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STATEMENT FOE THE PRESS Released for publication Friday morning, May ]0; not earlier. St. 6605 Federal Reserve Board May 29, 1930 • COIIDITIOIT OF FEDERAL RESERVE BiNKS Beginning with this week the text accompanying the weekly condition statement of the Federal reserve "banks will show the amount of reserve "bank credit nnt«tan^ing and certain other items not included in the condition statement. These items, of which monetary gold stock and money in circulation are the most significant, are explained in the attached statement. Changes in these items have a direct bearing on the demand for credit at the reserve banks and their publication will help in the interpretation of changes in the amount of reserve bank credit outstanding. The daily average volume of Federal reserve bank credit outstanding during the week ending May 28 as reported by the Federal reserve banks was $965,000,000, a decrease of $3,000,000 compared with the preceding week and of $300,000,000 compared with the corresponding week of I929. On May 28 total reserve bank credit outstanding amounted to $976,000,000, an increase of $23,000,000 for the week. This corresponds with an increase of $53,000,000 in money in circulation and a decrease of $6,000,000 in Treasury currency less decreases of $27,000,000 in member bank reserve "balances and of $6,000,000 in unexpended capital funds, nonmember deposits, etc., and an increase of $2,000,000 in monetary gold stock. The principal changes in holdings of discounted bills for the week were increases of $24,000,000 at the Federal Reserve Bank of New York, and $3,000,000 each at Cleveland, Atlanta and San Francisco. The System's holdings of bills bought in open market declined $11,000,000 and of Treasury certificates and "bills $47,000,000 while holdings of U. S. bonds increased $5,000,000 and of Treasury notes $43,000,000. Changes in the amount of reserve bank credit outstanding and in related items during the week and the year ending May 28, I930 were as follows: Increase or decrease since May 28, May 21, May 29, 19,30 1930 1929 (In millions of dollars) Bills discounted Bills bought United States securities Other reserve bank credit 247 176 530 24 + 37 1 4 - 74l + 58 + 385 - 13 TOTAL RESERVE B A M CREDIT Monetary gold stock Freqsuiry currently adjusted. + 23 + 2 - 311 + 216 - - Money in circulation 4,491 Member bank reserve balances 2,347 Unexpended capital funds, nonme, laiDer deposits,etc. 421 + 53 - 27 w. - 11 + - — 6 6 28 - 203 + 61 + 20 Federal Reserve Board May 29, 1930. HEW ITEMS IN TEXT ACCOMPANYING- WEEKLY INDERAL RESERVE BANK STATE!ST Reserve Bank Credit. Reserve to the total "bill and security given member banks for transit and funds deposited in foreign bank credit outstanding comprises, in addition holdings of the Federal reserve "banks, credit items in advance of their actual collection banks. Monetary gold^st^ock. Monetary gold stock includes all gold coin in circulation and gold coin and bullion held by the United States Treasury and the Federal reserve banks, except gold earmarked for foreign account. Changes in monetary gold stock, which arise through imports and exports, through earmarking or releases from earmark, and through domestic production (in excess of industrial consumption), have an inverse effect on reserve bank credit, i.e., increases in the gold stock diminish the demand for reserve bank credit, and decreases in the gold stock increase the demand for such credit. Treasury currency - adjusted. Treasury currency-adjusted includes all the currency in the United States, except gold coin and Federal reserve notes, less gold and other cash held by the Treasury and deposits of the Treasury with tne Federal reserve banks. This item represents the net amount of currency outstanding that is based primarily on Treasury credit, and cnanges in this item have the same effect on the demand for reserve bank credit as changes in the stock of monetary gold. Money in circulation. Money in circulation includes all kinds of United . States money outside of the Treasury and the Federal reserve banks, and cnanges in tnis item, rather than in Federal reserve notes alone, reflect changes ih t&e demand for currency by the public. Changes in the demand ±or currency for circulation purposes are thp principal Cause of seasonal changes in the volume of reserve bank credit outstanding. ank reserve balances. Member bank reserve balances comprise the entire legal reserves of member banks, and average changes in these balances, which are subject to substantial day-to-day fluctuations, reflect changes in member bank deposits against which they are held. Member bank reserve balances is the item in the Federal reserve bank statement that is directly influenced by changes in the volume of member bank credit. Unexpended capital funds, nonmember deposits, etc. This heading combines a number of items which do not change greatly from week to week. Changes in nonmember deposits with the reserve banks have the same effect on the ue,nan& for reserve bank credit as changes in member bank balances. Changes in unexpended capital funds also have the same effect. This item measures tne extent to wnich the paying in of caoital to the reserve banks and their subsequent earnings have taken funds out of the market, and comprises capital, surplus, and undistributed earnings less amounts returned to the market principally through the purchase of bank premises. Some of the above items are the principal components of "all other resources" and all other liabilities0 in the weekly statement and accordingly the amount of unexpended capital funds, etc., is arrived at by subtracting from capital," "surplus,11 and "all other liabilities" the items "bank premises" *3nd "all other resources. " (St. 6600) - 2 - For a somewhat more detailed explanation of the above items and their relationship to reserve banlc credit reference may be had to an article on page 432 of the Federal Reserve Bulletin for July 1929 CHANGES IN CCGTDITI01T STATEMENT Federal reserve notes. The .amount of Federal reserve notes held at Federal reserve banks other than the issuing bank is shown separately; heretofore such notes have been included in "Uncollected items." The object of this change is to make it possible to determine from the weekly statement the amount of Federal reserve notes outside of the Federal reserve banks, and also the net float carried by the reserve banks which arises principally from giving credit for checks and other cash items, in accordance with published time schedules, in advance of actual collection. The amount of Federal reserve notes received from the Comptroller of the Currency and of notes held by the Federal reserve agents have; been omitted from the Federal reserve note statement and the remaining items have been rearranged with a view to bringing out more clearly the difference between Federal reserve notes issued to the reserve banks, against which 100 per cent collateral of gold or eligible paper mast be pledged ziti the Feaeral reserve"agents, and notes in circulation against whic1" a reserve of 4o per cent in uold is requirpd. Gold Held as collateral forFederal reserve notes is also counted as a part of the required reserve against notes in circulation. St. boGOa Released, for publication Friday morning, May 30,1930; not earlier. St. 66o5a RESOURCES M D LIABILITIES OF THE TWELVE FEDERAL RESERVE BMKS COMBINED (In thousands of dollars) May 28. 1930 May a . 1930 May 29.1929 R E S O U R C E S Gold with Federal reserve agents . . . . . Gold redemption fund with U.S.Treasury . . 1,536,714 37,357 1,534,571 635,513 787,226 1,621,714 39,483 1,315,181 66,969 1,661,197 614,457 800,802 3,057,310 163,519 3,076,456 171,595 1,382,150 663,795 777,836 2,823,781 146,177 3,220,82Q 67,210 3,24s,05i 69,096 2,969,958 82,473 101,743 145,303 247,046 175,560 76,379 133,620 536,177 452,017 209,999 186,884 988,194 117,919 46,936 237,966 244,868 41,776 194,687 291,857 50,384 84,965 9,223 Total U.S. Government securities . . Other securities 529,770 6,4oo 528,320 6,46o Total bills and securities . . . . Due from foreign banks Uncollected items F. R. notes of other banks Bank premises All other resources 958,776 709 564,916 19,054 58,671 12,194 931,603 710 (610,080 L20,958 58,646 12,204 144,572 7,817 1,258,502 4,902,359 4,951,34s 5,034,892 1,465,867 1,452,663 1,553,685 2,346,798 49,771 5,387 18,893 2,420,849 548,376 170,515 276,936 19,816 2,374,166 37,088 5,497 22,160 2,438,911 588,896 174,240 276,936 19,702 2,285,870 15,366 8,085 21,873 2,331,194 611,242 156,446 254,39s 27,927 4,902,359 4,951,34s 5,034,892 Gold held exclusively against F.R.notes Gold settlement fund with F. R. Board . . Gold and gold certificates held by "banks . Total gold reserves . . . . . . Reserves other than gold Total reserves . . . . . Eon-reserve cash Bills discounted: Sec. by U. S. Government obligations . . Other bills discounted Total bills discounted . . . Bills bought in open market U. S. Government securities: Bonds Treasury notes Certificates and bills . TOTAL RESOURCES L I A B I L I TIES 2*. E. notes in actual circulation Deposi ts; Member bank - reserve account .... Foreign bank Other deposits Total deposits Deferred availability items. Capital paid in Surplus All other liabilities TOTAL LIABILITIES . . . Ratio of total reserves to deposit and F. R. note; liabilities combined . . . Contingent liability on bills purchased for foreign correspondents 727 639,044 lb,884 53,761 8,543 82.9% 83-5% 74.5% 461,853 461,131 385,754 RESOURCES AMD LIABILITIES OF THE FEDERAL RESERVE BASKS ON MAY 23, 1930 R E S O U R C E S (In thousands of dollars) Total Boston New York Phila. CIeve. Rich. Atlanta Chicago St.Louis Gold with Federal Reserve Agents 1,596,714 164,917 258,594 l4o,000 185,550 73,000 109,000 249,000 69,245 Gold redemption fund with U.S.Treasury 37,857 1,156 15,006 2,693 2,205 1,333 2,378 1,594 1,817 Gold held exclusively against F. R. notes 1,634,571 166,073 273,600 142,693 187,755 74,333 111,378 250,594 71,062 Gold settlement fund with F.R.Board 214,517 4o,i85 79,302 15,197 12,641 116,450 23,564 635.513 31,175 Gold and gold certif. held by "banks 787,226 35,575 8,241 477,101 30,285 54,317 9,067 6,080 115,420 Total gold reserves 3,057,310 232,823 965,218 213,163 321,374 98,597 130,099 482,464 107,867 Reserves other than gold 163,519 12,076 6,988 11,085 53,779 7,039 l4,4oi 15,634 •12,214 Total reserves Nonreserve cash Bills discounted: Secured "by U.S.Govt, obligations Other bills discounted Total bills discounted Bills bought in open market U. S. Government securities: Bonds Treasury notes Certificates and bills Total U.S.Govt, securities Other securities Total bills and securities Due from foreign banks Uncollected items F.R. Notes of other banks Bank premises All other resources TOTAL RESOURCES 3,220,829 244,899 1,018,997 220,151 332,459 105,636 144,500 498,098 120,081 67,210 16,52s 7,289 3,483 3,726 5,080 9,211 3,815 4,699 101,743 8,143 145,303 11,569 247,046 19,712 175,560 16,858 37,262 15,586 13,907 1,838 8,036 2,770 5,227 15,565 15,910 7,624 13,751 26,876 9,329 14,031 52,827 31,496 21,531 16,521 23,714 17,365 19,258 47,325 4,093 11,132 7,572 13,291 19,354 7,351 St. 6605b Minn. ICans.Cy. Dallas San.Fran. 53,845 75,000 28,800 189,763 903 1,592 899 6,281 54,748 76,592 29,699 15,305 28,250 15,671 4,686 9,207 9,799 74,739 li4,64i 54,577 8,468 4,194 7,056 78,933 123,109 1,973 1,976 2,729 576 2,985 13,405 3,561 16,134 6,648 6,261 196,044 38,256 27,448 261,748 10,585 61,633 272,333 4,297 5,133 1,009 4,66o 7,537 6,671 8,596 11,331 5,807 29,868 i,6i4 46,936 237,966 16,624 244,868 22,085 529,770 40,323 6,4oo 1,000 1,422 1,311 1,096 4,357 4,814 84,539 20,444 26,695 90,152 24,370 22,205 6 > 4 179,048 46,125 49,996 12,64O mm 4,4oo 1,000 958,776 77,893 ^ 709 „ 53 564,916 bO,286 19,054 237 58,671 3,580 12,194 45 283,600 82,714 82,659 36,733 51,035 107,423 45,877 ,34,188 38,720 4o,o4o 77,894 232 26 21 21 26 16 69 30 71 49 95 154,873 50,867 57,657 40,955 15,170 74,869 24,859 10,127 29,325 18,386 27,542 5,610 906 1,276 548 391 2,372 1,060 2,019 1,770 1,295 1,570 15,664 2,018 1,787 3,204 2,658 1,876 3,811 8,295 4,747 7,059 3,972 204 1,185 4,299 6i4 4i6 443 429 291 301 512 3,455 a,io4 759 21,243 12,580 28,357 5,929 9,030 70,704 19,268 415 5,130 3,485 — 4,979 9,707 9,293 23,979 — 8,446 778 655 6,673 8,550 20,967 8,64i 15,073 8,874 16,325 25,637 36,695 — — 4,902,359 394,282 1,499,803 359,566 485,722 192,757 223,219 700,792 200,714 128,974 198,984 127,217 390,229 L I A B I L I T I E S RESOURCES AND" LI ABILITIES OF 'THE "fEmR:AL RESERVE-BA^S ON MAY ' 2S, 1930 ' (In thousands of dollars) st. 6605c Total Boston New York Phila. Cleve. Rich. Atlanta Chicago St.Louis Minn. Kans.Cy. Dallas San Fran. 1,465,867 155,748 184,330 137,367 187,083 66,552 123,7% 226,056 74,912 55 , 283 71,139 30,460 153,191 F.R.notes in actual circulation Deposits: 2,346,798 138,690 Member bank - reserve account 990,889 127,145 Government 49,771 5,541 15,225 3,039 Foreign bank 5,387 1,787 521 18,893 9,050 Other deposits 93 2,420,349 144,684 1,016,951 130,798 Total d. coits Deferred avail abi'.; j. ,y u.terns 548,376 59:920 145.6I4 46,988 Capital paid in 56,202 16,745 170,515 11,822 Surplus 276,936 21,751 So.001 26,965 19,816 6.705 111 other'liabilities 803 357 TOTAL LI ABILITIES 394,282 4,902,359 1,499>303 359, 66 Reserve ratio (per cent) 84.8 82.9 81.5 82.1 Contingent liability on bills purchased for foreign correspondents 461,853 33,325 159,677 43,683 191,523 2,269 i.S$ 195,669 56,292 15,899 29,141 1,638 61,170 61,038 333,579 4,681 3,202 6,385 225 193 1,492 1)1 58 95 66,171 40,688 78,845 64,491 341,257 16,530 70,372 5,874 5,374 20,208 12,496 10,857 40,094 2,221 2,805 976 50,664 2,O4O 17? 1 80,893 27,180 5,285 10,877 l,5o7 53,003 9,547 3,098 7,143 900 61,232 167,033 1,625 2,432 161 161 370 28 7,005 55. 84,990 1,840 87,046 63,046 176,840 26,924 19,619 28,702 4,330 4,352 11,326 9,162 --3,935 19,514 383 805 . 656 485,722 192,757 223,219 700,792 200,714 128,974 198,984 127,217 390,229 S6.9 76.8 87.8 79.6 77.1 72.9 77.8 65.9 82.5 45,034 18,914 16,212 6O,345 16,212 IO,358 13,510 13,510 31,073 FEDERAL RESERVE NOTE STATEMENT Federal reserve notes: Issued to F.R.bank by F-?, Agont Held by Federal rescx*vo banlc In actual circulation Collateral held by agent as security for notes issued to bank: Gold and gold certificates Gold fund - I B. Board Eligible paper Total collateral 1,786,049 184,146 320,182 28,398 241,693 156,930 215,079 88,659 150,581 260,724 8q,4n 57,363 19,563 27,996 22,107 26,835 34,668 14,499 62,163 81,571 4o,2o4 214,888 6,880 10,432 9.744 61.697 1,465,867 155,748 184,330 137,367 187,083 55,283 402,008 1,194,706 412,148 2,008,862 229,96s 22.626 94,928 353,522 35,300 129,617 36,492 201,409 39,900 100.100 32,^76 172,776 66,552 123,746 226,056 74,912 71,139 15,550 5,000 6,000 9,145 11,845 170,000 68,000 103,000 249,000 60,100 42,ooo 75,000 32,068 £4,010 41,701 36,541 25,947 10,099 22,279 217„6l8 97,010 150,701 285,541 95,192 63,944 97,279 30,460 153,191 14,300 14/500 14,290 43,090 35,000 154,'763 41,017 230,780 MATURITY DISTRIBUTION OF BILLS AND SHORT TERM SECURITIES Bills discounted Bills bought in open market Certificates and bills Total 247,046 175,560 244,868 Vithin 15 days 152,044 103,869 l6 to 30 days 20,736 29,06c 13,47% 31 to 60 days 33,329 32, §73 4o,ooo 6l to 90 days 18,431 9,177 63,213 91 days to 6 months . 21,312 872 86,176 Over 6 month 1,194 42,005
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