Full text of Federal Reserve Bulletin : September 1939
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FEDERAL RESERVE
BULLETIN
SEPTEMBER 1939
n •
Growth and Distribution of Banking Funds
Interest Rates on Customers' Loans
Estimated Expenditures for Durable Goods
BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM
CONSTITUTION AVENUE AT 20TH STREET
WASHINGTON
TABLE OF CONTENTS
Review of the month—Recent growth and distribution of banking funds
National summary of business conditions
Summary of financial and business statistics
Law Department:
Amendment to Regulation L
Revision of Regulation J
Rulings of the Board:
Whether Regulation T permits domestic broker to borrow from foreign broker
Capital contribution loans between members of a national securities exchange
Social Security Act made applicable to member banks
Proclamation and amendment to regulations relating to silver
Rates charged by banks on customers' loans
All member banks—Condition on June 30, 1939, by classes of banks
All member banks—Classification of loans, investments, real estate, and capital on June 30, 1939, by classes
of banks
Number of banks and branches 1933-1939; analysis of changes in number of banks and branches; January
1-June 30, 1939
Estimated expenditures for new durable goods 1919-1938
New German Reichsbank Law
Cuban Monetary Legislation
Annual report of the Bank for International Settlements
Annual report of the German Reichsbank
Financial, industrial, and commercial statistics, United States:
Member bank reserves, Reserve bank credit, and related items
Federal Reserve bank statistics
Reserve position of member banks; deposits in larger and smaller centers
Money in circulation
Gold stock and gold movements; bank suspensions; bank debits
All banks in the United States
All member banks
Condition of reporting member banks in leading cities
Acceptances, commercial paper, and brokers' balances
Federal Reserve bank discount rates
Money rates and bond yields
Security markets
Treasury finance
Governmental corporations and credit agencies; Postal Savings System
Production, employment, and trade
Wholesale prices
Crop report
Statistics for Federal Reserve chart book
International financial statistics:
Gold reserves of central banks and governments
Gold production
Gold movements
International capital transactions of the United States
Central banks
Bank for International Settlements
Money rates
Discount rates of central banks
Commercial banks
Foreign exchange rates
Price movements:
Wholesale prices
Retail food prices and cost of living
Security prices
Federal Reserve directory:
Board of Governors and staff; Open Market Committee and staff; Federal Advisory Council
Senior officers of Federal Reserve banks; managing directors of branches
II
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709-714
715-716
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722
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725-726
727
728
729-730
731-736
737-742
742-745
746-772
773-778
780
781-785
786
787
788
789
790-791
792-795
796
797
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799
800-801
802-803
804-812
813
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824-827
828
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829
829-830
831
832
833
833
836
837
FEDERAL RESERVE BULLETIN
VOL.
25
SEPTEMBER, 1939
REVIEW OF THE MONTH
Since early in 1938 bank deposits and reserves have increased steadily, and they are
now at record high levels.
Growth and
This increase is a resumption
distribution of
banking funds
~
of
a
,,
,i
,
,.
1
growth that continued
from early in 1934 to the end
of 1936 but was interrupted in 1937. The
recent growth has been the result of a continued inflow of gold to this country, a factor responsible for most of the increase in
reserves and a large part of the growth in
deposits during the earlier period. In 1937
when the Treasury followed a policy of holding newly purchased gold in an inactive account, the gold inflow had little effect on the
supply of banking funds, but in April 1938
the Treasury made use of the inactive gold
fund to build up its balance with the Reserve banks, and as the proceeds were expended by the Treasury they increased
bank deposits and reserves. During the past
twelve months the gold inflow from abroad
has been larger than in any previous period
of the same length.
The gold inflow has increased both deposits
and reserves; deposits, in addition, were increased from the beginning of 1934 to the
end of 1936 as a result of considerable expansion in bank loans and investments. In 1937
and the first half of 1938 loans and investments declined somewhat, causing a decrease
in bank deposits during most of that period.
In the past year the growth in loans and investments has been resumed but at a less
rapid rate than in the 1934-1936 period.
Most of the growth in reserves and about
half of that in deposits during the past year
has been at New York City banks. While
banks in other cities and country banks now
hold larger deposits and reserves than at any
No. 9
previous time, they have not shared in the
recent increase to the same extent that they
did in the growth from 1934 to 1936. Partly
because the gold inflow during the past year
has reflected to a larger extent than formerly
a growth in balances held by New York City
banks for the account of foreigners and partly
because of smaller purchases of Government
securities by New York City banks during the
past year than in the 1934-1936 period, redistribution of the new reserve funds among
banks throughout the country has proceeded
more slowly. In both periods there was a
growth of interbank deposits in New York,
which shifted reserves from the accounts of
interior banks to those of New York City
banks.
Since early in 1938 member bank reserve
balances have risen to successive new high
levels and excess reserves,
Factors in
which had been substan1937 by increases in reserve
requirements, reached a new high level by
the end of 1938. From early in December
1938 to the latter part of March 1939, although temporary factors caused sharp fluctuations in reserves, excess reserves continued in the neighborhood of $3,400,000,000.
Since March, they have risen almost steadily
and on August 23 exceeded $4,700,000,000.
The rise in reserve balances during this period
amounted to $1,800,000,000, but was accompanied by an increase of $500,000,000 in
required reserves, due to a growth in deposits.
Changes in member bank reserves and the
principal factors accounting for them are
shown in the chart on page 717 of this
BULLETIN.
The increase in monetary gold stock, the
principal factor in the growth in reserves
709
710
FEDERAL RESERVE BULLETIN
this year, has amounted to nearly $2,000,000,000 since the end of December. Approximately half of the movement occurred in the
months of March and April—the period of
world political tension accompanying German occupation of Czecho-Slovakia. In January and February and again in the period
from May until early August the increase in
the gold stock averaged about $40,000,000 a
week. Imports of gold in this period were
in excess of the increase in gold stock,
owing to an offsetting increase in gold earmarked for foreign central bank account at
the Reserve banks. In the latter part of
August there was an accelerated expansion
in the gold stock, reflecting both imports and
releases of gold from earmark.
There have also been changes of some importance in other factors affecting bank reserves. Treasury cash balances and deposits
with the Federal Reserve banks, which had
been reduced somewhat following abandonment of the inactive gold account in April
1938, and then built up again by new borrowing in September, December, and February,
have been reduced by about $900,000,000
since March. Increases in reserves since
March as a result of the gold inflow and the
reduction in Treasury balances have been
offset somewhat, however, by a growth of
about $350,000,000 in money in circulation
since early in March and by a recent reduction of $140,000,000 in Federal Reserve bank
holdings of Treasury bills.
The reduction in holdings of Treasury bills
in the Federal Reserve System Open Market
Account occurred in the
System open-market
operations
eigM
te
weekg
ending& Au-
gust 16, in accordance
with the announcement by the Federal Open
Market Committee on June 30, 1939. This
announcement pointed out that for some time
past Treasury bills had been purchased for
the System Account at or near a no-yield
basis and that the Account at times had had
difficulty in replacing its maturing bills. The
Committee decided that it would serve no
useful purpose to continue full replacement
SEPTEMBER 1939
of maturing bills, the supply of which is not
always equal to the market demand. This
action was in response to technical conditions
in the bill market and did not represent a
change in general credit policy.
In the first half of 1938 the amount of
Treasury bills outstanding had declined to
$1,300,000,000, as compared with about $2,300,000,000 outstanding in 1936 and 1937.
With this reduction in the supply of bills
the average rate on new issues of 90-day
Treasury bills declined, and late in 1938 and
during the early part of 1939 these issues sold
either on or near a no-yield basis. Treasury
bills held by the Federal Reserve banks were
reduced from $477,000,000 on June 21 to
$336,000,000 on August 16. This decline
represented replacements of $154,000,000
against maturities of $296,000,000. Following this action the supply of bills in the
market available for investment by banks,
corporations, and other investors became
correspondingly larger, and the average rate
on new issues of bills increased somewhat
to 0.042 per cent on August 23, compared
with 0.003 per cent on June 21.
The following table shows changes in the
distribution of holdings of Treasury bills
during the period under discussion. It will
be noted that banks outside the 101 leading
cities and other investors purchased 60 per
cent of the supply of bills made available by
the reduction in System Account holdings.
Reporting member banks took 40 per cent
with New York City banks by far the largest
buyers among the classes of banks shown.
DISTRIBUTION OF UNITED STATES TREASURY BILLS
[In millions of dollars]
June 21,
1939
System Open Market Account
Reporting member banks in leadin;
cities—total
New York
Chicago
Other
Other holders
Total outstanding
Aug. 16,
1939
Change
477
336
-141
440
495
+55
173
185
82
220
206
+47
+21
-13
391
+85
1,307
-1
SEPTEMBER 1939
That a large part of the growth in banking
funds during recent months has occurred in
New York City is due to some
Distribution of
extent
to the source of these
banking funds
funds. Because most foreign
exchange transactions take place in New
York the effect of a gold inflow on member
bank deposits and reserves is likely in the first
instance to add to balances of New York City
banks. To the extent to which purchases of
dollars by foreigners are for the purpose of
making payments in the United States for
merchandise exports or services, foreign
funds sent here are likely to be distributed
over the country. The purchase of securities
by foreigners in this country may also result
in some distribution of the funds to centers
other than New York. In the past year, however, an unusually large proportion of gold
movements to this country has been accounted
for by the building up of balances for foreign
account with American banks. Since the end
of July 1938 the increase in foreign balances
in American banks, other than balances of
foreign central banks with the Reserve
banks, has exceeded $1,000,000,000, a larger
amount than in any other twelve-month period for which comparable figures are available. Since these balances are largely held
on deposit with New York City Banks, they
are not as widely distributed through the
country as are those funds with which foreigners purchase commodities, services, or
securities.
In the 1934-1936 period, a part of the additional reserves obtained by New York City
banks as a result of the gold inflow was redistributed among interior banks as a result
of purchases of Government securities by the
New York banks and expenditure by the
Treasury of the funds thus obtained. The
public debt has increased in the past two
years just as it did in the earlier period,
but banks have purchased a relatively smaller
part of the obligations sold by the Treasury,
and individual and institutional investors
throughout the country have purchased relatively more. Also substantial amounts of
711
FEDERAL RESERVE BULLETIN
special obligations have been issued to Government agencies and trust funds, representing investment of social security taxes
collected throughout the country.
The accompanying chart shows the principal factors accounting for movements of
funds in and out of the New York Federal
Reserve district. The chart is divided into
FACTORS OF GAINS AND LOSSES OF RESERVE FUNDS
AT BANKS IN NEW YORK F. R. DISTRICT
BILLIONS OF DOLLARS
'
BILLIONS OF DOLLARS
I i"N "•»
A
I *•* - * /•%
I
)
^*
1937- 1939
Gold Imporis
S,-*^
Business Transactions
Balances in N.Y. City
of Out-of- town Bonks
i
~\^^s~>r*
Treasury Transactions
1937
1938
1939
Weekly figures of gains and losses cumulative from January 1,
1934 to December 30, 1936 on upper chart, and from December
30, 1936 to August 16, 1939 on lower chart. Curves above zero
line represent funds gained, below zero line funds lost.
two sections, showing in one section cumulative movements for the period 1934-1936
and in the other section similar movements
for the period 1937-1939. In both of these
periods the gold inflow brought close to
$4,000,000,000 of reserve funds into the New
York Federal Reserve district. During the
712
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
1934-1936 period, funds also flowed to New There have been moderate withdrawals for
York to build up the balances of out-of-town business account, largely counter-balanced
banks, and as the net result of business and by a renewed increase in balances of out-offinancial transactions between New York and town banks with New York City correspondthe rest of the country. In part the latter ents. As a consequence funds brought into
inflow reflected funds sent to New York for New York by the gold inflow have largely
the purchase of government obligations, and remained in New York City banks. Since last
subsequently withdrawn by the Treasury for March, when New York City banks have been
expenditure elsewhere. Total Treasury with- increasing their holdings of Government obdrawals from the New York district (or the ligations and the Treasury has been reducing
excess of funds raised there through the its balances, reserves of banks outside New
sale of government obligations and through York have increased somewhat more than
taxes over disbursements and redemptions) they did in 1938, but the movement has not
amounted to about $4,000,000,000 and sub-been as pronounced as in earlier years.
stantially offset the inflow of funds on other
Changes in deposits, reserves, and total
account. In 1937 both the Treasury and cor- loans and investments for the different
respondent banks withdrew funds from New
classes of member banks are
York. Since the middle of 1938, however, Recent changes shown in the following set
in condition
when gold imports have again been excep- of
of three charts. These charts,
banks
tionally large, Treasury withdrawals from
which are based upon figNew York have been relatively small, ures from the member bank call report,
largely for reasons previously explained. depict the extent of the growth in deposits,
CONDITION
OF MEMBER
CALL
NEW YORK CITY BANKS
BANKS BY CLASSES OF BANKS
REPORT
DATES,
1934-1939
OTHER RESERVE CITY BANKS*
11
COUNTRY BANKS
L. 1L
14
/
10
13
TOTAL LOANS
AND INVESTMl:NTS
9
1
8
/
v\
MAND DEPOS I T S
ADJ LISTED
r
\
/
/
AOJUSTED
1
/
t
J
5
/
1
/
/
RES ERVE
BALI NCES
4
/
r
—
/
•
•
V
BALANCES DUE
TO BA MKS
•
-
\
3
2
Q
>
1H
.
s^/RESERVE
^^
BALANCE
s
v
E ALANC ES DU E
FROM BANKS ^ /
\J/\
I
^-
BALANCES DUE
FROM BANKS
0
RESE W E
0
1936
1938
1934
I)EMANC DEPO JITS
AD USTED
/
BALI NCES DUE
y
T 0 BAN <S
3
2
I1
y
6
/
y
/
7
TOTAl. LOA^ s
AND INN/ESTME NTS
/
12
J
/
I.OANS
INVES TMENT s
AND
10
V
J T DTAL
1936
1938
1934
B/\LANCI
s
SEPTEMBER 1939
FEDERAL RESERVE
713
BULLETIN
reserves and total loans and investments at try banks and declined substantially at New
New York City banks, at banks in other York City banks. The net effect for member
reserve cities including Chicago, and at coun- banks in the aggregate, as shown in the foltry banks. They show that, although all lowing table, was a further growth in investclasses of banks have had a growth in de- ments and little change in loans.
posits in the past year, the increase at banks
The changes in investment holdings reoutside New York City has not been as large flected in part shifts in outstanding amounts
relatively as that in New York City or as of different types of Government obligations.
that which occurred in the same classes of Most of the increase in investments was in
banks in the 1934-1936 period. Loans and obligations fully guaranteed by the United
investments at member banks have increased States Government, additional offerings of
in the past year. At banks outside New which were made by Federal agencies in the
York on June 30, 1939, they were close to period. Holdings of Treasury notes declined
the level reached at the end of 1936, but at and those of Treasury bonds increased, repNew York City banks only a small part of resenting in part conversion of notes into
the 1937 decline has been regained.
bonds at the March financing. Commercial,
In the first six months of 1939, at New agricultural, and real estate loans increased,
York City banks adjusted demand deposits while security loans declined. "Other" loans,
increased by $850,000,000 and balances of which include personal loans, increased someother domestic banks by $300,000,000. Among what.
assets the growth in reserves amounted to
OF ALL MEMBER BANKS
$870,000,000 and in total loans and invest- LOANS AND INVESTMENTS
J U N E 30, 1939
ments to $350,000,000. At banks in other
[In millions of dollars]
reserve cities, including Chicago, the gain
Change since Dec. 31, 1938
in adjusted demand deposits was less than
half that of New York City banks, but, as at
New
June 30, All
York Other Coun1939
New York City banks, corresponded closely
mem- central reserve try
ber
reserve city banks
to the increase in reserves. An increase in
banks
city banks
banks
amounts due to domestic banks by these city
banks was approximately matched by the in- Total loans
+161
-274
+47
-67
13,141
crease in their own balances with other Commercial loans
+47
+46
4,783
+18 - 2 0
+48
+76
788
+1 +28
loans
banks. Their total loans and investments Agricultural
+2
-13
-22
420
-11
Open market paper,
__ _
-3
-8
731 -242
-231
Loans to brokers and dealers _
increased by $185,000,000. At country mem- Loans to others on securities _ 736 - 3 9
-14
-19
-5
+49
2,828 +112
+9 +54
Real estate loans „ _ _
ber banks adjusted demand deposits showed Loans to banks
-8
-67
58
-58
+68
2,796
+4 +33
+31
only a small growth in the first half of Other loans _ _ _
-165
+627 +137
19, 462 +599
Total investments, _
1939 but time deposits increased by about
States
Govern$100,000,000. These banks increased their United
-106
+34
+626
13, 777 +555
ment obligations—total
balances due from domestic banks someDirect obligations:
441 +155
Bills
+9 +147
what and their balances with reserve banks
-169
-234 -267
2,720 -669
Notes
-21
-23
7,785 +578
Bonds _ _. .
+622
slightly. There was practically no change in
Fully guaranteed obliga+86
+229 +175
tions^
_ _.
% 831 +491
their total loans and investments.
of States and poCall report figures as of June 30 show Obligations
+43
2,554 +106
- 3 7 +100
litical subdivisions
3,131
-61
+3 -102
Other securities
+38
that while city banks increased their holdings
-4
+353 +184
Total loans and investments 32, 603 +533
of investments during the
Includes Chicago central reserve city banks.
Changes in
first
half of 1939, country
anfinvestmems
banks' investments were
At New York City banks, loans declined
further reduced. Loans, on during the first six months o1' 1939, because
the other hand, increased somewhat at coun- of a sharp reduction in loans to brokers and
1
1
714
FEDERAL RESERVE BULLETIN
dealers in securities. Loans to banks also
declined slightly while commercial loans
showed a moderate increase. Since the end
of June weekly reporting banks in New York
have shown a further increase in commercial
loans. At reserve city banks, including central reserve city banks in Chicago, there was
a small increase in total loans during the first
six months of the year, reflecting largely a
growth in agricultural and real estate loans.
At country banks loans have been increasing almost steadily since the beginning of
1936 and are now at the highest level since
the end of 1932. The increase in the first
half of 1939 totaled $160,000,000. There were
increases of nearly $50,000,000 each in commercial, agricultural, and real estate loans,
a small decline in security loans, and a small
increase in all other loans. Agricultural loans
at reserve city banks and country banks have
declined somewhat since June as maturing
corn and cotton loans, which had been made
by banks under terms prescribed by the Commodity Credit Corporation, were taken over
by the Corporation in accordance with the
regular agreement included in the loans.
Investment holdings of city banks have
increased further this year. The increase
has been mostly at New York City banks.
These banks increased their Treasury bond
portfolio by nearly $625,000,000 during the
first six months of the year, while reducing
their Treasury notes by $235,000,000. These
changes represented in part conversion of
notes into bonds at the March financing and
in part purchases of bonds from other investors, including interior banks. New York
City banks also purchased $230,000,000 additional Government guaranteed obligations
SEPTEMBER
1939
during the period. Holdings of other securities by these banks showed little net change,
corporate securities increasing and obligations of States and political subdivisions decreasing. Since June 30, however, according
to weekly figures, United States Government
obligations held by New York banks have
shown little change, while obligations of
States and political subdivisions have increased somewhat, reflecting purchases by
these banks of a large share of a new issue of
New York State short-term notes.
At other reserve city banks Government
security portfolios showed little change during the first half of the year, and at country
banks there was a decrease of over $100,000,000. There were reductions in Treasury
notes and increases in Government guaranteed obligations. Holdings of Treasury bills
increased at Chicago banks. Obligations of
States and political subdivisions increased
further both at reserve city and country banks
during the period. Such holdings for these
banks have increased by over $350,000,000
since the end of 1937. At country banks
holdings of corporate securities decreased
further to the lowest level in the period of
over 10 years for which figures are available.
Appointment of Class C Director at a Federal
Reserve Bank
On August 21,1939, Charles P. McCormick,
President, McCormick & Co., Inc., Importers,
Exporters and Packers, Baltimore, Maryland,
was appointed a Class C director of the Federal Reserve Bank of Richmond for the unexpired portion of the term ending December
31, 1941.
715
FEDEEAL RESERVE BULLETIN
SEPTEMBER 1939
NATIONAL SUMMARY OF BUSINESS CONDITIONS
[Compiled August 16 and released for publication August 18]
In July industrial activity, seasonally ad- Plate glass production declined sharply in
justed, rose sharply and was close to the level July, following a substantial increase in June.
reached last December. Prices of some in- Changes in output of nondurable manudustrial materials increased in recent weeks factures in July were largely of a seasonal
while those for agricultural products con- nature. At cotton textile mills and meatpacking establishments activity showed
tinued to decline.
Production.—The Board's index of indus- somewhat less than the usual declines and at
trial production, according to preliminary sugar refineries output increased from the
returns, advanced to 102 per cent of the 1923- low level reached in June. Flour production
1925 average in July as compared with 98 in continued in substantial volume.
June and 92 in April and May. The advance
Mineral production expanded further in
in July reflected chiefly a considerable further July as output of bituminous coal continued
increase in output of iron and steel, which to increase and petroleum production, which
usually declines at this season. Steel ingot had been reduced in June, rose sharply. On
production rose from an average rate of 52 August 14 the Texas Railroad Commission
per cent of capacity in June to 57 per cent in ordered a shutdown of most Texas oil wells
July and in the first three weeks of August for 15 days, beginning August 15, and subwas maintained around 60 per cent which for sequently similar shutdowns were ordered in
the month would represent about the usual several other important oil producing States.
Value of construction contracts, as reseasonal increase. Lumber production showed
little change in July, although a decline is ported by the F. W. Dodge Corporation, increased somewhat in July, owing principally
usual.
to a small rise in contracts for public projINDUSTRIAL PRODUCTION
ects. Awards for residential work, both
140
140
public and private, were practically un130
130
changed from the June total.
120
120
Employment,—Factory employment, which
110
110
usually declines in July, was maintained this
I"
100
year at about the June level and payrolls
100
showed a less than seasonal decrease, accord90
90
ing to reports from a number of leading in80
80
dustrial
States.
70
PER CENT
70
CENT
r\ i
/
/
/
\\ f V
,/
FREIGHT-CAR LOADINGS
60
1935
1936
1937
1938
1939
Index of physical volume of production adjusted for seasonal
variation, 1923-1925 average = 100.
In the automobile industry output showed
a sharp seasonal curtailment during July and
the first half of August, reflecting preparations for the shift to new model production
which will be made about a month earlier this
year than in other recent years. Retail sales
of new cars continued in excess of production and dealers' stocks were greatly reduced.
PER CENT
PER C
110
110
100
100
90
90
80
80
70
V
60
•
V
/
\
v/
V
50
70
60
50
40
40
1934
1935
1936
1937
1938
1939
Index of total loadings of revenue freight, adjusted for seasonal.
variation, 1923-1925 average = 100.
716
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
Distribution.—Sales at department and
Bank credit.—Total loans and investments
variety stores in July showed about the cus- of member banks in 101 leading cities intomary seasonal decline. In the first half creased substantially during the four weeks
of August department store sales increased. ending August 9, reflecting chiefly increases
Freight-car loadings increased further in holdings of United States Government obfrom June to July. Loadings of coal con- ligations and the purchase by New York
tinued to expand and shipments of miscel- banks of a large share of a new issue of New
laneous freight, which usually decline at this York State short-term notes. Commercial
season, showed little change.
loans continued to increase at New York
Commodity prices.—Prices of most farm banks but declined at banks in 100 other leadproducts and foods declined from the be- ing cities as corn and cotton loans that were
ginning of July to the middle of August. approaching maturity were taken over by the
Commodity Credit Corporation in accordance
WHOLESALE PRICES
with a standing agreement. Deposits at reporting banks remained at high levels.
MEMBER BANK RESERVES
BILLIONS OF DOLLARS
12
1935
1936
1939
Indexes compiled by United States Bureau of Labor Statistics,
1926 = 100. By weeks, January 6, 1934, to August 12, 1939.
1934
Some industrial materials, principally steel
scrap, nonferrous metals, and textile fabrics,
showed advances in this period, while crude
petroleum prices were reduced.
Agriculture.—On August 1 prospects for
major crops were about the same as a month
earlier, according to the Department of Agriculture. The first official estimate on cotton
indicated a crop of 11,400,000 bales, somewhat smaller than last year's crop and 2,400,000 bales less than the 1928-1937 average.
World carryover of American cotton, however, was estimated to have been somewhat
larger on August 1 than the record volume
of a year ago.
1935
1936
1937
1938
1939
Wednesday figures of total member bank reserve balances at
Federal Reserve banks, with estimates of required and excess
reserves, January 3, 1934, to August 16, 1939.
Excess reserves of member banks increased
further to new high levels in the latter part
of July and the first half of August, owing
principally to gold imports and net Treasury
disbursements, partly offset by a reduction in
Federal Reserve bank holdings of Treasury
bills.
Money rates.—The average rate on new
issues of 90-day Treasury bills has increased
slightly in recent weeks and on August 16
was 0.032 per cent. Prices of Treasury bonds
showed little change from the middle of July
to the middle of August.
SEPTEMBER
717
FEDERAL RESERVE BULLETIN
1939
MEMBER BANK RESERVES AND RELATED ITEMS
WEDNESDAY FIGURES
BILLIONS OF DOLLARS
BILUflflS OF DOLLARS
16
15
16
14
14
15
13
13
GOLD STOCK
12
12
11
11
10
10
9
9
8
8
MONEY IN CIRCULATION
7
7
XL
6
6
5
5
-TREASURY CASH_
4
4
3
3
2
2
1
1
1934
1935
1936
1937
1938
1934
1935
1936
1937
1938
Latest figures for August 16. See table on p. 780.
1939
718
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
SUMMARY OF FINANCIAL AND BUSINESS STATISTICS
1939
1938
July
2,569 2,591 2,582 2,599
4
5
4
8
1
1
1
1
2,527 2,563 2,564 2,564
16,182 16, 028 15,878 12 985
2,887 2,870 2,856 2*716
7, 051 6,966 6,919 6,464
2,534 2,568 2,663 2,318
929
780
926
717
940
952
812
634
10, 321 10, 085
4,402 4,246
22, 046
8,146
3,888
648
532
3,078
13, 900
8,499
2,158
3,243
8,645
448
2,765
17, 366
5,238
6,890
21, 887
8,094
3,830
671
541
3,052
13, 793
8,383
2,119
3,291
8,460
447
2,727
17,182
5,240
6,728
9,997
4,212
.56
1.00
.04
2.16
2.89
8,167
3,026
2,592 2,594
9
8
1
1
2, 560 2,564
12, 946 12, 891
2,707 2,697
6,433 6,415
2,283 2,227
967 1,315
637
7,878
2,762
.56
1.00
.03
2. 13
2.92
.56
1.00
.03
2.17
2.97
.75
1.00
.07
2.52
3.22
1.00
.05
2.52
3.26
7,587
2,525
1.00
.05
2.51
3.22
605 1,312
117
293
312 1,195
172
282
21
30
151
252
470
391
79
186
130
56
513
349
164
301
202
99
86
83
88
73
1933
1929
2,600
9
1
2,565
13, 250
2,711
6,510
2,804
653
658
7,935
2,522
2,554 2,481
14
6
3
4
2,540 2,430
12,162 10, 578
2,567 2,503
6,475 6,101
3,225 2,474
158
446
595
551
2,475
7
5
2,431
9,059
2,478
5,585
2,791
128
507
2,429
283
83
2, 052
4,059
2,271
5,576
288
55
497
1,459
952
241
208
3,996
2,015
4,476
207
22
406
6,830
1,220
5,989
2,512
5,001
2,469
2,343
528
2,358
43
19, 997 17,505
8,028 9,156
0)
0)
990
0)
0)
11, 969
7,989
928
3,052
4,024
326
2,112
12, 729
4,883
4,938
6
74
76
62
68
80
76
76
64
68
81
77
79
69
74
81
80
78
69
73
81
80
78
68
72
82
79
0)
0)
4,946
2,822
115
6,788
2,787
674
.81
1.00
.07
2.56
3.19
.95
1.00
2.68
3.26
.75
.91
.17
2.65
3.24
.56
.17
1.72
1.16
5.85
7.61
2.79
3.60
3.31
4.49
3.60
4.73
220
159
61
63
38
26
372
197
175
179
73
107
328
178
150
203
102
101
518
164
354
382
99
282
392
121
270
189
34
155
89
60
29
32
13
18
959
841
118
781
667
115
83
112
79
69
74
82
79
86
86
86
85
85
111
78
63
190
81
81
82
80
82
80
79
84
78
81
66
51
61
71
66
95
105
100
92
105
90
90
91
37
21
50
91
74
64
79
76
75
82
25
11
37
73
50
58
67
119
119
115
117
87
142
106
110
107
111
190
171
140
121
437
367
Index numbers, adjusted for seasonal variation, 1923-25=100
BUSINESS INDEXES
PIOI
?108
?67
P61
98
97
104
63
58
67
91
86
67
86
92
91
98
63
55
68
90
84
62
85
236
179
249
203
83
82
93
59
49
68
83
71
61
83
77
74
92
54
42
64
82
71
58
82
76
73
92
51
37
62
84
73
58
78
86
84
98
64
45
80
87
78
62
85
110
109
115
59
41
74
106
102
78
92
105
105
105
55
37
70
98
86
75
88
Amounts per month; in millions of dollars
MERCHANDISE EXPORTS AND IMPORTS
P230
228
141
233
146
257
148
258
163
279
257
205
202
r
e
p Preliminary.
Revised.
Partly estimated.
1 Figures not available.
2 Includes time deposits of banks, domestic and foreign, 1929-1933.
3 Does not include time deposits 1929-1933.
* Averages of yields of all outstanding bonds due or callable after 12 years. See BULLETIN for December 1938, pp. 1045-1046.
111
0)
0)
8,349
5,228
3,121
1,822
240
1,322
22, 599
16, 887
0)
• 2, 208
0)
0)
5,712
2,865
2,847
1,725
248
1,142
Index numbers
PRICES
Exports, including re-exports _
General imports
1935
Amounts per month; in millions of dollars
586
318
268
226
49
177
Common stocks (1926=100)
Wholesale commodity prices (1926=100):
All commodities
Farm products
Foods
Other commodities
Retail food prices (1923-25=100)
Industrial production
Manufactures
Minerals
Construction contracts awarded—totalResidential
Allother
Factory employment
Factory payrolls (unadjusted)
Freight-car loadings
.
Department store sales
1936
21, 693 20, 530 20, 696 20, 732 21,023 22,198 22, 064
8,091 8,213 8,384 8,430 8,506 9,546 8,462
3,839 3,878 3,953 4,085 4,059
0)
0)
678
602
629
686
701 1,226 1,181
539
589
577
582
588
0)
0)
3,035 3,129 3,163 3,154 3,158
0)
0)
13, 602 12, 317 12,312 12, 302 12, 517 12, 652 13, 602
8,296 7,703 7,864 7,980 7,982 8,394 9,080
2,033 1,567 1,453 1,354 1,451 1,164 1,250
3,273 3,047 2,995 2,968 3,084 3,094 3,272
8,361 6,675 6,407 6,070 6,400 5,307 4,799
423
384
382
403
398
383
337
2,644 2,435 2,406 2,296 2,289 1,884 2,358
16,796 15, 021 14, 932 14, 579 15,033 15,097 14, 619
5,253 5,211 5,231 5,214 5,202 5,202 4,999
6,648 5,936 5,847 5,706 5,770 5,298 5,810
1
2
6
3
5
12
5
CAPITAL ISSUES
All issues—total
New
Refunding
Domestic corporate issues—total..
New
Refunding
1937
Averages of daily figures; per cent per annum
MONEY RATES AND BOND YIELDS
Commercial paper
Stock exchange call loans
U. S. Treasury bills (91 days)
U. S. Treasury bonds, long-term <_•_
Corporate high grade bonds (Moody's A a a ) .
1938
Averages of Wednesday figures; in millions of dollars
REPORTING MEMBER BANKS IN 101 LEADING CITIES
Total loans and investments
Loans—total
Commercial, industrial and agricultural
To brokers and dealers in securities
Other loans for purchasing or carrying securities..
All other loans
Investments—total
U. S. Government direct obligations
Obligations fully guaranteed by U. S. Govt
Other securities
Reserve with Federal Reserve banks
Cash in vault
-Balances with domestic banks
Demand deposits—adjusted
2
Time deposits (excluding interbank)
Deposits of domestic banks 3
Borrowings
June I M a y
Averages of daily figures; in millions of dollars
MEMBER BANK RESERVES, RESERVE BANK CREDIT,
AND RELATED ITEMS
Reserve bank credit outstanding—total
Bills discounted
Bills bought
U. S. Government securities
Gold stock
Treasury currency outstanding
Money in circulation
Treasury cash holdings
Treasury deposits with F. R. banks
Nonmember deposits and other F. R. accounts
Member bank reserve balances:
Total
Excess
Annual averages
SEPTEMBER 1939
719
FEDERAL RESERVE BULLETIN
LAW DEPARTMENT
on August 5, 1939. The President's veto mesThe Board's Regulation L, relating to inter- sage is set forth below:
locking bank directorates under the Clayton
"To the Senate:
"I return herewith, without my approval, SenAct, was recently amended in the manner
ate bill 2150, 'An act to amend section 8 of the
indicated by the following press statement
act entitled "An act to supplement laws against
unlawful restraints and monopolies, and for
released by the Board under date of August
other purposes," particularly with reference to
1, 1939:
interlocking bank directorates, known as the
Amendment to Regulation L
"The Board of Governors of the Federal Reserve System has amended subsections 3(a) and
3(e) of its Regulation L, relating to interlocking
bank directorates under the Clayton Act, effective immediately, so as to extend until February
1, 1940, the time during which certain persons
who have been serving member banks may continue to serve a member bank and not more than
one other bank."
The pertinent provisions of Regulation L
as thus amended read as follows:
"SECTION 3. RELATIONSHIPS PERMITTED BY BOARD
"In addition to any relationships covered by
the foregoing exceptions, not more than one of
the following relationships is hereby permitted
by the Board of Governors of the Federal Reserve System in the case of any one individual:
" ( a ) Any private banker or any director,
officer, or employee of a member bank of the
Federal Reserve System may be at the same
time a director, officer, or employee of not more
than one cooperative bank, credit union or other
similar institution; and any private banker or
any director, officer, or employee of a member
bank of the Federal Reserve System who is lawfully serving as a director, officer, or employee
of a Morris Plan bank or similar institution on
January 31, 1939 may continue such service until
February 1, 1940."
"(e) Any director, officer, or employee of any
member bank of the Federal Reserve System
who, on August 23, 1935, was lawfully serving
at the same time as a private banker or as a
director, officer, or employee of any other bank,
banking association, savings bank, or trust company and whose services in such capacities have
been continuous since such date, may continue,
until February 1, 1940, to serve such member
bank and not more than one other such bank,
banking association, savings bank, trust company or private banker."
A bill, S. 2150, to amend the second paragraph of section 8 of the Clayton Act so as to
Bxtend from February 1, 1939, to February
1, 1944, the period during which certain relationships lawfully existing on the date of the
Banking Act of 1935 might continue was
vetoed by the President of the United States
Clayton Act.' If it was in the public interest in
1935 for the Congress to decide to terminate
these relationships, it is in the public interest
to terminate them now. Affected banks and
affected directorates have had over 4 years to
make adjustments. That would seem to be a
liberal time.
"If the Congress wishes to reverse itself and
allow interlocking directorships in the future, it
can, of course, do so. But I do not think that
the Congress should nullify its policy, declared
in 1935, by extending interlocking directorships
for another 4 years on top of the 4 years' extension which has already been given.
"FRANKLIN D. ROOSEVELT.
" T H E W H I T E HOUSE, August 5, 1939."
Revision of Regulation J
There is set forth below the text of the
Board's Regulation J, relating to check clearing and collection, as revised effective September 1, 1939, together with the text of a
press statement with regard thereto released
by the Board of Governors on August 21,
1939:
The Board of Governors of the Federal Reserve
System announced today that the Federal Reserve
banks will put into effect on September 1, 1939 certain changes in their check collection procedure designed to give member banks more prompt credit for
checks deposited with the Federal Reserve banks for
collection and to reduce the amount of work required
in preparing the checks for deposit with the Federal
Reserve banks.
Heretofore member banks have been given credit
for checks deposited with the Federal Reserve banks
in accordance with time schedules which were based
on the actual time required to collect the checks.
After September 1 the Federal Reserve banks will
credit member banks within three days or less for
all checks deposited with them for collection. Immediate credit or credit within one or two days will
continue to be given for most checks.
The Board's Regulation J relating to the clearance
and collection of checks and the check collection circulars and time schedules of the Federal Reserve
banks have been revised. Copies are being sent by
the Federal Reserve banks to all member banks and
to all other banks which maintain deposit accounts
with the Federal Reserve banks.
720
FEDEEAL RESERVE BULLETIN
REGULATION J
As amended, effective September 1, 1939
(Superseding Regulation J, Series of 1930)
Check Clearing and Collection
SECTION 1. STATUTORY PROVISIONS
Section 16 of the Federal Reserve Act authorizes
the Board of Governors of the Federal Reserve System to require each Federal Reserve bank to exercise
the functions of a clearing house for its member
banks, and section 13 of the Federal Reserve Act,
as amended by the Act approved June 21, 1917, authorizes each Federal Reserve bank to receive from
any nonmember bank or trust company, solely for
the purposes of exchange or of collection, deposits of
current funds in lawful money, national-bank notes,
Federal Reserve notes, checks and drafts payable
upon presentation, or maturing notes and bills, provided such nonmember bank or trust company maintains with its Federal Reserve bank a balance sufficient to offset the items in transit held for its account
by the Federal Reserve bank.
SECTION 2. GENERAL REQUIREMENTS
In pursuance of the authority vested in it under
these provisions of law, the Board of Governors of
the Federal Reserve System, desiring to afford both
to the public and to the various banks of the country
a direct, expeditious, and economical system of check
collection and settlement of balances, has arranged
to have each Federal Reserve bank exercise the functions of a clearing house and collect checks for such
of its member banks as desire to avail themselves of
its privileges and for such nonmember State banks
and trust companies as may maintain with the Federal Reserve bank balances sufficient to qualify them
under the provisions of section 13 to send items to
Federal Reserve banks for purposes of exchange or
of collection. Such nonmember State banks and trust
companies will hereinafter be referred to as nonmember clearing banks.
Each Federal Reserve bank shall exercise the functions of a clearing house and collect checks under the
general terms and conditions hereinafter set forth,
and each member bank and nonmember clearing bank
shall cooperate fully in the system of check clearance
and collection for which provision is herein made.
SECTION 3 . CHECKS RECEIVED FOR COLLECTION
(1) Each Federal Reserve bank shall receive at
par from member and nonmember clearing banks in
its district, from other Federal Reserve banks, and
from all member and nonmember clearing banks in
other Federal Reserve districts which are authorized
to route direct for the creditx of their respective Federal Reserve banks, checks drawn on all member
and nonmember clearing banks of its district, and
checks drawn on all other nonmember banks of its
district which are collectible at par in funds acceptable to it.
(2) Each Federal Reserve bank may receive at
par from member and nonmember clearing banks in
its district, checks drawn on all member and nonmember clearing banks in other Federal Reserve dis-
SEPTEMBER
1939
tricts, and checks drawn on all other nonmember
banks in other Federal Reserve districts which are
collectible at par in funds acceptable to the collecting
Federal Reserve bank.
(3) No Federal Reserve bank shall receive on deposit or for collection any check drawn on any nonmember bank which cannot be collected at par in
funds acceptable to the Federal Reserve bank.
SECTION 4. TIME SCHEDULE AND AVAILABILITY OF .
CREDITS
(1) Each Federal Reserve bank will publish a
time schedule showing the time at which any item
sent to it will be counted as reserve and become available for withdrawal or other use by the sending bank.
For all checks received, the sending bank will be
given immediate credit, or deferred credit, in accordance with such time schedule, and as provided
below.
(2) For all such checks as are received for immediate credit in accordance with such time schedule,
immediate credit, subject to final payment, will be
given upon the books of the Federal Reserve bank
at full face value in the reserve account or clearing
account upon day of receipt, and the proceeds will
at once be counted as reserve and become available
for withdrawal or other use by the sending bank;
provided, however, that the Federal Reserve bank
may in its discretion refuse at any time to permit
the withdrawal or other use of credit given for any
item for which the Federal Reserve bank has not yet
received payment in actually and finally collected
funds.
(3) For all such checks as are received for deferred credit in accordance with such time schedule,
deferred credit, subject to final payment, will be
entered upon the books of the Federal Reserve bank
at full face value, but the proceeds will not be counted
as reserve nor become available for withdrawal or
other use by the sending bank until such time as may
be specified in such time schedule,2 at which time
credit will be transferred from the deferred account
to the reserve account or clearing account subject to
final payment and will then be counted as reserve
and become available for withdrawal or other use by
the sending bank; provided, however, that the Federal Reserve bank may in its discretion refuse at an^
time to permit the withdrawal or other use of credit
given for any item for which the Federal Reserve
bank has not yet received payment in actually and
finally collected funds.
SECTION 5. TERMS OF COLLECTION
The Board of Governors of the Federal Reserve
System hereby authorizes the Federal Reserve banks
to handle such checks subject to the following terms
and conditions; and each member and nonmember
clearing bank which sends checks to any Federal
Reserve bank for deposit or collection shall by such
action be deemed (a) to authorize the Federal Reserve banks to handle such checks subject to the
following terms and conditions; (b) to warrant its
own authority to give the Federal Reserve banks
such authority; (c) to agree to indemnify any Federal Reserve bank for any loss or expense sustained
(including but not limited to attorneys' fees and
expenses of litigation) resulting from the failure of
such sending bank to have such authority, or result-
1
A check is generally defined as a draft or order upon a bank
or banking house, purporting to be drawn upon a deposit of funds,
for the payment at all events of a certain sum of money to the
2
For rules for computation of reserves and penalties for defiorder of a certain person therein named, or to him or his order,
ciencies in reserves, see Regulation D, Sees. 2 and 3.
or to bearer, and payable on demand.
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
ing from such Federal Reserve bank's guaranty of
prior endorsements, or resulting from any action
taken by the Federal Reserve bank within the scope
of its authority for the purpose of collecting such
checks; and (d) to guarantee all prior endorsements
on such checks whether or not a specific guaranty is
incorporated in an endorsement of the1 sending bank.
(1) A Federal Reserve bank will act only as agent
of the bank from which it receives such checks and
will assume no liability except for its own negligence
and its guaranty of prior endorsements.
(2) A Federal Reserve bank may present such
checks for payment or send such checks for collection direct to the bank on which they are drawn or
at which they are payable, or in its discretion may
forward them to another agent with authority to
present them for payment or send them for collection
direct to the bank on which they are drawn or at
which they are payable.
(3) A Federal Reserve bank may, in its discretion
and at its option, either directly or through or from
an agent, accept in payment of or in remittance for
such checks, cash, bank drafts, transfers of funds or
bank credits, or other forms of payment or remittance, acceptable to the collecting Federal Reserve
bank. The Federal Reserve bank shall not be liable
for the failure of the drawee bank or any agent to
pay or remit for such checks, nor for any loss resulting from the acceptance from the drawee bank or
any collecting agent, in lieu of cash, of any other
form of payment or remittance authorized herein,
nor for the nonpayment of, or failure to realize upon,
any bank draft or other medium of payment or remittance which may be accepted from the drawee
bank or any collecting agent.
(4) Checks received by a Federal Reserve bank
which are payable in its own district will ordinarily
be forwarded or presented direct to the banks on
which they are drawn, and such banks will be required to remit or pay therefor at par in such one
or more of the forms of payment or remittance authorized under paragraph (3) hereof as may be
acceptable to the Federal Reserve bank.
(5) Checks received by a Federal Reserve bank
payable in other districts will ordinarily be forwarded for collection to the Federal Reserve bank
of the district in which such checks are payable;
provided, however, that, where arrangements can
be made, satisfactory to the collecting bank or agent
and to the Federal Reserve bank of the district in
which such checks are payable, any such checks may
be forwarded for collection direct to the bank on
which they are drawn or at which they are payable,
or may be forwarded for collection to another agent
with authority to present them for payment direct
to the bank on which they are drawn or at which
they are payable. All such checks shall be handled
subject to all the terms and conditions of this regulation.
(6) With respect to any check sent direct by a
member or nonmember clearing bank in one district
to a Federal Reserve bank in another district, the
relationships and the rights and liabilities existing
between the member or nonmember clearing bank,
the Federal Reserve bank of its district and the
Federal Reserve bank to which the check is sent will
be the same, and the relevant provisions of this regulation will apply, as though the member or nonmember clearing bank had sent such check to the
Federal Reserve bank of its district with its endorsement and guaranty of prior endorsements and such
721
Federal Reserve bank had sent the check to the other
Federal Reserve bank with its endorsement and guaranty of prior endorsements.
(7) Bank drafts received by a Federal Reserve
bank in payment of or in remittance for checks handled under the terms of this regulation shall likewise
be handled for collection subject to all the terms and
conditions of this regulation.
(8) The amount of any check for which payment
in actually and finally collected funds is not received
shall be charged back to the forwarding bank, regardless of whether or not the check itself can be
returned. In such event, neither the owner or holder
of any such check, nor the bank which sent such
check to the Federal Reserve bank for collection shall
have any right of recourse upon, interest in, or right
of payment from, any reserve balance, clearing account, deposit account, or other funds of the drawee
bank or of any bank to which such checks have been
sent for collection, in the possession of the Federal
Reserve bank. No draft, authorization to charge, or
other order, upon any reserve balance, clearing account, deposit account, or other funds of a paying,
remitting, or collecting bank in the possession of a
Federal Reserve bank, issued for the purpose of
settling items handled under the terms of this regulation will be paid, acted upon, or honored after receipt by such Federal Reserve bank of notice of
suspension or closing of such paying, remitting, or
collecting bank.
SECTION 6. OTHER RULES AND REGULATIONS
Each Federal Reserve bank may also promulgate
rules not inconsistent with the terms of the law or
of this regulation, governing the sorting, listing,
packaging, and transmission of items, and other details of its check clearing and collection operations.
Such rules and regulations shall be set forth by the
Federal Reserve banks in their letters of instruction
to their member and nonmember clearing banks and
shall be binding upon any member or nonmember
clearing bank which sends any check to such Federal
Reserve bank for collection or to any other Federal
Reserve bank for the account of such Federal Reserve bank for collection.
Whether Regulation T Permits Domestic Broker to
Borrow from Foreign Broker
Regulation T provides in section 5 (c) 1 that:
"A creditor may borrow from another creditor
in the ordinary course of business as a broker
or dealer on any registered security to the ex1
The permission granted by the Board in section 5(c) of Regulation T is based upon section 8 (a) of the Securities Exchange
Act of 1934 which provides in part t h a t :
"It shall be unlawful for any member of a national securities
exchange, or any broker or dealer who transacts a business in
securities through the medium of any such member, directly or
indirectly—
(a) To borrow in the ordinary course of business as a broker
or dealer on any security (other than an exempted security)
registered on a national securities exchange except (1) from or
through a member bank of the Federal Reserve System, (2) from
any nonmember bank which shall have filed with the Board of
Governors of the Federal Reserve System an agreement, which
is still in force and which is in the form prescribed by the Board,
. . . or (3) in accordance with such rules and regulations as the
Board of Governors of the Federal Reserve System may prescribe
to permit loans between such members and/or brokers and/or
dealers, or to permit loans to meet emergency needs."
722
FEDERAL RESERVE BULLETIN
tent and subject to the terms upon which the
latter may extend credit to him in accordance
with the provisions of this regulation, and subject to any other applicable provisions of law."
The term "creditor" as used in section 5 (c)
is defined in section 2(b) of the regulation as
follows:
"The term 'creditor' means any member of a
national securities exchange or any broker or
dealer who transacts a business in securities
through the medium of any such member."
The Board recently has been asked whether
section 5(c) authorizes a "creditor," as defined in section 2(b), to borrow in this country in the ordinary course of business as a
broker or dealer on registered nonexempted
securities from a foreign broker. The foreign
broker maintains no place of business in the
United States, but "transacts a business in
securities through the medium of a member
of a national securities exchange" and hence
appears to fall within the definition of the
term "creditor."
It is the view of the Board that section
5(c) in its present form grants permission
for the domestic broker thus to borrow from
the foreign broker who "transacts a business
in securities through the medium of a member," but that it grants the permission only
on condition that the loan so obtained by the
domestic broker meets the requirements of
section 5(c) that it be "in accordance with
the provisions of this regulation."
This means that in obtaining the loan the
domestic broker must not be receiving more
credit on given securities than he could get
on those securities, in the case of a loan of
the same description, from a domestic "broker
or dealer who transacts a business in securities through the medium of a member," and
must not otherwise be obtaining any benefits
that such a domestic broker or dealer could
not lawfully grant under the regulation. One
result of this requirement is that the loan
may not be obtained on the basis of the special
loan value prescribed for the special omnibus
account, because section 4(b) of the regulation limits such loans to cases in which the
lender is a member of a national securities
exchange. It is, of course, unnecessary for
SEPTEMBER
1939
present purposes to determine whether, or to
what extent, the foreign broker would be required to comply with Regulation T, since the
domestic broker is not granted permission to
borrow unless the loan complies with the requirements of Regulation T to the same extent as if the lender were a domestic "creditor."
Capital Contribution Loans Between Members of a
National Securities Exchange
Section 4(f) (2) of Regulation T, as added
to the regulation effective May 22, 1939, provides as follows:
"In a special miscellaneous account, a creditor
may—
"(2) Make loans, and may maintain loans, to
or for any partner of a firm which is a member
of a national securities exchange to enable such
partner to make a contribution of capital to such
firm provided (A) the lender as well as the borrower is a partner in such firm, or (B) the
lender as well as the borrower is a member of
such exchange, the loan has the approval of an
appropriate committee of the exchange, and the
committee, in addition to being satisfied that the
loan is not in contravention of any rule of the exchange, is satisfied that the loan is outside the
ordinary course of the lender's business, and that,
if the borrower's firm does any dealing in securities for its own account, the loan is not for the
purpose of enabling the firm to increase the
amount of such dealing;"
The Board recently considered a case in
which such a capital contribution loan was
originally made between partners in the same
firm, and thus qualified under clause (A) of
the provision, but the lender later proposed
to withdraw from the partnership. The
Board was asked whether the loan, because
of its one-time status under clause (A), might
be continued after the lender's withdrawal
from the partnership, or whether the loan
must then be terminated if it is not authorized by some other provision of the regulation.
It is the view of the Board that the permission granted by clause (A) continues only
while the conditions specified therein are met.
Accordingly, such a loan between partners in
the same firm may not be continued after the
lender withdraws from the partnership unless the loan can qualify under some other
provision of the regulation.
SEPTEMBER
1939
In the particular case presented, the lender
after withdrawal from the partnership was
to continue to be a member of the national
securities exchange of which the borrower
was a member. Therefore, if the loan is
approved by an appropriate committee of the
exchange pursuant to clause (B) of section
4(f)(2), it could, of course, be continued
pursuant to that provision.
For the sake of completing the answer to
the question presented, however, it is necessary to consider one other possible alternative, that is, the possibility that the loan could
qualify under section 4(f) (8) of the regulation, which provides for loans that are "for
any purpose other than purchasing or carrying or trading in securities."
The reason section 4(f) (8) may be relevant to the question presented in this case is
that while the exact relation of the instant
loan to the business of the borrower's firm
was not entirely clear, it appeared that the
borrower's firm was engaged not only in the
securities business but also, and to a very
considerable extent, in the commodity business. There would, therefore, be at least
some possibility that the loan in question
could qualify as a loan for a "purpose other
than purchasing or carrying or trading in
securities."
Whether the loan could in fact so qualify
would depend, of course, upon the facts of the
particular case, and instances where capital
contribution loans could so qualify would be
rather rare. In certain cases, of which the
present case involving a considerable amount
of commodity business might turn out to be
an example, it might be possible for a loan
to be made under such conditions that it
could actually be identified as being for a
"purpose other than purchasing or carrying
or trading in securities." It is evident, however, that it would be rather unusual for a
capital contribution loan to be thus identifiable. The business of the average securities
brokerage firm is so bound up with purchasing, carrying or trading in securities—either
for its own account or for the account of cus-
723
FEDERAL RESERVE BULLETIN
tomers—that a loan to a partner in such a
firm to enable him to make a contribution of
capital to the firm usually could not qualify
as being for a "purpose other than purchasing or carrying or trading in securities."
Social Security Act Made Applicable to Member Banks
In
the
FEDERAL RESERVE BULLETIN
for
November 1936, at page 857, there were published the texts of rulings of the Bureau of
Internal Revenue holding that national banks
and State member banks are instrumentalities of the United States within the meaning
of the Social Security Act, and that, accordingly, neither such banks nor their employees
were subject to the taxes imposed by that Act.
On August 10, 1939, the President approved the Social Security Act Amendments
of 1939 (Pub. No. 379, 76th Cong.). Among
other things, all national banks and State
member banks, as of January 1, 1940, will
become subject to the Social Security Act and
the employment taxes imposed by the Internal Revenue Code as the result of amendments to the definition of the term "employment" contained in section 209 (b) of the
Social Security Act and in sections 1426 (b)
and 1607 (b) of the Internal Revenue Code.
PROCLAMATION AND AMENDMENT TO REGULATIONS RELATING TO SILVER
The President's proclamation of July 25,
1939, and an amendment to the Treasury
regulations of January 16, 1939, concerning
newly-mined domestic silver are published
below. Earlier laws, proclamations, and orders relating to silver which have been published in the BULLETIN are listed in the annual
indexes for the years 1934, 1935, and 1938
and in the monthly issues for February and
August 1939.
BY THE PRESIDENT OF THE UNITED STATES OF
AMERICA
A PROCLAMATION
WHEREAS, by Proclamation of the twenty-first day
of December, 1933, as modified by Proclamations of
the ninth day of August, 1934, the tenth and twentyfourth days of April, 1935, the thirtieth day of De-
724
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
Amendments to Newly-Mined Domestic
cember, 1937, and the thirty-first day of December,
1938, the United States coinage mints are directed
Silver Regulations
to receive for coinage and addition to the monetary
of January 16, 1939
stocks of the United States silver mined subsequently
SECTION 1 of the Newly-Mined Domestic Silver
to December 21, 1933, from natural deposits in the
United States or any place subject to the jurisdiction Regulations of January 16, 1939, is amended to read
as follows:
thereof;
AND WHEREAS, such Proclamation as so modified is
"SECTION 1. Scope.—These regulations relate
subject to revocation or further modification as the
to the receipt and coinage by the United States
interests of the United States may seem to require.
coinage mints of silver, mined in the United
NOW, THEREFORE, finding that the interests of the
States or any place subject to the jurisdiction
United States require further modification of said
thereof, pursuant to the Proclamation of DeProclamation of the twenty-first day of December,
cember 21, 1933, as modified by the Proclama1933, as so modified; by virtue of the power in me
tions of August 9, 1934, April 10 and April 24,
vested by the Act of Congress cited in said Proclama1935, December 30, 1937, December 31, 1938, and
tion, and other legislation designated for national
July 25, 1939."
recovery, and by virtue of all other authority in me
vested;
SECTION 2 of the Newly-Mined Domestic Silver
I, FRANKLIN D. ROOSEVELT, President of the United Regulations of January 16, 1939, is amended to read
States of America, do hereby proclaim and direct as follows:
that, unless repealed or further modified by Act of
"SEC. 2. Authority for
regulations.—These
Congress or by subsequent Proclamation, the said
regulations are prescribed under authority of
Proclamation of the twenty-first day of December,
subsection (b) (2), section 43, title III of the
1933, as heretofore and hereby modified, shall reAct of Congress approved May 12, 1933, (Pubmain in force and effect until the thirtv-first day of
lic, No. 10), as amended, and the President's
December, 1939, with respect to silver mined subseProclamation of December 21, 1933, as modified
quently to December 21,1933, and on or before July 1,
by the Proclamations of August 9, 1934, April
1939, from natural deposits in the United States or
10 and April 24, 1935, December 30, 1937, Deany place subject to the jurisdiction thereof; and I
cember 31, 1938, and July 25, 1939."
do further proclaim and direct that the proviso:
SEC. 3. Section 20 (c) of the Newly-Mined Domes"that silver to be eligible for receipt under the
said Proclamation of the twenty-first day of tic Silver Regulations of January 16, 1939, is
December, 1933, as heretofore and hereby modi- amended to read as follows:
fied must be delivered to a United States coinage
"(c) That the aggregate amount of such mixmint not later than June 30, 1939."
ture so received pursuant to the Proclamation of
December 30, 1937, as modified, modifying the
stated in the said Proclamation of the thirty-first
Proclamation of December 21, 1933, as modified,
day of December, 1938, is hereby rescinded.
does not exceed the amount of such silver which
Notice is hereby given that I reserve the right by
has been mined on or after January 1, 1938, from
virtue of the authority vested in me to revoke or
natural deposits in the United States or any
modify this Proclamation as the interests of the
place subject to the jurisdiction thereof."
United States may seem to require.
In witness whereof, I have hereunto set my hand
SEC. 4. Section 24 of the Newly-Mined Domestic
and caused the seal of the United States to be
Silver Regulations of January 16, 1939, is hereby
affixed.
Done at the City of Washington this 25th day of rescinded.
HENRY MORGENTHAU, JR.,
July, in the year of our Lord nineteen hundred and
Secretary of the Treasury.
thirty-nine, and of the Independence of the United
States of America the one hundred and sixty-fourth. Approved:
By the President:
CORDELL HULL
Secretary
FRANKLIN D. ROOSEVELT.
of State.
FRANKLIN D. ROOSEVELT,
T H E W H I T E HOUSE,
July 25, 1939.
SEPTEMBER
1939
725
FEDERAL RESERVE BULLETIN
RATES CHARGED BY BANKS ON CUSTOMERS9 LOANS
Interest rates on commercial loans to cus- Geographical differences in the structure
tomers charged by member banks in 19 prin- of rates on commercial loans is brought out by
cipal cities have now been reported to thethe chart. The principal differences shown
Board for two quarterly periods, March 16-31 may be summarized as follows:
and June 1-15, 1939. In September 1938 a In New York City, although the average
preliminary survey was conducted for the rate is around 2^4 Per cent, about 60 per
purpose of testing the reporting of these rates cent of the money lent to commercial borrowand the results were published in the January ers is at rates between 1 and 2 per cent and
1939 FEDERAL RESERVE BULLETIN, pages less than 15 per cent at rates above 3 per cent.
17-19.
About 20 per cent of the borrowers pay the
Between March and June average rates on low rates between 1 and 2 per cent or about
commercial loans showed little change. They the same number reported in each of the rate
average about 214 per cent in New York groups shown on the chart.
City, about 3 per cent in the 7 other Northern
DISTRIBUTION OF COMMERCIAL LOANS
and Eastern cities, and about 3% per cent in
ACCORDING TO INTEREST RATES CHARGED
11 Southern and Western cities. As compared with last September there was a slight
increase in reported average rates which does 60
not represent a change in actual credit con- 50
ditions and apparently reflects principally 40
differences of a statistical nature. The dif- 30
ferences may be due to changes in the defini- 20
tion of loans on which rates were reported: 10
loans of less than 30-day maturity were in- 0
cluded in September but excluded in March
and June; also, reporting of renewal rates, 40
which are probably higher than rates on new 30
loans, was optional in September but was 20
specifically included in the March and June 10
•_•
reports. It may also be that in September 0
borrowers for seasonal reasons included a 30
number of large commercial and industrial 20
concerns which command lower rates than 10
borrowers in the other months.
I
0
The chart shows the percentages of total
dollar volume and of total number of commercial loans made at different rates as reported in June. Figures are charted separately for New York City and for the two In the 7 other Northern and Eastern cities
groups of cities: 7 other Northern and East- about 30 per cent of the funds being lent for
ern cities, covering Boston, Buffalo, Philadel- commercial purposes is at rates between 1 and
phia, Cleveland, Pittsburgh, Chicago, and De- 2 per cent and 60 per cent at rates from 2 to
troit; and 11 Southern and Western cities, 5 per cent, with but a small amount at higher
covering Richmond, Baltimore, Atlanta, New rates. Only a few borrowers get the lowest
Orleans, St. Louis, Minneapolis, Kansas City, rates and about 60 per cent pay over 5 per
Dallas, San Francisco, Los Angeles, and cent, the most numerous paying rates of 6-7
Seattle.
per cent.
PER CENT OF TOTAL DOLLAR
VOLUME OF NEW LOANS
60
50
NEW YORK CITY
40
30
20
10
0
40
V OTHER NORTHERN AND EASTERN CITIES
30
20
10
0
11 SOUTHERN AND WESTERN CITIES
lull
INTEREST RATE CHARGED*
30
20
10
726
FEDERAL RESERVE BULLETIN
In the 11 Southern and Western cities not
quite 20 per cent of the commercial funds
being lent is at rates between 1 and 2 per cent
and the remainder is distributed over rates
from 2 up to 6 per cent. About 10 per cent
SEPTEMBER
1939
of commercial loans is lent at rates higher
than 6 per cent. Over 50 per cent of the borrowers, however, pay 6 per cent or more and
about 35 per cent pay rates from 4 up to 6
per cent.
SEPTEMBER
727
FEDERAL RESERVE BULLETIN
1939
ALL MEMBER BANKS—CONDITION ON JUNE 30, 1939, BY CLASSES OF BANKS
[Amounts in thousands of dollars]
All
member
banks
All
national
member
banks
All State
member
banks
Central reserve city
member banks l
New York
Country
memberl
banks
Chicago
Reserve
city
member
banks 1
544, 206
1, 039, 800
135,109
5, 004, 282
4,102, 082
888, 862
4, 604, 505
2, 444,079
683, 380
26, 610
116, 208
153, 797
894, 859
123,163
593, 722
155, 594
28, 897
2, 051, 582 11, 755, 609
897, 319 2, 735,155
318, 247
93, 791
1, 025, 413
1,159, 222
98,181
10,108, 571
1, 403,173
306, 946
ASSETS
Loans (including overdrafts)
United States Government direct obligations
Obligations guaranteed by United States Government._.
Obligations of Government corporations and agencies,
not guaranteed by United States
Obligations of States and political subdivisions
Other bonds, notes, and debentures
Corporate stocks (including Federal Reserve bank stock).
Total loans and investments
Reserve with Federal Reserve banks
Cash in vault
Demand balances with banks in United States (except
private banks and American branches of foreign banks).
Other balances with banks in United States
Balances with banks in foreign countries
Due from own foreign branches
Cash items in process of collection
Bank premises owned and furniture and fixtures
Other real estate owned
Investments and other assets indirectly representing
bank premises or other real estate
Customers' liability on acceptances
Income accrued but not yet collected
Other assets
13,141, 068
10, 946, 242
2, 830, 819
4, 588, 053 2, 988, 075
4, 061, 790 3, 360, 281
. 961, 634 1,123, 468
380,199
266,180
114,019
2, 554, 213 1, 690, 667
863, 546
2, 301, 694 1, 592, 685
709,009
449,184
225, 058
224,126
32, 603, 419 21, 081, 242 11, 522,177
10, 010, 744 5, 640, 067 4, 370, 677
712, 132
526, 738
185, 394
4, 542, 241
132,012
42, 887
5, 776
2,183, 072
933, 703
305, 475
3, 514, 263
98, 868
23, 954
2,937
1, 256, 694
607, 484
141, 212
1, 027, 978
33,144
18, 933
2,839
926, 378
326, 219
164, 263
143, 590
480,144
425, 587
166, 512
8, 687, 657
4, 975, 097
60, 840
109, 314
2,275
26,138
2,839
1, 029, 002
209, 821
30,183
146, 910
101, 672
102, 595
85, 491
70, 417
51, 655
60, 381
43, 050
76, 493
50, 017
42, 214
42, 441
20, 464
75, 088
32, 989
20, 486
33,118, 962 18, 789,167
15, 282,193
51, 908,129
Total assets.
8, 553, 015
6, 884, 452
1, 869, 185
222,164
13, 215
2,199
2,059, 917
57, 238
2,639
117,730
20, 731
4,904
2,150, 846
59, 284
11,911
2,93^
754, 659
324, 342
115,184
902
2,339
8,225
6,299
97, 337
22, 606
41, 703
36,167
28, 207
1,639
19, 678
22, 539
3, 373, 708 18, 425, 987
14, 826, 241
2, 601, 814 11, 806,120
1, 564, 810 7, 330, 844
59, 560
414, 683
917, 221
196, 756
746, 411 2, 919, 531
12,133
63, 460
7,113,188
5, 271, 921
135, 748
1,129, 522
438, 937
1,899
281, 681
378, 809
155, 204
LIABILITIES
Demand deposits—Total
Individuals, partnerships, and
corporations
United States Government 2
States and political subdivisions
Banks in United States
Banks in foreign countries
Certified and officers' checks, cash letters of credit
and travelers' checks, etc
Time deposits—Total
Individuals, partnerships, and corporations:
Savings deposits
Certificates of deposit
Christmas savings and similar accounts
Open accounts
Postal savings 2
States and political subdivisions
Banks in United States
Banks in foreign countries
Total deposits
Due to own foreign branches
Bills payable, rediscounts, and other liabilities for borrowed money
Acceptances outstanding
Dividends declared but not yet payable
Income collected but not yet earned
Expenses accrued and unpaid
Other liabilities
34,153, 939 21, 258,188 12, 895, 751 12, 632, 817
22, 448,169 13, 625, 703 8, 822, 466 8, 280, 594
694, 001
488, 537
205, 464
84,010
2, 531, 570 1, 930, 608
600, 962
288,071
7, 096, 824 4, 515, 244 2, 581, 580 2, 991, 945
593, 222
255, 314
337, 908
515, 730
790,153
11, H 9 , 315
442, 782
8,157, 495
9, 662, 028 6, 753, 237
709, 234
550, 670
98, 122
68, 353
593, 845
269, 258
59,135
51, 360
441, 200
353, 891
141, 738
102, 543
14, 013
8, 183
45, 873, 254 29, 415, 683
133, 878
188, 399
4, 662
120,164
35, 832
51, 880
78, 451
59, 261
3,540
57, 635
22, 610
35, 261
45, 906
22, 659
347, 371
472, 467
707, 831
3, 561, 820
2, 908, 791
376, 478
158, 564
24, 783
29, 769
6,023
324, 587
246, 036
7,775
87, 309
45, 856
39,195
327
5,830
8,328
16, 457, 571 13, 340, 648
54, 521
188, 399
1, 122
62, 529
13, 222
16, 619
32, 545
36, 602
90, 247
17, 759
9,436
18, 894
30, 698
46, 411, 903 29, 737,172 16, 674, 731 13, 696, 081
Total liabilities..
22,144
488, 375
160, 381
4, 693,271
135,161
5, 829, 838
3, 859, 714
179, 929
32, 789
247, 810
19, 225
233, 062
l7,450
115, 057
5,685
3, 090,189 16, 499, 391
5,010, 857
480,104
58, 411
69, 370
39, 910
144, 832
26, 354
12, 943, 026
102
25, 645
10, 869
26, 102
33, 726
18, 594
4,560
1, 675
6,454
14, 836
18, 466
8,976
3,103, 400 16, 614, 429
12, 997, 993
794, 564
658, 015
233,170
112, 529
13, 280
920, 647
572, 557
235, 828
76, 348
22, 868
414, 979
24, 418
899
30, 629
2,597
750
1,506
7,365
CAPITAL ACCOUNTS
Capital
Surplus
Undivided profits
Reserves for contingencies..
Other capital accounts
Total capital accounts
2, 390, 023
2, 111, 569
678, 033
276, 687
39, 914
_.
Total liabilities and capital accounts.
Net demand deposits subject to reserve ....
Demand deposits—adjusted 3
Number of banks
5, 496, 226
1, 559, 181
1,168, 553
449, 079
173, 816
31, 161
830, 842
943, 016
228, 954
102, 871
8,753
548, 312
808, 614
170,188
55, 652
3,346
126, 500
72, 383
38, 847
32,158
420
2,114, 436
1, 586,112
270, 308
1, 811, 558
1, 828, 248
33,118, 962 18, 789,167
15, 282,193
3, 373, 708
18, 425, 987
14, 826, 241
11,494,501
8, 012,130
36
2, 263, 226
1, 665, 980
13
8, 903, 883
7, 653, 787
346
4, 779, 316
6, 254, 923
5,935
3, 381, 790
51, 908,129
27, 440, 926 16, 493, 696 10, 947, 230
23, 586, 820 14, 742, 399 8, 844, 421
6,330
1,127
5,203
1 Banks are classed according to the reserves which they are required to carry (see page 797). Some banks classed as "country banks" are in
outlying sections of reserve cities or central reserve cities, and some banks classed as "reserve city banks" are in outlying sections of central reserve
cities. Figures for each class of banks include assets and liabilities of their domestic branches, whether located within or outside the cities in which
the 2parent banks are located.
United States Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
3
Demand deposits other than interbank and United States Government, less cash items reported as in process of collection.
728
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
ALL MEMBER BANKS—CLASSIFICATION OF LOANS, INVESTMENTS, REAL ESTATE,
AND CAPITAL ON JUNE 30, 1939, BY CLASSES OF BANKS
[In thousands of dollars]
All
member
banks
All
national
member
banks
All
State
member
banks
Central reserve city
member banks 1
Loans—totaL
Commercial and industrial loans
Agricultural loans
Commercial paper bought in open market
Bills, acceptances, etc., payable in foreign countries
Acceptances of other banks, payable in United States..
Reporting banks' own acceptances
Loans to brokers and dealers in securities
Other loans for purchasing or carrying securities
Real estate loans:
On farmland
On residential property.
On other properties
Loans to banks
All other loans
Overdrafts
13,141, 068 8, 553, 015 4, 588, 053 2,
4, 782, 742 3,139, 218 1, 643, 524 1,
788, 451 679, 559
108, 892
244, 623 167, 725
8,564
6,516
2,048
66, 526
31, 806
34, 720
100, 346
60,802
39, 544
730, 774 289,907
440,867
736, 053 443,184
292, 869
U. S. Government direct obligations—total.
Treasury bills
Treasury notes
Bonds maturing in 5 years or less
Bonds maturing in 5 to 10 years
Bonds maturing in 10 to 20 years
Bonds maturing after 20 years
10, 946, 242 6,
441,147
2, 719, 567 1,
781, 374
2, 826,145 1,
2, 889, 254 1,
1, 288, 755
Obligations guaranteed by United States Government—total..
Total amount maturing in 5 years or less
Reconstruction Finance Corporation
Home Owners' Loan Corporation
Federal Farm Mortgage Corporation
Other Government corporations and agencies
Obligations of Government corporations and agencies, not guaranteed
by United States—total
Total amount maturing in 5 years or less
Federal Land banks
Federal Intermediate Credit banks
Other Government corporations and agencies
284,176
229, 808
1, 775, 600 1,138, 353
768, 470 453, 414
58, 297
24, 438
2, 783, 455 1, 883, 604
12, 991
4,681
884, 452
320, 611
796, 315
509, 297
678, 419
833, 452
746,358
2, 830, 819 1, 869,185
1,370,289 808, 217
642, 034 389, 271
1, 458, 144 977, 392
487, 010 355, 773
243, 631 146, 749
380,199
282, 723
96, 823
141,010
142, 366
New
York
Chicago
988, 075
Reserve
city
member
banks 1
Country
memberl
banks
473, 941
5,332
6,049
548
57, 466
63, 615
555, 426
214, 710
544, 206 5, 004,282 4, 604,505
329, 275 1, 884, 388 1, 095,138
18, 727 233, 831 530, 561
10, 975
92, 076 135, 523
1,364
5,065
1,587
225
7,565
1,270
2,104
33, 034
1,593
39,006
114, 641
21, 701
220, 915 229,008
71,420
54, 368
637, 247
315, 056
33, 859
899, 851
8,310
879
60, 691
68, 464
40, 739
432, 346
7, -r ""
237
95, 786 187, 274
6,758
811, """
897, 084
4,597
377, 420 317, 989
126
12, 093
5,339
59, 235 1,113, 394 1,178, 480
157
3,007
1,958
4, 061, 790 3,
120, 536
923, 252
272, 077
1,147, 726
1,055, 802
542, 397
360, 281
1, 039, 800 4,102, 082 2, 444, 079
184, 562
78, 346
10, 555
234, 351 1, 013, 583 563, 308
36,131
272, 838 144, 427
119, 483 1, 223, 964 655, 432
301,162 1, 091, 254 741, 072
164, 111 422,097
329, 285
167, 684
908, 325
327, 97'
827, 266
755, 766
373, 262
961, 634 1,123, 468
708,197
252, 763 361,
480, 752 503, 755
131, 237 165, 446
92, 499
135,109
119,.
93, 766
18,116
6,337
16, 890
888, 862
309, 453
111, 64^
541, 043
153, 794
82, 378
683,380
233,159
74, 853
395, 230
161, 433
51, 864
143, 590
134,070
9,522
80, 332
53, 736
26, 610
16, 416
10,195
10, 977
5,438
116, 208
85,.
29, 948
43, 442
42, 818
93, 791
46,389
47,158
6,259
40, 374
266,180
114, 019
186,; " 96,455
79, 912
16,911
85, 335
55, 675
100, 933
41, 433
Obligations of States and political subdivisions -total.
In default
W ithout specific maturity
Maturing in 5 years or less
Maturing after 5 years
2, 554,213 1, 690, 667
8,566
6,026
144, 018 117, 796
1, 531, 203 927, 799
870, 426 639, 046
863,546
2,540
26, 222
603, 404
231, 380
480,144
963
3,310
390, 135
85, 736
153, 797
244
37, 880
88, 728
26, 945
894, 85S 1, 025, 413
3,897
3,462
48, 538
54, 290
513,163
539, 177
329, 261 428, 484
Other bonds, notes, and debentures—total.
Total amount in default
Total amount maturing in 5 years...
Railroads
Public utilities
Industrials
Other domestic corporations
Foreign—public and private
2, 301, 694 1, 592, 685
87,275
52,617
447, 948 263,013
746, 545 533,167
704, 622 477, 111
566, 391 405, 355
51, 809
125, 243
709, 009
34, 658
I84,935
213, 378
227, 511
161, 036
43, 660
63, 424
425, 587
25, 352
95,059
121, 241
119, 351
105, 733
15, 075
64,187
123,163
1,'
48,1
20, 383
48,193
37, 669
1,105
15, 813
593, 722 1,159,222
31,275
28, 781
138, 618 165,289
182, 665 422, 256
168, 077 369, 001
158, 541 264, 448
36, 562
42, 727
60, 790
47, 877
Corporate stocks—total
Federal Reserve bank
Affiliates of reporting banks..
Other domestic banks
Other domestic corporations..
Foreign corporations
ank premises, furniture and fixtures, and other real estate—totalBank premises
Furniture and fixtures
Farm land (including improvements)
Residential properties
Other real properties
Assets indirectly representing bank premises or other real estate—total
Investments
Other assets
449,184
134, 942
103, 543
22,169
186, 554
1,976
225,058
81, 786
47, 046
9,135
86, 200
224,126
53,156
56, 497
13, 034
100, 354
1,085
166,512
40, 709
48, 002
2,819
74, 371
611
28,897
5,965
276
20
22, 609
27
155, 594
43, 376
48, 797
10, 421
52,177
823
98,181
44, 892
6,468
8,909
37, 397
515
1,239,178
855, 728
77, 975
23, 557
126, 261
155, 657
748, 696
546, 739
60, 745
17, 093
52,197
71, 922
490, 482
17, 230
6,464
74, 064
83, 735
240, 004
209,013
808
29
11, 218
18, 936
25, 635
20, 649
82
474
1,456
2,974
439, 526
290, 822
33, 520
7,894
41, 336
65, 954
534, 013
335, 244
43, 565
146, 910
96, 688
50, 222
70, 417
51, 780
18, 637
76, 493
44, 908
31, 585
20, 464
18,130
2,334
902
842
97, 337
59, 857
37, 480
72, 251
67, 793
28, 207
17, 859
10, 348
2, 393, 808
42, 749
1, 562, 228
831, 580
794, 564
25, 394
105, 504
8,10C
655, 566
924, 432
16, 866
159, 864
16,137
731, 565
126, 601
8,500
193, 223
21, 174
Capital:
Par or face value—total
Capital notes and debentures..
First preferred stock
Second preferred stock
Common stock
Retirable value of—
First preferred stock
Second preferred stock.
496
24, 237
2, 026, 326
300,
368, 795
29, 674
42, 749
70, 461
548, 312
489
9,428
126, 500
230, 03,
16, 41'
1, 315, 776
7,820
710, 550
538, 395
166," 800
261, 464
18, 408
107, 331
11, 266
23, 271
25, 700
25, 700
1
JFor footnote see preceding page.
15, H O
729
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
NUMBER OF BANKS AND BRANCHES, 1933-1939
[Figures for 1939 are preliminary]
Member banks
End of year figures
except where otherwise indicated
Total
National
State
Nonmember banks
Other than mutual
savings and
private banks
Mutual
savings
Not J
Insured i insured
Private 2
N u m b e r of B a n k i n g Offices
1933
1934
1935
1936
1937
1938
1939 (June 30)
_
_ _
.
-
17, 940
19,196
19,153
19,066
18,927
18, 774
18,681
6,275
6,705
6,715
6,723
6,745
6,723
6,721
1,817
1,961
1,953
2,032
2,075
2,106
2,120
9, )41
3 9,579
8,556
1,088
8,436
1,043
8,340
997
8,224
958
8,150
932
704
705
698
693
691
690
4 689
103
246
143
139
79
73
5 69
15,029
16,063
15,869
15, 667
15, 387
15,194
15, 074
5,154
5,462
5,386
5,325
5,260
5,224
5,203
857
980
1,001
1,051
1,081
1,114
1,127
8, 341
7,693
1,108
7,728
1,046
1,004
7,588
960
7,449
7,316
917
7,236
890
579
579
570
565
563
555
554
98
241
138
134
74
68
64
2,911
3,133
3,284
3,399
3,540
3,580
3,607
1,121
1,243
1,329
1,398
1,485
1,499
1,518
960
981
952
981
994
992
993
125
126
128
128
128
135
135
5
5
5
5
5
5
5
N u m b e r of B a n k s ( H e a d Offices)
1933
1934
1935
1936
1937
1938
1939 (June 30)
_
N u m b e r of B r a n c h e s 6
1933
1934
1935
1936
1937
1938
1939 (June 30)
-
. .
. . . .
.__ ___
_
._
7 10
778
42
39
37
41
42
828
848
891
908
914
1 Federal deposit insurance did not become operative until January 1, 1934.
2
The figures for December 1934 include 140 private banks which reported to the Comptroller of the Currency under the provisions of Section
21 (a) of the Banking Act of 1933. Under the provisions of the Banking Act of 1935, private banks no longer report to the Comptroller of the Currency
and, accordingly, only such private banks as report to State banking departments are in the figures shown for subsequent years.
3
Separate figures not available for branches of insured and not insured banks.
4
Comprises
50 insured banks with 21 branches and 504 uninsured banks with 114 branches.
5
Comprises 1 insured bank with no branches and 63 uninsured banks with 5 branches.
6
The number of branches in head-office cities and outside head-office cities, respectively, were as follows:
1933
1934
1935___
1936
1937
1938
1939 ( J u n e 30) _
In head-office cities
Outside head-office cities
1,784
1,776
1,754
1,749
1,757
1,743
1,740
1,127
1,357
1,530
1,650
1,783
1,837
1,867
730
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
ANALYSIS OF CHANGES IN NUMBER OF BANKS AND BRANCHES, JANUARY 1—JUNE 30,
1939
[Preliminary figures]
Nonmember banks
Member banks
Total
National
State
Other than mutual
savings and
private banks
Insured
Mutual
savings
Private
Not
insured
Analysis of Bank Changes
Number of banks on December 31, 1938
Increases in number of banks:
Primary organizations (new banks) i _ _ _ _
Decreases in number of banks:
Suspensions^
___
_
_
Voluntary liquidations 2
Consolidations, absorptions, etc. _ _ _ _ . _.
Inter-class bank changes:
Conversions—
State into national
National into State
_____._.
Federal Reserve membership—3
Admissions of State banks
__. .
Withdrawals of State banks
Federal deposit insurance—4
Admissions of State banks
Withdrawals of State banks
__
.__
Net increase or decrease in number of banks.
Number of banks on June 30, 1939
_-
7,316
917
+1
+4
+1
-2
-2
-4
-18
-8
-46
-6
-8
-3
15,194
5,224
1,114
+8
+2
-30
-25
-73
-4
-3
-19
+9
-6
-6
-3
+1
+29
+5
-4
555
-1
68
-4
-29
+4
+11
-11
-120
-21
+13
-80
-27
-1
15, 074
5,203
1,127
7,236
890
554
64
3,580
1,499
992
908
41
135
5
+27
+30
+4
+8
+5
+3
+ 17
+19
+1
-9
-21
-2
-7
-9
-2
-10
-4
+4
+27
+19
+5
+1
+6
+1
3,607
1,518
993
914
42
135
5
-4
Analysis of Branch Changes
Number of branches on December 31, 1938
___
Increases in number of branches:
De novo branches
Banks converted into branches
Decreases in number of branches:
Suspension of parent bank
Otherwise discontinued
__ __
_
___ _ _
Inter-class branch changes:
Branches of a National bank which became a State member bank
Branches of a nonmember bank which became a National bank
Branches of nonmember
banks which became branches of State
member banks 6 _ _ _
_
Net increase or decrease in number of branches.._ _
Number of branches on June 30, 1939
__
+ 13
— 13
-5
12 Exclusive of new banks organized to succeed operating banks.
Exclusive of liquidations incident to the succession, conversion and absorption of banks.
3
Exclusive of conversions of national banks into State bank members, or vice versa, as such conversions do not affect Federal Reserve membership.
4
Exclusive of conversions of member banks into insured nonmember banks, or vice versa, as such conversions do not affect Federal Deposit
Insurance Corporation membership.
5 Includes 2 branches of an insured nonmember bank which was absorbed by a State member bank and 3 branches of 2 insured nonmember
banks which became State member banks.
Back figures—See Annual Report for 1938 (tables 13 and 14), and BULLETIN for November 1937, pp. 1084-1122.
SEPTEMBER
731
FEDERAL RESERVE BULLETIN
1939
ESTIMATED EXPENDITURES FOR NEW DURABLE GOODS 1919-1938
by
GEORGE TERBORGH
In view of the great influence of expenditures for durable goods on the course of business activity and the national income, estimates have been compiled of the annual
amounts of such expenditures. Tables giving
these estimates for the period 1919-1938 are
here presented. In the absence of precise and
comprehensive statistics for most types of
durable goods, the estimates have been derived from a careful analysis of sample data
and, as the accompanying notes will indicate,
their quality varies considerably from one
series to another.
Durable goods are defined for the present
purpose as those having a normal useful life
in excess of three years. Except in a few
cases the data relate only to expenditures
which under business accounting practice
are properly chargeable to capital account.1
They therefore exclude parts and accessories,
1
The most important exception is expenditures for durable
household goods. Other departures from this rule are minor,
and are mentioned in the accompanying notes.
small tools, durable shop supplies, and similar items customarily charged to current expense, as well as disbursements for repairs
and maintenance generally. So far as possible, all expenditures are taken as and when
made by the final purchasers of the goods in
question, hence their timing may differ somewhat from that of activity in the production
of the goods.
The distinction between expenditures for
plant and those for equipment turns primarily on the mobility of the goods. Under plant
are included all fixed improvements to land,
such as buildings, highways, railroad trackage, electric transmission lines, drainage
and irrigation projects, oil wells, and the like.
All movable goods are classed as equipment.
SOURCES AND METHODS
TABLE 1
Except for public construction, this table presents
merely a recapitulation of series assembled in later
tables, under which the discussion of sources and
methods will be found.
TABLE 1
ESTIMATED EXPENDITURES FOR NEW DURABLE GOODS
[In millions of dollars]
EquipTotal
1919
1920
1921
1922
1923
1924_
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
15, 455
17, 933
14,131
16, 908
21, 582
21, 908
23, 834
25, 284
24, 602
24, 920
25, 532
20, 443
14, 771
8,650
7,607
10, 386
12, 639
17, 654
19, 993
P16, 460
Plant
6,048
6,898
6,313
8,102
9,699
10, 398
11, 449
11, 833
11, 858
11, 584
10, 734
8, 836
6,494
3,695
2,655
3, 687
4,005
6,470
6,991
P7, 036
Total
Plant
Equipment
Total
Plant
Equipment
Total
14, 543
16, 721
12, 606
15, 251
19, 984
20, 046
21, 726
23,171
22, 234
22,' 458
23,121
17, 666
12, 194
6,856
6,277
8,349
10, 805
14, 370
17, 204
P13,101
5,136
5,686
4,788
6, 445
8,101
8,536
9,341
9,720
9,490
9,122
8,323
6,059
3,917
1,901
1,325
1,650
2,171
3,186
4,202
*3, 677
9,407
11,035
7,818
8,806
11,883
11,510
12, 385
13, 451
12, 744
13, 336
14, 798
11, 607
8,277
4,955
4,952
6,699
8,634
11,184
13, 002
P9, 424
7,095
8,327
5,233
5,784
7,902
7,650
8, 189
9, 126
8,777
8,846
10,157
8,340
5,123
2, 799
2,371
3,436
4,349
5,783
7, 570
P5, 471
3,166
3,738
2,475
2,644
3,280
3,307
3,591
4,185
4,133
4,103
4,562
3,768
2, 182
1,192
867
1, 129
1,258
1,650
2,294
PI, 860
i 3, 929
i 4, 589
i 2, 758
3,140
4,622
4,343
4,598
4,941
4,644
4,743
5,595
4,572
2,941
1, 607
1,504
2,307
3,091
4,133
5,276
P3, 611
7,448
8,394
7,373
9,467
12, 082
12, 396
13, 537
14, 045
13, 457
13, 612
12, 964
9,326
7,071
4, 057
3,906
4,913
6,456
8,587
9,634
vl, 630
p Preliminary.
12 Excludes ships built for the Emergency Fleet Corporation.
Excludes special war-time military construction.
3
Includes work-relief construction.
Consumers
Producers
Producers' and Consumers'
ment
9,407
11,035
7,818
8,806
11, 883
11,510
12, 385
13, 451
12, 744
13, 336
14, 798
11, 607
8, 277
4, 955
4,952
6, 699
8,634
11, 184
13, 002
P9, 424
Public
Private
Public and Private
Plant
1,970
1,948
2,313
3,801
4,821
5,229
5,750
5,535
5,357
5,019
3,761
2,291
1,735
709
458
521
913
1,536
1,908
1,817
Equipment
5,478
6,446
5,060
5,666
7,261
7,167
7,787
8,510
8, 100
8,593
9,203
7,035
5,336
3,348
3,448
4,392
5,543
7,051
7,726
P5,813
Plant
2912
2 1, 212
2 1, 525
1,657
1,598
1,862
2,108
2,113
2,368
2,462
2,411
2,777
2,577
1,794
3 1, 330
* 2, 037
3 1, 834
3 3, 284
3 2, 789
s P3, 359
732
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
TABLE 2
ESTIMATED EXPENDITURES FOR N E W DURABLE PRODUCERS' GOODS
PLANT AND EQUIPMENT
[In millions of dollars]
Total
1919
1920—
1921
1922
1923._
1924._.
1925
1926___
1927
1928 .
1929__._
1930
1931
1932__ .
1933
1934
1935 _ .
1936
1937
1938
Railroads
7,095
8,327
5,233
5,784
7,902
7,650
8,189
9,126
8,777
8,846
10,157
8,340
5,123
2,799
2 371
3,436
4,349
5,783
7,570
P5, 471
,
Electric
Power
374
630
550
434
1,077
901
728
883
751
673
840
865
360
164
101
218
166
306
525
238
260
437
276
395
723
827
766
704
722
679
774
835
538
257
113
126
166
251
400
422
Telephones
132
203
229
265
318
385
385
404
397
457
615
612
408
253
171
185
206
261
348
318
Transit
123
162
100
151
180
133
123
116
130
135
135
124
132
61
46
78
117
109
101
83
Other
Utilities
155
181
137
236
245
355
300
380
427
348
369
298
243
127
57
73
86
135
162
P102
Mining
and Manufacturing
3,121
3,538
2,034
2,169
2,680
2,352
2,726
3,169
2,854
3,052
3,596
2,541
1,435
930
992
1,460
1,807
2,403
3,122
P2, 057
Agriculture
1,237
1,376
556
575
750
704
800
845
907
901
992
730
411
191
234
356
591
729
919
P764
Commercial and
miscellaneous
i 1, 693
i 1, 800
i 1, 351
1,559
1,929
1,993
2,361
2,625
2,589
2,601
2,836
2,335
1,596
816
657
940
1,210
1,589
1,993
P I , 487
p Preliminary.
1
Excludes ships built for tbe Emergency Fleet Corporation.
TABLE 3
ESTIMATED EXPENDITURES FOR N E W DURABLE PRODUCERS' GOODS
PLANT
[In millions of dollars]
Total
1919
1920 . .
1921
1922
1923
1924
1925 _
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
_
. .
. _
_
Railroads
3,166
3,738
2, 475
2,644
3,280
3,307
3,591
4,185
4,133
4,103
4,562
3,768
2,182
1,192
867
1,129
1,258
1,650
2,294
Pl, 860
143
243
212
175
361
382
373
492
447
438
503
521
284
126
85
122
83
139
188
117
Electric
Power
156
262
163
229
412
463
421
380
383
353
387
409
258
121
52
57
73
108
172
182
Telephones
64
109
90
107
143
177
192
206
196
227
328
310
154
80
42
44
48
62
100
88
Transit
63
82
59
85
74
56
52
51
77
90
82
85
69
29
21
30
40
45
39
41
Other
Utilities
113
122
93
157
166
238
199
239
285
227
256
186
174
86
35
47
57
92
117
P66
Mining
and Manufacturing
1,497
1,753
1,013
976
1,049
908
1,036
1,320
1,171
1,227
1,441
1,037
515
387
373
524
552
728
1,053
817
Agriculture
Commercial and
miscellaneous
545
510
245
270
340
322
328
320
368
360
379
223
146
74
104
115
180
187
222
585
657
600
645
735
761
990
1,177
1,206
1,181
1,186
997
582
289
155
190
225
289
403
P182
P367
Preliminary.
PUBLIC CONSTRUCTION
The estimates are those prepared by Lowell Chawner for the Department of Commerce and published
in Construction Activity in the United States 19151937, and in subsequent releases. They have been
adjusted to exclude special war-time military construction in the period 1919-1921. Work-relief construction is included.
It will be noted that no estimates are given for
public expenditures on equipment. For most types
of equipment it is impracticable to segregate the
portion going to governmental agencies. Except for
electric power plant machinery, special military
equipment, and ships constructed in navy yards, government expenditures are included in the estimates
for producers' or consumers' equipment, depending
on the classification of the good in question. They
appear to be small relative to the totals in which they
are included.
TABLES 2, 3, AND 4
RAILROADS
For the period 1922-1938 the estimates are derived
from figures on gross capital expenditures of Class I
733
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
TABLE 4
ESTIMATED EXPENDITURES FOR N E W DURABLE PRODUCERS' GOODS
EQUIPMENT
[In millions of dollars]
Total
1919
1920
1921
1922
19231924
1925
1926_ .
1927
1928
1929
1930
1931
1932
1933
1934. _
1935
1936
1937
.
1938
Railroads
Electric
Power
231
387
338
259
716
519
355
391
304
235
337
344
76
38
16
96
83
167
337
121
3,929
4,589
2,758
3 140
4,622
4,343
4,598
4,941
4,644
4,743
5,595
4 572
2,941
1,607
1 504
2,307
3,091
4 133
5,276
P3, 611
104
175
113
166
311
364
345
324
339
326
387
426
280
136
61
69
93
143
228
240
Telephones
68
94
139
158
175
208
193
198
201
230
287
302
254
173
129
141
158
199
248
230
Transit
60
80
41
66
106
77
71
65
53
45
53
39
63
32
25
48
77
64
62
42
Other
Utilities
42
59
44
79
79
117
101
141
142
121
113
112
69
41
22
26
29
43
45
Mining
and Manufacturing
1,624
1,785
1,021
1,193
1,631
1,444
1,690
1,849
1,683
1,825
2,155
1 504
920
543
619
936
1,255
1,675
2,069
Pl, 240
Agri-
culture
692
866
311
305
410
382
472
525
539
541
613
507
265
117
130
241
411
542
697
582
Commercial and
miscellaneous
i 1,108
i 1,143
1751
914
1,194
1,232
1,371
1,448
1,383
1,420
1,650
1,338
1,014
527
502
750
985
1,300
1,590
Pl, 120
p Preliminary.
1
Excludes ships built for the Emergency Fleet Corporation.
TABLE 5
ESTIMATED EXPENDITURES FOR N E W DURABLE
CONSUMERS' GOODS
ELECTRIC POWER
[In millions of dollars]
Plant
Total
Equipmem
Buildings
for Non-
Profit
Total Hous- Instituing
Total
tions
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
7,448
8,394
7,373
9,467
12, 082
12, 396
13, 537
14, 045
13, 457
13, 612
12, 964
9,326
7,071
4,057
3,906
4,913
6,456
8,587
9,634
P7, 630
1,970
1,948
2,313
3,801
4,821
5,229
5,750
5,535
5,357
5,019
3,761
2,291
1,735
709
458
521
913
1,536
1,908
1,817
v Preliminary.
1,785
1,712
2,016
3,414
4,395
4,772
5, 141
4,843
4,645
4,355
3,193
1,824
1,379
515
373
419
813
1,374
1,740
1,618
have been carried back by reference to the movement
of Interstate Commerce Commission figures on capital expenditures.
185 5,478
236 6,446
297 5,060
387 5,666
426
7,261
457 7,167
609
7,787
692 8,510
712 8,100
664 8,593
568 9,203
467 7,035
356
5,336
194 3,348
85 3,448
102 4,392
100
5,543
162 7,051
168 7,726
199 P5, 813
Passenger
mobiles
Household
goods
1,668
2,046
1,370
1,836
2,681
2,507
2,747
3,150
2,690
2,933
3,293
2,065
1,416
788
978
1,342
1,993
2,551
2,726
1,613
3,810
4,400
3,690
3,830
4,580
4,660
5,040
5,360
5,410
5,660
5,910
4,970
3,920
2,560
2,470
3,050
3,550
4,500
5,000
P4, 200
auto-
The estimates are derived from Department of
Commerce adjustments of data compiled by the
Edison Electric Institute. These adjustments consist of eliminating estimated expenditures for land,
as well as expenditures of municipal
power plants
included in the Institute's figures.2
TELEPHONES
The estimates in this case, both as to total expenditures and as to split between plant and equipment, were supplied through the courtesy of the
American Telephone and Telegraph Company. They
cover the entire industry.
TRANSIT
For 1922-1937 the estimates are those of the Transit Journal. For 1919-1921 expenditures for structures have been taken
from the Department of Commerce estimates.3 For equipment, Transit Journal
data for 1922 and later years were carried back by
reference to street railway cars built,4as reported by
the American Railway Car Institute.
OTHER UTILITIES
These consist of petroleum and gas pipe lines,
manufactured and natural gas, telegraphs, and
roads, compiled by the Association of American cables. The figures shown are the sum of the DeRailroads. From the figures for way and structures partment of Commerce estimates for these separate
(construction) have been deducted purchases of series.5
land as reported by the Interstate Commerce Com- 2
Construction Activity in the United States, 1915-1937, p.
mission, and to the remainder, as well as to the 66, See
and supplements.
T h e D e p a r t m e n t ' s estimates
eliminate
figures for equipment, has been added a uniform in- municipal
e x p e n d i t u r e s only in t h e case of construction.
We
crement of 5 per cent to allow for capital expenditures have applied t h e ratios used here to expenditures for m a c h i n e r y
a
n
d
e
q
u
i
p
m
e
n
t
.
of Class II and III railroads and for switching and
3
Op. cit., p . 63.
terminal companies. For the years 1919-1921 the As- 4 Statistics
of Car Buildinp
and Car
Repairing.
5
sociation of American Railroad figures thus modified
O p . cit., p p . 65-69, a n d s u p p l e m e n t s .
734
FEDERAL RESERVE BULLETIN
MINING AND MANUFACTURING
Except for two or three manufacturing industries,
we have no budgetary or accounting data on capital
expenditures such as are relied on in the case of
railroads and public utilities. For this reason it has
been necessary to derive the estimates by a radically
different method.
Plant
Factories.—Department of Commerce estimates
have been used throughout, with the exception of the
year 1919, which is a tentative figure of our own.
They are derived through various adjustments of
data on contracts awarded for factory construction
as compiled by the F. W. Dodge Corporation.6
Mining development outlays.—Very little statistical
material is available from which to derive estimates
of mining development expenditures, and any efforts
along this line must of necessity be highly tentative.
The bulk of these development expenditures consists of the cost of drilling oil and gas wells. Data
are available on the number of wells drilled each
year (including dry holes) for the period covered
by the present study, and the estimation of the total
annual expenditure on drilling (exclusive of drilling
machinery, which is covered elsewhere) involves multiplying the number of wells drilled by some figure
for the average cost per well.
For 1935 it is possible to derive a fairly reliable
figure from a study
of drilling costs made by the
Bureau of Mines.7 For all wells drilled in that year
the average cost appears to have been in the vicinity
of $18,500.8 For the years 1927-1930 an estimate is
obtainable from data
compiled by the United States
Tariff Commission.9 By taking the estimated amount
of "intangible development expenses" plus "amortization of tangible development expenses" per barrel of
oil produced (Table 80), applying it to the total
crude production of the United States, and dividing
by the number of producing oil wells drilled during
the period, we derive an10 average cost for producing
wells of around $24,000. The inclusion of dry holes
and ugas wells brings this figure down to about $22,500.
This over-all average appears to be fairly
well in line with trade estimates for the period.12
How the average changed in the period 1919-1926
it is difficult to say. There was probably some increase in the average depth per well in this interval,
and it might appear therefore that the average expense of drilling was increasing correspondingly.13
6
7
Op. cit., p. 49, and supplements.
O. E. Kiessling and others, Technology, Employment, and
Output Per Man in Petroleum and Natural Gas Production,
Table
VIII.
8
The Bureau's study covers drilling costs of oil wells and
dry holes only. The cost of equipping producing wells is included. We have assumed that the average cost of gas wells
is 9two-thirds the cost of drilling and equipping oil wells.
Production Costs of Crude Petroleum, 72d Congress, First
Session,
House Document 195.
10
The cost of dry holes is not included in the expense items
just
cited.
11
It was assumed that the average cost of dry holes bore the
same relation to the average for producing oil wells as shown
in the Bureau of Mines study for 1935, and that the cost of gas
wells
averaged two-thirds the cost of producing oil wells.
12
Petroleum Facts and Figures (2d Ed. p. 115) places the
average cost in 1928 at $22,540. A 1931 estimate from the same
source (4th Ed., p. 88) makes it $22,000. An estimate for the
first half of 1927 by the Oil and Gas Journal is $19,261 (cited
in Petroleum Facts and Figures, 1st Ed., p. 161).
13
That the increase in average depth may have been moderate
is suggested by the fact that the average for 1925 (the first
year for which estimates appear to be available) was the same as
for 1930, and higher than for 1934-1936. Oil Weekly, January 30,
1939, p. 57. On the other hand it must be considered that there
was between 1919 and 1925 some shift in the distribution of
drilling activity in favor of areas with deeper wells. Petroleum
Facts and Figures, 5th Ed., p. 206.
SEPTEMBER 1939
Experts in this field who have been consulted do not
accept this as a foregone conclusion, however, since
there were improvements in drilling technique that
accompanied the increase in depth and tended to offset the increase in average cost that would otherwise
have occurred. Certainly for the four years, 19271930, covered by the Tariff Commission study no clear
trend in average cost is discernible. In the absence
of any adequate data to support an estimate of average drilling costs prior to 1927, we have simply assumed, pending further evidence and investigation, a
constant average of $22,500 for the entire period, and
have multiplied by this figure the number of oil and
gas wells (including dry holes) drilled each year.
The resulting estimates are purely provisional,14and
it is hoped that they may be improved later on.
The average cost of $22,500 per well used through
1930 was scaled down by 1935 to the $18,500 found
by the Bureau of Mines study for that year, and was
scaled upward thereafter to $21,000 in 1938, by reference to annual data on the average depth per well,
supplemented
by indexes of general construction
costs.15 The results leave much 16
to be desired, but may
serve as rough approximations.
It will be noted that these estimates cover all drilling costs, other than purchases of drilling machinery,
regardless of whether they are charged to capital account. This is the only instance throughout the field
of producers' goods in which we have knowingly and
avoidably included an item widely treated as a current expense by the accounting practice of the
industry concerned. "Intangible" drilling costs,
which make up generally somewhat over half of the
total, are almost universally expensed for incometax purposes, though the trend is said to be toward
capitalization for other purposes, largely as a result
of the extension of the life of wells through proration.
That the drilling of a well represents durable construction can hardly be disputed, since the average
life of wells is probably between 5 and 10 years.
Construction involving a similar durability and size
of outlay would ordinarily be capitalized in any
other industry, and we have therefore included
"intangible" drilling costs as capital outlays regardless of accounting customs.
As for mining development expenses in other lines
than petroleum and gas, only two basing points are
available throughout the entire period, namely those
provided by the censuses of mines and quarries of
1919 and 1929. The census figures presumably relate to development expenses of the kind customarily
capitalized, hence exclude the very large volume of
routine or current development operations which are
regularly charged to operating expense. The volume
of these capitalized outlays is relatively small
(around $100 million in 1919, $90 millions in 1929,
14
The Census of Mines and Quarries for 1919 shows a total of
development expenses for petroleum and gas wells of only $236
million, which works out at approximately half of the average
of $22,500 per well assumed in the present estimates. It appears, however, that the reporting of drilling costs was very
incomplete, many concerns returning only costs charged to capital
account. The expensing of "intangible" drilling costs and outlays for dry holes has long been a widespread practice in the
industry.
15
Average well depths were obtained from the Oil Weekly,
January
30, 1939, p. 57.
16
We have for the period 1931-1934 a study of oil-producing
costs by the Petroleum Administrative Board (Report on the Cost
of Producing Crude Petroleum) in which is shown (Table 4) the
average per-barrel cost attributable to "amortization of development costs", but the figures on this item are clearly untrustworthy. Conversation with certain officials intimately acquainted
with the study discloses an incomplete capitalization of prioryear drilling expenses for the purpose of computing current
amortization.
SEPTEMBER 1939
FEDERAL RESERVE BULLETIN
735
less than one-fifth of the expenditures in those years
for the drilling of oil and gas wells). No satisfactory
series appears to be available for interpolating the
movement of development costs between the census
years, or for extrapolating beyond 1929. In lieu of
anything better, the interpolations and extrapolations
have been accomplished by reference to the movements of expenditures for factory construction.
their allocation in toto to mining and manufacturing
or a "split" in the form of a partial allocation. There
is probably a significant volume of machinery and
equipment destined for use in this field which is concealed in census categories of too broad or catchall a character to permit of identification. Moreover, there are other categories, most notably in the
field of electrical machinery and equipment, that
clearly contain items going into mining and manufacturing use, but for which no satisfactory basis
Equipment
for a "split" appears to exist. It seems certain,
The various steps in the process of estimation may therefore, that the figures compiled by the procedure
described above must reflect a fairly sizeable underbe outlined briefly as follows:
1. From the various censuses of manufactures, tabulation, the magnitude of which, unfortunately,
beginning with the census of 1925, we tabulated all we can only guess.
Probably an even more important deficiency lies
items of finished machinery and equipment used
entirely, 17
or almost entirely, in mining and manu- in the omission of machinery and equipment asfacturing.
To the value of such items we added sembled or produced in the establishment using it.
such fractions of the value of items used both in If it is purchased in parts and put together on the
mining and manufacturing and elsewhere
as wepremises of the buyer, it is likely not to appear in
allocated to mining and manufacturing.18 For census the census as a finished good, in which case it is not
years prior to 1925 the series thus obtained was ex- included in our tabulation. If it is built in the user's
trapolated by reference to the movement of the own shops, it likewise slips through the net. Moreover, the method fails to catch overhaulings and reaggregate of a list of items selected from Kuznets'
tabulation of producers' machinery and equipment.19 newals of old machinery chargeable to capital
2. Interpolations for inter-censal years were made account.
There appears no way of estimating satisfactorily
by reference to the movement of Kuznets' 20estimates
the total deficiency arising from undertabulation of
for "industrial machinery and equipment."
3. The series derived after these interpolations completed units sold to mining and manufacturing
was then adjusted for imports and exports of mining concerns and from the production and assembly of
and manufacturing machinery and equipment as machinery and equipment within the consuming
tabulated from detailed foreign trade statistics pub- establishments. Certainly it is known that in the
lished by the Department of Commerce, thus giving case of many large manufacturing organizations the
the volume of machinery and equipment destined for proportion of machinery and equipment produced
internally is very sizeable, though less so for small
the domestic market, at producers' prices.21
4. The next step was to raise the values obtained establishments. Experts connected with the maunder (3) to allow for transportation costs and dis- chinery industry, with whom we have consulted, have
tributive margins between producer and consumer. expressed the opinion that as much as 15 or 20 per
The allowance in this case was derived from Kuznets' cent of the total charges to the machinery and equipestimates of the total spread between producer and ment account in mining and manufacturing may be
consumer in 1929
for various categories of machinery attributable to assembly and production in the
and equipment.22 An appropriate weighting of the using plants. This is of course a mere guess. In any
relevant items in Kuznets' table resulted in the de- event in raising the estimates as obtained in step
cision to raise the value of mining and manufacturing (4) enumerated above, we have made a flat allowmachinery at producers' prices by 12^ per cent. ance of 25 per cent, of which some 10 per cent is
This ratio of increase was applied uniformly through- for undertabulation and the remainder for production within the consuming establishments. This is,
out the period.
5. The results obtained under (4) were raised obviously, a purely provisional solution of the probfurther by an arbitrary allowance for undertabula- lem. It is hoped that eventually a better basis for
tion and for equipment produced within the establish- this adjustment can be found.
ment using it (hence not included in the census data).
AGRICULTURE
This last adjustment deserves special discussion.
Let us consider first the matter of undertabula- Plant
tion. It is obvious that we can tabulate only finished
The term construction as it pertains to agriculture
machinery and equipment included by the census
in classifications sufficiently specific to permit either includes production buildings, wells, windmills,
fences, and similar fixed improvements to farm real
As noted in the introduction, the tabulation is exclusive of
estate. The estimates shown here were prepared by
parts and accessories, small tools, durable shop supplies, and
the Bureau of Agricultural Economics.
They are
similar items prevailingly charged to current expense.
23
The fractions of such "split" items allocated to mining and provisional and subject to change.
17
18
misceuaiicuut)
, IU wtis pussiuie LU a u j u s i
Lilt: uivisiuii Ui SUCH lttiiris
between the two classifications for other years than 1929 (the
"base" year for determining the split) by reference to the relative movements of the aggregates of "straight" or exclusive items.
19
Commodity Flow and Cajntcd Formation, Table 1-4, pp. 89, ff.
20
The same, Table II-3, p. 137.
21
Only 80 per cent of the net balance as tabulated was used, a
deduction of 20 per cent being an allowance for parts and accessories included in the items tabulated from the trade statistics.
The adjustment for imports and exports of motor trucks was
made on the basis of data published in Automobile Facts and
Figures.
22
The same, Table III-5, p. 213.
Equipment
This series includes farm machinery of all kinds,
tractors, and trucks. As presented here it does not
include any passenger automobiles even though these
23
It should be noted that the Bureau's estimates cover repair
expenditures as well as outlays on new construction. The latter
are not available separately. The inclusion of minor repairs of
the kind charged to current expense under ordinary accounting
rules results in somewhat too high a level for the estimates as
compared with the estimates for other types of business construction.
736
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
are widely used by farmers for business purposes. Equipment
The estimates, like those for farm construction, repAutomobiles.—Prior to 1925 there are available
resent the work of the Bureau24 of Agricultural Ecoonly figures on factory sales of passenger cars in
nomics, and are also tentative.
the domestic market. To obtain from these figures
COMMERCIAL AND MISCELLANEOUS
estimates for retail sales it is necessary to make
This is a catch-all category intended to embrace allowance for changes in dealer inventories year by
all types of private enterprise other than railroads, year. In the absence of significant statistical matepublic utilities, agriculture and mining and manu- rial on this point, the estimates used had to be very
facturing. Some of the principal components are largely guesses, the basis for which need not be elabmerchandising, the service industries, and common- orated. Beginning with 1925 and extending through
carrier and contract transportation by highway 1929, the estimates rest on Polk's compilation of
and water.
new car registrations in the United States, adjusted
for undertabulation in accordance with a schedule
Plant
prepared by Mr. O. P. Pearson of the Automobile
This consists of commercial and miscellaneous Manufacturers' Association. For the period beginbusiness buildings, for which the estimates of the ning 1930 they rest on a tabulation of retail sales
Department of Commerce, based on Dodge Corpora- prepared
by the Automobile Manufacturers' Association statistics, have been used.25
tion.29
The estimates derived from these sources were in
Equipment
terms of the number of units sold annually at retail
The problem of estimation in this case is very in the domestic market. To convert these unit figsimilar to that encountered in the case of mining and ures into value the following procedure was adopted.
manufacturing machinery, already discussed. The From Automobile Facts and Figures we obtained the
procedure in general has been similar, hence it is un- average wholesale value of passenger cars sold in the
necessary to repeat the description, and we shall com- American market each year. This wholesale value
ment only on a few minor points of difference.
was then raised to allow for the transportation and
1. Interpolations for inter-censal years (see (2) distributive30 margin worked out by Kuznets for the
under mining and manufacturing above) were de- year 1929. It is known that this margin has varied
rived from the movement of a total composed of somewhat from year to year and over a period of
minor groups 35, 36, and 38-41 in Table II-3 of Com- years, but there appears no reliable means of estimating the variation, hence the use of the 1929 ratio
modity Flow and Capital Formation, p. 137.
2. The allowance for transportation costs and dis- throughout. Here again it is hoped that the estitributive margins between producer and consumer mates may be improved by further revision.
Household durable goods.—This category emwas obtained by a weighted combination of Kuznets'
detailed estimates for 1929 as shown in Commodity braces, so far as it is practicable to segregate them,
Flow and Capital Formation, Table III-5, p. 213. It all consumers' durable goods other than automobiles.
turned out to be about 17 ^ per cent of the producer For the period 1919-1933 the estimates were derived
value, and was applied uniformly throughout the by adjustments of Kuznets' figures on consumers'
period covered by the estimates.
durable goods, as follows. From the value of con3. The allowance for undertabulation and produc- sumers' durable goods destined for domestic contion of machinery and equipment within the using sumption, at producers' prices, the items for pasestablishments is 10 per cent instead of the 25 per senger cars and auto parts and accessories were
cent used in the case of mining and manufacturing. subtracted, leaving household durables, as here deThis lower margin is in recognition of the prob- fined, destined for domestic consumption.31 To obtain
ability that production by users is relatively small the value of these goods at retail it was necessary
in this field.
to add the estimates for the transportation and distributive margin for consumers' durables as a whole,32
Plant
TABLE 5
portion of the margin attributable to
Housing.—For non-farm housing (not shown sep- minus that and
auto parts and accessories, and then
arately) the estimates are based on the study of automobiles
to make adjustments for changes in distributive inDavid L. Wickens and Ray Foster
for
the
National
of the goods in question.
Bureau of Economic Research.26 The series developed ventories
adjustment for inventory changes followed
in that study, as continued since 1936 by Mr. Foster, noThis
set formula and its derivation is difficult to dehas been converted from a projects-started to an scribe
except by saying that it represents a series of
expenditure basis, and to it have been added estimates for major alterations, additions, and repairs guesses which appeared to us, all things considered,
of the kind requiring a building permit. The esti- to give results as nearly as possible in harmony with
mates for farm housing27 are those of the bureau of the lines of evidence available.
For the period since 1933 the estimates just deAgricultural Economics.
Buildings for non-profit institutions.—The esti- scribed were extrapolated by reference to the movemates shown from 1920-1938 are those of the Depart- ment of a compilation of household durable goods
ment of Commerce. They cover religious, memorial, from the censuses of manufactures for 1933,1935, and
educational, social, recreational, hospital, and other 1937, adjusted for imports and exports and for estiinstitutional construction that is privately financed/*" mated change in distributive inventories. The interpolations for the inter-censal years 1934 and 1936
Except for trucks, the estimates include "parts and acces- were derived from various data that need not be
sories", though not repair expenditures other than for parts.
Construction Activity in the United States, 1935-1937, p. 48, described here.
24
25
and supplements.
26
B u l l e t i n 65, Non-Farm
Residential
Construction
1920-1936.
27
The Bureau's estimates include all repairs.
28
Construction
Activity
in the United
States,
1915-1937, p p
50-56, a n d s u p p l e m e n t s .
9
Automobile Facts and Figures, 1939, p . 7.
» Commodity Flow and Capital Formation Table III-5, p . 213.
-1 Op. cit., Table II-5, p . 147.
•2 Op. cit., Table V-6, p . 307.
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
737
NEW GERMAN REICHSBANK LAW
The text of a new law governing the Ger- and the other members of the Managing Board. He
determine the duration of their term of office.
man Reichsbank is published below in trans- shall
(2) Salaries, fees for attendance, pensions, and
lation. This law supplants that of August payments to beneficiaries of the President of the
German Reichsbank and the other members of the
30, 1924, published in the FEDERAL RESERVE Managing
Board of the Reichsbank shall be fixed
BULLETIN for November 1924, and amend- by contract with the German Reichsbank. The conrequires the approval of the Fuhrer and
ments thereto. The principal changes relate tract
Chancellor of the Reich.
to management, share ownership, distribu- (3) The Fuhrer and Chancellor of the Reich may
any time recall the President of the German
tion of dividends, reserve requirements, and at
Reichsbank and the other members of the Managing
power of the Reichsbank to buy and sell Board without prejudice to their contractual rights.
Treasury bills and other Government securSection 5
ities.
(1) The German Reichsbank shall be represented
LAW CONCERNING THE GERMAN REICHSBANK
June 15, 1939.
The German Reichsbank, as the German bank of
issue, shall be subject to the unrestricted sovereignty
of the Reich. Within the scope of the duties entrusted
to it, it shall serve to realize the aims set up by the
National Socialist State, especially the safeguarding
of the German currency.
In order to define the legal status of the Reichsbank
created by the banking law of March 14, 1875
(Reichsgesetzblatt p. 177), the Reich Government has
enacted the following law which is promulgated herewith :
I. LEGAL FORM AND DUTIES
Section 1
(1) The German Reichsbank shall be responsible
directly to the Fuhrer and Chancellor of the Reich.
(2) It shall be a corporate body of the public
interest with its seat in Berlin. It may maintain
branch establishments.
Section 2
The duties of the German Reichsbank result from
its position as bank of issue of the Reich. It shall
have the exclusive right to issue notes. It shall
further regulate the system of money and payments
within Germany and the transfers with foreign
countries, as well as provide for the utilization of
the available means of payment of the German
economy in the public interest and in conformity
with the economic system.
II. DIRECTION AND ADMINISTRATION
Section 3
(1) The German Reichsbank shall be directed and
administered by the President of the German Reichsbank and the other members of the Managing Board
in accordance with instructions from the Fuhrer
and Chancellor of the Reich and under his supervision.
(2) The President of the German Reichsbank shall
have the deciding vote in the Managing Board.
Section 4
(1) The Fuhrer and Chancellor of the Reich shall
appoint the President of the German Reichsbank
NOTE: This law was published in the Reichsgesetzblatt, Part I,
June 16, 1939, No. 107.
by the Managing Board in all judicial and extrajudicial proceedings.
(2) Declarations shall be binding on the German
Reichsbank when made by two members of the Managing Board; they may also be made by representatives designated by the Managing Board.
(3) The directorates of the independent branch
establishments (principal branches and branches of
the Reichsbank) shall represent the German Reichsbank in judicial and extra judicial proceedings within
the business district of the branch establishment
under their direction. Declarations made by the
independent branch establishments shall be binding
on the German Reichsbank when made by two members of the directorate or their representatives. Any
complaints against the German Reichsbank referring
to the conduct of such a branch establishment, may
be made before the court competent in the jurisdiction where the branch is situated.
(4) If a deposition (Willenserklarung) to the
German Reichsbank is to be made, it is sufficient
to make it to an authorized representative.
Section 6
(1) The President of the German Reichsbank shall
appoint an Advisory Committee within the Managing
Board, of which he shall be the Chairman. He shall
appoint a permanent representative from the members of the Advisory Committee.
(2) The President of the German Reichsbank may
appoint subcommittees of the Advisory Committee
for certain departments of activity and may entrust
individual members of the Advisory Committee with
specified duties.
(3) Local committees may be formed in the branch
establishments.
(4) The members of the Advisory Committee and
the local committees shall serve without remuneration.
Section 7
(1) The President of the German Reichsbank shall
appoint the employees of the bank. At the time of
the appointment of these employees the representative of the Fuhrer or the office named by him shall
be consulted regarding the regulations applying to
Government employees.
(2) The employees of the Reichsbank are indirect
employees of the Reich. Their legal status shall be
governed by the regulations for employees to be
issued by the President of the German Reichsbank,
which shall take into consideration the specific needs
of an orderly and efficient banking business. The
738
FEDERAL RESERVE BULLETIN
regulations are to be approved by the Reich Government.
(3) The employees of the Reichsbank are subject
to the penal code of the Reich. The President of the
German Reichsbank shall be the supreme authority
over the employees of the German Reichsbank.
Section 8
(1) The President of the German Reichsbank shall
issue the regulations concerning salaries, fees for
attendance, pensions, and payments to beneficiaries
as well as salary increases of the employees of the
Reichsbank. These regulations require the approval
of the Reich Government.
(2) The President of the German Reichsbank, in
individual cases according to the requirements of
the German Reichsbank, may grant special remunerations for special services; the total amount of these
remunerations may not exceed one-tenth of the entire payroll for the employees of the Reichsbank.
SEPTEMBER
1939
enterprises which have their headquarters within
the area wherein this law is valid.
(3) The owner of a share must, on demand by
the German Reichsbank and within a period specified
by it, prove that he is entitled to hold shares according to (2) above. The Managing Board of the Reichsbank shall decide without recourse to legal steps
whether or not proof has been given.
(4) The statutes (section 27) may provide for
the issue of stock certificates; they may be transferred by endorsement. The form of endorsement,
the proof of identity of the bearer, and his obligation
of surrender are governed by articles 12, 13, 14 (2),
and article 16 of the negotiable instruments law,
mutatis mutandis.
Section 12
(1) The general meeting shall represent the shareholders.
(2) The annual balance sheet and the report on
the administration of the Bank shall be presented to
the general meeting. On the proposal of the President of the German Reichsbank, it shall decide on
the increase of the capital stock.
Section 9
The President of the German Reichsbank may employ notarial officers (Urkundsbeamte) at the German Reichsbank and its branch establishments. They IV. SPHERE OF ACTIVITY OF THE GERMAN REICHSBANK
must have the qualifications for appointment as judge
and carry an official seal. They may attend to all
Section 13
business matters of the German Reichsbank which
(1)
The
German
Reichsbank
shall be authorized
belong to the office of a notary. Authorization to
represent the German Reichsbank may be evidenced to conduct the following transactions:
1. Buy and sell bills and checks in respect of
by a certification of a notary of the German Reichswhich three endorsers of known solvency are rebank.
sponsible. Bills must be due within three months
Section 10
from the date of purchase; they must be good com(1) The members of the Managing Board of the
mercial bills;
Reichsbank, all persons occupied in the service of the
The requirement of the third endorsement may
German Reichsbank, as well as the members of its
be dispensed with if the bill or check is secured
Advisory Committee and the members of the local
by collateral or in some other manner;
committees, shall be bound to observe secrecy as to
2. Buy and sell Treasury bills issued by the
all matters and arrangements of the Bank which
Reich which must be due within three months from
come to their knowledge, and especially as to all
the date of purchase. The Fiihrer and Chancellor
transactions of the Bank and as to the extent of
of the Reich shall determine the maximum amount
credits granted, even after their connection with
which the German Reichsbank may hold by virtue
the Bank shall have been terminated.
of this provision and on which it may make ad(2) Without the consent of the President of the
vances in accordance with 5(c) below;
German Reichsbank they shall not make any depo3. In order to regulate the money market, buy
sitions regarding such matters or give evidence
and sell fixed interest-bearing securities which are
either in court or out of court. Permission to testify
admitted to official trading on the stock exchanges,
as a witness may be refused pnly if the testimony
as well as Treasury bills which are due within one
would prove prejudicial to the interests of the Reich,
year from the date of purchase;
would seriously endanger the performance of public
4. Buy and sell gold and foreign exchange;
services or would render it considerably more diffi5. Grant loans at interest for not more than
cult. Permission to make a deposition may be withthree months on collateral (Lombard loans), i.e.,
held if the deposition would otherwise prove detria) on gold up to the amount of the purchase
mental to the service.
price (section 14),
(3) Paragraph 96 of the criminal code shall apply
b) on bills, which meet the requirements of 1
to the German Reichsbank with the proviso that th^
above, at a maximum of 9/10 of their nominal
supreme authority in the sense of this provision shall
value,
be the President of the German Reichsbank.
c) on Treasury bills issued by the Reich which
meet the requirements of 2 above, at a maximum
III. CAPITAL STOCK AND SHAREHOLDERS
of 9/10 of their nominal value,
d) on fixed interest-bearing securities desigSection 11
nated by the Managing Board of the Reichsbank,
on Treasury bills of the Reich or a German prov(1) The capital stock of the German Reichsbank
ince, which mature within one year from the
amounts to RM 150,000,000. It is divided into shares.
date of the loan—either individually designated
The shareholders shall not personally be responsible
securities or a part of a block of securities held
for the liabilities of the German Reichsbank.
at one of the large security deposit banks—as
(2) Shares of the German Reichsbank may be
well as claims against the German Treasury at
owned only by German citizens who, on the basis of
a maximum of three-fourths of their market
their racial origin, fulfill the requirements for acquivalue,
sition of citizenship, as well as corporate bodies and
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
If there is no listed quotation on the stock exchange for values of this sort, the Managing
Board of the Reichsbank shall fix the loan value
of the collateral according to the liquidation
value,
e) on merchandise stored in Germany or documents representing it at a maximum of 2/3 of its
value.
If the debtor of such a collateral loan is in default, the German Reichsbank shall be authorized,
without having previously obtained judicial authorization or assistance, to cause the pledged
article to be sold publicly by one of its officials or
by an authorized auctioneer or, if the pledged
article has a stock exchange or market price, to
cause the sale to be made even privately by one
of these officials or a broker at the current price,
and from the proceeds to reimburse itself for costs,
interest, and capital. The German Reichsbank
shall reserve this right also as between itself and
other creditors of the debtor as well as between
itself and the debtor's estate in bankruptcy.
6. To accept non-interest-bearing funds in clearing accounts or as deposits—in exceptional cases
also interest-bearing funds;
7. To receive for safekeeping and in trust valuables, especially securities. The German Reichsbank shall have the status of a depositary of securities.
8. For account of others, after receiving cover
in advance,
a) to conduct banking transactions,
b) to buy and sell precious metals.
(2) The Managing Board of the Reichsbank shall
make public the interest rates which will apply in
the transactions of the German Reichsbank.
Section 14
(1) The German Reichsbank shall be under obligation to buy gold bars at its head office in Berlin
at the fixed price of RM 2,784 per kilogram fine. It
shall be authorized to have the gold assayed and refined at the cost of the seller.
(2) The German Reichsbank shall sell for cash
from its available holdings gold bars at the price
of RM 2,790 per kilogram fine, if their use for
economically justifiable purposes appears to warrant it.
Section 15
(1) The German Reichsbank shall be under obligation to conduct all banking transactions for the
Government in sp far as they fall within its scope
in accordance with the present law, as well as to
negotiate all payments between the treasuries of the
Reich, the districts of the Reich, the States, the
communities, and the communal associations. For
these services it shall not charge the Reich for costs
and fees.
(2) The Reich shall entrust the German Reichsbank with all its banking transactions affecting the
general administration of the Reich. The Reich shall
issue loans and treasury bills primarily through the
German Reichsbank.
Section 16
(1) The German Reichsbank may grant to the
Reich working credits, the maximum amount of which
shall be determined by the Fiihrer and Chancellor
of the Reich.
739
(2) The German Reichsbank may further grant
working credits to the German Postal Service and
the German Railways up to a combined maximum
amount of RM 200,000,000 for the two organizations.
In this cape, at the request of the German Reichsbank,
the provision in section 15 (2) shall be applied
mutatis mutandis.
Section 17
The German Reichsbank shall be authorized to
acquire and dispose of stocks and bonds of the German Gold Discount Bank and stocks of the Bank
for International Settlements and to guarantee the
subscription to such stocks.
Section 18
(1) Transactions other than those provided for
in sections 13 to 17 shall be undertaken by the German Reichsbank only for administrative purposes or
for the execution or liquidation of permissible operations.
(2) The German Reichsbank is forbidden to accept
bills of exchange.
Section 19
(1) If the German Reichsbank certifies a check
drawn on it, it shall become liable to the bearer for
payment; it shall also become liable for payment to
the maker and the endorser.
(2) The German Reichsbank shall be authorized
to certify checks only after previous coverage.
(3) Payment of the certified check may not be
refused even if in the meantime proceedings in bankruptcy have been instituted against the estate of
the maker.
(4) Liability arising from certification expires if
the check has not been presented for payment eight
days after date of drawing. The provisions of article
40 of the law concerning checks shall apply in regard
to proof of presentation.
(5) Claims arising from certification shall become
outlawed two years after expiration of the time for
presentation.
(6) For the legal enforcement of claims based
on certification, the provisions for competence and
methods of procedure regarding bills of exchange
shall apply.
(7) Certification shall not involve any obligation
to pay the bill stamp or any other fee.
V. NOTE
ISSUE, NOTE COVER, AND STATEMENT
Section 20
(1) Reichsbank notes shall be the only unrestricted
legal tender, except gold coins of the Reich.
(2) Reichsbank notes shall be denominated in
Reichsmarks. Reichsbank notes for amounts smaller
than ten Reichsmarks may be issued only by agreement with the Government.
Section 21
(1) Note circulation of the German Reichsbank
must at all times be covered by its holdings of:
Bills of exchange and checks in accordance with
section 13, 1,
Treasury bills of the Reich in accordance with
section 13, 2,
Securities in accordance with section 13, 3,
Funds at call based on Lombard loans in accordance with section 13, 5.
740
FEDERAL RESERVE BULLETIN
(2) Gold and foreign exchange holdings shall be
kept by the German Reichsbank at such a level as is
deemed necessary in order to settle balances with
foreign countries and maintain the value of the
currency.
(3) Gold and foreign exchange holdings, which
are at the disposal of the German Reichsbank at any
time, shall be admitted as note cover in addition to
the cover mentioned under (1) above. Gold in the
sense of this provision means the gold coins of the
Reich, calculated at their face value, furthermore
gold bars and other gold coin, calculated at RM 2,784
per kilogram fine. Foreign exchange holdings in
the sense of this provision means current foreign
moneys with the exception of subsidiary coin, foreign
bills and checks denominated in foreign currency
and payable abroad in accordance with section 13, i,
as well as funds on call payable in foreign currency
at a bank of known solvency in a foreign financial
center.
Section 22
(1) The German Reichsbank shall make compensation for damaged notes, if the bearer can produce
either a part of the note larger than half of it or
produces evidence that the rest of the note, of which
he presents only half or a smaller portion, has been
destroyed. The Managing Board of the Reichsbank
shall decide without recourse to legal steps whether
sufficient proof has been given.
(2) The calling and withdrawal of notes shall be
effected by the Managing Board of the Reichsbank,
which shall issue further regulations for the purpose.
These regulations shall be published.
(3) Notes which are called in shall be invalid
after the time limit set by the Managing Board of the
Reichsbank.
(4) The German Reichsbank shall not be required
to make compensation for destroyed, lost, or invalid
notes.
Section 23
(1) The German Reichsbank shall publish regularly the position of its assets and liabilities.
(2) The statement shall show:
1. Under liabilities:
Capital stock,
Reserves and provision for bad debts,
Note circulation,
Demand deposits,
Time deposits,
Other liabilities;
2. Under assets:
Gold and foreign exchange holdings, eligible
as note cover;
Holdings of:
Bills, checks, and Treasury bills of the
Reich,
Securities acquired in accordance with
section 13, 3,
Lombard loans,
German subsidiary coin,
Rentenbank notes,
Other securities,
Other assets.
(3) In addition there must be a statement showing any conditional liabilities in respect of rediscounted bills of exchange payable in Germany.
SEPTEMBER
1939
VI. YEARLY BALANCE AND DISTRIBUTION OF PROFITS
Section 24
(1) The Managing Board of the German Reichsbank shall draw up the annual balance sheet.
(2) Ten per cent of the annual net profit shall
be carried to a reserve fund until this reserve reaches
the amount of the capital stock. This legal reserve may be used only as compensation for depreciation and as cover for other losses. The use of the
legal reserve does not preclude the existence of free
reserves, designated for compensation of depreciation
and as cover for other losses.
(3) Stockholders shall receive a dividend of 5 per
cent out of the remaining net profit. Any surplus
shall be turned over to the Reich.
VII.
PENALTIES
Section 25
(1) A penalty of imprisonment and a fine of unlimited amount, or either of these penalties—in case
of negligence, imprisonment or a fine—shall be imposed on:
1. Any person who without authorization issues
or uses for payment moneys (stamps, coins, notes
or other documents which are capable of being
used in monetary transactions instead of the legally
issued coin or notes), even if their value is not
expressed in Reich currency, or who issues or uses
for payment noninterest-bearing bearer bonds;
2. Any person who uses for domestic payments
moneys issues abroad which are denominated exclusively in Reich currency or in Reich currency
combined with other denominations.
(2) Attempts at such action shall be liable to
penalty.
(3) In addition to the penalty the objects in connection with which punishable action is committed
may be confiscated. If no specific person can be
prosecuted and sentenced, the confiscation may take
place independently, provided the given premises
warrant such action.
Section 26
(1) The members of the Managing Board of the
Reichsbank shall be punishable with a fine or with
imprisonment:
1. If they intentionally misrepresent or make
equivocal statements regarding the position of the
Reichsbank in the balance sheet published in accordance with section 23;
2. If they intentionally direct or permit the
German Reichsbank to issue notes in excess of the
authorized amount.
(2) Criminal proceedings shall be entered at the
order of the Fiihrer and Chancellor of the Reich.
VIII. FINAL AND TRANSITORY PROVISIONS
Section 27
(1) The President of the German Reichsbank shall
issue the statutes. The statutes and their amendments shall be published.
(2) The statutes shall make provisions regarding:
1. The organization of branch establishments;
2. The Advisory Committee of the German
Reichsbank and local committees;
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
3. The shares of the capital stock of the German Reichsbank, their transfer or pledging;
4. The issue and form of stock certificates and
their appurtenant dividend and renewal coupons,
the public notice to be given in case of the loss or
destruction of share certificates and the annulment thereof, and the procedure in case of loss
of dividend or renewal coupons;
5. The general meeting, especially regulations
concerning the exercise of the voting right and
order of business;
6. The business year, the closing of the books,
and the annual report;
7. The verification of the accounts and the procedure to be followed in this verification;
8. Payment of dividends.
(3) Until the President of the German Reichsbank shall issue the statutes, the existing statutes
shall remain in force in so far as the provisions of
this law do not contradict them.
Section 28
(1) The Managing Board of the Reichsbank and
the committees of the branch establishments of the
German Reichsbank shall have the status of authorities of the Reich.
(2) Within the sphere of activity of the German
Reichsbank the Managing Board shall have the
status of the highest authority of the Reich.
(3) Provisions regarding the liability of the
Reich toward its employees shall apply mutatis
mutandis to the German Reichsbank.
Section 29
741
Reichsbank by April 30, 1940. If a share certificate
has been destroyed or lost, it shall be sufficient, instead of depositing it, to prove that the loss has been
publicly advertised.
(2) Every stockholder shall prove at the time of
deposit or the latest on April 30, 1940, that he is
entitled to hold Reichsbank shares (section 11 (2)).
Stockholders, whose names have not been entered on
the stock register of the German Reichsbank, shall
request that they be entered by April 30, 1940, and
they shall furnish any legal proofs deemed requisite
by the German Reichsbank. The German Reichsbank shall not be liable for the reexamination of
such legal proofs.
(3) Without resort to legal steps the Managing
Board of the German Reichsbank shall decide whether
or not the requisite proofs in paragraph (2) above
have been furnished.
The Managing Board may
grant an extension of time for furnishing these
proofs.
(4) Reichsbank stock certificates, which have not
been deposited within the time limit set according
to paragraph (1) above or for which the holders have
not furnished proof within the time limit set, may
on behalf of the Reichsbank be declared invalid, together with their appurtenant stubs and dividend
coupons, in a public notice by the Managing Board.
The shares shall be re-issued.
(5) Further regulations for the execution of this
provision shall be issued by the Managing Board of
the Reichsbank.
(6) The German Reichsbank shall grant an indemnification for the shares declared invalid. It
shall grant further an indemnification for the alteration of distribution of profits.
(7) The indemnifications are definitely fixed by
the general meeting upon the recommendation of
the Managing Board of the Reichsbank.
In case of public announcements made by the
German Reichsbank, a single insertion in the German
Reichsanzeiger and in the Prussian Staatsanzeiger
shall be sufficient. The announcement shall be in
Section 34
force as soon as the issues of the German Reichsan(1) The terms of service of the members of the
zeiger and of the Prussian Staatsanzeiger containing
Managing Board of the Reichsbank, who are in office
it have appeared in Berlin.
at the date of effectiveness of this law, shall be governed bv the former regulations.
Section 30
(2) Until the issue of regulations for employees
Shares of the German Reichsbank shall be ad- in accordance with section 7 and of provisions
mitted to trading on every stock exchange. In order concerning salaries, attendance fees, pensions, and
to list these share on the exchange, a description payments to beneficiaries of employees of the Reichsof them must be furnished to the management of the bank in accordance with section 8, the former prostock exchange; the publication of a prospectus visions shall remain in effect.
shall not be necessary.
(3) Employees of the Reichsbank, who heretofore have had more extensive privileges than this
law and the regulations to be issued under section
Section 31
7 ( 2 ) will grant to them, shall retain these privileges.
(1) The German Reichsbank enjoys the same
privileges as the Reich concerning matters of buildSection 35
ing, residence, and renting.
No fee shall be charged for changing the name
(2) Provisions regarding participation in Chambers of Industry and Commerce shall not apply to the "Reichsbank" into "Deutsche Reichsbank" in the
land register.
German Reichsbank.
Section 36
Section 32
The following shall cease to be in force:
The German Rentenbank shall not increase the
The banking law of August 30, 1924 (Reichsamount of its notes in circulation. The Rentenbank
gesetzblatt II, p. 235), including the laws constinotes shall be withdrawn in accordance with special
tuting amendments thereto,
regulations.
Section 1 of the law amending the banking law
Section 33
of March 19, 1924 (Reichsgresetzblatt II, p. 73),
(1) Stock certificates in existence when this law
The regulation of the Federal Council concerncomes into force together with their renewal and
ing certification of checks by the Reichsbank of
dividend coupons shall be deposited at the German
August 31, 1916 (Reichsgesetzblatt p. 985), and
742
FEDERAL RESERVE BULLETIN
article 6 of the introductory law to the law regarding checks of August 14, 1933 (Reichsgesetzblatt I,
p. 605),
The law concerning the issue and redemption of
emergency currency of July 17,1922 (Reichsgesetzblatt I, p. 693), and Chapter IX of the Third Regulation of the President of the Reich for the Safeguarding of the Economy and the Finances of
October 6, 1931 (Reichsgesetzblatt I, pp. 537, 562),
including the further regulations issued in connection with it.
SEPTEMBER
1939
Section 37
(1) This law shall take effect upon its publication, and the regulation concerning distribution of
profits (section 24) shall be retroactive for the business year 1938.
(2) The provisions of paragraph (2) of section 11
shall not preclude the right of participation in the
general meeting which determines the indemnifications mentioned in section 33.
Berchtesgaden, June 15, 1939.
CUBAN MONETARY LEGISLATION
A number of monetary measures have been
enacted in Cuba in recent months. One group
of measures relates to the establishment of
a stabilization fund. The other group provides for the settlement in pesos of certain
obligations contracted in United States dollars and contains provisions designed to prevent speculative changes in exchange rates
and in the prices of goods and securities.
Translations of these measures are published
below. Summaries and texts of other monetary measures enacted in Cuba in recent
years were published in the FEDERAL RESERVE
BULLETIN for September 1938, pages 768769, October 1934, pages 660-661, and July
1934, pages 468-471.
MEASURES RELATING TO STABILIZATION FUND
DECREE NO. 1358*
WHEREAS: The Economic Defense Law of October
29, 1914, provides in Article X that "only national
currency and that of the United States of America
shall be legal tender for the payment of obligations,"
and all subsequent legislation and provisions supplementary thereto serve to ratify and clarify that original intention of the Legislature to cause both currencies, that is, the national currency and that of the
United States of America, to circulate and be accepted
without distinction, for which reason it is the duty of
the Government of the Republic to prevent the breaking of the parity which for a long period existed between these currencies, especially if, as is now the
case, the depreciation of the Cuban currency is not
the natural result of the free working of the law of
supply and demand but is a phenomenon produced
artificially by profit and speculation.
WHEREAS: In the laws governing Joans and in the
bond issues of the debt of the Republic there has been
invariably included the obligation that payments be
made in currency of the United States of America,
which compels the Cuban Government periodically to
make the necessary provision of such currency and
affords speculators a pretext for increasing the rate
of exchange by an exaggerated premium, to the prejudice of the national currency.
WHEREAS: The aforesaid premium would tend to
decrease as soon as the Cuban State could have at
its disposal in the United States of America the necessary amount of currency of that country to meet,
when due, the payment of service on its Foreign Debt,
1
This Decree was published in the Official Gazette of the
Republic of Cuba dated June 15, 1939.
a monetary provision which might be obtained by
requiring every exporter from Cuba to deposit American currency in a bank of the United States of
America, to the extent of a certain percentage of
the price received for the products exported, such
percentage to be immediately reimbursed at par, with
an equal amount in Cuban currency.
WHEREAS: The exchange at par of the two cur-
rencies will not represent a loss to exporters in Cuba,
since as soon as the system commences to operate the
premium will begin to decrease, and should any premium be found to persist in favor of the currency of
the United States of America, the Cuban exporter's
loss thereby would be compensated by the notable
improvement in foreign exchange conditions.
THEREFORE: In use of the powers with which I am
vested, and on proposal of the Secretary of the Treasury,
I RESOLVE:
The National Currency Stabilization Fund
is hereby established, to be made up of currency of
the United States of America obtained in accordance
with the provisions of this decree.
SECOND : The National Currency Stabilization Fund
shall be deposited in a bank of the United States of
America which the Secretary of the Treasury shall
select, in the manner he may deem suitable.
THIRD: Every sugar exporter shall deliver to the
Government of the Republic, in currency of the
United States of America, 20 per cent of the f. o. b.
price in warehouse at the port of shipment, of sugars
and syrups exported by him. Exporters of other
products shall deliver to the Government, in the same
currency, a sum equal to 10 per cent of the price of
their exports, f. o. b. port of shipment.
FOURTH: Delivery shall be made at the bank that
the Government shall designate and within three days
following that on which the exporter receives the
price or it is credited to his account.
FIFTH : In payment of the amounts that the Cuban
Government receives from exporters in accordance
with the preceding sections, the General Treasury of
the Republic, simultaneously, shall proceed to deliver
to them an equal amount in Cuban currency.
SIXTH : The National Currency Stabilization Fund
shall be made up of:
(a) Currency of the United States of America obtained as a result of the exchange provided for
in this Decree.
(b) Currency of that country collected by the Consular Offices of the Republic; and
(c) Currency of the United States of America
which the Cuban Government may otherwise
acquire.
SEVENTH: The National Currency Stabilization
Fund shall have as its chief function the payment of
FIRST:
SEPTEMBER
1939
743
FEDERAL RESERVE BULLETIN
the obligations of the Foreign Debt of the Republic,
provided that the amounts of said Fund which are
not needed for such payments shall be used, so far as
possible, for the regulation of foreign exchange.
EIGHTH: The Secretary of the Treasury is authorized to make use of any fund of the Treasury in order
to effect the exchanges regulated by this Decree.
NINTH : The Administration of the National Currency Stabilization Fund shall be entrusted to a Commission under the high authority and supervision of
the Secretary of the Treasury.
TENTH : The Commission referred to in the preceding section shall be made up of the Treasurer General of the Republic, who shall be Chairman, the Director General of Customs, and the Director General
of Accounting, the Secretary of the Treasury being
authorized to designate three alternates to act for
the commissioners, in case of illness or absence.
The Secretary of the Treasury shall provide subordinate personnel for the Commission, as well as
office quarters, furniture, and supplies that may be
necessary.
ELEVENTH: The Commission shall issue the necessary regulations to secure proper guarantees from
the exporter that the exchange shall be effected in
the manner established in this Decree, and future
exports by any exporter or producer who fails to
make the exchange that is provided for shall be prohibited.
TWELFTH : The provisions of this Decree shall govern from the date set forth herein with respect to
exporters of sugar or its equivalent. With respect
to exporters of other products, the Decree shall take
effect on the date fixed by the Secretary of the Treasury for each class of product.
THIRTEENTH: With the exception of the Administration of the National Currency Stabilization Fund,
the Office of the Director General of Customs Bureau
shall assume the other functions derived from the
application of this Decree, and to that end there is
created in the Division of Tariffs, Protests and Revision of said Bureau the Export Fiscalization Section,
which shall be made up of the personnel to be appointed by the Secretary of the Treasury, and in no
event shall the creation and functioning of said Section involve new expenditures for the Treasury of
the Republic, until the same are included in the General Budget of the Nation.
FOURTEENTH: The Secretary of the Treasury is
authorized, within the scope of his powers, to issue
such supplementary regulations as may be necessary
for the better application of this Decree.
FIFTEENTH: The Secretary of the Treasury is entrusted with the enforcement of the provisions of
this Decree, which shall take effect from the date of
its publication in the Official Gazette of the Republic,
except as regards the delivery and exchange referred
to in the Third, Fourth, and Fifth sections, which
shall become effective as from June 20 of the present
year 1939.
Done at the Presidential Palace, in Habana, on this
tenth day of June, 1939.
rency Stabilization Fund" and the Commission entrusted with the administration of said Fund.
WHEREAS: Pursuant to the provisions of said
Decree, the National Treasury of the Republic is
required to enforce the resolutions of said Commission, and therefore it becomes necessary to establish
a special service therefor.
THEREFORE: In use of the powers vested in me by
section 14 of the aforementioned Decree, and on the
proposal of the Commission entrusted with the administration of the National Currency Stabilization
Fund,
I RESOLVE:
FIRST: A bureau, to be called "National Currency
Stabilization Exchange Bureau," is hereby created,
which will have charge of all matters connected with
the foreign currency obtained through the application of Decree No. 1358, it being understood that the
creation of said bureau will entail no additional expenses whatever to the National Treasury until such
time as these are included in the General Budget of
the Nation.
SECOND: The office of Chief of the "National Currency Stabilization Exchange Bureau" implicitly
carries with it the position of Chief of Office of the
Commission entrusted with the administration of the
Stabilization of National Currency.
The General Treasury of the Republic is charged
with the enforcement of this Decree.
Habana, June 16, 1939.
JOAQUIN OCHOTORENA,
Secretary of the Treasury.
TREASURY DEPARTMENT INSTRUCTION3
In use of the powers conferred upon me by section
14 of Presidential Decree No. 1358, of June 10, 1939,
and on proposal of the Commission entrusted with
the administration of the National Currency Stabilization Fund, I resolve to issue the following:
INSTRUCTION NO. 1
The provisions of Presidential Decree No.
1358 shall be applied only to the shipments of sugars
and syrups carried by vessels approved for export in
conformity with the provisions of Article 147 of the
Customs Regulations, beginning on the 20th day of
this month.
SECOND : For the purposes of appraisal of the shipments, sugars shall be classified in two groups: refined sugars, or those the polarization of which is
above 99°; and unrefined sugars, which include all
other sugars, whatever be their polarization.
For the purpose of estimating the price of unrefined sugars, the average price of the quota to which
the sugars that are exported belong, that is, that
fixed by the Department of Agriculture in fulfillment
of the provisions of Article VI of the Law of June 25,
1938, shall be taken, after converting said average
price into currency of the United States of America.
The average prices which appear under the heading,
FEDERICO LAREDO,
"United States—Free," shall be applied to the sugars
President.
of the American quota, and those set forth under the
JOAQUIN OCHOTORENA,
heading, "Other Countries—Free," to the other
sugars exported.
Secretary of the Treasury.
For the purpose of estimating the value of refined
2
TREASURY DEPARTMENT DECREE
sugars, the same procedure fixed in the preceding
WHEREAS: Presidential Decree No. 1358, of June paragraph shall be used, adding 8 per cent to the
10 of the present year, created the "National Cur- prices which must be applied.
FIRST:
2
3
Published in the Official Gazette of the Republic of Cuba
Published in the Official Gazette of the Republic of Cuba
dated June 27. 1939.
dated June 27, 1939.
744
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
THIRD: The Customs Bureau shall forward to the
stock broker, the penalty shall be from six months
customhouses the list of average prices in currency
and one day to three years, a fine of one hundred
of the United States of America which are to be in
to three hundred fifty quotas, and special prohibiforce during every fortnight, for the purpose of
tion from continuing such business for a period
estimating the value of sugar shipments.
equal to that of the imprisonment imposed.
"(C) Managers, administrators, directors or
FOURTH : All sugars and syrups exported in vessels
counselors of the companies, corporations, or juapproved for export shall contribute to the National
ridical entities responsible for these manipulations
Currency Stabilization Fund commencing on the
to increase or depreciate their own securities or
20th, even though the total or partial price of said
property, shall incur the same penalty."
sugars may have been paid in Cuba prior to the date
of the shipment.
ARTICLE III. The Executive shall have charge of
The Commission is charged with the enforcement the supervision and inspection of exchange transof this Instruction.
actions which might be altered in the manner mentioned in the preceding article, and to that end shall
Habana, June 17, 1939.
make use of such agencies as may be necessary for
JOAQUIN OCHOTORENA,
the discharge of this high function.
Secretary of the Treasury.
ARTICLE IV. Without prejudice to application of
penalties for violation of Article 556 of the Social
MEASURES RELATING TO SETTLEMENT IN
Defense Code, the President of the Republic, in the
PESOS OF CERTAIN OBLIGATIONS CONface of grave emergencies resulting from such violaTRACTED IN U. S. DOLLARS
tion, is authorized and directed to issue orders, create
agencies, or delegate functions, for the establishment
LAW OF JULY 8, 1939 4
of the rules and regulations that he may deem proper
ARTICLE I. The following paragraph is added to to prevent any unjustified depreciation of the national currency.
Article V of Decree-Law No. 410 of 1934:5
ARTICLE V. Likewise, the President of the Repub"If the currency agreed upon is legal tender of lic may issue whatever measures and orders may be
obligatory acceptance in Cuba, the other currency necessary, to prevent the increase in prices of articles
which enjoys parity in its legal value and has un- of prime necessity, and he may likewise decree such
limited circulatory force for obligations entered measures as he may deem proper for preventing the
into, or to be fulfilled, in the national territory, increase of public service tariffs, whether such servshall have the same consideration for debts in the ices are rendered by the State, the Province, or the
currency referred to. Obligations contracted in Municipality, or by any natural or juridical person.
connection with sales of, or loans on, produce,
ARTICLE VI. The authorization granted in Articles
which is sold principally in foreign markets, shall IV and V of this law shall remain in force until Connot be included in this provision, nor shall there gress enacts such legislation as it may deem proper
be included transactions in connection with bank in connection with the national currency.
accounts formed by deposits of cash which belong
ARTICLE VII. All laws, decree-laws, orders, regulato their owners for purposes of withdrawal, nor tions, and other legal provisions which are contrary
those derived from public debts, in which the Gov- to the fulfillment of this law are hereby repealed,
ernment shall maintain payment in the currency the same to take effect from the date of publication
stipulated."
in the Official Gazette of the Republic.
THEREFORE: I order that the present law be enThe provision contained in the preceding paragraph will have retroactive effect with reference to forced and executed in all its parts.
Done at the Presidential Palace, in Habana, July
obligations awaiting payment, for reasons of social
interest, which is being safeguarded, and of public 8, 1939.
FEDERICO LAREDO,
order.
President.
ARTICLE II. Article 556 of the Social Defense Code
JOAQUIN OCHOTORENA,
is amended to read in the future as follows:
Secretary of the Treasury.
"ARTICLE 556. (A) Those who, through the
TREASURY DECREE NO. 1727
spreading of false rumors, by propagating false
news or taking advantage of any artifice, or carryWHEREAS: Article I of the Law of July 8, 1939,
ing on any act which might disturb or falsify the published in the Official Gazette on July 10, provides
conditions of supply and demand, or which should as follows:
cause damage to the general conditions of the
"The following paragraph is added to Article V
market, causing an unjustified increase or deof Decree-Law No. 410 of 1934:
crease in the value of currency of legal tender, in
the current price of goods, public or private in" 'If the currency agreed upon is legal tender
come, quotable securities, salaries, or anything else
of obligatory acceptance in Cuba, the other curthat might be the subject of a contract, shall be
rency which enjoys parity in its legal value and
punished by imprisonment from three months to
has unlimited circulatory force for obligations
two years, and a fine of from ninety to three hunentered into, or to be fulfilled, in the national
dred quotas.
territory, shall have the same consideration for
debts in the currency referred to. Obligations
"(B) If the offense be committed by the direccontracted in connection with sales of, or loans
tors, representatives, or officials of banks, corporaon, produce, which is sold principally in foreign
tions, entities or juridical persons, or by an intermarkets, shall not be included in this provision,
mediary agent, broker, stock exchange agent, or
nor shall there be included transactions in con4
Published in the Official Gazette of the Republic of Cuba
nection with bank accounts formed by deposits
dated July 10, 1939.
of cash which belong to their owners for purSee FEDERAL RESERVE BULLETIN for October 1934, p. 660.
6
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
poses of withdrawal, nor those derived from
public debts, in which the Government shall
maintain payment in the currency stipulated.'
"The provision contained in the preceding paragraph will have retroactive effect with reference
to obligations awaiting payment, for reasons of
social interest, which is being protected, and of public order."
WHEREAS: This Executive, in response to representations made by the Havana Clearing House
banks, realizes that when regulating, as is now being
done, Article I of the above Law of July 8, it should
be clearly established that the real purpose of said
Article I is to govern principally private and mercantile operations contracted and to be fulfilled within
the national territory and which are negotiations of
an internal nature and that it should not apply to
those operations or mercantile or other negotiations
in which American money is used on the basis of its
international value, such as those upon which the dispositive part of this Decree is based and which should
be liquidated by payment in the money in which they
were contracted.
WHEREAS : Aside from the ample authority granted
this Executive by Articles III, IV, and V of said Law
of July 8, 1939, he has also the faculty to promulgate
regulations necessary to insure better compliance
with laws when such regulations have not been issued
by Congress, as occurs in this case, and under the
provisions of Article 69 of the Constitutional Law in
force.
THEREFORE: In accordance with the authority
granted this Executive by the said Constitutional
Law and by the said Law of July 8, 1939, and other
existing legislation, and upon the recommendation of
the Secretary of the Treasury,
745
of a document payable in Cuba by the buyer, or
what are known in banking or commercial language as "collection items" (efectos al cobro)
and, in general, the payment of the price of merchandise imported from abroad through purchase or any other forms or means of credit
operations.
(b) Commercial credits with or without letters (of
credit) used in commerce to finance or facilitate
the importation of merchandise and, generally,
letters of credit of all kinds.
(c) Drafts on foreign countries and exchange operations in general, for the purpose of transferring
funds abroad.
(d) Loans collateraled by public debt certificates
or those of any foreign company or entity which
(certificates) are payable in foreign money,
since the owner of such certificates must receive
the principal and interest thereon in such money.
(e) Crop loans (refaction) or obligations of any
other nature, contracted for by produce-exporting industries already excluded under the law
in so far as sales or loans guaranteed by produce
principally exported, are concerned, if such crop
loans or other obligations are to be paid by the
produce in question and if such produce has to
be sold largely in American money and such
money need not be acquired (especially) to liquidate them.
(f) Overdrafts accepted by banks from their clients
shall be paid in the currency of the account in
which the bank has authorized the overdraft,
provided it has not been formally converted in
some other way into a loan.
ARTICLE II. This Decree shall become effective from
I RESOLVE:
the date of its promulgation in the Official Gazette.
Done at the Presidential Palace in Habana, July
ARTICLE I. Article I of the Law of July 8, 1939
shall not be applicable to the following operations or 19, 1939.
FEDERICO LAREDO,
obligations, which must be paid in the money agreed
upon:
President.
(a) Payment of the price of merchandise purJOAQUiN OCHOTORENA,
chased abroad in United States money by means
Secretary of the Treasury.
746
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
ANNUAL REPORT OF THE BANK FOR INTERNATIONAL SETTLEMENTS
The ninth annual report of the Bank for
Under the strain of almost uninterrupted
International Settlements, covering the year political tension, bringing with it general
ending March 31, 1939, was presented by uncertainty as to the business outlook, conDr. J. W. Beyen, president of the Bank, to tinuous capital flight from Europe and growthe annual general meeting of shareholders ing armament expenditure in all countries,
on May 8, 1939. Selections from the report the economic development of the world does
are given herewith i1
not, however, show the picture of colorless
gloom that one would expect. It lacks, of
RECENT ECONOMIC DEVELOPMENTS
course, stability and nowhere inspires conIt is not difficult to indicate the reasons fidence in the strength of the more favorable
why business last year passed through tendencies that are at work. The state of
periods of great anxiety. In the opening the world is feverish rather than healthy;
months of 1938 repercussions of the abrupt and whatever recovery may be seen is anydecline in American industrial activity that thing but steadfast, since it is dependent on
had begun in the previous autumn were felt the use of stimulants on the one hand and
all over the world, particularly in the export interrupted by grave disturbances on the
trade. This decline proved the more de- other.
In the face of grim reality in Europe there
pressing as it came at a time when there
were high hopes of more sustained prosperity is decidedly less belief in experimentation
in the United States. The general weakness with new methods of economic policy. Too
in prices of primary products, a consequence many measures that in former years were
of reduced American demand, and the down- discussed as the outcome of economic wisdom
ward tendency of many other prices called were in fact forced on governments by dire
for reductions in costs and other adjust- necessity. When a violent storm blows up
ments, which generally met with resistance the first task is to avert disaster and to steer
from interested parties. In countries of the as well as possible in face of contrary winds
sterling area, which had experienced almost and currents. But on the whole the weather
uninterrupted expansion since the autumn in the past year, although stormy, was not
of 1932, conditions were ripe for a slacken- altogether unkind and not all the winds were
unfavorable.
ing of internal activity.
To this situation were added exceptional
COST AND PRICES
events of a political character, which dealt Although increased efficiency has enabled
rude shocks to business and left in their industry to stand a secular decline of workwake a level of armaments and military ing hours accompanied by rising wages, yet
preparation never before witnessed in times experience has demonstrated that abruptly
of peace. Among the most striking signs of
decreases of hours or increases of
the political, uncertainty was the pressure forced
wages
may,
by their dislocating effects on
on sterling caused by mass movements of the cost structure,
be extremely unfavorable
funds which, with other factors, added to a continued upswing
the business cycle.
$1,500,000,000 to the American gold stocks Reductions of hours of ofwork
made in some
in the five months from August to December
1938. More harmful effects were found in
Actual Working Hours per Week.
the restraints suffered by ordinary business,
50
50
as initiative was cramped and the will to
Ge
"':
:
make new investment weakened. Filling the
France
gap by government orders for armaments
\A A
•Art
and other purposes for the time being helped
to sustain employment but necessarily diFrance
verted productive power from the pursuit
of normal trade and especially tended to
impair the export capacity of the countries
/s/"
r 35
35
h ,
\ / >
most deeply involved.
i
II|M,M
II
.i
..[..,..
M n
A
1
It has been necessary for reasons of space to omit a considerable amount of interesting factual material. This has reduced
the length of the report by about two-thirds. The complete
report is available in English. For earlier reports see BULLETIN
for June 1938, 1937, 1936, 1935, 1934, 1933, 1932 and July 1931.
u.
1931
1932
A
/
ff
,.A.
1933
i U.S.A.
193*
1935
1936
1937
1938
1939 ° u
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
countries to "spread employment" have
notably failed to achieve their object. At
most it has been possible to stem the tide,
as is often the case with measures of government interference. Exchange restrictions,
import duties and export premiums may prevent conditions from getting worse in the
country where they are employed, but they
rarely help to make them better. And it is
doubtful how far their influence even on the
internal economy of a country is really as
effective as it appears, though account must
be taken of a particular combination of circumstances in some countries, which explains
their special policy. As to the fostering of
employment, it may be said, on the basis of
the experience of recent years, that all experiments have failed except those that lead
to increased production either by direct government management of the whole economic
system or by creating the one condition
necessary for increased investment by
private enterprise, i. e., a just equilibrium
between cost and prices.
W a g e Rates and Prices of Finished Products
a. in the United States.
130
1936
1937
b.
1938
in Great Britain.
Priceof finished products
i i i i i 1 i i I i i
1936
I i i I i i 1 i
1937
I i i I i i I
1938
It was a feature of the boom in the United
States during the winter of 1936-37 that
costs of production rose at an unusually rapid
rate. Prices of primary products increased
by fully 30 per cent from the autumn of 1936
to March 1937; the dangerous effects of so
747
sudden a rise were fully recognized by the
authorities; in February 1937 President
Roosevelt uttered a warning "that prices
were too high". But there does not appear
to have been, at the time, the same realization of the danger involved in the sudden
rise in wage costs, although the advance in
hourly wage rates of the leading industries
in the United States was unusually rapM,
amounting to no less than 15 per cent within
a period of seven months and exceeding the
simultaneous rise in the prices of finished
articles.
There can be no doubt that the rise in costs
of production was one of the main causes
of the precipitous decline in industrial activity of the United States during the second
half of 1937. With a more gradual advance
in wage rates the chances were that a greater
number of unemployed would have been
absorbed by industry, increasing the purchasing power in the hands of the public
without the same risk of an early setback.
Not even the most extensive distribution of
purchasing power by the government nor
the persistent pursuit of a cheap-money
policy succeeded in bringing about a lasting
recovery when costs rose so much as to be
out of line with current prices of finished
articles.
In France before the devaluation in 1936
commodity prices had fallen more than
wages, though in each of the years 1930-36
"purchasing power" was distributed from
budgets balanced only by means of large
public borrowing. French industrial activity
continued to decline. Under the regime of
far-reaching price control established in
Germany, industrial and commercial businesses were allowed an appropriate margin
of profit to enable them to carry out their
economic tasks; to prevent a general rise in
prices the principle was adopted that wage
rates should be maintained unchanged but
at such a level that an adequate minimum
income would be secured for the workers.
For a policy of public works to be helpful
as a stimulus to trade, it must be framed not
as a substitute for but as part of a general
endeavor to bring about a return to equilibrium in the economic system; the individual
methods of application should be governed
by this overriding consideration. Care must
be taken particularly lest the carrying-out
of an extensive policy of public works intensifies a disequilibrium already existing.
The inauguration of such a policy usually
involves starting publicly-financed construe-
748
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
tion on a large scale; and the consequent re-establishment of a real equilibrium within
demand for labor may easily lead to a rise the cost and price structure has been imin wages. As a natural recovery in the peded by internal or external causes.
building trade has proved to be a most reIt cannot be overemphasized that the
liable—not to say indispensable—element in establishment of those conditions which
a general revival of business, an increase in make for a more lasting recovery of industry
building costs may be very detrimental in is indispensable for a general improvement
that it may more than offset the beneficial in the standard of living. All available evieffects of the immediate extra employment dence shows that in times of rising output
in the trade.
labor receives proportionately as large an
Much attention has been devoted to the increment as capital and absolutely a bigger
Swedish public-works policy in the years gain, since labor's share of the national in1932-35 when, in order to stimulate business come is by far the larger. The attainment
and give some temporary work to the un- of equilibrium in the cost and price structure
employed, fairly substantial provisions were should not be regarded only as a question
made in the budget for increased spending of between labor and capital; it directly affects
public money, the charges being met by a the general question of increasing the volume
temporary increase in the national debt. It of employment. For after all the absorption
is of some interest to note that, notwith- of the unemployed must depend upon the
standing the inauguration of this policy (and attraction of labor to expanding activities,
the depreciation of the Swedish crown in producing goods and rendering services for
1931), the wages of Swedish workers, in- which the demand is growing, from other
cluding those in the building trade, were activities (and among them in many counreduced by 4 to 10 per cent in the period tries agriculture) in which there is relative
1931-34. A Swedish Royal Commission re- overproduction. A sharp rise in wage costs
porting in 1938 on conditions in the building in the go-ahead industries must increase the
industry ascribed the intense development cost of the finished products and thus limit
of building in Stockholm during the years ales; it will also stimulate the use of more
1934-37 largely to the reduction in building labor-saving machinery and in that way
costs and to the low interest rates at which further reduce the demand for labor. Less
money had been readily available for house labor will thus be employable in these infinancing. With the improvement in Swedish dustries, which usually are those already
business from 1934 to 1937, not only was the paying the highest wage rates, and condicut in wages which had been conceded dur- tions in other occupations will be pro tanto
ing the depression fully restored but addi- adversely affected.
tional increases were obtained in most
There is no doubt that the problem of
branches of industry. The policy thus pur- transfer of labor from one occupation to
sued, which has led to a remarkable reduc- another has become more difficult to solve
tion in the number of unemployed, has been in recent years and especially in comparison
as much in the interests of labor as of the with conditions ruling before the world war
employers.
when the leading industrial countries in
Equilibrium in the Swedish cost and price Europe and America, thanks to a great nastructure was thus re-established, on the one tural increase in population and great freehand, by a reduction of costs (decrease in dom of migration, were expanding more
wage rates, etc.) and, on the other, by a rapidly than at present. If, for example, in
series of expansionist measures including the first decade of the present century the
the inauguration of a public-works policy number of workers in a given industry beand the gradual application of cheaper came excessive, it sufficed, as a rule, to abmoney rates, which in a measure also served stain for a few years from engaging new
to reduce the cost of production. If Swedish workers in that industry, leaving the young
experience be compared with that of other people entering the labor market to seek
countries, it may be concluded that one- their first employment in other industries.
sided reliance on expansionist measures is The natural expansion of demand from a
a dangerous line of policy; neither cheap growing population could be relied upon to
money nor the spreading of purchasing bring about equilibrium almost by itself.
power through the budget or by increases Only by way of exception was the progress
of wages has anywhere brought about a of rationalization so rapid as to upset the
sustained revival of business so long as the functioning of this mechanism. At present
SEPTEMBER
1939
conditions are in many respects different.
As far as the increase in demand is concerned, it will not be brought about in the
same degree as previously by an increase in
population but will rather be the result of
a rise in the standard of living. One important effect of this change is that a gradual
increase in the demand for more or less the
same kind of goods can no longer be expected
but there will be considerable shifts in the
direction of the demand. Furthermore, account must be taken of changes in technique
affecting the number of workers required in
different industries. As a consequence, the
leading industrial countries are increasingly
faced with the most difficult problems of
transferring workers who have already become qualified in some particular industry
to other occupations. Coal-mining is a case
in point. From 1901 to 1911 the number
of coal miners in Great Britain increased by
36 per cent from 752,000 to 1,021,000; from
1924 to 1938, on the other hand, the number
fell by the same proportion from 1,214,000
to 777,000, while output declined by 15 per
cent only. The demand for coal, it is true,
has been affected not only by the more stationary character of the population but also
by competition from oil and electricity; but
for that very reason it illustrates well the
difficulties which have arisen.
The expansion in the boom years 1927-29
was most marked in a number of relatively
new industries—artificial silk, automobiles—
while many older industries in the United
States as in the United Kingdom and Germany hardly took part at all in the expansion;
the 1927-29 boom was, in other words, much
less "all-round" than the upward swings in
earlier times. Thus the various countries
are confronted by a series of problems which
did not arise in the same intensity before
the world war. Conscious efforts are the
more needed to overcome the many causes
of friction which a more complicated organization of society necessarily involves and to
facilitate the entrance of workers into other
trades than those in which they have been
originally employed. The importance of finding a solution to these problems extends far
beyond the particular sphere of the labor
market; for upon mobility of labor and a fair
distribution of costs between different occupations depend the attainment of a healthy
development of industry and a more even
dispersion of income between different employments. No monetary policy can by itself
mend the mistakes which arise from an un-
749
FEDERAL RESERVE BULLETIN
balanced direction and remuneration of a
country's productive forces.
CHEAP MONEY
Be it said once, however, that it is not
intended to minimize the part played by
cheap money in overcoming the depression
of 1930-33. In the active post-war decade
the capital loss suffered during the war was
quickly repaired in many countries and important additions were made to capital equipment all over the world. As a result it
became an indispensable condition for the
maintenance of economic and financial equilibrium that interest should be brought down
from the relatively high post-war level to
rates more in conformity with those ruling
before the World War. In fact, it was necessary, at least in some countries, to reduce
rates below the pre-war level in view of the
more stationary character of the post-war
population in the western world and the
downward tendency of commodity prices
from 1924 onwards (as compared with the
rise of about 30 per cent in the price level
from 1900 to 1914). In the United Kingdom
the conversion of the huge block of War
Loan from 5 to 31/2 per cent in 1932 paved
the way for a general reduction in long-term
rates. In the United States, a debtor country
before the war with interest rates well above
the standard in the richer European countries, the transformation to a creditor as
well endowed with capital equipment as any
other country necessitated a downward adjustment in the interest structure the more
difficult to achieve as there was no precedent
for really low rates, or, rather, none outside
the short-term market in New York; and,
moreover, the important field of mortgage
financing suffered from a serious lack of
organization, impeding the necessary adjustment.
It seems, however, as if in wide circles
the conclusion had somewhat hastily been
drawn that the cheap-money policy, having
proved beneficial as a means of overcoming
the 1930-33 depression, should be maintained
unchanged in future to serve as a basis for
business prosperity and, as a consequence,
that no increase should be made in the official
discount rate of the central bank. Looking
back on developments in recent years, there
can be little doubt that if in the late autumn
of 1936 a warning had been given by an increase in bank rate business people would
have become more hesitant and as a result
avoided the unduly large purchases of stocks,
750
FEDERAL RESERVE BULLETIN
the raising of prices and the substantial increases in wages. By this hesitation a more
balanced position would have been maintained and a great decline in industry and
employment would have been avoided.
There are thus some obvious dangers involved in a policy of abstaining from increasing bank rate as a means of preventing the
emergence of disequilibrium in the cost and
price structure, especially when there is often
little reason to expect that such a rise will
lead to any serious restriction in the use of
credit. The purely mechanical effect of a
rise in bank rate is generally of less importance than the psychological effect, i. e., the
warning signal given by the monetary authority. An increase of one per cent in bank
rate does not as a rule materially increase
costs for the users of credit and certainly not
much for the holders of commodity stocks.
The psychological effect, on the other hand,
can be very great and in many instances
sufficient to check a tendency to undue expansipn. One danger is indeed that the
warning may be too much heeded. It seems
as if the general public and the political and
business worlds had become so used to cheap
money and so persuaded as to its beneficial
effects that an increase in bank rate (intended simply as an admonition to caution)
might be taken as a sign of grave times to
come. That being the case, the idea has
to be stressed that the use of the bank rate
can only partially, if at all, be replaced by
other means of action. Other kinds of warning can easily cause a "scare" with highly
undesirable and unforeseeable effects; and
the imposition of official and unofficial embargos seems to suffer from the disadvantage
that a reversal of policy when conditions have
changed may be difficult to ensure, while a reduction in bank rate may be made at the
earliest appropriate moment. It is possible
that only after changes in bank rate have
been made will the business public and others
emancipate themselves from the tendency
to overrate cheap short-term money and appreciate the true significance of the changes.
The Macmillan Committee (page 132) urged
that central banks should not be afraid of
small and frequent changes in bank rate.
"Such small and frequent changes", continues
the Report, "would also have the advantage
of accustoming the public not to attach undue
importance to every necessary adjustment/'
In 1938 only one European country—Belgium—had recourse to an increase of bank
rate when confronted with a violent out-
SEPTEMBER
1939
flow of funds. Generally, however, shortterm rates remain very low or are still declining. In London the rate of discount on
Treasury bills was hardly affected by the
efflux of funds. Long-term rates have, however, been rising in London for the past four
years. The increase in the second half of
1938 is to be associated with the capital outflow but the first sharp rise came in the
spring of 1937 at the time when the armaments program and the consequent heavy
borrowing were announced. It may be recalled that in the period from 1900 to 1914,
under the influence of increasing armaments
expenditure and rising gold production, longterm interest rates rose on the London
market from approximately 21/2 to 3V2 per
cent. The amounts spent for armaments are
now incomparably greater both absolutely
and relatively than they were before 1914.
In the ten years from 1903 to 1913 armaments expenditure of all countries about
doubled, while in the ten-year period from
1928 to 1938 the increase was not less than
sixfold.
If this expenditure is compared with the
national income the following proportions
are obtained: in 1913 the total army and navy
votes in the United Kingdom amounted to
about £77,000,000, say, 3i/2 per cent of the
national income; in 1939-40 the amounts to
be devoted to armaments are budgeted at
£630,000,000, representing about 14 per cent
of the national income or fully four times as
much as the pre-war percentage. Similar
proportions are found in some other countries
as well and give an indication of the exceptional magnitude of current armaments expenditure. Moreover, the permanent burden
threatens to be higher, for one aspect of
present armaments is the rising amount required for maintenance and replacement,
modern material—aeroplanes, guns, ships—
being very expensive while, in addition, the
running costs are high and much of the material soon becomes obsolete.
It is, of course, inevitable that an outlay
on such a scale must exert a strain on finance
and productive effort, impairing the possibilities of social improvement and even directly reducing the standard of living. From
a financial point of view the immediate problem of the Ministries of Finance is to provide
the necessary cash, whether through taxes or
loans, in such a way as neither to endanger
the purchasing power of the national currency at home nor to upset the balance of payments in relation to countries abroad. The
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
safest policy is doubtless to cover as much as
possible of the expenditure from taxation,
but on such a scale the hundred-per-cent
application of this policy is hardly possible,
meeting as it does with obvious psychological
resistance and being in some ways technically
harmful to the development of maximum
production. The aggregate of budget deficits
in the world today covered by borrowing
exceeds $1,000,000,000 per month.
To limit the burden of armament financing
the governments will naturally be anxious to
borrow on the cheapest terms. That does not
mean, however, that the Ministries of Finance need be opposed to an increase in bank
rate when required by market conditions.
An advance in short-term rates may be only
partially reflected on the long-term markets
and not cause an addition to the burden on the
budget such as might at first be expected. But
no budgetary consideration can equal in importance the predominant interest of maintaining equilibrium in the cost and price
structure so as to prevent a setback in trade
and industry. The somewhat higher cost of
the floating debt is trivial compared with the
cost to society as a whole (and therefore also
to the government finances) of a serious setback in business of the kind which occurred
in the recent recession when industrial production in the United States fell by one-third
from September 1937 to May 1938. The
adoption of a flexible policy would, of course,
in no way interfere with the working of the
modern technique of preventing international
movements of funds from exerting an undue
influence on credit conditions in the markets
affected.
One of the anomalies of the present situation is that the abundant gold production
has been absorbed in relatively few centers,
the consequences being that in these centers
a very high degree of liquidity is found,
based on the large gold reserves of the central banks and high cash reserves in the
hands of the commercial banks. In so far as
previous experiences may serve as a guide, it
may be recalled that the first result of the
new gold obtained from the Transvaal in the
'nineties of the last century was to create a
large measure of liquidity and very low interest rates on the short and long-term markets.
As, however, under the influence of the large
gold production, commodity prices began to
rise—with a lag of perhapsfiveto ten years—
manufacturers and merchants needed more
working capital to finance the holding of
stocks; at the same time profit rates began to
751
rise, stimulating the investment of long-term
capital; and soon interest rates stiffened.
If, with the abundant gold production of
today, a definite rise in commodity prices
takes place, interest rates should again begin
to move upwards. An artificial insistence on
cheap money would then most certainly have
a disturbing effect on the credit system, with
untoward repercussions on economic life
generally.
In the international field normal credit
relations for commercial purposes are maintained between those countries which have
free and relatively stable currencies, and the
exchange of goods between these countries
still represents two-thirds of world trade. In
relation to countries with exchange restrictions the normal international credit mechanism can function only in a limited measure,
though efforts are being made through the
granting of special export credits and the
purchase by central banks of export bills to
provide as much as possible of the ordinary
facilities. It cannot, however, be expected
that settlements resulting from purely commercial transactions will offset each other
completely either in amounts or in time;
there will always be—in the cash and still
more in the forward markets—debit or credit
balances to be taken care of by other than
commercial transactions. The normal functioning of the credit system presupposes a
certain amount of financial credits; therefore when attempts are made to distinguish
between desirable and undesirable credit
transactions in order to eliminate speculation, what is to be regarded as "desirable"
cannot possibly be restricted to purely commercial transactions, for such a restriction
would interfere with the proper working of
the markets. Before 1931 differences in
pressure between the different money
markets were speedily evened out by an inflow or outflow of banking funds. When
there was an increase in the flow of financial
funds from one market to another beyond
the normal requirements of seasonal and
similar changes, the fault was not in the
credit system, which continued to pursue
its function of equalizing the pressure of
credit, but in underlying disturbances affecting the whole range of international capital
movements. The crisis which developed in
1931 has, more effectively than even the war
of 1914-18, put out of action the system of
banking credits from one market to another.
It is particularly when an attempt is made
to restore the old facilities that the advan-
752
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
tages of the previous sensitive mechanism
The decline in the value of the French
functioning in a world of stable exchanges franc in the spring of 1938 had its repercussions on the currencies of other countries
are best realized.
and particularly on the Belgian franc, which
EXCHANGE RATES, FOREIGN TRADE, AND PRICE in the first half of May sustained an attack
MOVEMENTS
of extreme intensity. At first the Belgian
commercial banks were able to finance the
1. EXCHANGE RATES
demand for foreign currencies from their
Under the influence of an expanding vol- own liquid resources, but on Monday, May 9,
ume of world trade, the year 1937 witnessed heavy demands were made for credit facilthe re-establishment of exchange stability in ities to the National Bank, which was thus
a higher degree than in any year since 1931. in a position to make its influence strongly
Unfortunately this achievement was not con- felt. On Tuesday, May 10, bank rate was
solidated in 1938 when, on the contrary, a raised from 2 to 4 per cent and on the same
distinct setback occurred, caused by the fall day the President of the Banking Commisin raw material prices, which adversely af- sion (at that time also Governor of the
fected the balance of payments of the pri- National Bank) conferred with representamary producers, and by the international tives of a number of the most important
political situation, which caused a heavy out- banks and secured their co-operation in a
flow of nervous funds from London and some program designed to restrict to a minimum
other European centers primarily towards the granting of new credits and to prevent
New York.
credits already granted from being used for
During certain periods of intense political other than normal commercial purposes.
unrest the foreign exchange markets dis- Moreover, the National Bank itself, before
played unusually great activity: but the ex- lending to a commercial bank, made sure that
tent to which the world's exchange position the bank in question had fully utilized its own
deteriorated during the year should not be resources and that none of its cash in Belgian
exaggerated. Over the year 1938 the ex- currency was used for swap transactions.
change value of sterling declined by 6^2 per While maintaining the spot rate of the franc
cent, but even so the sterling-dollar rate was at the gold export point, the National Bank
kept generally within about 4 per cent of the did not intervene to support the rates in the
old par, while inside the sterling area itself forward market but allowed these rates to deno single defection occurred. The raw ma- preciate sharply. The primary object of this
policy was to make speculative selling diffiterial producing countries which suffered
from the fall in the prices of their pr°cl- cult and expensive; and, in fact, forward
ucts kept, as a rule, a strict supervision rates widened on certain days to discounts
over the declines of their exchange rates corresponding at times to 30 per cent and
and, in some cases, lost only whatever im- more per annum—these rates being, howprovement they had made in the previous ever, largely nominal.
year. Moreover, the French franc, which
Already in the second half of May the outin the first four months of 1938 fell by 18 flow of funds was largely arrested, and in the
per cent, was held from May onwards and, first week of June gold began to return and
towards the end of the year, attracted a mea- continued to do so with insignificant intersure of confidence, which found its expres- ruptions to the end of the year. From April
sion in a substantial repatriation of funds.
28 to June 1, 1938, the gold efflux amounted
The fate of the French franc since the de- to B. fcs. 4,540,000,000, of which over onevaluation in the autumn of 1936 has been quarter may be considered to correspond to
dominated by domestic rather than by world withdrawals of foreign-owned funds (in the
developments, i.e., the determining factors form of deposits, notes, etc.) ; of the rehave been the movements of French costs and mainder about one-half represented flight of
prices, the volume of French production, the Belgian capital, speculation, etc., and the
methods of financing the budget deficits and, other half the deferred covering of commerfinally, the attitude of the French public as to cial debts in Belgian francs and anticipated
the probable future value of the currency. payment of debts in foreign currencies. It is
As, in recent years, there has been practically of interest to underline the magnitude of this
no foreign money in the French market, for- last item, for the importance of a shift in the
eign transactions have had little influence on dates and terms of purely commercial paythe value of the franc.
ments is generally greatly underestimated.
SEPTEMBER 1939
FEDERAL RESERVE BULLETIN
753
In the case of Belgium the effect was, how- rations to the contrary—may further devalue
ever, of only a temporary nature and hardly the dollar, and thus a "dollar scare" develops,
affected the yearly figures of gold losses.
driving funds from the country. When busiThe changes in the value of the French ness again shows signs of improvement these
franc and the capital movements to and from fears subside and apprehensions as to the
Paris and Brussels had their effects on the permanence of the present gold equivalent
London market, but a more important influ- of the dollar are forgotten. The coincidence
ence on the exchange value of sterling was in the latter half of 1938 of an upturn in
the relationship to the United States. The business in the United States and a severe
different phases of recent developments are political crisis in Europe created a situation
clearly seen from an examination of net which set capital rushing to the New York
movements of merchandise, gold and capital market.
to and from the United States.
While these movements of capital, caused
by a variety of monetary and political fears,
have dominated the exchange markets at difN E T MOVEMENTS T O
AND FROM U. S. A.
Percentage
ferent periods of the year, other factors have
increase (+)
or decrease (—) Sterl- been by no means negligible.
ing
For- Net re- Reported in 348 indusQuartsrlv figures
(i) Relative developments of wage rates
eign ceipts capital trial stocks on dollar
rate
trade of gold influx (+) N. Y. Stock
and
prices of finished products in the United
bal- from
or
market
Kingdom and the United States over the last
ance abroad efflux (-)
two years have been shown in the graph on
In millions of dollars
Average page 747. The widening discrepancy found
ln%
in the United States between the prices of
4.90 finished products and wage rates has no par+327
+10
1936 Fourth quarter + 67 +352
-114
1937 First
4.89
+396
+323
+ 7
- 34 +633
-12
Second
'
4.93 allel in the United Kingdom, a difference
+630
Third
4.97 which is of importance not only for domestic
+ 98 +426
+350
- 6
-502
-25
Fourth
4.98
+311 +131
-203
1938 First
5.00 business in the two countries but also for
+321 + 63
- 3
-161
Second
'
4.97
+310 +179
- 8
Third
+407
4.87 their exchange relationship.
+231 +751
+21
Fourth
+326
4.72
+273 +981
+ 7
(ii) Another factor which added strength
to the exchange value of the dollar was the
A correlation is found between the trend appearance of an increased surplus in the
of quotations on the New York Stock Ex- balance of payments of the United States at
change and the direction of capital move- a time when current items in the British
ments affecting the sterling-dollar rate. balance showed a substantial deficit. The
When the Stock Exchange was strong, cap- adverse balance of the United Kingdom in
italflowedto the United States; when, on the both 1937 and 1938 was, however, offset by
other hand, the Stock Exchange was de- an excess of sinking-fund and other repaypressed, capital returned to Europe. Para- ments over and above the amount of new
doxically the net total of security transac- overseas issues and had therefore little direct
tions reveal an even trend, variations in the influence on the exchange value of sterling.
movements of capital to the United States
(iii) A much more important factor was
affecting almost wholly the amount held as the use made of funds held by sterling-area
"banking funds." Not even in the period of countries, which habitually keep their monestock exchange weakness from August 1937 tary and other banking reserves in London.
to June 1938, when large amounts of short- In the boom period from the autumn of 1936
term balances were withdrawn, did foreign to the summer of 1937 these countries accuinvestors as a group reduce their holdings of mulated about £100,000,000 sterling assets,
American securities.
of which a substantial part must have been
Thus the striking connection between the obtained from exports to the United States.
trend on the New York Stock Exchange and After the heavy fall in raw-material prices
the flow of capital to and from the United in the autumn of 1937, these countries drew
States can only be indirect in character, re- on their reserves in London to cover their
flecting, it would seem, changes in confidence balances of payments (and also, to some exfelt as to the future of the American economy tent, to buy gold and dollars). The aggreand the value of the dollar. In times of de- gate amount so disposed of exceeded the acpressed business in the United States it is cumulation mentioned above (see page 762).
more or less widely believed that the author(iv) The repatriation of funds to France
ities in Washington—notwithstanding decla- in May and again in the autumn of 1938 also
754
FEDERAL RESERVE BULLETIN
exerted a certain pressure on sterling. The
amount repatriated to France from October
1938 to the end of March 1939 was about
£100,000,000, the greater part of which came
from London.
It is a necessary corollary to the position
held by the United States and the United
Kingdom in world trade and by sterling and
the dollar as key currencies that even a moderate alteration in the sterling-dollar rate is
apt to cause great apprehension. It did not
matter that the decline in sterling's exchange
value in the latter half of 1938 was small
compared with the great changes in the years
1931 to 1934; as long as a downward movement continued it raised monetary problems
of great moment in different countries of the
world.
The question came to a head when sterling
fell sharply at the end of September; interesting movements were shown especially by
the Dutch florin and the Swiss franc, two
currencies which are divided in their allegiance between gold (i. e. the dollar) and
sterling. The significance of the gold link is
largely due to the importance of trade with
Germany, which in both cases passes through
official clearing accounts.
The Dutch florin followed sterling closely
during the latter half of August and the
greater part of September, and only on September 28, when sterling fell sharply, did the
florin break away, steering a middle course
between sterling and the dollar on this and
the following day. On Friday, September 30,
the dollar rate of 1.84 was reached, which
was maintained practically unchanged until
near the end of January 1939 when, under
the pressure of an outflow of funds from the
Dutch market, the florin again yielded a little,
reaching a depreciation of slightly over 22
per cent from the old gold value, i. e., the
same depreciation as when the florin followed
sterling up to September 27, 1938. In March
and April 1939 the florin was again stable on
the dollar at about 1.88.
The Swiss franc maintained a practically
stable rate of 21.30 to the pound during the
greater part of August and September 1938;
but from September 23 onwards it followed
a middle course between sterling and dollar,
with, however, a tendency to a somewhat
closer link with the dollar. According to an
instruction of September 27, 1936 given by
the Federal Council to the Swiss National
Bank, the Bank has to maintain the value
of the Swiss franc at a level corresponding
to a depreciation of about 30 per cent from
SEPTEMBER
1939
the old gold value. Immediately after the
depreciation the National Bank fixed a gold
price of 4,869.80 francs per kilo fine, involving a depreciation of about 29 ^ per cent.
In the autumn of 1938 when the Swiss franc
up to a point followed sterling, the theoretical gold price of the National Bank resulting
from the current gold price in London and
the position of the franc-sterling rate rose
to 4,973.15, involving a maximum depreciation of 30% per cent.
It may be mentioned that in the autumn
of 1938 in France also the question arose
whether the franc should follow the downward movement of the pound. The authorities adopted a somewhat elastic policy, maintaining the fluctuations in the sterling-franc
rate within narrow limits, while still taking
some account of the position towards the
dollar, the policy thus adopted being, so to
say, ratified by the market as the repatriation of capital continued.
2. FOREIGN TRADE
In 1937 the volume of world trade approached the 1929 level after a gradual recovery over five years from the depth of the
great depression in 1932. This favorable
trend was, however, reversed in 1938 when
in the first half of the year world trade
dropped by 10 per cent more than the usual
seasonal decline. This fall was in sympathy
with and very much of the same proportion
as the setback in world industrial production
which began in the autumn of 1937. In contrast to developments in 1930, the first full
year of the previous depression, there was
already a marked recovery in the latter half
of 1938 both in industrial production and in
world trade. This may be taken as a sign of
greater resistance to depressing forces at
the present time than in the difficult years
following the break of the boom in the
autumn of 1929.
The setback of production and the decline
in world trade which began in the latter half
of 1937 tended to increase competition on
foreign markets. Overseas countries had
less purchasing power at their disposal; exchange and import restrictions were intensified ; and, as the highly industrialized countries were less able to utilize their productive
capacity to the full, they vied more keenly
in sales on foreign markets. Greater attention has been given by the governments to
the need for foreign trade; in that respect
a marked change has taken place compared
with the years 1931-1933 when particular
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
stress was laid on internal recovery by means
of public works, protective measures, etc.
It begins to be felt that the fostering of a
country's production for domestic needs with
little consideration for exports may impair
the capacity of paying for necessary imports, reduce the country's relative position
in world affairs and also in some cases make
it more difficult to solve the problem of unemployment. In the final analysis it is
realized that an improvement in the standard
of living presupposes, as it has done during
the last hundred years, a development of
foreign trade; and the essence of the problem
is largely to find the appropriate forms for
the desired advance in the exchange of goods.
In many countries efforts have been
directed towards increased aid to exports
by the granting of credits under government
guarantees (e. g. in the United Kingdom,
Switzerland and the United States). Moreover, some central banks, as, for instance,
the Reichsbank, have arranged to take over
export bills at favorable discount rates. In
countries where forward exchange markets
were lacking, or were active only for particular currencies, central banks have in
many cases made arrangements under which
exporters could cover themselves against
certain exchange risks. These various measures may on the whole be said to aim at
a partial restoration of the credit and exchange facilities which were ordinarily provided by the banking machinery before the
disruption caused by the monetary crisis in
1931.
Other measures to promote exports took
the form of trade agreements between particular governments. Raw material producing countries in 1938 were more than usually
anxious to sell, as their shipments to some
important industrial countries, hit by the
setback, declined sharply. These countries
continued to find in Germany—whose requirements of raw materials tended to increase—a customer to whom they were able
to sell and from whom they could receive
payments in so far as they would take
German goods in exchange. In the bilateral
arrangements which were concluded, difficult
points of negotiation often arose with regard
to rates of exchange and the settlement of
outstanding balances; under the influence of
these agreements German purchases from
the other parties to the arangements, however, increased. As a result German foreign
trade shifted more and more from the main
industrial countries to certain groups of
755
primary producers. Still the magnitude of
the shift should not be exaggerated. The
share of south-eastern Europe in German
imports more than doubled from 1929 to
1938; but in 1938 it amounted only to 10 per
cent. The share of Latin America rose from
lli/ 2 Per cent in 1929 to 15 per cent in 1938.
On the other hand, the continental industrial
countries in central, southern and western
Europe, Great Britain, the British Empire
countries and the United States together still
delivered about 40 per cent of German imports in 1938.
3. PRICE MOVEMENTS
The main characteristics of the commodity
markets last year may be summed up as follows: the rapid fall in prices of industrial
raw materials which began in 1937 came to a
standstill in the middle of 1938 and a certain
recovery set in, though only within narrow
limits; prices of cereals, on the other hand,
continued to fall as a result of abundant
crops. Lower prices for foodstuffs tended to
reduce somewhat the cost of living, but prices
of finished industrial products, though
slightly declining, would seem to have been a
little higher in 1938 than the average for the
previous year. The average import and export prices of Germany and the United Kingdom show the same tendencies: from 1937 to
1938 average prices of imports (mostly raw
materials and foodstuffs for both countries)
fell by around 7 per cent, while prices for
exports (mostlyfinishedgoods) rose by about
2 per cent. Of particular interest are the
variations which have occurred over the last
two years in the relation between the prices
of finished goods and of basic materials.
From the middle of 1933 to the autumn
of 1936 prices of finished goods and of industrial raw materials showed a high degree of stability and did not diverge from one
another by more than 10 per cent. At the
end of 1936 and the beginning of 1937, however, prices of raw materials rose altogether too sharply under the influence of an
acceleration in the world's industrial recovery coupled with general replenishment
of manufacturers' stocks and heavy market
speculation, partly associated with exaggerated beliefs as to the requirements for
armament production. Not only was the
rise disproportionate from the point of view
of the supplies which became available on the
different markets, but it introduced a serious
disequilibrium in the cost and price structure. There was, at the beginning of 1937,
756
FEDERAL RESERVE BULLETIN
also a rise in the price of finished goods but
not in the same degree, and the higher prices
charged made it difficult to maintain the
volume of sales to the ultimate consumers.
Stocks accumulated and when the reaction
came it was particularly violent, being afIndex of Industrial Production in U. S. A.
and Moody's Spot Commodity Price Index.
1929 = 100
1929 1930
1931
1933
1934 1935
1936
1937
19381
fected by the rapid fall in industrial production in the United States and some other
countries and by the increase in the supplies of raw materials induced by the earlier
rising prices. During the fourteen months
from April 1937 to June 1938 the price index
of industrial raw materials in Great Britain
fell from 132 to 87 and since then has shown
little recovery, despite the rapid increase in
industrial activity in the latter half of 1938.
In the above graph, reproduced from the
Monthly Survey of the U. S. Department of
Commerce, a comparison is made for the
United States between the volume of industrial production, according to the Federal
Reserve index, and Moody's index of prices
for 15 staple commodities (including both
industrial materials and foodstuffs). The
latter index, which is more sensitive than the
more comprehensive indices of primary and
semi-manufactured products, has usually
moved fairly consistently with industrial
activity; but this relationship was broken in
the latter half of 1938. For though prices of
rubber, non-ferrous metals, scrap steel, hides
and silk advanced from late June there was
no sustained general rise in the prices of
staple commodities. The main reasons for
this failure of prices to respond to the trend
of industrial activity were the large stocks
available to meet increased demands, the
record crops of cereals and generally the
SEPTEMBER
1939
depressing influence of political uncertainty.
The prices of staple commodities are back
at the level obtaining in early 1934 and still
nearly 40 per cent below 1929. No real reaction has, in fact, set in against the precipitous
decline in the latter half of 1937; for that reason some improvement in prices of staple
commodities from the present depressed
levels would be generally welcomed. It is,
however, important that this improvement
should not be too rapid. There can be no
doubt that the sharp advance in the prices of
raw materials from the middle of 1936 to
the early spring of 1937 was one of the causes
of the subsequent setback in business.
Stocks of raw materials reached their lowest
level for many years at the end of 1936 and
it was this low level of existing stocks which
made possible the sharp price rise. Recent
investigations would seem to show that, in
general, surplus stocks become exhausted and
prices rise quickly just before the upper
turning-point of the business cycle, i. e., immediately before the setback. When, on the
other hand, raw-material stocks are more
plentiful, they act as a brake on an advance
in prices and in that way furnish support
to a more lasting recovery. A gradual rise
in raw-material prices is certainly compatible with sustained recovery, but the experience of 1936-37 shows that too sudden a rise
brings its own retribution. This would
seem to indicate that it is not the producSupply and Prices on the
International Raw-Material Markets (1929=ioo>.
160
150
N
/
UQ
/
130
/
110
100
90
^Stoc ks
130
120
f
1929-WO
\2
Production
31
90
\
70
\
60
50
V*
40
<LLIn J M L L • InLIu
^ J929
110
100
\
80
1
140
""'
v\
/
120
150
Prices " • » / *
A
/
>\
\
% K-
/
nl.rli.li,
80
70
60
50
iLl..lu
1930 1931 Mlolnin
1932 1933 1934 1935 1936 1937 1938
) Index of the German Institute for Business Research — twelve monthis 1
moving average.
2) 12 commodities, generally excluding stocks held by consumers.
3) League of Nations index of world primary production.
*) 20 foodstuffs and industrial raw materials, based on the average of 51
currencies.
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
tion of raw materials which dominates the
trade cycle, but the consumption of raw materials in industries producing investment
and consumption goods. As the production
of consumption goods shows a relatively
great stability throughout the trade cycle
the main cause of the changes in the absorption of raw materials must lie in fluctuations
in the production of investment goods.
Changes in cost and price structure by which
these fluctuations are largely governed are
influenced by the abundance or depletion of
raw-material stocks in so far as they lead to
a rise or fall in costs; and this influence is
apparently predominant and overrules influences from superabundant or depleted stocks
as deterrents or stimulants to production.
The part played by visible raw-material
stocks would seem to be that of a reservoir
taking up surplus output and supplementing
current needs as the case may be. Organization of raw-material production by so-called
restriction schemes may seek to prevent the
continuation of unremunerative production,
but they do not contain any element of stimulation. And they must be so administered as
not to impair the normal function of visible
stocks, which is to serve as a brake on a too
rapid increase in the costs of the manufacturing industries when recovery sets in.
When in the autumn of 1938 the demand
for raw materials strengthened, there was a
certain tendency to increase quotas of production and export of internationally controlled
commodities, but a reaction set in in the following winter, the restrictions being again
tightened up when prices showed every sign
of remaining at their comparatively low
levels.
Visible stocks of primary products, as a
rule, increased somewhat during 1938 but
are in most cases not higher than at the end
of 1935 when a general recovery was well
on its way. Government reserves for emergency purposes, though not published, are
known to be higher than ever before, but
stocks in the hands of manufacturers (as
distinct from visible stocks) are probably
comparatively low since the general tendency
seems to have been to buy mainly for fairly
immediate needs.
PRODUCTION AND MOVEMENTS OF GOLD
757
37 million ounces, equal to $1,290,000,000.
The main recipient of gold was again the
United States whose reserves increased by
$1,750,000,000—over 35 per cent more than
the total current gold production. In the
autumn of 1938 when most of this gold was
shipped to New York it served as a vehicle
for violent transfers of banking funds, the
spectacular nature of which might easily obscure the more profound effects of changes
in currents of trade and investment. As a
matter of fact, over one-half of the gold acquisitions of the United States during 1938
may be associated with the country's large
export surplus and less than half with a net
influx of capital. Capital movements—and
notably the transfer of nervous funds—assumed greater importance, however, in the
first four months of 1939, being caused increasingly by fear of war, which has brought
institutions and individuals alike to increase
their liquidity, especially in dollars. Larger
holdings of gold abroad by central banks is
another manifestation of the same preoccupation, gold earmarked with the Federal Reserve System increasing by $333,000,000 in
1938.
A net loss of gold was sustained by the
British Exchange Equalization Account,
which probably parted with something like
£200,000,000 during 1938, mostly for export
to the United States, a part, however, returning to France, especially in the closing
months of the year. The strain exerted on
the London market brought the gold price on
November 26, 1938 to the high record of
150 shillings and the turnover for the year
at the daily official fixings to £208,000,000,
compared with £123,000,000 in the previous
year. Hoarding of gold showed opposite
tendencies during different periods of 1938,
but the net result would seem to have been
an increase of $100,000,000 to $200,000,000
in the aggregate of gold hoarded. In the
opening months of 1939, however, substantial amounts moved out of hoards, mainly
into dollars.
The writing-up of central bank gold reserves to rates more in conformity with the
current price of gold has continued, the revaluation of the Bank of England's holding
being particularly notable. By the end of
March 1939 about 90 per cent of the world's
monetary gold stock had been thus revalued.
Gold production in 1938 rose both abso1. T H E SUPPLY OF GOLD
lutely and relatively more than in 1937. The
increase over the previous year was 5.6 per
The continued increase in the annual gold
cent, the quantity produced being nearly production can be seen from the table.
758
FEDERAL RESERVE BULLETIN
South
Africa
Year
U. S.
Other
S. R.i U. S.A.2 Canada producing
countries
World
Production 3
Millions
ofdollars4
In thousands of fine ounces
1930.__
1931.__
1932.._
1933.__
1934...
1935-__
1936..1937-__
1938.--
10, 716
10,878
11, 559
11,014
10, 480
10, 774
11,336
11, 735
12,161
1,501
1,656
1,938
2,700
3,858
4,500
5,280
5,000
5,000
2,286
2,396
2,449
2,537
2,916
3,619
4,296
4,753
5,008
2,102
2,694
3,044
2,949
2, 972
3,285
3,748
4, 096
4,716
4,318
4,702
5,264
6,326
6,950
7,376
8,338
9,304
9,969
20, 923
22, 326
24, 254
25, 526
27,176
29, 554
32, 998
34, 888
36, 854
732
781
849
893
951
1,034
1,155
1,221
1,290
1
No official statistics for IT. S. S. R. are available, but percentage
changes are given irregularly. Present figures are estimates.
23 Including Philippines.
Figures partly revised.
* Amounts are given in dollars of present day value of $35 per ounce of
fine gold.
The receipts of gold from Eastern countries, which were of great importance for a
number of years, reaching a maximum of
$378,000,000 in 1932, fell to $68,000,000 in
1937 and to $57,000,000 in 1938.
It is more difficult than ever to estimate
the amounts of gold absorbed by the arts and
industry. An increased tendency to acquire
gold for ornaments was noticeable in 1937
with the rise in prosperity, but gold continued to return in undiminished quantities—
in the form of scrap, coins, etc.—so that net
industrial consumption was slight and, for
the world as a whole, was probably less than
the amount of gold obtained from Eastern
hoards.
In these circumstances the amount of gold
available for monetary use in 1938 may be estimated at about $1,300,000,000, i. e., slightly
more than the annual production of $1,290,000,000.
2. MOVEMENTS OF GOLD TO AND FROM MONETARY
AUTHORITIES AND PRIVATE HOARDS
It is not difficult to account for the disposal
of the $1,300,000,000 of gold available for
monetary use, since the reported gold reserves of banks of issue rose by $1,750,000,000 during 1938. This figure includes those
gold holdings shown as such in the central
bank returns and practically all the gold in
the U. S. Exchange Stabilization Fund, but
generally excludes gold held under other
items and omits the U. S. S. R. and Spain,
about which sufficient information is not
available. Unreported reserves are in particular those of the British Exchange Equalization Account (the gold holdings of which
have been published at six-month intervals
during 1937 and 1938) and the French, Dutch
SEPTEMBER 1939
and Swiss exchange funds, the gold holdings
of which have not been published.
The difference of $450,000,000 between
the amount of gold produced and the increase
in the reported reserves represents a reduction in the non-reported gold, i. e., in the aggregate of the amounts absorbed by the exchange funds or by private hoards in the
western world. Information published regarding the British Exchange Equalization
Account is summarized in the following
table.
British Exchange
Equalization Account
1937—March 31
September 30
1938—March 31
September 30
Decrease from March 31, 1938 to September
30, 1938
In millions
of pounds
In millions sterling
at
of fine 140 shillings
ounces
per fine
ounce
26.7
39.9
42.5
21.7
186.7
279.0
297.8
151.8
146.0
As the price of gold was rising between
March and September 1938 the Exchange
Account lost just about £150,000,000 during
the six months. Further losses were incurred during the last quarter (which led to a
transfer of gold to the Account from the
Bank of England early in 1939), and private
estimates have placed the net reduction of
the British gold holdings during 1938 at
about £200,000,000, at the current gold price,
or say $900,000,000. Thus the British losses
amounted to roughly double the $450,000,000
which were transferred from unreported to
reported holdings; it is therefore necessary
to account for the further $450,000,000
which did not find its way to the reported
reserves.
There is reason to believe that the aggregate gold holdings of the French, Dutch and
Swiss exchange funds increased on balance
during the year. The repatriation of funds
to France during the last two months of 1938
increased the gold holdings of the exchange
fund to a figure higher than at the end of
1937. The Swiss fund, the nominal amount
of which remains unchanged at Sw. fcs.
538.6,000,000, would seem to have held more
in gold and less in balances at the end of 1938
than a year earlier. The Dutch fund is reported to have increased its gold holdings at
certain periods of the year by means of advances obtained from the Nederlandsche
Bank, but resales of gold from the fund took
place particularly from the end of February
1939. On the year 1938 alone, however, there
can be little doubt that the total gold holding
rose on balance. In that way the greater
part of the $450,000,000 may be accounted
for as having been absorbed into the unreported holdings of various exchange funds.
Even if account be taken of reductions in
other unreported gold holdings of monetary
authorities, the amount by which private
hoards increased during the year could
hardly have been higher than one or two
hundred million dollars.
Some indications of the recent fluctuations
in gold hoarding may be gathered from
changes in the gold held in the United Kingdom outside the reserves of the Bank of England and the Exchange Equalization Account. In the following table the figures are
given in pounds at 140s. per fine ounce (to
eliminate fluctuations in the gold price) :
1938
1937
In millions of pounds sterling
at 140s. per fine ounce
Sept. 30
Mar. 31
Sept. 30
Mar. 31
187
517
279
538
298
538
152
538
.__
704
817
836
690
Less Bank of England's gold reserve at January 1, 1932
200
200
200
200
Increase in reserves from January 1, 1932
504
617
636
490
Exchange Equalization Account,
Bank of E n g l a n d .
Total r e s e r v e s . . .
759
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
._
Gold Held under Earmark by Federal Reserve Banks
for Foreign Account, in million dollars.
a
1931
1932 1933 1934 1935 1936 1937 1938
1939
ling holdings into gold and that gold was also
shipped to London for safe custody. The
holding of gold by monetary authorities in a
foreign center is largely for convenience in
the settlement of foreign payments; in the
event of war, shipments of gold may prove
not only risky but extremely difficult to arrange with any promptitude. In this connection it is of interest to note the increased
earmarking of gold with the Federal Reserve
System, the figures of which are published
monthly and shown in the graph.
CAPITAL MOVEMENTS AND INTERNATIONAL
INDEBTEDNESS
The year 1938 was one of abrupt changes
in capital movements between the main creditor countries. The outflow of funds from
Gold held outside the reserves of
321 the United States, which began in the autumn
189
169
240
the Bank and the Account
of 1937, continued in the first half of 1938,
In its comments on the balance of pay- and in the ten months up to July amounted
ments for 1938 the Board of Trade Journal to nearly $1,000,000,000. This movement, essays that ''the considerable excess of net im- sentially of "hot money/' was mainly caused
ports during the past few years, over and by fears of currency complications in the
above stocks held by the Exchange Equaliza- United States in view of the severity of the
tion Account and the addition to the holding business recession. Then, in the summer of
of the Bank of England, is accounted for by 1938, came the improvement on the New York
gold transferred to London for safe custody Stock Exchange, a growing apprehension
or bought in the London market and held for with regard to the exchange value of sterling
account of overseas banks and individuals." and, a little later, the increase of political
A further complication arises from the fact tension in Europe. With the acute phase of
that the British monetary authorities may the crisis in September there set in a violent
hold part of their own reserves earmarked movement of capital from Europe which in
with foreign central banks. Even so, the two months brought $600,000,000 to the
increase from March to September 1938 of United States. At no other time has such
over £130,000,000 in the gold held outside the an abrupt reversal occurred. Theflowconreserves of the Bank and the Account is of tinued at a slackened rate in November and
interest, for it may be concluded that during December, to regain intensity in the early
those months, and especially in September, part of 1939. The spectre of war, besides
foreign banks and individuals—to a consid- provoking these massive movements of funds
erable extent, central banks—converted ster- between nations, has even led to a certain
Net import of gold to U. K. since
January 1, 1932
744
786
825
811
760
FEDERAL RESERVE BULLETIN
flight of capital internally in some countries,
investment declining in those frontier and
other districts which it is feared may be the
site of future battlefields.
But spectacular transfers of nervous money
from one market to another must not be
allowed to obscure the continuous working
of economic forces beneath the surface.
Changes in currents of trade, in relative
prices, in foreign investments and in the
distribution of newly-mined gold have their
effect on the transfer of funds and bring into
the picture important factors resulting from
changing monetary and economic conditions
in the countries of the world.
To obtain a balanced idea of the true character of the capital movement towards the
United States it is necessary to take a broad
view over the past few years. Throughout
1935 and 1936 the net movement of recorded
capital towards the United States continued
fairly evenly, with some accentuation at
times, at a rate of slightly over $100,000,000
a month; the influx was accelerated in the
first nine months of 1937, the monthly average rising to nearly $150,000,000. The oneway flow then received its first real check
for over three years and was reversed by the
repatriations in the ten months to July 1938,
the efflux declining, however, from $170,000,000 a month in the last quarter of 1937
to $60,000,000 a month in the first seven
months of 1938.
Then came an abrupt reversal of the trend:
the flow back to the United States from
$70,000,000 in August 1938 rose sharply to
$390,000,000 in September, thence declining
slowly to $220,000,000 in October and rapidly
to $110,000,000 in November and December
together. The movements in September and
October 1938 were predominantly of banking funds and had an obvious connection
with political conditions in Europe. In these
two months gold movements towards the
United States were at the unprecedented
rate of over $500,000,000 a month—twice as
high as at the most acute phase of the gold
"scare" in the spring of 1937.
From the beginning of 1934, when the
new value of the dollar was fixed, to the end
of 1938 the capital flow to the United States
amounted in all to $4,200,000,000 and comprised three main classes of funds:
(i) More than one-third, i.e., some
$1,500,000,000, represents American funds
repatriated from abroad; of these funds
nearly $900,000,000 were long-term and
SEPTEMBER 1939
accounted for by sinking-fund operations,
redemptions and repurchases by foreigners, and over $600,000,000 were shortterm, inter alia balances accumulated in
England in 1933 when the dollar was depreciating and amounts derived from the
liquidation of accounts in Germany.
American Investment Abroad and
Foreign Investment in United States
exclusive of short-term balances and direct investments.
Cumulated from end of 1925, in million dollars.
•\r\r\ft
-
2500
2500
can Ir vestr lent broa
\
2000
i
1500
2000
i
i
i
\
)
i
i
1000
—»
— —
Forei n Investme ntin J.S.A-
i
i
i
t
J
1500
A
1000
7
500
500
/
/
1926
1928
o L~——
a RIM*
Q
1930
1932
193^
1936
1938
(ii) Rather less than one-third, nearly
$1,200,000,000, is due to foreign buying
of American securities. Foreign acquisitions of American securities during the
past ten years were made in two great
waves, nearly $1,000,000,000 in the two
years 1928-29 and over $1,000,000,000
from the middle of 1935 to early 1937,
Experience after the stock market declines of September 1929 and March 1937
indicates that while foreigners considered
as a whole bought American securities
during the bull markets they did not sell
on balance during the subsequent declines
in prices. On the other hand, American
investment abroad reached its highest
point in 1930 and has since continuously
declined.
Foreign investment in American securities and the liquidation of American
investments abroad are thus two comparatively stable elements—together they
account for $2,700,000,000 nearly twothirds, of the total influx of capital to the
United States since 1934.
(iii) The final factor in the capital
movement since 1934 has been the building-up of balances by foreigners in the
United States, which accounted for $1,500,000,000, a little more than one-third.
Most of these balances are on demand de-
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
posit with American banks, which at the
end of 1938 had foreign deposits amounting to $2,000,000,000. Total foreign deposits, as high as $3,000,000,000 at the
end of 1929, fell rapidly during the following years (their decline representing in a
large degree the liquidation of the gold
761
conditions abroad become more stable."
Though this conclusion must be somewhat
modified by the heavy inflow in the first
four months of 1939, it serves as a reminder
against an exaggeration of the quantitative
importance of "hot money" compared with
the movement of other funds.
A form of capital flight which has inForeign Short-term Banking Funds in United States
creased
in volume is the purchase of Ameriin million dollars.
can bank notes in Europe. Imports of U. S.
currency into Europe practically ceased with
the devaluation of the gold bloc and in 1937
and the first eight months of 1938 over
$50,000,000 were dehoarded in Europe and
shipped back to the United States. But in
September and October 1938 the European
demand for dollar notes reached unusually
high proportions and large imports from the
United States were necessary. This movement continued in the early months of 1939
when it was estimated that a total of around
$500,000,000 in dollar notes were held
abroad.
,, . 1930
1931
1932
1933
193*
1935 • 1936
1937
1938
From 1930 to 1934' the graph is based on figures collected by the Federal
The export of capital to the United States
Reserve Bank of New York, with Indication of the total for the country from the
annual statistics of the U.S. Department of Commerce. For 1935 and onwards
owing to monetary uncertainties in Eurothe weekly figures published by the U. S. Treasury are taken.
pean countries was a factor of particular
exchange standard) to the very low figure importance early in 1935 before the devaluof $500,000,000 in 1933-34. As the dollar ation of the Belgian franc and, later, up to
depreciated foreign balances were drawn the devaluation of the gold-bloc currencies
down to the absolute minimum compatible in September 1936. From this date capital
with current business requirements at the has returned more or less continuously to
Switzerland and Holland. The particularly
bottom of the depression.
strong current in 1937 dwindled, however,
How much of the $1,500,000,000 of foreign in the first half of 1938 and dried up in the
balances accumulated from January 1934 to last half of the year. The cessation of a
the end of 1938 should be considered as net influx to these two countries from the
"floating" money cannot be determined with middle of 1938 is partly due to a counterprecision. Some accumulation was certainly current of foreign-security purchases, made
necessary for ordinary business require- more attractive by the great number of
ments, particularly after the de facto stabi- introductions to the stock exchanges of
lization of the dollar. These business Amsterdam and Zurich. Early in 1939 an
balances cannot be reduced beyond a certain outward flow of capital occurred, closely conminimum, but there can be little doubt that nected with international political developthe bulk of the foreign short-term funds ments. Neither Holland nor Switzerland
which arrived at particular periods of acute was greatly affected by the repatriation of
tension, as, for example, in September and French capital during the year, which for
October 1938, was not needed for business Belgium in May 1938 was a factor of great
purposes and constitutes an unstable element importance.
in the foreign exchange market.
Indeed, France experienced in the winter
The FEDERAL RESERVE BULLETIN for Feb- of 1938-39, for the first time in several
ruary 1939, from which the essential elements years, a sustained home-coming of national
of these paragraphs have been taken, indi- funds previously exported. Recoveries after
cates that "an analysis of the capital move- September 1936 and in October 1937 were
ment itself suggests that while this movement short-lived and eventually reversed. From
has been caused to an important degree by early May 1938, however, when the franc
disturbed conditions abroad only a limited was lowered to just within 179 to the pound,
amount now represents nervous foreign confidence in the stability of the exchange
money ready to leave this country as soon as returned and an influx of capital generally
eJ ul
762
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
estimated at some Fr. fcs 16,000,000,000 to currencies of the agricultural countries were
18,000,000,000 occurred. The greater part already affected and that the Australian and
of this capital was lost again in the summer New Zealand pounds, for example, depremonths, but in September, during the height iated before the end of 1929. But it is
of the international crisis, French funds seldom realized that these countries and
were not exported, and from October on- others defended their currencies largely by
wards, particularly after the inauguration selling sterling. In the last nine months of
of the financial and other reforms early in 1929 Australian London funds were drawn
November, there has been a further tide of down by over £30,000,000; Indian official
French capital towards France estimated at sterling reserves fell by £40,000,000 from the
Fr. fcs 16,000,000,000 to 20,000,000,000 dur- end of 1929 to 1931; New Zealand's sterling
ing the winter 1938-39.
funds, previously perhaps £10,000,000 or
The bulk of French repatriations of capital more, were practically exhausted; the Nain May and since the autumn of 1938 came tional Bank of Egypt's sterling holding was
from England and included gold and notes reduced from £30,000,000 early in 1929 to
hoarded as well as balances with British £15,000,000 in 1931. Moreover, considerable
banks and sterling securities. London, in fresh sterling resources were being supplied
fact, has been subject to three distinct out- to these countries through new loans on the
flows of funds in addition to the usual and London money and capital markets and,
not inconsiderable commercial credit adjust- though in part these loans were offset by
ments which are made when a currency de- amounts obtained from regular sinking-fund
clines for a prolonged period. Firstly, there and other repayments of overseas issues,
was the outflow to France, which has just there was a substantial addition to the visible
been mentioned. Secondly, London was the reduction in sterling balances, increasing the
most important source of funds exported to strain imposed on the sterling exchange. So
the United States (nearly $200,000,000 in long as the United States was lending freely
September and October 1938 alone), although abroad, the effects of this drain were to
in this connection the function of London as some extent covered up—but American fora conduit pipe for foreign funds is always eign loans stopped dead in 1931.
a factor to be remembered. The third outflow—more important than is usually realCertain Holdings of Sterling Assets.
ized—was due to the employment by sterlingQuarterly figures in £ millions.
area countries of part of the funds they had
previously accumulated in London to meet
current deficits in their balances of payments. In the period up to the middle of
1937 sterling received support from the
active balances of payments of sterling-area
countries which built up reserves largely in
the form of balances and other short-term
assets in London. But, as the reserve center
of this area largely producing primary commodities, London must be prepared to see
the sterling reserves constituted in the good
years utilized at times when the prices of
primary commodities fall and the balance;
of payments of the producing countries become passive.
The sterling area is not, of course, a new
phenomenon as a trading area, although
during the gold-standard period its existence
as a currency area was obscured by universal
stability on gold. But a strain on sterling,
similar to the present one and rarely appreciated in its full significance, occurred
The re-establishment of sterling-area balfrom the outbreak of the agricultural crisi
in 1928 onwards. It is generally known ances started in the autumn of 1931, and by
that before the fall of sterling in 1931 the the spring of 1934 these sterling reserves had
SEPTEMBER 1939
increased by over £200,000,000—some £50,000,000 each for Australia and India, £20,000,000 each for New Zealand and South
Africa, and so on. The United States is now
liquidating its foreign investments. And
some sterling-area countries which in the
earlier period had gold reserves to fall back
upon, such as Australia and New Zealand,
have practically disposed of them and now
rely entirely on their sterling balances as
international reserves. From the middle of
1937 to the end of 1938 the net sterling funds
of the sterling-area countries shown in the
graph fell by some £100,000,000—India lost
over £30,000,000, New Zealand £20,000,000,
and Irish banks £10,000,000; Australian London funds probably fell £15,000,000, while
the banking funds of the Scandinavian countries were drawn down by an amount which
may be estimated at £20,000,000-£25,000,000.
If other sterling-area countries not included
in the graph be added, such as Portugal, the
Argentine, Japan, etc., it is certain that the
drain on this account was fully £120,000,000
over the eighteen months. In contrast to the
period 1928-29 new loans to sterling-area
countries have played but a minor part, such
loans as have been given being generally
offset by regular sinking-fund and other repayments.
The primary cause of the decline in these
sterling reserves was the worsening of the
balances of payments of sterling-area countries with other countries than the United
Kingdom. It should, however, be remembered that for the British market there was
some compensatory gain arising from the
fact that the fall in commodity prices, which
caused the difficulties of the primary producing countries, allowed British imports of
foodstuffs and raw materials to be obtained
more cheaply—according to the Board of
Trade the average value of British imports
was 6 per cent less in 1938 than in 1937.
To some extent the reduction of sterling
assets was also due to the conversion of reserves into dollars and gold, e. g., the gold
holding of the Sveriges Riksbank increased
by about £15,000,000 in 1938, £2,000,000
were bought by the Irish Currency Commission and £3,000,000 by the Norges Bank.
In so far as these countries have a surplus
in their balance of payments it is natural
that they should acquire part of the current
gold production, but the concentration of the
purchases at periods of strain on the gold
market, when the price of gold was exceptionally high, may be taken as striking evi-
763
FEDERAL RESERVE BULLETIN
dence of the preference for gold at times of
acute unrest.
The actual incidence of capital movements
on the exchange markets may be modified by
swap transactions, the relative importance
of which is often difficult to assess. The previous graph shows the excess of sterling assets over sterling liabilities of Canadian and
United States banks. For the Canadian
banks this is a fairly small and comparatively
stable item which arises from the fact that
Canadian banks have branches in countries
linked to sterling whose excess of deposits is
employed in London. The excess of United
States banks' sterling assets over liabilities,
or vice versa, arises, however, essentially
from swap operations. In the absence of
any material change in market rates in London and New York, these balances tend to
move with changes in the forward dollarsterling rate. When there was a discount on
the forward dollar at the end of 1934 the
amount of American swap money in London
was very large. The excess of American
banks' sterling assets over sterling liabilities
(covered forward) was about £40,000,000.
Early in 1935 this swap money disappeared
from London and, indeed, in the middle of
1937 American banks had excess sterling
liabilities of about £10,000,000. The decline
of the premium on the forward dollar in London to below Y2 per cent in the middle of 1938
caused a fairly considerable movement of
American swap money to London. In June,
July and August 1938 the sterling assets of
American banks in excess of their sterling
liabilities was around £10,000,000, while
their net contracts for forward sales of sterling rose above £15,000,000. With some
English banks offering 1 or 1 ^ per cent on
certain amounts of foreign deposits the net
yield, taking into account the loss on the f orThree months Forward Premium on Dollar in London.
Weekly averages, in percentage per annum.
2.50
i
2.25
2 25
2,00
1.75
1.75
i
1.50
/
1 50
1.25
1.25
1.00
1.00
/
075
\
0.50
0.50
0 25
0.25
0
2.50
A.I...
.1/
V
f
2.00
0.75
j
i i i i i i i i t i i
1937
II
hll
1 1
1938
hi
i i i i i
1939
0
764
FEDERAL RESERVE BULLETIN
ward rate equivalent to % or V2 P e r cent, was
about % per cent, i. e., far higher than could
be obtained on three-months' investments in
New York. With the abrupt rise of the premium on the forward dollar in September
1938 such transactions became unprofitable
and swap money was withdrawn as the contracts became due; by the end of the year
American banks had excess sterling liabilities of £8,000,000.
Other swap money in London was at times
of greater importance than American. The
premium on sterling in Paris has moved
sharply in recent years, reflecting changing
views as to the future of the French franc
rather than differential interest levels. In
May 1938, after the spot rate of the franc
had been allowed to fall to 179, the contraction of the forward premium on sterling in
Paris was accompanied by a reduction of
French swap money in London. In July and
August, however, the forward franc weakened and French swap money returned to
London; but in the middle of August these
transactions were officially discouraged and,
in the absence of a demand for forward
francs by French banks, the discount widened
sufficiently to be attractive to large firms
with liquid resources. At certain times of
the year French swap money in London
amounted to £30,000,000 or more. Belgian
swap money in London has also been imporThree months Forward Premium on Sterling in Paris.
Weekly averages, in percentage per annum.
22
.-1
H A-..;;.„
20
i
18
16
20
-
18
16
A- - \
14
14
12
10
8
6
12
A Y\j\'W'/M\
V
8
6
/
A
2
n
10
i.
i , ,
i i 11 i
1937
V
1 1111I1
1938
4
2
Q
1939
tant at times and changes in market rates in
Brussels, particularly the call-money rate,
are strongly influenced by the discount on
forward belgas and the amount which can
be earned in London on banking funds.
SEPTEMBER 1939
Swap transactions undertaken in response
to the development of differential interest
rates may be generally considered a stabilizing factor in the exchange markets, but in
1938 the effect of the movements of foreign
swap money in London was largely to postpone pressure on sterling from the summer
to the autumn, that is, to the time when the
strain for other reasons was at its greatest.
From September to the end of the year the
three-months' forward discount on sterling
vis-a-vis the dollar fluctuated between one
and two per cent per annum, i.e., sufficient
to be attractive to English banking funds,
even with market rates in New York down
to zero.
It has already been remarked how business balances in New York were reduced
during 1933 when the dollar was depreciating—and have since been reconstituted. A
transfer from London of trade balances of
a somewhat similar nature occurred in 1938.
To some extent this type of transfer takes
place through commercial channels, i.e., the
proceeds of British exports in foreign currencies are left abroad while imports are
increased and paid cash or in advance. In
other countries, where it has been possible
to make estimates, it has been found that
this commercial factor is of greater importance than is usually imagined, amounting
roughly to the equivalent of a half of one
month's turnover of foreign trade. This relationship would give an amount of, say,
£50,000,000 for England. This figure may
appear on the high side but account must
be taken of the growing importance of international corporations with large liquid
resources which may be shifted from market
to market.
Moreover, a large part of the world's trade,
in addition to that in which England is involved as a partner, is conducted in sterling.
When sterling declines for a prolonged period
exporters from foreign countries are naturally disinclined to make invoices in sterling, and there is evidence that in these
countries, and even in countries of the
sterling area itself, foreign trade contracts
have been expressed less often than usual
in sterling but rather in the home currency
of the exporter. This fact has greater
significance than at first appears for, immediately the change in invoicing is made,
sterling balances accumulated in readiness
to meet maturing trade contracts are released
and may be exported—or when utilized are
not reconstituted as they otherwise would be.
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
Foreign exporters have sometimes used another technique, giving, as usual, credit in
sterling, but obtaining immediate banking
advances in sterling, the proceeds of which
were converted into dollars or gold, the advance being later redeemed from the importer's payment.
All in all, if the period from the middle of
1937 to the end of 1938 be taken, the decline
of sterling-area reserves and of business balances in London must have caused a profound
strain on sterling, although transfers of funds
from and to New York and Paris at times
dominated the exchange markets.
A year ago it was possible to say that trade
financing in the sterling and dollar areas was
back to normal proportions and conditions.
The setback in the value of world trade naturally brought with it a decline in the amount
of necessary finance. In addition, terms of
credit have tended to be shorter, so that the
total volume of trade financing outstanding
has fallen more sharply than trade itself.
American exporters to Europe have considerably shortened the usual terms of credit, insisting in many cases on cash payments—a
factor which has enhanced the effect of the
export surplus of the United States.
The field of new short-term credits, other
than those directly connected with foreign
trade, has remained restricted. As in recent
years, new money for long-term foreign issues
was almost negligible in amount in 1938 and
for the principal creditor markets was exceeded by repayments and repatriations of old
loans by the debtors. While new long-term
issues on foreign account remain on the same
low plane as in recent years, repatriations
and redemptions by the debtor countries have
continued. During the past five years some
$800,000,000 has been utilized for the purchase of foreign securities in the United
States for repatriation or redemption, largely
by such countries as the Argentine, Belgium
and Finland, which borrowed heavily at high
rates of interest in the 'twenties.
THE TREND OF INTEREST RATES
Exceptional liquidity, both institutional
and of private individuals, is the order of the
day, and short-term interest rates generally
remain at extraordinarily low levels or are
still declining. In the United States a negative rate of interest has made its appearance.
The increases of rates in Belgium in the
spring of 1938 and in New Zealand late in the
year are attributable to circumstances pecu-
765
liar to the countries concerned. While longterm rates continued to decline in the United
States and some other countries, the French
market in particular showing a notable downward adjustment, long-term rates in England have risen steadily for four years from
about 2% per cent in 1935 to just above 3V2
per cent at the present time, and the spread
between short and long-term rates has grown
wider. With one or two exceptions, international movements of funds have had little influence on interest rates. The business recession and political disturbances arresting the
flow of private capital into new enterprise
tended further to depress rates to low levels.
Capital markets are dominated more and
more by government borrowing for armament purposes.
Though actual movements of rates have
been slight during the year, many highly interesting developments have occurred, bringing to light tendencies of profound significance for the credit structure of the various
countries.
1. CENTRAL BANK CREDIT AND SHORT-TERM
INTEREST RATES
As in 1937 when the cumulation of business activity to boom conditions was not reflected in changes of bank rate, so in 1938
international political crises left rates still at
very low levels. Nineteen of the twenty-five
central banks had discount rates unchanged
during the year, while five banks decreased
their rates and there was only one increase
on balance.
The one European official discount rate
which was higher on balance was that of
the National Bank of Belgium, which in May
1938 made an energetic defense of its currency against the violent outflow of funds
from the country after the abrupt depreciation of the French franc to 179 to the pound.
The various measures taken included the
doubling of bank rate from 2 to 4 per cent
and the application of a program, in cooperation with the important credit banks
of the country, designed to prevent any extension of credit not justified by commercial
needs, as business activity was declining and
prices falling.
The defense thus adopted resolves itself
into the observance of two fundamental principles :
(i) to give out gold against cash (currency) without restriction, but
(ii) to make cash scarce, i. e., make it
difficult and expensive for anyone who does
766
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
not hold cash to obtain it. This involves an
London Market
increase of bank rate and a restrictive credit
Short-term Investments Available.
Yearly averages in, millions sterling.
policy—or at least strong resistance to an
1200
expansion of credit dictated by speculative
motives.
100.0
Within a few days after the adoption of
1000
these measures the attack on the currency
faded away, in ten days the credit measures
800
800
were relaxed and twenty days after the original increase bank rate was reduced from 4
: z z z z :C5mmerciaT Bills of Exchahge=z=z=z :
600
600
to 3 per cent, so that any slight inconvenience
which might have been caused to ordinary
kOQ
business could have been only of a temporary
^00
character. Further decrease of bank rate
was postponed by the repercussions of the 200
200
international political events of the summer
and autumn, but a reduction of 2 ^ per cent
was made in October 1938. On April 17,
1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 °
1939, however, bank rate was again increased
Averages of Treasury bills outstanding issued by tender for the fiscal years
ended 31st March are plotted at the end of the previous September;
to 4 per cent.
the figures of home and foreign-drawn commercial bills outstanding
Conditions on the London money market
are calculated from stamp-duty receipts according to the method used
by Messrs Jessel, Toynbee <& Co. and reproduced in the London
were practically unaffected by the large out"Economist"; the clearing banks' loans to the stock exchange are from
the Macmillan Report and are available only to 1931.
flow of funds and the business depression.
These factors, indeed, offset each other someThe volume of "tender" Treasury bills,
what as falling prices and the liquidation of
stocks released funds for other employment, which gives a rough idea of the bills availwhile the exodus of capital withdrew money able for non-official investors, has fluctuated
largely employed at short term. An impor- around £500,000,000 during the ten years in
tant factor in preventing disturbances on spite of the issue of bills to the market to
the money market was, of course, the well- finance the holding of gold by the Exchange
known mechanism of the Exchange Equaliza- Equalization Account. There has thus been
tion Account which, with a minimum of fric- a reduction in the amount of bills outstandtion, restored the amount of cash required ing for the needs of the Treasury, a reduction
by the banks. The offsetting operations of due to deliberate policy aiming at keeping the
the Account help to explain why there was floating debt within certain limits. Consolicomparatively little change in short-term dation loans have been issued from time to
money rates, but the reason why they re- time and the proceeds from long-term govmained so persistently low in London (as in ernment issues for other purposes have been
some other centers) is to be found in the applied in the first instance to reduction of
abundance of liquid funds at a time of little the floating debt (expanded again later as
demand for accommodation from business the money was utilized). The usual expangenerally. Bank rate has stood at 2 per cent sion of tender bills over the autumn and winfor nearly seven years, while the discount ter (due to the seasonal movement of the
on Treasury bills has varied from y% per budget deficit) did not take place for 1938-39,
cent only for short periods—and a level as but there was a steep decline from £585,"high" as this has been maintained only by 000,000 in June 1938 to £350,000,000 in
March 1939—the lowest point since the war.
co-operation in the market.
In the London money market the available This contraction was due in the first place to
material for short-term investment has de-the issue of a government long-term loan for
clined considerably during the past ten years. £80,000,000 in June 1938 and later to the
Banking funds may be utilized for financing great efflux of gold, the holding of which had
gold movements and in swaps, but the essen- previously been financed with Treasury bills.
The decline in commercial bills outstandtial material for short-term investment consists of bills—bills of exchange financing ing is primarily associated with a long-term
home and foreign trade and bills financing change in methods of financing, direct credthe Treasury's requirements. The decline in its having largely taken the place of bills
the volume of this material is illustrated in while commercial and industrial firms finance
themselves from their own resources in a
the graph.
1200
=
= = z z =
B.R.I. 322.
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
much larger degree than formerly. Before
1914 the volume of commercial bills outstanding was roughly double the present figure,
which includes, incidentally, some £40,000,000 bills frozen under standstill agreements.
Loans to the stock exchange formed only a
very small proportion of the assets of the
clearing banks in the 'twenties, and the total
outstanding is doubtless much less at the
present time than it was ten years ago. Total
credit facilities granted to the stock exchange
and directly by the banks to private persons
for the purpose of holding securities are not
known and must, of course, be much greater
than the loans from the clearing banks to
brokers and dealers.
The shrinkage of available material for
short-term investment coincides with a
growth in demand. The total deposits of
the original ten clearing banks, which in addition to the 10 per cent cash maintain generally some 20 per cent of short-term assets,
have grown from £1,843,000,000 in December 1928 to £2,172,000,000 in December 1938.
If the theoretical 20 per cent were rigidly
applied, these deposits would now need a
backing of some £430,000,000 bills held directly or indirectly (through loans to the
discount market). The suggestion has been
made that in order to facilitate the mechanics
of the banking system and the money market
the Treasury-bill issue should be increased.
But the danger of a large government floating
debt especially at times of political tension
is so great that the wisdom of making such
an increase, unnecessary as regards Treasury
financing, is to be doubted. It has already
been necessary to restrict the circulation of
municipal bills, which tended to grow beyond
what was desirable. At a time when it has
been found necessary to modify many of the
traditional customs of the central bank itself
in order to keep abreast of realities, it is
natural that the clearing banks should have
applied the ratios to which they are accustomed to work with that degree of adaptability and elasticity necessary to ensure the
smooth working of the banking system in
modern conditions.
In the discount market itself the supply
of bills has been supplemented by the holding
of "shorts", i. e., bonds maturing within a
few years. This is not a new practice and
was current even before 1914, but it has
been greatly extended in recent years. That
this involves certain dangers was exemplified in September 1938 when "outside"
money was scarce and the bonds themselves
767
fell sharply on the stock exchange. In present circumstances the disappearance of
smaller firms from the market has been an
unavoidable process. That the larger companies have been able to maintain a satisfactory earning power even in the adverse conditions of recent years is disclosed by their
published accounts.
The New York money market in 1938 presents a picture of unprecedented monetary
ease due to the combination of a rapid accumulation of funds and a reduction of normal outlets. The excess reserves of all member banks were increased by $760,000,000
through the cut in reserve requirements made
in April 1938. Secondly, the continued recession of business activity in the first half
of the year, falling prices and the liquidation of inventories were accompanied by a
reduction in the banks' commercial loans
which continued until August. The influence
of the vigorous upturn of business activity
in the second half and of seasonal cropfinancing movements was almost wholly offset by the continued repayment of old loans,
confirming experience of the past that business concerns themselves, after a recession,
are usually in possession of sufficient funds
to finance the first stages of expansion.
Thirdly, imports of nearly $2,000,000,000
gold increased both deposits and reserves of
member banks, except for $500,000,000 added
to the unused "free" gold of the Treasury.
Concurrent with this great increase in the
supply of funds there was an appreciable
decrease in the paper available for shortterm investment. As in any money market
material for such investment is confined to
three main classes: short-term paper issued
by the government or other public bodies,
bills for the financing of domestic and foreign
trade, and short-term loans to the stock exchange. In the late 'twenties loans to the
stock exchange comprised the greater part
of the New York money market, but these
loans have fallen to roughly one-tenth of the
former volume, which was then, indeed, far
greater than was desirable. Bankers' acceptances and other commercial paper (shown
together as "commercial paper" in the next
graph), although they expanded slightly in
the boom of 1937, have at present roughly
one-quarter the volume of ten years ago.
And, as in other centers, changes in methods
of financing trade, particularly the replacement of bills by direct credits, seem to reveal a long-term trend unfavorable to this
type of paper.
768
FEDERAL RESERVE BULLETIN
Thus the money market of New York, as
indeed money markets all over the world,
has come to rely more and more on the short
(and medium) term issues of the government.
New York Market
Short-term Investments Available.
End-of-year figures in million dollars.
1927 1928 1929 1930 1931 1932 1933 193^ 1935 1936 1937 1938
Although this graph has been drawn up
on similar lines to that given for London,
some warning against too close a comparison
is necessary. The figures for loans to the
stock exchange are comprehensive for New
York but not for London, while the inclusion
of U. S. Treasury notes with one year or
less to run (in addition to three-months'
Treasury bills) has no counterpart in the
English graph. As the London market has
held "shorts", so Treasury notes with longer
than one year to run have been held in New
York. (Total notes outstanding amounted
to $8,500,000,000 at the end of 1938, including those with one year or less to run.)
The reduction in the volume of Treasury
notes and bills in 1938 was due partly to
continued conversion to longer-dated maturities and partly to repayments from desterilized gold, the latter operation having the
double effect of increasing the member banks'
cash and reducing the outlet. The result of
SEPTEMBEK 1939
these influences was a further sharp reduction of interest rates, already abnormally low,
and a further piling-up of idle balances.
The reduction of interest rates, particularly
those at very short term, continued until,
near the end of December, the yield on
Treasury bills disappeared completely and
the extraordinary phenomenon of a negative
rate of interest made its appearance, not
only for bills already on the market but
even for new issues; in other words, the
Treasury had no interest to pay on its borrowing but received a premium on the issue.
The chief reason for this, other than "window-dressing" by the banks, was the demand
for short-term tax-exempt securities to reduce
tax liabilities on State tax dates. Further,
market quotations of Treasury notes were
distorted by the value of prospective "rights"
given by maturing notes in connection with
subscriptions to new issues of government
securities. Thus certain notes rose to one
or two per cent above the price which would
have been equivalent to a no-yield basis.
This one or two per cent premium was considered the value of the "rights" to obtain
a hundred per cent allotment of the bonds or
notes offered in exchange at maturity.
The new plan of financing government expenditure in Germany announced by the
President of the Reichsbank in March 1938
aimed at curtailing the expansion of centralbank credit and at the covering of government needs from current revenues and savings received through the issue of government loans. Some elasticity was given to
this system through the possibility of part
payment on contracts by a limited issue of
delivery bills of six months' maturity, not,
however, rediscountable as were the old "special" bills, the issue of which ceased after
March 1938. As the special bills, of sixmonths' maturity, fell due for payment (by
the latest in September 1938) they came back
through the banking system to the Reichsbank, which took over the responsibility of
administering such bills as had not been liquidated and of gradually funding them during
the next few years in the form of long-term
loans. Some of the special bills were replaced
by "block bills", a form of consolidation, but
the volume treated in this way has not been
published. In the meantime the new delivery
bills were issued from April 1938 onwards at
the rate of about RM 500,000,000 a month,
so that at the end of the six months to October
RM 3,000,000,000 were outstanding, of which
SEPTEMBER
FEDERAL RESERVE BULLETIN
RM 2,000,000,000 had been taken up by the
monthly-reporting banks as shown by their
returns.
Under a new finance plan announced in
March 1939 no more delivery bills are to be
issued after April 1939, but from May 2, 1939
onwards payments will be made partly in
cash and partly in tax certificates. This applies in the first place to contractors working
for the government, the States, municipalities and associations of municipalities, the
government railways and roadways and the
postal administration; additions to this list
may be made by the Finance Minister. Sixty
per cent is to be paid in cash and forty per
cent equally in two types of tax certificates.
These certificates enjoy a limited legal tender
in that they may be given by the recipients in
payment up to 40 per cent to sub-contractors
or suppliers working directly or indirectly on
government contracts. The first class of certificates may be used at their nominal value
for payment of taxes after six months but
may, alternatively, be held as an investment
for longer than their six-months' term, in
which case they carry certain privileges regarding future taxation payments. The second class of certificates may be presented in
payment of taxes only after three years at
112 per cent but may, in the meantime, be
utilized as collateral for bank (including
Reichsbank) loans. As the financing possibilities offered by the tax certificates are to
be made available to the Reich alone, the
States, municipalities and public bodies mentioned above must purchase from the Reich
with cash the tax certificates they issue. At
the same time it was announced that, in order
to leave the resources of the capital market
available for increased private financing,
long-term Reich loans would in future be
issued only exceptionally.
The increases made during recent years in
official discount rates are exceptional and
cheap money remains the general rule on the
various markets. With certain exceptions
the same tendency is found in long-term interest rates, despite the growing demand by
governments to finance increased armaments
and other exceptional expenditure. By the
fact that commercial banks in a number of
countries hold large amounts of government
bonds and also tend to increase their advances against mortgages, a closer link is
being established between the money and capital markets.
769
2. CAPITAL MARKETS AND LONG-TERM INTEREST
RATES
Nowhere have government borrowing and
spending assumed greater proportions than
in the United States where a considerable
budget deficit has been running since 1930.
The resultant of the budget deficit and the
movements of extra-budgetary funds is the
cash deficit (or surplus) of the Treasury to
be covered by securities issued to the market
or by fluctuations in the General Fund. The
cash deficit practically disappeared from the
third quarter of 1937 to the first quarter of
1938, in fact, in the twelve months to March
1938 the Treasury's cash needs were wholly
covered by cash income.
The Treasury's policy of placing the debt
upon a long-term basis was continued in 1938.
In spite of the increase of the total, under 40
per cent of the publicly-offered debt now matures in less than five years (against 60 per
cent and over, a year or two ago), while 15
per cent matures after fifteen years. Also
there is no large amount of issues maturing
or callable in any single year as was previously the case. This improvement in distribution has been accompanied by a reduction in the average interest on the debt from
about 3% per cent in 1930 to 3 per cent in
1934 and 2V£ per cent at the present time,
reflecting the substantial decline in the general level of interest rates during this period.
The decline in long-term interest rates has
not, however, had the stimulating effect on
private capital issues that might perhaps have
been hoped for and expected. Total issues of
new capital for American corporations, some
$500,000,000 per annum in the late 'twenties, fell below $200,000,000 in 1933-34 and,
after rising to $1,200,000,000 in each of the
years 1936 and 1937, declined again to $850,000,000 in 1938. The apparent suspension of
theflowof new capital into private enterprise
is one of the most striking phenomena of the
past few years. It is true that borrowers
often attempt to make issues directly by private treaty, circumventing the regular issue
market and thus avoiding the expenses of
public issue and the control of the Securities
and Exchange Commission. Moreover, the
commercial banks are empowered to make
time loans of from five to ten years. But even
taking into account the increasing importance of these factors in recent years, there
can be little doubt that the productive utilization of new capital by private enterprise is
only a fraction of what it was a decade ago.
770
FEDERAL RESERVE BULLETIN
The accompanying graph shows the increase in the yield of British Consols during
the last four years, the flat yield and a yield
calculated to allow for deduction of income
tax at the standard rate.
SEPTEMBER
1939
cently taken place, and a number of important companies have increased the interest
paid on tax-free deposits or "shares" from
3 to 3!/2 per cent, while in some cases the
limits on individual holdings have been
raised. The building societies are, however,
gradually reaching a point where they will
Long-term Government Bond Yields
in percentages.
need no new money, as the increased volume
of repayments of old loans approaches the
volume of new loans made. This question
raises the problem of an outlet for the savings
3.50
3.50
British 2'A percent ConsolsA"^
previously
absorbed by the expansion of the
_
building industry. Increased government
loans may, of course, in present abnormal cir33cumstances
be a most important factor. But
•
^
USTreasury Bonds
it is not inappropriate to mention here the
role of investment trusts, especially of "unit
2.50
2.50
trusts", which have grown in importance in
'British 2 Vz percent Consols
recent years. From the beginning of the
/
movement some eight years ago the sale of
2
2193^
1935
1936
1937
1938
1939
"units" in seventy odd trusts exceeds £80,000,000. These trusts, which provide for
comparatively small holdings the possibilities
For comparison with the trend of Amer- of "risk-spreading" previously only available
ican rates, the average yield of all U. S. to the large investor, are notable particularly
Treasury bonds with more than twelve years as a method of canalizing small savings into
to run is also given (these bonds having im- equities. The idea, originally American,
portant tax-exemption rights). Comparison might, if developed in the United States, proof the actual yields is difficult and apt to be vide a means of deflecting part of the flow
misleading, but the trends are easily seen. of small savings in that country, which at
Although parallel movements are shown in present goes automatically into government
the autumn of 1935 and early in 1937, these bonds.
were short lived. For four years the longer
The capital markets of the world, almost
trends have been in opposite directions.
without exception, are dominated by governAn interesting sidelight on the differences ment borrowing for armaments and other
of speed with which changes of interest rates economically unproductive purposes. Compenetrate the various parts of the economic parison with the period of high business acsystem is given by two significant changes of tivity ten years ago gives a striking contrast.
rates, in opposite directions, during the year At that time the internal debts of governunder review. While the fall of the yield on ments were falling and the markets active
government securities from 5 per cent in 1931 with the flow of capital into private enterto 2% per cent in January 1935 was taking prise. Now the governments of the world
place, life assurance companies generally are spending over $1,000,000,000 a month
maintained their premiums unchanged for more than their revenue from taxation, while
new business, being aided to some extent by private issues for productive investment have
favorable mortality experience. But the fallen to a fraction of what they were in the
lower interest earned on insurance funds is progressive years 1926-29.
naturally exerting its influence and from Jan- DEVELOPMENTS IN CENTRAL AND COMMERuary 1939 (four years after the decline in inCIAL BANKING
terest rates had ceased and was reversed) a
group of leading life assurance offices an- All European central banks felt the effects
nounced increased premiums for new non-of the international political crisis of Sepprofit business, the increase amounting in tember 1938. September brings the conclugeneral to rather less than 5 per cent on the sion of the harvest season and the marketold rates. While insurance companies find ing of crops and, being also the end of the
it necessary to take account of relatively quarter, when rents and many other regular
lower interest rates, building societies are payments are made, this month is normally
already affected by the rise which has re- one of monetary expansion (in some counI I | I 1 | i 1 | 1 1
/
f\
\ /\-\
\
/V*,/v
Bffl-32
1
.adjusted
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
771
tries even greater than in December). In steady adaptation of central-bank technique
1938, superimposed on these normal factors, to changing circumstances. While the funwere the monetary effects of the grave inter- damental principles of central banking have
national political crisis which led to the been little modified by the events of recent
years, the evolution of technique must conagreement of Munich.
These abnormal influences were greater in tinue to keep abreast of realities.
some countries than in others but in the in- The increased liquidity of commercial
ternal credit field may be described as (a) banks which is found in the great majority
an urge for greater liquidity not only by of countries reflects—at least in part—a debanks but by individuals and firms who felt cline in the demand for short-term credits
the need of higher cash holdings which, in by industrial and other enterprises; it natan emergency, might be utilized more easily urally induces the banks to seek opportunithan deposits, and (b) the necessity of ex- ties for new business in other lines of lending
traordinary government expenditure in ex- and investment. In doing so they generally
cess of current revenue at a time when the meet with a keener competition from such
short-term government debt floated uneasily. institutions as savings banks and insurance
These factors naturally resolved themselves companies, which often find difficulty in ininto pressure on the central bank as the vesting the larger amounts at their disposal
lender of last resort in the internal credit from increased savings by people with relamechanism and as source of the currency tively moderate incomes. In fact, the discirculation. The extent of the calls on cen- tinction between the activities of different
tral banks may be appraised from the ex- kinds of financial institutions has become less
ceptional increases of the note circulation clear in recent years. While the commercial
in various countries. These increases tended banks generally hold more government seto be greatest in the smaller countries (40 curities and have thus become more akin in
per cent or more in Hungary, Latvia and type to savings banks and insurance comCzecho-Slovakia), but in Germany there was panies, the latter have increasingly turned to
a rise of 17 and in France of 22 per cent investments in mortgages to supplement the
(against 2 per cent in each case in 1937). In smaller yield on their security holdings. On
the whole the relative importance of commerItaly the increase was of 13 per cent.
The acute phase of the crisis lasted, how- cial banks in the financial structure of many
ever, for only a few days, and in most coun- countries has tended rather to decline. In
tries relief came suddenly at the end of these circumstances a certain relaxation can
September. In October notes flowed back be found in the tendency so noticeable after
to the central banks although, in general, 1929 to restrict the operations of commercial
leaving the circulation at a somewhat higher banks. And in some countries this change in
level than before. The liquidity mechanism attitude is clearly connected with the desire
worked with very few disturbances. Only to stimulate long-term investment generally.
in Czecho-Slovakia was there a partial restriction of the repayment of bank deposits.
CONCLUSION
In France bank rate was raised by V2 per
cent, and in Poland the "legal minimum" The continuously mounting volume of govof the central bank was temporarily broken ernment expenditure for armaments and
through. The mechanism worked with equal other purposes is becoming the predomiefficiency in countries with free and those nating influence in every sphere of economic
with controlled currencies. No bank failures life and raises problems of a fundamental
were reported and no insuperable technical nature which must be faced in all countries
difficulties appear to have arisen in finding whatever their political or economic orientamaterial eligible for borrowing at the cen- tion. Indeed, discussions in government and
tral bank. The stock of notes kept in re- other circles, in countries large or small,
serve by central banks appeared to be suf- show a striking similarity. The same probficient in every case to meet the extraordinary lems are present everywhere: and it depends
on the stage of development whether they
expansion.
The events of September 1938 were a make themselves felt as present difficulties or
severe test of the liquidity mechanism, and as preoccupations about the future.
the fact that this mechanism worked in ab- In the depths of the depression men, money
normal conditions with so few disturbances and machinery were unemployed; the probcan be imputed in part to the continuous lem was to make active use of existing pro-
772
FEDERAL RESERVE BULLETIN
ductive capacity, and, even after the state of
actual depression was overcome, unemployment in many countries remained high and
prosperity was sectional rather than allround. It seemed that not only were governments bound to utilize the available capacity in order to employ labor, but almost unlimited possibilities were at their disposal
for increasing home production. According
to differences in economic position and national temperament attention converged on
extending the home market or producing at
home an increasing part of what was previously obtained from abroad. Moreover,
an ever-increasing proportion of the country's capacity was used for types of production which did not serve directly or indirectly
the needs of the consumer.
It now appears as if the period in which
the countries in the old world have to cope
with the problem of excess capacity is nearing its end; in some countries it has already
been definitely passed. In almost all countries the governments are forced to attach
more importance to foreign trade by the inevitable logic of facts: increased home production, whether it aims at supplying the
home market with more goods or with goods
formerly obtained from abroad, tends to lead
at a given stage to more imports. And production for non-economic purposes has in
this respect a still greater effect. In each
country, therefore, part of the productive
capacity must be reserved for the manufacture of goods for export. The variety of
methods used to further exports illustrates
the prominent place now given everywhere to
questions of foreign trade—a development
which strongly contrasts with the concentration on domestic measures of recovery during
the years 1932 to 1937. An increase in the
SEPTEMBER
1939
volume of international trade should be possible without creating a clash of interests
between different countries, since the need
for more exports is born from increasing
imports. The problem facing all countries
is to find the right relation between production for home needs and for export purposes
and to adapt the latter production to the requirements of the importing countries, which
under the influence of the growth of home
production may have changed greatly from
what they were before. However, as events
show, even the tendency to increased self-sufficiency is not necessarily
inconsistent with
an intensification of w7orld trade.
But the acutest problem which arises in
every country where the limits of productive
capacity come in sight and which remains
the same, whatever the political or economic
structure may be and whatever the financial and economic methods with which the
problem is met, is that a canalization of production from its natural purpose of serving
the needs of the consumer must have an
influence on the general standard of living.
It must lead to a reduction of that standard
as soon as the needs of non-economic production (including production of those exports required to cover the increase of imports necessitated by non-economic production) can no longer be fulfilled by a net increase of economic activity. Whether this
effect is reached by the price-raising influence of inflationary financing or by the
absorption of purchasing power through
taxation or government borrowing is, of
course, by no means irrelevant. The psychological and social effects are very different. But the influence on the standard
of living in all cases must inevitably be
adverse.
SEPTEMBER 1939
FEDERAL RESERVE BULLETIN
773
ANNUAL REPORT OF THE GERMAN REICHSBANK
The Annual Report of the German Reichs- the existing agencies and mobilizing new
bank for the year ending December 31, 1938, ones, by rationalizing methods and means of
was submitted on June 30,1939, to the general production, and by taking other measures.
meeting of the shareholders by the President More than in previous years it became eviof the Bank, Dr. Walther Funk. The main dent that Germany, by the intensity of its
text of the report is given in translation economy, occupies a special position as compared with the other leading industrial counbelow.1
During the entire year under review Ger- tries which, despite increased armaments,
many was under the influence of world his- suffered from considerable fluctuations. Fortorical events. The struggle of our Fuhrer eign trade, which was extended to several
Adolf Hitler for Germany's military and eco- neighboring economies supplementing the
nomic independence and his appeal to the German economic structure, assumed more
German people to prepare for sacrifices led importance than formerly despite the efforts
to an overwhelming success in the peaceful to build up the bases for domestic raw materealization of the concept of a Greater Ger- rials. Foreign trade played an important
many. Due to the increase in population, part in supplying raw materials. Due to the
space for living, and economic potentialities volume and constant steadiness of demand
arising from the realignment of Europe, the for these raw materials and in spite of politiThird Reich has gained a new and broader cal tension and keen competition in world
basis for the fulfillment of the tasks devolv- markets, which caused a decrease in German
ing upon it in consequence of its position exports and resulted in a negative merchandise balance, the German economy was doubtin Central Europe.
The course of economic events in the year less enabled to give considerable support to
1938 was, of course, decisively influenced by world trade which on the whole had abanpolitical developments. The economy, which doned hope for stimulation from within.
has developed more and more into an effective
With this enormous expenditure of ecotool of the Government, was faced with an nomic and military strength by the German
abundance of special tasks which in impor- people the task of regulating financial matters
tance and scope far surpassed those of pre- was of special importance. Without being
vious years. Military needs and the continua- disturbed by fluctuations of foreign currention of the Four-Year Plan, together with cies and by manifestations of outflow of capithe demands arising from current activities, tal, which repeatedly left their imprint on the
called for extraordinary efforts on every international monetary situation, the Govhand.
ernment of the Reich and the Reichsbank,
Immediately after the political annexation with all the elasticity ojf individual measures,
of the districts of the Ostmark and the Sude- held fast to their principles of monetary politenland which, because of their industrial cies recognized as right and appropriate.
character, had in part suffered from serious Because stabilization of the currency remains
unemployment, they were incorporated into further an indispensable condition for the
the huge work program of the German econ- stability of the economic life sought by the
omy, but, naturally, they have not yet been Government, and since the usual means emable to reach the same level of employment ployed by the bank of issue necessarily could
as the old Reich. In the latter, production, not suffice to stem the undesirable effects of
turnover, and especially investment activities credit expansion carried on within the last
were accelerated and expanded far beyond few years, supplementary measures, espethe volume of the previous year. Coupled cially in the field of wage and price superwith this was an increase in national income vision, continued to be of considerable imand a growth in savings which, together portance.
with the higher revenue from taxation, served
Credit policy.—Deliberations with regard
to satisfy the undiminished financial needs to credit policy led to the announcement in
of the Reich.
last year's general meeting of the Reichsbank
It became increasingly urgent to broaden that beginning April 1, 1938, no further spethe scope of German economy by regrouping cial bills (Sonderwechsel) were to be issued
The report, available in German, contains in addition tables for financing expenses of the Reich not covand charts showing the operations of the bank in detail. For ered by current revenues.
Public expendiearlier reports, see BULLETIN for May 1938, 1937, 1936, 1935, April
tures were met by current revenue and also
1934, May 1933, April 1932, etc.
1
774
FEDERAL RESERVE BULLETIN
by the issue of a new type of promissory
note, the so-called delivery certificates (Liefer ungsschatzanweisungen) with a term of
six months, to be redeemed at maturity out of
current revenues or by borrowing. When in
the course of the year—as mentioned before
—unforeseen tasks of great magnitude were
added to the already existing ones, it seemed
expedient to adjust the manner of financing
to these changed requirements. For this reason a New Finance Plan was decided upon
during the year 1939 which, in accordance
with the law of March 20, 1939, for the financing of the national requirements (Reichsgesetzblatt I, p. 561) and the appurtenant
administrative regulations of April 26, 1939
(Reichsgesetzblatt I, p. 829), provides for
anticipation of future tax revenues of the
Reich by means of new tax certificates.
The delivery certificates (Lieferungsschatzanweisungen) introduced during the year
under review were put into circulation at
once and in this manner found their way
mostly to the banks which, in case of necessity, had the privilege of borrowing from the
Reichsbank against these securities, but
could not discount them at the Reichsbank.
The special bills (Sonderwechsel) which, as
an instrument of preliminary financing, for a
long time had occupied a special place among
the investment securities on the money market, therefore were no longer available to the
money market in their original form. However, provision was made so that available
funds awaiting investment at banks and
other institutions could be drawn upon for
the unloading of the block of renewable paper
deposited with the Reichsbank. This renewable paper, until it could be repaid according
to schedule out of the Reich's own resources,
formed a considerable part of the entire volume of short-term credits. Because of abundant opportunities for investment the sale of
the usual non-interest-bearing Treasury bills
for account of the Reich came at times to an
almost complete stop during the first half of
1938. Sales increased only in August when
a new short-term series was issued, the maturity of which was timed with that of the
delivery certificates. A lively and undiminished demand existed almost during the entire year for private as well as for Treasury
bills. During the second half of the year
only a fraction of the authorized maximum
of RM 400,000,000 of the Treasury bills was
used by the Reich. Being an especially liquid
investment, the promissory notes (Solawechsel) of the Gold Discount Bank were again
SEPTEMBER
1939
greatly preferred. Their circulation in November reached the highest level with RM
1,807,000,000.
Money market.—The German money market on the whole could be described as liquid.
Even though considerable assets of the money
market were tied up temporarily through the
change in the methods of financing and
through the various Reich loan issues, the
success of the great conversion loans and the
increasing deposits in the banking institutions proved that on the whole the economic
system showed no scarcity of liquid funds.
Except for certain monetary measures of a
preparatory character, international political
tension had no serious influence on the German money and credit situation. The liquidity of the money market was reflected in the
low interest rates. During the year under
review the private discount rate remained
unchanged at the level of 2% per cent established in the middle of April 1937, and it was
subsequently reduced by Vg per cent to 2%
per cent at the beginning of May 1939. The
average monthly rate for call money was almost throughout below 3 per cent and in the
second half of the year sometimes only a
little above 2 ^ per cent; the yearly average
for this rate at 2.79 per cent corresponded to
that of the previous year.
The investments of the Reichsbank in bills,
securities, and Lombard loans increased in
the course of the year under review by RM
2,559,000,000 to RM 9,143,000,000. Correspondingly, there was an increase in note circulation by RM 2,730,000,000 to RM 8,223,000,000. The entire circulation of means of
payment increased by RM 2,910,000,000 to
RM 10,388,000,000 together with a corresponding considerable increase in clearings
and transfers. These figures in the sphere of
money and credit reflect the fact that during
the year under review the territory of the
German Reich was considerably enlarged and
that the German people progressed far in the
direction of attaining economic and military
security.
Capital market.—In view of its absorptive
power the capital market during 1938 formed
again an indispensable complement to the
credit system in financing the requirements
of the Reich. Despite political tension the
supply of monetary capital has been growing,
which is gratifying and at the same time is
an expression of confidence of the German
people in their Government. In this manner
the capital market was enabled to fulfill in
increasing measure its chief function, namely,
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
to make funds available for the execution of
the great national-political tasks. Four new
issues of the well-known 4 ^ per cent Treasury bonds of the Reich were released in a total
amount of RM 6,350,000,000. The maturity
of the last three issues was extended to 20
years with the terms of subscription in the
main unchanged. The amount of subscriptions to the loans of the Reich during 1938
reached altogether about RM 8,000,000,000
and thus was larger than the total amount
for the three preceding years. Austria participated in the success of these loans. The
Austrian banks, partly in their capacity as
members and partly in their capacity as subparticipants in the credit consortium of the
Reich, subscribed to and disposed of a part in
proportion to the wealth of the country. The
total amount borrowed for purposes of the
Reich since 1935 amounts to approximately
RM 15,000,000,000.
To satisfy demands for other capital, especially insofar as investments for the execution of the Four-Year-Plan are concerned,
various stocks, industrial bonds, and debentures issued by public and private institutions
were admitted, although the total amounts
thus poured into the market remained far behind the amounts of the Reich loans. Under
the new finance plan future requirements of
the Reich will not be covered by loans and it
will thus become possible for private borrowers to enter the capital market to a
greater extent.
Gold and foreign exchange.—A continu-
ously difficult task was to keep the German
economy supplied with foreign exchange, all
the more since the high level of employment,
the efforts to accumulate adequate supplies,
and the preparation for other purposes continued to make heavy demands on foreign
exchange. In spite of everything a fairly
satisfactory balance was obtained during the
year under review between demand and the
available supply. Though the most important source of foreign exchange—exports—
could not be kept at the same level as in the
previous year because of decreased sales on
world markets, it was nevertheless possible
to increase the volume of imports as compared with the year before. Besides profiting from falling prices of raw materials on
international markets, this was due to a
series of measures designed to increase the
foreign exchange holdings. Excellent crops
during 1938 released for industrial purposes
foreign exchange which otherwise would have
had to be used for foodstuffs. The situation
775
regarding foreign exchange has again emphasized the importance of exports for the
German economy and with it the necessity
for continuation of the efforts made in maintaining and enlarging markets. The Reichsbank, either directly or through the German
Gold Discount Bank, has supported vigorously the efforts to facilitate the tasks of exporters and to increase an exchange of merchandise with foreign countries by various
measures designed to ease the financing of
exports and by safeguarding the exchange
rate.
Under these circumstances the supervision
of foreign exchange, in which the Reichsbank
participates to a considerable extent, assumed
additional importance during 1938. Today
less than ever can Germany afford to abandon
this minutely organized supervision, all the
more since the world situation, the unsolved
problem of debts, and not in the least the
political tension, continue to stand in the way
of clarification of the international currency
situation. The measures taken regarding
foreign exchange extend particularly to a
sharper control of foreign exchange resources
on hand or falling due in the future, to a more
rigid interpretation of the respective regulations, which have gradually become less and
less clear, and to the inclusion of the new
Reich territories in the system of supervision
by the old Reich.
Again a great deal of work devolved upon
the Reichsbank and other monetary institutions with respect to the clearing and transfer
agreements, which once more made up the
greatest part of payments to and from foreign countries. Special tasks arose from the
necessity to extend to the new territories
those agreements which had been arranged
previously between Germany and other countries. It became therefore necessary to make
special arrangements concerning transfer
and clearing agreements with those countries.
Because the available foreign exchange
was not sufficient for the needs of the German people, the already existing restrictions
concerning transfers for the servicing of
the foreign debt had to be kept in force.
Diplomatic efforts to reduce interest rates,
which were partly too high, were successful
in some cases. In order to regulate the defaulted debt of Austria, which heretofore had
serviced its foreign debt under entirely different stipulations, separate arrangements
were made, in which the point of view was
taken, however, that the Anschluss did not
render valid as against the Reich the legal
776
FEDERAL RESERVE BULLETIN
claims of foreign creditors arising from indebtedness incurred by the Austrian Government.
The total amount of the Standstill credits
was further reduced during 1938, chiefly by
payments of Reichsmarks into the Registered
Account, and, according to the statement of
February 28, 1939, amounted to about RM
780,000,000. During May 1939 the German
credit agreement of 1939 was signed which
will run for one year. The outstanding new
idea in this agreement is the effort gradually
to render the Standstill credits less complicated and more flexible in order to pave the
way for a return to> normal and simple credit
relations with foreign countries. Such a step
would also be in the interest of German foreign trade. This idea, among others, is especially emphasized in the newly introduced
supplementary commercial regulations (Rekommerzialisierung) which, within the scope
of foreign trade available for such purposes,
are prepared for those creditors who are
willing to grant credits for a term of three
years to take the place of the owing Standstill
credits. The procedure used in the commercial regulations of the German credit arrangement of 1938 was retained since it had shown
such satisfactory results in the previous year.
On the whole the tested basic ideas of the old
agreements have been carried over. Just as
in the previous year the German Gold Discount Bank, which has become sole debtor for
these credits originally guaranteed by it,
again plans to redeem a part of them. The
situation with regard to foreign exchange,
however, does not even under the new agreement permit redemptions in foreign exchange, so that as heretofore a reduction in
Standstill credits in the main can be effected
only by payment of Reichsmarks into the Registered Account. In the German credit agreement of 1939 have been included the stipulations set forth in special agreements concerning public Standstill credits, the credits
granted to Austria, and the commitments falling under the separate contract with Switzerland. The credit agreement of 1939 for the
first time includes also the respective foreign
credits of debtors in Sudetenland.
Inclusion of new territories in the sphere
of German currency.—The inclusion of new
territories in the German Reich, besides necessitating economic and legal measures for
the transitory and adjustment period, also
made imperative changes in their monetary
standards and made necessary the enforcement in these territories of the many safety
SEPTEMBER
1939
measures taken in the old Reich toward protecting the Reichsmark, the management of
foreign exchange, the control of exports and
of the capital market, as well as the protection of wage and price levels. The Reichsbank, cooperating in these tasks, at all times
aimed to make decisions without delay so that
the economy in the territories taken over
would have clear sailing as soon as possible
and could fall in step with the old Reich. In
reviewing it may be said that unavoidable
difficulties in commercial relations were reduced to a minimum.
The adjustment of the Austrian Schilling
to the Reichsmark was effected by the regulation of March 17, 1938 (Reichsgesetzblatt
I, p. 253), concerning the introduction of the
Reichsmark currency in Austria, which determined the exchange rate of 1 Reichsmark
= 1.50 Schillings. During the transition
period both the Reichsmark and the Austrian
Schilling were considered legal tender. The
regulation issued the same day (Reichsgesetzblatt I, p. 254), concerning the taking over
of the Austrian National Bank, paved the way
for a quick and smooth execution of the shift
in monetary standard. The management of
the National Bank was taken over by the
Reichsbank, which was also charged with the
liquidation of the Austrian note issuing institution for account of the Reich. At the
time of the shift from Austrian currency to
the Reichsmark, a similar shift took place in
credit institutions and in general business
transactions. The executive order of April
23, 1938 (Reichsgesetzblatt I, p. 405) introduced in Austria the German currency law,
the banking law, and several relevant regulations. The note issuing privilege of the
Austrian National Bank was abrogated, its
notes lost their legal status and were called
in, although an extension up to May 15, 1938,
was granted. The shift in the monetary
standard of the Ostmark was completed when
the regulation of May 25,1938 (Reichsgesetzblatt I, p. 601) caused the Austrian gold and
silver coins to be put out of circulation. Special transitory rules were published concerning small coins of base metals.
The regulation of October 10, 1938
(Reichsgesetzblatt I, p. 1393) announced the
introduction of the German monetary standard in the Sudeten territories and fixed the
exchange rate at 1 Koruna = 12 Reichspfennige. The Reichsbank took over the most important branches of the Czecho-Slovak National Bank in the ceded territories, thus obtaining a local base for the exchange of the
SEPTEMBER
1939
FEDERAL RESERVE BULLETIN
foreign coins into German tender. A second
regulation dated October 15, 1938 (Reichsgesetzblatt I, p. 1430), concerning the introduction of the monetary standard in the
Sudeten-German territories, abrogated the
legality of the Czecho-Slovak koruna in the
territories ceded as of October 31, 1938. The
adjustment of the monetary system in the
Sudetenland to that of the Reich was practically completed when in November the extensions granted for the exchange expired.
An exchange bureau was set up to take care
of payments arising from debts between the
inhabitants of the Sudeten-German territories and those in Czecho-Slovakia. These
mutual payments were effected at the newly
established rate.
A decree of March 16, 1939 (Reichsgesetzblatt I, p. 485) ruled that in Bohemia and Moravia, until further notice, the koruna be retained as legal tender together with the
Reichsmark. The regulation of March 21,
1939 (Reichsgesetzblatt I, p. 555) fixed the
exchange value of the two currencies at 1
Koruna = 10 Reichspfennige.
The regulation of March 23, 1939 (Reichsgesetzblatt I, p. 565) fixed the exchange rate
of 1 Lit = 40 Reichspfennige for the Memel
territory.
Law concerning the German Reichsbank.—
In his letter of January 19, 1939, the Fiihrer
asked the Minister of Economics and President of the Reichsbank, Dr. Walther Funk,
to bring the transformation of the bank of
issue, which had begun with the law of February 10, 1937, to a conclusion in conformity
with the national socialist principles. Therefore the law concerning the German Reichsbank was promulgated which once more gives
the Reich the unrestricted sovereignty over
the bank of issue. The German Reichsbank
shall be responsible directly to the Fiihrer,
and decisions of special importance to the
currency system, such as the fixing of the
maximum amount of working credits for the
Reich as well as the determining of the maximum amount of Treasury bills which the
Reichsbank may hold, are made only by the
Fiihrer. In accordance with the national socialist principles concerning closely defined
777
responsibilities, the law gives the President
alone the authority to make decisions. It is
interesting to note that concerning the appointment of employees of the Reichsbank
the representative of the Fiihrer is to be consulted to the same extent as is the case for
the appointment of other Reich employees.
Further regulations of the new law make it
possible for the President to adjust the personnel of the Bank in accordance with the
special needs of the banking business, but on
the other hand, they insure a broad conformity to the general employees and wages law.
In order to insure direct contact between the
German Reichsbank and the leading personalities of German economy and labor, the
new law provides for the organization of an
Advisory Council whose composition and development is put into the hands of the President. The capital stock of the German
Reichsbank is to remain the same as heretofore ; however, shares may be owned only by
German citizens who, on the basis of their
racial origin, fulfill the regulations for acquisition of citizenship, as well as corporate
bodies and enterprises which have their headquarters within the area wherein this law
is valid. Concerning distribution of dividends the law provides that a dividend of
not more than 5 per cent shall be granted in
future and retroactive for the year 1938, and
that any profit over and above that—after
due deductions—shall be turned over to the
Reich. The general meeting shall remain the
representation of the stockholders. It shall
receive the report of the yearly balance and
the report of the Board of Directors, and at
the suggestion of the President, it shall decide on the increase in capital stock. The
regulations concerning the sphere of activity
of the Bank as well as the note coverage are
in agreement with the national-socialist economic concepts in that the stability of the
German currency is not dependent on the
existing amounts of gold and foreign exchange, but on the fact that the money in
circulation shall be in direct ratio to the circulation of consumption and production goods
produced by German labor. The new law became effective on June 16, 1939.
778
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
BALANCE SHEET OF THE GERMAN REICHSBANK AS OF DECEMBER 31, 1938
AND DECEMBER 31, 1937
[In thousands of reichsmarks]
Assets
Gold, not under lien (gold bars, domestic and
foreign coins):
In the cash offices of the bank
With foreign banks of issue
Cash:
Reichsbank notes
Subsidiary coin
Rentenbank notes
Credit balances in foreign currencies (of which
the equivalent of 3,179,000! reichsmarks was
assigned as cover for the notes in circulation)
Foreign notes
Foreign bills and checks
Domestic bills and checks:
Treasury bills of the Reich
Other domestic bills and checks
Silver
Loans against collateral (lombards), viz.:
Loans against gold and silver (sec. 21, 3a,
of the bank law)
Loans against securities (sec. 21, 3b, c, d,
of the bank law)
Loans against bills (sec. 21, 3e, of the
bank law)
Loans against goods (sec. 21, 3f, of the
bank law)
Loans against Treasury bills of the Reich
(sec. 21, 3g, of the bank law)
Securities eligible for note cover
Other securities owned
Overdue and doubtful claims
Land and buildings
Claims resulting from the settlement with the
Reich
Miscellaneous:
Bank notes no longer fit for collection
Postponed claim on the German Government in virtue of sec. 11, 4, of the law of
Aug. 30, 1924, for the liquidation of Rentenbank notes in circulation
Credit balances with postal check offices..
Investments for pension and unemployment fund
-.-.
Reichsmark claims on foreign correspondents
Revolving credit to the Reich
Claims against the Reich for sinking-fund
purchases
Foreign exchange authorized but not yet
delivered
Government debt C taken over from the
former Austrian National Bank
Claim arising from exchange of Czechoslovak Currency
Other claims
1938
60, 201
10, 572
50, 306
20, 334
70, 773
70, 640
i 3,179,000 reichsmarks on Dec. 31, 1937.
1938
1937
Total bank note issue
18, 716, 777
Credit balances of giro and current accounts.. 1, 527, 469
Non-interest-bearing deposits
27
Original capital
150, 000
Legal reserve fund (including transfers from
net profits of the year)
87, 353
Reserve for pension and unemployment fund100, 000
Reserve for probable losses
274, 962
16, 724, 325
1, 058, 501
27
150, 000
21, 250
58, 260
16, 537
52, 349
10, 492, 892 11, 230, 283
116, 453
110,958 Reserves for:
16, 778
7,607
Printing of new notes
New buildings
10, 626,123 11,348,848
83, 286
80, 000
241, 962
79, 510
29, 544
2,336
165, 544
120, 690
7, 959, 062
31
1
21, 282
2,570
166,167
Special reserve fund for future payments of
dividends
Miscellaneous:
Interest on bills due in 1939
118,590
Dividends due but not yet paid
5, 847, 206
Dollar Treasury notes of the Reich to be
9
redeemed by the Reichsbank
Liabilities in foreign currencies
Unpaid claim of the German Government—contra account
1
Other book debts
19, 731
39, 467
5,883
1,979
19, 245
18, 846
1
1
44, 861
60, 294
565, 052
298, 820
1
30, 000
105, 789
297, 991
92, 601
93, 758
1,238
1,126
70, 082
48, 168
70, 082
29, 251
100, 000
78, 892
10, 005
8,111
43,100
Net profits for the year less 10 per cent assigned to the legal reserve
40, 307
40, 289
36, 620
322
43,1282
316
141
9
142
2,175
70, 082
102, 336
70, 082
53, 494
209, 511
169, 338
36, 607
36, 074
21, 222, 524
18, 652, 689
30,000
22, 460
23, 062
183, 455
120, 880
104, 615
306, 746
161,717
1, 217,1
Total assets..
Liabilities
1937
21, 222, 524
115,040
489, 545
18, 652, 689
T o t a l liabilities..
2 Interest on bills due in 1938.
FINANCIAL, INDUSTRIAL, AND COMMERCIAL STATISTICS
UNITED STATES
779
780
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
MEMBER BANK RESERVES, RESERVE BANK CREDIT, AND RELATED ITEMS
[In millions of dollars]
Reserve bank credit outstanding
Date
Bills
Bills
disbought
counted
End of month figures:
1938—June 30____
July 31.___
Aug. 31___.
Sept. 30--.Oct.31
Nov. 30--__
Dec. 31
1939—Jan. 31
Feb. 28
Mar. 31-..Apr. 30
May 31____
June 30
July 31
Wednesday figures:
1938—Sept. 7
Sept. 14
Sept. 21
Sept. 28
Oct.
Oct.
Oct.
Oct.
5
12
19
26
U. S.
Other
GovReserve
ernbank
ment
securi- credit 1
ties
Gold
stock
Total
Treasury
currency
outstanding
Member bank
reserve balances
Money
in circulation
Treasury
cash
holdings
Other
Treasury
Feddeposits
Noneral
with
memFederal ber de- Reserve
acReserve posits
counts
banks
Total
Excess
(estimated)
8
7
7
8
7
7
4
5
4
4
3
4
5
5
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2,564
2,564
2, 564
2,563
2,564
2,564
2,564
2, 574
2,564
2,564
2,571
2,564
2,551
2,488
23
18
14
29
14
13
33
28
30
18
20
4
23
-8
2,596
2,589
2,585
2,600
2,586
2,584
2,601
2,607
2,598
2,587
2,595
2,573
2,579
2,486
12, 963
13,017
13, 136
13,760
14, 065
14,312
14, 512
14, 682
14, 874
15, 258
15, 791
15, 957
16,110
16, 238
2,713
2,721
2,731
2,739
2,751
2,773
2,798
2, 816
2,824
2,839
2,849
2,862
2,881
2,895
6,461
6,452
6,504
6,622
6,700
6,787
6,856
6,653
6,731
6,817
6,905
6,967
7,047
7,049
2,303
2,348
2,480
2,810
2,770
2, 689
2,706
2,776
2,740
2,691
2,6S9
2,636
2,5P3
2,360
860
721
720
853
535
484
923
747
1,148
1,229
931
920
944
752
363
384
313
356
424
574
441
458
488
533
545
586
739
693
261
257
255
260
260
259
260
255
254
257
255
253
258
257
8,024
8,164
8,179
8,198
8,713
8,876
8,724
9, 215
8,936
9,157
9,900
10, 029
10,018
10,507
2,875
3,022
2,941
2,869
3,227
3,383
3,205
3,644
3,387
3,559
4,098
4,218
4,140
4,553
7
7
8
9
1
1
1
1
2,564
2, 564
2,564
2,564
21
25
23
24
2,592
2,596
2, 596
2,597
13, 237
13, 421
13, 588
13,714
2,729
2,733
2,735
2,738
6,579
6, 550
6,552
6,574
2,579
2,759
2,833
2,816
561
346
917
864
317
416
342
337
254
254
261
261
8,269
8,425
8,014
8,197
3,034
3,131
2,744
2,889
7
9
6
7
1
1
1
1
2,564
2,564
2,564
2,564
21
32
17
8
2, 593
2,605
2,589
2,580
13,812
13, 869
14, 008
14,051
2,741
2,744
2,746
2,749
6,640
6,667
6,668
6,654
2,809
2,812
2,770
2,767
770
703
609
584
346
376
342
374
261
260
261
261
8,321
8,400
8,693
8,740
3,019
3,045
3,265
3,275
Nov.
Nov.
Nov.
Nov.
Nov.
2
9
16-___
23___30---_
8
8
7
7
7
1
1
1
1
1
2,564
2,564
2,564
2,564
2,564
9
-3
18
16
13
2, 582
2,569
2,590
2,587
2,584
14,071
14,091
14,162
14, 240
14,312
2,752
2,755
2,756
2,767
2,773
6,706
6,764
6,732
6,763
6,787
2,751
2,737
2,721
2,717
2,689
576
578
544
474
484
426
531
525
563
574
260
259
259
258
259
8,686
8,546
8,727
8,818
8,876
3,217
3,132
3,262
3,353
3,383
Dec.
Dec.
Dec.
Dec.
7
14
21
28-..-
6
7
8
7
1
1
1
1
2,564
2,564
2,564
2,564
20
29
84
39
2,591
2,600
2,656
2,610
14,
14,
14,
14,
367
380
454
508
2,775
2, 784
2,788
2,790
6,844
6,858
6,943
6,912
2,681
2,651
2,677
2,707
407
413
1,025
941
576
551
514
505
258
258
267
265
8,966
9,034
8,472
8,577
3,442
3,476
2,979
3,072
4
5
4
5
1
1
1
1
2,564
2,564
2,564
2,564
35
23
18
14
2,604
2,592
2,588
2,583
14, 565
14, 577
14,615
14, 640
2,800
2,805
2,810
2,812
6,839
6,716
5,666
6, 623
2,725
2,712
2,726
2,754
891
873
800
767
436
459
435
470
258
258
256
256
8,819
8,956
9,130
9,166
3,298
3,436
3,559
3,597
1939—Jan 4
Jan. 11
Jan.18
Jan. 25
Feb.
Feb.
Feb.
Feb.
1
8
15
21
5
7
5
4
1
1
1
1
2,564
2,564
2,564
2,564
13
12
17
23
2,582
2,584
2,587
2,592
14,
14,
14,
14,
694
732
772
818
2,817
2,818
2,819
2,821
6,663
6,673
6,695
6,708
2,770
2,768
2,771
2,752
887
931
1,250
1,181
469
488
500
495
256
255
254
254
9,047
9,018
8,707
8,841
3,478
3,459
3,166
3,298
Mar.
Mar.
Mar.
Mar.
Mar.
1
8
15
22 - .
29...-
4
3
3
3
3
1
1
1
1
1
2,564
2,564
2,564
2,564
2,564
19
-3
27
5
10
2,586
2,565
2,595
2,573
2,578
14, 888
14, 923
14, 983
15, 075
15,160
2,827
2,829
2,832
2,834
2,837
6,739
6, 751
6,751
6,758
6,765
2,716
2,716
2,712
2,743
2,722
1,168
1,102
1,059
1,222
1,201
484
510
552
511
505
253
253
259
258
257
8,942
8,985
9,077
8,989
9,125
3,382
3,407
3,443
3,364
3,519
Apr.
Apr.
Apr.
Apr.
5
12
19
26
3
3
3
3
1
1
1
1
2,564
2,564
2,564
2,564
17
17
23
12
2,584
2,584
2,591
2,580
15,
15,
15,
15,
292
430
605
714
2,838
2,842
2,844
2,849
6,855
6,835
6,858
6,860
2,712
2,707
2,723
2,693
1,103
1,015
951
913
470
515
509
516
257
256
256
256
9,318
9,528
9,743
9,903
3,708
3, 879
3, 998
4,124
May
May
May
May
May
3
10
17-__
24
31
3
4
4
4
4
1
1
1
1
1
2, 564
2,564
2,564
2,564
2,564
4
7
8
8
4
2,572
2,575
2,576
2,576
2,573
15, 801
15, 856
15,892
15, 927
15, 957
2,851
2,854
2,857
2,859
2,862
6,915
6,904
6,913
6,893
6,967
2,691
2,678
2,683
2,646
2,636
936
959
927
915
920
554
521
543
558
586
255
255
255
254
253
9,872
9,967
10,005
10,097
10,029
4,084
4,186
4,244
4,304
4,218
June 14
June 21
June 28
3
3
5
5
1
1
1
1
2,564
2,564
2,564
2,551
8
37
15
10
2,576
2,605
2,584
2,567
15, 987
16,027
16,060
16,093
2,864
2,868
2,873
2,879
6,986
6,936
6,934
6,962
2,571
2,570
2,566
2,559
935
928
941
962
630
714
714
677
253
253
263
263
10, 053
10,101
10,099
10,116
4,279
4,264
4,227
4,243
July
July
July
July
5
12
19
26
5
5
5
5
1
1
1
1
2,551
2,535
2,515
2,488
13
28
17
19
2,569
2,569
2,537
2,512
16,136
16,174
16,191
16, 227
2,880
2,885
2,890
2,893
7,100
7,041
7,022
7,002
2,577
2,552
2,530
2,506
820
791
764
742
678
638
634
690
257
257
257
257
10,151
10, 350
10, 412
10, 436
4,292
4,447
4,485
4,485
Aug. 2
Aug. 9
Aug. 16
5
5
5
1
1
1
2,453
2,443
2,423
18
14
25
2,476
2,462
2,453
16, 248
16, 270
16, 335
2,895
2,897
2,900
7,054
7,070
7,091
2,370
2,354
2,366
863
844
776
662
597
565
257
256
256
10, 413
10, 509
10, 633
4,462
4,533
4,590
June 7
781
FEDERAL RESERVE BULLETIN
SEPTEMBER 1?39
PRINCIPAL ASSETS AND LIABILITIES OF ALL FEDERAL RESERVE BANKS
In thousands of dollars]
End of m o n t h
Wednesday figures
1939
1939
Aug. 16
Aug. 9
Aug. 2
J u l y 26
J u l y 12
J u l y 19
July 5
July
1938
June
July
ASSETS
Gold certificates on hand and due from
U. S. Treasury
Redemption fund—F. R. notes
Other cash .
_ _ __
Total reserves.
._
13, 968, 221 13, 914, 220 13, 869, 222 13, 709, 222 13, 651,218 13,604,719 13, 534, 719 13 869, 218 13, 514, 71. 10 633, 405
9,056
9,101
8, 594
9,101
7,722
8,242
8, 412
8,843
9, 101
8,937
341, 509
351, 410
370, 979
356, 076
350, 484
348, 919
353,161
317, 756
349, 505
406, 282
14, 318 786 14, 271, 733 14, 227, 828 14, 089, 302 14, 015, 016 13, 966,122 13, 860, 887 14 229, 729 13, 874, 046 11 048, 624
Bills discounted:
For member banks
For nonmember banks, etc.
Total bills discounted
Bills bought:
Payable in foreign currencies
Industrial advances
__
U. S. Government securities:
Bonds
Treasury notes
Treasury bills
2 5?7
2 025
2, 893
2, 025
635
2,025
2,671
2,025
2, 572
2,025
3,241
2,025
2, 613
2,025
2, 88C
2,025
2,689
2, 025
7 127
4 552
4, 918
4, 660
4,696
4,597
5, 266
4,638
4,905
4,714
7,127
545
545
545
558
556
556
556
545
556
539
11 615
11,665
11, 746
12, 579
12, 557
12, 496
12, 318
11,869
12, 350
15, 785
911 090
911,090
911 09C
1, 176 109 1, 176, 109 1 176, 109
335 540
366, 220
355, 715
911,090
911,090
911,090
911,090
911,090
911,090
744, 105
1, 176,109 1, 176,109 1, 176, 109 1,176,109 1 176,109 1, 176,109 1 190, 870
401, 020
463, 438
401, 020
427, 930
447, 938
463, 438
629, 040
Total U. S. Government securi2 422 736 2, 442, 914 2 453 418 2, 488, 219 2 515,137 2, 535, 137 2, 550, 637 2 488, 219 2, 550, 637 2 564, 015
ties
13 209
Other Reserve bank credit
.
6 058
5,979
4,196
15,951
554 -19,951
10, 346
1,752
2, 428
Total Reserve bank credit outstanding___
_._
2, 452, 660 2 462 470 2,476 428 2, 512, 031 2 537,043 2, 569, 406 2, 568, 703 2 485, 587 2 578, 603 2 589, 218
LIABILITIES
F . R. notes in actual circulation
4,563 822 4 550, 689 4 530,715
4, 498, 758 4 508, 962 4, 522, 709 4, 543,177 4 530,099 4 511,116 4 135,314
Deposits:
M e m b e r bank—reserve account
10, 633 449 10 509 003 10 412 883 10, 436, 286 10, 412, 047 10, 349, 946 10,151,053 10, 506, 799 10,018, 493 8 164, 160
U. S. Treasurer—general account _844 268
742, 400
775 739
863 462
764, 216
790, 596
820, 208
752, 382
721, 446
944, 078
287, 657
Foreign bank
280 665
307 298
297, 265
311 136
279, 038
289, 485
281, 057
123, 549
359, 596
402, 454
380, 299
284 585
289 237
411, 705
351 180
355,016
348,115
Other deposits
260, 841
379, 007
Total deposits
11, 974 ,438 11 949, 806 11 938 661 11,868,797 11 810,317 11, 778, 142 11,648,825 11 951, 943 11 701, 174 9 269, 996
Ratio of total reserves to deposit and
F . R. note liabilities combined (per
cent)
56. 5
86.6
86. 4
86.1
85.9
85.7
85. 6
86.3
82.4
85.6
MATURITY DISTRIBUTION OF BILLS AND U. S. GOVERNMENT SECURITIES
HELD BY FEDERAL RESERVE BANKS
11 r< r.hnov and*- of i • l i n r -
Within
15 days
16 to 30
days
31 to 60
days
61 to 90
days
4,696
4,660
4,918
4,552
1,483
1,454
1,708
1,431
194
155
218
2,053
1,949
2,250
2,337
447
618
367
331
304
558
545
545
545
134
28
6
47
6
47
120
106
95
107
33
83
323
363
386
309
12, 579
11, 746
11, 665
11,615
1,381
1,297
1,218
1,165
757
59
76
218
259
526
562
553
79, 305
85, 355
83, 790
85,140
83,790
85,140
77, 625
60,625
875
675
163
963
Total
Bills discounted:
July 26
Aug. 2
_ _
Aug. 9
Aug. 16
.
_ __
Bills bought in open market:
July 26
Aug. 2
Aug. 9
Aug. 16
_.
Industrial advances:
July 26
Aug 2
Aug. 9
Aug 16
U. S. Government securities:
July 26
Aug 2
Aug. 9
______
Aug. 16
-
2, 488,
2, 453,
2, 442,
2, 422,
219
419
914
739
139,
127,
111,
105,
91 days 6 m o n t h s 1 year
to 6
to
to
months
1 year
2 years
448
433
324
317
4
1
583
331
371
364
1,798
1,827
1,934
1,804
1,855
2,610
2, 437
2 452
85, 550
68, 050
49,137
63,137
115,176
102, 676
136, 676
123,351
296,
296,
296,
296,
068
068
068
068
2,548
2, 526
2,528
2 538
270,
326,
326,
326,
250
576
575
575
2 years
to
5 years
Over
5 years
3, 398
2 570
2, 539
2 521
587, 860
531, 534
531, 535
531, 535
830,
830,
830,
830,
345
345
345
345
782
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS, BY WEEKS
[In thousands of dollars]
Phila- Clevedelland
phia
New
York
Total
Richmond
MinAtSt.
lanta Chicago Louis neapolis
Kansas
City
Dallas
San
Francisco
ASSETS
Gold certificates on hand and
due from U. S. Treasury:
July 26
Aug. 2
Aug. 9
Aug. 16
Redemption fund—Federal Reserves notes:
July 26
Aug. 2
Aug. 9
Aug. 16
Other cash:
July 26
Aug. 2
Aug. 9
Aug. 16
Total reserves:
July 26
Aug. 2
..
Aug. 9
Aug. 16
Bills discounted:
Secured by U. S. Government obligations, director
fully guaranteed:
July 26
Aug. 2
Aug. 9
Aug. 16
Other bills discounted:
July 26
Aug. 2
Aug. 9
Aug. 16
Total bills discounted:
July 26
Aug. 2
Aug. 9
Aug. 16
Bills bought in open market:
July 26
Aug. 2
Aug. 9
Aug. 16
Industrial advances:
July 26
Aug. 2
Aug. 9
Aug. 16
U. S. Government securities:
Bonds:
July 26
Aug. 2
Aug. 9
Aug. 16
Treasury notes:
July 26
Aug. 2
Aug. 9
Aug. 16
Treasury bills:
July 26
Aug. 2
Aug. 9
Aug. 16
Total U. S. Government securities:
July 26
Aug. 2
Aug. 9
Aug. 16
Total bills and securities:
July 26
Aug. 2
Aug. 9
Aug. 16
Due from foreign banks:
July 26
Aug. 2
Aug. 9
Aug. 16
13,
13,
13,
13,
709,
869,
914,
968,
222
222
220
221
9,101
9,101
8,594
9,056
370, 979
349, 505
348, 919
341, 509
14, 089, 302
14, 227, 828
14, 271, 733
14, 318, 786
1,061
1,073
1,400
1,052
785, 544 6, 605, 679 663, 719860, 505 334, 740 285, 224 2,189, 264 365, 794 249, 277 343, 714 219, 918805,844
794,194 6, 588,427 692, 640 856, 610 343, 686 312, 620 2, 245, 57,
355, 305 253, 803 383, 430 232, 233 810, 699
813,032 6, 536, 417 697, 730 864, 610 350, 717 316, 217 2, 287, 641
367, 940 263, 013 384, 812224, 474 807, 617
798,145 6, 591, 773 706, 500 870, 497 351, 748 301, 6282, 303, 680 366, 873 257, 440 376, 787 224, 836818,314
446
446
403
403
937
937
937
857
580
580
505
505
75:
757
757
1,312
23, 952 101, 543 29, 057
21, 845 92, 237 28, 260
94, 895 28, 229
22, 233 89,
320 28, 354
22, 583
809, 942 6, 708, 969 693.13
816, 485 1,
6,682, 411721, 837
835, 668 6,
>, 896
i, 632,872 726,
821,131 6,682,653 735,711
24, 375
24,188
23,181
24,196
24,807
21, 608
115
115
115
70
3,635
3,587
3,518
3,500
1,747
1,747
1,560
1,560
264
264
227
227
1,126
1,126
1,037
1,037
496
496
474
474
403
403
392
392
681
681
664
664
496
496
496
483
23, 522
21, 733
22, 658 22, 433
20, 220 20, 787
45,188
45,821
43, 663
43, 800
17, 332
17, 403
17, 563
17, 235
10, 299
9,712
9,219
9,727
19, 445
17, 723
18, 446
18,012
16,193
16, 215
15, 365
15, 836
1,168
1,168
1,142
1,142
35, 266
32, 760
31, 034
31, 439
885, 460 360, 304309, 010 2, 235, 578383, 622 259, 979 363, 840 236, 607 842, 278
881, 378 366,051 334, 617 2, 292, 522 373,
i, 204 263, 918 401, 834 248, 944844, 627
888, 296 374,132 338, 877 2, 332, 341385, 977 272, 624 403, 922 240, 335 839, 793
895,198 373, 280 322, 642 2, 348, 517
384, 582 267, 559 395, 463 241,155 850, 895
446
376
341
215
121
305
562
396
165
75
84
954
196
196
196
196
240
254
237
23:
307
307
307
297
126
136
119
124
268
245
245
245
34
6'
82
88
73
60
50
45
45
173
168
166
263
246
285
299
412
417
380
360
615
617
590
592
173
168
166
166
297
246
285
299
479
499
468
433
675
667
635
637
16
16
16
16
16
16
16
16
40
39
39
39
856
852
849
206
205
205
205
565
563
563
552
943
943
942
942
17
27
37
4,660
4,918
4,552
143
144
129
70
1,075
1,214
1,463
1,302
361
271
280
264
263
277
335
335
753
683
146
156
149
154
262
272
282
558
545
545
545
42
41
41
41
218
212
212
212
56
55
55
55
52
51
51
51
24
23
23
23
20
19
19
19
70
69
69
12, 579
11, 746
11,665
11,615
1,708
1,690
1,687
1,732
2,794
2,131
2,063
2,060
2,721
2,708
2,702
2,701
361
363
365
369
1,144
1,145
1,144
1,067
762
758
758
755
474
380
380
380
911, 090
911,090
911,090
911,090
66, 909
66, 959
66, 975
67,003
267,160
266, 076
265, 741
265, 094
91, 264
91, 250
91, 245
91, 237
50,811
51, 045
51,119
51, 259
38, 571
38, 686
38, 721
38, 790
98, 492
98, 582
98, 610
98, 664
41, 879
42, 093
42, 158
42, 284
25, 775
25, 862
25, 889
25, 940
44, 955
45, 185
45, 255
45, 394
34, 652
34, 760
34, 794
34, 859
73, 348
73, 378
73, 387
73, 406
1,176,109
1,176,109
1,176,109
1,176,109
86, 373
86,436
86, 454
86, 494
344, 870
343, 471
343, 042
342, 203
77, 274
77, 214
77,196
77,160
99, 750
99, 674
99, 651
99, 605
117,812
117, 793
117, 788
117, 777
65, 590
65, 895
65. 987
66,170
127,141
127, 258
127, 293
127, 363
54, 063
54, 336
54, 420
54, 585
33, 274
33, 385
33, 419
33, 486
58, 030
58, 328
58, 421
58, 598
44,731
44, 871
44, 914
44,997
94, 683
94, 723
94, 736
94, 758
401, 020
366, 220
355, 715
335, 540
29, 451
26, 915
26,149
24, 676
117, 592
106, 951
103, 753
97, 630
34,012
31,037
30,139
28, 41
49, 792
49, 939
49, 984
50, 073
40,170 22, 364 16, 9:
36, 679 20, 518 15, 550
35, 625 19, 958 15,118
33, 601 18,1
14, 286
43, 352
39. 626
38. 500
36, 336
18. 433
16, 919
16, 460
15, 573
11,345
10,395
10,108
9,553
19, 787
18,163
17, 669
16, 718
15, 252
13, 972
13, 584
12, 838
32, 285
29, 495
28, 652
27,034
2, 488, 219
2, 453, 419
2, 442, 914
2, 422, 739
182, 733
180, 310
179, 578
178,173
729, 622 211,036
716, 498 207, 925
712, 536 206, 986
704, 927 205,182
249, 246 138, 765 105, 340
245, 722 137, 458 104,175
244, 658 137, 064 103, 823
242, 615 136, 307 103,149
268, 985 114, 375
265, 466 113,348
264, 403 113, 038
262, 363 112, 442
70, 394 122, 772
69, 642 121, 676
69, 416 121, 345
68, 979 120, 710
94, 635
93, 603
93, 292
92, 694
200, 316
197, 596
196, 775
195,198
2, 506,052
2, 470, 370
2, 460, 042
2, 439, 451
184, 626
182,185
181, 435
180, 016
733,709 214,174
720. 055 210, 959
716, 274 210, 023
708, 501 208, 202
249, 922 140, 686 106, 268
246, 413 139, 309 105,108
245, 409 138,
'49
243, 370 137, 909 104,,077
269, 797 114, 554
266,177 113, 522
265, 124 113,210
263, 094 112,613
71, 356 123, 291
70, 573 122, 143
70, 358 121,851
69, 928 121,230
95, 695
94, 681
94,339
93, 695
201, 974
199, 245
198,391
196, 816
5
5
5
5
12
13
13
13
165
178
178
178
12
13
13
13
61
67
67
17
18
18
18
15
17
17
17
21
22
22
22
2
2
2
2
2
783
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS,
BY WEEKS—Continued
[In thousands of dollars]
Total
Boston
New
York
Philadelphia
Cleveland
Richmond
lanta
Chicago
St.
Louis
KanSan
sas Dallas FranCity
cisco
Minneapolis
ASSETS—Continued
Federal Reserve notes of other
banks:
22, 866
4,263
1,062
297
1,320 2,783 1,776
July 26
2,818 1,361 1,654
22,130
4,911
897
1,725
26:
948 1,428
Aug. 2
2,689 1,314 1,812
22, 715
4,253
1,207
412
1,001
1,331 1,705
Aug. 9
3,084 1,746 1,123
22, 635
1,607
1,573
4,548
972
1,100
Aug. 16
3,352 1,793 1,218
Uncollected items:
627, 608
61, 348 166,715
43, 848 76, 514 50,172 20,103
July 26
82, 021 25, 326 15,109
648, 826
49, 284 72, 437 49, 730 24, 829
64, 559 167, 640
Aug. 2
92, 510 26, 212 15,199
582, 733
46, 099 62, 889 46, 526 20, 438
56,733 150,967
Aug. 9
81,114 24, 435 15,811
721,814
51, 794 84, 704 58, 085 23, 280
69, 989 200, 539
Aug. 16
98, 705 28, 629 17, 305
Bank premises:
8,942
42, 321
4,625
5,931 2,583 2,051
2,917
July 26
3,908 2,268 1,510
8,926
42, 259
4,625
5,931 2,576 2,051
2,912
Aug. 2
3, i
2,264 i r ~
8,926
42, 259
4,625
5,931 2,576 2,051
2,912
3,899 2,264
Aug. 9
8,926
4,625
5,931 2,576 2,051
2,912
42, 259
3,<
2,264 1,508
Aug. 16
Other assets:
14, 812
4,354
49, 372
3,103
5,459 3,274 2,124
July 26
4,726 1,977 1,439
14, 566
4,330
5,406 3,222 2,130
49,126
3,122
Aug. 2
4,755 2,021 1,450
14, 933
5,486 3,273 2,147
4,382
49,918
3,166
4,806 2,030 1,452
Aug. 9
14,
958
5,548
4,425
50,
450
3,210
3,366
2,240
4,849 2,072 1,467
Aug. 16
Total assets:
245
7,
'
,
637,
471
1,
224,
621
17,
337,
686
062,
961,
793
559,
809
441,
338
July 26
129,110 351,049
17, 460, 717 , 069,543 7', 598, 576 991, 950 1, 213, 307 561,844 470,169 2,662^574 118, 539 354.462
Aug. 2
', 528, 292 993, 044 1, 209, 235 566, 725
17, 429, 578
Aug. 9
"~ 469, 973 2,!, 690, 390.29, 664 362, 878
17, 595, 573 1,077, 5647, 620,1921,005,747 1,236,375 576,324 455, 869 2, 722, 438 531, 955 358,
Aug. 16
1,521
1,802
1,810
2,005
458
415
588
365
3,553
3,922
4, 455
3,809
648
962
586
690
22, 972
21, 863
19, 724
26, 993
32, 832
31, 601
29,411
29,101
3,170
3,157
3,157
3,157
1,233
1,227
1,227
1,227
3,183
3,183
3,183
3,183
2,228
2,237
2,262
2,283
1,816
1,835
1,857
4,060
4,052
4,124
4,172
30,
32,
28,
32,
1, r "
124, 703358, 786
564,140 368, 970
161, 593 358,075
.56, 833 365, 300
, 087, 892
, 086, 643
, 079, 370
. 087, 989
LIABILITIES
Federal Reserve notes in actual circulation:
July 26
Aug. 2
Aug. 9
Aug. 16
Deposits:
Member bank—reserve
account:
July 26
Aug. 2
Aug. 9
Aug. 16
U. S. Treasurer—general
account:
July 26
Aug. 2
Aug. 9
Aug. 16
Foreign bank:
July 26
Aug. 2
Aug. 9
Aug. 16
Other deposits:
July 26
Aug. 2
Aug. 9
Aug. 16
Total deposits:
July 26
Aug. 2
Aug. 9
Aug. 16
Deferred availability items:
July 26
Aug. 2
Aug. 9
Aug. 16
Other liabilities including accrued dividends:
July 26
Aug. 2
Aug. 9
Aug. 16
Total liabilities:
July 26
Aug. 2
Aug. 9
Aug. 16
4, 498, 758
4, 530, 71."
4, 550, 689
4, 563, 822
384, 994 1,122, 212
387, 546 1,131, 894
389, 922 1,128, 559
389, 707 1,136,149
316, 539
317, 662
319, 254
320, 731
422, 030
421, 488
426,2'
425, 169
193, 995
196, 642
201,190
202;
'2, 591
151, 092 997, 647 178, 635 130, 938
152, 868 1, 003, 033179, 828 131, 701
153, 66' 1, 008, 616 1, 710 132,094
153,359 1, 012,134 1,592 132, 374
10, 436, 286
10, 412,
.10, 509, 003
10, 633, 449
5, 666, 391
521,
512, 527 5, 549, 081
516, 889 5,
"i. 588,171
501, 348 5, 733, 768
498, 612
510, 093
518, 562
521, 624
583,032
576,
570, 745
574, 640
248, 901
251,456
259, 969
257, 532
189,
214,
™'
214,
208,
649
"""
219
855
828
1,324,555 252, 918 137,
1. 388,146 243.210 140,
1, 407, 993254, 518 142,
1, 404, 281253, 982 139,
76,147
77,115
77, 239
77, 43'
353, 598
357, 924
360,354
360, 055
!43, 398 187, 593
157. 422 200, 229
!62, 875 194, 782
:60,015 194, 726
582,154
569, 336
577,556
583,190
.70, 931
73,014
.73, 791
.73, 524
085
182
088
515
742, 400
863, 462
844, 268
775, 739
38, 530
53, 836
64, 629
67, 440
173, 438
301,058
254,813
159, 13'
32, 726
39, 562
34, 667
41,950
70, 595
68, 986
76,030
82, 306
38, 355
33, 761
30,906
30, 694
52,015
50,211
50, 709
41, 463
96, 725
54, 670
87, 926
110, 060
46,199
42, 921
44,169
43, 034
44, 272
44, 349
50, 339
48,132
51, 692
70, 819
65, 838
62, 780
49,198
46, 769
42, 314
42, 603
48, 655
56, 520
41, 928
46, 140
287, 65'
311, 136
307, 298
280, 665
20, 741 102, 368
22, 394 111,088
22, 075 110,102
20, 159 100, 578
27, 946
30, 172
29, 742
27, 161
26,793
28,928
28, 515|
26,041
12,388 10, 083
13,375 10, 887
13, 184 10,732
12,041 9,800
34, 860
37, 63'
37, 101
33, 881
8,355
9,021
8,892
8, 12
6,626
7, 154
7,052
6,440
8,355
9,021
8,892
8,120
8,355
9,021
8,892
8,120
402, 454
351,180
289, 237
284, 585
9,877 300, 760
5,301 236, 330
5,531 191, 454
5, 072 192, 56'
14, 704
12, 453
11, 726
11,680
14, 772
37, 125
20, 602
16, 499
5, 184
6, 254
6, 034
5, 624
7, 572
6, 586
5, 819
5, 790
8,56'
8,454
8,434
8,505
1,382
1, 674
1,773
1,
11, 868, 79'
11, 938, 661
11, 949, 806
11, 974, 438
i, 242, 95'
591, 146 6,
594, 058 197, 557
609, 1240, 144, 540
594, 019
' "
6, 186, 050
8,470
7,832
7,
7,758
567, 754
587, 659
590, 837
598,493
20, 787
22, 438
22, 119
20, 203
23, 709
21, 553
21,450
21, 409
621, 794
642, 946
580,483
708, 783
61,915
63, 745
57, 094
69, 632
152, 269
148, 798
135, 007
177, 765
2,420
2,879
2,806
2,948
286
325
325
334
793
1,115
963
1,006
16, 991, 769
17,115,201
17,083, 784
17, 249, 991
44,
54,
50,
53,
82'
052
335
914
288
301
309
329
695,124
687, 349
687, 016
694, 667
74,
71,
63,
83,
652
670
071
700
214
232
24
263
1,5331 5,924
2,078 5,540
1,717 6,831
1, 586 6, 409
656 195,
i, 555312,012 246, 528 675, 305
406 198, 271 345, 716 257, 693 669, 847
613 205,
205,298 346, 039 247, 761 663, 053
761 199, 87' 339, 420 247,135 670, 942
34,129
27, 238 15, 350 31. 506 24,996
26. 723 15, 292 35^ 199 23, 066 34,016
25, 743 16, 275 31, 522 21,958
31, 067
30, 023 17, 538 33, 6' 29, 622 32, 078
301,1 257, 671 1, 470, 912312,
300, 670 280, 858 1, 517, 578301,
1, 553, 622313,
305, 776
301, 853 266, 500 1, 564, 721310,
49, 756
49, 683
44, 869
57,012
19, 833
23, 693
20, 405
23, 240
85, 323
97, 009
83,13:
100,586
112
118
123
127
215
243
259
27'
52
61
63
68
103
107
111
202
188
194{
199
67
82
94
109
1,038, 341 7, 518, 231 929, 408 1,192, 020 544, 958 428, 708 2, 554
c, 097518, 581 341, 931 514,651 347, 737 1,063,099
1,045, 674",7,479, 364 959, 674 1,180, 739 547, 034 457, 536 2, 617
7,863 508, 018 345, 3675 5 4 , 117
• • - 357, 946 1, 061, 869
1,056, 465 \7,409, 069 960, 735 1,176, 627 551, 882 457, 3222, 645, 634519,129 353, 774551,
7,033 1,054, 568
1, 053, 692 '
7,
, 500, 970 973, 467 1,203,799 561, 504 443', 226 2, 677, 715
521, 444 349, 900546, 816 354, 2? 1,063,184
784
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
STATEMENT OF CONDITION OF THE FEDERAL RESERVE BANKS,
BY WEEKS—Continued
[In thousands of dollars]
Total
CAPITAL
Boston
New
York
Philadelphia
Cleveland
Richmond
Min- KanAtSt.
sas Dallas
lanta Chicago Louis neapolis
City
San
Francisco
ACCOUNTS
Capital paid in:
July 26
Aug. 2
Aug. 9
Aug. 16
Surplus (section 7):
July 26
Aug. 2
Aug. 9
Aug. 16
Surplus (section 13b):
July 26
Aug. 2
Aug. 9
Aug. 16
Other capital accounts:
July 26
Aug. 2
Aug. 9
Aug. 16
Total liabilities and capital accounts:
July 26
Aug. 2
Aug. 9
Aug. 16
Contingent liability on bills
purchased for foreign correspondents:
Aug. 16
867
873
878
874
12, 201
12, 118
12, 115
12, 116
13,
13,
13,
13,
734
744
742
740
5,113
5,108
5,115
5,117
4,535
4,550
4,554
4,559
13, 774
13, 806
13, 806
13,804
3,
3,993
3,993
3,997
2,916
2,914
2,914
2,916
4,283
4,285
4,2!
4,292
4,038
4,038
4,041
4,042
10, 568
10, 574
10, 574
10, 615
10, 083
10,083
10,083
10, 083
52, 463
52, 463
52, 463
52, 463
13, 696
13,696
13, 696
13,696
14,
14,
14,
14,
323
323
323
323
4,983
4,983
4,983
4""
5,630
5,630
5,630
5,630
22,
22,
22,
22,
666
666
666
666
4,685
4,
4,685
4,685
3,153
3,153
3,153
3,153
3,613
3,613
3,613
3,613
3,892
3,
3,892
3,892
9,965
9, 965
9,965
9, 965
430
408
428
477
9,408
9,405
9,407
9,405
149,152
149,152
149,152
149,152
135,
135,
135,
135,
50,
50,
50,
50,
27,
27,
27,
27,
264
264
264
264
2,874
2,874
2,874
2,874
7,45'
7,457
7,457
7,457
4,416
4,416
4,416
4,416
1,007
1,007
1,007
1,007
3,293
3,293
3, 293
3,293
713
713
713
713
1,429
1,429
1,429
1, 429
545
545
545
545
1,001
1,001
1,001
1,001
1,142
1,142
1,142
1,142
1,2
1,2
, 266
\121
2,121
2,121
2,121
34,
33,
33,
33,
071
692
950
689
1,539
1,507
1,510
1,510
8,453
8,419
8,425
8,428
2,072
2,046
2, f ' "
2,052
3,537
3,494
3,536
3,506
1,462
1, 42f
1,452
1,427
1,752
1,740
1,754
1,741
6,903
6,810
6,855
6,824
1,306
1,298
1,312
1,284
2,041
2,027
2,036
2,017
1,014
983
1,003
970
,853
,828
,843
1,826
2,139
2,114
2, 142
2,104
1, 062, 245 7,', 637, 471 961, 793
17, 337,
17, 460, 717 1,069, 543
I, 576 991, 950
17, 429, 578 1, 080, 339 7, 528, 292 993, 044
17, 595, 573 1, 077, 564 7,
" 620,192 1, 005, 747
36
1, 224, 621 559, 809 441, 338 2, 598, 869 1,110
529, 351,049 524,703 358,786 1, 087, 892
1, 213, 307 561, 844 470,169 2, 662, 574
518, 539 354, 462 564,140368, 970 1, 086, 643
1, 209, 235 566, 725 469, 973 2, 690, 390
529529^
664664
362362',
878 878
561 593
593
561 358, 0751, 079, 370
1, 236, 375 576, 324 455, 869 2, 722, 438 531, 955 358, 987 833
556;365, 3001,087,989
10
785
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
INDUSTRIAL ADVANCES AND COMMITMENTS UNDER SECTION 13b OF THE FEDERAL
RESERVE ACT, JUNE 19, 1934, TO AUGUST 16, 1939
[Amounts in thousands of dollars]
Applications
received b y
Date (last Wednesday of
each month)
1934—Dec. 26
1935—June 26
Dec. 3 1 i
1936—June 24
Dec 30
1937—Mar. 31
June 30
Sept. 29
Dec. 29
1938—Mar. 30
June 29
Sept. 28
Dec. 28
1939—Jan. 25
Feb. 21 4
M a r . 29
Apr. 26
M a y 31
June 28 _
July 26
Aug. 16 5
.
__
_
..
__.
_.
Applications approved to d a t e b y Federal Reserv e
w i t h o u t conditions)
Federal Reserve
banks after consideration by Industrial Advisory
Committees, net
Applications under
consideration b y
Federal Reserve
banks
Number
Amount
Number
Amount
Number
4,386
6 325
7,437
8,006
8,247
8,344
8,430
8,474
8,534
8,708
8,976
9,102
9,188
9,203
9,221
9, 249
9,270
9,296
9, 308
9, 330
9, 336
146, 972
237, 581
293, 084
314, 471
328, 998
333, 300
339, 509
341, 842
350,551
358, 936
369, 583
378,974
387,490
389,176
389, 554
392, 230
394,055
394, 970
395, 499
399, 780
400, 245
71
68
28
12
5
9
10
1
7
19
8
8
5
8
7
14
2,955
11, 349
2,823
1,880
1,245
1,322
1,263
800
550
1,299
476
146
247
999
964
344
495
400
255
760
75
984
1,646
1,993
2,183
2,280
2, 323
2,361
2,381
2, 406
2,464
2,566
2,617
2,653
2,660
2,671
2,683
2,697
2,713
2,721
2.730
2,734
7
6
5
6
2
Federal
Reserve
bank
advances
outAmount standing1
Total
49, 634
88, 778
124, 493
133,343
139, 829
141, 545
145, 758
146, 724
150, 987
154,918
161,158
168, 380
175,013
175, 651
175, 902
177, 895
178, 639
179,332
179, 778
183, 354
183, 700
banks (with and
Federal
Repaid, FinancReserve Approved expired, ing instibank
or
with- tution
not
commit- but
by particicom- 2 drawn
ments
applipations
pleted
outcant,
outstanding
etc.
standing 3
13, 589
27, 518
32, 493
30, 484
25, 526
23, 059
23, 019
21,415
20, 216
19, 371
18, 444
17, 567
17, 345
16,811
16, 474
15, 798
15, 817
15, 305
15, 255
15, 384
14,617
8,225
20, 579
27, 649
24, 454
20, 959
18,611
16,331
14, 880
12, 780
13,110
13, 649
13,597
14,161
13,004
12, 907
12, 647
11, 749
11, 530
11, 175
11,476
11,261
20, 966
11,248
11, 548
9,381
8,226
7,898
1,470
537
3,369
3,419
3,084
5,737
1,946
1,293
1,105
1,975
2,134
2,496
2,067
733
786
5,558
24, 900
44,025
61, 425
77, 910
85, 210
97, 663
102, 588
107, 384
111, 193
117, 555
122,447
128, 839
132,009
133,001
135,004
136, 696
137, 922
139, 281
142, 943
144, 537
1,296
4 533
8, 778
7,599
7, 208
6,767
7,275
7,304
7, 238
7.825
8,426
9,032
12, 722
12, 534
12,415
12,-171
12, 243
12, 079
12,000
12,818
12, 499
1 Includes industrial advances past due 3 months or more which are not included in industrial advances outstanding in weekly statement of
condition of the Federal Reserve banks.
2 Includes applications approved conditionally by the Federal Reserve banks and under consideration by applicant.
3
Does not include financing institution guaranties of advances and commitments made by Federal Reserve banks, which amounted to
$1,470,200
on August 16, 1939.
4
Tuesday.
5
August 23 and 30 not yet available.
FEDERAL RESERVE NOTES—FEDERAL RESERVE AGENTS' ACCOUNTS, BY WEEKS
[In thousands of dollars]
Total
Federal Reserve notes:
Issued to F. R. bank by F. R. agent:
July 26
Aug. 2
Aug. 9
Aug. 16
Held by Federal Reserve bank:
July 26
Aug. 2
Aug. 9
Aug. 16
In actual circulation: i
July 26
Aug. 2
Aug. 9
Aug. 16
Collateral held by bank as security for
notes issued to bank:
Gold certificates on hand and due
from U. S. Treasury:
July 26
Aug. 2
Aug. 9
Aug. 16
Eligible paper:
July 26
Aug. 2
Aug. 9
Aug. 16
Total collateral:
July 26
Aug. 2
Aug. 9
Aug. 16
Phila- Cleve- Richdelphia land mond
New
York
Boston
Atlanta
Chicago
MinSt.
Louis neapolis
KanSan
sas Dallas FranCity
cisco
191,118 137, 563 182,112
157 1, 228,003 332, 719 440, 538 207,065 162, 974 1, 028, 221
4, 811, 723
562 314 136, i
,364
4, 814, 318 406, 323 1, 226, 446 335, 029 440, 899 206, 222 163, 460 1, 031, 190,
623 210 137,953 183, 759
4, 841, 728407, 049 1, 228, 269 337, 127 442, 460 212, 387 164, 594 1, 037, 193,
191, 951 137, 344 183, 659
4, 847, 304 408, 876 1,224. 996 340, 800 443, 972 213, 314 163,
670670
1 1, 038, 471
18, 508
19,411
16, 167
18, 803
23,163 105, 791 16,180
18, 777 94, 552 17, 367
99, 710 17, 873
17,127
20, 069
19, 169
13, 070
9,580
11,197
10, 723
11,882
10, 592
10, 927
10,311
30, 574
28, 529
29, 007
26, 337
12, 483
10, 486
13, 500
11,359
83, 703 409,), 550
85, 321 410, 445
84, 544 412;I,7 753
84, 042 416,, 209
6,625 11,181
5,232 8,350
5,859 9,\
4,970 10, 135
7,556
8,206
7,305
6,605
193, 995 151,092 997, 647 178, 635 130, 938 170, 931
4, 498, 758 384, 994 1, 122, 212 316, 539 422, 030
317J 662 421, 488 196, 642152, 868 1, 003, 033179,! 131, 701 173, 014
4, 530, 715 387, 546
,190 153, i 1, 008, 616179, 710 132, 094 173, 791
4, 550, 689 389, " 1, 128, 559 319, 254 426, 293 201.
4, 563, 822389, 707 1, 136,149 320, 731425,169 202, 591 153, 359 1, 012,134 180, 592 132, 374 173, 524
76,147
77,115
77, 239
77, 437
4, 927,000 420,000 1, 248,000 345,000 445,000 210,000 169, 0001, 045,000 196,000 143, 500 185,000
4, 928, 500 420, 000 1, 248, 000 345,000 445,000 210,000 169,0001,045,000 196, 000 143, 500 185,000
4, 929, 500420, 000 1, 248,000 345, 000 445, 000 215,000 169,0001, 045,000 196, 000 139, 500 185,000
1, 055, 000 196,000139, 500 185,000
4, 941, 500420, 000 1, 248, 000 345, 000 447, 000 215,000 169, 000
86, 500 434,,000
88,000
, , 0434,
0 0
880
88,000
434, 000
88,000 434,000
312, 965
283, 603
291, 039
283, 482
_
2, 453
1, """
2,251
1,766
.
.
128
129
124
70
4, 929, 453420.128
4, 930, 463420.129
4, 931, 751 420,124
4, 943, 266 420,070
1
>
1
3
1
>
~
~
-
199
338
594
434
•
-
• - «
73
87
146
666
596
561
425
16
16
16
26
353,
357,
360,
360,
598
924
354
055
238
188
226
241
421
530
521
490
492
1, 248,199 345,165 445,073 210, 666 1,000 1, 045,000 196, 017143, 516 185, 238
1, 248, 338 345,075 445,087 210, 596169,000 1, 045,000 196,013 143, 516 185,188
1, 248, 594 345,084 445,146 215, 561169, 000 1,045, 000 196, 010 139, 516 185, 226
1, 248, 434 345, 068 447, 000 215, 425
169, 000 1,055,000 196, 010 139, 526 185, 241
86, 921
88,000
88, 000
88,000
434, 530
434, 521
434,490
434, 492
165
75
1 Includes Federal Reserve notes held b y the United States Treasury or b y a Federal Reserve b a n k other t h a n the issuing bank.
55, 952
52, 521
52, 399
56,154
786
FEDERAL RESERVE BULLETIN
SEPTEMBER
RESERVE POSITION OF MEMBER BANKS,
JUNE, 1939
MEMBER BANK RESERVE BALANCES
BY CLASSES OF BANKS
[Averages of daily figures. In millions of dollars]
[Averages of daily figures. In millions of dollars]
Classes of banks
and districts
Gross Net
dedeTime
mand mand
deposits
dedeposits posits i
Reserves with
Federal Reserve
banks
Required Held
10, 321 4,402
715
486
2,691
543
5, 195 2,504
305
848
1,024
160
1,007
1,277
549
492
896
621
262
638
432
1,676
147
248
730
206
174
569
178
89
158
128
1,943
184
35
189
260
106
95
185
118
50
120
82
390
357
52
346
443
152
118
280
187
79
178
116
519
173
16
157
9,034
4,669
1,814
2,827
1,013
621
945
428
406
319
296
576
231
193
279
327
211
557
1,393
879
663
347
223
716
242
271
156
104
269
167
340
156
131
91
70
184
63
58
66
71
53
65
157
61
49
36
24
79
23
21
25
4,831
5,819
Centralreserve city banks:
12, 510 11,672
New York
2,593 2 279
Chicago
San Francisco district11,881
Total
Country banks:
852
Boston district
1,277
New York district
624
Philadelphia district..
589
Cleveland district
508
Richmond district
483
Atlanta district
859
Chicago district
360
St. Louis district
308
Minneapolis district..
457
Kansas City district..
504
Dallas district
_.
330
San Francisco district
Total
7,151
Ex-
5,919
All member banks._ 34,135 27, 816 11, 690
Reserve city banks:
Boston district
New York district
Philadelphia district._
Cleveland district
Richmond district
Atlanta district
Chicago district
St. Louis district
Minneapolis district..
Kansas City district.__
Dallas district
All
member
banks i
102
183
95
82
56
47
105
40
37
41
44
39
183
46
24
95
69
29
58
34
128
97
14
1,451
581
i Gross demand deposits minus demand balances with domestic banks
(except private banks and American branches of foreign banks) and
cash items in process of collection.
NOTE.—See table at foot of p. 797 for percentages of deposits required
to be held as reserves.
Total reserves held:
June
July
August
September
October
November
December
1939—January
February
March
April
May
June
July
Week ending (Friday):
1939—June 30
July 7
July 14
July 21
July 28
Aug. 4
Aug. 11
Excess reserves:
1938—June
July
August
September
October
November
December
1939—January
February
March
April
May
June
July
Week'ending (Friday):
1939—June 30
July 7
July 14
July 21
July 28
Aug. 4
Aug. 11
Central reserve
city banks
New
York
Chi-
7,878
8,167
8,119
8,196
8,546
8,727
8,745
9,029
8,925
9,021
9,624
9,997
10,085
10, 321
3,341
3,545
3,523
3,669
3,939
4,075
4,139
4,409
4,482
4,472
4,889
5,094
5,049
5,195
899
925
875
861
10, 0C8
10, 304
10, 389
10, 429
10,433
10, 498
Reserve
city
banks
1939
Country
banksi
1,280
1,302
1,319
1,314
1,317
1,338
'., 322
,366
,364
848
2,359
2,396
2,402
2,352
2,409
2,426
2,387
2,474
2,405
2,475
2,544
2,630
2,728
2,827
5,025
5,049
5,161
5,242
5,287
5,229
5,185
912
874
857
833
836
862
924
2, 736
2,751
2,818
2,864
2, 862
2,876
2,899
,395
445
468
450
,443
,469
,490
2,762
3,026
2, 955
2,920
3,143
3,276
3,226
3,484
3,373
3,432
3,926
4,212
4,246
4,402
1,153
1,352
1,320
1,382
1,589
1,712
1,734
1,996
2,047
1,986
2,302
2,465
2,394
2,504
404
424
379
361
375
374
376
260
164
179
299
360
362
305
747
767
762
698
712
710
658
734
669
741
794
858
944
1,013
459
483
495
479
467
480
457
495
494
526
531
529
546
581
4,214
4,259
4,396
4,459
4,468
P4, 464
*>4, 501
2,365
2,392
2,477
2,547
2,572
2,506
2,453
372
335
314
289
290
315
366
948
958
1,007
1,044
1,033
1,048
1,064
530
574
598
579
573
10,118
673
681
794
,393
,397
,395
,415
,451
P Preliminary.
i Weekly figures of excess reserves of all member banks and of country
banks are estimates.
DEPOSITS OF MEMBER BANKS IN LARGER AND SMALLER CENTERS
[Averages of daily figures. In millions of dollars]
i
Federal Reserve district
Gross demand
Total
1
Time
June
July
June
1,994
13,991
1,848
2, 205
1,215
1,181
4,722
1,168
693
1,465
1,203
_. 2,452
1,923
13, 683
1,827
2,163
1,213
1,194
4,665
1,141
682
1,417
1,194
2,394
656
2,255
1,126
1,393
554
397
1,771
420
360
314
232
2,212
656
2,241
1,122
1,400
555
396
1,754
416
358
314
233
2,224
34,135
33, 495
11, 690
11, 668
July
Boston
New York.
_ .._
Philadelphia
Cleveland
Richmond
Atlanta
. . .
Chicago
St. Louis __
_ _
Minneapolis
Kansas City
Dallas
San Francisco
Member banks in larger centers Member banks in smaller centers
(places over 15,000)
(places under 15,000)
Vll member bank 3
.. _
Gross demand
Time
June
July
June
1,864
i 1,190
1,625
1,982
1,037
1,029
i 1,810
957
515
1,130
926
2,337
1,799
i 1, 203
1,610
1,941
1,033
1,036
i 1, 787
932
505
1,088
916
2,281
528
i 1, 042
671
1,097
360
311
i 993
303
176
200
186
2,115
528
i 1, 042
668
1,104
362
310
i 986
299
175
200
187
2,127
129
291
223
222
177
152
319
211
178
335
277
115
124
282
217
221
180
157
321
209
178
329
278
113
128
498
455
296
193
87
291
117
184
113
46
97
128
496
453
296
193
87
289
117
184
114
46
97
i 7, 983 i 7,988
2,629
2,607
2,506
2,498
116, 403 116,134
July
Time
July
Excluding central reserve city banks, for which figures for latest month are shown in table above.
Gross demand
June
July
June
SEPTEMBER
787
FEDERAL RESERVE BULLETIN
1939
KINDS OF MONEY IN CIRCULATION
[Outside Treasury and Federal Reserve Banks. In millions of dollars]
1938—July
August
September
October
November
December
1939—January
February
March
April
May
June
July.
certificates
Silver
dollars
Silver
certificates
Treasury
notes
of 1890
Subsidiary
silver
coin
6,452
6,504
6,622
6,700
6,787
6,856
78
77
77
76
76
75
40
40
40
41
41
42
1,247
1,263
1,292
1,297
1,312
1,339
1
1
1
1
1
1
341
344
348
351
356
357
145
146
147
148
151
151
258
262
264
269
269
257
4,098
4,129
4,215
4,282
4,349
4,405
30
29
29
28
28
28
214
211
208
206
203
201
6,653
6,731
6,817
6, 905
6,967
7, 047
7, 049
75
74
74
73
72
72
71
41
41
41
42
42
42
43
1,269
1,327
1,378
1,385
1,417
1,454
1,446
1
1
1
1
1
1
1
348
350
352
354
358
361
3C2
149
150
151
152
154
155
156
244
246
261
255
259
266
264
4,301
4,320
4,350
4,426
4,449
4,484
4,496
27
27
27
26
26
26
25
198
195
193
191
189
186
184
Gold
Total
End of month
_
_ __
Minor
coin
United
States
notes
Federal Federal
Reserve Reserve
bank
notes
notes
National
bank
notes
Back figures.—See Annual Report for 1937 (table 35.)
PAPER CURRENCY, BY DENOMINATIONS, AND COIN IN CIRCULATION
[Outside Treasury and Federal Reserve Banks. In millions of dollars]
End of month
1938—July
August
September
October
November
December
1939—January
February
March
April
May
June
July
Total
in circulation i
Coin and small denomination currency
Total
6,452
6,504
6,622
6,700
6,787
6,856
4,836
4,885
4,970
5,021
5,096
5,147
526
530
536
540
548
550
481
488
501
505
511
524
6, 653
6,731
6,817
6,905
6,967
7,047
7,049
4,953
5,011
5,049
5,069
5,109
5,164
5,169
538
541
544
548
554
558
561
492
498
503
505
513
514
514
Coin
$2
$1
Large denomination currency 3
2
$10
$20
Total
879
891
912
923
1,508
1,528
1,556
1,572
1,599
1,611
1,410
1,416
1,434
1,450
1,469
1,481
1,618
1,622
1,656
1,683
1,696
1,714
388
389
396
400
404
409
727
727
744
754
761
770
152
152
156
157
158
160
307
308
317
321
323
327
904
919
928
929
937
947
947
1,546
1,574
1,594
1,602
1,614
1,638
1,644
1,440
1,446
1,448
1,453
1,458
1,473
1,470
1,705
1,721
1,770
1,838
1,861
1,887
1,885
403
406
411
418
422
428
426
768
774
799
829
836
848
847
160
161
165
170
172
176
175
329
335
349
370
380
388
391
$5
$50
$100
$500
$1,000
$5,000 $10,000
Unassorted'
i Total of amounts of coin and paper currency shown by denominations less unassorted currency in Treasury and Federal Reserve banks.
J Includes unassorted currency held in Treasury and Federal Reserve banks and currency of unknown denominations reported by the Treasury as destroyed.
* Paper currency only; $1 silver coins reported under coin.
Back figures.—See Annual Report for 1937 (table 36).
TREASURY CURRENCY OUTSTANDING
[Held b y Treasury and Federal Reserve banks a nd in circulation.
millions of dollars]
E n d of m o n t h
Total
1938—July
August
2,721
2,731
September. 2,739
October
2,751
November. 2,773
December.. 2,798
1939—January
February...
March
April
May...
June ___
July
2,816
2,824
2,839
2,849
2,862
2,881
2,895
Silver
Feddollars SubUnited eral
sidand
ReMinor
States serve
iary
silver
coin
notes bank
silver
bulcoin
lion i
notes
1, 596
1,608
1,618
1,634
1,657
1,685
374
375
376
376
376
376
157
157
158
158
158
159
347
347
347
347
347
347
30
30
29
29
29
28
1,705
1,717
1,733
1,746
1,759
1,778
1,794
376
376
377
376
377
380
381
159
160
160
160
161
161
162
347
347
347
347
347
347
347
28
27
27
27
26
26
26
In
SHIPMENTS AND RECEIPTS OF UNITED
STATES PAPER CURRENCY
[By selected banks and financial institutions in New York City.
In millions of dollars]
National
bank
notes
Year or month
1936
1937..
217 1938
214
212 1938—July
208
August
206
September
203
October
November
201
December
198
196 1939—January
193
February
191
March
189
April _
186
May
June
1
July
Includes silver held against silver certificates amounting to $1,696,000,000 on July 31, 1939 and $1,530,000,000 on July 31, 1938.
__
_.
__-
Shipments to
Europe
Receipts
from
Europe
34.8
21.5
33.1
26.2
47.6
34.4
.1
1.1
14.7
10.6
3.4
.7
3.8
2.3
1.0
.6
1.0
2.2
13.7
10.0
2.4
6.7
3.0
27.3
46.1
3.8
2.9
2.2
2.0
1.0
.9
.3
.7
1. 1
1.0
4.7
2.0
26.4
45.8
3. 1
1.8
1.2
Net
shipments
Back figures.—See Annual Report for 1937 (table 38).
Description.—See BULLETIN for January 1932, p p . 7-8.
Net
receipts
8.6
26.1
1.3
3.7
1.2
1.5
788
FEDERAL RESERVE BULLETIN
S E P T E M B E R 1939
ANALYSIS OF CHANGES IN GOLD STOCK OF
UNITED STATES
MOVEMENT OF GOLD TO AND FROM
UNITED STATES 1
[In millions of dollars]
[In thousands of dollars]
Gold stock at
end of year
or month
Year or month
Total
Inactive
account
In-
total
gold
stock
Net
gain or
loss (—)
Net through
gold
earimport marking
trans- 2
actions
Domestic
gold
production
1934 i
1935
1936_
1937.
1938.
8,238
10,125
11, 258
12, 760
14,
4, 202. 5 1,133. 9
1, 887. 2 1, 739. 0
26.5 1,132. 5 1,116.6
1, 227. 9 1, 502. 5 1, 585. 5
1, 751. 5 1, 973. 6
82.6
.2
-85.9
-200. 4
-333. 5
96.0
110.7
131.
143.9
148.6
1937—April
May
June
July
August
September
October
November
December
11, 799
11, 990
12, 318
12, 446
12, 567
12, 741
12,803
12, 774
12, 760
568.0
759.1
1, 086. 8
1,214.1
1, 335. 7
1, 210. 0
1,271.9
1, 242. 5
1, 227. "
225.6
191.1
327.8
127.3
121.6
174.3
62.0
-29.3
-14.0
7.2
26.2
-15.9
-35.5
-5.3
9.3
-8.0
-20.1
-101.6
9.2
12.4
11.2
12.7
16.9
12.2
14.9
13.8
11.9
1938—January
February
March
April
May
June
July
August
September
October
November
December
12, 756
12, 776
12, 795
12, §69
12, 919
12, 963
13,017
13,136
13, 760
14, 065
14, 312
14, 512
1, 223. 2
1, 200. 6
1,183. 0
-4,
20.7
18.5
74.3
49.8
44.2
54.5
118. 3
623.8
305.0
247.5
199.6
2. 1
-1.1
8.0 - 1 8 . 2
52.9
-.6
71.1
-1.2
52.8 - 5 3 . 9
55.3 - 1 5 . 5
63.8 - 2 0 . 9
166.0 - 2 8 . 8
520.9 - 1 3 . 3
562.4 -110.2
-7.4
177.8
240.5 - 6 2 . 4
11.0
10.0
10.7
10.6
11.5
9.6
14.2
14.7
14.1
13.5
15.5
13.3
215.8
155.4
262.0
175.4
104.8
145.5
90.5
22.1
18.0
1939
July
June
From or to
Imports
Belgium
France
Germany
Netherlands
Spain
Sweden
Switzerland
United K i n g d o m s Canada
Mexico
Central America.._
Argentina
Chile
Colombia
Ecuador
Peru
Venezuela
Australia
British India
China and Hong
Kong
Japan
Philippine Islands.
All other countries2.
Total
Imports
Exports
Exports
10
5,628
177,805
15, 204
4,150
539
1
1, 127
2,123
369
226
318
5,034
2,760
5,644
128,196
17, 210
3,280
502
781
2,107
174
380
394
5,677
2,244
560
14, 093
3,843
1,190
10, 938
3,022
2,647
9
240,
Imports
165, 121
,
3,682
9
275, 680
379
3,860
77, 463
1, 461, 114
74, 148
19, 995
3, 536
4,505
5,
14, 783
1,751
2,247
2,467
35, 690
17, 200
55, 081
45, 554
278, 645
Jan.-July
Exports
68
52
116
206
9,362
96,165
20, 437
4,520
19
450
, 299, 722
444
1
1939—January
February
March
April
May
June
July
Aug. 1-23 p
170.0
192.7
383. 8
532.3
166.2
153.3
128.0
262.6
14,1
14, 874
15, 258
15, 791
15, 957
16,110
16, 238
16, 501
156.3
223.3
365.4
605.8
429.4
240.4
278.6
144.2
14.1
-48.6
10.7
-114.8
-251.6
-102.6
-166.2
78.8
12.2
10.4
11.0
13.1
12.6
10.6
Pll.4
Figures represent customs valuations which, with some exceptions
are2 at rate of $35 a fine ounce.
Includes all movements of unreported origin or destination.
Back figures.—See table, p. 819, and Annual Report for 1937 (tables
31 and 32).
BANK DEBITS
p Preliminary.
1 Figures based on rate of $20.67 a fine ounce in January 1934 and $35 [Debits to individual deposit accounts, at banks in principal cities.]
[In millions of dollars]
a fine
ounce thereafter.
2
Gold held under earmark at Federal Reserve banks for foreign account on July 31, 1939, in millions of dollars: 1,287.5.
140
Total,
133
NOTE.—Figures for domestic production of gold are those published
New
other
all
other
in table, p . 819, adjusted to exclude production in Philippines. AdleadreportYork
reportYear
and
month
justment based on annual figures reported b y Director of M i n t and
ing
ing
ing
City
monthly imports of gold to U. S. from Philippines. For back figures,
cities i cities 2
centers
see Annual Report for 1937 (table 29).
BANK SUSPENSIONS^
Total,
all
banks
Nonmember
banks
Member
banks
National
Not
InState sured2 insured
Number of banks suspended:
1934
1935
1936
1937
1938
1939—Jan.-July
57
34
44
59
1
4
1
4
2
8
22
40
47
55
30
1
4
1
2
47
18
Deposits of suspended banks
(in thousands of dollars): 3
1934
1935
1936
_
1937
1938_.
1939—Jan.-July
36, 937
10, 015
11,306
19, 723
13,012
33, 849
40
5,313
507
7,379 1 708
36
211
1,357 25, 634
1,912
3,763
10, 207
10 156
11, 721
4,779
48
8
3
6
6
6
1929
1935
1936
1937
1938
982, 531
402, 718
461, 889
469, 463
405, 929
603,089 331, 938
184, 006 190,165
208, 936 219, 670
197, 836 235, 206
168, 778 204, 745
47, 504
28, 547
33, 283
36, 421
32, 406
1938—June
July
August
September.
October. __
November.
December.
35, 501
33,133
30, 798
32,192
36,130
32, 224
43, 209
15, 637
13,828
12, 247
13, 085
15,140
12, 425
18, 879
17,160
16, 677
16, 023
16, 440
18, 096
17,039
21,087
2,704
2,628
2,528
2,666
2,895
2,760
3,243
1939—January...
February. _
March
April
May
June
July
35,180
29, 973
37, 322
32, 822
34, 656
36, 883
33, 245
14, 533
12, 380
16, 274
13, 311
14,165
15, 312
12, 794
17,860
15, 201
18, 211
16, 832
17, 763
18, 676
17, 683
2,786
2,392
2,837
2,679
2,728
2,895
2,768
34, 985
939
Comprises centers for which bank debit figures are available begin592
480 ning with 1919, except that one substitution was made in 1920 and one
1,044 in 1928.
2 Cities (other than the 141 centers) for which bank debits are currently
2,079
reported. The number has changed very little since 1934 and has numbered 133 since 1936.
1 Represents licensed banks suspended; does not include nonlicensed
Back figures.—See Annual Report for 1937 (Table 71), which also gives
banks
placed in liquidation or receivership.
a definition of bank debits. Figures for individual reporting cities and
2
Federal
deposit
insurance
became
operative
January
1,
1934.
totals
by Federal Reserve districts are available in mimeographed form.
3
Deposits of member banks and insured nonmember banks suspended
are as of dates of suspension, and deposits of noninsured nonmember
banks are based on the latest data available at the time the suspensions
were reported.
Back figures.—See Annual Report for 1937 (table 76).
SEPTEMBER
FEDERAL RESERVE
1939
789
BULLETIN
ALL BANKS IN THE UNITED STATES
Comprises all national banks in the continental United States and all State commercial banks, trust companies, mutual and stock savings banks
and such private and industrial banks as are included in abstracts issued by State banking departments. Also includes, during the period
June 1934-June 1935, private banks which, pursuant to the provisions of sec. 21 (a) of the Banking Act of 1933, submitted condition reports to
the Comptroller of the Currency. Under the amended provisions of sec. 21 (a) private banks no longer report to the Comptroller of the Currency. For comparative figures of private banks included in the figures from June 1934 to December 1935, see Federal Reserve Bulletin for
December 1935, p. 883, and July 1936, p. 535. Figures for nonmember banks are for dates indicated or nearest thereto for which figures are
available.
NUMBER OF BANKS
Nonmember
banks
Member banks
Call date
Total
Total
DEPOSITS, EXCLUSIVE OF INTERBANK
DEPOSITS1
In millions of dollars]
National
State
Mutual
savings
banks
Member banks
Other
nonmember
banks
All
banks
Call date
Nonmeniber
Mutual
banks
savings
banks
Other
nonmember banks
12, 873
13, 575
8,983
8,916
12, 584
12, 508
Total
National
State
53, 852
55, 289
32, 284
33,865
19,411
20, 290
1929—June 29
Dec. 31
25,110
24, 630
8,707
8,522
7,530
7,403
1,177
1,119
611
609
15, 792
15,499
1933—June 30
Dec. 30
14, 519
15,011
5,606
6,011
4,897
5,154
709
857
576
579
8,337
8,421
1933—June 30. __ 37, 998
Dec. 3O._. 38, 505
23, 338
23, 771
14, 772
15, 386
8,566
8,385
9,713
9,708
4,946
5,026
1934—June 30
Dec. 31
15, 835
16, 039
6,375
6,442
5,417
5,462
958
980
578
579
8,882
9,018
1934—June 30
41,870
Dec. 31.__ 44, 770
26, 615
28, 943
17, 097
18, 519
9,518
10, 424
9,780
9,828
5,475
6,000
1935—June 29
Dec. 31
15, 994
15,837
6,410
6,387
5,425
5,386
985
1,001
571
570
9,013
8,880
1935—June 29. __ 45, 766
Dec. 31___ 48, 964
29, 496
32,159
19, 031
20,886
10, 465
11, 273
9,920
9,963
6,350
6,842
1936—June 30
Dec. 31
15, 752
15, 628
6,400
6,376
5,368
5,325
1,032
1,051
566
565
8,786
8,687
1936—June 30. __ 51, 335
Dec. 31
53, 701
34, 098
35, 893
21, 986
23,107
12,112
12, 786
10, 060
10,143
7,178
7,666
1937—June 30
Dec. 31
15, 527
15, 393
6,357
6,341
5, 293
5,260
1,064
1,081
564
563
8,606
8,489
1937—June 30
53, 287
Dec. 3 1 . . . 52, 440
35,440
34,810
22,926
22, 655
12, 514
12,155
10, 213
10, 257
7,635
7,373
1938—Mar. 7
June 30
Dec. 31
15, 348
15, 287
15, 206
6,335
6,338
6,338
5,250
5,242
5,224
1,085
1,096
1,114
563
563
556
8,450
8,386
8,312
1938—Mar. 7—_ 51, 703
June 30.
52,195
Dec. 31___ 54, 054
34,118
34, 745
36, 211
22, 264
22, 553
23, 497
11,854
12,193
12, 714
10, 259
10, 296
10, 365
7,325
7,153
7,478
1939—Mar. 29
15,151
6,331
5,212
1,119
555
8,265
1939—Mar. 29... 53, 812
36,089
23, 340
12, 749
10, 376
7,348
1929—June 29
Dec. 31___
For footnotes see table below.
For footnotes see table below.
LOANS AND INVESTMENTS
[In millions of dollars]
Nonmember banks
Member banks
All banks
Mutual savings banks
Call date
Total
Loans
Investments
Total
Loans
Investments
Total
Loans
Investments
Other nonmember banks
Total
Loans
Investments
1929—June 29
Dec. 31
58, 474
58,417
41, 531
41, 918
16,943
16,499
35,711
35, 934
25, 658
26,150
10,052
9,784
9,556
9,463
5,892
5,945
3,664
3,518
13,207
13,020
9,981
9,823
3,227
3,197
1933—June 30
Dec. 30 __ _
40,076
40,319
22, 203
21, 977
17, 872
18, 342
24, 786
25, 220
12, 858
12, 833
11,928
12, 386
10,044
9,985
5,941
5,906
4,103
4,079
5,246
5,115
3,404
3,238
1,841
1,877
1934—June 30
Dec. 31
42, 502
43, 458
21, 278
20, 473
21, 224
22, 984
27,175
28,150
12, 523
12, 028
14, 652
16,122
9,904
9,782
5,648
5,491
4,256
4,291
5,423
5,526
3,108
2,955
2,315
2,571
1935—June 29.
Dec. 31
44, 416
45, 717
20, 272
20, 329
24,145
25, 388
28, 785
29, 985
11,928
12,175
16, 857
17, 810
9,852
9,804
5,341
5,210
4,511
4,594
5,779
5,927
3,003
2,944
2,777
2,983
1936—June 30
Dec. 31__
48, 458
49, 524
20, 679
21, 449
27, 778
28,075
32, 259
33,000
12, 542
13, 360
19,717
19,640
9,961
10,060
5,105
5,027
4,856
5,034
6,238
6,464
3,032
3,062
3,206
3,402
1937—June 30
Dec. 31
49,696
48, 566
22, 514
22,198
27,182
26, 368
32, 739
31, 752
14, 285
13, 958
18, 454
17, 794
10,180
10,187
5,002
4,996
5,178
5,191
6,778
6,627
3,227
3,244
3,550
3,383
1938—Mar. 7
June 30
Dec. 312
48, 319
47, 381
48, 929
21, 779
21,130
21, 354
26, 540
26, 252
27, 575
31, 521
30, 721
32, 070
13, 546
12, 938
13, 208
17,975
17, 783
18, 863
10,196
10,196
10, 255
4,995
4,961
4,930
5,201
5,235
5,325
6,602
6,465
6,604
3,238
3,231
3, 217
3, 364
3,234
3,387
1939—Mar. 29 2
48, 929
21,154
27, 775
32,095
13,047
19,048
10, 265
4,926
5,338
6,569
3,180
3,389
1 Prior to Dec. 30, 1933, member-bank figures include interbank deposits not subject to immediate withdrawal, which aggregated $103,000,000
on that date. The nonmember bank figures include interbank deposits to the extent that they are not shown separately in a few State bank
abstracts.
2 The December 1938 and March 1939 figures of loans and investments exclude approximately $50,000,000 and $100,000,000, heretofore reported
as loans and investments, respectively, which indirectly represent bank premises or other real estate and are now classified in condition reports
among "other assets."
Back figures—See Annual Report for 1937 (tables 48-49).
790
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONDITION OF ALL MEMBER BANKS
[In millions of dollars]
Investments i
Loans i
Call date
Total
loans
and
investments
Commercial,
inT o t a l i dustrial,
and
agricultural 2
Loans for
purchasing
or carrying
securities
Open
market
paper
U. S. Government obligations
Real Loans
estate to
loans
To
brokers
To
and others 3
dealers
Direct
Other
loans 4 Total
Obligations
of
States Other
and
securpolit- ities i
ical
subdivisions 5
Bills
Notes
Bonds
Guaranteed
•249
3,863
6,887 •1,113
9,906 8 1,030
10, 501 1,192
1,053
11,639
662
10, 574
316
10, 215
10,882
286
10, 691
303
10, 946
441
520
2,049
4,217
5,403
4,527
4,277
3,653
3,389
2,604
2,720
3,094
3,725
4,659
3,905
6,060
5,635
6,246
7,208
7,783
7,786
989
1,768
1,906
1,797
2,128
2,340
2,660
2,831
1,393
1,744
1,965
2,178
2,226
2,047
2,143
2,448
2,555
2,554
4,528
3,297
3,262
3,364
3,868
3,376
3,297
3,192
3,142
3,131
banks
Total
TOTAL—ALL
MEMBER BANKS
1929—Dec. 31
1933—June 3 0 . .
1934—Dec. 31
1935—Dec. 3 1 . .
1936—Dec. 31
1937—Dec. 31
1938—June 3 0 . .
Dec. 31_.
1939—Mar. 29..
J u n e 30 __
35,934
24, 786
28,150
29, 985
33,000
31, 752
30, 721
32, 070
32,095
32, 603
26,150
12,858
12,028
12,175
13, 360
13, 958
12, 938
13, 208
13, 047
13,141
8,774
7,133
7,761
8,418
9,280
8,313
8,013
8,335
8,408
8,688
6,683
3,424
3,159
3,434
3,855
3,673
3,172
3,262
3,086
2,988
1,757
1,287
1,581
1,868
2,100
1,901
1 806
1,969
1,965
2,052
1,448
677
532
476
633
635
525
539
545
544
12 029
8 492
10,028
10, 780
11, 795
11,414
11,150
11, 654
11, 624
11, 756
9,084
4 482
4,312
4,347
4,794
5,203
4,853
4,963
4,936
5,004
13, 375
7 873
8,780
8,919
9,825
10,124
9,752
10,113
10, 098
10,109
8,936
4 275
4,025
3,918
4,078
4,446
4,388
4,444
4,480
4,605
714 11,515 9,784
330 4,857 11, 928
155 4,708 16,122
98 5,006 17, 810
85 6,041 19,640
70 6,996 17, 794
120 6,397 17, 783
125 7 2, 728 18, 863
99 2,671 19,048
58 2,796 19, 462
5,448
5,531
5,571
583
595
751
651
634
643
491
442
427
420
2,463
953
1,030
1,243
1,410
950
701
973
838
731
7,685
3,752
3,110
2,893
2,785
2,752
2,614
'775
733
736
3,191
2,372
2,273
2,284
2,405
2,547
2,613
2,716
2,749
2,828
1,461
1,456
1,479
195
364
396
286
216
198
141
138
126
128
1,257
758
716
1,078
1,173
761
556
787
668
555
2,145
1,044
820
793
753
733
717
220
209
215
169
157
139
140
144
141
132
121
124
130
322
162
63
42
42
29
85
99
77
41
2,595
937
1,024
1,096
1,527
1,811
1,541
436
427
440
251
61
55
29
51
41
29
43
32
39
533
251
170
149
140
129
109
70
70
71
21
30
18
15
13
12
10
12
12
11
88
30
11
6
6
1
336
361
348
19
70
77
28
22
25
15
16
14
14
2,121
2,116
2,118
168
126
179
195
209
201
163
149
145
138
664
108
195
117
159
123
96
119
115
115
2,775
1 340
1,124
1,057
1,048
1,066
998
242
228
221
1,538
1,131
1,090
1,094
1,124
1,176
1,201
1,230
1,249
1,284
258
99
55
34
23
27
26
20
17
12
1,531
1,597
1,626
201
35
101
142
187
216
173
138
142
140
291
25
64
20
29
25
2€
25
24
22
2,231
1,117
996
894
843
824
790
243
226
229
1,462
1,055
1,026
1,035
1,123
1,219
1,269
1,353
1,363
1,402
45
38
27
17
14
13
9
5
6
5
NEW YORK
CITY •
1929—Dec. 3 1 . .
1933—June 30.
1934 Dec. 31
1935—Dec. 31__
1936 Dec. 31
1937—Dec. 3 1 _ .
1938—June 3 0 Dec. 31__
1939— M a r . 29 .
J u n e 30. _
2,091
3,709
4,602
4,985
5,425
4,640
4,840
5,072
5,322
5,700
1,112
2,551
3,246
3,425
3,739
3,207
3,031
2,963
2,939
3,360
•58
•638
758
865
718
495
222
158
68
168
166
987
1,664
1,810
1,559
1,536
1,358
1,142
831
908
889
926
824
749
1,462
1,175
1,451
1,663
2,040
2,284
278
401
470
388
709
894
1,086
1,123
222
478
446
507
426
342
394
517
582
480
758
680
632
653
790
704
706
698
714
736
535
237
202
249
402
426
361
62
57
59
309
610
L, 049
L, 392
L, 467
L, 266
1,281
L, 430
.420
1,507
116
384
743
1,061
1,107
916
859
1,005
992
1,040
•3
•206
164
213
198
32
12
59
121
185
19
82
299
604
375
366
313
291
212
234
94
97
279
243
533
518
535
655
660
621
78
88
94
94
122
109
108
135
96
87
129
141
143
135
140
141
149
154
96
138
100
103
124
121
159
176
171
179
3,679
1,678
1,671
1,851
2,231
2, 610
2,369
1,081
1,066
1,116
2,944
4 011
5,715
6,432
7,000
6,211
6,298
6,691
6,688
6,751
1,368
2 483
3,809
4,076
4,426
3,961
3,940
4,278
4,181
4,102
•91
» 205
95
85
120
106
69
57
100
78
165
681
1,692
2,267
1,904
1,589
1,268
1,224
977
1,014
1,112
1,597
2,022
1,724
2,403
2,267
2,603
2,997
3,105
3,010
279
656
697
637
718
740
823
889
448
598
649
723
774
691
732
808
823
895
1,128
930
978
977
1,102
921
908
866
860
866
4,705
2 005
1,810
1,810
1,881
2,149
2,126
1,149
1,121
1,180
4,439
3,598
4,756
5,002
5,747
5,677
5,364
5,669
5,618
5,504
1,267
1,469
2,108
1,940
2,368
2,490
2,385
2,636
2,578
2,444
•97
•64
•13
28
17
29
13
11
15
11
171
299
562
722
689
786
715
732
585
563
999
1,106
1,533
1,189
1,662
1,675
1,657
1,893
1,978
1,870
355
623
645
678
579
597
643
683
627
581
741
807
883
879
878
982
1,001
1,025
CITY OF
CHICAGO 8
1929—Dec. 31 __
1933—June 30_.
1934—Dec. 31_.
1935—Dec. 31_.
1936—Dec. 3 1 . .
1937—Dec. 31__
1938—June 30
Dec. 31_.
1939—Mar. 29_.
June30__
1
RESERVE CITY
BANKS
1929—Dec. 31._
1933—June 30
1934—Dec. 31_.
1935—Dec. 31_.
1936—Dec. 3 1 . .
1937—Dec. 3 1 . .
1938—June 30
Dec. 3 1 . .
1939—Mar. 2 9 . .
June30__
COUNTRY
BANKS
1929—Dec. 31
1933—June 30
1934—Dec. 31_.
1935—Dec. 31
1936—Dec. 31__
1937—Dec. 3 1 . .
1938—June 30.
Dec. 3 1 . .
1939—Mar. 29_.
June30__
2.546
, 549
, 552
, 633
,851
,630
,522
L, 453
L, 397
L, 351
1 Classifications indicated were revised as of Dec. 31, 1938; for explanation see BULLETIN for January 1939, pp. 22-23, and the April BULLETIN,
pp. 259-264.
2 Not reported separately prior to December 1938 except for weekly reporting banks in leading cities.
3
Figures in this column prior to Dec. 31,1938, represent all loans on securities, regardless of purpose, excepting only loans on securities to banks
and to brokers and dealers.
4
This is a residual item and because of the revised loan classifications figures beginning Dec. 31, 1938, are not comparable with earlier figures.
5
Includes obligations of territorial and insular possessions when reported separately.
6
Includes Treasury certificates of indebtedness.
7
For estimated figures for Dec. 31, 1938, on basis comparable with earlier figures see p. 332 of the April BULLETIN.
8
Central reserve city banks.
Back figures.See Annual Report for 1937 (tables 52-58).
791
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONDITION OF ALL MEMBER BANKS—Continued
[In millions of dollars]
Demand deposits,
except interbank
Call date
Reserves
with
Fed- Cash
in
eral
Re- vault
serve
banks
Time deposits,
except interbank
Interbank
deposits
IndiBalDe- IndiDomestic
ances mand vid- States Certivid- States
banks
with
fied U. S. uals,
and
de- uals, and
part- polit- Postal
do- posits part- polit- and
Govoffinernerical
ical
mestic adsavForern- 4 ships,
cers' ment
sub- ings4
banks' justed2 ships, subeign
and
and
divi- checks,
diviDe- Time banks
cor- sions
cor- sions etc.'
mand
poraporations
tions
Capital
accounts
Borrowings
TOTAL—ALL MEMBER
BANKS
1929— Dec. 31
1933—June 30
1934—Dec. 31
1935—Dec. 31
1936—Dec. 31_
1937—Dec. 31
1938—June 30.
Dec. 31
1939—Mar. 29
J u n e 30.
2,374
2,235
4,082
5,573
6,572
7,005
8,004
8,694
9,112
10, 011
558
405
609
665
697
589
712
746
777
712
2,168
2,008
3,149
3,776
4,066
3,414
4,084
4,240
4,403
4,674
16, 647
12,089
15, 686
18, 801
21, 647
20, 387
20,893
22,293
22,364
23, 587
17, 526
11,830
14, 951
18,035
20,970
19, 747
19, 816
21,119
20,845
22, 448
1,335
1,087
1,799
2,139
2,329
2,132
2,314
2,386
2,467
2,532
1,681
657
838
882
881
767
662
547
533
790
143
806
1,636
844
882
781
543
790
775
694
12,267
7,803
9,020
9,680
10, 429
10, 806
10, 874
10,846
10, 940
11, 063
595
300
294
361
296
482
454
462
461
441
122
788
452
218
104
95
83
61
68
59
3,517
3,057
4,569
5,696
6,402
5,436
6,096
6,510
6,816
7,097
95
89
134
151
153
129
135
132
133
142
698
146
154
449
438
464
331
511
629
607
879
827
846
1,576
2,541
2,658
2,738
3,517
4,104
4,582
4,975
68
46
86
65
61
56
65
68
63
61
179
101
103
111
133
120
119
109
156
112
4,750
4,358
5,069
6,193
6,929
6,111
6,698
7,168
7,605
8,012
5,847
4,676
5,370
6,479
7,274
6,507
6,900
7,273
7,677
8,281
128
96
229
323
285
189
273
280
260
288
1,180
461
540
524
457
404
367
195
272
472
20
332
792
224
225
382
123
139
135
84
1,112
671
591
591
679
696
694
652
655
653
33
4
4
12
13
49
32
36
53
46
18
110
56
3
1,198
1,255
1,798
2,338
2,493
2,108
2,514
2,687
2,731
2, 992
40
22
1
597
128
133
414
397
423
291
442
553
524
179
8
169
232
415
511
558
596
936
884
705
897
13
34
40
39
32
27
31
35
22
26
133
203
207
209
188
179
208
235
178
235
957
912
1,189
1,401
1,554
1,438
1,523
1,688
1,250
1,666
1,041
870
1,073
1,301
1,495
1,354
1,386
1,597
1,182
1,565
42
87
182
208
191
207
221
181
141
197
32
16
23
27
27
23
23
29
26
22
8
46
46
98
72
64
86
83
83
60
332
358
381
413
449
445
443
452
452
471
58
1
2
6
1
310
259
445
522
599
528
688
658
834
746
19
33
2
2
4
5
6
6
9
10
12
41
751
705
1,268
1,594
2,108
2,310
2,289
2,354
2,459
2,735
156
122
207
256
285
200
300
321
342
318
947
1,002
1,543
1,779
1,816
1,470
1,951
1,940
2,106
2,210
5,229
3,764
5,136
6,161
7,126
6,870
6,934
7,214
7,326
7, 654
5,547
3,708
4,919
6,001
7,023
6,743
6,668
7,034
6,899
7,331
423
349
585
707
843
777
812
796
889
917
300
108
169
204
230
192
146
170
123
160
76
312
620
385
407
256
266
424
420
415
4,433
2,941
3,494
3,796
4,026
4,161
4,238
4,233
4,276
4,320
371
208
206
266
203
266
262
269
243
233
41
388
186
79
35
34
31
17
22
19
1,604
1,315
1,984
2,422
2,826
2,389
2, 514
2,719
2,813
2,920
30
59
117
134
137
107
113
108
108
115
64
15
18
29
34
34
32
57
64
69
292
16
627
452
822
927
1,247
1,361
1,263
1,353
1,367
1,403
321
203
275
305
319
307
316
322
350
307
908
702
1,296
1,676
1,929
1,645
1,806
1,956
1,963
2,117
5,711
3,054
4,292
5,047
6,039
5,968
5,738
6,224
6,183
6,255
5,091
2,576
3,589
4,254
5,177
5,143
4,863
5,215
5,087
5,272
742
555
804
901
1,011
959
1,008
1,128
1,176
1,130
169
72
106
127
167
149
126
154
114
135
39
116
178
137
178
78
68
143
137
136
6,390
3,833
4,554
4,879
5,275
5,504
5,499
5,509
5,557
5,619
133
86
84
83
80
158
144
147
153
145
61
285
210
136
69
61
52
44
46
40
405
228
342
415
483
412
380
446
438
439
6
7
16
16
16
21
22
23
25
26
3
1
2
1
2
1
2
2
2
2
367
167
13
6
3
12
11
6
191
13
6
15
12
11
6
7
5
6,709
4,837
5,054
5,145
5,275
5,371
5,368
5,424
5,467
5,496
NEW YORK CITY 6
1929—Dec. 31
1933—June 30
1934—Dec. 31
1935—Dec. 31
1936—Dec. 31
1937—Dec. 31
1938—j u n e 30
Dec. 31
1939—Mar. 29
June 30
12
2,105
1,582
1,565
1,573
1,585
1,606
1,587
1,593
1,592
1,586
CITY OF CHICAGO 6
1929—Dec. 31
1933—June 30
1934—Dec. 31
1935—Dec. 31
1935—j) ec 3i
1937—Dec. 31
1938—June 30
Dec 31
1939—Mar. 29
June 30
8
16
9
12
17
316
204
226
244
255
240
257
261
270
RESERVE CITY BANKS
1929—Dec. 31
1933—June 30
1934—Dec 31
1935—Dec. 31
1936—Dec. 3i
1937— Dec. 31 __
1938—June 30
Dec. 31
1939—Mar. 29.
June 30 _
2
2,029
1,533
1,614
1,657
1,697
1,735
1,753
1,777
1,795
1,812
COUNTRY BANKS
1929—Dec. 31
1933—June 30.
1934—Dec. 31
1935—Dec. 31
1936—Dec. 31
1937—Dec. 3i _
1938—June 30
Dec. 31
1939—Mar. 29
June 30
5
5
2,258
1,517
1,650
1,687
1,750
1,775
1,778
1,798
1,818
1,828
1 Prior to Dec. 31,1935, excludes balances with private banks to the extent that they were then reported in "Other assets." Since Oct. 25, 1933,
includes time balances with domestic banks which on that date amounted to $69,000,000 and which prior to that time were reported in "Other assets."
2 Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection and, prior to Dec. 31,1935,
less cash items reported on hand but not in process of collection.
»Includes
"Due to Federal Reserve banks (transit account)," known as "Due to Federal Reserve banks (deferred credits)" prior to Dec. 31, 1935.
4
U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
s Central reserve city banks.
Back figures.—See Annual Report for 1937 (tables 52-58).
792
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES
[Monthly data are averages of Wednesday figures. In millions of dollars]
1
Date or Month
Total
loans
and
invest- Totali
ments
Loans1
Commercial,
Open
inmardusket
trial,
paper
and
agricultural
Investments1
Loans for
purchasing
or carrying
securities
To
brokers
To
and others
dealers
U. S. Government obligations
Direct
Real Loans
Other
estate
to
Totali
loans banks loans
Total
Bills2
Notes Bonds
Other
Guar- secu-1
rities
anteed
3 047
3 211
3,261
3 251
3,342
3,273
3,291
3,243
TOTAL—101 CITIES
20, 530
21,468
21, 527
21, 705
21, 727
21, 693
21, 887
22, 046
8, 213
8,338
8,197
8,241
8,127
8,091
8,094
8,146
3,878
3,800
3,760
3,792
3,848
3,839
3,830
3,888
334
325
323
310
305
303
304
312
629
852
795
831
697
678
671
648
577
547
533
529
537
539
541
532
1,159
1,170
1,145
1,137
1,144
1,151
1,159
1,163
121
100
102
94
69
58
52
64
1,515
1,544
1,539
1,548
1,527
1,523
1,537
1,539
12, 317
13,130
13,330
13, 464
13, 600
13, 602
13, 793
13, 900
7,703
8,191
8,178
8,186
8,225
8,296
8,383
8,499
410
342
398
422
461
2,201
2,011
2,033
2,106
2,132
5,575
5,872
5.865
5, 855
5,906
1 567
1 728
1,891
2 027
2,033
2,033
2,119
2,158
21, 680
21, 795
21,878
_ _ 21,923
21,951
22,000
22,023
22,025
22,135
22, 244
22, 274
22, 337
8,126
8,116
8,097
8,072
8,089
8,142
8,131
8,116
8,194
8,166
8,156
8,186
3,822
3,833
3,831
3.823
3,833
3,872
3,887
3,893
3,899
3,887
3,917
3,912
308
309
307
298
303
314
313
311
312
313
310
313
721
699
674
661
648
650
644
615
681
655
631
676
539
540
540
542
543
542
530
528
528
526
522
519
1,156
1,155
1,160
1,159
1,161
1,159
1,163
1,164
1,165
1,168
1,170
1,172
59
52
54
52
51
56
58
71
71
74
74
60
1,521
1,528
1,531
1,537
1,550
1,549
1,536
1, 534
1,538
1,543
1,532
1,534
13, 554
13, 679
13, 781
13,851
13, 862
13,858
13,892
3,909
13, 941
14,078
14,118
14,151
8,237
8,318
8,390
8,404
8,423
8,485
8,493
8, 505
8,514
8,515
8,530
8,544
333
395
423
440
431
469
454
4f8
465
473
480
495
2,053
2,080
2,112
2,121
2,112
2,125
2,134
2,132
2,137
2,132
2,155
2,159
5, 851
5,843
5,855
5,843
5,880
5,891
5,905
5, 915
5,912
5,910
5,895
5,890
2,055
2,092
2,108
2,127
2,148
2,150
2,153
2,159
2,168
2,241
2,259
2,267
3,262
3,269
3,283
3,320
3,291
3,223
3,246
3,245
3,259
3,322
3,329
3,340
7,492
7,645
7,676
7,904
8,010
7,958
8,103
8,138
2,922
2,982
2,901
2,932
2,795
2,759
2,758
2,765
1,457
1,371
1,357
1,364
1,379
1,372
1,375
1,408
131
128
125
120
117
120
121
194
192
187
190
195
198
201
120
497
694
644
675
555
529
523
497
191
118
117
110
109
110
111
113
115
93
79
82
77
56
44
39
54
432
401
396
397
383
385
386
380
4,570
4,663
4,775
4,972
5,215
5,199
5,345
5,373
2,821
2,711
2,634
2,743
2,946
3,024
3,139
3,174
91
146
170
168
146
802
741
727
808
821
1, 850
2,059
2,127
2,163
2,207
723
852
974
1,053
1,045
1,034
1,060
1,098
1,026
1 100
1 167
1,176
1,224
1,141
1,146
1,101
8,000
1939—May 31
8,052
June 7
June 14 ._ _ _ 8,090
8,135
June 21
8,133
June 28
8,136
July 5
8,140
July 12
8,092
July 19
8,182
July 26
8,309
Aug. 2
_
8,332
Aug. 9 _
8,386
Aug. 16
2,798
2,781
2,760
2,748
2,743
2,771
2,758
2,732
2,797
2,806
2,807
2,846
1,364
1,369
1,374
1,372
1,384
1,405
1,409
1,405
1,414
1,438
1,464
1,471
125
124
123
120
119
126
120
118
118
117
114
117
568
553
524
517
496
495
496
472
523
501
484
525
200
200
201
201
201
200
190
187
188
186
186
184
111
112
113
113
113
114
115
115
115
116
116
118
45
38
41
39
40
45
49
60
60
64
64
50
385
385
384
386
390
386
379
375
379
384
379
381
5,202
5,271
5,330
5,387
5,390
5,365
5,382
5,360
5,385
5,503
5, 525
5,540
3,028
3,100
3,133
3,149
3,172
3,196
3,184
3,154
3,161
3,201
3,217
3,225
147
159
167
173
172
167
144
125
147
194
206
220
744
787
816
819
811
823
826
818
817
818
835
834
2,137
2,154
2,150
2,157
2,189
2,206
2,214
2,211
2,197
2,189
2,176
2,171
1,044
1,033
1,054
1,065
1,087
1,094
1,093
1, 100
1,106
1,127
1,133
1,136
1,130
1,138
1,143
1,173
1,131
1,075
1,105
1,106
1,118
1,175
1,175
1,179
5,291
5 356
5,296
5,309
5,332
5,332
5,336
5,381
2,421
2,429
2,403
2,428
2,469
2,467
2,455
2,480
203
197
198
190
188
183
183
192
132
158
151
156
142
149
148
151
383
355
346
339
342
341
340
341
1,041
1,053
1,035
1,028
1,034
1,040
1,046
1,048
28
20
17
13
14
13
10
1,083
1,143
1,143
1, 151
1,144
1,138
1,151
1,159
7,747
8,467
8,555
8,492
8,385
8,403
8,448
8,527
4,882
5,480
5,544
5, 443
5,279
5,272
5,244
5,325
319
196
228
254
315
1,399
1,270
1,306
1,298
1,311
3,725
3,813
3,738
3,692
3,699
844
876
917
974
988
999
1,059
1, 060
2,021
2 111
2 094
2,075
2,118
2,132
2,145
2,142
5,328
5 335
5,337
5,324
5,346
5,371
5,373
5,384
5,397
5,360
5,349
5,340
2,458
2,464
2,457
2,451
2,449
2,467
2,478
2,488
2, 485
2,449
2,453
2,441
183
185
184
178
184
188
193
193
194
196
196
196
153
146
150
144
152
155
148
143
158
154
147
151
339
340
339
341
342
342
340
341
340
340
336
335
1,045
1,043
1,047
1,046
1,048
1,045
1,048
1,049
1,050
1,052
1,054
1,054
14
14
13
13
11
11
9
11
11
10
10
10
1,136
1,143
1,147
1,151
1,160
1,163
1,157
1,159
1,159
1,159
1,153
1,153
8,352
8,408
8,451
8,464
8,472
8,493
8,510
8,549
8,556
8,575
8,593
8,611
5,209
5,218
5,257
5,255
5,251
5,289
5,309
5, 351
5,353
5,314
5,313
5,319
186
236
256
267
259
302
310
333
318
279
274
275
1,309
1,293
1,296
1,302
1,301
1,302
1,308
1,314
1,320
1,314
1,320
1,325
3,714
3,689
3,705
3,686
3,691
3,685
3,691
3,704
3,715
3,721
3,719
3,719
1,011
1,059
1,054
1,062
1,061
1,056
1,060
1,059
1,062
1,114
1,126
1,131
2,132
2 131
2,140
2,147
2,160
2,148
2,141
2,139
2,141
2,147
2,154
2,161
1938 Julv
1939—January
February
March
April
May
June . ._ ___
July
1939—May 31
June 7
June 14
June 21_.
June 28
July 5
July 12
July 19
Julv 26
Aug 2
Aug. 9
Aug. 16
NEW YORK CITY
1938—July
1939—January
February
March..
April
May . . . .
June
July
._
OUTSIDE NEW
YORK CITY
1938—July
l9Hy Januarv
February
March
April
May
June
July
1939—May 31—
June 7
June 14
June 21
June 28
July 5
July 12
July 19 _.
July 26
Aug 2
Aug. 9
Aug. 16
3,038
3 823
3 851
3,801
3,717
3,735
3,784
3,908
3,680
3 743
3,788
3,788
. 3,818
3,864
3,883
3,933
3,953
3,935
. __ 3,942
3,951
2i
NOTE.—For description of figures see BULLETIN for November 1935 (pages 711-738) or reprint, which may be obtained from the Division of
Research and Statistics, and BULLETIN for June 1937, (pages 530-531). For back figures see BULLETIN for November 1935 (pages 711-738) or reprint.
BULLETIN for December 1935 (page 876), Annual Report for 1937 (tables 65-67) and corresponding tables in previous Annual Reports.
i Beginning February, 1939, amounts previously classified as loans or securities but indirectly representing bank premises or other real estate
owned are classified among "other assets". These amounts on February 8, 1939, were $47,000,000 for loans, mostly real estate loans, and $53,000,000
for securities. There was also a transfer of certain loans theretofore erroneously classified as "Commercial, industrial, and agricultural" to "Other
loans."
* Not reported separately prior to Feb. 8. 1939.
793
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued
[Monthly data are averages of Wednesday figures. In millions of dollars.]
Demand deposits,
except interbank
Date or month
Reserves
with Cash
Fedin
eral vault
Reserve
banks
DeBalances mand
with
dedoposits
mestic ad- 1
banks usted
IndividCertiuals, States
fied
and
part- politand
neroffiical
ships, subcers'
and
divi- checks,
cor- sions
etc.
porations
Time deposits,
except interbank
Interbank
deposits
IndiDomestic
banks
viduals, States
and
U. S. part- politForPostal
Gov- nerical
eign
sav-2
ern- 2 ships, subbanks
ings
ment
and
DediviTime
mand
corpora- sions
tions
Borrowings
Capital
accounts
TOTAL—101 CITIES
1938—July
1939—January,..
February..
March
April
May
June
July
6,675
7,437
7,358
7,427
7,973
8,361
8,460
8,645
403
440
410
410
424
423
447
448
2,435
2, 561
2,543
2,580
2, 596
2,644
2,727
2,765
15,021
16,054
16,042
16,032
16,455
16, 796
17,182
17, 366
15, 900
17,020
16, 997
15,638 1,327
16,000 1,372
16, 259 1,452
16. 633 1,470
17, 008 1,317
443
463
461
560
428
441
419
406
452
631
631
625
620
581
545
541
5,188
5,161
5,170
224
4,976
235
4,974
251
4,984
229
4,996
216
5,006
5,821
6,216
6,175
6, 395
6,473
6,530
6,607
6,763
115
111
113
116
116
118
121
127
310
531
563
587
638
639
606
620
3,645
3,675
3,682
3,687
3,695
3,712
3,721
3, 716
1939—May 31..
June 7__.
June 14_.
June 21_.
June 28_.
July 5_._
July 12
July 19__
July 26..
Aug. 2...
Aug. 9___
Aug. 16..
8,449
8,417
8,470
8,475
8,479
8,473
8,649
8,706
8, 750
8,684
8,791
8,917
427
456
448
431
455
441
464
439
448
424
446
426
2,702
2,670
2, 735
2,747
2,756
2, 759
2,790
2,767
2,745
2,793
2,777
2,842
16, 965
17, 057
17,212
17,238
17, 220
17,109
17, 368
17,387
17, 601
17, 462
17, 551
17, 641
16, 464
16, 390
16,770
16, 652
16, 720
16, 790
17,061
17,050
17,132
1,498
1,496
1,479
1,488
1,417
1,331
1, 310
1,275
1, 352
1,492
1, 438
1,399
478
473
424
386
391
488
385
389
363
532
369
461
551
544
544
546
546
546
541
541
536
537
536
532
4,987
4,985
4,991
•\ 001
5,007
5,009
5,001
5,000
5, 014
5,019
5,028
5,019
6,556
6,570
6,631
6,600
6,625
6,800
6,797
6,786
6, 667
6,884
6, 924
7,055
119
121
122
120
122
122
127
128
129
128
127
128
635
623
605
599
600
624
615
616
627
623
629
655
3,719
3,726
3.719
3,723
3, 715
3,715
3, 715
3, 715
3,718
3, 718
3, 721
3,722
108
116
116
114
110
85
60
59
587
583
578
580
589
2,443
2. 661
2,639
2,743
2,785
2,814
2,845
2,928
495
517
561
560
529
540
1,478
1,479
1,484
1,483
1,483
1,488
1,488
1, 479
579
575
579
583
584
587
587
586
596
597
603
594
2,830
2, 803
2,836
2,850
2,891
2,940
2,940
2,941
2,892
2,987
2, 983
3,074
553
545
528
521
521
541
532
540
546
545
550
575
1,490
1,492
1,488
1,490
1,483
1,477
1,478
1,479
1,480
1,481
1,483
1,482
16, 808
16,899
17, 271
238
237
227
230
223
214
217
217
218
218
217
220
NEW YORK CITY
1938—July
1939—January...
February..
March
April
May
June
July
3,380
4,208
4,288
4,309
4,651
4,895
4,866
4,995
6,236
6,730
6,844
6,966
7,287
7,467
7,608
7,660
6,559
7,085
7,209
7,075
242
7, 348
257
7,495
304
7,636
280
225
7,773
279
285
299
395
268
274
269
231
1939—May 31_.
June 7...
June 14_.
June 21..
June 28..
July 5.__
July 12. _
July 19__
July 26^.
Aug. 2___
Aug. 9___
Aug. 16..
4,976
4,842
4,870
4,886
4,864
4,881
4,985
5,044
5,072
4,953
5, 005
5,145
7,614
7,590
7,624
7,640
7,578
7,524
7,656
7,655
7,804
7,715
7,791
7,875
7,668
7,574
7,684
7,644
7,643
7,706
7,759
7,764
7,864
7,701
7,760
7, 958
344
292
260
299
268
203
224
214
258
343
306
291
290
316
307
231
222
294
214
218
199
361
210
291
648
613
621
OUTSIDE
NEW YORK CITY
1938—July
1939—January...
February..
March
April
May
June
July
May 31_.
June 7...
June 14_.
June 21..
June 28..
July 5...
July 12..
July 19__
July 26
Aug. 2...
Aug. 9__.
Aug. 16..
3,295
3,229
3,070
3,118
3,322
3,466
3,594
3,650
351
382
358
358
368
367
380
383
2,361
2,488
2,469
2,486
2, 514
2,567
2,651
2,688
8,785
9,324
9,198
9,066
9,168
9,329
9,574
9,706
9,341
9,935
9,788
8,563 1,085
8,652 1,115
8,764 1,148
8,997 1,190
9,235 1,092
164
178
162
165
160
167
150
175
344
515
515
511
510
496
485
482
4,550
4,548
4,549
186
4,389
192
4,391
209
4,406
188
4,416
172
4,417
3,378
3,555
3,536
3,652
3,688
3,716
3,762
3,835
115
111
113
116
116
118
121
127
2,106
2,198
2,204
2,212
2,224
2,233
2,237
3,473
3,575
3,600
3,589
3,615
3,592
3,664
3,662
3, 678
3,731
3,786
3,772
367
376
385
373
387
372
397
377
385
362
384
366
2,620
2,593
2,658
2,673
2,679
2,683
2,713
2,691
2,667
2,720
2,704
2,766
9,351
9,467
9,588
9,598
9,642
9,585
9,712
9,732
9,797
9,747
9,760
9,766
8,796
8,816
9,086
9,008
9,077
9,084
9,302
9,286
9,268
9,207
9,139
9,313
188
157
117
155
169
194
171
171
164
171
159
170
485
483
484
486
486
484
480
482
480
482
484
482
4,408
4,410
4,412
4,418
4,423
4,422
4,414
4,414
4,418
4,422
4, 425
4,425
3,726
3,767
3,795
3,750
3,734
3,860
3,857
3,845
3,775
3,897
3,941
3,981
119
121
122
120
122
122
127
128
129
128
127
128
2,229
2,234
2,231
2,233
2,232
2,238
2,237
2,236
2,238
2,237
2,238
2,240
1,154
1,204
1,219
1,189
1,149
1,128
1,086
1,061
1,094
1,149
1,132
1,108
200
196
186
190
182
173
174
171
171
169
1P7
170
ia Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection
U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
2,167
794
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued
[In millions of dollars]
Loans
Federal Reserve
district and date '
(1939)
Total
loans
and
investments
Total
Commercial,
inOpen
dus- martrial,
ket
and paper
agricultural
Investments
Loans for
purchasing
or carrying
securities
To
brokers
To
and
others
dealers
U . S. G o v e r n m e n t obligations
Direct
Real Loans
to
Other Total
estate
loans banks loans
Guar-
anTotal
Bills
Notes Bonds
Other
securities
teed
BOSTON (6 cities)
July 26
August 2
August 9
August 16
1,163
1,166
1,169
1,169
584
586
589
267
270
276
275
63
62
62
61
24
24
22
22
22
22
81
81
81
81
123
124
123
124
579
580
580
581
400
397
395
396
9,005
9,136
9,162
9,216
3,150
3,160
3,163
3,201
1,520
1,546
1,573
1, 579
126
124
122
125
528
506
489
530
247
245
245
243
202
203
203
205
467
472
467
469
5,855
5,976
5,999
6,015
3,393
3,430
3,443
3,452
1,131
1,147
1,154
1,156
416
420
419
417
186
189
189
26
26
26
26
21
21
21
20
32
32
31
31
54
55
54
55
96
96
97
96
715
727
735
739
352
353
358
358
1,893
1,902
1,904
1,912
668
672
673
678
240
244
248
250
23
24
21
24
26
26
26
26
170
170
171
171
200
198
197
197
1,225
1,230
1, 231
1, 234
829
830
832
832
676
673
245
246
246
245
105
105
105
105
5
4
4
4
15
15
15
15
37
37
38
37
73
73
72
72
431
431
431
428
315
315
315
312
594
581
580
579
305
289
285
282
175
157
154
153
12
12
12
11
30
31
31
31
289
292
295
297
141
141
141
142
3,239
3,194
3,194
3,202
878
854
853
852
503
479
483
480
103
103
104
104
115
114
2,361
2,340
2,341
2,350
693
694
690
683
315
318
314
308
188
189
185
178
50
51
51
51
52
52
51
52
378
377
376
376
160
158
157
158
78
78
78
7
7
7
7
661
661
661
664
275
271
271
272
165
160
161
162
512
513
510
507
256
254
251
250
2,190
2,196
2,197
2, 200
2,141
2,111
2,112
2,117
57
1
57
62
62
343
340
333
333
48
54
55
55
131
129
130
130
147
194
206
220
867
868
885
884
2,379
2,368
2,352
2,348
1,186
1,210
1,218
1,222
1,276
1,336
1,338
1,341
39
39
39
39
313
314
319
319
97
98
99
98
266
276
278
283
220
220
220
221
595
596
598
597
106
111
111
112
290
289
288
290
178
178
177
177
137
137
138
135
51
51
51
51
65
65
65
65
8
8
8
8
33
32
32
32
100
101
101
102
59
62
65
65
89
89
90
1,611
1,575
1,575
1,579
251
212
210
211
430
428
430
430
930
935
935
938
267
283
283
287
483
482
483
484
378
376
376
375
210
207
207
207
6
4
3
3
50
49
49
49
154
154
155
155
66
67
67
67
102
102
102
101
61
61
60
61
218
219
219
218
148
149
148
148
34
34
34
34
114
115
114
114
26
27
28
27
44
43
43
43
25
25
25
25
51
52
51
52
386
390
390
392
197
196
195
197
6
6
5
5
78
76
78
81
113
114
112
111
56
60
61
61
133
134
143
134
170
168
164
163
21
21
21
21
45
46
46
46
256
259
259
257
158
160
159
158
29
31
30
29
51
51
50
51
78
78
79
78
43
44
45
45
55
55
55
54
942
938
935
935
301
302
301
301
385
384
384
384
179
177
176
175
1,248
1,258
1,262
1,265
760
762
762
763
4
4
4
4
100
100
99
99
656
658
659
660
163
174
176
177
325
322
324
325
547
540
538
539
357
351
355
352
14
14
14
14
50
50
50
50
1,594
1,571
1,574
1,578
243
206
205
206
242
240
242
243
646
650
651
653
137
150
149
149
326
325
327
327
NEW YORK (8 cities)*
July 26
August 2
August 9
August 16
PHILADELPHIA (4 cities)
July 26
August 2
August 9
August 16
CLEVELAND (10 cities)
July 26
August 2
August 9
August 16
14
14
14
14
RICHMOND (12 cities)
July 26
August 2
August 9
August 16
ATLANTA (8 cities)
July 26
August 2
August 9
August 16
CHICAGO (12 cities)*
July 26
August 2
August 9
August 16
ST. LOUIS (5 cities)
July 26
August 2
August 9
August 16
MINNEAPOLIS (8 cities)
July 26
August 2
August 9
August 16
KANSAS CITY (12 cities)
July 26
August 2
August 9
August 16
DALLAS (9 cities)
July 26
August 2
August 9
August 16
SAN FRANCISCO (7 cities)
July 26
August 2
August 9
August 16
CITY OF CHICAGO*
July 26
August 2
August 9
August 16
1,131
1,096
1,098
1, 102
* Separate figures for New York City are shown in the immediately preceding table, and for the city of Chicago in this table.
the New York and Chicago districts, as shown in this table, include New York City and Chicago, respectively.
T h e figures for
795
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONDITION OF REPORTING MEMBER BANKS IN 101 LEADING CITIES—Continued
[In millions of dollars]
Federal Reserve
district and date
(1939)
Reserves
with
Fed- Cash
in
eral
vault
Reserve
banks
BalDeances mand
with
dedoposits
mestic ad- 1
banks justed
Individ- States Certiuals,
and
fied
part- polit- and
nerical
offiships, subcers'
and
divi- checks,
cor- sions
etc.
porations
Interbank
deposits
Time deposits,
except interbank
D e m a n d deposits,
except interbank
IndiDomestic
vid- States
banks
uals,
and
U. S. part- polit- Postal
ForGov- nerical
saveign
ern- ships, subings2
banks
ment 2 and
diviDecor- sions
mand Time
porations
Borrowings
Capital
accounts
BOSTON (6 cities)
July 26
August 2
August 9
August 16
423
412
415
401
141
139
140
139
156
171
155
150
1,120
1,123
1,118
1,097
1,076
1,086
1,072
1,067
87
87
83
80
5,216
5,099
5,152
5,291
81
78
80
77
180
180
178
178
8,343
8,267
8,347
8,426
8,321
8,166
8,210
8,412
356
451
423
412
356
362
370
373
17
16
17
16
198
188
187
841
844
828
851
245
245
245
245
287
292
288
287
25
24
24
25
243
243
243
244
963
964
970
961
2,964
3,058
3,052
3,145
548
547
552
577
1,603
1,604
1,606
1,605
65
105
105
94
276
277
277
275
338
336
341
347
14
13
14
13
222
223
223
223
NEW YORK (8 cities)*
July 26
August 2
August 9
August 16
232
307
PHILADELPHIA (4 Cities)
July 26
August 2
August 9
August 16
CLEVELAND (10 cities)
July 26
August 2
August 9
August 16
462
455
444
450
277
281
275
274
1,230
1,227
1,216
1,220
1,186
1,175
1,153
1,176
108
113
112
123
709
710
711
711
346
350
347
352
372
371
371
371
161
163
169
170
171
171
170
180
462
458
465
465
442
439
442
449
51
55
53
54
197
197
197
197
242
247
250
256
96
96
96
116
135
139
137
172
177
186
199
381
379
383
385
353
354
355
365
63
64
65
40
39
39
39
177
178
179
179
230
243
251
254
93
93
92
93
1,100
1,142
1,167
1,164
490
499
499
2,520
2,453
2,459
2,464
2,327
2,271
2,264
2,301
323
311
305
297
104
105
105
104
909
910
911
975
1,043
1,065
1,077
402
402
402
402
188
179
184
148
158
161
166
461
456
457
460
464
456
457
467
37
39
38
36
20
20
20
20
285
292
294
292
93
94
94
120
124
127
127
293
290
91
90
246
246
246
250
173
183
188
181
299
301
317
505
499
509
519
119
127
125
124
246
240
246
260
349
338
347
348
857
893
922
923
RICHMOND (12 cities)
July 26
August 2
August 9
August 16
ATLANTA (8 cities)
July 26
August 2
August 9
August 16
CHICAGO (12 cities)*
July 26
August 2
August 9
August 16
ST. LOUIS (5 cities)
July 26
August 2
August 9
August 16
MINNEAPOLIS (8 cities)
July 26
August 2
August 9
August 16
KANSAS CITY (12 cities)
July 26
August 2
August 9
August 16
DALLAS (9 cities)
July 26
August 2
August 9
August 16
SAN FRANCISCO (7 cities)
July 26
August 2
August 9
August 16
CITY OF CHICAGO*
July 26
August 2
August 9
August 16
2
2
2
2
492
488
487
506
63
59
67
70
72
69
187
187
187
187
118
119
119
119
22
22
22
22
140
140
140
140
388
401
402
403
101
101
101
101
456
453
448
456
432
430
430
449
48
49
42
41
30
30
32
32
128
127
127
127
207
213
217
218
85
85
85
85
295
291
292
973
971
976
980
952
953
955
978
78
82
77
74
106
107
106
106
966
966
966
967
278
275
277
285
350
349
350
350
225
231
221
226
1,716
1, 680
1,682
1,686
1,606
1,575
1,575
1,597
190
186
179
175
60
60
60
60
475
476
477
478
740
788
810
815
265
266
266
265
127
134
140
139
*1 See note on preceding page.
Demand deposits other than interbank and U. S. Government, less cash items reported as in process of collection.
2
U. S. Treasurer's time deposits, open account, are combined with postal savings (time) deposits.
58
• 58
58
58
796
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
COMMERCIAL PAPER, ACCEPTANCES, AND BROKERS' BALANCES
COMMERCIAL PAPER AND BANKERS' ACCEPTANCES OUTSTANDING
[In millions of dollars]
Dollar acceptances outstanding
B y holders
Total
outstand-
ing i
ing
Own
bills
Total
B y classes
Held by Federal
Reserve banks
Held b y accepting
banks
Bills
bought
1938—July
August
September
October
November
December
211
209
212
213
206
187
265
258
261
270
273
270
217
216
221
223
222
212
133
129
129
130
124
121
84
87
92
93
98
91
1939—January
February
March
April
May
June
July
195
195
191
192
189
181
194
255
248
245
238
247
245
236
204
198
191
189
192
191
188
122
122
117
118
124
122
119
82
76
74
72
68
69
69
Based
on exports
from
U. S.
Dollar
exchange
47
42
40
46
51
58
78
83
89
94
94
95
63
58
57
57
59
60
1
2
2
3
3
3
60
55
56
59
59
57
63
60
57
56
57
56
52
50
54
49
55
53
48
89
87
87
86
82
81
75
57
57
58
56
51
45
41
52
48
42
38
36
39
39
55
54
56
57
59
60
61
For ac- Held
count of
by
For
foreign others
own ac- correcount spondents
1
(2)
Based on goods
stored in or shipped
between points in
Based
on
imports
into
U. S.
-• to to to
End of month
Commercial
paper
outstand-
U. S.
19
20
19
Foreign
countries
1
As reported by dealers; includes some finance company paper sold in open market.
2 Less than $500,000.
Back figures.—See Annual Report for 1937 (table 70).
CUSTOMERS' DEBIT BALANCES, MONEY BORROWED, AND PRINCIPAL RELATED ITEMS OF
STOCK EXCHANGE FIRMS CARRYING MARGIN ACCOUNTS
[Member firms of New York Stock Exchange. Ledger balances in millions of dollars]
Credit balances
Debit balances
Customers'
credit balances 1
Other credit balances
and trading
accounts
Debit
balances in
firm
investment
and trading
accounts
Cash on
hand
and in
banks
1,549
1,489
1,363
985
61
55
48
34
175
161
128
108
223
214
239
232
1,172
1,217
1,088
688
346
266
256
278
115
92
S6
85
29
25
26
26
18
13
12
10
419
397
385
355
1938—March
June
July
August
September.. . _
October
November
December .
831
774
843
864
823
905
939
991
29
27
28
29
29
32
30
32
95
88
80
84
76
85
78
106
215
215
209
2C0
213
196
189
ISO
576
495
528
571
559
617
662
754
239
258
284
272
257
270
252
247
81
89
82
77
68
73
65
60
25
22
22
20
20
20
20
22
9
11
10
9
7
8
8
5
315
298
303
301
300
304
303
305
1939—January
February..
March
April
..
May
June. .
July
971
967
953
831
828
834
839
34
29
27
26
26
25
24
75
83
84
83
76
73
84
192
168
174
190
183
178
183
713
709
699
579
561
570
589
235
222
225
236
230
230
238
60
62
59
60
69
70
67
22
20
20
20
21
21
20
12
5
9
7
6
6
6
298
294
294
290
284
280
278
End of month
Debit
Customers' balances in
partners'
debit
investment
balances
(net) i
1937—March
June
September
December
Money
borrowed 2
Free
Other
(net)
In
In
partners'
firm
investinvestm e n t a n d m e n t and
trading
trading
accounts accounts
In
capital
accounts
(net)
1 Excluding balances with reporting firms (1) of member firms of New York Stock Exchange and other national securities exchanges and (2)
of firms'
own partners.
2
Includes both money borrowed from banks and trust companies in New York City and elsewhere in the United States and also money borrowed from other lenders (not including member firms of national securities exchanges).
NOTE.— For explanation of these figures see "Statistics on Margin Accounts" in BULLETIN for September 1936. The article describes the methods
by which the figures are derived and reported, distinguishes the table from a "statement of financial condition," and explains that the last column
is not to be taken as representing the actual net capital of the reporting firms.
Back figures—See BULLETIN for March 1938, p. 196, and (for data in detail) Annual Report for 1937 (table 69).
797
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
FEDERAL RESERVE BANK DISCOUNT RATES
[Per cent per annum]
Advances secured by
direct obligations of
the United States
(last paragraph of
sec. 13 of the Federal
Reserve Act)
Advances under sec.
10(b) of the Federal
Reserve Act
Rediscounts and advances under sees. 13 and 13a of the Federal Reserve Act 1
Federal Reserve Bank
Rate
Aug.
24
Boston
New York
Philadelphia
Cleveland
Richmond . .
Atlanta
Chicago
St Louis
Minneapolis
Kansas City
Dallas
San Francisco
_ .
1
. __
__ __ _. -
...
.
. .
. ___ .
. . _ ._
.-.
. .-
In effect
beginningSept.
Aug.
Sept.
May
Aug.
Aug.
Aug.
Sept.
Aug.
Sept.
Aug.
Sept.
2, 1937
27, 1937
4, 1937
11, 1935
27, 1937
21, 1937
21, 1937
2, 1937
24, 1937
3, 1937
31, 1937
3, 1937
Previous
rate
Rate
Aug.
24
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
Rate
Aug.
24
In effect
beginning—
Sept.
Oct.
Sept.
Oct.
Sept.
Aug.
Aug.
Sept.
Aug.
Sept.
Aug.
Sept.
2, 1937
10, 1935
4, 1937
19, 1935
10, 1937
21, 1937
21, 1937
2, 1937
24, 1937
3, 1937
31, 1937
17, 1937
4
4
4
4
3
2V0
4
In effect
beginningApril
Feb.
Oct.
May
Feb.
April
Oct.
Feb.
Oct.
Apr.
Apr.
Oct.
29, 1938
8, 1934
20, 1933
11, 1935
19, 1934
23, 1938
16, 1933
23, 1935
8, 1938
16, 1938
16, 1938
19, 1933
i Rates indicated also apply to United States Government securities bought under repurchase agreement.
Back figures.—See Annual Report for 1937 (table 40).
FEDERAL RESERVE BANK
BUYING RATES ON ACCEPTANCES
FEDERAL RESERVE BANK
RATES ON INDUSTRIAL ADVANCES
[Per cent per annum]
Rates in effect, August 24, 1939, on advances and commitments under
Sec. 13b, of the Federal Reserve Act as amended June 19, 1934.
[Per cent per annum except as otherwise specified]
Rate in
effect on
Aug. 24
Maturity
1-15 days 1 . _ .
16-30 days.__.
31-45 d a y s . . . .
46-60 d a y s . . . .
61-90 days
91-120 days...
121-180 days..
In effect beginning—
Previous
rate
Oct. 20, 1933
.do.
.do..
.do.,
.do.,
.do..
_do_.
Federal Reserve Bank
1
This rate also applies to acceptances bought under repurchase agreements, which agreements are always for a period of 15 days or less.
NOTE.—Minimum buying rates at the Federal Reserve Bank of
New York on prime bankers' acceptances payable in dollars; higher
rates may be charged for other classes of bills. The same minimum
rates apply to purchases, if any, made by other Federal Reserve banks.
Back figures.—See Annual Report for 1937 (table 41).
Maximum rates that may be paid by member banks as established by
the Board of Governors under provisions of Regulation Q.
[Per cent pe r annum]
Savings deposits
.
Postal Savings deposits
Other time deposits payable in:
6 months or more
90 days to 6 months
Less than 90 days
Richmond
Atlanta
Chicago
St. Louis.
.
...
Minneapolis
Kansas City
Dallas
San Francisco
MAXIMUM RATES ON TIME DEPOSITS
Nov. 1, 1933 Feb. 1, 1935
to
to
Jan. 31 1935 Dec. 31, 1935
Boston
_
New York
Philadelphia
Cleveland
In effect
beginning
Jan. 1, 1936
3
3
2M
2H
2H
VA
3
3
3
2V2
VA
VA
2
1
Advances to financing institutions—
Advances
direct to
Commitindustrial On porments
to make
or comtion for
mercial or- which
On re- advances
ganizations institu- maining
portion
tion is
obligated
3
3H-6
3
4-6
4-6
6
5-6
5-6
4-6
5
4-5H
6
4-6
5-6
5-6
2
4
4
3-4
3H
4-5
K-l
1-2
4
1
4-6
5
5-6
4
1-2
1-2
1
4
5-6
4-5
1
1
2
3
Authorized rate 1 per cent above prevailing discount rate.
Same as to borrower but not less than 4 per cent.
Flat charge.
Back figures.—See Annual Report for 1937 (table 40).
MEMBER BANK RESERVE REQUIREMENTS
[Per cent of deposits]
Classes of deposits
and banks
On net demand
deposits: i
Central reserve city..
Reserve city
Country
June 21, Aug. 16, Mar. 1, May 1, Apr. 16,
19371917193619371938Aug. 15, Feb. 28, Apr. 30, Apr. 15,
and
1936
after
1937
1938
1937
NOTE.—Maximum rates that may be paid by insured nonmember
banks as established by the Federal Deposit Insurance Corporation, On time deposits:
effective February 1, 1936, are the same as those in effect for member
All member banks. __
banks. In some States the maximum rates established by the Board
1
and the Federal Deposit Insurance Corporation are superseded by
See footnote to table on p. 786 for explanation of method of computlower maximum rates established by State authority.
ing net demand deposits.
798
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
MONEY RATES AND BOND YIELDS
OPEN-MARKET RATES IN NEW YORK CITY
[Per cent per annum]
Prevailing rate on—
RATES CHARGED CUSTOMERS BY BANKS IN
PRINCIPAL CITIES
[Weighted averages of prevailing rates; per cent per annum]
Average rate on—
Average
U. S. TreasNew York City:
ury bills
yield on
Year,
Prime Stock Stock
January
...
month, or
exU. S.
Prime bank- exFebruary
comweek
Treasers' change change
March
New
91ury
mercial accept- time
call
April
paper, ances, loans, loan issues d a y
3-to-5
May
90
90
of4 to 6
redealyear
June..
notes
months days days new- fered ers'
July
als
within quoAugust
period1 tation
September
October..
November
.75
.15
.143
1936 average.._
1.16
.91
.17
1.11
December
.
.95
.43
.28
1937 average___
1.25
1.00
.447
1.40
.81
.44
.07
.83 Other northern and
1938 average...
1.25
1.00
.053
eastern cities:
7/16
1938—July
.053
1.00
.07
.70
H
IX
January _ __ _
7/16
047
06
71
Aug.
1
00
IX
February
%
5 Z
7/16
.096
Sept
.08
.82
1.00
IX
AK
5
March
_ _
7/16
.05
.68
Oct
IX
1.00
.023
A~K
April
_ ...
7/16
.04
.71
Nov
IX
1.00
.024
M
a
y
7/16
.03
.67
Dec
134
1.00
.007
June
July
l
7/16
1939—Jan
.002
.03
1.00
.65
A-hA
IX
August
7/16
.03
.63
Feb
1.00
.004
M-*A
IX
September
5
7/16
.03
.51
V2A
IX
1.00
.005
Mar
October
7/16
April.... xA-hA
.03
.50
IX
1.00
.019
November
7/16
May
.03
.42
1.00
.006
IX
X-*A
December ,_ _.
7/16
.03
.39
Y2~5A
June
1.00
.006
IX
7/16
.04
.45 27 southern and
July
1.00
.017
V2-H
IX
western cities:
Week ending:
January
7/16
.04
.44
July 22..__ H-*A
IX
1.00
.019
February
7/16
.04
.43
July 29
Yi-y%
IK
1.00
.022
March. . _ _._
7/16
.04
.42
Aug. 5
IX
1.00
.032
April
7/16
.04
.43
Aug. 12....
1.00
.032
IX
M a y . . . __ __ _
7/U
.04
.43
Aug. 19
IK
1.00
.042
June
July
August
i Series comprises 273-day bills to October 15, 1937, bills maturing
September
about March 16, 1938, from October 22, to December 10, 1937, and 91-day
October
bills thereafter.
November
Back figures—See Annual Report for 1937 (tables 43 and 44). Figures
December
for 91-day Treasury bills available on request.
%-k
%
1929 1932 1933 1934 1935 1936 1937 1938 1939
5.74
5.73
5.81
5.58
5.88
5.93
5.88
6.05
6.06
6.08
5.86
5.74
4.71
4.71
4.72
4.69
4.55
4.61
4.42
4.45
4.30
4.35
4.12
4.22
4.12
4.11
4.88
4.33
4.24
4.10
3.93
3.97
3.79
3.76
3 52
3.48
3.58
3.43
3.31
3.39
3.42
3.30
3.30
3.33
3.26
3.28
3.22
3.18
2.83
2.90
2.64
2.61
2.69
2.66
2.61
2.67
2.72
2.72
2 77
2.61
2.64
2.56
2.61
2.54
2.51
2.44
2.44
2.42
2.40
2.46
2.43
2.43
2.50
2.41
2.50
2.53
2.44
2.34
2.36
2.41
2.39
2.38
2.45
2.40
2.36
2.34
2.40
2.36
2.40
2.36
2.27
2.16
2.25
2.29
5.87
5.86
5.91
6.00
6.09
6.02
6.08
6.11
6 24
6.25
6.12
5.94
5.07
5.13
5.14
5.10
5.14
5.13
5.05
5.12
5 03
4.96
4.88
4.88
4.89
4.84
5.39
5.09
4.99
4.97
4.82
4.68
4 65
4.51
4.54
4.59
4.65
4.49
4.52
4.52
4.39
4.30
4.15
4.12
4 11
4.13
4.08
3.98
4.08
4.02
4.05
3.99
3.88
3.78
3.87
3.79
3 75
3.75
3.63
3.67
3.62
3.63
3.60
3.47
3.45
3.51
3.61
3.47
3 45
3.50
3.47
3.46
3.36
3.43
3.34
3.36
3.45
3^32
3.29
3 33
3.37
3.42
3.36
3.37 3.41
3.29 3.33
3.25 0)
3.26
3.27
3.38
3.28
3.26
3 30
3.37
3.28
3.47
5.94
5.96
6.04
6.07
6.10
6.16
6.17
6 22
6.27
6.29
6.29
6.20
5.61
5.61
5.64
5.63
5.64
5.62
5.63
5 68
5.63
5.56
5.55
5.60
5.60
5.56
5.66
5.68
5.66
5.62
5.54
5 53
5.55
5.50
5.42
5.43
5.40
5.39
5.40
5.34
5.28
5.19
5.07
5 05
5.04
5.05
4.93
4.92
4.95
4.84
4.85
4.80
4.79
4.76
4.58
4 63
4.51
4.55
4.51
4.55
4.47
4.51
4.44
4.40
4.43
4.39
4.35
4 25
4.29
4.23
4.24
4.14
4.16
4.15
4.15
4.21
4.17
4.18
4.19
4 18
4.18
4.16
4.17
4.15
4.16
4.09
4.15
4.13
4.13
4.14
4.12
4 12
4.07
4.06
4.05
4.04
2.29
2.24
0)
—
2.33
4.10
4.09
0)
—
—
1 Series discontinued. New revised series on somewhat different basis
to be substituted.
BOND YIELDS1
[Per cent per annum]
Corporate *
U.S.
Treas-
Year, month, or week
Number of issues
1936 average
1937 average
1938 average
1938—July
August
September .
October
November
December
1939—January
February __
March
April
May
June
..
July.
.
. .
_.
_
Week ending:
July 29
Aug. 5
Aug. 12
Aug. 19
1
__
_ _ ._ __ _
Municipal 3
By ratings
Total
Aaa
Aa
By groups
Industrial
Baa
A
Railroad
Public
utility
2-6
15
120
30
30
30
30
40
40
40
2.65
2.68
2.56
3.07
3.10
2.91
3 87
3.94
4.19
3.24
3.26
3.19
3 46
3.46
3.56
4 02
4.01
4.22
4.77
5.03
5.80
3 50
3.55
3.50
4 24
4.34
5.21
3 88
3.93
3.87
2.52
2.51
2.58
2.48
2.50
2.49
2.47
2.44
2.34
2.30
2.17
2.13
2.16
2.87
2.82
3.02
2.82
2.74
2.75
2.70
2.70
2.67
2.75
2.66
2.63
2.65
4.17
4.09
4.17
4.03
3 95
3.95
3.86
3 81
3.74
3 84
3.78
3.71
3.66
3.22
3.18
3.21
3.15
3 10
3.08
3.01
3.00
2.99
3 02
2.97
2.92
2.89
3.62
3.57
3 60
3.53
3 46
3.42
3.32
3 26
3.22
3 22
3.16
3.13
3.08
4.21
4.13
4.20
4.08
4 02
4.02
3.97
3.94
3.87
3 97
3.92
3.86
3.83
5.63
5.49
5.65
5.36
5 23
5.27
5.12
5.05
4.89
5 15
5.07
4.91
4.84
3.48
3.43
3 50
3.43
3 39
3.40
3.31
3 29
3.29
3 35
3.30
3.23
3.18
5.25
5.09
5 18
4.94
4 83
4.82
4.70
4 63
4.46
4 66
4.60
4.47
4.42
3.79
3.76
3 82
3.73
3 65
3.63
3.57
3 52
3.48
3 51
3.45
3.42
3.39
2.14
2 14
2.17
2.17
2.64
2 65
2.66
2.69
3.63
3 62
3.63
3.65
2.90
2 90
2.91
2.92
3.06
3 06
3.07
3.09
3.79
3 78
3.79
3.78
4.79
4.78
4.79
4.82
3.17
3 17
3.17
3.18
4.37
4 35
4.37
4.39
3.38
3 38
3.39
3.39
.
Monthly and weekly data are averages of daily figures, except for municipal bonds, which are based on Wednesday figures.
2 Average of yields of all outstanding bonds due or callable after 12 years; see BULLETIN for December 1938, pp. 1045-1046 for description.
34 Standard Statistics Co.
Moody's Investors Service, week ending Friday. Because of limited number of suitable issues, the industrial Aaa group has been reduced
from 10 to 4, the industrial Aa group from 10 to 3, the industrial A group from 10 to 8, and the railroad Aaa group from 10 to 5.
Back figures—See Annual Report for 1937 (table 80); for U. S. Treasury bonds, see pp. 1045-1046 of BULLETIN for December 1938.
SEPTEMBER
799
FEDERAL RESERVE BULLETIN
1939
STOCK MARKET
BOND PRICES*
Corporate
Year, month, or date
U.S.
Treasury 2
Municipal 3
Total
Number of issues
1936 average.
1937 average
1938 average
Industrial
2-6
15
60
20
103.7
101.7
103.4
110.8
110.3
113.7
97.5
93.4
78.9
92.2
90.1
82.9
Stock prices 1
3
Railroad Utility
20
20
58.6
105.4
100.4
95.3
Year, month, or
date
C o m m o n (index, 1926—100)
Preferred 2
Number of issues
Industrial
420
348
111
112
83
127
131
Railroad Utility
32
40
1,824
1,519
97.3
1,100
98.1
96.3
135.6
1,762
105
77
98.6 1938—July.
138.1
August.
108
75
843
99.3
137.9
72
September
104
1,054
98.7
77
140.4
October
110
1,889
99.7
81
142.3
November
114
1,355
100.7
78
141.7
111
1,195
December
101.3
81
141.7
109
1,114
99.7 1939—January
84
141.8
106
February
708
101.0
142.3
108
March
999
101.6
140.4
96
April.
964
102.1
141.8
97
548
May
143.9
101
507
July 26
_
109.2
118.4
June
82.3
57.8
102.5
143.7
101
821
Aug. 2
109.2
118.2
82.4
57.6
102.8
July
108.8
118.0
56.8
102.2
Aug. 9
81.8
56.2
102.1
143.3
108.8
117.5
105
Aug. 16
81.5
July 26
143.5
790
105
Aug. 2
573
142.9
102
Aug. 9
632
142.9
100
Aug. 16
i M o n t h l y d a t a are averages of daily figures except for m u n i c i p a l b o n d s ,
w h i c h are averages of W e d n e s d a y figures.
3
Average prices of all o u t s t a n d i n g b o n d s d u e or callable after 12 years,
1 S t a n d a r d Statistics C o . M o n t h l y d a t a are averages of W e d n e s d a y
based on q u o t a t i o n s from T r e a s u r y D e p a r t m e n t ; see B U L L E T I N for
D e c e m b e r 1938, p p . 1045-1046 for description. Prices expressed in figures.
2
decimals. Figure for J u l y 5, should b e revised to 108.4.
Average prices of industrial high-grade preferred stocks, adjusted to a
8
Prices derived from average yields, as c o m p u t e d b y S t a n d a r d Sta- $7 a n n u a l d i v i d e n d basis.
3
Average daily v o l u m e of t r a d i n g in stocks on t h e N e w Y o r k Stock
tistics C o .
Back figures.—See A n n u a l R e p o r t for 1937 (table 79); for U . S. T r e a s u r y Exchange, i n t h o u s a n d s of shares. W e e k l y figures are averages for t h e
week ending S a t u r d a y .
b o n d s , see p p . 1045-1046 of B U L L E T I N for D e c e m b e r 1938.
Back figures.—For stock prices, see A n n u a l R e p o r t for 1937 (table 79).
1938—July
August
September
October
November
December
1939—January
February
March
April
May
June
July
103.8
104.0
103.0
104.3
104.0
104.1
104.4
104.8
106.0
106.6
108.3
109.1
108.9
114.2
115.2
111.7
115.2
116.6
116.5
117.3
117.3
117.9
116.4
118.1
118.6
118.3
80.8
81.3
78.7
81.8
82.1
81.1
81.9
82.1
83.1
79.4
80.2
81.4
81.6
85.0
85.7
84.2
86.8
86.9
86.0
86.2
86.4
87.1
83.8
84.8
86.2
138.9
136.2
135.6
Total
Volume of
trading 3
1936 average
1937 average
1938 average
60.2
60.0
55.7
59.9
60.2
58.6
59.7
59.0
60.9
54.5
54.8
56.2
56.4
104
95
73
CAPITAL ISSUES
[In millions of dollars]
For refunding
For new capital
Total
Year or
month
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
.
1938—July
Aug
Sept
Oct
Nov
Dec
1939—Jan
Feb
Mar
Apr.. _.
May
June
July
(new
and
refunding)
11,513
7,619
4,038
1,751
1,063
2,160
4,699
6,214
3,937
4,461
470
417
238
766
386
529
257
561
240
356
1,312
605
586
Domestic
Domestic
Total
(domestic
and
Total
foreign)
State
10,093 9,420
6,912 6,004
••3, 095 2,860
1,197 1,165
720
708
1,386 1,386
1,457 1,409
1,972 1,949
2,138 2,094
2,359 2,323
391
182
146
167
226
241
200
398
162
143
117
293
318
390
182
146
167
196
241
200
378
162
142
117
283
318
Corporate
Total
(domestic
and
forTotal
eign)
State
Federal
agencies 2
Total
Bonds
and
Stocks
notes
1,418
1,434
1,235
762
483
803
855
735
712
971
0
87
75
77
64
405
150
22
157
481
8,002
4,483
1,551
325
161
178
404
1,192
1,225
872
2,078
2,980
1,239
305
40
144
334
839
817
807
5,924
1,503
311
20
120
35
69
352
408
65
673
908
'235
32
12
0
48
23
44
35
1,420
706
'944
554
343
774
3,242
4,242
1,799
2,102
1,387
527
893
498
283
765
3,216
4,123
1,680
2,075
43
55
53
103
152
126
76
44
105
63
94
253
66
216
0
8
0
0
55
118
310
4
2
2
0
203
130
127
85
64
43
60
6
24
53
77
21
30
49
128
123
83
62
37
44
5
17
43
47
18
22
40
2
4
2
2
6
16
1
7
10
31
3
9
9
1
0
0
0
31
0
0
20
0
(3)
0
10
0
79
236
92
599
160
288
57
163
78
213
1,195
312
268
79
236
92
599
135
286
57
163
75
161
1,180
312
268
and
municipal
Foreign i
Corporate
Federal
agencies 2
Total
Bonds
and
Stocks
notes
13
53
21
87
37
136
365
382
191
129
0
0
51
93
26
317
987
353
281
665
1,374
474
821
319
219
312
1,864
3,387
1,209
1,280
542
451
789
315
187
312
1,782
3,187
856
1,249
3
11
22
2
6
15
27
10
13
11
7
39
18
20
14
6
323
22
20
19
17
15
21
1,021
21
74
56
211
65
274
108
250
10
136
47
129
151
252
177
56
211
65
274
89
240
10
101
46
106
131
249
137
and
municipal
Foreign*
833
23
32
4
32
0
81
200
352
31
33
179
>"51
56
60
9
26
119
119
28
0
0
0
0
0
0
0
25
3
0
0
3
53
16
0
(3)
1
18
11
(3)
35
(3)
23
20
2
39
r
Revised.
Includes issues of noncontiguous U . S. Territories a n d Possessions.
2 Includes publicly-offered issues of Federal credit agencies, b u t excludes direct obligations of U . S. T r e a s u r y .
3 Less t h a n $500,000.
Source.—For domestic issues, Commercial a n d Financial Chronicle; for foreign issues, U . S. D e p a r t m e n t of Commerce.
to revision.
Back figures—See Annual R e p o r t for 1937 (table 78).
1
M o n t h l y figures subject
800
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
TREASURY FINANCE
UNITED STATES GOVERNMENT DEBT
VOLUME AND KIND OF DIRECT OBLIGATIONS
I On basis of daily statements of United States Treasury. In millions of dollarsl
Noninterestb earing
Interest-hearing
Publicly-offered i
Total
End of month
2TOSS
debt
Bonds
Total
interest
bearing
Total
Prewar
Treas- U. S.
ury* savings
Notes
Bills
616
954
1,404
2, 053
2,354
2, 303
1,154
105
92
118
156
1.071
926
868
1,054
1,304
1
,"02
1,302
1,303
1,306
1,309
1,310
1,311
1,309
1,308
1,308
1,309
864
859
830
826
827
827
826
825
827
826
825
839
833
1932—June
1933—June
1934—June
1935—June
1936—June
1937—June
1938—June
19.487
22 539
27. 053
28 701
33, 779
36, 425
37 165
19,161
22.158
26,480
27,645
32, 989
35, 800
36, 576
n8,816
*21, 782
<26,006
26,910
31, 297
33,734
33, 463
753
753
753
753
79
79
79
13, 460
13,417
15,679
14,019
17, 168
19 936
21 846
62
316
800
1,238
1,261
4,548
6,653
10,023
11,381
10,617
9,147
1938—JulyAugust
September
October
November
December..
1939—January
February
March
April
May
June
July
37 191
37 593
38 393
38,423
38, 603
39, 427
39, 631
39, 859
39. 985
40,063
40, 282
40, 440
40, 661
36 642
37 052
37 850
37 897
38 0f8
38 8P9
39, 097
39, 326
39, 442
39. 525
39, 751
39. 886
40,114
33,400
33. 681
34,493
34, 527
34, 559
35, 327
35, 469
35, 533
35, 579
35, 627
35, 680
35, 715
35, 798
79
79
79
79
79
79
79
79
79
79
79
79
79
21,846
21,846
22, 712
22, 712
22,712
24, 005
24, 005
24, 005
25, 218
25, 218
25,218
25, 218
25, 218
1.275
1, 305
1,334
1,367
l,3<-9
1,442
1,580
1, 643
1, 701
1,751
1,806
1,868
1,949
9. 147
9.147
9,067
9,067
9,067
8,496
8,496
8,496
7, 270
7,270
7. 270
7,243
7,243
_
_
Adjusted
service3
issues
Social
security
issues 4
All
others
Matured
debt
Other
19
579
1,601
240
284
356
580
601
560
644
60
66
54
231
169
119
141
266
315
518
825
620
506
447
1.641
,757
,788
,807
.937
2,002
2,046
2,207
2,257
2,294
2,442
2,511
2,542
738
754
739
736
745
743
756
761
779
780
805
820
941
106
102
106
94
105
101
109
112
125
122
117
142
140
443
440
437
433
431
427
425
421
419
416
414
411
408
1 Excludes postal savings bonds, formerly sold to depositors in the Postal Savings System.
2 Includes Liberty bonds.
Includes adjusted service bonds of 1945 and special issues of adjusted service bonds and of notes to Government Life Insurance Fund series
and 4of certificates to the adjusted service fund.
Includes special issues to old-age reserve account, unemployment trust fund, and railroad retirement account.
5
Includes postal savings bonds and special issues to retirement funds, to Postal Savings System and to Federal Deposit Insurance Corporation.
6
Includes certificates of indebtedness not shown separately: 1932—$2,726,000,000; 1933—$2,108,000,000; 1934—$1,517,000,000.
3
MATURITIES OF PUBLICLY-OFFERED DIRECT
OBLIGATIONS, JULY 31, 1939,
FULLY GUARANTEED OBLIGATIONS, BY AGENCIES »
[In millions of dollars]
fin millions of dollars!
Maturing
Date maturing
or callable
1939—Before Oct. 1
Oct. 1-Dec. 31
1940—Jan. 1-Mar. 31
Apr. 1-June 30
J u l y 1-Sept 30
Oct. 1-Dec. 31
1941
1942
1943___
1944
1945_
1946_.__
1947
1948_
1949
1950
1951...
1952
1953
1954____
1955
1956
1958___
1959
1960
1961..
1963
1965
Total
Bonds
callable !
B o ]i d s
Total
918
928
1,378
738
Bills
Notes
U. S.
Savings
906
402
11
526
1,378
738
737
1,385
1,001
1,050
416
737
2,219
1,001
1,948
416
2,118
1, 844
2,824
2,002
1,326
Other
834
898
2
177
325
426
515
507
1,941
1, 519
2,399
1,487
819
1934—June. _
Dec._.
1935 June..
Dec.__
1936—June..
Dec...
353 1937—June.
Dec...
1938—June _
1938-July..
Aug...
1,855
Sept. _
2, 555
Oct...
1,755
Nov. .
2,372
Dec.._
1,460
1,674 1939—Jan. ._
Feb...
2,278
Mar._.
1,186
Apr...
2,382
May..
June..
July..
1, 223
2,436
1,786
2, 663
755
489
982
2, 611
50
919
1,485
982
2,611
50
919
1. 485
1,485
50
25, 297
25 9 £7
35, 798
1 309
7, 243
1,949
2,611
982
919
Excludes U. S. savings bonds. Other bonds in the amount of $2,577,000,000
not callable prior to maturity are shown as of date of maturity.
2
Includes unclassified U. S. savings bonds.
Total
Federal
ReconHome
ComU. S.
Farm
Owners' struction m o d i t y
HousMortgage Loan
Finance
Credit
ing
Corpora- Corpora- Corpora- Corpora- Authortion 2
tion
tion
tion
ity
681
3,063
4,123
4,494
4,718
4,662
4,665
4, 645
4,853
312
980
1,226
1,387
1,422
1,422
1,422
1,410
1,410
134
1,834
2,647
2,855
3,044
2,988
2,987
2, 937
2,937
235
249
250
252
252
252
255
297
299
5,064
5,015
5,009
5,001
4,993
4,992
1,987
5, 410
5,410
5,410
5, 409
5, 450
5, 480
1,410
1,410
1,404
1,395
1,388
1,388
1, 383
1,381
1,381
1,380
1,379
1,379
1,379
2,937
2,888
2,888
2.888
2,888
2,888
2,888
2,888
2,888
2,888
2,888
2,928
2,958
510
511
511
511
511
206
1,379
1,223
2,436
1 786
2, 663
755
489
1
End of
Month
509
509
819
819
819
820
820
820
206
206
206
206
206
206
206
206
206
206
206
206
206
114
114
114
114
114
114
1 Principal amount of obligations guaranteed as to interest and principal. Excludes obligations held by U. S. Treasury and reflected in the
public debt. The total includes guaranteed debentures of the Federal
Housing
Administrator, amounting to $2,248,000 on July 31, 1939.
2
Excludes obligations guaranteed as to interest only.
SEPTEMBER
801
FEDERAL RESERVE BULLETIN
1939
SUMMARY OF TREASURY OPERATIONS
[On basis of daily statements of United States Treasury.
In millions of dollars]
General and speci al accounts
Expenditures 1
Receipts
General
Period
Total
Income
taxes
Fiscal year ending:
June 1936 .
June 1937
June 1938
June 1939 _ .
4,116
5 294
6,242
5, 668
1,427
2,158
2,635
2,182
1938—July
August
September _
October
November _
December
1939—January
February. __
March. _ _
April
May
_ _
June
July
311
487
711
332
382
704
308
417
737
268
397
613
308
47
32
498
41
36
481
48
56
506
40
43
355
42
National
deInterAll
est on fense
and
other
debt
Veterans'
Adm. 4
Recovery
and
relief
Excess
of receipts
ReTrans- (+) or
volv- fers to
exing
trust pendifunds accts.
tures
(net) 5 e t c . 6
(-)
Other
internal
revenue 3
All
other
Total
253
755
740
2,086
2,187
2,285
2, 238
603
697
567
507
8,666
8,442
7, 626
9,210
749
866
926
941
1,340
1,436
1,556
1,627
1,310
1,994
2,178
2,761
3,441
3,073
2, 238
3,105
11
204
121
92
1,814
868
607
685
- 4 , 550
-3,149
- 1 , 384
- 3 , 542
+312
+374
+306
+890
+840 + 5 , 078
- 1 2 8 + 2 , 646
+740
-338
+622 + 3 , 275
32
131
3
34
129
3
43
182
4
30
124
25
36
186
283
170
209
175
181
173
143
183
156
187
193
187
47
42
40
48
41
40
45
37
45
42
42
39
43
763
683
751
769
678
862
693
662
870
785
744
951
807
13
17
146
67
9
173
30
17
120
66
10
272
15
137
142
131
136
137
136
140
122
136
133
136
140
155
256
227
177
250
228
190
221
209
243
258
279
223
249
216
236
243
262
249
309
258
254
297
266
262
252
220
5
13
10
9
7
4
5
10
6
8
7
8
1
135
48
45
44
49
49
39
50
68
55
50
56
167
—451
-195
-40
-437
-296
-157
-385
-245
-132
-517
-348
-339
-499
+325
-63
-41
-3
-6
-31
+30
+428
+52
+93
-100
+144
+719
-409
-122
+636
-151
+410
+46
-346
-119
-86
-391
ity
taxes 2
(8)
Old-age reserve a n d
railroad retirement accounts
Net expenditures in
checking accounts of
Government agencies
Unemployment
trust fund
Period
BeneInfit
Revestpayceipts ments ments
Receipts
Investments
19
293
560
395
Fiscal year ending:
June 1936
J u n e 1937
J u n e 1938
June 1939
267
550
639
267
461
516
(8)
85
120
19
294
763
838
1938—July
August
September.
October
November
December
1939—January
February
M a r c h . _ __
April
May
June.
__
July
60
48
45
44
49
49
39
50
68
55
50
85
65
40
35
35
34
34
34
34
50
50
50
40
83
45
9
9
9
10
10
10
10
10
11
10
11
11
10
35
131
35
38
125
37
51
148
34
34
137
32
58
82
94
9 14
96
32
10
111
9 13
108
» 13
9 14
Withdrawals
by
States
Reconstruction
Finance
Corporation
Commodity
Credit
Corporation
1
191
442
9 241
9 329
99
9
658
33
9 112
9 184
136
9 260
10
24
19
21
18
9 15
9
326
10
31
27
36
53
40
40
26
19
33
36
44
41
32
41
42
9
18
16
10
(8)
2
5
9 6
60
3
9 86
16
(+) or
pendi- General Gross
fund
tures
balance 7 debt
(-)
+9
+95
-113
+27
+402
+800
+30
+180
+ 824
+ 204
4-227
+ 127
+78
+219
+158
+222
Details of general fund balEmce
(end of period)
Details of trust accounts, etc.
1
Trust Increase or decrease during
acper od
counts,
7
etc.
excess
of receipts
9 4
(9) (8)
6
All
other
100
127
9 11
9
246
9
9 55
26
9 7
96
9
11
94
9 20
112
37
27
12
9
2
144
9
9
All
other,
excess
of receipts
(+)or
Total
expenditures
(-) 10
+204
+60
+87
+ 116
2,682
2,553
2,216
2, 838
+10
+3
+3
+19
+13
+8
+2
-1
2,116
2,260
2,978
2,569
2,447
3,084
2,933
3,343
3,389
3,044
2,924
2,838
2,447
+14
+ 11
+23
+ 11
+13
Inactive
gold
Increment
on
gold
1,087
140
141
142
142
316
356
446
536
2,225
970
1,628
2,160
142
142
142
142
142
142
142
142
142
142
142
142
142
451
455
460
467
478
492
503
508
515
522
528
536
544
1, 523
1, 663
2,376
1,960
1,828
2,449
2,288
2,693
2,732
2,380
2,254
2,160
1,761
Seigniorage
Working
balance
Excludes debt retirements.
2
Includes taxes under Social Security Act and on carriers and their employees.
3
Includes miscellaneous internal revenue, unjust enrichment tax, and processing taxes.
* Excludes expenditures for adjusted service which are included under "Transfers to trust accounts, e t c . "
5
Includes revolving funds of Public Works Administration and Farm Credit Administration.
6
Includes expenditures for retirement funds, adjusted service certificate fund, old-age reserve account and railroad retirement account; except
for the adjusted service certificate fund, these appear as receipts under " T r u s t accounts, e t c . "
7
8
9
Details given in lower section of table.
Less than $500,000.
Excess of credits.
i° Includes other trust accounts, increment resulting from reduction in weight of the gold dollar, expenditures chargeable against increment
on gold (other than retirement of national bank notes) and receipts from seigniorage.
802
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
GOVERNMENTAL CORPORATIONS AND CREDIT AGENCIES, JUNE 3 0 , 1939
[Based on compilation by U. S. Treasury Department from reports received from organizations concerned. In millions of dollars]
Reconstruction
Finance
Corporation
and
Public
Works
Administration
Home mortgage and
housing agencies
Home
Owners'
Loan
Corporation
United
States
Housing
Authority
Other
mortgage
agencies
Total
Farm credit agencies
Farm
mortgage
agencies
TennesInsee surOther
ValFarm
Comance
ley agen- Other J u n e M a y J u n e
Credit
modity
Adm.
Credit Other Aucies
30,
31,
30,
thorbanks
Corpo1939 1939 1938
ity
and cor- ration
porations
ASSETS
Loans and preferred stock:
Loans to financial institutions
Preferred stock, etc
_
Loans to railroads
Home and housing mortgage
loans
Farm mortgage loans
Other agricultural loans
All other loans
Total loans and preferred
stock
Cash
U. S. Govt. direct obligations
Obligations of Government credit
agencies:
Fully guaranteed by U. S.
Other *
Accounts and other receivables
Business property.
Property held for sale
Other assets...
Total assets
other than interagency 6
217
529
463
216
169
44
60
446
865
493
75
30
2,081
182
1,629
1
48
291
0)
2,297
240
395
78
37
68
60
2
2,658
109
76
367
31
170
53
1
130
201
6
121
7
21
36
4
12
8
25
35
2
10
6
549
3
1,749
3,107
820
2,949
88
117
175
39
0)
372
* 238
6
0)
0)
0)
529
0)
0)
0)
372
2
269
15
4
8,465 8,511 8,514
585
538
444
713
708
651
350
17
0)
4
239
5
3,181
630
114
3
1,379
1,001
101
195
11
5
60
27
377
106
16
0)
260
0)
92
»258
390
0)
494
869
471
2,331 2,325 2,357
2,658 2,671 2,804
780
776
663
892
941
856
68
2,658
24
2 396
434
863
501
140
48
377
481
708
189
142
45
377
476
713
191
158
42
287
430
733
130
63
1
2
4
47
98
1
167
640
600
11, 706 11, 703 11, 389
372
248
74
4
8
6
0)
185
8
162
5,471 5,410 4,853
1,389 1,382 1,346
743
790
791
LIABILITIES
Bonds, notes, and debentures:
Guaranteed by United States...
Other *.
.
Other liabilities (including reserves).
Total liabilities other than
interagency •
0)
3
206
908
3,066
214
118
2,482
206
280
4
14
188
170
7,651 7,581 6,941
Excess of assets over liabilities, excluding interagency transactions..
Privately owned interests
841
40
315
48
143
699
196
424
3
110
368
234
452
139
430
4,056 4,122 4,447
389
370
387
U. S. Government interests
841
40
267
143
503
420
110
368
234
313
430
3,668 3,732 4,078
1 Less than $500,000.
2 Includes $55,000,000 loans of Public Works Administration.
* Includes $256,000,000 loans of Farm Security Administration.
*8 Includes $122,000,000 loans of Rural Electrification Administration.
Excludes Federal land bank bonds held by Federal Farm Mortgage Corporation.
* Includes, however, investments in securities of agencies (other than mentioned in footnote 5) and deposits of agencies with Reconstruction
Finance Corporation.
NOTE.—For explanation of table, see BULLETIN for October 1938, p. 882.
RECONSTRUCTION FINANCE CORPORATION LOANS AND INVESTMENTS
[Amounts outstanding. In thousands of dollars]
July 31,
1938
Loans to financial institutions
_.
Loans on preferred stock of banks and insurance companies..
Preferred stock, capital notes, and debentures
Loans to railroads (including receivers)
Loans for self-liquidating projects
Loans to industrial and commercial businesses
Loans to drainage, levee, and irrigation districts
Other loans
Securities purchased from Public Works Administration
232,
279
37, 438
531, 694
398, 304
193, 053
81, 060
79, 529
4,287
138,132
Jan. 31,
1939
205, 539
34,116
532, 352
437, 789
187, 588
109, 419
82, 396
28, 952
140, 801
Feb. 28, Mar. 31, Apr. 30, May 31,
1939
1939
1939
1939
199,183
33, 779
526,153
436,139
187, 301
110, 664
82, 494
26, 988
136, 725
196, 679
33, 626
524, 343
439, 560
186, 978
112, 048
82, 757
27, 067
131, 090
193, 967
33, 583
528, 024
443, 840
111,391
112, 531
82, 966
27,129
130, 313
190, 447
33, 494
528, 573
436, 612
113, 450
114, 498
83, 084
28, 640
128, 865
June 30,
1939
July 31,
1939
183,943 i 181, 502
33, 444
33, 349
529, 270 526, 876
439,199
438, 863
44, 683
68,106
117,079
121, 804
83,109
83, 358
27, 393
25, 196
116, 577 119, 705
Total loans and investments, other than interagency._ 1, 695, 775 1, 758, 951 1, 739, 427 1, 734,148 1, 663, 744 1, 657, 663 1, 574, 697 1, 598, 759
Loans to Federal land banks
Preferred stock of Export-Import bank
Loans to Rural Electrification Administration
Capital stock of, and loans to R. F. C. Mortgage Co
Capital stock of, and loans to Fed. Natl. Mtge. Assn
Loans to Tennessee Valley Authority
Total loans and investments..
4,992
20, 000
46, 498
41,186
11, 788
45,000
47, 698
56, 548
11, 000
3,000
45, 000
49, 848
51, 691
17, 234
3,000
45, 000
55, 066
29,."""
3,000
1, 820, 239 1, 922,197 1, 906, 200 1, 913, 569 1, 852, £
i Includes $52,000,000 of loans for distribution to depositors of closed banks.
NOTE.—For explanation of table and back figures, see BULLETIN for April 1936, p. 220.
45,000
53, 948
53, 258
24, 215
3,000
45,000
61,148
55, 625
33, 796
3,000
45, 000
57,094
37, 996
8,300
45, 000
146, 498
55, 219
41, 776
8,300
1, 856, 232 1, 869, 585 1, 895, 551
803
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
FARM CREDIT ADMINISTRATION
LOANS AND DISCOUNTS OUTSTANDING, BY INSTITUTIONS
[In thousands of dollars]
Farm mortgage loans
by-
Federal intermediate
credit bank loans to
and discounts for—
Regional
agriOther
cultural
Land
credit cor- financing
Federal
Bank
instituporations,
land b a n k s Commis- production
tions,
sioner
except
credit associations,
cooperaand banks
tives
End of month
Loans to cooperatives b y Regional
EmeragriculProducgency
tion credit tural cred- crop and
associait corpodrought
rations
tions
loans
Federal
intermediate
credit
banks
Banks for
cooperatives,
including
Central
Bank
Agricultural
Marketing Act
revolv-
ing fund
for cooperatives i
1934—December
1935—December
1936—December
1937—December
_ _
...
1938— JulyAugust
September
October
November
December
1939—January
February
March
April
May
June
July
_
_
_ _
1,915, 792
2,071,925
2,064,158
2, 035,307
616,825
794, 726
836, 779
812, 749
99,675
104, 706
129, 872
165,194
55, 672
47,162
41,017
40, 464
60,852
94,096
105, 212
138,169
87,102
43,400
25, 288
15, 592
111,182
172,489
164,887
172,130
33,969
2,731
1,641
1,813
27,851
50,013
69, 647
87, 633
54,863
44,433
53, 754
30, 982
2,013, 645
2,008, 661
2.003. 810
, 997, 561
,990,475
, 982, 224
L, 973,179
L, 968, 790
,960,357
,954, 677
, 947, 944
.940. 586
1, 934, 013
781, 703
776, 982
771,988
766, 502
760, 326
752, 851
745, 631
740,870
733,647
728, 489
723,187
717,622
712,823
199, 288
197, 274
189,937
174, 626
166, 549
168,392
163, 815
166, 996
175, 362
182, 643
186, 588
190,359
189,044
42, 582
42, 984
40, 808
36,121
34, 537
33, 545
33, 077
34,115
35, 318
36,483
38,124
39, 794
40, 657
183,891
181,154
170,806
154, 560
148,430
148,037
148,416
155, 409
167,867
177, 792
183, 351
187, 712
187, 844
14,442
14,003
13, 374
12, 354
11, 592
11,081
10,863
10, 689
10,399
10, 298
10,286
10,235
10,003
183,289
181,867
179, 398
174, 574
172, 043
170,891
169, 707
170,400
175, 509
179,156
179, 834
179,565
178, 754
118
118
256
744
851
920
834
75, 264
75, 961
82, 544
86, 931
86, 221
87, 496
80, 266
73, 692
65, 783
61, 363
60, 465
59, 577
62,124
25,028
26,119
27, 370
27, 917
25, 313
23, 723
23, 948
23, 631
23, 305
23,190
23, 061
22, 592
22,189
1,152
1,528
1,256
596
359
263
i Some of the loans made by the regional agricultural credit corporations (prior to October 1935) and by the banks for cooperatives and most of
the loans made by the production credit associations are discounted with the Federal intermediate credit banks. The amounts in this column are
thus included in the three columns under those headings. Such loans are not always discounted in the same month in which the original credit
is extended.
FEDERAL HOME LOAN BANK BOARD
POSTAL SAVINGS SYSTEM
LOANS OUTSTANDING, BY INSTITUTIONS
[In millions of dollars]
[Loans in thousands of dollars]
Assets
Home mortgage loans by—
End of month
Federal savings and
loan associations
Home
Owners'
Loan Cor- Number
of assoporation
ciations
Loansi
1934—December.
1935—December.
1936—December.
1937—December.
2, 379,491
2,897,162
2, 765,098
2,397, 647
1,023
1,212
1,328
81,300
348,000
586, 700
853, 500
1938—July
August
September.
October. __
November.
December.
1939—January...
February..
March
April
May
June
July
2, 248, 982
2, 234, 899
2, 221, 417
2, 203, 896
2,186,170
2,168, 920
2,149,038
2,134, 261
2,117, 598
2,105, 824
2, 091, 324
2, 080, 512
2,067,844
1,348
1,354
1,365
1, 370
1,374
1,368
1,370
1,375
1,375
1,381
1,383
1,386
1,385
961, 300
976,074
994, 218
1,011,087
1,020, 873
1,034,162
1,040, 770
1,051,109
1,067,887
1,089,879
1,117, 228
1,136, 289
1,157, 536
Federal
home
loan
bank
loans to
member
institutions 2
86, 651
102, 791
145, 394
200,092
End of month
DeposCash
itors
in debalances1 Total posi-
U. S. Government
securities
tory
banks Total
Direct
obligations
Guaranteed
obligations
Cash
reserve
funds,
etc.*
1935—June
1936—June
1937—June. __ _
1,205
1,232
1,268
1,236
1,265
1,307
385
777
967
203
136 1,100
630
800
933
147
167
167
74
95
71
191, 889 1938—June
July
189,415
August
189, 548
September
189, 217
October
189, 685
November
198, 840
December
178,852
170, 614 1939—January
161,614
February
157,176
March
157, 911
April
May
161, 537
June
July
1,252
1,252
1,252
1,248
1,250
1,250
1,252
1,259
1,263
1,266
1,264
1,261
P I , 262
PI, 268
1,290
1,291
1,291
1,287
1,289
1,291
1,291
1,299
1,304
1,309
1,306
1,305
115
102
99
98
96
87
86
83
81
80
76
73
1,103
1,103
1,113
1,118
1,118
1,128
1,132
1,137
1,144
1,153
1,154
1,157
936
937
947
952
952
961
965
971
978
986
988
1,011
167
166
166
166
166
167
167
166
166
167
166
146
72
86
79
71
75
76
73
79
79
76
76
75
1 Federal Home Loan Bank Board estimates for all Federal savings
p Preliminary.
and loan associations.
1 Outstanding principal, represented by certificates of deposit. Does
2 Excludes loans to other than member institutions which are neglinot2 include accrued interest nor outstanding savings stamps.
gible in amount.
Includes working cash with postmasters, 5-per cent reserve fund and
miscellaneous working funds with the Treasurer of the United States,
accrued interest on bond investments, and accounts due from late postmasters.
Back figures—See, BULLETIN for August 1935, p. 502.
804
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
PRODUCTION, EMPLOYMENT, AND TRADE
[Index numbers; 1923-25 average=100. The terms "adjusted" and "unadjusted" refer to adjustment for seasonal variation]
Construction contracts awarded (value)
Industrial production i *
Year
Manufactures
Total
and
Minerals
Total
Residential
2
All other
Factory employment3
Factory
Freight-car
pay- loadings 4 *
rolls 3
Department
store sales *
(value)
month
Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Ad- Unad- Unad- Ad- Unad- Ad- Unadjusted justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed justed
84
87
67
86
101
94
105
108
106
112
119
95
80
63
75
78
90
105
109
84
83
87
67
85
101
95
104
108
106
111
119
96
81
64
76
79
90
105
110
86
1919
1920
1921
1922
1923
1924
1925
1926
1927
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
77
89
70
74'
105
96
99
108
107
106
115
99
84
44
30
44
68
81
95
124
121
117
126
87
50
37
13
11
12
21
37
41
45
63
63
66
79
84
94
122
129
129
135
117
92
63
28
25
32
37
55
59
64
71
82
86
91
105
115
98
79
90
65
88
86
94
120
135
139
142
142
125
84
40
37
48
60
70
74
80
107
107
82
91
104
96
100
102
100
100
106
92
78
66
73
86
91
98
106
87
98
117
76
81
103
96
101
104
102
104
110
89
68
47
50
65
74
86
102
78
84
91
78
85
100
98
103
107
104
104
107
92
74
55
58
62
64
75
78
62
78
94
87
88
98
99
103
106
107
108
111
102
92
69
67
75
79
88
92
85
1936
104
105
106
115
114
100
102
99
102
105
112
117
101
102
104
110
115
115
111
52
59
62
59
57
58
66
60
65
65
60
54
51
53
36
44
46
47
43
40
45
39
45
46
47
41
39
38
65
71
75
69
69
72
83
78
82
81
70
65
62
65
97
98
99
100
101
103
105
96
97
100
102
103
103
104
84
83
87
87
93
94
99
73
76
76
75
77
82
83
73
77
77
84
86
84
77
87
90
87
88
90
94
92
84
63
68
94
100
105
161
115
116
117
118
118
114
114
117
110
100
85
79
113
118
122
125
123
114
110
114
106
99
86
75
111
116
128
115
117
115
112
113
116
113
109
115
107
112
119
105
118
118
115
121
125
123
112
108
63
62
56
51
54
66
61
68
72
75
66
56
49
50
49
45
47
45
44
44
42
44
40
37
42
47
51
52
47
45
40
37
35
31
25
77
75
64
61
66
77
86
81
71
65
76
87
63
64
63
68
81
92
99
87
105
106
103
105
108
109
109
108
108
109
109
107
101
95
94
100
106
109
110
107
80
82
83
84
80
78
80
79
78
73
76
80
79
80
79
82
81
87
84
72
62
93
95
93
93
93
93
92
93
94
93
91
89
72
76
90
89
95
90
65
72
100
103
101
156
79
79
80
78
77
77
81
87
91
97
104
98
76
75
75
73
73
74
82
87
89
95
103
104
75
76
77
76
75
75
79
85
89
95
103
98
108
103
104
100
92
92
93
95
103
99
96
91
90
92
93
52
51
46
52
51
54
59
66
42
26
32
33
73
69
56
55
88
88
88
86
83
82
82
86
89
90
91
91
75
77
77
75
73
71
71
77
81
84
84
87
65
62
60
73
76
76
78
84
97
96
111
100
87
85
84
82
83
85
87
88
90
92
57
58
58
61
62
64
68
69
69
69
57
57
55
57
58
62
63
71
75
70
64
90
88
86
83
78
82
83
83
86
84
89
89
70
70
77
86
80
79
58
65
91
92
99
156
»-99
100
97
96
92
91
97
'98
98
100
96
94
97
110
110
110
95
98
104
P96
P108
90
72
79
83
84
80
*81
92
91
91
91
90
91
,92
90
91
91
91
90
91
P91
83
86
87
85
84
86
,84
69
67
66
60
62
67
69
63
62
63
58
62
67
70
88
87
88
88
85
86
86
69
69
82
88
87
83
60
108
111
115
114
105
109
110
110
110
114
121
105
105
106
107
110
114
116
118
118
118
114
114
117
111
102
88
84
112
117
122
122
122
115
111
115
109
102
90
80
80
79
79
77
76
77
83
88
90
96
103
104
Jan
'•101
Feb
99
Mar.....
98
April
92
May
92
June
P8
July.... P1Q2
99
100
95
94
98
June. __
July....
Aug...
Sept
Oct
Nov
Dec
104
108
108
109
110
114
121
1937
Jan
Feb
Mar
April...
M a y __
June
July....
Aug
Sept
Oct
Nov
Dec
53
56
61
67
62
56
52
56
61
37
36
32
30
72
61
65
68
107
108
109
108
109
109
107
105
101
95
105
108
104
105
93
84
76
71
67
1938
Jan.
Feb
Mar
April...
May
June
July....
Aug
Sept
Oct
Nov
Dec
97
98
102
109
97
102
106
105
103
78
82
96
96
44
46
59
61
63
65
69
79
78
85
77
37
37
42
49
53
66
57
56
57
70
63
69
76
75
73
,73
55
58
55
58
55
58
.61
22
28
35
43
44
46
49
52
56
56
54
48
66
56
65
62
64
68
77
96
102
128
128
90
89
1939
P98
P101
105
105
102
88
97
105
86
73
69
67
63
63
P\09
P67
45
51
58
68
65
64
111
85
•80
74
PQ2
P71
68
67
r
p Preliminary.
Revised.
* Average per working day.
1 For indexes of groups and separate industries see pp. 805-806; for description see BULLETIN for February and March 1927.
23 3-month moving average of F. W. Dodge Corporation data, centered at second month; for description see p. 358 of BULLETIN for July 1931.
The indexes for factory employment and payrolls unadjusted for seasonal variation are compiled by the Bureau of Labor Statistics. For description of the seasonally adjusted index of factory employment compiled by F. R. Board of Governors see pp. 835-837 of BULLETIN for October 1938.
For 4current indexes of groups and separate industries see pp. 807-810. Underlying figures are for payroll period ending nearest middle of month.
For indexes of groups see p. 812.
Back figures.—See Annual Report for 1937 (table 81). For department store sales see BULLETIN for October 1938, p. 918; for factory employment and payrolls see BULLETIN for October 1938, pp. 838-866.
805
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
INDUSTRIAL PRODUCTION, BY INDUSTRIES (ADJUSTED INDEXES)
[Index numbers of the Board of Governors; adjusted for seasonal variation.
1923-25 average=100]
1939
1938
Industry
June
Manufactures—Total _
Durable
Nondurable
IRON AND STEEL..
Pig iron
Steel ingots...
July
Aug.
Sept.
82
58
102
87
64
108
69
107
62
42
64
70
51
72
75
59
77
Oct.
Dec.
95
83
106
103
94
110
104
92
114
100
'88
110
90
67
92
108
76
112
101
74
104
'93
72
'95
TRANSPORTATION EQUIPMENT:
Automobiles 2
Locomotives
67
107
COKE:
Byproduct-
Apr.
May
June
97
83
109
80
110
92
76
106
91
71
108
97
82
110
83
75
84
79
66
73
55
'75
104
81
106
73
87
102
89
82
87
91
80
155
76
82
153
147
105
106
106
105
5
112
112
107
123
101
69
123
117
120
116
134
112
72
116
109
110
107
114
113
77
107
109
111
111
117
113
87
97
106
5
110
114
105
119
91
84
108
107
124
103
100
119
97
137
124
105
104
118
97
137
79
124
90
131
77
2
103
5
110
5
97
106
85
91
80
78
104
110
105
120
98
73
76
111
115
116
138
105
70
84
Pill
117
121
95
93
103
95
138
115
97
91
101
106
127
113
94
91
89
104
126
108
91
88
90
100
119
83
67
100
108
157
94
70
73
106
110
156
97
78
90
81
99
105
135
100
94
94
84
104
108
142
95
72
87
73
103
104
143
100
66
77
102
107
145
96
81
165
79
237
78
162
77
231
78
164
78
236
164
77
236
81
170
75
246
85
170
75
247
84
158
73
227
80
61
128
61
125
61
127
62
126
63
130
65
127
63
132
63
126
104
140
109
201
259
107
142
100
205
262
112
145
106
201
256
113
138
117
202
256
122
140
111
209
265
122
143
115
211
269
124
143
119
215
276
122
144
121
100
104
75
112
116
79
110
115
76
109
114
71
114
119
76
104
108
73
102
106
112
'117
109
110
78
67
169
75
69
171
79
61
169
77
61
173
31
80
174
87
73
100
90
70
91
71
101
46
73
175
55
89
82
71
71
59
170
67
90
70
107
81
5
89
110
115
106
133
91
55
102
103
108
107
101
97
101
87
110
74
42
105
100
104
91
101
87
67
104
91
75
74
76
74
101
103
78
77
80
76
119
109
82
86
77
75
126
103
78
86
72
65
119
101
81
89
69
70
114
77
118
123
98
99
109
85
138
81
58
108
110
151
98
78
83
62
107
112
152
98
85
74
103
115
153
87
86
106
118
152
95
92
94
108
149
91
103
96
112
152
86
100
86
79
89
106
137
92
108
87
74
97
111
150
92
106
154
73
219
84
154
71
219
161
73
232
81
160
75
229
84
150
74
211
78
164
76
233
95
1179
76
258
97
51
123
54
125
53
123
57
130
58
132
128
193
248
117
126
103
200
258
106
132
110
203
264
104
134
108
206
265
109
141
113
208
269
102
143
110
70
73
50
81
84
56
90
93
69
95
TEXTILES
July
94
2
71
5
Beehive
Tanning
Cattle hide leathers
Calf and kip leathers...
Goat and kid leathers..
Boots and shoes
Mar.
73
C E M E N T AND GLASS:
Cement
Glass, plate
LEATHER AND PRODUCTS
Feb.
105
13
NONFERROXJS METALS:
Tin deliveries i
Zinc
Lead
C otton consumption
.
Wool
Consumption
Machinery activity i
Carpet and rug loom activity l
Silk deliveries
Jan.
Nov.
P134
P107
P!15
P130
FOOD PRODUCTS:
Slaughtering and meat packing.
Cattle
Calves
Sheep
Wheat flour..
Sugar meltings...
TOBACCO PRODUCTS
Cigars
Cigarettes
Manufactured tobacco -
PAPER AND PRINTING:
Newsprint production ___
Newsprint consumption.
PETROLEUM REFINING..
1
Gasoline
Kerosene
Fuel oil i
Lubricating oil 1
RUBBER TIRES AND TUBES I
1
Tires, pneumatic
Inner tubes i
Minerals—Total. _
92
95
97
103
72
98
Bituminous coal..
Anthracite
Petroleum, crude.
Iron ore
Zinc
Lead
Silver..
57
74
153
34
70
64
91
64
38
167
37
74
46
105
71
50
158
41
75
50
102
72
49
161
50
80
50
102
1
2
47
161
38
69
54
99
76
58
165
42
111
116
77
110
74
91
68
Without seasonal adjustment.
v Preliminary.
' Revised.
Seasonal adjustment factors for latter half of 1939 revised due to earlier shift to new model production. Tentative adjustment factors: July, 76;
August, 31; September, 75; October, 118; November, 118; December, 110.
NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, September 1933, pp. 584-587, November 1936, p. 911, March 1937, p. 255, October 1938, p. 911, and January 1939, pp. 20-21. Series on silk-loom activity
and on production of book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber,
usually published in this table, are in process of revision.
806
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
INDUSTRIAL PRODUCTION, BY INDUSTRIES (UNADJUSTED INDEXES)
[Index numbers of the Board of Governors; without seasona I adjustment. 1923-25 average=100]
1938
Induscry
June
Manufactures—Total
Durable
Nondurable
_ - _ __
IRON AND STEEL
Pig iron
Steel ingots
July
Aug.
Sept.
1939
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
May
June
July
75
52
94
79
58
97
85
63
104
89
66
109
95
79
109
103
92
113
98
85
108
'98
84
111
98
83
111
100
86
111
96
84
106
94
78
107
97
85
108
PS5
P106
46
36
47
57
39
59
69
49
71
75
57
76
88
67
90
100
77
103
89
73
90
'90
71
'92
92
75
93
93
79
'95
'87
70
'89
79
56
81
89
72
90
97
77
99
52
14
45
12
26
5
26
4
63
5
115
8
117
13
105
11
98
11
105
12
106
12
88
91
66
73
68
65
68
64
52
65
69
44
71
71
48
81
78
52
73
88
69
59
96
58
66
94
71
72
93
75
76
96
70
92
94
70
102
90
80
93
87
71
87
84
65
86
72
87
69
87
89
86
107
91
155
83
155
64
153
42
147
48
133
65
138
79
91
88
93
98
112
100
78
68
4
69
4
79
4
88
5
98
6
107
6
107
7
107
7
108
7
109
6
95
2
76
2
101
5
107
4
83
85
71
83
69
38
90
90
92
81
98
74
42
100
103
103
101
123
91
55
106
104
104
96
113
86
66
116
103
107
96
111
87
67
104
116
117
113
134
101
69
127
111
110
117
135
112
72
103
114
116
109
118
113
77
122
115
119
116
128
113
87
104
112
119
106
122
91
84
104
100
113
84
88
80
78
87
104
113
100
111
98
73
75
105
111
109
124
105
70
75
87
73
73
74
74
96
102
78
75
93
71
117
121
84
85
93
74
145
119
84
90
83
68
143
111
86
92
82
73
128
102
88
93
85
76
112
104
95
96
94
92
109
115
98
101
98
92
125
126
108
111
108
101
138
125
94
94
91
97
145
112
94
91
91
105
124
'105
88
87
85
96
115
104
89
88
88
100
113
80
60
101
114
148
86
93
79
56
106
109
152
95
104
77
56
101
106
154
94
97
90
66
118
113
176
104
114
94
79
110
113
163
102
98
104
97
111
114
151
93
78
101
103
94
100
135
88
62
101
100
98
104
151
90
70
83
74
88
100
147
91
69
84
74
92
111
142
91
92
81
72
87
114
127
91
109
92
81
101
122
139
90
81
86
76
96
108
140
88
78
84
69
101
104
145
94
98
169
80
241
86
167
74
241
84
172
76
250
84
177
86
252
91
161
90
222
81
167
90
231
92
145
57
212
79
157
61
232
79
147
67
211
79
156
71
224
81
151
72
215
78
172
78
248
85
186
81
272
86
171
76
249
80
52
122
53
111
52
110
57
128
58
140
63
137
61
132
62
120
61
125
61
131
64
139
66
131
64
131
62
112
192
248
109
126
103
199
258
98
132
110
203
264
99
134
108
206
265
111
141
113
209
269
107
143
110
208
269
113
140
109
202
259
115
142
100
205
262
115
145
106
202
256
115
138
117
201
256
119
140
111
208
265
121
143
115
211
269
119
143
119
215
276
113
144
121
70
73
50
81
84
56
90
93
69
95
98
71
99
103
72
100
104
75
112
116
79
110
115
76
109
114
71
114
119
76
104
108
73
102
106
68
112
92
93
97
102
106
105
103
105
105
102
88
97
105
TRANSPORTATION EQUIPMENT:
Automobiles
Locomotives
NONFERROUS METALS:
Tin deliveries
Zinc
Lead
CEMENT AND GLASS:
Cement _
Glass, plate
COKE:
Byproduct . _. _.
Beehive
__
___ _
TEXTILES
Cotton consumption
Wool
Consumption
_ __
Machinery activity
Carpet and rug loom activitySilk deliveries
LEATHER AND PRODUCTS
Tanning__
Cattle hide leathers
Calf and kip leathers
Goat and kid leathers
Boots and shoes
_ __
106
P106
P119
P!07
80
P113
P127
FOOD PRODUCTS:
Slaughtering and meat packing...
Hogs
Cattle
Calves
Sheep.. _.
._ ._
Wheat flour
Sugar meltings
__
TOBACCO PRODUCTS
__ __
Cigars
Cigarettes
__.
Manufactured tobacco
PAPER AND PRINTING:
Newsprint production
Newsprint consumption
PETROLEUM REFINING _
Gasoline
Kerosene
Fuel oil
Lubricating oil
_ .
RUBBER TIRES AND TUBES
Tires, pneumatic
Inner tubes
...
_
Minerals—Total
111
116
77
P109
Bituminous coal.
__
Anthracite
Petroleum, crude
Iron ore _
_ _ . __
Zinc
Lead
Silver
__ _
51
64
156
67
68
65
89
55
39
165
78
64
52
84
62
38
170
76
69
44
104
76
51
163
78
71
48
97
79
63
163
86
78
52
101
86
60
163
35
88
69
55
82
66
164
83
74
164
83
66
166
77
50
171
26
83
174
96
58
86
94
71
86
93
75
108
96
70
94
94
70
102
40
73
177
82
90
80
69
63
51
173
132
87
71
105
^69
P179
150
84
65
r
p Preliminary.
Revised.
NOTE.—For description see BULLETINS for February and March 1927. For latest revisions see BULLETINS for March 1932, pp. 194-196, September 1933, pp. 584-587, March 1937, p. 256, October 1938, p. 912, and January 1939, pp. 20-21. Series on silk-loom activity and on production of
book paper, wrapping paper, fine paper, boxboard, mechanical wood pulp, chemical wood pulp, paper boxes, and lumber, usually published in
this table, are in process of revision.
FEDERAL RESERVE
SEPTEMBER 1939
807
BULLETIN
FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL VARIATION)
[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1935. 1923-25 average=100]
1938
Industry and group
June
Furniture
Lumber, millwork
Lumber, sawmills
STONE, CLAY, GLASS PRODUCTS
Brick, tile, terra cotta
Cement
Glass
Marble, granite, slate
Pottery
TEXTILES, PRODUCTS
Fabrics
Carpets, rugs
Cotton goods
Cotton small wares
Dyeing, finishing textiles
Hats, fur-felt
Knit goods
Hosiery
Knitted outerwear
Knitted underwear
Knitted cloth
Silk, rayon goods
Woolen, worsted goods
Wearing apparel
Clothing, men's
Clothing, women's
Corsets, allied garments
Men's furnishings
Millinery
Shirts, collars
p
Revised.
86.9
75.7
97.6
87.5
77.9
96.7
90.0
81.3
98.3
77.3
83
78
60
67
40
57
73
108
69
71
58
86
70
112
79.4
84
79
61
76
42
62
73
118
70
75
58
90
73
111
85
83
64
78
44
67
74
123
68
74
58
89
76
132
86.0
124
137
75
82
77
115
83
54
116
83.3
103
138
73
81
76
112
82
54
117
84.7
106
135
74
83
77
112
82
58
119
85.2
96
136
77
83
78
114
81
61
122
61.1
790
60
24
25
56.9
787
55
23
20
55.9
759
55
24
18
91
74.2 81.5
810
779
89
79
26
16
91
81.3
122
86
78
84
65
58
65
82.0
124
87
78
85
66
57
64
84.4
131
90
80
87
72
59
64
137
93
79
88
76
59
65
59.9
73
49
48
60.2
73
50
49
61.9
75
52
50
63.2
45
63
78
42
74
63.4
46
64
76
42
75
87.4
79.3
48
78
70
101
64
106
135
70
65
137
58
... 62
104.1
81
158
98
126
65
115
92.1
83.4
63
81
71
104
82
109
138
72
70
139
57
70
109.8
91
163
96
132
65
113
A gricultural implements
Cash registers, etc
Electrical machinery
Engines, turbines, etc
Foundry, machine-shop products
Machine tools
Radios, phonographs
Textile machinery
Typewriters
LUMBER, PRODUCTS
Nov.
77.8
83
77
62
76
40
61
73
113
65
70
58
87
73
114
MACHINERY
Aluminum
Brass, bronze, copper
Clocks, watches
Jewelry
Lighting equipment
Silverware, plated ware
Smelting, refining
Oct.
84.9
72.0
97.2
Blast furnaces, steel works
Bolts, nuts, washers, rivets
Cast-iron pipe
Cutlery, edge tools
Forgings
Hardware
Plumbers' supplies
Stamped, enameled ware
Steam, hot-water heating
Stoves
Structural, ornamental
Tin cans, tinware
Tools
Wirework
NONFERROUS METALS, PRODUCTS
Sept.
82.9
70.7
94.5
IRON, STEEL, PRODUCTS
Aircraft
Automobiles
Cars, electric-, steam-railroad
Locomotives
Shipbuilding
Aug.
82.4
71.9
92.4
Total
Durable goods
Nondurable goods
TRANSPORTATION EQUIPMENT
July
1939
85
65
79
46
79
72
127
69
77
60
84
77
145
86.!
99
136
80
90
90
67
81
48
84
73
134
87
80
163
89.1
99
135
83
88
79
117
106
65
126
Dec,
91.6
83.2
99.5
92
92
67
83
49
86
73
134
68
77
63
88
83
172
Jan.
Feb.
Mar.
Apr.
91.7
83.6
99.5
91.3
83.4
98.7
91.0
83.0
90.8
83.2
98.0
90.4
82.2
98.2
91.4
83.2
99.2
91.7
82.6
100.3
87.7
92
91
66
83
48
85
73
131
68
78
63
89
83
163
87.6
91
91
67
82
48
83
73
131
69
79
67
90
85
161
87.7
91
92
68
83
47
82
73
135
69
80
68
90
84
160
87.6
91
89
67
83
49
80
73
131
69
79
68
91
84
156
86.7
91
87.4
87.6
93
89
67
84
50
68
76
134
72
84
68
91
80
134
92.1
109
134
83
93
82
121
114
67
126
65
72
93.9
118
134
84
92
83
124
116
69
127
92.0
950
98
35
18
109
94.0
145
99
84
95
89
66
72
94.4 95.4 96.0
94.9 94.9
110
114
112
116
118
129
129
133
128
130
86
85
86
85
86
95
93
92
92
96
86
84
84
84
85
141
133
131
136
127
118
110
113
111
118
73
75
71
73
70
125
122
128
125
128
88.0 80.3
90.4 90.3
952
1,057 1,149 1,246 1,363
89
78
89
96
97
31
30
31
31
33
22
30
26
19
17
115
125
123
109
107
94.9
93.2 93.3
93.9 93.7
164
152
155
153
150
99
98
99
97
98
85
84
85
82
84
98
94
96
95
80
81
78
68
66
66
71
72
71
72
72
823
99
27
17
97
91.6
105
136
84
88
82
119
111
67
126
93.9
854
104
30
17
100
89.0
140
95
81
87
83
62
92.3
141
101
79
90
87
63
70
93.5
140
100
79
94
91
64
72
76
53
51
62.9
75
53
51
64.5
76
55
53
65.3
79
55
53
79
56
54
65.6
80
55
53
64.0
46
64
79
40
75
65.4
48
63
82
40
75
67.8
49
67
87
41
76
71.1
52
68
92
42
78
72.0
53
67
93
44
79
73.6
57
64
94
44
81
96.4
87.2
68
85
75
107
85
111
140
76
70
150
61
74
115.7
101
166
97
136
68
118
97.0
87.1
72
85
78
107
87
111
140
76
69
147
61
73
117.9
103
170
97
142
71
116
95.6
86.3
76
84
79
106
90
111
141
77
69
152
60
71
115.4
102
164
98
143
72
114
96.7
88.6
80
85
83
107
84
112
141
76
70
157
61
79
113.6
102
161
99
138
61
114
90.3
82
85
85
110
83
115
144
82
71
162
62
83
116.4
103
166
101
140
66
116
98.4
90.0
83
85
84
111
(
84
113
145
68
72
151
61
83
116.0
101
165
101
132
68
126
62
125
93.3
885
102
32
20
103
93.7
141
99
84
May
48
76
74
130
68
80
68
90
84
150
June
66
84
75
135
69
81
67
91
84
143
July
65.2
80
53
53
65.9
81
56
53
82
57
53
72.2
54
67
91
47
78
90
46
78
53
66
92
44
81
72.3
54
66
92
45
82
96.4
88.3
83
85
80
111
80
114
146
72
71
149
62
72
112.8
100
158
103
129
69
116
96.4
r88.
81
85
82
113
79
114
146
73
73
144
63
77
111.7
100
155
105
126
68
117
98.0
90.1
79
86
81
110
83
115
145
77
74
156
61
81
114.0
101
162
108
130
63
117
54
50
64.6
81
54
51
71.5
55
65
90
42
71.8
54
66
89
47
79
98.5
89.8
83
86
84
112
84
114
146
73
72
151
62
79
116.6
102
166
101
137
72
120
97.7
89.2
83
85
82
111
81
115
147
75
71
151
63
76
115.5
102
165
101
132
72
118
100.7
92.4
79
117
85
118
147
80
78
156
60
83
117.8
104
168
110
137
62
120
808
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
FACTORY EMPLOYMENT, BY INDUSTRIES (ADJUSTED FOR SEASONAL
VARIATION) —Continued
[Index numbers of the Board of Governors; adjusted to Census of Manufactures through 1935. 1923-25 average=100]
1939
1938
Industry and group
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
84.4
85
88.4
90
75
89.6
91
78
91.3
92
79
90.8
91
81
91.4
92
84
92.1
92
84
92.8
93
86
122.2
144
232
101
136
78
77
77
95
92
85
123.0
144
236
103
140
79
77
78
95
89
88
122.2
143
234
100
131
79
75
77
96
109
92
119.2
142
234
99
111
79
75
78
97
101
89
122.8
143
245
99
128
79
77
80
99
101
88
124.2
144
244
100
129
82
78
80
99
142
87
65.2
62
66
61.9
61
62
62.9
61
63
64.3
63
65
63.2
58
64
63.7
61
64
103.0
103.0
95
102
100
104
103.7
96
103
99
105
104.0
96
104
99
105
104.3
97
105
99
105
CHEMICALS, PETROLEUM
108.4
108.4
121
105.2
106
102
113
81
91
110
272
89
111.0
121
108.4
110
98
110
81
96
113
292
92
111.4
120
109.4
111
87
108
83
92
114
312
91
RUBBER PRODUCTS . .
71.3
56
60
107
69.5
44
61
109
73.4
54
61
117
76.0
56
62
123
LEATHER, MANUFACTURES
Boots, shoes
Leather
73
FOOD, PRODUCTS..
121.2
_ _
Baking
Beverages
Butter
Canning, preserving
C onfectionery
Flour _
Ice cream
Slaughtering, meat packing
Sugar, beet
Sugar refining, cane
TOBACCO MANUFACTURES
Tobacco, snuff
Cigars, cigarettes...
PAPER, PRINTING
143
232
102
131
__
78
77
77
94
91
89
Boxes, paper
95
Paper, pulp. _
102
Book, job printing
99
Newspaper, periodical printing. __ 105
Petroleum refining
120
Other than petroleum
105.5
110
Chemicals
Cottonseed oil, cake, meal
93
112
Druggists' preparations
81
Explosives
93
Fertilizers..
Paints, varnishes
. . . 109
274
Rayon, allied products
Soap _
86
—
Rubber boots, shoes
Rubber tires, inner tubes
Rubber goods, other
May
June
Mar.
Apr.
92.9
93
85
93.2
93
85
91.7
92
84
88.1
88
82
90.9
91
84
92.3
92
85
124.2
143
245
100
129
80
78
80
96
199
89
121.3
144
244
98
122
79
76
80
95
112
86
122.5
144
240
98
136
79
78
79
94
101
89
122.3
143
241
99
134
77
76
80
95
97
94
123.7
145
242
99
137
78
79
79
97
101
81
124.6
146
244
99
139
77
80
79
98
98
83
123.4
146
239
99
128
78
80
77
99
92
87
64.2
62
65
64.5
59
65
63.5
59
64
60.3
60
60
63.2
61
63
63.7
60
64
64.2
60
65
64.4
59
65
105.4
100
106
100
106
106.0
101
106
101
106
106.0
102
106
101
105
105.9
102
106
100
106
106.3
103
106
101
106
106.3
102
106
101
106
106.3
102
107
100
106
105.9
102
106
100
106
107. 1
103
106
102
107
111.2
119
109.3
113
86
107
82
88
113
313
90
111.8
118
110.2
117
88
107
81
91
114
310
86
112.3
118
110.9
117
90
107
81
89
114
310
91
112.4
118
111.1
117
85
108
82
94
115
310
91
111.7
118
110.3
118
76
106
82
89
114
314
90
112.0 112.7
117
117
110.7 111.7
118
116
83
90
106
108
83
82
89
'98
115
116
312
322
89
88
112.9
118
111.8
115
95
110
84
102
114
315
89
112.2
119
110.5
115
76
111
86
95
115
313
90
112.4
120
110.4
113
72
110
88
93
117
315
94
76.8
58
64
121
81.7
62
66
132
83.2
63
67
135
81.3
58
67
131
81.3
61
66
131
82.3
62
67
132
81.2
63
67
127
81.1
61
67
129
79.8
48
67
132
Feb.
'81.5
67
129
July
r
Revised.
NOTE.—Figures for July 1939 are preliminary. For description and back data see pages 835-866 of the BULLETIN for October 1938. Underlying figures are for payroll period ending nearest middle of month.
809
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT
SEASONAL ADJUSTMENT)
[Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1935.
Factory employment
Industry and group
1938
June
Total
Durable goods
Nondurable goods
IRON, STEEL, PRODUCTS
Blast furnaces, steel works
Bolts, nuts, washers, rivets
Cast-iron pipe
Cutlery, edge tools
Forgings
.
Hardware
_
Plumbers' supplies
Stamped, enameled ware
Steam, hot-water heating
Stoves
Structural, ornamental
Tin cans, tinware
Tools
..
Wirework
MACHINERy
Agricultural implements
_
Cash registers, etc
Electrical machinery
._
Engines, turbines, etc.
Foundry, machine-shop products.
Machine tools _
Radios, phonographs
Textile machinery
. .
Typewriters
TRANSPORTATION EQUIPMENT
Aircraft.
Automobiles
Cars, electric-, steam-railroad
Locomotives
Shipbuilding.
_
NONFERROUS METALS, PRODUCTS
Aluminum
Brass, bronze, copper
Clocks, watches
Jewelry
_.
Lighting equipment
Silverware, plated ware
Smelting, refining
LUMBER, PRODUCTS
Furniture
Lumber, millwork
Lumber, sawmills
STONE, CLAy, GLASS PRODUCTS
Brick, tile, terra cotta
Cement
Glass
Marble, granite, slate. _ _
_
Pottery
TEXTILES, PRODUCTS
_ __
Fabrics
Carpets, rugs
__
__ .
Cotton goods
Cotton small wares
Dyeing, finishing textiles .__
Hats, fur-felt
Knit goods
Hosiery.. _ __
Knitted outerwear
Knitted underwear.
Knitted cloth
Silk, rayon goods
Woolen, worsted goods
Wearing apparel
Clothing, men's _
Clothing, women's
Corsets, allied garments
Men's furnishings
Millinery
Shirts, collars
• Revised.
_
.
Factory payrolls
1939
July
Mar.
Apr.
May
1923-25 average=100]
1938
June
July
June
1939
July
Apr.
Mar
May
June
July
81.6
72.4
90.3
81.9
70.3
92.9
91.4
83.5
98.9
'91. 1
84. 1
'97. 8
90. 1
83. 3
96. 7
90. 6
83. q
97. 0
90. 5
82. 1
98. 5
70.8
61.7
80.9
70.6
58.6
84.1
86. 9
80. 1
94. 6
84.9
80.2
'90. 2
84.4
79.5
89.9
85.9
81.4
91.0
83.8
76.4
92.1
77.8
82
77
64
75
40
61
73
113
65
71
58
89
73
116
76.6
82
77
62
64
39
57
73
105
67
68
59
91
70
110
88.3
92
92
67
84
48
83
74
137
69
78
66
86
85
161
88. 3
92
90
67
85
49
81
73
135
69
81
67
88
85
159
87. 3
91
89
68
80
48
76
74
133
69
82
67
89
84
155
87. 5
92
88
68
83
48
69
75
135
69
83
68
93
84
144
86. 8
92
88
69
79
48
67
76
131
70
81
69
96
80
132
59.1
58
61
51
62
29
52
58
100
51
55
47
93
61
100
57.4
57
59
52
52
29
48
55
92
52
52
49
94
58
92
81. 6
85
92
55
77
46
82
63
137
56
67
58
93
84
170
80.1
83
82
59
74
47
77
65
132
56
'69
60
94
82
163
'78.4
80
82
64
72
47
75
67
128
57
'69
59
97
81
153
80.7
83
82
62
78
46
71
68
131
59
70
61
102
81
152
77.2
80
75
61
68
45
70
65
123
56
66
61
105
75
135
86.1
125
137
75
86
77
116
82
54
115
82.9
101
138
73
82
76
111
82
54
116
94.7
125
133
85
94
84
128
99
70
128
95. 1
124
130
86
96
85
131
95
72
128
94. 9
118
130
86
98
85
134
96
73
126
95.6
114
130
86
100
85
137
109
73
124
95. 6
108
129
86
97
85
140
117
75
120
76.4
124
121
67
89
66
99
72
47
94
72.7
99
123
64
86
64
94
72
45
92
94.
137
120
87
112
80
135
85
69
136
?
93.7
135
120
86
115
79
141
81
71
134
94.9
126
121
87
117
80
149
84
72
129
96.4
119
124
88
118
82
153
95
76
114
94.6
115
122
87
112
80
154
102
77
115
62.4
814
62
25
25
98
55.5
795
53
23
20
96
78. 4
95. 2
89. 9
90. 3
95.7
1,377
962
1,184
1,078
1,283
76
104
102
92
93
30
34
32
33
33
30
19
17
22
27
121
112
122
109
118
57.4
764
54
24
20
105
51.0
737
47
20
16
100
75.0
92. 0
94.4
87.6
89.2
989
1,064
1,165 1,311 1,328
89
71
97
100
88
32
32
32
34
26
24
26
14
16
20
132
129
116
128
117
79.8
122
86
75
78
64
58
65
79.1
122
86
74
79
63
51
64
94.3
153
99
84
93
88
67
72
93. 5
155
98
84
90
84
66
72
92. 4
152
99
82
86
81
66
71
91. 6
155
99
80
88
76
66
71
91. 6
160
98
80
91
75
60
71
66.3
109
73
60
60
51
45
60
67.0
112
78
60
61
50
38
57
89. 2
160
99
86
77
77
65
67
86.0
161
96
84
71
69
59
66
86.8
157
99
82
69
71
60
67
86.7
161
99
80
73
67
59
66
84.9
152
99
83
73
64
52
65
60.7
71
50
50
60.7
71
51
50
62.6
79
53
49
64. 3
78
54
52
65. 3
77
54
54
66. 8
79
57
54
67. 3
80
57
55
51.2
52
40
45
48.7
51
42
42
53. 9
66
44
42
55.7
64
44
46
58.2
63
45
50
60.4
65
49
52
56.7
65
46
47
65.8
48
68
79
44
73
64.6
49
70
75
44
70
69.6
50
60
91
45
81
72. 7
54
67
92
47
82
72. 5
54
67
92
48
81
74. 5
57
71
93
46
80
73. 6
57
72
90
48
76
56.4
36
65
78
34
61
53.1
35
66
69
34
53
61. 7
37
56
95
34
74
'64.1
40
64
92
40
'73
66.9
46
70
96
37
69
62.5
43
69
87
37
62
84.6
77.2
48
76
68
98
61
104
133
69
66
135
54
61
99.7
78
148
97
124
60
113
86.6
80.4
63
78
68
97
80
105
133
69
67
137
55
68
98.9
90
135
93
121
50
108
101.4
91.2
85
88
86
116
83
116
149
76
72
153
64
77
123.0
107
179
104
137
83
122
98. 6
88. 8
84
87
84
114
81
115
147
72
74
150
62
69
119. 0
104
171
106
132
78
119
96. 1
'88. 3
81
85
82
113
77
114
145
73
74
144
59
75
112. 2
97
160
107
127
70
118
94. 9
87. 8
79
84
79
106
80
113
142
76
75
153
56
80
109. 3
98
94. 9
89. 0
79
85
82
109
83
113
142
77
74
154
58
81
106. 6
103
139
107
126
48
115
62.4
61.2
36
59
60
77
49
100
139
58
53
100
41
47
62.6
43
90
86
101
45
83
66.6
65.7
45
64
59
78
75
98
134
57 .
54
111
42
56
66.0
57
86
83
94
36
78
89. 0
79. 4
75
76
83
101
71
119
165
68
65
121
53
62
104 8
86
143
109
122
90
107
77.8
'74.2
65
72
75
94
64
109
147
67
66
111
47
61
'82.1
67
110
'112
105
53
102
77.6
74.6
64
71
73
89
75
110
144
69
68
124
46
67
80.9
72
103
109
113
41
101
77.5
75.6
65
72
76
89
82
108
141
69
66
129
46
68
78.7
76
94
109
111
33
94
107
m
58
116
40
62
89
39
'75
79.8
73.9
71
73
76
97
56
112
154
64
65
112
49
52
88.8
74
118
111
110
64
103
810
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
FACTORY EMPLOYMENT AND PAYROLLS, BY INDUSTRIES (WITHOUT SEASONAL
ADJUSTMENT) —Continued
[Index numbers of the Bureau of Labor Statistics; adjusted to Census of Manufactures through 1935. 1923-25 average=100]
Factory employment
Industry and group
LEATHER, MANUFACTURES
Boots, shoes
Leather
FOOD, PRODUCTS
Baking
Beverages
Butter
Canning, preserving
Confectionery
Flour
Ice cream
Slaughtering, meat packing
Sugar, beet
Sugar refining, cane
TOBACCO, MANUFACTURES
Tobacco, snuff
Cigars, cigarettes
PAPER, PRINTING
Boxes, paper
Paper, pulp
Book, job printing
Newspaper, periodical printing
CHEMICALS, PETROLEUM
Petroleum refining
Other than petroleum
Chemicals
Cottonseed oil, cake, meal
Druggists' preparations
Explosives
Fertilizers
Paints, varnishes
Rayon, allied products
Soap
RUBBER PRODUCTS
Rubber boots, shoes
Rubber tires, inner tubes
Rubber goods, other
Factory payrolls
1939
1938
Mar.
Apr.
May
1938
June
July
81.8
89.3
97.6
94.0
87.0
88.1
83
72
91
74
99
86
95
85
86
82
87
84
June
1939
June
July
93.2
57.5
69.4
83.2
74.5
64.2
69.3
76.8
94
84
53
69
67
72
80
88
70
84
58
81
63
85
73
84
July
Mar.
Apr.
May
June
July
119.4
128.6
112.0
114.0
116.8
122.8
129.5
121.7
128.5
113.8
113.9
120.9
125.6
130.0
144
252
110
114
70
75
92
94
47
91
145
260
111
179
68
78
95
95
53
88
142
228
92
79
78
77
70
93
39
88
142
236
96
93
72
75
76
92
44
94
145
246
101
93
71
77
87
95
48
81
147
265
107
121
69
78
94
98
51
84
147
268
108
168
67
82
95
99
54
91
142
306
95
101
68
76
78
105
52
81
143
323
96
157
63
79
81
108
53
81
138
263
79
74
75
74
61
101
44
86
136
282
82
81
67
73
66
100
46
85
143
301
87
86
70
75
75
108
52
70
145
331
93
102
68
77
80
110
55
75
146
334
95
141
63
84
82
112
49
78
64.8
61.5
59.5
61.8
62.8
63.8
64.0
59.4
57.1
51.5
53.1
55.8
58.9
59.8
61
65
60
62
61
59
61
62
60
63
59
64
58
65
70
58
69
56
67
50
64
52
66
55
66
58
68
59
101.9
101. 5
105. 9
105.9
106.0
104.7
105.5
96.0
95.9
104.2
103.3
103.9
102.2
101.0
92
102
97
105
92
102
98
102
102
106
100
106
100
106
100
107
100
107
100
107
100
106
98
106
101
106
100
105
91
95
84
104
107
106
92
108
104
105
90
109
104
106
91
109
106
104
89
107
104
101
91
104
109.2
105.2
105.0
114.5
121
122
116
101.4
101.0
114.0
110
58
108
80
69
113
265
85
108
59
107
81
64
111
271
88
117
88
108
81
133
115
317
91
70.6
54
60
106
68.7
42
61
107
82.8
62
67
134
••114.8 rill. 5
93
97
85
101
111.1
109.6
112.8
119.8
118.6
119
121
138
135
132
131
106.7
106.8
105.1
103.7
118.7
r
134
114.4 rllO.1
117. 9 '116.8
115.3
114.8
115
74
108
81
115
65
107
82
••158
'•no
118
115
47
107
86
70
119
304
89
115
42
105
87
65
117
314
92
118
48
114
86
65
116
242
86
115
51
111
89
63
111
250
87
131
74
119
92
107
120
313
93
128
60
119
90
r
129
41
119
96
65
126
302
94
128
38
118
98
63
121
311
95
r
116
118
315
88
117
309
88
r82.2
'81.4
60
67
132
'61
67
129
80.2
58
67
128
78.7
47
67
129
63.5
64.1
45
58
93
37
60
95
121.7
85.4
59
76
130
-120. 4 '120.4
129
135
123
304
91
r
83.1
59
74
127
132
129
52
119
91
'105
127
298
90
82.1
57
74
124
84.2
58
77
124
82.8
44
78
124
r
Revised.
NOTE.—Figures for July 1939 are preliminary. For description see pages 835-866 of the BULLETIN for October 1938. Back data may be obtained from the Bureau of Labor Statistics. Underlying figures are for payroll period ending nearest middle of month.
811
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF CONSTRUCTION
[Figures for 37 States east of the Rocky Mountains, as reported by the F . W. Dodge Corporation.
Value of contracts in millions of dollars.]
Nonresidential building
Residential
building
Total
Factories
Month
1938
1939
1938
1939
June
July
August
September
October
November
December
192.2
118.9
226.9
222.0
283.2
251.0
239.8
313 1
300.9
357 7
301.7
389.4
251.7
220.2
300.7
330.0
308.5
288. 3
36.2
40.0
79.4
74.6
83.2
85.7
88.0
99 7
99.6
112 7
95.3
91.5
80.2
79.0
125.2
114.4
133.8
111.9
Year
3,196. 9
January
February
March
April
May
1938
1939
6.6
4.9
15.7
11.5
8.6
10.7
9.7
11 3
10.7
13 8
10. 5
7.0
Educational
1938
1938
1939
15.4
13.0
20.2
18.9
19.2
18.8
26.2
18.3
14.0
24.2
13.7
14.0
7.1
9.5
13.0
17.5
13.0
15.8
121.1
985.8
Commercial
17.3
13.5
17.4
21.3
19.5
26.8
1
Other i
1939
19.0
15.4
21.0
16.9
11.8
14.7
10.7
21 4
33.9
47 0
49.0
73.3
1938
31.7
21.8
27.6
21.1
16.4
12.5
334.1
215.8
Public works
and public
utilities i
16.4
15.1
31.0
33.1
38.2
37.7
26.1
36 3
33.4
46 0
42.8
45.2
1939
1938
28.9
24.7
39.8
34.8
27.8
37.8
1939
98.6
30.5
59.7
67.0
122.2
83.5
79.3
126 1
109 3
114 0
90.4
158.4
401.2
86.5
71.6
77.7
121.0
97.9
83.6
1,139.0
1
Not strictly comparable with data for earlier years due to changes in classification.
NOTE.—Due to change in publication policy of the F . W. Dodge Corporation, data for July 1939 will be published in the BULLETIN for
October 1939.
CONSTRUCTION CONTRACTS AWARDED, BY TYPES OF FINANCING
[Figures for 37 States east of the Rocky Mountains, as reported by the F. W. Dodge Corporation. Value of contracts in millions of dollars.]
Total
Privately-financed
Publicly-financed i
1
Month
January
February
March
April
May
June
July
August
September
October
November
December
__
Year
1934
1935
1936
1937
1938
1939
1934
1935
1936
1937
1938
1939
1934
1935
1936
1937
1938
186
97
178
131
134
127
120
120
110
135
112
93
100
75
123
124
127
148
159
169
167
201
188
264
215
140
199
235
216
233
295
275
234
226
208
200
243
188
231
270
244
318
322
281
207
202
198
209
192
119
227
222
283
251
240
313
301
358
302
389
252
220
301
330
308
288
300
157
65
126
78
72
73
52
69
69
79
74
61
55
38
68
53
47
64
67
92
97
114
118
196
149
79
96
105
94
116
153
153
116
101
89
82
112
69
66
74
93
137
131
104
80
78
93
115
118
51
95
99
144
108
98
171
160
203
179
279
148
111
128
160
135
128
137
29
31
52
53
63
54
67
51
41
57
38
32
45
37
55
71
80
84
93
76
70
87
70
68
66
62
103
130
122
116
141
122
119
125
119
117
130
119
165
195
151
180
191
178
127
124
106
94
75
68
132
123
139
143
142
142
141
154
123
110
975 1,007
1,334
1,152
1,705
837 1,341
1,761
1,492
1,543
1,845 2,675 2,913 3,197
568
1939
104
109
173
170
174
161
163
Back figures —See BULLETIN for February 1938, p. 159. Data for years prior to 1932 not available.
CONSTRUCTION CONTRACTS AWARDED, BY
DISTRICTS
COMMERCIAL FAILURES, BY DISTRICTS
[Figures reported by Dun & Bradstreet. Amounts in thousands of
dollars.]
[Figures for 37 States east of the Rocky Mountains, as reported by the
F. W. Dodge Corporation. Value of contracts in thousands of dollars.]
Number
Liabilities
1939
1938
Federal Reserve district
1939
1938
Federal Reserve
1939
1938
district
July
July
June
July
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
Total (11 districts)
19, 729
52, 323
15, 951
37, 799
35,117
24, 361
54, 900
20, 961
13, 054
10, 991
14, 697
19, 664
44, 985
14, 797
40, 510
46,154
26, 728
47, 587
13, 596
16, 373
62, 377
11, 250
20, 894
21, 560
19, 770
40, 554
14, 214
8,278
9,434
15, 095
299, 883
288, 316
239, 799
17,171
8,692
8,432
Boston
New York
Philadelphia
Cleveland. _
Richmond
Atlanta
Chicago _
St. Louis ._
Minneapolis
Kansas City
Dallas
San Francisco
Total
June
July
July
June
July
71
259
72
70
35
48
153
39
13
41
24
92
63
260
71
63
36
38
190
28
20
57
30
96
98
288
64
67
56
68
173
42
12
38
14
118
1,134
4,267
1,439
905
486
608
2,670
463
89
419
223
1,447
958
3,136
366
946
714
482
2,115
471
277
354
265
1,525
1,200
5,138
738
1,876
440
1, 120
2,012
681
160
304
129
963
917
952
1,038
14,150
11, 609
14, 761
812
FEDERAL RESERVE
BULLETIN
SEPTEMBER
1939
MERCHANDISE EXPORTS AND IMPORTS
[In millions of dollars]
Merchandise imports 2
Merchandise exports 1
Excess of exports
Month
1935
January.
February
March
_
1936
1937
1938
1939
223
233
289
262
275
213
219
268
231
249
236
1935
1938
1939
1936
1937
167
152
177
187
193
199
240
278
307
171
163
173
178
158
190
171
171
157
203
192
191
287
285
286
160
148
146
186
203
179
1935
1936
1937
1938
11
— 11
-4
-18
—45
-51
118
99
102
35
61
77
-10
9
-5
-18
5
-21
115
109
87
45
47
57
176
163
185
199
182
195
9
11
8
April
May
June
164
165
170
193
201
186
265
274
257
233
July._._
August
September
173
172
199
180
179
221
268
211
297
228
231
246
177
169
162
195
193
216
265
246
233
141
166
168
37
-15
— 14
5
3
31
63
87
65
79
October
November
December
221
270
223
265
226
230
333
315
323
278
252
269
189
169
187
213
196
245
224
223
209
178
176
171
32
100
37
52
30
-15
108
92
115
100
76
98
Year
2,283
2,456
3,349
3,094
2,047
2,423
3,084
1,960
235
33
265
1,134
-6
-5
1939
CO
COCO
p Preliminary.
i Including both domestic and foreign merchandise.
i General imports, including merchandise entered for immediate consumption and that entered for storage in bonded warehouses.
Source.—Bureau of Foreign and Domestic Commerce.
Back figures.—See BULLETIN for January 1931, p. 18, for July 1933, p. 431, and for February 1937, p. 152.
FREIGHT-CAR LOADINGS, BY CLASSES
DEPARTMENT STORES—SALES, STOCKS
[Index numbers; 1923-25 average=100]
[Index numbers based on value figures; 1923-25 average—100]
1938
Sales i
Stocks (end of month)
Without
Adjusted
for seasonal
seasonal
variation adjustment
Adjusted
Without
seasonal
for seasonal
variation adjustment
1939
July Mar. Apr. May June
July
Month
Adjusted for seasonal variation
1938
Total
Coal
Coke
Grain and grain products._.
Livestock
Forest products
Ore
Miscellaneousl
Merchandise
61
62
43
89
39
37
32
65
60
66
62
55
73
40
36
86
73
62
60
43
56
76
40
38
75
70
61
62
51
42
81
40
40
58
70
61
67
68
51
90
36
40
64
71
61
Total
Coal
Coke
Grain and grain products...
Livestock
Forest products
Ore
Miscellaneous
Merchandise i
62
52
36
123
34
37
60
66
59
63
66
57
67
32
36
21
70
62
58
36
47
68
37
39
31
72
62
62
44
40
73
36
41
81
73
61
67
58
47
89
30
42
108
74
61
January...
February.
March
87
April.
May..
June..
85
July
August
September..
Without seasonal adjustment
70
64
52
111
34
43
112
74
61
1939
1938
1939
1939
82
68
1938
1939
65
69
68
64
60
67
70
86
October
November.
December..
Year..
85
r
Revised.
1
Based on daily average sales—with allowance for changes from
month to month in number of Saturdays and in number of Sundays and
holidays. Adjustment for seasonal variation makes allowance in March
and April for the effects upon sales of changes in the date of Easter.
iln less-than-carload lots.
Back figures.—Department store sales, see BULLETINS for August
NOTE.—For description and back data see pp. 522-529 of BULLETIN
for June 1937. Based on daily average loadings. Basic data compiled 1936, p. 631, and October 1938, p. 918; department store stocks, see BULby Association of American Railroads. Total index compiled by com- LETIN for March 1938, p. 232.
bining indexes for classes with weights derived from revenue data of
the Interstate Commerce Commission.
SEPTEMBER
813
FEDERAL RESERVE BULLETIN
1939
WHOLESALE PRICES, BY GROUPS OF COMMODITIES
[Index numbers of the Bureau of Labor Statistics.
1926=100]
Other commodities
All
commodities
Farm
products
Foods
95.3
86.4
73.0
64.8
65.9
74.9
80.0
80.8
86.3
78 6
104.9
88.3
64.8
48.2
51.4
65.3
78.8
80.9
86.4
68.5
99.9
90.5
74.6
61.0
60.5
70.5
83.7
82.1
85.5
73.6
91.6
85.2
75.0
70.2
71.2
78.4
77.9
79.6
85.3
81.7
109.1
100.0
86.1
72.9
80.9
86.6
89.6
95.4
104.6
92 8
90.4
80.3
66.3
54.9
64.8
72.9
70.9
71.5
76.3
66.7
83.0
78.5
67 5
70.3
66.3
73.3
73.5
76 2
77.6
76 5
100.5
92.1
84 5
80.2
79.8
86.9
86.4
87.0
95.7
95 7
95.4
89.9
79.2
71.4
77.0
86.2
85.3
86.7
95.2
90 3
94.2
89.1
79.3
73.5
72.6
75.9
80.5
80.4
83.9
77.6
94.3
92.7
84 9
75.1
75.8
81.5
80.6
81.7
89.7
86.8
82.6
77.7
69.8
64.4
62.5
69.7
68.3
70.5
77.8
73.3
1938—June
July
August
September
October
November
December
78.3
78.8
78.1
78.3
77.6
77.5
77.0
68.7
69.4
67.3
68.1
66.8
67.8
37.6
73.1
74.3
73.0
74.5
73.5
74.1
73.1
81.3
81.4
81.4
81.3
81.1
80.6
80.3
90.1
91.5
91.9
92.0
93.4
94.6
93.1
65.5
66.1
65.9
65.8
66.2
66.2
65.8
76.4
76.8
76.8
76.6
75.4
73.7
73.2
96.1
95.2
95.4
95.5
95.3
94.9
94.6
89.7
89.2
89.4
89.5
89.8
89.2
89.4
76.3
77.7
77.7
77.3
77.1
76.6
76.7
87.1
86.4
86.4
86.2
85.7
85.8
86.0
72.9
72.7
72.4
72.4
72.6
73.0
73.1
1939—January
F e b r u a r y . . ._ __ __
March
April __ __
May
June
July
76.9
76.9
76.7
76.2
76 2
75.6
75.4
67.2
67.2
65.8
63.7
63.7
62.4
62.6
71.5
71.5
70.2
68.6
68 2
67.6
67.5
80.2
80.2
80.4
80.5
80 6
80.2
80.2
93.1
91.9
91.8
90.9
91 6
92.3
92.5
65.9
66.1
66.6
66.9
67 5
67.3
67.6
72.8
73.0
73.1
73.4
73 9
73.0
72.8
94.4
94.3
94.3
94.0
93 5
93.2
93.2
89.5
89.6
89.8
89.6
89.5
89.5
89.7
76.7
76.3
76.5
76.0
75.9
75.7
75.0
85.4
85.2
85.2
85.4
85.5
85.6
85.6
73.2
73.5
74.1
74.4
74.2
73.8
73.4
Week ending—
1939—May 6
M a v 13
M a y 20
M a y 27
June 3
June 10
June 17
J u n e 24
July 1
July 8
J u l y 15
July 22
J u l y 29
August 5
August 12
August 19
76.1
76.4
75 9
75.8
75.7
75.6
75.4
75 5
75 5
75.6
75. 5
75 2
74 8
75 1
74.8
74.6
63.6
64.4
64 1
63.5
63.1
62.7
62.0
62 7
62.9
64.1
63.3
62 2
61 4
62.5
61.4
60.4
68.3
68.5
67 4
67.6
67.5
67.3
67.1
67.4
67.4
68.1
67.6
67. 5
66.7
67.2
66.7
66.2
80.9
81.0
80 7
80.7
80.6
80.6
80.6
80.6
80.5
80.3
80.4
80.4
80.4
80.5
80.5
80.4
91.8
92.1
92 2
92.6
92.6
92.8
93.0
93.0
93.1
92.8
92.8
93.2
93.7
93.7
93.5
92.8
66.8
67.0
67 0
67.1
66.9
66.9
66.8
66.7
66.9
67.0
67.1
67.4
67.5
67.4
67.2
67.4
74.6
74.8
74 4
74.1
74.1
73.9
74.1
74.1
73.7
73.2
73.4
73.3
73.3
73.4
73.5
73.6
94.0
93.7
93 5
93.5
93.5
93.5
93.4
93.5
93.3
93.3
93.3
93.3
93.4
93.4
93.5
93.5
89.6
89.6
89.3
89.4
89.2
89.8
89.5
89.3
89.7
89.5
89.8
89.5
89.4
90.1
90.1
89.5
75.7
75.7
75.7
75.7
75.8
75.6
75.5
75.0
74.9
74.7
74.7
74.6
74.6
74 5
74.3
74.2
86.8
86.8
86.9
86.9
86.9
86.9
86.9
86.9
87.0
87.0
87.0
87.0
87.0
87.0
87.0
87.0
74.3
74.3
73.7
73.7
73.8
73.6
73.6
73.7
73.6
73.3
73.3
73.3
72.9
73.0
73.0
73.0
Year, month, or week
1929
1930
1931
1932
1933
1934
1935
1936
1937 .
1938
_.
_-
__
__
Total
Hides and Textile
leather
products products
foods
H I D E S AND L E A T H E R
July
Apr.
May
June
July
58.3
84 4
63.0
55.2
75 5
58.5
59.6
73.2
58.7
58.2
69.4
58.8
52.3
69.7
60.7
69 5
78.8
56.4
89 7
66 7
58.1
72.2
64.3
81 0
61 6
58.6
73.8
63.8
78.6
61 4
60.0
75.9
62 5
75.7
60 8
64.6
71.9
62.0
75.3
60 4
101.2 101.2 101.3
70.8 68.3 72.1
82. 5 82.8 83. 1
97.5 95.6 95.6
01.3
75.3
83.8
95.6
1O0.8
76.9
84.1
95.6
81.7
64. 1
60.1
39. 1
75.6
64.2
81.2
65.1
60.2
40.2
75.4
64.1
PRODUCTS:
Shoes
Hides and skins
Leather
Other leather product s
TEXTILE
PRODUCTS:
Clothing
Cotton goods . .
Hosiery a n d underwear
Silk and rayon
Woolen and worsted goods
Other textile products
F U E L AND L I G H T I N G M A TERIALS
Anthracite
______
Bituminous coal
Coke
Electricity
Gas
Petroleum products
Housefurnishing goods
Miscellaneous
1939
1938
FOODS:
products
products _
and vegetables
Chemicals and
drugs
Subgroups
F A R M PRODUCTS:
Dairy
Cereal
Fruits
Meats
Other
Metals
and metal Building
products materials
1939
1938
Subgroups
Grains
Livestock and poultry
Other farm products
Fuel a n d
lighting
materials
81.7
65. 1
59 8
29.9
75.9
65.4
81.6
63.4
60 2
37.8
75.2
64.9
81.7
63.3
60.2
40.7
75.4
65.3
76.2 74.7 75.3
97 9 98 6 99 0
104 2 104 2 104.2
84. 7
91 0 84 1 86.0
56.8 51.9 52.5
75. 5 72.6
95 6 95 8
L04. 2 104.2
88.9
52.5
52. 2
July
Apr.
May
June
METALS AND METAL PRODUCTS:
93.4 93.4
Agricultural implements.
__. _ P5 9 93.3
97 3 94.6
94.6 94.6
Farm machinery
Iron and steel
97.2 96.1
95.7 95.2
Q6 0
Motor vehicle 3 1
93.4
93.0 93.0
71 8 74.7
Nonferrous metals
73 1 72.9
Plumbing anc heating
79.5
79.3
79.3 79.3
BUILDING MATER IALS:
90 7 93.0
91 7 91.1
Brick and tile
Cement
91 0 91 5 91 5 91 5
Lur nber . _.
91.2 90.7
88. 8 91.5
30 5 81.3
Pah i t a n d Daint materials
81.6 82.4
Plumbing and heating
79.5 79.3
79.3 79.3
107. 3 107.3 107 3 107.3
Structural stef 1
Oth er building materials
91.2 89.7
89.6 89.5
CHEMIC ALS AND D R U G S :
Che micals
79.4 79.2
SI. 7 79.3
Dru srs and Pharmaceuticals
74 8 71.9
71.9 71.9
Rfi Q
69.6
Fertilizer materials _ . .
69.7 69.5
Mixed fertilizers.
__
7? 9 72.8
71.8 71.7
HOUSEFURNISHING GOODS:
Fur nishings.. .
30.5 89.6
89.8 90.0
Fur niture
32.2 81.0
81.0 81.0
MlSCEL . A N E O U S :
A u t o tires a n d tubes
57 4 60 5 60 5 60. 5
76 8 92. 1 87.4 81. 5
Cattle feed
Paper and pulp
. _ . W 8 81.1
80.4 79.9
Rubber, crude
34 2 34.4
31 9 33.3
Other miscella neous
SO. 7 81.4
81.4 81.3
July
93.4
94.7
95.1
93.0
73.3
79.3
90.6
91.5
91.8
82.2
79.3
107.3
89.6
78.2
71.8
67.5
72.6
90.0
81.0
60.5
72.4
79.9
34.7
81,3
1 Preliminary revision.
2 Revised series.
Back figures—For monthly and annual indexes of groups, see Annual Report for 1937 (table 86); for indexes of subgroups, see Annual Report
for 1937 (table 87).
814
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
AUGUST CROP REPORT, BY FEDERAL RESERVE DISTRICTS
[Based on estimates of the Department of Agriculture, by States, as of August 1, 1939]
[In thousands of units]
Corn
Cotton
Federal Reserve district
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis.. .
Kansas City
Dallas __
San Francisco
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
,8t. Louis
MinneapolisKansas City
Dallas
San Francisco
Total
1
Production
Estimate
Aug. 1,
1939
Production
1938
1938
Estimate
Aug. 1,
1939
Production
1938
Estimate
Aug. 1,
1939
Bales
Bales
Bushels
Bushels
Bushels
Bushels
Bushels
Bushels
7,456
24, 941
47, 889
204, 262
140, 669
154, 209
1,050,414
324, 780
247, 324
156, 682
94, 320
6,942
8,324
19, 810
52, 956
27, 263
6,572
67, 734
66,081
30, 268
287, 758
36, 020
83, 851
6,876
17, 067
41, 692
24, 092
5,521
56, 474
55,903
24, 788
223,169
30, 402
64, 726
68
108
139
120
60
64
156
84
1,847
143
189, 588
10,148
102
41, 901
1,907
97
146, 391
4,430
102
27, 431
2,459, 888
686, 637
550, 710
244,164
180, 722
1,048
2,623
1,319
2,602
i 3, 386
2 3, 223
467
3,819
600
379
3,313
576
7,633
29, 317
52, 521
199, 591
138, 232
194, 289
1, 038, 749
332,179
227,136
224, 284
91, 577
6,730
11,943
11,412
2, 542, 238
Tame hay
White potatoes
Tobacco
Estimate
Aug. 1,
1939
Production
1938
1938
Estimate
Aug. 1,
1939
Production
1938
Estimate
Aug. 1,
1939
Production
1938
Estimate
Aug. 1,
1939
Bushels
Bushels
Tons
Tons
Pounds
Pounds
Bushels
Bushels
Production
6 326
27, 708
19, 222
49, 425
20, 949
15, 276
430, 768
51, 571
235, 287
134, 530
39, 563
23, 214
6,533
22, 293
15, 544
43,893
21, 827
14, 606
350, 956
40, 909
239,093
75, 732
35, 355
31, 285
3,523
5,737
2,376
5,478
3,729
3,419
18, 379
6,825
10, 745
7,002
1,403
11,683
3,210
4,486
1,927
4,860
3,342
3,246
17,014
6,955
9,397
6,361
1,402
11,101
22, 847
1,842
32,110
105, 694
746, 014
188,189
33, 239
241, 254
2,733
4,612
33,003
1,965
31,215
115, 646
990, 442
188,916
32, 801
254, 467
2,667
4,536
47,316
32,123
22, 996
20, 554
27, 261
15,466
53, 457
13, 978
43, 347
26,160
3,778
65,181
57, 919
27, 691
20, 423
19, 789
22, 827
14,514
46,858
12, 212
44,168
22,049
3,370
65,014
1,053, 839
898, 026
80, 299
73, 301
1, 378, 534
1, 655, 658
371,617
356, 834
Includes 16,000 bales grown in miscellaneous territory.
2 Includes 17,000 bales grown in miscellaneous territory.
wheat
Estimate
Aug. 1,
1939
Oats
Federal Reserve district
Spring
1938
Production
_
Total
Winter wheat
815
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
STATISTICS FOR FEDERAL RESERVE CHART BOOK
Chart
book
page
WEEKLY FIGURES
1939
July
19
July
26
Aug.
2
Aug.
9
Reserve bank credit—total__
Bills discounted
Bills bought
U. S. Qov't securities. __
Gold stock
Money in circulation
Treasury cash
Treasury deposits
Member bank balances
Required reserves*
Excess reserves—total
2
New York
City 2
Chicago2
2
Reserve city banks
Country banks 2
3, 5
5
5
5
3
3, 9
3
3
3, 6
6
7
7
7
7
7
2.54
2.51
2.48
2.46
2.45
0)
0)
2.49
0)
0)
2.45
0)
0)
2.44
16.19
7.02
2.53
.76
10.41
5.93
4.46
2.55
.29
1.04
.58
16.23
7.00
2.51
.74
10.44
5.95
4.47
2.57
.29
1.03
.57
16.25
7.05
2.37
.86
10.41
5.95
P4. 46
2.51
.32
1.05
P. 60
16.27
7.07
2.35
.84
10.51
5.98
P4.50
2.45
.37
1.06
P. 62
0)
0)
REPORTING MEMBER BANKS
Total, 101 cities:
Loans and investments
Investments
Loans
Adjusted demand
deposits
Time deposits
U. S. Gov't deposits
Domestic bank balances
Foreign bank balances, _
New York City:
U. S. Gov't obligations..
Other securities
Commercial loans
Brokers' loans
100 cities outside New York:
U. S. Gov't obligations.Other securities
Commercial loans
14
14
14
15
15
15
15
15
16
16
16
16
17
17
17
MONEY RATES AND SECURITY
MARKETS
F.R. bank discount rate, N.Y.
19
Commercial paper
19
Bankers'acceptances
19
U. S. Treasury bills
21
U. S. Treasury notes
21
U. S. Treasury bonds
21, 25
Corporate Aaa bonds
25
Corporate Baa bonds
25
Stock prices, totaH
27, 29
Industrial..
27
Railroads
27
Public utilities 2
27
Volume of trading (mill,
shares)
29
Brokers' loans (mill, dollars)
29
2.42
16.34
7.09
2.37
.78
10.63
6.04
P4. 57
2.53
.37
1.05
P. 62
1.00
.56
.44
.04
.44
2.16
2.89
4.82
22.14
13.94
8.19
22.24
14.08
8.17
22.27
14.12
8.16
.56
.44
.04 Central gold reserves:
.43
United States
2.17
England
2.92
France
4.82
Netherlands
U. S. Gov't interest-bearing
Wednesday figures; in unit indicated
debt—total
Bonds
89
90
90
87
Notes
100
Bills
104
105
105
102
25
Special issues
27
27
27
26
87
86
89
90
88
1.40
615
.56
.44
.04
.43
2.14
2.90
4.79
.94
681
.56
.44
.04
.42
2.14
2.90
4.78
.79
655
75.2
62.2
67.5
80.4
June
July
76.2
63. 7
68.2
80.6
78.9
98.4
79.2
92
75.6
62.4
67.6
80.2
79.2
98.3
79.5
98
75.4
62.6
67.5
80.2
79.2
97.6
91
33
58
90.1
84.4
62
85
66
97
38
59
90.6
85.9
67
86
r
67
P101
42
^59
*>90. 5
P83. 8
69
86
67
In millions of dollars
257
102
155
258
108
150
249
203
47
236
179
57
5,422
5,209
5,468
5,713
P5, 468
Pb, 494
3,627
1,582
3,695
2,018
P3, 559
589
147
361
81
552
160
341
51
570
213
321
36
^273
Pl, 935
In billions of dollars
.56
.44
.04
.43
2.17
2.91
4.79
20
20
20
20
20
15.96
1.07
2.57
.82
16.11
1.07
2.57
.80
P16. 24
39.75
27.10
7.27
1.31
4.07
39.89
27.17
7.24
1.31
4.17
40.11
27.25
7.24
1.31
4.32
1.16
2.57
.77
Per cent per annum
.57
631
4
33
33
33
33
Wholesale commodity prices:*
United States:
All commodities
31, 32
Farm products
31
Foods
31
Other commodities...
31
England
32
France
32
Germany
32
Industrial production 5
35
Manufacturing production:•
Total 8
37
Durable
.__.
37
Nondurable 6
37
Factory employment
43
Factory payrolls
43
Freight-car loadings 5 6
45
Department store sales
47
Department store stockss
47
22.34
14.15
7
8.19 Construction contracts awarded:
Total
41
Residential
41
17.39
17.60
17.64
17.46
17.55
Other
41
5.25
5.22
5.24
5.24
5.25
.54 Exports and imports:
.55
.55
.55
.55
Exports
(incl.
re-exports).
49
7.18
6.91
6.80
7.01
7.05
General imports
49
.62
.63
.62
.63
.66
Excess of exports
49
4.25
4.27
4.33
4.35
4.36 Income payments:
Total
adjusted
50
1.18
1.11
1.12
1.18
1.18
Total unadjusted
50
1.47
1.41
1.41
1.44
1.46
Compensation
of em.53
.47
.52
.50
.48
ployees
50
Other
50
6.41
6.42
6.43
6.44
6.45
2.16 Cash farm income:
2.14
2.14
2.15
2.15
51
Total
2.44
2.49
2.49
2.45
2.45
51
Crops
51
Livestock and products__
Averages of daily figures'; per cent
51
Government p a y m e n t s . . .
per annum
22.03
13.91
8.12
Figures for week3; in unit indicated
BUSINESS CONDITIONS
Wholesale commodity prices:
All commodities
Farm products
Foods
Other commodities
Steel plant operations
(% of capacity)
Automobile production
(thous. cars)
Electric power production
(mill. kw. hrs.)
Total freight-car loadings
(thous. cars)
BUSINESS CONDITIONS
(0
0)
2.52
May
Index numbers
1923-25=100
MONTHLY FIGURES
Wednesday figures; in billions of
dollars
RESERVES, GOLD, AND
CURRENCY
Chart
book
page
Aug.
16
74.8
61.4
66.7
80.4
75.1
62.5
67.2
80.5
74.8
61.4
66. 7
80.5
74.6
60.4
66.2
80.4
38
56.4
60.6
59.3
60.1
62.1
38
47.4
40.6
28.3
24.9
13.0
39
2,295
2,342
2,325
2,333
2,368
39
656.3
659.8
661.1
665.2
674.2
Customers' rates:
New York City
8 other Northern and
Eastern cities
27 Southern and Western
cities
23
23
23
Oct.Dec.
1938
QUARTERLY FIGURES
Jan.Mar.
1939
Apr.June
1939
In millions of dollars
Domestic corporation security
issues, total
New
Refunding
28
28
28
799
167
632
276
82
193
'661
rl29
532
r
5
p Preliminary.
Revised.
• Estimated.
Adjusted for seasonal variation.
6
1 Less than $5,000,000.
Points in total index of manufacturing production.
2
3
7
Averages
of
daily
figures,
see
footnote
.
Three-months moving average adjusted for seasonal variation.
3
8
Figures are shown under the Wednesday date included in the weekly period.
Series is discontinued. New series on somewhat different
* Index numbers, 1926=100.
basis to be substituted.
NOTE.—Copies of this chart book can be obtained at a price of 50 cents. Banking statistics for call report dates are published from time to
time. The latest figures appear on page 816 of this BULLETIN.
816
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
BANKING STATISTICS FOR CALL REPORT DATES—CHART BOOK SERIES
[In billions of dollars]
Chart
book
Investments, total
U. S. Government obligations, total
Direct obligations
Guaranteed obligations
Other securities, total
State and local government securities..
Other domestic
Foreign securities
Loans, total
Security loans, total l 2 ..
Brokers' loans
Loans on securities ( excluding brokers' loans) 5
Real estate loans
Other loans, total 12 2
Commercial loans _.
Open-market paper.
Loans to banks
All other loans'
1937
1939
1938
Dec.
31
Mar.
June
30
Dec.
Mar.
June
30
Sept.
28
Dec.
31
57.48
25.40
25.53
5.55
56.79
25.69
25.23
5.42
57.42
25.96
25.26
5.53
56.83
26.26
24.05
5.69
56.78
26.34
24.13
5.50
56.74
26.27
24.39
5.47
57.64
26.18
25.19
5.49
59.12 •59. 17 ?60.99
26.30 26. 47 P26. 74
26.10 P26.13 P27. 39
5.82
. 69 P6.06
11
11
11
11
21.65
10.99
6.40
33.00
21.35
11.16
5.75
32.53
21.40
11.35
5.30
32.74
20.39
11.52
5.44
31.75
20.51
11.59
5.62
31.52
20.89
11.56
6.10
30.72
21.60
11.46
6.09
31.63
22.29
11.51
6.51
32.07
22.36
11. 60
6.82
32.10
23.59
11.72
7.10
32.60
11
12
13
13
12
13
13
13
19.64
13.55
11.64
1.91
6.10
2.21
3.65
.24
18.83
12.72
10.86
1.86
6.11
2.33
3.53
.25
18.45
12.69
10.87
1.82
5.77
2.13
3.40
.23
17.79
12.37
10.57
1.80
5.42
2.03
3.21
.18
17.98 17.78
12.45 12.34
10.63 10.22
1.83
2.13
5.52
5.44
2.19
2.13
3. 15 3.13
.18
.18
18.69
13.01
10.71
2.30
5.68
2.30
3.19
.18
18.86
13.22
10.88
2.34
5.64
2.45
3.01
.18
19.05
13.35
10.69
2.66
5.70
2.55
2.96
.18
19.46
13.78
10.95
2.83
5.69
2.55
2.94
.19
11
12
13
13
12,13
12
13
13
13
13.36
4.22
1.41
2.79
2.40
6.73
6.04
.63
.09
13.70
4.28
1.42
2.82
2.44
6.97
6.22
.71
.10
14.29
4.37
1.54
2.83
2.51
7.41
6.66
.64
.12
13.96
3.70
.95
2.75
2.55
7.71
7.00
.64
.07
13.55
3.54
.88
2.67
2.56
7.45
6.75
.61
.10
12.94 13.21 13.05
3.30 2 1.75 1.57
.97
.84
.71
2.59 2.78
.73
2.72
2.75
2.66
6.97 2 8.74 8.73
6.36 2 5.45 5.53
.44
.42
.48
.13 3 .12
.10
2. 73 2.67
13.14
1.47
.73
.74
2.83
8.85
5.57
.42
.06
2.80
All banks in the United States:
Total deposits and currency..
Time deposits
Demand deposits adjusted._.
Currency outside banks
Member banks:
Demand deposits adjusted,.
Time deposits
Interbank balances
Loans and investments
1936
12.94
3.32
.70
2.61
2.61
7.01
6.40
.49
.12
Mar.
29
June
30
p Preliminary.
1 In chart 12 loans to banks on securities are included in the total of "security loans" prior to June 30, 1937 and in the total of "other loans"
since that date.
* Figures are reported on somewhat different basis beginning December 31, 1938. For detailed explanation of the changes and for estimates
on old
basis as of December 31, 1938, see BULLETIN for April 1939, page 332.
3
Not originally plotted in chart book.
INTERNATIONAL FINANCIAL STATISTICS
817
818
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
GOLD RESERVES OF CENTRAL BANKS AND GOVERNMENTS
[In millions of dollars]
Countries in Tripartite Accord
End of month
1934—December.
1935—December.
1936—December.
1937—December.
1938—August
September
October....
November.
December,
1939—January...
February.
March
April
May
June
July
Total i
(52
coun- United United
BelFrance gium
tries)
States Kingdom
21,051
21, 604
22,630
23,964
23, 966
24, 648
24, 997
25, 287
25, 468
24,003
24,175
24, 387
24, 964
25,140
P25, 280
P25, 536
1,584
1,648
2,584
2,689
2,690
2,690
2,690
2,690
2,690
1,042
1,042
1,066
1,066
1,067
1,067
1,162
8,238
10,125
11, 258
12, 760
13,136
13, 760
14,065
14, 312
14, 512
14, 682
14, 874
15, 258
15, 791
15, 957
16,110
16, 238
590
611
632
597
517
539
562
584
581
582
588
518
520
524
540
573
5,445
4,395
2,995
2,564
2,428
2,428
2,428
2,435
2,435
2,435
2,435
2,435
2,574
2,574
2,574
2,574
Other countries
Switzerland
Netherlands
Argentina
National B.I.S.
Bank
573
438
490
930
1,008
1,008
1,008
1,008
995
995
974
909
834
823
800
Brazil
British
India
403
444
501
469
435
435
434
434
431
431
431
428
428
428
428
P428
624
454
655
690
695
680
640
595
Bul-
Canada
134
189
188
184
190
187
188
186
192
197
206
210
212
214
213
P213
275
275
275
274
274
274
274
274
274
274
274
274
274
274
274
Chile
China
29
29
29
30
30
30
30
30
30
30
30
30
30
30
7
10
17
17
18
18
18
19
20
21
21
21
P21
P21
P30
^30
Other countries—Continued
E n d of
month
Czecho- DenCoslolombia vakia
mark
Egypt
Ger-
Greece
Hungary
112
112
91
92
93
81
83
83
83
83
83
67
66
65
62
60
1934—Dec. _
1935—Dec.. _
1936—Dec.. _
1937—Dec. .
1938—Aug...
Sept...
Oct.—
Nov...
Dec__
1939—Jan. ___
Feb.,.
Mar...
AprilMay..
June...
July—
Italy 3
Japan
518
270
208
210
210
210
210
210
193
193
193
193
193
193
193
193
394
425
463
261
164
104
164
164
164
164
164
164
164
164
Java
1934—Dec
1935—Dec
1936—Dec
1937—Dec
1938—Aug
Sept
Oct
Nov
Dec
1939—Jan
Feb
Mar
April
May
June
July
104
109
114
120
124
129
132
132
133
133
134
134
135
136
137
P137
184
212
203
189
202
220
219
220
220
220
219
221
218
218
219
740
735
718
718
525
525
525
525
525
525
525
525
525
525
525
525
159
185
240
244
280
310
321
321
321
331
331
332
339
344
346
348
Turkey
Peru
Poland
96
84
75
83
85
83
82
84
85
85
85
85
84
84
84
19
20
20
20
19
19
19
19
20
19
19
19
19
19
P19
P19
Government gold reserves 1 not included
in total for 52 countries
Uruguay
Yugoslavia
51
68
55
56
56
57
57
57
57
57
57
57
57
57
16
other
countries 6
154
158
175
169
125
125
127
125
125
127
126
124
126
126
P125
P126
p Preliminary.
12 Data reported monthly incomplete. For additional data see section at end of table.
Figure for M a y 1939 officially reported and carried forward.
3 Figure for Mar. 1937 officially reported as of 20th of month and carried forward through
Nov. 1937. Figures for Dec. 1937 through Mar. 1938 officially reported and carried forward
through Nov. 1938. Figure for Dec. 1938 officially reported and carried forward.
* Figure for Aug. 1, 1936, carried forward through Mar. 1938; Apr. 1938 figure officially reported and carried forward.
a These 16 countries are: Albania, Algeria, Australia, Austria through Mar. 7, 1938, Belgian
Congo, Bolivia, Danzig, Ecuador, El Salvador, Estonia, Guatemala, Finland, Latvia, Lithuania,
Morocco, and Siam.
NOTE.—For back figures and description of table see BULLETIN for June 1933, pp. 368-372,
and July 1936, p p . 544-547; also see footnotes to table in BULLETIN for Aug. 1936, p. 667, and Dec
1937, p. 1262.
107
107
107
107
?164
E n d of month
Sweden
Norway
82
101
P164
Other countries—Continued
Portu- Ruma- South Spain 4
nia
Africa
New
Zealand
Mexico
End of
month
United United
France
States Kingdom
31
53
93
81
1934—Dec...
1935—Dec...
1936—Dec. _ _
1937—Dec. _
1938—Mar...
June..
Sept...
Oct.—
Nov...
Dec...
1939—Jan.,..
Feb...
Mar...
Apr.._
June —
July..
Belgium
244
1,489
62
759
80
()
1,732
2 103
130
331
381
465
553
4^449
1
Reported at infrequent intervals or on delayed basis: U. S.—Exchange Stabilization Fund
(Special A/c No. 1); U. K.—Exchange Equalization Account; France—Exchange Stabilization
Fund and Fund for Support of Rentes; Belgium—Treasury. Gold in stabilization funds of
Switzerland and Netherlands and certain other
gold of central banks and governments not reported.
2
First date reported.
s $1,648,000,000 transferred Jan. 6, 1939, from
Bank of England to Exchange Account; $26,000,000 transferred back on Mar. 1, and $94,000,0004 on July 12, 1939.
$140,000,000 transferred from Fund to Bank
on April 20, 1939.
819
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
GOLD PRODUCTION
Outside U. S. S. R.
[In thousands of dollars]
Estimated
world
production
outside
U.S.S.R.
Year or month
Production reported monthly
Africa
Total
South
Africa
Rhodesia
North and South America
West
Africa
1929_.
1930_.
1931..
1932..
1933..
382, 532
401,088
426,424
458,102
469, 257
352, 237
365, 258
386, 293
413, 459
411, 208
$1=25-8/10 grains
215, 242 11, 607
221, 526 11,476
224, 863 11,193
238, 931 12,000
227, 673 13, 335
1933.
1934.
1935..
1936.
1937..
1938..
794, 498
823, 003
882, 533
971, 514
1, 041, 987
1,116, 983
696, 218
707, 288
751, 979
833,088
892, 535
956, 851
385,
366,
377,
396,
410,
425,
87, 533
90,445
91, 242
98,492
97, 845
97, 386
96, 785
98, 596
98, 702
74, 862
77, 371
78, 048
84, 946
83, 994
83, 320
82, 899
84, 708
84,189
94, 835 80,159
90, 964 76, 749
97, 627 82, 656
94, 435 79, 728
*>98, 267 PS3, 551
P96, 902 P81, 344
Belgian
Congo
of gold 9/10 fine ;
4,297
2,390
4,995
2,699
5,524
3,224
5,992
3,642
6,623
3,631
United
States'
r a ar m
n fa i af la
^
Mp\-irn
Mexico
Far East
Colom- Chile
bia
i. e., an ounce of fine gold=$20.67
39,862 13, 463
2,823
45,651
43,454 13,813
3,281
47, 248
55,
687
12,
866
4,016
49, 527
62, 933 12, 070
5,132
50, 626
52, 842
6,165
60,968 13,169
lia
British
India
683
428
442
788
3,009
8,712
9,553
12,134
14, 563
16, 873
7,508
6,785
6,815
6,782
6,919
10, 438 5,094
12, 045 8,350
9,251
11,515
13, 632 9,018
15,478 9,544
18, 225 10, 290
28, 568
30, 559
31, 240
40,118
46, 982
54, 264
11,715
11, 223
11,468
11, 663
11,607
11, 247
4,280
4,278
4,577
4,330
4,771
4,816
4,642
4,783
5,393
906
935
909
951
958
946
956
930
995
4,076
4,016
4,492
4,301
4,649
Pi, 369
940
863
938
912
936
*>936
$1=15-5/21 grains of gold 9/10 fine; i. e., an ounce of fine gold=$35
1938—April
May
June
July
,
August
September,
October
November December..
1939—January.._
February..
March
April
May
June
474
795
090
768
710
649
22,
24,
25,
28,
28,
28,
578
264
477
053
296
532
11,214
12,153
13, 625
16, 295
20, 784
24, 670
6,148
6,549
7,159
7,386
8,018
8,470
89,467
108,191
126, 325
152, 509
168,159
178,143
103, 224
104, 023
114, 971
131,181
143, 367
165, 055
22, 297
23,135
23, 858
26, 465
29, 591
32, 306
34, 351
35, 794
35, 509
36, 222
36, 622
36, 237
36, 449
35, 842
36, 007
2,374
2,415
2,394
2,410
2,415
2,365
2,445
2,381
2,318
2,024
1,989
2,020
2,067
2,053
2,048
2,174
2,204
2,240
702
686
726
716
716
743
725
728
751
12, 577
13, 953
12, 949
16, 781
16, 590
16, 937
16, 320
18, 579
16, 068
12, 895
13, 338
13, 674
14, 727
14, 425
14, 336
14, 394
14, 351
15,186
2,389
1,863
3,024
4,241
2,941
2,062
2,265
2,353
2,700
1,664
1,338
1,365
1,748
1,515
1,812
1,622
1,628
1,499
36,188
34, 505
37, 558
35, 613
37, 970
37, 065
2,287
2,069
2,202
2,252
2,355
P2, 363
2,230
2,221
2,346
2,349
v% 360
P2, 347
753
688
767
729
779
756
14, 919
13,153
14, 364
15, 260
15,167
14, 460
14, 396
13, 684
14, 498
14, 238
15,133
PU, 840
1,762
3,421
2,542
1,733
1,794
PI, 794
1,953
1,562
1,752
1,513
1,614
1,551
782
901
752
986
1,019
906
930
1,033
655
568
1,198
830
P795
P865
Gold production in U. S. S. R.: No regular Government statistics on gold production in U. S. S. R. are available, but data of percentage changes
irregularly given out by officials of the gold mining industry, together with certain direct figures for past years, afford a basis for estimating annual
production, in millions of dollars, as follows—at $20.67 per fine ounce: 1929, $15; 1930, $31; 1931, $34; 1932, $40; 1933, $56; at $35 per fine ounce: 1933, $95
1934, $135; 1935, $158; 1936, $185; 1937, $180; 1938 (preliminary), $184.
p Preliminary.
i Includes production in the Philippines.
NOTE.—For monthly figures back to January 1929 and for explanation of table see BULLETINS for March 1939, p. 227, February 1939, p. 151,
June 1938, pp. 549-540, and April 1933, pp. 233-35. For annual figures of world production back to 1873 (including Russia-U.S.S.R.), see Annual
Report of Director of Mint for 1936, pp. 108-109, 1937, pp. 104-105 and 1938, pp. 102-103. Figures for Canada beginning January 1938 are subject to
official revision.
GOLD MOVEMENTS
[In thousands of dollars at approximately $35 a fine ounce]
United States
Year or month
1934 1
1935..
1936..
1937..
1938..
Total
net
imports
or net
exports
Net imports from or net exports (—) to:
United
Kingdom
1,131,
1, 739, 019
1,116, 584
1, 585, 503
1, 973, 569 1,
499, 870
315, 727
174,093
891, 531
208, 728
BelFrance gium
Netherlands
Sweden
260, 223 8,902 94, 348
3 227,185
934, 243
573, 671 3,351 71,006
6,461
-13,710 90, 859
81,135 15, 488 163,049 60,146
Switzerland
Canada
12, 402 86, 829
968 95,171
7,511 72, 648
54, 452 111, 480
76, 315
1,363
Mexico
PhilipAusColom- pine
Japan
bia
Islands tralia
30, 270
13, 667
39,966
38, 482
36, 472
16, 944
10, 899
11,911
18, 397
10, 557
12,038 1,029
15, 335 3 , • "
21, 513 23,:
~3, 280
25; 427 34, 713 246, 464
27, 880 39,162 168, 740
All
other
countries
British
India
76, 820
75, 268
77, 892
50, 762
16,159
1
32, 316
47, 054
39, 743
30,179
68, 376
1938—May
June
July
August
September. _
October
November. _
December..
52, 775
55, 307
63, 815
165, 973
520,
562, 366
177, 768
240, 526
2,895
891
35
20, 599
3,248
4,976
91, 227 4,721 3,213
377, 984
443, 403 42, 959
99,145
17
101, 707 37, 395 1,979
630
726
962
14, 333
38,148
10, 810
7,171
731
5,650
715
11,123
3,183
1,446
2,236
3,457
2,550
2,108
1
1
2,113
4
4
11
2,107
2,285
3,232
2,422
1,772
2,721
2,720
2,943
2,655
3,582
2,984
3, 434
2,748
3,775
3,294
7,888
6,788
21, 950
5,782
28, 669
23, 497
35,095
5,740
5,788
14, 425
2,530
3,438
2,495
3,806
2,982
4,768
760
3,822 2 19, 150
1,797 2 22, 207
1939—January
February-__
March
April.May
June
July
156, 345
223, 281
365, 384
605, 797
429, 404
240, 430
278,636
52, 050
165, 377
250, 042
384, 925
302, 66'
128,196
177,805
10, 842
4,220
6,852
7, f" ~
12, 066
2,342
2,496
3,822
1,649
2,050
3,280
4,150
2,089
4,234
2,114
2,117
2,107
2,123
2,754
2,719
3,326
2,179
2,594
3,843
3,022
6,585
3,953
4,303
4,844
5,295
5,677
5,034
37, 819
5,446
11, 410
5,528
10, 931
14, 093
10, 938
1
175
3,685
4,944
3,390
2,244
2,760
10, 221
226
571 11, 520
7,685
15, 360
.1, 521
47,:
1
41, 832 3,840
1,136
27, 242
46,185
33, 678
-67
1,438
2
29, 256 3,840
1,400
8,227
816 37,179 27, 098
55, 680
21 84, 603 44, 564
2,284
3 41, 651 40, 449
5,644
55, 081
2
45,554
10 5,1"
1
17,191
15,196
2,252
1,148
5, 124
4,398
4,391
3 7, 073
3,909
3,072
6,416
1
Differs from official customhouse figures in which imports and exports for J a n u a r y 1934 are valued at approximately $20.67 a fine ounce.
2 Figures for November and December 1938 include imports from Argentina of $14,112,000 and $17,710,000, respectively.
3
Includes $4,503,000 from Argentina.
N O T E . — F o r gross import and exports figures and for additional countries see table on p . 788.
820
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
GOLD MOVEMENTS—Continued
[In thousands of dollars at approximately $35 a fine ounce]
United Kingdom
Year or
month
Total
net imports
or net
exports
Net imports from or net exports (—) to:
GerFrance many 1
United
States
-497,166
716, 269
-435, 502
369, 722
-276,830
1,169, 931
-834,009
420, 427
-1,050,395
- 285, 638
1934..
L935-.
1936..
1937..
1938..
1938—May...
June...
July...
Aug._.
Sept...
Oct....
Nov...
Dec...
1939—Jan. __,
Feb...
Mar..
Apr...
May .
June..
Julyp .
348,190 121,017 - 1 3 , 585 32, 575
142,137 - 4 , 726 -17,476 10,796
931
756, 215 23, 292 - 1 5 , 1 3 3 - 2 1 , 2 1 5
541,187 46,147 - 2 1 , 9 9 3 - 1 6 , 5 7 2 199,965
38,899 33,173 348,000-46,463 115, 540
97,478
89, 580
24,119
-73,132
-261,143
-210,171
- 9 6 , 508
- 6 6 , 726
-119
—5,233
-20,811 -6,137|
-997
-10,529
- 9 3 , 660 -5,726!
685
-360,016
-308, 528 69,604
-66|
-105,220
758!
-97,371
168 48,446 - 6 , 781
57 56, 764 -12,037
47 23, 212 - 5 , 7 5 0
- 2 5 8 -10,041
6,164
14, 358 120,075 - 7 , 498
535
33,982
4,077
6,005 - 2 , 3 2 8 - 5 , 2 4 5
9,990
2,057
- 3 6 , 514
-148,005
-259,984
-121,188
-294, 077
-51,591
-137,376
-3
- 5 0 , 814
-160,218
-183
-306,839
-357, 518 - 1 , 4 3 1
-262!
-287, 762
-127,293
-4121
-170,928
-120L
211
-253
396
779
111
23,477
1,039
29| 176, 451 19,164
4,01i
2, 008! 49,004
415! 22, 968
-SSj
1821 8,866
Germany
Year or
month
South
Africa,
Bel- NetherRhoBritish
Austragium lands U.S.S.R.
desia, India
lia
West
Africa
- 333
;
41,790
37, 981
26, 723
24,165
27, 831
335,
404,
488,
464,
333,
253 206, 693
295 181, 602
814 128, 421
837 66, 330
750 55, 744
2,467
2,024
2,490
2,102
2,839
705
155
528
35,407
40, 623
31, 516
31,192
16, 831
6,530
2,695
7,358
5,672
5,613
16,866
681
736
5,631
143
5,671
3,451
5,559
12, 656
45, 394
52, 636
38, 395
28,104
5,665
8
5,649
Other
British
countries
Sweden
Switzerland
62, 397
-9,123
32, 754 -50, 661 53, 465
28, 067 -10,129
22,079
- 8 1 -16,596
20, 761 -89, 371 -78,029
3,824
2,139
3,725
9,929
6,418
6,581
10, 356
3,035
3,023 - 4 , 750
4,204 -20,792
4,260
618
1,815
531
All
other
countries
14,126
37, 708
;-55,032
4,922
- 2 , 263
- 5 , 407
-16, 521
-10, 498
-21, 980
2,831
1,017
1,511
5,336
421
-920
-312
- 1 , 955
1,353
1,603
1,347
1,374 - 3 , 7 9 0
704
304
399
151 - 1 , 1 0 1
-1
1
,
1
4
8
1,417
- 3 2 -3,845
4,805 4 - 4 7 , 875
73, 394
-43:
2, 97r 4-145,856 - 3 , 793 32, 921
2,388
-2
153
911
747
329
-657
3,762
1,847
3,618
-425
1,504
-3,318
-14,190
Switzerland
-13,996
- 7 , 673
-11, 429
-11,151
-22, 763
- 4 , 671
British India
Net imports from or net exports (—) to:
Total
Total
net
net imports imports
or net 1 or net
exports exports United United
France
States King()
dom
Belgium
Increase in India:
Total
Gold
net
In
In
imports produc- Ingold
In
All
Neth- Geror net tion in dian earmarkother
private
exports India reItaly ered for
hold-8
lands many* coun()
tries
serves foreign
ings
account
1934
1935
1936
1937
1938
-90,920 -46,065 -12,784 - 4 5 , 955 - 2 9 , 235 18, 397
647 -54,858 -181,725 -13,940
42, 969 -230, 788
39, 305 14, 531
122, 278 - 9 , 1 2 7 - 1 , 7 1 4
-56,946
- 3 , ' 718
-51, 608 11, 940 -45,061 27, 739
- 3 5 , 224 - 1 , 2 4 5 - 1 , 1 2 8 76, 620 - 7 4 , 375 - 1 , 0 6 7
1938—May. _
June..
July..
Aug...
Sept..
Oct...
Nov. .
Dec.__
18,058
7,626
1,468
- 6 , 864
-36, 626
-16,134
-10,129
- 3 , 765
1939—Jan. __
Feb...
Mar. .
Apr...
May..
June..
33 - 3 , 786
-763
-21
-11,940 - 2 , 1 1 2
1,547
-37,332 -10,786
9,
-162,645 -54,266 -104, 650
9,967
8,059 - 2 , 329 - 5 , 4 1 9
-5,807 -10,696 - 8 , 589
93
-284
1,143
7,775 - 2 , 973
-5,201
5,978
-8,837
-1,338
9,024
1,454
913
-5,690
-1,549 -2,009
- 4 8 4 5,814
-6,041 - 1 4 2
-1,283
-37
117
-2
-158
-38
-117
-4
-166
2,396
5,657
3,962
3,824
549
-149
1
24
-213
556
-1,
-1,509 - 5 7 6
- 8 6 4 10, 819
-4,
- 7 3 19, 585
-1,609
-8
6
269
10, 749
-1,144
- 2 , 294
—2,!
5,256 - 7 , 8 3 9
16,128 -14,071
o
10,464 - 8 , 382
418
15,940
-7
-616
907
-1,140
33
13
228
-1,854
-139
33
-220
-2
-230, 720
-161,872
-121,066
- 6 1 , 723
-54,661
11,223
11, 468
11, 663
11, 607
11, 247
187 - 3 , 452
282 - 2 , 327
222 -10,988
342 -7,082
-957
-10,251
-56
3 -7,622
-265
31 -2,283
-438
211
-209
935
909
951
958
946
956
930
995
-1,274
-7
-125
-97
-15
-3,288
-14,830
-860
-5,113
- 2 , 4 3 1 - 2 , 5 7 3 - 3 , 394
-1,138
-239
- 4 , 202
-3,116
-76
P - 3 , 77'
-229
940
863
938
912
937
-43
19,431 2,580
1,543
342 - 9 , 607 7 2,812
25, 542
51, 299 4,600 -2,990 s 26, 368
- 6 5 7 6,553 16,461 10,609
11,314 25,125 32, 745
924
2,551
994
2, 884
-1,581
-8, 327
-3,876
-718
72,
229
-6,175
- 2 , 487
- 8 , 893
- 6 , 267
173
-6
12, 078
1,909
5,690
4,479
-3
11, 423
7.749
4,812
5,197
1,839
p Preliminary.
1 Beginning April 1938 figures refer to Greater Germany.
2
Includes $17,465,000 exported to Rumania and unspecified net imports of $95,937,000.
* Includes $67,655,000 exported to Central and South America.
Fi
f Ail
dM i l d
t t Canada of $45,972,000 and $144,910,000 respectively.
t; subsequently, gold held by Reserve Bank of India to which government gold was transferred.
Figures derived from preceding columns; god movement plus production minus increases in Indian reserves and gold earmarked for foreign
account in India.
1 Includes net import of $19,926,000 from Czecho-Slovakia and net export of $15,374,000 to Austria.
8 Includes net import of $26,555,000 from Czecho-Slovakia.
NOTE.—Switzerland.—In some cases annual aggregates of official monthly figures differ somewhat from revised official totals published for year
as a whole.
821
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES
NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935
[In millions of dollars. Minus sign indicates net movement from United States]
TABLE 1.—TOTAL CAPITAL MOVEMENT
Increase in foreign banking
funds in U. S.
From Jan. 2, 1935, through-
Total
Central
bank
funds
in N . Y.
Total
1935—Dec. 31.
1936—Dec. 30_
1937—Dec. 29.
1,412.5
2, 608.4
3, 410. 3
603.3
930.5
1,168. 5
1938—Sept. 28.
3,452. 9
3, 779. 2
4,479. 6
4, 523. 7
4, 544. 5
4, 567. 6
4, 570. 0
4, 570. 8
Dec. 28.
1939—Apr. 26.
May
May
May
May
May
310.
17.
24.
31.
Decrease
in U. S.
banking
funds
abroad
Other
Foreign
securities:
Return
of U. S.
funds
Domestic
securities:
Inflow of
foreign
funds
Inflow in
brokerage
balances
81.1
243.9
593.5
849.4
924.6
361.4
431.5
449.1
125.2
316.2
583.2
316.7
917.4
1,162. 0
6.0
12.9
47.5
1,161. 2
1, 432. 7
1,934. 4
168.0
216.3
993.2
1, 216. 5
477.2
478.1
625.0
610.0
1,125. 4
1, 210. 9
64.1
47.6
240.9
1, 693. 5
611.8
657.5
1, 202. 9
73.0
2, 019. 6
2, 030. 7
2, 042. 8
2, 046. 3
2, 041. 5
245.9
264.5
292.8
299. 1
302.1
1, 773. 6
1, 766. 2
1, 750. 0
1, 747. 3
1, 739. 5
596.1
591.3
597.3
596.0
621.8
637.1
642.3
644.1
647.6
1,211.9
1, 210. 2
1,211.8
1, 209. 3
1, 209. 2
74.4
75.3
73.4
74.2
72.7
TABLE 2 .—TOTAL CAPITAL MOVEMENT, BY COUNTKIES
From Jan. 2, 1935,
through—
Total
United
Kingdom
France
Netherlands
Switzerland
Germany
Italy
Other
Europe
Total
Europe
Latin
Canada America
Far
East
All
other
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
1,412. 5
2,608. 4
3,410. 3
554.9
829.3
993.7
210.2
299.5
281.7
114.5
229.7
311.9
130.4
335.5
607.5
36.6
83.1
123.9
24.0
45.6
22.1
130.0
228.5
312.2
1,200. 6
2,051.3
2, 653. 0
150.5
106.3
0)
70.9
201.2
410.6
128.3
184.0
224.6
12.7
21.4
15.9
1938—Sept. 28
Dec. 28
3, 452. 9
3, 779. 2
983.2
1,186.1
308.7
339.5
298.2
324.6
504.3
554.0
131.5
140.7
20.6
33.0
434.5
463.8
2, 681.1
3,041. 7
124.8
157.2
442.9
389.5
167.1
156.8
37.1
34.1
4, 479. 6
1, 303. 3
421.6
405.4
595.6
146.9
26.0
595.9
3, 494. 7
216.8
480.6
231.4
56.2
4, 523. 7
4, 544. 5
4, 567. 6
4, 570. 0
4, 570. 8
1, 316. 2
1, 313. 7
1,331.0
1, 334. 6
1, 337. 6
430.1
430.0
428.1
426.9
431.1
405.1
406.2
402.3
393.7
391.1
598.1
599.8
602.1
598.3
595.3
149.0
148.0
148.6
148.2
148.7
26.0
26.1
27.2
28.6
29.1
605.7
604.3
605.3
608.7
606.5
3, 530. 2
3, 528. 0
3, 544. 7
3, 539. 0
3, 539. 4
226. 3
237.8
239.8
242.0
241.0
491.5
499.7
499.1
505.8
507.4
222.1
226.0
230.2
226.7
226.4
53.6
53.1
53.8
56.5
56.6
1939—Apr. 26
May
May
May
May
May
3
10
17
24
31
TABLE 3.—FOREIGN BANKING FUNDS IN UNITED STATES, BY COUNTRIES
United
Kingdom
France
Netherlands
Switzerland
603.3
930.5
1,168. 5
128.6
163.5
189.3
129.6
144.2
111.8
55.7
65.9
76.3
72.4
109.8
288.4
-.8
2.7
9.6
1,161. 2
1,432. 7
236.3
366.7
68.3
84.4
177.3
203.7
141.0
139.4
141.0
136.2
126.7
123.2
From Jan. 2, 1935,
through—
Total
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
1938—Sept. 28
Dec. 28
1939—Apr. 26
May
May
May
May
May
3
10
17
24
31
1, 934. 4
476.7
133.5
158.8
236.8
2, 019. 6
2,030. 7
2, 042. 8
2, 046. 3
2, 041. 5
484.9
489.2
503.0
507.9
505.8
244.3
243.6
239.6
239.5
243.2
Latin
Canada America
Far
East
Other
Europe
Total
Europe
7.3
23.0
6.9
60.7
79.7
109.4
453.5
588.9
791.7
46.0
86.8
76.3
33.5
149.3
166.3
58.8
90.4
126.2
11.5
15.2
8.0
-12.0
-9.8
-1.5
3.8
185.9
203.0
787.8
1,010. 6
90.7
135.1
164.1
134.0
96.9
132.7
21.7
20.4
230.6
-15.7
-5.7
318.4
1,382.1
166.9
209.6
140.4
35.3
230.8
232.2
233.4
228.2
224.7
-15.1
-15.9
-15. 1
-15.6
-14.0
-6.4
-6.7
-6.5
-5.1
-4.4
324.3
322.6
323.2
326.7
323.6
1, 402. 2
1, 405. 9
1,413.8
1, 408. 3
1, 402.1
216.8
215.2
213.5
212.6
209.3
221.0
228.0
236.4
247.8
250.7
145.2
147.9
145.1
140.7
142.8
34.3
33.6
34.1
37.1
36.6
Germany
Italy
All
other
rABLE 4.—UNITED STATES BANKING ]FUNDS L\BROAD, BY COUNTRIES
From Jan. 2, 1935,
through—
Total
United
Kingdom
France
Netherlands
Switzerland
Germany
Italy
Other
Europe
Total
Europe
Latin
Canada America
Far
East
All
other
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
361.4
431.5
449.1
208.8
178.0
207.4
48.1
62.0
65.3
-.4
-3.3
-4.4
1.6
2.7
2.6
29.7
66.0
105.1
13.7
16.3
6.5
8.8
22.0
26.9
310.2
343.7
409.3
-4.6
36.9
-21.7
20.1
24.9
51.6
37.3
30.4
18.7
-1.6
-4.4
-8.7
1938—Sept. 28
Dec. 28
477.2
478.1
170.3
204.5
67.4
65.5
-4.0
-6.9
3.7
2.6
132.1
140.3
10.2
13.9
33.4
33.0
413.1
453.0
12.3
30.6
71.8
66.8
-16.0
-65.0
1939—Apr. 26
611.8
227.9
67.1
.7
4.5
151.7
13.7
35.1
500.8
48.3
71.1
-6.0
-3.9
-7.2
-2.4
596. 1
591.3
597.3
596.0
599.8
229.9
225.8
231.1
231. 1
236.8
67.3
67.2
70.2
68.9
68.1
.7
3.9
153. 1
153.0
152.8
153.0
152.0
14.1
14.6
15.3
15.4
15.3
38.3
38.3
38.0
37.8
38.7
507.2
501.8
509.9
509.7
515.4
44.0
44.0
45.2
47.6
46.9
69.5
70.4
61. 1
56.3
54.8
-20.1
-20.1
-14.4
-12.7
-13.0
-4.6
-4.8
-4.6
-4.8
-4.3
May
May
May
May
May
3
10
17
24
31
-1.1
-1.2
—. 7
4.0
3.7
4.2
4.7
i Inflow less than $50,000.
NOTE.—Statistics reported by banks, bankers, brokers, and dealers.
1939, pp. 284-296, April 1938, pp. 267-277, and May 1937, pp. 394-431.
For back figures and description of the statistics, see BULLETIN for April
822
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued
NET CAPITAL MOVEMENT TO UNITED STATES SINCE JANUARY 2, 1935—Continued
' [In millions of dollars. Minus sign indicates net movement from United States]
TABLE 5.—FOREIGN SECURITIES, BY COUNTRIES
Net Purchases by Foreigners
From Jan. 2, 1935,
through—
Total
125.2
316.2
583.2
625.0
610.0
657.5
621.8
637.1
642.3
644.1
647.6
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
1938—Sept. 28
Dec. 28
1939—Apr. 26
May 3
May 10
May 17
May 24
May 31
United
Kingdom
France
67.8
116.1
136.8
129.3
129.1
128.7
129.1
128.9
128.5
128.4
128.1
6.8
18.2
22.8
24.2
26.2
27.5
27.6
27.8
27.9
28.0
27.9
Netherlands
7.4
10.4
21.2
23.8
27.3
29.3
29.4
29.5
29.6
29.6
29.6
Switzerland
-1.2
13.7
30.4
30.5
37.1
40.1
40.4
40.4
40.9
40.9
41.3
Germany
13.3
22.5
26.6
31.9
33.1
35.2
35.2
35.3
35.4
35.4
35.4
Italy
2.9
9.4
13.5
17.0
20.5
23.2
23.6
23.6
23.6
23.6
23.6
Other
Europe
Total
Europe
46.1
87.9
115.2
155.2
165.9
178.2
178.7
179.0
179.3
179.5
179.8
143.1
278.3
366.4
411.9
439.1
462.0
464.0
464.4
465.1
465.6
465.7
Latin
Canada America
-39.7
1.7
10.5
-11.2
-38.9
-24.3
-63.3
-48.9
-44.7
-43.5
-40.3
12.7
15.7
175.0
184.7
166.3
173.5
174.5
174.7
174.9
175.2
175.2
Far
East
7.9
17.0
24.5
30.9
33.8
35.9
36.2
36.4
36.5
36.6
36.6
All
other
1.1
3.5
6.8
8.7
9.7
10.3
10.4
10.4
10.4
10.4
10.4
TABLE 6.—DOMESTIC SECURITIES, BY COUNTRIES
Net Purchases by Foreigners
From Jan. 2, 1935,
through—
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
1938—Sept. 28
Dec. 28
1939-Apr. 26
May 3
May 10
May 17
May 24
May 31
Total
316.7
917.4
1,162.0
1,125. 4
1, 210. 9
1, 202. 9
1,211.9
. 1, 210. 2
1,211.8
1, 209. 3
1, 209. 2
United
Kingdom
France
149.8
367.7
448.7
430.5
472.6
452.6
454.6
452.1
450.7
449.2
448.9
23.4
64.7
70.3
67.8
76.5
73.9
73.9
74.4
74.4
74.3
75.6
Netherlands
50.5
157.6
213.8
203.3
212.9
224.1
225.4
226.8
227.7
228.4
228.9
Switzerland
Germany
55.1
200.2
275.3
282.2
301.7
310.0
311.8
312.1
313.5
314.1
313.9
-5.4
-7.5
-17.4
-20.4
-22.7
-24.2
-24.2
-24.2
-24.3
-24.4
-24.6
Italy
-.1
-3.3
-4.9
-5.3
-5.4
-5.5
-5.5
-5.5
-5.5
-5.5
-5.6
Other
Europe
Total
Europe
12.9
38.5
55.7
53.0
56.6
56.7
56.7
57.0
57.3
57.2
57.2
286.2
818.0
1,041. 6
1,011.2
1,092. 3
1, 087. 6
1,092. 7
1, 092. 6
1, 093. 7
1, 093. 3
1, 094. 4
Latin
Canada America
2.8
32.6
37.6
27.7
27.8
16.7
19.4
16.9
16.4
15.9
16.6
3.7
15.5
18.2
21.9
23.4
25.6
25.8
25.8
26.1
25.7
25.8
Far
East
21.4
44.1
54.7
54.5
56.4
60.4
60.9
61.6
62.2
61.0
59.0
All
other
2.6
7.1
9.8
10.1
11.0
12.5
13.0
13.4
13.5
13.5
13.5
TABLE 7.—BROKERAGE BALANCES, BY COUNTRIES
From Jan. 2, 1935,
through—
1935—Dec. 31
1936—Dec. 30
1937—Dec. 29
1938—Sept. 28
Dec. 28
1939-Apr. 26
May 3
May 10
May 17
May 24
May 31
Total
6.0
12.9
47.5
64.1
47.6
73.0
74.4
75.3
73.4
74.2
72.7
Inflow less than $50,000.
United
Kingdom
0)
4.0
11.5
16.8
13.2
17.4
17.8
17.7
17.7
18.0
18.0
France
2.4
10.4
11.5
15.9
12.6
16.3
17.0
17.0
16.0
16.3
16.3
Netherlands
1.3
Q
5^0
6.8
6.8
10.3
10.2
10.6
10.1
9.7
9.5
Switzerland
Germany
Italy
Other
Europe
0)
.1
.3
.1
1.4
.4
5.0
8.8
-.1
-.2
.2
.2
6.9
5.3
10.5
11.2
11.1
10.6
10.9
10.8
-.1
.3
7.5
(i)
-.2
-.2
-.2
-.2
.2
.2
.3
.2
.2
7. 7
2.5
9.1
10.8
10.7
-.2
-.7
« Outflow less than $50,000.
7.5
7.6
7.5
7.3
Total
Europe
7.6
22.6
44.0
57.2
46.7
62.2
64 0
63.2
62.2
62.3
61.9
Latin
Canada America
Far
East
All
other
-4.5
-7.6
-4.2
3.5
-.5
2.9
2.1
.5
5.3
2.6
.4
-.9
.8
-1.0
.5
.2
9.1
.7
.7
.9
.6
.9
.8
.6
—. l
.2
.8
1.1
1.0
.4
.4
.5
.5
.4
.4
9.3
10.5
9.3
9.5
8.7
1.0
-.9
(2)
(2)
823
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
[INTERNATIONAL CAPITAL TRANSACTIONS OF THE UNITED STATES—Continued
OUTSTANDING SHORT-TERM ACCOUNTS, BY COUNTRIES
[Outstanding amounts in millions of dollars]
TABLE 8.—SHORT-TERM LIABILITIES TO FOREIGNERS, BY COUNTRIES
Date
Total
United
Kingdom
France
Netherlands
Switzerland
105.2
222.2
66.0
78.0
11.5
Germany
Italy
Other
Europe
Total
Europe
Latin
Canada America
Far
East
All
other
Reported by Banks in New York City
1929— Dec. 31___
1930—Dec. 31___
1931—Dec. 30___
1932—Dec. 28___
1933—Dec. 27___
1934—Nov. 281.
2, 672. 7
2, 335.0
1, 303. 5
745.6
392.0
466.7
301.5
214.5
104.9
169.7
48.9
59.1
923.7
799.4
549.2
71.1
27.0
32.7
99.1
122.2
44.6
11.9
1934—Dec. 5 2...
1935—Jan. 2
Dec. 31__.
1936—Dec. 30__.
1937—Dec. 29__.
1938—Sept. 28..
Dec. 28--,
584.8
597.0
1,200.2
1,491.6
1, 729. 6
1, 732. 4
2,003. 9
2, 505. 6
2, 590. 8
2, 601. 9
2, 614. 0
2, 617. 6
2, 612. 7
79.6
76.9
205.5
235.7
261.5
308.5
438.8
548.9
557.0
561.4
575.1
580.0
578.0
36.1
33.9
163.5
176.3
143.9
165.6
190.9
269.0
276.4
275.7
271.7
271.6
275.3
13.5
12.9
68.6
78.8
89.1
82.2
98.4
154.9
153.4
155.0
150.1
140.6
137.1
8.0
12.7
9.7
204.5
161.0
41.1
32.9
17.5
25.8
157.4
111.2
33.2
39.8
11.7
14.3
371.3
281.3
122.2
66.2
31.1
41.7
2,162.8
1,911.7
961.2
469.6
155.7
196.0
241.8
216.8
148.3
98.2
86.1
91.9
188.2
130.8
103.3
121.7
96.7
106.6
49.0
38.2
69.0
43.5
42.7
60.3
31.0
37.5
21. 6
12.6
10.9
11.9
227.1
232.9
686.3
814.3
1,017.1
1,015.0
1,237.8
1, 609. 3
1, 629. 4
1, 633.1
1,641.0
1,635.4
1, 629. 3
103.3
99.3
145.3
186.1
175.6
190.8
235.2
267.0
316.9
315.4
313.6
312.7
309.4
117.4
122.8
156.3
263.9
280.9
285.0
254.9
330.6
342.0
348.9
357.3
368.7
371.7
125.1
130.1
188.9
200.2
236.0
207.9
243.7
251.4
256.2
258.9
256.1
251.7
253. 8
12.0
12.0
23.4
27.1
20.0
Reported by Banks in United States
1939—Apr. 26. _.
May
May
May
May
May
3___.
10...
17...
24._.
31__.
12.1
13.7
86.1
123.5
302.1
191.0
217 A
244.2
244.5
245.9
247.1
241.9
238.4
28.4
29.9
29.0
32.0
39.0
17.6
19.9
13.9
14.6
13.7
14.5
14.0
15.7
16.8
18.8
26.1
41.7
25.7
17.2
22.6
13.1
12.4
12. 1
12.3
13.7
14.3
40.6
46.8
107.5
126.3
156.0
232.8
249.9
365.3
371.2
369.5
370.1
373.6
370.5
33.7
32.4
47.3
46.3
45.5
46.1
49.1
48.6
TABLE 9—SHORT-TERM FOREIGN ASSETS, BY COUNTRIES
Date
Total
United
Kingdom
France
166.2
87.3
192.5
201.3
29.5
62.9
66.9
94.1
Netherlands
Switzerland
Germany
Italy
Other
Europe
Total
Europe
Latin
Canada America
Far
East
All
other
Reported by Banks in New York City
1931—Dec. 30__
1932—Dec. 28. _
1933—Dec. 27__
1934—Nov. 281
1,103. 3
937.9
898.8
827.1
209
13.0
18.4
15.9
12.6
6.2
12.3
8.5
467.2
434.9
260.9
178.8
18.7
11.8
16.7
10.7
149.2
97.0
83.2
60.2
864.3 I
713.1
651.0
569. 5 I
58. 1
42. 2
32. 3
84. 4
136.5
155.2
159.7
124.4
41.8
24.0
49.7
46.2
2.6
3.5
6.2
2.6
91.2
96.3
100.9
59.4
118.0
84.0
65.7
48.0
52.2
52.3
51.1
48.7
49.4
170.7
174.6
154.5
141.1
114.4
94.2
99.2
94.9
96.5
95.6
104.9
109.7
111. 1
118.1
117.4
80.1
67.2
78. 9
113.6
162.6
103.6
117.7
117.7
112.0
110.3
110.6
8.3
8.5
10.1
12.9
17.2
12.4
15 7
10.9
13.1
13.2
13.1
13.3
12.8
Reported by Banks in United States
1934—Dec. 5 «„.
1935—Jan. 2
Dec. 31._.
1936—Dec. 30__.
]937— Dec. 29._.
1938—Sept. 28__
Dec. 28...
1939—Apr. 26...
May 3—
May 10_.
May 17._.
May 24__.
May 31..
1,137. 8
1,139.9
778.6
672.6
655.0
626.9
626.0
492.3
508.0
512.8
506.8
508.1
504.3
266.4
296.9
88.1
114.1
84.8
121.9
87.7
64.2
62.3
66.4
61.1
61. 1
55.4
1 Last report date on old basis.
2
First report date on new basis.
108.2
80.5
32.5
16.8
13.5
11.4
13.3
11.7
11.5
11.5
8.5
9.8
10.7
19.2
18.6
19.0
21.9
23.0
22.6
25.5
17.9
17.9
19.8
19.9
19.3
18.7
8.3
8.2
6.6
5.4
5.5
4.4
5.4
3.6
4.2
4.0
4.4
3.8
3.4
239.6
231.7
202.0
165.1
126.1
99.1
90.9
79.4
78.1
78.2
78.3
78.2
79.2
26.5
27.2
13.5
10.9
20.8
17.0
13.3
13.5
13.1
12.6
11.9
11.8
11.9
81.3
80.0
71.2
57.8
52.9
46.3
46.7
44.7
41.5
41.5
41.8
42.0
41.1
749.5
743.2
433.0
362.1
326.5
322.7
282.8
235.0
228.5
233.9
225.8
226.1
220.4
824
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CENTRAL BANKS
Assets of
issue dept.
Bank of England
(Figures in millions of
pounds sterling)
1929—Dec 25
1930—Dec. 31
1931—Dec 30
1932—Dec. 28
1933—Dec. 27
1934—Dec 26
1935—Dec. 25.__
1936—Dec 30
1937—Dec. 29 . .
1938—Aug. 31
Sept 28
Oct. 26
Nov 30
Dec. 28
._
_
.
1939—j an 25
Feb 22
Mar. 29
April 26
M a y 31 .
June 28
July 26
Other
assets !
Gold
_-
145. 8
147. 6
120. 7
119. 8
190. 7
192.3
200.1
313. 7
326. 4
260.0
260.0
275.0
275.0
260.0
260.0
260.0
200.0
220.0
326.
326.
326.
326.
326.
4
4
4
4
4
200.0
200.0
200.0
200.0
230.0
2 126.4
126. 4
3 226.2
226. 2
226. 2
226. 4
*246. 4
400.0
400.0
300.0
300.0
300.0
300.0
300.0
Liabilities of banking department
Assets of banking department
Discounts
and advances
Securities
26.3
38.8
31.6
23.6
58.7
47.1
35.5
46.3
41.1
22.3
49.0
27.3
18.5
16.8
7.6
8.5
17.5
84.9
104.7
133.0
120.1
101.4
98.2
94.7
155.6
135.5
379.6
368.8
364.2
371.2
392.0
405.2
424.5
467.4
505.3
71 0
132.4
126.4
102.4
101.2
89.1
72.1
150.6
120.6
46.0
25.5
43.9
45.6
51.7
5.4
7.3
4.2
124.4
135.6
129.2
110.8
90.7
480.4
500.9
482.5
480.8
504.7
94.7
99.9
100.4
97.1
101.0
27 8
11.4
103.9
100.6
124.8
129.5
140.7
136.7
128.0
463.8
472.7
482.0
489.1
499.8
499.0
510.9
118.2
103.1
98.5
91.4
82.4
101.4
91.4
12.9
16 3
21.8
Cash reserves
Coin
Notes
9
.6
6
.8
10
.5
fi
6
,8
1,3
15
1.4
1 ?,
.8
7
10
1.1
,9
.6
,7
.6
Note
circulation
62.6
53.7
44.2
37.1
26.4
27.4
35.5
9.2
17.6
28.5
18.8
17.5
4.8
6.2
8.0
6.8
8.0
Deposits
Bankers'
Assets
Foreign
(Figures in millions of francs) Golds
Open
exchange market 6
Loans o n -
Special 7
Other
1,379
652
8,624
8,429
7,389
3,438
4,739
3,971
9,712
8,465
10,066
17,698
31,909
715
675
2,521
2,901
2,730
2,515
2,921
3,211
3,253
3,583
3,781
25,942
26,179
21, 111
4,484
1,158
1,328
1,460
911
5,612
5,304
7,157
6,802
6,122
5,837
5,800
5,640
5,580
1938—Aug. 25
Sept. 29
Oct. 27
Nov. 24 . .
Dec 29
55,808
55, 808
55,808
87,264
87, 265
767
764
763
888
821
6,098
6,781
6,802
7,032
7,422
642
1,550
1,611
1,797
8,241
20, 293
14, 694
11,021
7,880
40,134
50,134
48,134
20, 627
20, 627
331
1,311
1,600
1,559
443
1 9 3 9 _ j a n . 26
Feb. 23
Mar. 30
April 27.
May 25__
June 29
July 27
87, 266
87, 266
87, 266
92, 266
92, 266
92, 266
92, 266
761
759
758
756
754
722
722
8,004
7,801
8,631
8,609
8,164
8,074
8,316
1,996
2,014
2,054
2,165
2,276
2,279
2,275
6,193
5,462
5,733
6,012
4,774
5,009
5,000
20, 627
20, 627
20, 627
20, 577
20, 577
20, 577
20, 577
136
73
172
127
78
374
472
_
_
963
8.9
9.9
U 1
12.1
11,4
23 1
15.9
?,7 0
38.3
15 4
26.0
35.8
36.2
40.3
33.8
36.5
36.4
37 1
39.2
36 6
17 9
18.0
18 0
18.0
18.0
18.0
18.0
18.0
18.0
36 4
40.2
35. 5
37 ?,
36.8
18.2
18.2
17.7
17.8
18.0
36.7
85 1
36.3
37 6
37,1
37.0
36.7
18.1
18.2
18.2
17.7
17.8
17.9
18.1
Deposits
Ad-
vances
Shortto
term
Other
Govern- 8 Govern- securiment seties
ment
curities
41,668
53, 578
68,863
83,017
77,098
82,124
66, 296
60,359
58, 933
1929—Dec 27
1930—Dec 26
1931—Dec. 30
1932—Dec 30
1933—Dec. 29
1934—Dec 28
1935—Dec 27
1936—Dec. 30 _
1937—Dec. 30
8.8
6.6
7.7
Other
liabilities
Liabilities
Domestic bills
Bank of France
Other
Public
573
Other
assets
Note
circulation
Government
Other
Other
liabilities
68, 571
76,436
85, 725
85,028
82, 613
83,412
81,150
89, 342
93, 837
11, 737
12, 624
5,898
2,311
2,322
3,718
2,862
2,089
3,461
7,850
11, 698
22,183
20,072
13,414
15, 359
8,716
13, 655
19, 326
1,812
2,241
1,989
2,041
1,940
1,907
2,113
2,557
3,160
3,545
4,362
3,865
3,739
3,612
5,603
6,609
8,545
9,196
8,251
8,288
7,879
8,344
7,277
7,364
8,410
7,427
14,185
14,442
99,065
124,428
110, 446
106, 798
110,935
2,891
2,825
3,642
6,169
5,061
17, 684
18, 593
23, 827
31, 955
25, 595
2,649
2,660
2,727
3,004
2,718
3,389
3,317
3,332
3,362
3,401
3,471
3,461
14,099
14, 308
14,558
14,452
14, 264
14, 753
14, 458
109, 378
111, 162
119, 748
124, 666
121, 391
122, 611
123, 239
5,445
5,079
3,955
3,755
4,573
5,188
5,468
24,935
22, 556
16, 702
17, 255
17, 570
16. 909
16,058
2,713
2,830
2,726
2,649
3,020
2,816
2,781
1 Securities and silver coin held as cover for fiduciary issue. Currency and Bank Notes Act, 1939 (see BULLETIN for April 1939, p. 271), fixed
fiduciary issue at £300,000,000 and provided for valuation of gold at current prices instead of legal parity, effective March 1, 1939. For previous
status of fiduciary issue see BULLETIN for April 1939, p. 339.
2 On Jan. 6, 1939, £200,000,000 of gold transferred to British Exchange Equalization Account.
3
Effective Mar. 1, 1939, gold valued at current prices instead of legal parity and about £5,500,000 transferred from Exchange Account to
Bank.
See note 1.
4
On July 12, 1939, £20,000,000 of gold transferred from Exchange account to Bank of England.
6
By decree of Nov. 12, 1938 (see BULLETIN for Jan. 1939, p. 29), gold revalued on basis of 27.50 milligrams gold 0.900 fine per franc; on Nov. 14
increment of nearly 31,500,000,000 francs was applied to partial reimbursement of advances to Government, which stood at authorized maximum
of 52,000,000,000 francs on that date. Permanent debt of Government to Bank, included above in Other Assets, was simultaneously increased by
6,800,000,000
francs. For details of revaluations in October 1936 and July 1937 see BULLETIN for Dec. 1938, p. 1091.
6
Negotiable bills of Caisse Autonome and bills bought under authority of decree of June 17, 1938 (see BULLETIN for Aug. 1938, p. 650).
7
Bills and warrants endorsed by National Wheat Board (law of Aug. 15, 1936—see BULLETIN for Oct. 1936, pp. 785-786), and bills rediscounted
for account
of Banques Populates (law of Aug. 19, 1936—see BULLETIN for Oct. 1936, p. 788).
8
Includes advances granted under authority of Conventions between Bank of France and Treasury of June 18, 1936, June 30, 1937, March 22,
1938, and April 14, 1938, as modified by Convention of Nov. 12, 1938 (see BULLETINS for July 1936, p. 536; Aug. 1937, p. 720; June 1938, p. 452; Aug.
1938, p. 650, and Jan. 1939, p. 30).
9 On April 20, 1939, 5,000,000,000 francs of gold transferred from Stabilization Fund to Bank of France.
NOTE.—For further explanation of table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463.
825
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CENTRAL BANKS—Continued
Liabilities
Assets
Reichsbank
(Figures in millions of
reichmarks)
Reserves of gold and Bills (andl
foreign exchange
checks), i g p 0 1 i r i t v
Total
reserves
1929—Dec. 31
1930—Dec. 31
1931—Dec. 31
1932—Dec. 31
1933—Dec. 30
1934—Dec. 31
1935—Dec. 31
1936—Dec. 31
1937—Dec. 31
Gold*
including j ? o a *
Treasury! l o a n s
bills !
Other
assets
Note
circulation
Deposits
Other
liabilities
259
445
349
221
106
656
638
1,065
1,114
735
827
853
765
861
5,044
4,778
4,776
3,560
3,645
3,901
4,285
4,980
5,493
755
652
755
540
640
984
1,032
1,012
1,059
736
822
1, 338
1,313
836
1,001
923
953
970
35
48
32
48
45
550
550
550
548
557
298
298
298
298
298
1,268
1,129
1,360
1,494
1,621
6,869
8,023
7,754
7,744
8,223
1, 033
1,231
1,040
1,141
1,527
974
1,022
1,064
1,093
1,091
52
60
58
55
40
48
36
592
660
677
668
922
930
925
298
288
292
476
285
274
289
1,848
1,710
1,489
1,928
2,182
1,658
1,652
7,816
7,939
8,311
8,519
8,525
8,731
8,989
1,119
1,105
1,249
1,122
1,292
1,281
1,294
1,091
1,112
1,212
1, 289
1,234
1,132
1,157
2,283
2,216
984
806
386
79
82
66
71
2,848 1
2,572
4,242
2,806
3,226
4,066
4, 552 i
5,510
6,131
251
256
245
176
183
146
84
74
60
1938—Aug. 31
Sept. 30
Oct. 31
Nov. 30
Dec. 31._
76
77
76
77
76
71
71
71
71
71
6,648
8,174 :
7,543
7,514
8,244
1939—Jan. 31
Feb. 28
Mar. 31.
Apr. 29
May 31
June 30
July 31
76
76
77
77
77
77
77
71
71
71
71
71
7,160 '
7,361
8,180
7,726
7, 547 '•
8,159
8,461
..
Other
92
102
161
398
322
319
315
303
286
2,687
2,685
1 156
920
396
84
88
72
76
_
Securities
Eligible
as note
cover
i Not shown separately on Reichsbank statement after June 15, 1939.
NOTE.—For explanation of above table see BULLETIN for February 1931, pp. 81-83, and July 1935, p. 463.
Central bank
[Figures as of last report
date of month]
National Bank of Albania (thousands of francs):
Gold
Foreign assets
___._
Loans and discounts
Other assets
Note circulation
Other sight liabilities
Other liabilities
Central Bank of the Argentine
Republic (millions of pesos):
Gold reported separately _
Other gold and foreign exchange_
Negotiable Government bonds
Other assets
Note circulation
Deposits—Member bank
Government
Other
Foreign exchange sold forward. __
Other liabilities
Commonwealth Bank of Australia
(thousands of pounds):
Issue department:
Gold and English sterling
Securities
Banking department:
Coin, bullion, and cash
London balances
Loans and discounts
Securities
Deposits
Note circulation
Bank of Belgian Congo (millions of
Belgian francs):
Gold
Loans and discounts
Other assets
_ _ ___
Note circulation
Deposits
Other liabilities
1939
July
1938
May
July
7,568
21, 365
4,929
9,576
19, 093
11,524
12, 821
7,564
20, 575
5,223
4,659
10, 733
14, 916
12, 371
1,224
84
271
204
1 128
428
143
2
32
51
1,224
80
276
199
1 140
391
169
2
29
47
1,224
100
89
178
1 084
320
126
2
9
49
16, 030
40 504
16, 030
40, 505
16,011
38 301
1
19
16
52
84
47
1,564
16 702
17 285
53 929
83' 852
47 530
1,283
25 223
13 822
50 736
85 636
49 030
June
397
075
582
756
231
530
166
394
566
381
604
142
166
337
626
380
627
122
Central bank
[Figures as of last report
date of month]
1938
1939
July
National Bank of Belgium (millions
of belgas):
3,381
Gold reserve
857
Other gold and foreign exchange
188
Discounts
53
Loans
469
Other assets
4,565
Note circulation
_ _
8
Demand deposits—Treasury
251
Other
124
Other liabilities
Central Bank of Bolivia (thousands
of bolivianos):
Gold at home and abroad
Foreign exchange
Loans and discounts
Securities—Government
Other
Other assets
Note circulation
Deposits
Other liabilities
National Bank of Bulgaria (millions of leva):
Gold
Foreign exchange
Loans and discounts
Government debt
_ _ _
Other assets
Note circulation _. _
___ _
Deposits
Other liabilities
Bank of Canada (thousands of Canadian dollars):
205,159
Gold
Sterling and United States ex43, 960
change
_ _
Canadian Gov't securities:
112,550
2 years or less
51,391
Over 2 years. ___ _ _
6,970
Other assets___ _ __
169, 714
Note circulation __ _
Deposits-Chartered banks. _ _ 206, 916
Dominion Government 29, 054
4,649
Other
9,698
Other liabilities
June
May
July
3,187
742
314
48
473
4,442
37
161
122
3,089
559
538
65
471
4,425
20
156
122
2,954
820
343
52
454
4,205
16
284
119
54, 491
76, 524
24, 671
397, 275
4,094
20, 839
270, 992
243, 472
63, 430
2,006
757
975
3,417
1,310
2,891
3,239
2,336
2,006
774
1,023
3,441
1,292
2,931
3,427
2,178
1,994
846
917
3,468
1,297
2,489
3,750
2,284
205, 736 205, 639 180, 415
33, 652
34, 599
23, 461
110, 773 114, 032 116, 318
51, 192 52, 714 52, 612
9,240
4,674
6,327
165, 922 166, 227 156, 796
204, 082 205, 352 187, 534
21, 891 24, 217 15, 233
2,769
6,373
4,673
9,489 19, 714
11,112
826
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
CENTRAL BANKS—Continued
Central bank
[Figures as of last report
date of month]
1939
July
June
1938
May
July
Central Bank of Chile (millions of
Gold
Discounts for member banks
Loans to government
Other loans and discounts
Other assets
Note circulation
DepositsBank
Other
Other liabilities
Bank of the Republic of Colombia
(thousands of pesos):
Gold
Foreign exchange
Loans and discounts
Government loans and securities.
Other assets
Note circulation
Deposits
Other liabilities
National Bank of Czecho-Slovakia 1
(millions of koruny):
Gold
Foreign exchange
Discounts
Loans
Government debt
Other assets
Note circulation
Demand deposits
Other liabilities
Bank of Danzig (thousands of
gulden):
Gold
Foreign exchange of the r e s e r v e Other foreign exchange
Loans and discounts
Other assets
Note circulation
Demand deposits
Other liabilities
National Bank of Denmark (millions of kroner):
Gold
Foreign exchange
Discounts
Loans—To Government agencies
Other
Securities
Other assets
Note circulation
Deposits
Other liabilities
Central Bank of Ecuador (thousands of sucres):
Gold
Foreign exchange (net)
Loans and discounts
Other assets
Note circulation
Demand deposits
Other liabilities
National Bank of Egypt 2 (thousands of pounds):
Gold
Foreign exchange
Loans and discounts
British, Egyptian, and other
Government securities
Other assets
Note circulation
Deposits—Government
Other
Other liabilities
146
35
754
269
35
145
62
758
261
54
864
145
5
771
136
39
709
123
105
144
114
146
156
61
138
36,109
3,865
18, 455
36, 820
30, 337
55, 365
38, 547
31, 674
35,853
5,999
19, 855
36, 948
30,019
57, 364
38, 204
33,105
35, 548
6,689
18, 513
37,033
29,861
54, 336
38, 780
34, 529
36, 757
5,346
18, 082
46, 593
1,721
821
1,713
875
1,763
771
2,129
919
1,854
812
2,140
901
4,187
6,391
811
2,116
3,716
6,418
839
2,041
3,519
6,291
2,653
246
2,194
1,236
2,006
1,126
7,641
259
1,560
2,271
52, 652
37, 757
43, 059
23, 612
1,199
166
20, 525
2,572
48, 614
17,179
19,010
24, 442
1,480
212
21,613
2,890
46, 821
20, 034
19, 389
25, 324
2,318
352
18, 699
3,090
47, 672
16, 313
19, 265
28, 965
5,347
581
16, 270
2,886
38, 554
18, 473
19, 016
138
186
110
425
135
199
117
98
19
130
155
180
109
446
166
197
118
93
20
69
147
187
103
435
108
194
118
95
20
117
82
113
105
403
80
167
37, 600
7,035
51, 333
16, 772
63, 784
34,845
14,111
32, 413
5,103
"56, 601
19,129
63, 352
34, 630
15, 444
6,545
1,759
5,961
6,545
1,459
4,355
6,545
2,095
5,657
25,196 25, 471 31, 454
8,401
7,667 6,961
20, 712 21,139 18, 492
3,261
2,883
5,972
15, 468 15,153 17,615
8,454 8,229
8,695
Central bank
[Figures as of last report
date of month]
Central Reserve Bank of El Salvador (thousands of colones):
Gold
Foreign exchange
Loans and discounts
Government debt and securities..
Other assets
Note circulation
Deposits
Other liabilities
Bank of Estonia (thousands of
I krooni):
Gold s
I
Foreign exchange (net)
Loans and discounts
Other assets
Note circulation
Demand deposits
Other liabilities
Bank of Finland (millions of markkaa):
Gold *
Foreign assets
Loans and discounts
Domestic securities
Other assets
Note circulation
Deposits—Treasury
Other
Other liabilities
Bank of Greece (millions of drachmas):
Gold and foreign exchange (net)__
Loans and discounts
Government obligations
Other assets
Note circulation
Deposits
Other liabilities
National Bank of Hungary (millions of pengo):
Gold 6
Foreign exchange reserve
Discounts
Loans—To Treasury
Other
Other assets
Note circulation
Demand deposits
Certificates of indebtedness
Other liabilities
Reserve Bank of India (millions of
rupees):
Issue department:
Gold at home and abroad
Sterling securities
Indian Gov't. securities
Rupee coin
Note circulation
Banking department:
Notes of issue department._.
Balances abroad
Treasury bills discounted
Loans to Government
Investments
Other assets
Deposits
Other liabilities
Bank of Japan (millions of yen):
Gold
Special foreign exchange fund
Discounts
Loans—Government
Other
Government bonds
Other assets
Note circulation
Deposits—Government
Other
Other liabilities
1938
1939
July
1,128
2,598
1,151
333
248
2,179
217
991
2,070
124
93
418
298
29
360
879
143
June
May
July
13, 208
6,479
709
5,132
990
14, 669
8,233
3,616
13, 207 13, 206
6,872 4,190
808
567
5,525
5,154
846
961
14, 903 13,611
6,406
8,201
3,657
4,558
40, 892
8,910
27, 059
44, 507
51,116
30, 622
39, 631
40,889
15, 691
28, 625
34, 853
52, 747
38, 826
28, 485
34, 265
16, 389
22,061
30, 491
47, 897
33, 865
21, 443
1,128
2,640
1,244
331
142
2,200
90
1,088
2,106
1,128
2,517
1,293
327
135
2,226
68
959
2,147
621
2,209
1,546
239
305
2,047
71
1,178
1,624
3,711
3,565
10, 570 10,141
4,256
4,257
1,970
1,860
8,002 8,195
10, 543 10, 202
1,681
1,706
4,285
2,205
6,551
7,647
2,534
3,108
7,133
124
94
438
327
12
366
885
178
99
199
124
95
459
299
. 12
357
868
192
99
187
84
74
391
148
14
319
582
180
70
198
444
595
374
695
1,846
444
595
373
662
1,878
444
695
324
671
,715
262
85
3
7
73
12
329
111
196
101
2
6
69
11
276
110
418
35
501
300
428
3
51
1,776
414
2,342
535
238
358
501
300
401
3
45
1,668
334
2,137
610
205
300
501
300
461
3
56
1,213
198
2,043
275
97
317
63
11
414
113
r
Revised.
1 Name changed to National Bank of Bohemia and Moravia, Prague, by decree of March 31, 1939.
2
Items for issue and banking departments consolidated.
3
Gold revalued in part on March 7, 1939 at .2801 gram fine gold per kroon.
4
In accordance with law of December 22,1938, gold revalued on December 31,1938, at approximately .02 gram fine gold per markka.
5
In accordance with law X X V of 1938 gold revalued on J a n u a r y 15, 1939, at .1754 gram fine gold per pengo and resulting increment included
in other assets.
827
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
CENTRAL BANKS—Continued
Centra] bank
[Figures as of last report
date of month]
1939
July
Bank of Java (millions of guilders):
Gold
Foreign bills
Loans and discounts _____ _ _
Other assets
Note circulation _
Deposits
Other liabilities
Bank of Latvia (millions of lats):
Gold
98
36
Foreign exchange reserve..
143
Loans and discounts
51
Other assets. _
._ .
81
Note circulation
204
Deposits
__ _ _ _
43
Other liabilities
Bank of Lithuania (millions of litu):
62
Gold
8
Foreign exchange
119
Loans and discounts
37
Other assets
Note circulation
153
42
Deposits
Other liabilities
_
30
Netherlands Bank (millions of guilders) :
Gold.. ._
_
. 1,129
Silver (including subsidiary coin)
24
Foreign bills
2
Discounts
10
Loans.
224
Other assets.__
___
69
Note circulation
1,037
Deposits—Government
46
Other
327
Other liabilities
48
Reserve Bank of New Zealand
(thousands of pounds):
Gold
Sterling exchange reserve...
Advances to State or State undertakings. _
Investments
Other assets.
Note circulation
Demand deposits
Other liabilities
Bank of Norway (millions of
kroner):
Gold
236
Foreign assets
151
Total domestic credits and
securities
282
Discounts
0)
Loans
Securities.
(0
Other assets
0)
480
Note circulation
15
Demand deposits—GovernmentOther
139
(I)
Other liabilities
Central Reserve Bank of Peru
(thousands of soles):
Gold and foreign exchange
Discounts
Government loans
Other assets
Note circulation
Deposits
Other liabilities
Bank of Poland (millions of zlotys):
444
Gold
11
Foreign exchange
886
Loans and discounts
161
Securities
515
Special gov't. debts
Other assets.. __
350
Note circulation
Other sight liabilities _
Other liabilities
1,883
152
332
June
1938
May
July
117
15
61
97
195
72
25
117
11
66
102
192
78
26
117
3
64
101
189
71
25
93
40
147
53
84
208
40
93
40
154
51
88
211
38
78
39
126
64
61
197
48
62
9
120
37
156
42
31
62
6
128
36
168
35
29
79
6
100
32
123
72
23
1,175
22
2
10
214
68
998
27
420
46
1,209
17
3
12
212
71
1,046
30
397
50
1,481
20
5
8
323
64
919
176
761
45
2,802
5,601
2,802
4,564
2,802
15,106
16,926
3,768
415
15 467
12,123
1,922
19, 517
3,771
364
15 572
13,562
1,884
6,066
2,732
293
13 564
11,801
1,634
236
157
236
164
222
210
112
37
123
60
475
37
121
92
270
111
38
121
55
458
76
111
81
202
76
29
96
40
456
37
97
84
49, 028
26, 768
79, 932
4,492
100, 286
45, 065
14, 869
444
15
824
157
515
377
1,848
159
326
443
14
818
153
515
382
1,841
160
325
447
12
756
128
399
1,123
264
355
Central bank
[Figures as of last report
date of month]
r
Revised.
12 Figures not yet available.
Not reported separately on bank statement; included with loans and discounts.
3
Agricultural and urban loans in process of liquidation.
July
Bank of Portugal (millions of
escudos):
Gold
Other reserves (net) __
_ _.
Non-reserve exchange
Loans and discounts
Government debt
Other assets
Note circulation _ _
_ __
Other sight liabilities
Other liabilities
National Bank of Rumania (millions of lei):
Gold
- .
Special exchange accounts
Loans and discounts
3
Special loans _ ._ _ _
__ __
Government debt
Other assets. _ __
_ _.
Note circulation
Demand deposits... _
_ _
Other liabilities
South African Reserve Bank (thousands of pounds):
Gold.
___
Foreign bills
Other bills and loans.
Other assets
Note circulation
Deposits
Other liabilities . . . . __
Bank of Sweden (millions of
kronor):
767
Gold
627
Foreign assets. _
11
Discounts
59
Loans
__
166
Domestic securities
520
Other assets
Note circulation.
_ __ 1,025
963
Demand deposits
163
Other liabilities
Swiss National Bank (millions of
francs):
2 461
Gold
274
Foreign exchange. _ . . .
49
Discounts
27
Loans..
__ _
682
Other assets
Note circulation. _
_ 1,741
1,106
Other sight liabilities
647
Other liabilities
Central Bank of the Republic of
Turkey (thousands of pounds):
36,906
Gold
2
Foreign exchange—Free. _ __
3,536
In clearing accounts
145,
754
Loans and discounts __
__ __
192,732
Securities.._
_
38, 340
Other assets
229, 521
Note circulation
Deposits
_ _
71, 426
116, 325
Other liabilities
Bank of the Republic of Uruguay
(thousands of pesos):
Issue department:
Gold and silver
Note circulation
Banking department:
Gold
Other
___ ___
Loans and discounts
Other assets _
Deposits
Other liabilities
National Bank of the Kingdom of
Yugoslavia (millions of dinars):
1,922
Gold.— _
503
Foreign exchange. _
1,860
Loans and discounts
Government debt
__ _ 2,230
3,273
Other assets
N o t e circulation __ _ _
Other sight liabilities..
Other liabilities
1938
1939
7,354
1,712
721
May
July
920
462
200
419
1,036
. 1,218
2,096
1,169
990
920
498
178
433
1,036
1,221
2,104
1,195
986
918
472
150
392
1,040
1,251
2,016
1,189
1,016
18, 756
4,422
13,615
1,534
10,169
12, 662
38,683
10, 524
11 951
18, 662
4,174
14,128
1,577
10, 247
12, 786
38, 948
10, 614
12,013
16,911
4,009
7,680
1,912
10, 396
11, 224
29, 659
12, 690
9,783
26, 638
7,666
813
16, 541
19,156
28 651
3,850
26, 428
8,030
16
14, 621
17, 694
28, 283
3,118
23, 049
6, 480
1,928
13,234
18,099
22,413
4,179
762
646
13
57
156
515
1,059
926
164
759
659
13
56
151
504
1,012
973
157
616
860
12
23
60
381
950
839
163
2 471
271
66
31
681
1,729
1,147
644
2 471
266
65
33
682
1,737
1,137
643
2 786
385
12
20
697
1, 541
1,723
637
June
36, 906
11
4,135
140, 915
192, 880
35, 450
229, 521
61, 509
119, 267
36, 884 36, 867
1
27
11,199 10, 276
131, 223 67, 450
192, 792 190, 001
32, 884 30, 016
229, 697 175,691
52, 305 56, 316
122, 981 102, 631
86, 235 103, 585
89, 670 87,156
1,835
20, 285
50, 553 50, 567
103, 626 98, 850
96,911 69,816
85, 442 83, 674
185, 933 137, 393
1,920
507
1,825
2,230
3,156
7,177
1,724
736
1,918
525
1,835
2,230
3,160
7,298
1,624
747
1,837
361
1,574
2,241
3,210
6,142
2,256
826
828
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
BANK FOR INTERNATIONAL SETTLEMENTS
[In thousands of Swiss gold francs *]
1938
1939
Assets
Rediscountable bills and acceptances
(at cost)
Time funds at interest
__
Sundry bills and investments
_
June 30
55, 807
62, 564
17, 218
17, 603
23,162
22, 386
228,082
35, 309
220, 824
«225, 434
33, 015
221,130
1,327
1,598
576,169
589, 289
Other assets .__
Total assets
c
July 31
July 31
Gold in bars
Cash on hand and on current account
with banks
Sight funds at interest...
__
1939
Liabilities
27, 384 "Demand deposits (gold)
34, 920 Short-term deposits (various currencies):
16, 481
Central banks for own account
Other
222, 243
55, 845 Long-term deposits: Special accounts
258, 582
Other liabilities
911
Total liabilities
616, 367
1938
July 31
June 30
14,355
13, 277
9,206
114, 718
3,558
122, 065
4,444
158, 889
4,977
255,122
255,122
256, 465
188, 417
194, 381
186, 830
576,169
589, 289
616, 367
July 31
Corrected.
i See BULLETIN for December 1936, p . 1025.
MONEY RATES IN FOREIGN COUNTRIES
[Per cent per annum]
Month
Bankers'
Treasury
acceptances
bills, 3
3 months
months
1929—July
1930—July
1931—July
1932—July
1933—July
1934—July
1935—July
1936—July......
1937—July
1938—July
5.38
2.37
2.58
.92
.48
.87
.65
.58
.56
.55
1939—January..
February.
March....
April
May
June
July
.55
.53
.63
1.40
.73
.79
.79
Month
Bankers'
Day-to-day allowance
money
on deposits
Money for Day-to-day
1 month
money
Private
discount
rate
Money for
1 month
.58
.53
.52
7.39
3.40
17.00
4.58
3.87
3.75
3.00
2.88
2.88
2.93
9.35
4.57
i18.98
I
5.75
5.50
4.44
2.97
2.73
2.65
2.88
8.21
4.30
118.89
i
5.49
5.19
4.67
3.10
2.96
2.64
2.96
5.20
1.85
1.53
.49
3.54
.74
3.25
2.01
.13
.13
4.90
1.85
1.40
1.00
2.64
1.00
2.77
1.73
.92
.50
.53
.51
.70
1.36
.70
.77
.77
.75
.75
.75
.76
.75
.77
.75
2.88
2.88
2.88
2.88
2.77
2.79
2.75
2.88
2. 88
2.88
2.88
2.53
2.50
2.50
2.46
2.53
2.70
2.36
2.46
2.71
2.65
.13
.13
.29
1.11
.72
.49
.51
.50
.50
.50
1.24
.80
.75
.75
.59
Switzerland
Belgium
(Brussels)
France
(Paris)
Italy
(Milan)
Private
discount
rate
Private
discount
rate
Private
discount
rate
Private
discount
rate
3.26
2.06
1.12
1.50
1.50
1.50
2.60
2.25
1.00
1.00
3.97
2.78
2.13
3.16
2.31
2.11
1.88
1.38
1.00
3.25
3.50
2.11
1.06
1.22
1.50
2.09
5.72
5.60
5.02
2.40
6.75
5.50
5.25
5.50
4.00
3.00
3.50
4.50
5.00
5.00
1938—December,.
1.00
2.21
2.23
5.00
1939—January...
February..
March
April
May
1.00
1.00
1.00
1.00
1.00
1.00
2.00
1.98
3.28
4.28
3.99
2.79
1.88
1.96
1.94
1.88
1.94
1.88
5.00
5.00
5.00
5.00
5.00
5.00
r
Private
discount
rate
4.54
1.78
2.05
.67
.62
.85
.75
.75
.79
.75
5.39
2.38
2.44
.66
.40
.76
1929—June..
1930—June.
1931—June.
1932—June.
1933—June _
1934—June.
1935—June.
1936—June.
1937—June.
1938—June.
June
Netherlands (Amsterdam)
Germany (Berlin)
United Kingdom (London)
Sweden
(Stockholm)
Hungary
Prime
commercial paper
5^-8
5^-8
up
Day-to-day Loans
to 3
money
months
M6H
4-4^
VA
VA
3-5
'4-6
23^-5
234-5
234-5
Japan (Tokyo)
Call
Discounted
money
bills
overnight
5. 48-5. 66
5.48
5. 29-5. 48
6.02-6. 57
5.11-5. 48
5.20
5.11
4.83
4.75
4.56
3.29
3.83
2.19
4.56
2.74
2.44
2.45
2.63
2.80
2.37
4.56
2.37
4.47
4.47
4.47
4.47
4.47
4.47
2.34
2.56
2.54
2.47
2.37
2.39
Revised.
Based on data for part of month, no quotations being available for remainder of month.
NOTE.—For explanation of table see BULLETIN for November 1926, pp. 794-796; April 1927, p. 289; July 1929, p. 503; November 1929, p . 736; May
1930, p. 318; and September 1938, p. 757.
1
SEPTEMBER
829
FEDEKAL KESEKVE BULLETIN
1939
DISCOUNT RATES OF CENTRAL RANKS
[Per cent per annum]
Central bank of—
Date effective
In effect June 30,
1936
July 7
July 10
Sept. 9
Sept. 25
Oct. 2
Oct. 9
Oct. 16
Oct 20
Nov. 26
Dec 3
Jan. 28, 1937
June 15
July 7
Aug 4
Sept. 3
Nov 13
May 10, 1938
May 13
May 30
Sept 28
Oct 27
Nov 25
Jan 4, 1939
Apr. 17
M a y 11
July 6
Aug. 24
Aug 29
In effect Aug. 29,
1939
United
Kingdom
2
GerFrance many
4
4
Belgium
Neth- SwitzerJapan
er
lands land
2
2H
3
3.29
3
2
5
3
2
2K
Wi
2
4
6
5
4
&A
3
4
2H
3
3
Central
bank of—
Albania
Argentina..
Belgium
Bolivia
Britishlndia
Bulgaria
Canada
Chile
Colombia__.
CzechoSlovakia
Danzig
Denmark,..
Ecuador
El Salvador
Estonia
Finland
France
G e r m a n y . __
Greece
Hungary
Italy
Rate
Aug.
29
6
April 1, 1937
&A Mar. 1, 1936
Wi
6
3
6
2^
3-4^
4
July
July
Nov.
Aug.
Mar.
Dec.
July
6,
5,
28,
15,
11,
16,
18,
3
4
Jan.
Jan.
Feb.
Nov.
Mar.
Oct.
Dec.
Jan.
Sept.
Jan.
Aug.
May
1, 1936
2, 1937
23, 1939
30, 1932
30, 1939
1, 1935
3, 1934
4, 1939
22, 1932
4, 1937
29, 1935
18, 1936
3H
3
4^
4
2
4
6
4
4K
Central
bank of—
Rate
Aug.
29
effective
Japan.
Java
Latvia
Lithuania...
Mexico . .
Netherlands
New
Zealand
Norway
Peru
Poland
Portugal
Rumania
South Africa
Spain
Sweden __ _
Switzerland
Turkey.
United Kingdom
U. S. S. R._.
Yugoslavia..
3.29
3
43^
6
3
3
Apr. 7, 1936
J a n . 14, 1937
Jan. 1, 1939
July 15, 1939
Mar. 1, 1937
Aug. 29, 1939
4
Nov.
Jan.
May
Dec.
Aug.
May
May
July
Dec.
Nov.
July
Date
effective
1939
1932
1935
1935
1935
1936
1933
Date
w*
6
±A
y-A
5
2A
VA
4
4
4
5
19, 1938
5, 1938
20, 1932
18, 1937
11, 1937
5, 1938
15, 1933
15, 1935
1, 1933
26, 1936
1, 1938
Aug. 24, 1939
July 1, 1936
Feb.
1, 1935
2K
2K
2
Changes since July 24: Netherlands—Aug. 29, u p from 2 to 3 per cent;
United Kingdom—Aug. 24, u p from 2 to to 4 per cent.
4
3
2H
4
3
4
2
4
3
3.29
COMMERCIAL BANKS
[Figures as of end of month, except those for United Kingdom, which are averages of weekly figures]
Liabilities
Money at
United Kingdom
Cash
call and Bills discounted
reserves
short
(Figures in millions of pounds sterling)
notice
Securities
Loans to
customers
Other
assets
Deposits
Total
Demand i Time l
Other
liabilities
10 London clearing banks
1930—December.
1931—December.
1932—December.
1933—December.
1934—December.
1935— December.
1936—December.
1937—December.
1938—December.
208
184
207
213
216
221
236
236
235
144
119
127
119
151
159
187
155
150
322
246
408
311
255
322
316
295
244
285
297
472
565
594
605
630
605
606
933
905
778
740
759
784
864
954
940
1,876
1,737
1,983
1,941
1,971
2,091
2,238
2,250
2,172
992
868
991
1,015
1,044
1,140
847
846
963
900
910
924
254
237
216
244
251
231
232
237
254
249
256
2,315
2,330
1,288
1,284
1,012
1,026
245
252
251
242
239
242
256
255
2,299
2,309
2,298
1,245
1,254
1,248
1,236
1,247
1,244
1,256
1,054
1,055
1,050
1,033
1,009
1,004
997
256
256
256
262
270
1,260
1,213
1,186
1,185
1,194
970
964
966
970
973
267
268
264
267
268
265
263
240
222
208
237
247
231
238
242
250
11 London clearing banks
1936—December.
1937—December.
244
244
195
163
322
300
660
635
890
1938—June
July
August...,.
September.
October. __
November.
December.
247
244
241
234
234
233
243
154
159
153
148
149
149
160
302
305
289
268
272
250
630
633
642
646
645
642
635
985
974
973
973
966
971
1939—January...
February..
March
April
.
May
June
July
248
243
232
229
236
235
235
143
138
141
145
144
150
155
256
212
190
184
201
249
625
617
611
611
605
600
597
972
982
992
997
992
993
252
253
249
256
258
257
251
2
2,256
2,249
2,254
2,230
2,176
2,152
2,155
2,167
2,219
2,240
1 Through December 1937 excludes deposits in offices outside England and Wales, which are included in total.
able beginning 1936.
2
District Bank included beginning in 1936.
NOTE.—For other back figures and explanation of tables see BULLETIN for October 1933, pp. 639-640.
Figures for 10 banks not avail-
830
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
COMMERCIAL BANKS—Continued
[Figures as of end of month]
Assets
(4 large banks. Figures in millions of
francs)
1930—December
1931—December
1932—December _
1933—December
1934—December
1935—December
1936—December
1937—December
1938—July _
August
September _
October __
November
December
1939—January _ _
February
March
April
. .
Mayp.__
Cash
reserves
2,419
11,311
9,007
5,870
5,836
3,739
3,100
3,403
3,297
3,270
4,410
3,152
3,357
3,756
3,329
3,433
3,604
3,522
5,143
.
_
_
.
_
Due from Bills discounted
banks
4,675
2,168
1,766
1,416
1,421
2,484
2,975
4,116
3,962
4,708
4,237
4,238
4,318
4,060
3,985
3,824
3,519
3,745
3,767
Other
assets
Loans
10,743
9,274
7,850
8,309
8,159
8,025
7,631
7,624
7,314
7,490
8,072
7,613
7,956
7,592
7,079
6,927
6,654
6,414
7,056
20,448
18,441
22,014
19,848
18,304
16,141
17, 582
18, 249
21, 620
19,828
14,080
18,940
18,522
21, 435
22,100
23,024
23, 945
25, 667
24, 874
Total
36,681
38,245
37,759
32.635
30,943
27.553
28,484
30,348
33,184
32,293
27,869
30,952
30,971
33. 578
33 .444
34. 243
34 .793
36, 368
37, 883
2,361
2,130
1, 749
1, 8?7
1, 717
900
957
% 134
653
70?
921
2, 088
1, 976
1, 940
1, 339
1, 250
1, 310
1, 353
1, 411
Cash
(5 large Berlin banks. Figures in milreserves
lions of reichsmarks)
__
__
._
May
June
_
Due
from
banks
191
173
143
131
115
139
137
1,483
175
219
189
237
214
307
308
271
292
306
148
199
270
179
195
184
817
583
471
393
316
269
299
255
295
261
270
285
Canada
(10 chartered banks. Figures in millions of Canadian dollars)
April.
__
. . .
May
June
ances
1,397
1,222
1,268
862
904
694
629
600
483
508
463
503
921
576
295
273
193
337
473
661
566
550
678
775
511
537
746
721
581
624
667
643
538
541
667
660
558
522
Other
liabilities
4,357
4,503
4,331
4,362
4,301
4,399
4,289
4,517
4,096
4,155
4,174
4,304
4,411
4,484
3,745
3,677
3,697
3,775
3,846
Liabilities
Bills dis- Loans
counted
2,453
1,431
1,631
1,702
2,037
2,162
2,567
3, 205
3,589
3,384
3,620
3,643
3,934
3,888
3,904
4,364
4,537
4,108
Iiccept-
Time
35,284
37,023
36,491
31,773
30,039
26,859
27,955
29, 748
32, 701
31, 784
27,405
30,449
30.460
3.042
32,863
33, 619
34,127
35, 700
37, 223
7,416
5,377
4,570
3,731
3,331
2,884
2,729
2,628
2,731
2,817
2,743
2,685
2,708
2,798
2,833
2,761
2,772
2,988
Securities
482
807
938
860
874
1,027
1,112
1,020
1,098
1,097
1,183
1,406
1,178
1,145
1,112
1,082
1,073
1,080
•
•
Other
assets
880
1,127
991
1,003
983
983
851
812
844
876
895
893
895
902
901
891
852
829
Deposits
Total
9,091
6,062
6,161
5,754
5,816
5,376
5,751
6,264
6,933
6,915
7,031
7,234
7,334
7,377
7,458
7,745
7,981
7,793
Demand
3,857
3,252
2,958
2,624
2,731
2,435
2,661
2,912
3,219
3,311
3,373
3,531
3,619
3,576
3,693
3,870
3,996
3,793
Assets
1930—December
1931—December
1932—December .
1933—December
1934—December
1935—December .__
1936—December
1937—December
1938—August __
September
October
November
December
1939—January
February
March
Own
Demand
Assets
Germany *
1930—November
1931—November...
1932—November
1933—November
1934—November
1935—November... _
1936—November
1937—November
1938—August
September
October
November
1939—January
February
March
. . .
April _
Liabilities
Deposits
Time
5,233
2,810
3,203
3,130
3,085
2,941
3,090
3,352
3,714
3,603
3, 658
3,703
3,716
3,801
3,765
3,875
3,985
3,999
Credits Other
obtained liabilifrom
ties
banks
1,986
1,328
1,146
661
485
686
579
513
416
424
422
420
414
410
401
398
396
390
1,828
2,341
1,550
1,481
1,432
1,449
1,334
1,335
1,368
1,400
1,427
1,438
1,436
1,427
1,418
1,414
1,385
1,342
Liabilities
Security
Entirely in Canada
loans
abroad
and net SecuriOther
ties
due
Cash Security loans
from
reserves loans and dis- foreign
counts banks
207
201
211
197
228
228
240
255
205
135
103
106
103
83
114
76
1,275
1,253
1,104
1,036
977
945
791
862
171
146
155
134
155
141
161
102
262
270
71
60
913
965
137
150
291
277
66
64
147
192
263
276
65
63
986
970
940
919
166
167
267
259
260
266
255
60
56
54
55
53
921
943
956
963
957
171
192
203
217
226
604
694
778
861
967
1,155
1,384
1,411
1,440
1,421
1,409
1,426
1,463
1,454
1,490
1,499
1,509
1,505
1,525
Deposits payable in Canada excluding interbank
deposits
Other
assets
circulation
602
510
439
432
449
485
507
510
133
129
115
121
124
111
103
96
459
481
93
99
470
471
94
92
474
459
88
85
450
458
449
452
494
88
93
90
85
92
Total
2,115
2,058
1,916
1,920
2,035
2,180
2,303
2,335
2,418
2,447
2,480
2,499
2,500
2,457
2,471
2,492
2, 509
2,524
2,542
Demand
689
698
538
563
628
694
755
752
783
814
824
844
840
789
780
791
812
846
862
Time
1,426
1,360
1,378
1,357
1,407
1,486
1,548
1,583
1,635
1,633
1,656
1,655
1,660
1,667
1,691
1,700
1,697
1,678
1,680
liabilities
816
752
760
725
718
745
790
785
771
802
795
808
782
796
800
821
833
850
875
p Preliminary.
i Combined monthly balance sheets not published for December. Prior to merger of two of the banks in February 1932 figures refer to six large
Berlin banks. Beginning in 1935 figures are not entirely comparable with those shown for previous years due to changes in reporting practice
(See BULLETIN for J u n e 1935, p . 389).
NOTE.—For other back figures and explanation of table see BULLETIN for October 1933, pp. 641-646, June 1935, pp. 388-390, and August 1939,
p. 699.
SEPTEMBER
831
FEDERAL RESERVE BULLETIN
1939
FOREIGN EXCHANGE RATES
[Average of noon buying rates for cable transfers in New York.
In cents per unit of foreign currency]
Brazil (milreis)
Argentina
(peso)
Australia
(pound)
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
95.127
83. 505
66. 738
58. 443
72. 801
33. 579
32. 659
33.137
32. 959
32.597
480. 83
458. 60
351. 50
279. 93
337. 07
400. 95
388. 86
395. 94
393. 94
389. 55
13. 912 11. 8072
13. 952 10. 7136
13. 929 7. 0290
7.1223
13.914
17. 900 7. 9630
23. 287 8. 4268
18. 424 8. 2947
16. 917 8. 5681
16. 876 8. 7190
16. 894 5. 8438
1938—November _.
December..
31. 382
31.135
375.05
372. 06
16. 908
16. 843
5. 8595
5. 8646
1939—January
February...
March
April
May
June
July
31.126
31. 236
31. 234
31. 207
31. 210
31.217
31.211
372. 06
373. 33
373. 27
372. 86
372. 89
373.12
373. 03
16. 893
16. 860
16. 823
16. 838
17. 016
17. 008
16. 991
5. 8598
5. 8602
5. 8647
5. 8595
Year or month
Year or month
Czecho
Slovakia
(koruna)
Belgium
(belga)
Chile (peso)
Free
market ]
Official
5. 875
6. 0585
6. 0571
5. 1038
5. 0555
British
India
(rupee)
Bulgaria
(lev)
Canada
(dollar)
Official
57.136
57.001
57. 055
56. 990
56. 983
56. 982
57.009
57.169
57. 036
4. 0000
4. 0000
41. 901
29. 917
22. 437
21. 736
28. 598
34.094
36. 571
29. 751
29. 606
21. 360
35.151
34. 860
34. 881
35.014
35. 057
34. 962
34. 916
34. 924
34. 905
1. 2325
1. 2326
99. 248
99. 064
5.1777
5.1758
4. 0000
4. 0000
15. 796
16.110
1. 2156
1. 2130
1. 2103
1. 2089
1.2101
1. 2077
1. 2126
99.194
99. 502
99. 583
99. 483
99. 620
99. 773
99. 835
5.1739
5.1736
5.1733
5.1735
5.1733
5.1737
5.1703
4. 0000
4. 0000
4. 0000
4. 0000
4. 0000
4. 0000
4. 0000
16. 256
15. 885
16.016
16.015
15. 987
13. 434
10.637
26. 680
26. 765
25. 058
18. 832
19. 071
22. 500
21.883
22.189
22.069
21. 825
3. 9161
3.9249
3. 9200
3. 9276
5. 0313
6. 5688
6. 6013
6.1141
4.0460
2. 8781
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
2. 9609
2. 9640
2. 9619
2. 9618
3. 8232
4. 2424
4.1642
4. 0078
3. 4930
3. 4674
1938—November.
December.
3. 4264 21.011 482. 66 2. 0750
3. 4221 20. 844 478. 88 2.0554
2. 6343 40. 042
2. 6323 40. 080
.8636
.8559
1939—January....
February..
March
April
May
June
July
3. 4258 20. 841 478. 76
3.4248 20. 912 480. 43
3.4245 20. 912 480. 40
20. 891 479. 90
20. 895 479. 97
20. 900 480.10
20. 896 480. 00
2. 6369
2. 6471
2. 6488
2. 6478
2. 6487
2. 6493
2. 6488
.8558
.8583
.8586
.8579
.8570
. 8565
.8576
2. 0543
2. 0604
2. 0597
2.0542
2. 0548
2. 0559
2. 0547
96. 551
96. 493
96. 570
95. 275
81. 697
61. 780
56.011
57. 083
56. 726
55. 953
.7216
99. 247 12. 0601
.7209
99. 842 12.0785
. 7163 96. 326 12. 0669
.7193
88.090
7. 9079
1. 0039 91. 959 7. 6787
1. 2852 101.006 10. 1452
1. 2951 99. 493 5. 0833
1. 2958 99. 913 5.1240
1. 2846 100. 004 5.1697
1. 2424 99. 419 5.1716
GerHunHong
France m a n y Greece
gary
(drach- Kong
(reichs(franc)
ma)
(dollar)
(pengo)
mark)
2. 5160
2. 5169
2. 3875
1. 5547
1. 8708
2. 2277
2.1627
2.1903
2.1811
2.1567
Colombia
(peso)
36. 202
36.067
33. 690
26. 347
31.816
37. 879
36. 964
37. 523
37. 326
36. 592
FinDenland
mark Egypt (mar(krone) (pound) kka)
498. 07
498. 60
465.11
359. 54
434. 39
516. 85
502. 60
509. 68
506. 92
501. 30
Export
China
(yuanShanghai)
23. 809 1. 2934
23. 854 1. 2959
23. 630 1. 2926
23. 749 .8320
.7233
30.518
39. 375 .9402
40. 258 .9386
40. 297 .9289
40. 204 .9055
.8958
40.164
40.066
40.117
40. 098
40.081
40.115
40.105
40.113
Italy
(lira)
99. 965
99. 952
99. 930
99. 941
99. 920
99. 909
99. 916
99. 925
99. 931
99. 932
99. 933
99. 932
99. 936
99. 942
99. 949
99. 950
New
Japan Mexico NetherZealand
lands
(yen) (peso) (guilder) (pound)
48.183
47.133
35. 492
31. 850
28.103
27. 742
27. 778
27. 760
27. 750
22.122
40.162
40. 225
40. 230
40. 295
51. 721
67. 383
67. 715
64. 481
55. 045
55. 009
483.
468.
415.
320.
340.
402.
391.
398.
396.
392.
35
29. 325
29.174
19. 637 5. 2603 27. 430 19. 971
19. 642 5. 2603 27. 213 19. 931
54. 334
54. 356
376.
373.
50
72
29.107
29. 078
29. 049
28. 659
28. 884
28. 916
28. 703
19. 632
19. 627
19. 613
19. 602
19. 588
19.577
19. 576
54.187
53. 626
53. 092
53.132
53. 601
53.167
53. 278
373.
374.
374.
374.
374.
374.
374.
47.167
33. 853
24. 331
23. 460
29. 452
38. 716
48. 217
31.711
30. 694
30. 457
17. 441
17. 494
17. 452
17. 446
22. 360
29. 575
29. 602
29. 558
19. 779
19. 727
5. 2334
5. 2374
5. 2063
5.1253
6. 7094
8. 5617
8. 2471
7. 2916
5. 2607
5. 2605
Cuba
(peso)
5. 2603
5. 2602
5. 2601
5. 2601
5. 2603
5. 2604
5. 2605
46.100
49. 390
48. 851
28. Ill
25. 646
29. 715
28. 707
29. 022
28. 791
28. 451
27. 205
27. 297
27. 300
27. 274
27. 277
27. 284
27. 279
19. 483
19. 973
20. 026
20. 023
20. 025
19. 753
17.133
21
22
29
19
00
46
26
92
91
59
84
78
41
42
60
49
Uruguay (peso)
Year or month
Norway
(krone)
Poland
(zloty)
Portugal
(escudo)
Rumania
(leu)
South
Africa
ipound)
(peseta)
Spain
Straits
SweSettleden
ments
(krona)
(dollar)
Switzerland
(franc)
United
Turkey King(pound) dom
(pound)
Controlled
Yugoslavia
Non-con' (dinar)
trolled
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
26. 683
26. 760
25. 055
18. 004
21. 429
25. 316
24. 627
24. 974
24. 840
24. 566
11.194
11. 205
11.197
11.182
14. 414
18. 846
18. 882
18. 875
18. 923
18. 860
4. 4714
4. 4940
4. 2435
3.1960
3. 9165
4. 6089
4. 4575
4. 5130
4. 4792
4. 4267
.5961
.5953
.5946
.5968
.7795
1. 0006
.9277
.7382
.7294
.7325
483. 27
483. 79
480. 76
476. 56
414. 98
498. 29
484. 66
491. 65
489. 62
484.16
14. 683
11. 667
9.545
8.044
10. 719
13. 615
13.678
12.314
6.053
5.600
485. 69
486. 21
453. 50
350. 61
423. 68
503. 93
490.18
497. 09
494. 40
488. 94
98. 629
85. 865
55.357
47. 064
60. 336
79. 956
80. 251
79. 874
79.072
64. 370
1. 7591
1. 7681
1. 7680
1. 6411
1. 7607
2. 2719
2. 2837
2. 2965
2. 3060
2.3115
1938—November.
December .
23. 652
23. 463
18. 798
18. 865
4. 2683
4. 2406
.7305
.7315
466. 01
462. 32
61. 955
61. 471
2. 2797
2. 2776
1939—January
February..
March
April
May
June
July
23. 459
23. 539
23. 539
23. 515
23. 519
23. 524
23. 520
18.901
18. 898
18. 860
18. 818
18.812
18. 812
18. 808
4. 2384
4. 2508
4. 2502
4. 2448
4. 2460
4. 2484
4. 2506
.7311
.7272
.7140
.7056
.7056
.7042
.7035
462. 22
463. 83
463. 74
462. 80
463.11
463. 32
463. 28
54. 738 24. 251 22. 653 80. 289 470. 75
54. 302 24. 051 22. 612
467. 03
4.613 54. 246 24. 041 22. 582 80. 436 466. 94
54. 416 24.133 22. 672 80. 385 468. 57
54. 394 24.130 22. 614 80. 361 468. 54
54. 273 24. Ill 22. 431 80. 279 468. 05
11.023 54. 373 24.110 22. 480 80. 290 468. 13
11.023 54. 509 24.107 22. 546 80.101 468. 24
11. 023 54. 785 24.114 22. 550 80. 021 468.15
61. 438
61. 646
61. 650
61. 592
61. 598
61. 609
61. 600
2. 2800
2. 2820
2. 2781
2. 2636
2. 2675
2. 2674
2. 2744
5.054
4.996
56. 012
55. 964
52. 445
40. 397
49. 232
59. 005
57.173
58. 258
57. 973
56. 917
26. 784
26. 854
25. 254
18. 471
22.032
25. 982
25. 271
25. 626
25. 487
25.197
19. 279
19. 382
19. 401
19. 405
24.836
32. 366
32.497
30.189
22. 938
22. 871
48.411
47. 061
47.181
47. 285
60. 440
79. 047
80. 312
80. 357
80.130
80.109
35. 620
35. 818
1
Owing to establishment of exchange monopoly by Decree of Dec. 23, 1937, averages for period Jan. 1938-April 1939 represent official, and not
free market, quotations as previously indicated.
NOTE.—Developments affecting averages since January 1939 have been as follows: Brazil—official quotations not reported April 10-June 8
inclusive, free market quotations reported beginning June 9; Czecho-Slovakia—no quotations available beginning March 15; Spain—quotations
resumed on May 15, nominal; Uruguay—non-controlled rate reported in addition to controlled rate beginning June 22. For further information
concerning nominal status of exchange quotations, special factors affecting the averages, and changes in the basis of quotation, see BULLETIN for
March 1938, p . 244, and March 1939, p. 236.
832
FEDERAL RESERVE BULLETIN
SEPTEMBER
1939
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES
WHOLESALE PRICES—ALL COMMODITIES
[Index numbers]
Year or month
United
Canada
States
(1926=100) (1926=100)
United
Kingdom
(1930=100)
France
(1913=100)
Germany
(1913=100)
Italy
(1928=100)
Japan
(October
1900=100)
Netherlands
(1926-30=
100)
Switzerland
(July 1914
=100)
1926
100
100
i 124
695
134
237
106
144
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
95
86
73
65
66
75
80
81
86
79
96
87
72
67
67
72
72
75
85
79
100
88
86
86
88
89
94
109
101
627
554
500
427
398
376
338
411
581
653
137
125
111
97
93
98
102
104
106
106
95
85
75
70
63
62
68
76
89
95
220
181
153
161
180
178
186
198
238
251
100
90
76
65
63
63
62
64
76
72
141
126
110
96
91
90
90
96
111
107
78
79
78
78
78
78
77
80
79
76
75
74
74
73
101
101
100
98
99
98
98
660
652
649
652
664
674
684
106
106
106
106
106
106
106
96
95
96
97
97
97
96
254
254
252
252
253
254
255
72
71
71
71
71
70
71
107
106
105
106
106
106
106
77
77
77
76
76
76
75
73
73
73
73
74
73
73
97
97
97
97
98
98
98
689
685
683
675
684
683
678
107
107
107
106
107
107
97
97
98
98
97
98
259
264
265
266
270
270
270
70
70
70
70
70
70
106
105
105
106
107
106
.__ _ .
___
1938—June.
July
August
September __ _
October
November
December _
.
1939—January
February
March _ _
April
May
_
June
July
i Approximate figure, derived from old index (1913—100).
WHOLESALE PRICES—GROUPS OF COMMODITIES
[Indexes for groups included in total index above]
United Kingdom
(1930=100)
United States (1926=100)
Germany (1913=100)
France (1913=100)
Year or month
Farm
products
Foods
Other
commodities
Foods
Industrial
products
Farm
and food
products
Industrial
products
Agricultural
products
Provisions
Industrial raw
Indusand semi- trial finfinished
ished
products products
100
100
100
581
793
129
132
130
150
105
88
65
48
51
65
79
81
86
69
100
91
75
61
61
71
84
82
86
74
92
85
75
70
71
78
78
80
85
82
100
89
88
83
85
87
92
102
97
100
87
85
87
90
90
96
112
104
579
526
542
482
420
393
327
426
562
641
669
579
464
380
380
361
348
397
598
663
130
113
104
91
87
96
102
105
105
106
125
113
96
86
75
76
84
86
96
91
132
120
103
89
88
91
92
94
96
94
157
150
136
118
113
116
119
121
125
126
1938—June
July
August _
September. _ _ _ _
October
November.
December
69
69
67
68
67
68
68
73
74
73
75
74
74
73
81
81
81
81
81
81
80
99
98
95
92
93
91
92
101
102
102
102
102
103
102
657
630
625
631
646
662
684
663
671
670
669
680
685
685
106
106
107
106
106
107
107
90
90
90
91
92
95
95
94
94
94
94
94
94
94
126
126
126
126
126
126
126
1939—January
February
March
April. _
May.__ _
June
July
67
67
66
64
64
62
63
72
72
70
69
68
68
68
80
80
80
81
81
80
80
93
91
90
91
92
92
91
100
100
100
100
101
101
102
688
673
671
650
652
690
694
694
697
712
718
721
108
108
108
107
108
109
94
94
94
92
94
91
94
94
95
95
94
94
126
126
126
126
126
126
P126
1926
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
__.
_
___
__.
_ __
_____
••643
629
r
p Preliminary.
Revised
Sources— See BULLETIN for March 1931, p. 159; March 1935, p. 180; October 1935, p. 678; March 1937, p. 276; and April 1937, p. 372.
833
FEDERAL RESERVE BULLETIN
SEPTEMBER 1939
PRICE MOVEMENTS IN PRINCIPAL COUNTRIES—Continued
RETAIL FOOD PRICES
COST OF LIVING
[Index numbers]
[Index numbers]
Ger- Nether- SwitzEngUnited
lands
land
States
France many
erland
1911July
July
19131923June
1925=100 1914=100 1914=100 1914=100 1913=100 1914=100
Year or
month
United
EngGerNether- SwitzFrance
States
many
land
lands
Jan.erland
1923June
July
19131911June
1925=100 1914=100 1914=100 1914=100 1913=100 1914=100
Year or
month
1926
109
161
554
146
161
160
1926
103
170
505
142
168
162
1929
_ _
1930
1931
1932
1933 _ _
1934
1935
1936 _
1937
1938
105
100
82
68
66
154
145
131
126
120
611
614
611
536
491
156
146
131
116
113
162
150
136
119
120
156
152
141
125
117
100
97
89
80
76
164
158
148
144
140
122
125
130
481
118
124
115
79
141
81
82
143
147
154
148
136
121
118
121
123
125
125
126
161
158
150
138
131
74
656
681
569
526
520
516
483
507
619
*>698
168
161
151
141
139
81
82
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
692
126
127
127
125
125
125
125
85
139
423
470
120
122
601
122
79
141
1938-June
July
August
September
October, __
November
December.
80
80
78
79
78
78
79
1939-January._.
FebruaryMarch
April.. _
May.
June
July .
78
138
748
122
77
76
77
77
76
77
138
135
135
134
134
744
742
734
738
739
122
123
122
123
124
114
120
118
120
127
130
702
122
130
130
138
146
141
140
139
698
671
677
697
725
123
124
124
121
121
134
130
129
130
130
130
129
129
130
130
140
727
121
128
130
130
139
742
121
130
129
129
128
129
130
131
*130
Quarterly basis.
Sources.—See BULLETIN for April 1937, p. 373.
84
1938 June
July
August.-.
September
October
November
December.
154
83
156
83
155
159
156
156
155
83
689
156
83
1939-January
February
March
April
May
June
July
156
722
155
82
140
1
137
129
128
130
137
139
137
140
139
138
139
138
137
137
136
137
137
137
138
137
137
137
126
126
126
126
126
127
155
153
153
153
153
136
132
2138
136
136
136
137
137
p Preliminary.
1 Revised index from March 1936 (see BULLETIN for April 1937, p. 373)
2
Quarterly basis.
SECURITY PRICES
[Index numbers except as otherwise specified]
Bonds
Year or month
United
States
(average
price) l
England
France
(December
1921=100) (1913=100)
Common stocks
Germany
(average
price)
Number of issues..
60
1926
97.6
110.0
57.4
1929.
1930
1931
1932
1933
1934
1935
1936....
1937
1938
. _—
98.1
99.3
90.9
69.5
73.4
84.5
88.6
97.5
93.4
78.9
110.2
111.8
108.4
113.2
119.7
127.5
129.9
131.2
124.6
121.3
85.1
95.8
96.9
88.6
81.3
82.1
83.5
76.3
75.1
77.3
81.4
83.3
3 83.4
3 67.1
82.5
90.7
95.3
95.8
98.7
99.9
1938—June
July
August
September...
October
November..
December...
75.3
80.8
81.3
78.7
81.8
82.1
81.1
121.9
123.4
122.4
118.4
118.2
118.0
116.3
77.2
76.5
76.6
75.6
78.3
80.6
88.3
1939—January
February
March
April..
May..
June.
July
81.9
82.1
83.1
79.4
80.2
81.4
81.6
115.9
115.8
113.6
110.8
113.5
113.5
112.5
83.4
86.5
86.0
86.6
85.1
84.0
84.3
87
36
(1926=100)
Netherlands 2
United
States
England
France
Germany
Netherlands
(1930=100)
100
420
278
300
329
100.0
100.0
100.0
100.0
100.0
104.3
104.1
94.8
105.3
113.4
107.8
109.1
* 101. 8
105.9
190.3
149.8
94.7
48.6
63.0
72.4
78.3
111.0
111.8
83.3
119.5
102.6
78.9
67.9
78.6
85.7
86.3
97.0
96.3
80.8
217.6
187.6
132.2
105.2
99.6
83.3
79.7
77.2
97.4
89.7
122.8
100.2
• 78.0
»50.3
61.7
71.1
82.9
91.6
102.6
100.1
100.0
100.0
99.9
99.8
99.8
99.7
99.2
107.0
107.0
106.3
100.6
105.6
105.3
105.9
73.1
88.0
89.5
86.0
91.1
94.7
92.0
78.5
82.1
81.1
78.4
79.6
80.4
78.4
91.4
88.8
87.6
83.7
88.0
91.8
104.7
101. 4
99.0
93.8
94.7
98.6
97.2
94.6
91.6
97.2
97.1
92.8
98.0
98.8
97.8
99.0
99.0
99.0
99.0
99.0
99.0
99.0
104.3
102.1
100.9
95.2
98.0
96.3
91.8
90.1
91.7
81.9
83.1
86.0
86.1
78.0
77.5
77.1
75.1
77.0
76.6
75.8
94.0
100.0
97.9
97.9
103.0
98.3
100.4
95.3
96.1
94.4
94.9
94.1
92.5
91.7
94.3
92.4
94.0
87.2
89.3
91.6
139
8
100
70
46
52
55
55
66
104
96
1 Prices derived from average yields for 60 corporate bonds as published by Standard Statistics Co.
2 Indexes of reciprocals of average yields. For old index, 1929-1936, 1929=100; average yield in base year was 4.57 per cent. For new index
beginning January 1937, January-March 1937=100; average yield in base period was 3. 39 per cent.
3 Exchange closed from July 13 to Sept. 2, 1931, and from Sept. 19, 1931, to Apr. 11, 1932. Index for 1931 represents average of months JanuaryJune; index for 1932 represents average of months May-December.
* New index. See note 2.
Sources— See BULLETIN for February 1932, p. 121; June 1935, p. 394; April 1937, p. 373; July 1937, p. 698; and November 1937, p. 1172.
FEDERAL RESERVE DIRECTORY
835
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
MARRINER S. ECCLES, Chairman
RONALD RANSOM, Vice Chairman
M. S. SZYMCZAK
JOHN K. MCKEE
CHESTER C. DAVIS
ERNEST G. DRAPER
LAWRENCE CLAYTON, Assistant to the Chairman
ELLIOTT THURSTON, Special Assistant to the Chairman
CHESTER MORRILL, Secretary
LISTON P. BETHEA, Assistant Secretary
S. R. CARPENTER, Assistant Secretary
J. C. NOELL, Assistant Secretary
WALTER WYATT, General Counsel
J. P. DREIBELBIS, Assistant General Counsel
GEORGE B. VEST, Assistant General Counsel
B. MAGRUDER WINGFIELD, Assistant General Counsel
LEO H. PAULGER, Chief, Division of Examinations
R. F.. LEONARD, Assistant Chief, Division of Examinations
C. E. CAGLE, Assistant Chief, Division of Examinations
E. A. GOLDENWEISER, Director, Division of Research and Statistics
WOODLIEF THOMAS, Assistant Director, Division of Research and Statistics
EDWARD L. SMEAD, Chief, Division of Bank Operations
J. R. VAN FOSSEN, Assistant Chief, Division of Bank Operations
J. E. HORBETT, Assistant Chief, Division of Bank Operations
CARL E. PARRY, Chief, Division of Security Loans
PHILIP E. BRADLEY, Assistant Chief, Division of Security Loans
O. E. FOULK, Fiscal Agent
JOSEPHINE E. LALLY, Deputy Fiscal Agent
FEDERAL OPEN MARKET COMMITTEE
FEDERAL ADVISORY COUNCIL
MARRINER S. ECCLES, Chairman
District No. 1 (BOSTON)
THOMAS M. STEELE
GEORGE L. HARRISON, Vice Chairman
District No. 2 (NEW YORK)
LEON FRASER
CHESTER C. DAVIS
ERNEST G. DRAPER
M. J. FLEMING
GEORGE H. HAMILTON
HUGH LEACH
WM. M C C . MARTIN
JOHN K. MCKEE
RONALD RANSOM
M. S. SZYMCZAK
District No. 3 (PHILADELPHIA)
HOWARD A. LOEB,
District No. 4 (CLEVELAND)
T. J. DAVIS
CHESTER MORRILL, Secretary
V ice-President
District No. 5 (RICHMOND)
ROBERT M. HANES
District No. 6 (ATLANTA)
EDWARD BALL
District No. 7 (CHICAGO)
EDWARD E. BROWN
District No. 8 (ST. LOUIS)
WALTER W. SMITH
District No. 9 (MINNEAPOLIS)
JOHN CROSBY
President
S. R. CARPENTER, Assistant Secretary
District No. 10 (KANSAS CITY)
JOHN EVANS
WALTER WYATT, General Counsel
District No. 11 (DALLAS)
R. E. HARDING
J. P. DREIBELBIS, Assistant General Counsel
E. A. GOLDENWEISER, Economist
JOHN H. WILLIAMS, Associate Economist
ALLAN SPROUL, Manager of System Open Market Account
836
District No. 12 (SAN FRANCISCO)__.PAUL S. DICK
WALTER LICHTENSTEIN, Secretary
SENIOR OFFICERS OF FEDERAL RESERVE BANKS
Federal Reserve
Bank of—
Chairman and Federal
Reserve Agent
President
First Vice President
Vice Presidents
W. Willett 2
Boston
F H Curtiss
R. A. Young
W. W. Paddock _._
New York
Owen D. Youna:_
G. L. Harrison
Allan Sproul
Philadelphia
T. B. McCabe
J S Sinclair
F J Drinnen
C. A. Mcllhenny 3
W. J. Davis
E. C. Hill
Cleveland
G C Brainard
M J Fleming
F J Zurlinden
W H. Fletcher
G. H. Wagner
W. F. Taylor s
Richmond
Robert Lassiter
Hueh Leach
J. S. Walden, Jr.
J. G. Fry
G. H. Keesee *
Atlanta
F. H. Neelv
R. S. Parker
Chicago
R. E. Wood i
G. J. SehaUer
II. P. Preston
C. S. Young 3
W. H. Snyder
J. H. Dillard
! v^t Louis
W T Nardin
W McC Martin
F G Hitt
0. M. Atteberv
C. M. Stewart 2
Minneapolis
W C Coffev i
J. X. Pevton
0. S. Powell
II. I. Ziemer 3
E. W. Swanson
Kansas City
R B C aid well
G II Hamilton
C. A. Worthington
II. G. Leedy
J. W. Helm a
Dallas
J II Men-itt
R R Gilbert
E B Stroud
R. B. Coleman
W. J. Evans
W. 0. Ford 2
San Francisco
St George Holden [
W \ Dav
Ira Clerk
W. M. Hale
C. E. Earhart, 2
R. B. West
_. L. R. Rounds
W. S. Logan
J. H. Williams
R. M. Gidney
L. W. Knoke
W. S. McLarin, Jr.3
H. F. Conniff
M. H. Bryan
I
Deputy chairman.
2 Cashier.
3
Also cashier.
MANAGING DIRECTORS OE BRANCHES OF FEDERAL RESERVE BANKS
Federal Reserve Bank of—
Managing director
New York:
Buffalo Branch,
R. M. O'Hara
Cleveland:
Cincinnati Branch._ _
B. J. Lazar
Pittsburgh Branch
P. A. Brown
Richmond:
Baltimore Branch___ __. _ W. R. Milford
Charlotte Branch
W. T. Clements
Atlanta:
Birmingham Branch
P. L. T. Beavers
Jacksonville Branch
G. S. Vardeman, Jr.
Nashville Branch __
J. B. Fort, Jr.
New Orleans Branch
L. M. Clark
Chicago:
Detroit Branch
R. H. Buss
St. Louis:
Little Rock Branch
A. F. Bailey
Louisville Branch
F. D. Rash
Memphis Branch _ _
W. H. Glasgow
Federal Reserve Bank of—
Minneapolis:
Helena Branch
Kansas City:
Denver Branch _
Oklahoma City Branch
Omaha Branch
Dallas:
El Paso Branch _
Houston Branch
San Antonio Branch.,
San Francisco:
Los Angeles Branch
. _
Portland Branch
Salt Lake City Branch
Seattle Branch
Managing director
R. E. Towle
J. E. Olson
C. E. Daniel
L. II. Earhart
J. L. Hermann
W. D. Gentry
M. Crump
1
W. N. Ambrose
D. L. Davis
W. L. Partner
C. R. Shaw
SUBSCRIPTION PRICE OF BULLETIN
The FEDERAL RESERVE BULLETIN is an official publication of the Board of Governors of
the Federal Reserve System. The BULLETIN is issued monthly and is sent to member banks
without charge. To others the subscription price, which covers the cost of paper and printing, is as follows: in the United States, Canada, Mexico, and insular possessions, $2.00 per
year and 20 cents per single copy; elsewhere, $2.60 per year and 25 cents per single copy.
837
FEDERAL RESERVE DISTRICTS
Birmingham
AUA
wm—m BOUNDARIES OF FEDERAL RESERVE DISTRICTS
.-I*.
BOUNDARIES OF FEDERAL RESERVE BRANCH TERRITORIES
(APPROXIMATE IN THE ST. LOUIS DISTRICT)
®
•
O
FEDERAL RESERVE BANK CITIES.
FEDERAL RESERVE BRANCH CITIES
FEDERAL RESERVE BANK AGENCY
- t ;V)6 S a v
@FedFRASER