
J. J. Heflin.
A. F. Bailey.
Manager.
W. C. Weiss.
E. F. Gossett.
C. J. Shepherd.
Frederick Greenwood
Salt Lake City branch... R.(acting).
B. Motherwell.
C. A. McLean (acting).
Seattle branch
W. L. Partner (acting).
Spokane branch
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 per
odical publication of the Board. It is printed in two editions, of which th^ 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, or 1917 are available.
m
TABLE OF CONTENTS.
Review of the month
Business, industry, and finance, August, 1920
Movement of loans
Collection conditions
Production and orders of underwear
Condition of wholesale trade
Terms of sale in the principal industries
Interest rates in the New York market
Official:
Foreign branches of American banks
State banks and trust companies admitted to system
Banks granted authority to accept up to 100 per cent of capital and surplus
Charters issued to national banks
'
Fiduciary powers granted to national banks
Rulings of the Federal Reserve Board
Law department
Miscellaneous:
July crop report
Commercial failures reported
Loans for essential industry
Statistical:
Retail trade index
Foreign trade index
Wholesale prices abroad
Wholesale prices in the United States.
Discount and interest rates prevailing in various centers
Physical volume of trade
Gold settlement fund
Debits to individual account, July and August
Discount and open-market operations of the Federal Reserve Banks
Operations of the Federal Reserve clearing system
Interdistrict time schedule
Resources and liabilities of the Federal Reserve Banks
Federal Reserve note account
Condition of member banks in selected cities
Imports and exports of gold and silver
Estimated stock of money in the United States
Abstract of condition of member banks
Discount rates approved by the Federal Reserve Board
Diagrams:
Interest rates in the New York market
Wholesale prices in the United States
IV
897
912
920
922
925
926
928
941
•
944
945
945
946
946
948
950
943
945
927
951
953
954
963
967
968
976
978
981
986
987
988
993
995
1002
1004
1005
1004
942
964
FEDERAL RESERVE BULLETIN
VOL.
6.
SEPTEMBER, 1920.
REVIEW OF THE MONTH,
Public finance during the month of August
has continued to show the
finance a s u r y same tendencies which characterized the month of July.
Total ordinary receipts for the period were
$398,400,666, while the total ordinary disbursements were $447,571,062, the deficit on
ordinary account being thus $49,170,396. On
August 9 the Secretary of the Treasury, under
the authority of the act of September 24, 1917,
offered for subscription an issue of $150,000,000
of one-year Treasury certificates of indebtedness, bearing interest from August 16 at the
rate of 6 per cent. The certificates were issued under the same conditions as in the
case of previous recent issues and the offering
resulted in an oversubscription of approximately $58,000,000. The grand total of receipts for the month, both on ordinary and
extraordinary account (public debt included)
was about $619,600,425 as against a grand total
of disbursements of $567,015,712, thus creating
a surplus for the month on all accounts of
$52,584,713.
The influence of Treasury finance during the
month of August upon banking and credit
conditions has been comparatively limited, as
is generally the case at the opening of the fiscal
year. There are gratifying indications that
recent certificate issues are being well absorbed
by the investing public. While the matter is
not capable of accurate statement, the reports
of the 815 member banks reporting weekly to
the Board supports the view that out of the
estimated outstanding volume of tax and loan
certificates of $2,570,000,000 on August 31, by
far the larger portion, possibly close to 75 per
cent, has been distributed among the investing
public, leaving only a relatively small proportion in the hands of the subscribing banks.
No. 9
Conditions both in public and private finance
are beginning to give unmisd takable
evidence of a return
toward more normal conditions.
Reviewing conditions since the armistice of
November 12, 1918, it is found that as compared with a "peak" of $1,863,476,000 on
May 16, 1919, in the total volume of paper
collateraled by war obligations and held by
Federal Reserve Banks; and as compared with
a peak of $1,438,204,000 on June 20, 1919,
representing paper of the same class under
discount at member banks (excluding amounts
redjscounted), the respective figures corresponding to these high points to-day are
$1,314,830,000 and $693,993,000. The circulation of notes has, however, increased from
$2,850,944,000 on January 30, 1920, to
$3,120,138,000 on July 30. The reaction
against further expansion of credit and the
tendency toward the reduction of prices appears clearly to be promoting the process of
liquidation and is resulting in a decrease of
speculation, whether in securities, commodities, or land. These and other facts and indications warrant the belief that the process
of financial recovery and improvement is weli
under way in the domestic field. Such difficulties of a financial character as may be expected in the near future are more likely to
arise out of the foreign than out of the domestic situation and make a survey of the
foreign field important, therefore, at this time.
An examination of the credit and banking
situation in most of the European countries
shows that though progress is being made in
many directions it is slow, while in some of
the countries there has been but little or no
check to the development of inflation and
consequently comparatively little improvement in the prospect for stable currency
relations, either with the United States or
897
898
FEDEKAL KESERVE BULLETIN.
with, other countries. The bearing of all this
on our situation is recognized by many of the
larger banks of the country which are directly
concerned in foreign trade and finance.. As a
result there has been careful study on the part
of various leading banks of existing credit conditions abroad for the purpose of ascertaining
to what extent we are likely to be able to adjust
ourselves to the situation. In speaking of
existing conditions the Shawmut National
Bank of Boston remarks that u so important
has this matter of foreign exchange rates
become that upon them depends to a large
extent the direction of trade and the course of
prices * * *. An understanding of foreign
exchange has become a necessity rather than a
luxury.7' The Mechanics and Metals Bank of
New York, in a publication entitled " America's
Opportunity/ 7 notes that "it has been left with
the foreign exchange market * * * m to
weigh, one upon another, all the factors upon
which the future of Europe so vitally depends.7'
The situation 'is also generally recognized
among exporters and financial concerns developing the export trade. In a bulletin to its
clients, issued on August 25, the First Federal
Foreign Banking Association calls attention
to the fact that' i the adoption of a well-thoughtout policy and definite plans regarding extension of credit in merchandising to foreign
customers is * * * a matter of more than
usual importance to American manufacturers
and merchants.7'
The foreign exchange and currency situation
in the different countries has
tionsafnaly°siNa" b e e n s o cle arly recognized as of
fundamental significance at the
present time as to have led to an extensive and
comprehensive study conducted under the
auspices of the International Secretariat of the
League of Nations and issued within the past
month under the title Currencies After the
War. In reviewing the situation the report
comes to the following conclusions:
"The main results of the war disclosed by
the memoranda as a whole may be summarized
as follows:
" (1) All currencies have depreciated in terms
of commodities. Even those countries, such
as Argentina, which have escaped the necessity
of special expenditure for military purposes
SEPTEMBER,
1920.
have failed to escape from a rise in commodity
prices. In fact, neutral countries have been
more or less compelled to endure many of the
financial and economic ills which have fallen
upon the belligerents.
" (2) Most currencies have depreciated in
terms of gold.
" (3) Gold itself has depreciated in terms of
commodities.
" (4) There is a remarkable relation between
the expansion of currencies and the rise in
commodity prices. Whether this relation is
causal or not is still a matter of dispute, though
most leading authorities attribute the rise in
prices to the use made by Governments of
currency and bank credits for financing expenditure.
" (5) In certain cases, such as that of Germany, there is a great disparity between the
internal and external commodity values of the
currency.
" (6) Everywhere currency and exchange
disorder is hampering trade and retarding
reconstruction. In some countries it is a
rime factor amongst those which are causing 77a
reakdown of the economic and social system.
These views lead to an analysis of price,
banking, and exchange conditions in the several countries, with a view to ascertainment of
the position of the world at large and of the
different nations as elements in the general
world problem. In concluding the study the
statement is made that—
"The effect of the instability of currency
values upon internal trade and industry is
serious enough, but the effect upon international trade is perhaps still greater and more
harmful. International trade on the modern
scale by means of barter would be an impossibility; it can only be conducted with the
assistance not only of money but also of credit.
But the use of credit involves time bargains in
money, so that if on the balance of all sales and
purchases a country grants credit to foreigners
either the creditors or the debtors must run an
exchange risk in respect of the indebtedness of
which the date of settlement is postponed.
Neither by the clearance of spot transactions
nor by sales and purchases of forward
exchange
can bankers eliminate this risk.77
Finally the report comes to the conclusion
that—
"An immediate legislative reorganization of
currencies might well prove premature. It
still remains to determine what the fundamental basis of the new systems shall be. A
E
SEPTEMBER, 1920.
universal gold standard with gold currencies
of the prewar British type is generally regarded
as impracticable; the way for universal or all
but universal adoption of some form of gold
exchange standard has not yet been prepared
by either economists or business men. Still
less have they considered how under future
conditions reasonable stability is to be given
to the value of gold or of such other single or
multiple standard as it may be decided to
adopt. To the problem of currency, as has
already been said, the question of credit is
complementary. It is perhaps by international cooperation alone that we can now hope
to stay the breakdown of currency and credit
which over large areas is rapidly developing
into a disaster of the first magnitude."
The views of observers in all countries, as
reflected in the report of the League of Nations,
based as it was upon a comprehensive questionnaire sent to a large number of experts, are
thus found to be in general agreement upon the
essentials of the international trade, currency,
and foreign exchange problems. They are also
in agreement to the effect that the establishment of a stable basis of international trade is
probably fully as important as the establishment of a stable basis of domestic trade—indeed, that the latter can hardly be obtained
without the former. The position of the
United States, therefore, in its relation to
other countries must be reckoned as a factor of
great significance in the further development
of our domestic business, to say nothing of the
maintenance of our export trade and foreign
commercial relationships. Further developments and changes have occurred since the
compilation of the League of Nations report
was prepared. The general elements of the
problem, however, remain the same, and at
least a beginning in the task of solving it has
been made by obtaining a consensus of opinion
with respect to the facts and difficulties under,
lying currency and exchange conditions at the
present day.
In our foreign-trade situation the most noteworthy development of the
trade"' ^ ^
Past few weeks has been the
relative decline of our export
balance and the relative increase of our imports from abroad. This is of twofold signifi-
899
FEDERAL RESERVE BULLETIN.
cance. It shows, first of all, that some foreign
countries are recovering their capacity to export goods, the proceeds becoming available for
the settlement of their indebtedness. It also
indicates the existence of actual progress
toward the adjustment of our foreign-trade balance upon a more normal and stable footing.
Figures issued by the Department of Commerce
on September 3 for the trade of July, 1920,
show total exports in that month amounting
to $651,382,000, as against imports of $537,170,000—an excess export balance of $114,212,000. The figures made public for the preceding month (June) had indicated an even
more noteworthy progress toward the restoration of a normal balance between exportation
and importation. While this development has
thus become marked during the past few
months, it was not until a considerable time
after the conclusion of the armistice that
such a change in the war-trade situation began
to appear. The total balance of trade in
our favor from November 1, 1918, up to July
31, 1920, may be stated in round numbers as
$6,062,000,000, being the difference between
$13,910,000,000 of exports and $7,848,000,000
of imports. This may be taken as an average
balance in our favor of $288,669,000 per month
over a period of 21 months. Our export balance for July, 1920, being, as already stated,
approximately $114,000,000, it thus appears
that a striking reduction in the movement of
exports as compared with imports into the
country has been effected, the present balance
being only 40 per cent of the average. The
movement of our export and import figures
may be seen at a glance by comparing the
statements since the beginning of the year 1920
as follows:
1920.
January..
February.
March
April
May
June
July
Total
exports.
Total
imports.
$722,063,790
645,145,225
819,556,037
684,319,392
745,868,402
631,082,648
651,381,827
$473,823,869
467,402,320
523,923,236
495,738,571
431,004,944
552,875,088
537,170,351
Excess
of exports.
$248,239,921
177,742,905
295,632,801
188,580,821
314,863,458
78,207,560
114,211,476
There has also been a very decided change in
the geographic distribution of the existing bal-
FEDERAL RESERVE BULLETIN.
900
ance of trade, as may be seen by comparing the
situation for 1919 with that of the first six
months of 1920. The Federal Reserve Board
in its annual report for 1919 furnished figures
showing our trade balance with some of the
principal foreign countries and with this there
may now be compared the corresponding
figures for the first six months of 1920.
United States trade balance.
[In millions of dollars.]
[Minus sign denotes excess of exports from the United States. Plus
sign denotes excess of imports into the United States.]
1920
(Jan.June.)
With European countries:
United Kingdom
France
Italy
Netherlands
With Oriental countries:
British East Indies
Japan
China
With South American countries:
Argentina
Brazil
1919
1919
(Calen(Jan.dar year.) June.)
—702
-269
-157
- 41
-1,970
- 770
- 384
- 180
-1,044
— 494
- 235
67
+177
- 32
+ 59
+
+
+
241
44
49
+
-
108
63
0
+ 29
+ 63
+
+
43
119
+
18
16
United States movement of gold, first six months of 1920.
[In millions of dollars.]
[Minus sign denotes excess of exports from the United States. Plus
sign denotes excess of imports into the United States.]
1919
1920
1919
(Jan.(Jan.(CalenJune.) dar year.) June.)
European countries:
United Kingdom and Canada
France
Oriental countries:
British India
Japan
China
Hongkong
South American countries:
Argentina
Venezuela
Mexico
+85.0
+ .7
+40.7
- 4.2
+31.3
- .2
- 5.4
- 8.8
-16.3
.1
-34.3
-94.1
-39.1
-30.1
.8
-17.0
.8
+ 6.1
—90.0
-56.5
-11.7
- 5.9
-30.4
- 6.9
- 2.1
i
-13^0
This alteration in trade has not, however,
thus far reflected itself as
ChangeSitU
atton
" ^ ^ h a v e been exPected in
the exchange situation of the
leading countries. Examination of the course
of the exchanges does not indicate that degree
of stability or that promise of permanent
adjustment which might be expected from
the fact that the nation's trade is now moving as steadily as seems to be the case back
toward a more normal relationship. Start-
SEPTEMBER, 1920,
ing with the "pegged7' rate of approximately
$4.76, which existed until March 18, 1919,
rates for sterling have passed through several
periods of fluctuation. Immediately after
the restoration of free trade in exchange
there was a downward movement of storling,
which eventually carried the quotation of that
currency to a low point of $3.65 late in 1919.
During the early months of 1920 there was
another downward movement which carried
the quotation at one time (in February) to
about $3.18, followed by a comparatively
steady recovery during the late spring and
summer of 1920. During June, 1920, the quotation was advanced to a point rather better
than $4, after which there was a gradual downward movement, accelerated during the latter
part of July and carrying the quotation to
about $3.58 at the close of August. The
movement for other European currencies have
followed lines roughly parallel to that of
sterling, francs and lire particularly being
influenced in their movement by that of sterling exchange.
In exchange on oriental countries there has
been since the armistice a movement of quotations differing widely from that of the
European exchanges, largely because of the
high price of silver bullion. The decline in the
value of silver which has set in during recent
months has tended to bring about a material
reduction in the value of the Eastern currencies, irrespective of the circumstance that important changes in merchandise trade balances with the United States have occurred
during the postwar period. Exchange relations between European countries have varied
considerably according to the fiscal and banking conditions of the various nations, but
during much of the time since the armistice
the exchanges of most of these nations with
England have been strongly in favor of the
latter.
An interesting comparison designed to show
the relative position of the London market at
the present time as compared with other countries is furnished by Barclay's Bank in its
monthly review for August:
SEPTEMBER,
London quotations of exchange rates.
During war.
July, 1920.
Parity.
Highest. Lowest. Highest. Lowest.
Alexandria
Amsterdam
Athens
Bombay
Brussels
Buenos Aires
Canada
Christiania
Cologne
Copenhagen
Helsingfbrs
Hongkong
Lisbon
Madrid
Montevideo
New York
Paris
Petrograd
Rio de Janeiro
Rome
Shanghai
Stockholm
Switzerland
Yokohama
97£
12.10
25.22£
10 to gold £
25.22i
47.58
4.867
18.159
20.43
18.159
25.22i
53.28
25.22J
50.98
4.867
25.22J
94.60
(gold) 26.93
25.22J
18.159
25.22J
24.58
12.20
8.97
1/6
1/4
5.01
19.63
4.52
12.65
19.68
12.75
27*
16.60
26.75
5.06
4.525
28.98 24.97
110
405
14
45.65 25.50
19.75
26.40
9.95
18.72
97f
11.20
31.00
1/lH
47.35
58J
4.50
23.85
174
24.30
105
4/OJ
131
24.80
57
3.97
50.20
97J
10.80
30.30
1/9*
43.40
55i
4.20
22.80
147
23.20
90
3/7
11
23.95
55
3.70
45.75
151
71.50
5/7J
17.95
22.25
2/8*
64.00
5/0
17.50
21.75
2/7*
As is well known, the aggregate amount ad„ . ,
vanced by the United States
Foreign loans.
^
-
x
A
.
Government to foreign countries, most of it during the war, and therefore
prior to the armistice, was about $9,565,000,000.
During the year 1919 a British Government loan
of $250,000,000 was offered and placed on the
market in the United States, and since then
other foreign government loans aggregating
abou,t$263,000,000additionalhavebeen offered.
It is understood, however, that of this aggregate of over §500,000,000 of securities perhaps
as much as $100,000,000 were not placed. The
principal debt development of importance now
in prospect is that of meeting the Anglo-French
bond maturities, amounting technically to
$500,000,000 and falling due on October 15.
The technical amount of the maturities has
been reduced by sums which have been generally unofficially stated as amounting to about
$240,000,000, such reduction having been
effected by purchase of the bonds in the open
market. Assuming this estimate to be correct,
there would remain a sum of about $260,000,000 still to be provided for in the near future.
No other government loan liabilities are now in
sight, since the arrangement whereby a suspension of interest payments upon bonds of foreign
countries held by the United States Government
has been agreed upon for a three-year period.
901
FEDERAL, RESERVE BULLETIN.
1920.
The
dated
kinds
States
following statement furnishes a consolicompilation of the foreign loans of all
that have been placed in the United
during the period since the armistice.
Summary, by countries, of foreign Government, State, and
municipal and corporation loans floated in the United
States, Nov. 1, 1918, to Sept. 1, 1920.
[000 omitted.]
State
Govern- and
ment. municipal.
Corporation.
Railroad.
Totai
Public
utility.
Industrial.
Canada
$75,000 $42,487 $71,500
Newfoundland !2500
Brazil
18,500
Great Britain. 250,000
France
45,000
"75,666
Belgium
Italy
25,000
Switzerland... 55,000
Sweden
25,000
Denmark..
15,000
China
5,500
$27,050
1,650
71,500
27,050
Total.... 513,000 120,987
1
" i," 666"
$227,669
l
2,500
18,500
265,000
45,000
76,000
25,000
55,000
25,000
15,000
5,500
27,650
760,169
15,000
Approximate.
According to the League of Nations publication already cited, the breakdown of currency and exchange operations has had an
effect upon international trade which is "even
greater and more harmful than its effect upon
domestic trade." Whereas before the war the
exchange risk involved in international indebtedness was considered a comparatively
minor matter, "the position in this respect is
now entirely changed." Accordingly, as the
League's report points out, l 'Americans hesitate to run the risk of accepting promises in
any currency but dollars and the debtors
hesitate to undertake dollar liabilities." The
same difficulty in international financing exists
in the case of loans to which the United States
is not a party, so that there is apparently
a serious economic barrier to the early development of any sound system of international
finance. In speaking of this situation as a
factor in retarding reconstruction, the League
of Nations document remarks:
"The mere fact that currencies have depreciated would not by itself be a sufficient cause
for alarm. But since through the breakdown
of currencies at this time the whole prewar
economic system is threatened, the problem
becomes at once most urgent and difficult.
902
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
The trouble is now twofold. In the first place, the figure thus held in suspense, the balance
all currencies have lost their stability, and some computed from such data as are now availare almost valueless. In the second place, the able would seem to be at least $3,000,000,000.
very countries which, like Austria, are short
of essential commodities are unable to obtain From this, of course, must be deducted the
credit. Instability of currency helps to de- amount of indebtedness to European and other
prive these countries of the possibility of countries which existed at about the time of the
obtaining credit, and lack of credit prevents armistice and which was then being carried
the stabilization of the currency.'7
upon the books of bankers and business men.
Reference has already been made to the In exactly what form current indebtedness is
,. , merchandise balance
of the being maintained is of course uncertain. To
T .
International
.
balance of United United States, and it has been some extent it consists of balances on the
states
*
noted that this balance is books of foreign banks which have been estabgradually returning toward normal. Existing lished there in favor of American creditors and
conditions, however, grow out of the fact that which they have not withdrawn because of the
a large part of the balance which has devel- unfavorable exchange conditions. To some
oped during past months has not been financed extent it consists of merchandise balances,
on a solid basis. The conditions which have which always amount to a considerable sum
existed during much of the time since the but which at the present time are undoubtarmistice are illustrated by the fact that so edly far greater than usual because of the
few foreign securities have been placed in this longer extension of credit which has been
country during that period. Exactly how granted by not a few export houses in order
large the balance above referred to may be at that they might relieve their foreign customers
the present time is a matter of estimate and to of pressure for immediate funds so far as pracsome extent of conjecture. But taking into ac- ticable. A part of the indebtedness consists
count the merchandise balance in our favor of short-term obligations of one sort or another
since the armistice amounting to $6,062,000,000 which are steadily maturing and must be
and offsetting it with the advances made by the taken care of out of the proceeds of current
United States, which since the armistice may exportations from European countries to the
be roughly stated at $2,500,000,000, the small United States or of services. It is this great
volume of foreign loans placed in the United accumulation of balances which in large
States during a like period amounting to measure operates to keep the exchange market
$660,000,000, and estimates which may be in an unstable and unsatisfactory condition.
approximately made of the amounts of Amer- At any given moment a considerable volume
ican capital invested during the past few of exchange may be suddenly thrown upon the
months in Germany and other countries, it market, with the result of depressing quotastill remains true that the international trade tions and bringing about an undesirable and
balance in favor of the United States for the disturbing irregularity and uncertainty in the
financing of which no satisfactory provision has exchange market. The existence of this outbeen made in the form of investment obliga- standing current debt, for which no satistions is a very large one. Account must be factory provision has been made, may be extaken of a net loss of $400,000,000 of gold by pected to continue to exert a depressing influthe United States during the period and of pay- ence upon quotations and presents, therefore,
ments received for the service of our merchant a disturbing factor in postwar international
ships to foreigners, as well as of the by no means finance.
While it has been hoped that during the
inconsiderable disbursements of the United
current year there would be
States Government on account of its military and
naval forces stationed abroad, besides amounts
: d e c i d e d P r o ? r e s s t o w a r d improvement in currency and
of goods of American origin held unsold abroad.
While there can be no absolute certainty as to credit conditions in foreign countries", it may
903
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
seriously be doubted whether much progress in
that direction has actually been made. There
had been a continued growth of currency, with
resulting reaction on the exchanges; in nearly
all of the European countries up to a date near
the close of 1919, as seen in table A following,
issued by the League of Nations.
In order to furnish data more nearly contemporary, the following table B has been prepared to afford a basis of comparison of note
circulation in leading countries before the war
and at present. As is evidenced, there is no
direct comparison between the two tables.
TABLE *A.—Currency expansion and rates of exchange.
Expansion of
currency of
all kinds.
Rates of exchange on
London; per cent of
parity.
ComProporAt date
pared
At end
with tionate shown Nov. 7, of Aufigures
1913
gust,
in col1919.
(U. K.
(1913
1920.1
umn 1.
=100). =100).
United States (August, 1919).
Spain (September, 1919)
Japan (May, 1919)
Switzerland(September, 1919)
Denmark (August, 1919)
United Kingdom
Netherlands(September,1919)
Sweden (September, 1919)...
Norway (August, 1919)
France (September, 1919)
Italy (May, 1919)
Germany (October, 1919)
1
Added to original
171
185
223
230
240
244
270
275
305
375
435
875
70
76
91
94
98
100
111
113
125
153
178
359
-86.4
87.0
92.3
93.0
106.7
85.3
84.1
84.5
91.5
107.5
73
94
73
86
136
92.2
94.1
100.9
137.6
150.4
435.1
90.8
97.2
100.9
148.0
183.5
707.3
92
97
137
204
303
857
table for comparative purposes
TABLE B.—Increase in note circulation.
[In millions of currency.]
Country.
United States * . . .
United Kingdom.
France
Germany 2
Italy3
Do 4
Belgium
Spain
Japan
Sweden
Netherlands.:
Denmark
Norway
Switzerland
Date.
Jan. 1,1914
Dec. 30,1913
Dec. 26,1913
Dec. 31,1913
do
.do.
.do.,
.do..
.do.,
.do.
.do.
..do.
..do.
..do.
Amount.
SI ,069.1
£
46.7
Fr. 5 ,713.6
M. 2 ,593.4
L. 1,764.4
L. 2 ,782.6
Fr. 1 ,049.8
Pes.l ,931.3
Yen 426.4
Kr. 234.5
Fl. 333.8
Kr. 151.6
Kr. 106.8
Fr.
313.8
Per cent.
100
100
100
100
100
100
100
100
100
100
100
100
100
100
Date.
Aug. 1,1920
Aug. 11,1920
Aug. 19,1920
July 31,1920
June 30,1920
Sept. 30,1919
Aug. 5,1920
Aug. 14,1920
July 31,1920
do
July 26,1920
July 31,1920
Aug. 16,1920
July 31,1920
Amount.
$4. 361.1
£
464.1
Fr. 37. 899.8
M. 69, 096.5
L. 13, 827.6
L. 16, 356.2
Fr. 5, 464.6
Pes. 3, 982.1
Yeni: 202.4
Kr.
724.8
Fl. 1.,017.2
Kr. 541.2
Kr.
457.3
Fr.
951.1
Compared
with 1913—
per cent.
407.9
993.8
663.3
2,664.3
783.7
587.8
520.5
206.2
282.0
309.1
304.7
357.0
428.2
303.1
1
Includes amounts of United States notes, Treasury notes, and national-bank notes in circulation on Jan. 2, 1914, and amounts of Federal
Reserve notes, Federal Reserve Bank notes, United States notes, Treasury notes, and national-bank notes in circulation on Aug. 1, 1920, as shown
by the
Treasury circulation statements.
2
Including Reichsbank and war loan bank notes, but excluding Treasury notes and notes of other four banks of issue.
3
Figures
for the Bank of Italy only.
4
Figures for the three banks of issue (Bank of Italy, Bank of Naples, and Bank of Sicily) and the Italian Government.
It will be observed that credit expansion has to limit the commercial commitments the
continued in practically all countries through- banks are willing to make.
out the year 1920 instead of there being, as
With respect to the English banking situait had been hoped at the opening of the year tion it appears that during the first six months
that there might be, a restoration of sounder of 1920 deposits of the five largest joint stock
conditions. As has recently been remarked by banks show an increase of 2.3 per cent, as
an American institution engaged in foreign compared with an increase of 3 per cent
trade financing, " there is a condition of dis- during the last half of the year 1919 and 15.4
organization of merchandise credit machinery" per cent during the first half. "Advances"
in many parts of the world, and "over the (largely on war securities) made by this same
largest part of Europe banking machinery group, of banks, however, show an increase of
suffers from disorganization * * * in the about 14 per cent since the first of the year,
sense and to the extent that the responsibility which compares with an increase of 34 per
of the bankers forbids them to carry on certain cent in the second half of the year 1919. It
banking functions absolutely necessary to the should be noted, however, that the increase
well-oiled movement of merchandise financing in the item "Advances" has been partially
on a normal basis." Unfortunately, such offset by the decrease in the item " Other
efforts at "deflation" as have been made do investments."
not seem to affect the growth of public loans
With respect to the English currency situaand currency which have continued in many tion, it appears that so far from there having
countries to expand, but they tend merely been a decrease in circulation, the volume of
904
FEDERAL RESERVE B U L L E T I N .
currency (including both Bank of England and
currency notes) has increased by 5.4 per cent
from the opening of the current year up to
July 28, as compared with an increase of 4.7
per cent during the second half of the year 1919.
For the United States the course of Federal
Reserve notes and of reserve holdings at
Federal Reserve Banks since the beginning of
the year 1920 may be reviewed as follows:
[In millions of dollars.]
Federal
Reserve
Total
notes in
reserves.
circulation.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
2,851
3,020
3,048
3,075
3,107
3,117
3,120
3,204
30,1920
27,1920
26,1920
30,1920
28,1920
25,1920
30,1920
27,1920
2,074
2,083
2,057
2,071
2,092
2,109
2,129
2,128
These figures must, however, be considered
in connection with data showing the member
banking situation, and accordingly the following table has been prepared to indicate the
general trend of the banking position during
the past month:
[In millions of dollars.]
Date.
Aug. 6,1920
Aug. 13,1920
Aug. 20,1920
Aug. 27,1920
Loans
(including
rediscounts)
Number
and
inof banks
reporting. vestments
(including
United
States
securities).
815
818
818
820
16,813
16,829
16,883
16,931
Rediscounts
and bills
payable
with
Federal
Reserve
Banks.
2,022
2,050
2,086
2,128
Net
demand
deposits.
11,312
11,392
11,256
11,261
The test of the improvement of the banking
position of the country generally is not to be
sought in figures of total volume of credit but
in the character of the obligations created
and carried in the portfolios of both member
banks and Federal Reserve Banks. In analyzing the figures consideration should be given
to the fact that there have been material
changes in the general character of banking
demand. As noted a month ago, speculation
in commodities has been largely checked in
many parts of the country, while the check
already administered to stock and securities
speculation has necessarily taken a considerable load off the banking and credit
organization of the country as compared with
SEPTEMBER, 1020.
1919. The general movement in the portfolios
of the Federal Reserve Banks is toward the
reduction of war paper and the increase of
commercial paper. The latter movement is
particularly marked at the moment because of
the unquestioned obligation of the Federal
Reserve System to meet the current seasonal
requirements of productive industry ungrudgingly in the present critical period of business
transition. Indiscriminate liquidation of credits has not been the object of the recent policy
of the Federal Reserve System. The primary
concern of the Federal Reserve Board now, as
always, has been to make sure that the essential credit needs of American industry are
being met. But, because of the extended condition of the banks of the country, the Federal
Reserve System has sought to accomplish its
object, so far as might be found practicable, by
taking measures to promote the liquidation of
speculative and inactive credits which were
serving no necessary purpose, in the expectation that the funds thus liberated would be
made available for the use of current industry
and the credit needs of industry thus be provided for in a normal and healthy way, and
without involving the danger of further and
avoidable impairment of the reserve strength
of the Federal Reserve System.
In harmony with this attitude, the Federal
Reserve Board has, however,
Essential loans.
. , ,i
,-,
-, ,
,,
consistently adhered to the
policy of leaving entirely in the hands of local
banks the decision what loans are to be regarded
as nonessential or "speculative." Governor
Harding has outlined the attitude of the Board
on this subject, stating that "it has never
undertaken to classify any business or industry
as essential or nonessential and does not intend
to do so." Governor Harding has further called
attention to the fact that "expansion of undue
bank credit has been restrained," while he also
noted that "the fact that the general volume of
loans and discounts remains practically the
same would seem to indicate that the solid
and genuine business interests of the country
have encountered no serious hardship." Continuing his discussion of the general credit
situation, Governor Harding remarks:
"The Federal Reserve Board has consistently from the beginning of the effort to curb the
SEPTEMBER, 1920.
tendency to headlong resort to credit operations
simply urged the local banker to study his client
thoroughly, and the Board has never undertaken to say what class of loans should be
held to be necessary or otherwise. The Board
is too far removed from the actual detailed
situations involved to undertake to do this
and has relied on the consistent information
and judgment of the local banker to accomplish the Board's purpose. * * * The difficulty is no doubt that many critics of the Board
think that the same rules of action employed
during the stress of the war and the selection
of preferred war business for credit assistance
are now in operation. This is entirely untrue,
and the reports coming daily to the Board
from the Federal Reserve Banks and from
many sources of commercial intelligence distinctly contradict it."
The extent to which the unsatisfactory, not
to say disordered, state of credit
Prices and
-,
-,. -, -, ,
an
exchanges.
d currency disclosed above m
the review of the situation in
Europe has affected the course of the foreign
exchanges in the American market in recent
months is not susceptible of accurate measurement, but their failure to show recovery in
the face of reduction of trade balances against
the leading European countries suggests the
conclusion that currency depreciation and
banking expansion is the most serious present
cause of disturbance in the foreign exchanges.
The fluctuations of exchange due directly
to changes in currency conditions are of vital
importance in competitive trade because of
their influence on prices. Those countries
whose currency is depreciated in terms of
that of others presumably find it more costly
to buy goods in countries where rates are
high, while on the other hand the export trade
with those countries whose exchange rates are
low is subject to the difficulty of obtaining
settlement from customers, while again competitive exporters in low-exchange countries are
temporarily aided in selling their goods in
neutral markets. This is a situation which the
United States has been obliged continuously to
meet for some time past. Inflation and uncertainty in the currency and banking systems
of different countries and embargoes on the
exportation of gold tend to aggravate such
instability of exchange, while the recurring
necessity of meeting maturities in international
905
FEDERAL RESERVE BULLETIN.
indebtedness likewise tends to make conditions
more difficult.
The current situation with respect to price
developments
is
naturally
andrabroadh°me c l o s e l y a l l i e d t o t h e exchange
situation, not only because it
reflects in a complex way the results of inflation and the changes in the value of foreign
currencies, but also changes in the volume of
production. Exactly how far fluctuations in
prices are due to changes in volume of production and how far to banking inflation is not
capable of accurate determination. There can,
however, be no difference of opinion as to the
fact that changes in the levels of prices in different countries are influenced by all of these
factors and that such changes when compared
with changes in the price levels in other countries necessarily influence the flow of international trade profoundly. Without doubt the
rapid and extensive fluctuations in the value of
exchange which had been brought about by
alterations in currency value, by Government
fiscal operations, and by the " dumping" of large
quantities of bills on the market because of the
fear of their holders that loss might result from
continuous holding of them, have profoundly
disturbed prices from time to time and may be
regarded as factors explanatory of the extremes to which price quotations have gone.
Index numbers for some of the principal countries show that prices are much higher now than
they were approximately a year ago. A review of such numbers for the past few months,
however, shows that the tendency is distinctly downward both in England and in the
United States. A similar movement is also
to be noted in various continental countries,
although obscured there to a greater extent
through the existence of currency expansion.
Wholesale price indexes.
August,
1919.
Sweden
Japan
.
Italy
India
France
Canada
United Kingdom..
Australia
United States
321
251
368
204
347
223
250
182
226
April,
1920.
354
300
679
200
584
261
13
-'17
26f.
Mav,
1920.
361
272
659
210
550
263
305
225
272
June,
1920.
366
248
614
206
493
258
300
233
268
July,
1920.
364
239
209
492
256
299
262
906
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
It must not be overlooked that in a long Exports of United Kingdom, France, and Italy during 1919
and to June, 1920.
view of the problem the ess en[In millions of dollars at gold parity.]
tkl bask
°f b 0 t h c u r r e n c 3 r a n d
exchange improvement is to be
sought mainly in the state of industry and the
recovery of productive capacity. Accordingly, chief attention has been centered for the
past few months upon the activity of industry
in the several countries, and as a result of
such activity the recovery of their export
capacity.
During the past few months the Board has
published production data for the United States
whose figures have shown a tendency toward
increase not only in business activity but in
physical output of goods in certain basic industries. The figures for the current month are
presented in the following table:
June, 1920.
July, L920.
July, 1919.
RelaRelaTotal. Relative. Total. tive. Total. tive.
Receipts of live stock at
15 western markets (in
thousands of head)
Receipts of grain at 17 interior centers (in thousands of bushels)
Shipment of lumber reported by 3 associations
(in millions of feet)
Bituminous coal production (in thousands of
short tons)
Anthracite coal production (in thousands of
short tons)
Crude petroleum production (in thousands of
barrels)
Pig iron production (in
thousands of long tons)..
Steel ingot production (in
thousands of long tons)..
Cotton consumption (in
thousands of bales)
Wool consumption (in
thousands of pounds)
5,536
100
78 108,713
100
73
909
100
45,527
110
41,205
100
99
7,785
100
7,803
100
37,295
110
38,419
113
33,894
3,044
125
3,067
126
2,429
100
V
100
2,981
119
2,803
112
2,508
100
556
109
525
103
510
100
40,680
74
32,372
59
54,973
100
5,064
91
4,632
80,058
74
84,331
685
75
661
44,463
108
7,754
84
While the data relating to production in
foreign countries are scanty and inadequate at
the present time, so that statistical comparisons, either with former years or with conditions in the United States, can not be drawn,
•there are data which throw a valuable light on
the general economic situation as influenced by
productive capacity. The first set of facts
which may be considered to advantage relates
to the export power of various nations. Facts
as to Great Britain, France, and Italy are
stated in the following table:
United
King-1
dom.
January
February
March
April.
May
June
July
August.
September
October. . .
November
December
January
February
March
April.
1919.
France.2
67
68
93
82
98
110
253
253
302
350
369
372
375
438
• 400
480
523
570
134
139
(3)
134
Italy.
44
51
60
59
57
79
72
88
110
124
113
147
1920.
639
528
636
616
679
664
May
June.......
139
255
259
266
233
349
83
103
115
113
12 Including reexports.
Figures based on 1918 value units.
a A change in the value units employed in calculating the figures for
July, August, and December makes them incomparable. French
exports for the year 1919 valued at 1918 rates amount to $1,682,000,000.
Proceeding on the assumption that exports
represent a surplus in industrial output which
can be spared by the population and shipped
abroad, there is thus seen to be a distinct advance from a period shortly after the armistice up to the present time in each of the three
countries which are taken as typical. Aside
from the export figures, it is still difficult to
get complete data relating to economic and
productive conditions, but some important
features of the situation in several of the European countries may be briefly reviewed.
In the following table is shown monthly
production of coal, pig iron, steel ingots and
castings, and ship tonnage under construction
for the first six months of 1920 in the United
Kingdom:
Monthly average, 1913..
1920
January..
February.
March
April
May
June
July
Steel
Ship toningots nage under
construcand
tion.
castings.
Coal.
Pig iron.
Metric tons.
24,336,000
Metric
tons.
869,000
649,000
676,000
656,000
710,000
655,000
738,000
726,000
750,000
766,000
811,000
854,000
779,000
848,000
745,000
800,000
Date.
2
22,657,000
19,435,000
19,505,000
17,131,000
2 22,131,000
19,048,000
2 22,926,000
Metric
tons.
Gross
tons.
1
2,003,000
3,394,000
3,578,000
1
Average of 4 quarterly estimates, Figures following are estimates
taken
at the end of each quarter.
2
5 weeks in the month.
907
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
French coal production.
In countries such as France which sustained
Tons.
severe industrial devastation, evidence of Monthly average, 1913
2,982,500
recovery is to be sought in the work of eco- January, 1920
1, 749, 389
nomic restoration rather than in conven- February, 1920
1, 557, 787
March, 1920
1,451,506
tional figures of national production.
1, 426, 684
Among the encouraging factors which indi- April, 1920
May, 1920
806,285
cate economic recuperation in France, as set June, 1920
1, 896, 235
forth by M. Tardieu in a recent statement, July 1-20, 1920...;
1,162,553
the most striking are those in regard to the
Statistics of the Belgian production of coal,
invaded districts. The committee of the
pig iron, manufactured iron, steel ingots and
devastated regions has recently announced
castings, and crude zinc are presented in the
that 74 per cent of the population driven out
following table:
of these regions by the war has returned, that
98 per cent of the municipal governments
Steel
Manuingots
Crude
destroyed have been reestablished, and that
Pig iron. factured
Coal.
Date.
and
zinc.
iron.
castings.
83 per cent of the schools existing before the
war have been reopened. Of the 574,744
Metric
Metric
Metric
Metric
tons.
tons.
tons.
average, Metric tons.
tons.
houses in the region which were one-half or Monthly
25,362
207,058
1,910,710
205,552
1913
17,910
wholly destroyed, 13,100 have been rebuilt and
1920
40,820
1,869,635
15,318
56,006
4,060
178,500 repaired, and of the arable ground January
51,773
16,858
February...
1,683,750
70,848
4,560
14,525
66,009
78,985
March
2,006,160
torn up either by shell fire or by troops, 38 April
5,841
15,527
100,274
75,686
1,900,750
6,927
17,537
91,842
per cent has received its first plowing. The May
June
main lines of all the railroads in this district
have been repaired and half the branch lines NOTE.—Figures obtained from Economic Review of May 26 a n d
June 9.
Iron Trade Review, Aug. 12.
are now in working order. Of the 11,500
factories destroyed, 3,540 are working again
Coal production in Germany is as follows:
and 3,812 are in process of rebuilding. There
[Taken from the Economic Review, May 19, 1920.J
were 72 blast furnaces in operation in this
district in 1914; in 1920 17 are in operation
Coal
Lignite
Coal.
Lignite.
Coke.
bribriand 20 more almost ready to be lighted.
quettes. quettes.
Crops throughout France are reported to be
much better in 1920 than in 1919. The fol-Totaloutputin March,
1920, excluding the
Tons.
lowing table shows the increase in the area Saar district and Tons.
Tons.
Tons.
Tons.
10,146,299 7,901, 5951,871,332 376, 1181L, 666,594
the Palatinate
Total
output
from
sown to grain:
1
[In hectares.]
1919
Wheat
Meslin
Rye
Barley
Oats . .
4,486,000
82,550
734,090
102,590
668,440
1920
4,601,000
92,780
792,760
140,170
741,760
Flax acreage has trebled since 1919, and the
prospects for the flax and hemp harvests are
excellent. The industrial activity of the country is indicated by the many fairs and expositions which have been held to promote internal
commerce. French coaJ production is, however, still below its prewar level, although since
the prolonged strike in May it has begun to
improve, as is shown by the following table:
January to March,
1920..;
Total
output
in
March, 1919, excluding Alsace and Lorraine but including
the Saar district
and the Palatinate..
Output of the Saar
district and
the
P a l a t i n a t e in
March, 1919
Total output from
January to March,
1919, including that
of the Saar district
and the Palatinate..
Output of the Saar
district and
the
P a l a t i n a t e from
January to March,
1919
Total
output
in
March, 1913, including that of Alsace
and Lorraine
OutDut of Alsace and
Lorraine, the Saar
district, and
the
P a l a t i n a t e in
March, 1913
1
30,699,793 25,009,552 5,712,810 1,057,268 5,256,611
10,120,104 7,423,675 1,912,101
762,251
72,915
29,113,702 21,054,443 5,395,251
2,407,475
953,095 4,304,248
208,118
15,413,378 6,706,2212,744,350
1,435,895
362,4761,541,860
1,444,816
462,0141,627,304
908
FEDERAL RESERVE BULLETIN.
The relation of production, and as a result
export power, to exchange quotations is in all
ordinary or normal conditions a very direct
one. It had therefore been supposed by some
that as export capacity increased exchange
would move back toward normal. Experience
during the past few months has not shown that
this is necessarily the case, since even in those
countries such as Great Britain, which were
largely increasing their ability to ship goods,
there has been at times a simultaneous reduction in the value of exchange. Even if
there were at the present time an absolute
balance of exportation and importation between, say, the United States and Great
Britain, this would not necessarily restore the
old relationship in the exchanges of the two
countries because of the profound effect exerted by depreciation of currency, as measured
in terms of the gold standard, and the local
credit situation in the different foreign countries.
It is only in the relationship of countries
on the gold standard and where the currency
and other credit obligations are as a matter
of fact freely converted into gold that the
balance of exports and imports is the controlling factor in the course and rate of the
foreign exchanges.
The difficulties to which international lending
and financing are subjected by
trade r e a s o n o f b a d c u r r e n
°y a n d
banking conditions in the several countries have been partially responsible
for the slowness with which foreign trade
banks have been developed. In the United
States thus far there has been but one organization chartered under the so-called Edge
Act, and while in foreign countries, such
as Canada and Great Britain some progress
has been made toward the establishment of
new branches abroad, this progress has been
relatively slow and hesitating. Branches of
all financial institutions, both those existing
before the war and maintained thereafter, and
those newly established, have found themselves seriously handicapped by the exchange
uncertainties which have prevented them from
making advances to traders and producers in
the countries in which they were situated. In
these circumstances American banks and
SEPTEMBER, 1920
bankers have been able to see but little advantage in the foreign expansion of their institutions and have been disposed to avoid losses
which might be incurred through the making
of large commitments expressed in the paper of
the countries where their branches might be
located. Great Britain in the effort to expand
her foreign trade and restore it to a prewar
basis has probably proceeded more actively
than any other country, her dealings, however,
being primarily expressed in terms of sterling,
as was the case with prewar trade.
For July, 1920, British trade returns are
reported to show a growth to £137,000,000
from £65,000,000 a year earlier. There has
been during recent months a steady reduction
of the adverse balance of trade from which
Great Britain was suffering at the close of the
war. While other European countries have
not succeeded in paralleling the advance of
Great Britain in this regard some of them have
made decided progress. What has been done
in this direction, however, has been largely for
the purpose of meeting immediate necessities
and obtaining immediate further supplies of
goods, and has not been of sufficient amount to
furnish even the basis for permanent investment or the improvement of production
abroad. Although European banks have proceeded actively in the making of acceptances
and the development of commerce, they have
not been able to furnish the capital which was
needed for foreign investment, while the general
financial stringency throughout the world has
rendered it exceptionally difficult to obtain
capital upon terms which would be profitableFor all these reasons the relation of foreign
banks to export trade has been different from
that which existed before the war, because at a
time when there was currency stability and
uniformity it was possible to work upon an
established basis of value and hence to offer
securities to the investor with an assurance
that they would be paid in a form that would
return him the value he had loaned.
There has been comparatively little change
in the international distribution
of
Sold d u r i n S t h e P a s t ^w
months. The following table
shows the reserve position of some of the prin-
SEPTEMBER,
FEDERAL RESERVE BULLETIN.
1920.
909
cipal institutions, as it has developed during regarded as practically out of the question.
the past year and a half.
The questionnaire distributed by the League
of Nations, already referred to, contained an
Central bank deposits, total note circulation, and gold
inquiry as to the possibility of international
reserves in Great Britain, France, and Italy.
action or policy aiming at reorganization of
[In millions of dollars.]
the currency and foreign exchange situation
of the various countries, and brought forth the
Great Britain.
Bank of France. Bank of Italy.
general opinion that:—
End of month.
" I t would, indeed, be useless to attempt to
construct and put into operation a new currency system so long as the essential data are
continuously and rapidly changing under the
1919.
January
1,834
6,173
1,741 173 action of forces which would upset the equiFebruary...
1,874
6,314
1,730 172 librium of any system however perfect.
In
March
1,955
6,441
1,768 172
6,558
April
2,071
1,812 172 fact, it seems evident that something approach6,574
May
2,051
1,797 172
6,647
June
2,047
1,841 170 ing currency stability must be attained before
6,760
July
2,035
1,948 170 currency reorganization by legislative action
7
6,772
August
1,999
1,998 170
6,907
September..
7 2,009
2,130 170 is attempted.
The conditions of stability have
7,136
October
2,040
2,307 170
7
been
clearly
indicated
by the economists and
7,223
November..
2,057
2,363
170
7
7,194
December..
2,168
2,449 170 others who have analyzed the causes of in1920.
stability; the most important are the termina7
756
January
7,253
2,014
2,314 170
7
February...
7,313
2,031
2,266 170 tion of inflationist methods of financing Gov7
March
7,251
2,115
2,325 170 ernment expenditure, the settlement of inter7
April
7,274
2,134
2,421 170
7
May
7,318
2,199
2,495
170 national balances of trade and payment by
7
June
7,246
2,258
2,669 170 means involving a far less considerable strain
7
651
7,275
July
2,281
than that which at present presses upon the
1
currencies of borrowing countries, the eliminaPublic and other deposits.
2
Currency and Bank of England notes.
tion of the large and incommensurate potential
-Including $138,695,000 held by the exchequer.
4
Includes Government and other deposits, also dividends unpaid.
cause of the disturbance of currency values
5
Exclusive of gold held abroad.
6
Composed of the following three items: (1) Debiti a vista; (2) De- constituted by the large foreign holdings of
positi
in conto corrente iruttifero; (3) Conti correnti passivi.
7
Exclusive of Bank of England notes held by the exchequer as reserve some currencies, and the internal private
against currency notes outstanding. (In this connection attention may hoarding of others, and the removal of much of
be called to the table furnished on p. 667 of the BULLETIN for July, 1920,
where the note circulation of the United Kingdom at the end of May, the uncertainty which at present exists as to
1920, is given as £459,780,000. This figure contains an error, as it inand financial clauses
cludes twice over £7,850,000 bank notes held in the currency note the effects of the economic
reserve.)
of the treaties of peace.'7
7
In these circumstances it is not strange that
Government control of specie movement has
continued in practically all western countries
except the United States. Cessation of Government oversight would probably result in
loss of considerable parts of the specie stocks
of various countries and might thus embarrass
and delay the eventual restoration of sound
currency conditions. Although the reserve
holdings of many of the foreign banks are considered entirely inadequate to the resumption
of convertibility under present conditions, they
might serve as a satisfactory beginning in that
direction should it be possible to bring about
a more normal international trade relationship
and a greater stability of public finance.
Nevertheless, at the present time the restoration of conditions that would permit the free
movement of gold and of specie in general is
9149°—20
2
Apparently there is thus far no definite
movement looking in the direction of a restoration of currency and banking conditions to
anything like the position which they occupied
before the war, notwithstanding that an eventual adjustment and the termination of stringent Government control in the various countries will be essential to the attainment of
permanent stability.
During the month ending August 10 the net
outward movement of gold was
Gold and silver
$2,208,000, as compared with a
movements.
net inward movement of $11,517,000 for the month ending July 10. Net
imports of gold since August 1, 1914, were
$706,376,000, as may be seen from the following exhibit. (See next page.)
England furnished $14,084,000, or over threefourths of the $18,254,000 of gold imported'
910
FEDERAL RESERVE BULLETIN.
during the monthly period ending August 10,
Canada, Colombia, France, and Mexico furnishing most of the remainder. Of the gold
exports, amounting to $20,462,000, over threefourths, or $15,582,000, was consigned to
Japan, $2,100,000 to the French East Indies,
and the remainder principally to Hongkong,
British India, Mexico, and Canada. Since the
removal of the gold embargo on June 9, 1919,
total gold exports have amounted to approximately $579,515,000. Ot this total, $146,555,000 was consigned to Argentina, $126,027,000 to Japan, $66,084,000. to Hongkong,
$55,396,000 to China, $40,411,000 to British
India, $29,778,000 to Spain, and the remainder
principally to Uruguay, Mexico, the Dutch
East Indies, the Straits Settlements, Canada,
and Venezuela.
[In thousands of dollars.)
Imports.
Aug. 1 to Dec. 31, 1914
Jan. 1 to Dec. 31, 1915
Jan. 1 to Dec. 31,1916
Jan. 1 to Dec. 31, 1917
Jan. ltoDec.31,1918
Jan. 1 to Dec. 31, 1919
Jan. 1 to Aug. 10, 1920
Total
Exports.
Excess of
imports
over
exports.
23,253
451,955
685,745
553,713
61,950
76,534
152,340
104,972
31,426
155,793
372,171
40,848
368,185
225,719
181,719
420,529
529,952
181,542
21,102
1291,651
173,379
2,005,490
1,299,114
706,376
i Excess of exports over imports.
During the same monthly period the net
outward movement of silver was $468,000 as
compared with a net inward movement of
$2,235,000 for the month ending July 10.
Net exports of silver since August 1, 1914,
were $453,832,000, as may be seen from the
following exhibit:
[In thousands of dollars.]
Imports.
Aug. 1 to Dec. 31, 1914
Jan. 1 to Dec. 31, 1915
Jan. 1 to Dec. 31, 1916
Jan. 1 to Dec. 31, 1917
Jan. 1 to Dec. 31, 1918
Jan. 1 to Dec. 31, 1919
Jan. 1 to Aug. 10, 1920
Total
Exports.
Excess of
exports
over
imports.
12,129
34,484
32,263
53,340
71,376
89,410
64,011
22,182
53,599
70,595
84,131
252,846
239,021
88,471
10,053
19,115
38,332
30,791
181,470
149,611
24,460
357,013
810,845
453,832
Mexico furnished $2,053,000, and Peru and
China each $1,000,000 of the $5,494,000 of
SEPTEMBER, 1920,
silver imported during the monthly period
ending August 10, most of the remainder
coming from Colombia, Canada, Bolivia, and
the Dutch East Indies. Of the $5,962,000 of
silver exports, $1,899,000 was consigned to
Hongkong, $1,657,000 to England, $1,065,000
to China, and the remainder principally to
Japan, Canada, and Mexico.
Moderate liquidation of the principal loan
and investment accounts, acsitua«on.an " g companied by a substantial
reduction in net demand deposits and a further increase in accommodation at the Federal Reserve Banks, are the
main developments in the banking field as
indicated by the weekly condition statements
of about 815 member banks in leading cities
for the period July 16 to August 20.
Holdings of Government securities showed
a downward course until the last week under
review, when, as a consequence of the August
16 issue of about 157 millions of loan certificates, certificate holdings increased by 50
millions, as against a gradual reduction in
these holdings by 79 millions during the preceding four weeks. Loans secured by Government war obligations show a steady reduction, amounting to over 40 millions for the
period, loans backed by corporate securities
declined about 41 millions, while other loans
and investments, including commercial loans
and discounts, increased by about «66 millions.
Total loans and investments of reporting institutions, accordingly, show a further decrease for the period of over 50 millions.
Accommodation at the Federal Reserve Banks
for reporting member banks increased during
the five weeks from 1,953 to 2,086 millions,
or from 11.8 to 13.6 per cent of the reporting
banks7 total loans and investments. For the
member banks in New York City an increase
in this ratio from 12.1 to 13.6 per cent is
shown.
Principal changes in the condition of the
Federal Reserve Banks between July 23 and
August 20 include an increase of nearly 200
millions in the holdings of discounted bills, the
larger share of this increase, viz, 130 millions,
being represented by the increase in the holdings of ordinary commercial paper, as distinct
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
from paper secured by United States war obligations, including Treasury certificates of the
more recent issues (so-called war paper).
Holdings of purchased acceptances, largely
bankers' bills, show a further reduction of 32
millions, while Treasury certificates on hand
declined by about 25 millions, this decline representing largely the amount of special certificates
redeemed by the Government during tho period.
Substantial increases are shown in the volume of interbank discounting, the total holdings of paper discounted for other Federal
Reserve Banks showing an almost continuous
increase from 123 millions on July 23 to 166
millions on August 27. The latter amount was
held exclusively by the Boston and Cleveland
banks. Of the total discounts held by the latter
bank, the share held for other Federal Reserve
Banks was slightly larger than the amount of
paper held under discount for its own members,
while in the case of the Boston Federal Reserve
Bank this share was about 36 per cent. No
change is shown in the list of rediscounting
institutions, which includes the Federal Reserve
Banks of Richmond, Atlanta, St. Louis, Minneapolis, Kansas City, and Dallas. It is notable that the total increase of 33 millions in the
holdings of paper, rediscounted for other Federal Reserve Banks, is about equal to the aggregate increase in rediscounts with other reserve
institutions shown by the four Federal Reserve
911
Banks which continued to apply progressive
discount rates, viz, the banks of Atlanta,
St. Louis, Kansas City, and Dallas, this increase
falling about 11 millions short of the increase in
the total discounts for their member banks.
Holdings of acceptances purchased by the
Philadelphia, Cleveland, and San Francisco
banks from the New York and Chicago banks
show a further increase from 42.5 to 48.9
millions.
Both Government and members' reserve deposits show some increases, with the consequence that net deposits at the close of the period, 1,718 millions, were about 32 millions larger
than five weeks earlier. Federal Reserve note
circulation shows a further expansion of over
85 millions, while Federal Reserve bank note
circulation increased by nearly 11 millions.
The banks' gold reserves, in consequence of
further export withdrawals, declined 11.5 millions, while the loss in total cash reserves, because of further silver deposits by the Government, was slightly over 6 millions. The banks'
reserve ratio shows a gradual decline for the
period from 44.4 to 43.2 per cent.
A vacancy occurred in the membership of
the Federal Reserve Board on
Personnel.
August 10, when the unexpired term to which Mr. Henry A. Moehlenpah
was appointed by the President September 5,
1919, came to an end.
912
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
BUSINESS, INDUSTRY, AND FINANCE, AUGUST, 1920.
Continued readjustment of economic and
business conditions generally has been the
characteristic feature of the month of August.
There are already indications that the transition period is nearing a halt and that an improvement of the general situation is in sight.
Nevertheless, there is still much to be done
before business, prices, and industry can be regarded as having settled down upon a stable
3asis. In manufacturing districts Federal Reserve agents report dullness of business accompanied by an unusual degree of hesitation on
the part of middlemen and dealers. This is
the result of reaction among consumers who
have refused to pay excessive prices and of
some tendency to unemployment in various
directions due to the letting down of demand.
In the agricultural regions the promising crop
prospects have given a much more hopeful turn
to affairs and have tended to minimize the
broader questions of price adjustment, money
rates, and industrial unrest. In those parts of
the country the paramount idea is production
upon a large scale accompanied by improvement of transportation and better labor conditions. Where the processes of distributing
and financing are more important, the prospect
of betterment is less immediate, although
fundamental conditions are slowly improving
and the underlying business situation is usually
described as sound. Prices still show a tendency to fall and for the month of August the
Board's index number of wholesale prices has
shown a reduction of 7 points. While differences were noted between the indexes of some
of the price-reporting agencies early in the
year, there is now practical uniformity, although some show greater or more rapid declines than others.
In district No. 1 (Boston) business conditions generally have been characterized by
" dullness to a degree rather more than usual/'
a fact which is assigned to the " widespread
and undoubtedly heavy liquidation on the part
of merchants, * * * chiefly in wearing apparel
lines," who "have to an unprecedented degree
cancelled orders placed, resulting finally in
almost universal curtailment of production"
by establishments engaged in the industry.
The effect of the situation has been modified
by the fact that reaction has been so closely
restricted to a particular field. Retail merchants show caution.
In district No. 2 (New York) it is found that
"the period from July 1 to August 20 has been
one of shifting credit, but with no substantial
change in the volume of bank loans." The
number of banks borrowing from the Federal
Reserve Bank has decreased from 380 early
last November, when the discount rate was
raised, to 313 on August 1 of this year. "Manufacturers and merchants have at last realized
that the period of constant expansion has
about reached the limit of its possibilities."
As to the price situation, the opinion is expressed that "while some prices were increasing
and many remained stable, so large a number
of important commodities have declined" as
to indicate that "with further credit inflation
checked natural laws are once more operating."
In district No. 3 (Philadelphia) prices in
textiles, leather, and shoes continue to drop
and the same is true of cloths and clothing,
while there seems to be some ground for fearing
a recurrence of labor unrest. Slight improvement in transportation is encouraging but
inadequate. Retail trade shows a favorable
prospect.
In district No. 4 (Cleveland) the demand for
funds is still heavy, collections are somewhat
variable, but "satisfactory when all circumstances are considered," and lake ore movement
and coal shipments are improving.
In district No. 5 (Richmond) the outstanding feature of the information received by the
Reserve Bank is " optimism and confidence in
the basic soundness of general conditions."
It is nevertheless admittedly hard to specify
definite developments which justify this confidence. Manufacturers are receiving insufficient orders to keep them running steadily in
all cases, but they are taking a more hopeful
view.
In district No. 6 (Atlanta) improvement in
crop prospects which was so strong a factor
during July has been somewhat offset by
reaction in August. Prices are moving downward. Some wholesalers show reductions in
sales but retailers report an increase of 16.3
per cent in net sales over July last year. On
the whole, the position is hopeful.
In district No. 7 (Chicago) "caution rules in
business." Retailers have found limits in the
popular purchasing power and business is
"slowing up a little" with the net result " a
waiting attitude." "Dearth of liquid capital "is largely responsible for the situation.
In district No. 8 (St. Louis) "the volume of
trade holds up well as contrasted with the
corresponding period last season, and to date
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
there has been no marked decline in the purchasing power of the public." There is evidence of "more definite and significant steps
in the direction of readjustment than has been
observed up to this time." Greater optimism
and a greater disposition to economy and
caution are observed both among the public
and among merchants. Crops are large and
prices for them are high.
In district No. 9 (Minneapolis) "the slowing
up of business which was noted during June
has been offset to a considerable extent during
July by the rising tide of business confidence."
However, "stringent money conditions prevail" and "liquidation of merchandise has
progressed very slowly. Some food prices
have fallen. There has been no shortage of
labor to handle the crop. Transportation
conditions are the keystone to the business"
side of agriculture.
In district No. 10 (Kansas City) business
men "see no cause for serious apprehension on
account of * * * price adjustment, money
tightness, or industrial unrest." They have
produced this year the largest all-round crops
of food products in history and believe that
improvement of transportation and the rapid
movement of the goods to the consumer is the
urgent need.
In district No. 11 (Dallas) favorable factors
include "further improvement in the condition of crops and ranges; increase in volume
of wholesale and retail trade; increase in
building activity; increase in farm granaries
for the storage of wheat awaiting shipment;
and improved movement and supply of freightcars." As against these desirable factors,
there is noted "excessive rains in the cotton
belt, conducive to depredations of insects;
further inflation of credit; increase in business
failures; depression in demand for products
of the live-stock industry; and shortage of
labor for harvesting cotton." Trade has
reacted well from seasonal dullness, but it is
believed that "the margin of surplus income
from production this year will not be sufficient
to support any radical expansion of industry
and commerce" in the year 1920-21.
In district No. 12 (San Francisco) it is reported that "favorable growing conditions
during the past month have improved the
prospects for good crops in all sections
* * * except some of the dry fanning
sections." Labor is well employed and only
one considerable strike is in progress. Harvesting is progressing satisfactorily with fairly
adequate labor, but car shortage is present.
The agricultural situation has during the
month of August reached a point at which
returns can be counted upon with much more
913
certainty than heretofore and the outlook has
continued to be in the main favorable. In
district No. 9 (Minneapolis) the Federal Reserve Bank's own estimate of crop yield shows
much larger production of wheat, oats, barley,
and flax than in 1919, with rye only a little behind last year. There is "a total production of
610,000,000 bushels of small grains as compared with 421,000,000 bushels in 1919. The
corn crop prediction of 245,400,000 bushels
on August 1 is about 3,000,000 bushels better
than a year ago." In district No. 10 (Kansas
City) the situation is equally favorable. "All
in all, the reports now show that 1920 is one
of the best, if not the very best, crop in years."
The bank is disposed to believe that the
Government's estimate of 261,226,000 bushels
of wheat as compared with 301,000,000 bushels
last year is too low, while oats will be hardly
less than 200,000,000 bushels and corn has
made remarkable progress, the estimated
yield now being 483,000,000 bushels. Other
orops are in excellent condition, especially
hay. On the Pacific coast the total estimated
yield of wheat is a little under 100,000,000
bushels for the district, as compared with
101,000,000 bushels in 1919. Corn, oats, and
hay show good advances over 1918 and 1919.
The hop crop is much larger than last year and
75 per cent of it has been sold, while the amount
of deciduous fruits on the Pacific coast is expected to be greater than was anticipated.
In the Pacific Northwest the yield of apples
is estimated at 25,500 carloads as against 32,600
carloads in 1919. In the Middle West the
seventh district (Chicago) reports that crops
"promise well, with indications for a larger
production than a year ago in all excepting
wheat."
Accompanying the generally favorable July
outlook for cotton was a decrease in price.
In district No. 11 (Dallas) the "cotton responded wonderfully to the best July weather
that the crop has enjoyed for several years,"
but subsequent excessive rains are conducive
to depredations of insects. This is reflected
in the figures of condition on July 25 as against
June 25, while the Federal Reserve Bank's
own detailed survey of counties as of August 1
seems encouraging. District No. 6 (Atlanta)
reports the condition of cotton not very different in July from that of June and states that
the boll weevil is now present in practically all
of the cotton counties of Georgia. While the
Florida cotton crop has improved slightly, that
of Louisiana has deteriorated, but the Mississippi and Tennessee crops show improvement.
As for August developments, "the reports of
damage by excessive rains during the first two
weeks in August have been somewhat discour-
914
FEDEKAL RESERVE BULLETIN.
aging." The condition of the cotton crop on
August 25, as reported by the Department of
Agriculture, was 67.5 per cent—a decline of
about 6.6 points from that on July 25/and
somewhat less than the 10-year average.
In livestock, district No. 11 (Dallas) reports
that ranges are in fine condition, the stock
itself being "prime" and the situation generally favorable. In district No. 10 (Kansas
City) fine pasturage has tempted many growers and feeders to hold their stock, and car
shortage has tended to accentuate the same
situation.
The movement of agricultural products to
market is still affording the basis ior more or
less anxiety and uncertainty. There has been
improvement in railroad conditions, but it
has been insufficient. In district No. 9 (Minneapolis) the agitation for empty cars suitable for grain has brought substantial results,
but not all that had been expected. Receipts
of empty grain cars for the five weeks ending
July 3 averaged 1,629 cars per week, or 35 per
cent of those ordered sent, while in the four
weeks ending August 1 the weekly average was
2,427 cars, or 53 per cent. "This improvement of 800 cars per week is encouraging,
although not sufficient to meet the needs of
moving the new crop." Total grain receipts
during July, 1920, are reported by the Minneapolis Chamber of Commerce as about
10,000,000 bushels, while shipments were
8,061,000 bushels. On the whole, there has
been an increase of about 10 per cent in the
receipts and a decrease of about 17 per cent
in the shipments as compared with June, while
there is a decrease of about 5 per cent in the
total receipts and shipments of flour for the
same period. The amount of wheat in terminal
elevators in Minneapolis and Duluth on July
31 was 2,145,000 bushels, as against 912,000
bushels on the corresponding date a year ago.
In district No. 10 (Kansas City) the movement of grain to the markets of the district
has been in greatly reduced volume as compared with a year ago, notwithstanding larger
crops. During July, 1919, receipts of grain
and flour at Kansas City were 13,841,550
bushels, but for July, 1920, 6,770,250 bushels.
Shipments in July, 1919, were 3,132,000 bushels and in July, 1920, 4,498,000 bushels.
Figures of July receipts and shipments at
Omaha, St. Joseph, Wichita, and Oklahoma
City were less than a year ago by 40 to 60 per
cent, due to the car shortage. It is now
thought that it would be better for the grower
to provide storage for himself and to distribute the marketing of grain over a longer
period. Grain markets during the month
nave been active. Prices declined substan-
SEPTEMBER, 1920.
tially at Minneapolis during July and the
early part of August, while at Kansas City
" there were sensational declines in prices."
This is ascribed to " favorable crop reports."
Reports from mills representing 75 per cent of
the flour-producing capacity of the Minneapolis district show operations at 44.6 per
cent of full capacity during the four weeks
ending July 31, as compared with 46.8 per
cent in the four weeks ending July 3 and 40.5
per cent one year ago. Recent trade reports
indicate that sales are still small, although
inquiry is fairly large.
An important situation has developed in
connection with the marketing of grain.
According to district No. 7 (Chicago), "it
will be recalled that last year there was a
heavy carry-over of grain, farmers starting
out with the intention of holding for a few
months for a more favorable price level.
They encountered an extremely bad transportation situation, which prevented the marketing of grain when prices did improve. The
result was rather disastrous, as in many instances farmers were forced to carry grain
for many months against their wish and to
borrow at the banks. Much of this is still
being carried by the banks, either on farms or
in country elevators. This tends to make the
farmer cautious. If cars are obtainable the
farmer, as a rule, is not delaying shipment of his
grain to market. Another factor militating
against widespread storage of grain is the
uncertainty as to the future course of the commodity markets."
Live-stock prices also show a downward
drift for some classes, Minneapolis reporting
substantial reductions in beef prices and a
moderate reduction in lambs. Receipts of
cattle and calves at 15 principal markets during
July were 1,188,019 head, as compared with
1,290,265 head during June and 1,527,881
head during July, 1919, the respective index
numbers being 118, 128, and 152. Receipts of
hogs amounted to 2,115,639 head during July,
corresponding to an index number of 92, as
compared with 2,746,390 head during June
and 2,411,539 head during July, 1919, the respective index numbers being 125 and 110.
Receipts of sheep for July were 1,301,458
head, as compared with 1,006,528 head during
June and 1,558,767 head during July, 1919,
the respective index numbers being 95, 74,
and 114. District No. 10 (Kansas City)
reports that " the July movement of live stock
to the six markets of this district was 8 per
cent less in volume than in June and 23.5
per cent less than in July, 1919. A total of
1,459,891 animals were received at the markets during the month, as against 1,586,193
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
in the previous month and 1,909,890 in the
corresponding month last year. A large part
of the losses in receipts was on hogs.
The heavy declines indicated, especially in
the movement of cattle, calves, and sheep, are
generally attributed to the smaller movement
from areas affected by the drought at this time
last year.
The iron and steel situation during the
month has not materially changed. Railroad
conditions are somewhat better, but advances
in freight rates have introduced a new factor
into the price prospects. Pig iron has advanced during the past few weeks and Bessemer iron, as well as other products, has also
risen. The movement of iron and steel from
the mills and furnaces has continued on the
increase and the leading producer in the Pittsburgh district has reduced its accumulations
by about 65,000 tons. The trend toward the
casing up of congestion at the works is more
pronounced in some cases than in others. In
district No. 3 (Philadelphia) iron and steel
producers " still suffer seriously from transportation inadequacy/' In some lines a slackening of demand has been noticed. Higher
freight rates are expected to add considerably
to manufacturing costs. Both in districts
No. 3 and No. 4 there is a falling off in the
daily output of pig iron and the same is true
of some steel products. In district No. 6
(Atlanta) "the shortage of freight cars has
grown more serious during the past month/'
rig iron is piling up in the district and iron
and steel movements are greatly delayed.
Consumption of pig iron is holding up well
and steel mills in the district as a whole are
working at more than 80 per cent of capacity.
In spite of the difficulties encountered in the
industry, a hopeful spirit generally prevails.
In district No. 3 (Philadelphia), for instance, a
large manufacturer whose principal product
is bar iron is optimistic about conditions for
the rest of the year, while rails are in strong
demand and miscellaneous steel products are
finding a good market. The unfilled orders of
the United States Steel Corporation at the
close of July were 11,118,468 tons, corresponding to an index number of 211, as compared
with 10,978,817 tons at the close of June, corresponding to an index number of 208. Steel
ingot production during July was 2,802,818
tons, as compared with 2,980,690 tons during
June, the respective index numbers being 116
and 123. Pig iron production during July was
3,067,043 tons, as compared with 3,043,540
tons during June, the respective index numbers being 132 and 131, although the average
daily output was somewhat less during July.
915
Lake ore shipments from the Superior region
in July were 9,638,606 tons, bringing the total
to August 1 to 26,079,111 tons, which compares
with 25,181,848 tons on the corresponding date
in 1919, and 26,608,933 tons in 1918. The
1918 tonnage is that which the producers have
set out to duplicate during the present season,
and it is shown that they are only slightly
below their goal.
Congestion on the railroads, which was the
source of so much anxiety and difficulty during
the earlier part of the summer, is gradually
yielding to special effort to relieve it. District
No. 4 (Cleveland) reports that the outlook
in the lake trade is a little better than a
month ago. The coal movement has shown a
steady gain since the recent orders of the Interstate Commerce Commission. In district
No. 3 (Philadelphia) " moderate improvement
* * * has taken place during the past
month. * * * Cars are moving a little
more freely to destinations." There has been
no reduction in prices for spot coal. New
freight rates are expected to add from 65 to 85
cents a ton to the cost of anthracite to the
retailer. In district No. 6 (Atlanta) Alabama
coal production shows a little improvement,
but strikes are still on in various fields. Coke
production is below the demand and car shortage is still felt. In district No. 4 (Cleveland)
coal movement is showing a steady gain all
around. There is still shortage in various parts
of the country, not for immediate needs but
as compared with the estimated demand of
coming months. The bituminous output is
estimated by the Geological Survey as 226,000,000 tons for the first half of this year (1920)
as compared with 218,000,000 tons in the corresponding period last year. Allowing for importation and exportation there is an indicated
balance for domestic consumption of 215,000,000 tons, against 211,000,000 tons last year.
Production of bituminous coal for the country
at large during July amounted to 45,526,500
tons, as compared with 44,462,500 tons during
June and 42,698,000 tons during July, 1919,
the respective index numbers being 123, 120,
and 115. Sporadic labor difficulties in the
coal industry have to some extent retarded
production, but in the main the figures
show that conditions heretofore have been
reasonably favorable. The production of anthracite, however, will be curtailed in consequence of the recent widespread cessation of
work by miners. Production during July
amounted to 7,785,000 tons, as compared with
7,754,000 tons during June and 7,803,000 tons
during Ju<y, 1919, the index number for all
three months being 105.
916
FEDERAL RESERVE BULLETIN.
In petroleum there is a growth in production in Kansas, Oklahoma, Wyoming, and
Colorado. For the two first-named States
there is an increase during the first seven
months of 1920 as compared with the same
period in 1919 from 64,189,000 barrels to
79,360,000 barrels. Developmental operations
in the Oklahoma field, including Kansas,
Oklahoma, and Wyoming, have been very
satisfactory during July. The stock of oil in
storage in district No. 10 (Kansas City) on
July 1, 1920, was 60,712,000 barrels as against
61,604,000 barrels on January 1. On the
Pacific coast the daily production during
July averaged 279,000 barrels as compared
with 273,000 in June. Stored stocks were
24,405,000 barrels on July 31, a decrease of
964,150 barrels during the month. Shortage
of gasoline continues to be general on the
Pacific coast, while in district No. 10 (Kansas
City) the summer demand is at its height and
shipments to the Pacific coast are being made
from the mid-continent and Rocky Mountain
fields. The market for petroleum during the
month of July was steady and quiet, with the
price of crude oil generally subject to little
change. In district No. 11 (Dallas) drilling
results improved during July and for the district
as a whole 868 wells were completed as compared with 650 in June. The daily average
output during July was 375,000 barrels, a
decrease of 7,500 from June. The outlook in
the Texas field is regarded as very promising.
In metal mining there was a curtailment ot
production at the opening of July with regard
to zinc and lead, but later there was a partial
resumption of work, resulting in an average
weekly output of about 10,000 tons at the end
of the month. Curtailment and rearrangement
of production has helped to adjust the labor
situation. There has developed a relative
reduction of output, but a deficiency of cars
has continued to be marked, even as compared
with the supply of ores on hand. Cars intended for other products are now being used
to ship ores. The price of zinc ores has increased from $45 at the opening of July to
$47.50 for 60 per cent concentrates. Lead
ore prices also showed a decided advance for
the month from $90 to $100 per ton on 80
per cent lead. The average output has fallen
off in the Colorado metal mining district.
Production reported during July by reduction
plants in the Cripple Creek district totaled
38,222 tons, or a gross value of $468,568.
Some indications of improvement in mining
activity are reported. With the exception of
zinc, however, recent trade reports indicate
extreme quiet in these industries, little interest being shown by consumers.
SEPTEMBER, 1920.
General manufacturing has varied widely in
different parts of the country during the
months both of July and August as a result
of sporadic depression and suspension of work,
coupled with difficulties of various kinds in
connection with the continuation of production. There is still depression in woolens and
cottons, knit goods and underwear, wearing
apparel, shoes, leather, and various other
articles. Resumption of activity immediately
after Labor Day is promised in a number of
sections and it is held that there is some indication that retailers' stocks are becoming so
reduced that active buying must soon be
resumed. District No. 1 (Boston) reports
that tanneries in the district are still closed
or operating up to about a 50 per cent basis.
While there has been some resumption of shoe
manufacturing, numerous large concerns are
still either wholly closed down or operating
on short time and they are purchasing little
leather. Prices for side leathers are off 10 to
13 per cent from last month, but still 50 to 100
per cent higher than in 1913-14. Hides are
accumulating. District No. 5 (Richmond)
reports that shoes are moving from manufacturer to retailer slowly, while buyers are holding
off in the hope of reductions. Leather has
weakened, but there is little prospect of the
saving reaching the consumer for a good
while, owing to the length of time required
in shoe production. In district No. 7 (Chicago)
first hands are holding leather and are finding
more than usual difficulty in financing it.
Cancellations are still active. Sales are 50
per cent off from 1919 for the first seven months
of 1920. The automobile demand for leather
"is the only really rosy spot in the picture."
In district No. 3 (Philadelphia) shoe manufacturing plants have been shut down or running at minimum capacity, but have now
resumed operations preparing samples. Orders
are slow in being placed. The public has been
refraining from purchasing high-priced shoes
but has bought freely at reductions. Stagnation still exists in leather. Few tanneries
are operating and the transportation situation
is in part blamed. From district No. 8 (St.
Louis) it is reported that business in shoes is
steady, prices are definitely lower, but the
decline is not as marked as had been looked
for (except in a few special grades), and that
the country merchants are in a somewhat
more steady frame of mind.
As for wool and woolen goods, district No. 1
(Boston) reports that the situation in the wool
industry is difficult to diagnose, the Boston
market being dull, although the supply,
especially of the finer grades, available for use
is not excessive, if production should become
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
normal. Woolen mills in New England during
the month of August were either closed or running on part time. Returned goods are felt to
be insufficient to meet the public demand when
it revives. "Briefly, therefore, the whole wool
situation is one of waiting and caution, with
hand-to-mouth buying on the part of the
manufacturer." In district No. 3 (Philadelphia) " there is an unprecedented situation/'
with "an absence of activity such as has never
been known." "Such is the apathy shown in
the market that samples for spring (1921)
materials which in normal times would have
been displayed in July have not been prepared
in numerous instances." In the clothing
trade, district No. 5 (Richmond) states that
"clothing manufacturers report dull business,
with a decided reluctance on the part of the
retailer to enter into further contracts." A
change in the demands of customers is noted,
and it is believed that lower-priced goods
made of coarser wool may figure more largely
during the coming season. District No. 7
(Chicago) finds that "fine wools are scarce and
coarse wools are a drug on the market." There
has been "a flood of cancellations, slow payment for goods already delivered, and a general
slowing down of the apparel industries."
In cottons district No. 1 (Boston) reports
that "dullness in cotton this month is fully as
pronounced as during * * * June and
July and dealers report only buying by the
mills in small lines for immediate requirements." Nevertheless, there has not been as
general curtailment in production as had been
anticipated. According to United States cotton statistics, cotton held in mills in the district for July was 660,893 bales, while the
amount consumed during July was 198,233 bales.
Prices for combed and carded yarns were lower
at the middle of August than earlier, and "consumers of spot yarn have found the supply so
plentiful that they have been in no mood to
buy in advance of current needs." In district
No. 3 (Philadelphia) further curtailment of
operations has been noted among cotton-yarn
manufacturers. Spinners are accumulating
large stores of finished products. The acute
situation of the cotton-yarn industry is attributed to the restriction of credit by the
banks, although the policy of the banks is
believed by larger manufacturers to be correct.
In knit goods the deadlock between underwear
manufacturers and jobbers still continues—
jobbers waiting for lower prices while manufacturers make no attempt to sell their product.
The situation in hosiery is but little better,
while in underwear the only buying demand is
for export. In district No. 1 (Boston) small
wares are reported lower in price than last
917
month, and there is a feeling among some
wholesalers that retailers might well sell
cheaper and still make a good profit.
In other manufacturing lines there is more
or less difference of condition. District No.
3 (Philadelphia) reports activity in broad silks,
although the buying movement was not general
and few silk mills continued open. In paper
and twine district No. 1 (Boston) finds that
there is still difficulty among dealers in procuring sufficient supplies to meet the demands of
the trade. Stocks are believed to be small.
Prices continue from 100 to 400 per cent higher
(wholesale) than in prewar times and are still
tending upward. District No. 3 (Philadelphia)
states that production of paper for the first six
months of 1920 exceeded that of the same period
in 1919 by about 9 per cent. Prices have advanced in most grades of paper. Hope for a
new source of supply of wood pulp from Alaska
is entertained in various quarters. The outlook is said to be encouraging in drugs and
chemicals, although the inactivity of the
textile and tanning industries has reacted
upon the trade. There is a plentiful supply of
most raw materials for drug making, but
American crude drugs are difficult to obtain.
Sales are far in advance of this time last year.
In rubber there is some anxiety. District No.
3 (Philadelphia) reports that there is "a decreasing demand for tires." No difficulty exists
in getting raw materials.
In lumber and building material the situation is also variable. In some districts the
expectation that heavy buying would develop
in anticipation of higher freight rates has been
disappointed. Stocks are small in numerous
quarters. In district No. 6 (Atlanta) the
lumber market is still dominated by the
transportation situation. Curtailment of production is becoming more general, but apart
from a continuous scarcity of cars the immediate outlook is satisfactory. In the Middle
West high costs of lumber, millwork, and
other materials have seriously retarded building. In district No. 10 (Kansas City) lumber
and material markets have been inactive, with
lowered demand due to unsatisfactory distribution. In New England, district No. 1
(Boston), dwelling house construction is still
backward, partly due to the increased cost of
material and labor. On the Pacific coast,
district No. 12 (San Francisco), car shortage
restricts lumbering operations and 20 per cent
of the mills are closed, while those that are running are operating at only 75 per cent capacity.
For the last four weeks in July reports from 122
mills operating on Douglas fir show production
31 per cent below normal as compared with
7.5 per cent during the preceding four weeks.
918
FEDERAL RESERVE BULLETIN.
Unshipped orders amounted to 330,000,000
feet as compared with 343,000,000 feet. Building, however, is active. In district No. 9
(Minneapolis) lumber cut and shipped by producers increased about 50 per cent during the
month. While average orders on hand by
southern pine producers decreased from 502,927,000 feet for July 9 to 389,850,000 feet for
July 30, production during the same period
shows an increase, the average figure for the
week ending July 30 being 468,983,000 feet,
which is about 75 per cent of normal.
The labor situation is reported generally
favorable. In district No. 1 (Boston) employment in the textile industries is somewhat depressed, and the same is true of the shoe factories, certain of which, however, have started
up again, but with, production curtailed.
Returns from public employment offices show
that the number of positions reported filled
during July suffered a loss of 34 per cent from
June of this year and 34 per cent from July of
last year. In spite of curtailment of output
and reduction in number of operations in certain industries, the report of the New York
State Industrial Commission shows a decrease
of only one-half of 1 per cent between June and
July in number of factory workers. Since the
report of district No. 2 was received, there has
been a strike on a leading traction company
in New York City. District No. 7 (Chicago)
reports the labor situation "distinctly
better,
though there is some shortage.77 On the Pacific
coast "the supply of labor about equals
demand throughout the district."
The volume of trade, both wholesale and
retail, is reviewed as usual in the Board's special
reports on that topic. Generally speaking,
retail trade is fairly satisfactory. The Board's
systematic report on wholesale trade conditions
has not been extended throughout all Federal
Reserve districts. The data at hand, however,
indicate an interesting and, on the whole,
promising situation, frice reductions have
evidently led to a revival of buying activity on
the part of retailers in the South and West.
Reports from wholesale dry goods firms in the
Atlanta district show average increases in sales
of 79*1 per cent in July as compared with June.
Nevertheless, the sales of these same firms were
still 26.6 per cent below the figures for July a
year ago—a vivid illustration of the extent to
which buying activity had fallen off in preceding months. The Dallas reports also indicate
increased activity in wholesale dry goods, although sales are slightly below July, 1919.
San Francisco reports show increases of about
one-third in value of sales over the preceding
month for 12 wholesale dry goods houses, while
the sales exceeded those for a year ago by nearly
SEPTEMBER, 1920.
32 per cent. Wholesale grocery firms reporting
show only slight increases in sales during the
month, in some instances recording decreases,
while the same is true for hardware and shoe
lines. In the San Francisco district returns
based on sales of 23 wholesale hardware concerns indicate average declines of 7.7 per cent
as compared with June, while 13 wholesale shoe
establishments showed reductions of 10 per cent
in volume of sales. Reports uniformly testify,
however, to the fact that hardware sales have
averaged much above those for July a year ago,
while the limited data available for wholesale
shoe houses shows that in this line the volume of
sales is below that of last year. Downward
tendencies in wholesale prices are noted for
groceries, dry goods, and shoes, but no evidence
of weakening is found in wholesale hardware or
furniture lines. It is probably significant that
so important a jobbing center as St. Louis reports good buying activity on the part of retailers to meet heavy current needs, although here,
as elsewhere, there is an indisposition to make
commitments for the future.
The situation in the retail trade has not
changed in any essential way since last month.
The volume of sales continues moderately large.
In all districts sales in terms of value are greater
than those during the same month last year.
In many districts sales of essential commodities
in terms of physical amounts are said to be fully
as great and in some cases to exceed those during the same period last year. These results,
however, have to a large extent been accomplished by means of reduction sales. The demand for luxuries and semiluxuries has everywhere notably fallen off. Merchants are maintaining an attitude of caution in replenishing:
their stocks, apparently waiting for prices to
reach a position of greater stabuity.
Financially the month has been quiet. Interest and discount rates have continued high,
with general scarcity of funds. The reserve
position of the Federal Reserve Banks has been
well maintained. The Federal Reserve Bank
of Boston reports that reserve conditions are
improving and that the expected stringency
in the money market usual during the fall
months should not be greater than last year.
The bill market for bankers' acceptances in
New York has continued active, with supply
more plentiful toward the end of the period
and demand fairly well sustained. There is
evidence that investors are taking up Liberty
bonds and Victory notes for permanent absorption. Sales of new securities continue to
fall off and financial operations are postponed
whenever possible because of the difficulties
arising out of high rates of interest. There is
some slowing down of collections and this has
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
been an unfavorable element in the financial
position of some lines of business. On the
whole it is believed in most districts that more
favorable financial conditions are in sight and
that merchants and manufacturers, while
drawing heavily upon the resources of the
banks, are doing so primarily for productive
purposes and not for speculative or nonproductive objects. Liquidation has been carried
still further in the stock market and prices
have reached in New York levels lower than
those of February or May. The news of the
higher railroad-rate decision caused only a
temporary recovery. Call money rates have
generally been moderate, ranging from 7 to 9
per cent practically throughout the period.
Time money has been scarce and the charge
for it has been high.
On the Pacific coast member-bank conditions are not far from stable. Interest and
discount rates, however, have shown some
tendency to harden during the past month.
Some of the southern banks show a consider-
919
able increase in their accommodations to member banks. An increased strain has been imposed upon the present situation as the result
of active harvesting. From the grain districts (Minneapolis) it is reported that moderate liquidation of loans was made by customers
during July, although an actual calculation of
the extent of it is said to be difficult to make.
Money rates have remained firm, with little
change.
The collection situation has been the subject of a special inquiry during the past month
and the results of it are presented elsewhere.
In a general way, the situation is fairly
favorable, with collections slowing down in a
number of instances due to desire on the part
of people to conserve their funds in order to
avoid borrowing at high rates from banks, as
well as to lack of funds in other cases, due to
slow movement of commodities. Some increase
in commercial failures is noted practically
throughout the country, but there are many lines
in which the change, if any, has been small.
920
FEDERAL RESERVE BULLETIN.
SEPTEMBER. li)20.
SPECIAL REPORTS ON BUSINESS CONDITIONS.
THE MOVEMENT OF LOANS.
The movement of loans in the several Federal Reserve districts shows considerable variation. Demands are reported to be heavy on
the whole, with conditions virtually unchanged
from the preceding month. District No. 5
(Richmond!) and district No. 11 (Dallas) report
recent expansion in the loans of member
banks, but district No. 9 (Minneapolis) and
district No. 10 (Kansas City) state ^ that
moderate liquidation of loans has begun*. In
districts No. 2 (New York) and No. 3 (Philadelphia) very little change in the volume of
bank loans is reported, while in district No. 1
(Boston) causes locally operative have brought
about a liquidation of bank loans in Boston
proper, with some slight increases in other parts
of the district.
DISTRICT NO. 2 (NEW YORK).
The period from July 1 to August 20 has
been one of shifting credit, but of no substantial change in the volume of bank loans.
This, however, may be considered as equivalent to a slight decrease in loans, for loans
normally increase somewhat during July and
August in anticipation of autumn demands.
Since July 1 the deposits of the New York
City banks have decreased $147,000,000 and
the Federal Reserve Bank of New York has
lost $61,000,000 of gold through the gold
settlement fund to other districts. The loss
of deposits is due in part to reductions of outof-town bank balances, but more largely to
the maintenance of smaller balances by commercial customers, either to avoid further
borrowing or in anticipation of having to
borrow less during the coming months. GradDISTRICT NO. 1 (BOSTON).
ual liquidation in the prices of securities has
lessened the demand for call money, resulting
Member banks in Boston show a $12,000,000 in slightly lower rates, but otherwise the
decline in loans and investments from July 16 credit situation has remained unchanged durto August 13; on the latter date these stood ing the past 30 days.
at $775,000,000 against $787,000,000 four weeks
earlier. The decline was distributed among
DISTRICT NO. 3 (PHILADELPHIA).
all types of loans and investments, the reduction in loans secured by stocks and bonds
Banks in the third district show little change
being some $5,000,000, in certificates of in- in condition during the past month. If anydebtedness some $4,000,000, and in commer- thing, there has been a slight increase in loans
cial loans and investments almost $2,000,000. and deposits. Philadelphia Clearing House
In comparison with the decline in loans and members shared in the increase in loans, but
investments there has been practically no they are still considerably below the figure^
change in either demand deposits or time de- which they reported earlier in the year.
posits, while such change as has occurred has
Commercial paper dealers feel that some firms
been due to the reduction of Government at least are adjusting their finances to the
deposits. Loans from the Federal Reserve present credit situation and are offering paper
Bank have been reduced some $12,000,000. in smaller volume. The general supply is
Member banks in New Haven, Hartford, Spring- sufficient however to care for the small demand
field, and Providence do not show any decrease from the banks. It is said that greater disin loans, there being in fact a slight increase, less crimination is being shown in purchases and
than $500,000, while deposits remain the same as that first-class paper only is wanted by many
on July 16. Loans with the Federal Reserve institutions. The average rate is unchanged
Bank/ however, have increased slightly, due at 8 per cent for good names.
undoubtedly to the withdrawal of Government
deposits in these institutions. Notwithstanding
DISTRICT NO. 4 (CLEVELAND).
this increase in loans in the Federal Reserve
There is no slackening in the demand for
Bank, the fact stands forth that 9 out of the 24
member banks in these cities on August 13 funds. This may be said to be especially true
were not borrowing at all from the Federal of the rural banks, where efforts are being
made to finance the farmer.
Reserve Bank of Boston.
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
The manufacturing districts report no change
in credit conditions. The principal reasons
given for making new loans and renewing old
ones are "large inventories occasioned by the
necessity of making larger purchases than
usual to insure adequate supplies of goods and
raw materials, large quantities of finished goods
because of inadequate transportation facilities,
cancellations of orders, and slow collections."
In some sections it is reported that customers' balances in banks are smaller than ever
before, indicating a probability that more and
more money is being converted into inventory
and manufactured goods, now known as
"frozen capital." The liquidation of these
goods depends upon how soon traffic conditions may be restored to the point where they
may find their way to market.
DISTRICT NO. 5 (RICHMOND).
Condition reports received from 82 member
banks show an increase in outstanding loans
and investments amounting to $7,311,000 in 5
weeks, totals for week ending August 6 being
$490,261,000 as against $482,950,000 for the
week ending July 2, 1920. This would certainly seem to prove that no sudden and disastrous calling oi loans is being done by member
banks, as is sometimes charged. During the 5
weeks deposits increased $15,087,000 in the
same 82 banks. Banks are meeting all actual
needs, and there is little evidence of serious
credit strain except in speculative fields or in
cases in which corporations have attempted to
expand too rapidly. Railway conditions have
not improved sufficiently to release very much
frozen credit now tied up in raw materials and
finished goods for which transportation can not
be secured.
DISTRICT NO. 7 (CHICAGO).
Ordinarily credit demand is heaviest in the
fall of the year, because of agricultural necessity, and the present year is no exception.
Considerable attention has been devoted to the
possible effect of new crop requirements at the
banks because of their already loaned-up condition. There is a wide divergence of opinion
among bankers as to the probable demands.
Both the country elevator operators and the
farmers are clearing bins of any carry-over
from the 1919 crop where possible, to make
way for the new yield, but this is a slow process. Credit frozen to grain carried over from
last year will be released for new usage with
the marketing of old grain, which is now actively under way with an added supply of cars
in the grain belt.
921
DISTRICT NO. 8 (ST. LOUIS).
No marked changes in financial conditions in
the district occurred during the past month.
There is a continued broad demand for money
and credits, with the call from the country
particularly urgent. There has been some
liquidation in loans, and during the past week
or ten days certain country banks have slightly
reduced their obligations. The slump in deposits, however, continues. Sharp price reductions in some staples have had a tendency
to promote liquidation of accumulated stocks.
Thus far the massive requirements for crop
financing have been met, and requirements of
essential business are being well cared for.
Consensus of opinion among bankers is that
with a continuance of the recent conservative
policy in the matter of apportioning credits
ation in all
and the discouragement of speculatior
forms, general business can be carried forward
without serious disturbance until the return
flow of money begins in the fall. Efforts on
the part of railroads to increase transportation
efficiency and expedite the crop movement
are expected to be reflected shortly in the
release of enormous credits heretofore tied
up in delayed freight. To the South, where
the old crop of cotton has not been sold, banks
have been obliged to carry a heavy burden,
but withal financing of the growing crop has
been adequately handled. Rates are high,
and present indications are that there will be
little change.
Commercial paper houses report extreme
dullness in their line, July and August business
being well under that of preceding seasons.
Country banks are buying sparingly, and the
large city institutions are too closely pushed
to supply regular and routine demands of
their customers to invest in paper of this class.
Some paper has sold fractionally above 8 per
cent, but the prevailing rate is still 8 per cent,
with no names, however good, obtaining concessions under that figure.
DISTRICT NO. 9 (MINNEAPOLIS).
Reports received from 35 selected member
banks in the larger cities in this district, and
which comprise about 75 per cent of the lending operations of the Federal Reserve Bank,
indicate that a moderate liquidation of loans
was made by customers during the month of
July. These member banks reduced loans to
customers by $5,000,000 between July 2 and
August 6, and this was effected by a decrease
in customers' deposits amounting to $4,000,000.
These member banks liquidated loans at the
Federal Reserve Bank amounting to $4,900,000,
and this was effected in part by sales of Gov-
922
FEDERAL RESERVE BULLETIN.
ernment securities made by these banks
amounting to $2,400,000.
Between July 2 and August 6 the Federal
Reserve Bank collected $4,900,000 from the
larger banks and loaned about $3,900,000 to
other member banks, thereby realizing a net
reduction of accommodation to member banks
in this district of $1,000,000.
DISTRICT NO. 10 (KANSAS CITY).
There are many evidences that liquidation
of loans has set in, throughout the wheat sections in particular, which may be expected to
become heavier in September. Demand for
loans continues strong at the reserve cities
and rates remain firm. There is noticeable a
slight improvement in the car situation, and
should this improvement continue there is
every reason to expect that this district will
rapidly regain its financial position.
DISTRICT NO. 11 (DALLAS).
Notwithstanding the generally auspicious
outlook throughout the district, the present
inflation of credit makes it certain that the
margin of surplus income from production this
year will not be sufficient to support any radical
expansion of industry and commerce in the form
of new enterprises in 1921. Bank loans have
been steadily mounting during the past six
months, until now the Dallas Federal Keserve
Bank's loans to member banks are two-thirds
larger than they were a year ago, and the district
is drawing extensively upon the surplus funds of
other sections. Liquidation during the coming
fall months, therefore, should be and is expected to be heavy, except in those sections
where cotton is being heavily damaged by
weevils, worms, or grasshoppers, and in certain
parts of the extreme western section of the
district where weather and market conditions
have not been favorable to the cattle and
sheep industry. Cotton being the district's
chief reliance for the payment of its obligations,
the extent of general liquidation this fall will
depend largely upon (1) the average price
commanded by the 1920 crop, and (2) the
growers' ability to hold in check during the
next few weeks the ravages of insects resulting
from recent excessive rains.
Condition reports of reserve city banks as
of July 30 reflected the increased strain imposed upon the present credit situation by the
larger demands of industry and agriculture
pending the harvesting of crops. Loans increased $6,260,000 over the total reported
June 25, and bills payable with Federal Reserve
Bank were larger by $10,235,000.
SEPTEMBER,
1920.
COLLECTION CONDITIONS.
In connection with the preparation of the
report on business conditions in the several
Federal Reserve districts during August, special
attention was given to the collection situation,
and information was obtained from a large
number of business houses as to their experience since the opening of the present year.
Considerable differences appear as between the
several districts, and as between different
lines of industry. Where the decline (with
relation to volume of business done) has
occurred, it commenced more largely in the
second quarter, although in a relatively small
number of cases it was apparent about the
opening of the year. In certain cases the
decline is not found until about July, while
some houses report improvement in collections
during August. In the agricultural districts
it is in general too early in the year to accurately
judge conditions, as dependence is placed on
the crops to supply funds for the liquidation of
accounts, but on the whole relatively little or
no decline in collections is reported. In the
manufacturing districts, on the other hand,
collections have declined broadly in those
industries, such as tanning, textiles and auto
tires, which have witnessed a decline in sales,
while in general they have been well maintained in other industries, such as hardware
and drugs and chemicals, in which activity has
continued. The manner in which the slowing
up is manifested also varies with the industry
in question. Where a high percentage of cash
discounters is normally found, this decrease will
naturally occur in the percentage of those taking
the discount, rather than in the percentage of
accounts running past due. On the whole, from
certain districts, such as No. 3 (Philadelphia), it
is reported that the first mentioned has been
the particular form in which the slowing up has
been noted, while in district No. 4 (Cleveland)
it is stated that it was also the earliest indication of the slowing up, while "as the credit
pinch became more apparent the falling off
showed noticeably in the percentage of accounts running past due." In district No. 12
(San Francisco) the falling off has been equally
pronounced in the two ways.
Turning to the agricultural districts, in
district No. 9 (Minneapolis) while "October
1st is the 'big pay day/ and July and August
are slack months with few collections due,
collection conditions on the whole are good,"
and there has been no increase in bad debts.
"Business has been dull in many lines," with
"very little overstocking and consequent inability to settle obligations promptly." From
district No. 10 (Kansas City) it is stated that
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
923
with the exception of "some sections where piano trade reports continued good payments."
car shortage has interfered with the movement In district No. 12 (San Francisco) about 50 per
of grain, and comparatively few accounts are cent of the reporting firms have experienced no
running overdue, merchants report that they decline in collections.
have not noted any decline in collections since Turning to individual industries, wholesale
the beginning of this year." Turning to the grocers almost universally report collections norSouth, in district No. 5 (Richmond) "collection mal or good. The status of collections is reflected
conditions are not far from normal." In in the following table, which gives average perdistrict No. 11 (Dallas), while general liquida- centages since January 1, 1920, of outstandtion in the fall will depend upon the cotton ings on the first of each month to last month's
crop, "July witnessed an appreciable slowing sales, as reported by wholesale grocers' assoup of collections as compared with the situation ciations, in various sections of the country.
earlier in the summer, but a falling off in collec- Caution is necessary, however,. in the use of
tions at this season of the year is a normal oc- these figures, as the averages are unweighted,
currence, as payments are usually at a low ebb and moreover the number and identity of
just prior to the harvesting of the cotton crop." reporting firms changes somewhat from month
In district No. 6 (Atlanta) " collections are not to month.
as good as for the past month or two. IncreasAverage collection percentages.
ing numbers of accounts are being allowed to
run past due, and collections are harder to
PennIowa,
sylmake."
Nevania,
brasIlli- Mich- ka,
•In some of the districts in which manufacOkla- CaliNew New
JerOhio.
fornois. igan. and homa. nia.
York. sey,
turing plays a larger role, collections appear to
Min-.
and
nesohave been affected to a greater extent. This
Delata.
ware.
has been most noticeable, according to the
report from District No. 3 (Philadelphia), "in
those lines which have been affected by de- Jan l .1920.
98.2 104.0 104.5
105.5
93.0 81.9
68.9
97.5
93.4 83.8
94.7
77.4 101.6 109.0
clining business demand," certain lines show- Feb.l
87.5 101.3 106.0 112.0
113.1 105.8 85.5
Mar. 1
ing little if any change. In district No. 4 Apr.l
70.9
89.7
99.9
92.8 79.0
95.2
99.6
100.9
92.3 76.9 82.7 70.7
88.6
99.8
96.1
1
(Cleveland) it is believed that the slow move- May
92.7 105.0
95.0
93.3
89.3 78.6 79.2 74.6
June 1
ment of freight may have " contributed more July 1
95.7
86.0 72.6 79.8 65.9
86.0 106.0 101.9
88.0 107.0 100.2
75.0
78.5 67.9
85.9
Aug.l
to the slowing up of collections than has the
difficulty in securing bank accommodation."
It is stated from that district that " while the
While this is the general situation, from
general situation as regards collections may be district No. 4 (Cleveland) it is stated that
said to be satisfactory when all circumstances " wholesale grocers report that some of their
are considered, the month of June appears to heaviest buyers are slow in making remithave been the turning point in nearly all lines tances, and are showing a tendency to becomof business. Collections from the first of the ing slightly delinquent." The wholesale groyear through the month of May were reported cers at this time of the year are receiving many
as normal, for the most part, but in some lines goods for the fall and winter trade, requiring
the slowing up developed as early as February. funds in excess of those received from collecSince June collection resistance has increased, tions, and certain of them are thus slow in
although a few firms note an improvement in paying current bills. In district No. 6 (AtAugust." From district No 7 (Chicago), it is lanta) certain leading firms report a falling off
stated that in nearly all " branches of trade in collections, stating that it commenced in
there is manifested a more general tendency on June, and was especially marked with supply
the part of the purchasers of goods to ignore merchants in small towns. A leading eastern
discounts or ask extensions. Some of this is canner reports that collections have been more
traceable to the usual seasonal let-up, but not7 difficult during the last six months, but especall of it can be so explained." Most houses ially since June 1. A leading flour miller notes
collections, however, are reported "good or a falling off in collections of bills on open
normal." In district No. 2 (New York) account, commencing with February, and
"delayed collections are reported generally most pronounced in that month, with June
throughout the millinery, fur manufacturing, the next most noticeable month, but collecclothing, men's furnishing, and leather trades" tions are now again normal. The slump ocas well as in textiles. "Prompt collections are curred on sales to the small baker with little
reported in the drug jobbing, crockery, glass- capital, and is ascribed to'" overanxiety of millware, hardware, and cutlery trades, while the ing salesmen to increase business after war-time
924
FEDERAL RESERVE BULLETIN.
regulations were removed." Ninety per cent of
the product of the milling industry, however, is
sold on documented drafts, and the opinion is
expressed that these are probably out five or
ten days longer now than a few months ago.
Flour manufacturers' collections in district
No. 8 (St. Louis) "are not uniformly satisfactory."
Among lines in which collections have been
well maintained are also drugs and chemicals,
tobacco, and hardware. In district No. 3
(Philadelphia), however, "a slight retardation
in drugs and chemicals collections is noted,"
but in district No. 8 (St. Louis) "in drugs and
chemicals, and hardware, and in metal goods
generally, the recent upward pace has been
well maintained." Hardware manufacturers
in district NT>. 4 (Cleveland) report a decline
in collections beginning with July, being most
noticeable during August, and found especially
in accounts running past due. In the steel
industry collections are reported as generally
satisfactory with the exception of the automobile trade. No decline is reported in general
by hardware manufacturers in district No. 7
(Chicago). Several hardware jobbers in district
No. 6 (Atlanta) state that they have experienced no decline in collections, one a decline
only in July, and one reports that while
" fairly good, collections are not what they
should be," and attributes this to advance in
prices, stating that "the country merchant
can not make enough on the turnover to take
care of the advance that he has to put in the
replacement of goods." Agricultural implement manufacturers report that collections in
general are slower, although the time of commencement is given variously as from March
to July, and one states merely that collections
are "much slower than they were a year ago."
Local dealers generally are stated to have been
unable to finance themselves at their local
banks, and the manufacturer has been under
the necessity of extending short-time credit.
Prominent among lines which have been
adversely affected are leather, textiles, and
auto tires. In the tanning industry the situation is rather mixed. The volume of business
is small and a considerable number of firms,
owing to careful selection of purchasers, report
no decrease in collections. In district No. 3
(Philadelphia) the latter was the case with
about one-half the number of tanners reporting, the others showing a decline commencing
variously in March, April, and June and about
July 1, being given in several cases as most
pronounced in June. Several state that the
decrease is most pronounced in the percentage
of those who formerly discounted their bills
SEPTEMBER,, 1920,
but who now take full time. Tanners in
district No. 4 (Cleveland) "generally report
collections as very satisfactory, although a
slowing up is noted, particularly on the part
of those who are always inclined to be dilatory." Shoe manufacturers in this district
report a noticeable decrease in the percentage
of discounters, an increase in the number of
accounts permitted to run past due, and
numerous requests for extension of open
accounts. In district No. 3 (Philadelphia), a
decline is reported by certain shoe manufacturers, commencing with May or June. Shoe
manufacturers in district No. 7 (Chicago)
generally report a decrease, commencing in
practically all cases in May and given by some
as most pronounced in June, by others as
equally pronounced in May and July. The
decrease is noted in accounts running past due.
Shoe wholesalers in district No. 6 (Atlanta) in
general report a decrease commencing in April,
May, or June, and most pronounced in most
cases in July, being most noticeable in past
due accounts. One remarks that "slowness
seemed rather general, but more pronounced
in country and small town accounts," while
several report greater effort required in making
collections.
Cotton yarn collections in district No. 3
(Philadelphia) are reported extremely poor
and requests for extensions are common.
Some leading silk manufacturers report a decrease in collections, most marked on the whole
since about June. In the various branches of
the wool industry a slowing up is reported, and
is noted hj certain houses in district No. 3
(Philadelphia) as occurring more largely in the
second quarter or in July. Hosiery and underwear manufacturers in this district report a
slowing up of collections, remarked more particularly during June and July. A leading
underwear manufacturer in district No. 9
(Minneapolis) shows a percentage of past due
paper to total volume this year of 3 per cent as
against 1.2 per cent in 1919, this being credited
to the small country merchant of the Middle
West, and rather to dislike for bookwork than
to financial insecurity. Comparing the same
two periods, however, the percentage of discounters shows an increase of 4.5 per cent.
Textile collections in district No. 4 (Cleveland)
were extremely good until the end of May, there
being much anticipation, but there has been a
noticeable slowing up since June 30 and a
practical
elimination of anticipation. A recent
u
investigation by one of the New York credit
agencies indicates that about 20 per cent of
accounts of the smaller concerns are overdue.
While the accounts of the larger textile houses
SEPTEMBER,
are in somewhat better condition, it was estimated that 12 to 15 per cent of these payments were also delayed. While this is a very
high percentage of slow accounts, the general
opinion of the trade looks for some gradual
improvement in payments as prices steady. ;;
The majority of wholesale dry goods houses
in district No. 4 (Cleveland) state that their
11
percentage of collections for the first six
months was in excess of that for the same
period last year. There is, however, less inclination to anticipate the usual dating, probably due to inability to secure customary bank
accommodation/' While certain houses in
district No. 7 (Chicago) report no decline in
collections, but on the contrary show an increase, one house reports a decrease since May,
discounters now passing the discount and open
accounts in a considerable number of cases
running past due. Certain houses in district
No. 3 (Philadelphia) report that collctions are
"not quite as free as recently," and some cotton
goods commission houses indicate a falling off
during August. There has been a seasonal
decrease in district No. 6 (Atlanta), noticed
particularly in accounts running past due, but
one house states that "they have been unusually good, that is, for the summer season/'
while another has been able to "keep the showing of actual collections as good as in the last
two or three years only at the expense of a
great deal of more effort."
Reports received from leading clothiers indicate a falling off in collections since April. A
large manufacturer in district No. 7 (Chicago)
notes an increase of 47.5 per cent in average
receivables outstanding at the end of the month
during April to July, inclusive, as against
January to March, inclusive. Another shows
82 per cent of its outstandings at the end of
June over 30 days old, while at the end of
April about 23 per cent had run longer than 30
days. From St. Louis, however, it is stated
that collections in this line, "while not as good
as they have been, are in the main satisfactory."
In district No. 4 (Cleveland) clothing and garment trade collections are said to be satisfactory, although there has been little anticipation.
The percentage of past due accounts, while
showing an increase over earlier in the year, is
still very small, and August collections are
said to show improvement. In district No. 1
(Boston) collections in the men's furnishing
industry are good, although in district No. 3
(Philadelphia) several reports show a decrease
since about April or May. In district No. 2
(New York), as noted above, delayed payments
are reported generally in the industry.
9149°—20
925
FEDEKAL RESERVE BULLETIN.
1920.
3
In the rubber tire industry it is reported from
district No. 4 (Cleveland) that " a slow decline
is noted beginning in January." Not until
May 10 (and June 10 in the northern part of
the country), at which time bills for the heavy
deliveries during the winter months are due,
"was a material drop in collections observed,
due to retardation of sales owing to slow deliveries and a rainy spring, and inaoility to
obtain bank accommodation." In district No.
3 (Philadelphia) "collections are reported as
very slow, and this is attributed to the fact
that customers are unable to secure accommodation at the bank," being especially felt in
view of the large capital required due to high
prices. In this district collections are also
slowing up in other branches of the rubber
industry. Inasmuch as automobiles are largely
sold against sight draft, no change is noted in
collections, with the exception of one manufacturer in district No. 7 (Chicago), who reports
slowness especially in July on sales made on
open account.
PRODUCTION AND ORDERS OF UNDERWEAR.
Certain data are being gathered monthly
by the Association of Knit Goods Manufacturers of America relative to production, shipments, unfilled orders, and cancellations in the
knit-underwear industry.
Fifty-seven mills belonging to the association report their production of winter and
summer underwear for the month of July at
583,190 dozen (73.4 per cent of normal output). June reports from 54 mills gave a production total of 560,034 dozen (80.3 per cent
of normal).
Twenty representative mills reported for
June and July the following data (in dozens) :
June.
Unfilled orders, first of month
New orders during month
Shipments during month
Cancellations during month
Production during month
987,084
49,663
245,366
20,386
266,140
July.
Loss.
Gain.
770,995 216,089
22,847 26,816
285,130
39,764
16,698
3,688
230,418 35,722
Thirty-two mills reported similar data for
July alone as follows:
Unfilled orders first of month, 1,285,005 dozen
Production during month, 421,790 dozen (79.6 per cent
of normal production).
New orde;M received during month, 36,291 dozen (8.6
per cent of production).
Shipments during month, 461,332 dozen (109.3 per cent
of production).
Cancellations during month, 24,416 dozen (5.7 per cent
of production).
Balance of orders on hand August 1, 835,558 dozen
926
FEDERAL RESERVE BULLETIN.
CONDITION OF WHOLESALE TRADE.
Increase (or decrease) in volume of net sales during July, 1920,
as compared with the preceding month.
District.
P . ct.
No.
No.
No.
No.
No.
No.
4..
6..
7..
10.
11.
12.
-0.2
+ 3.0
+ 5.4
13
P.ct.
P. ct.
P.ct.
+79.1
+ 6.1
+ 3.9
+ 27.0
+ 33.4
12
+ 18.0
— 7.'
23
-10.0
13
ft
I
District.
I
No.
No
No.
No
No.
No.
4
6
7
10
11
12
P.ct.
P.ct.
P. ct.
-19.0
- 6.0
+ 14.0
— 4
+ 20.0
5.5
P.ct.
P.ct.
+ 5.5
Increase (or decrease) in volume of net sales during July, 1920,
as compared with July, 1919.
SEPTEMBER,
1920.
may be some occasional reaction, the opinion
of the trade generally indicates a gradual decline in prices.
The increase in money volume of sales by
reporting wholesale dry goods firms ranges
from 16.4 per cent to 114.2 per cent over sales
for June. All reports show decreases as compared to July, 1919, ranging from 17.2 per cent
to 37.5 per cent. Buying is limited to actual
needs, and lower prices are looked for.
Comparison of sales during July and June by
wholesale hardware firms vary from a decrease
of 9.1 per cent to an increase of 55.4 per cent.
Compared to sales for July last year, one report
shows a decrease of 25.3 per cent, while a
majority of reports show increases ranging up
to 57.2 per cent. While there is some expectation of lower prices later on, there seems to be
no immediate prospect of a material change.
Wholesale shoe firms report increases for
July over June as high as 50 per cent, while in
only one or two cases are decreases shown.
Only one report shows an increase over July
last year, decreases in other instances ranging
from 6 per cent to 28 per cent. The downward tendency is expected to continue, but by
a long swing rather than precipitately. Wholesale cancellations of orders during June and
July are now to some extent being reinstated.
DISTRICT NO. 11 (DALLAS).
District.
P.ct.
+20.
+26.
No. 4 . .
No. 6..
No. 7..
No. 10.
No. 11.
No. 12.
-2.0
+ 2.7
P. ct.
+ 16.0
-26.
P. ct.
+24.7
+20.9
5-2.0
29 +31.7
+18.0
+20.4
-2L8|"
P.ct.
P.ct.
P.ct.
-9.5
District.
No. 4
No. 6
No. 7
No. 10
No. 11
No. 12
P.ct.
P. ct.
+29.6
15
+ 15.0
+32.0
+23.7
Pet.
3 -25.0
+37.31 21
DISTRICT NO. 6 (ATLANTA).
A majority of reports received from wholesale grocery firms in the district show substantial reductions in the money volume of sales
during July as compared to sales for June.
Most reports show increases over sales for
July, 1919, ranging from 5 per cent to as high
as 65 per cent and 70 per cent. While there
The increased volume of orders booked in
July by wholesale dealers in dry goods, hardware, drugs, and automobile supplies, as reported by our correspondent firms, indicates
that retailers are now beginning to lay in
stocks in preparation for the fall trade.
Reports indicate that the wholesale apparel
trade shows symptoms of renewed strength,
following an exceptionally dull summer season.
According to newspaper accounts of the first
"buyers excursions" recently conducted by
the large wholesale centers in this district,
buying of fall merchandise has opened up on
a more enlarged scale than the wholesalers
were led to expect by the previous attitude of
extreme caution on the part of the retail distributors. Although the excellent crop prospects have unquestionably created a more
hopeful feeling in all lines of business, the effect
of the present strained condition of credit is
still apparent in the volume of orders reported
booked by the wholesale trade last month, as
contrasted with sales in July, 1919.
While all reporting lines except farm implements showed an increase in sales over the
month of June, 1920, July sales of dry goods,
groceries, auto supplies, and farm implements
were below the record of July, 1919. Only
SEPTEMBER, 1920.
927
FEDERAL RESERVE BULLETIN.
hardware and drugs scored gains for the 12month period. July witnessed an appreciable
slowing up of collections as compared with the
situation earlier in the summer. It may be
said, however, that a falling off in collections
at this season of the year is a normal occurrence, as payments are usually at a low ebb
just prior to the harvesting of the cotton crop.
Wholesale prices generally were stationary
in July, with a slight weakening shown in certain grocery staples and in dry goods, and an
upward tendency in the drug and" hardware
lines. Hardware dealers report that it is becoming increasingly difficult to secure goods
from manufacturers, whose supply of raw materials and manufactured stocks is said to be
unusually low at this time. Wholesale stocks
on hand July 31, measured by cost values,
showed substantial increases over those of a
year ago in all reporting lines except dry goods.
This situation denotes, to some extent at least,
an improvement in the transportation service,
which, though still the subject of general complaint, is more satisfactory than it was a year
ago.
DISTRICT NO. 12 (SAN FRANCISCO).
Department stores and wholesale grocery,
dry goods, and shoe stores reported a slight
downward tendency in prices during the past
month, while wholesale hardware, stationery,
and furniture stores reported an upward tendency in prices. Reports indicate that the
transportation situation is not interfering with
local deliveries, but many concerns report
difficulty in securing shipments from the East
because of car shortage. Collections during
July were reported in general as good, the
same as in June, although an increasing number of stores reported that July collections
were only fair.
Percentage of increase in net sales Jan. 1-July 30, 1920, over
same period, 1919.
Sta- FurniGroHard- Dry
TotaH
ware. goods. ceries. Shoes. tionery. ture.
Los Angeles
Sacramento
San Francisco
Portland
Salt LakeCitv
Seattle
Spokane..
Tacoma
59.7
46 0
52.2
33.0
34.8
18 7
28.5
28.2
32.5
20.9
25.2
19.3
49.1
31.9
"26." 6* "58." 8"
57.1
87.7
30.1
District
42.3
27.7
48.9
37.5
52.2
21.2
20.9
- 7.2
52.9
54.3
50.0
23.5
37.5
41.4
82.4
51.0
74.5
46.5
27.6
35.9
21.9
33.6
28.9
33.0
27.5
14.3
43.4
55.4
34.2
Drugs: San Francisco, 21.3 per cent; district, 25.2 per cent.
1
2
Includes reporting drug
firms.
Decrease.
Percentage of increase or decrease in net sales for July, 1920,
over June, 1920.
Sta- FurniGroHard- Dry
Total.
ware. goods. ceries. Shoes. tionery. ture.
Los Angeles
Sacramento
San Francisco
Portland
Salt Lake City
Seattle
Spokane
Tacoma
District
i 6.7
119.4
13 6
M.O
1
1
18.3
13 6
12.6
i 7.7
40 3
19.0
1
1.2
18.6
33.4
1
7.9 i 10.9 122.3
8.6
12.4 1
14 2
12 3
22.9
5.4
38.0 16.5
l
11 9
2 6
14.2
M.I
12 9
12 1
126.4
!9.4
0.4
18.9
1.8
17.5
1.2
i 2.5
12.8
110.5
15.5
6.7
5.4
i 10.0
5.5
Drugs: Portland, 8.2 per cent; i district, 4.7 per cent.2
i Decrease.
Loans for Essential Industry.
Governor Harding, in a letter of reply to a
lumber company on August 27, discussed the
question of essential production as follows:
The Federal Reserve Board has done nothing by act or
implication to discourage loans for essential building operations. The Board is well aware that the country is several years behind in its building operations, due to curtailment during the period of the war. It recognizes the
Condition of Wholesale Trade During July, 1920, in urgent need for more houses for dwelling and business purposes and realizes that construction work now under way
District No. 12.
is not nearly great enough to supply the requirements.
Percentage of increase or decrease in net sales for July, 1920, This is due in part to the difficulty in making the necessary
financial arrangements, for many of the savings banks, inoxer July, 1919.
surance companies, and other lending institutions have
invested heavily in Government bonds and are just finishSta- Furniing the liquidation of the indebtedness incurred in making
Hard- Dry
Gro- Shoes. tionTotal.i
these investments, while others have applications on file
ware. goods. ceries.
ery. ture.
for loans which have to be taken up in regular course.
Another obstacle to the progress of building operations is
15.3
29.3
4.7
52.0
20.2
7.1
Los A.ngeles
the lack of adequate transportation facilities. We are now
12.2
Sacramento
8.4
7.7
30.4
33.5 2 1.5 2 23. 7 45.1 2 18.8
11.8 having the seasonal movement of crops and the facilities of
San Francisco
15.8
1.8 2 34.3 80.5
8.8 the railroads will be severely taxed for the next few months
1.1
Portland
54.8
-4.3
74.8
4.1 in furnishing adequate transportation for this purpose.
Salt LakeCitv
4.1
7.9 "ih'.S
""i.S
10.1 The abnormal cost of construction is having its effect upon
20.8
Seattle
28.2
12.3
21.8
78.6
57.2
Spokane
37.6
14.1
8.5 building operations, many owners being reluctant to build
6.1
Tacoma
11.1
under existing circumstances, even where they are able to
37.3
21.8
8.8
20.4
31.7
2.7
12.0 make satisfactory financial arrangements.
District
While the Federal Reserve Board has pointed out the
Drugs: San Francisco, 29.1 percent; Portland, 11.1 per cent dis- necessity, in the present circumstances, for the exercise of
trict, 23.7 per cent.
more discriminating judgment on the part of banks gener2
ally in granting accommodations, it has repeatedly stated
Includes reporting drug firms.
Decrease.
928
FEDERAL RESERVE BULLETIN.
that care should be taken to do nothing to interfere with
essential production. The Board has never undertaken to
define what in its opinion might be regarded as essential
and nonessential loans; it has stated that this is a matter
which should properly be left to the judgment of the individual banks. There can be no question that the production and distribution of the basic necessities of life, such as
food, fuel, and clothing, are essential, and it is obvious that
shelter is also a fundamental necessity.
The Federal Reserve Board does not feel that it can be
justly charged with responsibility for any restrictions of
credit to the building industry. The rediscount transactions of the Federal Reserve Banks are limited by section
13 of the Federal Reserve Act and reserve banks are not
permitted to make direct loans to borrowers; they can
only discount for member banks upon their indorsement
"notes, drafts, and bills of exchange arising out of actual
commercial transactions; that is, notes, drafts, and bills
of exchange issued or drawn for agricultural, industrial, or
commercial purposes, or the proceeds of which have been
used, or are to be used, for such purposes, the Federal Reserve Board to have the right to determine or define the
ciaracter of the paper thus eligible for discount within the
meaning of this act." "Notes, drafts, and bills admitted
to discount under the terms of this paragraph must have a
maturity at the time of discount of not more than 90 days,
exclusive of days of grace." The Federal Reserve Banks,
therefore, clearly have no power to finance building operations in the sense that a savings bank or insurance company can finance such operations by taking a mortgage
extending over a term of years, but when a building operation is properly financed in advance by contract with
some responsible individual, firm, or corporation to furnish
money at various stages of the construction, a reputable
owner or contractor ought to have no difficulty in getting
short-time accommodations at his bank for pay-roll purposes or for current purchases of material. Notes given
under these conditions maturing within 90 days and otherwise conforming to the provisions of the Federal Reserve
Act are eligible for discount at a Federal Reserve Bank
when offered by a member bank with its indorsement.
Erratum.
Attention has been called by Mr. Basil B.
Blackett, of the British Treasury, to an error
contained in statistics printed in the FEDERAL
RESERVE BULLETIN for July (p. 667). At that
point the note circulation of the United Kingdom at the end of May, 1920, was given as
459,780,000 pounds sterling. This figure, Mr.
Blackett points out, really includes twice over
7,850,000 pounds sterling of bank notes held
in the currency note reserve. To that extent
it vitiates the comparison with 1919, inasmuch
as no notes of the bank were then held in the
currency note reserve. In future this factor
if not allowed for may seriously affect figures,
the notes of the bank held in the currency
note reserve about the beginning of August
already amounting to 18,600,000 pounds sterling. Allowance should therefore be made in
the figures given on page 667 of the BULLETIN
for July to the extent of the 7,850,000 pounds
sterling for which allowance was not made.
Thanks are due to Mr. Blackett for the information.
SEPTEMBER, 1920.
TERMS OF SALE.
The following is the sixth of a series of
articles giving data as to current practice and
recent history of terms of sale in the principal
industries. Acknowledgment is due the various branches of the Government and the many
business houses, individuals, and trade associations who have courteously furnished the information.
TANNING.
The tanning industry is very complex.
There ar& two principal branches. Soleleather manufacturers confine themselves
largely to this branch, although also producing
belting and harness leather to some extent.
There is a greater diversity in methods of
tanning upper leather and a tendency to
specialize
on making certain classes and
grades.1 The product is more varied, due to
a wider range of uses, and there is a larger
number of kinds of raw material. In addition
to producing the various types of upper
leather, a few tanners also include in their production bag and case, glove, fancy, and book
leather. Most sole-leather tanners have a
standard product for which there is a steady
sale, consequently they produce considerable
stock in advance of orders.
Leather is largely sold direct by the tanner
to the manufacturer of leather products.
Estimates place the proportion of leather sold
direct at over 75 per cent of the total output,
these figures including sales by tanners through
associated houses and subsidiary companies.
Although perhaps the majority of firms from,
whom reports were received indicate no change
in distributive methods during the past decade,
some tanners report an increasing tendency
to sell direct instead of through selling agents.
The latter, however, may be employed in the
sale of leather at a considerable distance from
the tannery. One tanner believes that upper
leather is sold to a larger extent through agents
than is sole leather. The amount passing
through the hands of leather dealers is very
small. They are employed more largely in
cleaning up job lots and in distributing to the
smaller manufacturer.
While considerable
upper leather is sold on consignemnt, it is
understood that a large quantity is sold outright. Commission merchants in recent years
are stated to be to a considerable extent becoming direct owners of tanneries, and also
hide importers and dealers. During the war
period a considerable increase was noted in
the number of small speculative jobbers.
1
Certain of the data contained in this article have been taken from
Onthank, The Tanning Industry.
SEPTEMBER,, 1920.
FEDERAL RESERVE BULLETIN.
Among jobbers, the " finders " are an important
class, cutting up the stock and selling the
smaller finder, cobbler, or shoe-repair man who
is limited in his means, and carrying the large
number of articles, such as thread, machine
parts, rubber heels, etc., which he requires.2
Leather belting is sold almost entirely direct
by tanners to the manufacturers.
The tanning industry has no marked seasonal
aspect, and one tanner states that purchasing
depends largely upon market conditions, business being unusually good when prices are firm
and advancing, while less buying occurs when
prices are weak and easier. On the whole,
however, business of the second half year is
heavier than the first. Although most tanners
who furnished data report no change in this
regard during the past decade, some report
that seasonal fluctuations are now less pronounced. One tanner states that since terms
on sole leather were changed about 10 years
ago, fixed buying periods have been largely
obliterated. Broadly, there are, of course,
two seasons, spring and fall, with a short dull
period of several weeks after each season. It
has been stated that deliveries in October in
general are heaviest, due to the fact that shoe
manufacturers are stocking up for their next
run, as well as to reorders for midwinter trade,
while activity is lowest about April or later.
This applies more largely to leather used by
the shoe industry, which it has been estimated constitutes about
70 to 80 per cent of
the total output.3 The demand for belting
leather is not seasonal, but varies according
to industrial requirements. When business is
normal there is a steady trade all the year
around in fancy leather. Purchases are made
in the late winter and early spring for Easter
business, and in the late summer and fall for
Christmas business, with subsequent fill-in
orders, and there is considerable buying for
advertising purposes.
There are many variations in terms of sale
in the industry as a whole, but in each branch
certain terms are recognized as regular. Standard terms for sole leather are 4 per cent 10
days, 3 per cent 30 days, 2 per cent 60 days,
net 90 days. A considerable number of tanners, however, do not quote the 90-day terms,
while some also omit the 60-day terms.
Twenty days extra is largely given, or payments permitted by a given date of the following month, such as the 10th or 15th, for the
previous month's shipments. It has been
stated that the terms oi 3 per cent 30 days aie
929
practically ignored. Certain tanners give no
20 days extra to purchasers taking 60 or 90
days. Some tanners make shipments direct
from the tannery instead of from warehouses
in the larger centers, and in this case terms are
often made cash discount for payment on
arrival. Terms were changed some years ago,
the general consensus of opinion placing the
time at about 8 to 10 years. Prior terms were
5 per cent 10 days, 4 per cent 60 days, "with
almost any dating a shrewd buyer would feel
inclined to exact under abnormal market conditions/ ' and the change occurred as a result
of the strain upon the tanner's resources. At
first no 20 days extra was given, but this was
shortly granted. It is stated by several authorities that dating is occasionally permitted
at present, as for example, to jobbers in dull
times. One tanner states that more recently
there has been considered the question of
reducing the discount from 4 per cent to 2 per
cent which, state two authorities, was also
attempted at the time the change in terms
was carried7 out. The regular terms apply also
on tanners sales of cut soles, which are produced by several leading tanners (as well as by
specialized manufacturers), and on rough belting leather. Finished belting leather, however,
bears terms of 5 per cent 10 days, with 4 per
cent 60 days under special arrangement to
cover long time in transit. Cut stock for shoe
repairing purposes bears terms of 1 per cent
10 days, in some cases with 20 days extra, and
in some cases with net terms of 30 or 60 days.
A leading tanner engaged in the sale of cut
stock to finders makes terms of 1 per cent 10
days, net 30 days on blocks and strips, but
quotes 4 per cent 10 days, 2 per cent 30 days,
net 60 days on other classes of cut stock.
Regular terms on upper leather, including
glazed kid and patent leather, are 5 per cent
10 days, 4 per cent 30 days. Considerable
flexibility exists with reference to the discount
period, and monthly settlement, ranging from
the 1st to the 15th, is frequent, while in many
cases 30 days is granted. Under special agreement, with the 4 per cent discount, 60 days is
specified in a few cases instead of 30 days.
It has been reported that "the New England
trade usually demand and frequently obtain"
such terms. One tanner states that "it is not
so much a question of changing terms as making
our customers live up to them," while another
states that "terms of sale do not seem to be
considered an obligation or contract to most of
the shoe trade, and there is tremendous abuse
in regard to the time taken in the payment of
2
It is estimated that from 30 to 35 per cent of all soleleather goes from bills and the amount of discount deducted."
manufacturers
to sole cutters and the shoe-repair trade.
3
I>ata obtained by the Federal Trade Commission for the year 1918 It has been stated by one authority that about
give the output of shoe leather as 59 per cent of the total when measured 10 years ago an unsuccessful effort was made
in square feet, and 74 per cent when measured in pounds.
930
FEDERAL RESERVE BULLETIN.
by certain tanners to shorten terms and reduce
discounts on upper leather, while another states
that some years ago an effort was made to reduce the discount to 4 per cent. While these
are the terms on finished leather, rough leather
carries only a 1 per cent discount.
Usual terms on harness leather are 2 per
cent 30 days, net 60 days and in some cases net
90 days, while russet collar leather carries terms
of 2 per cent 10 days and in some cases 3 per
cent 10 days, net 30 and 60 days.
During the last few years terms on glove
leather have been shortened and discounts reduced or abolished. At the present time they
range from net 10 days to net 30 days, in the
latter case often carrying a discount of 1 per
cent or 2 per cent 10 days. It is stated that
the great majority of fancy leather manufacturers employ terms of either 2 per cent 10
days, net 30 days, or 2 per cent 30 days. Exceptions noted are granting of the discount on
accounts taking more than 30 days, the quoting of net 30-day terms and by several smaller
manufacturers of terms of 3 per cent 30 days,
which latter were the general terms up to
several years ago. Purchases by fancy leather
goods manufacturers from tanners producing
chiefly sole leather carry the regular sole-leather
terms" of 5 per cent 10 days, 4 per cent 30 days.
Coat leather is sold on terms of net 30 days.
Customary book-leather 4 terms are 2 per cent
10 days, net 30 days, and for upholstery
leather 2 per cent 10 days.
The trade acceptance is used only occasionally
in the industry, the individual tanner when
employing it at all employing it only on a
very small proportion of his accounts. Its use,
however, is reported to have increased during
the past year. A leading tanner states that
" accounts not handled on a discount basis are
not considered satisfactory," and estimates
that from 15 to 20 per cent of accounts run
overdue, although not seriously, and in a large
majority of cases interest is added for the
overtime. While many tanners note no difference in collections from the various classes of
purchasers, it has been stated that " shippers
generally regard the shoe trade as more desirable than the jobbing trade." Collections from
larger jobbers and finders, however, are stated
to be as prompt as collections from shoe manufacturers, and several tanners consider them at
times more so, but the smaller jobbers and
finders are naturally less prompt. Small
dealers are stated mostly to obtain their supplies through larger jobbers. In the words of
one tanner, "in most cases a jobber is trying to
do too much business on his given capital, that
SEPTEMBER, 1920
is, he is endeavoring to buy on extended terms,
sell on a cash or 10-day basis, and turn his
capital from his customer to his source of purchase without great obligation on his part,
thus causing occasional lack of ready funds,
hence delayed payments." Several leading
tanners state that some shoe manufacturers at
times in the early part of their season when
they are obliged to make and hold shoes for
delivery dates are inclined to be slower in payments than ordinarily. One tanner of sole and
belting leather considers belting manufacturers
more prompt, while another reports no difference in collections on shoe and harness leather,
with glove-leather collections slightly less
satisfactory.
While the majority of authorities report that
jobbers' terms do not differ from tanners', some
believe that dealers' terms were more liberal
in the time given, although the standard discounts are the same. As jobbers sell to smaller
accounts, which the tanners would not solicit,
their collections are believed to be less prompt.
Finders' customary terms are stated to be 2
per cent 10 days, net 30 daj^s, althougn in certain districts longer net terms, such as 60 days,
are given. Finders' collections are stated to
have greatly improved during the last few
years with the placing of the shoe-repairing
industry on a more businesslike basis.
BOOTS AND SHOES.
It is estimated that approximately 60 per
cent of the total output of shoes is distributed
through jobbers, and, states one authority, the
percentage would be even greater were jobbing
houses owned b}^ manufacturers included.
Certain manufacturers also distribute goods
from other factories in addition to their own.
In St. Louis in particular there has been an
increasing tendency during the past decade for
manufacturers to job also shoes produced by
other manufacturers. Practice with respect to
sales to jobbers varies between the different
markets, and thus in Cincinnati manufacturers
in general do not sell jobbers, while in Rochester, where women's and children's shoes are
produced, the percentage is estimated at 40
per cent. The same manufacturer ordinarily
does not sell both wholesaler and retailer.
Heaviest sales by manufacturers are in March
and April and in September and October,
heaviest production in December to March and
June to September, and heaviest shipments in
February to April and August to September.
Terms on which manufacturers sell vary
considerably, instances reported ranging from
net 10 days to discounts of 10 per cent, one
manufacturer reporting 7 per cent for payment
* Onthank, op. cit., p. 37, gives the discount as either 2 or 3 per cent.
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
931
25th e. o. m. Distinction is made by certain ported that St. Louis houses in 1918 granted
manufacturers between different types of sales, July 1 due date on this item, whereas other
one Cincinnati house thus having regular terms markets granted June 15, as did the rubber
on goods to be made up of 2 per cent 10 days, ompanies also.
net 30 days, to retailer, with 30 days extra on
Prior to 1918 general terms of shoe wholeshipments over 1,000 miles; 5 per cent 10 days, salers were largely net 60 days, with considernet 30 days, to department stores, and 6 per able variation in the cash discounts given,
cent 10 days, net 30 days, to jobbers, while net which ranged roughly from 1 per cent 10 days
30 days is quoted on goods sold from the floor to 5 per cent 30 days, but averaged 2 per cent
or out of stock. On sales to jobbers the cash 10 days, in some cases with 1 per cent 30 days
discount will be stressed, whereas on sales to quoted in addition to the latter, for example,
retailers the norm is largely net terms of 30 in New England largely. In the fall of that
days, as will be indicated below, although net5 year, upon the suggestion of the Allied Council
60 days is quoted by some manufacturers. of the American Shoe and Leather Industries
This is reflected in the difference in the per- and Trades, an attempt was made to change
centage of wholesalers and retailers who take terms to net 30 days, and " a movement, which
the cash discount, estimated for the Rochester had considerable strength, developed for dismarket as 80 per cent and 50 per cent for the count of 1 per cent 10 days, and although it is
respective classes. The average percentages far from uniform, the trend seems to be toward
range from 50 per cent to in some cases 60 to the latter figuring.77 The matter was discussed
70 per cent. A substantial percentage of over- by both the National Association and the four
due accounts is shown, several houses stating constitutent territorial associations, each of
that 20 to 25 per cent of retailers run beyond which has had for some years a committee
the net period. A shortening of terms is re- dealing with the subject of terms, discounts,
ported during the past decade and greater and overdue accounts, and there was general
uniformity has been introduced. Very little agreement as to the desirability of these terms.
use of the trade acceptance is reported by Local groups have also considered the matter,
manufacturers.
and on various occasions there have been
Due to the fact noted above that shoe manu- resolutions passed recommending certain terms.
facturers in large part also engage in jobbing, A survey made in 1919 by the committee of
purchasing other makes and maintaining stocks, the National Association, and embracing 159
little attention apparently has been paid to the houses, showed that in the New England,
terms upon which the wholesaler purchases. Middle Atlantic, and Middle Western sections
This activity has been confined more largely to there was general adherence to terms of 30
rubber and tennis footwear, in which a con- days, although in the South the reverse was
tract is signed with the manufacturers for the true. Certain houses made terms of both 30
ensuing year. At the January, 1920, meeting days and 60 days. Less uniformity was, howof the National Shoe Wholesalers Association, ever, noted on the question of discounts.
it was suggested that whereas canvas footwear While in New England 1 per cent was cusand tennis shoes were billed out on a net due tomary, in the Middle Atlantic States 2 per
date of June 15, and fall shipments of rubber cent was more frequent, due to the fact that
boots and shoes on November 1, bearing terms Philadelphia and Baltimore houses, with few
of 1 per cent 10 days net 30 days, and in the exceptions, were on a 2 per cent basis. In
interests of uniformity, rubber boots and shoes the South 2 per cent was almost universal,
should bear due date of December 1, allowing while in the Middle West the number of houses
12 per cent for anticipation, or canvas foot- allowing 2 per cent was considerable, although
wear should be billed May 15, 1 per cent 10 somewhat less than those allowing 1 per cent.
days net 30 days, but no action was taken in In the South some houses reported the employview of the need for conforming to the action ment of net terms only, while in the Middle
of the company stores. A resolution was intro- West more houses employed such terms than
duced by the committee on datings, discounts, granted a discount of 2 per cent, although the
and overdue accounts of the Western Asso- figure was somewhat less than those granting
ciation in 1918, providing that all tennis a discount of 1 per cent. As a result of its
invoices from May 15 to January 1 be due 30 survey, the committee stated that "very
days from shipment date, and that invoice; gratifying progress has (apparently) been made
from January 1 to May 15 be due and payable in shortening terms and discounts/' The
June 15, but no action was taken. It is re- movement has since continued, although exceptions to the terms of 1 per cent 10 days,
6 Little differentiation is reported by manufacturers between terms net 30 days, are still found. With the excepon which they sell their own goods and those of other manufacturers
tion of the South, almost all new accounts
-which they job.
932
FEDERAL RESERVE BULLETIN.
were stated recently to be on a 1 per cent 10day, net 30-day basis. Turning to the several
sections, at the opening of the present year
practically all upstate houses in New York
were believed to be on the new basis, and some
New York City houses in fact quoted 2 per
cent to New York City trade and 1 per cent
upstate and in New England. In the West
terms were considered in 1918 at several group
meetings, the change being initiated at St.
Joseph, and finally accomplished at a Chicago
meeting. Net terms were fixed at 30 days,
with 15 days extra for shipments of 1,000 miles
or over. At the November, 1918, meeting of
the Western Association data obtained showed
that three-fourths of the firms replying had
adopted the 30-45 day terms, most frequent
discounts being 1 per cent and 2 per cent and
absolutely net, and a resolution was passed
favoring the elimination of the cash discount
and making the terms net 30 or 45 days, with
latest shipping dates on white goods or low
shoes April 1, as concession to northwestern
houses. While the Southern Association has
considered the matter of terms during the past
two or three years, the same success does not
appear to have attended its efforts as has been
the case with the other associations. It is
generally agreed that the change in terms has
been made with little difficulty, and that there
has been no adverse effect upon business.
There has also been the saving in the discount,
in addition to more rapid inflow of funds, and
corresponding reduction in bank borrowings.
An aid thereto, of course, has been the merchandising situation in the industry.
Advance orders have always been taken,
although it is stated from New England that
the seasonal aspect of the industry has been
less marked during the last few years, due to
active consumption and more frequent purchasing. Orders are taken for shipment on a
given date, with the seller retaining the privilege of prior shipment, in which case the goods
are billed as of the date called for in the order
in place of date of shipment, and carrying the
usual terms. Time of shipment varies somewhat, and likewise the " dating" granted.
Spring shipments in general will be made from
December on, January, February, and March
being the heaviest months, and the most frequent datings are March 1 and April 1, although
February 1 and May 1 may also be granted.
Fall shipments in general will be made from
May on, July, August, and September being the
heaviest months, and the most frequent datings
are September 1 and October 1, although
August 1 and November 1 may also be granted.
Certain houses have eliminated the season
dating entirely.
SEPTEMBER, 1920.
Considerable interest has been manifested in
the trade acceptance, and some educational
work has been undertaken by the associations,
but little use on the whole is made of the instrument. In 1918, of 62 middle western houses,
16 were using it with satisfactory results, while
13 were desirous of employing it, but considerable lack of knowledge of its proper use was
found, as well as lack of interest due to shortness of terms and fear of loss of business
through nonuniversality of its use.
As noted above, the committees of the
national and constituent associations deal
with overdue accounts as well as terms and
discounts. The practice of charging interest
on overdue accounts is widespread in certain
sections, being reported as general in New
England. Particular interest has been manifested by the Western Association, only 9 out
of 67 reports to it in 1918 showing no interest
charged, while in 1919 the proportion had
fallen to 3 out of 40.
LEATHER MANUFACTURES.
Fancy leather goods, such as hand bags, card
cases, etc., are sold by approximately half the
manufacturers to both wholesalers and retailers , whereas the other half is about equally
divided between sales exclusively to wholesalers and exclusively to retailers. Discounts
have varied greatly within the last 10 years,
and prior to about 5 years ago there was no
standardization. Department stores in particular received discounts up to 7 and 10 per
cent at that time, but these have since been
largely abolished. The recognized present
terms are 2 per cent 10 days, net 30 or 60 days.
Certain manufacturers, however, employ terms
of 2 per cent 10 days, 60 days extra. As
amounts are comparatively small, little use is
made of the trade acceptance.
Heaviest deliveries of saddlery north of the
Mason and Dixon line occur from December to
February, while south of the line they occur
during June and July. Adopted terms of the
Wholesale Saddlery Association were shortened
in 1917 from net 60 days from date of shipment
to net 30 days, both with a cash discount of 2
per cent 10 days. Anticipation of season dating is permitted at the rate of 6 per cent per
annum, while provision is made for collection
of interest at the legal rate in the debtor's State
on overdue accounts. Datings shall be given
only on manufactured leather goods, sweat
pads, summer and winter horse clothing, and
lap robes. Except in nine of the Southern
States, a maximum spring dating of March 1 is
permitted on shipments made not earlier than
December 1, while in Texas a maximum fall
FEDERAL RESERVE BULLETIN.
SEPTEMBER,, 1920.
dating of August 1 is permitted on goods
shipped not earlier than June 1, in Arkansas
and Louisiana the respective dates are September 1 and July i? and in the remaining six
Southern States October 1 and July 1. Northern Oklahoma has a maximum spring dating
of March 1 on shipments made not earlier than
December 1, and southern Oklahoma a maximum fall dating of September 1 on shipments
made not earlier than July 1. Both datings
are permitted in Tennessee. In addition there
are certain season goods, such as summer lap
robes (July 1), fly nets, and horse cloth (June 1),
winter horse cloth (October 1), and fur goods
(November 1), which carry maximum datings.
It has been estimated that roughly 25 per
cent of the output of leather belting is sold to
dealers. The industry is not seasonal, demand
differing but slightly at different seasons of the
year. The most frequent terms are 1 per cent
10 days, net 30 days, although some houses employ terms of 2 per cent 10 days, net 60 days
and a small number net 30 days. Proximo
terms are granted in certain cases. During the
past decade terms have been reduced from 2
per cent 10 days, net 60 days. It is stated
that "the great bulk of the business is paid
promptly and advantage taken of discounts."
LUMBER.
Manufacture.—The outstanding feature of
the lumber manufacturing industry for the
present purpose is the existence of a large
number of operators, estimated at upward of
40,000, and ranging all the way from the small
portable mill, which may operate on either
virgin timber or second growth, to the large
mill operating on extensive bodies of virgin
timber. Only within recent years has it been
possible, largely through the activity of the
lumber associations, to attain some measure
of uniformity in selling and financing methods, and to set up certain standards. In
spite of certain differences in demand, and the
varied problems of production, these standards, however, are similar as between the diferent kinds of wood, as all manufacturers and
wholesalers come into competition6 with each
other to a greater or lesser extent.
Terms of sale may be divided substantially
into three classes. First are those calling for
part cash, such as 10 per cent or more, with
order and the balance on receipt of notice of
shipment. Such terms are used by the very
933
small operator without yards, who puts his
product in transit as soon as cut. It is stated
that in some cases wholesalers pay such operators in full in advance, thus furnishing the
funds for the business, while in other cases
80 to 90 per cent, and in some instances up
to 98 per cent, may be paid on receipt of
invoice and balance on arrival of car. Second
are terms embodied in special contracts drawn
to cover a considerable period of time. This
form is usually employea between large mills
and wholesalers and manufacturers of products
such as furniture, where these manufacturers
receive their entire supply of raw material
from the mills in question. These terms vary
according to the individual case.
The terms recommended by certain of the
larger manufacturers' associations, which have
interested themselves in the subject during the
past 8 or 10 years, provide the third class.
Frequent deviation, however, is found, and
the terms must be regarded rather merely as
representing a norm. They usually form part
of a series of provisions which are far wider
in scope, and cover also matters such as
grades, deliveries, claims, etc. The cash discount specified, in particular by eastern and
southern associations 7 has been 2 per cent 10
days or 15 days from date of invoice on the
net amount
of the invoice after deduction of
freight,8 in some cases if9 the remittance is
mailed within that time. While for many
years 15 days was the universal discount
period, it is stated that the western producers
found themselves handicapped by this arrangement, due to the fact that cars were in
transit from 15 to 30 days, and as they got
farther and farther east with their product and
railroad congestion increased, delivery took 60
days or more, whereas in the south and east
rail delivery was usually secured within the
15-day period. As a result, the discount period
was not as strictly observed by the western
shippers. The majority of the western associations, as well as one northern and one
southern association,10 now have instead a
clause permitting the cash discount for payment within 5 days after arrival of the car,
in general as evidenced by the paid freight
bill. Toward the close of 1917, three
of the western and northern associations,
7
One association provides for discount for payment on receipt of
invoice. Several other associations report these discounts generally
in8use among their membership.
A delivered price is generally quoted, and deduction of the freight
by9 the purchaser permitted.
With a relatively few producers the discount is 1£ per cent, and in
6 One authority believes however that, as the value of the average only one territory may it be said to be practiced in a territorial way,
carload of hardwood is considerably in excess of that of a carload of namely, Buffalo and Tonawanda, and there it is largely confined to
through New York State.
softwood, and as many of tile consumers of hardwoods are in business sales
10
in a small way and with limited capital, in actual practice more liberal
One western association states that 1 per cent 5 days after arrival
terms are extended on hardwoods.
is in general use among its membership.
934
FEDERAL RESERVE BULLETIN.
in the belief, it is stated, that terms would
ultimately be entirely on a net basis and that
a 2 per cent discount was excessive, reduced
the discount in their recommended terms to
1 per cent. Great difficulty, however, was
experienced, and the former discount was restored after about a year. In several cases
1 per cent 30 days from date of invoice is also
specified, and in the case of one southern association, which has terms calling for 2 per cent
within 5 days after arrival of car, the 1 per
cent is given for payment within 30 days after
arrival instead of invoice date.
Standard net terms are 60 days from date of
invoice, although in a few cases where no
terms have been recommended it is reported
that 30 days is given instead. In certain
cases provision is made for a trade acceptance,11
and several associations specify that it be
mailed within a certain number of days,
such as 10 or 15, after the invoice date. One
association permits 90 days with a trade acceptance as against 60 days with a note settlement. Difficulty arises in case a buyer
wishes to discount his bill, but has not as yet
received the
shipment. Largely in the West
and South,12 a clause is included to govern
terms in the event of nonarrival of the car
within a certain period, either the discount
period, where this is a specified number of
days after date of the invoice, or where this
period is 5 days after the arrival of the car,
within 30 days or the net period of 60 days.
In this event it is usually provided that 90
per cent of the invoice, less the estimated
freight (the actual figure for which, however,
is given by many shippers) shall be paid, and
the balance be due on arrival and inspection.
In certain cases, principally in the West, a
provision however is inserted prohibiting the
deduction of the discount when payment is
not made within a specified number of days
after the date of the invoice, in certain cases
30 days and in other cases 60 days.13
The associations7 terms, however, are by no
means adhered to in all cases. Thus, for
example, a southern association which has
recommended the 2 per cent 10-day, net 60-day
terms, reports that many do not adhere to the
terms and accounts frequently run 90 days,
while they are often closed by notes running
three to four months. Terms in fact vary with
general market conditions, and it is stated that
in consequence of the heavy demand during
11
Another also reports the use of the trade acceptance to cover the net
period.
!2 Another also reports use of the clause by its membership.
is One association specifying 30 days states that the arrangement has
been provided "to allow sufficient time for the shipper to render invoices and tally sheets and for the consignee to receive, check and
make remittances and take advantage of the discount."
SEPTEMBER, 1920.
the past year "mills did a great deal of business on a cash with order basis." It is stated
that wholesalers at present discount practically all bills. Considerable difference also
exists between purchasers with respect to the
promptness with w^hich payments are made on
bills which are discounted. Thus a western
association stated last year that the larger
line yard buyers with headquarters in Minneapolis and Kansas City, pay within 15 days
from invoice date, which was two to three
weeks in advance of receipt, while others paid
5 days after arrival of car and still others up
to 15 days thereafter.
Wholesale.—A study published in 1918 states
that "there has been a marked tendency in
recent years to increase the sales of lumber
from the sawmill
direct to the larger consumer,
or retail yard/' 16 Wholesalers, however, state
more recently that the recent high prices prevailing and the increased cost of doing business
has resulted in mills seeking the wholesaler,
and increased the proportion of business done
through them. The practice varies with the
different localities, 60 per cent of the output
of southern pine, for example, being sold
direct, chiefly by large mills, while on the
West Coast the figure is but 20 per cent. Considering the type of purchaser, a leading authority has given the following estimates of the
proportions of business done by lumber manufacturers and wholesalers with retailers, plan-r
ing mills, and manufacturing consumers. In
this compilation, the planing mill percentage is
separated from the general retail business,
although it is very common for a retail lumber
yard to operate a planing mill.
Section.
Retail.
New England
Middle Atlantic States ..
Southern Atlantic States
Central States
Western States
,
Planing
mill.
Manufacturing
consumers.
Per cent. Per cent. Per cent.
50
30
20
45
30
25
35
35
30
GO
30
10
40
30
30
Two leading middle western wholesalers,
ever, state that the trade of wholesalers with
retailers is a relatively small part of the business
in that section, although it is believed that in
the east the reverse is the case, and one estimates that 60 to 70 per cent of wholesalers' sales
in his territory are to manufacturing consumers.
Standard recommended terms were first
adopted by the National Wholesale Lumber
Dealers' Association in 1902. These terms
provided for net cash payment of freight, the
16
Dodd, Lumbering, p. 13.
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
balance to be settled for by note at 60 days
from date of invoice, or less 1J per cent if paid
within 15 days from date of invoice or 1 per cent
30 days. No discount was to be allowed after
30 days, but in the event of nonreceipt of car
within the discount times, prepayment was not
held to forfeit the right to make corrections.
These terms were reaffirmed at subsequent
conventions, although there had gradually come
about widespread deviation from them. In
1917 the committee on terms of sale unsuccessfully recommended the recognition of existing
conditions and instead the adoption of terms
calling for a note at 90 days from date of invoice, with a discount of 2 per cent if paid within 10 (Jays from date of arrival of car. It was
stated that terms at that time were in many
cases 2 per cent 30 days, net 90 days, from date
of shipment, which were first instituted in the
case of shipments to a distance in view of the
time the shipment was in transit. Several of
the retailers' associations have interested themselves in terms, and adopted recommended
terms on which their members purchase.
While this has been the most prominent in the
metropolitan district, it is stated that such
terms have been adopted among others in New
England, New York State, New Jersey, Ohio,
Pennsylvania, and Illinois. "The main point
in contention/' states one authority, "is that
the retailer would like to buy at a certain time
from arrival, whereas the wholesaler endeavors
to insist (in order to definitely fix the date) on
the time being based from date of shipment.
The reason for this contention has been the
great delays since the war in lumber coming
through." The recommended terms of the
New York (City) Lumber Trade Association
call for 2 per cent 10 days from date of arrival
or note due 3 months from date of arrival, and
a considerable amount of lumber has been
bought on these terms, while net 4 months from
arrival has also been employed. After a conference with representatives of other lumber
trade organizations, standard recommended
terms were prepared by the committee on terms
of sale of the wholesalers' organization, and
adopted at the 1920 convention. These terms
called for net cash 60 days from date of invoice,
or less 2 per cent if paid within 15 days from
date of invoice, or 1 per cent if paid within
30 days. Settlement by note or trade acceptance was permitted at 90 days from
date of invoice, same to be mailed within
10 days after arrival of car. In the event of
nonarrival of the car within the discount period
deduction of the discount was permitted for
payment within the discount period of 80 per
cent of the net amount of the invoice (estimated
freight deducted), the balance to be paid with-
935
in 10 days after arrival and unloading, but if
not so paid the discount was to be credited only
on the amount paid within the discount period.
The provisions as to freight and nonforfeiture
of the right to make corrections are again inserted, as well as the 30-day discount limit.
One authority states that many wholesalers at
the present time are trying to sell on terms of
1J per cent based on date of arrival, while they
take 2 per cent from the manufacturers, paying
in 10 days or less from date of shipment.
Among variations from these terms, it should
be noted that eastern lumber, manufactured in
New England and the Canadian Provinces, for
many years has been generally sold on special
terms of 1 per cent 10 days from date of invoice,
or net 30 days.
As in the case of payments to lumber manufacturers, considerable variation exists with
regard to payments to wholesalers. Data obtained from leading wholesalers indicate that
from 40 to 50 per cent of purchases are discounted, although considerable variation is
shown between individual firms and the percentage, of course, varies with general business
conditions. One authority states that woodworking concerns take full time and are considered slow, although the majority report no
difference between collections from retailers
and planing mills. It is generally agreed that
industrial consumers provide a higher percentage of discounters than do retailers, some
authorities stating that the former usually
discount their bills. Some large furniture
manufacturers, however, are reported by several middle western wholesalers to take "as
long as they can," and in one case pay interest
for the time (30 to 60 days) taken in excess
of 60 days. Requests for renewal are stated
to be more frequent in the territory east from
Pittsburgh, and come chiefly from the retail
trade. In such cases it is usual to require part
payment, in general 50 per cent, and the most
frequent additional period is 60 days, although
30 days and less frequently 90 days are also given.
In the industry, as indicated above, while
net terms in certain cases are on open account,
they are more frequently covered by a note.
Within the last few years the committee on
terms of sale of the National Wholesale Lumber
Dealers Association has advocated the use of
the trade acceptance, and the standard terms
were changed in 1919 by providing for the use
of either trade acceptance or note where net
terms were employed. The committee stated
in its 1920 report that the information which
it had indicated that the use of the instrument
was growing rapidly. It is stated, however,
that certain retailers in the larger cities who
do not discount endeavor to force the use of
936
FEDERAL RESERVE BULLETIN.
the open account, and frequently run beyond
the 90-day net period. It should be stated,
however, that while various associations have
recommended or approved certain terms, there
is no obligation on the part of the members to
adhere to those terms only, the action being
merely a recommendation considered in the
best interests of the industry for producing
uniformity in settlement.
FURNITURE AND STORE FIXTURES.
Furniture is largely sold by the manufacturer
direct to the retailer. In "the case of home
furniture, including both dining and bed room
types, it is estimated that 80 per cent or
more is sold in this manner, while for office
furniture the percentage is probably even
greater. Manufacturers of certain lines, in
particular filing equipment, however, have
chains of stores through which their product
is retailed. Store fixtures are largely sold
through agents, but are sold direct by certain
manufacturers.
Manufacturers of home furniture in many
cases distinguish between sales in carload lots
and less than carload lots and sales to wholesalers. Sales in less than carload lots carry
the smallest discount, in general 2 per cent
20 days or 30 days, with net terms of 60 days,
although in certain cases terms such as 2 per
cent 10 days, net 30 days, may be specified.
Proximo terms are frequently quoted. The
National Alliance of Case Goods Associations
some years ago adopted recommended terms
calling for 2 per cent 20 days, net 60 days,
which were amended in 1919 by giving 1 per
cent for a 60-day trade acceptance. Certain
of the constituent bodies have also recommended terms. Data obtained in 1919 from
102 firms in various sections of the country
as to terms in use indicated, it is stated,
a surprising uniformity in adherence to
the regular adopted terms, and not over
2 to 3 per cent employed other terms.
Carload lots in many cases carry a 5 per
cent discount in place of a 2 per cent, or
else an extra 5 per cent, the time given being
the same, although no net terms may be
quoted in certain cases, while frequently the
terms are the same as for less than carload
lots. Among southern manufacturers, however, the discount is stated generally to be 10
per cent, but a large number, possibly 30 or
40 per cent of the factories, have changed
terms from 10 per cent 30 days to 5 per cent
10 days. Jobbers' discounts range from 10
per cent to 20 per cent, although certain
manufacturers quote the same terms as on
SEPTEMBER, 1920.
carload and less than carload lots. It has
been stated, however, that the eastern factories are practically all on a net basis.
With the heavy demand for furniture in
recent years, there has been a tendency to
abolish datings and reduce discounts. Prior
to several years ago, extra dating, such as for
example 60 days, was given by some manufacturers, and retailers might obtain 30 days
extra on shipments at certain seasons of the
year, while it was also customary in certain
cases to accept notes with the privilege of
renewal. At the present time, 15 to 30 days
extra is given by certain manufacturers on
long-distance shipments, such as to the far
West. In the case of discounts, many of the
manufacturers gave cash discounts up to 5 per
cent, in which latter case terms of 2 per cent
30 days might also be quoted. Upholstered
furniture manufacturers prior to 1919 in many
cases gave discounts up to 5 per cent, but these
have been superseded by a 2 per cent discount.
Other manufacturers report the elimination of
quantity discounts.
Although the adopted terms of several of the
associations provide for the use of the trade
acceptance, the instrument in general is not
employed to a very considerable extent in the
industry. It is stated, however, that its use
is growing among southern manufacturers, and
it is now employed for from 15 to 20 per cent
of the accounts. Before the war 10 to 15 per7
cent of upholstered furniture manufacturers
accounts were covered by it, but as a result of
the subsequent existence of a sellers' market
and increased employment of cash terms, it is
not much used now.18 The percentage of cash
discounters reported by certain leading houses
ranges from 30 to. 80 per cent, with 50 per cent
most frequent. From some sources it is stated
that the percentage of accounts running overdue is smaller at the present time than in the
past. The following data were obtained in
1919, showing the number of days accounts
receivable on the books of certain representative manufacturers:
Manufacturers of—
Dining
Bedroom
room
furniture. furniture.
30 to 39 d a y s . . .
40 to 49 d a y s . . .
50 to 59 d a y s . . .
60 to 69 d a y s . . .
70 to 79 d a y s . . .
80 to 89 d a y s . . .
90 to 99 d a y s . . .
100 to 109 days.
110 to 119 days.
ia
A similar report was received from one eastern wholesaler.
SEPTEMBER^ 1920.
FEDERAL RESERVE BULLETIN.
Data obtained recently from certain houses
show 10 per cent running past due in the
majority of cases, averaging on the whole
about 30 days past due, although other houses
show percentages ranging from 20 to 50 per
cent.
Such information as has been obtained
indicates that jobbers7 terms do not differ
materially from manufacturers', although their
collections appear slower, a much larger proportion running past due. One eastern distributor reports that up to two years ago,
about one-half his settlements were made by
notes running 1, 2, 3, or 4 months. It is
stated that cash discounts of 5 to 10 per cent
were given on quantity business in former
years.
Terms of manufacturers of office furniture
are reported as substantially similar to those
of manufacturers of home furniture. The
cash discount is usually from 2 to 5 per cent,
10 or 20 days, with net terms of 30 to 60 days,
and carload lots carry a discount of from 3 to
5 per cent. A tightening up of terms and decrease in the maximum cash discount period is
reported during the past 5 to 10 years. The
percentage of cash discounters appears higher
than for home furniture, several firms reporting
as high as 95 per cent.
Very few firms engaged in the manufacture
of store fixtures at the present time give any
cash discount on their product, and only a few
firms building special lines of fixtures still give
a cash discount of from 2 to 5 per cent. The
standard terms in the industry are net 30 days,
and a very large proportion of the business is
done on these standard terms. A great many
sales are also made on the deferred-payment
plan. In this case an advance payment of
usually from 10 to 25 per cent is required, and
generally a total payment of from 25 to 50 per
cent is required before the goods are actually
delivered. The total time given seldom, if ever,
exceeds 12 months. A large proportion of the
deferred-payment business does not carry over
eight months' time, and many firms give no
more than six months.
The amount of deferred-payment business
has been gradually decreasing for several years,
sales made on the standard terms having increased correspondingly. Prior to 1913 a large
proportion of the business was done on the
deferred-payment plan, two or three years'
time often being given, and cash discounts were
also very common. The practice of giving this
long time, however, it is reported, has now been
almost entirely discontinued, and the business
is stated to be on by far the best basis as to
terms that it ever has been.
937
BOXES, SHOOKS, AND SHIPPING CONTAINERS.
It is estimated that more than 90 per cent of
the output of boxes and shooks 19 is sold direct
to users. Wholesalers who do a commission
business as well as buy outright for the most
part represent factories which are either located
at some distance from the market or are small
in size. Prevailing terms are 2 per cent 10
days, net 30 days, from date of shipment, but
some firms allow only a 1 per cent discount,
while others have eliminated the discount
entirely, and others grant net terms of 60 days.
In some cases the discount period is from date
of arrival, in others it is 30 days from invoice,
while proximo terms, such as the 10th or 15th,
are also given. There is stated to be a tendency in the industry toward the abolition of
the cash discount. Certain differences, however, exist as between different sections. Thus
data obtained from New England give terms as
largely 1 per cent 10 days, net 30 days, while
in the North Carolina pine region a 2 per cent
discount is more frequent, and at least half the
manufacturers now have net terms of 30 days,
without any discount, toward which there has
been a tendency in the last two years. A frequent exception to the regular terms, however,
is found in the case of canners, who, it is stated,
endeavor to purchase their shook requirements
considerably in advance of the season. Such
terms are largely governed by the financial
ability of the purchaser, and instances reported
from New England are the use of a 60-day
acceptance, as well as the payment of one-half
on arrival and the balance 6 months from date.
In the North Carolina pine region instances
reported are a 3 to 4 months' note and the
granting of from 2 to 6 months. On oil boxes
for export in the latter region advances of 80
per cent of the invoice price are made every 2
weeks. While many manufacturers report
that their collections are generally prompt,
some report a considerable percentage as running past due. This varies largely according
to the individual manufacturer, some stating,
for example, that the canning trade they sell
buy practically everything on a discount basis.
The great bulk of wooden shipping containers—pails, tubs, and kits for such products
as lard, candy, fish, preserves, paint, printers'
ink, etc.—go in carload lots direct to the manufacturers of the products shipped in these containers. Terms on candy, fish, and jelly pails
are largely governed by the terms made by the
manufacturers and packers of these products.
For many years they have been 2 per cent 10
19
A set of boards in order for nailing together into a packing box and
conveniently bundled for transportation.
938
FEDERAL RESERVE BULLETIN.
days, net 30 days, from date of invoice, but a
small percentage of candy pails carry a 1 per
cent cash discount instead. Terms on lard
tubs have been gradually shortened, the earlier
terms of 1 per cent 10 to 20 days, net 30 to 60
days, being displaced by terms of 1 per cent 10
days, net 30 days, and then by terms of net 30
days. At present most lard tubs are sold on
terms of net 15 days, but a small percentage
still bear terms of 1 per cent 10 days, net 30
days. Most of the other containers, such as
kits, bear terms of 1 per cent 10 days, net 30
days. While the majority of accounts are discounted, it is stated that the cash discount
period frequently is not adhered to.
BRICK, TILE, REFRACTORIES, AND CEMENT.
Common brick is largely sold direct by the
manufacturer to the contractor or owner,
although in the smaller communities where
there are no brick plants distribution is made
to some extent through building supply dealers or brokers. It has been estimated very
roughly that 60 per cent of the output of face
brick is sold to building-material dealers, who
almost invariably sell direct to industrial consumers. The larger portion of the output of
hollow building tile is sold by manufacturers
to building-material dealers, who then distribute them to consumers and contractors. Some
large industrial consumers, however, purchase
direct from manufacturers. Practically the
entire output of tile is sold direct by manufacturers to dealers or contractors, furniture and
hardware dealers in many cases maintaining a
tile department. It is stated that considerably
more than 90 per cent of the output of refractories, including fire clay, silicia, magnesite, and
bauxite brick and shapes, ganister, and deadburned magnesite and dolomite, is sold direct
to the consumer, the balance being sold either
through engineers and contractors or through
dealers. While the proportion of sales of cement made by manufacturers direct to consumers is stated to vary considerably among
the various companies, data obtained from
leading producers show figures ranging from
10 to 20 per cent.
Terms of sale of common brick by manufacturers vary greatly. Some of the larger and
more businesslike companies grant a regular
cash discount which ranges from 2 per cent to 5
per cent 10th e. o. m. In other localities, however, in particular in the far West, discounts as
high as $1 per thousand have been granted for
bills paid within 30 days from shipment, while
in many cases a price differential of $1 is
quoted as between cash and credit shipments.
Manufacturers7 terms of sale of face brick like-
SEPTEMBER,, 1920.
wise are not standardized. It is stated that
possibly 40 per cent of the output is sold on
terms of net 30 days, the balance usually beaiing a cash discount of 1 per cent or 2 per cent
10 days in addition to the net terms, or being
sold on draft with bill of lading attached.
Terms on this item have been shortened during
the past decade. Thus it is stated that 10
years ago almost all manufacturers granted a
cash discount of 2 per cent 10 days, while net
terms in certain cases have been 60 days. The
by-product of face-brick plants, cull or common brick, is usually sold in the immediate
locality of the plant upon terms which are in
line with those prevailing for other building
materials in the same community. Terms of
sale of hollow building tile, as prepared by the
association and applied by leading manufacturers, are net 30 days, less freight allowance,
subject to a cash discount of 5 per cent 15 days
from the delivered price. Efforts have been
made during the past decade to obtain greater
uniformity in terms, and the employment of a
5 per cent discount in place of 2 per cent has
been one of the results. Sewer pipe, flue lining, and wall coping are sold largely on terms
of net 30 days, subject to a cash discount of 5
per cent 10 days or 10th proximo after deducting freight. It is reported that considerably
more than 90 per cent of the output of refractories is sold on terms of net 30 days or net
15th proximo. Of the remaining 10 per cent
a negligible proportion is stated to carry a cash
discount of 2 per cent 10 days, and a still
smaller proportion a cash discount of 1 per
cent 10 days. On contract work certain manufacturers may employ other terms, such as,
for example, 60 per cent on delivery of material, 30 per cent during construction, and 10
per cent 30 days after completion. While
some authorities report practically no change
in terms during the past decade, from other
sources a tendency to eliminate cash discounts
is noted, as well as to restrict the time taken
to 60 days. Terms of sale of tile manufacturers are 3 per cent 30 days, net 60 days,
which terms have remained unchanged for the
ast 20 years at least. Net terms for cement
ave been 30 days for many years, but the
cash discount has been increased during the
past decade. Prior to about the opening of
1916 it was 2 cents per barrel for payment
within 10 days from date of shipment, although
certain producers prior to 1914 gave only 1
cent per barrel. In 1916 it was increased to 5
cents per barrel, due to the increase in the price
of the product, and this has been changed recently by certain producers to 10 cents per
barrel, equivalent to a little less than 3 per
cent.
E
SEPTEMBER, 1920.
FEDERAL RESERVE BUIXETIN.
Inasmuch as the demand for common brick
has usually been below the output, and there
are about 1,700 producers, terms on common
brick have not been closely adhered to. It is
estimated that fully 85 per cent of purchasers
of hollow building tile discount their bills. In
the tile industry it is estimated that 50 per
cent of sales are discounted, 37J per cent are
paid within 60 days, and the remaining 12\ per
cent become delinquent. As so large a proportion of the output of refractories is sold to
large producers in the metallurgical industries,
it is stated that manufacturers may be said to
have a "preferred credit list" on all but a very
small amount of their product. Leading cement manufacturers report that from 80 to 85
per cent of their invoices are discounted, while
several report that from 10 to 15 per cent run
past due, averaging variously 45 and from 60
to 90 days, although some manufacturers report only a negligible percentage running
beyond the 30-day period.
Very limited use of the trade acceptance is
reported in all these industries.
BUILDERS1 SUPPLIES DEALERS.
A leading authority estimates that roughly
about 60 per cent of building materials are
sold by manufacturers to local dealers, while
the remaining 40 per cent are distributed
direct by the manufacturer. This is influenced
largely by the location of plants. Practically
all mason's materials are stated to be sold
through the local dealer, in particular in the
larger cities. When direct sales are made by
the manufacturer, these occur generally in
smaller outlying towns, but in some of the
larger cities, e. g., Philadelphia and Chicago,
some items, such as hard brick, are sold direct
by the manufacturers, their plants being located in these cities. On the Pacific coast,
granite is almost universally quarried, cut and
placed in the building by the same concern,
without the intervention of jobbers and dealers,
but in the East and Middle West it is frequently
quarried for sale to jobbers and dealers.
"Building specialties" manufactured in the
East are first sold to coast jobbers, and by them
to dealers or consumers. In the larger cities
the great bulk of building material is sold by
dealers to contractors rather than direct to
consumers, but in small towns the trade is
frequently divided, while in farm trade practically all sales are made direct to the consumer. In Atlanta it is estimated that possibly 75 per cent of contracts are on a "cost percentage" basis, the contractor placing the
order to be billed direct to the owner. On the
Pacific coast it is stated to be "more expedi-
939
tious to approach the owner of a prospective
building with respect to supplying goods which
must be ordered from the East, as the contractor frequently postpones ordering so long
that delays intervene after the work has begun.
In the West there is lacking that custom prevailing in the East under which contractors are
themselves financially responsible for the work
as it progresses," the practice there being for
the contractor to make payments for materials
dependent on payments to him by the owner.
Regular terms of building-supply dealers are
largely on a 30-day basis, the cash discount
being 2 per cent 10th, or in some cases 15th,
proximo, while net terms in certain cases are
60 days. In Atlanta, however, it is stated that
all items other than cement, which carries a
discount, are sold on net 30-day terms. A tendency to closer terms is reported by some firms,
and decrease in the net period from 60-90 days,
or longer, to 30 or in some cases 60 days. As
stated by a leading New York firm, " 10 years
ago most of the speculative builders paid by
notes entirely, and these notes were extended
from time to time until final payment was made
on the loan on the building. Due to advancing
costs of the materials and also the handling of
same, this method of payment was finally done
away with. At the present time about 50 per
cent of our customers discount within 10 days
from date of invoice (proximo terms are employed), 35 per cent paying cash in 30 days,
and 15 per cent paying by note in either 30 or
60 days, generally 30, and very rarely 60."
The trade acceptance is little used by dealers,
while where notes are taken, part cash, such as
50 per cent, may be required, and interest
added. On the Pacific coast " contracts for
building materials customarily provide that the
vendor shall receive 75 per cent of the value
(figured on contract prices) of material delivered and installed during any month, on the
10th of the succeeding month, and the remaining 25 per cent within 30 days after completion
of the contract (i. e., formal acceptance of the
building)." Overdue payments bear interest
at the legal rate, while where work is done for
the State payments each month are usually for
90 per cent of the value. As a result of laxness
in that section with respect to the cash discount
period, as well as the net period, there is stated
to be a tendency to eliminate the cash discount.
The tendency during the past decade has been
rather toward stricter observance of existing
terms, and the substitution of a net period of 30
days for one of 60 days, while the discount was
reduced about three years ago from 5 per cent
to 3 per cent and finally to 2 per cent, and payment twice a month on "steamer days" has
been abolished.
940
FEDERAL RESERVE BULLETIN
PAINT AND VARNISH.
Both paints and varnishes in many cases are
produced by the same manufacturers, while
both are distributed largely through the same
jobbers, and a close relation exists between
their use. Terms are therefore in large measure similar, varnish terms tending to conform
to those on paint. Of the total output of
paint, it is estimated that 60 per cent is sold by
manufacturers direct to industrial consumers,
such as manufacturing plants and railways,
while 40 per cent is sold to wholesale and
retail dealers and to painters direct. While it
has been stated that there has been an increasing tendency toward specialization, in
many cases there are very few exclusive paint
jobbers, and glass or hardware is handled,
many of these dealers being hardware jobbers
or to a lesser extent wholesale druggists. The
largest distribution through the retail druggist
is stated to be in the Middle and Far West.
while in the smaller cities of the East the wholesale druggist must seek the consuming trade,
and in the larger cities the trade is confined to
exclusive paint wholesalers, who may, however, handle glass and heavy oils to some
extent.
Terms generally prevailing with paint manufacturers for many years have been 2 per cent
10 days, net 60 days. At the close of 1918 a
resolution was adopted by the national association favoring a change in the terms to
dealers to 1 per cent 10 days, net 30 days, to be
effective April 1, 1919. An effort was made by
some of the larger houses to put these terms in
force, but the attempt was abandoned, as the
general consensus of opinion proved to be
decidedly against the reduction. While hardware jobbers were decidedly against such a
change, which would bring the paint terms
"out of line" with those on which they purchased the remainder of their merchandise, the
terms have been favored for several years by
the wholesale druggists, whose standard purchasing and selling terms they are. In accordance with a recommendation made about a
year previously, terms to manufacturers and
other industrial consumers are generally 1 per
cent 10 days, net 30 days, in particular by the
larger houses. Railroads, however, receive
net cash terms, at least from the larger manufacturers. At the 1918 meeting it was also
suggested that paint and varnish manufacturers limit the practice of offering spring datings
for orders placed in the fall for shipment during
the fall and winter months (about Nov. 1 to
Feb. 1) to one complete stock order to be
shipped at the option of the manufacturer
a fter November 1, as dealers had expected to
SEPTEMBER,, 1920.
obtain dating on the many small orders placed
during that period which were evidently for
immediate consumption.
The varnish industry in the past has been
noted for long terms and for the looseness with
which even the prevailing terms were enforced.
During the last 10 years, manufacturers' terms
were generally reduced to 5 per cent 30 days,
net 4 months. Within the last four or five
years these terms have been further reduced to
2 per cent 10 days, net 60 days. These were
the prevailing paint terms, and many paint
manufacturers were adding varnish plants,
while conversely many varnish manufacturers
were commencing to manufacture paint. It is
estimated that at present 75 or 80 per cent of
the varnish sold to dealers carries these terms,
while to manufacturing plants, railways, etc.,
the terms are shorter still. A general tendency
to sell on net terms is reported, as well as to
shorten terms and make terms and discounts
more uniform. A considerable amount of
varnish, however, is still sold on the old 4
months7 terms, in particular, it is believed, to
the carriage trade.
Both the paint and varnish manufacturers'
associations approved the use of trade acceptances as far as possible, to be effective January
1, 1919, but the instrument thus far has been
used only to a very limited extent.
Jobbers' terms, which have been in effect for
many years, are 2 per cent 10 days, net 60 days,
for varnish and mixed paints. White lead and
linseed oil bear terms of 1 per cent 10 days, net
30 days, changed in the case of white lead
since 1917, from 2 per cent 10 days, net 60
days, and turpentine bears net 30 days. Dry
paints are generally sold on terms of 1 per cent
10 days, net 30 days.
GLASS AND GLASSWARE.
Manufacturers of glass products sell largely
to jobbers, who usually have an exclusive
territory, and to consuming manufacturers in
other industries who use glass products. In
the case of bottles and jars, a large quantity is
sold to manufacturers of various food products,
and it is estimated that from 75 to 90 per cent
of the output is sold to industrial consumers,
the balance distributing itself between wholesalers and retailers. Plain prescription ware
alone is sold to jobbers. Jobbers of plate and
window glass sell to contractors and manufacturers of building-construction material as
well as to retailers. Only a small amount of
glassware is sold direct to the retailer, the
nature of the product limiting such sales to
cut glass, tableware, some light goods, and*a
few specialties. A leading manufacturer sells
SEPTEMBER, 1920.
about 75 per cent of his output of pressed and
blown ware to wholesalers or manufacturers,
and 25 per cent to retailers, railroads, and
public utilities, the proportion varying with
the individual products. It has been estimated
that 85 per cent of the output of cut glass is
sold to retailers, while the remaining 15 per
cent goes to wholesalers who buy rather the
cheaper grade of goods. Increased capacity
on the part of some manufacturers of glassware has reduced the operating period in certain lines to six and seven months. It is
stated that there has been a tendency to shift
the responsibility for stocking the product to
the manufacturer.20
The regular terms employed by plate-glass
manufacturers, which have been in effect for
20 years or more, are 1 per cent 10 days, net
30 days. The bulk of sales are made to jobbers who almost universally discount their bills.
Manufactures of window glass on December
5, 1916, adopted the same terms as were employed by plate-glass manufacturers, namely,
1 per cent 10 days, net 30 days. Prior to
that time terms were 2 per cent 10 days, net
60 days. Since the greater part of the output
is sold in carload lots to large jobbers who
distribute it to retailers and consumers along
with plate glass, rough-rolled glass and other
flat-glass products, as well as paints and oils,
the great bulk of manufactured invoices are
discounted. Occasionally a customer desires
more than 30 days' time, and in such cases is
usually charged interest at the rate of 6 per
cent for the overtime, while notes, such as
for 60 or 90 days, may be taken.
Manufacturers of flint and lime glass (pressed
and blown ware) in January, 1916, adopted
terms of 1 per cent 15 days, net 30 days, in
spite of strong opposition on the part of the
jobbers. Prior terms were 2 per cent 30 days,
net 60 days. Various estimates put the proportion of bills discounted at from one-third
to two-thirds (in amount, not number), and
the balance take from 30 to 45 or 60 days.
It is stated that tableware since 1916 has carried terms of 1 per cent 30 days, net 60 days.
For approximately the past 15 years the
terms adopted by bottle manufacturers have
been 1 per cent 10 days, net 30 days. Prior
terms were 2 per cent 10 days, net 60 days.
It is estimated that approximately 75 per cent
of the invoices are discounted, while of the
remainder not over 5 per cent run past due.
Manufacturers of cut glass in December,
1918, adopted terms of 1 per cent 30 days,
net 60 days. Prior to that time the cash
20
Certain of the data in this paragraph have been taken from United
states Bureau of Fpreign and Domestic Commerce, Miscellaneous
Series, No. 60.
9149°—20
941
FEDERAL RESERVE BULLETIN.
4
discount had been 2 per cent. Some manufacturers employ terms of 1 per cent 15 days,
net 30 days. Substantially 60 per cent of
accounts are discounted, while of the remainder
15 per cent run past due. Manufacturers of
blanks for cut glass employ terms of 1 per cent
30 days, net 60 days.
Manufacturers of ornamental glassware employ terms of 1 per cent 10 days, net 30 days.
Formerly terms were 2 per cent 30 days, net 60
days. Practically the entire output is sold to
wholesalers, and the bulk of invoices are discounted, but few running beyond the net period.
The trade acceptance is not employed in the
majority of the branches of the industry, in
•particular for plate and window and cut glass.
Its use in connection with ornamental glassware is very limited, as is also the case with bottle manufacturers. Certain of the latter grant
60 days or 90 days in place of 30 days where the
acceptance is employed. A leading manufacturer of pressed and blown glassware estimates
that 4 per cent of his accounts (in amount, not
number) are covered by trade acceptances.
Jobbers or distributors of plate and window
glass sell on terms of 1 per cent 10 days from
date of shipment, net 30 days. These terms
have been applied to plate glass for many
years, and were applied about 4 years ago to
window glass, following the similar change in
manufacturers' terms from 2 per cent 10 days,
net 60 days. It is stated that occasionally
contractors are permitted to pay 85 to 90 per
cent of the contract price by the 10th of the
month for the preceding month's deliveries.
Trade acceptances are not generally used by
distributors except in settlement for carload
shipments. The proportion of bills discounted
varies from 20 to 55 per cent, the amount paid
at maturity from 20 to 60 per cent, and the
amount running past due from 20 to 50 per
cent. It is stated that 30 days past due is
about the limit allowed on overdue accounts.
Interest Rates in the New York Market.
A table and two charts are presented showing the interest rates on two classes of commercial paper and on demand loans in the New
York market, compared with the average
discount rate charged by the New York Federal
Reserve Bank. The figures are based on
monthly data published in the FEDERAL
RESERVE BULLETIN.
For 30 to 90 day and
for
4 to 6 month commercial paper averages of the
high and low rates for each month are shown,
while the Federal Reserve discount rate is the
actual average for all paper discounted during
each month by the Federal Reserve Bank of
New York. Call-loan rates fluctuated so
FEDERAL RESERVE BULLETIN.
widely during the period and the margin between the high and the low rate for the same
month is so wide that the average was thought
to be misleading, and the actual high and low
rates are shown. In view of their much wider
range a separate chart on a smaller scale is
shown for the call-loan rates.
Commercial paper of the two classes used
generally moved together and the ruling rate
for most of the months was the same for the
two classes. From March to July of this year,
however, the long-term paper carried a higher
rate. Average rates of discount charged by
the Federal Reserve Bank of New York on all
discounts were about 1J per cent below the
market rate until November, 1919, when the
Federal Reserve Board and the Federal Reserve
Banks embarked upon the policy of raising
discount rates. After that date the spread between the market rates and the Federal Reserve
rate decreased rapidly and in March and April
was about i per cent. Since then commercial
rates have increased more rapidly than the
Federal Reserve rate, although the margin
narrowed somewhat when the Federal Reserve
Bank raised its rate on commercial paper to 7
per cent in May.
Discount and interest rates in the New York market.
ll
Period.
11™2
1918
Oct. 16 to Nov. 15...
Nov. 16 to Dec. 15...
1919.
Dec. 16 to Jan. 15.
Jan. 16 to Feb. 15.
Feb. 16 to Mar. 15.
Mar. 16 to Apr. 15.
Apr. 16 to May 15.
May 16 to June 15.
June 16 to July 15.
July 16 to Aug. 15.
Aug. 16 to Sept. 15
Sept. 16 to Oct. 15.
Oct. 16 to Nov. W.
Nov. 16 to Dec. 15.
1920.
Dec. 16 to Jan. 15.
Jan. 16 to Feb. 15.
Feb. 16 to Mar. 15.
Mar. 16 to Apr. 15.
Apr. 16 to May 15.
May 16 to June 15.
June 16 to July 15.
July 16 to Aug. 15.
DISCOUNT AND INTERESTRATES
INTHENEWYORKMARKET
OCTOBER^ TOAU6USTJ920.
6
?
*
4
S
4
3
Z
2
1919
MAY
%
JULY
\% 1 t
1| 1 \ %
FEB.
%
JULY
i
%
1918
JAN.
FEB.
3
0
1920
.07
.03
.02
,03
.03
,04
.06
.05
.04
.03
.49
,63
4.86
5.42
5.53
5.48
5.56
6.19
6.25
0
11
30
28
26
24
22
20
18
J6
14
12
10
6
6
4
2
0
30
28
26
24
22
20
18
16
14
12
10
1
I
i\\
1
7 f
/
*•\ \\
fA
1
\
\
\
/
y
1
1918
1919
1
1\
8
%1
FEB.
MCM.
'/
%
OCT.
S
25
25
15
15
15
12
15
11
jum
8
\ /
2t
10
15
18
8
15
30
15
,09
,09
.05
RATES REFER TO SO-DAY'PERIODS
ENDING ON THE IS™ OFEACH MONTH.
DEC.
JAN.
8
(Jlverage cfJfigh,artd,/b*p&zCes)y
' ••———'JfverageJftate charged dy
%
OCT
1
\
6
1918.
("October
\November.
December..
1919.
January
February..
March
April
May
June
July
August
September
October...
November
December.
1920.
January...
February.
March
April
May
June
July
INTEREST RATES 0NC4LL LOANS
INTHENEWYORK MARKET
OCTOBERJ9I8 TOAU6USTJ920.
RATES ON PRIME COMMERCIAL PAPER REFER TO
.SO-DArPERlODSEIiDINeONTHEISmOFEACHMOtmi.
FEDERAL RESERVE DISCOUNTKATES ARE
/IVERA6ES FOR CALENDARMONTHS.
. • i < flrcme (brnmercicrt 30fo90day3fytert
Coverage ofJfigK aitcLCbw$ates).
7
SEPTEMBER, 1920.
\
e
AU6.
942
1920
4
2
0
SEPTEMBER, 1920.
943
FEDERAL RESERVE BULLETIN.
Low rates on call money have fluctuated
between 3 | and 6 per cent, while high rates
have been as low as 6? per cent and as high
as 30 per cent. The highest peaks reached by
call money rates are shown for midsummer 1919
when speculation reached its climax, for
October of the same year, when the stringency
following overexpansion was most acute, and
for the early months of 1920 when heavy
liquidation on the stock exchange created
an exceptional demand for money.
August Crop Report, by Federal Reserve
Districts.
Forecasts of crop production issued by the
Bureau of Crop Estimates, United States Department of Agriculture, as of August 1, 1920,
are shown in the table below, together with
the forecasts made as of July 1 and estimates
of production in 1919. For average figures for
the years 1915-1919, see FEDERAL RESERVE
BULLETIN, July, 1920, page 832.
Corn production, according to the August
forecast, is expected to be over 3 billion bushels,
or about 225 millions in excess of the July
forecast. Only once in the history of the
United States has corn production been larger
than this year's latest forecast, the record crop
of 1917 being estimated at 3,065 million bushels. Prospects of wheat production, on the
other hand, are not quite so bright as in July,
owing to the fact that spring wheat in the
Minneapolis district has suffered from rust.
The forecast for total wheat production is 794
million bushels, comparable with 941 millions
estimated in 1919, and a five-year average of
832 millions. Prospects of the oats crop were
considerably better in August than in July,
and the hay forecast rose from 85 million tons
in July to 107 millions in August.
The cotton crop is expected to reach 12J
million bales, exceeding the production of any
year since 1914, when more than 16 million
bales of cotton were raised. Average cotton
production for the five-year period, 1915-1919,
was 11,403,000 bales, so that this year's forecast is more than 1,000,000 bales above the
average production for the pastfive*years.
Production of corn, wheat, cotton, oats, and hay, by Federal Reserve districts—Aug. 1,1920, forecast of the Bureau of Crop
Estimates.
[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
Aug. 1,
forecast
for 1920.
Total wheat (bushels).
July 1,
Aug. 1,
forecast Estimate forecast
for 1920. for 1919. for 1920.
10,276
7,055
7,081
41,089
34,729
34,223
66,444
57,153
55,446
198,893 187,846 212,297
190,672 180,805 188,994
253,202 230,761 240,315
891,552 859,627 927,852
438,887 398,851 380,722
245,420 241,114 242,363
483,172 402,781 372,870
193,853 170,709 225,743
8,485
9,214
9,179
3,003,322 2,778,903 2,917,450
July 1,
Aug. 1,
forecast Estimate forecast
for 1920. for 1919. for 1920.
456
11,546
24,269
34,788
35,891
6,676
65,803
55,837
209,535
245,270
16,285
103,244
809,600
463
11,816
23,838
34,633
37,613
6,614
65,345
54,774
183,197
261,226
15,184
99,444
794,147
12,493
25,922
63,748
37,094
10,326
112,202
108,022
135,094
300', 994
33,605
101,008
940,9
Cotton (bales).
Federal Reserve district.
Aug. 1,
forecast
for 1920.
Boston
New York
Philadelphia...
Cleveland
,
Richmond
Atlanta
,
Chicago
St. Louis
Minneapolis
Kansas City ..
Dallas
San Francisco..
Total.
2
July 1,
forecast
for 1920.
Winter wheat (bushels).
Aug. 1,
July 1,
forecast Estimate forecast
for 1920. for 1919. for 1920.
11,094
23,510
34,027
37,613
6,614
49,471
53,885
7,185
241,464
14,406
53,372
532,641
10.890
23,945
34,217
35.891
6,676
50,018
55,004
8,379
224,357
15, 504
53,364
518,245
11
25,
62,
37,
10'
93:
107:
5
284'
32
61
731,636
Oats (bushels).
Estimate
for 1919.
Aug. 1,
forecast
for 1920.
2,190
2,990
2,079
2,751
2,372
2,816
2,173
1,906
1,789
4,081
l
187
860
3,779
180
832
3,097
1,117
13,433
44,619
2o,807
82,061
27,530
28,128
530,141
17, 508
289,219
198,783
44,561
46,274
12,518
a 11,566
11,030
1,402,064
9
Spring wheat (bushels).
July 1.
forecast
for 1920.
463
722
328
606
15,874
889
176,012
19,762
778
46,072
261,506 1
July 1,
forecast Estimate
for 1920. for 1919.
456
656
324
571
750
316
1,034
15,785
833
201,156
20,913
781
49,880
291,355
19,140
1,001
129,337
16,463
898
39,933
209,352
Hay, tame and wild (tons).
Estimate
for 1919.
Aug. 1,
forecast
for 1920.
Juiy 1,
forecast
for 1920.
Estimate
for 1919.
12,600
42,149
24,742
71,522
26,826
29,101
484,323
67,302
289,700
186,366
41,419
46,015
12,123
31,856
23,214
70,279
26,397
29,008
461,082
63,595
208,857
182,677
99,004
40,219
4,339
6,058
3,168
6,011
4,540
4,494
4,160
5,664
2,939
5,463
4,088
4,194
17,185
7,658
18,831
20,257
1,792
12,933
15,899
7,117
9.054
13,367
1,419
11,449
4,912
7,073
3,155
6,089
4,916
4,272
18.629
8] 124
17,245
19,907
2,309
12,035
1,322,065
1,248,311
107,266
84,813
108,666
1
In addition the following amounts were estimated grown in Lower California (Mexico): Aug. 1, 1920, forecast, 93,000 bales; July 1, 1920 forecast, 91,000 bales; estimate for 1919, 52,000 bales.
2
Cotton grown outside of cotton belt included as follows: Aug. 1 1920, forecast, 12,000 bales July 1,1920, forecast, 11,000 ba es; estimate lor 1919,
8,000 bales.
944
FEDERAL RESERVE BULLETIN.
Foreign Branches.
SEPTEMBER, 1920.
BANKS DOING BUSINESS UNDER AGREEMENT WITH THE
FEDERAL RESERVE BOARD.
There is given below a list of foreign branches American Foreign Banking Corporation, New York City:
Brussels, Belgium.
of national banks and of banks doing business
Buenos Aires, Argentina.
under agreement with the Federal Reserve
Cali, Colombia.
Board which were open for business on August
Cristobal, Canal Zone.
18, 1920:
Harbin, ManchuriaNATIONAL BANKS.
National City Bank, New York City:
Buenos Aires, Argentina.
Plaza Once, Buenos Aires, Argentina.
Rosario, Argentina.
Brussels, Belgium.
Antwerp, Belgium.
Bahia, Brazil.
Pernambuco, Brazil.
Porto Alegre, Brazil.
Rio de Janeiro, Brazil.
Santos, Brazil.
Sao Paulo, Brazil.
Barranquilla, Colombia.
Bogota, Colombia.
Medellin, Colombia.
Santiago, Chile.
Valparaiso, Chile.
Artemisa, Cuba
Bayamo, Cuba.
Caibarien, Cuba.
Camaguey, Cuba.
Cardenas, Cuba.
Ciego de Avila, Cuba.
Cienfuegos, Cuba.
Colon, Cuba.
Cruces, Cuba
Cuatro Caminos, Habana, Cuba.
Galiano, Habana, Cuba.
Guantanamo, Cuba.
Habana, Cuba.
Manzanillo, Cuba.
Matanzas, Cuba.
Nuevitas, Cuba.
Pinar del Rio, Cuba.
Placetas del Norte, Cuba.
Remedios, Cuba.
Sagua la Grande, Cuba.
Sancti Spiritus, Cuba.
Santa Clara, Cuba
Santiago, Cuba
Union de Reyes, Cuba.
Yaguajay, Cuba.
Genoa, Italy
Lima, Peru.
San Juan, Porto Rico.
Ponce, Porto Rico
Barcelona, Spain.
Madrid, Spain.
Cape Town, South Africa.
Port of Spain, Trinidad.
Calle Rondeau, Montevideo, Uruguay.
Montevideo, Uruguay
Caracas, Venezuela.
Ciudad Bolivar, Venezuela.
Maracaibo, Venezuela
Temporarily closed—
Moscow, Russia.
Petrograd, Russia.
First National Bank, Boston, Mass.•
Buenos Aires, Argentina.
Havana, Cuba.
La Vega, Dominican Republic.
Manila, Philippine Islands.
Panama City, Republic of Panama,
Puerto Plata, Dominican RepublicPort-au-Prince, Haiti.
Rio de Janeiro, Brazil.
Sanchez. Dominican Republic.
San Francisco de Macoris, Dominican Republic.
San Pedro de Macoris, Dominican Republic.
San Pedro Sula., Republic of Honduras.
Santiago de Los Caballeros, Dominican Republic.
Santo Domingo, Dominican Republic.
Mercantile Bank of the Americas (Inc-), New York City:
Paris, France.
Barcelona, Spain.
Madrid, Spain.
Affiliated institutions—
Banco Mercantil Americano de Colombia—
Bogota, Barranquilla, Cartagena, Medellin, Cali,
Girardot, Manizales, Honda, Armenia, Bucaramanga, and Cucuta, Colombia.
Banco Mercantil Americano del Peru—
Lima, Arequipa, Chiclayo, Callao, Trujillo, and
Piura, Peru.
Banco Mercantil Americano de Caracas—
Caracas, La Guayra, Maracaibo, Puerto Cabello,
and Valencia, Venezuela.
American Mercantile Bank of Brazil—
Para and Pernambuco, Brazil.
National Bank of Nicaragua—
Managua, Bluefields, Leon, and Granada, Nicaragua.
Banco Mercantil Americano de Cuba—
Havana and Ciego de Avila, Cuba.
Banco Mercantil de Costa Rica—
San Jose, Costa Rica.
Banco Atlantida—
La Ceiba, Tegucigalpa, San Pedro Sula, Puerto
Cortez, and Tela, Honduras.
(A branch office is also maintained by the Mercantile Bank of the Americas (Inc.) in New
Orleans, La.)
Asia Banking Corporation, New York City:
Canton, China.
Changsha, China.
Hankow, China.
Hongkong, China.
Manila, Philippine Islands,
Peking, China.
Shanghai, China.
Tientsin, China.
International Banking Corporation, New York City:
Canton, China.
Hankow, China.
Harbin, China.
Hongkong, China.
Peking, China.
Shanghai, China.
Tientsin, China.
Tsingtao, China.
London, England.
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
945
International Banking Corporation—Continued.
Total
Lyons, France.
Capital. Surplus.
Bombay, India.
Calcutta, India.
District No. 7.
Rangoon, India.
Yokohama, Japan.
Farmers & Merchants State Bank,
Kobe, Japan.
Seneca, Wis
$15,000 $535,862
$25,000
Batavia, Java.
State Bank of Cowden, Cowden, 111
25,000
10,000
333,543
First
Trust
&
Savings
Bank,
Rock
Sourabaya, Java.
Island, 111
25,000
100,000
554,198
Panama, Republic of Panama.
Greenfield Savings Bank, Greenfield,
Colon, Republic of Panama.
Iowa
5,000
404,159
30,000
Taylor County State Bank, Clearfield,
Cebu, Philippine Islands.
Iowa
173,919
25,000
5,000
Manila, Philippine Islands.
25,000
25,000
451,761
Van Wert State Bank, Van Wert, Iowa.
Singapore, Straits Settlements.
Santo Domingo, Dominican Republic.
District No. 10.
Sanchez, Dominican Republic.
50,000
15,000
610,683
First
Bank
of
Okarche, Okarche, Okla.
San Pedro de Macoris, Dominican Republic.
Santiago, Dominican Republic.
District No. 11.
Barahona, Dominican Republic.
50,000
25,000
257,300
Texas
State
Bank, Canton, Tex
Puerta Plata, Dominican Republic.
137,081
30,000
16,000
624,830
100,000
35,000
(A branch office is also maintained by the Inter- First State Bank, Mathis, Tex
national Banking Corporation in San Francisco, First State Bank, Wills Point, Tex....
District No. 12.
Calif.)
Park-Union Foreign Banking Corporation, New York City: British American Bank, San Fran*
Cisco,
Calif
1,000,000
10,000 3,225,809
Paris, France.
Bank of Haines, Haines, Oreg
338,682
25,000
5,000
Shanghai, China.
Lincoln County State Bank, Davenport,
Wash
50,000
10,000
561,289
Tokyo, Japan.
Yokohama, Japan.
(Branch offices are also maintained in San Fran"WITHDRAWALS.
cisco, Calif., and Seattle, Wash., by the ParkUnion Foreign Banking Corporation.)
The Elmhurst State Bank, Elmhurst, 111., and the North Side State
The First National Corporation, Boston, Mass., has
opened no foreign branches. A branch office of this cor- Savings Bank, Chicago, 111., have withdrawn from membership.
poration is maintained at 14 Wall Street, New York City.
The Shawmut Corporation of Boston, Mass., has opened
no foreign branches. A branch office of this corporation
is maintained at 65 Broadway, New York.
Acceptances to 100 Per Cent.
The French American Banking Corporation of New
York City and the Foreign Credit Corporation of New York
Since the issuance of the August BULLETIN the following
City have opened no foreign or domestic branches.
banks have been authorized by the Federal Reserve Board
to accept drafts and bills of exchange up to 100 per cent of
their capital and surplus:
The First National Bank, New Haven, Conn.
Dallas National Bank, Dallas, Tex.
State Banks and Trust Companies Admitted.
The First National Bank, Los Angeles, Calif.
The following list shows the State banks and trust companies which have been admitted to membership in the
Federal Reserve System during the month of August, 1920.
One thousand four hundred and seventeen State instituCommercial Failures Reported.
tions are now members of the system, having a total
capital of $496,789,578, total surplus of $491,409,950, and
Continuance of a tendency toward increase in the countotal resources of $9,853,495,006.
try's business mortality is reflected in the 459 commercial
failures reported to R. G. Dun & Co. during three weeks
of August, as against 318 defaults in the corresponding
Total
period of 1919. Exclusive of banking suspensions and
personal bankruptcies, the statement for July, the latest
month for which complete statistics are available, discloses
District No. 2.
681 insolvencies for $21,906,412 of liabilities, the number
$30,000
$10,500
$41,449 of reverses being the largest of any month since December,
Bank of Blasdell, Blasdell,-N. Y
1918, and the indebtedness the heaviest of all months
District No. S.
back to January, 1916, excepting the $32,990,965 of June,
this year. The July statistics contrast sharply with the
Oxford Bank of Frankford, Philadel55,000 1,898,020 low-record total of 452 failures of July, 1919, when the
250,000
phia, Pa
200,000
25,000 3,775,508
Peoples Bank, Philadelphia, Pa
amount of money involved barely exceeded $5,500,000.
Separated according to Federal Reserve districts, the July
District No. 4.
returns show more defaults than in that month last year
American Trust & Savings Bank of
20,000 2,283,004 in 10 of the 12 districts, the exceptions being the eighth
100,000
Middletown, Middletown, Ohio
district, where some falling off appears, and the sixth
District No. 5.
district, where no change at all is revealed. In respect
of the liabilities, decreases from the July, 1919, figures are
State Bank of Kenbridge, Kenbridge,
25,000 , 8,000
245,424 shown only by the sixth and eighth districts.
Va
946
SEPTEMBER, 1920.
FEDEKAL RESERVE BULLETIN.
Failures during July.
Number.
DISTRICT N O . 3.
Liabilities.
Districts.
1920
1919
1919
1920
Trustee, executor,administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Woodstown National Bank, Woodstown, N. J.
Guardian of estates, assignee, receiver, and committee of estates of
lunatics:
The National Bank of Boyertown, Boyertown, Pa.
DISTRICT No. 4.
First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth
Ninth
Tenth
Eleventh
Twelfth
Total
48
172
29
54
39
32
70
28
14
34
41
120
45
79
28
44
17
32
51
44
6
21
23
62
681
452
$320,069
$470,259
11 438 511 1,836,523
315,061
755,711
921,988
247,384
316,282
1,995,634
486,668
443,135
2,417,401
375,494
96,040
240,812
238,471
67,687
548,910
201,188
1,148,614
261,727
1,431,738
838,115
21,906,412
5,507,010
Trustee,executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Bell National Bank, Pineville, Ky.
The Grove City National Bank, Grove City, Pa.
DISTRICT N O . 5.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
Western National Bank of Baltimore, Baltimore, Md.
Guardian of estates, assignee, receiver, and committee of estates of lunatics:
First National Bank of Danville, Danville, Va.
DISTRICT N O . 6.
Trustee,executor, administrator, registrar of stocks and bonds, guardian
ofestates, assignee, receiver, and committee of estates of lunatics:
The First National Bank of Oxford, Oxford, Ala.
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 July 31 to August 27,
1920, inclusive:
Banks.
DISTRICT No. 7.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
ofestates, assignee, receiver, and committee ofestates of lunatics:
Union National Bank, Muskegon, Mich.
Calumet National Bank of Chicago, Chicago, 111.
Perry National Bank, Perry, Iowa.
First National Bank of Viroqua, Viroqua, Wis.
The First National Bank of Clay City, Clay City, Ind.
The First National Bank of Edgerton, Edgerton, Wis.
New charters issued to
24
With capital of
$2,120, 000
Increase of capital approved for
36
DISTRICT N O . 9.
With new capital of
8, 735, 000
Trustee, executor, administrator, guardian of estates, assignee, and
Aggregate number of new charters and
committee ofestates of lunatics:
banks increasing capital
60
First National Bank of Little Falls, Little Falls, Minn.
With aggregate oftoewcapital authorized
10, 855, 000
DISTRICT N O . 10.
Number of banks liquidating (other than
those consolidating with other national
Trustee, executor, administrator, registrar of stocks and bonds, guardian
banks under the act of June 3, 1864)... 3
ofestates, assignee, receiver, and committee ofestates of lunatics:
First National Bank of Gunnison, Gunnison, Colo.
Capital of same banks
275, 000
Number of banks reducing
capital
0
l
Reduction of capital
125, 000
Total number oi banks going into liquidaPrincipal Books and Articles Relating to Banking and
tion or reducing capital (other than those
Currency Received at the Federal Reserve Board
consolidating with other national banks
under the act of June 3, 1864)
3
Library During the Month Ending August 15, 1920.
Aggregate capital reduction
400, 000
Consolidation of national banks under the
Anderson, Benjamin McAlester.
The Fallacy of "the stabilized dollar." 1920. 16p.
actof Nov. 7, 1918
2
trust company, New York.
Capital
200, 000 Bankers
America's merchant marine; a presentation of its history and develThe foregoing statement shows the aggreopment to date with chapters on related subjects. 1920. 257p.
Berges, Maurice.
gate of increased capital for the period of
La probleme mon&aire et fiduciaire, par Maurice Berges et Frederic
the banks embraced in statement was
10, 855, 000
Besson. 1918. 164p.
Federal reserve bank of San Francisco, eomp.
Against this there was a reduction of capi'Directory of banks in twelfth federal reserve district, June, 1920.
tal owing to liquidation (other than for
1920. 46p
consolidation with other national banks
Foote. Lewis A.
The Adap-table system; a practical and economic solution of the
under the act of June
3,
1864),
and
reaecrual accounting problem. cl920. 2 v.
ductions of capital of1
400,000 Godfrey,
Carlos Enxmor.
Net increases
10, 455,000
1
Includes two reductions in capital aggregating $125,000 incident to
consolidations under Act of November 7, 1918.
Fiduciary Powers Granted to National Banks.
The applications of the following banks for permission to
act under section 11-k of the Federal Reserve Act have
been approved by the Board during the month of August,
1920:
DISTRICT N O . 2.
Trustee, executor, administrator, registrar of stocks and bonds, guardian
of estates, assignee, receiver, and committee of estates of lunatics:
The Exchange National Bank of Olean, Olean, N. Y.
The Mechanics bank, 1834-1919, Trenton in New Jersey; a history.
1919. 164p.
Guaranty trust company of New York.
Greater France- C1920. 28p.
Huart, Albin.
Etude compare des principaux systemes de banque; Porganisation
du credit en France. 1913. 351p.
International economic conference, London. 1919.
The famine in Europe, the facts and suggested remedies; being a
report of the International economic conference, called by the
Fight the famine council, and held at Caxton hall, Westminster,
London, on the 4th, 5th, and 6th of November, 1919, by Lord
Parmoor, Sir George Paish, . . . and others. 1920. 126p.
Kahn, Otto Hermann.
O ur economic and other problems; a financier's point of view. cl920.
420p.
Page, H. M., corny)
Chart of money and discount rates in London during the year 1919,
comp. by Page and Gwyther. 1920.
Paine, William Worship.
Short papers on—1. A Capital levy as a means of taxation. 2. The
Present unrest in industry. 3. Capital and labour 4 The
Nationalization of industry. 1920. 47p.
SEPTEMBER, 1920.
P&ellat, Henri.
. Bourse et justice. 1918.
Pogliani, A
The financial, industrial and political situation in Italy: an address
[May 27, 1920]. 1920 l i p
Raabe, Adam.
The German republic; economic position and potentialities with
special reference to foreign exchange and investment, by A. Raabe
and F. Glissman. cl920. 32p.
Railway clearing house, London.
The New railway rates; how they affect the cost of living. 1920. 8p.
Roumania. Some details regarding its history, growth, system of government, financial resources, etc. 1919. 15p.
Strakosch, Henry.
The South African currency and exchange problem. 1920. 34p.
Swiss bank corporation, Basel.
[Graphique des changes Grangers en bourse de Geneve.] 1920.
Swiss bank corporation, Basel.
Renseignements divers sur les valeurs cotees a la bourse de Geneve:
cours extreme, derniers prix, dividendes, etc. 1912-1919. 1920.
75p.
Warfield, S. Davies.
Address on occasion of organization of the National conference of
mutual savings banks at Boston, April 23, 1920. 1920 14p.
Australia. Treasurer's department.
. . Statement of receipts and expenditure for the nine months
ended 31st March, 1920
Belgium. Ministere de Tinterieur.
Annuaire statistique de la Belgique . . 44e. ann6e—1913.
Economisch-historisch jaarboek. Uitg. door de vereeniging het Nederlandsch economisch-historisch archief gevestigd to 's-Gravenhage . . .
1916-1919. 5 v.
Great Britian. India office.
. . . Statistical abstract relating to British India . . 53d num
ber . . . (1917-18).
India. Statistical department.
. . . Statistical tables relating to banks in India, with a map, introductory memorandum, and banking directory: 1918.
Moody, John.
Moody's analyses of investments- Part 2 industrial investments . .
eleventh year 1920.
North Carolina. Corporation commission.
. . . Reports of the condition of the state banks at the close of business on Dec. 31, 1919 . . .
Rumania. Directiunea generala a statisticei.
. . . Anuarul statistic al Romaniei, 1915-16.
Sverjges riksbank, Stockholm.
Arsbok utarbetad av riksbankens statistiska avdelning Arg. 12[1919].
947
FEDERAL RESERVE BULLETIN.
BANK REPORTS, 1919 AND 1920.
Banco do Brasil, Rio de Janeiro.
Relatorio . . . apresentado a assembles, geral dos accionistas . . .
29 Abril de 1920.
Bank of New Zealand, Wellington.
Annual report . . . for the year ended 31st March, 1919, and report
of proceedings at the annual meeting of proprietors . . .
Barclays bank (ltd.), London.
Report of the directors . . . 31st December, 1919, and 30th June,
1920.
Lloyds bank (ltd.), London.
Report of the directors . . . at the 62d ordinary general meeting . . .
3 February, 1920.
Soctete' gene"rale pour favoriser le developpement du commerce et de
FIndustrie en France, Paris.
. . . Rapport du conseil d'administration, exercice 1919.
Other bank reports, 1919.—National bank of Scotland, Edinburgh. National bank of South Africa (ltd.), Pretoria. National provincial
and union bank of England (ltd.), London. Nederlandsche handelmaatschappij, Amsterdam. Royal bank of Scotland, Edinburgh
Yokohama specie bank (ltd.), Yokohama.
Other batik reports, 1920.—Bank of Scotland, Edinburgh. National
bank of South Africa (ltd.), Pretoria. Union bank of Scotland (ltd.),
Glasgow. Yokohama specie bank (ltd.), Yokohama.
NEW PERIODICALS.
Import and export trade: Foreign edition of "In- en Uitvoer," a Dutch
weekly of commerce and economics. Jahrbiicher fur gesetzgebung,
verwaltung und volkswirtschaft. (Schmoller) Lpz. (Quarterly.)
South American journal. London.
ERRATA,
Page 871 of August (1920) Bulletin: In table
showing rediscount operations between Federal
Reserve Banks, the amount, 45,000, appearing
in the May column under Richmond should
have been shown opposite Cleveland instead
of New York; in the April column under St.
Louis the figures shown opposite Boston and
New York should have been 22,000 and 23,000,
respectively, instead of 30,000 and 15,000 as
published.
The headline over the tatfle at the top of
page
775 of the August Bulletin should read
u
in millions of dollars'' instead of "in thousands of dollars."
948
FEDEKAL RESERVE BULLETIN.
SEPTEMBER, 1920.
RULINGS OF THE FEDERAL RESERVE BOARD.
Clayton act as applied to private bankers.
The question has been presented as to
whether the recent amendment of May 26,
1920, to the Clayton Antitrust Act authorizes
a private banker, with the consent of the
Federal Reserve Board, to serve as an officer
or director of national banks or whether the
effect of the amendment is merely to authorize
a private banker, with the consent of the
Federal Reserve Board, to serve foreign banking corporations.
The amendment of May 26, 1920, amended
the second paragraph of section 8 of the
Clayton Antitrust Act by inserting certain
words in the proviso at the end of that paragraph. This proviso was originally enacted
by the act approved May 15, 1916, known as
the Kern amendment. As amended by the
act approved May 26, 1920, the proviso reads:
And provided further, That nothing in this act shall prohibit any private banker or any officer, director, or employee of any member bank or Class A director of a Federal
reserve bank, who shall first procure the consent of the
Federal Reserve Board, which Board is hereby authorized
at its discretion, to grant, withhold, or revoke such consent, from being an officer, director, or employee of not
more than two other^banks, banking associations, or trust
companies, whether organized under the laws of the United
States or any State, if such other bank, banking association or trust company is not in substantial competition
with such banker or member bank.
The words in bold face are those which were
inserted by the amendment of May 26, 1920.
Under the terms of the Clayton Act no private banker with aggregate resources in excess
of $5,000,000 is eligible to serve as a director
of any national bank, and no private banker,
regardless of the amount of aggregate resources, is eligible to serve as a director, officer, or employee of any national bank located
in a city of more than 200,000 inhabitants, if
his business is located in the same city. Prior
to the amendment of May 26, 1920, the Federal
Reserve Board was without authority to grant
private bankers located in a city of more than
200,000 inhabitants permission to serve as
directors or officers of national banks located
in the same city, nor to grant to private bankers
having resources in excess of $5,000,000 permission to serve as directors or officers of any
national bank wherever located.
The Board's opinion based upon the history
of the amendment of May 26, 1920, is that it
was clearly intended to give to the Board
authority to grant to a private banker permission to serve as a director or officer of not more
than two national banks which are not in substantial competition with such private banker
or with each other. Furthermore a logical
construction of the act as amended requires
the same conclusion.
It is the view of the Board, therefore, that
a private banker may with the permission of
the Federal Reserve Board, serve as director
or officer of not more than two national banks
which are not in substantial competition with
the private banker or with each other.
Collection of bill of lading drafts received from nonmember bank for account of member bank.
Inquiry has been made as to whether country
bank correspondents of a member bank may,
with the authorization of the member bank,
send bill of lading drafts direct to the Federal
Reserve Bank for collection and credit to the
member bank's account. The country bank
correspondents referred to are not members of
the Federal Reserve System and do not carry
clearing accounts with any Federal Reserve
Bank.
There is no provision of law authorizing a
Federal Reserve Bank to receive items for deposit or collection from banks which are not
members of the Federal Reserve System and
which do not carry clearing accounts with the
Federal Reserve Bank. Section 13 of the Federal Reserve Act, however, provides that a
Federal Reserve Bank may receive on deposit
from any of its member banks checks and
drafts payable upon presentation and may
receive for collection from any of its member
banks maturing notes and bills. Under this
provision it would be legal for a Federal Reserve Bank to receive direct from a bank, even
though that bank is not a member and does
not maintain a clearing account, checks and
drafts or maturing notes and bills sent for the
account of a member bank, provided the Federal Reserve Bank has received satisfactory
notice from the member bank that the member
bank has authorized the sending bank to act
as the agent of the member bank in forwarding
the items for the member bank's account.
A somewhat similar arrangement has been
approved whereby a member bank in one Federal Reserve district may send maturing notes
and bills direct to a Federal Reserve Bank of
another district for collection and credit to the
account of the Federal Reserve Bank of the
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
district in which the sending bank is located,
although there is no provision of law which
authorizes a Federal Reserve Bank to receive
such items from a member bank located outside of its own district. (See ruling on page
276 of March, 1920, BULLETIN.)
The notice from the member bank to the receiving Federal Reserve Bank that the member bank has authorized its correspondent to
forward items direct to the Federal Reserve
Bank for the account of the member bank
should, in the case under consideration, be
specific—that is, it should name the particular
correspondent or correspondents of the member bank which are so authorized. Bill of
lading drafts drawn upon individuals, firms, or
corporations other than banks are not " checks
and drafts" within the meaning of section 13
of the Federal Reserve Act, and should not,
therefore, be received by a Federal Reserve
Bank, except for collection and credit when
paid.
It should be understood, of course, that a
Federal Reserve Bank may at its discretion
decline to receive for collection bill of lading
drafts forwarded to it by a member bank
through the agency of the member bank's correspondents which are not themselves members and which do not maintain clearing accounts.
Paper of irrigation company.
The question has been presented as to whether
water sold by an irrigation company to farmers
and delivered through the company's irrigation
ditches should be classed as a " commodity"
and whether the notes of such an irrigation
company may be considered commercial paper.
This question is very similar to the question of
whether natural gas sold and delivered may be
considered "goods sold" within the meaning
of the Board's regulation defining a trade acceptance. Upon this question the Board ruled
affirmatively in a ruling dated April 23, 1918,
published in the BULLETIN for May, 1918, on
page 435. The Federal Reserve Board is of the
opinion that water actually sold and delivered
by an irrigation company to farmers who have
contracted with the company for its delivery
may be considered "goods sold"; or, in other
words, that the sale of water in this manner is
a commercial transaction. Consequently the
Board is of the opinion that a note of the
irrigation company, the proceeds of which have
been or are to be used for pay roll or other
current purposes in connection with the distribution of the water to the farmers, is eligible
for rediscount by a Federal Reserve Bank,
provided that the note otherwise complies with
949
the requirements of the law and of the Federal
Reserve Board's regulations.
Where a note of an irrigation company is
offered for rediscount as agricultural paper, the
note having a maturity in excess of three
months but less than six months, and the
irrigation company owning and operating both
an irrigation system and a rice farm, the
Federal Reserve Bank must be satisfied that
the proceeds of the particular note have been
in fact used for an agricultural purpose in connection with the rice farm, as distinguished
from a commercial purpose in connection with
the delivery and sale of water to farmers
through the irrigation system. Of course, the
fact that the note bears upon its face a statement to the effect that the purpose for which
the proceeds have been or are to be used is an
agricultural purpose need not be taken by the
Federal Reserve Bank as conclusive.
Real estate loans by national banks exercising trust
powers.
The Federal Reserve Board has received an
inquiry as to whether a national bank, after
qualifying under section ll(k) of the Federal
Reserve Act to exercise fiduciary powers, may
engage in any business which a State trust company may carry on under the laws of the same
State.
The Federal Reserve Board is of the opinion
that under section 11 (k) of the Federal Reserve
Act national banks which have duly qualified
may act in those capacities specifically enumerated in that section and in any other fiduciary
capacity in which competing trust companies
in the same State are permitted to act. The
Board does not believe that national banks
can exercise any nonfiduciary powers merely
because competing trust companies are permitted to exercise those powers under the laws
of a particular State.
Section 24 of the Federal Reserve Act
authorizes a national bank which is not located
in a central reserve city to make loans secured
by improved and unencumbered farm lands
situated within its Federal Reserve district
or within a radius of 100 miles of the place in
which such bank is located, irrespective of
district line, and also to make loans secured
by improved or unencumbered real estate
located within 100 miles of the place in which
such bank is located, irrespective of district
lines, and imposes certain limitations as to the
maturities and amounts of such loans. The
provisions of this section are controlling upon
all national banks, irrespective of whether or
not they have qualified under section ll(k)
950
FEDERAL RESERVE BULLETIN".
to exercise fiduciary powers, and no national
bank may loan its own funds upon the security
of farm lands or real estate except upon the
conditions and subject to the limitations imposed by section 24. The Federal Reserve
Board knows of no provision of law which
would permit a national bank to create a
special trust fund in its trust department for
the benefit of itself, and certainly a national
bank should not be permitted, by means of any
such indirect method, to use its own assets in a
manner which would be in violation of law if
done directly without the intervention of the
trust department.
The further inquiry is made as to whether a
national bank duly qualified to act as trustee
may invest funds which it holds as trustee in
loans upon farm lands and real estate without
regard to the provisions of section 24 of the
Federal Reserve Act. A national bank is
bound by the terms of the instrument creating
SEPTEMB&R, 1920.
the particular trust in so far as the investment
of trust funds is concerned. It is the opinion
of the Federal Reserve Board that under the
terms of paragraph VI of Regulation F, series
of 1919, where a national bank is acting as
trustee for a third person of funds which, under
the terms of the instrument creating the trust,
may be invested in loans secured by farm lands
or real estate, the national bank may invest
those funds in such loans on farm lands or real
estate, and in such amounts, as a State trust
company would be authorized to make under
the laws of that State, if it were acting as
trustee under the same trust instrument. In
other words, the Board is of the opinion that
the provisions of section 24 of the Federal
Reserve Act apply to any investment by a
national bank of its own funds but do not
necessarily apply to an investment of trust
funds held by a national bank as trustee for a
third person.
LAW DEPARTMENT.
and negotiate with or without its endorsement or guaranty,
notes, drafts, checks, bills of exchange, acceptances,
including bankers' acceptances, cable transfers and other
evidences of indebtedness; to purchase and sell, with or
without its endorsement or guaranty, stocks, bonds, securities including the obligations of the United States or
of any State thereof; to issue debentures, bonds, and
promissory notes, to accept bills or drafts drawn upon it,
but in no event having liabilities outstanding thereon at
any one time exceeding five times its capital stock and
surplus; provided, however, that with the consent in
Be it enacted by the Legislature of the State of Texas:
writing of the Commissioner of Insurance and Banking,
SECTION 1. Any trust company organized under the they may have outstanding at any one time ten times the
laws of the State with a capital of not less than five hundred capital stock and surplus; and generally to exercise such
thousand dollars shall, in addition to all other powers con- powers as are incidental to the powers conferred by this act.
ferred by law, have the power to purchase, sell, discount,
Amendment to Texas banking laws.
The Legislature of the State of Texas recently enacted the following act which specifically authorizes trust companies having a
capital of not less than $500,000 to deal in
commercial paper and to accept bills or drafts
drawn upon them:
SEPTEMBER,
1920.
951
FEDERAL RESERVE BULLETIN.
RETAIL TRADE.
In the following tables is given a summary
of the results obtained during the past few
months in districts Nos. 1, 2, 3, 4, 5, 6, 7, 9,
10, 11, and 12, on the regular retail trade index
form from representative department stores.
In districts Nos. 1, 5, 11, and 12 the data were
received in (and averages computed from)
actual amounts (dollars). In districts Nos. 2,
3, 4, 5, 6, 7, 9, and 10 the material w^as received in the form of percentages, the averages
for the cities and districts computed from such
percentages being weighted according to vol-
ume of business done during the calendar year
1919. For the month of July, the tables are
based on reports from 22 stores in district No.
1, 10 in district No. 2, 15 in district No. 3,
14 in district No. 4, 20 in district No. 5, 11
in district No. 6, 8 in district No. 7, 13 in
district No. 9, 15 in district No. 10, 15 in district No. 11, and 29 in district No. 12. For
the earlier months the number of stores varied
somewhat, due to the inclusion of new stores
from time to time in the reporting list.
Condition of retail tram in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, and 12.
[Percentage of increase.]
Comparison of net sales with those of corresponding period previous year.
District and city.
July 1, 1919,
to close of—
November,
1919.
District No. 1:
Boston.
Outside
District
District No. 2:
N.Y. City and
Brooklyn
Outside
DeFebApril, May, June,
cem- January, ruary, March,
ber, 1920.
1920. 1920. 1920. 1920. 1920.
1919.
November,
1919.
DeFeb- March, April, May,
cem- ruary,
ber, 1920. 1920. 1920. 1920.
1919.
June, July,
1920. 1920.
42.3
41.9
33 2
43.5
15.4
36.1
38.9
29.4
16.8
26.0
19.4
25.5
27.8
28.5
16.3
27.2
36.3
38.5
24.9
41.6
30.7
36.4
26.1
33.1
24.7
30.5
25.3
30.0
16.3
27.2
42.1
34.8
18.3
37.5
18.5
20.7
28.0
19.9
37.2
32.5
31.6
27.5
25.8
26.2
19.9
49.2
54.6
29.9
66.6
50.4
15.0
22.4
26.4
32.3
22.4
26.9
49.7
39.8
59.3
38.1
35.0
33.6
35.3
30.1
32.7
31.7
22.4
26.9
64 8
15.8
41.1
22.8
35.4
28.4
24.4
57.0
34.9
33.7
33.8
24.4
23.8
29 9
15.7
11.6
41.2
11.6
14.1
26.9
20.3
36.0
5.3
26.2
38.2
12.1
29.9
57.4
20.5
33.6
8.8
22.0
43.5
19.8
24.9
30.9
32.1
9.3
28.1
49.6
5.6
21.2
31.0
34.6
11.4
29.3
58.7
12.0
17.9
23.8
29.9
15.7
11.6
41.2
11.6
14.1
25.9
District
50.7
31.3
11.0
31.0
49.7
24.6
12.4
18.4
.9
23.4
33.3
17.0
19.6
10.9
34.3
31 5
21.4
24.3
59.6
11.8
12.9
51.6
26.9
27.4
22.6
22.4
23.6
11.5
58.4
35.4
31.0
65.1
19.2
19.8
10.5
43.6
28.5
14.9
33.9
4.3
10.9
7.1
38.2
40.9
17.1
34.4
6.3
48.8
26.4
39.0
23.6
15.2
32.1
11.1
62.8
18.3
35.1
21.0
16.9
20.1
.2
22.7
20.6
77.2
46.3
31.9
35.7
29.5
70.4
32.0
77.3
47.1
31.9
39.5
29.3
72.0
29.2
68.3
58.9
34.8
36.6
23.0
30.1
18.1
61.2 56.1
39.7 36.6
32.3 27.9
60.9 47.5
21.8 U6.2
26.8 23.1
15.1 12.8
52.2
37.6
25.6
39.4
13.9
29.1
16.4
35.1
49.8
21.0
35.3
16.9
23.2
20.1
38.3
.2
13.4
35.7 . 22.7
14.7
20.6
31.1
37.8
13.8
31.2
27.8
21.2
47.5
47.0
46.5
41.0
34.7
33.2
22.2
17.6
28 6
14.2
""48*2"
5L7*
District No 3
District No 4
District No. 5
District No. 6
District No. 7
District No. 9 . .
District No. 10
District No 11
District No. 12:
Los Angeles...
San Francisco.
Oakland
Sacramento...
Seattle
Spokane
Salt Lake City
88.7
45.2
30.3
36.6
21.0
46.4
42.7
77.3
54.6
29.8
50.7
28.6
77.1
32.3
83.8
53.5
41.4
54.2
23.9
36.2
23.8
District
46.1
50.7
51.7
July,
1920.
Jan. 1, 1920, to close of—
37.5
45 5
23.1
27.4
65.2
4.3
"m'.Y
26.9
36.9
21.2
952
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Condition of retail trade in Federal Reserve districts Nos. 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, and 12—Continued.
[Percentage of increase.]
Stocks at end of month compared with—
Same month previous year.
District and city.
Previous month.
Nov., D e c , Jan., Feb., Mar., Apr., Mav, June July, Nov., D e c , Jan., Feb., Mar., Apr., May, June, July,
1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920. 1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920.
District No. 1:
Boston
Outside
District
District No. 2:
New York Ci ty
Brooklyn
Outside
ancL
38 1
37.5
42 3
44.9
45 9 44 5
43. 2 43.8
43 8
36.3
32 1
30.4
i09 l52
13.8 13.7
74
9.7
99
11.9
40 13 4 156
2.8 1 1.8 15.I
25.2
29.6
38.0
42.8
44.7
44.3
41.4
31.5
16.1 15.1
7.8
10.2
3.7
12.9 15.5
14.7
36.4
44.0
49.6
69.6
60.6
53 .8
51 .6
47.9
51.7
45. 5 46.2
38.4 30.9
11.9
8.4
27.9
1.3 16.6 15.4
9 3 1 1.4 1 1.7 1 7.7
14.3
4.6
9.9
16.4
48 6
57.0
1 3.4
7.0
42.7
53 6
49.1
43.2
39.5
24.3
56.1
51.5
41 1
64.9
9-
38.9
59
29 q
39 q
27
43
30.4
57.0
67.1
50 2
49.7
18 7
40.7
26.7
53 3
57.2
47.2
77.1
30.7
39.6
28.4
48.3
44.6
51.6
70.1
12.6
43.6
69.5
58.3
62.2
35 2 J
61.8
53 8
63.3
64.9
60.7
34.4
29 4
55-5
39.0
65.0
54.9
29.7
34.1
46.7
59.6
62.9
58.5
33.9
35.6
57.3
47.5 i 0.7 110.9 9.7 12.1
2.2 i l l . l
43.1
4.7 12.7
.2 i 9.7 1 8.4 18.6
27.7
i 6.1
23.4 i 2.9 U8.9 1 2.0 11.8
3.4 115.6
9.4 10.9
45.8
15 3
13.8
31 4 44.5
13.2 25.4
17.5
28.5
38.0
48.4
.3
District
58.0
56.5
52.6
52.5
40.1
51.8
42.1
59.4
27 7
37.1
53 7
35.0
19.5
26.5
4.9
31.0
32.7
92
44.0
45.9
10.6
7
63 q
Percentage of average stocks at end of each month to average
monthly sales for same period.
District and city.
July 1. 1919,
to end of—
Nov.,
1919.
District No. 1:
Boston
Outside
District
District No. 2:
New York City
and Brooklyn
Outside
District
463.1
45.1
10.5
25.8
1.4
12.3
11.6
14.1
1 6.7 1 3.0
11 0
73
i.l
19.2
2.3
1
30
5 1 5.6
4.7
14.7
55.9
10.1
7.8
i.3
U3.3
2.6
14.0
15.O 1 6.1
5.4
4 7
3.1
2.1
8
31
1 6.1 18.8
3.7 1 .5 1.4
2.4 1 6.5 11 5.2
2.6
1.6
!. 5
3.7
1 1.5 0.1
1 6.7 18.7
14.9
27.9 140.2 15.7 1 4.4
7.8
6.1
6.5
96
.2
1.5
1
3.3
1.4
2.5
56
14.7
1 4 7
8.9
8.3
J
1.81.5
2.9
M.2
1.8
1 4 7 13.0
1.8
Percentage of outstanding orders at end of month to
total purchases during previous calendar year.
Jan. ] , 1920, to end of—
Nov., Dec, Jan., Feb., Mar., Apr., May, June, July,
1919. 1919. 1920. 1920. 1920. 1920. 1920. 1920. 1920.
Dec,
1919.
Jan..
1920.'
Mar.,
1920.
Apr.,
1920.
May,
1920.
June,
1920.
360.7
413.9
320. S 382.2 509. 5
229.8 402. 5 320. 5
389 8
464 .7
348.4
442.5
339. 2 419.2
431.? 436.4
24.8
13.7
26.5
16.7
19.6
19.7
18.8
18.6
15.8
15.5
15.4
15.4
10.0
18.5
7.5
382.1
306.0
385.5
389. 9
405 . 2
366.5
358.0
425.1
23.1
24.0
19.6
18.7
15.7
12.7
12.3
12.0
343. 4 336.9
405.6
3S4. 7 403.1
372. 3 392.8
392. 4 379.9
415.7 349.5
36.3
22.8
22.9
18.8
20.3
17.6
21.8
15. 5 16.8
13.9 17.7
15.7
18.9
383. 4
402 .0
399.4
369.9
390.0
485.8
440.1
19.0
18.2
14.8
17.2
17.4
380. 0 347 0
369 1 439 0
423 s 422 2
382.6
362.8
421.5
357.5
362.3
407.0
399.8
403.6
505.9
21.0
27.9
18.6
20.4
19.3
16.2
332.5
189 4
29.7
20.6
31.9
19.5
1
328.3 432.7
109.0 107.9
353.7 384.1
18.1
337. 6
305.8
31.8
285.4
14.6
23. 5
34.8
12.1
20.1
31.2
9.6
18.0
17.6
13.2
298. 6
24.8
19.4
16.9
20.9
31.4
5.4
17.0
19.5
20.0
25.3
19.8
18.9
16.1
17.4
19.3
13.7
15.6
18.6
481.3 522.5
508.8 539.9
573 8 625 1
531.3
524.6 470.2
579.4 652.6
53.5
29.5
48.1
28.1
33.3
18.2
37.1
31.9
33.9
31.0
39.0
27.7
29.7
23.9
26.2
26.0
22.8
25.9
22.1
20.0
11.4
32.2 18.4
34.5 37.2
8 ?,
22.6
40.6
17.6
34.7
17.2
14.2
31.1
16.3
25.1
16.3
29.9
18.7
516.0
536.5
29.2
32.3
31.7
27.2
21.6
23.2
23.1
22. a
Feb.,
1920.
District
District No 3
District No 4
District No 5
District No 6
District No. 7
,..
District No 9
District No 10
District No 11
District No. 12:
485.6
Los Angeles
San Francisco.. 453.0
Oakland
559 1
339 3
432.0
Seattle
462.4
Spokane
Salt Lake City..
110.4
68.6
District
District No. 3 . . . .
District No. 4
District No. 5
District No. 6
District No. 7
District No. 9
District No. 10
District No. 11
District No. 12:
Los Angeles
San Francisco..
Oakland
Sacramento
Seattle
Spokane
17 0
25 4 29.7
24.9 28.4
386 3
456 8
424.3
403.1
600 2
422.7
405.2
490 6
418.3
477.5
581 6
468.3
494.97
610
390.7
492.3
585 9
378.0
411.5
427.1
508.8
665.0
755.9
542, 6
605.8
527 9
528.8
480.4
469.8
589 5
533.4
539.7
605.4
422.6
429.0
534.7
515. 3
456 .0
508.0
1
Decrease.
July,
1920.
28.0
9.9
9.7
9.1
SEPTEMBER,, 1920.
953
FEDERAL RESERVE BULLETIN.
FOREIGN TRADE INDEX.
There is presented below a series of indexes
After their decline in June, total exports
designed to reflect movements in foreign trade again showed an increase in July, though they
of the United States, with fluctuations due to were still less than for May. Total imports, on
price changes eliminated. The commodities the other hand, showed a decrease. While
chosen for these indexes are those for which there was a decrease in the exports of conprices are compiled by the Federal Reserve sumers' goods, this was more than compenBoard in the preparation of its international sated for by the increase in the
exports of both
price index. The list includes 14 of the most raw materials and producers7"goods. The latimportant imports, the value of which in 1913 ter showed the most marked increase, being
formed 40.6 per cent of the total import values, considerably greater than for both last month
and 29 of the most important exports, the value and the same month last year. The increase
of which in 1913 formed 56.3 per cent of the in the imports of consumers' goods which was
total export values. The list of the com- shown for July as compared with June was
modities is given in the July BULLETIN.
more than offset by decreases in imports of both
raw materials and producers' goods.
Value of exports and imports of selected commodities at 1913 prices.
[In thousands of dollars; i. e., 000 omitted.]
[Monthly average values, 1913=100.]
Imports.
Exports.
Raw materials
(12 commodities).
1913.
January
February...
March
April
Hay
June
July
August
September..
October
November..
December..
Producers'
goods (10 commodities).
Index
Index
Index
num- Value. num- Value. number.
ber.
ber.
Value.
100,027
71,074
01,€81
71,446
68,856
46,9(:3
51,325
74,869
103,614
137,772
126,836
113,326
116.8
83.0
72.0
83.0
80.4
54.8
59.9
87.4
120.9
160.9
148.1
132.3
142, 504 111.6
114,130
89.4
102,215
80.1
114,282
89.5
110,440
86.5
86.817
68.0
90,120
70.6
115,786
90.7
146,426 114.7
184,992 144.9
168,069 131.6
156,468 122.5
Year... 1,027,789
11,762 101.4
12,266 105.8
11,836 102.1
14,128 121.8
11,661 100.6
11,612 100.1
11,109
95.8
11,547
99.5
10,622
91.6
12,6C8 108.7
9,987
86.1
10, 053
86.7
100.0 139,191
84,066
58,488
57,659
(,5,112
1,7,595
98,335
71,918
SI, 302
70,209
70,240
09,589
S9,585
Year.
914,098
88.9 214,837
1920.
January
February...
March
April
May
June
July
l>3,141
70,130
90,805
(8,048
(3,650
S5,200
66,924
108. 7 15,647
81.9 14,198
106.0 17,279
79.4 17,063
74.3 17,546
64.5 14,663
78.1 19,138
98.2
G8.3
67.3
76.0
78.9
114.8
84.0
94.9
82.0
82.0
116.3
104.6
18, 444
14,598
16,161
19,356
15,972
28,018
16,953
19,578
19,31)5
16,844
15,740
13,208
30,715
33, 790
28, 098
28,708
29,923
28,242
27, (,86
29,370
32,190
34,612
31,246
33,089
100.0 365,269
159.0
125.9
139.3
166.9
137.7
246.7
146.1
168. 8
167. 0
145.2
135.7
113.9
56,748
53,338
61,585
80, (:39
58,731
96,088
50,531
49,548
43,108
45,983
46,473
43,563
100.9
101.2
94.3
94.3
98.3
92.8
91.0
96.5
105.8
113.8
102.7
108.7
50,336 123.8
45,175 111.1
46,079 113.3
42,785 105.2
93.7
38,111
80.6
32,793
77.9
31,681
86.6
35,194
42, 588 104.7
90.6
36,842
92.1
37,465
120.2
48, 886
100.0 37], 912
186.4
175.2
202.3
264.9
192.9
315.7
166.0
162. 8
141.6
151.1
152.7
143.1
94.1
86.3
96.9
126.1
176.7
180.3
179.5
191.8
269.9
218.2
207.6
158.0
124.7 38,273
99.0 35,074
106.1 39,396
129.3 51,280
111.4 71,831
174.7 73,311
109.1 72,974
117.8 77.988
103.9 109,761
104.2 88,701
126.7 84,424
114.6 €4,252
154.4 686,335
187.9 1,815,270 | 118.5 (807,265
134.9
122.4
149.0
147.1
151.3
126.4
165.0
116.3
136.8
185.4
169.8
205.2
151.5
142.4
35,406
41,645
50,428
51,689
62,457
46,113
43,325
32,545
34,308
37,824
36,216
32,601
33,790
31,178
34,223
35,137
18,331
22,353
23.406
100.0 1,532,249 | 100.0487,935
159,258
126,424
135,405
165,107
142,298
223,041
139,402
150,428
132,682
133,067
161,802
146,356
144, 194
125, 973
164, 512
136, 800
H3, 653
115, 976
129, 387
Consumers'
Grand total
goods (2 com- imports (14 commodities).
modities).
Index
Index
Index
Index
num- Value. num- Value. num- Value. number.
ber.
ber.
ber.
Value.
1919.
January
February...
March
April
May
June
July
August
September..
October....
November..
December..
Producers'
Grand total
Raw materials
Consumers'
*oods (7 com- exports (29 com- (6 commodi- goods (6 comties).
modities).
modities).
modities).
112. 9
98.7
128. 9
107. 1
112. 5
91.1
101. 3
90,433
75,597
77,966
77,288
45,967
55,965
48,580
105.0
110.7
122.0
116.9
105.2
109.0
100.6
110.4
113.4
59.2
72.1
75.5
12,080
11,865
10,145
8,983
6,127
6,843
7,557
9,438
14,0t8
14,695
13,892
19,028
107.6
105.7
90.4
80.0
54.6
60.9
67.3
84.1
125.3
130.9
123.8
169.5
Value.
94,961
91,348
94,018
87.984
76,839
73,426
70,416
78,855
91,793
69,868
73.710
91,320
Index
number.
114.6
110.2
113.5
106.2
92.7
88.6
85.0
95.1
110.8
84.3
88.9
110.2
100.0 (134,721 j 100.0 994,568 i 100.0
45,892 148.1
60,653 195.7
78,773 254.2
81,409 202.7
84,538 272.8
57,244 184.7
72,172 232.9
36,460 117.6
60,884 196.4
64,921 209.5
69, 554 224.4
60,994 196. 8
96,280
107,783
139,937
145.911
172,318
142,703
lbt;, 701
131,973
191,424
170,820
171,038
140,077
116.2
130.0
168.8
176.0
208.0
172.3
201.1
159.2
231.0
206.1
200.4
169.0
165.5 773,494
2C8.0 jl90,206 , 145.7 1,777,025
178.7
222.4 82,014
185.9 99,502
191.7 117,188
190.1 89,684
113.0 74,811
137.6 87,205
119.5 86,720
264.6
321.0
378.1
289.4
241.4
281.4
279.8
12,115
12,056
21,708
13,222
15,949
12,208
21,555
17,525
20, 779
17,198
17,000
14,831
17,874
14,241
19,260
21,347
11,140
18,437
20,091
107.9
107.4
193.9
117.8
142.1
108.7
192.0
156.1
185.1
153.2
152.0
132.1
i 159.2
| 120.9
I 171.6
I 190.1
98.5
1(3.0
I 177.6
190,321
189,340
214,414
188,319
131,918
161,607
155,;:91
229.6
228.4
258.7
227.2
159.2
195.0
187.5
954
FEDERAL RESERVE BULLETIN".
SEPTEMBER, 1920.
WHOLESALE PRICES ABROAD.1
Index numbers of wholesale prices {all commodities).
[1913=100.]
United
France;
United
United
Bulletin
Italy;
States;
States;
Kingdom;
dela
Prof.
Federal Bureau of
Statist
Statistique Bachi (40
Reserve
Labor
(45
comGenerate
commodiBoard (90 Statistics
ties).
quota- (328 quota- modities). (45 commodities).
tions).
tions).
1913.
1914.
1915.
1916.
1917.
1918.
1919.
July
August
September...
October
November
December
•1920.
January
February
March
April
May
June
July
Sweden;
Svensk
Handelstidning.
Australia;
Japan;
Common- Canada; Calcutta,
India;
Bank of
wealth
DepartDepartment of
Japan for
Bureau
ment
of
Tokyo (56 Census and Labor (272 Statistics
quotacommodi- Statistics
(75
comtions).
ties).
(92 commodities).
modities).
100
100
100
101
124
174
197
100
.101
126
159
206
226
100
101
137
187
262
339
100
95
133
202
299
409
100
116
145
185
244
339
100
96
97
117
149
197
2 100
141
132
<155
170
100
101
110
135
177
206
212
218
212
212
219
224
218
226
221
223
230
238
243
250
252
264
271
276
349
347
360
382
405
423
359
368
370
388
436
455
320
321
319
307
308
317
247
251
257
271
280
288
176
182
185
200
199
197
218
223
223
222
227
240
242
242
248
263
264
258
251
248
249
253
265
272
269
262
288
306
307
313
305
300
299
487
522
555
584
550
493
492
504
556
619
679
659
614
319
342
354
354
361
366
364
301
313
321
300
272
248
239
203
206
209
217
225
233
234
248
254
258
261
263
258
256
204
200
218209
19&
200
210
206
209*
1
The index numbers printed in this article are constructed by the various foreign statistical offices according to methods described in the
BULLETIN for January, 1920. In all cases except that of the United States the original basis upon which the index numbers have been computed
has been shifted to the 1913 base. The monthly and yearly index numbers are therefore only approximate. The latestfiguresare received by
cable and are subject to correction.
2 July, 1914= 100.
sEnd of July, 1914=100.
* Last six months of 1917.
In France and England the decline in wholesale prices which began in April had about
come to a standstill in July. Japanese prices
were still declining, but not so rapidly as during the three or four months previous. In the
United States the recession in prices occurred
somewhat later than abroad, and was quite as
considerable in July as in June. Elsewhere,
with the exception of Italy, the trend has not
been especially striking. The present situation
in the leading commercial countries varies with
different commodities. Liquidation has been
completed in certain lines (such as nonferrous
metals) and prices are beginning to advance;
in other lines no reductions have been made
because of shortage of materials, and in still
others (notably textiles) inactivity and stationary or falling prices continue.
ENGLAND.
The Statist index shows a gradual decline in
prices since April, amounting in all to 14 points
when computed on the 1913 base, the decline
from the end of June to the end of July amounting to only 1 point. The Economist index
shows a decline in prices between March and
June, but a slight rise in July. Certain leading
industries, such as the iron and steel industry,
have been largely unaffected by price recessions. Coal prices remain fixed at their former
level. Nonferrous metals, such as copper; tin,
zinc, and lead, which were among the first commodities to decline in price, have moved upward again in July. Textile and leather lines
seem to be passing through a rather more extended period of inactivity. Retail prices
have not as yet declined, although the rate of
increase in July was not so great as thatof May
and June.
During July the currency note circulation
continued to increase, but not at the June rate.
In both months legal requirements as to the
maximum issue were met by transferring bank
notes to the currency notes account. Thus the
currency note circulation increased from 351
million pounds the first of June to 362 million
pounds at the end of July, and bank notes in
the redemption account increased from 10.4
million to 18.5 million pounds during the same
period. Note circulation of the bank increased
only about 2 million pounds between the first
of June and the end of July, not including the
notes which went to the redemption account.
Coin and bullion held by the bank increased
almost 3 million pounds during July and
deposits declined very markedly between June
SEPTEMBER,
30, when they amounted to 192 million
pounds, and July 28, when they stood at 134
million pounds. During the first weeks of
August they have been on a higher level than
during July. The expansion of deposits was
unusually heavy at the end of June because
that date ended the half year.
A comparison of conditions between April 15,
when the discount rate at the Bank of England
was raised from 6 to 7 per cent, and the end of
July, shows that currency and bank-note circulation have expanded at a rapid pace, although
in the case of the latter not so rapidly as during
the first quarter of the year. Gold has been
concentrated in the Bank of England, and
deposits with the bank have been less extensive
than during the first quarter. Deposits with
the "five big banks/' however, increased during the first half of the year. During the period
between April 15 and the end of July, coin
and bullion held by the bank increased from
112.4 million to 123.2 million pounds, or 9.6
per cent; currency note circulation increased
from 340 million to 362 million pounds, or 6.5
per cent, and bank note circulation from 100
to 107 million pounds, or 7 per cent. Between
the same dates, deposits (public and other)
declined from 142 million to 134 million pounds,
but during June they stood for the most part
higher than in April and during August they
have been at about the April level. Deposits
of the five leading English commercial banks
were increased during the first half year of
1920 by 31.9 million pounds.
As regards the floating debt, Treasury bills
outstanding at the end of March amounted to
1,107 million pounds, whereas at the end of
July they had been reduced to 1,058 million
pounds. The floating debt as a whole fell from
1,312 million at the earlier date to 1,262 million
pounds at the end of July.
The positive stand taken by the chancellor
of the exchequer in the matter of floating debt
reduction has been widely condemned in the
British financial press. Too rapid debt reduction brought about by excessive taxation will
deter rather than speed the return to norma
conditions is the view taken by these groups.
They urge the removal of the excess profits
duty and sharp reduction in Government expenditures as the best means of bringing about
stable financial conditions. At the present time
the excess profits duty stands at 60 per cent,
but the chancellor has stated that the tax will
be reduced to 40 per cent in the next budget
or eliminated if a substitute for it can be found.
Whether England has reached the limit of
her tax-paying capacity is a question which
is much under discussion there. According
to reliable figures the per capita rate of taxation is $105.47, a considerably larger sum
than in the United States or France, where
the per capita rates are $53.71 and $44.51,
respectively. During the present period of
more or less widespread trade depression, an
attack upon methods of taxation is to be expected. As prices approach more nearly to
costs, it is natural that taxes loom larger and
seem to be the cause of the depression. It
seems more likely, however, that a reduction
has occurred in consumers' demand (either
because of inability to pay or of fairly large
stocks) which together with the curtailment
of credit has caused the present inactivity in
commodity markets.
How much Government expenditures can be
reduced is always a matter difficult to determine because of political considerations. The
Manchester Guardian is of the opinion that
they can not be appreciably decreased. The
bread subsidy, amounting to 45 million pounds
annually, is still effective, but will probably be
removed in the next budget.
Discount rates during the first six months of
1920 have risen very appreciably, in the case
of bankers bills from an average of 5|-f per
cent at the end of January to 6y^ per cent at
the end of July. The greatest increase occurred
following the raising of the official bank rate
in the middle of April. During July rates
tended to be slightly easier than in the two
preceding months.
Government floating debt.
Deposit and note accounts.
1920.
Bank
notes.1
End ol—
January..
February
March
April
May
June
July
1
Currency
notes and Deposits,
certificates public and
outstandother.
ing.
000's.
£84,258
92,426
99,371
101,284
103,614
106,658
106,869
Less notes in currency notes account.
955
FEDERAL RESERVE BULLETIN.
1920.
000's.
£329,554
324,994
335,372
337,377
348,316
357,356
361,911
000's.
£155,272
190,147
137,170
140,381
117,784
191,715
133,796
2
Coin and
bullion.2
000's.
£128,434
138,946
140,672
141,018
140,955
146,382
15], 734
Treasury
bills.
000's.
£1,111,000
1,070,000
1,107,000
1,048,000
1,062,000
1,050,000
1,058,000
Discount rates.
Temporary Total float- 3 month's 6 month's
advances. ing debt. bank bills. trade bills.
000's.
£208,000
188,000
205,000
249,000
221,000
244,000
204,000
000's.
£1,319,000
1,258,000
1,312,000
1,297,000
1,283,000
1,294,000
1,262,000
Per cent.
Held by the Bank of England and by the Treasury as note reserve.
Per cent.
3
956
FEDERAL RESERVE BULLETIN.
Foreign trade showed further improvement
during July, the adverse balance totaling only
8.5 million pounds. From the point of view
of international payments this showing is
very favorable, and when considered as an
index of production or export capacity it
shows great improvement over a year ago.
A study of the trade of the first six months
of the year by the board of trade shows
that in quantity exports in 1920 were 26.5
per cent less than exports in 1913. ~ Keexports were 5 per cent less than in the prewar
year, and imports 3.4 per cent less. The July
figures show appreciable improvement over
those of earlier months of the year and this in
SEPTEMBER, 1920.
spite of the fact that the export of coal continued to be very largely curtailed. Since coal
production shows little prospect of reaching
prewar levels, an increase must occur in the
export of other commodities if British trade
is to regain its prewar position.
Coal production during July, taken on a
weekly basis, was slightly less than that of
June and appreciably less than that of February and March. This was due to continued
export restrictions which although somewhat
amended apparently allow little of the commodity to leave the country. The trend of
pig-iron and steel-ingot production continued
upward.
Value of foreign trade.
Production (metric tons).
Date.
Imports.
Monthly average, 1913. .
Exports. Reexports.
Coal.
Pig iron.
Ship
Steel ingots
and
castings.
000's.
£39,061
000's.
£43,771
000's.
£9,131
000's.
24,336
000's.
869
000's.
649
183 498
170,514
176,648
167,154
166,816
170,491
163,842
105,880
85,964
103,699
106,252
119 319
116,352
137,452
25 464
22,604
27,031
20,407
20 260
20,124
17,848
i 22,657
19,435
19,505
17,131
122 131
19,048
1
22,926
676
656
710
655
738
726
750
766
811
854
779
848
745
800
tonnage
under
construction (gross
tons).
2
2,002,699
1920.
January
February . . .
March
April ..
May
June...
July
.
1
2
3,578,000
5 weeks in the month.
Average of four quarterly estimates. Figures following are estimates taken at the end of each quarter.
The price situation in the different commodity lines is exceedingly confused. According
to cables received by the Board from consular
agents in England the following basic foodstuffs were as high in July as in June or higher:
Wheat, barley, beef, ham, mutton, tea, and
butter. Sugar and coffee were the only important staple foods to decline. The leading
raw materials in the manufacture of textiles
were, on the other hand, lower than in June,
jute showing a very considerable drop. Hides
likewise continued to decline. In the mineral
group, coal and Cleveland pig iron were the
same as in June, steel billets declined in price,
but copper, lead, zinc, and tin (the first commodities to be liquidated in the spring) were
higher than in June. Rubber and nitrate of
soda declined.
According to the Statist index, vegetable
foods as a group declined, animal foods advanced very materially, and sugar, tea, and
coffee declined. This agrees with the consular
report except as regards vegetable foods. The
increase in minerals (due to the rise in nonferrous metals) and the decline in textiles and
3,394,425
sundries is likewise in accord with the report
of the American consul.
The Economist index, on the other hand,
shows a decline in cereals and meats, a rise in
"other foods" (consisting of tea, sugar, etc.),
and a rise in textiles and a fall in miscellaneous
commodities, such as rubber, timber, oils, etc.
It agrees with the Statist and the consular
representative in showing an increase in the
price of minerals.
Trading in cotton was reported to have
improved in Manchester toward the end of
July as a result of renewed buying from India
and China. The Polish situation, following
closely upon the previous inactivity, had a
tendency to keep trade inactive, however. In
the case of wool the fundamental cause for
lower prices is to be found in the very large
stocks of raw material owned by the Government in Australia and to be transported to England as rapidly as shipping will allow. The
market in raw materials and finished goods continued inactive. Jute prices have been affected
by the condition of Indian exchange, which
has recently been very favorable to England.
957
FEDERAL RESERVE BULLETIN.
SEPTEMBER,, 1920.
The continental exchanges were somewhat Berlin improved. During August the Polish
less favorable to England in July than during re- situation had a bad effect upon all the excent months. The position of Paris, Italy, and changes.
Foreign exchange rates, 1 London on—
Statist index number of wholesale prices (193=100).
Date.
Vege- Ani- Sugar, Food- Minmal coffee,
table
foods. foods. tea. stuffs. erals.
1913
1914
1915
1916
1917.
1918
1919-end of—
July
August.
September
October...
November
December
1920:
January..
February.
March
April
May
June
July
Textiles.
Sun- Matedries. rials.
NewYork.
Paris.
Italy.
Berlin.
Buenos StockAires. holm.
Calcutta.
100
110
155
193
252
248
100
100
125
152
192
210
100
107
130
161
213
238
100
105
137
169
218
229
100
90
109
140
152
167
100
97
111
152
228
265
100
105
131
163
212
243
100
98
119
153
198
225
100 24. 8665
101
126
159
206
226
25. 2250
25.2250
20.430
.47.580
18.159
24
244
255
258
260
266
270
208
208
208
226
226
228
275
320
328
322
332
336
231
242
245
253
258
260
203
206
206
222
226
234
257
273
287
305
325
334
283
283
278
284
292
296
249
255
257
270
280
286
243
250
252
264
271
276
4. 4056
4.3400
4.1629
4.1934
4.1142
3. 8646
31.0900
32.7475
35.7287
35.5900
38. 2450
41.4566
37.4525
38.2500
40.8125
41. 6000
47. 7937
49.6166
101.937
106.500
156.375
183.333
52. 000
52.875
55.500
55.125
56.750
61.110
17.774
17.400
17.050
17.265
17.676
17.784
22
274
297
345
246
351
359
343
230
237
237
265
244
244
278
356
415
393
392
473
496
425
265
286
300
315
318
325
325
256
267
263
263
273
269
276
. 343
362
360
354
308
308
298
312
329
318
321
311
282
277
302
318
312
311
298
285
283
288
306
307
313
305
300
299
3.6904
3.4612
3.6907
3.9181
3. 8462
3.9421
3. 8755
42.9375
48.2125
52.3375
63.2937
56.7125
48.9200
47.0425
51. 2375
60.3812
70.4700
88.0000
76.3120
66.9550
66.1875
239.375
327.750
304.100
239. 500
183.870
154.700
150. 813
63.390
69.660
64.660
60.125
60.220
58.190
56.700
17.804
18.208
18. 244
17.935
18.208
18.081
17. 716
1
Average of weekly quotations from London Times.
The cost of living has not been reduced as yet
in spite of decreases in some lines of goods at
wholesale. This is accounted for in part by the
fact that there is a lag between fluctuations in
wholesale and retail prices, but probably to a
larger extent by the fact that foods have not
been much reduced and rents, fuel, and gas are
still advancing. Of the items of great importance in the family budget, clothing is probably
the only one which has been appreciably reduced in recent months.
Although unemployment is reported in shipyards and short hours in several lines of industry, trade-union unemployment returns for the
month of July were not high. They showed,
however, increasing lack 01 employment between Ma?ch and July.
Cost of
living
(food,
Tradeunion unrent,
clothing, employment
fuel,
(memlighi
bership
etc.),
base, 1,572,085).
July,
1914.
1920.
125
130
130
132
141
150
152
155
January
February... .
;
March
April..
May
June .
July
August
All.
9149°—20
5
Per cent.
2.S
1.6
1.1
.9
1.1
1.2
1.4
2
n
24^
27|
29f
28H
23l*
22§
Par.
FRANCE.
There was little change in the price level
in France during July, and the most interesting
developments tnere, if one discounts events of
a political character, were in regard to the
financial situation of the Government. In the
last days of June the Senate and the Chamber
of Deputies completed the work of enacting
new taxes which will, according to Les Temps,
increase the annual revenue of the French
Government to approximately 23,000,000,000
francs a year. On July 20 there were reported
to the Senate the expenses of the war and the
deficit occasioned thereby and the public debt
as of July 1 was announced. On July 31 the
Chamber of Deputies granted the request of the
finance minister for the issuing of a new loan,
and in the first week of August it was announced that France was making preparations
for the payment of her share of the AngloFrench loan due the United States in October.
The recently enacted tax laws provide for
the application of the excess war profits tax
until June 30, 1920; for a tax of 1.1 per cent on
total business turnover; for increased inheritance, stamp, and registration taxes; and for
increased income taxes. The income taxes are
of two kinds, a classified and a general income
tax. The classified tax applies (a) to all persons in communities of 50,000 inhabitants or
less, whose incomes exceed 4,000 francs; (b) to
all persons in communities of more than 50,000
958
FEDERAL, RESERVE BULLETIN.
inhabitants or within a radius of 15 kilometers
of such a community whose incomes exceed
5,000 francs; and (c) to all persons in Paris
or within a radius of 25 kilometers of Paris
whose incomes exceed 6,000 francs. The
rate of this tax for amounts exceeding 8,000
francs is 8 per cent for incomes derived from
commercial enterprises, and 6 per cent for incomes derived from other sources. For the
amount between the minimum exempt and
8,000 francs there are provided giaduated rates
varying with the source of the income. The 20
per cent tax on incomes from mines and industries connected with mining, which is already
in effect, is not changed by the new law.
The general income tax affects only such
sums as exceed 6,000 francs after deductions
for the support of dependents have been made.
This tax is calculated at the rate of 50 per
cent on one twenty-fifth of the income between 6,000 and 20,000 francs, two twentyfifths of the income between 20,000 and
30,000 francs, and so on, adding one twentyfifth for each additional 10,000 francs up to
100,000 francs, for each 50,000 francs up to
550,000, and at the rate of 50 per cent on all
the income over 550,000 francs. This tax is
increased 25 per cent for those unmarried or
divorced persons over 30 years old who have
no dependents, and 10 per cent for persons
married more than two years who have no
children or other dependents. This does not
apply to those who are in receipt of a pension
for a 40 per cent disability or whose children
were killed during the war. Eeceipts from
the 1.1 per cent tax on total business turnover
are to be divided between the Central Government and the departments and communes, 1
per cent going to the Central Government and
0.1 per cent to the departments and communes. Business enterprises whose charges
are regulated by the Government or whose
profits were taxed before the passage of this
law are not required to pay the new tax. As
applied to businesses which supply lodging or
sell food and liquors for consumption on the
premises, the rate of the tax is increased to 3
per cent for those of second class, and to 10
per cent for those of first class. The total
turnover of industries selling luxuries at retail
or for consumption will also be taxed at the
rate of 10 per cent. As these taxes went into
effect immediately, French tax receipts in
July totaled 1,109 million francs, 22 per cent
more than the receipts for June, 1920, and 44
per cent more than those for July of last year.
According to the report to the Senate on
July 20, French expenses resulting from the
war from August 1, 1914, to July 31, 1920,
SEPTEMBER., 1920.
were 233,299,536,826 francs. The major part
of these expenses have been met as follows:
Billion francs.
Tax receipts
Advances from the Bank of France
Foreign loans
Treasury certificates
Domestic loans
43
26
35
46
72
The status of the public debt as of July 1,
1920, calculating foreign debts at par, was as
follows:
Million francs.
Domestic debt, perpetual and redeemable
Floating debt
Advances of the Bank of France
Foreign debt
Total
121, 949
51, 464
26, 020
34, 296
233,729
In the face of such a large floating debt and
the heavy burden of reconstruction, it is not
surprising that the finance minister, M. Francois Marsal, has asked for a new internal loan.
The loan floated last spring was not as largely
subscribed as it would have been but for the
widespread railroad strike which occurred
during the subscription period.
During the month of July the total gold
reserve of the Bank of France increased from
5,588 million francs to 5,589 million francs and
its silver reserve from 241 million francs to
248 million francs. During the same period
the note circulation of the bank rose from
37,544 million to 37,696 million francs.
Chiefly because of unfavorable news from the
East, exchange rates fluctuated unfavorably
during the month. Sterling was quoted about
2 francs higher at the end of July than at the
beginning, and the dollar rose from 12 francs 10
on the 1st to 13 francs 8^ on the 30th.
Crop reports continue to be good. Wheat
fields, vineyards, and the sugar beet, hay,
potato and flax crops were all in better condition in July, 1920, than in July, 1919. Much
of this improvement is said to be due to the
use of improved agricultural machinery. Sugar
production increased from 107,536 tons in the
season of 1918-19 to 152,403 tons in the season
of 1919-20. The increase in the food supply
of France is so great that the minister of commerce, M. Isaac, has announced that the
system of rationing will soon cease except as
regards wheat and wheat products, which will
remain under control until August, 1921. The
new price recently established for wheat is 100
francs per quintal and for bread 1 franc 25 to
1 franc 30 per kilogram, an increase in both
cases. The price of bread corresponds with the
price of wheat for the first time since 1915, thus
relieving the Treasury of a heavy burden.
SEPTEMBER,
959
FEDERAL EESERVE BULLETIN.
1920.
The task of supplying the country's needs
The course of wholesale prices in France during July shows no distinct trend either upward remains, however, a serious one. A recent
or downward. The silk market at Lyon re- report to the Senate sets forth the following
ports a period of inactivity as a result of the figures:
Coal received in France.
hope among buyers that prices will go still
[In thousands of metric tons.]
lower than the June level. The price of wool
at Havre decreased slightly during the month,
but cotton increased in price from 7 to 11 per
From
From
French
foreign
Total.
cent. The rise in the Statistique Generale inmines.
mines.
dex number for minerals seems to have been
caused by the increase in the prices of copper, 1913.
35,790
18,711
54,501
16,935
18,770
35,712
tin, and zinc, as iron and steel prices show little 1915
1916
18,185
18,735
36,920
15,110
39,928
24,818
variation throughout the month. The price of 1917
1918
22,100
15,933
38,033
vegetable foods, as is natural at this season of 1919
15,938
121,336
37,274
the year, declined markedly.
1 Of which 2,503,354 tons came from the Sarre Basin.
The following table shows the trend of prices
according to the Statistique Gene'rale:
The average monthly receipts in 1913 were
4,542 thousand tons, and in 1919 only 3,106
Group index numbers—France.
thousand tons; receipts for the first six months
[Bulletin de la Statistique Generate.]
of 1920 have totaled only 23,075 thousand
[1913-100.]
tons.
The improvement in the French balance of
Mate- trade has been so marked that the Government
Ani- Vege- Sugar,
coffee, Foods Min- Tex- Sun- rials
mal
table
Date.
(20). erals. tiles. dries. (25).
food. foods. and
has decided to remove part of the restrictions
cocoa.
on imports of luxuries. The following figures
100 show the extent of that improvement:
100
100
100
100
100
100
100
1913
1914
1915
1916
1917
1918
. .
103
126
162
215
286
103
126
170
243
298
106
151
164
201
231
104
151
167
225
281
98
164
232
271
283
109
132
180
303
460
99
145
199
302
420
101
145
206
291
387
372
360
387
402
424
432
336
309
308
337
351
380
257
263
264
268
271
278
338
323
334
353
369
375
267
273
279
295
323
357
406
434
476
554
620
649
395
398
402
403
415
419
358
367
381
405
435
454
452
484
500
522
480
482
501
432
474
516
511
480
400
370
*419
436
439
429
424
392
405
440
474
498
506
472
434
432
413
444
460
498
459
428
449
787
828
884
953
841
734
746
465
503
548
587
601
525
561
600
646
614
540
542
1919.
July
August
September..
October
November..
December...
1920.
January
February
March
April
May
June
July
517
500
Coal receipts for the month of June exceeded
those for May. Receipts for June and for July
1-20 were as follows:
Coal available in France.
J u n e , 1920.
French coal
Sarre coal English coal
Belgian coal..
American coal
German coal
Total
.
French foreign trade, January through July.1
[In millions of francs.]
1919
Imports:
Foodstuffs
. . .
Raw materials
Manufactured articles
Total
Exports:
Foodstuffs
Raw materials . .
Manufactured articles
Parcel post
Total
1
1920
Increase
or
decrease.
5,706
7,369
5,947
5,395
10,153
6,212
- 311
+2,784
+ 265
19,022
21,760
+2,738
528
765
2,990
493
1,089
2,775
7,594
548
+ 560
+2,010
+4,004
+ ' 56
4,776
12,006
+ 7,230
Based upon 1919 value units.
ITALY.
J u l y 1-20,
1920.
1,896,235
638,861
992,316
72,831
481,808
310,166
1,162,553
275,579
696,486
55,335
242,010
336,866
4,392,217
2,768,829
In a series of recent articles from an Italian
correspondent, the London Economist has published some illuminating information regarding
economic conditions in Italy since the Giolitti
government came into power. According to
this correspondent, the cause of the fall of the
former government was due to Nitti's efforts
to decrease the extraordinary budget by relieving the treasury of the bread subsidy which
will amount to 4,400 million lire in 1920-21.
960
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
The following table shows the trend of wholeTo do this involved an increase in the selling
price of wheat from 65 to 115 lire per metric sale prices, by groups of commodities:
quintal and the bread price from 85 centesimi
Group index numbers—Italy.
to 1.50 lire per kilogram. In order that the
burden of this increase in prices might not fall
Prof. Bachi. (1913=100.1
on the working classes, Nitti's plan provided
that all employers increase salaries and wages
Other
Minerals Other
Cereals
foodTextiles.
and
and
of workers 25 centesimi a day for each of the
goods.
meats.
stuffs.
metals.
worker's dependents. To relieve the treasury
further a bread tax was proposed for all people 1913
100
100
100
100
100
with an income greater than 12,000 lire per 1914
96
84
100
102
96
133
132
207
93
113
1915
annum. This meant that the bread subsidy 1916
197
380
184
156
135
266
596
215
171
326
continued, but that the burden was definitely 1917. . .
750
391
229
475
315
placed upon the employing class in the com- 1918
1919.
munity and, to a less extent, upon those of July
332
401
334
423
342
332
341
424
423
351
moderate or large income. The administrative August..
357
442
429
319
September
342
difficulties in the tax are apparent.
499
326
366
459
341
October
633
328
371
568
November
351
The Giolitti government has so far done December
658
338
373
584
405
nothing about the bread subsidy, but has made
1920.
very sweeping recommendations regarding new J a n u a r y . . .
396
777
363
671
418
840
365
399
February
857
443
taxes. How to meet the requirements of the March.
962
381
418
.
996
489
1,064
494
395
1,076
535
extraordinary budget for 1920-21, which April
441
840
499
525
1 088
May.
742
amounts to something over 13 billion lire, is June
507
445
917
534
the problem of the day. The ordinary budget July
provides for revenue of about 10.5 billion lire
and expenditures of 11.5 billion. The exJAPAN.
traordinary expenditures consist of the following:
The Bank of Japan wholesale price index
Million lire.
Past budget expenses to be liquidated
1,000 registers a 3.5 per cent decrease in prices beBread subsidy loss
4,000-6, 000 tween June and July, or a 34.5 per cent decrease
Public employees' cost of living subsidy
600-1, 000 since March, when prices were at their peak.
War expenses liquidation
2, 000
Compensation for war losses in Venetian provinces. 1, 500 Other business indexes show a similar or more
Losses on railways
500 exaggerated trend downward, as is shown by
Loss on maritime State navigation, coal, etc
1,000 the accompanying table of quotations for spot
silk, cotton-yarn futures, and shares of the
As was stated in the last number of the BUL- Tokyo Exchange Co. and the Kanegafuchi
LETIN, Giolitti has recommended very drastic Cotton Mill. Fluctations are due to speculachanges in taxation. The war-profits tax is to tive influences, but clearly the trend durmg the
be raised from 60 per cent to 100 per cent, past five months has been radically downward.
i. e., war profits are to be confiscated. Bearer
bonds must be registered. To quote the EconCotton
omist: "The last momentous bill obliges all
yarn;
Raw silk; Osaka
Shares of Shares of
possessors of securities to register them in their
YokoTokyo Kanegamarket
hama
Date of cable.
Stock
fuchi
name. The bill puts an end to bearer securispot, 6 months' Exchange Cotton
future;
100
kin.
Co.
Mill.
ties, which were until to-day almost the only
bale of 400
pounds.
form known to Italian investors. All securities, from the States' rentes and municipality
Yen.
Yen.
Yen.
Yen.
debentures to joint stock company shares and Mar. 16 1920.
3,450
614
400
470
Apr.2
3,380
611
396
456
debentures, will cease to be bearer securities Apr. 16
2,900
472
274
358
and will have to be registered in the name of Mayl
2,000
400
230
335
1,970
May
17
362
222
279
the possessors. The precedent most frequently June 1
1,500
392
211
267
1,400
15
267
160
197
quoted in favor of this far-reaching reform is the June
1,400
July 1
318
188
243
English one. The Government aims by means July 16
1,250
352
125
245
1,100
Aug. 2
330
122
247
of compulsory registration of all securities at Aug.
1,190
10
292
112
214
knowing exactly the capital and income of all
taxpayers." Taxes on motor cars have been
increased to such a point that the possession of
On August 2 the note circulation of the Bank
a car is prohibitive except to the very rich, and of Japan had advanced from 1,038 million yen
succession taxes in the case of large fortunes on June 30, 1919, to 1,202 million yen and
have been very much increased.
was over three times as great as in 1913. Other
FEDERAL RESERVE
SEPTEMBER,, 1920.
961
BULLETIN.
During July exports of merchandise from
basic indexes are presented in the following
table:
Japan were valued at 157 million yen, imports
at 154 million yen. This would seem to show
the likelihood of the trade balance turning
WholeCotton yarn Shares
Note
Kanesale
of
future
from the so-called " unfavorable" position of
R a w silk
circugaprice
Tokyo
(Osaka
spot, Yokolation
fuchi
in
Stock
the first six months of the year to a favorable
hama, 100 Exchange),
Cotton Tokyo (June
Exbale of 400
kin.
position.
Such was usually the case in prewar
30).
Mill.
1913=
change
pounds.
100).
Co.
years, as was pointed out in the last number of
the BULLETIN. The following table shows the
Million
Yen.
Yen.
Yen.
Yen.
position of the merchandise and bullion balH. 1,025.000 H . 158.800
1913
Yen.
L. 840.000 L. 129.050
ances from 1913 through the first half of 1920.
99.80
96
362
164.85
118.32
97
337
315.82
194.58
117
429
239.11
246.84
149
606
174. 54
244.07
197
787
310.55
343. 22
240
1,038
400.00 470.00
111. 50 2 214.00
1321
^239
31,202
Japanese foreign trade, 1913-1920.
According to figures of the Bank of Japan,
promotion of new business and expansion of
old has been made on an enormous scale during the first three months of the year. Capital
issues were offered to the public to the amount
of 4,164 million yen between January and
June, 1920. This exceeded the issues of the
same period in 1919 by 3,020 million yen.
Eighty-nine per cent of the issues were made
between January and April. This enormous
expansion of business is thought to have had
an important bearing upon the recent business
situation, increasing money stringency and the
importation of raw materials and equipment
goods from abroad.
ExImExports. Imports. Balance ports. ports.
Balance.
913:
First half
Second half..
1914:
First half
Second half..
1915:
First half
Second half..
1916:
First half
Second half..
1917:
First half
Second half..
1918:
First half
Second half..
1919:
First half....
Second half..
1920: First half...
Groups
Banking
Finance and warehouse
Insurance
Transportation
Mining
Electric enterprises
Manufacturings...
Marine products..
Agriculture and
forestry
Commerce, etc
Total
1917
1918
30,918 39,333
188,449
240,453
1,800
.,100
12,400 25,000
66,140 84,375
1,970 66,850
41,462 75,309
107,133 310:
'0,760
1 675 4,100
40,020
15,500
223,315
187,995
92,617
586,585
10,650
65,273 112,180 199,595
60,400
76,800
40,500
311,975 453,925 444,966
297,790 289,430 202,485
155,815 460,963 126,445
878,7701L, 209,997 L, 456,337
32,590
48,200
1,410 3,050
27,670 43,815
25,000
192,338
35,615
621,726
1915
1916
1919
642,620
178,370
611,600
'1920
569,054
139,370
937,208
292,578 658,692 1,562,469 2,676,79: 4,068,475 4,164,160
1
J a n u a r y - J u n e period
284,554
347,907
404,982+120,42816,944
324,450 - 23,457 10,149
20 -
16,924
9,148
312,070
279,032
382,734+ 70,66410,643
213,002 - 66,03019,007
1,478 7,629 -
9,165
11,378
300,914
407,~~~
288, 743 - 12,17125,817 3,3 - 22,437
243,707 -163,68618,749 2 0 , 9 1 6 + 2,167
469,566
657,902
380,441 - 89,125 3,585 29,980 + 26,395
375 987 -281,915 24,495 71,050+ 46,555
708,520
894,485
447,948 -260,572 65.448172,987 + 107,539
587,863 -306,622 88,034 219, 237 +131,203
896,923
1,065,177
839,882 - 57,041
828,262 -236,915
4
934
1,817 +
3,199 +
1,81*
2,265
827,
712
0
712 +
,049, 370 +221,950
1,271, 453 1 ,124,090 -147,363 5,054 326,765 +321,711
1,138, 4791 ,611, 884
" +473,405
Group index numbers—Australian
Commonwealth—Bureau
of Census and Statistics.
[July, 1914=100.]
zS
o
2
1
o
xi
7s
•3
1
J u l y , 1914..
1915
1916
1917
.1918
100
117
154
213
220
100
93
131
207
232
100
202
113
110
135
100
127
124
116
121
100
110
127
131
138
100
150
155
155
147
100
116
136
194
245
100
149
172
243
315
191 •
July
August
September.
October
November.
December..
186
182
182
186
184
186
226
229
225
243
254
259
168
190
200
236
238
224
141
135
138
141
142
142
148
150
149
152
151
156
148
145
152
154
132
132
243
249
259
271
278
281
277
277
263
272
267
266
1920.
January
February..
March
April
May
June
July
189
192
205
205
214
214
211
273
283
281
277
265
260
252
227
226
226
234
252
261
244
143
149
162
169
177
187
188
156
161
160
192
197
195
193
147
149
126
160
170
208
261
282
287
298
298
307
307
307
272
280
28o
297
297
283
Date.
Classified figures of capital issues offered to the public.
[Unit—1,000 yen.l
Bullion.
Commodities.
Building ]
1 March and July numbers.
2 Reserves of this corporation increased strikingly during the war
period, and its present financial strength is much greater than before
the war.
3
Aug. 2,1920.
[Unit—1,000 yen.]
[Minus sign indicates excess of exports. Plus sign indicates excess
of imports.]
Meat.
699.000
309.500
614.000
292.000
3,450.000
1,190.000
130.33
Dacco.
1920"
Mar. 1 6 . . . .
Aug. 10 . . .
371
Groceries;
1919
100
Dairy pro<
1918
108.14
lucts.
1917
143.29
Agricultu:
1916
149. 621
135. 450
88.700
113.991
130.500
98.650
114.152
196.350
122.950
146.521
465.000
168.950
252.645
424.900
288.000
Textiles, 1
1915
A.
H.
L.
A.
H.
L.
A.
H.
L.
A.
H.
L.
A.
H.
L.
A.
H.
L.
A.
Metals an<d coal.
A. 859.380
H . I , 030.000
L. 700.000
A. 883.790
H . 1,150.000
L. 735.000
A. 830.080
H . I , 350.000
L. 1,030.000
A. 1,170.630
H . 1,750.000
L. 1,125.000
A. 1,302.910
H . I , 620.000
L. 1,300.000
A. 1,477.813
H . 3,280.000
L. 1,300.000
A. 2,096.917
1914
1
962
FEDEKAL RESERVE BULLETIN,
Group index numbers—Sweden, Svensk Handelstidniny.
[1913=100.]
SEPTEMBER,
1920.
Group index numbers—Canadian Department of Labor—
Continued.
[1913 = 100.]
Date.
Date.
100
123
177
266
551
856
1913-14
19141
1915
1916
1917
1918
166
100
111
120
149
212
1919.
July
August
September
October
November
December
732
795
1920.
January
February
March
April
May
June
July
August
!
1
840
840
170
204
204
960
1,008
1,069
1,252
1,252
1,117
204
226
275
275
275
303
303
322
328
1913.
1914
1915
1916
1917. .
1918
1919.
July
August
September
October
November
December
1920.
January
February
March
April
.
May
June
July
Hides,
Impleleather, Metals. ments.
etc.
BuildFuel
ing ma- and
terials, lightlumber. ing.
Drugs
and
chemicals.
100
105
110
143
168
169
100
96
128
167
217
229
100
101
106
128
174
213
100
100
97
100
118
147
100
94
92
113
163
188
100
106
160
222
236
250
235
260
256
252
252
231
166
171
171
165
171
181
226
228
231
225
232
232
168
170
183
188
194
224
194
199
200
201
201
209
195
196
197
198
181
189
237
245
222
239
215
186
183
191
199
210
214
213
207
209
235
231
237
237
237
238
242
232
243
268
268
295
295
282
212
215
215
245
257
279
295
190
189
194
201
203
206
218
Group index numbers—United States, Bureau of Labor
Statistics.
Average for six months ending Dec. 31,1914.
[1913=100.]
Group index numbers—Canadian Department of Labor.1
[1913=100.]
Date.
1913
1914
1915
1916.
1917
1918
Ani- Dairy Fruits
Grains mals
and
and
vegeand prodfodder. meats.
ucts. tables.
Other
foods.
100
114
136
142
206
231
100
107
104
121
161
197
100
100
105
119
149
168
100
99
93
130
233
214
100
104
121
136
213
100
102
114
148
201
273
240
243
232
232
240
251
217
216
201
180
176
182
186
189
193
204
221
230
200
210
195
178
240
240
218
224
227
228
230
232
279
277
283
290
298
306
269
275
280
291
301
302
292
195
195
198
200
207
206
210
228
216
206
196
189
183
194
265
290
295
316
358
245
251
254
264
275
274
283
316
321
322
366
323
314
305
M O
295
i Unimportant groups omitted.
:
3
isa
1919.
July
August
September
October
November
December
1920.
January
February ...
March
April. ..
May
June.. . .
July
Date.
Textiles.
a>
1913
1914
1915
1916
1917
1918
100
100
100
88
94
142
208
181
SI
s
100
117
153
192
1919.
July
August
September...
October
November...
December
221
225
217
220
220
220
1920.
January
February
March
April
May
June
July
227
227
230
238
246
247
243
SEPTEMBER,,
1920.
963
FEDERAL RESERVE BULLETIN.
Group index numbers—Calcutta, India, Department of Statistics.
[End of July, 1914=100.]
Date.
End of July, 1914.
August, 1918
September, 1918..
August, 1919
September, 1919..
1920.
January
February
March
April
May
June
July
Date.
•a
100
118
118
127
114
128
131
139
100
225
217
218
201
215
233
235
100
317
314
224
214
100
83
75
193
156
100
226
215
222
219
248
244
249
253
233
211
209
160
116
100
356
364
351
357
365
364
364
100
240
217
179
215
100
328
331
225
199
100
240
217
179
215
End of July, 1914.
August, 1918
September, 1918..
August, 1919
September, 1919..
214
185
179
158
135
144
132
181
164
150
170
142
147
151
153
158
159
161
164
164
168
1920.
January
February
March
April
May
June
July
100
159
155
135
116
123
119
119
100
89
105
143
131
100
96
116
235
125
123
118
119
120
83
200
190
166
163
169
171
169
100
100
106
109
100
179
196
271
292
100
U19
1134
U79
U77
377
363
321
377
511
482
503
207
191
160
159
150
149
159
167
158
151
156
157
156
151
204
199
192
185
183
180
188
100
95
i Includes pulses.
WHOLESALE PRICES IN THE UNITED STATES.
C
O OO
In connection with the Board's project of Index numbers of wholesale prices in United States—Federal
Reserve Board.
constructing foreign indexes of wholesale
prices, an American index number has been
[Average prices 1913=100.]
made by a method similar to that to be used
in the case of the foreign countries. A deGoods Im- Ex- Con- Raw ProConproport- port- sumed. mate- ducers' sumed All.
Date.
scription of the composition and construction
ed.
duced. ed.
rials. goods. goods.
of this new American index number is contained in the BULLETIN for May, 1920. Certain
1913.
100
100
105
99
105
100
99
changes have been made in the number since January
February...
100
100
104
99
105
100
99
its first publication, due to the fac.t that more March
99
103
100
100
105
101
99
99
101
101
101
103
101
99
reliable quotations have been obtained for two April...
May
100
100
100
99
100
102
100
99
June...
100
100
99
100
100
101
101
100
commodities (lumber and fuel oil), but it is July
100
99
99
100
98
101
102
100
now published in its revised form.
101
99
101
.
100
August
101
100
101
101
100
102
101
101
September.. .
102
98
101
101
The organization of the commodities is in October . 101 98 103
100
102
100
96
101
98
102
98
99
99
100
95
101
part similar to that used by the Board in November..
93
99
97
97
98
98
91
99
recomputing the index numbers of the Bureau December...
1919.
of Labor Statistics. But additional informa- January
200
168
197
195
195
193
196
195
192
168
191
February
190
191
188
190
189
tion is also given regarding the movement of March
194
163
193
191
188
196
191
185
prices of goods produced here, imported, and April.
194
165
198
196
181
201
197
196
211
172
201
204
May
202
202
184
209
exported.
214
202
180
192
204
June
208
203
202
224
176
211
214
21 ] 217
211
200
During the present period of rapid change July
174
221
219
218
217
224
218
206
in prices, it is especially important to note the August
170
212
215
September.. .
212
211
216
211
203
174
226
October
211
213
214
212
.
215
207
differences in fluctuations and level shown by November.. . 222 179 242
217
220
219
219
213
225
229
225
226
223
different index numbers. For that reason in December... > 231 203 245
future numbers of the BULLETIN the differences
1920.
212
.
244
240
255
245
242
240
236
between the index number of the Bureau of January
216
February...
244
242
252
240
242
247
242
218
March
250
247
241
256
248
263
246
Labor Statistics and that of the Board will be April
242
265
264
263
263
263
257
274
commented upon. Charts showing the fluctu- May
262
264
264
266
246
263
261
274
258
June
261
226
256
258
256
265
258
ations in the Board's index numbers are to be July.
204
248
255
250
251
251
254
251
found on the opposite page.
964
FEDERAL RESERVE BULLETIN.
iflDEXNUMBERSOFWHOLESALEPRICES.
INTHE UNITED STATES-1919,1920.
—
300
iflDEXNUMBffiOFHmOLESALE PRICES
INTHE UMTED STATES-1919,1320.
&<m'Materials.
Gbnsumers'Good*.
SEPTEMBER, 1920,
/JU, Commodities. •
•
«.— Goods exported.
AVERAGE PRICE LEVEL OF 1913 = 100.
••
AVERAGE PRICE LEVEL 0ri9I3=
300
fOO.
300
280
280
280
280
260
260
260
260
240
240
240
240
220
220
220
220
m
200-
203\
200
180
180
'/SO
160
160
160
HO
140
140
140
120
120
!Z0
120
too
100
too
100
X
1919
..
1920
t
1919
1920
Index numbers of wholesale prices in the United States for principal classes of commodities.
[Bureau of Labor Statistics.]
[Average price for 1913=100.]
Raw materials.
Year and month.
July, 1914
July 1915
July 1916
Julv 1917
July, 1918
July 1919
January 1920
February 1920
March 1920
April, 1920 .
.
May 1920
June 1920
July, 1920
Farm
products.
102
111
114
232
240
261
291
278
288
304
314
301
287
Animal
products.
106
104
122
168
210
233
213
206
200
196
• 179
186
184
In order to give a more concrete illustration of actual
price movements, there are also presented in the following
table monthly actual and relative figures for certain commodities of a basic character, covering the period January,
Forest
products.
97
93
96
126
140
166
273
315
348
367
367
363
359
Mineral
products.
91
97
115
205
182
177
190
194
197
224
234
244
250
Total raw
materials.
99
102
113
187
198
214
239
240
247
260
260
260
257
All commodities
Producers' Consumers' (Bureau of
goods.
goods.
Labor Statistics index
number).
93
99
140
210
196
202
245
246
246
263
271
265
252
103
101
119
175
203
230
259
256
263
280
285
280
272
100
101
120
187
198
219
248
248
253
266
272
269
262
1920, to July, 1920, compared with like figures for July
of previous years. The actual average monthly prices
shown in the table have been abstracted from the records
of the United States Bureau of Labor Statistics.
965
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Average monthly wholesale prices of commodities.
[Average price for 1913=100.]
Corn No. 3,
Chicago.
Cotton, middling,
New Orleans.
Wheat, No. 1,
northern spring,
Minneapolis.
Wheat, No. 2,
red winter,
Chicago.
Year and month.
July, 1914
July, 1915...
July 1916
July, 1917...
July 1918
July, 1919...
January, 1920...
February, 1920
March, 1920... .
April, 1920..
May, 1920
June, 1920
July, 1920
Cattle, steers,
good to choice,
Chicago.
Hides, packers,
heavy native
steers, Chicago.
Average
price per
bushel.
Relative
price.
Average
price per
pound.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
bushel.
Relative
price.
Average
price per
100
pounds.
Relative
price.
Average
price per
pound.
$0.7044
.7806
.8041
2.0393
1.5900
1.9075
1.4750
1.4125
1.5515
1.6913
1.9825
1.8390
1.5388
114
127
131
331
258
310
240
229
252
275
322
299
250
$0.1331
.0869
.1303
.2525
.2945
.3377
.4035
.3944
.4060
.4144
.4038
.4030
.3950
105
68
103
199
232
266
318
311
320
326
318
317
311
$0.8971
1.3901
1.1703
2.5815
2.1700
2.6800
2.9313
2.6875
2.7550
3.0063
3.0750
2.9000
2.8313
103
159
134
296
248
307
336
308
315
344
352
332
324
$0.8210
1.1611
1.1597
2.3310
2.2470
2.2580
2.6338*
2.4900
2.5000
2.7725
2.9750
2.8950
2.8050
83
118
118
236
228
229
267
252
253
281
302
294
284
$9.2188
9.2125
9.9850
12.5600
17.6250
16.8688
15.9375
14.9688
14.4000
13.9063
12.6000
15.0313
15.3813
108
108
117
148
207
198
187
176
169
163
148
177
181
$0.1938
.2575
.2700
.3300
.3240
.4860
.4000
.4025
.3640
.3613
.3538
.3410
.2944
Hogs, light,
Chicago.
Wool, Ohio, J - |
grades, scoured.
Hemlock, New
York.
Yellow pine,
flooring
New York.
Relative
price.
105
140
147
179
176
264
218
219
198
196
192
185
160
Coal, anthracite, Coal, bituminous r
stove, New York,
run of mine,
tidewater.
Cincinnati.
Year and month.
Average
price per
100
pounds.
July,1914
July, 1915...
July, 1916
July, 1917...
July, 1918
July, 1919 . .
January, 1920. .
February, 1920
March, 1920
April, 1920 .
May, 1920
June, 1920
July, 1920
$8.7563
7.5750
9.7650
15 3750
18.0000
22 3875
15.1250
14.9813
15.5000
15 7125
14.7550
15 3500
15.8875
Relative
price.
104
90
116
182
213
265
179
177
183
186
175
182
188
Coal, Pocahontas, Norfolk.
Average
price per
pound.
$0.4444
.5571
.6857
1.2143
1.4365
1.2364
1.2364
1.2364
1.2364
1 2000
1.1636
1 0000
.9091
Relative
price.
94
118
146
258
305
263
263
263
263
255
247
212
193
Coke, Connellsville.
Average
price per
M feet.
Relative
price.
Average
price per
M feet.
Relative
price.
Average
price per
long ton.
Relative
price.
Average
price per
short
ton.
$24.5000
101
23.7500
28.0000
34.5000
41 0000
53.0000
57.0000
57.0000
57 0000
57.0000
57 0000
57.0000
98
116
142
169
219
235
235
235
235
235
235
$42.0000
38.50Q0
38.0000
57 0000
60.0000
73 0000
112.0000
139.0000
139.0000
160 0000
160.0000
160 0000
160.0000
94
86
85
128
135
164
251
312
312
359
359
359
359
$4.9726
4.9571
5.4495
5.8859
6.5968
8.1881
8.4291
8.4118
8.4109
8 4368
8.9964
9.3672
9.4580
98
98
108
116
130
162
167
166
166
167
178
185
187
$2.2000
2.2000
2.2000
5.0000
4.1000
4.0000
4.1000
4.1000
4.1000
5.5000
6.0000
6.0000
6.0000
Copper, ingot,
electrolytic,
New York.
Lead, pig.
desilverized,
New York.
Petroleum, crude,
Pennsylvania,
at wells.
Relative
price.
100
100
100
227
186
182
186
186
186
250
273
27a
273
Pig iron
basic.
Relative
price.
Year and month.
Average
price per
long ton.
July, 1914
July 1915
July, 1916
July, 1917
July,1918
July,1919.. . .
January, 1920
February, 1920
March, 1920
April, 1920.
May, 1920
June, 1920
. . .
July,1920
$3.0000
2 8500
3.0000
5.1400
4.6320
5.1400
4.6320
4.6320
4.6320
6.4800
6.4800
6.4800
6.4800
Rela- Average Relaprice per tive
tive
price. short ton. price.
100
95
100
171
154
171
154
154
154
216
216
216
216
$1.8750
1. 7500
2.6250
12.2500
6.0000
4.0950
6.0000
6.0000
6.0000
10.5000
12.0000
14.3000
14.3750
77
72
108
502
246
168
246
246
246
430
492
586
589
Average
price per
pound.
$0.1340
.1988
.2650
.3175
.2550
.2150
.1931
.1906
.1858
.1919
.1906
.1900
.1900
Relative
price.
85
126
168
202
162
137
123
121
118
122
121
121
121
Average
price per
pound.
$0.0390
.0575
.0685
.1138
.0802
.0561
.0872
.0881
.0923
.0896
.0856
.0848
.0860
Relative
price.
89
131
156
259
182
128
198
200
210
204
195
193
195
Average
price per
barrel.
Relative
price.
Average
price per
long ton.
$1.7500
1.3500
2. 6000
3.1000
4.0000
4.0000
. 5.0625
5.5125
6.1000
6.1000
6.1000
6.1000
6.1000
71
55
106
127
163
163
207
225
249
249
249
249
249
$13.0000
12.7400
18.0000
52.5000
32. 0000
25.7500
37. 7500
42.2500
41.6000
42.5000
43.2500
44.0000
45.7500
88
87
122
357
218
175
255
287
283
289
294
299
311
966
SEPTEMBER,, 1920.
FEDERAL RESERVE BULLETIN.
Average monthly wholesale prices of commodities—Continued.
Average price for 1913=100.]
Cotton yarns,
northern cones,
10/1.
Leather, sole,
hemlock No. 1.
Steel plates,
tank, Pittsburgh.
Steelbillets,
Bessemer,
Pittsburgh.
Worsted yarns,
2-32'scrossbred.
Steel rails,
open hearth,
Pittsburgh.
Year and month.
Average Rela- Average Rela- Average Relaprice per tive price per tive price per tive
pound. price. pound. price. long ton. price.
$0.2-150
.1600
.2525
.4500
.6412
.5912
.7271
.7465
.7549
.7784
.7672
.7299
.7009
July,1914
July,1915
July,1916, . . .
July,1917
July, 1918 . . .
July 1919
January 1920
February, 1920
March, 1920
April 1920
May, 1920
June, 1920
July, 1920
97
72
114
203
290
267
-329
337
341
352
347
330
317
Beef, carcass,
good native
steers, Chicago.
$0.3050
.3050
.3700
.5400
.4900
.5300
.5600
.5700
.5700
.5700
.5700
.5700
.5700
$19.0000
108 21.3800
131 41. 0000
191 100.0000
174 47.5000
188 38. 5000
199 48.0000
202 55.2500
202
60. 0000
202
60.0000
202
60.0000
202 60.0000
202 62.5000
108
Coffee, Rio, No. 7.
Year and month.
74
83
159
388
184
149
186
214
233
233
233
233
242
Flour, wheat,
standard patents
(1918, standard
war),
Minneapolis.
Average Rela- Average Relaprice per tive price per tive
pound. price. long ton. price.
$0.0113
.0120
.0345
.0900
.0325
.0265
.0274
.0350
.0365
.0375
.0375
.0355
.0338
$30,0000
30.0000
35.0000
40.0000
57.0000
47.0000
50.7500
54.5000
54.5000
247
253
54.5000
253
54.5000
240 54.5000
228 54.5000
76
100
81
233
608
220
179
185
236
100
117
133
190
157
169
182
Hams, smoked,
Chicago.
182
182
182
182
182
Illuminating oil,
150° fire test,
New York.
Average Relaprice per tive
pound. price.
$0.6500
.8500
1.1000
1.6000
2.1500
1.6000
2.2500
2.2500
2.2000
2.2000
2.0000
2.0000
1.7500
84
119
142
206
277
206
290
290
283
283
258
258
225
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.
July,1914
July 1915
July,1916
July 1917
July, 1918
July 1919
January, 1920
F e b r u a r y , 1920
M a r c h , 1920
A p r i l , 1920
May, 1920
June 1920
Julv 1920
. . . .
$0.1350
.1315
.1413
.1638
.2400
.2075
.2320
.2125
.2050
.2090
.1950
.2225
.2550
104
102
109
126
185
160
179
164
158
161
151
172
197
$0.0882
.0738
.0900
. 0950
.0855
.2303
.1628
.1478
.1500
.1514
.1559
.1498
.1306
79
66
81
85
77
207
146
133
135
136
140
135
117
$4.5938
7.0313
6.1000
12.7500
10.7020
12.1550
14.4438
13.5375
13.1650
14. 2813
15.0313
14.1600
13.6688
100
153
133
278
233
265
315
295
287
312
328
309
298
$0.1769
.1610
.1900
.2395
.3025
.3835
.2944
.3056
.3155
.3313
.3556
.3650
.3769
106
97
114
144
182
230
177
184
190
199
214
220
227
$0.1200
.1200
.1200
.1200
.1710
.2050
.2240
.2400
.2500
.2600
.2600
.2600
.2600
97
97
97
97
139
166
182
195
203
211
211
211
211
$0.0420
.0582
.0750
.0745
.0735
.0882
.1537
.1495
.1372
.1919
.2247
.2120
. 1910
98
136
176
174
172
207
360
350
321
449
526
497
447
DISCOUNT AND INTEREST RATES.
During the month under review increases in rates are found only in a
relatively small number of cases, while a somewhat lesser number of decreases are noted. These changes in rates are scattered, and on the whole
not pronounced, either for any particular centers or types of paper. In
many centers rates remain unchanged. Present rates continue higher in
almost all centers than rates during the same period of 1919.
In the following table are presented actual discount and interest rates
prevailing during the 30-day period ending August 15, 1920, 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.
Discount
and interest rates prevailing
in various centers during 30-day period ending Aug. 15,
Prime commercial paper
E istrict.
30 to 90
days.
No 1
No 2
No 5
No 6
No 7
No 8
No. 9
No 10
No 11
Birmingham
Jacksonville
New Orleans
Nashville
Detroit
St Louis
Louisville..
Memphis2
Little Rock
Minneapolis
Kansas City
Omaha
Denver
Dallas
El Paso
Houston
San Francisco...
Portland
Seattle..
Spokane
Salt Lake City..
Los Angeles
1
H
H. X
8
8
7
ft
8
8
7
6
7
6
7
ft
ft
8
8
8
8
8
7
7
7*
6"
X. G
ft
7
ft 6-7
6
ft
6
71 ft 7
6
6
6
ft
ft ft
6
7
8 ft
7
8 ft
7
8 ft
8 6* 7-8
8 6
7
7
7
7 7
7
7* ft* 7
6* ft" 6
8 7
7
ft
8* 7
ft
8 ft
ft
0
ft*
7* ft
8 fti
8 ft*
8 ft*
8 7
8 6
7
?*8
7
7*
8
7
7
7
7
8
7
G
7
ft 6-7
6
ft
6
ft
7
6
6
6
ft
ft
6
ft
7
ft
7
ft
7
61 7-8
7
7
7
7
7
ft
6
8 7
8
8
8* 7
ft
8 7
0 ft
7 7
7 ft
8 611
8 ft
8 ft
8 7
8 6
4 to 6
months.
30 to 90
day.
H.
8
8
X. G
7\ 8
8 8
H. X. G
8
g 8
8
8
8
8
8A
8
8
8
8
6i 61
8
8
8
71 6
8
7
81 ft 71
8 ft 7
g
8
8 8 8
ft
ft
8
71
7
8
8
71 8
8
71 8
8
8
8
8
8
8
7
71 8
8
7
8
7
8
8
8
7
8+ 8
8* 8
q 6}
61 8
7
7
7
8
7
8
8
71
8
8
8
8
8
8
7| 8
8
8
8
ft
8
8
7
8
7*
8
? Ji8
7
81 8
8 J
q
8
OO
No 12.
Boston
New York *.
Buffalo
Philadelphia
Cleveland
Pittsburgh
Cincinnati
Richmond
Baltimore
Atlanta
4 to 6
months.
Interbank
loans.
8
8
8
8
ft
8
8
8
7
8
81 8
8
H.
7
7
7
ft
7
6
7
ft
ft
8
8
7
8
8
7
7
ft
X.
6
ft
6
ft
6
6
6
6
6
6
6
ft
G
ft*
Un
indorsed.
H X. G
H. X. G H. I . a
6| 6f 6* 8 8
8
8 5|61_7 J 11 ft 6-7
7
ftl
4
ft
61 6J
51
61 6
6
6|
7
7
6
7
7
ft
8
q
6*
ft*
8
7 ft
8 7
6 6
7 6
8
ftl
ft
8
6
7
8
7
7 5
Indorsed.
6
6
6
ft
7
g
7
6
g
Cattl 3
loans
gi
6| 61
6| 6f
6
6
7
ft
7
ft
7
7
8
7
7
7
7 7
8 7
g
6|
7* 71 61
ftf4 8*
ft 61 gf ftl
7
7
7
6i 6
61 6f 61
61
7
7*
6i
61
7*
ft*
7
g gi
ft 6
ftl 7
7
6
6*
6
7 6 61-7
7
gi gi4
7 7
7
7* fti
7
8
8
8
8
8
8
8
6*
ft
ft
8
7"
8
8
7
8
8
ft
ft
7
7
5
Rates for demand paper secured by prime bankers' acceptances, high 6, low 6, customary 6.
7
7
6
8
8
7
7*
7
7
8
7
6*
7
7
7
8
7
3 to 6
3 months.
H
8ft
7 6
7
ft 3
6 " 10
8 g
8
7
6
6
6
7
7
ft
6
ft
ft ft
6
7
8
8 ft
7
8
8 ft
7
8
8 ft
8
8
7-8
8
7
7
7 gi
ft*
7i
8*
6
6
7
7
7
8
6
Demand.
oooo
No 3
No 4
Open ]market.
Customers'.
City.
Ordinary
loans to
custom
Secured by secureders
warehouse Libert by
receipts, bonds [
md
etc.
certifiesites
of inde btednes 3.
Collateral loans—stock exchange
or other current.
Bankers' acceptances.
60 to 90 days.
ft
months.
H. X G
X. G
7* 7 1 8 7* 8
ft' ft 7 ft
6
7 6
6
ft 6 101 6
6
7
7
8 6
6
6
6
6 6
6
7
7
7
7
ft ft
6
6
ft 6
6 6
6
7
ft 7
8 6
ft 7
8 6
7
7
ft 7
8 7
8 6* 7-8
6*7 - 8
6 7
8 6
7
7
ft* 7
7 6*
7
7
7
8
6* 7
ft 6
6 ft
6
8 7
8
8
8 7
g
8
8 ft
q 8
7l
gi
7
ft
8
8
8
6
8
8
8 5
?
7
8
7
8
7
7
8
8
T
8
8
8
8
8
0
8
6
7
ft
ft
8
6*
7'
7
8
8
7
7
8
8
8
8
8
7
ax.
7
8
7
8
7
8 7
9 7
8 6
61 8 6
8 10 8
gi 71
7
6*
7"
7
8
8
7
6*.
ftt
6
ft
8
6
2
G
X.
H
a
6
6 6
7
71
ft? g
7
s
8
6
6
8
8
7
7 7-8
6 7
7 7
ft
6
8
?* ?*
71
H
7
7
7
ft
7
6
61
g
ft
8
8
9
8
7
71
ft
8
s
ft
8
7
7
7
7
ft
7
7
71
7
7
C
'i
g"
ft* ft
ft
6
6
6
6
ft g
ft ft
ft 7
6 7
6 71
6 6-7
6 6
g
7
7 7
g 7
6 ft
8
7
71 7
g
8
73
gi
«4
8
X.
ft
ft
\i
2
8 ft
0 7
8 g
7
8 g£
g
9
g g
7
8
6
8
7
7
7
7
7
ft3
8
7
61
7
7
g
g
7
No report.
CO
968
FEDERAL RESERVE BULLETIN.
PHYSICAL VOLUME OF TRADE.
In continuation of tables in the July FEDERAL RESERVE
BULLETIN there are presented in the following table3 certain data relative to the physical volume of trade. The
January, 1919, issue contains a description of the methods
employed in the compilation of the data and the construction of the accompanying index numbers. Additional
material will be presented from time to time as reliable
figures are obtained.
In the textile industries a further decline n activity was
noted during the month of July. Wool consumption during that month was approximately one-fifth less than during June, and materially below the figure for July, 1919,
while the percentage of idle woolen machinery on the 1st
of August for the majority of classe3 of machinery showed
a further increase over the percentage idle on July 1.
Consumption of cotton showed a slight falling off during
July, although the amount was somewhat greater than during July, 1919, while the percentage of spindles active
during the month was somewhat greater than during both
June, 1920, and July, 1919. Imports of raw silk during
July were considerably less than during June, the July
figure being less than one-half that for July, 1919.
The production of bituminous coal during July showed
a further slight increase over June and was likewise greater
than for July, 1919, while the production of crude petroleum also showed a similar increase. Anthracite-coal production during July remained substantially unchanged
when compared both with June and with July, 1919. Pigiron production during July showed a further slight increase as compared with June, although steel-ingot production showed a considerable falling off. The unfilled
orders of the United States Steel Corporation, however,
showed a further slight increase during July, and at the
close of that month were almost double the figure for a
Live-stock
SEPTEMBER,
1920,
year ago. In comparing these figures relative to the iron
and steel industries for July of this year with July of last
year, it should be remembered that last year the industry
was just commencing to recover from the post armistice
depression.
Lumber receipts at Chicago showed a falling off a? compared with June, although they were substantially in
excess of the figure for July, 1919. While both production
and shipments oi lumber by western mills showed a falling
off for July as compared with June, production by southern
mills was well sustained and shipments were considerably
in excess of June, although for both western and southern
mills (except western pine production) the figures were
considerably below those for July, 1919. California shipments of citrus fruits 3howed a further seasonal falling off
and were somewhat less than during July, 1919. July
sugar receipts at North Atlantic ports, however, were
materially in excess of receipts for June, and almost 50
per cent greater than for July, 1919, while meltings were
somewhat greater for June, 1920, and raw stocks at the
close of July were over 60 per cent greater than at the
close of June. Receipts of live stock at the 15 western
markets showed a further decrease in the case of cattle
and calves and hogs, although a seasonal increase in the
case of sheep was noted. In all cases, however, ,he
figures were considerably less than for July, 1919, and
reflect the generally lighter movement which has been in
progress during the present year. Receipts of grain and
flour at the 17 interior centers during July showed a
further increase as compared with June, but a considerable
decrease as compared with July, 1919.
With the exception of April, 1920, railroad net ton
mileage during the present year has been considerably in
excess of 1919, though less than at the peak during the
late summer and early autumn. The onnage of vessels
cleared during July showed a further increase over June
and was considerably in excess of the figure for July, 1919.
movements.
[Bureau of Markets.]
Shipments.
Receipts.
Cattle and
calves, 60
markets.
Hogs, 60
markets.
Sheep, 60
markets.
Horses and Total, all
mules, 44
kinds.
markets.
Cattle and
calves, 54
markets.
Hogs, 54
markets.
Sheep, 54
markets.
Horses and
mules, 44
markets.
Total, all
kinds.
July, 1919....
Head.
2,008,238
Head.
2,999,636
Head.
2,178,124
Head.
52,247
Head.
7,238,245
Head.
708,552
Head.
964,273
Head.
999,683
Head.
47,140
Head.
2,719,64a
1920.
January
February
March
April
May
June
July
1,868,723
1,468,370
1,803,073
1,512,150
1,766,394
1,870,121
1,657,743
5,275,412
3,423,992
3,963,245
3,030,801
4,234,022
3,741,202
2,837,685
l,£6,051
1,387,111
1,255,490
1,441,072
1,421,009
1,592,450
2,000,758
138,541
108,056
82,584
48,036
40,901
33,205
37,231
8,842,727
6,387,529
7,104,392
6,062,059
7,462,326
7,236,978
6,533,417
752,605
591,691
570,323
593,362
771,865
789,982
721,328
1,665,274
1,287,169
1,399,485
1,119,205
1,374,902
1,295,973
1,095,470
669,458
572,634
483,550
724,718
769,718
768,172
1,015,612
138,145
110,827
87,896
47,998
40,021
34,545
38,715
3,225,482
2,562,321
2,541,254
2,485,283
2,956,506
2,888,6722,871,125
969
FEDEKAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Receipts and shipments of live stock at 15 western markets.
[Chicago, Kansas City, Oklahoma City, Omaha, St. Louis, St. Joseph, St. Paul, Sioux City, Cincinnati, Cleveland, Denver, Fort Worth,
Indianapolis, Louisville, Wichita.]
RECEIPTS.
[Monthly average, 1911-1913—100.]
Head.
July, 1919
Sheep.
Hogs.
Cattle and calves.
Head.
Relative.
Head.
Relative.
Relative.
Total, all kinds.
Relative.
Head.
Head.
Relative.
1,527,881
152
2,411,539
110
1,558,767
114
37,646
82
5,535,833
120
1,400,031
1,068,092
1,203,499
1,040,903
1,209,656
1,290,265
1,188,019
139
114
119
103
120
128
118
3,912,449
2,440,154
2,910,909
2,150,281
3,128,249
2,746,390
2,115,639
178
19
1,035,591
. 948,116
900,299
928,191
796,160
1,006,528
1,301,458
76
74
66
68
58
74
95
90,662
76,048
57,880
31,235
25,469
21,316
26,697
197
168
126
68
55
46
58
6,438,733
4,532,410
5,072,587
4,150,610
5,159,534
5,064,499
4,631,813
139
105
110
90
112
110
100
32,616
79
1,933,912
135
90,630
79,100
62,625
31,348
24,617
22,623
28,168
221
207
153
76
60
55
69
2,069,616
1,654,973
1,703,339
1,531,783
1,678,588
1,748,455
1,918,847
144
124
119
107
117
122
134
1920.
January
February
March
April .
May
June..
July. .
Horses and mules.
142
125
96
SHIPMENTS.
July 1919
1920.
January
February
Itfarch
April
May
June...
. . ..
July
515,071
127
691,283
143
694,942
548,841
427,608
418,310
414,967
515,062
528,273
508,199
135
113
103
102
127
130
125
1,026,763
814,253
923,526
712,087
822,907
797,946
737,923
212
180
191
147
170
165
152
403,382
334,012
298,878
373,381
316,002
399,613
644,557
80
71
59
74
63
79
128
Exports of certain meat products.
[Department of Commerce.}
[Monthly average, 1911-1913=100.]
Beef, canned.
Beef, pickled,and
other cured.
Relative.
Hams and shoulders, cured.
Bacon.
Relative.
Relative.
Pounds.
Relative.
Pounds.
814
8,680,524
700
3,320,564
124 117,679,193
703
1,081,643
163
735,132
119
847,397
128
1,606,737
243
5,976,493
902
6,787,622 1,025
5,217,838
788
22,872,223
13,010,793
6,036,166
17,687,306
4,304,038
12,526,669
5,506,812
1,844
1,124
487
1,426
347
1,010
444
1,670,500
1,631,457
2,290,835
2,241,460
3,056,449
2,563,702
1,973,004
63
65
86
84
114
96
74
463
486
448
145
301
363
188
Pounds.
July, 1919... 5,392,104
1920.
January
February...
Ttfarch
April
May
June
July
Beef, fresh.
Pounds.
77,501,002
75,891,195
75,002,410
24,356,349
50,412,388
60,730,935
31,562,761
Lard.
Pickled pork.
Relative.
Pounds.
Relative.
Pounds.
Relative.
47,452,834
318
68,163,734
155
2,392,515
54
13,905,923
24,217,706
31,088,859
15,640,236
17,896,764
21,277,089
8,385,089
93.
174
208
105
120
143
56
38,823,902
36,644,906
69,429,785
40,758,401
55,544,483
45,069,517
47,061,422
88
89
158
93
126
102
107
4,251,187
3,710,308
3,160,456
2,784,535
3,816,157
3,962,649
2,926,247
96
90
71
63
86
CO
66
Pounds.
Receipts of grain and flour at 17 interior centers.
fChicago, Cleveland, Detroit, Duluth, Indianapolis, Kansas City, Little Rock, Louisville, Memphis, Milwaukee, Minneapolis, Omaha, Peoria,
St. Louis, Spokane, Toledo, Wichita; receipts of flour not available for Cleveland, Detroit, Indianapolis, Louisville, Omaha, Spokane,
Toledo, and Wichita.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Wheat.
Corn.
Oats.
Rye.
Barley.
Total grain.
Total grain and
flour.i
Flour.
RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels.
July, 1919.. 49,612,115
18412,544,219
56 25,219,809
125 3,105,096
28111,155,491
156 101,636,730
131 1,572,420
1920.
January...
February..
March
April
May
June
July 2
93 24,139,094
72;26,051,855
67|24,306,196
57,11,326,509
7612,107,950
78 27,251,166
11120,824,268
108 20,925,941
104 4,378,610
109,3,263,086
9513,548,739
64 2,914,553
83 3,758,507
713,177,770
93 3,096,026
396 3,298,544
316 2,470,622
3212,928,440
263 2,245,881
340 2,690,076
287 2,721,367
280 2,661,181
46 77,816,813
37:70,477,141
4167,940,797
3144,699,772
38 55,790,985
38 68,430,996
37,75,131,916
100,2,298,692
97 f 2,059,421
871,617,544
57 888,423
72,1,913,075
88,2,113,979
96,2,044,235
25,074,624
18,115,324
18,007, 798
il5,260,236
20,510,063
21,020,640
29,816;261
124;20,575,654
108,19,149,624
50,12,952,593
54; 16,724,389
12114,260,053
9318,734,180
i Flour reduced to its equivalent in wheat on basis of 4£ bushels to barrel.
'Flour receipts for Memphis not included; June receipts 13,825 barrels.
80108,712,620
117
113
83
45
98
108
104
88,160,927
79,744,536
75,219,745
48,697,676
64,399,823
80,057,876
84,330,974
125
102
99
87
56
74
92
97
970
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
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.]
Corn.
Wheat.
Oats.
Total grain.
Barley.
Rye.
Flour.
Total grain and
flour.i
RelaRelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. tive. Bushels. tive.
July, 1919.... 12,421,962
1920.
January
17,514,087
February
14,114,215
March
11,027,336
April..
11,058,643
May...
20,720,121
June...
20,242,046
July...
19-196,561
8,102,440
11412,326,051
98 I!,977,640
7111,165,894
72 5,371,811
134 5,939,145
13110,088,237
124 9,100,527
1
5715,628,393
1031,546,885
87 15,822,099
9113,073,089
" 14,:
.4,243,957
79
38 8,691,440
!0,444,288
7112,805,056
6411,345,429
104 3,685,914 521 2,007,718
92 2,113,505 320 1,306,340
94,3,062,530 4331
'""".,574,887
57|8,811,500 1,245 1,651,509
135 6,977,479 9861 ,488,387
84 5,428,886 7671 ,905,225
75 4,476,238 632 2,092,672
219 9,132,509
234 46,832,189
95 2,589,681
76 58,485,754
5151 ,355,869 104 4,,140,314 122 69,987,282
36 42:1,584,789
100 56,791,118
92 3,156,962
3,
40 41,074,604
83 "{,960,175
2,
4,395,392
87 54,1
42 35!i, 584,903 721'., 702,132 50 43,:
3,244,497
38 55:., 569,420 112 2;
8,516,469
1,877,122
85 68,;
9167.7,362,535
49 so:1,469,450 102 3.,071,470
8,848,431
94 21,808,223
83 58',!
54 46',211,427
108
94
84
67
106
104
91
Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.
Receipts of grain and flour at 9 seaboard centers.
[Boston, New York, Philadelphia, Baltimore, New Orleans, San Francisco, Portland (Oreg.), Seattle, Tacoma; receipts of flour not availablefor
Seattle and Tacoma.]
[Compiled from reports of trade organizations at these cities.]
[Monthly average, 1911-1913=100.]
Corn.
Wheat.
Oats.
Rye.
Barley.
Total grain.
Flour.
Total grain and
flour.i
RelaRelaRelaRelaRelaRelaRelaBushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Bushels. tive. Barrels. Rela- Bushels. tive.
July, 1919.
5,806,227
46
901,842
25 6,959,186
1920.
January...
February..
March
April
May
June
July
5,711,009
4,898,690
6,486,745
5,441,434
10,621,723
13,374,721
18,710,633
45
42
51
43
84
106
149
1,491,759
1,244,393
1,203,649
1,317,555
767,332
1,878,284
3,305,542
2,663,274
2,331,246
3,646,727
1,546,590
2,382,271
3,194,897
3,499,101
1
1461,478,551 1,0419,723,852
56 2,!, 643,611 1, 8611.,297,839
53 3,5,212,668 2, 4231 ,315,291
1,119,986 2, 9 0 0 1L, 300,871
77 4,
33 3;!, 440,3502,421 685,054
50 5,i, 117,806 3,602 556,764
>, 506,053 4 , 5791
— ,191,767
>, 048,019 3, 553 2:1.098,083
586 24,869,658
1101,514,135
145 31,683,266
116-
7813,807,492
""3,002,288
8513,
6,757,978
'8 16,
2,430,983
4112,
34 19,445,896
72 26,145,722
126 32,661,378
611,561,1
611,102,606
74|1,752,860
55 843,916
86;l,301,211
1151,486,365
144'l,660,849
150 20,835, 111
11317,964,015
168 24,645,848
6,228,605
8116,:
15,301,346
125 25,
;2, 834,365
159 40,135,198
76*
70
90
5ft
92
120
146>
Flour reduced to its equivalent in wheat on basis of 4J bushels to barrel.
Stocks of grain at 8 seaboard centers at close of month.
[Boston, New York, Philadelphia, Baltimore, New Orleans, Newport News, Galveston, San Francisco.]
[Compiled from reports of trade organizations at these cities.]
[Bushels.]
Wheat.
July,1919
January
February
March
April
May
June
July
Oats.
Rve.
Barley.
Totai gram
5,557,644
265,196
3,760,063
867,491
5,528,176
15,978,57a
485,491
634,682
280,682
704,155
781,927
492,819
923,745
711,501
948,239
851,287
967,475
437,521
459,568
744,167
2,398,639
1,571,209
1,351,457
389,958
819,790
901,756
1,323,940
2,397,156
2,671,743
2,389,321
1,944,350
1,889,965
2,035,334
1,275,554
2,587,543
2,340,787
1,891,862
?,034,983
1,071,920
1,193,082
3,187,611
16,580,330
14,166,660'
12,764,609
13,040,921
15,001,125
13,082,559*
18,455,017
1920.
NOTE.—Figures for San Francisco include also stocks at Port Costa and Stockton.
Corn.
971
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Cotton.
[New Orleans Cotton Exchange.]
[Crop years 1911-1913=100.]
Sight receipts.
Bales.
Relative.
Relative.
Bales.
at ports and
American spinners' Stocks
interior towns at
takings.
close of month.
Overland movement.
Port receipts.
Relative.
Bales.
Relative.
Bales.
Relative.
Bales.
1919-20.
August
September
October
November.. •
December
January
February
March
April
May
26
28
112
128
116
107
85
68
54
32
238,
260,
1,029,
1,178,
1,069,
982,
725,
621,
499!
25
47
142
189
171
122
86
60
45
25
313,
584,
1,779,
2,369,
2,147,
1,526,
1,003,
757,
559,
316,
49,630
26,138
110,202
245,237
242,940
205,233
138,084
108,573
48,565
57,661
47
25
105
233
231
195
141
103
46
55
302,238
300,001
621,784
1,155,324
1,214,337
793,453
374,093
270,269
276,805
214,678
67
66
137
254
267
175
120
127
199
222
235
210213
193
182
162
1,412,048
1,501,805
2,340,881
2,616,383
2,765,040
2,470,496
2,510,482
2,276,737
2,148,038
1,913,407
California shipments of citrus and deciduous fruits.
[1911-1913=100.]
Total,
deciduous
fruits.
Total citrus fruits.
Lemons.
Oranges.
Carloads.
Relative.
Carloads.
Relative.
Carloads.
Relative.
2,568
105
1,038
256
3,606
127
4,199
2,457
2,683
4,715
3,720
5,048
3,294
2,822
100
118
193
152
206
132
115
630
852
651
508
1,353
1,576
664
156
225
161
125
334
389
164
3,087
3,535
5,366
4,228
6,401
4,870
3,486
108
133
188
148
225
171
122
123
139
155
22
24
1,263
3,179
July 1919
Carloads.
1920.
January
February
March
April
May
June
July
Sugar.
[Data for ports of New York, Boston, Philadelphia.]
[Weekly Statistical Sugar Trade Journal.]
[Tons of 2,240 pounds.
Relative.
Tons-.
1919.
Raw stocks
at close of
month.
Meltings.
Receipts.
Relative.
Tons.
Monthly average 1911-1913=100.]
Receipts
Relative.
Tons.
July
264,782
144
292,000
159
57,975
34
1920.
January
February
208,554
316,667
113
184
181,000
269,000
99
157
37,986
85,653
22
50
Relative.
Tons.
1920.
March
April
Mav
June
July
182
169
138
164
210
335,532
310,580
254,616
301,318
386,328
Raw stocks
at close of
month.
Meltings.
Tons.
333,000
307,000
286,000
319,000
325,000
Relative.
Relative.
Tons.
182
167
156
174
177
88,185
91,765
60,381
50,666
82,279
51
53
35
29
48
Naval stores.
[Data for Savannah, Jacksonville, and Pensacola.
[In barrels.]
[Compiled from reports of trade organizations at these cities.]
Spirits of turpentine.
Rosin.
Spirits of turpentine.
Receipts.
Stocks at
close of
month.
Receipts.
Stocks at
close of
month.
23,598
30,656
76,561
235,707
8,300
3,762
24,910
17,900
47,874
29,303
165,927
140,559
Receipts.
1920.
January
February
Receipts.
Stocks at
close of
month.
1920.
1919.
July
Stocks at
close of
month.
Rosin.
March
April
May
June
July
1,876
7,644
23,473
33,522
39,158
4,819
3,996
6,174
19,654
30,906
14,660
27,029
68,163
94,904
117,088
103,443
98,517
78,113
108,656
135,979
972
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Lumber.
[From reports of manufacturers' associations.]
[M feet.]
Southern pine.
Number of Producmills. tion.
Douglas fir.
Western pine.
Ship- Numof Producments. ber
mills. tion.
Num- Producber of
mills. tion.
Ship-
1919.
July
206
401,939
466,786
1920.
January
February..
March
April
May
June
July
202 386,481
203 383,239
205 436,944
205 438,056
205 430,271
204 385,293
207 385,842
406,706
369,047
424,775
359,461
347,404
287,487
331,273
48 148,533
Eastern white pine.
Ship- Numof Producments. ber
mills. tion.
114 268,634 301,050
140,680
144,180
85,583 147,180
130,425 156,211
167,165 133,114
183,621 132,181
197,461 125,770
177,262 103,500
128
124
123
126
124
127
127
327,568
332,511
342,948
359,651
424,687
343,801
242,612
344,568
295,934
329,012
274,597
383,346
271,815
225,666
North Carolina pine.
Ship- Numof Producments. ber
mills. tion.
27,382
22,470
38,007
32,551
43,771
46,222
12,731
25,771
37,459
63,614
59,687
61,620
61,757
26,323
41,557
49,668
35
Shipments.
22,326
34,191
24,678
15,534
29,633
13,659
15,992
14,259
20,756
26,283
15,202
29,896
10,613
18,657
10,481
15,217
Receipts and shipments of lumber at Chicago.
[Chicago Board of Trade.]
[Monthly average, 1991-1913=100.]
Shipments.
Receipts.
1919.
July
Janu&rv
1920.
M feet.
Relative.
200,148
94
208 145
235,423
98
119
M feet. Relative.
90,134.
71,233
81,561
Shipments.
Receipts.
118
93
114
March
April
May . .
June
July
M feet.
Relative.
M feet.
284,146
124,725
187,931
234 562
222,619
134
59
122,401
51 495
89,259
90 503
82,896
89
111
105
Relative.
160
67
116
118
108
Coal and coke.
[U. S. Geological Survey.]
[Monthly average, 1911-1913=100.]
Bituminous coal, estimated monthly production.
Short tons.
1919.
July
1920.
January
February
March
April
May
June
July
Relative.
Anthracite coal, estimated monthly production.
Short tons.
Relative.
Beehive coke, estimated
monthly production.
Short tons.
Relative.
42,698,000
115
7,803,000
105
1,503,367
57
48,689,000
40,127,000
46,792,000
37,966,000
39,059,000
44,462,500
45,526,500
131
116
126
102
105
120
123
7,687,000
6.367,000
7,240,000
6,454,000
7,631,000
7,754,000
7,785,000
104
86
98
87
103
105
105
1,982,000
1,731,000
2,025,000
1,602,167
1,689,500
1,710,333
1,693,000
76
71
77
61
65
65
65
Crude petroleum.
[U. S. Geological Survey.]
[Barrels of 42 gallons each.]
Produced.
Produced.
Barrels.
July, 1919
January
February
March
1920.
Stocks at end
of m o n t h
Relative. (barrels).
33,894,000
177
140,093,000
33,980,000
33,212,000
36,461,000
177
186
190
127,164,000
126,339,000
125,597,000
Barrels.
April
May
June
July
Stocks at end
of month
Relative, (barrels).
1920,
36,201,000
36,931,000
37,295,000
38,419,000
193
195
200
124,991,000
124,689,000
126,763,000
128,165,000
SEPTEMBER, 1920.
973
FEDERAL RESERVE BULLETIN.
Total output of oil refineries in United States.
[Bureau of Mines.]
Crude oil run
(barrels).
June, 1919
Gasoline
(gallons).
Kerosene
(gallons).
Gas and fuel
(gallons).
28,920,764
338,336,985
178,974,224
632,205,805
64,636,153
30,815,160
29,208,723
33,592,004
32,852,040
34,578,282
34,906,078
336,719,157
322,588,697
367,137,678
355,597,451
381,079,291
415,158,911
195,956,392
194,523,334
191,110,175
184,469,017
180,877,089
173,581,000
617,555,156
589,684,857
686,945,963
643,088,785
707,198,355
689,878,061
75,878,635
74,243,073
81,818,973
85,568,064
89,252,410
94,964,221
Lubricating
(gallons).
1920.
January
February
March
April
May
June
•
STOCKS A T CLOSE O F M O N T H .
June 31,1919
16,775,723
593,896,610
252,542,434
811,790,637
175,384,775
13,200,727
13,500,599
14,346,458
15,145,691
15,331,375
16,172,280
515,934,364
562,996,489
626,393,046
643,552,644
577,671,795
504,055,601
327,548,646
330,120,942
334,617,117
376,358,123
419,077,605
421,343,353
652,080,901
590,322,125
580,182,858
590,687,009
618,939,135
641,968,363
141,690,177
132,759,244
130,630,597
140,355,972
135,882,485
133,212,551
1920.
Jan. 31
Feb. 20
Mar. 31
Apr.30
May 31
June 30
:
Iron and steel.
[Great Lakes iron-ore movements, Marine Review; pig-iron production, Iron Age; steel-ingot production, American Iron and Steel Institute.]
[Monthly average, 1911-1913=100: iron ore, monthly average, May-November, 1911-1913=100.]
Iron-ore shipments
from the upper
Lakes.
Steel-ingot production.
Pig-iron production.
Unfilled orders U. S.
Steel Corporation
at close of month.
Gross tons. Relative Gross tons. Relative, Gross tons. Relative. Gross tons. Relative
July, 1919..
9,173,429
2,428,541
105
2,508,176
104
5,578,661
106
230,854
6,976,085
9,233,566
9,638,606
3,015,181
2,978,879
3,375,907
2,739,797
2,985,682
3,043,540
3,067,043
130
138
146
118
129
131
132
2,968,102
2,865,124
3,299,049
2,638,305
2,883,164
2,980,690
2,802,818
123 9,285,441
127 9,502,081
137 9,892,075
109 10,359,747
119 10,940,466
123 10,978,817
116 11,118,468
176
180
188
197
208
208
211
1920.
January..
February.
March....
April
May,
June
July
115
136
159
Imports of pig tin.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Pounds.
Relative
113,120
July, 19W
1920.
January
February
97
164
8,772,953
13,925,843
Pounds.
March
April.
May..
June..
July..
11,980,019
10,345,130
9,102,341
11,232,325
17,584,167
Relative.
132
114
100
124
193
Raw stocks of hides and skins.
[Bureau of Markets; July, 1920, on, Bureau of the Census.]
[In pieces.]
Cattle
hides.
July 31,1910
Calfskins.
Kipskins.
4,966,081
2,389,368
554,516
773,360
559,337
558,300
072,895
831,341
212,946
1,920,184
1,859,697
1,930,218
2,281,370
2,720,610
3,107,393
1920.
Jan. 31,
Feb. 29
Mar. 31
Apr.30
May 31
June 30
NOTB.—Figures for July 31 are provisional.
9149°—20
6
Sheep and
lamb.
Goat.
Kid.
Cabretta.
15,589,944
1,964,828
2,767,694
6,815,160
1,036,372 13,474,529
1,141,620 16,481,328
966,850 15,968,660
834,711 14,666,590
922,782 14,120,171
915,499 14,562,713
927,436
665,524
468,188
156,871
791,150
60,999
1,893,614
2,197,683
2,047,519
1,947,499
2,253,785
2,070,471
8,902,067
9,460,914
9,227,252
8,911,681
8,978,852
10,993,228
974
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
Textiles.
[Silk, Department of Commerce; cotton and idle wool machinery, Bureau of the Census; wool consumption, Bureau of Markets.]
[Cotton, monthly average crop, years 1912-1914 = 100; silk, monthly average, 1911-1913=100.]
Percentage of idle woolen machinery on first of month
to total reported.
Cotton consumption.
Bales.
Imports of raw silk.
Cotton
spindles
active
during
month.
Wool consumption
(pounds).
Relative.
Looms.
Spinning spindles.
Wider Under Sets of Combs.
than 50- 50-inch cards.
Woolen. Worsted.
inch reed reed
space.
space.
Pounds.
Relative.
July, 1919
510,328
113
34,171,690
54,973,093
22.0
26.0
9.7
7.6
8.9
13.5
5,202,407
254
1920.
January
February
March
April
Mav
June
July
August
591,725
516,594
575,704
567,839
541,080
555,521
525,405
132
123
128
126
120
124
117
34,739,071
34,668,643
34,667,747
34,346,737
34,066,236
34,503,754
34,666,842
63,059,862
55,247,652
58,344,602
57,887,832
50,649,381
40,679,920
32,372,064
14.5
12.2
14.9
13.1
15.2
26.8
42.5
49.5
18.5
17.6
19.8
16.9
18.2
22.4
32.3
29.9
8.8
7.6
9.8
9.6
10.6
21.1
38.0
39.6
7.2
6.9
7.0
7.1
6.7
15.9
35.0
33.4
9.1
7.1
10.3
9.5
11.5
23.1
42.0
45.5
10.2
7.9
11.7
7.0
7.0
14.2
32.7
37.6
4,855,989
3,696,121
2,491,651
2,227,857
2,505,798
3,221,177
2,581,920
237
194
122
109
122
157
126
Production of wood pulp and paper.
[Federal Trade Commission.]
[Net tons.]
July, 1919..
1920.
January
February..
March
Wood
pulp.
Newsprint.
Book.
Paper
board.
260,685
113,929
75,613
169,593 63,769 30,036
302,541
266,191
327,143
Wrapping.
Wood
pulp.
Fine.
129,663 96,419 211,934 70,109 32,886
114,235 85,532 176,855 61,574 29,202
127,847 95,851 207,863 68,403 33,671
Newsprint.
Book.
Paper
board.
Wrapping.
Fine.
1920.
April
May
June
July
350,194 128,269
363,815 129,230
337,115 130,380
312,334 129,853
95,251 199,395 75,347
92,856 213,475 70,511
94,957 215,131 72,987
95,526 218,771 73,487
33,493
31,575
34,121
34,078
Sale of revenue stamps for manufactures of tobacco in the United StaUs {excluding Porto Rico and Philippine Islands).
[Commissioner of Internal Revenue.]
Cigars.
Cigarettes.
Large.
Small.
Small.
Manufactured
tobacco.
June, 1919
Number.
576,976,572
Number.
48,855,070
Number.
3,140,393,217
Pounds.
31,312,150
1920.
January
February
663,634,243
593,832,200
58,837,900
43,358,500
4,528,760,833
3,536,117,847
33,608,313
31,531,460
Cigars.
March
April
May
1920.
Cigarettes.
Large.
Small.
Small.
Number.
753,239,958
663,577,579
676,227,828
Number.
55,052,100
56,548,853
59,943,280
Number.
4,373,778,917
3,756,989,397
3,953,345,380
Manufactured
tobacco.
Pounds.
38,422,481
34,327,970
34,875,839
Output of locomotives and cars.
[Locomotives, United States Railroad Administration; February on, reports from individual producers; cars, Railway Car Manufacturer's
Association.]
July, 1919
1920.
T*V"hrn&rv
Locomotives.
Output of cars.
Locomotives.
Domestic
shipped.
Foreign
completed.
Domestic.
Foreign.
Total.
Number.
121
Number. Number.
73
2,777
Number.
6,936
Number.
9,713
1,914
1,066
6,564
5,026
48
22
4,650
3,960
March
April
May
June
July
1920.
Output of cars.
Domestic
shipped.
Foreign
completed.
Domestic.
Foreign.
Number.
Number.
Number.
3,053
2,313
2,792
2,780
2,731
Number. Number.
2,040
5,093
1,934
4,247
1,402
4,194
731
3,511
434
3,165
122
54
Total.
SEPTEMBER,
975
FEDERAL RESERVE BULLETIN.
1920.
Vessels built in United States, including those for foreign nations,
and officially numbered by the Bureau of
Navigation.
[Monthly average, 1911-1913=100.]
Gross
Number. tonnage. Relative.
Gross Relative.
Number. tonnage.
245
July, 1919.
397,628
1,645
1920.
January...
February.
March
115
140
170
253,680
267,231
279,709
1,050
1,185
1,157
1920.
April.
May..
June..
July..
164
184
198
173
251,442
185,145
267,076
217,239
1,040
776
1,105
Tonnage of vessels cleared in the foreign trade.
[Department of Commerce.]
[Monthly average, 1911-1913=100.]
Net tonnage.
Net tonnage.
Percentage Relative.
Rela- Amerto
tive. can
total.
American
Foreign.
Total.
July, 1919.
2,362,571
2,920,247
5,282,818
136
44.7
177
1920.
January...
February..
March
1,933,385
1,702,407
1,836,716
1,949,798
1,628,212
2,040,538
3,883,183
3,330,619
3,877,254
100
92
100
49.8
51.1
47.4
197
202
187
American. Foreign.
1920.
April.
May..
June.
July..
Net ton-miles, revenue and
1,960,634
2,436,247
3,141,913
3,616,052
2,504,038
2,729,790
3,199,274
3,302,538
Total.
4,464,672
5,166,037
6,341,187
6,918,590
Percentage
Relative.
Rela- Amerto
tive. can
total.
115
133
163
178
222
209
200
189
56.1
52.8
50.5
47.7
nonrevenue.
[United States Railroad Administration; March, 1920 on, Interstate Commerce Commission.]
June, 1919 . . .
31 953,366 000
1920.
January
February
34 769 722 000
32,758,789,000
1920
March
April
Mav
June
37,990,993,000
28,490,595,000
37 884 967,000
38,179,565
Commerce of canals at Sault Ste.
Marie.
[Monthly average, May-November, 1911-1913=100.]
EASTBOUND.
*
Grain other than
wheat.
Bushels.
July, 1919
Relative.
Flour.
Wheat.
Bushels.
Relative.
Barrels.
Total.
Iron ore.
Relative.
Short tons.
Relative.
Short tons.
Relative.
7,100,008
80
2,391,840
12
915,420
79
8,912,609
150
9,343,396
133
6,008,000
11,904,942
3,076,986
3,133,419
134"
35
35
4,274,611
13,497,995
5,976,125
7,838,470
70
31
41
658,910
1,082,521
1,171,250
57
93
101
162,630
6,683,820
8,707,350
9,235,086
113
146
156
454,726
7,483,836
9,153,884
9,749,701
167
1920.
April
May
June
July.
131
139
WESTBOUND.
Hard coal.
Short tons.
344,462
July, 1919..
April..
May..
June..
July..
Soft coal.
Relative.
111
Short tons.
2,037,265
Total.
Relative.
106
Short tons.
2,572,756
Total freight.
Relative.
103
Short tons.
Relative.
11,916,152
125
537,209
8,421,210
10,647,819
11,577,679
112
122
1920.
10,000
202,000
271,020
300,150
50,831
531,375
966,382
1,294,162
82,483
937,374
1,493,935
1,827,978
976
FEDERAL RESERVE' BULLETIN.
SEPTEMBER,
1920.
GOLD SETTLEMENT FUND.
Fiscal operations of the United States
Treasury during the month of June, including
the receipt of 744 millions of income and excessprofits taxes, the payment of about 154 millions
of interest on United States securities, and the
issue and redemption of Treasury certificates
of indebtedness aggregating 419 millions and
728 millions, respectively, also the redemption
of 201 millions of certificates of indebtedness
on July 1, arc reflected in the heavy volume of
clearings and transfers effected through the
gold settlement fund during the three weeks
ending July 1, 1920. A substantial increase in
the volume of rediscount transactions effected
between the Federal Reserve Banks during the
current three-month period accounts for the
increase from $1,472,168,698 to $1,688,008,156
in the volume of interbank transfers effected
through the fund. Total clearings during the
period, $21,035,992,496, show a slight decline
trom the record total of $21,756,273,548 for the
preceding three months. The issue of 201
millions and redemption of 84 millions of
Treasury certificates about July 15 and the
issue of 157 millions of certificates on August 16
account largely for the heavy volume of transactions through the gold settlement fund for
the weeks ending July 22 and August 19.
Operations of the New York bank through
the fund resulted in a net gain through settlements of $44,241,404 and a net loss through
transfers of $142,006,588, thus indicating a net
movement of funds away from New York of
$97,765,184. The other three eastern banks,*
as well as Chicago and San Francisco, show net
increases in their gold holdings through settlements and transfers, while all other Federal
Reserve Banks show net losses.
Net deposits of gold in the banks' fund aggregating $132,067,760 were more than offset by
net transfers of $170,833,500 to the agents'
fund, thus resulting in a decrease in the banks'
aggregate balances in the fund of $38,765,740.
Balances in the agents7 fund show a net
increase for the three-month period of $65,333,500 as the result of net transfers from the
banks' fund aggregating $170,833,500 and net
withdrawals of gold amounting to $105,500,000.
On August 19, 1920, the aggregate balances in
the two funds stood at $1,158,960,461, or
$26,567,760 more than on May 20, 1920.
Below are given figures showing operations
of the two funds for the period from May 21 to
August 19, 1920, inclusive:
Amounts of clearings and transfers through the gold settlement fund, by Federal Reserve Banks, from May 21, 1920,
to Aug. 19, 1920, both inclusive.
Total clearings.
Transfers.
Settlements of—
May 21-27
May 2*-June 3
June 4-10
June 11-17
June 18-24
June 25-July 1
July 2-8
July 9-15
July 16-22
July 23-29
July 30-Aug. 5
Aug. 6-12
Aug. 13-19
$1,647,566,920.77
1,388,728,154.07
1,597,291,678.59
1,728,943,300.19
1,784,299,225.60
1,706,101,790.77
1,413,372,297.71
1,668,737,960.88
1,791,987,495.31
1,593,253,091.75
1,480,494,498.89
1,518,092,648.84
1,717,123,432.94
$136,578,276.79
137,525,015.21
130,382,406.84
138,293,153.79
136,070,189.64
151,148,083.76
150,390,045.41
84,398,683.58
114,827,124.35
97,715,285.02
130,908,606.48
121,446,710.24
158,324,575.45
Total
Previously reported lor 1920...
Total since January 1, 1920
Total for 1919
Total for 1918
Total for 1917
21,035,992,496.31
33,033,509,607.48
54,069,502,103.79
66,053,394,214.47
45,439,487,000.00
24,319,200,000.00
1,688,008,156.56
2,438,654,091.14
4,126,662,247.70
7,930,857,773.95
4,812,105,000.00
2,835,504,000.00
Total
Total
Total
Total
Total
Total
Clearings and Transfers.
for 1920 to date
for 1919
for 1918
for 1917
for 1916
for 1915
Total clearings and transfers" from May 20,
1915, t o A u g . 20, 1920
$58,196,164,351.49
73,984,251,988.42
50,251,592,000.00
27,154,704,000.00
5,533,966,000.00
1,052,649,000.00
~~
216,173,327,339.91
Changes in ownership of gold.
Total to May 21,1920.
Federal Reserve Bank.
Decrease.
Boston
New York
Philadelphia
Cleveland
Kichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Increase.
From May 21, 1920, to Aug. 19, 1920, inclusive.
Balance to
credit May
20, 1920, plus
net deposits
of gold since
that date.
Balance.
Aug. 19,1920.
Decrease.
Increase.
Total changes from May 21,
1915, to Aug. 20, 1920.
Decrease.
Increase.
$43,514,262.14 $4,177, 317. 71 $28,564, 594.62i
$24,387,276.91
$67,901,539.05
133,114, 537.32 35,
349. 353.45$97,765,183. 87
$903,205,055.67
40,"428"679."88 6,055! 786.88! 46,462: 549.59..
40,406,762. 71
8357312." 59
972! 959.32
178,715,372.67 27,439! 112.88
38,533,846. 44
249,219.11
18,825,199.01 25,674! 795.13
798, 108.05| 6,876,687.08
948,511.93
56,226,909.57 21,161, 414.50
6oo; 948.57) 16,560,465.93
666,443.64
11,218,927.95 56,751, 175.08
232; 325.52'...
24,481,150.44
700,078.39
66,134,700.62 9,684, 883.01
574,511.71
124 694.101 1,560,188.91
2,601,455.44
071.94 8,530,702.74
14,521, 774.68
11,132,158.18
991; 029.93
82,611.87
29,243,270.38 25,760, 641. 80
160,658.51
678, 786.34 13,259,258.02
37,276,510.44 18,369, 044.36
017,252.42
109; 180.04
326,457,494.58 24,065, 118.12
16,826,061.92
283,556.50
891,
808,041,327.24 808,041,327.24 366,775,601. 47 366,775,601. 47 144,635,098. 42144,635,098. 42 914,337,213.84 914,337,213.84
$805,439,871.80
SEPTEMBER,
1920.
977
FEDERAL RESERVE BULLETIN.
Combined statement from May 21, 1920, to Aug. 19, 1920, inclusive.
GOLD SETTLEMENT FUND/
Federal Reserve Bank of—
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City...
Dallas
San Francisco.
Total
Balance last
statement,
May 20,1920.
Gold
withdrawals.
$27,647,867.71
128,023,780.62
31,293,211.88
47,048,824.46
14,664,487.85
6,449,879.50
58,414,175.""
9,388,893.01
8,292,274,68
26,679,066.80
7,619,011.86
40,019,867.57
$970,550.00
13,436,143.30
2,237,425.00
18,214,276.58
1,731,807.72
531,115.00
405,541,341.02
99,250,637.05
Aggregate
withdrawals
and transfers
to agent's
fund.
Gold
deposits.
5,004,010.00
350,000. 00
1,833,462.50
6,335,947.50
48,605,899.45
$7,500,000.00 $40,970,550.00 $17,500,000.00
18,526,900.00 13,436,143.30 18,526,900.00
25,500,000. 00 52,237,425.00 27,000,000.00
3,604,565.00
3,604,565.00 23,214,276.58
25,742,115.00 14,731,807.72 25,742,115. 00
31,842,650.00 17,731,115.00 32,442,650.00
8,337,000.00
8,337,000.00 10,000.000,00
10,500,000.00 11,104,010.00 11,400,000.00
7,329,500.00
5,929,500.00
1,100,000.00
7,915,037.50
7,915,037.50
8,833,462.50
17,585,980.00
6,835,947.50 17,585,980.00
68,334,650.00 116,105,899.45 100,151,150.00
231,318,397.50
316,300,637.05
Settlements from May 21, 1920, to Aug. 19, 1920, both inclusive.
Net debits.
Boston
Total.
Debits.
$20,506,373.88
34,046, 873.93
110,027. 793.93
74,976, 286.56
88,6223 369.91
50,208. 624.52
3,375; 788.04
63,630; 262.26
Total debits.
$1,685,725,095.28
5,636,310,039.34
2,056,513,728.27
1,782,203,929.53
1,787,585,239.79
735,347,669.00
2,863,657,744.81
1,510,575,613.30
481,722,390.05
1,127,198,947.88
682,878,819.51
686,273,279.55
Total credits.
277,534,897.50 1,688,008,156.56 1,688,008,156.56
Balance in
Summary of changes in ownership of gold by banks
through transfers and settlements.
Net credits.
Decrease.
846,126,228.75 $160,401,133.47
680,551,443.03 44,241,403.69
036,007,354.39
010,845,561.48 228,641,631.95
753,538,365.86
625,319,875.07
788,681,458.25
421,953,243.39
431,513,765.53
123,823,159.84
619,248,557.25
"",383,483.47
12,110,203.92
445,394,373.03 21,035,992,496.31 21,035,992,496.31
445,394,373.03
Credits.
$326,701,184.23 $190,687,327.67
331,112,739.76
189,106,152.20
IS, 192,703.41
77,105,840.00
409,882,088.49 219,774,302.98
265,754,640.15 292,924,827.00
5,500,000.00
98,967,328.00
32,200,000.00 131,657,437.00
6,000,000.00
93,062,181.00
68,607,799.22 110,285,721.00
84,848,607.54
88,141,783.71
109,963,393.76
160,334,398.00
31,245,000.00
35,960,858.00
fund at close
of business
Aug. 19, 1920.
Federal Reserve Bank of—
New York
Philadelphia
Cleveland =,
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Transfers.
Aggregate
deposits
and transfers
from agent's
fund.
Increase.
594.62
$24,387,276.91
353.45 $97,765,183.87
549.59
""46,'406,'762*71
959.32
38,533,846.44
108.05
6,876,687.08
948.57 16,560,465.93
325.52
24,481,150.44
694.10 "i*566,"i88.9i*
071.94
8,530,702.74
029.93
82,611.87
786.34 13,259,258.02
180.04
16,826,061.92
306,775,601.47
144,635,098.42
144,635,098.42
FEDERAL RESERVE AGENTS' FUND.
Balance last
statement,
May 20, 1920.
Gold withdrawals.
Gold
deposits.
Boston
New York
Philadelphia..
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis..
Kansas City..
Dallas
San Francisco
$92,000,000
80,000,000
72,889,260
95,000,000
37,500.000
47,000,000
143,144,500
39,230,600
18,600,000
32,860,000
11,234,000
57, 393,000
$35,000,000
17,000,000
30,000,000
$25,000,000
23,000,000
20,100,000
49,000,000
28,000,000
2,000,000
14,000,000
8,000,000
15,000,000
15,000,000
Total...
726,851,360
241,100,000
Federai Reserve Agent at—
Withdrawals
for transfers
to bank.
Deposits
through
transfers
from bank.
$10,000,000
$40,000,000
$45,000,000
17,000,000
31,500,000
* 56,666*666'
$65,000,000
Balance at
close of
business
Aug. 19,1920.
31, 816,500
5,000,000
13,000,000
17,200,000
10,000,000
6,100,000
750,000
7,000,000
500,000
67,500,000
23,000,000
20,700,000
49,000,000
28,900,000
3,400,000
14,000,000
8,000,000
46,816,500
5,000,000
28,000,000
17,200,000
68,000,000
27,200,000
750,000
16,500,000
7,500,000
67,500,000
46,216,500
217,050,000
287,316,500
352,650,000
792,184,860
600,000
900,000
1,400,000
9,500,000
7,000,000
135,600,000
Total
deposits.
$112,000,000
63,000,000
91,389,260
100,000,000
42,500,000
43,500,000
162,144,500
37,530,600
15,950,000
35,360,000
10,734,000
78,076,500
"" *i,566,6o6 * 56,666,666
58,000,000
21,100,000
Total withdrawals.
978
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
BANK TRANSACTIONS DURING JULY-AUGUST.
Tin millions of dollars.]
In the attached tables are shown debits to
individual account for the five weeks ending
In 153 other centers.
In New York City.
August 25 of the present year and for the
corresponding weeks of 1919, as reported to
Week ending.
Excess
Excess
1920
the Federal Reserve Banks by the country's
1920
1919
1919
1920
1920
over
over
more important clearing houses. A summary
1919.
1919.
by Federal Reserve districts presents a com21, 1920.
parison of figures for 154 centers for which July
616
}4,383 5,433 -1,050 4,890 4,274
July 23, 1919.
reports are available both for the 1920 and July 28, 1920.
4,675
487
- 777 4,354 3,867
July 30, 1919.
the 1919 periods under review.
Aug. 4, 1920.
:,331 5,256 - 925 4,508 4,260
248
Aug.
6,
1919.
Aggregate debits to individual account for Aug. 11, 1920
5,088
131
}4,064
-1,024 4,279 4,148
the 154 centers included in the summary Aug. 13, 1919
Aug. 18, 1920
\d,968
4,494
424
- 526 4,580 4,156
varied during the five weeks under review Aug. 20, 1919
25, 1920
within rather narrow limits, the largest amount, Aug.
J3,722 4,253 - 531 4,264 3,732
532
Aug. 27, 1919
8,839 millions, being shown for the week ending August 4, and the smallest amount, 7,986
millions, for the week ending August 25.
For the 153 centers outside of New York
The volume of transactions throughout the City aggregate debits were larger this year
period under review was considerably below than last year for each of the weeks under
the average for the 34 weeks of the year, review, the excess varying between 131 and
which is 9,222 millions, and the total reported 532 millions. For New York City, on the
for the week ending August 25 was the smallest other hand, this year's figures were lower than
amount for any week in 1920, excepting only 1919 figures, and the losses in most cases were
the week of February 25, which contained considerably larger than the gains for the
Washington's birthday, a legal holiday, and, other cities, with the consequence that aggregate debits were lower this year than last year
therefore, had only five business days.
In 1919 the variations for the corresponding for every week except August 25, when the
five-week period were somewhat wider, but two amounts were about equal. The heavy
the general direction of the changes from week decline in volume of check transactions in
to week was the same as for this year, the New York City, as has been frequently pointed
lowest amount reported for the week ending out, is due primarily to the relative inactive
August 27 being approximately the same as state of the stock exchange and the low level of
the total for the corresponding week of 1920. security prices. Another contributing cause
The statement below presents a comparison may be found in the establishment of the
of debits in New York City and in 153 other Stock Clearing Corporation, which enables
centers for each week of the five-week period, firms belonging to the corporation to settle
together with totals for corresponding weeks by check only for the net debit balances of
in 1919, and the amounts by which the totals in stock transactions during a day, instead of
1920 exceeded or fell short of the 1919 figures: drawing checks for each individual purchase.
Debits to individual
account at clearing-house banks.
SUMMARY BY FEDERAL RESERVE DISTRICTS.
[In thousands of dollars.]
Federal Reserve district.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco..
Total
Number
of
centers
included. July 28.
1920
Week e n d i n g Aug. 4.
Aug. 11. Aug. 18. Aug. 25. July 30.
1919
Week e n d i n g Aug. 6.
Aug. 13. Aug. 20.
Aug. 27.
402,382
451,085
376,146
435,779
390,617
414,501
454,583
418,704
402,016
4,047,015 4,485,785 4,204,494 4,120,502 3,863,549 4,787,614 5,387,088 5,216,201 4,622,041
405,315
436,204
403,926
411,226
403,556
356,056
381,267
401,545
381,029
548,234
564,354
529,220
598,920
590,539
550,672
502,917
521,218
486,382
178,918
159,202
175,116
169,559
170,481
191,377
173,791
161,325
189,049
219,439
223,089
201,818
190,968
223,508
232,576
220,341
185,104
208,488
1,114,936 1,134,352 1,089,939 1,188,296 1,048, 754
952,201 1,035,417 1,031,256 1,071,677
202,086
224,920
219,482
228,341
198,340
203,375
213,189
211, 700
231, 776
162,657
146,687
144,929
160,038
146,493
153,283
139,586
135,298
150,872
295,975
311,123
315, 788
295,322
303,177
313, 765 313,221
302,453
330,652
160,425
141,036
133,691
133,770
128,888
145,783
140,203
121,821
130,530
534,488
570,807
473,377
487,555
522,973
536,335
517,263
411,271
474,348
154 8,252,262 8,838,893 8,342,945 8,548,283 7,986,271 8,542,261 >, 515,566 9,236,184 8,650,086
354,415
4,371,108
345,686
464, 749
154,722
184,509
936,414
185,565
142,831
283,399
121,213
440,634
7,985, 245
NOTE.—Figures for the following centers, while shown below in the body of the statement, are not included in the summary, complete data for
these centers not being available for each week under review: Manchester, N. H.; Portland, Me.; Atchison, Kans.; Cheyenne, Wyo.; Sioux Falls,
S. Dak.; Huntington, W. Va.; Moline, 111.; Washington, D. C.
SEPTEMBER,
1920.
979
FEDERAL RESERVE BULLETIN.
Debits to individual account at clearing-house banks—Continued.
DATA FOR EACH REPORTING CLEARING-HOUSE CENTER.
[In thousands of dollars.]
No. 1—Boston:
Bangpr
Boston
Fall River
Hartfcrd
HolycT e
LoweJ
Mane ejtor
New Be iford
New Ha en
Portland
Provide ice
Springfield
WaterLir 1y
Worceste
No. 2—New York:
Albany
Binghamton
Buffalo
New York
Passaic
Rochester
Syracuse
No. 3—Philadelphia:
Altoona
Chester
Harrisburg
Johnstown
Lancaster
Philadelphia
Reading
Scranton
Trenton
Wilkes-Barre
Williams "o*.t
Wilmington
York
No. 4—Cleveland:
Akron
Cincinnati
Cleveland
Columbus
Dayton
Erie
Greensburg
Lexington
Oil City
Pittsburgh
Springfield
Toledo
Wheeling
Youngstown
No. 5—Richmond:
Baltimore
Charleston
Charlotte
Columbia
Huntinjrton
Norfolk.
,
Raleigh
Richmond
,
Washington
No. 6—Atlanta:
Atlanta
Augusta
Birmingham
Chattanooga
Jacksonville
Knoxville
Macon
Mobile
".
Montgomery
Nashville
New Orleans
Pensacola
Savannah
Tampa
Vicksburg
No. 7—Chir ago:
Bay City
Bloomington
Cedar Rapids
Chicago
Davenport
Decatur
Des Moines
Detroit
1919
Week e n d i n g -
1920
Week ending—
Federal Reserve District.
Aug. 11. Aug. 18. Aug. 25
July 30.
Aug. 6.
Aug. 13. Aug. 20. Aug. 27,
2,618
293,466
7,419
19,956
3,597
4,852
2,710
317,584
8,693
23,921
3,190
4,969
2,798
284,219
8,021
21,349
3,383
5,099
2,835
271,720
7,721
16,344
3,287
5,022
2,360
243,682
6,601
18,014
3,248
4,400
5,922
14,119
6,333
16,221
7,321
17,617
7,834
16,982
5,801
14,167
30,313
13,720
5,833
12,686
34,221
14,924
6,138
15,679
31,404
13,291
7,726
16,476
32,045
14,955
6,900
16,371
25,395
12,219
5,707
12,821
July 28.
Aug. 4.
3,362
255,729
7,018
20,960
4,448
5,581
4,677
8,066
19,813
8,027
36,732
16,039
- 6,501
18,133
4,076
286,430
10,075
29,511
5,105
5,739
5,727
10,130
19,579
9,598
36,767
17,526
7,014
19,133
3,115
241,886
8,389
22,095
3,959
5,991
5,760
7,564
19,501
8,968
25,010
14,927
6,647
17,062
4,107
283,931
9,091
21,106
3,756
5,839
4,752
9,280
19,038
8,299
37,33,2
16,010
7,776
18,513
3,201
254,446
7,258
18,801
4,095
5,822
4,045
7,228
16,675
7,955
32,622
15,836
6,220
18,413
27,464
4,333
63,806
,898,013
5,171
30,715
17,513
21,187
4,560
71,883
,331,074
5,292
33,415
18,374
20,129
4,381
66,549
,063,612
5,178
27,523
17,122
22,069
3,438
68,021
,968,469
5,964
32,234
20,307
11,954
17,841
18,984
19,887
16,407
20,827
3,349
3,125
3,391
3,337
3,789
3,672
65,106
52,851
63,772
61,331
56,433
65,078
,722,078 :, 675,401 .,256,018 i, 088,079 ,493,547 4,253,411
3,929
4,083
3,573
5,142
3,628
3,933
28,847
26,660
31,794
22,820
23,483
26,857
12,770
15,309
12,562
12,707
13,689
16,147
3,166
5,166
4,453
4,743
5,296
328,868
3,287
15,636
12,052
5,748
4,304
7,088
4,119
2,461
5,340
1,233
4,780
5,971
335,488
3,391
13,343
12,890
10,282
3,960
7,602
4,485
3,029
4,963
2,897
4,965
5,484
323,706
4,328
16,784
11,960
9,200
2,631
5,950
2,067
4,650
5,522
330,977
3,481
12,238
11,936
8,879
4,675
8,060
4,249
2,471
5,182
1,229
4,050
4,200
364,101
3,352
16,074
11,942
8,275
3,807
6,892
4,629
3,010
2,994
3,857
4,361
4,000
3,972
3,559 , 3,595
4,255
4,531
291,987 334,588
3,132
3,120
12,112
11,318
8,458
8,855
7,179
7,438
3,073
3,141
8,496
9,857
2,938
3,775
3,367
4,526
3,969
3,343
4,636
312,192
4,136
12,341
9,446
7,372
2,880
10,005
3,054
3,667
4,779
3,800
3,512
4,629
312,379
4,145
10,390
9,732
7,504
3,422
9,511
3,559
3,505
3,863
3,930
2,794
4,171
281,766
3,683
13,193
9,029
6,040
3,238
7,621
2,853
25,802
61,812
176,734
28,310
11,768
7,670
6,791
4,422
3,216
213,353
3,750
31,652
9,300
14,340
23,160
64,065
175,468
29,636
11,198
8,177
6,710
4,865
3,177
206,072
3,506
29,700
10,428
14,377
21,083
60,952
163,831
31,927
11,964
8,048
4,569
4,400
3,527
181,489
3,262
30,810
8,788
16,022
27,988
61,543
180,501
29,486
11,734
8,517
6,538
5,803
3,589
170,715
3,446
31,249
22,489
54,373
156,435
27,360
12,376
5,470
4,754
4,218
2,632
156,691
3,372
28,047
8,869
15,831
51,113
144,328
30,260
12,429
7,785
2,908
5,272
2,595
189,769
3,214
28,400
7,315
12,821
19,812
55,025
155,039
28,816
13,398
6,609
7,776
5 384
3,238
172,564
2,998
32,371
6,944
19,246
23,847
55,788
154,314
27,519
12,125
6,422
4,008
4,402
2,665
142,074
3,585
29,053
6,618
13,962
19,933
48,653
132,911
26,887
11,265
13,805
22,192
58,152
160,470
27,583
10,958
7,814
7,191
4,336
3,156
192,498
3,246
29,900
7,517
13,221
99,489
7,638
6,344
5,087
5,310
21,574
4,100
25,327
119,433
8,975
7,275
' 5,258
6,014
22,606
3,441
24,389
104,674
7,895
6,882
4,915
5,662
22,557
4,100
22,768
32,983
109,118
6,113
7,412
4,972
6,199
20,372
4,898
26,033
33,090
94,988
5,170
6,405
4,228
6,091
19,821
3,379
25,211
30,751
101,848
7,029
5,500
5,470
117,784
5,750
6,400
5,567
108,829
7,457
3,800
5,402
110,080
5,929
5,900
5,572
94,439
6,062
4,200
6,064
16,567
3,697
21,214
20,655
3,490
29,403
18,477
3,900
27,251
17,169
3,260
22,571
17,427
3,050
23,480
25,702
7,050
16,028
10,560
12,812
5,754
5,594
7,206
4,334
32,308
72,434
2,224
14,023
5,879
1,600
28,898
7,829
16,184
10,722
14,460
6,743
6,765
8,633
4,537
22,668
79,386
2,703
14,989
6,305
1,754
27,947
7,022
16,604
11,938
14,549
6,991
5,711
8>410
4,242
23,057
70,105
2,572
13,535
5,958
1,700
30,283
7,498
15,258
12,510
12,935
7,015
6,651
8,137
4,083
24,787
73,414
2,611
11,202
5,275
1,430
25,965
6,987
16,191
10,221
12,416
6,325
5,299
7,429
3,836
22,656
80,461
2,051
12,746
5,486
1,370
22,130
7,989
11,429
11,067
10,554
4,676
5,329
6,893
3,657
18,169
61,898
1,952
13,871
4,071
1,419
28,548
7,152
12,825
10,861
10,957
5,711
4,889
7,045
4,493
21,494
71,448
2,124
15,648
3,875
1,418
23,212
5,899
12,880
11,566
10,352
5,672
6,231
7,198
3,716
20,968
72,333
2,180
13,896
4,248
1,467
24,318
6,450
12,414
11,278
10,425
6,220
5,541
6,992
3,749
19,980
62,526
2,500
13,348
3,860
1,367
23,419
5,766
13,832
9,270
10,124
5,749
5,917
6,721
3,196
18,274
61,166
2,073
14,255
3,664
1,083
3,086
2,374
10,953
712,635
7,289
4,087
18,043
148,982
3,590
2,956
10,190
725,094
8,501
4,496
18,356
152,459
3,258
2,672
11,232
684,020
8,898
4,521
19,832
145,618
3*397
2*754
10,762
740,387
6,906
4,631
18,400
183,873
3,253
2,379
10,602
639,908
6,785
3,949
18,872
164,542
2,505
2,504
7,749
645,441
5,208
3,756
17,594
95,759
2,941
2,822
9,132
695,655
7,638
4,361
17,947
107,832
2,809
2,566
8,729
685,735
6,468
3,614
19,224
121,083
2,880
2,588
10,638
684,519
6,057
3,732
19.471
161,446
2,654
2,555
8,462
611,419
6,732
3,663
19,662
120,139
4,459
7,455
4,326
9,440
23,009
6,039
3,360
4,405
2,650
155,309
3,543
25,963
8,797
15,034
980
FEDEKAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Debits to individual account at clearing-house banks—Continued.
DATA FOR EACH R E P O R T I N G CLEARING-HOUSE CENTER—Continued.
[In thousands of dollars.]
No. 7—Chicago—Continued.
Dubuque
Flint
Fort Wayne
Grand Rapids
Indianapolis
,
Jackson
,
Kalamazoo
Lansing
,
Milwaukee
,
Moline
Peoria
Rockford
Sioux City
South Bend
Springfield
Waterloo
No. 8—St. Louis:
E vansville
Little Rock
Louisville
Memphis
St. Louis
No. 9—Minneapolis:
Aberdeen
,
Billings
,
Duluth
,
Fargo
Grand Forks
Great Falls
Helena
Minneapolis
St.Paul
Sioux Falls
Superior
Winona
No. 10—Kansas City:
Atchison
Bartlesville
Cheyenne
Colorado Springs
Denver
Joplin
Kansas City, Kans
Kansas City, Mo
Muskogee
Oklahoma City
Omaha
Pueblo
St. Joseph
Topeka
Tulsa
Witchita
No. 11—Dallas:
Albuquerque
Austin
Beaumont
Dallas
El Paso
Fort Worth
Galveston
Houston
San Antonio
Shreveport
Texarkana
Tucson
Waco
No. 12—San Francisco:
Berkeley
Boise
Fresno
Longg Beach
Los Angeles
Ageles
Oakland
Ogden
Pasadena
Portland
Reno
Sacramento
Salt Lake City
San Diego
San Francisco
San Jose
Seattle
Spokane
Stockton
Tacoma
Yakima
1919
Week e n d i n g -
1920
Week e n d i n g -
Federal Reserve District.
July 28.
Aug. 4.
3,506
8,427
8,865
23,495
41,506
5,843
5,016
5,983
61,404
2,329
10,870
5,621
14,880
5,131
3,207
3,733
3,199
12,380
9,490
22,283
38,572
5,352
5,558
6,253
62,846
2,588
11,026
4,899
13,770
5,402
4,104
3,576
4,933
6,326
25,300
24,001
137,780
4,793
8,076
29,940
25,739
134,827
1,533
1,780
20,449
3,235
1,568
1,638
2,049
74,148
36,891
5,870
1,947
1,255
Aug. 11. i Aug. 18. Aug. 25
July 30.
Aug. 6.
Aug. 13. Aug. 20. Aug. 27.
3,450
9,654
8,390
22,914
41,082
4,740
6,552
7,132
66,841
2,505
11,058
6,053
14,515
5,776
4,635
4,394
3,202
9,403
7,248
21,878
37,191
4,616
5,273
6,479
60,393
2,596
9,388
5,719
13,400
5,712
4,255
4,307
1,950
7,286
5,276
18,288
32,400
3,746
3,385
4,695
49,616
2,453
8,582
5,971
21,613
33,126
5,621
3,668
5,591
58,464
2,239
8,035
5,656
23,306
32,636
3,951
3,906
5,799
55,840
2,510
7,847
5,932
21,294
33,930
5,337
4,099
4,958
56,013
8,827
4,909
18,916
26,852
4,142
2,636
5,559
49,513
10,249
4,257
21,763
2,197
3,594
2,983
10,925
4,763
15,311
3,618
4,020
3,363
10,411
4,700
10,961
4,268
6,162
3,158
9,513
4,581
12,294
3,421
5,791
2,826
4,638
13,965
3,585
4,346
2,583
4,972
7,479
33,485
24,287
142,966
5,470
7,454
28,763
27,265
155,968
4,274
6,716
28,702
28,110
134,284
5,258
7,257
28,923
24,086
146,176
5,365
9,091
32,642
28,402
156,276
5,080
7,786
32,497
23,900
150,219
3,889
6,580
35,702
25,463
156,707
4,383
6,182
29,464
21,484
124,052
1,651
1,887
22,596
2,875
1,574
1,723
2,446
83,553
31,942
5,216
1,950
1,086
1,801
2,005
19,499
3,506
1,557
2,107
2,485
74,295
28,931
5,193
2,227
1,173
1,713
1,963
20,080
3,266
1,482
1,963
2,246
89,918
36,784
5,675
2,067
1,175
1,752
1,725
19,622
3,307
1,600
1,986
2,174
79,164
32,557
5,421
1,811
1,476
1,837
19,566
3,018
1,526
1,582
2,001
67,902
34,292
1,806
2,212
19,046
3,869
1,578
2,165
2,674
75,766
39,263
1,897
1,017
18,221
3,600
1,562
1,914
2,711
76,309
34,965
1,875
2,026
17,922
7,809
1,644
1,793
2,579
83,730
37,962
2,023
1,564
17,690
7,637
1,560
1,982
3,219
73,999
30,580
1,124
974
1,445
1,048
1,993
740
1,819
879
1,6
880
458
3,748
1,919
3,000
42,956
2,713
3,972
88,157
4,505
20,789
55,861
3,641
14,353
3,755
30,022
17,850
577
4,048
1,984
3,227
42,288
2,934
4,182
87,409
4,850
23,863
56,857
3,651
17,008
5,275
29,314
18,271
716
3,330
1,929
3,615
41,408
3,651
4,318
97,904
5,095
27,663
54,196
4,942
20,225
4,982
26,821
15,615
541
3,411
1,795
3,783
39,464
3,611
4,307
94,497
4,945
30,591
57,073
5,071
14,384
4,429
31,467
16,188
436
2,831
2,282
3,389
38,383
2,969
4,282
88,631
4,795
26,785
56,914
3,832
18,830
3,993
24,816
15,525
2,385
3,200
2,569
2,240
2,446
3,285
29,836
2,739
3,406
112,684
3,750
16,374
63,864
4,489
18,851
4,858
21,787
14,145
4,100
33,448
3,253
3,441
125,052
3,933
18,922
67,024
3,685
20,114
6,498
21,242
16,740
4,147
29,501
3,255
3,922
118,337
4,084
17,174
65,433
3,766
17,437
5,607
21,397
14,494
4,725
31,702
2,917
3,789
114,907
3,286
16,156
71,725
5,112
19,554
5,428
21,724
12,523
2,793
30,432
2,710
2,638
98,010
3,463
16,330
66,425
3,227
16,149
4,790
20,579
13,407
1,052
2,493
4,614
30,902
8,773
26,181
8,810
30,943
5,810
3,547
1,291
1,498
2,974
1,808
2,894
4,721
36,222
8,799
26,897
8,147
35,373
7,466
6,581
1,567
1,629
3,679
1,570
2,822
4,820
34,654
7,266
26,483
7,613
35,690
7,501
4,783
1,786
1,650
3,565
1,901
3,026
5,277
36,089
7,402
27,015
15,174
41,741
7,135
9,110
1,839
1,391
3,325
1,452
2,882
4,292
33,636
7,735
26,185
10,360
33,126
8,222
7,077
1,222
1,400
3,447
1,415
l,.93O
3,236
31,338
6,090
22,211
8,763
32,007
3,305
6,077
1,485
1,159
2,805
1,620
2,877
3,375
30,800
7,093
21,898
12,586
33,873
3,514
6,345
1,647
1,322
3,580
1,682
3,286
3,092
35,323
7,040
21,899
9,370
34,188
4,299
7,001
2,193
1,306
3,012
1,756
3,220
3,448
33,177
7,150
22,018
11,137
36,140
3,858
5,928
1,710
1,083
3,145
1,361
2,814
3,924
28,551
6,319
19,394
9,317
32,256
6,798
5,475
1,522
680
2,802
2,496
2,961
9,789
4,832
94,288
33,108
2,757
4,344
37,070
2,658
14,513
16,170
7,569
215,119
5,396
42,823
9,094
5,559
10,195
2,232
2,601
3,049
9,921
5,383
95,568
30,518
3,169
4,960
41,155
2,843
15,540
17,392
7,465
219,539
6,017
41,078
10,779
6,416
10,405
2,537
2,808
3,257
11,864
5j,358
91,059
20,052
3,334
5,174
43,966
2,666
16,046
15,196
7,804
206,729
6,056
44,044
11,679
5,937
11,607
2,627
3,212
3,251
11,474
5,365
102,331
20,677
3,788
5,957
45,865
2,830
17,425
16,988
8,833
235,725
6,665
46,883
13,350
5,932
11,797
2,459
3,537
10,751
4,805
96,535
19,851
3,872
4,938
40,344
2,559
15,769
15,810
6,505
226,598
6,040
41,933
11,626
5,629
11,719
2,578
1,633
3,072
5,826
3,052
68,377
12,414
3,106
3,375
32,860
1,901
10,587
13,077
4,326
171,149
3,982
46,519
8,548
5,750
9,941
1,776
2,154
2,650
6.800
4,124
76,496
14,362
3,039
4,859
39,349
2,457
13,033
14,980
5,233
200,028
5,115
51,682
10,933
5,705
9,314
2,035
2,413
3,208
7,521
3,506
75,935
12,485
3,041
3,782
45,345
2,246
13,268
16,111
5,318
187,638
5,744
57,012
10,965
3,994
11,041
2,804
2,764
2,728
7,526
3,505
77,372
14,894
3,681
3,633
48,730
2,290
13,500
15,985
5,321
193,207
5,839
54,694
10,986
5,222
12,874
2,804
2,876
2,426
6,123
2,662
64,017
12,867
3,212
2,650
38,117
2,100
12,526
15,081
4,245
189,865
5,087
48,031
9,717
3,562
12,946
2,524
3,736
10,503 I
7,411 j
22,976 |
40,791 i
5,352 !
5,255 j
5,871 I
61,756 I
2,402
11,065
6,269
14,278 !
5,866
5,034
3,725
2,089
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
981
DISCOUNT AND OPEN-MARKET OPERATIONS OF THE FEDERAL RESERVE BANKS
DURING JULY, 1920.
Detailed tables showing the discount and
open-market operations of each Federal Reserve Bank during July, 1920, are shown on
pages 983 and 984. Following is a summary
for the system, as a whole, of the operations in
July and June of the current year with comparative figures for 1919:
those of Atlanta, St. Louis, Kansas City,' and
San Francisco.
Of the total bills discounted by the Federal
Reserve Banks the proportion secured by
Government war obligations was 67 per cent,
compared with 72 per cent the month before
and 95 per cent for July and June, 1919. Discounts of trade acceptances were about 0.5
Summary of discount and open-market operations of Federal
million less in July than in June of this year,
Reserve Banks in July and June, 1920 and 1919.
but were about 5 millions above the amount
[In thousands of dollars.]
shown for July of last year. Discounted
bankers' acceptances also show a decline, the
1919
1920
total in July being about 7 millions, as against
9.4 the month before, but only 0.4 million in
June.
June.
July.
July.
July, 1919. Discounts of commercial paper
proper and of agricultural and live-stock paper
Total discounts and opentotaled about 394 millions more in July than in
6,771,913
7,692,825
7,797,839
7,518,907
market purchases
6,714,924 6,336,642 7,183,435 6,328,911 June, the amount for July being about 1,812
Discounts—Total
Secured by Government
4,532,466 4,545,248 6,824,988 6,036,277 millions above the corresponding amount for
war obligations
Otherwise secured and
292,634 July, 1919.
358,447
2,182, 458 1,791,394
unsecured—Total
7,949
8,505
13,920
13,453
Trade acceptances
"fhe number of items discounted in July of
496
360
9,432
7,069
Bankers' acceptances..
this year was 95,397, as compared with 98,296
All other (commercial
n. e. s., agricultural
It is to be
284,189 in June and 46,909 in July, 1919.
349,582
andlive-stock paper) 2,161,936 1,768,042
9.79 noted that the average amount of the items
9.41
14.48
13.63
Average maturity (in days)
Average rate (365-day
4.19 discounted in July of this year was $70,389, as
4.14
6.20
6.21
basis) percent..
Open-market operations:
291,915 compared with $153,136 for July, 1919, when
276,485
285,753
219,464
Bills purchased—Total..
a larger proportion of the discounts consisted
Bankers' acceptances290,203
273,975
256,184
207,272
Total
62,219 of member banks' collateral notes.
62,811
60,380
48,773
In the domestic trade
227,984
213,595
193,373
158,499
In the foreign trade..
Nearly 90 per cent of the discounts in July
Trade acceptances1 645 consisted of 15-day paper, i. e., paper maturing
1,669
24 419
10; 168
Total
661
'729
214
In the domestic trade
1*547
984 within 15 days after date of discount or redis940
22,872
9,954
In the foreign trade..
67
841
5,150
Dollar exchange
2,024
This per45.60 count with Federal Reserve Banks.
51.21
45.68
Average maturity (in days)
47.82
Average rate (365-day
centage
is
higher
than
for
June,
when
it was 88
4.24
4.25
6.07
basis) per cent
6.06
United States securities
per
cent,
but
lower
than
for
July,
1919,
when
purchased:
Six-month bills, composed
278 it was 97 per cent.
Victory notes
60
Certificates of indebtedof agricultural and live-stock paper, totaled
150,809
232,845
ness
584,519 1,175,444
about 40 millions in July, as compared with 52
millions the month before and about 9 millions
During the month of July the total of dis- in July, 1919. The average maturity of the
count operations of the Federal Reserve Banks bills discounted in July figures out at 13.63
was about 378 millions in excess of the total for days, as compared with 14.48 days in June, and
June of this year but about 469 millions below 9.41 days in July of last year.
the amount for July of last year. The figures A slight increase in the average rate of disin the table, it should be noted, are exclusive of count, from 6.20 per cent in June to 6.21 per
bills discounted for other Federal Reserve cent in July is noted, the average rates for the
Banks, which totaled 321 millions during July corresponding months in 1919 being 4.19 and
and 273 millions during June of this year, and 4.14 per cent. The average rates of discount
296 millions during July and 355 millions dur- were higher in July than in June, however, at
ing June of the past year.
the eastern banks and at the Richmond,
While the discounts for the system as a whole Chicago, and San Francisco banks.
were smaller in July than in June, the total for
Total bills purchased in open market in July
the New York bank increased by more than were about 66 millions less than for the month
600 millions, and that for the Boston bank of June. Smaller amounts are shown for all
declined by about 130 millions. Other banks classes of acceptances in July than in June, the
having larger totals for July than for June are decrease in bankers' acceptances being about
982
FEDERAL RESERVE
49 millions and in trade acceptances about 14
millions. As compared
with July of last year
the total of bankers7 acceptances purchased
shows a decline of about 67 millions, while the
total of trade acceptances increased from 1.7 to
10.2 millions, the increase in foreign trade
acceptances being from 0.9 to about 10 millions.
The average maturity of all paper purchased
by the Federal Reserve Banks during July was
47.82 days, compared with 45.68 days the
month before and 51.21 days the year before.
The average rate charged on acceptances purchased in July was 6.06 per cent, showing but
little change from the average of 6.07 per cent
for June, while for July and for June, 1919, the
corresponding average rates were 4.25 and 4.24
per cent.
During the month under review 63 banks
were added to the membership of the system,
the total number of member banks increasing
from 9,395 to 9,458, while the number of banks
accommodated through discount of paper decreased from 4,948 in June to 4,858 in July.
The number of members in each district at the
end of July and of June and the number accommodated during each month is shown in the
following statement:
Federal Reserve Bank.
Number of
Number of
member banks member banks
accommodated.
in district.
July 31. June 30. July.
Boston
New York....
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
432
775
690
862
605
443
1,397
567
979
1,070
828
810
432
772
688
861
601
438
1,394
562
972
1,062
812
801
Total....
9,458
9,395
231
347
390
288
751
287
502
508
519
4,858
June.
246
365
378
296
377
267
739
297
495
494
610
384
4,948
Federal Reserve Bank holdings of discounted
&nd purchased bills, by classes of paper, at the
end of July and June, 1920 and 1919, are shown
in detail on page 985 and are summarized in
the opposite column.
Among the principal changes between June
and July in holdings of discounted paper the
following are to be noted: A decrease of about
37 millions in paper secured by Government
war obligations, more than offset by an increase
of about 97 millions in paper not so secured.
Holdings of agricultural paper were larger by
23 millions at the end of July than at the end of
June, while the most recent total of 107 millions
was 78 millions in excess of the corresponding
amount a year earlier.
SEPTEMBER, 1920.
BULLLETIN.
Summary of discounted and purchased paper held by the
Federal Reserve Banks at the end of July and June, 1920
and 1919.1
[In thousands of dollars.]
1920, end of—
Discounted paper—Total.
Secured by G overnment war obligations.
Otherwise secured and
unsecured—Total.
Agricultural paper..
Live-stock paper
Trade acceptances...
Bankers'acceptances.
Commercial paper,
n. e. s
Purchased paper—Total..
Bankers' acceptances—
Total
Member banks
Nonmember
trust
companies
Nonmember
State
banks
Private banks
Foreign banks,
b r a n c h e s , and
agencies
Trade acceptances—
Total
Foreign
Domestic
1919, end of—
July.
June.
July.
2,491,630
2,431,794
1,867,602
1,818,040
1,241,017
1,277,980
1,616,210
1,573,483
1,250,613
106,611
95,909
19,498
9,830
1,153,814
83,193
84,845
20,034
25,174
251,392
28,639
34,965
9,600
473
244,557
30,836
37,420
7,803
1,113
1,018,765
346,408
940,568
384,551
177,715
373,240
167,385
315,993
339,646
234,368
372,541
255,564
371,991
269,568
314,407
233,519
June.
1,975
1,876
8,935
9,225
45,137
36,087
54,598
38,647
31,928
42,593
29,361
29,648
22,079
21,856
18,967
12,654
6,762
5,124
1,638
12,010
10,071
1,939
1,249
673
576
1,586
1,204
382
1
For discounted paper the figures are for the last Friday of each
month, for purchased paper for the last day of each month.
Holdings of live-stock paper show an increase
of 11 millions for the end of July and an increase
of 61 millions as compared with the total held
a year ago, while bankers' and trade acceptance
holdings were smaller at the end of July of
this year than at the end of June, but
much larger than at the7 end of July, 1919,
the increase for bankers acceptances being
from 0.5 to 9.8 millions and for trade acceptances from 9.6 to 19.5 millions. Holdings of
commercial paper not otherwise specified show
a further increase from 941 millions in June to
1,019 millions in July, the corresponding figures
in 1919 being 167 and 178 millions, respectively.
While commercial paper constituted only 13.4
per cent of all discounts held at the end of July,
1919, this proportion rose to 47.4 per cent at
the end of June and to 49.8 per cent at the end
of July of this year.
Holdings of purchased acceptances at the
end of July were about 346 millions, marking a
further decrease of about 38 millions from the
end of June of this year and a decrease of 27
millions since the end of July, 1919. Bankers7
acceptances show a decrease of about 3.2 millions for the month and of about the same
amount for the year, while trade acceptance
holdings declined from 12 to 6.8 millions during
the month under review, but still show a large
increase over the 1.2 millions reported at the
end of July, 1919. Of the bankers' acceptances held at the end of July, 69 per cent
"SEPTEMBER,, 1920.
983
FEDERAL RESERVE BULLETIN.
were bills accepted by member banks, 13.9 per
cent by nonmember State banks and trust companies, 10.6 per cent by private banks, and
6.5 per cent by foreign banks, branches, and
agencies. Of the trade acceptances held, about
5 millions were based on transactions in the
domestic trade and 1.6 millions on transactions
in the foreign trade.
Total discount and open-market operations of each Federal Reserve Bank during July, 1920.
Federal Reserve Bank.
Boston
New York
Philadelphia...
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis...
Kansas City...
Dallas
San Francisco.
Total,
Total,
Total,
Total,
July, 1920
July, 1919
7 months ending July 31, 1920
7 months ending July 31, 1919
Bills discounted for
member banks.
Bills bought
in open
market.
$286, 483,793
4,044, 469,874
489, 727,126
196, 977,108
251, 416,440
180, 186,879
496. 302,412
192, 560,908
72; 291,302
147, 852,802
109; 534,072
247. 121,093
$22,568,796
115,739,767
616,085
21,538,845
3,083,515
1,430,084
27,607,673
2,040,770
2,774,399
2,063,612
682,500
19,317,631
6,714,923,809
7,183,435,073
45,146,332,039
43.248,463,252
219,463,677
276,484,830
1,933,167,062
1,349,252,732
1
United States securities
purchased.
Total.
Certificates of
indebtedness.
Bonds and
Victory notes.
$62,763,000
382,798,500
61,286,500
13,350,000
8,000,000
4,000,000
3,150,000
860,500
1,016,000
1,821,000
5,270,500
40,203,500
$60,250
228,100
1,751,475
584,519,500
232,845,000
5,242,888,500
1,797,500,500
July, 1920.
July, 1919.
$371,815,589
4,543,008,141
551,629,711
231,865,953
262,499,955
185,616,963
527,060,085
195,462,178
76,081,701
151,737,414
115,487,072
306,642,224
$435,552,808
4,323,320,699
1,034,505,184
319,387,014
426,996,327
182,993,039
408,088,731
154,273,131
40,098,143
110,503,447
100,713,599
156,393,031
7,518,906,986
7,692,825,153
52,322,615,761
1*46," 396," 968," 959
Includes $1,000 of municipal warrants.
Average daily amount of earning assets held by each Federal Reserve Bank during July, 1920, earnings from each class of
earning assets, and annual rate of earnings on basis of July, 1920, returns.
Average daily holdings of the several classes of
earning assets.
Discounted
bills.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
,
Total, July, 1920.
Total, July, 1919.
Purchased
bills.
$819,228 $174,948
4,349,737 784,147
850,800
47,992
838,851 274,467
512,920
29,796
563,395
20,011
2,397,453 249,412
526,258
15,528
441,895
16,686
598,037
13,583
380,989
3,011
762,999 241,154
13,042,562 1,870,735
6,586,435 1,315,282
Total.
$34,003,828
150,513,037
9,427, 763
53,822,929
5,740,213
3,874,899
48,959,320
3,045,700
3,400,000
2,665,255
574,677
47,593,058
$23,655,216
83,048,752
35,915,751
24,618,827
13,944,913
15,910,525
44,351,390
18,485,561
8,636,000
21,773,548
12,486,371
15,481,773
$213,619,616
1,069,737,899
225,736,140
247,554,655
121,316,626
134,894,465
533,297,728
130,922,483
89,597,000
133,394,561
86,651,063
214,250,541
2,519,043,471
1,867,920,337
363,620,679
362,297,879
318,308,627
248,644,993
3,200,972,777
2,478,863,209
Earnings from—
Discounted
bills.
United States
securities.
$155,960,572
836,176,110
180,392,626
169,112, 899
101,631,500
115,109,041
439,987,018
109,391,222
77,561,000
108,955,758
73,590,015
151,175,710
Boston
JSTew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total, July, 1920.
Total, July, 1919.
Purchased
bills.
United
States
securities.
Average rates of earnings on—
Total.
$42,744 $1,036,920
165,906 5,299,790
68,425
967,217
42,982 1,156,300
23,741
566,457
27,134
610,540
78,739 2,725,604
32,593
574,379
14,749
473,330
39,170
650,790
22,280
406,280
27,254
1,031,407
585,717
473,506
15,499,014
8,375,223
Discounted
bills.
Purchased
bills.
United
States
securities.
Total.
Per cent. Per cent. Per cent. Per cent.
6.20
6.07
2.13
5.73
6.14
6.15
2.36
5.85
5.56
6.01
2.24
5.05
5.84
6.00
2.06
5.50
5.96
6.13
2.01
5.51
5.78
6.10
2.01
5.34
6.43
6.01
2.10
6.03
5.66
6.02
2.09
5.19
6.73
5.79
2.02
6.23
6.48
6.02
2.12
5.76
6.09
6.08
2.10
5.51
5.96
5 98
2.08
5.68
6.11
4.15
6.07
4.27
2.15
2.24
5.71
3.98
984
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
Bills discounted during July, 1920, distributed by classes; also average rates and maturities of bills discounted by each Federal
Reserve Bank.
Federal Reserve Bank.
Member banks' collateral
Customers'
notes.
paper
secured by
GovernSecured by
ment war
Otherwise
Government
obligations. war
obligations. secured.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$16,308,260
57,498,277
33,589,804
7,559,924
2,451,661
-5,765,296
9,961,854
5,715,701
1,818,057
3,724,615
1,593,517
2,699,222
$234,192,365
2,617,967,910
289,943,084
144,460,370
209,963,445
116,564,285
295,432,298
100,369,142
32,645,450
104,552,630
74,317,168
163,371,736
148,686,188
214,957,975
4,383*779,883
6,610,038,564
Total, July, 1920..
Total, July, 1919..
Trade
acceptances.
Bankers'
acceptances.
$150,000
$146,058
51,219 12,112,710 2$3,534,343
541,118
118,643
222,000 2,421,769
85,140
1,762,000
869,799
114,999
714,500
642,349
655,000
817,655 1,884,638
827,352
441,150
932,115
2,060,942
336,582
566,000 1,022,745
30,862
821,100
346,694
690,600 '2,195,932
1,702,443
8,297,166
20,893,025
13,452,509
8,504,928
7,068,782
360,677
3
1 Includes $233,300 in the foreign trade.
2 Includes $15,000 of dollar exchange bills.
All other
(commercial
n. e. s., agricultural and
live-stock
paper).
Total.
$35,687,110
1,363,305,415
165,534,477
42,227,905
36,369,535
56,385,450
187,550,967
84,275,448
35,430,271
37,955,950
32,455,593
76,461,160
$286,483,793
4,044,469,874
489,727,126
196,977,108
251,416,440
180,186,879
496,302,412
192,560,908
72,291,302
147,852,802
109,534,072
247,121,093
14.26
6.76
13.98
21.86
16.76
28.91
34.36
30.13
42.24
31.01
33.55
21.57
Per cent.
6.31
6.25
5.54
5.84
5.96
5.94
6.65
6.04
6.77
6.62
5.87
5.95
2,153,639,281
328,679,904
6,714,923,809
7,183,435,073
13.63
9.41
6.21
4.14
Average Average
rate
maturity (365-day
in days. basis).
Includes $105,460 in the foreign trade.
Bankers' and trade acceptances in the foreign and domestic trade and dollar exchange bills purchased during July, 1920; also
average rates and maturities of total bills purchased by each Federal Reserve Bank.
Bankers' acceptances.
Federal Reserve
Bank.
Boston"
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total,
1920
Total,
1919
Domestic.
Foreign.
Total.
$7,821,545 $14,747,251 $22,568,796
105,077,101
84,395,280
20,681,821
591,085
515,733
75,352
21,363,845
15,594,558
5,769,287
3,083,515
2,685,600
397,915
1,430,084
476,056
954,028
27,337,673
21,100,687
6,236,986
2,040,770
800,000
1,240,770
2,674,399
2,146,709
527,690
2,063,612
1,954,612
109,000
682,500
682,500
4,275,900 ""U, 082," 709* 18,358,609
July,
July,
Trade acceptances.
Domestic
Foreign.
Total.
$190,060
$9,220,054
$9,410,114
Dollar
exchange
bills.
Total bills
purchased.
24,233
733,594
757,827
201,195
$22,568,796
115,739,767
616,085
21,538,845
3,083,515
1,430,084
27,607,673
2,040,770
2,774,399
2,063,612
682,500
19,317,631
$1,252,552
25,000
175,000
270,000
100,000
Average Average
rate
maturity (365-day
in days. basis).
33.78
42.20
43.96
55.18
71.68
63.30
61.80
49.25
70.80
60.44
59.58
59.69
Per cent.
6.09
6.04
5.88
6.01
6.08
6.08
6.13
6.17
6.08
6.08
6.08
6.03
48,772,794
158,499,195
207,271,989
214,293
9,953,648
10,167,941
2,023,747
219,463,677
47.82
6.05
60,379,550
213,595,045
273,974,595
728,458
940,450
1,668,908
841,327
276,484,830
51.21
4.25
985
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Discounted bills, including member banks' collateral notes, held by each Federal Reserve Bank on the last Friday in July, 1920,
distributed by classes.
[In thousands of dollars.]
Federal Reserve Bank
Boston*
New York
Philadelphia
Cleveland..
Richmond . .
Atlanta..
^Chicago..
St. Louis...
Minneapolis
Kansas City..
Dallas
San Francisco
.
...
Total:
1920
1919
Member banks' collateral notes—
Customers'
paper
Live-stock secured by
Governpaper.
Secured by
ment war
GovernOtherwise
obligations. ment war
secured.
obligations.
Agricultural
paper.
6
459
328
341
7,738
10,927
25 812
3,676
12,199
8,786
16,175
20,164
2,142
30,935
27,567
12,377
15,015
25 862
127,872
49,148
14,849
6,644
8,430
17 981
13,079
3,964
6,928
2,774
4,235
106,611
28,639
95,909
34,965
281,766
230,218
5,085
247
149
2,392
63,959
392,331
93,830
62,185
35,785
46,209
138,496
25,413
4,841
39,069
13,226
43,907
959,251
1,385,992
Trade
acceptances.
Bankers'
acceptances.
36
701
112
459
94
940
198
489
137
195
3,125
714
2,289
1,502
1,286
3 748
1,093
523
1,163
814
3,046
174
2,463
299
79
3,166
12,959
19,498
9,600
All other
(commercial paper
n. e. s.).
Total.
42
153
3,020
54 300
302,071
36,289
74,113
51,989
44,159
256 559
60,689
25,122
25,446
26,067
58,795
149 581
828,321
180 608
154,139
104,508
114,127
444,643
107,586
78,524
109,199
72,075
148,319
9,830
473
1,015,599
164,756
2,491,630
1,867,602
612
1,588
1,400
Acceptances purchased by each Federal Reserve Bank and held July 31, 1920, distributed by classes of accepting
institutions.
[In thousands of dollars. |
Bank acceptances.
Federal Reserve Bank.
Member
banks.
Boston.
New York
Philadelphia
Cleveland...
Richmond
Atlanta.
Chicago
St. Louis.
Minneapolis
Kansas City
Dallas.
•San Franci sco..
Total:
July 31, 1920.
June 30, 1920
May 31, 1920
Apr. 30, 1920 .
Mar. 31, 1920
Feb 28 1920
Jan 31 1920
July 31, 1919.
July 31 1918
24,040
74,110
7,903
36,111
5,588
3,536
38,749
2,740
2,659
3,248
718
34,966
234,368
255,564
275,369
270,808
282,339
364,940
383,375
269,568
154,614
Trade acceptances.
Nonmember
State
banks.
Private
banks.
Foreign
banks,
branches
and
agencies.
1,634
200
100
2,087
24,647
1,3*5
8,638
2,590
18,541
1,359
7,597
315
10,830
598
5,053
13
642
567
222
Nonmember
trust
companies.
Total.
28
7,5?5
5,433
4,744
29,032
129,762
11,405
57,499
5,588
3,536
40,193
2,740
3,159
3,248
718
52,766
1,975
1,876
2,954
1,237
1,389
2,100
6,134
8,935
1,129
45,137
54,598
56,187
45,055
55,390
70,127
68,592
31,928
7,302
36,087
38,647
47,448
48,549
51,012
60,218
61,218
42,593
18,082
22,079
21,856
29,469
31,210
23,654
33,440
36,203
18,967
8,975
339,646
372,541
411,427
396,859
413,784
530,825
555,522
371,991
190,102
317
183
Domestic. Foreign.
Total.
Grand
total.
87
1,085
1,172
29,032
135,269
11,405
57,582
5,588
3,536
40,193
2,740
3,159
3,248
718
53,938
1,638
1,939
1,542
600
572
580
1,893
576
5,124
10,071
7,223
9,788
5,566
4,800
4,595
673
6,762
12,010
8,765
10,388
6,138
5,380
6,488
1,249
7,781
346,408
384,551
420,192
407,247
419,922
536,205
562,010
373,240
197,883
1,468
4,039
5,507
83
83
986
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
OPERATIONS OF THE FEDERAL RESERVE CLEARING SYSTEM FROM JULY 16 TO
AUG. 15, 1920.
[Amounts in thousands of dollars.]
Items drawn on banks in own district.
Federal Reserve Bank or
branch.
Located in Fed- Located outside
eral Reserve Bant Federal Reserve
and branch
Bank and branch
cities.
cities.
Items drawn on
Treasurer of
United States.
Items forwarded Items forwarded
to other Federal | to parent bank
Reserve Banks I or to branch in
and their branches. same district.
Total.
Number. Amount. Number. Amount. Number. Amount. Number. Amount.
663,,564 663,762
,028 719 2,018,310
2,89
453,296
3 737,' 160 ,293,100
1
346 112,845 342,559 57,836
,340; 805 863,524 1,783,023 272,315
330; 747| 284,841 1,040,0031 191,6211
161,823 724,397, 95,445
148,
310, 716 339,601
802,999 104,430
94, 190 157,398 1,305,475 282,155
187; 352, 177,171
630,909 86,528
284,557; 60,324
103,,917| 66,404
,467 20,914 138,460 12,242
716 20,636 114,853 13,423
35,199 179,027 23,875
44, 823
62,655
99,001 16,537
53, 782
701, 664 748,176 3,122,293 427,465
194,960
184,,671
347,4411 50,933!
204 954 253,840 1,240,485 105,1931
058 24,817 254,018 19,341
026 64,898 325,610 26,736
64,,752, 31,541
127,276
9,945
227,,243 150,619 1,487,433 119,185
320, 023 370,494 2,224,660 233,913
294,284 21,748
70, 685! 60,777
25,396 409,105 43,593
14, 292
64,762 464,682) 42,200
83,,720
65,064 1,410,035 246,127
79, 513
12,251 125,902 12,666
28,,959
44,216 355,513 39,179
56,,906
314,721 29 644
115,,232 104,763
84,767 532,097 47,945
103,,243
35,165 162,266 11 664
60,,996
26,142 349,169 31,105
52, 623
42,661 188,451 17 117
62. 302
17,483 143,918 11,636
27; 047
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
Kansas City*
Denver *
Oklahoma City*..
Omaha
Dallas*
El Paso*
Houston*
San Francisco
Los Angeles
Portland
Salt Lake City*..
Seattle
Spokane
105,010
878,512
8,570
162,795
26,803
30,700
22,788
35,030
42,445
22,388'
10,355
9,954
11,303
16,906
168,089'
22,338^
83,184
6,300
23,952
8,256;
17,482,
65,656;
17,236
22,301
3,231
12,941
2,223
7,041
1,304
5,721
8,226
2,862
16,408
23,901
11,204
40,319
43,2811
16,799;
13,962!
10,225
21,002
6,511
1,771
4,874
2,363
2,214
82,697
6,254
5,256
2,362
7,556
846
20,564
88,756
4,589
43,458
4,488
3,585
5,298
5,950
9,011
7,794
884
1,278
1,440
3,930
3,658,654
5,644,391
495,475
3,286,623
1,397,553
904,025
1,136,503
1,434,695
860,706
410,862
187,282
154,523i
235,153
169,689!
3,992,046
554,450!
1,528,623
300,376
424,588
200,284
1,732,158
2,610,339
382,205
423,397
564,810
1,513,449
166,0651
452,738
473,2341
652,139,
237,2241
412,0171
271,755
177,476!
1,137,622
3,400,166
175,270
1,179,297
480,950
260,853
449,329
445,503
272,710
134,522
34,040
35,337
60,514
83,122
1,197,942
249,124
371,974
46,381
98,675
42,790
275,525
612,633
85,387
68,989
108,733
316,065
27,280
85,609
217,104
138,966
52,085
59,609
67,334
29,965
Number. Amount. Number. Amount,
110,150
847,770
139,585
715,937
21,972
13,296
60,931
114,573
145,067
19,983
16,848
22,874
25,729
64,180
273,966
8,720
22,694
8,226
9,748
2,499
95,171
253,960
105,875
13,017
31,384
86,892
19,327
18,846
"23,743
52,219
2,444
6,902
16,465
5,939
75,372
587,518
36,440|
225,867
30,205
16,073;
49,065
64,913
138,119
18,5541
12,448;
7,423!
5,128j
10,748
41,286
7,277
8,637
1,922
2,012
1,226
36,228
75,829
16,444
2,261
8,993
29,653
7,543
23,980
4,624
7,353
2,048
15,172
5,624
3,230
21,941
32,465
8,20S
23,363
45,786
9,256
28,353
9,411
9,301
55,479
22,662
6,150
11,084
6,740
10,874
7,174
24,987
28,655
2,414
3,312
15,573
5,700*
8,389*
ll,240>
9,801
10,706*
38,5532,440=
1,914
1,2195,35L
3,211
2,317
3,992
535-
8,8751
51,720
7,134
20,497
54,593
13,708
9,163
60,276
24,774
25,922
6,976
31,751
16,261
36,74$
17,525*
7,478
7,864
7,706
2,930
2,410
10,272
4,374
4,462
6,936
6,175^
3,741
July 16 to Aug. 15,1920. 7,093,981 7,407,875 27,951,862 4,510,462,1,999,6641 383,068 37,045,507 12,301,405 ^3,376,932 11,579,215 757,694
June 16 to July 15,1920. 7,109,340 7,988,267|28,017,717(4,701,304 2,418,982 927,221 37,546,03913,616,792 23,388,306 21,651,490 736,000
July 16 to Aug. 15,1919. 5,079,206 6,222,44018,419,221 3,670,8052,259,7261,553,788J25,758,153 11,447,033^2,728,099J31,535,757 560,189
Federal Reserve district.
N u m b e r of m e m b e r
banks in district on
Aug. 15.
1920
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
1
.
.
1919
N u m b e r of nonmember banks on par list
Aug. 15.
1920
1919
432
775
691
864
608
444
1,396
567
985
1 071
831
808
429
740
670
832
572
428
1,364
527
893
1 013
748
678
257
324
432
1 077
764
433
4,241
2,512
2,901
3 388
1,239
1,037
241
317
406
956
395
351
3,192
1,653
1 463
2 371
320
913
9,472
8,894
18,605
12,578
l,2ia
272,339265,407
244,828
N u m b e r of incorporated banks other t h a n
m u t u a l savings b a n k s
not on par list A u g .
15.
1923
1919
1
782
1,182
174
1
J
2,138
119
1.038
1,218
964
962
1 7 401
gyg
891
152
7.621
Includes 6,553 items amounting to $1,965,000 forwarded direct to member banks in other Federal Reserve districts.
2 Includes 7,313 items amounting to $2,073,000 forwarded direct to member banks in other Federal Reserve districts.
Includes 4,544 items amounting to $4,023,000 forwarded direct to member banks in other Federal Reserve districts.
* NOTE.—Number of business days in period was 26 in all Federal Reserve Bank and branch cities except in those marked with an asterisk where
the number was 25, and in Oklahoma City where the branch opened for business on August 2 and where therefore the number of business days
was 11 only.
3
INTERDISTRICT TIME SCHEDULE APPROVED BY THE FEDERAL RESERVE BOARD SHOWING COLLECTION
TIME FOR CASH ITEMS BETWEEN ALL FEDERAL RESERVE BANKS AND BRANCH BANKS.
To—
Boston
New York
Buffalo
Philadelphia
Cleveland
Cincinnati
Pittsburgh
Richmond
Baltimore
Atlanta
New Orleans
Birmingham
Jacksonville
Nashville
Chicago
Detroit
8t. Louis
Louisville
Memphis
Little Rock
Minneapolis
Helena
Kansas City
Omaha
Denver
Oklahoma City.
Dallas
El Paso
Houston
San Francisco...
Spokane
Portland
Seattle
Salt Lake City..
Los Angeles
1
1
1
2
2
2
2
2
3
3
3
3
3
2
2
3
2
3
3
3
5
3
3
4
3
4
4
4
5
5
5
4
6
2
1
2
1
2
2
2
W
4
4
4
4
4
4
4
4
1
2
2
2
2
2
2
2
2
2
2
3
3
5
3
3
4
3
3
4
3
4
4
3
4
4
3
4
4
4
3
3
4
4
4
3
3
2
1
2
3
2
4
Lake
City.
i 1
w
Spoka
s
emphi
hville.
Pittsbur
ew York
From—
lphia
to
o
1>
4
3
4
3
5
5
5
4
5
CO
00
988
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
CHANGES IN CONDITION OF THE FEDERAL RESERVE BANKS.
During the five weeks between July 23 and
August 27 the Federal Reserve Banks increased
their holdings of discounted bills by 197.2
millions from 2469.9 to 2667.1 millions, or at a
weekly average rate of 39.4 millions. This
increase proceeded steadily from week to week
and much the larger share of it, viz, 129.8
millions, is represented by the increase of ordinary commercial paper, as distinct from paper
secured directly or indirectly by United States
war obligations or by Treasury certificates (socalled war paper). Loan operations of the
Government included the issue on August 16
of over 157 millions of 1-year 6 per cent loan
certificates and the redemption before maturity
of moderate amounts of tax certificates falling
due on September 15. On the whole, the effect
of these operations was to arrest for a time the
gradual liquidation by member banks of their
holdings of Treasury certificates, for which
there is apparently a steadily growing demand
on the part of the investing public. Federal
Reserve Bank holdings of paper secured by
Treasury certificates show but little change, the
August 27 total of 346.7 millions being slightly
below the July 23 total. As against this
slight decrease, the Federal Reserve Banks
report a 60-million increase in their holdings
of paper secured by Liberty bonds and a 10million increase in paper secured by Victory
notes. Of the total amount of discounts
carried on August 27 by the Reserve Banks,
the share of bills directly or indirectly protected by Government securities was slightly
below 50 per cent, of which a little over 50 per
cent, as against 48.1 per cent on July 23, is
represented by bills secured by Liberty bonds.
Nearly 160 millions of the total increase of
197 millions in discounts held is composed of
15-day paper, which constituted slightly below
60 per cent of the total discounts held by the
Reserve Banks on the last Friday in August.
Holdings of 30-day paper show an increase of
over 7 millions, while those of 60-day paper
went up about 75 millions. On the other
hand, holdings of 90-day paper, and especially
of 6-month paper, show substantial reductions
for the period, the decrease in the holdings of
the latter class of paper reflecting largely the
seasonal liquidation of loans in the farm
districts.
Further reduction from 353.5 to 321.9 millions is shown in the Reserve Bank holdings of
acceptances. These holdings are at present
concentrated largely in the New York, Cleveland, Chicago, and San Francisco
banks and
are composed chiefly of bankers7 bills originally
purchased by the New York bank for its own
account and the account of other Reserve
Banks. A reduction in Treasury certificates
from the maximum of 298.5 millions held on
July 30 to 273.7 millions, held four weeks
later, represents largely the amount of special
certificates redeemed by the Government during the more recent weeks.
Substantial increases for the period under
review are shown in the volume of interbank
discounting, the holdings of paper discounted
for other Reserve Banks showing an almost
continuous increase from 123.2 millions on
July 23 to 166.5 millions on August 27. The
latter amount was held exclusively by the
Boston and Cleveland banks, bills discounted
for other Reserve Banks constituting about 36
per cent of the total discounts held on August
27 by the Boston bank and over 50 per cent
of the total discounts held on that date by the
Cleveland bank. No change is shown in the
list of rediscounting institutions, which includes the Federal Reserve Banks of Richmond, Atlanta, St. Louis, Minneapolis, Kansas
City, and Dallas. Four of the bants included
in this list, viz, those at Atlanta, St. Louis,
Kansas City, and Dallas, continued to apply
progressive discount rates during the period
under review. These four banks show an
aggregate increase of 33.2 millions in their
liabilities on paper rediscounted with other
Federal Reserve Banks besides a total increase
of 11.1 millions in their net holdings of paper
discounted for their member banks.
Holdings of acceptances purchased from
other Federal Reserve Banks show a further
increase from 42.5 to 48.9 millions, the latter
amount representing acceptances sold by the
New York and Chicago banks without their
indorsement to the Philadelphia, Cleveland,
and San Francisco banks. The aggregate
guarantors' liability of the Federal Reserve
Banks on bills purchased for account of foreign
correspondents remains unchanged at 16.2
millions.
Government deposits fluctuated between
11.6 millions on August 13 and 55 millions on
the following Friday. Reserve deposits moved
within the relatively narrow limits of 1834.5
millions on August 13 and 1793.7 millions on
August 20, while other deposits, including
largely foreign Government credits and nonmembers' clearing accounts, show a further
decline from 48.3 to 43.2 millions between
July 23 and August 27. Net deposits increased
from 1685.6 millions, the low figure for the
period, to a high of 1717.9 millions five weeks
later. Federal Reserve note circulation shows
a further expansion for the period of 85.4 mil-
SEPTEMBER, 1920.
989
FEDERAL RESERVE BULLETIN.
lions, while Federal Reserve Bank notes in circulation increased by 10.7 millions. The banks'
gold reserves, in consequence of further export
withdrawals, show a loss of 11.5 millions, while
the loss in total cash reserves, because of further
silver deposits by the Government,
amounted
to only 6.2 millions. The banks7 reserve ratio
continued to decline steadily during the period
and on August 27 stood at 43.2 per cent, compared with 44.4 per cent five weeks before.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27, 1920.
RESOURCES.
[In thousands of dollars.]
Boston.
Gold and gold certificates:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Gold settlement
fund—Federal
Reserve Board:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Gold with foreign
agencies:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Gold with Federal
Reserve agents:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Gold redemption
fund:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Total gold reserves:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Legal tender notes,
silver, etc.:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Total reserves:
July 30
Aug.6
Aug. 13
Aug. 20
Aug. 27
Bills discounted: i
Secured
by
Government
war obligationsJuly 30
Aug. 6
Aug. 1 3 . . . .
Aug. 20
Aug. 2 7 . . . .
All other—
j
July 30
1
Aug.6
1
Aug. 13
Aug. 2 0 . . . J
Aug. 2 7 . . . .
Bills bought 2 in
open market:
July 30
Aug.6
Aug. 13
,.
Aug. 20
Aug. 27
New
York.
Philadelphia.
Cleveland.
Richmond. Atlanta. Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
Total.
11,862
11,934
11,996
12,107
12,179
88,016
89,755
91,440
95,413
97,015
1,188
1,196
1,220
1,276
1,285
10,272
10,351
10,407
10,432
10,587
2,403
2,415
2,380
2,396
2,426
7,784
7,840
7,913
8,024
8,133
24,347
24,364
24,358
24,400
24,351
3,138
3,096
2,997
2,874
3,747
7,225
7,209
7,225
7,192
7,210
515
532
548
558
557
5,649
5,690
5,267
6,001
6,195
11,780
20,783
13,879
12,452
12,454
174,179
185,165
179,630
183,125
186,139
41,652
39,644
42,039
31,666
37,291
57,504
50,589
29,238
36,576
24,116
29,475
50,116
47,285
41,033
34,963
79,221
65,364
65,449
62,600
56,801
18,135
19,371
20,532
17,812
26,130
7,133
7,212
6,261
6,213
5,540
67,483
71,364
88,800
80,278
95,158
15,018
11,721
10,027
13,555
12,335
8,141
8,250
6,718
6,874
5,841
22,523
26,359
27,609
22,579
23,552
6,484
5,312
6,419
4,895
5,043
36,620
25,957
39,550
42,811
46,502
389,389
381,259
389,927
366,892
373,272
8,142
8,142
8,142
8,136
8,136
40,932
40,932
40,932
40,905
40,905
8,922
8,922
8,922
8,916
8,916
9,146
9,146
9,146
9,139
9,139
5,465
5,465
5,465
5,461
5,461
4,015
4,015
4,015
4,013
4,013
13,272
13,272
13,272
13,263
13,263
5,242
5,242
5,242
5,238
5,238
3,011
3,011
3,011
3,009
3,009
5,353
5,353
5,353
5,350
5,350
2,900
2,900
2,900
2,898
2,898
5,131
5,131
5,131
5,127
5,127
111,531
111,531
111,531
111,455
111,455
136,866
134,754
132,865
130,330
128,392
279,139
278,544
277,642
277,126
275,950
105,697
103,727
101,527
108,903
116,899
151,473
148,633
149,261
150,982
150,744
37,561
44,008
42,376
44,343
42,768
47,218 157,137
47,720 154,529
49,688 174,823
48,558 170,626
48,109 166,067
44,719
45,775
44,303
45,337
45,537
31,309
30,904
30,919
30,984
31,057
35,202
37,867
37,747
37,568
38,078
27,160
26,348
28,405
26,932
25,997
100,231
97,534
95,006
92,575
85,086
1,153,712
1,150,343
1,164,562
1,164,264
1,154,684
18,315
19,919
21,343
23,224
24,604
35,977
35,943
35,958
35,983
35,928
10,543
11,145
11,671
12,673
12,768
1,072
2,347
1,558
1,742
45
188
7
54
61
4,698
3,578
4,242
4,973
4,048
4,599
4,943
3,415
4,427
4,924
9,278
10,617
10,030
9,372
9,270
148,893
152,307
131,708
140,615
146,275
216, 837
214,393
216,385
205,463
210,602
501,568
495,763
475,210
486,003
473,914
155,825
175,106
170,625
172,801
174,831
49,731
49,562
47,880
48,113
47,178
68,291
73,689
75,499
71,028
71,585
46,792 163,040
45,193 160,022
46,406 163,596
45,153 162,337
45,057 158,439
1,977,704
1,980,605
1,977,358
1,966,351
1,971,825
7,012
6,752
6,623
6,308
6,226
119,521
119,528
123,996
124,112
124,810
223,849
221,145
223,008
211,771
216,828
5,961
6,875
8,019
8,714
8,660
9,012
7,467
7,707
9,394
41,479
43,481
22,668
26,379
30,412
5,141
5,173
6,474
6,062
5,375
251,184
235,841
235,821
234,895
228,048
72,650
77,220
77,628
78,031
85,499
74,810
75,799
75,344
74,515
75,189
303,718
307,010
323,921
314,946
329,251
73,258
71,007
69,043 .
73,066
72,232
352
255
473
360
253
1,986
2,283
2,198
2,345
2,028
153
145
56
199
63
1,699
1,669
1,497
1,561
1,482
8,821
8,416
8,087
8,012
8,160
7,541
7,742
8,066
8,145
8,147
165
75
54
62
62
1,798
1,829
1,773
1,661
1,645
1,097
1,525
1,721
1,933
2,309
791
920
817
150,936
151,139
155,527
155,486
156,002
621,089
615,291
599,206
610,115
598,724
156,177
175,361
171,098
173,161
175,084
253,170
238,124
238,019
237,240
230,076
72,803
77,365
77,684
78,230
85,562
76,509 312,539
77,468 315,426
76,841 332,008
76,076 322,958
76,671 337,411
80,799
78,749
77,109
81,211
80,379
49,896
49,637
47,934
48,175
47,240
70,089
75,518
77,272
72,689
73,230
47,889
46,718
48,127
47,086
47,366
163,831
160,942
164,579
163,125
159,256
2,128,640
2,131,744
2,132,885
2,121,837
2,127,827
89,821
105,030
107,592
129,309
116,780
520,203
551,919
554,564
542,329
553,992
142,978
138,296
136,899
136,498
137,356
77,034
77,068
84,235
75,068
80,006
42,429
41,533
41,911
41,797
36,715
54,639
56,121
57,378
61,362
64,319
156,477
155,956
151,556
157,600
162,628
38,492
35,427
41,547
33,652
35,769
8,805
10,014
11,140
5,732
6,727
45,997
47,319
42,331
45,498
47,178
16,000
17,299
17,423
22,494
20,564
48,142
49,416
50,405
50,270
52,796
,241,017
,285,398
,296,981
,301,609
,314,830
59,760
58,631
59,162
58,997
68,766
308,118
306,659
347,974
342,526
366,051
37,630
36,175
40,865
40,070
37,060
77,105
90,583
91,609
106,260
116,708
62,079
63,163
62,658
64,109
64,047
59,488
59,780
59,842
52,755
54,573
288,166
284,473
282,219
282,797
276,136
69,094
73,679
70,212
81,076
76,461
69,719
70,593
65,893
72,825
71,482
63,202
61,957
55,364
64,110
62,526
56,075 100,177
55,929 102,813
53,820 102,407
50,160 102,135
53,084 105,403
28,901
25,009
19,796
19,734
20,116
135,195
134,576
109,443
112,907
100,523
11,405
11,158
12,489
11,506
19,904
57,551
54,866
64,712
59,378
5,588
6,451
7,302
7,319
7,146
3,536
3,472
3,220
2,786
2,188
39,482
39,924
43,349
45,272
41,099
2,740
2,619
2,160
2,570
2,315
3,159
2,905
1,230
934
935
9149°—20
7
in
3,016
3,916
4,005
4,016
3,984 1
658
1,123
688
680
555
54,074
53,371
52,224
53,495
56,308
,250,613
, 264,435
,292,025
1 317,820
1,352,297
345,305
339,390
320,618
320,565
321,997
990
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27, 1920—Continued.
RESOURCES—Continued.
[In thousands of dollars.]
Boston.
United States Government bonds:
July 30
Aug. 6 . .
Aug 13
Aug. 20..
Aug 27
United States Victory notes:
July 30.
Aug 6
Aug 13
Aug 20
Aug 27
United States cer- tiflcates of indebtedness:
July 30.
Aug 6
Aug. 13.. .
Aug 20
Aug. 27. .
Total earning assets:
July 30
Aug 6
Aug. 13
Aug 20
Aug. 27
Bank premises:
July 30
Aug
Aug
4ug
Aug
6 .
13 .20
27
Uncollected items
and other deductions from gross
deposits:
July 30
Aug. 6
Aug 13
Aug. 20
Aug 27
5 per cent redemption hind against
Federal Reserve
Bank notes:
July 30
Aug. 6
Aug 13 .
Aug 20
Aug. 27
All other resources:
July 30
Aug. 6
Aug. 1 3 . . .
Aug 20
Aug 27
Total resources:
July 30
Aug. 6
Aug 13
Aug. 20 . .
Aug. 27
Includes bills discounted for other
Federal Reserve
Banks:
July 30
Aug 6
Aug 13
Aug. 20
Aug 27
* Includes bankers'
acceptances
bought from
Federal Reserve
Banks without
their indorsement:
July 30
Aug 6
Aug 13.
Aug. 20
Aug. 27
New
York.
Philadelphia.
Cleveland.
Richmond. Atlanta.
Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
4,477
4,490
4,490
4,490
4,490
1,153
1,153
1,153
1,153
1,153
116
116
116
116
116
8,867
8,867
8,867
8,867
8,867
3,966
3,966
3,966
3,966
3,966
2,632
2,632
2,632
2,632
2,632
Total
557
557
557
557
557
1,457
1,462
1,462
1,462
1,462
5
5
5
5
5
50
50
50
50
50
26,657
21,541
26,525
21,583
21,507
81,502
68,743
66,116
69,629
69,401
39,357
32,165
36,205
33,598
33,309
25,322
23,322
23,322
24,250
23,322
12,260
12,260
12,260
12 260
12,260
15,665
15 665
15,665
15 665
15,665
39,669
39,723
39,656
40,038
39,657
17,233
17,274
17,257
17,302
17,509
8,481
8,481
8,481
8,481
8,481
12,883
12,842
12,845
12,830
12,825
8,300
8,300
8,300
8,302
8,300
11,191
11,174
11,204
13,220
11,465
298,520
271,490
277,836
277,158
273,701
205,701
210 773
213,637
230 185
227,731
1,046,525
1,063 409
1,079,609
1,068,903
1,091,479
232,756
219,180
227,844
223,058
229,015
237,855
246,683
264,722
265,799
287,772
123,589
124 640
125,364
126 718
121,401
133,445
135 155
136,222
132 685
136,862
528,271
524,566
521,270
530,197
524,010
128,712
130,152
132,329
135,753
133,207
90,280
92,109
86,860
88,088
87,741
133,966
134,902
123,413
135,322
135,381
84,999
86,617
84,197
85,602
86,469
216,216
219,406
218,872
221,752
228,604
3,162,315
3,187,592
3,214,339
3,244,062
3,289,672
1,535
1,582
1,644
1,679
1,700
3,783
3,869
3,841
3,846
3,942
619
619
686
638
638
1,156
1,156
1,156
1,156
1,156
1,079
1 079
1,129
1 129
1,135
601
603
603
603
606
2,118
2,118
2,118
2,138
2,138
866
866
866
866
866
566
566
566
586
586
762
762
762
762
791
972
992
1,001
1,019
1,079
232
232
232
232
232
14,289
14,444
14,604
14,654
14,869
54,215
57,362
66,610
59,586
51,331
150,978
154,059
173,908
168,254
158,600
62,231
59,798
69,619
72,099
66,106
70,576
71,858
78,816
80,305
74 192
52,535
53,904
56,113
59,324
55 242
24,040
23,534
29,444
33,184
26,894
93,939
99,966
101,751
100,770
94,808
40,628
46,329
44,890
43,998
41,560
19,351
19,078
21,523
20,540
20,003
62,710
68,089
70,758
62,719
59,080
43,978
42,304
45,712
44,512
43,173
35,883
37,407
40,058
39,949
38,900
711,064
733,688
799,202
785,240
729,889
1,072
1,072
1,072
1 072
1,072
3,127
3,156
2,157
2,189
2,194
1,300
1,300
1,300
1,300
1,300
871
959
959
1,039
1,139
451
451
451
451
451
517
526
482
491
559
2,211
2,505
2,433
2,096
1,968
523
527
524
524
524
445
339
402
271
582
916
916
916
916
916
586
586
586
586
586
665
665
665
665
665
12,684
13,002
11,947
11,600
11,956
244
288
402
258
273
802
598
824
782
808
355
371
318
433
429
179
227
197
166
172
278
242
178
188
870
114
161
83
97
183
606
451
700
701
589
312
321
342
378
383
82
105
108
103
76
274
283
257
263
207
276
182
128
117
170
255
271
322
341
398
3,777
3,500
3,859
3,827
4,558
486,616
492,222
506 373
504,551
498,935
1,826,304
1,840,382
1 859,545
1,854,089
1,855,747
453,438
456,629
470 865
470,689
472,572
563,807
559,007
583 869
585,705
594,507
250,735
257,681
260 919
266,040
264,661
235.226
237,447
243,675
243,136
241,775
939,684
945,032
960,280
958,860
960,924
251,840
256,944
256,060
262,730
256,919
160,620
161,834
157,393
157,763
156,228
268,717
280,470
273,378
272,671
269,605
178,700
177,399
179,751
178,922
178,843
417,082
418,923
424,728
426,064
428,055
6,032,769
6,083,970
6,176,836
6,181,220
6,178,771
44,923
59 514
60,429
67,916
66,911
39,025
27 285
10,391
8,306
3,445
2 518
1 444
1,386
1,386
1,386
1,386
1,386
833
834
834
833
834
1,233
1,233
1,233
1,233
1,233
10
10
10
10
10
114
114
114
114
114
1
1
1
1
1
3
3
3
3
3
69
69
69
69
69
54 755
64 083
63,979
74,964
99 620
10,014
10 014
7,'130
4,274
11,812
10,001
9 329
21,559
16,892
21,440
26,791
26,810
26,810
26,809
26,810
138,703
150 882
134,799
151,186
166,531
19,092
16 590
17,389
14,235
15,672
42,552
38 451
47,522
35,401
48,924
991
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug.
27,1920—Continued.
LIABILITIES.
[In thousands of dollars.]
Boston.
Capital, paid-in:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Surplus fund:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Government
deposits:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Due to members—
reserve account:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Deferred availability items:
July 30
Aug. 6
Aug. 13
Aug 20
Aug. 27
Other deposits, including foreign
government credits:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
'Totalgross deposits:
July 30.
Aug. 6.
Aug. 13
Aug. 20
Aug. 27
Federal
Reserve
notes in circulation:
July 30
Aug. 6
Aug. 13
Aug. 2 0 . . . .
Aug. 27
Federal
Reserve
Bank notes in circulation:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
All other liabilities:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
-Total liabilities:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
,
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta. Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
San
Francisco.
Total.
4,876
4,878
5,097
5,101
5,129
3,855
3,864
3,865
3,875
3,888
13,495
13,550
13,555
13,549
13,685
4,270
4,272
4,272
4,275
4,297
3,299
3,311
3,322
3,328
3,329
4,319
4,322
4,322
4,345
4,408
3,913
3,924
3,929
3,933
3,936
6,467
6,476
6,783
6,784
6,819
95,225
95,341
96,551
96,759
97,055
13,069
13,069
13,069
13,069
13,069
10,162
10.166
10.167
10,246
10,249
13,712
13,712
13,712
13,712
13,712
8,067
8,067
8,067
8,067
8,067
7,050
7,050
7,050
7,050
7,050
23,917
23,917
23,917
23,917
23,917
5,884
5,884
5,884
5,884
5,884
5,178
5,178
5,178
5,178
5,178
8,395
8,395
8,395
8,395
8,395
4,152
4,152
4,152
4,152
4,152
11,662
11,662
11,662
11,662
11,662
164,745
164,745
164,745
164,745
164,745
410
10,014
3,127
19,089
20,139
748
1,039
1,106
2,444
2,274
756
316
632
3,125
1,194
843
2,218
687
1,347
1,549
67
1,160
730
1,971
1,272
743
1,064
618
7,086
2,902
2,139
661
833
5,009
2,967
294
533
316
1,747
1,615
2,084
643
736
2,658
2,767
1,564
1,638
1,250
1,755
1,665
1,960
384
1,227
5,028
3,318
12,167
20,780
11,623
54,959
43,510
118,938
117,727
121,109
116,955
118,776
710,488
722,701
727,642
706,633
717,885
104,911
106,997
107,531
104,482
106,384
144,444
142,913
144,941
146,448
147,831
57,772
58,593
57,045
59,185
58,984
50,041
49,757
50,157
49,175
49,319
259,736
258,318
265,708
253,698
262,480
64,246
60,801
64,993
65,446
66,042
47,770
48,174
43,272
42,670
42,420
80,970
79,652
79,799
81,240
78,952
52,925
53,677
53,310
51,855
53,512
115,915
117,488
119,035
115,888
115,917
1,808,156
1,816,798
1,834,542
1,793,675
1,818,502
44,124
43,636
51,144
48,141
41,093
101,075
94,727
113,013
110,143
47,779
46,853
53,127
54,670
48,549
55,950
53,258
63,207
63,953
60,734
40,891
42,416
44,099
45,600
42,921
20,838
20,361
26,429
26,431
22,755
63,970
64,987
72,184
71,532
65,789
37,092
44,902
39,542
40,557
36,075
17,502
18,419
19,205
18,597
17,306
55,678
67,966
59,351
53,722
52,087
27,558
24,836
28,347
28,238
26,542
24,233
27,417
29,749
29,510
29,874
536,690
549,778
599,397
591,094
542,564
2,230
3,386
4,311
3,053
2,158
26,024
21,340
21,895
21,409
20,692
2,743
2,773
3,114
2,819
3,016
2,328
2,416
2,408
2,277
2,305
1,368
1,350
1,405
1,479
1,462
1,139
1,055
1,094
1,099
1,032
3,891
3,808
3,635
3,898
4,029
1,538
1,676
1,600
1 641
1,566
965
941
961
928
917
1,438
1,471
1,506
1,396
1,487
6,794
3,716
3,301
3,982
3,621
51,296
44,821
46,090
44,828
43,180
165,851
165,859
176,925
171,849
163,875
837,997
848,782
865,677
857,274
857,555
156,181
157,662
164,878
164,415
160,223
203,478 100,874
198,903 104,577
211,188 103,236
215,803 107,611
212,064 104,916
72,085
72,333
78,410
78,676
74,378
328,340
328,177
342,145
336,214
335,200
105,015
108,040
106,968
112,653
106,650
66,531
68,067
63,754
63,942
62,258
140,170
149,732
141,392
139,016
135,293
82,885
81,040
83,767
82,695
82,614
148,902
149,005
153,312
154,408
152,730
2,408,309
2,432,177
2,491,652
2,484,556
2,447,756
284,842
289,872
292,189
294,550
296,131
849,589
852,369
852,695
854,295
854,925
254,445
255,765
262,309
262,239
268,028
315,526
314,771
326,617
322,899
334,884
125,214
128,224
132,342
132,692
133,969
139,277
140,787
140,707
139,548
142,426
533,589 126,517
537,951 128,214
538,278 128,262
541,649 128,584
543,929 128,316
76,374
76,052
75,799
75,849
75,901
98,887
100,454
101,832
103,655
103,780
79,192
79,509
79,202
79,494
79,415
236,686
237,893
238,949
239,271
241,933
3,120,138
3,141,861
3,169,181
3,174,725
3,203,637
13,894
14,297
14,875
15,462
16,065
35,958
35,360
35,393
35,267
34,790
19,277
19,465
19,835
19,902
20,005
18,478
18,675
19,186
19,784
20,006
10,455
10,572
10,688
10,866
10,876
11,496
11,805
11,901
12,123
12,109
33,355
34,312
34,704
35,100
35,378
8,557
8,776
8,864
9,317
9,650
7,807
7,720
7,802
7,808
7,844
15,019
15,486
15,395
15,128
15,510
7,098
7,278
7,199
7,065
7,065
10,780
11,088
11,070
10,741
11,495
192,168
194,834
196,912
198,563
200,793
2,092
2,257
2,444
2,750
2,933
26,773
27,883
29,134
30,609
31,833
2,162
2,356
2,462
2,666
2,848
2,451
2,780
2,999
3,261
3,592
1,249
1,363
1,489
1,703
1,704
1,469
1,608
1,742
1,864
1,924
6,988
7,125
7,681
8,431
8,815
1,597
1,758
1,810
2,017
2,122
1,431
1,506
1,538
1,658
1,718
1,927
2,081
2,042
2,132
2,219
1,460
1,496
1,502
1,583
1,661
2,585
2,799
2,952
3,198
3,416
52,184
55,012
57,795
61,872
64,785
486,616 1,826,304 453,438
492,222 1,840,382 456,629
506,373 1,859,545 470,865
504,551 1,854,089 470,689
1,855,747 472,572
563,807
559,007
583,869
585, 705
594,507
250,735
257,681
260,919
266,040
264,661
235,226
237,447
243,675
243,136
241,775
939,684
945,032
960,280
958,860
960,924
251,840
256,944
256,060
262,730
256,919
160,620
161,834
157,393
157,763
156,228
268,717
280,470
273,378
272,671
269,605
178,700
177,399
179,751
178,922
178,843
417,082
418,923
424,728
426,064
428,055
6,032,769
6,083,970
6,176,836
6,181,220
178,771
7,586
7,586
7,589
7,589
7,580
24,679
24,680
25,338
25,336
25;336
12,351
12,351
12,351
12,351
12,351
51,308
51,308
51,308
51,308
51,308
559
1,110
361
3,700
1,848
8,304 |
8,312 !
8,312
8,398
8,399
847
992
FEDERAL RESERVE BULLETIN".
SEPTEMBER,
1920.
Resources and liabilities of each Federal Reserve Bank at close of business on Fridays, July 30 to Aug. 27,1920—Continued.
LIABILITIES—Continued.
[In thousands of dollars.]
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond. Atlanta. Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
23,133
24,924
24,667
24,720
25,000
21,607
28,183
25,209
32,723
31,963
30,607
31,904
20,941
27,628
32,434
13,738
12,226
10,073
17,197
20,347
22,902
25,756
23,534
17,640
22,247
26,716
27,889
30,375
31,278
34,540
784
784
784
784
784
576
576
576
576
576
752
752
752
752
752
432
432
432
432
432
768
768
768
768
768
416
416
416
416
416
Sari
Francisco.
Total.
MEMORANDA.
Contingent liability
as indorser on discounted paper rediscounted with
other Federal Reserve Banks:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Contingent liability
on bills purchased for foreign
correspondents:
July 30
Aug. 6
•_
Aug. 13
Aug. 20
Aug. 27
1,168
1,168
1,168
1,168
1,168
6,092
6,093
6,083
6,083
6,077
1,280
1,280
1,280
1,280
1,280
1,312
1,312
1,312
1,312
1,312
1,904
1,904
1,904
1,904
1,904
138,703
150,882
134,799
151,186
166,531
736
736
736
736
736
16,220
16,221
16,211
16,211
16,205
Maturities of bills discounted and bought, also of Treasury certificates of indebtedness.
[In thousands of dollars.]
Within 15
days.
W'i« discounted:
>)
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Bills bought:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
United States certificates of indebtedness:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
16 to 30
days.
31 to 60
days.
61 to 90
days.
1,464,290
1,529,341
1,519,969
1,515,379
1,581,792
225,623
189,930
189,632
219,669
247,986
426,928
434,400
458,770
511,330
491,886
304,257
342,326
334,405
332,684
301,240
99,100
114,800
114,917
112,734
110,768
86,034
69,882
71,014
70,815
79,865
129,544
122,345
105,155
110,891
105,240
30,627
32,363
29,532
26,157
26,09.2
42,325
17,967
27,340
25,538
27,325
12,000
12,900
16,700
19,483
15,441
27,430
37,738
38,102
28,524
34,431
28,144
40,273
25,503
16,908
11,002
Over 90
days.
70,532
53,836
56,230
40,367
44,223
Total.
2,491,630
2,549,833
2,589,006
2,619,429
2,667,127
345,305
339,390
320,618
320,597
321,965
188,621
162,612
170,191
186,705
185,502
298,520
271,490
277,836
277,158
273,701
SEPTEMBER, 1920.
993
FEDERAL RESERVE BULLETIN.
FEDERAL RESERVE NOTES.
Federal Reserve agents' accounts at close of business on Fridays, July 30 to Aug. 27, 1920.
[In thousands of dollars.]
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond. Atlanta. Chicago.
St.
Louis.
Minne- Kansas
apolis.
City.
Dallas.
San
Francisco.
Total.
RESOURCES.
Federal
Reserve
notes on hand:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug. 27
Federal
Reserve
notes outstanding:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug.27
Collateral security
for Federal Reserve notes outstanding:
Gold and gold
certificates—
July 30....
Aug. 6 . . . .
Aug. 1 3 . . .
Aug. 20...
Aug.27....
Gold redemption fund—
July 30
Aug. 6
Aug. 1 3 . . . .
Aug. 20
Aug.27
Gold settlement
fund—Federal Reserve
BoardJuly 30
Aug. 6
Aug. 1 3 . . . .
Aug. 2 0 . . . .
Aug.27....
Eligible paperAmount requiredJuly 30.
Aug. 6.
Aug. 13.
Aug. 20.
Aug. 27.
Excess
amount
held—
July 30.
Aug. 6..
Aug. 13.
Aug. 20.
Aug. 27.
Total resources:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug.27
49,300
43,300
42,000
52,400
53,660
135,000
135,000
135,000
135,000
141,000
28,780
22,780
24,940
24,940
30,940
31,150
30,750
27,725
30,325
26,565
27,313
26,714
24,974
25,088
27,348
68,520
68,165
71,205
70,435
70,515
75,740
66,140
73,900
72,200
71,720
18,240
17,040
16,440
15,640
16,640
11,395
11,095
10,455
9,675
8,975
6,450
5,640
5,280
4,880
6,880
12,350
12,110
11,020
13,200
13,010
295,953
299,841
303,252
304,317
305,679
981,658
974,670
971,932
968,934
972,767
265,305
269,335
270,334
279,710
277,707
331,711
330,870
338,224
345,545
349,866
131,481
133,928
138,296
137,648
137,773
143,037
146,695
145,582
145,223
146,693
592,052
599,764
596,498
594,721
593,521
144,923
145,279
146,967
146,301
145,481
78,095
77,240
77,145
77,040
77,013
105,409
105,983
107,704
109,925
109,295
82,729
83,157
83,305
82,572
82,826
900
900
900
900
900
196,608
196,608
196,608
196,608
196,608
3,810
3,810
3,810
3,810
3,810
13,052
13,052
13,052
13,052
13,052
18,966
16,854
19,965
23,430
21,492
9,531
18,936
18,034
17,518
16,342
117,000
117,000
112,000
106,000
106,000
2,500
2,500
2,500
2,500
2,500
32,025
32,025
32,025
32,025
32,025
080
080
, 080
6,080
6,080
469,318
443,814
448,019
459,863
473,333
273,435
271,738
271,730
270,939
273,110
3,425,788
3,438,500
3,450,969
3,462,875
3,471,731
5
10,331
10,331
11,331
11,331
11,331
259,226
259,226
260,226
260,226
260,226
14,308
17,338
15,138
17,514
15,510
19,448
16,608
17,236
18,957
18,719
4,061
2,508
3,876
1,843
3,268
3,218
5,220
3,688
2,558
3,609
9,992
9,384
8,679
9,482
8,922
3,378
2,934
3,163
3,096
2,896
1,557
2,052
1,917
1,832
1,805
3,342
2,507
3,387
2,208
2,718
4,095
5,283
6,340
4,867
5,932
19,737
18,160
16,520
14,949
13,318
111,633
117,784
117,943
118,254
114,531
73,000 91,389
63,000 86,389
63,000 86,389
63,000 91,389
63,000 101,389
100,000
100,000
100,000
100,000
100,000
33,500
41,500
38,500
42,500
39,500
41,500
40,000
43,500
43,500
42,000
147,145
145,145
166,144
161,144
157,145
37,531
39,031
37,330
38,431
38,831
16,700
15,800
15,950
16,100
16,200
31,860
35,360
34,360
35,360
35,360
12,734
10,734
10,734
10,734
8,734
80,494
79,374
78,486
77,626
71,768
782,853
773,333
786,393
785,784
779,927
434,915 100,204
445,235 99,504
421,675 102,664
424,095 100,964
427,454 99,944
46,786
46,336
46,226
46,056
45,956
70,207
68,116
09,957
72,357
71,217
55,569
56,809
54,900
55,640
56,829
173,204
174,204
176,724
178,364
188,024
2,272,076
2,288,157
2,286,407
2,298,611
2,317,047
159,087
165,087
170,387
173,987
177,287
702,519
696,126
694,290
691,808
696,817
159,608
165,608
168,807
170.807
160.808
180,238
182,237
188,963
194,563
199,122
93,920
89,920
95,920
93,305
95,005
95,819
98,975
95,894
96,665
98,584
19,395
23,583
16,163
34,053
28,375
259,995
263,734
286,145
271,664
291,854
1,581
6,381
2,438
1,220
4,511
27,785
38,003
33,877
39,416
62,465
14,925
19,697
4,319
17,036
11,072
21,836
20,392
24,508
20,164
22,484
49,210
35,131
55,175
61,574
52,099
10,024
12,101
11,171
16,245
14,575
25,828
26,790
23,665
26,105
18,653
42,005
44,887
31,640
41,184
42,386
17,164
17,542
17,031
17,694
17,374
15,257
22,088
13,412
15,522
14,061
505,005
530,329
519,544
561,877
579,909
660,601
666,565
664,667
695,087
693,393
2,358,311
2,348,074
2,365,009
2,344,532
2,378,388
560,971
567,831
568,046
585,580
590,865
722,357 305,200 376,430
730,493 314,267 381,947
738,050 305,885 386,877
760,831 317,420 381,045
788,762 313,966 386,385
1,309,054
1,300,799
1,322,071
1,323,216
1,310,861
318,110
319,699
321,545
324,487
322,177
193,413
192,365
188,410
189,860
181,654
259,273
262,493
252,328
265,914
267,856
194,972
195,966
194,661
196,038
196,036
567,207
570,644
561,952
563,480
566,361
7,825,899
7,851,143
7,869,501
7,947,490
7,996,704
615,700
615,700
619,700
633,700
638,260
2,238,960
2,238,960
2,245,060
2,245,060
2,257,760
605,880
605,880
611,240
623,240
629,24C
623,220
624,820
631,520
643,720
546,520
342,500
345,900
350,160
351,660
355,620
357,420
361.720
365;680
365,680
369,680
1,094,880
1,095,600
1,104,800
1,105,520
1,108,400
345,360 169,580 235,480
346,960 169,580 236,080
349,820 169,580 238,560
350,420 169,580 241,560
352,800 169,580 244,420
170,980
171,988
171,980
174,900
175,900
476,580
477,580
480,100
482,740
487,400
7,276,540
7,290,760
7,338,200
7,387,780
7,435,580
270,447
272,559
274,448
276,983
278,921
1,122,302
1,129,290
1,138,128
1,141,126
1,143,993
311,795
313,765
315,966
318,590
320,593
260,359
263,200
265,571
267,850
270,089
183,706 145,863
185,258 146,860
186,890 148,893
188,924 150,022
190,499 152,472
427,088
429,696
434,402
438,599
443,159
123,621
124,457
125,576
126,755
128,245
75,901
76,713
77,655
79,128
80.064
198,065
200,762
203,290
205,721
208,210
3,381,434
3,408,446
3,439,212
3,465,042
3,490,516
LIABILITIES.
Federal Reserve
notes received
from C o m p troller—gross:
July 30
Aug. 6
Aug. 13
Aug. 20
_ Aug.27
Less amounts returned for destruction:
July 30
Aug. 6
Aug. 13
Aug. 20
Aug.27
182,197
184,641
186,413
188,479
190,679
80,090
81,245
81,980
82,865
83,592
994
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Federal Reserve agents' accounts at close of business on Fridays, July 30 to Aug. 27, 1920—Continued.
[In thousands of dollars.]
San
Francisco.
Boston.
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta. Chicago.
St.
Louis.
Minneapolis.
Kansas
City.
Dallas.
345 253
343, 141
345' 252
356, 717
359 J 33fl
1,116,658
1,109,670
L, 106,932
1,103,934
1,113,767
294 085
292,115
295'274
304,650
308^ 647
362,861
361,620
365,949
375,870
376,431
158,794
160,642
163,270
162,736
165,121
211,557
214,860
216,787
215 658
217,208
667,792
665,904
670,398
666,921
665,241
163,163
162 319
163, 407
161 941
162, 121
89 490
88,335
87'600
86,715
85^988
I l l 859
111 623
984
114 805
175
95, 079
95 267
94' 325
95' 772
95^ 836
278,515
895,106
276 ^ 818 3' 882' 314
276* 810 3' 898^ 988
277 019 3' 922' 738
279^190
945 \ 064
July 30
Aug. 6
Aug. 13
AHig. 2 0 . . . .
Aug. 2 7 . . . .
Eligible p a p e r July 30
Aug. 6
Aug. 13
Aug. 20
m Aug._27
136, 866
134, 754
132, 865
130, 330
128,392
279,139
278,544
277,642
277,126
275,950
105,697
103,727
101,527
108,903
116,899
151,473
148,633
149,261
150,982
150,744
37,561
44,008
42,376
44,343
42,768
47,218
47,720
49,688
48,558
48,109
157,137
154,529
174,823
170,626
166,067
44, 719
45,775
44, 303
45, 337
45, 537
31,309
30,904
30,919
30,984
31,057
35 202
37,867
37 747
37,568
38,078
27, 160
26, 348
28, 405
26,932
25, 997
100,231
97,534
95,006
92,575
85,086
1, 153,712
1, 150,343
1, 164,562
1, 164,264
1, 154,684
178, 482
188,670
186, 550
208, 040
205, 662
962,514
959,860
980,435
963,472
988,671
161,189
171,989
171,245
172,027
165,319
208,023
220,240
222,840
233,979
261,587
108,845
109,617
100,239
110,341
106,077
117,655
119,367
120,402
116,829
121,068
484,125
480,366
476,850
485,669
479,553
110,228
111, 605
113, 835
117, 209
114, 519
72,614
73,126
69,891
72,161
64,609
212
003
597
541
603
72, 733
74, 351
71, 931
73, 334
74, 203
188,461
196,292
190,136
193,886
202,085
2, 777,081
2, 818,486
2, 805,951
2, 860,488
2,896;956
July 30. .
Aug. 6
Aug. 13
Aug. 20
Aug. 27
6CC 60"
666', 565
664, 667
695, 087
693, 393
2,358,311
2,348,074
2,365,009
2 344 532
2,378,388
560,971
567,831
568,046
585 580
590,865
722,357
730,493
738,050
760 831
788,762
305,200
314,267
305,885
317,420
313,966
376,430
381,947
386,877
381,045
386,385
1,309,054
1,300,799
1,322,071
1,323,216
1,310,861
318, 110
319, 699
321, 545
324, 487
322,177
193,413
192,365
188,410
189 860
181,654
259 273
262 493
252.328
265 914
267 856
194, 972
195, 966
194, 661
196, 038
196, 036
567,207
570,644
561,952
563 480
566,361
7, 825.899
7, 851.143
7, 869,501
7 947,490
7, 996,704
Total.
LIABILITIES—COn.
Net amount of Federal Reserve notes
received from
Comptroller of the
Currency:
July 30
Aug 6
Aug. 13
Aug. 20
Aug. 27
Collateral received
from Federal Reserve Bank:
Gold-
112
113
101
113
113
SEPTEMBEH, 1920.
FEDERAL RESERVE BULLETIN.
995
CONDITION OF MEMBER BANKS IN LEADING CITIES.
changes in their holdings of Government war
securities proper. Loans secured by Government war obligations followed a steady downward course, the August 20 total of 959 millions
being about 41 millions below the total reported
five weeks previous. Most of this reduction is
reported by the banks located outside of New
York City, the corresponding reduction for the
New York City banks being about 15 millions.
Loans protected by corporate securities carried
on August 20 are given as 3,006 millions, or 41
millions below the July 16 total. For the New
York banks a slightly larger reduction of this
item, from 1,135 to 1,088 millions, may be noted.
Resources and liabilities of member banks in leading cities
All other loans and investments, comprising
from July 16 to Aug. 20, 1920.
largely commercial loans and discounts, show
[In millions of dollars.]
an increase for the period of 66 millions, with the
consequence that the total loan and investment
July July July Aug. Aug. Aug.
account at the close of the period—16,883
16.
23. 30. 6.
13. 20.
millions—is 51 millions less than at the begin877 874
876 876 ning of the period under reviewUnited States bonds
For the New
194
194
190 189
193
184
United States Victory notes
York
City
banks
an
increase
of
38
millions in
United States certificates of in473 462 434
401
444 other loans and investments and a reduction of
debtness
Total United States secu63 millions in total loans and investments are
1,544 1,530 1,503 1,468 1,460 1,509
rities owned
shown. The ratio of combined holdings of
Loans secured by Government
war obligations, including reUnited States war securities and loans supdiscounts with Federal Re1,000
serve Bank
973 964 959 ported by such securities to total loans and
Loans secured by corporate
3,047 3,060 3,060 3,011
stocks and bonds
3,006 investments of reporting banks shows a further
All other loans and investments,
decline from 13.4 to about 13 per cent. In
including rediscounts with
11,343 11,329 11,338 11,360 11,407 11,409 New York City, because of the relatively
Federal Reserve Bank
Total loans and investheavier liquidation of United States securities
ments, including redisduring the period, this ratio shows a decline
counts with Federal Reserve Bank
16,934 16,90116,883 16,812 16,829 16,883 from 17.4 to 16.7 per cent.
Reserve balances with Federal
1,422 1,388 1,369 1,375 1,392 1,363
Reserve Banks
After a practically continuous decline to 67
Cash in vault
368 361 355 360 355 352
11,552 11,427 11,399 11,312 11,392 11,256 millions on August 13, Government deposits,
Net demand deposits
Time deposits
2,715 2,706 2,722 2,727 2,724
Government deposits
67
115
145 following the placing of the August 16 Treasury
122
74
Bills discounted and rediscertificate issue, rose to 145 millions, an increase
counted with Federal Reserve
Banks:
of 23 millions for the period. On the other
1,990 1,953 1,973 2,022 2,050
Total...
hand, other demand deposits (net) show a
Secured by Government war
984
obligations
972
1,003 1,018 1,024 reduction to 11,256 millions, or of 296 millions,
Allother
1,006
1,019 1,032 1,062
while time deposits increased from 2,698 to
2,724 millions. For the New York City banks
On August 16 the Treasury issued over 157 decreases of 9 millions in Government deposits
millions of 1-year 6 per cent loan certificates, and of 199 millions in other demand deposits
with the consequence that there is shown are shown, as against an increase of about 6
on the following Friday a 50 million dollar millions in time deposits.
increase in the total Treasury certificate holdTotal accommodation of reporting members
ings of the reporting banks, as against a 79 at Federal Reserve Banks, as shown on the books
million reduction in these holdings during the of the latter, fluctuated between 1,953 millions
four previous weeks. Both Liberty bond and on July 23 and 2,086 millions on August 20,
Victory note holdings show but slight and, the latter total marking an increase of 96
on the whole, downward changes. A similar millions over the total reported at the begindevelopment is noted for the member banks ning of the period. Of the larger amount
in New York City, which report for the first slightly less than 50 per cent was represented
4 weeks a gradual reduction of their certificate by loans secured by Government war obligaholdings by over 55 millions, as against an addi- tions, including Treasury certificates. The
tion to these holdings during the week ending ratio of total accommodation at the Federal
August 20 of over 16 millions, and but slight Reserve Banks to total loans and investments
Continued, though moderate, liquidation of
Government war securities and of principal
loan accounts, accompanied by a considerably
larger reduction in individual deposits, are
some of the main developments in the banking field during the period July 16 to August
20, as indicated by the weekly condition reports of about 815 member banks in leading
cities. Borrowings from the Federal Reserve
Banks during August show a substantial increase. A summary of changes in the principal asset and liability items of these banks
follows:
996
FEDERAL RESERVE BULLETIN.
of reporting banks, which measures in a way
the extent to which the loan burden of the
member banks is shifted to the reserve institutions, shows an almost continuous rise from
11.8 to 12.4 per cent. For the New York City
banks an increase in this ratio from 12.1 to 13.6
per cent is shown, corresponding to an increase
of 80.8 millions in their borrowings from the
local Federal Reserve Bank.
SEPTEMBER, 1920.
Reserve balances fluctuated in general accord with changes in demand deposits, and
on August 20 totaled 1,363 millions, a reduction of 59 millions since July 16. Cash in
vault shows a slight decline from 368 to 352
millions. For the New York City banks
decreases of 46 millions in reserve balances
and of about 10 millions in cash in vault are
shown.
Principal resources and liabilities of member banks in leading cities, including member bants located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20, 1920.
1. ALL REPORTING MEMBER BANKS.
[In thousands of dollars.)
Boston.
Number of reporting
banks:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
United States bonds to
secure circulation:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Other United States
bonds, i n c l u d i n g
Liberty bonds:
July 23
July 30
Aug. 6
:
Aug. 13
|
Aug. 20
!
United States Victory
notes:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
United States certificates of indebtedness:
July 23
July 30
Aug.6
Aug. 13
Aug. 20
Total United States
securities owned:
July 23
July 30
Aug.6
Aug. 13
Aug. 20
Loans secured by Government war obligations, including rediscounts with Federal Reserve Bank:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Loans secured by stocks
and bonds, other
than United States
securities:
July 23
July30
Aug.6
"...
Aug. 13
Aug. 20
All other loans and investments, including
rediscounts with Federal Reserve Bank:
July 23
July 30
Aug.6
Aug. 13
Aug. 20
New
York.
Philadelphia.
Cleveland.
Richmond.
Atlanta.
m,;«-.,r~
Chicago.
»i.
St.
iviinne- Kansas
San FranMinneCity. Dallas. cisco.
Louis_
apoliSi
107
107
107
107
106
114
114
114
114
114
Total.
68
814
814
815
818
818
32,535
32, 535
32,535
32,535
32,635
268,260
268,368
268, 423
268,532
268, 735
63,245
63,770
63,628
64,311
62,563
606,123
607,595
614,681
607,682
607,127
12. 311
12,311
12,311
12,311
12, 311
46, 659
46,657
46, 582
46, 723
46,750
11,347
11,347
11,347
11,347
11,347
42,095
42,095
42,095
42,134
42,135
28,352
28,350
28, 483
28,483
14,235
14,310
14,310
14,235
14,285
21,549
21,549
21.549
21.550
21,550
16, 925
I 16,924
! 16,924
16,924
16, 924
7, 321
7,321
7,318
7,321
7,321
15,358
15,396
15,396
15,396
15,421
14,060
14,214
15,148
15, 248
15, 399
251,008
254. 792
259; 899
255,003
254.009
29,026
29,150
29,498
30,371
28,906
59,400
58, 982
59,595
59,174
59,616
33,782
33, 851
33,672
33, 634
33,70^
28,197
28,918
28,470
28,444
28,563
59, 614
56,865
56,607
54,771
55, 621
12,971
12,260
13,110
13, 295
13,318
9,857
9,676
9,801
9,721
9,761
23,569 21, 394
23,458 , 21,659
23,812 ' 21,441
~ '"
22,499 21,211
24355 21,307
24,355
7,070
6,9S1
6,084
6^072
6,071
83,084
82, 781
75,021
81, 226
80,287
9,047
9,014
9,011
9,366
19, 228
19,407
19, 486
19,526
19,408
7,658
7,391
7,759
7,766
7,667
4,282
4,317
4, 400
4,429
4,453
39,996
39,747
38,987
38, 985
38,516
2,652
2,689
2,649
2, 675
2,731
1,010
997
882
1,016
1,039
4,513
4,579
4,504
4,299
4,523
3,428
3,194
3,321
3,146
3,160
11,733
12,021
11,928
12,113
12, 502
193, 701
193,118
184, 032
190,619
189, 244
23, 453
21, 332
19,778
19,246
25,749
254,340
231,437
211,873
207,286
225, 814
26,600
25,325
23,971
22,406
24,636
24,013
22,301
20,995
20,931
25,195
11,844
12,171
11,514
11,549
12,327
8.694
9', 404
9,203
9,509
11,068
61, 787
59,753
54, 261
53', 572
65,135
5,726
6,398
5,126
5,036
5,827
3,118
2,878
2,730
2,693
2,812
11,300
10,435
9,980
9,957
9,221
4,801
5,378
5,315
5.298
6,090
26, 423
27,146
26, 479
26,161
29,579
462.099
433; 958
401,225
393,644
443,453
56,894
54,838
53,321
52,877
59,530
635,091
615,667
593, 375
590,238
606,860
76,020
74,836
73, 827
73,490
73,776
144,736
142,785
142,171
141,765
146,354
81,636
81, 763
81,428
81,432
82,186
55,408
56,949
56.383
56,617
58,369
182,946
177,914
171,404
168,878
180,822
38,274
38,271
37,809
37,930
38,800
21, 306
20,872
20,731
20,751
20,933
54,740 49,196
53,868 49,804
53,692 49,650
52,151 49, 228
53,520 50,130
133,936
135,472
134,570
135,120
137,279
1,530,183
1,503,039
1,468, 361
1,460,477
1,508,559
52,289
52,509
51,593
51,912
49,092
471,919
478,315 89,805
472,975 89,444
461,254 88,414
469,132 88,123
74,746 32,940 28,443
75,376 32,433 28,368
75,294 32,050 28,966
75,981 32,069 28,674
75,513 31,866 28,509
109,723
101,810
101,418
104,461
97,351
35,376
34,983
33,593
33,534
32,836
16,499
16,765
16,760
16,808
16,474
26,517
25,656
25,873
26,842
27,197
10,207
9,975
9,995
10,099
9,935
33,249
35,977
35,198
33,911
33,327
981,714
981,972
973,159
963,959
959,355
186,993
194,430
183,663
180,831
185,047
!1,300,528 200,772
1,284,542 203,814
1,246,203 201,617
,' 1,240,314205,039
jl,240,843 212,127
329,606
326,700
329,823
324,302
323,263
106,439 60,951
107,443 60,610
107,318 60,560
107,267 60,315
106,931 60,231
458,08.1
461,995
458,343
456,533
458,438
122,563 29,425
127,175 30,583
126,642 30,918
125,744 30,428
126,819 30,380
79,948
79,664
80,198
79,734
80,050
39,233
38,729
39,237
38,782
38,902
785,961
785,210
791,627
799,137
799,538
4,003,-241
14,005,139
14,021,071
14,066,381
14,035,214
568,550
571,493
580,620
589,761
596,597
936,021
943,058
952,989
951,549
952,680
392,844
392,551
393,321
390,966
393,093
420,057
423,755
417,193
409,635
426,085
1,768,490
1,766,344
1,765,365
1,774,288
1,772,547
509,638
511,596
512,983
512,679
514,704
249,995
252,736
254,137
253,922
253,383
414,373
408,965
411,289
410,891
413,781
283,452
i285,971
|284,154
279,296
279,369
19, 573
19, 573
19,573
19,573
19,573
145,259 3,059,798
144,634 3,060,319
146,511 3,011.063
148,300 2,997,589
142,690 3,005,721
996,415
991,124
975,468
968,361
971,914
11,329,037
11,337,942
11,360,217
11,406,866
11,408,905
997
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20, 1920—Contd.
1. ALL REPORTING MEMBER BANKS—Continued.
[In thousands of dollars.]
Boston.
Total loans and investments, including rediscounts with Federal Reserve Bank:
July 23
1,082,137
July 30
1,086,987
Aug. 6
1,080,204
Aug. 13
ll, 084,757
Aug. 20
11,093,207
Reserve balances with
F e d e r a l Reserve
Bank:
July23
85,622
July 30
83,029
Aug. 6
80,845
Aug. 13
83,653
Aug. 20
79,942
Cash in vault:
July23
23,973
JulySO
22,406
Aug. 6
23,876
Aug. 13
23,567
Aug. 20
24,292
Net demand deposits
on which reserve is
computed:
July23
835,041
July 30
832,429
Aug.6
824,478
Aug. 13
837,274
Aug. 20
817,044
Time deposits:
July 23
140,044
July 30
140,322
Aug.6
140.421
Aug. 13
140,940
Aug.20
140,909
Government deposits:
July 23
8,204
July 30
6,646
Aug.6
4,247
Aug. 13
3,800
Aug. 20
12,931
Bills payable with Federal Reserve Bank:
Secured by United
States war obligationsJuly 23
19,631
July 30
22, 619
Aug.6
24,946
Aug. 13
23,476
Aug. 20
33,452
All o t h e r July 23
July 30
Aug.6
Aug. 13
Aug. 20
Bills rediscounted with
Federal Reserve
Bank:
Secured by United
States war obligationsJuly 23
21,019
July 30
20,130
Aug.6
18,504
Aug. 13
19,437
Aug.20
17,936
All other—
July23
45,789
July 30
37,918
Aug. 6
37,781
Aug. 13
40,272
Aug.20
46,463
New
York.
Philadelphia-
Cleveland.
Richmond.
6,410,779
6,383,663
6,333,624
6,358,187
6,352,049
935,148
939,948
945,538
956,704
970,623
1,485,109
1,487,919
1,500,277
1,493,597
1,497,810
613,859
614,190
614,117
611,734
614,076
655,454
647,267
657,713
665,957
647,564
69,250
66,331
69,446
69,325
65,996
118,478
115,403
119,007
115,456
110,851
16,343
15,741
15,779
16,921
16,920
33,879
32,789
32,729
30,924
32,460
5,165,557
5,170,254
5,096,475
5,078,627
5,025,971
675,638
666,861
683,699
688,348
690,632
424,107
426,606
429,595
435,537
435,650
AtSt.
Minne- Kansas
San Fran- Total.
lanta. Chicago. Louis. apolis. City. Dallas.
670,843
670,784
672,746
671,406
675,471
1348,631
351,244
j353,019
352,031
352,350
1,308,859
1,307,207
1,291,747
1,285,692
1,285,210
16,900,731
16,883,272
16,812,800
16,828,891
16,882,540
21,842 47,618
21,328 44,044
20,923 44,338
17,431 42,401
20,393 44,811
25,133
24,570
24,476
24,611
24,647
81,660
84,567
79,877
83,220
81,949
1,388,021
1,368,659
1,374,806
1,392,231
1,362,501
10,479
9,180
9,528
9.317
9,236
14,894
14,919
14,246
14,177
14,342
10,529
11,900
11,982
11,831
11,438
28,024
27,933
27,685
28,652
27,712
360,887
354,749
360,179
354,506
352,058
319,459
318,248
318,020
330,212
322,082
213,172
1209,915
210,097
213,065
205,386
416,012
412,461
408,675
430,113
425,163
224,770
219,866
1223,014
!228,156
225,091
636,544
632,024
627,179
637,789
632,157
11,427,101
11,398,838
11,311,744
11,391,785
11,255,922
107.079 151,276
107,401 150,324
625,004
624,945
627,257
627,814
625,901
124,118
124,364
124,764
124,767
124,263
63,956
64,102
63,846
63,906
64,081
109,281 54,339
96,631 54,161
96,940 54,245
96,641 54,635
97,639 54,968
520,439
519,826
521,521
520,029
518,407
2,715,438
2,705,852
2,721,624
2,727,482
2,723,828
820
442
583
2,600
1,727
1,501
1,039
724
3,065
12,135
9,798
6,262
5,646
14,703
3,461
2,747
1,750
1,564
3,609
138
245
157
141
689
461
371
235
216
1,416
6,603
4,510
4,107
7,859
142,276
115,287
74,146
66,733
145,274
30,729
26,293
25,935
35,210
33,074
33,810
35,142
36,540
37,090
36,863
32,362
32,602
33,308
32,572
34,146
99,223
98,588
98,995
92, 044
97,992
16,851
17,156
17,523
17,555
18,077
24,921
26,064
24,965
27,787
27,273
713,402
708,812
744,369
757,716
756,186
36
36
36
36
142
150
495
536
641
869
185
85
360
235
85
4,163
2,122
1,197
1,462
1,848
125,745 47,308
126,074 46,765
133,974 44, 863
133,977 44,150
140,523 46,784
12,343
12,733
10,146
12,306
12,154
4,937
4,436
4,264
3,759
3,906
6,801
6,761
7,134
7,119
7,349
16,635
15,876
15,335
18,187
17,799
2,515
3,214
4,276
2,803
2,760
258,533
256,863
258,446
260,422
268,399
269,421
283,117
282,754
326,741
324,565
47,160
42,834
49,431
45,476
43,063
37,510 52,650
38,355 56,105
38,164 60,990
37,046 58,331
37,616 63,228
241,988
245,733
242,511
238,318
240,698
564,859
569,682
563,102
555,241
573,194
519,240
508,063
496,530
504,160
509,158
610,586
609,394
609,333
608,099
612,236
99,994 36,284 32,298
100,035 35,387 30,988
100,846 37,712 32,181
101,396 35,654 31,215
100,327 37,102 31,395
191,670
189,558
187,994
196,230
186,162
41,196
41,555
38,455
41,138
42,213
16,952
16,546
16,505
16,229
16,027
12,871
13,205
13,167
12,947
13,278
65,057
65.632
66;097
65,095
66,190
9,408
9,095
9,578
9,390
9,312
914,964
918,246
914,096
914,849
921,699
343,827
342,066
343,554
343,807
338.078
265,752
263,534
263,330
266,121
264,672
1,416,365
1,412,934
1,399,127
1,423,424
1,387,947
33,453
33,290
33,514
36,966
36,993
363,317
364,319
365,892
367,892
367,292
106,739 150,641
106,704 150,582
112,770 150,859
84,466
68, 424
43,704
39,319
71,976
9,222
7,462
4,769
4,291
9,326
7,433
5,952
4,011
3,624
12,160
348,217
336,930
368, 783
385,707
367,980
55,748
59,008
56,376
56,193
53,464
31,647
34,281
32,563
37,620
36,911
350,682
354,191
352,563
347,283
347,156
5,962
4,718
3,020 j
2,718
4,940
20,896 4,685 26,329
21,964 5,471 26,975
21,689 i 4,862 30,447
4,737 24,794
20,551
22,164 , 5,821 25,880
2,388 I
450
450
450
450
85
85
85
85 |
85
15
10,940
10,612
9,321
8,739
2,157
2,506
2,623
2,073
1,821
6,248
6,101
6,212
6,094
6,556
1,885
1,655
1,794
1,778
1,522
70^949
74,737
65,871
75,741
43,900
' 47,801
! 48,784
i 42,300
! 48,981
59,267
61,675
61,219
53,670
57,911
20,146
23,036
23,575
22,587
22,314
977,332
58,865
63,433 1,005,237
65,120 1,017,629
62,182 1,030,414
62,572 1,060,063
998
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20,1920—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES.
[In thousands of dollars.]
Boston.
New
York.
Number of reporting banks:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
United States bonds to secure circulation:
2,281
36,961
July 23
36,961
2,281
July 30
36,886
2,281
Aug. 6
37,026
2,281
Aug. 13
37,053
2,281
Aug. 20
Other United States bonds,
including Liberty bonds:
5,165
218,057
July 23
5,162 221,852
July 30
5,135
226,849
Aug. 6
221,530
5,11G
Aug. 13
220,898
5,110
Aug. 20
United States Victory notes:
328
73,680
July 23
401
73,381
July 30
65,686
341
Aug. 6
71,684
324
Aug. 13
70,949
317
Aug. 20
United States certificates of
indebtedness:
14,135 235,130
July 23
13,032 212,480
July 30
11,671 193,101
Aug. 6
11,196 188,547
Aug. 13
14,631 205,276
Aug. 20
Total United States securities
owned:
563,828
July
._-., 23
- 21,909
544,674
July 30
| 20,876
Aug. 6
1 19,428 522,522
Aug. 13
'
| 18,917
518,787
534,176
Aug.20
22,339
Loans secured by Government war obligations, including rediscounts with
Federal Reserve Bank:
439,555
July 23
43,930
July 30
43,991 445,829
Aug.6
42,891 442,224
430,989
Aug. 13
43,562
Aug.20
40,793 439,493
Loans secured by stocks and
bonds, other than United
States securities:
July 23
141,971 1,146,701
July 30
Aug. 6
Aug. 13
Aug. 20
All other loans and investments, including rediscounts with Federal Reserve Bank:
July 23
July 30.
Aug. 6
Aug. 13
Aug.20
Total loans and investments,
including rediscounts with
Federal Reserve Bank:
July 23
July 30
Aug.6
Aug. 13
Aug. 20
Reserve balances with Federal Reserve Bank:
July 23
July 30
Aug. 6.
Aug. 13.
Aug. 20.
Philadelphia.
Cleve- Richland. mond.
San
St.
Kansas
.tlanta. Chicago. Louis. Minneapolis. City. Dallas. Fran-
- 278
278
279
282
281
7,337
7,337
7,337
7,337
7,337
3,664
3,664
3,664
3,664
3,664
2,782
2,780
2,780
2,780
2,780
3,100
3,100
3,100
3,100
3,100
1,438
1,438
1,438
1,438
1,438
10,295
10,294
10,294
10,294
10,294
2.791
2; 791
2,791
2,791
2,791
4,958
4,996
4,996
4,996
4,996
4,560
4,560
4,560
4,560
4,560
16,550
16,550
16,550
16,550
16,650
96,717
96,752
96,677
96,817
96,944
21,740
21,856
22,234
23,105
21,634
7,499
7,501
7,481
7,575
7,566
4,706
4,683
4,683
4,683
4,683
1,651
1,654
1,536
1,672
1,545
22,412
21,254
20,984
19,143
19,907
4,762
4,067
4,948
4,956
4,879
1,934
1,730
1,878
1,732
1,720
8,205
8,145
8,155
6,519
8,559
5,815
6,019
6,019
6,078
6,095
38,457
38,811
38,813
39,308
37,152
340,403
342,734
348,71&
341,417
339,748
6,428
6,397
6,395
6,825
6,349
2,200
2,240
2,231
2,300
2,248
195
195
195
176
193
186
187
187
200
12,489
12,355
11,642
11,629
11,336
520
548
532
498
547
181
181
101
181
206
2,468
2,450
2,352
2,113
2,400
1,014
812
812
810
817
3,630
4,102
4,048
4,269
4,624
103,319
103,248
94,522
100,996
100,186
24,505
23,239
21,869
20,301
22,429
4,555
4,596
4,343
4,168
4,644
1,245
1,186
1,181
1,147
1,006
1,196
1,221
1,221
1,272
1,221
24,142
23,728
22,510
21,644
22,637
4,376
5,158
3,906
3,790
4,319
655
640
487
507
596
5,949
5,116
4,620
4,597
3,647
1,143
1,691
1,616
1,589
2,332
12,219
13,109
12,869
12,708
14,600
329,250
305,19&
279,394
271,466
297,338
60,010
58,829
57,835
57,568
57,749
17,918
18,001
17,719
17,707
18,122
8,928
8,844
8,839
8,786
8,662
6,133
6,161
6,044
6,231
6,066
60,481
58,775
56,574
53,854
55,318
19,953
20,067
19,680
19,538
20,039
5,561
5,342
5,257
5,211
5,313
21,580 12,532
20,707 13,082
20,123 13,007
18,225 13,037
19,602 13,804
70,856
72,572
72,280
72,835
73,026
847,930
819,308
810,696
834,216
85,251
85,059
85,194
84,220
84,077
20,887
20,637
20,657
20,806
20,543
9,527
9,520
9,214
9,135
9,013
6,281
5,695
5,525
5,147
5,155
72,720
66,144
65,866
67,695
64,124
21,967
21,740
20,493
20,698
19,803
9,264
9,402
9,038
9,071
9,165
11,562
11,507
11,590
12,248
12,156
2,709
2,830
2,646
2,578
2,593
16,477
18,190
17,812
16,197
15,617
740,130
740,544
733,150
722,346
722,532
14,813
14,976
15,195
15,292
15,181
6,428
6,462
6,533
6,572
6,571
341,531
346,209
342,036
339,807
341.082
84,543 12,729 34,021
88,915 13,050 34,151
88,751 13,195 34,586
87,598 13,134 34,468
88.691 12,820 34,405
9,870
9,788
9,762
9,657
70,285
68,429
70,112
69,756
69,109
2,162,12&
2,159,564
2,111,238
2,092,849
2,108,298
1149,677
138,511
135,624
140,583
1,130,519
! 1,094,253
11,085,346
1,087,910
182,075
185,091
183,002
186,500
193,254
117,043
112,215
115,276
108,990
109,035
568,544
563,492
|570,450
577,146
576,658
13,534,016
3,532,276
3,548,801
3,582,874
3,559,884
497,745
500,893
510,716
520,899
527,310
297,415 75,426 74,021 1,054,645 287,308 136,802
301,877 75,661 74,797 1,055,641 280,134 137,571
302,068 75,180 72,621 1,053,954 282,266 137,237
302,671 74,007 71,004 1,066,044 281,360 135,245
305,376 75,280 73,354 1,067,727 283,807 132,544
776,354
1778,036
1771,280
J775,249
[780,373
5,684,100
5,653,298
5,607,800
5,617,996
5,621,463
825,081
829,872
836,747
849,187
862,390
453,263
452,730
455,720
450,174
453,076
108,694
109,001
108,428
107,220
108,136
92,863
93,115
90,723
88,954
91,146
1,529,377
1,526,769
1,518,430
1,527,400
1,528,251
413,771
410,856
411,190
409,194
412,340
610,846 61,750 25,461
606,317 59,267 28,252
615,224 62,971 27,386
624,805 61,900 29,250
600,719 60,198 27,530
5,718
5,391
6,379
5,510
6,172
6,153
5,904
5,018
5,935
5,925
136,552
135,921
133,079
138,356
132,179
31,216
31,179
28,501
30,316
31,225
1 68,631
i 67,244
64,140
66,615
64,446
Total.
178,896
179,216
181,338
181,651
182,529
58,724
59,954
62,270
62,567
63,687
498,726 7,262,268
491,349 7,252,861
476,131 7,273,032
468,920 7,324,388
476,273 7,324,429
164,356
165,365
164,727
162,661
159,842
246,059
245,581
247,637
246,592
248,692
83,951
85,736
87,711
87,944
89,741
656,344
650,540
636,335
627,708
634,025
10,334
9,766
9,765
6,059
9,939
16,115
12,754
14,000
12,784
14.777
6,612
6,921
7,100
7, US
G,9i9
11,034,213
11,000,899
10,936,728
10,950,279
10,989,475
38,178 1,017,566
42,304 1,011,220
36,583 1,010,152
38,717 1,027,395
998,194
38,165
SEPTEMBER,
999
FEDERAL RESERVE BULLETIN.
1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20,1920—Continued.
2. MEMBER BANKS IN FEDERAL RESERVE BANK CITIES—Continued.
[In thousands of dollars.]
Boston.
Cash in vault:
13,940
July 23
July 30
13,349
Aug. 6
13,893
Aug. 13
13,860
14,493
Aug. 20
Net demand deposits on
which reserve is computed:
644,487
July 23
644,430
July 30
636,181
Aug. 6
646,804
Aug. 13
630,173
Aug. 20
Time deposits:
July 23
43,783
July 30
43,478
42,568
Aug. 6
42,819
Aug. 13
Aug. 20
42,930
Government deposits:
6,057
July 23
4,906
July 30
3,141
Aug. 6
2,813
Aug. 13
6,891
Aug. 20
Bills payable with Federal
Reserve Bank:
Secured by United States
war obligationsJuly 23
18,134
July 30
20,877
22,154
Aug. 6
20,929
Aug. 13
Aug. 20
30,815
AH o t h e r July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Bills rediscounted with Federal Reserve Bank:
Secured by United States
war obligationsJuly 23
20,412
19,523
July 30
17,904
Aug. 6
Aug. 13
18,811
Aug. 20
, 17,323
All o t h e r 44,950
July 23
36,956
July 30
Aug. 6
' , 36,218
38,772
Aug. 13
45,808
Aug. 20
New
York.
Philadelphia.
San
Cleve- Rich- Atlanta. Chicago.
St.
Minne- Kansas
land. mond.
Louis. apolis. City. Dallas. Francisco.
104,555
102,579
104,913
102,250
97,552
13,061
12,317
12,462
13,517
12,976
8,609
8,209
8,909
8,740
8,743
1,651
1,684
1,699
1,657
1,475
2,107
2,369
2,175
2,374
2,328
36,185
36,256
36,963
36,099
36,474
4,900
4,797
5,016
5,003
4,808
3,405
2,922
2,763
2,981
2,871
3,778
4,084
3,873
3,668
3,750
1,745
2,006
1,942
2,045
1,937
11,119
10,578
10,390
10,250
10,335
205,055
201,150
204,998
202,444
197,742
4,653,613
4,664,731
4,603,319
4,578.540
4,527^ 824
586,992
577,891
595,218
599,009
602,906
227,347
229,968
230,364
231,233
229,538
54,223
53,308
50,781
51,859
51,971
41,870
42,194
42,156
44,832
42,530
974,303
972,089
957,209
969,349
945.639
225, 111
225,307
222,491
232,254
225,760
91,580
91,234
91', 156
90,360
87,892
144,320
140,940
140,566
151,005
150,462
61,892
62,370
64,484
67,155
65,333
299,796
301,825
299,555
302,322
301,726
8,005,534
8,006,287
7,933,480
7 964 722
l\ 86lj 754
301,623
301,766
300,362
307,727
305,843
23,487
23,287
23,504
26,925
26,934
171,358
171,552
172,430
173,714
173,725
21,304 21,342
21,327 21,311
21,390 21,307
21,371 21,163
21,393 21,100
282.640 73,936
282,679 74,097
283,811 74,290
285,056 74,452
283,332 74,141
23,138
22,967
22,921
22,903
23,144
19,137
11,647
11,625
11,605
11,597
5,048
5,094
5,121
5,151
5,204
245,674
245,368
245,933
244,996
242,468
1,232,470
1,224,573
1,225,262
1,237,882
1,231,811
81,009
65,624
41,896
37,707
68,464
9,192
7,438
4,754
4,278
9,093
952
797
501
455
2,480
356
310
147
186
323
64
51
32
29
31
7,976
6,435
4,119
3,713
7,566
3,258
2,583
1,644
1,470
3,140
97
243
156
140
5,164
4,075
2,607
2,345
4,397
301
242
154
138
7,223
5,929
4,120
3,707
6,248
121,649
98,633
63,271
56,981
110,012
311,606
300,999
331,149
346,848
328,951
51,025
54,585
52,915
52,083
50,160
6,704
5,526
5,265
6,989
5,285
4,769
5,878
7,274
7,252
7,725
1,697
1,747
1,847
1,797
1,797
37,612
36,687
33,628
31,819
34,034
14,842
15,320
14,373
13,189
14,833
393
343
271
15,104
14,538
17,441
12,487
13,170
2,703
2,753
3,178
3,454
3,873
12,551
13,720
12,833
14,830
14,180
477,140
472,973
502,328
511,973
505,203
150
150
150
150
150
150
120,263
120,890
128,915
129,870
136,356
46,615
46,072
44,372
43,661
46,296
4,003
3,821
3,969
3,739
3,872
252,218
261,925
262,421
304,175
301,571
29,925
32,278
30,910
35,606
34,997
35,526
34,127
34,350
35,064
33,052
226
193
9,920
11,364
10,245
10,335
Total.
1,346
1,201
1,035
843
773
9,097
8,684
7,975
9,605
9,209
5,755
5,874
4,588
4,253
4,649
1,544
1,702
1,503
1,372
1,363
3,653
3,573
3,662
3,708
3,744
473
602
483
422
416
1,291
1,764
3,171
1,780
1,546
214,678
213,899
217,675
218,110
225,561
10,519
11,160
11,625
10,858
12,407
169,092
174,325
171,327
172,798
180,037
53,913
53,027
58,978
51,417
59,391
32,632
32,576
32,853
28,458
32,353
29,891
29,567
29,211
25,087
26,951
4,995
6,359
6,675
6,012
6,457
28,516
33,254
33,532
31,398
32,161
702,143
715,474
719,464
749,890
775,520
1000
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays,from July 23 to Aug. 20, H920—Contd.
3. MEMBER BANKS IN F E D E R A L RESERVE BRANCH CITIES.
[In thousands of dollars.]
New
RichCleveAtlanta Chicago St. Louis Kansas
York
land
mond
City
District.1 District.* Districts District.* Districts District, e District.?
Number of reporting banks:
40
10
19
July 23
40
10
19
July 30
10
40
19
Aug. 6
10
40
19
Aug. 13
10
40
Aug.20
19
United States bonds to secure circulation:
25,117
1,599
5,608
July 23
25,117
1,599
5,608
July 30
25,117
1,599
5,608
Aug. 6
25,156
1,599
5,608
Aug. 13
25;156
1,599
5,608
Aug. 20
Other United States bonds, including
Liberty bonds:
9,161
40,247
11,439
July'23
39,981
9,242
11,393
July 30
40,844
11,510
9,334
Aug. 6
40,390
11,550
9,269
Aug. 13
40,587
11,577
9,273
Aug. 20
United States Victory notes:
13,957
1,886
2,846
July 23
14.105
2.837
1,848
July 30
2,837
14,187
1,829
Aug. 6
2,836
14,125
1,828
Aug. 13
2,837
14,109
Aug.20
1,839
United States certificates of indebtedness:
2,124
15,034
12,546
July 23
2,117
13,587
12,279
July 30
12,573
12,184
1,856
Aug. 6
12,704
12,156
1,796
Aug. 13
16,249
13,036
1,109
Aug. 20
Total United States securities owned:
94,355
July 23
27,470
19,739
92,790
July 30
27,119
19,804
92,721
Aug. 6
27,122
19,635
92,375
27,133
19,509
Aug. 13
96,101
28,051
18,827
Aug.20
Loans secured by Government war obligations, including rediscounts with
Federal Reserve Bank:
July 23
12,221
41,844
9,133
13,517
43,342
July 30
8,911
11,888
42,305
Aug. 6
8,909
11,575
43,931
Aug. 13
8,957
11,253
43,688
Aug. 20
9,128
Loans secured by stocks and bonds, other
than United States securities:
July 23
52,518 152,756
32,631
July 30
51, 793 155,123
32,328
Aug. 6
52,794 154,474
32,142
Aug. 13
53,335 155,218
32,336
Aug.20
53,736 154,109
33,466
All other loans and investments, including rediscounts with Federal Reserve
Bank:
July 23
181,453 469,067 122,891
July 30
183,821 469.126
123,619
Aug. 6
181, 778 478,202 123,762
Aug. 13
182,415 476,372 123,459
Aug. 20
182,934 475,962 123,431
Total loans and investments, including
rediscounts with Federal Reserve
Bank:
July 23
273,662 758,022 184,394
July 30
276,250 760,381
184,662
Aug. 6
273,582 767,702 184,448
Aug. 13
274,458 767,896 184,261
Aug.20
275,974 769,860 184,852
Reserve balances with Federal Reserve
Bank:
July 23
16,839
56,641
13,166
July 30
15,598
54,698
12,678
Aug. 6
,
17,444
13,745
55,347
Aug. 13
12,793
15,233
54,429
Aug.20
13,128
18,249
55,613
12 Buffalo.
Pittsburgh and Cincinnati.
3
Baltimore.
* New Orleans, Birmingham, Jacksonville, and Nashville.
»Detroit.
i San
s Francisco
District.*
8
Total.
24
24
24
24
24
12
12
12
12
12
18
18
18
18
18
19
19
19
19
19
12
12
12
12
13
44
44
44
44
44
198
198
198
198
199
6,930
7,005
7,005
6,930
6,930
1,905
1,905
1,905
1,905
1,905
5,280
5,280
5,280
5,280
5,280
4,387
4,387
4,387
4,387
4,387
7,108
7,108
7,108
7,108
7,108
13,185
13,185
13,185
13,185
13,185
71,119
71,194
71,194
71,158
71,158
22,254
22,870
22,538
22,375
22,622
17,528
17,571
17.560
17.561
17,511
7,651
7,674
7,643
7,814
5,830
5,555
5,883
6,291
6,108
7,228
7,248
7,193
7,194
7,270
21,399
21,341
21,552
21,730
22,118
142,737
142,875
144,057
144,174
144,952
2,917
2,804
2,886
2,916
2,916
18,563
18,523
18,520
18,515
18,431
2,028
2,043
2,020
2,079
2,077
586
620
636
657
683
1,200
1,195
1,190
1,188
1,188
7,565
7,381
7,400
7,365
7,424
51,548
51,356
51,505
51,509
51,504
6,446
7,132
6,975
7,230
8; 840
27,691
27,133
23,295
23,505
33,030
1,220
1,110
1,090
1,116
1,378
3,677
3,677
3,677
3,671
3,695
1,679
1,679
1,679
1,679
1,726
12,428
12,256
11,855
12,006
13,028
82,845
80,970
75,184
75,863
92,091
38,547
39,811
39,404
39,451
41,308
65,687
65,132
61,280
61,486
70,877
16,179
16,107
16,033
16,289
16,621
14,480
14,239
14,583
15,006
14,873
17,215
17,230
17,170
17,169
17,292
54,577
54,163
53.992
54,286
55,755
348,249
346,395
341,940
342.704
359.705
16,565
17,386
18,008
17,822
18,075
19,563
18,518
18,817
20,530
17,052
11,972
11,583
11,445
11,195
11,400
9,058
8,642
8,773
8,887
9,108
2,926
2,918
2,879
2 899
2^963
15,930
16,964
16,176
16,558
16,546
139,212
141,781
•139,200
142,354
139,213
40,925
40,572
40,377
39,581
40,142
57,934
58,229
59,999
59,175
59,675
34,939
35,420
35,047
35,294
35,271
22,313
21,858
21,901
21,296
21,657
16,539
16,392
16,438
16,445
16,574
68,941
70,137
67,522
70,052
65,035
479,496
481,852
480,694
482,732
479,665
259,751
263,789
259,051
254,566
265,508
342,823
340,794
340,210
343,651
339,442
111,508
113,432
113,334
113,908
113,841
159,950
161,656
162,428
159,142
160,302
78,747
79,610
78,248
78,342
77,779
460,336
462,487
465,630
463,888
461,434
2,186,526
2,198,334
2,202,643
2,195,743
2,200,633
355,788
361,558
356,840
351,420
365,033
486,007
482,673
480,306
484,842
487,046
174,598
176,542
175,859
176,686
177,133
205,801
206,395
207,685
204,331
205,940
115,427
116,150
114,735
114,855
114,608
599., 784
603,751
603,320
604,784
598,770
3,153,483
3,168,362
3,164,477
3,163,533
3,179,216
9,322
40,235
20,299
29,303
8,261
13,981
9,301
26,860
39,087
19,316
7,943
13,763
28,561
9,272
39,759
20,071
7,735
13,952
30,432
9,994
40,857
19,386
7,740
12,814
27,797
9,902
40,278
19,258
7,610
14,066
6
Louisville, Memphis, and Little Rock.
7
Omaha and Denver.
8
El Paso and Houston.
9
Spokane, Portland, Salt Lake City, Los Angeles, and Seattle.
208,047
199,244
205,886
203,678
205,901
1001
FEDERAL RESERVE BULLETIN.
SEPTEMBER, 1920.
Principal resources and liabilities of member banks in leading cities, including member banks located in Federal Reserve Bank
cities and in Federal Reserve branch cities as at close of business on Fridays, from July 23 to Aug. 20} 1920—Contd.
3. MEMBER BANKS IN FEDERAL RESERVE BRANCH CITIES—Continued.
[In thousands of dollars.]
Cash in vault:
July 23
July 30
Aug. 6......
Aug. 13
Aug. 20
,
Net demand deposits on which reserve is
computed:
July 23
•...
July 30
Aug. 6
Aug. 13
Aug. 20
Time deposits:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Government deposits:
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
Bills payable with Federal Reserve
Bank:
Secured by United States war obligations—
July 23
July 30
Aug. 6
Aug. 13
Aug. 20
All o t h e r July 23
July 30
Aug. G
Aug. 13
Aug. 20
Bills rediscounted with Federal Reserve
Bank:
Secured by United States war obligationsJuly 23
July 30
Aug. 6
Aug. 13
Aug. 20
All o t h e r July 23
July 30
Aug. 6
Aug. 13
Aug. 20
New
York
District.
Cleveland
District.
Richmond
District.
Atlanta
District.
3,558
3,005
3,432
3,114
3,223
14,805
14,506
13,892
12,878
13,835
5,513
5,305
5,178
5,106
4,870
6,970
7,022
7,016
6,787
7,256
12,889
13,528
13,465
13,526
14,643
3,600
3,472
3,736
3,651
3,595
5,256
5,182
5,148
5,187
5,042
2,936
3,305
3,154
3,283
3,102
15,263
15,781
15,697
16,660
15,617
70,790
71,106
70,718
70,192
71,183
171,103
171,952
166,593
168,593
166,889
512,614
514,887
510,160
507,870
517,088
113,017
113,552
116,482
113,455
112,215
173,057
172,403
170,108
170,699
171,152
201,660
202,283
202,676
212,929
202,770
83,815
82,679
85,511
87,696
85,221
117,574
119,299
117,446
122,282
121,927
67,120
64,111
63,364
63,590
65,449
305,340
298,931
296,282
303,637
299,681
1,745,300
1,740,097
1,728,622
1,750,751
1,742,392
54,586
56,233
60,619
60,832
60,851
116,702
116,925
117,017
117,604
116,678
20,099
20,501
26,190
20,543
20,615
90,266
90,128
90,313
90,756
224,230
224,466
224,798
224,149
223,972
40,880
40,975
41,134
40,959
40,947
54,472
49,376
49,666
49,383
49,710
21,967
21,804
21,786
21,973
22,136
261,236
260,835
261,919
261,528
261,808
884,438
881,243
893,442
887,727
886,584
1,947
1,577
1,026
907
1,530
5,699
4,498
3,067
2,768
9,098
290
234
118
105
427
1,635
1,427
993
682
2,905
711
575
367
331
4,311
203
164
106
94
676
546
350
316
293
150
121
76
74
114
820
644
390
12,131
9,786
6,493
5,660
20,215
21,585
20,681
21,274
20,397
21,350
21,915
18,110
18,554
25,548
24,806
9,970
9,892
9,775
10,544
9,487
25,616
25,650
26,081
25,451
26,817
38,299
37,421
40,175
36,835
39,817
5,752
6,268
6,844
6,986
6,755
5,670
6,776
7,449
6,754
6,760
7,428
7,333
6,853
6,609
6,909
11,110
11,103
10,890
11,715
11,585
147,345
143,234
147,895
150,839
154,286
2,388
85
85
85
85
85
185
85
360
235
85
3,527
996
445
320
170
Chicago St. Louis Kansas
City
District. District. District.
869
826
San
Dallas Francisco
District. District.
Total.
3,378
3,310
3,193
2,528
2,683
6,712
7,662
4,860
7,675
7,617
2,406
2,090
2,103
1,902
2,169
4,369
4,582
4,983
5,223
5,627
4,352
3,974
4,301
5,750
5,965
4,847
4,403
4,411
4,166
4,326
1,218
1,172
1,293
1,184
1,456
556
593
615
596
1,152
1,376
1,026
944
1,135
28,990
29,162
26,785
29,968
31,584
7,768
8,829
7,257
6,940
8,394
6,505
4,067
10,115
5,089
4,465
14,478
15,025
14,009
14,342
14,162
33,029
34,857
39,713
38,922
42,194
17,253
14,836
16,503
14,984
9,341
14,061
16,712
14,709
13,570
15,445
16,990
17,616
17,747
13,755
15,950
8,376
9,293
9,502
8,947
8,249
25,562
25,158
26,548
25,971
25,313
144,022
146,393
156,103
142,520
143,513
1002
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN".
IMPORTS AND EXPORTS OF GOLD AND SILVER.
Gold imports into and exports from the United States, distributed by countries.
Exports.
Imports.
During
10 days
ending
July 20,
- 1920.
During During
11 days month
ending
July,
Julv 31, of1920.
1920.
During
From
10 days Jan.
1 to
ending
10,
Aug. 10, Aus.
1920.
1920.
From
Jan. 1 to
Aug. 10,
1919.
352,916 9,721,366 6,664,189
45
76,783,923
45
$13,329
Total Europe. 7,066,750
396,055 9,781,090 7,340,739
79,895,618
13,329
Total North
America
Argentina....
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Uruguay
Venezuela
Total South
America
10,000
$49,724 $676,505
From
Jan. 1 to
Aug. 10,
1919.
$10,000
120,000
10,000
912
241,263
4,937
37,240
42,475
30,569
64,800
2,662
11,617
125,286
853
$2,666
1,603,423
1,420,584
40,107
1,161,428
3,324
25,364
853
1,100
20
28,733,863 32,643,234
428,160 463,375
14,872
174,632 20i,7li
799,316
884,718
84,325
2,441
160,104
489,485
2,675,281 3,093,700
61
5,680
3,100
87,249
18,838
60,000
15,000
26,920,000
661
13,235
1,192,805
266,510 29,794,555
$72,379 $265,180
$425,231
$65,869
10,000
3,018,637
3,233,825
19,000
136,367
190,785
565,862
50,000
100,000
150,000
223,554
21,300
10,000
300,000
1,000
5,833,878
20,000
15,948,747
275,000
7,940
10,000
16,566
2,890
18,974
660
997
477,707
346
269,131
2,387
17,330 '"33,865
17,996
535,391
304,002
30 073
1,290
10 000
147,930
18,890
117,070 1,451,041 1,857,579
314,649
33,311,432 37,800,663
1,343
816,039
45,440
4,331
2,387
63,628
3,245
370,165
15,154
76,692
6,878
24,585
329,868
2,602,315
400,632
71,940
2,387
581,715
19,027
27,047
314,839
983,558
415,657
46
68,144
1 069
18,363
156,280
536,448
379,911
79,694
15,272
564,038
150,644
4,411,851 1,969,863
258,746
555,965 1,151,093
•
289,423
26,000
6,300
6,300
6,300
6,300
756,666
102,919
64,822
201,287
2,589,066 2,524,455
6,576,087
30,191,910 10,000,000
102,919 6,777,374
'"71," 002
74,251
172,262
171,644
74,251
39,000
10,000
19,545,572
9,212,755
89,995,000 32,960,000
2,500,000
280,000
50,000
400,000
100,000
700,000 4,483,620
156,000
5,005
6,300
19,795
2,893,369
12,850,000 7,405,000
334,000 9,978,720
26,000 104,721,300 60,395,509
1,260
Total Asia.... -----
Total
all
countries
$33,139
12,520 1,225,805 1,274,863
48,650
8,131
9,353
12,234
13,229
35,006
66,615
40,355
40,355
7,896
80,419 133,898 376,875
China
British India
Straits Settlements.
Dutch East Indies..
French East Indies.
Hongkong
Japan
Russia in Asia
New Zealand
Philippine Islands..
British South Africa
British West Africa.
Portuguese Africa..
During During During
From
11 days month
10 days
ending of July, ending Jan. 1 to
Aus. 10,
Julv 31,
Aug.
10,
1920.
1920.
1920.
1920.
$335,906
Belgium
Denmark
France
Germany.
Greece
Iceland
Italy
!
Netherlands
Norway
Portugal
Spain
Sweden
Switzerland..
United Kingdom:
England
$7,066,750
Scotland
British Honduras. .
Canada
Costa Rica
Guatemala
Honduras.
Nicaragua
Panama .
Salvador
Mexico
Newfoundland
Cuba. .
British West Indies.
Virgin Islands of
U.S
Dominican Republic
Dutch West Indies.
During
10 days
ending
Julv 20,
1920.
20,000
500,000
2,100,000
2,100,000
399,405 146,450 1,981,675 327,220
2,200,000 6,365,244 16,133,715 7,017,283
16,286,750
6,110,088
6,683,454
12,065,105
2 100 000
25,998,577
31,913,185
9,628,446
2,442,047
200,000
2,147,000
15,038,110
36,040,116
23,000
32, 782,236 12,524,455 4,699,405 6,511,694 20,715,390 8,114,503 101,157,159 65,518,719
1,101,276
557,219 "'366,292
8,150
280,358
422,413
2,500
28,038
7,784,033 2,399,270 19,817,758 8,071,045 1152,339,990 53,105,165 4,964,451 7,067,659 21,872,782 8,429,926 2 225,718,579 164,924,038
1
Includes: Ore and base bullion, $11,713,000; United States mint or assay office bars, $3,846,000; bullion refined, $77,212,000; United States
coin, $12,864,000; foreign coin, $46,705,000.
2
Includes: Domestic exports—Ore and base bullion, $10,000; United States mint or assay office bars. $18,286,000; bullion refined $1 009 000*
com, $205,980,000; foreign coin, $434,000.
' ' ' '
Excess of gold exports over imports since Jan. 1,1920, $73,379,000. Excess of gold imports over exports since Aug. 1,1914, $706,376 000
of gold exports over imports since June 10, 1919, $394,643,000.
& , , * , , •
Excess
*«*»
SEPTEMBER, 1920
1003
FEDERAL RESERVE BULLETIN.
Silver imports into and exports from the United States, distributed by countries.
Exports.
Imports.
During
10 days
ending
July 20,
1920.
During
11 days
ending
July 31,
1920.
Denmark
France
Italy
Netherlands .
Norway
Portugal
Spain
Sweden
Switzerland
United KingdomEngland
$12,531
Total North
America
Argentina
Bolivia
Brazil
Chile
Colombia
Ecuador
British Guiana
Dutch Guiana
Peru
Venezuela
Total South
America
During
10 days
ending
Aug. 10,
1920.
$3,345
From
From
Jan. 1 to J a n . 1 to
Aus. 10, Aug. 10,
1919.
1920.
$80,836
24,026
30,820
14,453
7,978
12,531
$103,144
1 094
1,69«
700
322
22,800
438,901
247,141
4,476
1,729
114,408
127,825
18,747
5,149
5,149
45,367
884,417 2,789,261
$117,190
16,879
During
11 days During
ending month of
July,
July 31,
1920.
1920.
16,879
During
From
10 days
ending J a n . 1 to
Au?.
10,
Aug. 10,
1920.
1920.
$11,100
$32,920
54,960
$12,700
From
J a n . 1 to
Aug. 10,
1919.
$587,897
6,418,882
1,109,956
1,950
228
101,131
172,203
1,350
787,917
34,895
683,622 $973,849 1,873,851
3,966,402 12,350,298
4,695
946,030
45,995
696,322
973,849 1,886.551
4,054,282 20,742,545
255,637
63,367
85,093 2,400,703 4,881,770
108,368
51,718
3,430
21,734
29,262 1,684,501 1,538,135
564,759
490,724
11,581
89,273
37,326
262
248,305
49,797 3,637,724
729,529 38,289,065 35,180,497
11
2,296
6,949
52,189
62,550
67,893
>
\
J
316,694
428,930
$24,798! 6.033.598
2,605,316
1,000
1,000
4,500
371,505
3,000
542,000
4,400
85,900
204,250
81,441 2,597,916
888,969
3 666
60,130
21,909
177,037
19,387
400
817
18,080
939,953
34,500
231,500
10,328
161
25,000
84,800
1,200
20
5,666
568,659 1,138,043 3,256,574
908,945 46,832,381 42,921,240
3 730
231,443
13,912
23,380
41,203
922,503
108,487
1,527
293
2,148,956 1,127,235
128,224
577,112
13,670
47,026
33
6,390
8,763,316 5,378,985
512
68
2 504
10,992
158,235
83,308
69,479
83,404
130,124
166,986
226,967
4,554
4,552
122,903
1,600
10
282,194
362,345
io
898,258
379,112
448,487
734,108 1,531,948
China
1,000,000
British India
Dutch East Indies
French East Indies.
Hongkong
Japan
Russia in Asia
Turkev in Asia
159,338
133,023
1,289,974
407,464
2,290,213
339,603
400
5,000
9,000
634,354
141,956 10,776,025
9,187
11,492
743
2,333
852
3,904,324
1,402
400
2,493
4,929
10,000
400 (
1,065,225
25,227
9,587
1.065.225;
85,473 i,8i3,i46 i,898,6i9
11,017
149.915.419 16,971,155
223,211 108,877,478
971,229
1,650
105,000
2,000
522,079 12,489,044 6,799,876'
1 278 000
713,723
4,058,373
18,698,886
713,763
970
4,037,981
52,759
38,511
971,229 1,150,698 1,813,146 2,963,844
Total Asia.... 1,000,000
159,338, 1,685,464
3,620,348
191
1,524
1,333
191
2,857
11,407
12,883
6,097
7 654
76,822
6,664
6,664
93,321
42 998
New Zealand
Philippine Islands..
British South Africa
British West Africa.
Portuguese Africa
During
10 days
ending
July 20,
1920.
$12,700
Total Europe.
British Honduras
Canada
Costa Rica
Guatemala
Honduras
Nicaragua
Panama
Salvador
Mexico
Newfoundland
British West Indies.
€uba...
Virgin Islands of
U. S
Dominican Republic.
Dutch West Indies.
French West Indies.
Haiti
During
month of
July,
1920.
713,723 73,610,622 129,939,373
5,480
Total
all
countries... 2,018,861 2,039,486 6,496,229 1,435,728 164,011,511 50,865,814 1,980,043 3,126,998 5,494,336
855,679 288,471,663 154,597,259
1
Includes: Ore and base bullion, $50,023,000; United States mint or assay office bars, $3,000; bullion refined, $4,973,000, United States coin,
$1,650,000; foreign coin, $7,362,000.
2
Includes: Domestic exports—Ore and base bullion, $727,000; United States mint or assay office bars, $3,444,000; bullion refined, $50,372,000
coin, $13,969,000. Foreign exports—Ore and base bullion, $1,000; bullion refined, $16,334,000; coin, $3,624,000.
Excess of silver exports over imports since Jan. 1, 1920, $24,460,000. Excess of silver exports over imports since Aug. 1,1914, $453,832,000.
1004
FEDERAL RESERVE BULLETIN.
SEPTEMBER,
1920.
General stock of money in the United States, money held by the Treasury and by the Federal Reserve system^ and all other
money in the United States, Aug. 1, 1920.
General stock.
Gold coin (including bullion in Treasury) 2
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:
Aug. 1,1920.
July 1,1920..
June 1, 1920.
May 1, 1920 .
Apr. 1, 1920..
Mar. 1,1920..
Feb. 1, 1920..
Jan. 1, 1920..
J u l y l , 1919..
Jan. 1, 1919..
J u l y l , 1918..
Jan. 1, 1918..
J u l y l , 1917..
Amount per
Held in the
Held outside
capita outside
United States
Held by or for
United States
United
States
Treasury as assets Federal Reserve
Treasury and
of the GovernBanks and agents. Federal Reserve Treasury and
Federal
Reserve
ment. 1
system.
system.
$2,695,337,608
$409,632,934
269,798,602
8,i90,"928
$1,273,737,017
329,633,960
3 64,971,151
• 29,452,873
258,863,512
6,364,173
346,681,016
3,423,299,935
207.' 400,000
726,463,704
6,045,338
27,65), 850
2,115,736
23,824,306
<56,566,145
287,454,095
14,999,899
2,195,052
$427,700,394
254,633,303
73,586, 309
91,943,922
252,499,339
1,653,419
284,069,533
3,108,194,990
190,284,365
700,444,346
7,927, 844,377
7,887! 181.586
7,804; 528,' 384
7, 755, 953,906
7,76i; 146,018
7, 806, 311,880
7, 744: 769,263
7,961, 320,139
7,588, 473,771
7, 780, 793,606
6, 742'',225,784
6,256; 198,271
5,480; 009, 884
483,824,265
485,057,472
462,799, 326
488,928,232
503,309,638
546,960,744
625,142,749
604,888,833
578,848,043
454,948,160
356,124,750
277,043,358
253,671,614
2,059, 010,192
2,021, 271, 614
1,988,583, 225
1,976, 153,519
1,984,495,464
1,981,490,058
2,009, 651,988
2,044, 422,303
2,167,280,313
2,220,705,767
2,018,361,825
1, 723,570,291
1,280,880,714
5,385,009,920
5,380, 852,500
5,353,145,833
5,290,872,155
5,273,340,916
5,277,861,078
5,109, 974,526
5,312,009,003
4,842,345,415
5,105,139,679
4,367,739,209
4,255,584,622
3,945,457,556
|
$50.22
50.19
50.00
49.45
49.33
49.41
47.88
49.81
45.00
47.83
41.31
40.53
37.88
1
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.
*3 Includes balances in gold settlement fund standing to the credit of the Federal Reserve Banks and agents.
Includes subsidiary silver.
4
Includes Treasury notes of 1890.
FEDERAL RESERVE BANK DISCOUNT RATES.
Rates on paper discounted for member banks approved by the Federal Reserve Board up to Aug. SI, 1920.
Paper maturing within 90 days.
Secured by—
Federal Reserve Bank.
Treasury
certificates of
indebtedness.
Boston
New York....
Philadelphia.
Cleveland
Richmond. ..
Atlanta
Chicago
St. Louis
Minneapolis-.
Kansas City..
Dallas
"...
San Francisco
54
54
6
54
6
54
5J
6
Liberty bonds
and Victory
notes.
6
54
5J
6
54
6
54
6
54
54
6
Trade acceptances.
7
7
6
5|
6
6
7
6
64
6
6
All other.
Bankers' acceptances
maturing
within 3
months.
Agricultural
and live-stock
paper maturing
within 91 to
180 days.
6
54
54
6
54
6
54
6
54
54
6
1
Discount rate corresponds to interest rate borne by certificates pledged as collateral, with minimum of 5 per cent in the case of Philadelphia,
Atlanta,
Kansas City, and Dallas, and 5^ per cent in the case of Richmond, Chicago, and San Francisco.
2
5\ per cent on paper secured by 5i per cent certificates, and 5 per cent on paper secured by 4 | and 5 per cent certificates.
NOTE.—Rates shown for Atlanta, St. Louis, Kansas City, and Dallas are normal rates, applying to discounts not in excess of basic lines fixed
for each member bank by the Federal Reserve Bank. Rates on discounts in excess of the basic line are subject to a £ per cent progressive increase-for each 25 per cent by which the amount of accommodation extended exceeds the basic line.
1005
FEDERAL RESERVE BULLETIN.
SEPTEMBEK, 1920.
CONDITION OF MEMBER BANKS.
Abstract of condition reports of State bank and trust company members in each Federal Reserve district on June 30, 1920.
[In thousands of dollars.]
District
No. 1
(36
District
No. 2
(132
banks.)
DisDisDisDisDistrict
trict
trict
trict
trict
No. 7
No. 3 No. 4 No. 5 No. 6
(339
(109
(53
(72
(40
banks). banks). banks) banks). banks).
DisDisDisDisDisTotal
trict
trict
trict
trict
trict
United
No. 8 No. 9 No. 10 No. 11 No. 12 States
(184
(86
(107
(160
(56
(1,374
banks). banks), banks). banks). banks). banks).
RESOURCES.
Loans and discounts
451,348 2,186,414 176,846
1,254
Overdrafts
120
216
Customers' liability on ac775
count of letters of credit
1
Customers' liability on account of acceptances
143,593
28,522
1,436
Liberty bonds (exclusive of
Liberty bonds borrowed).. 12,950
172,137 14,571
Other United States bonds
(exclusive of United States
bonds borrowed)
216
4
65
37,275
United States Victory notes.. 6,729
3,734
United States certificates of
indebtedness
95,220 15,097
11,950
War savings and thrift
stamps, and Treasury savings certificates actually
owned
100
20
Stock of Federal Reserve
Bank
10,588
2,141
Other bonds, stocks, etc.
(exclusive of securities borrowed)
466,231 100,787
96,48.7
57,183
Banking house
9,693
8,083
1,343
Furniture and fixtures
1,014
504
5,439
Other real estate owned
818
1,807
Lawful reserve with Federal
300,252 19,710
Reserve Bank
40,705
8,916
Gold coin and certificates
1,814
452
46,512
All other cash in vault
14,878
5,384
Items with Federal Reserve
Bank in process of collection
54,939
14,050
4,712
Due from banks, bankers,
and trust companies
118,783 17,052
26 ; 685
Exchanges for clearing house,
also checks on other banks
283,879
in same place
13,554
4,178
Outside checks and other
14,786
cash items
702
2,701
Approximate interest earned
16,292
1,511
but not collected
814
94,440
Other assets
1,001
6,388
Total..
471,671 110,833 213,747 1,115,947 246,429
665
817
345
523
178
83,192
182
71,481
153
79,816 475,030
642
1,038
5,682,754
6,133
673
198
18
7
125
1,797
9,819
8,232
29,738
10y424
5
31
4
1,894
235,587
29,739
12,979
49,614
10,649
3,242
6,713
4,536
37,814
360,042
209
9,153
1,372
81
2,692
7,474
30,096
22
2,252
30
505
41
1,383
40
685
3,056
8,575
11,238
104,451
15,220
515
2,807
32,118
2,941
1,220
654
2,438
17,083
197,263
17
63
122
1,052
276
454
1,814
29,108
1,055 105,134
1,686 13,072
2,908
733
3,114
646
1,273,900
148,988
13,522
24,117
110
19
67
367
33
3,234
632
1,153
5,158
1,420
174,543
17,530
1,332
6,653
12,970
3,186
221
497
26,723
8,499
819
1,812
228,786
20,363
2,962
1,574
41,560
7,257
838
1,167
8,328
1,675
499
487
11,296
761
349
103
40,397
346
14,659
6,034
92
3,958
18,047
296
6,247
95,745
5,202
33,343
21,536
351
4,991
4,807
205
1,980
6,767
169
1,747
5,612
131
2,470
33,803
2,348
15,865
5,252
133,007
10,925
47,480
431,583
593,415
20,322
152,034
8,787
1,957
9,227
19,228
10,807
276
2,881
29,598
12,016
32,831
87,682
25,094
8,400
15,037
9,080
1,459
7,807
47,294
4,892
728
2,085
765
8,617
384,338
4,548
313
13,369
1,608
614
675
1,078
5,872
47,204
989
2,752
112
334
2,111
14,728
679
1,433
388
243
132
187
57
799
2,104
1,816
25,738
129,159
549
5,038
743,390 4,116,567 J379,853 851,387 163,685 361,606 1,843,582 396,906 117,383 123,014 115,533 793,936 10,006,842
LIABILITIES.
Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes paid
Approximate interest and
discount collected but not
earned
Amount reserved for taxes
accrued
Amount reserved for interest
accrued
Due to Federal Reserve Bank
Due to banks, bankers, and
trust companies
Certified and cashiers' or
treasurers' checks outstanding
Demand deposits
Time deposits
United States deposits
Bills payable with Federal
Reserve Bank
Bills payable other than with
Federal Reserve Bank
Cash letters of credit and
travelers' checks outstanding
,
Acceptances
,
Other liabilities
32,400
36,550
12,454
167,792 23,423
185,832 47,674
62,153
10,159
39,841
68,561
13,200
9,159
24,585
15,338
94,784
80,310
26,885
20,756
16,294
3,226
3,912
22,632
6,134
359
1,111
2,845
1,232
4,073
590
6,555
2,978
11,691
4,739
43,295
19,733
493,598
494,595
987
1,743
8,900
150,042
107
249
172
962
19,636
101
166
66
595
21,346
36
118
688
10
11,10*
5,521
6,296
21,014
636,346
1,052
9,863
68,811 216,440
13, 703 446,562
4,707
358
11,213
4,062
4,879
2,659
218,108
4,851,597
2,426,035
231
1,933
2,911
17,756
242,36ft
46,333
9,147
2,965
2,230
9,302
71
1,496
11,091
695
1,459
134
1,769
1,214
4,924
3,113
798
112
576
233
169
275
186
230
1,255
213
464
3
146
21,490
374,394
8,265
18,303
11,806
39,049
83,016
29,249
9,013
14,451
17,183
2,533
682,730 163,692
767,328 106,155
2,554
4,369
11,574
46,353
9,281
2,731
1,119
34,585
50,896
2,809
57,920
27,915
1,042
L134
7,496 162,229 1,225
456,407 2,426,564 210,222 317,499
119,564 361,054 46,486 346,679
8,648
4,658
50,031
7,233
19,217
15,151
100,887
11,787
659
375
971
1,725
29,144
992
16,502
149,030
29,944
1
1,436
762
579
9,717
2,525
2,056
2,409
65,292 151,435
44,034 95,659
368
2,449
6,794
12,141
4,679
3,487
2,060
74
207
8,318
210
216
30,290
3,254
81
1,789
5,753
5,004
2,787
4
10,406
5,394
86,498
245,972
39,986
743,390 4,116,567 379,853 851,387 163,685 361,606 1,843,582 396,906 117,383 123,014 115,533 793,936 10,006,842
Total.,
Liability for rediscounts w i t h
Federal Reserve B a n k
Liability for rediscounts w i t h
other b a n k s
0149°—20-
32,917
97,905
15,387
12,990
6,927
32,985
65,505
32,294
5,010
502
141
300
145
1,035
4,034
1,762
3,419
733
4,684
1,317
497
15,611
327,513
2,878
16,761
1006
SEPTEMBER, 1920.
FEDERAL RESERVE BULLETIN.
Abstract of condition reports of State bank and trust company members of the Federal Reserve System on June 30, 1920.
arranged by classes.
[In thousands of dollars.l
Central reserve city banks.
New York Chicago
St. Louis
(32 banks). (14 banks). (17 banks).
Total (63
banks).
Other reserve city
banks (180
banks).
Country
banks
(1,131
banks).
Total
Total
United
United
States
States
(1,374
(1,306
banks) June banks) May
30,1920.
4, 1920.
RESOURCES.
Loans and discounts
Overdrafts
Customers' liability on account of letters of
credit
Customers' liability on account of acceptances.
Liberty bonds (exclusive of Liberty bonds
borrowed)
Other United States bonds (exclusive of
United States bonds borrowed)
United States Victory notes
United States certificates of indebtedness
War savings and thrift stamps and Treasury
savings certificates actually owned
Stock of Federal Reserve Bank
Other bonds, stocks, etc. (exclusive of securi5
Ues borrowed)
Banking house
Furniture and fixtures
Other real estate owned
Lawful reserve with Federal Reserve Bank...
' G$d coin and certificates
* All other cash in vault
Items with Federal Reserve Bank in process
of collection
Due from banks, bankers, and trust companies
Exchanges for clearing house, also checks on
other banks in same place
Outside checks and other cash items
Approximate interest earned but not collected.
Other assets
Total.
1,726,916
1,034
450,295
158
124,904
37
2,302,115
1,229
1,984,337
2,679
1,396,302
2,225
5,682,754
6,133
5,508,993
5,702
.574
137,895
9,440
591
175,520
1,105
51,800
101
8,267
1,797
235,587
1,723
230,015
134,725
17
28,185
6,403
4,075
145,203
114,856
360,042
339,777
120
24,740
75,928
7,150
3,614
3,518
3,572
43,635
83,606
396
32,018
32,749
11,238
104,451
197,263
13,455
103,663
249,226
42
8,282
32
2,309
444
1,462
4
831
7,270
28,798
80,908
78 !
11,422 |
373
11,201
601
6,575
1,052
29,198
287,426
42,112
206
3,345
256,280
8,388
30,878
71,355
2,973
102
§1
48,605
4,070
7,468
28,685
2,948
345
186
13,453
84
2,149
387,466
48,033
561,546
61,661
5,330
14,551
184,556
3,673
61,603
324,888
39,294
7,539
5,944
90,521
4,107
49,936
1,273,900
• 148,988
13,522
24,117
593,415
20,322
152,034
1,217
28,282
1,292,924
142,296
12,845
26,859
599,429
17,426
148,040
37,801
86,133
11,743
33,920
6,278
9,473
55,822
129,526
16,464
127,255
133,007
43J,583
125,337
436,855
273,426
12,571
12,552
92,685
30,318
6,491
1,042
12,746
3,095
643
428
347
306,839
19,705
14,022
105,778
60,721
174,802
61,814
19,583
7,911
17,831
15,685
7,916
3,805
5,550
384,338
47,204
25,738129,159
246,512
37,916
20,406
129,439
3,254,059
732,605
209,311
4,195,975
3,532,746
2,278,121
10,006,842
9,718,337
122,720
154,377
36,450
13,075
14,610
172,245
210,864
177,232
200,153
494,595
481,536
486,840
3,539
60,134
52,471
144,121
83,578
37,437
150,042
151,142
813
435
244
9,199
10,551
13,389
5,083
3,152
404,898
6,307
5,914
3,336
443
170,309
2,778
2,043
2,685
1,926
61,139
19,636
21,346
11,104
5,521
636,346
17,746
18,863
19,643
2,508
604,365
1,170
91,343
57,978
2,287
5,124
164,590
2,374,387
417,682
50,214
80,220
38,490
1,479,647
1,183,259
29,397
105,718
15,028
997,563
825,094
6,887
60,034
218,108
4,851,597
2,426,035
86,498
245,972
182,685
4,713,460
2,337,635
76,521
294,097
3 P22
318,'338
12,542
40,495
LIABILITIES.
Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes
paid
Approximate interest and discount collected,
but not earned
.Amount reserved for taxes accrued
Amount reserved for i nterest accrued
Due to Federal Reserve Bank
Due to banks, bankers, and trust companies..
Certified and cashiers' or treasurers' checks
outstanding
Demand deposits
Time deposits
United States deposits
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve
Bank
:
Cash letters of credit and travelers' checks
outstanding
Acceptances
Other liabilities
Total.
Liability for rediscounts with Federal Reserve
Bank
Liability for rediscounts with other banks
Ratio of reserve with Federal Reserve Bank
to net deposit liability (per cent)
41,877
47,982
8,613
7,586
10,009
4,266
2,949
346,205
156,280
1,945,795
155,359
46,716
64,684
2,152
2,945
573
203
49,494
7,140
337,249
204,345
1,211
10,412
393
100
493
13,115
26,378
16,416
143,335
28,987
97
28,790
954
4
9,422
68
16,517
181,547
30,009
1,207
52,585
13,163
32
8,237
3,161
17,756
242,369
46,333
9,374
235,422
51,284
3,254,059
732,605
209,311
4,195,975
3,532,746
2,278,121
10,006,842
9,718,337
79,255
46,313
13,799
139,367
137,759
8,167
50,387
8,596
327,5H
16,763
326,108
10,765
12.0
12.4
12.8
12.1
10.0
6.6
10.1
10.5
35,216
SEPTEMBER,
1920.
1007
FEDERAL RESERVE BULLETIN.
Classification of loans and discounts of State bank and trust company members of the Federal Reserve System, as shown by
their condition reports for June 30, 1920.
[In thousands of dollars.]
DisDisDisDisDisDisDisDisDisDisDisDisTotal
trict
trict
trict
trict
trict
trict
trict
trist
trict
trict
trict
trict
United
No. 3 No. 4 No. 5 No. 6
No. 7
No. 1 No. 2
No. 8 No. 9 No. 10 No. 11 No. 12 States
(339
(53
(109
(36
(56 .-. (160
(72
(40
(184
(86
(107
(132
(1,374
banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks). banks).
On demand:
Not secured by collateral. 27,429
Secured by Government
2,025
war obligations
Secured by other col71,204
On time:
Not secured by collateral. 249,140
Secured by Government
24,708
war obligations
Secured by other col62,811
lateral
Secured by real estate mortgages, or other real estate
liens or deeds
43,978
Acceptances of other banks
discounted
3,246
Acceptances of this bank pur2,759
chased or discounted
Loans and discounts not
50
classified
217,951
1,941
65,285
5,979 30,990
3,192
7,517
32,801
10,315
4,101
3,031
5,419
4,785
1,043
1,381
11,298
2,351
273
134
164
600,093 85,577
97,479
159, 288 37,512
3,643
6,820
6,422
14,350 42,047
960,339 43,361 143,671 54,592 112,312.
195,599 22,787 20,644
372,804 22,302 72,367
57,018
81,150
7,258
6,261
8,770
30,805 63,771
513,879 113,582 35,590
34,803
8,657
1,677
200,740 76,114 26,187
221,778 32,994
6,690 113,768
8,437
13,075
300
3,962
76
275
21,692
2,549
118
644
115
2,531
2,013
206
Total loans and discounts
.
• • 487,350 2,376,033 192,533 488,310 118,871 251,679 1,198,292 284,280
3,703 21,592
67,301
34,471
19,233 1,143,668
27, 730 26,180 166,309 2,446,685
9,830
337,649
27,717 42,850 72,143
1,070,611
2,676
1,237
17,043
9,333
5,055 194,123
723,292
421
41
7,824
121,536
418
16,062
106
156
88,935 77,482 85,611 493,519 6,142,895
Abstract of condition reports of all member banks in each Federal Reserve district on June 80, 1920 {including 8,025 national banks and 1,874 State banks and trust
companies).
[In thousands of dollars.]
District
No. 1
(432
District
No. 2
(771
banks).
District
No. 3
banks).
District
No. 4
(860
banks).
District
No. 5
(603
banks).
District
No. 6
(440
banks).
District
No. 7
(1,395
banks).
District
No. 8
(562
banks).
District
No. 9
banks).
District
No. 10
(1,061
banks).
District
No. 11
(811
banks).
District
No. 12
(796
banks).
Total
United
States
(9,399
banks).
RESOURCES.
829,625 667,636 2,765,259 733,844 727,411 949,557 654,438 1,399,834 18,076,111
1,313,187 5,431,265 1,044,289 1,559,736
Loans and discounts
1,321
1,605
2,632
2,722
2,213
2,950
1,010
1,417
321
1,036
597
4,763
Overdrafts
22,587
Customers' liability on account of letters of
11,015
1
51
7
1,420
253
1,077
14
53
691
25
6,329
credit
8,464
4,800
652,001
17,350
35,147
74,654
12,763
86,471
338,606
25,631
28',
Customers' liability on account of acceptances..
4,911
15,140
91,780 139,334
246,968 2,941,655
396,615 115,879
167,223 129,953
250,100
813,998
297,
United States Government securities owned1.. 165,600
127,121
3,274
4,294
6,392
94,485
4,251
13,270
4,813
7,527
24,670
8,323
10,
Stock of Federal Reserve Bank
3,741
3,782
67,056
82,202
216,870 3,124,897
412,515 105,706
983,265
393,850
92,170
242,790
447,
Other bonds, stocks, and securities2
16,968
63,992
18,881
21,703
41,049
464,634
19,921
104,563
29,250
59,236
33,762
34,027
Banking house
20,418
21,937
59,
3,840
4,714
57,763
9,169
5,274
2,886
8,184
2,905
3,856
3,353
Furniture and fixtures
4,854
3,689
5,
4,193
2,622
69,066
9,158
3,729
9,576
6,349
2,624
5,065
2,953
Other real estate owned
5,296
4,303
13,
49,757
80,174
64,416
119,076 1,838,648
102,596
258,033
117,233
732,871
61,028
Lawful reserve with Federal Reserve Bank
54,249
53,848
145,
20,504
30,355
621,817
19,914
48,841
157,822
44,889
103,739
51,383
Cash in vault
33,129
23,692
23,898
63,
Items with Federal Reserve Bank in process of
8,037
615,116
45,019
26,118
62,720
22,564
26,058
64,235
40,588
49,829
161,003
72,258
36,687
collection
212,503 1,824,041
229,096
94,998
163,406
97,099
89,677 100,479
329,417
Due from banks, bankers, and trust companies.
87,448 101,274 216,263 102,381
Exchanges for clearing house, also checks on
11,841
24,649
8,322
860,755
15,109
41,397 1,228,799
45,974
45,684
20,710
16,579
34,219
103,560
other banks in same place
6,048
126,269
5,464
6,576
2,993
12,210
8,410
37,447
7,125
5,221
8,623
4,415
21,737
Outside checks and other cash items
1,853
38,505
2,493
2,066
2,436
3,292
2,596
5,710
3,220
2,036
4,929
3,164
4,710
Due from United States Treasurer
6,111
73,728
1,954
2,302
3,445
6,880
3,494
3,989
1,589
28,021
5,471
1,303
9,169
Approximate interest earned but not collected..
1,415
313,164
2,039
18,598
4,516
5,618
227,285
5,171
658
811
Other assets
27,492
18,572
2,250,067 10,162,319 2,135,224 2,917,876 1,394,163 1,144,372 4,670,339 1,242,015 1,133,344 1,620,372 1,066,681 2,457,529 32,194,301
Total..
LIABILITIES.
Capital stock paid in
384,497
109,082
166,960
134,257
449,092
Surplus fund
120,622
169,112
173,797
182,254
Undivided profits, less expenses and taxes paid..
49,294
42,342
62,459
Approximate interest and discount collected
31,641
but not earned
6,016
5,472
9,510
32,541
Amount reserved for taxes accrued
2,823
3,804
5,641
Amount reserved for interest accrued
8,812
1,952
2,221
2,676
Due to Federal Reserve Bank
1,453
7,537
1,562
3,914
166,589
Due to banks, bankers, and trust companies
136,258 1,399,216
226,690
Certified cashier's or treasurer's checks outstanding
453,735
13,202
20,092
17,432
Demand deposits
1,234,574 5,200,065 1,000,052 1,292,543
Time deposits
320,556
881,858
386,497
736,296
United States deposits
20,966
21,666
122,831
19,032
Bills payable with Federal Reserve Bank
,
470,398
120,273
53,538
46,685
Bills payable other than with Federal Reserve
Bank
7,194
5,013
4,382
4,791
Cash letters of credit and travelers' checks outstanding
1,264
280
22,629
Acceptances
88,953
353,256
26,323
28,297
National bank notes outstanding
47,303
54,546
84,134
89,920
4,241
United States bonds borrowed
10,215
34,086
20,394
178
Other bonds and securities borrowed
20
1,193
465
1,236
Other liabilities
1,791
37,531
3,398
Total.
Liability for rediscounts, including those with
Federal Reserve Bank 3
1
2
3
2,250,067 10,162,319
2,135,224
346,578
89,358
110,775
96,178
68,082
21,421
77,080
52,053
15,878
260,922
186,451
68,361
91,497
51,921
20,983
72,491
37,985
18,786
94,404
50,767
22,493
82,344
47,749
19,901
147,302
72,825
37,255
1,717,014
1,480,456
561,427
5,047
1,398
1,787
4,961
115,666
3,938
1,880
913
964
101,509
12,489
10,082
2,911
1,584
505,400
4,678
1,743
831
105
146,759
3,035
1,878
1,435
614
106,800
4,514
1,813
903
32
261,676
3,839
1,641
397
1,665
94,616
2,995
2,445
1,636
291
199,837
93,174
67,689
26,474
24,682
3,461,016
10,188
569,343
326,160
6,967
64,193
6,428
39,573
497,585 1,923,274
258,167 1,295,017
6,481
16,260
49,310
143,257
7,396
535,046
240,461
8,580
39,591
12,490
416,003
378,271
2,865
18,952
22,854
771,494
252,124
13,287
39,715
155,443
19,168
10,990
18,547
15,695
18,182
17,284
16,285
17,912
91
13,033
56,934
7,656
56
5,834
701
15,353
39,833
4,499
218
592
2,230
75,781
82,816
14,664
355
10,365
275
17,365
41,567
11,343
152
6,027
18
8,459
31,293
3,161
31
595
268
4,848
48,825
11, 402
1,030
639
178
5,068
46,895
3,530
459
250
36,829
63,587
5,669
425
4,407
4,670,339 1,242,015 1,133,344 1,620,372 1,066,681
2,457,529
32,194,301
112,825
1,558,792
2,917,876 1,394,163 1,144,372
64,584
648,361
31,892
13,079
592,380 1,034,813 15,067,172
96,908
738,611 5,910,926
260,179
5,063
16,181
34,434
41,721 1,122,067
74,517
80,498
343,221
100,471
85,328
93,679
Includes United States Government securities borrowed by national banks.
Includes other bonds and securities borrowed by national banks.
Includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks.
56,958
28,896
673,565
687,653
130,860
4,582
72,665
O
O
00
SEPTEMBER, 1920.
1009
FEDERAL RESERVE BULLETIN.
Abstract of condition reports of all member banks of the Federal Reserve system on June 30, 1920, arranged by classes (including 8,025 national banks and 1,374 State banks and trust companies),
[In thousands of dollars]
Central Reserve city banks.
Other
Reserve
city banks
New York Chicago
St. Louis
Total
(63 banks). (23 banks). (22 banks). (108 banks) (553 banks).
Country
banks
(8,738
banks).
Total
United
States
banks)
June 30,
1920.
Total
United
States
(9,291
banks)
May 4,
1920.
RESOURCES.
Loans and discounts
Overdrafts
Customers' liability on account of letters of
credit
Customers' liability on account of acceptances.
United States Government securities owned 1 ..
Stock of Federal Reserve Bank
Other bonds, stocks, and securities 2
Banking house
Furniture and fixtures
Other real estate owned
Lawful reserve with Federal Reserve Bank
Cash in vault
Items with Federal Reserve Bank in process
of collection
Due from banks, bankers, and trust companies
Exchanges for clearing house, also checks on
other banks in same place
Outside checks and other cash items
Due from United States Treasurer
Approximate interest earned but not collected.
Other assets
Total.
4,249,273
4,188
6,124
329,909
572,249
18,477
543,901
71,201
1,000
4,369
619,667
108,231
1,016,834
377
294.445
81
5,560,552
4,646
655
64,964
59,662
4,927
103,025
11,973
120
204
127,306
33,706
180
14,755
28,205
1,845
47,402
7,469
747
1,890
31,246
5,062
6,959
409,628
660,116
25,249
694,328
90,643
1,867
6,463
778,219
146,999
5,607,241
5,681
3,266
218,819
825,317
30,101
955,726
162,686
12,472
27,722
538,214
180,640
6,908,318 18,076,111
12,260
22,587
790
11,015
23,554
652,001
1,456,222 2,941,655
39,135
94,485
1,474,843 3,124,897
211,305
464,634
43,424
57,763
34,881
69,066
522,215
1,838,648
294,178
621,817
119,591
130,689
40,148
131,095
26,074
30,390
186,713
292,174
364,203
706,053
64,200
825,814
615,116
1,824,041
580,063
1,874,173
841,880
28,338
3,173
21,328
224,390
69,272
8,536
280
1,599
23,163
9,741
927
547
625
593
920,893
37,801
4,000
23,552
248,146
244,575
53,996
10,194
18,749
54,789
63,331
34,472
24,311
31,427
10,229
1.228,799
126,269
38,505
73,728
313,164
867,427
102,996
38,187
66,070
323,899
7,897,978
1,697,846
503,124
10,098,948
10,020,444
12,074,909
32,194,301
31,748,572
266,462
359,992
84,800
80,777
37,775
23,710
389,037
464,479
529,164
483,518
798,813
532,459
1,717,014
1,480,456
1,695,555
1,446,915
138,893
22,446
170,223
158,663
232,541
561,427
26,131
30,624
6,970
3,122
1,319,575
7,639
7,132
574
203
322,474
77,245
36,213
38,588
7,808
3,325
1,719,294
30,212
20,246
6,862
5,652
1,362,380
26,749
8,855
11,804
15,705
379,342
93,174
67,689
26,474
24,682
3,461,016
62,560
39,404
21,547
3,524,359
439,893
4,030,805
296,026
110,016
400,312
19,419
808,233
221,381
4,933
43,981
3,240
209,437
85,341
6,359
14,606
462,552
5,048,475
602,748
121,308
458,899
109,133
4,525,420
1,798,642
94,961
367,203
76,676
5,493,277
3,509,536
43,910
295,965
648,361
15,067,172
5,910,926
260,179
1,122,067
518,517
14,833,215
5,747,532
190,168
1,246,721
673
48,053
106,717
155,443
133,497
199
14,737
10,523
7,373
24,121
425,120
47,829
41,076
1,059
36,121
3,751
224,018
170,857
55,145
1,699
24,865
1,024
24,427
468,967
34,639
1,824
11,679
28,896
673,565
687,653
130,860
4,582
72,665
36,109
673,852
687,931
123,143
6,119
83,945
12,074,909 32,194,301
31,748,572
17,794,164
22,080
7,482
655,405
3,081,156
92,435
3,175,951
453,922
55,808
70,819
1,865,638
620,897
LIABILITIES.
Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes
paid
Approximate interest and discount collected
but not earned
Amount reserved for taxes accrued
Amount reserved for interest accrued
Due to Federal Reserve Bank
Due to banks, bankers, and trust companies.
Certified and cashiers' or treasurers' checks
outstanding
Demand deposits
Time deposits
United States deposits
,
Bills payable with Federal Reserve Bank
Bills payable other than with Federal Reserve Bank
Cash letters of credit and travelers' checks
outstanding
,
Acceptances
,
National bank notes outstanding
,
United States bonds borrowed
Other bonds and securities borrowed
Other liabilities
Total.
Liability for rediscounts, including those with
Federal Reserve Banks
Ratio of reserve with Federal Reserve Bank
to net deposit liability (per cent)
1
2,443
832
264
573
100
22,506
344,239
36,960
30,453
1,059
33,367
1,416
66,144
346
3,250
2,598
156
7,897,978
1,697,846
503,124
301,142
212,034
55,456
568,632
12.8
12.9
12.4
12.8
10,098,948 10,020,444
10.0
296,192
1,558,792
1,551,047
7.4
9.9
10.1
Includes United States Government securities borrowed by national banks.
* Includes other bonds and securities borrowed by national banks.
includes acceptances of other banks and foreign bills of exchange sold with indorsement or other guaranty by national banks.
INDEX.
Acceptances:
Banks granted authority to accept up to 100 per cent of capital
and surplus
945
Purchased by Federal Reserve Banks during July
984,985
Bank deposits in Great Britain, France, and Italy
909
Banking situation, discussion of
910
Books received by Federal Reserve Board library
946
Boots and shoes, terms of sale in the industry
930
Boxes and shooks, terms of sale in the industry
937
Branches, foreign, of American banks
944
Brick, terms of sale in the industry
938
Builders' supplies, terms of sale in the industry
939
Building operations, loans for
927
Business and financial conditions during August
912
Movement of loans
920
Collection conditions
922
Production and orders of underwear
925
Condition of wholesale trade
926
Cement industry, terms of sale in
938
Certificates of indebtedness:
Issued during August
897
Maturities of, purchased by Federal Reserve Banks
992
Charters issued to national banks during August
946
Charts:
Discount and interest rates in the New York market
942
Wholesale prices in the United States
964
Clayton Act as applied to private bankers, ruling on
948
Clearing and collection:
Collection of bill of lading drafts received from nonmember
bank for account of member bank, ruling on
948
Interdistrict time schedule
987
Number of member banks on par list
986
Operations of the system, July-August
986
'Clearing-house bank debits, July-August
978
Collection conditions, reports on
922
Commercial failures reported
945
Condition reports:
Federal Reserve Banks
988
Member banks in leading cities
995-1001
Abstract of
1005-1009
Credit control
897
Crop report for August
943
Currency circulation in Great Britain, France, and Italy
909
Currency, stock of, in the United States
1004
Currency situation and foreign exchange
898,901
Debits to individual account, July-August
978
Discount and open-market operations of Federal Reserve Banks 981-985
Acceptances purchased during July
984,985
Bills discounted during July
984
Bills held on last Friday in July
985
Collateral notes held on last Friday in July
985
Dollar exchange bills purchased during July
984
Earning assets held during July
983
Member banks, number of, accommodated
982
Discount rates:
In the New York market
941
In effect August 31
1004
Prevailing in various centers
967
Earning assets held by Federal Reserve Banks
983
Erratum—note circulation of the United Kingdom
928
Failures, commercial, reported
945
Federal Reserve Banks:
Discount and open-market operations of
981-985
Resources and liabilities of
988-992
Federal Reserve note account of Federal Reserve agents
993
Fiduciary powers:
Granted to national banks
946
Real estate loans by national banks exercising, ruling on
949
Financing of the Treasury during August
897
Foreign branches of American banks
944
Foreign exchange rates
900
Foreign loans
901
Foreign trade
S99,902
Index of
953
Furniture, terms of sale i11I"1 e industry
936
Glass and glassware, terms ox ^ale in the industry
940
Gold:
Imports and exports of
909,1002
Reserves in Great Britain, France, and Italy
909
Gold settlement fund transactions
976
Imports and exports:
'
Gold
909,1002
Silver
910,1003
Index numbers:
Foreign trade
953
Physical volume of trade
968
Retail trade
951
Wholesale prices abroad
954
Wholesale prices in the United States
963
Interdistrict time schedule
987
Interest rates:
In the New York market
941
Prevailing in various centers
967
Irrigation company, paper of, as commodity paper, ruling on
949
Law department:
Amendment to Texas banking laws
950
League of Nations, report by, on currency situation and foreign
exchange
898,901
Leather industry, terms of sale in
932
Loans for essential industry
904,927
Loans, movement of, in the several districts
920
Lumber industry, terms of sale in
933
Maturities:
Acceptances purchased
984
Bills discounted and bought
984
Certificates of indebtedness purchased
992
Member banks:
Condition reports of
995-1001
Abstract of
1005-1009
Number discounting in July
982
Number in each district....'
982
Resources and liabilities of, in leading cities
995-1001
State banks admitted to system during August
945
Moehlenpah, H. A., retirement of, as member of Federal Reserve
Board
911
Money, stock of, in the United States
1004
National Banks:
Charters issued to, during August
946
Fiduciary powers granted to
046
Foreign branches of
944
Real estate loans by, exereising trust pow ers
949
Paint and varnish industry, terms of sale in
940
Physical volume of trade
968
Prices:
Wholesale, abroad
COS, 954
Wholesale, in the United States
905,963
Rates:
Acceptances purchased during July
984
Bills discounted during July
984
Discount, in effect
1004
Discount and interest, in the New York market
941
Discount and interest, in various centers
967
Earning assets held by Federal Reserve Banks
983
Foreign exchange
900
Real estate loans by national banks exercising trust powers, ruling on
949
Resources andliabilities:
Federal Reserve Banks
988-992
Member banks in leading cities
995-1001
Retail trade index
951
Review of the month
897
Rulings of the Federal Reserve Board:
Clayton Act as applied to private bankers
948
Collection of bill of lading drafts received from nonmember
bank for account of member bank
948
Paper of irrigation company
949
Real estate loans by national banks exercising trust powers
949
Shoe industry, terms of sale in
930
Silver, imports and exports of
910,1003
State banks and trust companies admitted to system
945
Tanning industry, terms of sale in
928
Terms of sale in the principal industries
928-941
Texas banking laws, amendment to
950
Tile, terms of sale in the industry
938
Time schedule, interdistrict
987
Trade:
Foreign
899,902
Index of
953
Physical volume of
968
Retail, index of
951
Wholesale, reports on
926
Treasury financing during August
897
Varnish industry, terms of sale in
940
Wholesale prices:
Abroad
954
In the United States
963
Wholesale trade, reports on
926
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FEDERAL RESERVE BANK CITIES
FEDERAL RESERVE BRANCH CITIES
The branch at Helena, Mont., lias been authorized by the Federal Reserve Board, but is not yet open for business.
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@FedFRASER